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Morgan Stanley Institutional Liquidity Funds

The section of each portfolio s Prospectus entitled Shareholder Information Pricing of portfolio Shares ishereby deleted and replaced with the following:Pricing of portfolio SharesShares of the Portfolios may be purchased or sold (redeemed) at the NAV next determined after theFund receives your order in good order and State Street Bank and Trust Company (the Custodian )receives monies credited by a Federal Reserve Bank ( Federal Funds ) prior to the close of the Fedwire. You begin earning dividends the same day your Institutional Class shares are purchased providedthe Fund receives your purchase amount in Federal Funds that day as set forth above. Orders topurchase shares of a portfolio must be received by the Fund prior to the following times: for the PrimePortfolio, Government portfolio and Treasury portfolio 5:00 Eastern time; for the GovernmentSecurities portfolio and Treasury Securities portfolio 3:00 Eastern time; and for the Tax-ExemptPortfolio 2:00 Eastern time.

Objective The Prime Portfolio seeks preservation of capital, daily liquidity and maximum current income. Fees and Expenses The table below describes the …

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