MORGAN STANLEY INTERNATIONAL FUND
522 Fifth Avenue
New York, NY 10036
February 26, 2008
Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
Attention: Larry Greene, Division of Investment Management
Re: Morgan Stanley International Fund
(File Nos. 333-66203 and 811-09081)
Dear Mr. Greene:
Thank you for your telephonic comments regarding the registration statement on Form N-1A for Morgan Stanley International Fund (the Fund) filed with the Securities and Exchange Commission on December 20, 2007. Below, we describe the changes made to the registration statement in response to the Staffs comments and provide any responses to or any supplemental explanations of such comments, as requested. These changes will be reflected in post-effective amendment number 12 to the Funds registration statement on Form N-1A, which will be filed via EDGAR on or about February 26, 2008.
Comment 1. Please file a response letter to these comments via EDGAR, including the Tandy provision.
Response 1. This response letter addressing the Staffs comments has been filed via EDGAR correspondence, including the Tandy provision, separate from the corresponding Post-Effective Amendment.
COMMENTS TO THE PROSPECTUS
Comment 2. In the second paragraph of the section titled Principal Investment Strategies, the Prospectus states that [t]he Fund invests in at least three different countries. The Securities and Exchange Commission takes the position that a fund that has the word international in its name, such as the Fund, needs to be invested broadly throughout the world in a fairly substantial number of countries.
Response 2. The Fund respectively acknowledges the Staffs comment; however, Question 10 of the Staffs Frequently Asked Questions about Rule 35d-1 states that the term international in a Funds name connotes diversification among investment in a number of different countries throughout the world, and therefore the use of [international] in a fund name is not subject to the rule. The Fund does not believe that
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Rule 35d-1 imposes a requirement that a fund with international in its name invest in a minimum of at least three countries throughout the world. Therefore, the Fund does not believe that additional disclosure is necessary. The Fund has disclosure regarding its intention to invest in at least three countries, which we believe is consistent with prior Staff positions for registrants with international in their name. Furthermore, we supplementally note that as of October 31, 2007, the Fund was invested in over 35 countries.
Comment 3. In the Principal Investment Strategies section, the prospectus states that the Fund may invest in real estate investment trusts and foreign real estate companies. Consider adding risk disclosure in light of the recent sub-prime market turmoil.
Response 3. In light of the securities in which the Fund invests, we believe the current disclosure is sufficient.
Comment 4. Consider adding disclosure regarding junk convertible securities, to the extent the Fund invests in these securities, to the Principal Investment Strategies section.
Response 4. Since the Fund may only invest up to 5% of its total net assets in junk convertible securities, we do not consider it a principal investment strategy of the Fund. Therefore, we believe the current risk disclosure in the SAI with respect to investments in junk convertible securities is sufficient.
Comment 5. In the Principal Investment Strategies section, the Prospectus states that the Fund may invest in listed and over-the-counter options. Consider adding disclosure regarding the types of options in which the Fund may invest, including, if applicable, American and European style options.
Response 5. We respectfully acknowledge the comment, but believe the current disclosure regarding options is sufficient. Additional disclosure is included in the Statement of Additional Information section titled Description of the Fund and Its Investments and Risks Investment Company Securities Options and Futures Transactions.
Comment 6. In the Fees and Expenses section of the Prospectus, include disclosure relating to the Funds investments in other investment companies, as required by Item 3(f) of Form N-1A.
Response 6. We confirm that the Funds investments in other investment companies does not require the disclosure referred to in Item 3(f).
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Comment 7. Please consider clarifying your current disclosure relating to frequent purchases and redemptions of Fund shares, specifically your disclosure in respect of trades that occur through omnibus accounts at intermediaries, so that it complies with Item 6(e) of Form N-1A and Release No. IC-27504.
Response 7. We respectfully acknowledge the comment; however, we believe that the current disclosure in the Prospectus complies with Item 6(e) of Form N-1A and Release No. IC-27504. The disclosure in the sections titled Frequent Purchases and Redemptions of Fund Shares and How to Sell SharesRedemption Fee describes in detail the Funds policies and procedures to discourage and deter frequent purchases and redemptions of Fund shares, including its policies and procedures with respect to trades that occur through omnibus accounts at intermediaries, and the assurances, agreements and information that these intermediaries are required to provide to the Fund in enforcing the Funds policies and procedures. In addition, the disclosure in the section titled How to Sell SharesRedemption Fee discusses the implementation of a redemption fee to protect the Funds shareholders from the effects of short-term trading and the potential limitations of the redemption fee on transactions that occur through omnibus accounts at financial intermediaries.
As you have requested and consistent with SEC Release 2004-89, the Fund hereby acknowledges that:
· the Fund is responsible for the adequacy and accuracy of the disclosure in the filings;
· the Staffs comments or changes to disclosure in response to Staff comments in the filings reviewed by the Staff do not foreclose the Commission from taking any action with respect to the filings; and
· the Fund may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.
If you would like to discuss any of these responses in further detail or if you have any questions, please feel free to contact me at (630) 684-6301. Thank you.
Sincerely, |
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/s/ Elizabeth Nelson |
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Elizabeth Nelson |
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