MORGAN STANLEY SPECTRUM CURRENCY LP - 10-K Annual Report

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

FORM 10-K

[X] Annual report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 [No Fee Required]
For the year ended December 31, 2002 or

[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 [No Fee Required]
For the transition period from ________________to___________________

Commission File Number 0-31563

MORGAN STANLEY SPECTRUM CURRENCY L.P.

(Exact name of registrant as specified in its Limited Partnership Agreement)

DELAWARE 13-4084211
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

Demeter Management Corporation
825 Third Avenue, 9th Floor
New York, NY 10022
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code (212) 310-6444

Securities registered pursuant to Section 12(b) of the Act:

Name of each exchange
Title of each class on which registered

None None

Securities registered pursuant to Section 12(g) of the Act:

Units of Limited Partnership Interest

(Title of Class)

Indicate by check-mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No _____

Indicate by check-mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (section 229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment of this Form 10-K. [X]

State the aggregate market value of the Units of Limited Partnership Interest
held by non-affiliates of the registrant. The aggregate market value shall be
computed by reference to the price at which units were sold as of a specified
date within 60 days prior to the date of filing: $98,603,656 at January 31,
2003.

DOCUMENTS INCORPORATED BY REFERENCE
(See Page 1)

MORGAN STANLEY SPECTRUM CURRENCY L.P.
INDEX TO ANNUAL REPORT ON FORM 10-K
DECEMBER 31, 2002

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the following documents are incorporated by reference
as follows:

Documents Incorporated Part of Form l0-K

Partnership's Prospectus dated
April 30, 2002 I

Partnership's Supplement to
the Prospectus dated January 24, 2003 I

Annual Report to Morgan Stanley
Spectrum Series Limited
Partners for the year ended December II, III and IV
31, 2002

PART I
Item 1. BUSINESS
(a) General Development of Business. Morgan Stanley Spectrum Cur-
ency L.P. (the "Partnership") is a Delaware limited partnership
organized to engage primarily in the speculative trading of
futures contracts, options on futures contracts, and forward
contracts in global currency markets. The Partnership commenced
operations on July 3, 2000. The Partnership is one of the Morgan
Stanley Spectrum series of funds, comprised (at December 31, 2002)
of the Partnership, Morgan Stanley Spectrum Commodity L.P.
("Spectrum Commodity"), Morgan Stanley Spectrum Global Balanced
L.P., Morgan Stanley Spectrum Strategic L.P., Morgan Stanley
Spectrum Select L.P., and Morgan Stanley Spectrum Technical L.P.
(collectively, the "Spectrum Series").

Spectrum Commodity terminated trading on December 31, 2002 and
commenced its dissolution in January 2003 pursuant to its Limited
Partnership Agreement.

The Partnership's general partner is Demeter Management
Corporation ("Demeter"). The non-clearing commodity broker is
Morgan Stanley DW Inc. ("Morgan Stanley DW"). The clearing
commodity brokers are Morgan
Co.") and Morgan Stanley & Co. International Limited
("MSIL").

Demeter, Morgan Stanley DW, MS & Co. and MSIL are wholly-owned
subsidiaries of Morgan Stanley. The trading advisors to the
Partnership are John W. Henry & Company, Inc., and Sunrise Capital
Partners, LLC (collectively, the "Trading Advisors").

Effective June 20, 2002, Morgan Stanley Dean Witter & Co. changed
its name to Morgan Stanley.

Units of limited partnership interest ("Unit(s)") are offered for
sale at monthly closings at a purchase price equal to 100% of the
net asset value per Unit as of the close of business on the last
day of each month.

The managing underwriter for the Spectrum Series is Morgan Stanley
DW.

The Partnership's net asset value per Unit at December 31, 2002
was $13.93, representing an increase of 12.25 percent from the net
asset value per Unit of $12.41 on December 31, 2001. For a more
detailed description of the Partnership's business see
subparagraph (c).

(b) Financial Information about Segments. For financial infor-
mation reporting purposes, the Partnership is deemed to engage in
one industry segment, the speculative trading of futures,
forwards, and options. The relevant financial information is
presented in Items 6 and 8.

(c) Narrative Description of Business. The Partnership is in the
business of speculative trading of futures, forwards, and options,
pursuant to trading instructions provided by the Trading Advisors.
For a detailed description of the different facets of the
Partnership's business, see those portions of the Partnership's
prospectus, dated April 30, 2002 (the "Prospectus"), and the
Partnership's supplement to the Prospectus dated January 24, 2003
(the "Supplement"), incorporated by reference in this Form 10-K,
set forth below.
Facets of Business
1. Summary 1. "Summary" (Pages 1-8 of
the Prospectus and Page
S-1 of the Supplement).

2. Futures, Options, and 2. "The Futures, Options, and
Forwards Markets Forwards Markets" (Pages
137-141 of the Prospectus).

3. Partnership's Trading 3. "Use of Proceeds (Pages
Arrangements and 26-28 of the Prospectus
Policies and Page S-4 of the
Supplement). "The Trading
Advisors" (Pages 72-119 of
the Prospectus and Pages
S-28 - S-38 of the
Supplement).

4. Management of the Part- 4. "The Trading Advisors -
nership The Management Agree-
ments" (Page 72 of the
Prospectus), "The
General Partner" (Pages
67-71 of the Prospectus
and Pages S-25 - S-28 of
the Supplement), "The Com-
modity Brokers" (Pages
121-122 of the Prospectus)
and "The Limited Partner-
ship Agreements" (Pages
123-125 of the Prospectus).

5. Taxation of the Partner- 5. "Material Federal Income
ship's Limited Partners Tax Considerations" and
"State and Local Income Tax
Aspects" (Pages 130-135 of
the Prospectus).

(d) Financial Information about Geographic Areas. The Partnership
has not engaged in any operations in foreign countries; however,
the Partnership (through the commodity brokers) enters into
forward contract transactions where foreign banks are the
contracting party and trades futures, forwards, and options on
foreign exchanges.

(e) Available Information. The Partnership files annual reports
on Form 10-K, quarterly reports on Form 10-Q, current reports on
Form 8-K, and all amendments to these reports with the Securities
and Exchange Commission ("SEC"). You may read and copy any
document filed by the Partnership at the SEC's public reference
room at Room 1024, 450 Fifth Street, N.W., Washington, D.C. 20549.
Please call the SEC at 1-800-SEC-0330 for information on
the public reference room. The Partnership does not maintain an
internet website, however, the SEC maintains a website that
contains annual, quarterly, and current reports, proxy statements
and other information that issuers (including the Partnership)
file electronically with the SEC. The SEC's website address is
http://www.sec.gov.

Item 2. PROPERTIES
The Partnership's executive and administrative offices are located
within the offices of Morgan Stanley DW. The Morgan Stanley DW
offices utilized by the Partnership are located at 825 Third
Avenue, 9th Floor, New York, NY 10022.

Item 3. LEGAL PROCEEDINGS
None.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.

PART II

Item 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP UNITS AND RELATED
SECURITY HOLDER MATTERS

(a) Market Information. There is no established public trading
market for Units of the Partnership.

(b) Holders. The number of holders of Units at December 31, 2002
was approximately 8,530.

(c) Distributions. No distributions have been made by the
Partnership since it commenced trading operations on July 3,
2000. Demeter has sole discretion to decide what distributions,
if any, shall be made to investors in the Partnership. Demeter
currently does not intend to make any distributions of
Partnership profits.

(d) Use of Proceeds. The Partnership initially registered
12,000,000 Units pursuant to a Registration Statement on Form
S-1, which became effective on March 6, 2000 (SEC File Number
333-90483).

The Partnership registered another 1,000,000 Units pursuant to a
registration statement on Form S-1, which became effective April
on 30, 2002 (SEC File Number 333-84654).

Units are being sold at monthly closings as of the close of
business on the last day of each month at a price equal to 100%
of the net asset value per Unit.

Through December 31, 2002, 7,892,216.000 Units were sold, leaving
5,107,784.000 Units unsold at December 31, 2002. The aggregate
price of the Units sold through December 31, 2002 became
$92,654,481.

The managing underwriter for the Partnership is Morgan Stanley DW.

Since no expenses are chargeable against proceeds, 100% of the
proceeds of the offering have been applied to the working capital
of the Partnership for use in accordance with the "Use of
Proceeds" section of the Prospectus and the Supplement.

Item 6. SELECTED FINANCIAL DATA (in dollars)

Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Liquidity - The Partnership deposits its assets with Morgan
Stanley DW as non-clearing broker, and MS & Co. and MSIL as
clearing brokers in separate futures, forwards and options trading
accounts established for each Trading Advisor, which assets are
used as margin to engage in trading. The assets are held in either
non-interest bearing bank accounts or in securities and
instruments permitted by the Commodity Futures Trading Commission
for investment of customer segregated or secured funds. The
Partnership's assets held by the commodity brokers may be used as
margin solely for the Partnership's trading. Since the
Partnership's sole purpose is to trade in futures, forwards, and
options, it is expected that the Partnership will continue to own
such liquid assets for margin purposes.

The Partnership's investment in futures, forwards, and options
may, from time to time, be illiquid. Most U.S. futures exchanges
limit fluctuations in prices during a single day by regulations
referred to as "daily price fluctuations limits" or "daily
limits". Trades may not be executed at prices beyond the daily
limit. If the price for a particular futures or option contract
has increased or decreased by an amount equal to the daily limit,
positions in that futures or options contract can neither be taken

nor liquidated unless traders are willing to effect trades at or
within the limit. Futures prices have occasionally moved the
daily limit for several consecutive days with little or no
trading. These market conditions could prevent the Partnership
from promptly liquidating its futures or options contracts and
result in restrictions on redemptions.

There is no limitation on daily price moves in trading forward
contracts on foreign currencies. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets, subjecting it to
substantial losses. Either of these market conditions could result
in restrictions on redemptions.

The Partnership has never had illiquidity affect a material
portion of its assets. Furthermore, there no material trends,
demands, commitments, events or uncertainties known at the present
time that will result in or that are reasonably likely to result
in the Partnership's liquidity increasing or decreasing in any
material way.

Capital Resources. The Partnership does not have, nor expect to
have, any capital assets. Redemptions, exchanges and sales of
additional Units in the future will affect the amount of funds
available for investment in futures, forwards, and options in
subsequent periods. It is not possible to estimate the amount and
therefore, the impact of future redemptions of Units.

There are no known material trends, favorable or unfavorable, that
would affect, nor any expected material changes to, the
Partnership's capital resource arrangements at the present time.
The Partnership has no off-balance sheet arrangements, nor
contractual obligations or commercial commitments to make future
payments that would affect the Partnership's liquidity or capital
resources. The contracts traded by the Partnership are accounted
for on a trade-date basis and marked to market on a daily basis.
The value of futures contracts is the settlement price on the
exchange on which that futures contract is traded on a particular
day. The value of foreign currency forward contracts is based on
the spot rate as of the close of business, New York City time, on
a given day.

Results of Operations.
General. The Partnership's results depend on the Trading Advisors

and the ability of each Trading Advisor's trading programs to take
advantage of price movements or other profit opportunities in the
futures, forwards, and options markets. The following presents a
summary of the Partnership's operations for the years ended
December 31, 2002, 2001 and the period from July 3, 2000
(commencement of operations) to December 31, 2000, and a general
discussion of its trading activities during each period. It is
important to note, however, that the Trading Advisors trade in
various markets at different times and that prior activity in a
particular market does not mean that such market will be actively
traded by the Trading Advisors or will be profitable in the
future. Consequently, the results of operations of the
Partnership are difficult to discuss other than in the context of
the Trading Advisors' trading activities on behalf of the
Partnership and how the Partnership has performed in the past.

The Partnership's results of operations are set forth in financial
statements prepared in accordance with United States generally
accepted accounting principles, which require the use of certain
accounting policies that affect the amounts reported in these
financial statements, including the following: The contracts the
Partnership trades are accounted for a trade-date basis and marked
to market on a daily basis. The difference between their cost and

market value is recorded on the Statements of Operations as "Net
change in unrealized profit/loss" for open (unrealized) contracts,
and recorded as "Realized profit/loss" when open positions are
closed out, and the sum of these amounts constitutes the
Partnership's trading revenues. Interest income revenue as well
as management fees, incentive fees and brokerage fees expenses of
the Partnership are recorded on an accrual basis.

Demeter believes that, based on the nature of the operations of
the Partnership, no assumptions other than those presently used
relating to the application of critical accounting policies are
reasonably plausible that could affect reported amounts.

At December 31, 2002, the Partnership's total capital was
$96,159,452, an increase of $48,347,711 from the Partnership's
total capital of $47,811,741 at December 31, 2001. For the year
ended December 31, 2002, the Partnership generated net income of
$10,283,120, total subscriptions aggregated $48,984,478 and total
redemptions aggregated $10,919,887.

For the year ended December 31, 2002, the Partnership recorded
total trading revenues, including interest income, of $16,183,891
and posted an increase in net asset value per Unit. The most

significant gains of approximately 16.4% were recorded from
long positions in the euro relative to the U.S. dollar as the
dollar's value significantly weakened during April, May, and
June amid falling equity prices and concerns regarding corporate
integrity. Additional gains from long positions in the euro,
Swiss franc, and Norwegian krone were experienced in December as
the looming threat of a potential military conflict with Iraq
and North Korea further weakened the dollar. Further gains of
approximately 4.4% stemmed from long positions in the South
African rand versus the U.S. dollar as its value approached a
16-month high during the second and fourth quarter amid strong
demand for South African exports and high relative interest
rates. Profits of approximately 7.3% were recorded from long
positions in the Australian dollar and New Zealand dollar versus
the U.S. dollar as the value of both currencies strengthened
during April, May, and throughout the fourth quarter amid higher
gold prices. A portion of the Partnership's overall gains was
offset by losses of approximately 9.0% recorded in the British
pound from short positions versus the U.S. dollar during the
summer months and into the fourth quarter as the value of the
dollar weakened amid geopolitical and economic uncertainty.
Additional losses of approximately 7.3% resulted from positions
in the Japanese yen versus the U.S. dollar during March as the
yen initially strengthened amid asset repatriation out of the

U.S. into Japan, only to retreat by month-end on
expectations that the repatriation flow would soon subside ahead
of the Japanese fiscal year-end. Further losses in the Japanese
yen were experienced in December from short positions versus the
U.S. dollar as the value of the dollar weakened versus most
major currencies. Total expenses for the year were $5,900,771,
resulting in net income of $10,283,120. The net asset value of a
Unit increased from $12.41 at December 31, 2001 to $13.93 at
December 31, 2002.

At December 31, 2001, the Partnership's total capital was
$47,811,741, an increase of $32,104,509 from the Partnership's
total capital of $15,707,232 at December 31, 2000. For the year
ended December 31, 2001, the Partnership generated net income of
$4,336,339, total subscriptions aggregated $29,198,302 and total
redemptions aggregated $1,430,132.

For the year ended December 31, 2001, the Partnership recorded
total trading revenues, including interest income, of $7,353,454
and posted an increase in net asset value per Unit. The most
significant gains of approximately 15.6% were recorded primarily
during September from previously established short positions in
the South African rand as its value trended lower relative to
the U.S. dollar as investors targeted the emerging market

currency while global economic jitters persisted. During
November and December, additional gains were recorded from
previously established short positions in the South African rand
as its value trended lower versus the U.S. dollar due to
emerging market concerns following Argentina's debt default and
political turmoil in neighboring Zimbabwe. Profits of
approximately 8.3% were recorded throughout a majority of the
first quarter from previously established short positions in the
Japanese yen as the value of the yen weakened relative to the
U.S. dollar on continuing concerns for the Japanese economy and
in both anticipation and reaction to the Bank of Japan's
decision to reinstate its zero interest rate policy. During
December, gains were recorded from previously established short
positions in the Japanese yen as the value of the yen versus the
U.S. dollar continued to trend lower amid the release of weak
economic data and the perception that further depreciation of
the yen would not be met with government intervention in support
of the currency. A portion of the Partnership's overall gains
was partially offset by losses of approximately 3.3% recorded
primarily during May and early June from previously established
long positions in the British pound as its value weakened
relative to the U.S. dollar in reaction to reports that British
Prime Minister Blair will push for Great Britain's entry into
the European Monetary Union. During October and November,

losses were recorded from previously established long
positions in the British pound as the value of the pound
reversed weaker versus the U.S. dollar on pessimism generated by
the Bank of England that further interest rate cuts are unlikely
due to inflationary pressures in Britain. Total expenses for the
year were $3,017,115, resulting in net income of $4,336,339. The
net asset value of a Unit increased from $11.17 at December 31,
2000 to $12.41 at December 31, 2001.

At December 31, 2000, the Partnership's total capital was
$15,707,232, an increase of $9,375,689 from the Partnership's
total capital of $6,331,543 at July 3, 2000 (commencement of
operations). For the period from July 3, 2000 (commencement of
operations) to December 31, 2000, the Partnership generated net
income of $1,308,544, total subscriptions (including the initial
subscription) aggregated $16,713,346 and total redemptions
aggregated $2,314,658.

For the period from July 3, 2000 (commencement of operations) to
December 31, 2000, the Partnership recorded total trading
revenues, including interest income, of $1,918,231 and posted an
increase in net asset value per Unit. The most significant gains
of approximately 7.6% were recorded primarily during August and
October from short positions in the euro and Swiss franc as the

value of these European currencies weakened relative to
the U.S. dollar amid continued skepticism regarding the European
economy. Additional gains were recorded during December from
long
positions in the euro and Swiss franc as their respective values
reversed upward versus the U.S. dollar as a result of new
confidence in the European economy and an overall skepticism
regarding the U.S. economy. During December, profits of
approximately 3.7% were recorded from short positions in the
Japanese yen as the value of the yen declined versus most major
currencies on further signs of weakness in the Japanese economy.
Gains of approximately 2.8% were also recorded primarily during
October and November from short South African rand positions as
its value weakened versus the U.S. dollar, while moving in
sympathy with other emerging market currencies. A portion of
the Partnership's overall gains was partially offset by losses
of approximately 1.2% recorded primarily during October and
November from long British pound positions as its value weakened
versus the U.S. dollar on disappointing economic data out of the
U.K. Additional losses were recorded during December from short
positions in the British pound as its value strengthened versus
the U.S. dollar on fresh evidence that the U.S. economy was
cooling down. Total expenses for the period from July 3, 2000
(commencement of operations) to December 31, 2000 were $609,687,

resulting in net income of $1,308,544. The net asset value of a
Unit increased from $10.00 at July 3, 2000 (commencement of
operations) to $11.17 at December 31, 2000.

The Partnership's overall performance record represents varied
results of trading in different futures, forwards, and options
markets. For an analysis of unrealized gains and (losses) by
contract type and a further description of 2002 trading results,
refer to the "Letter to the Limited Partners" in the Partnership's
Annual Report to Limited Partners for the year ended December 31,
2002, which is incorporated by reference to Exhibit 13.01 of this
Form 10-K.

The Partnership's gains and losses are allocated among its
partners for income tax purposes.

Credit Risk.
Financial Instruments. The Partnership is a party to financial
instruments with elements of off-balance sheet market and credit
risk. The Partnership may trade futures, forwards, and options
in global currency markets. In entering into these contracts,
the Partnership is subject to the market risk that such
contracts may be significantly influenced by market conditions,

such as interest rate volatility, resulting in such
contracts being less valuable. If the markets should move
against all of the positions held by the Partnership at the same
time, and if the Trading Advisors were unable to offset
positions of the Partnership, the Partnership could lose all of
its assets and the Limited Partners would realize a 100% loss.

In addition to the Trading Advisors' internal controls, the
Trading Advisors must comply with the trading policies of the
Partnership. These trading policies include standards for
liquidity and leverage with which the Partnership must comply.
The Trading Advisors and Demeter monitor the Partnership's
trading activities to ensure compliance with the trading
policies. Demeter may require the Trading Advisors to modify
positions of the Partnership if Demeter believes they violate
the Partnership's trading policies.

In addition to market risk, in entering into futures, forward,
and options contracts there is a credit risk to the Partnership
that the counterparty on a contract will not be able to meet its
obligations to the Partnership. The ultimate counterparty or
guarantor of the Partnership for futures contracts traded in the
United States and the foreign exchanges on which the Partnership

trades is the clearinghouse associated with such
exchange. In general, a clearinghouse is backed by the
membership of the exchange and will act in the event of non-
performance by one of its members or one of its member's
customers, which should significantly reduce this credit risk.
For example, a clearinghouse may cover a default by drawing upon
a defaulting member's mandatory contributions and/or non-
defaulting members'
contributions to a clearinghouse guarantee fund, established
lines or letters of credit with banks, and/or the
clearinghouse's surplus capital and other available assets of
the exchange and clearinghouse, or assessing its members. In
cases where the Partnership trades off-exchange forward
contracts with a counterparty, the sole recourse of the
Partnership will be the forward contracts counterparty.

There is no assurance that a clearinghouse, exchange, or other
exchange member will meet its obligations to the Partnership,
and Demeter and the commodity brokers will not indemnify the
Partnership against a default by such parties. Further, the law
is unclear as to whether a commodity broker has any obligation
to protect its customers from loss in the event of an exchange
or clearinghouse defaulting on trades effected for the broker's
customers. Any such obligation on the part of a broker appears

even less clear where the default occurs in a non-U.S.
jurisdiction.

Demeter deals with these credit risks of the Partnership in
several ways. First, it monitors the Partnership's credit
exposure to each exchange on a daily basis, calculating not only
the amount of margin required for it but also the amount of its
unrealized gains at each exchange, if any. The commodity
brokers inform the Partnership, as with all their customers, of
its net margin requirements for all its existing open positions,
but do not break that net figure down, exchange by exchange.
Demeter, however, has installed a system which permits it to
monitor the Partnership's potential margin liability, exchange
by exchange. As a result, Demeter is able to monitor the
Partnership's potential net credit exposure to each exchange by
adding the unrealized trading gains on that exchange, if any, to
the Partnership's margin liability thereon.

Second, the Partnership's trading policies limit the amount of
its net assets that can be committed at any given time to
futures contracts and require, in addition, a minimum amount of
diversification in the Partnership's trading, usually over
several different products. One of the aims of such trading

policies has been to reduce the credit exposure of the
Partnership to a single exchange and, historically, the
Partnership's exposure to any one exchange has typically
amounted to only a small percentage of its total net assets. On
those relatively few occasions where the Partnership's credit
exposure may climb above such level, Demeter deals with the
situation on a case by case basis, carefully weighing whether
the increased level of credit exposure remains appropriate.
Material changes to the trading policies may be made only with
the prior written approval of the Limited Partners owning more
than 50% of Units then outstanding.

Third, with respect to forward contract trading, the Partnership
trades with only those counterparties which Demeter, together
with Morgan Stanley DW, have determined to be creditworthy. The
Partnership presently deals with MS & Co. as the sole
counterparty on forward contracts.

See "Financial Instruments" under "Notes to Financial
Statements" in the Partnership's Annual Report to Limited
Partners for the year ended December 31, 2002, which is
incorporated by reference to Exhibit 13.01 of this Form 10-K.

Inflation has not been a major factor in the
Partnership's operations.

Item 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Introduction
The Partnership is a commodity pool engaged primarily in the
speculative trading of futures, forwards and options. The market-
sensitive instruments held by the Partnership are acquired for
speculative trading purposes only and, as a result, all or
substantially all of the Partnership's assets are at risk of
trading loss. Unlike an operating company, the risk of market-
sensitive instruments is central, not incidental, to the
Partnership's main business activities.

The futures, forwards, and options traded by the Partnership
involve varying degrees of related market risk. Market risk is
often dependent upon changes in the level or volatility of
interest rates, exchange rates, and prices of financial
instruments and commodities. Fluctuations in market risk based
upon these factors result in frequent changes in the fair value
of the Partnership's open positions, and, consequently, in its
earnings and cash flow.

The Partnership's total market risk is influenced by a
wide variety of factors, including the diversification among the
Partnership's open positions, the volatility present within the
markets, and the liquidity of the markets. At different times,
each of these factors may act to increase or decrease the market
risk associated with the Partnership.

The Partnership's past performance is not necessarily indicative
of its future results. Any attempt to numerically quantify the
Partnership's market risk is limited by the uncertainty of its
speculative trading. The Partnership's speculative trading may
cause future losses and volatility (i.e., "risk of ruin") that
far exceed the Partnership's experiences to date or any
reasonable expectations based upon historical changes in market
value.

Quantifying the Partnership's Trading Value at Risk
The following quantitative disclosures regarding the Partnership's
market risk exposures contain "forward-looking statements" within
the meaning of the safe harbor from civil liability provided for
such statements by the Private Securities Litigation Reform Act of
1995 (set forth in Section 27A of the Securities Act of 1933 and

Section 21E of the Securities Exchange Act of 1934). All
quantitative disclosures in this section are deemed to be forward-
looking statements for purposes of the safe harbor, except for
statements of historical fact.

The Partnership accounts for open positions on the basis of mark-
to-market accounting principles. Any loss in the market value of
the Partnership's open positions is directly reflected in the
Partnership's earnings, whether realized or unrealized, and its
cash flow. Profits and losses on open positions of exchange-
traded futures, forwards, and options are settled daily through
variation margin.

The Partnership's risk exposure in the market sectors traded by
the Trading Advisors is estimated below in terms of Value at
Risk ("VaR"). The VaR model used by the Partnership includes
many variables that could change the market value of the
Partnership's trading portfolio. The Partnership estimates VaR
using a model based upon historical simulation with a confidence
level of 99%. Historical simulation involves constructing a
distribution of hypothetical daily changes in the value of a
trading portfolio. The VaR model takes into account linear
exposures to price and interest rate risk. Market risks that
are incorporated in the VaR model include equity and commodity

prices, interest rates, foreign exchange rates, and correlation
among these variables. The hypothetical changes in portfolio
value are based on daily percentage changes observed in key
market indices or other market factors ("market risk factors")
to which the portfolio is sensitive. The historical observation
period of the Partnership's VaR is approximately four years. The
one-day 99% confidence level of the Partnership's VaR
corresponds to the negative change in portfolio value that,
based on observed market risk factors, would have been exceeded
once in 100 trading days. In other words, one-day VaR for a
portfolio is a number such that losses in this portfolio are
estimated to exceed the VaR only one day in 100. VaR typically
does not represent the worst case outcome.

VaR is calculated using historical simulation. Demeter uses
approximately four years of daily market data (1,000
observations) and revalues its portfolio (using delta-gamma
approximations) for each of the historical market moves that
occurred over this time period. This generates a probability
distribution of daily "simulated profit and loss" outcomes. The
VaR is the appropriate percentile of this distribution. For
example, the 99% one-day VaR would represent the 10th worst
outcome from Demeter's simulated profit and loss series.

The Partnership's VaR computations are based on the risk
representation of the underlying benchmark for each instrument
or contract and does not distinguish between exchange and non-
exchange-traded instruments and is also not based on exchange
and/or dealer-based margin requirements.

VaR models, including the Partnership's, are continuously
evolving as trading portfolios become more diverse and modeling
techniques and systems capabilities improve. Please note that
the VaR model is used to numerically quantify market risk for
historic reporting purposes only and is not utilized by either
Demeter or the Trading Advisors in their daily risk management
activities. Please further note that VaR as described above may
not be comparable to similarly titled measures used by other
entities.

The Partnership's Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership's open positions as a percentage of total net assets
by primary market risk category at December 31, 2002 and 2001.
At December 31, 2002 and 2001, the Partnership's total
capitalization was approximately $96 million and $48 million,
respectively.

Primary Market December 31, 2002 December 31, 2001
Risk Category Value at Risk Value at Risk

Currency (3.91)% (2.96)%

The VaR for a market category represents the one-day downside
risk for the aggregate exposures associated with this market
category.

The table above represents the VaR of the Partnership's open
positions at December 31, 2002 and 2001 only and is not
necessarily representative of either the historic or future risk
of an investment in the Partnership. Because the Partnership's
only business is the speculative trading of futures, forwards,
and options, the composition of its trading portfolio can change
significantly over any given time period, or even within a
single trading day. Any changes in open positions could
positively or negatively materially impact market risk as
measured by VaR.

The table below supplements the December 31, 2002 VaR by
presenting the Partnership's high, low and average VaR, as a
percentage of total net assets for the four quarterly reporting
periods from January 1, 2002 through December 31, 2002.

Primary Market Risk Category High Low Average

Currency (3.97)% (1.35)% (3.01)%

Limitations on Value at Risk as an Assessment of Market Risk
The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements. Margin requirements generally range between 2%
and 15% of contract face value. Additionally, the use of
leverage causes the face value of the market sector instruments
held by the Partnership to typically be many times the total
capitalization of the Partnership. The value of the
Partnership's open positions thus creates a "risk of ruin" not
typically found in other investments. The relative size of the
positions held may cause the Partnership to incur losses greatly
in excess of VaR within a short period of time, given the
effects of the leverage employed and market volatility. The VaR
tables above, as well as the past performance of the
Partnership, give no indication of such "risk of ruin". In
addition, VaR risk measures should be viewed in light of the
methodology's limitations, which include the following:
? past changes in market risk factors will not always result in
accurate predictions of the distributions and correlations of
future market movements;

? changes in portfolio value caused by market movements may
differ from those of the VaR model;
? VaR results reflect past trading positions while future risk
depends on future positions;
? VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and
? the historical market risk factor data used for VaR estimation
may provide only limited insight into losses that could be
incurred under certain unusual market movements.

The VaR tables above present the results of the Partnership's
VaR for the Partnership's market risk exposure at December 31,
2002 and 2001, and for the end of the four quarterly reporting
periods during calendar year 2002. Since VaR is based on
historical data, VaR should not be viewed as predictive of the
Partnership's future financial performance or its ability to
manage or monitor risk. There can be no assurance that the
Partnership's actual losses on a particular day will not exceed
the VaR amounts indicated above or that such losses will not
occur more than once in 100 trading days.

Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances not needed for margin. These balances and any market
risk they may represent are immaterial.

At December 31, 2002, the Partnership's cash balance at Morgan
Stanley DW was approximately 87% of its total net asset value. A
decline in short-term interest rates will result in a decline in
the Partnership's cash management income. This cash flow risk is
not considered to be material.

Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses, taking into account the leverage,
optionality and multiplier features of the Partnership's market-
sensitive instruments, in relation to the Partnership's net
assets.

Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the
Partnership's market risk exposures - except for (A) those
disclosures that are statements of historical fact and (B) the
descriptions of how the Partnership manages its primary market

risk exposures - constitute forward-looking statements within
the meaning of Section 27A of the Securities Act and Section 21E
of the Securities Exchange Act. The Partnership's primary
market risk exposures as well as the strategies used and to be
used by Demeter and the Trading Advisors for managing such
exposures are subject to numerous uncertainties, contingencies
and risks, any one of which could cause the actual results of
the Partnership's risk controls to differ materially from the
objectives of such strategies. Government interventions,
defaults and expropriations, illiquid markets, the emergence of
dominant fundamental factors, political upheavals, changes in
historical price relationships, an influx of new market
participants, increased regulation and many other factors could
result in material losses as well as in material changes to the
risk exposures and the risk management strategies of the
Partnership. Investors must be prepared to lose all or
substantially all of their investment in the Partnership.

The following was the primary trading risk exposure of the
Partnership at December 31, 2002. It may be anticipated,
however, that this market exposure will vary materially over
time.

Currency. The Partnership's currency exposure at December 31,
2002 was to exchange rate fluctuations, primarily fluctuations
which disrupt the historical pricing relationships between
different currencies and currency pairs. Interest rate changes
as well as political and general economic conditions influence
these fluctuations. The Partnership trades a large number of
currencies. At December 31, 2002, the Partnership's major
exposures were to outright U.S. dollar positions. Outright
positions consist of the U.S. dollar vs. other currencies.
These other currencies include major and minor currencies.
Demeter does not anticipate that the risk profile of the
Partnership's currency sector will change significantly in the
future. The currency trading VaR figure includes foreign margin
amounts converted into U.S. dollars with an incremental
adjustment to reflect the exchange rate risk inherent to the
U.S.-based Partnership in expressing VaR in a functional
currency other than U.S. dollars.

Qualitative Disclosures Regarding Non-Trading Risk Exposure
At December 31, 2002, there was no non-trading risk exposure
because the Partnership did not have any foreign currency cash
balances.

Qualitative Disclosures Regarding Means of Managing Risk
Exposure

The Partnership and the Trading Advisors, separately, attempt to
manage the risk of the Partnership's open positions in
essentially the same manner in all market categories traded.
Demeter attempts to manage the market exposure by diversifying
the Partnership's assets among different Trading Advisors, each
of whose strategies focus on different market sectors and trading
approaches, and monitoring the performance of the Trading
Advisors daily. In addition, the Trading Advisors establish
diversification guidelines, often set in terms of the maximum
margin to be committed to positions in any one market sector or
market-sensitive instrument.

Demeter monitors and controls the risk of the Partnership's non-
trading instrument, cash. Cash is the only Partnership
investment directed by Demeter, rather than the Trading Advisors.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements are incorporated by reference to the
Partnership's Annual Report, which is filed as Exhibit 13.01
hereto.

Supplementary data specified by Item 302 of Regulation S-K:

Summary of Quarterly Results (Unaudited)

Quarter Revenues/ Net Net Income/
Ended (Net Losses) Income/(Loss) (Loss) Per Unit

2002
March 31 $(4,108,907) $(4,944,552) $ (1.17)
June 30 15,457,288 13,231,295 2.60
September 30 (7,254,255) (8,531,364) (1.48)
December 31 12,089,765 10,527,741 1.57

Total $16,183,891 $10,283,120 $ 1.52

2001
March 31 $1,783,392 $1,250,137 $ 0.65
June 30 (269,233) (687,632) (0.32)
September 30 (230,606) (755,594) (0.32)
December 31 6,069,901 4,529,428 1.23

Total $7,353,454 $4,336,339 $ 1.24

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE

None.

PART III

Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

There are no directors or executive officers of the Partnership.
The Partnership is managed by Demeter.

Directors and Officers of the General Partner
The directors and executive officers of Demeter are as follows:

Robert E. Murray, age 42, is the Managing Director of the
Strategic Products Group at Morgan Stanley and Chairman of the
Board of Directors of Demeter Management Corporation, a leading
commodity pool operator with approximately $1.7 billion in
assets across a variety of U.S. and international public and
private managed futures funds. Mr. Murray began at Dean Witter
in 1984 and has been closely involved in the growth of managed
futures at the firm over the last 18 years. He is also the
Chairman of the Board of Directors of Morgan Stanley Futures &
Currency Management Inc., Morgan Stanley's internal commodity
trading advisor. Mr. Murray served as the Vice Chairman and a
Director of the Board of the Managed Futures Association and is
currently a member of the Board of Directors of the National
Futures Association. Mr. Murray received a Bachelors Degree in
Finance from Geneseo State University in 1983.

Jeffrey A. Rothman, age 41, is President and a Director of
Demeter. Mr. Rothman is the Executive Director of Morgan Stanley
Managed Futures, responsible for overseeing all aspects of the
firm's managed futures department. He is also President and a
Director of Morgan Stanley Futures & Currency Management Inc.
Mr. Rothman has been with the managed futures department for
sixteen years and most recently held the position of National
Sales Manager, assisting Branch Managers and Financial Advisors
with their managed futures education, marketing, and asset
retention efforts. Throughout his career, Mr. Rothman has helped
with the development, marketing and administration of
approximately 35 commodity pools. Mr. Rothman is an active
member of the Managed Funds Association and serves on its Board
of Directors.

Mitchell M. Merin resigned his position as a Director of
Demeter.

Joseph G. Siniscalchi, age 57, is a Director of Demeter. Mr.
Siniscalchi joined Morgan Stanley DW in July 1984 as a First
Vice President, Director of General Accounting and served as a
Senior Vice President and Controller for Morgan Stanley DW's
Securities Division through 1997. He is currently a Managing

Director responsible for the Client Support Service
Division of Morgan Stanley DW. From February 1980 to July 1984,
Mr. Siniscalchi was Director of Internal Audit at Lehman
Brothers Kuhn Loeb, Inc.

Edward C. Oelsner, III, age 61, is a Director of Demeter. Mr.
Oelsner is currently an Executive Vice President and head of the
Product Development Group at Morgan Stanley Investment Advisors
Inc., an affiliate of Morgan Stanley DW. Mr. Oelsner joined
Morgan Stanley DW in 1981 as a Managing Director in Morgan
Stanley DW's Investment Banking Department, specializing in
coverage of regulated industries and subsequently served as head
of the Morgan Stanley DW Retail Products Group. Prior to
joining Morgan Stanley DW, Mr. Oelsner held positions at The
First Boston Corporation as a member of the Research and
Investment Banking Departments from 1967 to 1981. Mr. Oelsner
received an M.B.A. in Finance from the Columbia University
Graduate School of Business in 1966 and an A.B. in Politics from
Princeton University in 1964.

Richard A. Beech, age 51, is a Director of Demeter. Mr. Beech
has been associated with the futures industry for over 25 years.
He has been at Morgan Stanley DW since August 1984 where he is
presently an Executive Director and head of Branch Futures. Mr.
Beech began his career at the Chicago Mercantile
Exchange, where he became the Chief Agricultural Economist doing
market analysis, marketing and compliance. Prior to joining
Morgan Stanley DW, Mr. Beech worked at two investment banking
firms in operations, research, managed futures and sales
management.

Raymond A. Harris, age 46, is a Director of Demeter and of
Morgan Stanley Futures & Currency Management Inc. Mr. Harris is
currently a Managing Director of Global Products & Services at
Morgan Stanley. He previously served as Chief Accounting
Officer of Morgan Stanley Dean Witter Asset Management. From
July 1982 to July 1994, Mr. Harris served in financial,
administrative and other assignments at Dean Witter Reynolds,
Inc. and Dean Witter, Discover & Co. From August 1994 to
January 1999, he worked in Discover Financial Services and the
firm's Credit Service business units. Mr. Harris has been with
Morgan Stanley and its affiliates since July 1982. He has a
B.A. degree from Boston College and an M.B.A. in Finance from
the University of Chicago.

Anthony J. DeLuca, age 40, is a Director of Demeter. Mr. DeLuca
is also a Director of Morgan Stanley Futures & Currency
Management Inc. Mr. DeLuca was appointed the Controller of
Asset Management for Morgan Stanley in June 1999. Prior to

that, Mr. DeLuca was a partner at the accounting firm of
Ernst & Young LLP, where he had Morgan Stanley as a major
client. Mr. DeLuca had worked continuously at Ernst & Young LLP
ever since 1984, after he graduated from Pace University with a
B.B.A. degree in Accounting.

Frank Zafran, age 47, is a Director of Demeter and of Morgan
Stanley Futures & Currency Management Inc. Mr. Zafran is an
Executive Director of Morgan Stanley and, in September 2002, was
named Chief Administrative Officer of Morgan Stanley's Global
Products & Services Division. Mr. Zafran joined the firm in 1979
and has held various positions in Corporate Accounting and the
Insurance Department, including Senior Operations Officer -
Insurance Division, until his appointment in 2000 as Director of
401(k) Plan Services, responsible for all aspects of 401(k) Plan
Services including marketing, sales and operations. Mr. Zafran
received a B.S. degree in Accounting from Brooklyn College, New
York.

Raymond E. Koch resigned his position as Chief Financial Officer
of Demeter.

Jeffrey D. Hahn, age 45, is the Chief Financial Officer of
Demeter. Mr. Hahn began his career at Morgan Stanley in 1992 and

is currently an Executive Director responsible for the
management and supervision of the accounting, reporting, tax and
finance functions for the firm's private equity, managed futures,
and certain legacy real estate investing activities. He is also
Chief Financial Officer of Morgan Stanley Futures & Currency
Management Inc. From August 1984 through May 1992, Mr. Hahn held
various positions as an auditor at Coopers & Lybrand, specializing
in manufacturing businesses and venture capital organizations. Mr.
Hahn received his B.A. in Economics from St. Lawrence University
in 1979, an M.B.A. from Pace University in 1984, and is a
Certified Public Accountant.

All of the foregoing directors have indefinite terms.

Item 11. EXECUTIVE COMPENSATION
The Partnership has no directors and executive officers. As a
limited partnership, the business of the Partnership is managed by
Demeter, which is responsible for the administration of the
business affairs of the Partnership but receives no compensation
for such services.

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT

(a) Security Ownership of Certain Beneficial Owners - At December
31, 2002, there were no persons known to be beneficial owners of
more than 5 percent of the Units.

(b) Security Ownership of Management - At December 31, 2002,
Demeter owned 162,791.986 Units of general partnership interest
representing a 2.36 percent interest in the Partnership.

Robert E. Murray, Chairman of the Board of Demeter, owns 180.995
Units of limited partnership interest, which represents less than
1% of the outstanding Units of the Partnership.

(c) Changes in Control - None.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Refer to Note 2 - "Related Party Transactions" of "Notes to
Financial Statements", in the accompanying Annual Report to
Limited Partners for the year ended December 31, 2002, which is
incorporated by reference to Exhibit 13.01 of this Form 10-K. In
its capacity as the Partnership's retail commodity broker, Morgan
Stanley DW received commodity brokerage fees (paid and accrued by
the Partnership) of $3,077,048 for the year ended December 31,
2002.

Item 14. CONTROLS AND PROCEDURES
(a) As of a date within 90 days of the filing date of this
annual report, the President and Chief Financial
Officer of the general partner, Demeter, have
evaluated the effectiveness of the Partnership's
disclosure controls and procedures (as defined in
Rules 13a-14 and 15d-14 of the Exchange Act), and have
judged such controls and procedures to be effective.

(b) There have been no significant changes in the
Partnership's internal controls or in other factors that
could significantly affect these controls subsequent to
the date of their evaluation.

PART IV
Item 15.EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) 1. Listing of Financial Statements
The following financial statements and report of independent auditors,
all appearing in the accompanying Annual Report to Limited Partners for
the year ended December 31, 2002, are incorporated by reference to
Exhibit 13.01 of this Form 10-K:
- - Report of Deloitte & Touche LLP, independent auditors, for the
years ended December 31, 2002, 2001 and for the period from July
3, 2000 (commencement of operations) to December 31, 2000.

- - Statements of Financial Condition, including the Schedules of
Investments, as of December 31, 2001 and 2002.

- - Statements of Operations, Changes in Partners' Capital, and Cash
Flows for the years ended December 31, 2002, 2001 and for the
period from July 3, 2000 (commencement of operations) to December
31, 2000.

- - Notes to Financial Statements.
With the exception of the aforementioned information and the information
incorporated in Items 7, 8 and 13, the Annual Report to Limited Partners
for the year ended December 31, 2002 is not deemed to be filed with this
report.

2. Listing of Financial Statement Schedules
No financial statement schedules are required to be filed with this
report.

(b) Reports on Form 8-K
No reports on Form 8-K have been filed by the Partnership during the
last quarter of the period covered by this report.

(c) Exhibits
Refer to Exhibit Index on Page E-1 to E-3.

SIGNATURES

Pursuant to the requirements of Sections 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

MORGAN STANLEY SPECTRUM CURRENCY L.P.
(Registrant)

BY: Demeter Management Corporation,
General Partner

March 31, 2003 BY: /s/ Jeffrey A. Rothman
Jeffrey A. Rothman, Director
and President

Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.

Demeter Management Corporation.

BY: /s/ Robert E. Murray March 31, 2003
Robert E. Murray, Director and
Chairman

/s/ Jeffrey A. Rothman March 31, 2003
Jeffrey A. Rothman, Director and
President

/s/ Joseph G. Siniscalchi March 31, 2003
Joseph G. Siniscalchi, Director

/s/ Edward C. Oelsner III March 31, 2003
Edward C. Oelsner III, Director

/s/ Richard A. Beech March 31, 2003
Richard A. Beech, Director

/s/ Raymond A. Harris March 31, 2003
Raymond A. Harris, Director

/s/ Anthony J. DeLuca March 31, 2003
Anthony J. DeLuca, Director

/s/ Frank Zafran March 31, 2003
Frank Zafran, Director

/s/ Jeffrey D. Hahn March 31, 2003
Jeffrey D. Hahn, Chief
Financial Officer

CERTIFICATIONS

I, Jeffrey A. Rothman, President of Demeter Management
Corporation, the general partner of the registrant, certify that:

1. I have reviewed this annual report on Form 10-K of the
registrant;

2. Based on my knowledge, this annual report does not contain any
untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this annual
report;

3. Based on my knowledge, the financial statements, and other
financial information included in this annual report, fairly
present in all material respects the financial condition,
results of operations and cash flows of the registrant as of,
and for, the periods presented in this annual report;

4. The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-
14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure
that material information relating to the registrant,
including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during
the period in which this annual report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to
the filing date of this annual report (the "Evaluation
Date"); and

c) presented in this annual report our conclusions about the
effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of Demeter's
board of directors (or persons performing the equivalent
function):

a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the
registrant's ability to record, process, summarize and
report financial data and have identified for the
registrant's auditors any material weaknesses in internal
controls; and

b) any fraud, whether or not material, that involves management
or other employees who have a significant role in the
registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated
in this annual report whether there were significant changes in
internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.

Date: March 31, 2003 /s/ Jeffrey A. Rothman
Jeffrey A. Rothman
President, Demeter Management
Corporation, general partner
of the registrant

CERTIFICATIONS

I, Jeffrey D. Hahn, Chief Financial Officer of Demeter Management
Corporation, the general partner of the registrant, certify that:

1. I have reviewed this annual report on Form 10-K of the
registrant;

2. Based on my knowledge, this annual report does not contain
any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light
of the circumstances under which such statements were made,
not misleading with respect to the period covered by this
annual report;

3. Based on my knowledge, the financial statements, and other
financial information included in this annual report, fairly
present in all material respects the financial condition,
results of operations and cash flows of the registrant as of,
and for, the periods presented in this annual report;

4. The registrant's other certifying officers and I are
responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules
13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to
ensure that material information relating to the
registrant, including its consolidated subsidiaries, is
made known to us by others within those entities,
particularly during the period in which this annual
report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior
to the filing date of this annual report (the "Evaluation
Date"); and

c) presented in this annual report our conclusions about the
effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have
disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of Demeter's
board of directors (or persons performing the equivalent
function):

a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the
registrant's ability to record, process, summarize and
report financial data and have identified for the
registrant's auditors any material weaknesses in internal
controls; and

b) any fraud, whether or not material, that involves
management or other employees who have a significant role
in the registrant's internal controls; and

6. The registrant's other certifying officers and I have
indicated in this annual report whether there were
significant changes in internal controls or in other factors
that could significantly affect internal controls subsequent
to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies
and material weaknesses.

Date: March 31, 2003 /s/Jeffrey D. Hahn
Jeffrey D. Hahn
Chief Financial Officer,
Demeter Management Corporation,
general partner of the
registrant

EXHIBIT INDEX
ITEM

3.01 Form of Amended and Restated Limited Partnership
Agreement of the Partnership, dated as of April 30,
2002, is incorporated by reference to Exhibit A of the
Partnership's Prospectus, dated April 30, 2002, filed
with the Securities and Exchange Commission pursuant
to Rule 424(b)(3) under the Securities Act of 1933 on
May 8, 2002.

3.02 Certificate of Limited Partnership, dated October 20,
1999, is incorporated by reference to Exhibit 3.02 of
the Partnership's Registration Statement on Form S-1
(File No. 333-90485) filed with the Securities and
Exchange Commission on November 5, 1999.

3.03 Certificate of Amendment of Certificate of Limited
Partnership, dated November 1, 2001, (changing its
name from Morgan Stanley Dean Witter Spectrum Currency
L.P.) is incorporated by reference to Exhibit 3.01 of
the Partnership's Form 8-K (File No. 0-31563) filed
with the Securities and Exchange Commission on
November 1, 2001.

10.01 Management Agreement among the Partnership, Demeter
and John W. Henry & Company, Inc., dated as of March
6, 2000, is incorporated by reference to Exhibit 10.01
of the Partnership's Quarterly Report on Form 10-Q
(File No. 0-31563) filed with the Securities and
Exchange Commission on November 14, 2000.

10.01(a) Amendment to Management Agreement, dated as of
November 30, 2000, among the Partnership, John W.
Henry & Company, Inc., and Demeter is incorporated by
reference to Exhibit 10.01 of the Partnership's Form
8-K (File No. 0-31563), filed with the Securities and
Exchange Commission on January 3, 2001.

10.02 Management Agreement among the Partnership, Demeter
and Sunrise Capital Partners, LLC, dated as of March
6, 2000, is incorporated by reference to Exhibit 10.02
of the Partnership's Quarterly Report on Form 10-Q
(File No. 0-31563) filed with the Securities and
Exchange Commission on November 14, 2000.

10.02(a) Amendment to Management Agreement, dated as of
November 30, 2000, among the Partnership, Sunrise
Capital Partners, LLC, and Demeter is incorporated by
reference to Exhibit 10.02 of the Partnership's Form
8-K (File No. 0-31563), filed with the Securities and
Exchange Commission on January 3, 2001.

10.05 Amended and Restated Escrow Agreement among the
Partnership, Morgan Stanley Spectrum Select L.P.,
Morgan Stanley Spectrum Technical L.P., Morgan Stanley
Spectrum Strategic L.P., Morgan Stanley Spectrum
Global Balanced L.P., Morgan Stanley Spectrum
Commodity L.P., Morgan Stanley DW and The Chase
Manhattan Bank, the escrow agent, dated as of March
10, 2000, is incorporated by reference to Exhibit
10.05 of the Partnership's Registration Statement on
Form S-1 (File No. 333-90485) filed with the
Securities and Exchange Commission on November 2,
2001.
10.06 Form of Subscription and Exchange Agreement and Power
of Attorney to be executed by each purchaser of Units
is incorporated by reference to Exhibit B of the
Partnership's Prospectus, dated April 30, 2002, filed
with the Securities and Exchange Commission pursuant
to Rule 424(b)(3) under the Securities Act of 1933 on
May 8, 2002.
10.08 Form of Subscription Agreement

executed by each purchaser of Units is incorporated by
reference to Exhibit C of the Partnership's
Prospectus, dated April 30, 2002, filed with the
Securities and Exchange Commission pursuant to Rule
424(b)(3) under the Securities Act of 1933 on May 8,
2002.
10.09 Amended and Restated Customer Agreement between the
Partnership and Morgan Stanley DW, dated as of June
30, 2000,is incorporated by reference to Exhibit 10.01
of the Partnership's Form 8-K (File No. 0-31563) filed
with the Securities and Exchange Commission on
November 1, 2001.

10.10 Commodity Futures Customer Agreement between MS & Co.
and the Partnership, and acknowledged and agreed to by
Morgan Stanley DW, dated as of June 6, 2000, is
incorporated by reference to Exhibit 10.02 of the
Partnership's Form 8-K (File No. 0-31563) filed with
the Securities and Exchange Commission on November 1,
2001.

10.11 Foreign Exchange and Options Master Agreement between
MS & Co. and the Partnership, dated as of June 30,
2000, is incorporated by reference to Exhibit 10.04 of
the Partnership's Form 8-K (File No. 0-31563) filed
with the Securities and Exchange Commission on
November 1, 2001.

10.12 Securities Account Control Agreement among the
Partnership, MS & Co., and Morgan Stanley DW, dated as
of June 6, 2000, is incorporated by reference to
Exhibit 10.03 of the Partnership's Form 8-K (File No.
0-31563) filed with the Securities and Exchange
Commission on November 1, 2001.

13.10 Annual Report to Limited Partners for the year ended
December 31, 2002 is filed herewith.

99.01 Certification of President of Demeter Management
Corporation, general partner of the Partnership,
pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.

99.02 Certification of Chief Financial Officer of Demeter
Management Corporation, general partner of the
Partnership, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.

EXHIBIT 99.01

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Morgan Stanley Spectrum
Currency L.P. (the "Partnership") on Form 10-K for the period
ended December 31, 2002 as filed with the Securities and
Exchange Commission on the date hereof (the "Report"), I,
Jeffrey A. Rothman, President, Demeter Management Corporation,
general partner of the Partnership, certify, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of
Section 13 or 15(d) of the Securities Exchange Act of
1934; and

(2) The information contained in the Report fairly
presents, in all material respects, the financial
condition and results of operations of the Partner-
ship.

By: /s/ Jeffrey A. Rothman

Name: Jeffrey A. Rothman
Title: President

Date: March 31, 2003

EXHIBIT 99.02

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Morgan Stanley Spectrum
Currency L.P. (the "Partnership") on Form 10-K for the period
ended December 31, 2002 as filed with the Securities and
Exchange Commission on the date hereof (the "Report"), I,
Jeffrey D. Hahn, Chief Financial Officer, Demeter Management
Corporation, general partner of the Partnership, certify,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of
Section 13 or 15(d) of the Securities Exchange Act of
1934; and

(2) The information contained in the Report fairly
presents, in all material respects, the financial
condition and results of operations of the Partner-
ship.

By: /s/ Jeffrey D. Hahn

Name: Jeffrey D. Hahn
Title: Chief Financial Officer

Date: March 31, 2003

Morgan Stanley
Spectrum Series

December 31, 2002
Annual Report

[LOGO] Morgan Stanley

MORGAN STANLEY SPECTRUM SERIES

HISTORICAL FUND PERFORMANCE

Presented below is the percentage change in Net Asset Value per Unit from the
start of every calendar year each Fund has traded. Also provided is the
inception-to-date return and the annualized return since inception for each
Fund. Past performance is not necessarily indicative of future results.

INCEPTION-
TO-DATE ANNUALIZED
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 RETURN RETURN
FUND % % % % % % % % % % % % % %
- --------------------------------------------------------------------------------------------------------------------------------

Spectrum Commodity...... -- -- -- -- -- -- -- (34.3) 15.8 3.2 (25.6) 16.6 (31.9) (7.4)
- --------------------------------------------------------------------------------------------------------------------------------
Spectrum Currency....... -- -- -- -- -- -- -- -- -- 11.7 11.1 12.2 39.3 14.2
(6 mos.)
- --------------------------------------------------------------------------------------------------------------------------------
Spectrum Global Balanced -- -- -- (1.7) 22.8 (3.6) 18.2 16.4 0.7 0.9 (0.3) (10.1) 45.7 4.7
(2 mos.)
- --------------------------------------------------------------------------------------------------------------------------------
Spectrum Select......... 31.2 (14.4) 41.6 (5.1) 23.6 5.3 6.2 14.2 (7.6) 7.1 1.7 15.4 176.5 9.3
(5 mos.)
- --------------------------------------------------------------------------------------------------------------------------------
Spectrum Strategic...... -- -- -- 0.1 10.5 (3.5) 0.4 7.8 37.2 (33.1) (0.6) 9.4 15.4 1.8
(2 mos.)
- --------------------------------------------------------------------------------------------------------------------------------
Spectrum Technical...... -- -- -- (2.2) 17.6 18.3 7.5 10.2 (7.5) 7.8 (7.2) 23.3 84.1 7.8
(2 mos.)
- --------------------------------------------------------------------------------------------------------------------------------

DEMETER MANAGEMENT CORPORATION

825 Third Avenue, 9th Floor
New York, NY 10022
(212) 310-6444

MORGAN STANLEY SPECTRUM SERIES
ANNUAL REPORT
2002

Dear Limited Partner:
This marks the ninth annual report for Morgan Stanley Spectrum Global
Balanced L.P., Morgan Stanley Spectrum Strategic L.P. and Morgan Stanley
Spectrum Technical L.P., the twelfth annual report for Morgan Stanley Spectrum
Select L.P., the fifth annual report for Morgan Stanley Spectrum Commodity L.P.
and the third annual report for Morgan Stanley Spectrum Currency L.P. The Net
Asset Value per Unit for each of the six Morgan Stanley Spectrum Funds as of
December 31, 2002 was as follows:

% CHANGE
FUNDS N.A.V. FOR YEAR
-----------------------------------------

Spectrum Commodity $ 6.81 16.6%
-----------------------------------------
Spectrum Currency $13.93 12.2%
-----------------------------------------
Spectrum Global Balanced $14.57 -10.1%
-----------------------------------------
Spectrum Select $27.65 15.4%
-----------------------------------------
Spectrum Strategic $11.54 9.4%
-----------------------------------------
Spectrum Technical $18.41 23.3%
-----------------------------------------

Since their inception in November 1994, Spectrum Global Balanced has
increased by 45.7% (a compound annualized return of 4.7%), Spectrum Strategic
has increased by 15.4% (a compound annualized return of 1.8%), and Spectrum
Technical has increased by 84.1% (a compound annualized return of 7.8%). Since
its inception in August 1991, Spectrum Select has increased by 176.5% (a
compound annualized return of 9.3%). Since its inception in January 1998,
Spectrum Commodity has decreased by 31.9% (a compound annualized return of
- -7.4%). Since its inception in July 2000, Spectrum Currency has increased by
39.3% (a compound annualized return of 14.2%).

Detailed performance information for each Fund is located in the body of the
financial report. For each Fund, we provide a trading results by sector chart
that portrays trading gains and trading losses for the year in each sector in
which the Fund participates. In the case of Spectrum Currency, we provide the
trading gains and trading losses for the five major currencies in which the
Fund participates, and composite information for all other "minor" currencies
traded within the Fund.

The trading results by sector charts indicate the year's composite percentage
returns generated by the specific assets dedicated to trading within each
market sector in which each Fund participates. Please note that there is not an
equal amount of assets in each market sector, and the specific allocations of
assets by a Fund to each sector will vary over time within a predetermined
range. Below each chart is a description of the factors that influenced trading
gains and trading losses within each Fund during the year.

Special Notice to Limited Partners of Morgan Stanley Spectrum Commodity L.P.

As notified under separate cover dated December 16, 2002, Limited Partners of
Morgan Stanley Spectrum Commodity L.P. are advised that Demeter Management
Corporation, the general partner of Spectrum Commodity, has determined to
terminate trading within the Fund effective December 31, 2002, and commence
dissolution pursuant to the Fund's Limited Partnership Agreement.

Limited Partners are advised of recent changes to the Board of Directors and
Officers of Demeter Management Corporation (the "General Partner"):

Mr. Robert E. Murray resigned the position of President of the General
Partner. Mr. Murray will, however, retain his position as Chairman of the Board
of Directors.

Mr. Jeffrey A. Rothman, age 41, is the President and a Director of the
General Partner. Mr. Rothman is the Executive Director of Morgan Stanley
Managed Futures, responsible for overseeing all aspects of the firm's Managed
Futures Department. He is also President and a Director of Morgan Stanley
Futures & Currency Management Inc., Morgan Stanley's internal commodity trading
advisor. Mr. Rothman has been with the Managed Futures Department for sixteen
years and most recently held the position of National Sales Manager, assisting
Branch Managers and Financial Advisors with their managed futures education,
marketing, and asset retention efforts. Throughout his career, Mr. Rothman has
helped with the development, marketing, and administration of approximately 35
commodity pool investments. Mr. Rothman is an active member of the Managed
Funds Association and serves on its Board of Directors.

Mr. Frank Zafran, age 47, is a Director of the General Partner and of Morgan
Stanley Futures & Currency Management Inc. Mr. Zafran is an Executive Director
of Morgan Stanley and, in September 2002, was named Chief Administrative
Officer of Morgan Stanley's Global Products & Services Division. Mr. Zafran
joined the firm in 1979 and held various positions in Corporate Accounting and
the Insurance Department, including

Senior Operations Officer--Insurance Division, until his appointment in 2000 as
Director of 401(k) Plan Services, responsible for all aspects of 401(k) Plan
Services including marketing, sales and operations. Mr. Zafran received a B.S.
degree in Accounting from Brooklyn College, New York.

Mr. Raymond E. Koch resigned the position of Chief Financial Officer of the
General Partner.

Mr. Jeffrey D. Hahn, age 45, was named Chief Financial Officer of the General
Partner. Mr. Hahn began his career at Morgan Stanley in 1992 and is currently
an Executive Director responsible for the management and supervision of the
accounting, reporting, tax and finance functions for the firm's private equity,
managed futures, and certain legacy real estate investing activities. He is
also Chief Financial Officer of Morgan Stanley Futures & Currency Management
Inc. From August 1984 through May 1992, Mr. Hahn held various positions as an
auditor at Coopers & Lybrand, specializing in manufacturing businesses and
venture capital organizations. Mr. Hahn received his B.A. in Economics from St.
Lawrence University in 1979, an M.B.A. from Pace University in 1984, and is a
Certified Public Accountant.

Should you have any questions concerning this report, please feel free to
contact Demeter Management Corporation, 825 Third Avenue, 9th Floor, New York,
NY 10022 or your Morgan Stanley Financial Advisor.

I hereby affirm, that to the best of my knowledge and belief, the information
contained in this report is accurate and complete. Past performance is not a
guarantee of future results.

Sincerely,
/s/ Jeffrey A. Rothman
Jeffrey A. Rothman
President
Demeter Management Corporation
General Partner

SPECTRUM COMMODITY

[CHART]

Year ended
December 31, 2002
-----------------
Energies 10.34%
Metals 1.70%
Agriculturals 9.77%

Note:Reflects trading results only and does not include fees or interest income.

FACTORS INFLUENCING ANNUAL TRADING GAINS:
.. In the energy futures markets, gains were experienced throughout a majority
of the year from long positions in natural gas futures as prices drew
strength primarily from colder weather in the Northeastern U.S. and a
disruption of output from the Gulf of Mexico caused by Hurricane Isidore.
Additional gains were recorded from long positions in crude oil futures and
related products as growing tensions between the U.S. and Iraq pushed prices
higher in late February and early March, as well as during the second half
of the year.
.. In the agricultural markets, gains were provided from long positions in
cocoa futures as political unrest in the Ivory Coast threatened supplies
throughout a majority of the year. Additional gains were recorded from long
positions in sugar futures during December and long positions in a variety
of grain futures during May, June, and July.
.. In the metals futures markets, gains were recorded from long futures
positions in gold as prices initially climbed higher early in the year amid
investors' fears concerning weaker global equity prices. Additional gains
resulted later in the year, as gold prices resumed their upward move amid
the looming threat of military action against Iraq and North Korea.

SPECTRUM CURRENCY

[CHART]

Year ended
December 31, 2002
-----------------
Australian dollar 4.12%
British Pound -8.99%
Euro 16.42%
Japanese yen -7.28%
Swiss franc 5.07%
Minor Currencies 12.95%

Note:Reflects trading results only and does not include fees or interest
income. Minor currencies may include, but are not limited to, the South
African rand, Thai baht, Greek drachma, Singapore dollar, Mexican peso,
New Zealand dollar and Norwegian krone.

FACTORS INFLUENCING ANNUAL TRADING GAINS:
.. Gains were recorded from long positions in the euro, Swiss franc, and
Norwegian krone versus the U.S. dollar as the dollar's value significantly
weakened during April, May, and June amid falling equity prices and concerns
regarding corporate integrity. Additional gains from long positions in the
euro, Swiss franc, and Norwegian krone were experienced in December as the
looming threat of a potential military conflict with Iraq and North Korea
further weakened the dollar.
.. Additional gains stemmed from long positions in the South African rand
versus the U.S. dollar as its value approached a 16-month high during the
second and fourth quarter amid strong demand for South African exports and
high relative interest rates.
.. Profits were recorded from long positions in the Australian dollar and New
Zealand dollar versus the U.S. dollar as the value of both currencies
strengthened during April, May, and throughout the fourth quarter amid
higher gold prices.

FACTORS INFLUENCING ANNUAL TRADING LOSSES:
.. Losses were recorded in the British pound from short positions versus the
U.S. dollar during the summer months and into the fourth quarter as the
value of the dollar weakened amid geopolitical and economic concerns.
.. Losses resulted from positions in the Japanese yen versus the U.S. dollar
during March as the yen initially strengthened amid asset repatriation out
of the U.S. into Japan, only to retreat by month-end on expectations that
the repatriation flow would soon subside ahead of the Japanese fiscal
year-end. Further losses in the Japanese yen were experienced in December
from short positions versus the U.S. dollar as the value of the dollar
weakened versus most major currencies.

SPECTRUM GLOBAL BALANCED

[CHART]

Year ended
December 31, 2002
-----------------
Currencies 1.31%
Interest Rates 7.42%
Stock Indices -14.15%
Energies 0.00%
Metals -0.45%
Agriculturals -0.43%

Note:Reflects trading results only and does not include fees or interest income.

FACTORS INFLUENCING ANNUAL TRADING LOSSES:
.. In the global stock index futures markets, losses were experienced from long
positions in European, U.S., and Japanese stock index futures as prices
continued to weaken throughout the majority of the year, particularly during
July, September, and December, amid continued economic uncertainty and
ongoing political concerns.

FACTORS INFLUENCING ANNUAL TRADING GAINS:
.. In the global interest rate futures markets, gains resulted from long
positions in European, Japanese, and U.S. interest rate futures,
predominantly during the third quarter, as prices trended higher amid a
shift in assets from stocks into bonds as investors sought the "safe haven"
of fixed income investments.
.. In the currency markets, gains were recorded from long positions in the euro
and Swiss franc versus the U.S. dollar as the dollar's value weakened during
May, June, and December amid investors' fears concerning increased global
tensions, specifically the threat of war between India and Pakistan, the
looming threat of a military strike against Iraq, and the resumption of
North Korea's nuclear program.

SPECTRUM SELECT

[CHART]

Year ended
December 31, 2002
-----------------
Currencies 12.08%
Interest Rates 9.54%
Stock Indices 0.45%
Energies 1.01%
Metals -1.82%
Agriculturals 1.23%

Note:Reflects trading results only and does not include fees or interest income.

FACTORS INFLUENCING ANNUAL TRADING GAINS:
.. In the currency markets, gains were recorded from long positions in the euro
and Swiss franc versus the U.S. dollar during May, June and December, as the
dollar's value weakened amid investors' fears concerning global political
tensions, specifically the threat of war between India and Pakistan, the
looming threat of a military strike against Iraq, and the resumption of
North Korea's nuclear program.
.. In the global interest rate futures markets, gains were recorded from long
positions in European and U.S. interest rate futures during the period from
June through September, as well as in December, as prices trended higher
amid a shift of assets from stocks into bonds as investors sought the "safe
haven" of fixed income investments.
.. In the agricultural futures markets, gains were recorded from long futures
positions in soybean and wheat as prices rallied during the second and third
quarter amid fears that hot and dry weather would adversely affect crops in
the U.S. midwest.
.. In the energy futures markets, gains were experienced from long positions in
natural gas futures during March, August, September, and December as prices
moved higher amid supply concerns.

FACTORS INFLUENCING ANNUAL TRADING LOSSES:
.. In the metals futures markets, losses were incurred early in the year from
long positions in copper futures as prices fell amid weak industrial demand.
Additional losses were recorded from short positions in copper futures as
prices reversed higher in response to a temporary rally in global equity
prices in October.

SPECTRUM STRATEGIC

[CHART]

Year ended
December 31, 2002
-----------------
Currencies 7.56%
Interest Rates -0.28%
Stock Indices -2.92%
Energies -0.06%
Metals -2.87%
Agriculturals 18.25%

Note:Reflects trading results only and does not include fees or interest income.

FACTORS INFLUENCING ANNUAL TRADING GAINS:
.. In the agricultural markets, gains were recorded from long futures positions
in cocoa as political unrest in the Ivory Coast threatened supplies
throughout a majority of the year. Additional gains were recorded from long
futures positions in coffee as technical factors and concerns regarding
supplies placed upward pressure on prices. Further gains resulted from long
positions in wheat, soybean, and corn futures as weather-related concerns
threatened supplies in the U.S. midwest.
.. In the currency markets, gains were recorded from long positions in the euro
and Swiss franc versus the U.S. dollar as the dollar's value weakened amid
investors' fears concerning increased global tensions and prolonged
uncertainty regarding the U.S. economy.

FACTORS INFLUENCING ANNUAL TRADING LOSSES:
.. In the global stock index futures markets, losses were recorded from long
positions in U.S. and European stock index futures as prices continued to
weaken throughout a majority of the year amid ongoing concerns regarding the
global economic recovery, corporate accounting scandals, and geopolitical
concerns. Additional losses were incurred from short positions in U.S. and
European stock index futures as global equity prices reversed higher during
the fourth quarter amid temporary economic optimism.
.. In the metals futures markets, losses were experienced from long positions
in copper, aluminum, and zinc futures as prices reversed lower during April
and July amid growing inventory levels and weak industrial demand.

SPECTRUM TECHNICAL

[CHART]

Year ended
December 31, 2002
-----------------
Currencies 13.05%
Interest Rates 17.05%
Stock Indices 4.34%
Energies 0.01%
Metals -2.34%
Agriculturals 0.96%

Note:Reflects trading results only and does not include fees or interest income.

FACTORS INFLUENCING ANNUAL TRADING GAINS:
.. In the global interest rate futures markets, gains resulted from long
positions in Japanese, European, and U.S. interest rate futures as prices
trended higher during the period from June through September, as well as in
December, amid global economic uncertainty and falling equity prices.
.. In the currency markets, gains were recorded during the second quarter, as
well as in December, from long positions in the euro versus the U.S. dollar
as the value of the dollar weakened amid continued uncertainty regarding the
U.S. economic recovery and heightened global political tensions.
.. In the global stock index futures markets, gains were recorded from short
positions in European stock index futures as prices trended lower during
June, July, and September amid skepticism regarding a global economic
recovery.

FACTORS INFLUENCING ANNUAL TRADING LOSSES:
.. In the metals futures markets, losses resulted from long positions in copper
futures as prices reversed lower during the second quarter amid growing
inventory levels and weak industrial demand. Additional losses were recorded
during October from short positions in copper futures as prices reversed
higher amid renewed economic optimism.

MORGAN STANLEY SPECTRUM SERIES

INDEPENDENT AUDITORS' REPORT

To the Limited Partners and the General Partner of Morgan Stanley Spectrum
Commodity L.P., Morgan Stanley Spectrum Currency L.P., Morgan Stanley Spectrum
Global Balanced L.P., Morgan Stanley Spectrum Select L.P., Morgan Stanley
Spectrum Strategic L.P. and Morgan Stanley Spectrum Technical L.P.:

We have audited the accompanying statements of financial condition of Morgan
Stanley Spectrum Commodity L.P., Morgan Stanley Spectrum Currency L.P.
("Spectrum Currency"), Morgan Stanley Spectrum Global Balanced L.P., Morgan
Stanley Spectrum Select L.P., Morgan Stanley Spectrum Strategic L.P., and
Morgan Stanley Spectrum Technical L.P. (collectively, the "Partnerships"),
including the schedules of investments, as of December 31, 2002 and 2001, and
the related statements of operations, changes in partners' capital, and cash
flows for the period from July 3, 2000 (commencement of operations) to December
31, 2000 and the years ended December 31, 2001 and 2002 for Spectrum Currency,
and for each of the three years in the period ended December 31, 2002 for the
other above mentioned Partnerships. These financial statements are the
responsibility of the Partnerships' management. Our responsibility is to
express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material
respects, the financial position of Morgan Stanley Spectrum Commodity L.P.,
Morgan Stanley Spectrum Currency L.P., Morgan Stanley Spectrum Global Balanced
L.P., Morgan Stanley Spectrum Select L.P., Morgan Stanley Spectrum Strategic
L.P., and Morgan Stanley Spectrum Technical L.P. as of December 31, 2002 and
2001, and the results of their operations and their cash flows for the period
from July 3, 2000 (commencement of operations) to December 31, 2000 and the
years ended December 31, 2001 and 2002 for Spectrum Cur-

rency, and for each of the three years in the period ended December 31, 2002
for the other above mentioned Partnerships, in conformity with accounting
principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

New York, New York
February 14, 2003

MORGAN STANLEY SPECTRUM COMMODITY L.P.

STATEMENTS OF FINANCIAL CONDITION

DECEMBER 31,
----------------------
2002 2001
---------- ----------
$ $

ASSETS
Equity in futures interests trading accounts:
Cash 14,290,282 12,980,361

Net unrealized gain on open contracts (MS&Co.) -- 289,317
Net unrealized gain (loss) on open contracts
(MSIL) (101,856) 77,762
---------- ----------
Total net unrealized gain (loss) on open contracts (101,856) 367,079
---------- ----------
Total Trading Equity 14,188,426 13,347,440
Interest receivable (Morgan Stanley DW and
MS&Co.) 11,963 17,129
Subscriptions receivable -- 108,050
---------- ----------
Total Assets 14,200,389 13,472,619
========== ==========

LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
Redemptions payable 5,357,853 417,678
Accrued brokerage fees (Morgan Stanley DW and
MS&Co.) 52,969 52,001
Accrued management fees (MSCM) 28,788 28,261
---------- ----------
Total Liabilities 5,439,610 497,940
---------- ----------
PARTNERS' CAPITAL
Limited Partners (1,243,152.442 and 2,180,009.505
Units, respectively) 8,465,275 12,721,444
General Partner (43,395.648 Units) 295,504 253,235
---------- ----------
Total Partners' Capital 8,760,779 12,974,679
---------- ----------
Total Liabilities and Partners' Capital 14,200,389 13,472,619
========== ==========
NET ASSET VALUE PER UNIT 6.81 5.84
========== ==========

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31,
--------------------------------
2002 2001 2000
--------- ---------- ---------
$ $ $

REVENUES
Trading profit (loss):
Realized 3,310,675 (4,662,750) 1,696,824
Net change in unrealized (468,935) 392,362 (567,711)
--------- ---------- ---------
Total Trading Results 2,841,740 (4,270,388) 1,129,113
Interest income (Morgan Stanley DW
and MS&Co.) 178,063 518,759 1,047,350
--------- ---------- ---------
Total 3,019,803 (3,751,629) 2,176,463
--------- ---------- ---------
EXPENSES
Brokerage fees (Morgan Stanley DW and
MS&Co.) 607,846 736,436 949,310
Management fees (MSCM) 330,352 400,237 546,187
Service fees (Demeter) -- -- 58,604
--------- ---------- ---------
Total 938,198 1,136,673 1,554,101
--------- ---------- ---------
NET INCOME (LOSS) 2,081,605 (4,888,302) 622,362
========= ========== =========
NET INCOME (LOSS) ALLOCATION:
Limited Partners 2,039,336 (4,800,953) 612,086
General Partner 42,269 (87,349) 10,276
NET INCOME (LOSS) PER UNIT:
Limited Partners .97 (2.01) .24
General Partner .97 (2.01) .24

The accompanying notes are an integral part of these financial statements.

MORGAN STANLEY SPECTRUM CURRENCY L.P.

STATEMENTS OF FINANCIAL CONDITION

DECEMBER 31,
---------------------
2002 2001
---------- ----------
$ $

ASSETS
Equity in futures interests trading accounts:
Cash 88,478,803 43,241,135
Net unrealized gain on open contracts (MS&Co.) 5,651,549 3,178,383
---------- ----------
Total Trading Equity 94,130,352 46,419,518
Subscriptions receivable 4,178,758 2,642,117
Interest receivable (Morgan Stanley DW) 70,210 50,588
---------- ----------
Total Assets 98,379,320 49,112,223
========== ==========

LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
Redemptions payable 1,526,335 165,224
Accrued brokerage fees (Morgan Stanley DW) 316,460 154,729
Accrued incentive fees 239,482 913,255
Accrued management fees 137,591 67,274
---------- ----------
Total Liabilities 2,219,868 1,300,482
---------- ----------
PARTNERS' CAPITAL
Limited Partners (6,739,826.121 and 3,674,315.446 Units,
respectively) 93,891,619 45,598,611
General Partner (162,791.986 and 178,332.987 Units, respectively) 2,267,833 2,213,130
---------- ----------
Total Partners' Capital 96,159,452 47,811,741
---------- ----------
Total Liabilities and Partners' Capital 98,379,320 49,112,223
========== ==========
NET ASSET VALUE PER UNIT 13.93 12.41
========== ==========

STATEMENTS OF OPERATIONS

FOR THE PERIOD FROM
JULY 3, 2000
FOR THE YEARS ENDED (COMMENCEMENT OF
DECEMBER 31, OPERATIONS) TO
-------------------- DECEMBER 31,
2002 2001 2000
---------- --------- -------------------
$ $ $

REVENUES
Trading profit:
Realized 12,877,202 3,998,924 1,126,201
Net change in unrealized 2,473,166 2,622,814 555,569
---------- --------- ---------
Total Trading Results 15,350,368 6,621,738 1,681,770
Interest income (Morgan Stanley DW) 833,523 731,716 236,461
---------- --------- ---------
Total 16,183,891 7,353,454 1,918,231
---------- --------- ---------
EXPENSES
Brokerage fees (Morgan Stanley DW) 3,077,048 1,297,698 249,571
Incentive fees 1,485,875 1,155,201 188,423
Management fees 1,337,848 564,216 171,693
---------- --------- ---------
Total 5,900,771 3,017,115 609,687
---------- --------- ---------
NET INCOME 10,283,120 4,336,339 1,308,544
========== ========= =========
NET INCOME ALLOCATION:
Limited Partners 10,038,409 4,119,027 1,134,371
General Partner 244,711 217,312 174,173
NET INCOME PER UNIT:
Limited Partners 1.52 1.24 1.17
General Partner 1.52 1.24 1.17

The accompanying notes are an integral part of these financial statements.

MORGAN STANLEY SPECTRUM GLOBAL BALANCED L.P.

STATEMENTS OF FINANCIAL CONDITION

DECEMBER 31,
----------------------
2002 2001
---------- ----------
$ $

ASSETS
Equity in futures interests trading accounts:
Cash 49,330,482 57,396,091

Net unrealized gain on open contracts (MS&Co.) 758,782 839,855
Net unrealized loss on open contracts (MSIL) (12,849) (150,647)
---------- ----------
Total net unrealized gain on open contracts 745,933 689,208
Net option premiums 712,573 --
---------- ----------
Total Trading Equity 50,788,988 58,085,299
Subscriptions receivable 716,792 611,641
Interest receivable (Morgan Stanley DW) 53,458 93,818
---------- ----------
Total Assets 51,559,238 58,790,758
========== ==========

LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
Redemptions payable 896,775 725,284
Accrued brokerage fees (Morgan Stanley DW) 202,109 219,946
Accrued management fees 54,922 59,768
---------- ----------
Total Liabilities 1,153,806 1,004,998
---------- ----------
PARTNERS' CAPITAL
Limited Partners (3,419,596.378 and 3,524,663.525
Units, respectively) 49,814,229 57,127,967
General Partner (40,584.304 Units) 591,203 657,793
---------- ----------
Total Partners' Capital 50,405,432 57,785,760
---------- ----------
Total Liabilities and Partners' Capital 51,559,238 58,790,758
========== ==========
NET ASSET VALUE PER UNIT 14.57 16.21
========== ==========

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31,
----------------------------------
2002 2001 2000
---------- ---------- ----------
$ $ $

REVENUES
Trading profit (loss):
Realized (3,772,374) 3,618,628 (2,091,009)
Net change in unrealized 56,725 (2,628,436) 2,507,530
---------- ---------- ----------
(3,715,649) 990,192 416,521
Proceeds from Litigation Settlement 233,074 -- --
---------- ---------- ----------
Total Trading Results (3,482,575) 990,192 416,521
Interest income (Morgan Stanley DW) 916,179 2,160,076 3,275,958
---------- ---------- ----------
Total (2,566,396) 3,150,268 3,692,479
---------- ---------- ----------
EXPENSES
Brokerage fees (Morgan Stanley DW) 2,532,371 2,597,121 2,558,008
Management fees 688,151 705,746 695,117
---------- ---------- ----------
Total 3,220,522 3,302,867 3,253,125
---------- ---------- ----------
NET INCOME (LOSS) (5,786,918) (152,599) 439,354
========== ========== ==========
NET INCOME (LOSS) ALLOCATION:
Limited Partners (5,720,328) (150,650) 433,786
General Partner (66,590) (1,949) 5,568
NET INCOME (LOSS) PER UNIT:
Limited Partners (1.64) (.05) .14
General Partner (1.64) (.05) .14

The accompanying notes are an integral part of these financial statements.

MORGAN STANLEY SPECTRUM SELECT L.P.

STATEMENTS OF FINANCIAL CONDITION

DECEMBER 31,
------------------------
2002 2001
----------- -----------
$ $

ASSETS
Equity in futures interests trading accounts:
Cash 274,780,334 235,183,061

Net unrealized gain on open contracts
(MS&Co.) 20,865,525 7,164,265
Net unrealized loss on open contracts (MSIL) (2,967,507) (1,767,529)
----------- -----------
Total net unrealized gain on open contracts 17,898,018 5,396,736
Net option premiums -- 167,063
----------- -----------
Total Trading Equity 292,678,352 240,746,860
Subscriptions receivable 6,690,744 4,991,166
Interest receivable (Morgan Stanley DW) 235,283 305,356
----------- -----------
Total Assets 299,604,379 246,043,382
=========== ===========

LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
Redemptions payable 1,876,403 2,595,426
Accrued brokerage fees (Morgan Stanley DW) 1,662,321 1,440,360
Accrued management fees 687,856 596,011
----------- -----------
Total