<Page>
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: 811-09081
Morgan Stanley International Fund
(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: October 31, 2003
Date of reporting period: April 30, 2003
<Page>
Item 1. Report to Stockholders.
Morgan Stanley International Fund
LETTER TO THE SHAREHOLDERS / / APRIL 30, 2003
Dear Shareholder:
The six-month period ended April 30, 2003, was difficult for international
equity investors. The moves during the period were sharp: European markets
breached their October lows in mid-March before moving solidly higher in April,
Asia was more defensive until late in the period when the news on SARS escalated
and the markets sold off, and the U.S. dollar lost value against nearly all the
major currencies, particularly the euro, which gained approximately 13 percent
over the period.
Performance and Portfolio Strategy
For the six-month period ended April 30, 2003, Morgan Stanley International
Fund's Class A, B, C and D shares returned -0.44 percent, -0.76 percent, -0.73
percent and -0.34 percent, respectively. During the same period, the Morgan
Stanley Capital International (MSCI) EAFE Index(1) returned 1.81 percent and the
Lipper International Fund Index(2) returned 1.61 percent. THE PERFORMANCE OF THE
FUND'S FOUR SHARE CLASSES VARIES BECAUSE EACH HAS DIFFERENT EXPENSES. THE TOTAL
RETURN FIGURES GIVEN ASSUME THE REINVESTMENT OF ALL DISTRIBUTIONS BUT DO NOT
REFLECT THE DEDUCTION OF ANY APPLICABLE SALES CHARGES. IF SALES CHARGES WERE
INCLUDED, PERFORMANCE WOULD BE LOWER.
The Fund's above-benchmark allocation to defensive holdings such as consumer
staples and health care, as well as to Hong Kong and Singapore, hurt its
relative portfolio performance. Overweightings to utilities, the United Kingdom
and Spain were positive contributors. Underweighted positions in information
technology and consumer discretionary issues also benefited performance.
As of April 30, 2003, the Fund was slightly overweighted in non-euro Europe
(principally the United Kingdom), underweighted in euro Europe and neutral in
Japan and Asia, with 4 percent in cash.
Market Review
During the period, we increased our position in Japan to market weight, based on
attractive equity valuations and market technicals. From the viewpoint of
fundamentals, there have been faint signs of change: the Bank of Japan added
liquidity, the Industrial Revitalization Corporation was established in early
May and there has been talk of currency intervention. However, given the many
fits and starts of
- ----------------
(1) The Morgan Stanley Capital International (MSCI) EAFE Index measures the
performance of a diverse range of global stock markets within Europe,
Australasia and the Far East. The performance of the Index is listed in U.S.
dollars and assumes reinvestment of net dividends. "Net dividends" reflects a
reduction in dividends after taking into account withholding of taxes by certain
foreign countries represented in the Index. The Index does not include any
expenses, fees or charges. The Index is unmanaged and one cannot invest directly
in an index.
(2) The Lipper International Fund Index is an equally weighted performance index
of the largest qualifying funds (based on net assets) in the Lipper
International Funds classification. The Index, which is adjusted for capital
gains distributions and income dividends, is unmanaged and one cannot invest
directly in an index. There are currently 30 funds represented in this Index.
<Page>
Morgan Stanley International Fund
LETTER TO THE SHAREHOLDERS / / APRIL 30, 2003 CONTINUED
mending the Japanese economy and financial system we have witnessed over the
years, we remain dubious and thus neutrally positioned versus our benchmark.
Equities and bond yields recently hit new multi-year lows signaling, we believe,
investors' lack of confidence in the market.
After showing some signs of firming up earlier this year, recent economic data
in continental Europe weakened. Consumer confidence is now at multi-year lows,
retail sales are down and unemployment has risen. The European central bank
appears to be behind the curve and real short-term interest rates are still
positive compared to negative short-term rates in both the United States and
Switzerland. Although absolute equity valuations are attractive, in our view
short-term earnings momentum is weak and price momentum poor.
A recent visit to the United Kingdom reinforced our conviction that the
government's policies and the Bank of England (BOE) have been adept at managing
the economy. Although recent data, particularly on the consumer sector, have
been deteriorating, we believe the economy is relatively healthy. The weakness
in sterling is likely to take pressure off the BOE and should help with
exporting manufactured goods.
We appreciate your ongoing support of Morgan Stanley International Fund and look
forward to continuing to serve your investment needs.
Very truly yours,
[/S/ CHARLES A. FIUMEFREDDO] [/S/ MITCHELL M. MERIN]
Charles A. Fiumefreddo Mitchell M. Merin
CHAIRMAN OF THE BOARD PRESIDENT
2
<Page>
Morgan Stanley International Fund
FUND PERFORMANCE / / APRIL 30, 2003
<Table>
<Caption>
Average Annual Total Returns -- Period Ended April 30, 2003
------------------------------------------------------------------------------------------------------------------------------
Class A Shares* Class B Shares**
----------------------------------------------------------- -----------------------------------------------------------------
1 Year (17.55)%(1) (21.88)%(2) 1 Year (18.17)%(1) (22.26)%(2)
Since Inception
(06/28/99) (8.52)%(1) (9.80)%(2) Since Inception (06/28/99) (9.24)%(1) (9.69)%(2)
</Table>
<Table>
<Caption>
Class C Shares+ Class D Shares++
----------------------------------------------------------- -----------------------------------------------------------------
1 Year (18.12)%(1) (18.94)%(2) 1 Year (17.40)%(1)
Since Inception
(06/28/99) (9.20)%(1) (9.20)%(2) Since Inception (06/28/99) (8.35)%(1)
</Table>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE. WHEN YOU SELL FUND SHARES, THEY MAY BE WORTH
LESS THAN THEIR ORIGINAL COST. THE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES
THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND
SHARES. PERFORMANCE FOR CLASS A, CLASS B, CLASS C, AND CLASS D SHARES WILL VARY
DUE TO DIFFERENCES IN SALES CHARGES AND EXPENSES.
- ---------------------
(1) FIGURE SHOWN ASSUMES REINVESTMENT OF ALL DISTRIBUTIONS AND DOES NOT REFLECT
THE DEDUCTION OF ANY SALES CHARGES.
(2) FIGURE SHOWN ASSUMES REINVESTMENT OF ALL DISTRIBUTIONS AND THE DEDUCTION OF
THE MAXIMUM APPLICABLE SALES CHARGE. SEE THE FUND'S CURRENT PROSPECTUS FOR
COMPLETE DETAILS ON FEES AND SALES CHARGES.
* THE MAXIMUM FRONT-END SALES CHARGE FOR CLASS A IS 5.25%.
** THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE (CDSC) FOR CLASS B IS 5.0%.
THE CDSC DECLINES TO 0% AFTER SIX YEARS.
+ THE MAXIMUM CDSC FOR CLASS C IS 1.0% FOR SHARES REDEEMED WITHIN ONE YEAR OF
PURCHASE.
++ CLASS D HAS NO SALES CHARGE.
3
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED)
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
Common and Preferred Stocks and Rights (94.0%)
Australia (3.0%)
ALUMINUM
88,705 Alumina Ltd............................. $ 242,185
------------
BEVERAGES: ALCOHOLIC
92,599 Foster's Group Ltd...................... 259,775
31,042 Southcorp Ltd........................... 73,478
------------
333,253
------------
BEVERAGES: NON-ALCOHOLIC
73,832 Coca-Cola Amatil Ltd.................... 263,069
------------
BIOTECHNOLOGY
5,248 CSL Ltd................................. 51,398
------------
BUILDING PRODUCTS
82,951 CSR Ltd................................. 92,460
------------
CASINO/GAMING
16,104 TABCORP Holdings Ltd.................... 106,894
------------
CHEMICALS: MAJOR DIVERSIFIED
22,785 Orica Ltd............................... 141,253
------------
CONSTRUCTION MATERIALS
55,338 Boral Ltd............................... 164,947
82,951 Rinker Group Ltd.*...................... 252,447
------------
417,394
------------
CONTAINERS/PACKAGING
66,777 Amcor Ltd............................... 347,489
------------
ENGINEERING & CONSTRUCTION
13,503 Leighton Holdings Ltd................... 82,188
------------
FINANCIAL CONGLOMERATES
15,645 Suncorp-Metway Ltd...................... 111,391
------------
FOOD RETAIL
44,735 Coles Myer Ltd.......................... 192,730
56,222 Woolworths Ltd.......................... 454,864
------------
647,594
------------
GAS DISTRIBUTORS
21,660 Australian Gas Light Company Ltd........ 155,031
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
HOSPITAL/NURSING MANAGEMENT
33,452 Mayne Group Ltd......................... $ 62,005
------------
INDUSTRIAL CONGLOMERATES
10,430 Ansell Ltd.*............................ 37,947
13,428 Wesfarmers Ltd.......................... 206,011
------------
243,958
------------
LIFE/HEALTH INSURANCE
36,111 Amp Ltd................................. 197,409
------------
MAJOR BANKS
29,623 Australia & New Zealand Banking Group
Ltd.................................... 345,956
37,556 Commonwealth Bank of Australia.......... 640,148
53,883 National Australia Bank Ltd............. 1,096,600
48,370 Westpac Banking Corp.................... 481,903
------------
2,564,607
------------
MAJOR TELECOMMUNICATIONS
252,247 Telstra Corp., Ltd...................... 664,999
------------
MEDIA CONGLOMERATES
93,152 News Corp., Ltd......................... 664,101
83,260 News Corp., Ltd. (Pref. Ordinary)....... 492,177
------------
1,156,278
------------
MISCELLANEOUS COMMERCIAL SERVICES
44,604 Brambles Industries Ltd................. 143,845
------------
OIL & GAS PRODUCTION
19,738 Santos Ltd.............................. 71,688
------------
OTHER METALS/MINERALS
283,119 BHP Billiton Ltd........................ 1,602,694
184,658 M.I.M. Holdings Ltd..................... 196,576
25,267 Rio Tinto Ltd........................... 502,829
88,705 WMC Resources Ltd.*..................... 222,188
------------
2,524,287
------------
PRECIOUS METALS
22,901 Newcrest Mining Ltd..................... 93,931
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
4
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
PROPERTY - CASUALTY INSURERS
21,531 QBE Insurance Group Ltd................. $ 115,142
------------
PULP & PAPER
40,249 Paperlinx Ltd........................... 129,296
------------
REAL ESTATE DEVELOPMENT
16,586 Lend Lease Corp., Ltd................... 105,004
------------
REAL ESTATE INVESTMENT TRUSTS
19,392 AMP Diversified Property Trust.......... 35,944
73,183 General Property Trust (Units)++........ 137,482
20,473 Stockland (Units)++..................... 64,101
2,990 Westfield Trust (New Units)++*.......... 6,328
81,414 Westfield Trust (Units)++............... 174,866
------------
418,721
------------
STEEL
8,791 OneSteel Ltd............................ 9,413
------------
Total Australia......................... 11,492,182
------------
Austria (0.9%)
BUILDING PRODUCTS
12,530 Wienerberger AG......................... 236,596
------------
CONSTRUCTION MATERIALS
4,050 RHI AG*................................. 44,798
------------
CONTAINERS/PACKAGING
1,843 Mayr-Melnhof Karton AG.................. 156,374
------------
ELECTRIC UTILITIES
3,363 Oesterreichische
Elektrizitaetswirtschafts AG (Verbund)
(A Shares)............................. 311,157
------------
ENGINEERING & CONSTRUCTION
3,456 VA Technologie AG*...................... 86,688
------------
MAJOR BANKS
10,336 Erste Bank der Oesterreichischen
Sparkassen AG.......................... 818,783
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
MAJOR TELECOMMUNICATIONS
76,670 Telekom Austria AG*..................... $ 786,390
------------
OIL REFINING/MARKETING
5,183 OMV AG.................................. 623,108
------------
OTHER TRANSPORTATION
4,031 Flughafen Wien AG....................... 140,790
------------
STEEL
2,112 Boehler-Uddeholm AG..................... 110,082
6,842 Voestalpine AG.......................... 192,643
------------
302,725
------------
Total Austria........................... 3,507,409
------------
Belgium (0.5%)
CHEMICALS: SPECIALTY
1,815 Solvay S.A. (A Shares).................. 128,366
------------
ELECTRIC UTILITIES
334 Electrabel S.A.......................... 80,159
------------
FINANCIAL CONGLOMERATES
50,492 Fortis.................................. 848,477
------------
MAJOR BANKS
56,677 Dexia................................... 650,350
4,337 KBC Bankverzekeringsholding............. 153,610
------------
803,960
------------
OTHER METALS/MINERALS
456 Umicore................................. 20,746
------------
PHARMACEUTICALS: OTHER
2,246 UCB S.A................................. 62,234
------------
Total Belgium........................... 1,943,942
------------
Bermuda (0.0%)
CONSTRUCTION MATERIALS
34,000 Cheung Kong Infrastructure Holdings
Ltd.................................... 63,647
------------
Denmark (0.6%)
BEVERAGES: ALCOHOLIC
1,800 Carlsberg AS (Series B)................. 65,541
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
5
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
BIOTECHNOLOGY
2,700 Novozymes AS (Series B)................. $ 66,015
------------
ELECTRICAL PRODUCTS
1,830 Vestas Wind Systems AS.................. 14,318
------------
FOOD: SPECIALTY/CANDY
3,700 Danisco AS.............................. 135,280
------------
MAJOR BANKS
51,444 Danske Bank AS.......................... 990,767
------------
MAJOR TELECOMMUNICATIONS
2,400 TDC AS.................................. 59,764
------------
MISCELLANEOUS COMMERCIAL SERVICES
15,300 Group 4 Falck AS........................ 267,040
10,200 ISS AS.................................. 382,143
------------
649,183
------------
PHARMACEUTICALS: MAJOR
6,000 Novo Nordisk AS (Series B).............. 217,568
------------
Total Denmark........................... 2,198,436
------------
Finland (0.8%)
BUILDING PRODUCTS
514 Uponor Oyj.............................. 10,337
------------
ENGINEERING & CONSTRUCTION
2,857 Kone Oyj (B Shares)..................... 97,360
------------
FOOD RETAIL
18,773 Kesko Oyj (B Shares).................... 213,946
------------
INDUSTRIAL MACHINERY
18,323 Metso Oyj............................... 174,014
------------
INFORMATION TECHNOLOGY SERVICES
10,902 TietoEnator Oyj......................... 180,885
------------
MEDICAL SPECIALTIES
1,200 Instrumentarium Oyj..................... 44,983
------------
MULTI-LINE INSURANCE
3,403 Sampo Oyj (A Shares).................... 24,714
------------
OIL & GAS PRODUCTION
23,253 Fortum Oyj.............................. 167,055
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
OTHER METALS/MINERALS
10,655 Outokumpu Oyj........................... $ 88,096
------------
PULP & PAPER
25,076 Stora Enso Oyj (Registered Shares)...... 272,890
18,464 UPM-Kymmene Oyj......................... 270,251
------------
543,141
------------
REAL ESTATE DEVELOPMENT
10,150 Sponda Oyj.............................. 52,280
------------
TELECOMMUNICATION EQUIPMENT
77,668 Nokia Oyj............................... 1,315,561
------------
TRUCKS/CONSTRUCTION/FARM MACHINERY
4,537 Wartsila Oyj (B Shares)................. 52,466
------------
Total Finland........................... 2,964,838
------------
France (6.9%)
AEROSPACE & DEFENSE
9,157 Thales S.A.............................. 245,240
------------
ALUMINUM
2,426 Pechiney S.A. (A Shares)................ 70,068
------------
APPAREL/FOOTWEAR
21,989 LVMH (Louis Vuitton Moet Hennessy)...... 960,621
------------
BEVERAGES: ALCOHOLIC
5,328 Pernod-Ricard S.A....................... 468,201
------------
BUILDING PRODUCTS
18,425 Compagnie de Saint-Gobain............... 638,586
------------
CHEMICALS: SPECIALTY
3,471 Air Liquide S.A......................... 526,265
------------
CONSTRUCTION MATERIALS
608 Imerys S.A.............................. 80,771
4,566 Lafarge S.A............................. 307,116
------------
387,887
------------
DEPARTMENT STORES
5,899 Pinault-Printemps-Redoute S.A........... 412,594
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
6
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
ELECTRICAL PRODUCTS
4,604 Alstom*................................. $ 9,362
8,951 Schneider Electric S.A.*................ 424,240
------------
433,602
------------
ENGINEERING & CONSTRUCTION
21,786 Bouygues S.A............................ 533,566
1,064 Vinci S.A............................... 69,367
------------
602,933
------------
FOOD DISTRIBUTORS
6,222 Sodexho Alliance S.A.................... 141,748
------------
FOOD RETAIL
29,914 Carrefour S.A........................... 1,302,491
3,946 Casino Guichard Perrachon S.A........... 268,941
------------
1,571,432
------------
FOOD: MAJOR DIVERSIFIED
14,654 Groupe Danone........................... 2,076,086
------------
HOTELS/RESORTS/CRUISELINES
9,036 Accor S.A............................... 298,133
------------
HOUSEHOLD/PERSONAL CARE
35,700 L'Oreal S.A............................. 2,554,801
------------
INFORMATION TECHNOLOGY SERVICES
2,929 Cap Gemini S.A.*........................ 91,239
------------
MAJOR BANKS
13,455 BNP Paribas S.A......................... 632,299
5,139 Societe Generale (A Shares)............. 314,651
------------
946,950
------------
MEDIA CONGLOMERATES
31,251 Vivendi Universal S.A................... 509,784
------------
MEDICAL SPECIALTIES
1,745 Essilor International S.A............... 71,534
------------
MULTI-LINE INSURANCE
61,879 AXA..................................... 940,960
------------
OIL REFINING/MARKETING
37,621 Total Fina Elf S.A...................... 4,938,988
------------
OILFIELD SERVICES/EQUIPMENT
346 Technip - Coflexip S.A.................. 28,375
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
OTHER CONSUMER SPECIALTIES
5,248 Societe BIC S.A......................... $ 184,703
------------
PACKAGED SOFTWARE
1,940 Dassault Systemes S.A................... 56,118
------------
PHARMACEUTICALS: MAJOR
42,752 Aventis S.A............................. 2,173,867
40,852 Sanofi-Synthelabo S.A................... 2,439,669
------------
4,613,536
------------
PUBLISHING: BOOKS/ MAGAZINES
6,082 Lagardere S.C.A......................... 232,675
------------
REAL ESTATE DEVELOPMENT
340 Bail Investissement..................... 51,588
2,858 Gecina S.A.............................. 322,198
4,080 Klepierre............................... 185,489
11,131 Societe Fonciere Lyonnaise.............. 340,516
190 Societe Immobiliere de Location pour
l'Industrie et le Commerce (SILIC)..... 35,155
7,040 Sophia (EX-SFI)......................... 235,974
12,110 Unibail................................. 811,154
------------
1,982,074
------------
SEMICONDUCTORS
5,630 STMicroelectronics NV................... 116,498
------------
Total France............................ 26,101,631
------------
Germany (2.6%)
AIR FREIGHT/COURIERS
4,190 Deutsche Post AG (Registered Shares).... 50,045
------------
AIRLINES
12,797 Deutsche Lufthansa AG* - Reg............ 134,974
------------
APPAREL/FOOTWEAR
459 Adidas-Salomon AG....................... 39,540
------------
BUILDING PRODUCTS
401 Buderus AG.............................. 13,208
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
7
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
CHEMICALS: MAJOR DIVERSIFIED
15,179 BASF AG................................. $ 677,871
19,555 Bayer AG................................ 357,228
------------
1,035,099
------------
CHEMICALS: SPECIALTY
3,943 Linde AG................................ 148,730
------------
CONSTRUCTION MATERIALS
540 HeidelbergCement AG..................... 16,676
------------
DEPARTMENT STORES
3,723 KarstadtQuelle AG....................... 62,978
13,250 Metro AG................................ 368,477
------------
431,455
------------
ELECTRIC UTILITIES
49,650 E. ON AG................................ 2,379,277
------------
ELECTRONIC COMPONENTS
590 Epcos AG*............................... 9,123
------------
HOUSEHOLD/PERSONAL CARE
2,255 Beiersdorf AG........................... 280,674
2,372 Henkel KGaA - Vorzug (Pref.)............ 154,191
1,688 Wella AG (Pref.)........................ 126,362
------------
561,227
------------
INDUSTRIAL CONGLOMERATES
2,742 MAN AG.................................. 49,999
3,928 RWE AG.................................. 105,769
30,167 Siemens AG - Reg........................ 1,505,629
9,525 ThyssenKrupp AG......................... 97,696
------------
1,759,093
------------
MAJOR TELECOMMUNICATIONS
70,589 Deutsche Telekom AG (Registered
Shares)................................ 944,852
------------
MEDICAL DISTRIBUTORS
2,051 Gehe AG................................. 81,443
------------
MEDICAL/NURSING SERVICES
3,627 Fresenius Medical Care AG............... 182,239
------------
MOTOR VEHICLES
8,970 DaimlerChrysler AG (Registered
Shares)................................ 289,641
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
99 Porsche AG (Pref.)...................... $ 36,502
2,357 Volkswagen AG........................... 82,954
1,113 Volkswagen AG (Pref.)................... 28,415
------------
437,512
------------
OTHER CONSUMER SERVICES
5,633 TUI AG.................................. 82,511
------------
PACKAGED SOFTWARE
9,638 SAP AG.................................. 988,552
------------
PHARMACEUTICALS: MAJOR
3,924 Merck KGaA.............................. 105,530
6,903 Schering AG............................. 308,123
------------
413,653
------------
PHARMACEUTICALS: OTHER
753 Altana AG............................... 37,119
------------
REAL ESTATE DEVELOPMENT
17,007 IVG Immobilien AG....................... 144,415
------------
SEMICONDUCTORS
525 Infineon Technologies AG*............... 3,901
------------
SPECIALTY STORES
2,821 Douglas Holding AG...................... 51,849
------------
Total Germany........................... 9,946,493
------------
Greece (0.1%)
CONSTRUCTION MATERIALS
1,300 Titan Cement Co. S.A.................... 47,932
------------
MAJOR BANKS
12,100 National Bank of Greece S.A.*........... 169,803
------------
REGIONAL BANKS
9,700 Alpha Bank A.E.*........................ 134,822
8,700 Bank of Piraeus......................... 53,657
5,300 Commercial Bank of Greece............... 74,258
5,300 EFG Eurobank Ergasias................... 67,034
------------
329,771
------------
Total Greece............................ 547,506
------------
Hong Kong (1.3%)
AIRLINES
64,000 Cathay Pacific Airways, Ltd............. 77,135
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
8
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
APPAREL/FOOTWEAR RETAIL
36,000 Esprit Holdings Ltd..................... $ 70,622
------------
BROADCASTING
29,000 Television Broadcasts Ltd............... 88,681
------------
ELECTRIC UTILITIES
107,800 CLP Holdings Ltd........................ 440,914
85,500 HongKong Electric Holdings Ltd.......... 343,127
------------
784,041
------------
ELECTRONIC PRODUCTION EQUIPMENT
7,000 ASM Pacific Technology Ltd.............. 17,367
------------
ENGINEERING & CONSTRUCTION
47,485 New World Development Co., Ltd.......... 14,460
------------
FINANCIAL CONGLOMERATES
78,000 Wharf (Holdings) Ltd. (The)............. 136,512
------------
GAS DISTRIBUTORS
224,483 Hong Kong & China Gas Co., Ltd.......... 264,799
------------
HOTELS/RESORTS/CRUISELINES
66,000 Shangri-La Asia Ltd..................... 41,677
------------
INDUSTRIAL CONGLOMERATES
125,900 Hutchison Whampoa Ltd................... 700,583
60,000 Swire Pacific Ltd. (Class A)............ 237,714
------------
938,297
------------
INVESTMENT BANKS/BROKERS
66,000 Hong Kong Exchanges & Clearing Ltd...... 77,007
------------
MAJOR BANKS
89,452 Bank of East Asia Ltd................... 165,730
143,500 BOC Hong Kong (Holdings) Ltd............ 139,833
48,400 Hang Seng Bank Ltd...................... 479,389
------------
784,952
------------
MAJOR TELECOMMUNICATIONS
116,611 PCCW Ltd.*.............................. 74,010
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
MISCELLANEOUS MANUFACTURING
94,000 Johnson Electric Holdings Ltd........... $ 101,240
------------
RAILROADS
81,919 MTR Corp., Ltd.......................... 88,228
------------
REAL ESTATE DEVELOPMENT
97,000 Cheung Kong (Holdings) Ltd.............. 536,035
72,000 Hang Lung Properties Ltd................ 62,313
36,000 Henderson Land Development Co., Ltd..... 89,316
110 Sino Land Co., Ltd...................... 29
84,000 Sun Hung Kai Properties Ltd............. 394,189
------------
1,081,882
------------
WHOLESALE DISTRIBUTORS
98,000 Li & Fung Ltd........................... 109,946
------------
Total Hong Kong......................... 4,750,856
------------
Ireland (0.7%)
CONSTRUCTION MATERIALS
20,091 CRH PLC................................. 308,655
------------
FINANCIAL CONGLOMERATES
10,617 Irish Life & Permanent PLC.............. 123,369
------------
FOOD: SPECIALTY/CANDY
2,623 Kerry Group PLC (A Shares).............. 38,831
------------
INDUSTRIAL CONGLOMERATES
1,350 DCC PLC................................. 16,743
------------
MAJOR BANKS
66,558 Allied Irish Banks PLC.................. 1,022,522
77,133 Bank of Ireland......................... 943,679
------------
1,966,201
------------
Total Ireland........................... 2,453,799
------------
Italy (3.6%)
APPAREL/FOOTWEAR
10,254 Benetton Group SpA...................... 88,790
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
9
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
BROADCASTING
51,003 Mediaset SpA............................ $ 436,510
------------
CONSTRUCTION MATERIALS
4,461 Italcementi SpA......................... 46,653
------------
ELECTRIC UTILITIES
155,652 Enel SpA................................ 932,157
------------
ELECTRICAL PRODUCTS
156,694 Pirelli SpA............................. 154,766
------------
INTEGRATED OIL
250,911 ENI SpA................................. 3,579,978
------------
LIFE/HEALTH INSURANCE
24,253 Alleanza Assicurazioni SpA.............. 227,080
51,411 Assicurazioni Generali.................. 1,182,721
------------
1,409,801
------------
MAJOR BANKS
33,637 Banca Intesa SpA........................ 61,072
12,788 Banca Monte dei Paschi di Siena SpA..... 37,149
58,685 Banca Nazionale del Lavoro SpA*......... 95,206
228,695 IntesaBci SpA........................... 592,810
39,339 Sanpaolo IMI SpA........................ 324,816
176,741 UniCredito Italiano SpA................. 774,093
------------
1,885,146
------------
MAJOR TELECOMMUNICATIONS
217,100 Telecom Italia SpA...................... 1,775,582
17,370 Telecom Italia SpA - RNC................ 85,587
------------
1,861,169
------------
MEDICAL SPECIALTIES
27,736 Snia SpA*............................... 53,147
------------
MULTI-LINE INSURANCE
18,255 Riunione Adriatica di Sicurta SpA....... 263,520
------------
REAL ESTATE DEVELOPMENT
48,700 Aedes SpA............................... 169,223
616,000 Beni Stabili SpA........................ 308,339
------------
477,562
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
REGIONAL BANKS
4,413 Banca Popolare di Milano................ $ 18,391
17,322 Mediobanca SpA.......................... 160,444
------------
178,835
------------
RESTAURANTS
13,310 Autogrill SpA*.......................... 129,975
------------
WIRELESS TELECOMMUNICATIONS
471,940 Telecom Italia Mobile SpA............... 2,225,200
------------
Total Italy............................. 13,723,209
------------
Japan (19.4%)
ADVERTISING/MARKETING SERVICES
3,500 Asatsu - DK Inc......................... 58,814
------------
AGRICULTURAL COMMODITIES/ MILLING
11,000 Nisshin Seifun Group Inc................ 75,046
------------
AIR FREIGHT/COURIERS
74,000 Nippon Express Co., Ltd................. 276,676
27,000 Yamato Transport Co., Ltd............... 302,621
------------
579,297
------------
AIRLINES
77,000 Japan Airlines System Corp.*............ 137,153
------------
APPAREL/FOOTWEAR
16,000 Onward Kashiyama Co., Ltd............... 115,207
6,000 Wacoal Corp............................. 43,707
------------
158,914
------------
APPAREL/FOOTWEAR RETAIL
400 Fast Retailing Co., Ltd................. 11,662
1,100 Shimamura Co., Ltd...................... 60,998
2,800 World Co., Ltd.......................... 46,557
------------
119,217
------------
AUTO PARTS: O.E.M.
49,150 Denso Corporation....................... 702,025
23,000 NGK Spark Plug Co., Ltd................. 164,645
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
10
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
1,000 Stanley Electric Co., Ltd............... $ 12,603
4,350 Toyota Industries Corp.................. 64,508
------------
943,781
------------
AUTOMOTIVE AFTERMARKET
52,000 Bridgestone Corp........................ 591,128
------------
BEVERAGES: ALCOHOLIC
36,000 Asahi Breweries, Ltd.................... 214,451
102,000 Kirin Brewery Co., Ltd.................. 788,439
9,000 Takara Holdings Inc..................... 40,380
------------
1,043,270
------------
BROADCASTING
18 Fuji Television Network, Inc............ 63,670
7,600 Tokyo Broadcasting System, Inc.......... 89,333
------------
153,003
------------
BUILDING PRODUCTS
26,000 Nippon Sheet Glass Company, Ltd......... 53,520
16,000 Tostem Inax Holding Corp................ 170,996
46,000 Toto Ltd................................ 231,121
------------
455,637
------------
CHEMICALS: AGRICULTURAL
13,000 Nissan Chemical Industries, Ltd......... 58,654
------------
CHEMICALS: MAJOR DIVERSIFIED
102,000 Asahi Kasei Corp........................ 278,525
21,000 Ishihara Sangyo Kaisha, Ltd.*........... 27,348
143,000 Mitsubishi Chemical Corp................ 237,893
------------
543,766
------------
CHEMICALS: SPECIALTY
12,000 Daicel Chemical Industries, Ltd......... 40,229
58,000 Dainippon Ink & Chemicals, Inc.......... 90,153
37,000 Denki Kagaku Kogyo Kabushiki Kaisha..... 82,381
13,000 JSR Corp................................ 135,876
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
22,000 Kaneka Corp............................. $ 100,000
31,000 Kuraray Co., Ltd........................ 176,592
45,000 Mitsubishi Rayon Co., Ltd............... 103,218
44,000 Mitsui Chemicals, Inc................... 179,298
28,397 Shin-Etsu Chemical Co., Ltd............. 851,767
7,000 Showa Denko K.K.*....................... 10,645
13,000 Sumitomo Bakelite Co., Ltd.............. 46,093
114,000 Sumitomo Chemical Co., Ltd.............. 309,377
43,000 Tosoh Corp.............................. 97,185
------------
2,222,814
------------
COMMERCIAL PRINTING/FORMS
71,000 Dai Nippon Printing Co., Ltd............ 690,791
65,000 Toppan Printing Co., Ltd................ 412,872
------------
1,103,663
------------
COMPUTER PROCESSING HARDWARE
115,000 Fujitsu Ltd.*........................... 321,753
------------
CONSTRUCTION MATERIALS
6,000 Taiheyo Cement Corp..................... 8,318
------------
CONSUMER SUNDRIES
1,900 Sanrio Co., Ltd.*....................... 7,950
------------
CONTAINERS/PACKAGING
20,000 Toyo Seikan Kaisha, Ltd................. 178,625
------------
DEPARTMENT STORES
6,000 Hankyu Department Stores, Inc........... 32,919
7,600 Isetan Co., Ltd......................... 51,275
16,800 Marui Co., Ltd.......................... 140,165
11,000 Takashimaya Co., Ltd.................... 49,168
------------
273,527
------------
ELECTRIC UTILITIES
16,000 Chubu Electric Power Co................. 322,635
81,800 Kansai Electric Power Co., Inc.......... 1,371,122
10,400 Kyushu Electric Power Co., Inc.......... 162,003
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
11
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
39,500 Tohoku Electric Power Co., Inc.......... $ 630,234
116,400 Tokyo Electric Power Co., Inc........... 2,366,728
------------
4,852,722
------------
ELECTRICAL PRODUCTS
15,000 Fujikura Ltd............................ 33,902
52,000 Furukawa Electric Co., Ltd.............. 95,681
2,500 Mabuchi Motor Co., Ltd.................. 187,153
12,000 Matsushita Electric Works, Ltd.......... 63,015
36,000 NGK Insulators, Ltd..................... 174,828
2,500 Nidec Corp.............................. 132,121
48,000 Sumitomo Electric Industries, Ltd....... 268,997
1,000 Ushio Inc............................... 11,259
------------
966,956
------------
ELECTRONIC COMPONENTS
12,000 Alps Electric Co., Ltd.................. 129,760
22,000 Citizen Watch Co., Ltd.................. 116,266
2,200 Hirose Electric Co., Ltd................ 157,671
8,000 Hoya Corp............................... 473,870
16,400 Murata Manufacturing Co., Ltd........... 585,616
8,000 Taiyo Yuden Co., Ltd.................... 61,099
7,500 TDK Corp................................ 260,880
------------
1,785,162
------------
ELECTRONIC EQUIPMENT/ INSTRUMENTS
60,000 Canon, Inc.............................. 2,429,844
39,000 Casio Computer Co., Ltd................. 237,565
2,300 Keyence Corp............................ 370,450
12,600 Kyocera Corp............................ 616,132
173,000 Matsushita Electric Industrial Co.,
Ltd.................................... 1,380,860
173,000 Mitsubishi Electric Corp................ 449,143
104,000 NEC Corp.*.............................. 325,928
48,000 OKI Electric Industry Co., Ltd.*........ 103,243
18,000 Omron Corp.............................. 290,371
45,000 Ricoh Co., Ltd.......................... 691,522
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
154,000 Sanyo Electric Co. Ltd.................. $ 482,625
197,000 Toshiba Corp............................ 526,348
5,000 Yokogawa Electric Corp.................. 35,708
------------
7,939,739
------------
ELECTRONIC PRODUCTION EQUIPMENT
6,400 Advantest Corp.......................... 215,090
19,000 Nikon Corporation*...................... 126,911
10,000 Tokyo Electron Ltd...................... 375,567
------------
717,568
------------
ELECTRONICS/APPLIANCE STORES
600 Yamada Denki Co., Ltd................... 11,595
------------
ELECTRONICS/APPLIANCES
29,000 Fuji Photo Film Co., Ltd................ 740,716
14,454 Pioneer Corp............................ 290,246
84,000 Sharp Corp.............................. 882,205
66,496 Sony Corp............................... 1,620,218
------------
3,533,385
------------
ENGINEERING & CONSTRUCTION
14,000 JGC Corp................................ 98,807
98,000 Kajima Corp............................. 209,141
48,000 Obayashi Corp........................... 131,070
75,000 Shimizu Corporation..................... 196,606
7,000 Taisei Corp............................. 14,939
------------
650,563
------------
FINANCE/RENTAL/LEASING
8,910 Acom Co., Ltd........................... 250,786
1,250 Aiful Corp.............................. 47,051
7,500 Credit Saison Co., Ltd.................. 141,468
6,200 Orix Corp............................... 283,902
8,450 Promise Co., Ltd........................ 276,886
9,410 Takefuji Corp........................... 490,977
------------
1,491,070
------------
FOOD RETAIL
26,600 Aeon Co., Ltd........................... 605,663
21,000 Ito-Yokado Co., Ltd..................... 494,917
500 Lawson, Inc............................. 15,376
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
12
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
17,000 Seven - Eleven Japan Co., Ltd........... $ 405,646
------------
1,521,602
------------
FOOD: MEAT/FISH/DAIRY
22,000 Nippon Meat Packers, Inc................ 197,967
7,000 Yakult Honsha Co., Ltd.................. 102,924
------------
300,891
------------
FOOD: SPECIALTY/CANDY
52,000 Ajinomoto Co., Inc...................... 528,651
900 House Foods Corp........................ 8,189
11,000 Kikkoman Corp........................... 68,669
16,000 Meiji Seika Kaisha Ltd.................. 53,504
5,600 Nissin Food Products Co., Ltd........... 122,332
9,000 Yamazaki Baking Co., Ltd................ 56,411
------------
837,756
------------
GAS DISTRIBUTORS
157,000 Osaka Gas Co., Ltd...................... 455,092
217,000 Tokyo Gas Co., Ltd...................... 707,410
------------
1,162,502
------------
HOME BUILDING
10,700 Daito Trust Construction Co., Ltd....... 204,524
53,000 Daiwa House Industry Co., Ltd........... 320,618
26,000 Sekisui Chemical Co., Ltd............... 66,846
61,000 Sekisui House, Ltd...................... 448,967
------------
1,040,955
------------
HOUSEHOLD/PERSONAL CARE
35,000 Kao Corp................................ 639,598
31,000 Shiseido Company, Ltd................... 283,641
3,400 Uni-Charm Corp.......................... 135,691
------------
1,058,930
------------
INDUSTRIAL CONGLOMERATES
208,000 Hitachi Ltd............................. 695,547
61,000 Kawasaki Heavy Industries, Ltd.......... 50,227
------------
745,774
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
INDUSTRIAL MACHINERY
22,000 Amada Co., Ltd.......................... $ 51,941
4,000 Daifuku Co., Ltd........................ 10,687
12,000 Daikin Industries Ltd................... 200,034
15,900 Fanuc Ltd............................... 651,924
1,900 Fuji Machine MFG Co., Ltd............... 12,771
84,000 Ishikawajima-Harima Heavy Industries
Co., Ltd............................... 76,928
299,000 Mitsubishi Heavy Industries, Ltd........ 665,728
1,800 THK Co., Ltd............................ 16,636
------------
1,686,649
------------
INDUSTRIAL SPECIALTIES
99,000 Asahi Glass Company, Ltd................ 528,189
14,400 Nitto Denko Corp........................ 414,989
4,000 Noritake Co., Ltd....................... 9,981
------------
953,159
------------
INFORMATION TECHNOLOGY SERVICES
4,700 CSK Corp................................ 83,125
91 NTT Data Corp........................... 215,611
15,200 Softbank Corp........................... 170,748
------------
469,484
------------
INVESTMENT BANKS/BROKERS
102,000 Daiwa Securities Group Inc.............. 401,932
35,000 Nikko Cordial Corp...................... 94,102
144,000 Nomura Holdings, Inc.................... 1,428,869
------------
1,924,903
------------
MAJOR BANKS
86,043 Mitsui Trust Holdings, Inc.*............ 164,828
24,000 Sumitomo Trust & Banking Co., Ltd....... 68,157
------------
232,985
------------
MAJOR TELECOMMUNICATIONS
623 Nippon Telegraph & Telephone Corp....... 2,187,985
------------
MARINE SHIPPING
3,000 Kamigumi Co. Ltd........................ 13,762
5,000 Kawasaki Kisen Kaisha, Ltd.............. 11,469
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
13
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
6,000 Mitsubishi Logistics Corp............... $ 34,230
7,000 Mitsui O.S.K. Lines, Ltd................ 18,350
84,000 Nippon Yusen Kabushiki Kaisha........... 284,423
------------
362,234
------------
MEDICAL SPECIALTIES
13,000 Olympus Optical Co., Ltd................ 225,550
18,300 Terumo Corp............................. 304,897
------------
530,447
------------
METAL FABRICATIONS
22,000 Minebea Co., Ltd........................ 65,434
51,000 Mitsui Mining & Smelting Co., Ltd....... 134,120
58,000 NSK Ltd................................. 154,966
35,000 NTN Corp................................ 134,095
------------
488,615
------------
MISCELLANEOUS COMMERCIAL SERVICES
380 Bellsystem 24, Inc...................... 48,849
3,800 Meitec Corp............................. 96,740
23,000 Secom Co., Ltd.......................... 537,221
------------
682,810
------------
MISCELLANEOUS MANUFACTURING
26,000 Ebara Corp.............................. 74,492
6,600 Kurita Water Industries Ltd............. 57,338
11,000 Takuma Co., Ltd......................... 55,823
------------
187,653
------------
MOTOR VEHICLES
49,204 Honda Motor Co., Ltd.................... 1,632,968
182,400 Nissan Motor Co., Ltd................... 1,402,252
215,600 Toyota Motor Corp....................... 4,890,943
------------
7,926,163
------------
MOVIES/ENTERTAINMENT
600 Namco Ltd............................... 8,424
3,600 Oriental Land Co., Ltd.................. 150,933
6,600 TOHO Co., Ltd........................... 57,061
------------
216,418
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
OFFICE EQUIPMENT/SUPPLIES
10,400 Kokuyo Co., Ltd......................... $ 79,254
------------
OIL & GAS PRODUCTION
12,000 Teikoku Oil Co., Ltd.................... 34,482
------------
OIL REFINING/MARKETING
151,000 Nippon Oil Corp......................... 602,630
17,000 Showa Shell Sekiyu K.K.................. 108,982
8,000 TonenGeneral Sekiyu K.K................. 50,949
------------
762,561
------------
OTHER CONSUMER SERVICES
9,300 Benesse Corporation..................... 124,240
------------
OTHER METALS/MINERALS
21,000 Dowa Mining Co., Ltd.................... 69,694
32,500 Nippon Mining Holdings, Inc............. 56,797
41,000 Sumitomo Metal Mining Co., Ltd.......... 123,668
------------
250,159
------------
PACKAGED SOFTWARE
3,200 Oracle Corp............................. 80,928
3,200 Trend Micro Inc.*....................... 38,985
------------
119,913
------------
PHARMACEUTICALS: MAJOR
39,900 Sankyo Co., Ltd......................... 579,291
59,800 Takeda Chemical Industries, Ltd......... 2,195,648
------------
2,774,939
------------
PHARMACEUTICALS: OTHER
23,000 Chugai Pharmaceutical Co., Ltd.......... 241,556
15,200 Daiichi Pharmaceutical Co., Ltd......... 192,842
17,100 Eisai Co., Ltd.......................... 302,432
6,000 Fujisawa Pharmaceutical Co., Ltd........ 101,832
23,000 Kyowa Hakko Kogyo Co., Ltd.............. 103,386
21,000 Shionogi & Co., Ltd..................... 249,840
28,000 Taisho Pharmaceutical Co., Ltd.......... 395,463
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
14
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
18,800 Yamanouchi Pharmaceutical Co., Ltd...... $ 475,449
------------
2,062,800
------------
PROPERTY - CASUALTY INSURERS
9,000 Mitsui Sumitomo Insurance Co., Ltd...... 42,346
6,000 Sompo Japan Insurance Inc............... 27,474
------------
69,820
------------
PULP & PAPER
4,000 Mitsubishi Paper Mills Ltd.*............ 4,235
70 Nippon Unipac Holding................... 225,256
95,000 Oji Paper Co. Ltd....................... 359,981
------------
589,472
------------
RAILROADS
131 Central Japan Railway Co................ 851,907
300 East Japan Railway Co................... 1,361,116
15,000 Keio Electric Railway Co., Ltd.......... 72,971
138,000 Kinki Nippon Railway Co., Ltd.*......... 345,522
32,000 Leihin Electric Express Railway Co.,
Ltd.................................... 153,520
80,000 Tobu Railway Co., Ltd................... 224,500
96,000 Tokyu Corp.............................. 260,528
27 West Japan Railway Co................... 84,389
------------
3,354,453
------------
REAL ESTATE DEVELOPMENT
84,000 Mitsubishi Estate Co., Ltd.............. 492,623
55,000 Mitsui Fudosan Co., Ltd................. 296,673
3,000 Sumitomo Realty & Development Co.,
Ltd.................................... 9,830
------------
799,126
------------
RECREATIONAL PRODUCTS
8,400 Konami Corp............................. 110,664
15,000 Konica Corp............................. 137,498
9,600 Nintendo Co., Ltd....................... 751,739
8,800 Shimano, Inc............................ 139,963
11,400 Yamaha Corp............................. 129,210
------------
1,269,074
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
RESTAURANTS
11,800 Skylark Co., Ltd........................ $ 126,903
------------
SEMICONDUCTORS
7,100 Rohm Co., Ltd........................... 733,146
------------
SPECIALTY STORES
1,000 UNY Co., Ltd............................ 8,478
------------
STEEL
41,200 JFE Holdings, Inc....................... 497,432
533,000 Nippon Steel Co......................... 595,606
25,000 Sumitomo Metal Industries, Ltd.......... 11,133
------------
1,104,171
------------
TEXTILES
11,000 Nisshinbo Industries, Inc............... 47,227
67,000 Teijin Ltd.............................. 146,925
104,000 Toray Industries, Inc................... 251,655
------------
445,807
------------
TOBACCO
51 Japan Tobacco, Inc...................... 297,807
------------
TRUCKS/CONSTRUCTION/FARM MACHINERY
95,000 Komatsu Ltd............................. 363,174
95,000 Kubota Corp............................. 219,501
5,400 SMC Corporation......................... 407,427
------------
990,102
------------
WHOLESALE DISTRIBUTORS
104,000 Itochu Corp............................. 218,451
104,000 Marubeni Corporation.................... 98,740
72,000 Mitsubishi Corp......................... 428,903
10,000 Mitsui & Co., Ltd....................... 47,471
68,000 Sumitomo Corporation.................... 274,240
------------
1,067,805
------------
WIRELESS TELECOMMUNICATIONS
488 NTT DoCoMo, Inc......................... 1,008,637
------------
Total Japan............................. 73,574,154
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
15
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
Luxembourg (0.0%)
STEEL
12,874 Arcelor*................................ $ 145,855
------------
Netherlands (7.3%)
AEROSPACE & DEFENSE
4,482 European Aeronautic Defense and Space
Co..................................... 41,714
------------
AIR FREIGHT/COURIERS
37,495 TPG NV.................................. 585,666
------------
BEVERAGES: ALCOHOLIC
66,898 Heineken NV............................. 2,486,771
------------
CONSTRUCTION MATERIALS
36,209 James Hardie Industries NV.............. 148,742
------------
ELECTRONIC PRODUCTION EQUIPMENT
4,033 ASML Holding NV*........................ 34,877
------------
FINANCIAL CONGLOMERATES
87,656 ING Groep NV (Share Certificates)....... 1,424,999
------------
FOOD: MAJOR DIVERSIFIED
97,599 Unilever NV (Share Certificates)........ 6,155,724
------------
INDUSTRIAL CONGLOMERATES
98,382 Koninklijke (Royal) Philips Electronics
NV..................................... 1,832,403
------------
INDUSTRIAL SPECIALTIES
9,282 Akzo Nobel NV........................... 206,586
------------
INTEGRATED OIL
251,657 Royal Dutch Petroleum Co................ 10,305,114
------------
LIFE/HEALTH INSURANCE
43,503 Aegon NV................................ 442,800
43,503 Aegon NV (Rights)....................... 17,712
------------
460,512
------------
MAJOR BANKS
100,730 ABN AMRO Holding NV..................... 1,703,941
------------
MAJOR TELECOMMUNICATIONS
39,844 Koninklijke (Royal) KPN NV*............. 265,325
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
PERSONNEL SERVICES
21,499 Vedior NV*.............................. $ 141,963
------------
PUBLISHING: BOOKS/ MAGAZINES
30,737 Reed Elsevier NV........................ 350,293
14,736 Wolters Kluwer NV....................... 192,150
------------
542,443
------------
REAL ESTATE DEVELOPMENT
9,110 Rodamco Europe NV....................... 443,278
2,860 Wereldhave NV........................... 164,887
------------
608,165
------------
REAL ESTATE INVESTMENT TRUSTS
12,245 Corio NV................................ 365,429
7,610 Eurocommercial Properties NV............ 172,179
------------
537,608
------------
WHOLESALE DISTRIBUTORS
17,690 Buhrmann NV............................. 59,097
8,681 Hagemeyer NV............................ 42,095
------------
101,192
------------
Total Netherlands....................... 27,583,745
------------
New Zealand (0.0%)
FOREST PRODUCTS
62,696 Carter Holt Harvey Ltd.................. 57,198
------------
MAJOR TELECOMMUNICATIONS
22,243 Telecom Corporation of New Zealand
Ltd.................................... 59,633
------------
Total New Zealand....................... 116,831
------------
Norway (0.3%)
FOOD: SPECIALTY/CANDY
13,400 Orkla ASA............................... 233,316
------------
INDUSTRIAL CONGLOMERATES
14,767 Norsk Hydro ASA......................... 623,827
------------
INTEGRATED OIL
6,300 Statoil ASA............................. 49,902
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
16
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
MISCELLANEOUS MANUFACTURING
3,815 Tomra System ASA........................ $ 18,022
------------
PULP & PAPER
4,400 Norske Skogindustrier ASA............... 60,284
------------
REGIONAL BANKS
21,400 DnB Holding ASA......................... 102,010
557 Gjensidige NOR ASA...................... 19,277
------------
121,287
------------
TELECOMMUNICATION EQUIPMENT
1,400 Tandberg ASA*........................... 5,435
------------
Total Norway............................ 1,112,073
------------
Portugal (0.6%)
ELECTRIC UTILITIES
819,498 Electricidade de Portugal, S.A.......... 1,483,313
------------
FOOD RETAIL
8,898 Jeronimo Martins SGPS, S.A.*............ 70,487
26,090 Sonae, SGPS., S.A.*..................... 11,369
------------
81,856
------------
MAJOR TELECOMMUNICATIONS
33,073 Portugal Telecom, SGPS, S.A. (Registered
Shares)................................ 236,865
------------
OTHER TRANSPORTATION
67,770 Brisa-Auto Estradas de Portugal, S.A.... 365,725
------------
REGIONAL BANKS
88,728 Banco Comercial Portugues, S.A.......... 125,902
2,652 Banco Espirito Santo, S.A. (Registered
Shares)................................ 38,075
------------
163,977
------------
Total Portugal.......................... 2,331,736
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
Singapore (1.5%)
AEROSPACE & DEFENSE
291,000 Singapore Technologies Engineering
Ltd.................................... $ 262,369
------------
AIRLINES
117,000 Singapore Airlines Ltd.................. 623,042
------------
BEVERAGES: ALCOHOLIC
33,200 Fraser & Neave Ltd...................... 149,667
------------
ELECTRONIC COMPONENTS
16,000 Venture Corp., Ltd...................... 133,438
------------
FINANCIAL CONGLOMERATES
91,000 Keppel Corp., Ltd....................... 228,705
------------
HOTELS/RESORTS/CRUISELINES
48,000 Hotel Properties Ltd.................... 24,614
15,000 Overseas Union Enterprise Ltd........... 48,180
84,000 United Overseas Land, Ltd............... 81,889
------------
154,683
------------
MAJOR BANKS
154,115 DBS Group Holdings Ltd.................. 755,551
------------
MAJOR TELECOMMUNICATIONS
819,100 Singapore Telecommunications Ltd........ 669,275
------------
MISCELLANEOUS MANUFACTURING
6,099 Haw Par Corp., Ltd...................... 11,204
------------
PUBLISHING: NEWSPAPERS
49,000 Singapore Press Holdings Ltd............ 455,596
------------
REAL ESTATE DEVELOPMENT
190,750 Capitaland Ltd.......................... 110,714
94,000 City Developments Ltd................... 179,037
------------
289,751
------------
REGIONAL BANKS
147,950 Oversea - Chinese Banking Corp., Ltd.... 787,855
151,104 United Overseas Bank Ltd................ 885,541
------------
1,673,396
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
17
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
SEMICONDUCTORS
40,000 Chartered Semiconductor Manufacturing
Ltd.*.................................. $ 15,553
------------
SPECIALTY STORES
19,635 Cycle and Carriage Ltd.................. 45,586
------------
TRUCKS/CONSTRUCTION/FARM MACHINERY
173,000 SembCorp Industries Ltd................. 115,034
------------
Total Singapore......................... 5,582,850
------------
Spain (4.7%)
ELECTRIC UTILITIES
89,633 Endesa S.A.............................. 1,272,868
85,895 Iberdrola S.A........................... 1,384,854
77,341 Union Fenosa, S.A....................... 1,077,571
------------
3,735,293
------------
ENGINEERING & CONSTRUCTION
520 Acciona S.A............................. 24,983
6,442 ACS, Actividades de Construccion y
Servicios, S.A......................... 242,920
9,440 Fomento de Construcciones y Contratas
S.A.................................... 241,955
13,847 Grupo Dragados, S.A..................... 264,868
1,116 Grupo Ferrovial, S.A.................... 29,651
------------
804,377
------------
GAS DISTRIBUTORS
89,015 Gas Natural SDG, S.A.................... 1,705,678
------------
HOTELS/RESORTS/CRUISELINES
8,922 Sol Melia S.A........................... 35,089
------------
MAJOR BANKS
171,022 Banco Bilbao Vizcaya Argentaria, S.A.... 1,723,568
240,629 Banco Santander Central Hispano, S.A.... 1,892,738
------------
3,616,306
------------
MAJOR TELECOMMUNICATIONS
383,386 Telefonica S.A.*........................ 4,245,020
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
MISCELLANEOUS COMMERCIAL SERVICES
52,411 Amadeus Global Travel Distribution S.A.
(A Shares)............................. $ 262,343
------------
OIL REFINING/MARKETING
83,164 Repsol-YPF, S.A......................... 1,212,595
------------
OTHER TRANSPORTATION
25,386 Acesa Infraestructuras, S.A............. 330,438
------------
REAL ESTATE DEVELOPMENT
19,520 Inmobiliaria Colonial, S.A.............. 332,598
15,700 Inmobiliaria Urbis S.A.................. 113,143
21,465 Metrovacesa S.A......................... 522,826
13,960 Vallehermoso S.A........................ 144,433
------------
1,113,000
------------
RESTAURANTS
20,667 TelePizza, S.A.*........................ 24,246
------------
STEEL
1,874 Acerinox S.A............................ 69,913
------------
TOBACCO
22,074 Altadis, S.A............................ 569,722
------------
WATER UTILITIES
13,387 Sociedad General de Aguas de Barcelona,
S.A.................................... 155,855
------------
Total Spain............................. 17,879,875
------------
Sweden (2.4%)
APPAREL/FOOTWEAR RETAIL
80,800 Hennes & Mauritz AB (B Shares).......... 1,800,965
------------
ELECTRONICS/APPLIANCES
30,400 Electrolux AB (Series B)................ 571,485
------------
ENGINEERING & CONSTRUCTION
6,300 JM AB................................... 65,967
47,630 Skanska AB (B Shares)*.................. 275,908
------------
341,875
------------
HOUSEHOLD/PERSONAL CARE
7,286 Svenska Cellulosa AB (B Shares)......... 247,168
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
18
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
INDUSTRIAL MACHINERY
5,400 Assa Abloy AB (B Shares)................ $ 51,584
12,870 Atlas Copco AB (A Shares)............... 312,868
7,069 Atlas Copco AB (B Shares)............... 160,159
26,209 Sandvik AB.............................. 667,631
------------
1,192,242
------------
INFORMATION TECHNOLOGY SERVICES
28,200 WM-Data AB (B Shares)*.................. 38,335
------------
LIFE/HEALTH INSURANCE
25,888 Skandia Forsakrings AB.................. 75,457
------------
MAJOR BANKS
30,200 Skandinaviska Enskilda Banken AB........ 314,375
53,000 Svenska Handelsbanken AB (A Shares)..... 843,804
------------
1,158,179
------------
MAJOR TELECOMMUNICATIONS
3,385 Tele2 AB (B Shares)*.................... 113,173
181,348 TeliaSonera AB*......................... 646,291
------------
759,464
------------
METAL FABRICATIONS
8,377 SKF AB (B Shares)....................... 243,142
------------
MISCELLANEOUS COMMERCIAL SERVICES
64,700 Securitas AB (B Shares)................. 760,673
------------
PULP & PAPER
4,900 Holmen AB (B Shares).................... 126,920
------------
REAL ESTATE DEVELOPMENT
8,740 Castellum AB............................ 126,839
------------
REGIONAL BANKS
172,184 Nordea AB............................... 915,177
------------
STEEL
5,100 SSAB Svenskt Stal AB (Series A)......... 67,143
------------
TOBACCO
28,800 Swedish Match AB........................ 213,388
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
TRUCKS/CONSTRUCTION/FARM MACHINERY
5,290 Volvo AB (A Shares)..................... $ 101,713
19,530 Volvo AB (B Shares)..................... 391,059
------------
492,772
------------
Total Sweden............................ 9,131,224
------------
Switzerland (8.3%)
BUILDING PRODUCTS
85 Schindler Holding AG*................... 14,236
------------
CHEMICALS: AGRICULTURAL
3,607 Syngenta AG*............................ 186,285
------------
CHEMICALS: SPECIALTY
2,400 Ciba Specialty Chemicals AG (Registered
Shares)*............................... 165,914
4,700 Clariant AG (Registered Shares)......... 52,534
1,250 Lonza Group AG (Registered Shares)...... 75,946
------------
294,394
------------
COMPUTER PERIPHERALS
1,270 Logitech International S.A. (Registered
Shares)*............................... 46,850
------------
CONSTRUCTION MATERIALS
950 Holcim Ltd. (B Shares).................. 178,379
------------
ELECTRONIC EQUIPMENT/ INSTRUMENTS
400 Kudelski S.A. - Bearer*................. 6,921
------------
FINANCIAL CONGLOMERATES
91,766 UBS AG (Registered Shares).............. 4,356,752
------------
FOOD: MAJOR DIVERSIFIED
39,710 Nestle S.A. (Registered Shares)......... 8,100,793
------------
HOUSEHOLD/PERSONAL CARE
390 Givaudan (Registered Shares)............ 151,062
------------
INDUSTRIAL CONGLOMERATES
20,597 ABB Ltd.*............................... 63,368
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
19
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
133 Sulzer AG (Registered Shares)........... $ 16,412
100 Unaxis Holding AG (Registered Shares)... 7,987
------------
87,767
------------
MAJOR BANKS
88,662 Credit Suisse Group*.................... 2,119,410
------------
MAJOR TELECOMMUNICATIONS
3,244 Swisscom AG (Registered Shares)......... 1,004,027
------------
MEDICAL SPECIALTIES
236 Centerpulse AG (Registered Shares)*..... 51,626
------------
METAL FABRICATIONS
87 Georg Fischer AG (Registered Shares)*... 8,617
------------
MISCELLANEOUS COMMERCIAL SERVICES
1,130 SGS Societe Generale de Surveillance
Holding S.A............................ 395,592
------------
MULTI-LINE INSURANCE
6,032 Zurich Financial Services AG............ 636,400
------------
OTHER CONSUMER SPECIALTIES
2,390 Swatch Group AG (B Shares).............. 201,018
2,500 Swatch Group AG (Registered Shares)..... 42,884
------------
243,902
------------
PERSONNEL SERVICES
23,020 Adecco S.A. (Registered Shares)......... 883,164
------------
PHARMACEUTICALS: MAJOR
180,720 Novartis AG (Registered Shares)......... 7,133,333
47,800 Roche Holding AG........................ 3,043,485
14,690 Roche Holding AG - Bearer............... 1,511,919
------------
11,688,737
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
PROPERTY - CASUALTY INSURERS
12,925 Swiss Re (Registered Shares)............ $ 844,883
------------
REAL ESTATE DEVELOPMENT
1,100 PSP Swiss Property AG................... 124,170
------------
SPECIALTY STORES
217 Valora Holding AG....................... 38,984
------------
Total Switzerland....................... 31,462,951
------------
United Kingdom (28.5%)
ADVERTISING/MARKETING SERVICES
47,035 WPP Group PLC........................... 334,721
------------
AEROSPACE & DEFENSE
503,843 BAE Systems PLC......................... 1,022,721
238,274 Rolls-Royce PLC......................... 345,606
------------
1,368,327
------------
AIRLINES
134,466 British Airways PLC*.................... 271,870
------------
ALUMINUM
78,321 BHP Billiton PLC........................ 400,577
------------
AUTO PARTS: O.E.M.
54,736 GKN PLC................................. 180,218
------------
BEVERAGES: ALCOHOLIC
432,506 Diageo PLC.............................. 4,797,444
24,949 Scottish & Newcastle PLC................ 142,557
------------
4,940,001
------------
BROADCASTING
213,239 Granada PLC............................. 232,610
------------
CABLE/SATELLITE TV
92,600 British Sky Broadcasting Group PLC*..... 959,797
------------
CASINO/GAMING
191,480 Hilton Group PLC........................ 468,245
------------
CATALOG/SPECIALTY DISTRIBUTION
99,203 GUS PLC................................. 916,851
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
20
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
CHEMICALS: MAJOR DIVERSIFIED
39,828 Imperial Chemical Industries PLC........ $ 82,595
------------
CHEMICALS: SPECIALTY
17,463 BOC Group PLC........................... 220,219
------------
COMMERCIAL PRINTING/FORMS
37,560 De La Rue PLC........................... 137,474
------------
CONSTRUCTION MATERIALS
17,494 BPB PLC................................. 86,678
25,149 Hanson PLC.............................. 140,886
9,909 RMC Group PLC........................... 63,350
------------
290,914
------------
CONTAINERS/PACKAGING
15,932 Rexam PLC............................... 99,565
------------
DEPARTMENT STORES
206,432 Marks & Spencer Group PLC............... 961,776
------------
DRUGSTORE CHAINS
69,064 Boots Group PLC......................... 631,954
------------
ELECTRIC UTILITIES
221,781 National Grid Transco PLC............... 1,456,882
305,252 Scottish & Southern Energy PLC.......... 3,137,096
266,900 Scottish Power PLC...................... 1,658,354
------------
6,252,332
------------
ELECTRONICS/APPLIANCE STORES
154,390 Dixons Group PLC........................ 274,522
------------
ENGINEERING & CONSTRUCTION
6,240 AMEC PLC................................ 23,138
8,989 Balfour Beatty PLC...................... 25,753
------------
48,891
------------
FINANCIAL CONGLOMERATES
344,167 Lloyds TSB Group PLC.................... 2,263,588
------------
FINANCIAL PUBLISHING/ SERVICES
75,891 Reuters Group PLC....................... 163,750
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
FOOD DISTRIBUTORS
218,357 Compass Group PLC....................... $ 1,005,120
------------
FOOD RETAIL
161,598 Sainsbury (J.) PLC...................... 610,837
592,452 Tesco PLC............................... 1,874,894
------------
2,485,731
------------
FOOD: MAJOR DIVERSIFIED
374,615 Unilever PLC............................ 3,682,295
------------
FOOD: SPECIALTY/CANDY
251,939 Cadbury Schweppes PLC................... 1,403,319
30,199 Tate & Lyle PLC......................... 143,353
------------
1,546,672
------------
GAS DISTRIBUTORS
145,821 Centrica PLC............................ 387,472
------------
HOME BUILDING
2,094 Taylor Woodrow PLC...................... 6,560
------------
HOME IMPROVEMENT CHAINS
107,759 Kingfisher PLC.......................... 421,105
------------
HOTELS/RESORTS/CRUISELINES
16,045 Carnival PLC............................ 400,577
85,616 InterContinental Hotels Group PLC*...... 519,993
------------
920,570
------------
HOUSEHOLD/PERSONAL CARE
65,162 Reckitt Benckiser PLC................... 1,149,278
------------
INDUSTRIAL CONGLOMERATES
10,644 Smiths Group PLC........................ 113,812
------------
INDUSTRIAL SPECIALTIES
21,432 Pilkington PLC.......................... 20,895
------------
INFORMATION TECHNOLOGY SERVICES
23,019 Logica CMG PLC.......................... 40,654
42,009 Misys PLC............................... 128,579
------------
169,233
------------
INTEGRATED OIL
334,710 BG Group PLC............................ 1,338,755
2,003,574 BP PLC.................................. 12,697,168
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
21
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
483,603 Shell Transport & Trading Co. PLC....... $ 2,896,603
------------
16,932,526
------------
LIFE/HEALTH INSURANCE
40,568 Prudential PLC.......................... 248,337
------------
MAJOR BANKS
429,032 Barclays PLC............................ 2,964,033
230,918 HBOS PLC................................ 2,705,329
600,077 HSBC Holdings PLC....................... 6,574,652
166,648 Royal Bank of Scotland Group PLC........ 4,370,861
------------
16,614,875
------------
MAJOR TELECOMMUNICATIONS
776,604 BT Group PLC............................ 2,224,934
------------
MARINE SHIPPING
53,413 Peninsular & Oriental Steam Navigation
Co..................................... 164,764
------------
MEDICAL SPECIALTIES
59,074 Amersham PLC............................ 424,645
36,550 Smith & Nephew PLC...................... 243,749
------------
668,394
------------
MISCELLANEOUS COMMERCIAL SERVICES
128,717 Brambles Industries PLC................. 382,655
120,327 Chubb PLC............................... 128,373
300,929 Hays PLC................................ 401,614
347,956 Rentokil Initial PLC.................... 1,039,978
83,742 Serco Group PLC......................... 201,704
------------
2,154,324
------------
MISCELLANEOUS MANUFACTURING
6,731 IMI PLC................................. 29,531
13,119 Kidde PLC............................... 15,097
3,075 Novar PLC............................... 5,431
------------
50,059
------------
MOTOR VEHICLES
2,453 TI Automotive Ltd.*..................... 0
------------
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
MOVIES/ENTERTAINMENT
37,913 Carlton Communications PLC.............. $ 63,626
41,940 EMI Group PLC........................... 80,439
2,704 Rank Group PLC.......................... 10,448
------------
154,513
------------
MULTI-LINE INSURANCE
45,848 Aviva PLC............................... 322,427
132,087 Legal & General Group PLC............... 163,614
29,248 Royal & Sun Alliance Insurance Group
PLC.................................... 51,071
------------
537,112
------------
OTHER METALS/MINERALS
35,628 Rio Tinto PLC........................... 681,053
------------
OTHER TRANSPORTATION
98,296 BAA PLC................................. 758,824
------------
PACKAGED SOFTWARE
77,190 Sage Group (The) PLC.................... 171,180
------------
PERSONNEL SERVICES
124,831 Capita Group PLC........................ 505,777
------------
PHARMACEUTICALS: MAJOR
175,604 AstraZeneca PLC......................... 6,890,396
616,567 GlaxoSmithKline PLC..................... 12,357,656
------------
19,248,052
------------
PRECIOUS METALS
8,129 Johnson Matthey PLC..................... 108,293
------------
PUBLISHING: BOOKS/ MAGAZINES
30,784 Pearson PLC............................. 256,589
55,627 Reed Elsevier PLC....................... 443,654
------------
700,243
------------
PULP & PAPER
29,873 Bunzl PLC............................... 215,096
------------
RESTAURANTS
85,616 Mitchells & Butlers PLC*................ 290,101
------------
SEMICONDUCTORS
26,445 ARM Holdings PLC*....................... 27,051
------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
22
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
NUMBER OF
SHARES VALUE
- ------------------------------------------------------------------
TOBACCO
122,894 British American Tobacco PLC............ $ 1,178,529
54,691 Imperial Tobacco Group PLC.............. 915,210
------------
2,093,739
------------
WATER UTILITIES
11,291 AWG PLC*................................ 96,638
36,135 Kelda Group PLC......................... 237,660
31,965 Severn Trent PLC........................ 365,291
------------
699,589
------------
WHOLESALE DISTRIBUTORS
7,705 Electrocomponents PLC................... 38,484
9,269 Wolseley PLC............................ 89,629
------------
128,113
------------
WIRELESS TELECOMMUNICATIONS
4,747,078 Vodafone Group PLC...................... 9,370,260
------------
Total United Kingdom.................... 108,156,749
------------
Total Common and Preferred Stocks and
Rights
(COST $450,467,164).................... 356,771,991
------------
<Caption>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ------------------------------------------------------------------
Short Term Investment (3.9%)
Repurchase Agreement
$ 16,257 Joint repurchase agreement account 1.34%
due 05/01/03 (dated 04/30/03; proceeds
$16,257,605) (a) (COST $16,257,000)..... $ 16,257,000
------------
</Table>
<Table>
Total Investments
(COST $466,724,164) (b)(c)............. 98.3% 373,028,991
Other Assets in Excess of Liabilities... 1.7 6,529,269
------ ------------
Net Assets.............................. 100.0% $379,558,260
====== ============
</Table>
- ---------------------------------------------------
++ CONSISTS OF ONE OR MORE CLASS OF SECURITIES TRADED TOGETHER AS A UNIT;
STOCK WITH ATTACHED WARRANTS.
* NON-INCOME PRODUCING SECURITY.
(a) COLLATERALIZED BY FEDERAL AGENCY AND U.S. TREASURY OBLIGATIONS.
(b) SECURITIES HAVE BEEN DESIGNATED AS COLLATERAL IN AN AMOUNT EQUAL TO
$100,313,292 IN CONNECTION WITH OPEN FORWARD FOREIGN CURRENCY CONTRACTS
AND OPEN FUTURES CONTRACTS.
(c) THE AGGREGATE COST FOR FEDERAL INCOME TAX PURPOSES APPROXIMATES THE
AGGREGATE COST FOR BOOK PURPOSES. THE AGGREGATE GROSS UNREALIZED
APPRECIATION IS $15,306,575 AND THE AGGREGATE GROSS UNREALIZED
DEPRECIATION IS $109,001,748, RESULTING IN NET UNREALIZED DEPRECIATION
OF $93,695,173.
<Table>
<Caption>
Futures Contracts Open at April 30, 2003:
UNDERLYING UNREALIZED
NUMBER OF DESCRIPTION, DELIVERY FACE AMOUNT APPRECIATION/
CONTRACTS LONG/SHORT MONTH, AND YEAR AT VALUE DEPRECIATION
- ---------------------------------------------------------------------------------------------------------------
52 Long EURX IBEX 35 Index May/2003 $3,752,944 $ (77,514)
44 Long EURX STOXX 50 June/2003 1,126,775 1,256
149 Long EURX STOXX 50 June/2003 3,815,669 (97,846)
---------
Net unrealized depreciation......................... $(174,105)
=========
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
23
<Page>
Morgan Stanley International Fund
PORTFOLIO OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
Forward Foreign Currency Contracts Open at April 30, 2003:
UNREALIZED
CONTRACTS IN EXCHANGE DELIVERY APPRECIATION
TO DELIVER FOR DATE (DEPRECIATION)
- -------------------------------------------------------------------------
GBP 275,085 $ 439,971 05/02/03 $ 303
JPY 4,200,000 $ 35,318 05/02/03 30
SEK 611,734 $ 75,013 05/05/03 95
$ 56,625 EUR 52,638 06/12/03 2,097
$ 353,769 EUR 332,440 06/12/03 17,094
EUR 505,790 $ 538,085 06/12/03 (26,165)
EUR 642,000 $ 707,112 06/12/03 (9,091)
EUR 694,282 $ 766,293 06/12/03 (8,234)
EUR 2,373,872 $ 2,524,494 06/12/03 (123,750)
$ 2,800,000 EUR 2,608,121 06/12/03 109,567
$ 2,825,678 EUR 2,654,091 06/12/03 135,173
$ 4,283,627 EUR 3,880,800 06/12/03 45,716
EUR 5,090,000 $ 5,606,151 06/12/03 (72,151)
$ 5,967,510 EUR 5,451,025 06/12/03 113,545
$ 7,214,426 EUR 6,700,000 06/12/03 259,960
EUR 8,257,480 $ 8,770,517 06/12/03 (441,362)
EUR 11,076,412 $ 12,228,359 06/12/03 (128,265)
$ 11,850,472 EUR 10,731,207 06/12/03 121,048
$ 12,127,832 EUR 10,980,880 06/12/03 122,217
$ 13,915,748 EUR 13,065,939 06/12/03 660,353
$ 14,115,903 EUR 12,776,539 06/12/03 137,348
$ 31,994,542 EUR 28,987,128 06/12/03 342,918
EUR 61,725,076 $ 68,129,053 06/12/03 (730,208)
EUR 4,547,486 $ 4,878,452 07/08/03 (190,934)
$ 4,878,725 EUR 4,547,486 07/08/03 190,661
$ 984,280 AUD 1,654,752 07/10/03 44,756
$ 1,636,000 AUD 2,662,110 07/10/03 19,478
GBP 2,755,449 $ 4,263,000 07/10/03 (121,269)
$ 4,318,175 GBP 2,755,449 07/10/03 66,094
$ 5,698,753 AUD 9,578,380 07/10/03 257,722
---------
Net unrealized appreciation..................... $ 794,746
=========
</Table>
CURRENCY ABBREVIATIONS:
<Table>
AUD Australian Dollar.
EUR Euro.
GBP British Pound.
JPY Japanese Yen.
SEK Swedish Krona.
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
24
<Page>
Morgan Stanley International Fund
SUMMARY OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED)
<Table>
<Caption>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------
Advertising/Marketing Services.......... $ 393,535 0.1%
Aerospace & Defense..................... 1,917,651 0.5
Agricultural Commodities/ Milling....... 75,046 0.0
Air Freight/Couriers.................... 1,215,009 0.3
Airlines................................ 1,244,174 0.3
Aluminum................................ 712,831 0.2
Apparel/Footwear........................ 1,247,866 0.3
Apparel/Footwear Retail................. 1,990,804 0.5
Auto Parts: O.E.M....................... 1,123,999 0.3
Automotive Aftermarket.................. 591,128 0.2
Beverages: Alcoholic.................... 9,486,704 2.5
Beverages: Non-Alcoholic................ 263,069 0.1
Biotechnology........................... 117,413 0.0
Broadcasting............................ 910,804 0.2
Building Products....................... 1,461,061 0.4
Cable/Satellite TV...................... 959,797 0.3
Casino/Gaming........................... 575,139 0.2
Catalog/Specialty Distribution.......... 916,851 0.3
Chemicals: Agricultural................. 244,938 0.1
Chemicals: Major Diversified............ 1,802,713 0.5
Chemicals: Specialty.................... 3,540,788 0.9
Commercial Printing/Forms............... 1,241,137 0.3
Computer Peripherals.................... 46,850 0.0
Computer Processing Hardware............ 321,753 0.1
Construction Materials.................. 1,959,996 0.5
Consumer Sundries....................... 7,950 0.0
Containers/Packaging.................... 782,053 0.2
Department Stores....................... 2,079,352 0.6
Drugstore Chains........................ 631,954 0.2
Electric Utilities...................... 20,810,453 5.5
Electrical Products..................... 1,569,641 0.4
Electronic Components................... 1,927,724 0.5
Electronic Equipment/ Instruments....... 7,946,662 2.1
Electronic Production Equipment......... 769,812 0.2
Electronics/Appliance Stores............ 286,117 0.1
Electronics/Appliances.................. 4,104,869 1.1
<Caption>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------
Engineering & Construction.............. $ 2,729,336 0.7%
Finance/Rental/Leasing.................. 1,491,070 0.4
Financial Conglomerates................. 9,493,793 2.5
Financial Publishing/Services........... 163,750 0.1
Food Distributors....................... 1,146,868 0.3
Food Retail............................. 6,522,159 1.7
Food: Major Diversified................. 20,014,897 5.3
Food: Meat/Fish/Dairy................... 300,891 0.1
Food: Specialty/Candy................... 2,791,856 0.7
Forest Products......................... 57,198 0.0
Gas Distributors........................ 3,675,481 1.0
Home Building........................... 1,047,515 0.3
Home Improvement Chains................. 421,105 0.1
Hospital/Nursing Management............. 62,005 0.0
Hotels/Resorts/Cruiselines.............. 1,450,151 0.4
Household/Personal Care................. 5,722,467 1.5
Industrial Conglomerates................ 6,361,673 1.7
Industrial Machinery.................... 3,052,906 0.8
Industrial Specialties.................. 1,180,640 0.3
Information Technology Services......... 949,176 0.3
Integrated Oil.......................... 30,867,520 8.1
Investment Banks/Brokers................ 2,001,910 0.5
Life/Health Insurance................... 2,391,515 0.6
Major Banks............................. 37,132,413 9.8
Major Telecommunications................ 16,043,711 4.2
Marine Shipping......................... 526,997 0.1
Media Conglomerates..................... 1,666,062 0.5
Medical Distributors.................... 81,443 0.0
Medical Specialties..................... 1,420,131 0.4
Medical/Nursing Services................ 182,239 0.0
Metal Fabrications...................... 740,374 0.2
Miscellaneous Commercial Services....... 5,048,769 1.3
Miscellaneous Manufacturing............. 368,178 0.1
Motor Vehicles.......................... 8,363,675 2.2
Movies/Entertainment.................... 370,931 0.1
Multi-Line Insurance.................... 2,402,706 0.6
Office Equipment/Supplies............... 79,254 0.0
Oil & Gas Production.................... 273,224 0.1
Oil Refining/Marketing.................. 7,537,252 2.0
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
25
<Page>
Morgan Stanley International Fund
SUMMARY OF INVESTMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
<Table>
<Caption>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------
Oilfield Services/Equipment............. $ 28,375 0.0%
Other Consumer Services................. 206,751 0.1
Other Consumer Specialties.............. 428,605 0.1
Other Metals/Minerals................... 3,564,342 0.9
Other Transportation.................... 1,595,777 0.4
Packaged Software....................... 1,335,762 0.4
Personnel Services...................... 1,530,903 0.4
Pharmaceuticals: Major.................. 38,956,486 10.3
Pharmaceuticals: Other.................. 2,162,154 0.6
Precious Metals......................... 202,224 0.1
Property - Casualty Insurers............ 1,029,846 0.3
Publishing: Books/Magazines............. 1,475,361 0.4
Publishing: Newspapers.................. 455,596 0.1
Pulp & Paper............................ 1,664,209 0.4
Railroads............................... 3,442,681 0.9
Real Estate Development................. 6,904,268 1.8
Real Estate Investment Trusts........... 956,329 0.3
Recreational Products................... 1,269,074 0.3
Regional Banks.......................... 3,382,444 0.9
Repurchase Agreement.................... 16,257,000 4.3
Restaurants............................. 571,225 0.2
Semiconductors.......................... 896,148 0.2
<Caption>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------
Specialty Stores........................ $ 144,896 0.0%
Steel................................... 1,699,220 0.4
Telecommunication Equipment............. 1,320,996 0.3
Textiles................................ 445,807 0.1
Tobacco................................. 3,174,656 0.8
Trucks/Construction/Farm Machinery...... 1,650,376 0.4
Water Utilities......................... 855,445 0.2
Wholesale Distributors.................. 1,407,054 0.4
Wireless Telecommunications............. 12,604,097 3.3
------------ -------
$$373,028,991 98.3%
============ =======
<Caption>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
- ------------------------------------------------------------------
Common Stocks........................... $356,026,031 93.8%
Preferred Stocks........................ 345,470 0.1
Rights.................................. 400,490 0.1
Short-Term Investments.................. 16,257,000 4.3
------------ -------
$373,028,991 98.3%
============ =======
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
26
<Page>
Morgan Stanley International Fund
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
APRIL 30, 2003 (UNAUDITED)
<Table>
Assets:
Investments in securities, at value
(cost $466,724,164).............................. $ 373,028,991
Unrealized appreciation on open forward foreign
currency contracts............................... 794,746
Cash (including $859,997 in foreign currency and
$2,825,641 segregated in connection with open
futures contracts)............................... 3,685,988
Receivable for:
Shares of beneficial interest sold.............. 3,745,093
Dividends....................................... 1,842,138
Foreign withholding taxes reclaimed............. 1,128,711
Investments sold................................ 183,914
Prepaid expenses and other assets................. 90,196
---------------
Total Assets.................................. 384,499,777
---------------
Liabilities:
Payable for:
Shares of beneficial interest redeemed.......... 4,207,755
Investment management fee....................... 301,738
Distribution fee................................ 179,528
Variation margin................................ 108,901
Accrued expenses and other payables............... 143,595
---------------
Total Liabilities............................. 4,941,517
---------------
Net Assets.................................... $ 379,558,260
===============
Composition of Net Assets:
Paid-in-capital................................... $ 650,886,402
Net unrealized depreciation....................... (92,841,098)
Accumulated undistributed net investment income... 820,442
Accumulated net realized loss..................... (179,307,486)
---------------
Net Assets.................................... $ 379,558,260
===============
Class A Shares:
Net Assets........................................ $57,638,762
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR
VALUE)........................................... 8,744,576
Net Asset Value Per Share..................... $ 6.59
===============
Maximum Offering Price Per Share,
(NET ASSET VALUE PLUS 5.54% OF NET ASSET
VALUE)....................................... $ 6.96
===============
Class B Shares:
Net Assets........................................ $187,334,768
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR
VALUE)........................................... 28,687,573
Net Asset Value Per Share..................... $ 6.53
===============
Class C Shares:
Net Assets........................................ $22,713,424
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR
VALUE)........................................... 3,479,666
Net Asset Value Per Share..................... $ 6.53
===============
Class D Shares:
Net Assets........................................ $111,871,306
Shares Outstanding (UNLIMITED AUTHORIZED, $.01 PAR
VALUE)........................................... 16,922,111
Net Asset Value Per Share..................... $ 6.61
===============
</Table>
Statement of Operations
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)
<Table>
Net Investment Income:
Income
Dividends (net of $425,907 foreign withholding
tax)............................................. $ 5,090,623
Interest.......................................... 55,045
---------------
Total Income.................................. 5,145,668
---------------
Expenses
Investment management fee......................... 1,921,879
Distribution fee (Class A shares)................. 36,996
Distribution fee (Class B shares)................. 985,257
Distribution fee (Class C shares)................. 118,708
Transfer agent fees and expenses.................. 474,684
Custodian fees.................................... 113,700
Shareholder reports and notices................... 60,905
Registration fees................................. 31,613
Professional fees................................. 28,621
Trustees' fees and expenses....................... 6,381
Other............................................. 43,460
---------------
Total Expenses................................ 3,822,204
---------------
Net Investment Income......................... 1,323,464
---------------
Net Realized and Unrealized Gain (Loss):
Net Realized Gain/Loss on:
Investments..................................... (36,961,216)
Futures contracts............................... 1,302,635
Foreign exchange transactions................... (779,253)
---------------
Net Realized Loss............................. (36,437,834)
---------------
Net Change in Unrealized Depreciation on:
Investments..................................... 31,771,398
Futures contracts............................... 96,723
Translation of forward foreign currency
contracts, other assets and liabilities
denominated in foreign currencies.............. 1,133,049
---------------
Net Appreciation.............................. 33,001,170
---------------
Net Loss...................................... (3,436,664)
---------------
Net Decrease...................................... $ (2,113,200)
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
27
<Page>
Morgan Stanley International Fund
FINANCIAL STATEMENTS CONTINUED
Statement of Changes in Net Assets
<Table>
<Caption>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
APRIL 30, 2003 OCTOBER 31, 2002
-------------- ----------------
(UNAUDITED)
Increase (Decrease) in Net Assets:
Operations:
Net investment income................... $ 1,323,464 $ 587,395
Net realized loss....................... (36,437,834) (88,740,632)
Net change in unrealized depreciation... 33,001,170 23,648,444
------------ -------------
Net Decrease........................ (2,113,200) (64,504,793)
------------ -------------
Dividends to Shareholders from Net
Investment Income:
Class A shares.......................... (569,363) (364,072)
Class C shares.......................... (47,597) --
Class D shares.......................... (1,783,043) (1,503,216)
------------ -------------
Total Dividends..................... (2,400,003) (1,867,288)
------------ -------------
Net decrease from transactions in shares
of beneficial interest................. (24,041,810) (66,791,171)
------------ -------------
Net Decrease........................ (28,555,013) (133,163,252)
Net Assets:
Beginning of period..................... 408,113,273 541,276,525
------------ -------------
End of Period
(INCLUDING ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME OF $820,442 AND
$1,896,981, RESPECTIVELY).............. $379,558,260 $ 408,113,273
============ =============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS
28
<Page>
Morgan Stanley International Fund
NOTES TO FINANCIAL STATEMENTS / / APRIL 30, 2003 (UNAUDITED)
1. Organization and Accounting Policies
Morgan Stanley International Fund (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
long-term capital growth. The Fund seeks to achieve its objective by investing,
under normal circumstances, at least 65% of its total assets in a diversified
portfolio of international common stocks and other equity securities. The Fund
was organized as a Massachusetts business trust on October 23, 1998 and
commenced operations June 28, 1999.
The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase and some
Class A shares, and most Class B shares and Class C shares are subject to a
contingent deferred sales charge imposed on shares redeemed within one year, six
years and one year, respectively. Class D shares are not subject to a sales
charge. Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.
The following is a summary of significant accounting policies:
A. Valuation of Investments -- (1) an equity portfolio security listed or traded
on the New York or American Stock Exchange or other exchange is valued at its
latest sale price prior to the time when assets are valued; if there were no
sales that day, the security is valued at the mean between the last reported bid
and asked price; (2) an equity portfolio security listed or traded on the Nasdaq
is valued at the Nasdaq Official Closing Price; if there were no sales that day,
the security is valued at the mean between the last reported bid and asked
price; (3) all other equity portfolio securities for which over-the-counter
market quotations are readily available are valued at the mean between the last
reported bid and asked price. In cases where a security is traded on more than
one exchange, the security is valued on the exchange designated as the primary
market; (4) futures are valued at the latest price published by the commodities
exchange on which they trade; (5) for equity securities traded on foreign
exchanges, the last reported sale price or the latest bid price may be used if
there were no sales on a particular day; (6) when market quotations are not
readily available or Morgan Stanley Investment Advisors Inc. (the "Investment
Manager") or Morgan Stanley Investment Management Inc. (the "Sub-Advisor"), an
affiliate of the Investment Manager, determines that the latest sale price, the
bid price or the mean between the last reported bid and asked price do not
reflect a security's market value, portfolio securities are valued at their fair
value as determined in good faith under procedures established by and under the
general supervision of the Fund's Trustees; (7) certain portfolio securities may
be valued by an outside pricing service approved by the Fund's Trustees; and
(8) short-term
29
<Page>
Morgan Stanley International Fund
NOTES TO FINANCIAL STATEMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
debt securities having a maturity date of more than sixty days at time of
purchase are valued on a mark-to-market basis until sixty days prior to maturity
and thereafter at amortized cost based on their value on the 61st day.
Short-term debt securities having a maturity date of sixty days or less at the
time of purchase are valued at amortized cost.
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.
Dividend income and other distributions are recorded on the ex-dividend date
except for certain dividends on foreign securities which are recorded as soon as
the Fund is informed after the ex-dividend date. Discounts are accreted and
premiums are amortized over the life of the respective securities. Interest
income is accrued daily.
C. Repurchase Agreements -- Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Fund, along with other affiliated
entities managed by the Investment Manager, may transfer uninvested cash
balances into one or more joint repurchase agreement accounts. These balances
are invested in one or more repurchase agreements and are collateralized by
cash, U.S. Treasury or federal agency obligations. The Fund may also 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. Multiple Class Allocations -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.
E. Futures Contracts -- A futures contract is an agreement between two parties
to buy and sell financial instruments or contracts based on financial indices at
a set price on a future date. Upon entering into such a contract, the Fund is
required to pledge to the broker cash, U.S. Government securities or other
liquid portfolio securities equal to the minimum initial margin requirements of
the applicable futures exchange. Pursuant to the contract, the Fund agrees to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in the value of the contract. Such receipts or payments known as
variation margin are recorded by the Fund as unrealized gains and losses. Upon
closing of the contract, the Fund realizes a gain or loss equal to the
difference between the value of the contract at the time it was opened and the
value at the time it was closed.
30
<Page>
Morgan Stanley International Fund
NOTES TO FINANCIAL STATEMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
F. Foreign Currency Translation and Forward Foreign Currency Contracts -- The
books and records of the Fund are maintained in U.S. dollars as follows:
(1) the foreign currency market value of investment securities, other assets and
liabilities and forward foreign currency contracts ("forward contracts") are
translated at the exchange rates prevailing at the end of the period; and
(2) purchases, sales, income and expenses are translated at the exchange rates
prevailing on the respective dates of such transactions. The resultant exchange
gains and losses are recorded as realized and unrealized gain/loss on foreign
exchange transactions. Pursuant to U.S. Federal income tax regulations, certain
foreign exchange gains/losses included in realized and unrealized gain/loss are
included in or are a reduction of ordinary income for federal income tax
purposes. The Fund does not isolate that portion of the results of operations
arising as a result of changes in the foreign exchange rates from the changes in
the market prices of the securities. Forward contracts are valued daily at the
appropriate exchange rates. The resultant unrealized exchange gains and losses
are recorded as unrealized foreign currency gain or loss. The Fund records
realized gains or losses on delivery of the currency or at the time the forward
contract is extinguished (compensated) by entering into a closing transaction
prior to delivery.
G. 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.
H. Dividends and Distributions to Shareholders -- Dividends and distributions to
shareholders are recorded on the ex-dividend date. The amount of dividends and
distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions which
exceed net investment income and net realized capital gains for financial
reporting purposes but not for tax purposes are reported as dividends in excess
of net investment income or distributions in excess of net realized capital
gains. To the extent they exceed net investment income and net realized capital
gains for tax purposes, they are reported as distributions of paid-in-capital.
I. 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.
31
<Page>
Morgan Stanley International Fund
NOTES TO FINANCIAL STATEMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
2. Investment Management and Sub-Advisory Agreements
Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined at the close of
each business day: 1.0% to the portion of daily net assets not exceeding $1
billion and 0.95% to the portion of daily net assets in excess of $1 billion.
Under a Sub-Advisory Agreement between the Sub-Advisor and the Investment
Manager, the Sub-Advisor provides the Fund with investment advice and portfolio
management relating to the Fund's investments in securities, subject to the
overall supervision of the Investment Manager. As compensation for its services
provided pursuant to the Sub-Advisory Agreement, the Investment Manager pays the
Sub-Advisor compensation equal to 40% of its monthly compensation.
3. Plan of Distribution
Shares of the Fund are distributed by Morgan Stanley Distributors Inc. (the
"Distributor"), an affiliate of the Investment Manager and Sub-Advisor. The Fund
has adopted a Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the
Act. The Plan provides that the Fund will pay the Distributor a fee which is
accrued daily and paid monthly at the following annual rates: (i) Class A -- up
to 0.25% of the average daily net assets of Class A; (ii) Class B -- 1.0% of
the average daily net assets of Class B; and (iii) Class C -- up to 1.0% of the
average daily net assets of Class C.
In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. Although there is no legal obligation for the Fund
to pay expenses incurred in excess of payments made to the Distributor under the
Plan and the proceeds of contingent deferred sales charges paid by investors
upon redemption of shares, if for any reason the Plan is terminated, the
Trustees will consider at that time the manner in which to treat such expenses.
The Distributor has advised the Fund that such excess amounts totaled
$22,992,627 at April 30, 2003.
In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to Morgan Stanley Financial Advisors or other selected
broker-dealer representatives may
32
<Page>
Morgan Stanley International Fund
NOTES TO FINANCIAL STATEMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
be reimbursed in the subsequent calendar year. For the six months ended
April 30, 2003, the distribution fee was accrued for Class A shares and Class C
shares at the annual rate of 0.15% and 1.0%, respectively.
The Distributor has informed the Fund that for the six months ended April 30,
2003, it received contingent deferred sales charges from certain redemptions of
the Fund's Class A shares, Class B shares and Class C shares of $3,775, $314,228
and $1,755, respectively and received $9,804 in front-end sales charges from
sales of the Fund's Class A shares. The respective shareholders pay such charges
which are not an expense of the Fund.
4. Security Transactions and Transactions with Affiliates
The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended April 30, 2003 aggregated
$50,934,305 and $87,908,896, respectively.
Morgan Stanley Trust, an affiliate of the Investment Manager, Sub-Advisor and
Distributor, is the Fund's transfer agent. At April 30, 2003, the Fund had
transfer agent fees and expenses payable of approximately $12,000.
5. Federal Income Tax Status
At October 31, 2002, the Fund had a net capital loss carryover of approximately
$129,326,000 of which $35,159,000 will be available through October 31, 2009 and
$94,167,000 will be available through October 31, 2010 to offset future capital
gains to the extent provided by regulations.
As of October 31, 2002, the Fund had temporary book/tax differences primarily
attributable to the mark-to-market of passive foreign investment companies, the
mark-to-market of open forward foreign currency exchange contracts and capital
loss deferrals on wash sales.
6. Expense Offset
The expense offset represents a reduction of the custodian fees for earnings on
cash balances maintained by the Fund.
33
<Page>
Morgan Stanley International Fund
NOTES TO FINANCIAL STATEMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
7. Shares of Beneficial Interest
Transactions in shares of beneficial interest were as follows:
<Table>
<Caption>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
APRIL 30, 2003 OCTOBER 31, 2002
-------------------------- --------------------------
(UNAUDITED)
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ----------- -------------
CLASS A SHARES
Sold.......................... 15,752,251 $ 101,132,004 14,014,187 $ 103,437,631
Reinvestment of dividends..... 83,954 552,418 44,953 347,486
Redeemed...................... (13,715,877) (88,689,799) (12,323,831) (91,196,477)
----------- ------------- ----------- -------------
Net increase -- Class A....... 2,120,328 12,994,623 1,735,309 12,588,640
----------- ------------- ----------- -------------
CLASS B SHARES
Sold.......................... 1,280,062 8,254,514 7,782,148 59,007,084
Redeemed...................... (5,592,386) (35,865,843) (19,433,255) (145,843,044)
----------- ------------- ----------- -------------
Net decrease -- Class B....... (4,312,324) (27,611,329) (11,651,107) (86,835,960)
----------- ------------- ----------- -------------
CLASS C SHARES
Sold.......................... 1,230,179 7,929,889 3,153,039 23,108,929
Reinvestment of dividends..... 6,602 43,179 -- --
Redeemed...................... (1,731,069) (11,194,563) (4,307,755) (31,840,343)
----------- ------------- ----------- -------------
Net decrease -- Class C....... (494,288) (3,221,495) (1,154,716) (8,731,414)
----------- ------------- ----------- -------------
CLASS D SHARES
Sold.......................... 9,634,249 62,782,439 13,331,817 100,332,174
Reinvestment of dividends..... 222,220 1,466,650 162,573 1,259,940
Redeemed...................... (10,817,617) (70,452,698) (11,515,228) (85,404,551)
----------- ------------- ----------- -------------
Net increase (decrease) --
Class D...................... (961,148) (6,203,609) 1,979,162 16,187,563
----------- ------------- ----------- -------------
Net decrease in Fund.......... (3,647,432) $ (24,041,810) (9,091,352) $ (66,791,171)
=========== ============= =========== =============
</Table>
8. Purposes of and Risks Relating to Certain Financial Instruments
The Fund may enter into forward contracts to facilitate settlement of foreign
currency denominated portfolio transactions or to manage foreign currency
exposure associated with foreign currency denominated securities. The Fund may
also purchase and sell interest rate, currency and index futures contracts
("futures contracts") that are traded on U.S. and foreign commodity exchanges on
such underlying securities as U.S. Treasury bonds, notes, bills and GNMA
certificates and/or any foreign government fixed-income security, on various
currencies and on such indexes of U.S. and foreign securities as may exist or
come into existence.
34
<Page>
Morgan Stanley International Fund
NOTES TO FINANCIAL STATEMENTS / / APRIL 30, 2003 (UNAUDITED) CONTINUED
Forward contracts and futures contracts involve elements of market risk in
excess of the amounts reflected in the Statement of Assets and Liabilities. The
Fund bears the risk of an unfavorable change in the foreign exchange rates
underlying the forward contracts or an unfavorable change in the value of the
underlying securities. Risks may also arise upon entering into these contracts
from the potential inability of the counterparties to meet the terms of their
contracts.
At April 30, 2003, there were outstanding forward contracts and outstanding
index futures contracts.
At April 30, 2003, investments in securities of issuers in the United Kingdom
represented 28.5% of the Fund's net assets. These investments, as well as other
non-U.S. investments, which involve risks and considerations not present with
respect to U.S. securities, may be affected by economic or political
developments in this region.
At April 30, 2003, the Fund's cash balance consisted principally of interest
bearing deposits with J.P. Morgan Chase, the Fund's custodian.
35
<Page>
Morgan Stanley International Fund
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<Table>
<Caption>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR ENDED OCTOBER 31, JUNE 28, 1999*
MONTHS ENDED ------------------------------------------------- THROUGH
APRIL 30, 2003 2002 2001 2000 OCTOBER 31, 1999
--------------- --------------- --------------- --------------- ----------------
(UNAUDITED)
Class A Shares
Selected Per Share Data:
Net asset value,
beginning of period..... $ 6.70 $ 7.77 $10.29 $10.57 $10.00
------ ------ ------ ------ ------
Income (loss) from
investment operations:
Net investment
income++.............. 0.04 0.04 0.06 0.11 0.01
Net realized and
unrealized gain
(loss)................ (0.07) (1.03) (2.07) (0.39) 0.56
------ ------ ------ ------ ------
Total income (loss) from
investment operations... (0.03) (0.99) (2.01) (0.28) 0.57
------ ------ ------ ------ ------
Less dividends and
distributions from:
Net investment
income................ (0.08) (0.08) - - -
Net realized gain...... - - (0.51) - -
------ ------ ------ ------ ------
Total dividends and
distributions........... (0.08) (0.08) (0.51) - -
------ ------ ------ ------ ------
Net asset value, end of
period.................. $ 6.59 $ 6.70 $ 7.77 $10.29 $10.57
====== ====== ====== ====== ======
Total Return+............ (0.44)%(1) (12.93)% (20.36)% (2.65)% 5.70%(1)
Ratios to Average Net
Assets(3):
Expenses................. 1.55 %(2) 1.56 % 1.46 %(4) 1.47 % 1.81%(2)
Net investment income.... 1.13 %(2) 0.54 % 0.73 % 0.95 % 0.31%(2)
Supplemental Data:
Net assets, end of
period, in thousands.... $57,639 $44,373 $37,974 $46,535 $38,506
Portfolio turnover
rate.................... 14 %(1) 39 % 37 % 84 % 14%(1)
</Table>
- ---------------------
* COMMENCEMENT OF OPERATIONS.
++ THE PER SHARE AMOUNTS WERE COMPUTED USING AN AVERAGE NUMBER OF SHARES
OUTSTANDING DURING THE PERIOD.
+ DOES NOT REFLECT THE DEDUCTION OF SALES CHARGE. CALCULATED BASED ON THE
NET ASSET VALUE AS OF THE LAST BUSINESS DAY OF THE PERIOD.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
(3) REFLECTS OVERALL FUND RATIOS FOR INVESTMENT INCOME AND NON-CLASS
SPECIFIC EXPENSES.
(4) DOES NOT REFLECT THE EFFECT OF EXPENSE OFFSET OF 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
36
<Page>
Morgan Stanley International Fund
FINANCIAL HIGHLIGHTS CONTINUED
<Table>
<Caption>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR ENDED OCTOBER 31, JUNE 28, 1999*
MONTHS ENDED ------------------------------------------- THROUGH
APRIL 30, 2003 2002 2001 2000 OCTOBER 31, 1999
-------------- ------------- ------------- ------------- ----------------
(UNAUDITED)
Class B Shares
Selected Per Share Data:
Net asset value,
beginning of period..... $ 6.58 $ 7.62 $10.19 $10.55 $10.00
------ ------ ------ ------ ------
Income (loss) from
investment operations:
Net investment income
(loss)++.............. 0.01 (0.02) 0.00 0.02 (0.02)
Net realized and
unrealized gain
(loss)................ (0.06) (1.02) (2.06) (0.38) 0.57
------ ------ ------ ------ ------
Total income (loss) from
investment operations... (0.05) (1.04) (2.06) (0.36) 0.55
------ ------ ------ ------ ------
Less distributions from
net realized gain....... - - (0.51) - -
------ ------ ------ ------ ------
Net asset value, end of
period.................. $ 6.53 $ 6.58 $ 7.62 $10.19 $10.55
====== ====== ====== ====== ======
Total Return+............ (0.76)%(1) (13.65)% (21.08)% (3.41)% 5.50 %(1)
Ratios to Average Net
Assets(3):
Expenses................. 2.40 %(2) 2.32 % 2.24 %(4) 2.22 % 2.56 %(2)
Net investment income
(loss).................. 0.28 %(2) (0.22)% (0.06)% 0.20 % (0.44)%(2)
Supplemental Data:
Net assets, end of
period, in thousands.... $187,335 $217,216 $340,158 $561,375 $465,258
Portfolio turnover
rate.................... 14 %(1) 39 % 37 % 84 % 14 %(1)
</Table>
- ---------------------
* COMMENCEMENT OF OPERATIONS.
++ THE PER SHARE AMOUNTS WERE COMPUTED USING AN AVERAGE NUMBER OF SHARES
OUTSTANDING DURING THE PERIOD.
+ DOES NOT REFLECT THE DEDUCTION OF SALES CHARGE. CALCULATED BASED ON THE
NET ASSET VALUE AS OF THE LAST BUSINESS DAY OF THE PERIOD.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
(3) REFLECTS OVERALL FUND RATIOS FOR INVESTMENT INCOME AND NON-CLASS
SPECIFIC EXPENSES.
(4) DOES NOT REFLECT THE EFFECT OF EXPENSE OFFSET OF 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
37
<Page>
Morgan Stanley International Fund
FINANCIAL HIGHLIGHTS CONTINUED
<Table>
<Caption>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR ENDED OCTOBER 31, JUNE 28, 1999*
MONTHS ENDED ------------------------------------------------- THROUGH
APRIL 30, 2003 2002 2001 2000 OCTOBER 31, 1999
--------------- --------------- --------------- --------------- ----------------
(UNAUDITED)
Class C Shares
Selected Per Share Data:
Net asset value,
beginning of period..... $ 6.59 $ 7.62 $10.19 $10.55 $10.00
------ ------ ------ ------ ------
Income (loss) from
investment operations:
Net investment income
(loss) ++............. 0.01 (0.01) (0.01) 0.02 (0.02)
Net realized and
unrealized gain
(loss)................ (0.06) (1.02) (2.05) (0.38) 0.57
------ ------ ------ ------ ------
Total income (loss) from
investment operations... (0.05) (1.03) (2.06) (0.36) 0.55
------ ------ ------ ------ ------
Less dividends and
distributions from
Net investment
income................ (0.01) - - - -
Net realized gain...... - - (0.51) - -
------ ------ ------ ------ ------
Total dividends and
distributions........... (0.01) - (0.51) - -
------ ------ ------ ------ ------
Net asset value, end of
period.................. $ 6.53 $ 6.59 $ 7.62 $10.19 $10.55
====== ====== ====== ====== ======
Total Return+............ (0.73)%(1) (13.52) % (21.08) % (3.41)% 5.50 %(1)
Ratios to Average Net
Assets(3):
Expenses................. 2.40 %(2) 2.18 % 2.24 %(4) 2.22 % 2.56 %(2)
Net investment income
(loss).................. 0.28 %(2) (0.08)% (0.06)% 0.20 % (0.44)%(2)
Supplemental Data:
Net assets, end of
period, in thousands.... $22,713 $26,195 $39,079 $69,640 $69,811
Portfolio turnover
rate.................... 14 %(1) 39 % 37 % 84 % 14 %(1)
</Table>
- ---------------------
* COMMENCEMENT OF OPERATIONS.
++ THE PER SHARE AMOUNTS WERE COMPUTED USING AN AVERAGE NUMBER OF SHARES
OUTSTANDING DURING THE PERIOD.
+ DOES NOT REFLECT THE DEDUCTION OF SALES CHARGE. CALCULATED BASED ON THE
NET ASSET VALUE AS OF THE LAST BUSINESS DAY OF THE PERIOD.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
(3) REFLECTS OVERALL FUND RATIOS FOR INVESTMENT INCOME AND NON-CLASS
SPECIFIC EXPENSES.
(4) DOES NOT REFLECT THE EFFECT OF EXPENSE OFFSET OF 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
38
<Page>
Morgan Stanley International Fund
FINANCIAL HIGHLIGHTS CONTINUED
<Table>
<Caption>
FOR THE PERIOD
FOR THE SIX FOR THE YEAR ENDED OCTOBER 31, JUNE 28, 1999*
MONTHS ENDED ------------------------------------------------- THROUGH
APRIL 30, 2003 2002 2001 2000 OCTOBER 31, 1999
--------------- --------------- --------------- --------------- ----------------
(UNAUDITED)
Class D Shares
Selected Per Share Data:
Net asset value,
beginning of period..... $ 6.73 $ 7.80 $10.32 $10.58 $10.00
------ ------ ------ ------ ------
Income (loss) from
investment operations:
Net investment
income++.............. 0.04 0.06 0.08 0.15 0.01
Net realized and
unrealized gain
(loss)................ (0.06) (1.04) (2.09) (0.41) 0.57
------ ------ ------ ------ ------
Total income (loss) from
investment operations... (0.02) (0.98) (2.01) (0.26) 0.58
------ ------ ------ ------ ------
Less dividends and
distributions from:
Net investment
income................ (0.10) (0.09) - - -
Net realized gain...... - - (0.51) - -
------ ------ ------ ------ ------
Total dividends and
distributions........... (0.10) (0.09) (0.51) - -
------ ------ ------ ------ ------
Net asset value, end of
period.................. $ 6.61 $ 6.73 $ 7.80 $10.32 $10.58
====== ====== ====== ====== ======
Total Return+............ (0.34)%(1) (12.70)% (20.30)% (2.46)% 5.80%(1)
Ratios to Average Net
Assets(3):
Expenses................. 1.40 %(2) 1.32 % 1.24 %(4) 1.22 % 1.56%(2)
Net investment income.... 1.28 %(2) 0.78 % 0.94 % 1.20 % 0.56%(2)
Supplemental Data:
Net assets, end of
period, in thousands.... $111,871 $120,329 $124,065 $98,465 $1,336
Portfolio turnover
rate.................... 14 %(1) 39 % 37 % 84 % 14%(1)
</Table>
- ---------------------
* COMMENCEMENT OF OPERATIONS.
++ THE PER SHARE AMOUNTS WERE COMPUTED USING AN AVERAGE NUMBER OF SHARES
OUTSTANDING DURING THE PERIOD.
+ DOES NOT REFLECT THE DEDUCTION OF SALES CHARGE. CALCULATED BASED ON THE
NET ASSET VALUE AS OF THE LAST BUSINESS DAY OF THE PERIOD.
(1) NOT ANNUALIZED.
(2) ANNUALIZED.
(3) REFLECTS OVERALL FUND RATIOS FOR INVESTMENT INCOME AND NON-CLASS
SPECIFIC EXPENSES.
(4) DOES NOT REFLECT THE EFFECT OF EXPENSE OFFSET OF 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
39
<Page>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
James F. Higgins
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
OFFICERS
Charles A. Fiumefreddo
Chairman of the Board
Mitchell M. Merin
President
Ronald E. Robison
Executive Vice President and Principal Executive Officer
Barry Fink
Vice President, Secretary and General Counsel
Joseph J. McAlinden
Vice President
Francis Smith
Vice President and Chief Financial Officer
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Trust
Harborside Financial Center -- Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281
INVESTMENT MANAGER
Morgan Stanley Investment Advisors Inc.
1221 Avenue of the Americas
New York, New York 10020
SUB-ADVISOR
Morgan Stanley Investment Management 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.
Investments and services offered through Morgan Stanley DW Inc., member SIPC.
Morgan Stanley Funds are distributed by Morgan Stanley Distributors Inc.
Morgan Stanley Distributors Inc., member NASD.
36075RPT-11186F03-AP-6/03
[MORGAN STANLEY LOGO]
[GRAPHIC]
Morgan Stanley
International Fund
SEMIANNUAL REPORT
APRIL 30, 2003
<Page>
Item 9 - Controls and Procedures
The Trust's principal executive officer and principal financial officer
have concluded that the Trust's disclosure controls and procedures are
sufficient to ensure that information required to be disclosed by the Trust in
this Form N-CSR was recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms,
based upon such officers' evaluation of these controls and procedures as of a
date within 90 days of the filing date of the report.
There were no significant changes or corrective actions with regard to
siginficant deficiencies or material weaknesses in the Trust's internal controls
or in other factors that could significantly affect the Trust's internal
controls subsequent to the date of their evaluation.
<Page>
Item 10b Exhibits
A separate certification for each principal executive officer and principal
financial officer of the registrant are attached hereto as part of EX-99.CERT.
Items 2 - 8 and Item 10a are not applicable
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Morgan Stanley International Fund
Ronald E. Robison
Principal Executive Officer
June 20, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates
indicated.
Ronald E. Robison
Principal Executive Officer
June 20, 2003
Francis Smith
Principal Financial Officer
June 20, 2003