Morgan Stanley Institutional Fund Trust N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-03980
Morgan Stanley Institutional Fund Trust
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York					10036
(Address of principal executive offices)					(Zip code)
Arthur Lev 522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant’s telephone number, including area code:				201-830-8894
Date of fiscal year end:	September 30, 2013
Date of reporting period:		March 28, 2013

Item 1 - Report to Shareholders

INVESTMENT MANAGEMENT

Morgan Stanley
Institutional Fund Trust

Global Strategist Portfolio

Semi-Annual
Report

March 28, 2013

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	26
Statement of Operations	28
Statements of Changes in Net Assets	29
Financial Highlights	31
Notes to Financial Statements	35
U.S. Privacy Policy	47
Trustee and Officer Information	53

This report is authorized for distribution only when preceded or accompanied by prospectuses of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or SAI, which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations, and describes in detail each of the Portfolio's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access portfolio information including performance, characteristics, and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im.

Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Portfolio in the future. There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that market values of securities owned by the Portfolio will decline and, therefore, the value of the Portfolio's shares may be less than what you paid for them. Accordingly, you can lose money investing in Portfolios. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Semi-Annual report, in which you will learn how your investment in Global Strategist Portfolio performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

Arthur Lev
President and Principal Executive Officer

April 2013

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Expense Example (unaudited)

Global Strategist Portfolio

As a shareholder of the Portfolio, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, including advisory fees, administration fees, distribution and shareholder services fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 28, 2013 and held for the entire six-month period.

Actual Expenses

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

Please note that "Actual Expenses Paid During Period" are grossed up to reflect Portfolio expenses prior to the effect of Expense Offset (See Note F in the Notes to Financial Statements). Therefore, the annualized net expense ratios may differ from the ratio of expenses to average net assets shown in the Financial Highlights.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/12		Actual Ending Account Value 3/28/13		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Strategist Portfolio Class I	$	1,000.00	$	1,048.00	$	1,020.89	$	3.72	$	3.67		0.74	%
Global Strategist Portfolio Class P		1,000.00		1,046.20		1,019.67		4.97		4.90		0.99
Global Strategist Portfolio Class H		1,000.00		1,046.20		1,019.67		4.97		4.90		0.99
Global Strategist Portfolio Class L		1,000.00		1,043.70		1,017.21		7.47		7.37		1.49

*  Expenses are calculated using each Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 179/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (36.7%)
Agency Adjustable Rate Mortgage (0.0%)
United States (0.0%)
Federal National Mortgage Association,
Conventional Pool
2.34%, 5/1/35	$	50	$	54
Agency Fixed Rate Mortgages (3.3%)
United States (3.3%)
Federal Home Loan Mortgage Corporation,
April TBA:
3.50%, 4/1/43 (a)		325		342
Gold Pools:
3.50%, 8/1/42		316		334
4.50%, 6/1/39		304		326
6.00%, 11/1/37		321		351
6.50%, 5/1/32 - 9/1/32		273		310
7.50%, 5/1/35		14		17
Federal National Mortgage Association,
April TBA:
2.50%, 4/1/28 (a)		150		156
3.50%, 4/1/43 (a)		1,482		1,565
Conventional Pools:
3.50%, 12/1/42		1,416		1,499
4.00%, 1/1/42		1,911		2,040
5.00%, 1/1/41 - 3/1/41		2,237		2,479
5.50%, 5/1/37 - 8/1/38		1,070		1,181
6.00%, 1/1/38		45		49
6.50%, 12/1/29		50		58
7.00%, 12/1/17 - 2/1/31		641		761
7.50%, 8/1/37		26		32
Government National Mortgage Association,
April TBA:
4.50%, 4/15/43 (a)		1,088		1,190
Various Pools:
3.50%, 11/20/42		183		196
4.00%, 8/20/41 - 11/20/42		1,350		1,463
4.50%, 8/15/39		287		316
5.50%, 8/15/39		250		275
				14,940
Asset-Backed Securities (0.3%)
United States (0.3%)
CNH Equipment Trust,
1.20%, 5/16/16		369		371
CVS Pass-Through Trust,
6.04%, 12/10/28		392		461
Ford Credit Floorplan Master Owner Trust,
1.90%, 2/15/17 (b)(c)		525		540
Santander Drive Auto Receivables Trust,
3.06%, 11/15/17		50		51
U-Haul S Fleet LLC,
4.90%, 10/25/23 (b)		70		75
				1,498

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligations — Agency Collateral Series (0.6%)
United States (0.6%)
Federal Home Loan Mortgage Corporation,
2.36%, 7/25/22	$	792	$	797
2.40%, 6/25/22		1,625		1,644
2.79%, 1/25/22		75		78
2.97%, 10/25/21		90		96
IO
0.68%, 1/25/21 (c)		687		27
IO PAC REMIC
6.27%, 6/15/40 (c)		402		77
IO REMIC
5.85%, 4/15/39 (c)		202		46
Federal National Mortgage Association,
IO REMIC
5.00%, 8/25/37		32		1
6.40%, 9/25/38 (c)		176		41
Government National Mortgage Association,
IO
6.40%, 4/16/41 (c)		254		58
				2,865
Commercial Mortgage-Backed Securities (0.9%)
United States (0.9%)
BAMLL Commercial Mortgage Securities Trust,
2.96%, 12/10/30 (b)		175		178
COMM Mortgage Trust,
3.28%, 1/10/46		305		312
Commercial Mortgage Pass-Through Certificates,
2.82%, 11/15/45		376		381
GS Mortgage Securities Corp. II,
3.28%, 2/10/46		208		213
JP Morgan Chase Commercial Mortgage Securities Trust,
4.17%, 8/15/46		770		866
4.39%, 7/15/46 (b)		100		114
Queens Center Mortgage Trust,
3.28%, 1/11/37 (b)		520		525
UBS-Barclays Commercial Mortgage Trust,
3.53%, 5/10/63		255		271
VNO Mortgage Trust,
3.00%, 11/15/30 (b)		361		366
Wells Fargo Commercial Mortgage Trust,
2.92%, 10/15/45		449		458
WF-RBS Commercial Mortgage Trust,
3.31%, 3/15/45		290		298
				3,982
Corporate Bonds (7.7%)
Australia (0.5%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	400		601
Macquarie Bank Ltd.,
3.30%, 7/17/14 (b)	$	557		578
6.63%, 4/7/21 (b)		270		302

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Corporate Bonds (cont'd)
Macquarie Group Ltd.,
6.00%, 1/14/20 (b)	$	260	$	286
Wesfarmers Ltd.,
2.98%, 5/18/16 (b)		245		258
Woolworths Ltd.,
4.00%, 9/22/20 (b)		195		212
				2,237
Belgium (0.0%)
Anheuser-Busch InBev Worldwide, Inc.,
5.38%, 11/15/14		45		48
Brazil (0.1%)
Petrobras International Finance Co.,
5.75%, 1/20/20		330		365
Vale Overseas Ltd.,
6.88%, 11/10/39		50		57
				422
Canada (0.2%)
Brookfield Asset Management, Inc.,
5.80%, 4/25/17		380		429
Goldcorp, Inc.,
3.70%, 3/15/23		270		272
				701
China (0.0%)
Sinopec Group Overseas Development 2012 Ltd.,
2.75%, 5/17/17 (b)(d)		217		227
France (0.6%)
Banque Federative du Credit Mutuel SA,
3.00%, 10/29/15	EUR	400		540
BNP Paribas SA,
5.00%, 1/15/21	$	295		333
Credit Agricole SA,
3.90%, 4/19/21	EUR	300		384
5.88%, 6/11/19		400		576
Societe Generale SA,
5.20%, 4/15/21 (b)	$	200		224
Veolia Environnement SA,
6.75%, 4/24/19	EUR	400		656
				2,713
Germany (0.1%)
Deutsche Bank AG,
5.00%, 6/24/20		400		566
Ireland (0.1%)
CRH America, Inc.,
6.00%, 9/30/16	$	415		473
Israel (0.1%)
Teva Pharmaceutical Finance IV BV,
3.65%, 11/10/21		420		448
Italy (0.9%)
Banca Monte dei Paschi di Siena SpA,
4.88%, 9/15/16	EUR	350		465

	Face Amount (000)		Value (000)
Enel Finance International N.V.,
5.13%, 10/7/19 (b)	$	650	$	691
Finmeccanica Finance SA,
8.13%, 12/3/13	EUR	550		733
Intesa Sanpaolo SpA,
4.13%, 4/14/20		400		507
Telecom Italia Finance SA,
7.75%, 1/24/33		430		630
UniCredit SpA,
4.25%, 7/29/17		350		487
4.38%, 2/10/14		550		722
				4,235
Korea, Republic of (0.0%)
SK Telecom Co., Ltd.,
2.13%, 5/1/18 (b)	$	200		201
Netherlands (0.3%)
ABN Amro Bank N.V.,
3.63%, 10/6/17	EUR	200		282
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA,
3.75%, 11/9/20		300		402
ING Bank N.V.,
3.90%, 3/19/14 (b)	$	—		—
5.25%, 6/5/18	EUR	300		464
ING US, Inc.,
2.90%, 2/15/18 (b)	$	200		203
				1,351
Spain (0.3%)
Banco Bilbao Vizcaya Argentaria SA,
3.63%, 1/18/17	EUR	350		465
Gas Natural Capital Markets SA,
4.13%, 1/26/18		400		548
Iberdrola Finance Ireland Ltd.,
5.00%, 9/11/19 (b)	$	200		213
Santander Holdings USA, Inc.,
4.63%, 4/19/16		135		145
				1,371
Sweden (0.2%)
Nordea Bank AB,
4.00%, 3/29/21	EUR	480		663
Skandinaviska Enskilda Banken AB,
1.75%, 3/19/18 (b)	$	200		200
Swedbank AB,
1.75%, 3/12/18 (b)		270		270
				1,133
Switzerland (0.1%)
Credit Suisse,
5.40%, 1/14/20		110		124
6.00%, 2/15/18		90		104
				228

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Thailand (0.1%)
PTT PCL,
3.38%, 10/25/22 (b)	$	230	$	229
United Kingdom (1.5%)
Abbey National Treasury Services PLC,
3.63%, 10/14/16	EUR	725		1,019
MTN
3.88%, 11/10/14 (b)	$	365		379
Bank of Scotland PLC,
4.63%, 6/8/17	EUR	350		518
Barclays Bank PLC,
6.00%, 1/23/18 - 1/14/21		450		641
BAT International Finance PLC,
9.50%, 11/15/18 (b)	$	155		215
Diageo Capital PLC,
1.50%, 5/11/17		215		218
Experian Finance PLC,
2.38%, 6/15/17 (b)		400		408
GlaxoSmithKline Capital, Inc.,
4.20%, 3/18/43		25		25
2.80%, 3/18/23		225		227
Heathrow Funding Ltd.,
4.60%, 2/15/18	EUR	300		436
HSBC Holdings PLC,
4.00%, 3/30/22	$	45		48
6.00%, 6/10/19	EUR	450		690
Imperial Tobacco Finance PLC,
8.38%, 2/17/16		400		615
Lloyds TSB Bank PLC,
6.50%, 3/24/20		250		355
Nationwide Building Society,
6.25%, 2/25/20 (b)	$	300		352
Royal Bank of Scotland PLC (The),
5.50%, 3/23/20	EUR	150		228
Standard Chartered PLC,
3.85%, 4/27/15 (b)	$	260		275
				6,649
United States (2.6%)
AbbVie, Inc.,
2.90%, 11/6/22 (b)		275		276
Agilent Technologies, Inc.,
5.50%, 9/14/15		155		171
Altria Group, Inc.,
2.85%, 8/9/22		25		25
Amgen, Inc.,
3.88%, 11/15/21		175		191
AT&T, Inc.,
6.30%, 1/15/38		150		181
BA Covered Bond Issuer,
4.25%, 4/5/17	EUR	350		500
Bank of America Corp.,
5.63%, 7/1/20	$	15		18

	Face Amount (000)		Value (000)
BNP Paribas/BNP Paribas US Medium-Term Note Program LLC,
5.13%, 1/15/15 (b)	$	180	$	189
Boston Properties LP,
3.85%, 2/1/23		25		26
Boston Scientific Corp.,
6.00%, 1/15/20		200		234
Capital One Bank, USA NA,
3.38%, 2/15/23		546		542
Cardinal Health, Inc.,
3.20%, 3/15/23		275		274
Cigna Corp.,
5.38%, 2/15/42		175		199
Citigroup, Inc., (See Note G),
6.13%, 5/15/18		107		128
8.50%, 5/22/19		274		365
CNA Financial Corp.,
5.75%, 8/15/21		45		53
Comcast Corp.,
4.65%, 7/15/42		150		153
6.40%, 5/15/38		50		63
ConAgra Foods, Inc.,
3.20%, 1/25/23		85		85
4.65%, 1/25/43		125		125
DirecTV Holdings LLC/DirecTV Financing Co., Inc.,
3.80%, 3/15/22		75		77
Discover Bank,
2.00%, 2/21/18		345		346
Discovery Communications LLC,
3.25%, 4/1/23		75		76
Enterprise Products Operating LLC,
3.35%, 3/15/23		275		281
Ford Motor Credit Co., LLC,
4.21%, 4/15/16		630		671
Freeport-McMoRan Copper & Gold, Inc.,
2.38%, 3/15/18 (b)		155		156
3.88%, 3/15/23 (b)		125		126
General Electric Capital Corp.,
5.30%, 2/11/21		275		316
Genworth Financial, Inc.,
7.20%, 2/15/21		305		356
Georgia-Pacific LLC,
8.88%, 5/15/31		275		412
Goldman Sachs Group, Inc. (The),
2.38%, 1/22/18		650		660
Hartford Financial Services Group, Inc.,
5.50%, 3/30/20		25		29
Hewlett-Packard Co.,
4.65%, 12/9/21		35		36
Home Depot, Inc.,
5.88%, 12/16/36		200		249
JPMorgan Chase & Co.,
3.25%, 9/23/22		215		215

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
L-3 Communications Corp.,
4.75%, 7/15/20	$	255	$	283
Life Technologies Corp.,
6.00%, 3/1/20		40		45
Marathon Petroleum Corp.,
5.13%, 3/1/21		275		321
Merrill Lynch & Co., Inc.,
6.88%, 4/25/18		465		562
Nationwide Financial Services, Inc.,
5.38%, 3/25/21 (b)		25		28
NBC Universal Media LLC,
4.38%, 4/1/21		175		197
Omnicom Group, Inc.,
3.63%, 5/1/22		310		318
Pacific LifeCorp,
6.00%, 2/10/20 (b)		25		29
Phillips 66,
4.30%, 4/1/22		25		28
Plains All American Pipeline LP/PAA Finance Corp.,
6.70%, 5/15/36		190		240
8.75%, 5/1/19		220		298
Prudential Financial, Inc.,
6.63%, 12/1/37		150		189
Qwest Corp.,
6.88%, 9/15/33		125		125
SABMiller Holdings, Inc.,
3.75%, 1/15/22 (b)		265		284
Santander Holdings USA, Inc.,
3.00%, 9/24/15		95		97
SLM Corp.,
6.25%, 1/25/16		435		477
Sonoco Products Co.,
5.75%, 11/1/40		40		46
Time Warner Cable, Inc.,
6.75%, 6/15/39		105		124
Wells Fargo & Co.,
3.45%, 2/13/23		395		398
				11,893
				35,125
Mortgages — Other (0.5%)
United Kingdom (0.2%)
Holmes Master Issuer PLC,
2.06%, 10/15/54 (b)(c)	GBP	616		973
United States (0.3%)
Banc of America Alternative Loan Trust,
5.86%, 10/25/36	$	60		48
5.91%, 10/25/36 (c)		115		92
6.00%, 4/25/36		51		53
Chaseflex Trust,
6.00%, 2/25/37		58		46

	Face Amount (000)		Value (000)
Extended Stay America Trust,
2.96%, 12/5/31 (b)	$	325	$	331
First Horizon Alternative Mortgage Securities Trust,
6.25%, 8/25/36		34		30
GS Mortgage Securities Corp. II,
1.05%, 11/8/29 (b)(c)		395		397
GSR Mortgage Loan Trust,
5.75%, 1/25/37		67		68
Lehman Mortgage Trust,
5.50%, 11/25/35		26		26
6.50%, 9/25/37		73		63
RALI Trust,
0.70%, 3/25/35 (c)		52		35
				1,189
				2,162
Municipal Bonds (0.2%)
United States (0.2%)
Illinois State Toll Highway Authority,
6.18%, 1/1/34		145		185
Municipal Electric Authority of Georgia,
6.64%, 4/1/57		160		190
6.66%, 4/1/57		295		348
				723
Sovereign (20.9%)
Australia (0.7%)
Australia Government Bond,
5.25%, 3/15/19	AUD	1,075		1,248
Treasury Corp. of Victoria,
5.75%, 11/15/16		1,600		1,800
				3,048
Brazil (0.3%)
Banco Nacional de Desenvolvimento, Economico e Social,
5.50%, 7/12/20	$	1,000		1,132
Brazilian Government International Bond,
4.88%, 1/22/21		90		105
				1,237
Canada (0.8%)
Canada Government International Bond,
3.50%, 1/13/20	EUR	300		452
Canadian Government Bond,
4.25%, 6/1/18	CAD	2,000		2,255
Province of Ontario Canada,
4.00%, 12/3/19	EUR	600		902
				3,609
Denmark (0.2%)
Denmark Government Bond,
4.00%, 11/15/19	DKK	3,500		732
France (0.2%)
France Government Bond OAT,
3.25%, 10/25/21	EUR	175		251
4.00%, 4/25/18	EUR	450		667
				918

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Germany (0.7%)
Bundesrepublik Deutschland,
1.75%, 7/4/22	$	495	$	667
4.25%, 7/4/39		850		1,542
4.75%, 7/4/34		450		837
				3,046
Ireland (0.1%)
Ireland Government Bond,
3.90%, 3/20/23		400		502
Italy (0.7%)
Italy Buoni Poliennali Del Tesoro,
3.00%, 6/15/15		400		520
4.00%, 9/1/20		145		186
4.50%, 2/1/18		1,600		2,137
5.00%, 3/1/22		270		360
5.50%, 11/1/22		150		205
				3,408
Japan (1.3%)
Japan Finance Organization for Municipalities,
1.90%, 6/22/18	JPY	70,000		814
Japan Government Ten Year Bond,
1.10%, 6/20/21		35,000		393
1.90%, 6/20/16		105,000		1,180
Japan Government Thirty Year Bond,
1.70%, 6/20/33		340,000		3,781
				6,168
Kazakhstan (0.3%)
KazMunaiGaz Finance Sub BV,
6.38%, 4/9/21	$	1,000		1,169
Korea, Republic of (0.3%)
Korea Development Bank (The),
3.88%, 5/4/17		200		217
4.38%, 8/10/15		200		215
Korea Finance Corp.,
4.63%, 11/16/21		630		710
Republic of Korea,
7.13%, 4/16/19		150		194
				1,336
Mexico (0.7%)
Mexican Bonos,
7.50%, 6/3/27	MXN	4,100		403
10.00%, 12/5/24		13,500		1,574
Petroleos Mexicanos,
4.88%, 1/24/22	$	1,070		1,188
				3,165
Netherlands (0.3%)
Netherlands Government Bond,
4.00%, 7/15/19 (b)	EUR	1,000		1,516

	Face Amount (000)		Value (000)
New Zealand (0.1%)
New Zealand Government Bond,
6.00%, 5/15/21	NZD	685	$	682
Norway (0.1%)
Norway Government Bond,
4.25%, 5/19/17	NOK	3,500		669
Poland (0.8%)
Poland Government Bond,
5.25%, 10/25/17	PLN	6,000		1,989
5.75%, 10/25/21		2,190		768
Poland Government International Bond,
5.00%, 3/23/22	$	870		996
				3,753
Qatar (0.2%)
Qatar Government International Bond,
4.00%, 1/20/15 (b)		900		951
Russia (0.2%)
Russian Foreign Bond - Eurobond,
3.25%, 4/4/17 (b)		800		839
South Africa (0.4%)
South Africa Government Bond,
7.25%, 1/15/20	ZAR	15,400		1,751
Spain (10.8%)
Spain Government Bond,
3.00%, 4/30/15	EUR	11,500		14,912
3.75%, 10/31/15		24,810		32,486
5.85%, 1/31/22		680		928
Spain Government International Bond,
4.00%, 3/6/18 (b)	$	700		694
				49,020
Supernational (0.7%)
European Investment Bank,
2.15%, 1/18/27	JPY	157,000		1,878
European Union,
2.75%, 4/4/22	EUR	300		419
3.25%, 4/4/18		525		754
				3,051
Sweden (0.1%)
Sweden Government Bond,
4.25%, 3/12/19	SEK	4,000		714
United Kingdom (0.9%)
United Kingdom Gilt,
3.75%, 9/7/21	GBP	500		894
4.25%, 6/7/32 - 9/7/39		1,700		3,153
				4,047
				95,331
U.S. Treasury Securities (2.3%)
United States (2.3%)
U.S. Treasury Bond,
3.50%, 2/15/39	$	2,050		2,230

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
U.S. Treasury Securities (cont'd)
U.S. Treasury Notes,
0.88%, 4/30/17	$	4,790	$	4,848
1.50%, 6/30/16		3,300		3,416
				10,494
Total Fixed Income Securities (Cost $165,688)				167,174
	Shares
Common Stocks (55.7%)
Australia (2.0%)
AGL Energy Ltd.		4,454		74
Alumina Ltd. (e)		30,018		35
Amcor Ltd.		11,529		111
AMP Ltd.		32,469		176
Arrium Ltd.		14,100		13
Asciano Ltd.		8,154		47
ASX Ltd.		1,608		61
Australia & New Zealand Banking Group Ltd.		26,949		800
BHP Billiton Ltd.		29,823		1,017
BlueScope Steel Ltd. (e)		3,657		19
Brambles Ltd.		13,643		120
Coca-Cola Amatil Ltd.		4,831		73
Cochlear Ltd.		521		37
Commonwealth Bank of Australia		12,740		902
Computershare Ltd.		4,383		47
Crown Ltd.		6,002		77
CSL Ltd.		4,997		308
Dexus Property Group REIT		44,008		48
DuluxGroup Ltd.		5,359		25
Echo Entertainment Group Ltd.		7,295		26
Fairfax Media Ltd.		32,187		21
Fortescue Metals Group Ltd.		11,321		46
Goodman Group REIT		10,866		54
GPT Group REIT		18,147		70
Incitec Pivot Ltd.		14,023		45
Insurance Australia Group Ltd.		20,683		123
Leighton Holdings Ltd.		1,366		29
Lend Lease Group REIT		6,124		65
Macquarie Group Ltd.		2,989		116
Mirvac Group REIT		26,057		44
National Australia Bank Ltd.		22,472		722
Newcrest Mining Ltd.		4,397		92
Orica Ltd.		3,712		94
Origin Energy Ltd.		9,814		136
QBE Insurance Group Ltd.		13,641		192
Rio Tinto Ltd.		3,911		233
Santos Ltd.		8,621		112
Shopping Centres Australasia Property Group REIT (e)		2,263		4
Sonic Healthcare Ltd.		3,301		48
Stockland REIT		23,696		90
Suncorp Group Ltd.		11,616		143
TABCORP Holdings Ltd.		6,767		23
Telstra Corp., Ltd.		43,614		205

	Shares		Value (000)
Toll Holdings Ltd.		6,284	$	39
Transurban Group		12,851		85
Treasury Wine Estates Ltd.		7,726		46
Wesfarmers Ltd.		9,181		384
Wesfarmers Ltd. (PPS)		1,609		68
Westfield Group REIT		19,414		219
Westfield Retail Trust REIT		20,351		64
Westpac Banking Corp.		24,931		798
Woodside Petroleum Ltd.		5,443		203
Woolworths Ltd.		11,319		398
WorleyParsons Ltd.		1,655		43
				9,070
Austria (0.1%)
Immofinanz AG (e)		3,664		14
OMV AG		7,935		337
Raiffeisen Bank International AG		2,787		95
Voestalpine AG		4,494		138
				584
Belgium (0.4%)
Ageas		3,005		102
Anheuser-Busch InBev N.V.		6,748		668
Colruyt SA		905		44
Delhaize Group SA		14,368		784
Groupe Bruxelles Lambert SA		1,457		111
KBC Groep N.V.		3,024		104
Umicore SA		1,567		74
				1,887
Canada (2.8%)
Agnico-Eagle Mines Ltd.		2,100		86
Agrium, Inc.		2,000		195
Bank of Montreal		6,500		409
Bank of Nova Scotia		11,300		658
Barrick Gold Corp.		12,000		352
BCE, Inc.		6,700		313
Bombardier, Inc.		16,300		65
Brookfield Asset Management, Inc., Class A		7,000		256
Brookfield Office Properties, Inc.		4,900		84
Cameco Corp.		5,200		108
Canadian Imperial Bank of Commerce		4,800		376
Canadian National Railway Co.		5,500		553
Canadian Natural Resources Ltd.		13,100		420
Canadian Oil Sands Ltd.		3,500		72
Canadian Pacific Railway Ltd.		2,100		274
Cenovus Energy, Inc.		9,100		282
Crescent Point Energy Corp.		2,700		102
Eldorado Gold Corp.		6,900		66
Enbridge, Inc.		10,500		489
Encana Corp.		9,600		187
Fairfax Financial Holdings Ltd.		300		117
First Quantum Minerals Ltd.		6,500		124
Fortis, Inc.		1,600		54
Goldcorp, Inc.		9,000		303

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Canada (cont'd)
Great-West Lifeco, Inc.		5,200	$	139
Husky Energy, Inc.		3,300		95
IGM Financial, Inc.		2,300		104
Imperial Oil Ltd.		3,200		131
Intact Financial Corp.		1,800		110
Kinross Gold Corp.		12,700		100
Magna International, Inc.		3,200		188
Manulife Financial Corp.		23,100		340
National Bank of Canada		1,900		140
Pembina Pipeline Corp.		500		16
Penn West Petroleum Ltd.		4,800		52
PetroBakken Energy Ltd.		1,436		12
Petrobank Energy & Resources Ltd. (e)		1,300		1
Petrominerales Ltd.		859		5
Potash Corp. of Saskatchewan, Inc.		10,400		408
Power Corp. of Canada		5,200		140
Power Financial Corp.		4,300		127
Research In Motion Ltd. (e)		5,300		79
Rogers Communications, Inc., Class B		4,900		250
Royal Bank of Canada		15,700		946
Shaw Communications, Inc., Class B		4,700		116
Shoppers Drug Mart Corp.		3,300		141
Silver Wheaton Corp.		4,400		138
SNC-Lavalin Group, Inc.		2,300		96
Sun Life Financial, Inc.		7,500		205
Suncor Energy, Inc.		18,000		539
Talisman Energy, Inc.		13,000		159
Teck Resources Ltd., Class B		6,000		169
Thomson Reuters Corp.		4,700		152
Tim Hortons, Inc.		3,900		212
Toronto-Dominion Bank (The)		10,300		858
TransAlta Corp.		2,900		42
TransCanada Corp.		8,000		382
Valeant Pharmaceuticals International, Inc. (e)		300		22
Yamana Gold, Inc.		9,200		142
				12,701
Chile (0.0%)
Antofagasta PLC		2,716		41
China (0.1%)
AIA Group Ltd. (d)		67,200		294
Denmark (0.2%)
AP Moeller - Maersk A/S		6		45
AP Moeller - Maersk A/S Series B		11		86
Carlsberg A/S		98		10
Coloplast A/S		120		6
Danske Bank A/S (e)		6,044		108
DSV A/S		3,452		83
Novo Nordisk A/S Series B		3,895		633
Novozymes A/S Series B		2,771		94
TDC A/S		537		4
Vestas Wind Systems A/S (e)		3,486		28
				1,097

	Shares		Value (000)
Finland (0.4%)
Fortum Oyj		6,094	$	123
Kone Oyj, Class B		2,537		199
Neste Oil Oyj		12,689		179
Nokia Oyj		34,796		113
Nokian Renkaat Oyj		1,401		62
Sampo Oyj, Class A		3,582		138
Stora Enso Oyj, Class R		56,550		365
UPM-Kymmene Oyj		37,961		424
				1,603
France (3.3%)
Accor SA		1,422		49
Aeroports de Paris (ADP)		480		41
Air Liquide SA		2,791		339
Alcatel-Lucent (e)		32,733		44
Alstom SA		4,118		168
AXA SA		49,803		856
BNP Paribas SA		9,982		512
Bouygues SA		23,206		629
Bureau Veritas SA		581		72
Cap Gemini SA		1,918		87
Carrefour SA		5,540		152
Christian Dior SA		710		118
Cie de St-Gobain		17,445		647
Cie Generale d'Optique Essilor International SA		1,528		170
Cie Generale de Geophysique-Veritas (e)		2,024		46
Cie Generale des Etablissements Michelin Series B		1,855		155
CNP Assurances		5,829		80
Credit Agricole SA (e)		8,087		67
Danone SA		6,671		464
Edenred		1,823		60
Electricite de France SA		25,293		485
Eutelsat Communications SA		799		28
France Telecom SA		74,737		756
GDF Suez		44,078		849
Groupe Eurotunnel SA		7,563		60
ICADE REIT		86		7
JCDecaux SA		651		18
L'Oreal SA		2,407		382
Lafarge SA		4,474		297
LVMH Moet Hennessy Louis Vuitton SA		2,297		394
Pernod-Ricard SA		1,855		231
Peugeot SA (e)		70,959		514
PPR		1,357		298
Publicis Groupe SA		1,047		70
Renault SA		10,703		671
Sanofi		11,589		1,178
SES SA		2,416		76
Societe Generale SA (e)		23,393		769
Societe Television Francaise 1		1,176		13
Sodexo		1,223		114
Suez Environnement Co.		21,138		270

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
France (cont'd)
Technip SA		933	$	96
Thales SA		1,262		53
Total SA		20,957		1,003
Unibail-Rodamco SE REIT		1,616		376
Vallourec SA		2,417		116
Veolia Environnement SA		52,103		657
Vinci SA		4,786		216
Vivendi SA		16,236		335
				15,088
Germany (4.2%)
Adidas AG		3,095		321
Allianz SE (Registered)		7,228		982
Axel Springer AG		300		13
BASF SE		18,301		1,603
Bayer AG (Registered)		12,027		1,241
Bayerische Motoren Werke AG (Preference)		5,466		461
Beiersdorf AG		1,516		140
Commerzbank AG (e)		455,253		668
Continental AG		949		113
Daimler AG (Registered)		11,022		600
Deutsche Bank AG (Registered)		16,392		639
Deutsche Boerse AG		2,144		130
Deutsche Lufthansa AG (Registered)		33,717		658
Deutsche Post AG (Registered)		8,920		206
Deutsche Telekom AG (Registered)		46,294		489
E.ON SE		64,262		1,122
Esprit Holdings Ltd. (d)		12,482		15
Fraport AG Frankfurt Airport Services Worldwide		478		27
Fresenius Medical Care AG & Co., KGaA		2,773		187
Fresenius SE & Co., KGaA		1,864		230
Henkel AG & Co., KGaA		2,529		200
Henkel AG & Co., KGaA (Preference)		3,044		293
Hochtief AG (e)		3,623		236
Infineon Technologies AG		19,041		150
K&S AG (Registered)		2,326		108
Kabel Deutschland Holding AG		658		61
Lanxess AG		1,473		104
Linde AG		2,420		450
Merck KGaA		934		141
Metro AG		22,107		629
Muenchener Rueckversicherungs AG (Registered)		6,180		1,156
Porsche Automobil Holding SE (Preference)		1,388		101
ProSiebenSat.1 Media AG		953		34
QIAGEN N.V. (e)		4,477		93
RWE AG		22,139		825
RWE AG (Preference)		1,159		42
Salzgitter AG		5,576		224
SAP AG		16,417		1,315
Siemens AG (Registered)		13,623		1,467
Suedzucker AG		731		31
ThyssenKrupp AG (e)		8,725		177

	Shares		Value (000)
TUI AG (e)		2,676	$	29
Volkswagen AG		2,638		496
Volkswagen AG (Preference)		5,490		1,091
				19,298
Greece (0.0%)
National Bank of Greece SA (e)		14,355		12
Hong Kong (0.5%)
Bank of East Asia Ltd.		16,214		64
BOC Hong Kong Holdings Ltd.		36,500		122
Cheung Kong Holdings Ltd.		14,000		207
CLP Holdings Ltd.		19,000		166
Hang Lung Group Ltd.		8,000		45
Hang Lung Properties Ltd.		22,000		82
Hang Seng Bank Ltd.		11,500		184
Henderson Land Development Co., Ltd.		11,493		79
Hong Kong & China Gas Co., Ltd.		43,560		127
Hong Kong Exchanges and Clearing Ltd.		10,314		176
Hutchison Whampoa Ltd.		21,000		219
Kerry Properties Ltd.		7,000		31
Link REIT (The)		20,619		112
MTR Corp., Ltd.		15,242		60
New World Development Co., Ltd.		28,273		48
Power Assets Holdings Ltd.		14,500		137
Sands China Ltd.		28,400		147
Sino Land Co., Ltd.		21,238		36
Sun Hung Kai Properties Ltd.		13,723		185
Swire Pacific Ltd., Class A		6,500		83
Swire Properties Ltd.		4,550		16
Wharf Holdings Ltd.		13,200		118
Wheelock & Co., Ltd.		10,000		53
				2,497
Italy (2.0%)
Assicurazioni Generali SpA		47,956		746
Atlantia SpA		3,202		51
Banco Popolare SC (e)		450,944		568
Enel Green Power SpA		11,984		22
Enel SpA		235,453		768
Eni SpA		22,322		502
Exor SpA		6,223		174
Fiat Industrial SpA		6,659		75
Fiat SpA (e)		112,620		599
Finmeccanica SpA (e)		1,205		6
Intesa Sanpaolo SpA		1,365,616		1,980
Luxottica Group SpA		1,123		56
Prysmian SpA		1,210		25
Saipem SpA		2,154		66
Snam SpA		20,778		95
Telecom Italia SpA		1,238,990		839
Terna Rete Elettrica Nazionale SpA		9,469		39
UniCredit SpA (e)		437,103		1,866
Unione di Banche Italiane SCPA		160,337		591
				9,068

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Japan (6.5%)
Advantest Corp.		2,300	$	32
Aeon Co., Ltd.		12,100		156
Aisin Seiki Co., Ltd.		4,000		146
Ajinomoto Co., Inc.		16,000		235
Asahi Glass Co., Ltd.		17,000		118
Asahi Group Holdings Ltd.		5,400		129
Asahi Kasei Corp.		28,000		188
Astellas Pharma, Inc.		5,500		296
Bank of Yokohama Ltd. (The)		22,000		127
Bridgestone Corp.		9,500		318
Canon, Inc.		15,000		550
Central Japan Railway Co.		2,400		253
Chiba Bank Ltd. (The)		14,000		101
Chubu Electric Power Co., Inc.		8,300		101
Chugai Pharmaceutical Co., Ltd.		4,900		109
Chugoku Electric Power Co., Inc. (The)		3,700		48
Dai Nippon Printing Co., Ltd.		11,000		105
Dai-ichi Life Insurance Co., Ltd. (The)		14		19
Daiichi Sankyo Co., Ltd.		9,800		188
Daikin Industries Ltd.		4,000		157
Daito Trust Construction Co., Ltd.		1,500		128
Daiwa House Industry Co., Ltd.		12,000		234
Daiwa Securities Group, Inc.		31,000		218
Denso Corp.		8,800		372
Dentsu, Inc.		3,200		95
East Japan Railway Co.		5,200		427
Eisai Co., Ltd.		4,100		183
Electric Power Development Co., Ltd.		2,700		69
FANUC Corp.		2,600		397
Fast Retailing Co., Ltd.		700		223
FUJIFILM Holdings Corp.		8,200		162
Fujitsu Ltd.		28,000		116
Hankyu Hanshin Holdings, Inc.		34,000		205
Hitachi Ltd.		68,000		394
Hokkaido Electric Power Co., Inc. (e)		4,200		43
Hokuriku Electric Power Co.		3,900		48
Honda Motor Co., Ltd.		1,600		61
Honda Motor Co., Ltd. ADR		19,795		757
Hoya Corp.		6,000		113
Ibiden Co., Ltd.		2,000		31
Inpex Corp.		15		80
Isetan Mitsukoshi Holdings Ltd.		5,400		78
Isuzu Motors Ltd.		2,000		12
ITOCHU Corp.		22,400		273
Japan Real Estate Investment Corp. REIT		8		111
Japan Steel Works Ltd. (The)		5,000		26
Japan Tobacco, Inc.		16,600		530
JFE Holdings, Inc.		6,600		127
JGC Corp.		3,000		77
JSR Corp.		3,000		61
JX Holdings, Inc.		4,100		23
Kansai Electric Power Co., Inc. (The) (e)		7,000		66

	Shares		Value (000)
Kao Corp.		8,500	$	274
Kawasaki Heavy Industries Ltd.		38,000		119
KDDI Corp.		10,800		450
Keikyu Corp.		10,000		104
Keio Corp.		10,000		86
Keyence Corp.		700		214
Kintetsu Corp.		42,000		195
Kirin Holdings Co., Ltd.		14,000		225
Kobe Steel Ltd. (e)		70,000		82
Komatsu Ltd.		14,100		334
Konica Minolta Holdings, Inc.		5,000		36
Kubota Corp.		19,000		274
Kuraray Co., Ltd.		5,000		70
Kyocera Corp.		2,300		210
Kyushu Electric Power Co., Inc. (e)		3,900		40
LIXIL Group Corp.		5,600		111
Makita Corp.		1,600		71
Marubeni Corp.		31,000		236
Mazda Motor Corp. (e)		24,000		70
Mitsubishi Chemical Holdings Corp.		22,500		107
Mitsubishi Corp.		18,500		346
Mitsubishi Electric Corp.		28,000		226
Mitsubishi Estate Co., Ltd.		17,000		479
Mitsubishi Heavy Industries Ltd.		54,000		311
Mitsubishi Motors Corp. (e)		93,000		97
Mitsui & Co., Ltd.		27,800		389
Mitsui Fudosan Co., Ltd.		13,000		369
Mitsui OSK Lines Ltd. (e)		18,000		59
Mizuho Financial Group, Inc.		208,700		446
MS&AD Insurance Group Holdings		5,800		128
Murata Manufacturing Co., Ltd.		3,200		241
NGK Insulators Ltd.		5,000		53
Nidec Corp.		1,600		96
Nikon Corp.		5,100		119
Nintendo Co., Ltd.		1,400		151
Nippon Building Fund, Inc. REIT		9		126
Nippon Electric Glass Co., Ltd.		6,000		30
Nippon Express Co., Ltd.		22,000		105
Nippon Steel Sumitomo Metal Corp.		116,000		293
Nippon Telegraph & Telephone Corp.		8,100		353
Nippon Yusen KK		34,000		87
Nissan Motor Co., Ltd.		34,500		332
Nitto Denko Corp.		2,500		150
NKSJ Holdings, Inc.		600		13
Nomura Holdings, Inc.		52,100		321
NSK Ltd.		10,000		76
NTT Data Corp.		30		99
NTT DoCoMo, Inc.		212		314
Odakyu Electric Railway Co., Ltd.		18,000		224
OJI Paper Co., Ltd.		13,000		49
Olympus Corp. (e)		3,500		83
Omron Corp.		2,800		70
Ono Pharmaceutical Co., Ltd.		1,500		93

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Japan (cont'd)
Oriental Land Co., Ltd.		100	$	16
ORIX Corp.		15,100		192
Osaka Gas Co., Ltd.		42,000		183
Otsuka Holdings Co., Ltd.		600		21
Panasonic Corp. (e)		26,900		201
Rakuten, Inc.		14,400		147
Resona Holdings, Inc.		10,500		55
Ricoh Co., Ltd.		11,000		119
Rohm Co., Ltd.		1,200		41
Secom Co., Ltd.		3,100		160
Sekisui House Ltd.		12,000		163
Seven & I Holdings Co., Ltd.		12,100		400
Sharp Corp. (e)		15,000		43
Shikoku Electric Power Co., Inc. (e)		5,500		78
Shin-Etsu Chemical Co., Ltd.		4,800		317
Shionogi & Co., Ltd.		6,400		129
Shiseido Co., Ltd.		6,500		91
Shizuoka Bank Ltd. (The)		14,000		157
SMC Corp.		900		174
Softbank Corp.		10,600		486
Sony Corp.		1,300		22
Sony Corp. ADR		13,035		227
Sumitomo Chemical Co., Ltd.		22,000		69
Sumitomo Corp.		16,900		212
Sumitomo Electric Industries Ltd.		24,000		293
Sumitomo Metal Mining Co., Ltd.		9,000		127
Sumitomo Mitsui Financial Group, Inc.		18,800		767
Sumitomo Mitsui Trust Holdings, Inc.		43,000		203
Sumitomo Realty & Development Co., Ltd.		8,000		310
Suzuki Motor Corp.		6,000		134
T&D Holdings, Inc.		8,400		100
Takeda Pharmaceutical Co., Ltd.		10,600		579
TDK Corp.		1,400		49
Terumo Corp.		3,300		141
Tobu Railway Co., Ltd.		33,000		189
Tohoku Electric Power Co., Inc. (e)		6,600		52
Tokio Marine Holdings, Inc.		7,000		201
Tokyo Electric Power Co., Inc. (e)		13,700		34
Tokyo Electron Ltd.		2,200		93
Tokyo Gas Co., Ltd.		38,000		205
Tokyu Corp.		18,000		133
Toppan Printing Co., Ltd.		11,000		79
Toray Industries, Inc.		28,000		189
Toshiba Corp.		61,000		308
Toyota Industries Corp.		3,600		132
Toyota Motor Corp.		39,300		2,014
Trend Micro, Inc.		1,800		50
Unicharm Corp.		2,600		148
West Japan Railway Co.		3,300		158
Yahoo! Japan Corp.		276		127
Yamada Denki Co., Ltd.		1,370		63
Yamato Holdings Co., Ltd.		9,500		172
				29,505

	Shares		Value (000)
Kazakhstan (0.0%)
Kazakhmys PLC		2,888	$	17
Netherlands (1.0%)
Aegon N.V.		96,193		578
Akzo Nobel N.V.		4,136		263
ArcelorMittal		12,177		157
ASML Holding N.V.		2,380		160
DE Master Blenders 1753 N.V. (e)		2,404		37
Fugro N.V. CVA		657		36
Heineken N.V.		3,516		265
ING Groep N.V. CVA (e)		121,203		860
Koninklijke Ahold N.V.		11,520		177
Koninklijke DSM N.V.		3,186		186
Koninklijke KPN N.V.		162,315		546
Koninklijke Philips Electronics N.V.		11,422		338
Koninklijke Vopak N.V.		1,006		61
PostNL N.V. (e)		4,654		9
Randstad Holding N.V.		1,207		49
TNT Express N.V.		4,151		31
Unilever N.V. CVA		14,384		589
				4,342
Norway (0.3%)
Aker Solutions ASA		1,833		34
DnB ASA		11,838		174
Kvaerner ASA		1,677		3
Norsk Hydro ASA		13,781		60
Orkla ASA		10,248		82
Renewable Energy Corp., ASA (e)		6,482		1
Seadrill Ltd.		328		12
Statoil ASA		13,168		318
Subsea 7 SA		3,127		73
Telenor ASA		16,272		356
Veripos, Inc. (e)		286		1
Yara International ASA		2,039		92
				1,206
Poland (0.0%)
Jeronimo Martins SGPS SA		3,072		60
Portugal (0.1%)
EDP - Energias de Portugal SA		190,051		585
Galp Energia SGPS SA		2,866		45
Portugal Telecom SGPS SA (Registered)		11,841		59
				689
South Africa (0.1%)
SABMiller PLC		10,797		568
Spain (1.7%)
Abertis Infraestructuras SA		12,358		208
Acciona SA		2,594		141
ACS Actividades de Construccion y Servicios SA		3,511		82
Amadeus IT Holding SA, Class A		5,400		146
Banco Bilbao Vizcaya Argentaria SA		132,359		1,148
Banco de Sabadell SA (e)		46,877		86
Banco Popular Espanol SA (e)		36,597		27

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Spain (cont'd)
Banco Santander SA		241,421	$	1,622
Bankia SA (e)		200,000		42
CaixaBank		26,517		90
Distribuidora Internacional de Alimentacion SA		18,498		128
Enagas SA		4,460		104
Ferrovial SA		6,878		109
Gas Natural SDG SA		5,948		105
Grifols SA (e)		2,531		94
Grifols SA, Class B (e)		126		4
Iberdrola SA		103,127		480
Inditex SA		5,526		732
International Consolidated Airlines Group SA (e)		39,336		151
Red Electrica Corp., SA		3,217		162
Repsol SA		44,336		901
Telefonica SA (e)		71,322		959
				7,521
Sweden (0.9%)
Assa Abloy AB, Class B		3,279		134
Atlas Copco AB, Class A		9,926		282
Atlas Copco AB, Class B		7,174		181
Electrolux AB, Class B		2,950		75
Hennes & Mauritz AB, Class B		10,362		371
Husqvarna AB, Class B		5,449		32
Investor AB, Class B		11,790		341
Millicom International Cellular SA SDR		1,326		106
Modern Times Group AB, Class B		443		18
Nordea Bank AB		26,050		295
Sandvik AB		15,296		235
Scania AB, Class B		5,178		108
Skandinaviska Enskilda Banken AB		14,182		143
Skanska AB, Class B		3,281		59
SKF AB, Class B		6,298		154
Svenska Cellulosa AB, Class B		8,585		221
Svenska Handelsbanken AB, Class A		5,479		234
Swedbank AB, Class A		4,898		111
Swedish Match AB		4,201		130
Telefonaktiebolaget LM Ericsson, Class B		25,830		322
TeliaSonera AB		31,426		224
Volvo AB, Class B		8,272		120
				3,896
Switzerland (2.4%)
ABB Ltd. (Registered) (e)		37,474		845
Actelion Ltd. (Registered) (e)		1,056		57
Adecco SA (Registered) (e)		1,374		75
Cie Financiere Richemont SA		5,331		418
Credit Suisse Group AG (Registered) (e)		15,943		418
Geberit AG (Registered) (e)		894		220
Givaudan SA (Registered) (e)		99		122
Holcim Ltd. (Registered) (e)		327		26
Julius Baer Group Ltd. (e)		2,309		90
Kuehne & Nagel International AG (Registered)		732		80

	Shares		Value (000)
Lonza Group AG (Registered) (e)		523	$	34
Nestle SA (Registered)		38,089		2,755
Novartis AG (Registered)		23,572		1,675
Roche Holding AG (Genusschein)		6,415		1,493
SGS SA (Registered)		60		147
Sonova Holding AG (Registered) (e)		957		115
Swatch Group AG (The)		353		205
Swiss Re AG		1,336		109
Swisscom AG (Registered)		745		345
Syngenta AG (Registered)		914		381
Transocean Ltd. (e)		3,245		168
UBS AG (Registered) (e)		30,443		467
Zurich Insurance Group AG (e)		2,528		704
				10,949
United Kingdom (5.4%)
3i Group PLC		17,668		85
Admiral Group PLC		3,778		76
Aggreko PLC		2,555		69
AMEC PLC		3,969		64
Anglo American PLC		12,293		316
ARM Holdings PLC		14,750		206
Associated British Foods PLC		1,859		54
AstraZeneca PLC		16,441		824
Aviva PLC		32,168		145
Babcock International Group PLC		4,000		66
BAE Systems PLC		51,079		306
Barclays PLC		132,391		586
BG Group PLC		32,584		559
BHP Billiton PLC		20,867		607
BP PLC		189,666		1,325
British American Tobacco PLC		19,566		1,048
British Land Co., PLC REIT		12,968		107
British Sky Broadcasting Group PLC		8,242		111
BT Group PLC		102,679		434
Burberry Group PLC		4,196		85
Cairn Energy PLC (e)		6,451		27
Capita PLC		6,586		90
Centrica PLC		52,229		292
Compass Group PLC		21,054		269
Diageo PLC		24,702		779
Experian PLC		11,285		195
G4S PLC		14,808		66
GlaxoSmithKline PLC		58,621		1,370
HSBC Holdings PLC		161,033		1,719
Imperial Tobacco Group PLC		10,308		360
Inmarsat PLC		4,106		44
Intertek Group PLC		1,847		95
Investec PLC		9,538		66
ITV PLC		32,244		63
Johnson Matthey PLC		2,335		82
Land Securities Group PLC REIT		12,437		157
Legal & General Group PLC		64,615		169

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
Lloyds Banking Group PLC (e)		379,266	$	281
Lonmin PLC (e)		1,989		9
Man Group PLC		15,236		21
Marks & Spencer Group PLC		10,082		60
National Grid PLC		35,017		407
Next PLC		1,962		130
Old Mutual PLC		76,950		237
Pearson PLC		12,902		232
Petrofac Ltd.		3,181		69
Prudential PLC		31,720		513
Randgold Resources Ltd.		924		80
Reckitt Benckiser Group PLC		6,915		496
Reed Elsevier PLC		3,587		43
Rio Tinto PLC		13,589		637
Rolls-Royce Holdings PLC (e)		34,143		586
Royal Bank of Scotland Group PLC (e)		20,621		86
Royal Dutch Shell PLC, Class A		35,881		1,161
Royal Dutch Shell PLC, Class B		27,048		898
RSA Insurance Group PLC		79,789		141
Serco Group PLC		5,878		56
Shire PLC		5,464		166
Smith & Nephew PLC		10,250		118
Smiths Group PLC		6,229		119
SSE PLC		17,723		400
Standard Chartered PLC		21,901		567
Standard Life PLC		18,540		103
Tesco PLC		78,475		455
TUI Travel PLC		15,728		78
Tullow Oil PLC		8,851		165
Unilever PLC		13,299		563
Vedanta Resources PLC		1,623		25
Vodafone Group PLC		605,559		1,717
WM Morrison Supermarkets PLC		20,218		85
Wolseley PLC		3,334		166
WPP PLC		28,743		458
Xstrata PLC		21,410		347
				24,591
United States (21.3%)
3M Co.		1,891		201
Abbott Laboratories		6,112		216
AbbVie, Inc.		6,112		249
Abercrombie & Fitch Co., Class A		249		11
Accenture PLC, Class A		3,825		291
ACCO Brands Corp. (e)		104		1
Actavis, Inc. (e)		321		30
Adobe Systems, Inc. (e)		4,163		181
ADT Corp. (The)		504		25
Advance Auto Parts, Inc.		249		21
Advanced Micro Devices, Inc. (e)		3,280		8
AES Corp.		993		12
Aetna, Inc.		2,192		112
Aflac, Inc.		301		16

	Shares		Value (000)
Agilent Technologies, Inc.		2,079	$	87
Air Products & Chemicals, Inc.		377		33
Airgas, Inc.		294		29
Akamai Technologies, Inc. (e)		1,412		50
Alaska Air Group, Inc. (e)		16,300		1,043
Alcoa, Inc.		4,080		35
Alexion Pharmaceuticals, Inc. (e)		1,301		120
Allegheny Technologies, Inc.		535		17
Allergan, Inc.		1,859		208
Allstate Corp. (The)		543		27
Alpha Natural Resources, Inc. (e)		884		7
Altera Corp.		4,541		161
Altria Group, Inc.		9,846		339
Amazon.com, Inc. (e)		1,570		418
AMC Networks, Inc., Class A (e)		21		1
Ameren Corp.		2,492		87
American Electric Power Co., Inc.		4,394		214
American Express Co.		3,691		249
American Tower Corp. REIT		3,660		282
Ameriprise Financial, Inc.		2,479		183
AmerisourceBergen Corp.		3,571		184
AMETEK, Inc.		1,016		44
Amgen, Inc.		5,817		596
Amphenol Corp., Class A		206		15
Anadarko Petroleum Corp.		3,241		283
Analog Devices, Inc.		4,157		193
Annaly Capital Management, Inc. REIT		2,558		41
Aon PLC		200		12
Apache Corp.		2,774		214
Apollo Group, Inc., Class A (e)		636		11
Apple, Inc.		7,809		3,456
Applied Materials, Inc.		7,649		103
Arch Coal, Inc.		878		5
Archer-Daniels-Midland Co.		3,443		116
AT&T, Inc.		30,651		1,125
Automatic Data Processing, Inc.		1,770		115
AutoZone, Inc. (e)		257		102
Avago Technologies Ltd.		1,365		49
AvalonBay Communities, Inc. REIT		1,367		173
Avery Dennison Corp.		1,348		58
Avon Products, Inc.		4,575		95
Baker Hughes, Inc.		3,795		176
Ball Corp.		799		38
Bank of America Corp.		90,210		1,099
Bank of New York Mellon Corp. (The)		10,984		307
Baxter International, Inc.		4,320		314
BB&T Corp.		6,360		200
Becton Dickinson and Co.		1,922		184
Bed Bath & Beyond, Inc. (e)		1,480		95
Berkshire Hathaway, Inc., Class B (e)		654		68
Best Buy Co., Inc.		1,446		32
Biogen Idec, Inc. (e)		1,524		294
BlackRock, Inc.		1,087		279

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
BMC Software, Inc. (e)		1,248	$	58
Boeing Co. (The)		3,419		294
Boston Properties, Inc. REIT		1,416		143
Boston Scientific Corp. (e)		11,597		91
Bristol-Myers Squibb Co.		8,639		356
Broadcom Corp., Class A		5,652		196
Brown-Forman Corp., Class B		31		2
Bunge Ltd.		546		40
C.H. Robinson Worldwide, Inc.		1,227		73
CA, Inc.		2,075		52
Cablevision Systems Corp.		2,912		44
Cameron International Corp. (e)		1,823		119
Campbell Soup Co.		222		10
Capital One Financial Corp.		3,677		202
Cardinal Health, Inc.		3,321		138
CarMax, Inc. (e)		977		41
Carnival Corp.		2,109		72
Catamaran Corp. (e)		200		11
Caterpillar, Inc.		4,687		408
CBRE Group, Inc., Class A (e)		5,889		149
CBS Corp., Class B		6,101		285
Celanese Corp. Series A		320		14
Celgene Corp. (e)		2,811		326
CenterPoint Energy, Inc.		4,776		114
CenturyLink, Inc.		3,810		134
Cerner Corp. (e)		1,106		105
CF Industries Holdings, Inc.		456		87
Charles Schwab Corp. (The)		6,733		119
Chesapeake Energy Corp.		4,434		90
Chevron Corp.		9,865		1,172
Chipotle Mexican Grill, Inc. (e)		223		73
Chubb Corp. (The)		284		25
Cigna Corp.		2,166		135
Cintas Corp.		1,394		62
Cisco Systems, Inc.		43,942		919
CIT Group, Inc. (e)		1,755		76
Citigroup, Inc. (See Note G)		15,452		684
Citrix Systems, Inc. (e)		1,779		128
Cliffs Natural Resources, Inc.		877		17
Clorox Co. (The)		1,259		111
CME Group, Inc.		211		13
Coach, Inc.		1,453		73
Coca-Cola Co. (The)		29,791		1,205
Coca-Cola Enterprises, Inc.		1,705		63
Cognizant Technology Solutions Corp., Class A (e)		2,809		215
Colgate-Palmolive Co.		4,397		519
Comcast Corp., Class A		12,874		541
Comcast Corp. Special Class A		3,575		142
Comerica, Inc.		222		8
ConAgra Foods, Inc.		3,063		110
Concho Resources, Inc. (e)		580		56
ConocoPhillips		7,265		437

	Shares		Value (000)
CONSOL Energy, Inc.		1,769	$	60
Consolidated Edison, Inc.		2,186		133
Constellation Brands, Inc., Class A (e)		333		16
Corning, Inc.		4,684		62
Costco Wholesale Corp.		5,751		610
Coventry Health Care, Inc.		1,169		55
Covidien PLC		1,798		122
CR Bard, Inc.		451		45
Crimson Wine Group Ltd. (e)		179		2
Crown Castle International Corp. (e)		2,796		195
Crown Holdings, Inc. (e)		600		25
CSX Corp.		6,408		158
Cummins, Inc.		1,821		211
CVS Caremark Corp.		1,481		81
Danaher Corp.		3,589		223
Darden Restaurants, Inc.		624		32
DaVita, Inc. (e)		546		65
Deere & Co.		2,818		242
Dell, Inc.		8,954		128
Delta Air Lines, Inc. (e)		201,200		3,322
Denbury Resources, Inc. (e)		934		17
Devon Energy Corp.		2,222		125
DeVry, Inc.		21		1
Diamond Offshore Drilling, Inc.		43		3
DIRECTV, Class A (e)		7,692		435
Discover Financial Services		3,369		151
Discovery Communications, Inc., Class A (e)		1,542		121
Discovery Communications, Inc., Class C (e)		1,303		91
Dollar General Corp. (e)		186		9
Dollar Tree, Inc. (e)		580		28
Dominion Resources, Inc.		5,623		327
Dover Corp.		226		16
Dow Chemical Co. (The)		1,980		63
Dr. Pepper Snapple Group, Inc.		1,011		47
DTE Energy Co.		1,490		102
Duke Energy Corp.		4,662		338
Dun & Bradstreet Corp. (The)		626		52
Eastman Chemical Co.		382		27
Eaton Corp., PLC		2,148		132
eBay, Inc. (e)		7,867		427
Ecolab, Inc.		1,468		118
Edison International		3,827		193
Edwards Lifesciences Corp. (e)		521		43
EI du Pont de Nemours & Co.		1,372		67
Eli Lilly & Co.		4,733		269
EMC Corp. (e)		16,997		406
Emerson Electric Co.		4,865		272
Engility Holdings, Inc. (e)		18		—	@
Entergy Corp.		1,290		82
EOG Resources, Inc.		2,076		266
EQT Corp.		959		65
Equifax, Inc.		1,461		84
Equity Residential REIT		2,833		156

The accompanying notes are an integral part of the financial statements.
16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Estee Lauder Cos., Inc. (The), Class A		2,959	$	189
Exelis, Inc.		227		2
Exelon Corp.		7,330		253
Expedia, Inc.		332		20
Expeditors International of Washington, Inc.		656		23
Express Scripts Holding Co. (e)		6,426		370
Exxon Mobil Corp.		24,086		2,170
Family Dollar Stores, Inc.		397		23
Fastenal Co.		1,771		91
FedEx Corp.		1,614		158
Fidelity National Information Services, Inc.		111		4
Fifth Third Bancorp		8,771		143
First Solar, Inc. (e)		295		8
FirstEnergy Corp.		3,456		146
Fiserv, Inc. (e)		668		59
Flowserve Corp.		300		50
Fluor Corp.		626		42
FMC Corp.		982		56
FMC Technologies, Inc. (e)		2,471		134
Ford Motor Co.		9,829		129
Franklin Resources, Inc.		1,136		171
Freeport-McMoRan Copper & Gold, Inc.		2,660		88
Frontier Communications Corp.		9,447		38
GameStop Corp., Class A		536		15
Gannett Co., Inc.		233		5
Gap, Inc. (The)		1,496		53
General Dynamics Corp.		1,241		87
General Electric Co.		21,578		499
General Growth Properties, Inc. REIT		1,346		27
General Mills, Inc.		4,874		240
Genuine Parts Co.		111		9
Gilead Sciences, Inc. (e)		9,180		449
Goldman Sachs Group, Inc. (The)		4,552		670
Google, Inc., Class A (e)		1,783		1,416
H&R Block, Inc.		3,437		101
H.J. Heinz Co.		2,488		180
Halliburton Co.		6,838		276
Harman International Industries, Inc.		43		2
Hartford Financial Services Group, Inc.		328		8
Hasbro, Inc.		176		8
HCP, Inc. REIT		1,686		84
Health Care, Inc. REIT		617		42
Helmerich & Payne, Inc.		980		59
Henry Schein, Inc. (e)		580		54
Hershey Co. (The)		448		39
Hess Corp.		1,439		103
Hewlett-Packard Co.		11,306		270
Hillshire Brands Co.		504		18
Hologic, Inc. (e)		1,596		36
Home Depot, Inc.		1,231		86
Honeywell International, Inc.		4,930		371
Hospira, Inc. (e)		1,494		49

	Shares		Value (000)
Host Hotels & Resorts, Inc. REIT		8,371	$	146
Hudson City Bancorp, Inc.		222		2
Humana, Inc.		604		42
Huntington Bancshares, Inc.		900		7
Huntington Ingalls Industries, Inc.		59		3
IHS, Inc., Class A (e)		572		60
Illinois Tool Works, Inc.		2,474		151
Illumina, Inc. (e)		542		29
Ingersoll-Rand PLC		1,127		62
Intel Corp.		18,976		415
International Business Machines Corp.		7,671		1,636
International Flavors & Fragrances, Inc.		253		19
International Game Technology		2,503		41
International Paper Co.		830		39
Interpublic Group of Cos., Inc. (The)		4,901		64
Intuit, Inc.		3,122		205
Intuitive Surgical, Inc. (e)		435		214
Invesco Ltd.		3,681		107
Iron Mountain, Inc.		2,491		90
ITT Corp.		219		6
Jabil Circuit, Inc.		222		4
Jacobs Engineering Group, Inc. (e)		1,051		59
Janus Capital Group, Inc.		111		1
JB Hunt Transport Services, Inc.		228		17
JC Penney Co., Inc.		222		3
JetBlue Airways Corp. (e)		67,100		463
JM Smucker Co. (The)		679		67
Johnson & Johnson		14,648		1,194
Johnson Controls, Inc.		2,048		72
Joy Global, Inc.		341		20
JPMorgan Chase & Co.		39,677		1,883
Juniper Networks, Inc. (e)		5,631		104
KBR, Inc.		1,202		39
Kellogg Co.		1,940		125
KeyCorp		11,015		110
Kimberly-Clark Corp.		3,647		357
Kimco Realty Corp. REIT		2,119		47
KLA-Tencor Corp.		889		47
Kohl's Corp.		1,749		81
Kraft Foods Group, Inc.		2,845		147
Kroger Co. (The)		6,575		218
L Brands, Inc.		2,031		90
L-3 Communications Holdings, Inc.		111		9
Laboratory Corp. of America Holdings (e)		549		50
Lam Research Corp. (e)		642		27
Las Vegas Sands Corp.		1,935		109
Legg Mason, Inc.		1,764		57
Leucadia National Corp.		2,112		58
Lexmark International, Inc., Class A		111		3
Li & Fung Ltd. (d)		40,000		55
Liberty Global, Inc. Series A (e)		1,335		98
Liberty Global, Inc. Series C (e)		1,307		90
Liberty Property Trust REIT		529		21

The accompanying notes are an integral part of the financial statements.
17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Life Technologies Corp. (e)		1,133	$	73
Linear Technology Corp.		1,699		65
Lockheed Martin Corp.		983		95
Loews Corp.		586		26
Lorillard, Inc.		2,621		106
Lowe's Cos., Inc.		6,373		242
LSI Corp. (e)		4,991		34
LyondellBasell Industries N.V., Class A		954		60
M&T Bank Corp.		1,132		117
Macerich Co. (The) REIT		387		25
Macy's, Inc.		173		7
Manpower, Inc.		1,329		75
Marathon Oil Corp.		3,805		128
Marathon Petroleum Corp.		1,903		170
Marriott International, Inc., Class A		1,725		73
Marriott Vacations Worldwide Corp. (e)		194		8
Marsh & McLennan Cos., Inc.		586		22
Marvell Technology Group Ltd.		2,949		31
Mastercard, Inc., Class A		909		492
Mattel, Inc.		1,365		60
Maxim Integrated Products, Inc.		1,370		45
McDonald's Corp.		5,382		537
McGraw-Hill Cos., Inc. (The)		3,315		173
McKesson Corp.		1,841		199
Mead Johnson Nutrition Co.		1,533		119
MeadWestvaco Corp.		232		8
Medtronic, Inc.		7,636		359
Merck & Co., Inc.		15,139		670
MetLife, Inc.		870		33
MetroPCS Communications, Inc. (e)		233		3
MGM Resorts International (e)		2,434		32
Microchip Technology, Inc.		1,003		37
Micron Technology, Inc. (e)		5,596		56
Microsoft Corp.		39,320		1,125
Molex, Inc.		71		2
Molson Coors Brewing Co., Class B		1,387		68
Mondelez International, Inc., Class A		8,338		255
Monsanto Co.		2,786		294
Moody's Corp.		1,155		62
Mosaic Co. (The)		1,508		90
Motorola Solutions, Inc.		1,399		90
Murphy Oil Corp.		914		58
Mylan, Inc. (e)		1,701		49
NASDAQ OMX Group, Inc. (The)		2,792		90
National Oilwell Varco, Inc.		4,189		296
NetApp, Inc. (e)		3,516		120
NetFlix, Inc. (e)		325		62
New York Community Bancorp, Inc.		4,471		64
Newfield Exploration Co. (e)		936		21
Newmont Mining Corp.		2,681		112
News Corp., Class A		15,265		466
News Corp., Class B		3,302		102
NextEra Energy, Inc.		3,087		240

	Shares		Value (000)
NII Holdings, Inc. (e)		1,586	$	7
NIKE, Inc., Class B		3,126		184
NiSource, Inc.		64		2
Noble Corp.		1,071		41
Noble Energy, Inc.		1,450		168
Nordstrom, Inc.		510		28
Norfolk Southern Corp.		3,830		295
Northern Trust Corp.		33		2
Northrop Grumman Corp.		939		66
Nucor Corp.		966		45
NVIDIA Corp.		3,556		46
NYSE Euronext		3,577		138
O'Reilly Automotive, Inc. (e)		1,133		116
Occidental Petroleum Corp.		7,317		573
Omnicom Group, Inc.		1,861		110
ONEOK, Inc.		2,770		132
Oracle Corp.		24,411		789
Owens-Illinois, Inc. (e)		262		7
PACCAR, Inc.		2,626		133
Pall Corp.		535		37
Patterson Cos., Inc.		176		7
Paychex, Inc.		1,853		65
Peabody Energy Corp.		2,823		60
Pentair Ltd.		189		10
People's United Financial, Inc.		567		8
Pepco Holdings, Inc.		94		2
PepsiCo, Inc.		7,337		580
Perrigo Co.		321		38
PetSmart, Inc.		286		18
Pfizer, Inc.		40,350		1,164
PG&E Corp.		3,437		153
Philip Morris International, Inc.		8,370		776
Phillips 66		3,793		265
Pioneer Natural Resources Co.		1,122		139
Pitney Bowes, Inc.		2,581		38
Plum Creek Timber Co., Inc. REIT		958		50
PNC Financial Services Group, Inc.		4,269		284
PPG Industries, Inc.		422		57
PPL Corp.		4,362		137
Praxair, Inc.		1,529		171
Precision Castparts Corp.		1,093		207
Priceline.com, Inc. (e)		258		177
Procter & Gamble Co. (The)		20,928		1,613
Progressive Corp. (The)		359		9
ProLogis, Inc. REIT		4,209		168
Prudential Financial, Inc.		200		12
Public Service Enterprise Group, Inc.		4,394		151
Public Storage REIT		2,766		421
QEP Resources, Inc.		1,163		37
Qualcomm, Inc.		12,926		865
Quest Diagnostics, Inc.		1,070		60
Ralph Lauren Corp.		47		8
Range Resources Corp.		1,297		105
Rayonier, Inc. REIT		525		31

The accompanying notes are an integral part of the financial statements.
18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Raytheon Co.		1,074	$	63
Regency Centers Corp. REIT		251		13
Regions Financial Corp.		14,879		122
Republic Services, Inc.		3,058		101
Reynolds American, Inc.		2,716		121
Robert Half International, Inc.		1,760		66
Rockwell Automation, Inc.		1,462		126
Rockwell Collins, Inc.		932		59
Roper Industries, Inc.		256		33
Ross Stores, Inc.		1,450		88
Rouse Properties, Inc. REIT		71		1
Royal Caribbean Cruises Ltd.		1,378		46
RR Donnelley & Sons Co.		2,904		35
Safeway, Inc.		424		11
Salesforce.com, Inc. (e)		1,099		197
SanDisk Corp. (e)		2,918		160
Schlumberger Ltd.		10,925		818
Scripps Networks Interactive, Inc., Class A		681		44
Sealed Air Corp.		287		7
Sempra Energy		2,203		176
Sherwin-Williams Co. (The)		61		10
Sigma-Aldrich Corp.		366		28
Simon Property Group, Inc. REIT		4,828		766
SLM Corp.		5,230		107
Southern Co. (The)		6,730		316
Southwest Airlines Co.		176,478		2,379
Southwestern Energy Co. (e)		3,562		133
Spectra Energy Corp.		4,622		142
Sprint Nextel Corp. (e)		23,134		144
St. Jude Medical, Inc.		3,226		130
Stanley Black & Decker, Inc.		258		21
Staples, Inc.		5,638		76
Starbucks Corp.		4,852		276
Starwood Hotels & Resorts Worldwide, Inc.		684		44
State Street Corp.		2,968		175
Stericycle, Inc. (e)		617		65
Stryker Corp.		2,647		173
SunTrust Banks, Inc.		5,017		145
Symantec Corp. (e)		6,562		162
Sysco Corp.		7,132		251
T. Rowe Price Group, Inc.		3,131		234
Target Corp.		2,488		170
TE Connectivity Ltd.		2,700		113
Tenaris SA		4,172		85
Tenet Healthcare Corp. (e)		131		6
Texas Instruments, Inc.		11,605		412
Textron, Inc.		1,822		54
Thermo Fisher Scientific, Inc.		2,704		207
Tiffany & Co.		361		25
Time Warner Cable, Inc.		3,249		312
Time Warner, Inc.		6,409		369
TJX Cos., Inc.		4,340		203
Travelers Cos., Inc. (The)		528		44

	Shares		Value (000)
TripAdvisor, Inc. (e)		332	$	17
TRW Automotive Holdings Corp. (e)		1,444		79
Tyco International Ltd.		1,209		39
Tyson Foods, Inc., Class A		2,458		61
Ultra Petroleum Corp. (e)		1,310		26
Union Pacific Corp.		2,185		311
United Continental Holdings, Inc. (e)		79,800		2,554
United Parcel Service, Inc., Class B		3,620		311
United States Steel Corp.		541		11
United Technologies Corp.		2,673		250
UnitedHealth Group, Inc.		4,912		281
Urban Outfitters, Inc. (e)		186		7
US Airways Group, Inc. (e)		38,600		655
US Bancorp		14,773		501
Valero Energy Corp.		3,771		172
Varian Medical Systems, Inc. (e)		927		67
Ventas, Inc. REIT		547		40
Verisk Analytics, Inc., Class A (e)		1,688		104
Verizon Communications, Inc.		14,424		709
Vertex Pharmaceuticals, Inc. (e)		542		30
VF Corp.		578		97
Viacom, Inc., Class B		3,763		232
Virgin Media, Inc.		2,737		134
Visa, Inc., Class A		3,232		549
Vornado Realty Trust REIT		509		43
Wal-Mart Stores, Inc.		21,261		1,591
Walgreen Co.		10,358		494
Walt Disney Co. (The)		10,374		589
Waste Management, Inc.		3,829		150
Waters Corp. (e)		321		30
Weatherford International Ltd. (e)		4,676		57
WellPoint, Inc.		1,787		118
Wells Fargo & Co.		40,927		1,514
Western Union Co. (The)		5,969		90
Weyerhaeuser Co. REIT		2,079		65
Whole Foods Market, Inc.		2,173		188
Williams Cos., Inc. (The)		7,931		297
Wisconsin Energy Corp.		3,070		132
WPX Energy, Inc. (e)		3,605		58
WW Grainger, Inc.		588		132
Wyndham Worldwide Corp.		308		20
Wynn Resorts Ltd.		640		80
Xcel Energy, Inc.		4,316		128
Xerox Corp.		5,656		49
Xilinx, Inc.		1,708		65
Xylem, Inc.		1,838		51
Yahoo!, Inc. (e)		6,399		151
Yum! Brands, Inc.		3,489		251
Zimmer Holdings, Inc.		1,837		138
Zions Bancorporation		222		6
				97,042
Total Common Stocks (Cost $232,360)				253,626

The accompanying notes are an integral part of the financial statements.
19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Commodity Linked Security (3.2%)
United States (3.2%)
Deutsche Bank AG, S&P GSCI Gold Index — Total Return, Zero Coupon, 10/15/13 - 3/18/14 (b) (Cost $14,570)		15,516,000	$	14,572
Convertible Preferred Stock (0.0%)
United States (0.0%)
Alternative Energy (0.0%)
Better Place, Inc. (e)(f)(g) (acquisition cost — $84; acquired 1/25/10) (Cost $84)		33,466		—
Investment Companies (1.0%)
United Kingdom (0.9%)
ETFS Short Copper (e)		134,000		4,035
United States (0.1%)
iShares MSCI Emerging Markets Index Fund		8,000		342
Morgan Stanley Institutional Fund, Inc. — Emerging Markets Portfolio (See Note G)		4,418		116
				458
Total Investment Companies (Cost $4,433)				4,493
Short-Term Investments (3.3%)
Investment Company (3.0%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $13,429)		13,429,248		13,429
	Face Amount (000)
U.S. Treasury Securities (0.3%)
U.S. Treasury Bills,
0.09%, 8/8/13 (h)(i)	$	688		688
0.12%, 8/8/13 (h)(i)		220		220
0.13%, 8/8/13 (h)(i)		275		275
Total U.S. Treasury Securities (Cost $1,183)				1,183
Total Short-Term Investments (Cost $14,612)				14,612
Total Investments (99.9%) (Cost $431,747) (j)				454,477
Other Assets in Excess of Liabilities (0.1%)				528
Net Assets (100.0%)			$	455,005

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

(a)  Security is subject to delayed delivery.

(b)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(c)  Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 28, 2013.

(d)  Security trades on the Hong Kong exchange.

(e)  Non-income producing security.

(f)  Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Portfolio has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities (excluding 144A holdings) at period-end March 28, 2013 amounts to $0 and represents 0.0% of net assets.

(g)  At March 28, 2013, the Portfolio held a fair valued security valued at $0, representing 0.0% of net assets. The security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund's Trustees.

(h)  Rate shown is the yield to maturity at March 28, 2013.

(i)  All or a portion of this security has been physically segregated in connection with open swap agreements.

(j)  Securities are available for collateral in connection with securities purchased on a forward commitment basis, open foreign currency exchange contracts, futures contracts and swap agreements.

@  Value is less than $500.

ADR  American Depositary Receipt.

CVA  Certificaten Van Aandelen.

IO  Interest Only.

MTN  Medium Term Note.

OAT  Obligations Assimilables du Trésor (French Treasury Obligation).

PAC  Planned Amortization Class.

PPS  Price Protected Shares.

REIT  Real Estate Investment Trust.

REMIC  Real Estate Mortgage Investment Conduit.

SDR  Swedish Depositary Receipt.

TBA  To Be Announced.

Foreign Currency Exchange Contracts:

The Portfolio had the following foreign currency exchange contracts open at March 28, 2013:

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
Goldman Sachs International	AUD	83	$	86	4/2/13	USD	86	$	86	$	(—	@)
Goldman Sachs International	CAD	201		197	4/2/13	USD	196		196		(1	)
Goldman Sachs International	CHF	58		61	4/2/13	USD	61		61		—	@
Goldman Sachs International	EUR	3,174		4,068	4/2/13	USD	4,111		4,111		43
Goldman Sachs International	GBP	390		593	4/2/13	USD	589		589		(4	)
Goldman Sachs International	JPY	95,952		1,020	4/2/13	USD	1,005		1,005		(15	)
Goldman Sachs International	MXN	4,444		360	4/2/13	USD	358		358		(2	)
Goldman Sachs International	NOK	569		97	4/2/13	USD	98		98		1
Goldman Sachs International	SEK	394		60	4/2/13	USD	61		61		1

The accompanying notes are an integral part of the financial statements.
20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Exchange Contracts: (cont'd)

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
Goldman Sachs International	SEK	604	$	93	4/2/13	USD	93	$	93	$	—	@
Goldman Sachs International	SGD	279		225	4/2/13	USD	225		225		—	@
Goldman Sachs International	USD	271		271	4/2/13	DKK	1,577		271		—	@
Goldman Sachs International	USD	357		357	4/2/13	MXN	4,404		357		(—	@)
Goldman Sachs International	USD	2,448		2,448	4/2/13	PLN	7,973		2,448		(—	@)
Goldman Sachs International	ZAR	1,713		187	4/2/13	USD	186		186		(1	)
HSBC Bank PLC	AUD	2,817		2,933	4/2/13	USD	2,905		2,905		(28	)
HSBC Bank PLC	PLN	9,209		2,828	4/2/13	USD	2,947		2,947		119
HSBC Bank PLC	USD	858		858	4/2/13	NOK	4,773		817		(41	)
HSBC Bank PLC	USD	686		686	4/2/13	NZD	819		685		(1	)
HSBC Bank PLC	USD	1,463		1,463	4/2/13	ZAR	13,457		1,463		—	@
JPMorgan Chase Bank	EUR	2,413		3,092	4/2/13	USD	3,094		3,094		2
JPMorgan Chase Bank	USD	225		225	4/2/13	SGD	279		225		(—	@)
JPMorgan Chase Bank	USD	351		351	4/2/13	THB	10,500		359		8
UBS AG	CAD	816		803	4/2/13	USD	805		805		2
UBS AG	CZK	357		18	4/2/13	USD	18		18		—	@
UBS AG	DKK	1,552		267	4/2/13	USD	278		278		11
UBS AG	DKK	25		4	4/2/13	USD	4		4		—	@
UBS AG	GBP	423		643	4/2/13	USD	655		655		12
UBS AG	GBP	645		980	4/2/13	USD	978		978		(2	)
UBS AG	KRW	1,458,797		1,312	4/2/13	USD	1,309		1,309		(3	)
UBS AG	KRW	1,458,797		1,311	4/2/13	USD	1,311		1,311		—	@
UBS AG	MXN	5,256		426	4/2/13	USD	413		413		(13	)
UBS AG	MYR	850		274	4/2/13	USD	274		274		(—	@)
UBS AG	MYR	850		275	4/2/13	USD	274		274		(1	)
UBS AG	NOK	4,204		720	4/2/13	USD	718		718		(2	)
UBS AG	NZD	971		812	4/2/13	USD	821		821		9
UBS AG	THB	10,500		358	4/2/13	USD	358		358		(—	@)
UBS AG	USD	673		673	4/2/13	AUD	660		687		14
UBS AG	USD	19		19	4/2/13	CZK	357		18		(1	)
UBS AG	USD	5,253		5,253	4/2/13	EUR	3,929		5,037		(216	)
UBS AG	USD	11,899		11,899	4/2/13	JPY	1,113,475		11,828		(71	)
UBS AG	USD	1,345		1,345	4/2/13	KRW	1,458,797		1,311		(34	)
UBS AG	USD	1,311		1,311	4/2/13	KRW	1,458,797		1,311		(—	@)
UBS AG	USD	274		274	4/2/13	MYR	850		274		—	@
UBS AG	USD	274		274	4/2/13	MYR	850		275		1
Wells Fargo Bank	CHF	214		226	4/2/13	USD	225		225		(1	)
Wells Fargo Bank	JPY	1,261,057		13,396	4/2/13	USD	13,387		13,387		(9	)
Wells Fargo Bank	SEK	2,421		371	4/2/13	USD	383		383		12
Wells Fargo Bank	USD	383		383	4/2/13	AUD	369		384		1
Wells Fargo Bank	USD	1,949		1,949	4/2/13	AUD	1,871		1,948		(1	)
Wells Fargo Bank	USD	910		910	4/2/13	CAD	931		916		6
Wells Fargo Bank	USD	85		85	4/2/13	CAD	86		85		(—	@)
Wells Fargo Bank	USD	295		295	4/2/13	CHF	272		287		(8	)
Wells Fargo Bank	USD	2,146		2,146	4/2/13	EUR	1,657		2,124		(22	)
Wells Fargo Bank	USD	2,202		2,202	4/2/13	GBP	1,459		2,216		14
Wells Fargo Bank	USD	2,546		2,546	4/2/13	JPY	243,534		2,587		41
Wells Fargo Bank	USD	426		426	4/2/13	MXN	5,296		429		3
Wells Fargo Bank	USD	125		125	4/2/13	NZD	152		127		2
Wells Fargo Bank	USD	385		385	4/2/13	PLN	1,236		379		(6	)
Wells Fargo Bank	USD	531		531	4/2/13	SEK	3,419		525		(6	)
Wells Fargo Bank	USD	311		311	4/2/13	ZAR	2,863		311		(—	@)
Wells Fargo Bank	ZAR	14,607		1,588	4/2/13	USD	1,640		1,640		52
Bank of America NA	CAD	12,561		12,360	4/18/13	USD	12,240		12,240		(120	)
Bank of America NA	EUR	18,270		23,422	4/18/13	USD	23,795		23,795		373
Bank of America NA	USD	3,506		3,506	4/18/13	EUR	2,696		3,457		(49	)
Bank of New York Mellon	MXN	19,824		1,602	4/18/13	USD	1,587		1,587		(15	)
Bank of New York Mellon	USD	1,664		1,664	4/18/13	AUD	1,617		1,682		18
Deutsche Bank AG London	AUD	36,485		37,944	4/18/13	USD	37,536		37,536		(408	)
Deutsche Bank AG London	CAD	246		242	4/18/13	USD	240		240		(2	)

The accompanying notes are an integral part of the financial statements.
21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Exchange Contracts: (cont'd)

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
Deutsche Bank AG London	EUR	11,177	$	14,328	4/18/13	USD	14,555	$	14,555	$	227
Deutsche Bank AG London	JPY	835,277		8,875	4/18/13	USD	8,704		8,704		(171	)
Deutsche Bank AG London	USD	1,437		1,437	4/18/13	AUD	1,388		1,442		5
Deutsche Bank AG London	USD	713		713	4/18/13	AUD	685		712		(1	)
Deutsche Bank AG London	USD	546		546	4/18/13	EUR	419		537		(9	)
Deutsche Bank AG London	USD	1,418		1,418	4/18/13	GBP	953		1,448		30
Deutsche Bank AG London	USD	494		494	4/18/13	HKD	3,832		494		(—	@)
Goldman Sachs International	CAD	1,475		1,451	4/18/13	USD	1,437		1,437		(14	)
Goldman Sachs International	EUR	21,651		27,756	4/18/13	USD	28,198		28,198		442
Goldman Sachs International	EUR	7,973		10,221	4/18/13	USD	10,329		10,329		108
Goldman Sachs International	EUR	4,042		5,183	4/18/13	USD	5,238		5,238		55
Goldman Sachs International	EUR	4,038		5,176	4/18/13	USD	5,212		5,212		36
Goldman Sachs International	USD	5,031		5,031	4/18/13	EUR	3,917		5,022		(9	)
Goldman Sachs International	USD	1,522		1,522	4/18/13	HKD	11,806		1,521		(1	)
Goldman Sachs International	ZAR	2,816		306	4/18/13	USD	306		306		—	@
JPMorgan Chase Bank	EUR	243		311	4/18/13	USD	316		316		5
JPMorgan Chase Bank	NOK	9,322		1,595	4/18/13	USD	1,629		1,629		34
JPMorgan Chase Bank	USD	1,821		1,821	4/18/13	SEK	11,599		1,780		(41	)
JPMorgan Chase Bank	USD	203		203	4/18/13	SGD	254		204		1
Royal Bank of Scotland	USD	1,180		1,180	4/18/13	ILS	4,349		1,195		15
Royal Bank of Scotland	USD	663		663	4/18/13	THB	19,765		674		11
State Street Bank and Trust Co.	CLP	403,846		854	4/18/13	USD	851		851		(3	)
State Street Bank and Trust Co.	DKK	660		113	4/18/13	USD	115		115		2
State Street Bank and Trust Co.	USD	444		444	4/18/13	CHF	421		443		(1	)
State Street Bank and Trust Co.	USD	166		166	4/18/13	GBP	111		169		3
State Street Bank and Trust Co.	USD	535		535	4/18/13	RUB	16,548		531		(4	)
State Street Bank and Trust Co.	USD	2,443		2,443	4/18/13	SEK	15,562		2,388		(55	)
State Street Bank and Trust Co.	USD	1,185		1,185	4/18/13	TWD	35,142		1,175		(10	)
UBS AG	KRW	402,262		362	4/18/13	USD	367		367		5
UBS AG	SEK	15,424		2,366	4/18/13	USD	2,421		2,421		55
UBS AG	USD	251		251	4/18/13	CHF	237		250		(1	)
UBS AG	USD	8,786		8,786	4/18/13	EUR	6,746		8,648		(138	)
UBS AG	USD	1,240		1,240	4/18/13	EUR	957		1,227		(13	)
UBS AG	USD	656		656	4/18/13	INR	36,028		661		5
UBS AG	USD	4,924		4,924	4/18/13	JPY	472,571		5,020		96
UBS AG	USD	1,019		1,019	4/18/13	JPY	96,912		1,030		11
UBS AG	USD	2,274		2,274	4/18/13	SEK	14,692		2,254		(20	)
UBS AG	USD	1,431		1,431	4/18/13	SGD	1,784		1,439		8
UBS AG	USD	629		629	4/18/13	TRY	1,140		628		(1	)
Goldman Sachs International	MXN	4,404		356	5/2/13	USD	356		356		—	@
Goldman Sachs International	PLN	7,973		2,442	5/2/13	USD	2,442		2,442		—	@
Goldman Sachs International	USD	93		93	5/2/13	SEK	604		93		(—	@)
Goldman Sachs International	USD	225		225	5/2/13	SGD	279		225		(—	@)
HSBC Bank PLC	NZD	819		684	5/2/13	USD	685		685		1
HSBC Bank PLC	ZAR	13,457		1,458	5/2/13	USD	1,457		1,457		(1	)
JPMorgan Chase Bank	USD	3,095		3,095	5/2/13	EUR	2,413		3,093		(2	)
UBS AG	USD	18		18	5/2/13	CZK	357		18		(—	@)
UBS AG	USD	4		4	5/2/13	DKK	25		4		(—	@)
UBS AG	USD	978		978	5/2/13	GBP	645		980		2
UBS AG	USD	1,307		1,307	5/2/13	KRW	1,458,797		1,309		2
UBS AG	USD	717		717	5/2/13	NOK	4,204		719		2
UBS AG	USD	358		358	5/2/13	THB	10,500		358		—	@
Wells Fargo Bank	AUD	1,871		1,943	5/2/13	USD	1,944		1,944		1
Wells Fargo Bank	CAD	86		85	5/2/13	USD	85		85		—	@
Wells Fargo Bank	USD	225		225	5/2/13	CHF	214		226		1
Wells Fargo Bank	USD	13,390		13,390	5/2/13	JPY	1,261,057		13,399		9
UBS AG	USD	274		274	5/3/13	MYR	850		274		(—	@)
JPMorgan Chase Bank	CNY	85,125		13,603	8/12/13	USD	13,205		13,205		(398	)
JPMorgan Chase Bank	CNY	8,029		1,284	8/12/13	USD	1,246		1,246		(38	)

The accompanying notes are an integral part of the financial statements.
22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Exchange Contracts: (cont'd)

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank	USD	14,789	$	14,789	8/12/13	CNY	93,155	$	14,886	$	97
Bank of America NA	RUB	298,314		9,328	9/19/13	USD	9,377		9,377		49
			$	346,989				$	347,038	$	49

Futures Contracts:

The Portfolio had the following futures contracts open at March 28, 2013:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
10 yr. Japan Government Bond (Japan)		2	$	3,090		Jun-13	$	15
Amsterdam Index (Netherlands)		3		267		Apr-13		(3	)
ASX Spi 200 Index (Australia)		1		129		Jun-13		—	@
Australian 3 yr. Bond (Australia)		24		2,723		Jun-13		11
CAC 40 Index (France)		7		335		Apr-13		—	@
DAX Index (Germany)		9		2,250		Jun-13		(35	)
Euro Stoxx 50 Index (Germany)		249		8,152		Jun-13		(229	)
FTSE 100 Index (United Kingdom)		9		869		Jun-13		(9	)
Hang Seng Index (Hong Kong)		2		288		Apr-13		(1	)
NIKKEI 225 Index (United States)		89		5,869		Jun-13		301
OMX 30 (Sweden)		19		347		Apr-13		(—	@)
S&P 500 E MINI Index (United States)		955		74,619		Jun-13		574
SGX MSCI Singapore (Singapore)		36		2,164		Apr-13		25
U.S. Dollar Index (United States)		75		6,238		Jun-13		26
U.S. Treasury 30 yr. Bond (United States)		116		16,758		Jun-13		251
U.S. Treasury 5 yr. Note (United States)		168		20,841		Jun-13		18
U.S. Treasury Ultra Long Bond (United States)		78		12,292		Jun-13		12
Short:
Copper High Grade Index (United States)		100		(8,505	)	May-13		383
German Euro Bund (Germany)		57		(10,630	)	Jun-13		(135	)
IBEX 35 Index (Spain)		41		(4,117	)	Apr-13		64
MSCI Emerging Market E-Mini (United States)		36		(1,849	)	Jun-13		(3	)
U.S. Treasury 10 yr. Note (United States)		367		(48,438	)	Jun-13		(166	)
U.S. Treasury 2 yr. Note (United States)		213		(46,957	)	Jun-13		3
U.S. Treasury 5 yr. Note (United States)		50		(6,203	)	Jun-13		1
UK Long Gilt Bond (United Kingdom)		1		(180	)	Jun-13		(6	)
U.S. Treasury Ultra Long Bond (United States)		1		(158	)	Jun-13		1
							$	1,098

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 28, 2013:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Bank of America	3 Month LIBOR	Receive		2.04	%	2/13/23	$	3,010	$	(22	)
Barclays Bank	3 Month NZBBR	Pay		3.51		3/4/16	NZD	17,660		16
Barclays Bank	3 Month LIBOR	Receive		0.81		9/24/17	$	4,000		2
Goldman Sachs International	3 Month CDOR	Pay		1.75		8/1/16	CAD	14,500		47
Goldman Sachs International	3 Month LIBOR	Receive		0.83		8/3/16	$	14,000		(28	)
Goldman Sachs International	3 Month LIBOR	Receive		0.82		7/24/17		9,936		(26	)
Goldman Sachs International	3 Month LIBOR	Receive		2.09		2/15/23		3,740		(45	)
Royal Bank of Canada	3 Month LIBOR	Receive		2.06		2/6/23		1,810		(17	)
									$	(73	)

The accompanying notes are an integral part of the financial statements.
23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Total Return Swap Agreements:

The Portfolio had the following total return swap agreements open at March 28, 2013:

Swap Counterparty	Index	Notional Amount (000)		Floating Rate	Pay/Receive Total Return of Referenced Index	Maturity Date	Unrealized Appreciation (Depreciation) (000)
Bank of America	Merrill Lynch Custom European Stock Index	EUR	16,039	3-Month EUR-EURIBOR minus 0.16%	Pay	3/26/14	$	626
Barclays Bank	Barclays Custom Emerging Markets Basket	$	6,981	3-Month USD-LIBOR minus 0.35%	Pay	2/10/14		171
Barclays Bank	Barclays Custom China Real Estate Basket	HKD	26,757	3-Month HKD-HIBOR minus 0.69%	Pay	2/19/14		221
Barclays Bank	MSCI Daily Total Return Net Emerging Markets Index	$	62	3-Month USD-LIBOR minus 0.43%	Receive	3/5/14		(537	)
Goldman Sachs International	Goldman Sachs Custom Miners Index		610	3-Month USD-LIBOR minus 0.53%	Pay	2/13/14		(3	)
Goldman Sachs International	Goldman Sachs Custom Miners Index		5,181	3-Month USD-LIBOR minus 0.53%	Pay	2/13/14		665
Goldman Sachs International	Goldman Sachs Custom Machinery Index		6,925	3-Month USD-LIBOR minus 0.38%	Pay	2/17/14		336
Goldman Sachs International	Goldman Sachs Custom Machinery Index		6,852	3-Month USD-LIBOR minus 0.38%	Pay	2/17/14		(60	)
Goldman Sachs International	Goldman Sachs Custom Machinery Index		446	3-Month USD-LIBOR minus 0.38%	Pay	2/17/14		(3	)
JPMorgan Chase	MSCI Daily Total Return Europe Net Food Beverage & Tobacco Index		6,291	3-Month USD-LIBOR minus 0.22%	Pay	8/26/13		(300	)
JPMorgan Chase	MSCI Daily Total Return Europe Net Household & Personal Products Index		72	3-Month USD-LIBOR minus 0.39%	Pay	8/26/13		(5	)
JPMorgan Chase	MSCI Daily Total Return Europe Net Household & Personal Products Index		803	3-Month USD-LIBOR minus 0.39%	Pay	8/26/13		(57	)
JPMorgan Chase	MSCI China Banks Index	HKD	52,874	3-Month HKD-HIBOR minus 0.25%	Pay	3/7/14		(88	)
							$	966

@    Value is less than $500.

CDOR  Canadian Dealer Offered Rate.

EURIBOR  Euro Interbank Offered Rate.

HIBOR  Honk Kong Interbank Offered Rate.

LIBOR  London Interbank Offered Rate.

NZBBR  New Zealand Bank Bill Rate.

AUD  —  Australian Dollar

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

CLP  —  Chilean Peso

CNY  —  Chinese Yuan Renminbi

CZK  —  Czech Koruna

DKK  —  Danish Krone

EUR  —  Euro

GBP  —  British Pound

HKD  —  Hong Kong Dollar

ILS  —  Israeli Shekel

INR  —  Indian Rupee

JPY  —  Japanese Yen

KRW  —  South Korean Won

MXN  —  Mexican New Peso

MYR  —  Malaysian Ringgit

NOK  —  Norwegian Krone

NZD  —  New Zealand Dollar

PLN  —  Polish Zloty

RUB  —  Russian Ruble

SEK  —  Swedish Krona

SGD  —  Singapore Dollar

THB  —  Thai Baht

TRY  —  Turkish Lira

TWD  —  Taiwan Dollar

USD  —  United States Dollar

ZAR  —  South African Rand

The accompanying notes are an integral part of the financial statements.
24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Common Stocks		55.8	%
Fixed Income Securities		36.8
Other*		7.4
Total Investments		100.0	%**

*  Industries and/or investment types representing less than 5% of total investments.

**  Does not include open long/short futures contracts with an underlying face amount of approximately $284,268,000 and net unrealized appreciation of approximately $1,098,000. Also, does not include open foreign currency exchange contracts with net unrealized appreciation of approximately $49,000 and open swap agreements with net unrealized appreciation of approximately $893,000.

The accompanying notes are an integral part of the financial statements.
25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Global Strategist Portfolio

Statement of Assets and Liabilities	March 28, 2013 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $417,184)	$	439,755
Investment in Securities of Affiliated Issuers, at Value (Cost $14,563)		14,722
Total Investments in Securities, at Value (Cost $431,747)		454,477
Foreign Currency, at Value (Cost $1,053)		1,058
Cash		1,025
Receivable for Variation Margin		6,609
Receivable for Investments Sold		5,616
Interest Receivable		2,142
Unrealized Appreciation on Swap Agreements		2,084
Unrealized Appreciation on Foreign Currency Exchange Contracts		2,063
Dividends Receivable		602
Tax Reclaim Receivable		77
Receivable for Portfolio Shares Sold		34
Receivable from Affiliates		13
Other Assets		38
Total Assets		475,838
Liabilities:
Payable for Investments Purchased		12,796
Due to Broker		2,304
Unrealized Depreciation on Foreign Currency Exchange Contracts		2,014
Unrealized Depreciation on Swap Agreements		1,191
Payable for Portfolio Shares Redeemed		925
Payable for Advisory Fees		410
Payable for Reorganization Expense		290
Payable for Transfer Agent Fees		230
Payable for Swap Agreements Termination		225
Payable for Sub Transfer Agency Fees		93
Payable for Shareholder Services Fees — Class P		4
Payable for Shareholder Services Fees — Class H		68
Payable for Distribution and Shareholder Services Fees — Class L		17
Payable for Trustees' Fees and Expenses		76
Payable for Custodian Fees		38
Payable for Administration Fees		28
Payable for Professional Fees		16
Other Liabilities		108
Total Liabilities		20,833
Net Assets	$	455,005
Net Assets Consist Of:
Paid-in-Capital	$	414,032
Undistributed Net Investment Income		2,197
Accumulated Net Realized Gain		14,043
Unrealized Appreciation (Depreciation) on:
Investments		22,571
Investments in Affiliates		159
Foreign Currency Exchange Contracts		49
Foreign Currency Translations		(37	)
Futures Contracts		1,098
Swap Agreements		893
Net Assets	$	455,005

The accompanying notes are an integral part of the financial statements.
26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Global Strategist Portfolio

Statement of Assets and Liabilities (cont'd)	March 28, 2013 (000)
CLASS I:
Net Assets	$	48,596
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		3,057,528
Net Asset Value, Offering and Redemption Price Per Share	$	15.89
CLASS P:
Net Assets	$	21,132
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		1,334,407
Net Asset Value, Redemption Price Per Share	$	15.84
Maximum Sales Load§§		5.25	%
Maximum Sales Charge	$	0.88
Maximum Offering Price Per Share	$	16.72
CLASS H:
Net Assets	$	355,271
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		22,450,421
Net Asset Value, Redemption Price Per Share	$	15.82
Maximum Sales Load		4.75	%
Maximum Sales Charge	$	0.79
Maximum Offering Price Per Share	$	16.61
CLASS L:
Net Assets	$	30,006
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		1,900,374
Net Asset Value, Offering and Redemption Price Per Share	$	15.79

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

§§  Effective February 25, 2013, the Trustees approved the imposition of a maximum initial sales charge of 5.25% on purchases of Class P shares of the Portfolio.

The accompanying notes are an integral part of the financial statements.
27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Global Strategist Portfolio

Statement of Operations	Six Months Ended March 28, 2013 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $108 of Foreign Taxes Withheld)	$	2,562
Interest from Securities of Unaffiliated Issuers (Net of $—@ Foreign Taxes Withheld)		1,561
Income from Securities Loaned — Net		49
Dividends from Securities of Affiliated Issuers		21
Interest from Securities of Affiliated Issuers		14
Total Investment Income		4,207
Expenses:
Advisory Fees (Note B)		871
Shareholder Services Fees — Class P (Note D)		25
Shareholder Services Fees — Class H (Note D)		372
Distribution and Shareholder Services Fees — Class L (Note D)		100
Custodian Fees (Note F)		172
Administration Fees (Note C)		155
Sub Transfer Agency Fees		97
Professional Fees		72
Pricing Fees		61
Shareholder Reporting Fees		30
Registration Fees		33
Transfer Agency Fees (Note E)		22
Trustees' Fees and Expenses		3
Other Expenses		9
Total Expenses		2,022
Waiver of Advisory Fees (Note B)		(71	)
Rebate from Morgan Stanley Affiliates (Note G)		(20	)
Expense Offset (Note F)		(—	@)
Net Expenses		1,931
Net Investment Income		2,276
Realized Gain (Loss):
Investments Sold		18,894
Investments in Affiliates		565
Foreign Currency Exchange Contracts		(2,674	)
Foreign Currency Transactions		(102	)
Futures Contracts		1,802
Swap Agreements		(2,428	)
Net Realized Gain		16,057
Change in Unrealized Appreciation (Depreciation):
Investments		4,547
Investments in Affiliates		187
Foreign Currency Exchange Contracts		46
Foreign Currency Translations		(40	)
Futures Contracts		1,313
Swap Agreements		830
Net Change in Unrealized Appreciation (Depreciation)		6,883
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		22,940
Net Increase in Net Assets Resulting from Operations	$	25,216

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Global Strategist Portfolio

Statements of Changes in Net Assets	Six Months Ended March 28, 2013R (unaudited) (000)			Year Ended September 30, 2012 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	2,276		$	363
Net Realized Gain		16,057			4,758
Net Change in Unrealized Appreciation (Depreciation)		6,883			3,890
Net Increase in Net Assets Resulting from Operations		25,216			9,011
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(106	)		(369	)
Class P:
Net Investment Income		(53	)		(237	)
Class H:
Net Investment Income		(473	)		(—	@)*
Class L:
Net Investment Income		(43	)		(—	@)*
Total Distributions		(675	)		(606	)
Capital Share Transactions:(1)
Class I:
Subscribed		1,476			1,950
Issued due to a tax-free reorganization		23,950			—
Distributions Reinvested		105			368
Redeemed		(3,033	)		(8,510	)
Class P:
Subscribed		886			1,608
Distributions Reinvested		53			237
Redeemed		(1,161	)		(1,862	)
Class H:
Subscribed		1,666			10	*
Issued due to a tax-free reorganization		367,167			—
Distributions Reinvested		459			—
Redeemed		(33,691	)		—
Class L:
Subscribed		297			10	*
Issued due to a tax-free reorganization		35,288			—
Distributions Reinvested		42			—
Redeemed		(7,305	)		—
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		386,199			(6,189	)
Total Increase in Net Assets		410,740			2,216
Net Assets:
Beginning of Period		44,265			42,049
End of Period (Including Undistributed Net Investment Income of $2,197 and $596)	$	455,005		$	44,265

The accompanying notes are an integral part of the financial statements.
29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Global Strategist Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 28, 2013R (unaudited) (000)			Year Ended September 30, 2012 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		96			135
Shares Issued due to a tax-free reorganization		1,593			—
Shares Issued on Distributions Reinvested		7			27
Shares Redeemed		(198	)		(617	)
Net Increase (Decrease) in Class I Shares Outstanding		1,498			(455	)
Class P:
Shares Subscribed		57			113
Shares Issued on Distributions Reinvested		3			18
Shares Redeemed		(76	)		(134	)
Net Decrease in Class P Shares Outstanding		(16	)		(3	)
Class H:
Shares Subscribed		108			1	*
Shares Issued due to a tax-free reorganization		24,510			—
Shares Issued on Distributions Reinvested		30			—
Shares Redeemed		(2,199	)		—
Net Increase in Class H Shares Outstanding		22,449			1	*
Class L:
Shares Subscribed		18			1	*
Shares Issued due to a tax-free reorganization		2,356			—
Shares Issued on Distributions Reinvested		3			—
Shares Redeemed		(478	)		—
Net Increase in Class L Shares Outstanding		1,899			1	*

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

*  For the period April 27, 2012 through September 30, 2012.

The accompanying notes are an integral part of the financial statements.
30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Global Strategist Portfolio

	Class I
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	15.22		$	12.50		$	12.55		$	11.66		$	11.87		$	14.69
Income (Loss) from Investment Operations:
Net Investment Income†		0.11			0.14			0.18			0.21			0.16			0.38
Net Realized and Unrealized Gain (Loss)		0.61			2.79			(0.02	)		0.91			0.17			(2.84	)
Total from Investment Operations		0.72			2.93			0.16			1.12			0.33			(2.46	)
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		(0.21	)		(0.21	)		(0.23	)		(0.54	)		(0.36	)
Redemption Fees		—			—			—			—			0.00	‡		0.00	‡
Net Asset Value, End of Period	$	15.89		$	15.22		$	12.50		$	12.55		$	11.66		$	11.87
Total Return++		4.80	%#		23.66	%		1.07	%		9.77	%		3.45	%**		(17.02	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	48,596		$	23,756		$	25,192		$	22,706		$	45,567		$	40,799
Ratio of Expenses to Average Net Assets (1)		0.74	%*+††		1.37	%+		1.30	%+††		0.89	%+††		0.67	%+		0.57	%+
Ratio of Net Investment Income to Average Net Assets (1)		1.43	%*+††		1.01	%+		1.35	%+††		1.73	%+††		1.56	%+		2.66	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.02	%		0.01	%		0.01	%		0.04	%		0.05	%
Portfolio Turnover Rate		60	%#		168	%		164	%		176	%		171	%		148	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.78	%*††		N/A			N/A			N/A			N/A			0.58	%+
Net Investment Income to Average Net Assets		1.39	%*††		N/A			N/A			N/A			N/A			2.65	%+

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value as of the last business day of the period.

**  Performance was positively impacted by approximately 0.79% due to the receipt of proceeds from the settlements of class action suits involving primarily two of the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 2.66%.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

The accompanying notes are an integral part of the financial statements.
31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Global Strategist Portfolio

	Class P
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	15.18		$	12.47		$	12.52		$	11.63		$	11.84		$	14.66
Income (Loss) from Investment Operations:
Net Investment Income†		0.08			0.10			0.15			0.18			0.13			0.32
Net Realized and Unrealized Gain (Loss)		0.62			2.79			(0.03	)		0.91			0.17			(2.81	)
Total from Investment Operations		0.70			2.89			0.12			1.09			0.30			(2.49	)
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.18	)		(0.17	)		(0.20	)		(0.51	)		(0.33	)
Redemption Fees		—			—			—			—			0.00	‡		0.00	‡
Net Asset Value, End of Period	$	15.84		$	15.18		$	12.47		$	12.52		$	11.63		$	11.84
Total Return++		4.62	%#		23.33	%		0.83	%		9.52	%		3.15	%**		(17.26	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	21,132		$	20,487		$	16,857		$	17,169		$	18,290		$	32,398
Ratio of Expenses to Average Net Assets (1)		0.99	%*+††		1.64	%+		1.55	%+††		1.14	%+††		1.03	%+		0.90	%+
Ratio of Net Investment Income to Average Net Assets (1)		1.18	%*+††		0.69	%+		1.10	%+††		1.48	%+††		1.27	%+		2.35	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.02	%		0.01	%		0.01	%		0.04	%		0.06	%
Portfolio Turnover Rate		60	%#		168	%		164	%		176	%		171	%		148	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.03	%*††		N/A			N/A			N/A			1.08	%+		0.91	%+
Net Investment Income to Average Net Assets		1.14	%*††		N/A			N/A			N/A			1.22	%+		2.34	%+

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

**  Performance was positively impacted by approximately 0.80% due to the receipt of proceeds from the settlements of class action suits involving primarily two of the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class P shares would have been approximately 2.35%.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

The accompanying notes are an integral part of the financial statements.
32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Global Strategist Portfolio

	Class H
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R(unaudited)			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	15.18		$	14.42
Income from Investment Operations:
Net Investment Income†		0.10			0.01
Net Realized and Unrealized Gain		0.58			0.79
Total from Investment Operations		0.68			0.80
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.04	)
Net Asset Value, End of Period	$	15.82		$	15.18
Total Return++		4.62	%#		5.52	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	355,271		$	11
Ratio of Expenses to Average Net Assets (1)		0.99	%*+††		1.89	%*+
Ratio of Net Investment Income to Average Net Assets (1)		1.18	%*+††		0.21	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.03	%*
Portfolio Turnover Rate		60	%#		168	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.03	%*††		N/A
Net Investment Income to Average Net Assets		1.14	%*††		N/A

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

The accompanying notes are an integral part of the financial statements.
33

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Global Strategist Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R(unaudited)			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	15.15		$	14.42
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		0.06			(0.02	)
Net Realized and Unrealized Gain		0.60			0.78
Total from Investment Operations		0.66			0.76
Distributions from and/or in Excess of:
Net Investment Income		(0.02	)		(0.03	)
Net Asset Value, End of Period	$	15.79		$	15.15
Total Return++		4.37	%#		5.30	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	30,006		$	11
Ratio of Expenses to Average Net Assets (1)		1.49	%*+††		2.39	%*+
Ratio of Net Investment Income (Loss) to Average Net Assets (1)		0.68	%*+††		(0.29	)%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.03	%*
Portfolio Turnover Rate		60	%#		168	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.53	%*††		N/A
Net Investment Income to Average Net Assets		0.64	%*††		N/A

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income (Loss) reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

The accompanying notes are an integral part of the financial statements.
34

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("MSIFT'' or the "Fund'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Fund is comprised of seven separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Global Strategist Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers four classes of shares — Class I, Class P, Class H and Class L.

On October 29, 2012, the Portfolio acquired the net assets of Morgan Stanley Global Strategist Fund ("Global Strategist Fund"), an open-end investment company. Based on the respective valuations as of the close of business on October 26, 2012, pursuant to a Plan of Reorganization approved by the shareholders of Global Strategist Fund on September 27, 2012 ("Reorganization"). The purpose of the transaction was to combine two portfolios managed by Morgan Stanley Investment Management Inc., (the "Adviser") with comparable investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of 1,593,487 Class I shares of the Portfolio at a net asset value of $15.03 for 1,647,817 Class I shares of Global Strategist Fund; 24,510,455 Class H shares of the Portfolio at a net asset value of $14.98 per share for 24,547,727 Class A shares and 974,243 Class B shares of Global Strategist Fund; 2,355,671 Class L shares of the Portfolio at a net asset value of $14.98 for 2,458,244 Class C shares of Global Strategist Fund; The net assets of Global Strategist Fund before the Reorganization were approximately $426,405,000, including unrealized appreciation of approximately $16,468,000 at October 26, 2012. The investment portfolio of Global Strategist Fund, with a fair value of approximately $426,271,000 and identified cost of approximately $407,721,000 on October 26, 2012, was the principal asset acquired by the Portfolio. For financial reporting purposes, assets received and shares issued by the Portfolio were recorded at fair value; however, the cost basis of the investments received from Global Strategist Fund was carried forward to align ongoing reporting of the Portfolio's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the Reorganization, the net assets of the Portfolio were approximately $43,584,000. Immediately after the merger, the net assets of the Portfolio were approximately $469,989,000.

Upon closing of the Reorganization, shareholders of Global Strategist Fund received shares of the Portfolio as follows:

Global Strategist Fund	MSIFT Global Strategist Portfolio
Class I	Class I
Class A	Class H
Class B	Class H
Class C	Class L

Assuming the acquisition had been completed on October 1, 2012, the beginning of the annual reporting period of the Portfolio, the Portfolio's pro forma results of operations for the period ended March 28, 2013, are as follows:

Net investment income(1)	$	6,887,000
Net gain realized and unrealized gain(2)	$	34,010,000
Net increase (decrease) in net assets resulting from operations	$	40,897,000

⁽¹⁾ Approximately $2,276,000 as reported, plus approximately $2,820,000 Global Strategist Fund premerger, plus approximately $1,791,000 of estimated pro-forma eliminated expenses.

⁽²⁾ Approximately $16,057,000 as reported, plus approximately $17,953,000 Global Strategist Fund premerger.

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Global Strategist Fund that have been included in the Portfolio's Statement of Operations since March 28, 2013.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Fund in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

1.  Security Valuation: (1) Bonds and other fixed income securities may be valued according to the broadest and most representative market. In addition, bonds and other fixed income securities may be valued on the basis of prices provided by a pricing service. The prices provided by a pricing service take into account broker-dealer market price quotations for institutional size trading in similar groups of securities, security quality, maturity, coupon and other security characteristics as well as any developments related to the specific securities; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price

35

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

if such exchange reports an official closing price), if there were no sales on a given day, the security is valued at the mean between the last reported bid and asked prices; (3) all other equity portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked prices. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) an equity portfolio security traded on foreign exchanges, the latest reported sales price (or the exchange official closing price if such exchange reports an official closing price) or the mean between the last reported bid and asked prices may be used if there were no sales on a particular day or the latest bid price may be used if only bid prices are available; (5) futures are valued at the latest price published by the commodities exchange on which they trade; (6) swaps are marked-to-market daily based upon quotations from market makers; (7) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees (the "Trustees"). Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (9) short-term debt securities having a maturity date of more than sixty days at the time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61^st day. Short-term debt securities having a maturity

date of sixty days or less at the time of purchase are valued at amortized cost, which approximates fair value.

Under procedures approved by the Trustees, the Fund's Adviser has formed a Valuation Committee. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Trustees. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurements and Disclosures" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for

36

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below.

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Portfolio's investments as of March 28, 2013.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgage	$	—	$	54	$	—	$	54
Agency Fixed Rate Mortgages		—		14,940		—		14,940
Asset-Backed Securities		—		1,498		—		1,498
Collateralized Mortgage Obligations — Agency Collateral Series		—		2,865		—		2,865
Commercial Mortgage-Backed Securities		—		3,982		—		3,982
Corporate Bonds		—		35,125		—		35,125
Mortgages — Other		—		2,162		—		2,162
Municipal Bonds		—		723		—		723
Sovereign		—		95,331		—		95,331
U.S. Treasury Securities		—		10,494		—		10,494
Total Fixed Income Securities		—		167,174		—		167,174
Common Stocks
Aerospace & Defense		2,576		—		—		2,576
Air Freight & Logistics		1,022		—		—		1,022
Airlines		11,225		—		—		11,225
Auto Components		1,637		—		—		1,637
Automobiles		8,139		—		—		8,139
Beverages		4,977		—		—		4,977
Biotechnology		2,278		—		—		2,278
Building Products		1,387		—		—		1,387
Capital Markets		4,850		—		—		4,850
Chemicals		7,039		—		—		7,039
Commercial Banks		26,619		—		—		26,619
Commercial Services & Supplies		1,445		—		—		1,445
Communications Equipment		2,536		—		—		2,536
Computers & Peripherals		4,967		—		—		4,967
Construction & Engineering		1,673		—		—		1,673
Construction Materials		323		—		—		323
Consumer Finance		709		—		—		709
Containers & Packaging		188		—		—		188
Distributors		64		—		—		64
Diversified Consumer Services		113		—		—		113
Diversified Finanancial Services		173		—		—		173
Diversified Financial Services		6,072		—		—		6,072
Diversified Telecommunication Services		8,267		—		—		8,267
Electric Utilities		6,099		—		—		6,099
Electrical Equipment		2,288		—		—		2,288

37

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Electronic Equipment, Instruments & Components	$	1,710	$	—	$	—	$	1,710
Energy Equipment & Services		2,774		—		—		2,774
Food & Staples Retailing		7,505		—		—		7,505
Food Products		6,337		—		—		6,337
Gas Utilities		951		—		—		951
Health Care Equipment & Supplies		2,802		—		—		2,802
Health Care Providers & Services		2,352		—		—		2,352
Health Care Technology		105		—		—		105
Hotels, Restaurants & Leisure		2,734		—		—		2,734
Household Durables		765		—		—		765
Household Products		3,958		—		—		3,958
Independent Power Producers & Energy Traders		145		—		—		145
Industrial Conglomerates		3,066		—		—		3,066
Information Technology Services		3,895		—		—		3,895
Insurance		9,704		—		—		9,704
Internet & Catalog Retail		841		—		—		841
Internet Software & Services		2,171		—		—		2,171
Leisure Equipment & Products		187		—		—		187
Life Sciences Tools & Services		553		—		—		553
Machinery		4,723		—		—		4,723
Marine		357		—		—		357
Media		5,897		—		—		5,897
Metals & Mining		6,724		—		—		6,724
Multi-Utilities		5,915		—		—		5,915
Multi-line Retail		915		—		—		915
Office Electronics		754		—		—		754
Oil, Gas & Consumable Fuels		18,648		—		—		18,648
Paper & Forest Products		885		—		—		885
Personal Products		1,171		—		—		1,171
Pharmaceuticals		14,617		—		—		14,617
Professional Services		1,164		—		—		1,164
Real Estate Investment Trusts (REITs)		4,374		—		—		4,374
Real Estate Management & Development		3,071		—		—		3,071
Road & Rail		3,877		—		—		3,877
Semiconductors & Semiconductor Equipment		2,681		—		—		2,681
Software		4,413		—		—		4,413
Specialty Retail		2,725		—		—		2,725

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Textiles, Apparel & Luxury Goods	$	1,959		$	—		$	—		$	1,959
Thrifts & Mortgage Finance		74			—			—			74
Tobacco		3,410			—			—			3,410
Trading Companies & Distributors		1,845			—			—			1,845
Transportation Infrastructure		534			—			—			534
Wireless Telecommunication Services		3,672			—			—			3,672
Total Common Stocks		253,626			—			—			253,626
Commodity Linked Security		—			14,572			—			14,572
Convertible Preferred Stock		—			—			—	†		—	†
Investment Companies		4,493			—			—			4,493
Short-Term Investments
Investment Company		13,429			—			—			13,429
U.S. Treasury Securities		—			1,183			—			1,183
Total Short-Term Investments		13,429			1,183			—			14,612
Foreign Currency Exchange Contracts		—			2,063			—			2,063
Futures Contracts		1,685			—			—			1,685
Interest Rate Swap Agreements		—			65			—			65
Total Return Swap Agreements		—			2,019			—			2,019
Total Assets		273,233			187,076			—	†		460,309
Liabilities:
Foreign Currency Exchange Contracts		—			(2,014	)		—			(2,014	)
Futures Contracts		(587	)		—			—			(587	)
Interest Rate Swap Agreements		—			(138	)		—			(138	)
Total Return Swap Agreements		—			(1,053	)		—			(1,053	)
Total Liabilities		(587	)		(3,205	)		—			(3,792	)
Total	$	272,646		$	183,871		$	—	†	$	456,517

†  Includes one security which is valued at zero.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of March 28, 2013, the Portfolio did not have any investments transfer between investment levels.

38

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.

	Convertible Preferred Stock (000)
Beginning Balance	$	100
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Change in unrealized appreciation/depreciation		(100	)
Realized gains (losses)		—
Ending Balance	$	—	†
Net change in unrealized appreciation/depreciation from investments still held as of March 28, 2013	$	(100	)

†  Includes one security which is valued at zero.

3.  Foreign Currency Translation and Foreign Investments: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the mean of the bid and ask prices of such currencies against U.S. dollars last quoted by a major bank as follows:

–  investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

–  investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities sold during the period. Accordingly, realized and unrealized foreign currency gains (losses) on investments in securities are included in the reported net realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S. Federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. Federal income tax purposes.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency exchange contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) on the Statement of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations for the period is reflected in the Statement of Operations.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, fluctuations of exchange rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

The net assets of the Portfolio include foreign denominated securities and currency. Changes in currency exchange rates will affect the U.S. Dollar value of and investment income from such securities. Further, at times the Portfolio's investments are focused in a limited number of countries and regions. This focus may further increase the risk of the Portfolio.

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

39

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

Such securities, if any, are identified as fair valued in the Portfolio of Investments.

4.  Structured Investments: The Portfolio invested a portion of its assets in structured investments. A structured investment is a derivative security designed to offer a return linked to a particular underlying security, currency, commodity or market. Structured investments may come in various forms including notes, warrants and options to purchase securities. The Portfolio will typically use structured investments to gain exposure to a permitted underlying security, currency, commodity or market when direct access to a market is limited or inefficient from a tax or cost standpoint. Investments in structured investments involve risks including issuer risk, counterparty risk and market risk. Holders of structured investments bear risks of the underlying investment and are subject to issuer or counterparty risk because the Portfolio is relying on the creditworthiness of such issuer or counterparty and has no rights with respect to the underlying investment. Certain structured investments may be thinly traded or have a limited trading market and may have the effect of increasing the Portfolio's illiquidity to the extent that the Portfolio, at a particular time, may be unable to find qualified buyers for these securities.

5.  Restricted Securities: The Portfolio invests in unregistered or otherwise restricted securities. The term "restricted securities" refers to securities that are unregistered or are held by control persons of the issuer and securities that are subject to contractual restrictions on their resale. As a result, restricted securities may be more difficult to value and the Portfolio may have difficulty disposing of such assets either in a timely manner or for a reasonable price. In order to dispose of an unregistered security, the Portfolio, where it has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the decision is made to sell the security and the time the security is registered so that the Portfolio could sell it. Contractual restrictions on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and acquirer of the securities. The Portfolio would, in either case, bear market risks during that period. Restricted Securities are identified in the Portfolio of Investments.

6.  Derivatives: The Portfolio may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management

or to earn income. Derivatives are financial instruments whose value is based on the value of an underlying asset, interest rate, index or financial instrument. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which they relate, and risks that the transactions may not be liquid. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Portfolio's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and risk for loss. Leverage associated with derivative transactions may cause the Portfolio to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission rules and regulations, or may cause the Portfolio to be more volatile than if the Portfolio had not been leveraged. Although the Adviser seeks to use derivatives to further the Portfolio's investment objectives, there is no assurance that the use of derivatives will achieve this result.

Following is a description of the derivative instruments and techniques that the Portfolio used during the period and their associated risks:

Futures: A futures contract is a standardized agreement between two parties to buy or sell a specific quantity of an underlying instrument at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement

40

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures can be highly volatile, using futures can lower total return, and the potential loss from futures can exceed the Portfolio's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time.

Swaps: An over-the-counter ("OTC") swap agreement is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indexes, reference rates, currencies or other instruments. A small percentage of swap agreements are cleared through a central clearing house. Most swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Portfolio's obligations or rights under a swap agreement entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each counterparty. Most swap agreements are not entered into or traded on exchanges and there is no central clearing or guaranty function for swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Swaps could result in losses if interest rate or foreign currency exchange rates or credit quality changes are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments will require the clearing and exchange-trading of many OTC swap agreements. Mandatory exchange-trading and clearing will occur on a phased-in basis.

When the Portfolio has an unrealized loss on a swap agreement, the Portfolio has instructed the custodian to pledge

cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. Cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities. Cash collateral has been offset against open swap agreements under the provisions of FASB ASC 210 "Balance Sheet" ("ASC 210"). Offsetting of Amounts Related to Certain Contracts, an interpretation of ASC 210-20, are included within "Unrealized Appreciation (Depreciation) on Swap Agreements" in the Statement of Assets and Liabilities. For cash collateral received, the Portfolio pays a monthly fee to the counterparty based on the effective rate for Federal Funds. This fee, when paid, is included within realized gain (loss) on swap agreements in the Statement of Operations.

Foreign Currency Exchange Contracts: In connection with its investments in foreign securities, the Portfolio also entered into contracts with banks, brokers or dealers to purchase or sell foreign currencies at a future date. A foreign currency exchange contract ("currency contracts") is a negotiated agreement between two parties to exchange specified amounts of two or more currencies at a specified future time at a specified rate. The rate specified by the currency contract can be higher or lower than the spot rate between the currencies that are the subject of the contract. Currency contracts may be used to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. In addition, the Portfolio may use cross currency hedging or proxy hedging with respect to currencies in which the Portfolio has or expects to have portfolio or currency exposure. Cross currency hedges involve the sale of one currency against the positive exposure to a different currency and may be used for hedging purposes or to establish an active exposure to the exchange rate between any two currencies. Hedging the Portfolio's currency risks involves the risk of mismatching the Portfolio's objectives under a currency contract with the value of securities denominated in a particular currency. Furthermore, such transactions reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is an additional risk to the effect that currency contracts create exposure to currencies in which the Portfolio's securities are not denominated.

41

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

Unanticipated changes in currency prices may result in poorer overall performance for the Portfolio than if it had not entered into such currency contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Portfolio as unrealized gain or (loss). The Portfolio records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

FASB ASC 815, "Derivatives and Hedging: Overall" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Portfolio uses derivative instruments, how these derivative instruments are accounted for and their effects on the Portfolio's financial position and results of operations.

The following table sets forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 28, 2013.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Exchange Contracts	Unrealized Appreciation on Foreign Currency Exchange Contracts	Currency Risk	$	2,063
Futures Contracts	Variation Margin	Equity Risk		964	(a)
Futures Contracts	Variation Margin	Commodity Risk		383	(a)
Futures Contracts	Variation Margin	Interest Rate Risk		338	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Equity Risk		2,019
Swap Agreements	Unrealized Appreciation on Swap Agreements	Interest Rate Risk		65
Total			$	5,832
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Exchange Contracts	Unrealized Depreciation on Foreign Currency Exchange Contracts	Currency Risk	$	(2,014	)
Futures Contracts	Variation Margin	Equity Risk		(280	)(a)
Futures Contracts	Variation Margin	Interest Rate Risk		(307	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Equity Risk		(1,053	)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Interest Rate Risk		(138	)
Total			$	(3,792	)

(a) This amount represents the cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. The Statement of Assets and Liabilities only reflects the current day's net variation margin.

The following tables set forth by primary risk exposure the Portfolio's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 28, 2013 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Exchange Contracts	$	(2,674	)
Equity Risk	Futures Contracts		2,751
Commodity Risk	Futures Contracts		336
Interest Rate Risk	Futures Contracts		(1,285	)
Equity Risk	Swap Agreements		3,348
Interest Rate Risk	Swap Agreements		(5,776	)
Total		$	(3,300	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Exchange Contracts	$	46
Equity Risk	Futures Contracts		915
Commodity Risk	Futures Contracts		383
Interest Rate Risk	Futures Contracts		15
Equity Risk	Swap Agreements		896
Interest Rate Risk	Swap Agreements		(66	)
Total		$	2,189

For the six months ended March 28, 2013, the average monthly principal amount of foreign currency exchange contracts was approximately $278,941,000, the average monthly original value of futures contracts was approximately $294,486,000 and the average monthly notional amount of swap agreements was approximately $119,007,000.

7.  Securities Lending: The Portfolio lends securities to qualified financial institutions, such as broker-dealers, to earn additional income. Any increase or decrease in the fair value of the securities loaned that might occur and any interest earned or dividends declared on those securities during the term of the loan would remain in the Portfolio. The Portfolio would receive cash or securities as collateral in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily, by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

42

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned-Net" in the Portfolio's Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

At March 28, 2013, the Portfolio did not have any outstanding securities on loan.

8.  When-Issued/Delayed Delivery Securities: The Portfolio purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the Portfolio on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place up to 120 days after the date of the transaction. When the Portfolio enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral in an amount at least equal in value to the Portfolio's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower than the agreed upon purchase price, in which case there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Portfolio.

9.  Indemnifications: The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

10.  Dividends and Distributions to Shareholders: Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

11.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

12.  Other: The Portfolio owns shares of real estate investment trusts ("REITs") which report information on the source of their distributions annually in the following calendar year. A portion of distributions received from REITs during the period is estimated to be a return of capital and is recorded as a reduction of their cost.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Portfolio with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.45% of the average daily net assets of the Portfolio. For the period ended March 28, 2013, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.40% of the Portfolio's net assets.

Effective October 29, 2012, the Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.74% for Class I shares, 0.99% for Class P shares, 0.99% for Class H

43

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

shares and 1.49% for Class L shares. The fee waivers and/or expense reimbursements will continue for at least two years from the date of reorganization or until such time as the Fund's Board of Trustees acts to discontinue all or a portion of such waivers and/or expense reimbursements when it deems that such action is appropriate. For the six months ended March 28, 2013, approximately $71,000 of advisory fees were waived pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street, State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted Shareholder Services Plans with respect to Class P and Class H shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plans, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class P and Class H shares.

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.50% and a shareholder service fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class L shares.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class P, Class H and Class L shares.

E. Dividend Disbursing and Transfer Agent: The Fund's dividend disbursing and transfer agent is Morgan Stanley

Services Company Inc. ("Morgan Stanley Services"). Pursuant to a Transfer Agency Agreement, the Fund pays Morgan Stanley Services a fee based on the number of classes, accounts and transactions relating to the Portfolios of the Fund.

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Fund in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Fund as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

The Fund has entered into an arrangement with its Custodian whereby credits realized on uninvested cash balances may be used to offset a portion of the Portfolio's expenses. If applicable, these custodian credits are shown as "Expense Offset" in the Statement of Operations.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 28, 2013, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $144,367,000 and $168,087,000, respectively. For the six months ended March 28, 2013, purchases and sales of long-term U.S. Government securities were approximately $74,561,000 and $82,824,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly, and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 28, 2013, advisory fees paid were reduced by approximately $19,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 28, 2013 is as follows:

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 28, 2013 (000)
$	9,003	$	188,269	$	183,843	$	20	$	13,429

44

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

The Portfolio invests in Morgan Stanley Institutional Fund, Inc. — Emerging Markets Portfolio ("Emerging Markets Portfolio"), an open-end management investment company advised by an affiliate of the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Emerging Markets Portfolio. For the six months ended March 28, 2013, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Emerging Markets Portfolio. The Emerging Markets Portfolio has a cost basis of approximately $121,000 at March 28, 2013.

A summary of the Portfolio's transactions in shares of the Emerging Markets Portfolio during the six months ended March 28, 2013 is as follows:

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 28, 2013 (000)
$	109	$	1	$	—	$	1	$	116

For the six months ended March 28, 2013, the Portfolio had transactions with Citigroup, Inc., and its affiliated broker-dealers which may be deemed affiliates of the Adviser, Administrator and Distributor under Section 17 of the Act.

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Realized Gain (000)		Dividend/ Interest Income (000)		Value March 28, 2013 (000)
$	222	$	1,089	$	3,476	$	565	$	14	$	1,177

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

H. Federal Income Taxes: It is the Portfolio's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for Federal income taxes is required in the financial statements.

Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recognized on the accrual basis. Dividends from net investment income, if

any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

The Portfolio may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10 "Income Taxes — Overall" sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended September 30, 2012, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal 2012 and 2011 was as follows:

2012 Distributions Paid From: Ordinary Income (000)		2011 Distributions Paid From: Ordinary Income (000)
$	606	$	685

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, foreign futures transactions, basis adjustments for swap transactions, paydown adjustments and tax adjustments on passive foreign

45

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

investment companies sold by the Portfolio, resulted in the following reclassifications among the components of net assets at September 30, 2012:

Accumulated Undistributed Net Investment Income (000)		Accumulated Net Realized Loss (000)			Paid-in Capital (000)
$	511	$	(428	)	$	83

At September 30, 2012, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	605	$	—

At March 28, 2013, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $41,273,000 and the aggregate gross unrealized depreciation is approximately $18,543,000 resulting in net unrealized appreciation of approximately $22,730,000.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Modernization Act") was signed into law. The Modernization Act modernizes several tax provisions related to Regulated Investment Companies ("RICs") and their shareholders. One key change made by the Modernization Act is that capital losses will generally retain their character as short-term or long-term and may be carried forward indefinitely to offset future gains. These losses are utilized before other capital loss carryforwards that expire. Generally, the Modernization Act is effective for taxable years beginning after December 22, 2010.

At September 30, 2012, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	1,809	September 30, 2018

To the extent that capital loss carryforwards are used to offset any future capital gains realized during the carryover period as provided by U.S. Federal income tax regulations, no capital gains tax liability will be incurred by the Portfolio for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders. During the year ended September 30, 2012, the Portfolio utilized capital loss carryforwards for U.S. Federal income tax purposes of approximately $4,133,000.

I. Other: At March 28, 2013, the Portfolio had otherwise unaffiliated record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Portfolio. The aggregate percentage of such owners was 29.5% and 96.6%, for Class I and Class P, respectively.

J. Accounting Pronouncement: In January 2013, Accounting Standard Update 2013-01 ("ASU 2013-01"), "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," replaced Accounting Standards Update 2011-11 ("ASU 2011-11"), "Disclosures about Offsetting Assets and Liabilities." ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact, if any, on the Portfolio's financial statements.

46

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

We are required by federal law to provide you with notice of our U.S. privacy policy ("Policy"). This Policy applies to both our current and former clients unless we state otherwise and is intended for individual clients who purchase products or receive services from us for personal, family or household purposes. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders, nor is this Policy applicable to individuals who are either beneficiaries of a trust for which we serve as trustee or participants in an employee benefit plan administered or advised by us. This Policy is, however, applicable to individuals who select us to be a custodian of securities or assets in individual retirement accounts, 401(k) accounts, or accounts subject to the Uniform Gifts to Minors Act.

This notice sets out our business practices to protect your privacy; how we collect and share personal information about you; and how you can limit our sharing or certain uses by others of this information. We may amend this Policy at any time, and will inform you of any changes to our Policy as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information and understand your concerns about your information. We strive to safeguard the information our clients entrust to us. Protecting the confidentiality and security of client information is an important part of how we conduct our business.

This notice describes what personal information we collect about you, how we collect it, when we may share it with others, and how certain others may use it. It discusses the steps you may take to limit our sharing of certain information about you with our affiliated companies, including, but not limited to our affiliated banking businesses, brokerage firms and credit service affiliates. It also discloses how you may limit our affiliates' use of shared information for marketing purposes.

Throughout this Policy, we refer to the nonpublic information that personally identifies you as "personal information." We also use the term "affiliated company" in this notice. An affiliated company is a company in our family of companies and includes companies with the Morgan Stanley name. These affiliated companies are financial institutions such as broker-dealers, banks, investment advisers and credit card issuers. We refer to any company that is not an affiliated company as a nonaffiliated third party. For purposes of Section 5 of this notice, and your ability to limit certain uses of personal information by our affiliates, this notice applies to the use of personal information by our affiliated companies.

1.  WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

We may collect the following types of information about you: (i) information provided by you, including information from applications and other forms we receive from you, (ii) information about your transactions with us or our affiliates, (iii) information about your transactions with nonaffiliated third parties, (iv) information from consumer reporting agencies, (v) information obtained from our websites, and (vi) information obtained from other sources. For example:

•  We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

•  We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources.

•  We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

•  We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2.  WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

a. Information we disclose to affiliated companies.

We may disclose personal information that we collect about you to our affiliated companies to manage your account(s) effectively, to service and process your transactions, and to let you know about products and services offered by us and affiliated companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from affiliated companies are developed under conditions designed to safeguard your personal information.

b. Information we disclose to third parties.

We may disclose personal information that we collect about you to nonaffiliated third parties to provide marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. We may also disclose all of the information we collect to other nonaffiliated third parties for our everyday business purposes, such as to process transactions, maintain account(s), respond to court orders and legal investigations, report to credit bureaus, offer our own products and services, protect against fraud, for institutional risk control, to perform services on our behalf, and as otherwise required or permitted by law.

When we share personal information about you with a nonaffiliated third party, they are required to limit their use of personal information about you to the particular purpose for which it was shared and they are not allowed to share personal information about you with others except to fulfill that limited purpose or as may be permitted or required by law.

3.  HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We maintain physical, electronic and procedural security measures that comply with applicable law and regulations to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information by employees. Third parties that provide support or marketing services on our behalf may also receive personal information about you, and we require them to adhere to appropriate security standards with respect to such information.

4.  HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

By following the opt-out procedures in Section 6 below, you may limit the extent to which we share with our affiliated companies, personal information that was collected to determine your eligibility for products and services such as your credit reports and other information that you have provided to us or that we may obtain from third parties ("eligibility information"). Eligibility information does not include your identification information or personal information pertaining to our transactions or experiences with you. Please note that, even if you direct us not to share eligibility information with our affiliated companies, we may still share your personal information, including eligibility information, with our affiliated companies under circumstances that are permitted under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit our affiliated companies from marketing their products or services to you based on personal information we disclose to them. This information may include, for example, your income and account history with us. Please note that, even if you choose to limit our affiliated companies from using personal information about you that we may share with them for marketing their products and services to you, our affiliated companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the affiliated party has its own relationship with you.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

6.  HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

If you wish to limit our sharing of eligibility information about you with our affiliated companies, or our affiliated companies' use of personal information for marketing purposes, as described in this notice, you may do so by:

•  Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 5p.m. (EST)

•  Writing to us at the following address:

  Morgan Stanley Services Company Inc.
c/o Privacy Coordinator
201 Plaza Two, 3rd Floor
Jersey City, New Jersey 07311

If you choose to write to us, your request should include: your name, address, telephone number and account number(s) to which the opt-out applies and whether you are opting out with respect to sharing of eligibility information (Section 4 above), or information used for marketing (Section 5 above), or both. Written opt-out requests should not be sent with any other correspondence. In order to process your request, we require that the request be provided by you directly and not through a third party. Once you have informed us about your privacy preferences, your opt-out preference will remain in effect with respect to this Policy (as it may be amended) until you notify us otherwise. If you are a joint account owner, we will accept instructions from any one of you and apply those instructions to the entire account.

Please understand that if you limit our sharing or our affiliated companies' use of personal information, you and any joint account holder(s) may not receive information about our affiliated companies' products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

If you have more than one account or relationship with us, please specify the accounts to which you would like us to apply your privacy choices. If you have accounts or relationships with our affiliates, you may receive multiple privacy policies from them, and will need to separately notify those companies of your privacy choices for those accounts or relationships.

7.  WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

If, at any time in the future, an affiliated company becomes a nonaffiliated third party, further disclosures of personal information made to the former affiliated company will be limited to those described in Section 2(b) above relating to nonaffiliated third parties. If you elected under Section 6 to limit disclosures we make to affiliated companies, or use of personal information by affiliated companies, your election will not apply to use by any former affiliated company of your personal information in their possession once it becomes a nonaffiliated third party.

SPECIAL NOTICE TO RESIDENTS OF VERMONT

The following section supplements our Policy with respect to our individual clients who have a Vermont address and supersedes anything to the contrary in the above Policy with respect to those clients only.

The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with nonaffiliated third parties, or eligibility information with affiliated companies, other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or eligibility information with affiliated companies, unless you provide us with your written consent to share such information.

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

The following section supplements our Policy with respect to our individual clients who have a California address and supersedes anything to the contrary in the above Policy with respect to those clients only.

In response to a California law, if your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Trustee and Officer Information (unaudited)

Trustees

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

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

Morgan Stanley Services Company Inc.
P.O. Box 219804
Kansas City, Missouri 64121

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

Arthur Lev
President and Principal Executive Officer

Mary Ann Picciotto
Chief Compliance Officer

Stefanie V. Chang Yu
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its semi-annual and annual reports within 60 days of the end of the fund's second and fourth fiscal quarters by filing the schedule electronically with the Securities and Exchange Commission (SEC). The semi-annual reports are filed on Form N-CSRS and the annual reports are filed on Form N-CSR. Morgan Stanley also delivers the semi-annual and annual reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im. Each Morgan Stanley fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters on Form N-Q. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Morgan Stanley public website. You may, however, obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You may also review and copy them at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling the SEC toll free at 1 (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov) or by writing the Public Reference Room of the SEC, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Fund's Proxy Voting Policy and Procedures and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus of the Morgan Stanley Institutional Fund Trust which describes in detail each Investment Portfolio's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Portfolio, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

53

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2013 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTGSSAN
656577 EXP [05-31-14]

INVESTMENT MANAGEMENT

Morgan Stanley
Institutional Fund Trust

Mid Cap Growth Portfolio

Semi-Annual
Report

March 28, 2013

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	6
Statement of Operations	8
Statements of Changes in Net Assets	9
Financial Highlights	11
Notes to Financial Statements	15
U.S. Privacy Policy	24
Trustee and Officer Information	29

This report is authorized for distribution only when preceded or accompanied by prospectuses of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or SAI, which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations, and describes in detail each of the Portfolio's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access portfolio information including performance, characteristics, and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im.

Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Portfolio in the future. There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that market values of securities owned by the Portfolio will decline and, therefore, the value of the Portfolio's shares may be less than what you paid for them. Accordingly, you can lose money investing in Portfolios. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Semi-Annual report, in which you will learn how your investment in Mid Cap Growth Portfolio performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

Arthur Lev
President and Principal Executive Officer

April 2013

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Expense Example (unaudited)

Mid Cap Growth Portfolio

As a shareholder of the Portfolio, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, including advisory fees, administration fees, distribution and shareholder services fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 28, 2013 and held for the entire six-month period.

Actual Expenses

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

Please note that "Actual Expenses Paid During Period" are grossed up to reflect Portfolio expenses prior to the effect of Expense Offset (See Note F in the Notes to Financial Statements). Therefore, the annualized net expense ratios may differ from the ratio of expenses to average net assets shown in the Financial Highlights.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/12		Actual Ending Account Value 3/28/13		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Mid Cap Growth Portfolio Class I	$	1,000.00	$	1,114.20	$	1,021.09	$	3.63	$	3.47		0.70	%
Mid Cap Growth Portfolio Class P		1,000.00		1,112.90		1,019.86		4.92		4.71		0.95
Mid Cap Growth Portfolio Class H		1,000.00		1,112.80		1,019.86		4.92		4.71		0.95
Mid Cap Growth Portfolio Class L		1,000.00		1,109.90		1,017.41		7.50		7.17		1.45

*  Expenses are calculated using each Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 179/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments

Mid Cap Growth Portfolio

	Shares		Value (000)
Common Stocks (97.6%)
Advertising Agencies (0.6%)
Aimia, Inc. (Canada)		2,662,716	$	40,366
Alternative Energy (2.5%)
Range Resources Corp.		1,941,375		157,329
Asset Management & Custodian (0.8%)
Greenhill & Co., Inc.		983,364		52,492
Automobiles (1.1%)
Tesla Motors, Inc. (a)		1,808,540		68,526
Beverage: Brewers & Distillers (2.9%)
DE Master Blenders 1753 N.V. (Netherlands) (a)		11,652,728		179,992
Beverage: Soft Drinks (1.4%)
Monster Beverage Corp. (a)		1,831,988		87,459
Biotechnology (3.0%)
Illumina, Inc. (a)		3,546,888		191,532
Cement (2.5%)
Martin Marietta Materials, Inc.		1,534,293		156,529
Chemicals: Diversified (2.8%)
Intrepid Potash, Inc.		732,210		13,736
Rockwood Holdings, Inc.		2,467,627		161,482
				175,218
Commercial Services (6.5%)
Gartner, Inc. (a)		3,187,726		173,444
Intertek Group PLC (United Kingdom)		1,823,499		94,011
MercadoLibre, Inc. (Brazil)		785,069		75,806
Weight Watchers International, Inc.		1,502,308		63,262
				406,523
Communications Technology (3.9%)
Motorola Solutions, Inc.		3,781,970		242,160
Computer Services, Software & Systems (17.2%)
Akamai Technologies, Inc. (a)		4,295,325		151,582
IHS, Inc., Class A (a)		1,515,526		158,706
LinkedIn Corp., Class A (a)		979,345		172,423
Qihoo 360 Technology Co., Ltd. ADR (China) (a)		1,544,459		45,762
Salesforce.com, Inc. (a)		957,902		171,302
ServiceNow, Inc. (a)		958,857		34,711
SINA Corp. (China) (a)		546,310		26,545
Solera Holdings, Inc.		3,939,313		229,780
Workday, Inc. (a)		743,692		45,834
Zynga, Inc., Class A (a)		12,859,870		43,209
				1,079,854
Computer Technology (3.6%)
Dropbox, Inc. (a)(b)(c) (acquisition cost — $33,908; acquired 5/1/12)		3,747,173		35,448
Yandex N.V., Class A (Russia) (a)		5,550,627		128,330
Youku Tudou, Inc. ADR (China) (a)		3,799,326		63,715
				227,493
Consumer Lending (1.6%)
IntercontinentalExchange, Inc. (a)		622,532		101,516

	Shares		Value (000)
Consumer Services: Miscellaneous (1.6%)
Qualicorp SA (Brazil) (a)		9,905,176	$	99,554
Diversified Media (1.8%)
McGraw-Hill Cos., Inc. (The)		2,118,107		110,311
Diversified Retail (4.2%)
Dollar Tree, Inc. (a)		3,363,508		162,895
Groupon, Inc. (a)		13,765,430		84,244
TripAdvisor, Inc. (a)		267,282		14,038
				261,177
Education Services (1.1%)
New Oriental Education & Technology Group ADR (China)		3,940,367		70,927
Electronic Components (2.5%)
3D Systems Corp. (a)		956,212		30,828
Sensata Technologies Holding N.V. (a)		1,926,775		63,333
Trimble Navigation Ltd. (a)		2,070,046		62,019
				156,180
Electronic Entertainment (0.6%)
Splunk, Inc. (a)		969,151		38,795
Entertainment (1.0%)
Legend Pictures LLC Ltd. (a)(b)(c) (acquisition cost — $38,812; acquired 3/8/12)		36,302		61,114
Financial Data & Systems (5.5%)
MSCI, Inc. (a)		4,643,831		157,565
Verisk Analytics, Inc., Class A (a)		3,009,294		185,463
				343,028
Foods (0.6%)
McCormick & Co., Inc.		481,816		35,438
Health Care Services (5.2%)
athenahealth, Inc. (a)		1,673,480		162,394
Stericycle, Inc. (a)		1,523,967		161,815
				324,209
Hotel/Motel (0.9%)
Wyndham Worldwide Corp.		899,494		57,999
Insurance: Property-Casualty (4.4%)
Arch Capital Group Ltd. (a)		2,280,042		119,862
Progressive Corp. (The)		6,282,546		158,760
				278,622
Medical & Dental Instruments & Supplies (0.2%)
Techne Corp.		231,809		15,728
Medical Equipment (2.0%)
Intuitive Surgical, Inc. (a)		256,009		125,749
Pharmaceuticals (2.6%)
Ironwood Pharmaceuticals, Inc. (a)		3,356,008		61,381
Mead Johnson Nutrition Co.		1,293,489		100,181
				161,562
Publishing (1.5%)
Morningstar, Inc.		1,341,876		93,824

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

	Shares		Value (000)
Recreational Vehicles & Boats (3.7%)
Edenred (France)		7,023,905	$	229,862
Restaurants (1.5%)
Dunkin' Brands Group, Inc.		2,526,478		93,176
Scientific Instruments: Pollution Control (1.3%)
Covanta Holding Corp.		4,179,378		84,214
Semiconductors & Components (1.0%)
First Solar, Inc. (a)		2,432,129		65,570
Textiles Apparel & Shoes (0.8%)
Coach, Inc.		958,047		47,893
Utilities: Electrical (3.2%)
Brookfield Infrastructure Partners LP (Canada)		5,286,581		201,207
Total Common Stocks (Cost $4,931,326)				6,123,128
Convertible Preferred Stocks (0.9%)
Alternative Energy (0.0%)
Better Place, Inc. (a)(b)(c) (acquisition cost — $24,070; acquired 1/25/10)		9,628,165		—
Better Place, Inc. Series C (a)(b)(c) (acquisition cost — $12,698; acquired 11/14/11)		2,796,975		—
				—
Communications Technology (0.0%)
Peixe Urbano, Inc. (Brazil) (a)(b)(c) (acquisition cost — $18,817; acquired 12/2/11)		571,575		1,212
Computer Services, Software & Systems (0.8%)
Workday, Inc. (a)(b)(c) (acquisition cost — $11,237; acquired 10/12/11)		847,422		51,354
Computer Technology (0.1%)
Dropbox, Inc. Series A (a)(b)(c) (acquisition cost — $3,365; acquired 5/25/12)		371,814		3,517
Total Convertible Preferred Stocks (Cost $70,187)				56,083
Preferred Stock (0.2%)
Computer Services, Software & Systems (0.2%)
Palantir Technologies, Inc. Series G (a)(b)(c) (acquisition cost — $11,738; acquired 7/19/12) (Cost $11,738)		3,835,908		11,738
Short-Term Investment (1.4%)
Investment Company (1.4%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $87,414)		87,413,948		87,414
Total Investments (100.1%) (Cost $5,100,665)				6,278,363
Liabilities in Excess of Other Assets (-0.1%)				(6,489	)
Net Assets (100.0%)			$	6,271,874

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

(a)  Non-income producing security.

(b)  At March 28, 2013, the Portfolio held fair valued securities valued at approximately $164,383,000, representing 2.6% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund's Trustees.

(c)  Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Portfolio has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities (excluding 144A holdings) at period-end March 28, 2013 amounts to approximately $164,383,000 and represents 2.6% of net assets.

ADR  American Depositary Receipt.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		64.7	%
Computer Services, Software & Systems		18.2
Commercial Services		6.5
Financial Data & Systems		5.4
Health Care Services		5.2
Total Investments		100.0	%

*  Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Mid Cap Growth Portfolio

Statement of Assets and Liabilities	March 28, 2013 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $5,013,251)	$	6,190,949
Investment in Security of Affiliated Issuer, at Value (Cost $87,414)		87,414
Total Investments in Securities, at Value (Cost $5,100,665)		6,278,363
Foreign Currency, at Value (Cost $356)		357
Cash		3,193
Receivable for Investments Sold		23,348
Receivable for Portfolio Shares Sold		3,625
Dividends Receivable		2,819
Tax Reclaim Receivable		1,033
Receivable from Affiliate		14
Other Assets		209
Total Assets		6,312,961
Liabilities:
Payable for Portfolio Shares Redeemed		19,077
Payable for Investments Purchased		10,079
Payable for Advisory Fees		7,350
Payable for Sub Transfer Agency Fees		2,451
Payable for Shareholder Services Fees — Class P		342
Payable for Shareholder Services Fees — Class H		48
Payable for Distribution and Shareholder Services Fees — Class L		9
Payable for Administration Fees		384
Payable for Reorganization Expense		268
Payable for Transfer Agent Fees		195
Payable for Custodian Fees		54
Payable for Professional Fees		51
Payable for Trustees' Fees and Expenses		30
Other Liabilities		749
Total Liabilities		41,087
Net Assets	$	6,271,874
Net Assets Consist Of:
Paid-in-Capital	$	5,110,283
Undistributed Net Investment Income		1,632
Accumulated Net Realized Loss		(17,689	)
Unrealized Appreciation (Depreciation) on:
Investments		1,177,698
Foreign Currency Translations		(50	)
Net Assets	$	6,271,874

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Mid Cap Growth Portfolio

Statement of Assets and Liabilities (cont'd)	March 28, 2013 (000)
CLASS I:
Net Assets	$	4,215,119
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		111,092,566
Net Asset Value, Offering and Redemption Price Per Share	$	37.94
CLASS P:
Net Assets	$	1,788,981
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		49,065,855
Net Asset Value, Redemption Price Per Share	$	36.46
Maximum Sales Load§§		5.25	%
Maximum Sales Charge	$	2.02
Maximum Offering Price Per Share	$	38.48
CLASS H:
Net Assets	$	251,484
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		6,898,471
Net Asset Value, Redemption Price Per Share	$	36.45
Maximum Sales Load		4.75	%
Maximum Sales Charge	$	1.82
Maximum Offering Price Per Share	$	38.27
CLASS L:
Net Assets	$	16,290
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		448,338
Net Asset Value, Offering and Redemption Price Per Share	$	36.33

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

§§  Effective February 25, 2013, the Trustees approved the imposition of a maximum initial sales charge of 5.25% on purchases of Class P shares of the Portfolio.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Mid Cap Growth Portfolio

Statement of Operations	Six Months Ended March 28, 2013 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $62 of Foreign Taxes Withheld)	$	37,474
Dividends from Security of Affiliated Issuer		116
Interest from Securities of Unaffiliated Issuers		—	@
Total Investment Income		37,590
Expenses:
Advisory Fees (Note B)		14,963
Sub Transfer Agency Fees		2,569
Shareholder Services Fees — Class P (Note D)		2,150
Shareholder Services Fees — Class H (Note D)		255
Distribution and Shareholder Services Fees — Class L (Note D)		51
Administration Fees (Note C)		2,394
Shareholder Reporting Fees		378
Custodian Fees (Note F)		186
Registration Fees		111
Transfer Agency Fees (Note E)		74
Trustees' Fees and Expenses		48
Professional Fees		36
Pricing Fees		4
Other Expenses		72
Total Expenses		23,291
Rebate from Morgan Stanley Affiliate (Note G)		(122	)
Expense Offset (Note F)		(—	@)
Net Expenses		23,169
Net Investment Income		14,421
Realized Gain:
Investments Sold		17,266
Foreign Currency Transactions		51
Net Realized Gain		17,317
Change in Unrealized Appreciation (Depreciation):
Investments		632,934
Foreign Currency Translations		(22	)
Net Change in Unrealized Appreciation (Depreciation)		632,912
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		650,229
Net Increase in Net Assets Resulting from Operations	$	664,650

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Mid Cap Growth Portfolio

Statements of Changes in Net Assets	Six Months Ended March 28, 2013R (unaudited) (000)			Year Ended September 30, 2012 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	14,421		$	24,324
Net Realized Gain		17,317			123,863
Net Change in Unrealized Appreciation		632,912			484,234
Net Increase in Net Assets Resulting from Operations		664,650			632,421
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(13,404	)		—
Net Realized Gain		(133,898	)		(211,942	)
Class P:
Net Investment Income		(4,830	)		—
Net Realized Gain		(59,176	)		(135,932	)
Class H:
Net Investment Income		(731	)		—
Net Realized Gain		(8,367	)		—
Class L:
Net Investment Income		(35	)		—
Net Realized Gain		(564	)		—
Total Distributions		(221,005	)		(347,874	)
Capital Share Transactions:(1)
Class I:
Subscribed		375,703			931,545
Issued due to a tax-free reorganization		2,947			—
Distributions Reinvested		139,068			199,699
Redeemed		(818,268	)		(903,032	)
Class P:
Subscribed		116,756			257,000
Distributions Reinvested		63,274			110,582
Redeemed		(344,540	)		(1,221,346	)
Class H:
Subscribed		9,263			10	*
Issued due to a tax-free reorganization		241,247			—
Distributions Reinvested		8,784			—
Redeemed		(32,236	)		—
Class L:
Subscribed		101			10	*
Issued due to a tax-free reorganization		16,919			—
Distributions Reinvested		581			—
Redeemed		(2,921	)		—
Net Decrease in Net Assets Resulting from Capital Share Transactions		(223,322	)		(625,532	)
Total Increase (Decrease) in Net Assets		220,323			(340,985	)
Net Assets:
Beginning of Period		6,051,551			6,392,536
End of Period (Including Accumulated Undistributed Net Investment Income of $1,632 and $6,211)	$	6,271,874		$	6,051,551

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Mid Cap Growth Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 28, 2013R (unaudited) (000)			Year Ended September 30, 2012 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		10,478			26,034
Shares Issued due to a tax-free reorganization		86			—
Shares Issued on Distributions Reinvested		4,036			6,154
Shares Redeemed		(22,915	)		(25,613	)
Net Increase (Decrease) in Class I Shares Outstanding		(8,315	)		6,575
Class P:
Shares Subscribed		3,406			7,474
Shares Issued on Distributions Reinvested		1,909			3,531
Shares Redeemed		(10,089	)		(36,891	)
Net Decrease in Class P Shares Outstanding		(4,774	)		(25,886	)
Class H:
Shares Subscribed		274			—	@@*
Shares Issued due to a tax-free reorganization		7,299			—
Shares Issued on Distributions Reinvested		265			—
Shares Redeemed		(940	)		—
Net Increase in Class H Shares Outstanding		6,898			—	@@*
Class L:
Shares Subscribed		3			—	@@*
Shares Issued due to a tax-free reorganization		513			—
Shares Issued on Distributions Reinvested		18			—
Shares Redeemed		(86	)		—
Net Increase in Class L Shares Outstanding		448			—	@@*

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@@  Amount is less than 500 shares.

*  For the period June 14, 2012 through September 30, 2012.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Mid Cap Growth Portfolio

	Class I
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	35.34		$	33.65		$	33.58		$	26.96		$	23.99		$	33.68
Income (Loss) from Investment Operations:
Net Investment Income†		0.10			0.17			0.03			0.11			0.03			0.05	^^
Net Realized and Unrealized Gain (Loss)		3.80			3.35			0.14			6.52			2.94			(9.58	)
Total from Investment Operations		3.90			3.52			0.17			6.63			2.97			(9.53	)
Distributions from and/or in Excess of:
Net Investment Income		(0.12	)		—			(0.10	)		(0.01	)		—			(0.16	)
Net Realized Gain		(1.18	)		(1.83	)		—			—			—			—
Total Distributions		(1.30	)		(1.83	)		(0.10	)		(0.01	)		—			(0.16	)
Redemption Fees		—			—			—			—			0.00	‡		0.00	‡
Net Asset Value, End of Period	$	37.94		$	35.34		$	33.65		$	33.58		$	26.96		$	23.99
Total Return++		11.42	%#		10.91	%		0.47	%		24.58	%		12.38	%**		(28.42	)%^^
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,215,119		$	4,219,528		$	3,797,139		$	3,012,006		$	2,005,809		$	1,609,506
Ratio of Expenses to Average Net Assets		0.70	%*+††		0.71	%+		0.69	%+††		0.68	%+††		0.69	%+		0.63	%+
Ratio of Net Investment Income to Average Net Assets		0.56	%*+††		0.48	%+		0.07	%+††		0.38	%+††		0.16	%+		0.17	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%§		0.01	%		0.01	%		0.01	%		0.00	%§
Portfolio Turnover Rate		23	%#		26	%		35	%		23	%		27	%		37	%

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

^^  During the year, the Portfolio received a regulatory settlement from an unaffiliated third-party, which had an impact of less than $0.005 on net investment income per share and less than 0.005% on the total return for Class I.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

**  Performance was positively impacted by approximately 0.04% due to the receipt of proceeds from the settlements of class action suits involving primarily two of the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 12.34%.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Mid Cap Growth Portfolio

	Class P
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	34.03		$	32.55		$	32.51		$	26.15		$	23.33		$	32.78
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		0.05			0.06			(0.07	)		0.04			(0.02	)		(0.02	)^^
Net Realized and Unrealized Gain (Loss)		3.66			3.25			0.15			6.32			2.84			(9.34	)
Total from Investment Operations		3.71			3.31			0.08			6.36			2.82			(9.36	)
Distributions from and/or in Excess of:
Net Investment Income		(0.10	)		—			(0.04	)		—			—			(0.09	)
Net Realized Gain		(1.18	)		(1.83	)		—			—			—			—
Total Distributions		(1.28	)		(1.83	)		(0.04	)		—			—			(0.09	)
Redemption Fees		—			—			—			—			0.00	‡		0.00	‡
Net Asset Value, End of Period	$	36.46		$	34.03		$	32.55		$	32.51		$	26.15		$	23.33
Total Return++		11.29	%#		10.62	%		0.22	%		24.32	%		12.04	%**		(28.59	)%^^
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,788,981		$	1,832,003		$	2,595,397		$	2,465,552		$	1,567,302		$	1,236,945
Ratio of Expenses to Average Net Assets (1)		0.95	%*+††		0.96	%+		0.94	%+††		0.93	%+††		0.96	%+		0.88	%+
Ratio of Net Investment Income (Loss) to Average Net Assets (1)		0.31	%*+††		0.17	%+		(0.18	)%+††		0.13	%+††		(0.11	)%+		(0.07	)%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%§		0.01	%		0.01	%		0.01	%		0.00	%§
Portfolio Turnover Rate		23	%#		26	%		35	%		23	%		27	%		37	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		N/A			N/A			N/A			N/A			N/A			0.89	%+
Net Investment Income to Average Net Assets		N/A			N/A			N/A			N/A			N/A			(0.08	)%+

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

^^  During the year, the Portfolio received a regulatory settlement from an unaffiliated third-party, which had an impact of less than $0.005 on net investment income per share and less than 0.005% on total returns for Class P.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

**  Performance was positively impacted by approximately 0.04% due to the receipt of proceeds from the settlements of class action suits involving primarily two of the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class P shares would have been approximately 12.00%.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income (Loss) reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Mid Cap Growth Portfolio

	Class H
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R (unaudited)			Period from June 14, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	34.03		$	32.87
Income from Investment Operations:
Net Investment Income†		0.05			0.10
Net Realized and Unrealized Gain		3.65			1.06
Total from Investment Operations		3.70			1.16
Distributions from and/or in Excess of:
Net Investment Income		(0.10	)		—
Net Realized Gain		(1.18	)		—
Total Distributions		(1.28	)		—
Net Asset Value, End of Period	$	36.45		$	34.03
Total Return++		11.28	%#		3.50	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	251,484		$	10
Ratio of Expenses to Average Net Assets		0.95	%*+††		0.92	%*+
Ratio of Net Investment Income to Average Net Assets		0.31	%*+††		1.03	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%*§
Portfolio Turnover Rate		23	%#		26	%#

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Mid Cap Growth Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R(unaudited)			Period from June 14, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	33.97		$	32.87
Income from Investment Operations:
Net Investment Income (Loss)†		(0.03	)		0.05
Net Realized and Unrealized Gain		3.64			1.05
Total from Investment Operations		3.61			1.10
Distributions from and/or in Excess of:
Net Investment Income		(0.07	)		—
Net Realized Gain		(1.18	)		—
Total Distributions		(1.25	)		—
Net Asset Value, End of Period	$	36.33		$	33.97
Total Return++		10.99	%#		3.35	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	16,290		$	10
Ratio of Expenses to Average Net Assets		1.45	%*+††		1.50	%*+
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.19	)%*+††		0.46	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%*§
Portfolio Turnover Rate		23	%#		26	%#

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income (Loss) reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("MSIFT'' or the "Fund'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Fund is comprised of seven separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Mid Cap Growth Portfolio. The Portfolio seeks long-term capital growth. The Portfolio offers four classes of shares — Class I, Class P, Class H and Class L.

The Fund had suspended offering shares of the Mid Cap Growth Portfolio to new investors, with certain exceptions. The Fund continued to offer shares of the Portfolio to existing shareholders. As of April 30, 2013, the Fund recommenced offering shares of the Portfolio.

On October 29, 2012, the Portfolio acquired the net assets of Morgan Stanley Mid Cap Growth Fund ("Mid Cap Growth Fund"), an open-end investment company. Based on the respective valuations as of the close of business on October 26, 2012, pursuant to a Plan of Reorganization approved by the shareholders of Mid Cap Growth Fund on October 16, 2012 ("Reorganization"). The purpose of the transaction was to combine two portfolios managed by Morgan Stanley Investment Management Inc. (the "Adviser) with comparable investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of 85,850 Class I shares of the Portfolio at a net asset value of $34.33 for 97,833 Class I shares of Mid Cap Growth Fund; 7,299,457 Class H shares of the Portfolio at a net asset value of $33.05 per share for 8,240,333 Class A shares and 233,231 Class B shares of Mid Cap Growth Fund; 513,012 Class L shares of the Portfolio at a net asset value of $32.98 for 693,319 Class C shares of Mid Cap Growth Fund. The net assets of Mid Cap Growth Fund before the Reorganization were $261,113,000, including unrealized appreciation of $22,573,000 at October 26, 2012. The investment portfolio of Mid Cap Growth Fund, with a fair value of approximately $263,440,000 and identified cost of approximately $240,867,000 on October 26, 2012, was the principal asset acquired by the Portfolio. For financial reporting purposes, assets received and shares issued by the Portfolio were recorded at fair value; however, the cost basis of the investments received from Mid Cap Growth Fund was carried forward to align ongoing reporting of the Portfolio's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the

Reorganization, the net assets of the Portfolio were approximately $5,785,823,000. Immediately after the merger, the net assets of the Portfolio were approximately $6,046,936,000.

Upon closing of the Reorganization, shareholders of Mid Cap Growth Fund received shares of the Portfolio as follows:

Mid Cap Growth Fund	MSIFT Mid Cap Growth Portfolio
Class I	Class I
Class A	Class H
Class B	Class H
Class C	Class L

Assuming the acquisition had been completed on October 1, 2012, the beginning of the annual reporting period of the Portfolio, the Portfolio's pro forma results of operations for the period ended March 28, 2013, are as follows:

Net investment income(1)	$	14,912,000
Net gain realized and unrealized gain(2)	$	21,762,000
Net increase (decrease) in net assets resulting from operations	$	36,674,000

⁽¹⁾ Approximately $14,421,000 as reported, plus approximately $59,000 Mid Cap Growth Fund premerger, plus approximately $432,000 of estimated pro forma eliminated expenses.

⁽²⁾ Approximately $17,317,000 as reported, plus approximately $4,445,000 Mid Cap Growth Fund premerger.

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Mid Cap Growth Fund that have been included in the Portfolio's Statement of Operations since March 28, 2013.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Fund in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

1.  Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), if there were no sales on a given day, the security is valued at the mean between the last reported bid and asked prices; (2) all other equity portfolio securities for which over-the-counter market quotations are readily available are valued at the mean between the last reported bid and asked prices. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated

15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

as the primary market; (3) an equity portfolio security traded on foreign exchanges, the latest reported sales price (or the exchange official closing price if such exchange reports an official closing price) or the mean between the last reported bid and asked prices may be used if there were no sales on a particular day or the latest bid price may be used if only bid prices are available; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees (the "Trustees"). Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (6) short-term debt securities having a maturity date of more than sixty days at the time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61^st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost, which approximates fair value.

Under procedures approved by the Trustees, the Adviser has formed a Valuation Committee. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Trustees. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurements and Disclosures" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments.

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

The inputs are summarized in the three broad levels listed below.

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Portfolio's investments as of March 28, 2013.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Advertising Agencies	$	40,366	$	—	$	—	$	40,366
Alternative Energy		157,329		—		—		157,329
Asset Management & Custodian		52,492		—		—		52,492
Automobiles		68,526		—		—		68,526
Beverage: Brewers & Distillers		179,992		—		—		179,992
Beverage: Soft Drinks		87,459		—		—		87,459

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Biotechnology	$	191,532	$	—	$	—		$	191,532
Cement		156,529		—		—			156,529
Chemicals: Diversified		175,218		—		—			175,218
Commercial Services		406,523		—		—			406,523
Communications Technology		242,160		—		—			242,160
Computer Services, Software & Systems		1,079,854		—		—			1,079,854
Computer Technology		192,045		—		35,448			227,493
Consumer Lending		101,516		—		—			101,516
Consumer Services: Miscellaneous		99,554		—		—			99,554
Diversified Media		110,311		—		—			110,311
Diversified Retail		261,177		—		—			261,177
Education Services		70,927		—		—			70,927
Electronic Components		156,180		—		—			156,180
Electronic Entertainment		38,795		—		—			38,795
Entertainment		—		—		61,114			61,114
Financial Data & Systems		343,028		—		—			343,028
Foods		35,438		—		—			35,438
Health Care Services		324,209		—		—			324,209
Hotel/Motel		57,999		—		—			57,999
Insurance: Property-Casualty		278,622		—		—			278,622
Medical & Dental Instruments & Supplies		15,728		—		—			15,728
Medical Equipment		125,749		—		—			125,749
Pharmaceuticals		161,562		—		—			161,562
Publishing		93,824		—		—			93,824
Recreational Vehicles & Boats		229,862		—		—			229,862
Restaurants		93,176		—		—			93,176
Scientific Instruments: Pollution Control		84,214		—		—			84,214
Semiconductors & Components		65,570		—		—			65,570
Textiles Apparel & Shoes		47,893		—		—			47,893
Utilities: Electrical		201,207		—		—			201,207
Total Common Stocks		6,026,566		—		96,562			6,123,128
Convertible Preferred Stocks		—		—		56,083	†		56,083
Preferred Stock		—		—		11,738			11,738
Short-Term Investment — Investment Company		87,414		—		—			87,414
Total Assets	$	6,113,980	$	—	$	164,383	†	$	6,278,363

†  Includes one or more securities which are valued at zero.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of March 28, 2013, the Portfolio did not have any investments transfer between investment levels.

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value.

	Common Stocks (000)		Convertible Preferred Stocks (000)			Preferred Stock (000)
Beginning Balance	$	69,179	$	57,738		$	11,200
Purchases		—		—			—
Sales		—		—			—
Amortization of discount		—		—			—
Transfers in		—		—			—
Transfers out		—		—			—
Fund Merger		3,541		3,199			538
Change in unrealized appreciation/ depreciation		23,842		(4,854	)		—
Realized gains (losses)		—		—			—
Ending Balance	$	96,562	$	56,083	†	$	11,738
Net change in unrealized appreciation/depreciation from investments still held as of March 28, 2013	$	23,842	$	(4,854	)	$	—

†  Includes one or more securities which are valued at zero.

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of March 28, 2013.

	Fair Value at March 28, 2013 (000)		Valuation Technique	Unobservable Input	Range						Weighted Average			Impact to Valuation from an Increase in Input
Communications Technology
Convertible Preferred Stock	$	1,212	Asset Approach	Net Tangible Assets	$	0.23		$	0.23		$	0.23		Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		27.5	%		28.5	%		28.0	%	Decrease
				Perpetual Growth Rate		5.0	%		6.0	%		5.5	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		0.4	x		7.6	x		0.8	x	Increase
				Discount for Lack of Marketability		10	%		10	%		10	%	Decrease
			Merger & Acquisition Transactions	Sale/Merger Scenario	$	10.37		$	10.37		$	10.37		Increase
Computer Services, Software & Systems
Convertible Preferred Stock	$	51,354	Adjusted Stock Price	Discount for Illiquidity		1.67	%		1.67	%		1.67	%	Decrease
Preferred Stock	$	11,738	Discounted Cash Flow	Weighted Average Cost of Capital		16.5	%		17.5	%		17.0	%	Decrease
				Perpetual Growth Rate		2.0	%		3.0	%		2.5	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		7.9	x		9.5	x		8.7	x	Increase
				Discount for Lack of Marketability		15	%		15	%		15	%	Decrease

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

	Fair Value at March 28, 2013 (000)		Valuation Technique	Unobservable Input	Range					Weighted Average			Impact to Valuation from an Increase in Input
Computer Technology
Common Stock	$	35,448	Discounted Cash Flow	Weighted Average Cost of Capital		17.0	%	19.0	%		18.0	%	Decrease
Convertible Preferred Stock	$	3,517		Perpetual Growth Rate		2.5	%	3.5	%		3.0	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		7.4	x	19.3	x		16.6	x	Increase
				Discount for Lack of Marketability		10	%	10	%		10	%	Decrease
Entertainment
Common Stock	$	61,114	Discounted Cash Flow	Weighted Average Cost of Capital		15.0	%	16.0	%		15.6	%	Decrease
				Perpetual Growth Rate		3.5	%	4.5	%		4.0	%	Increase
			Market Comparable Companies	Enterprise Value/ EBITDA		11.1	x	24.5	x		19.7	x	Increase
				Discount for Lack of Marketability		10	%	10	%		10	%	Decrease

3.  Foreign Currency Translation and Foreign Investments: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the mean of the bid and ask prices of such currencies against U.S. dollars last quoted by a major bank as follows:

–  investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

–  investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities sold during the period. Accordingly, realized and unrealized foreign currency gains (losses) on investments in securities are included in the reported net realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S. Federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of

gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. Federal income tax purposes.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency exchange contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) on the Statement of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations for the period is reflected in the Statement of Operations.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, fluctuations of exchange rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

The net assets of the Portfolio include foreign denominated securities and currency. Changes in currency exchange rates will affect the U.S. Dollar value of and investment income from such securities. Further, at times the Portfolio's investments are focused in a limited number of countries and regions. This focus may further increase the risk of the Portfolio.

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares. Such securities, if any, are identified as fair valued in the Portfolio of Investments.

4.  Restricted Securities: The Portfolio invests in unregistered or otherwise restricted securities. The term "restricted securities" refers to securities that are unregistered or are held by control persons of the issuer and securities that are subject to contractual restrictions on their resale. As a result, restricted securities may be more difficult to value and the Portfolio may have difficulty disposing of such assets either in a timely manner or for a reasonable price. In order to dispose of an unregistered security, the Portfolio, where it has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the decision is made to sell the security and the time the security is registered so that the Portfolio could sell it. Contractual restrictions on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and acquirer of the securities. The Portfolio would, in either case, bear market risks during that period. Restricted Securities are identified in the Portfolio of Investments.

5.  Indemnifications: The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However,

the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

6.  Dividends and Distributions to Shareholders: Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

7.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Portfolio with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.50% of the average daily net assets of the Portfolio. For the period ended March 28, 2013, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.50% of the Portfolio's daily net assets.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted Shareholder Services Plans with respect to Class P and Class H shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plans, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class P and Class H shares.

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.50% and a shareholder service fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class L shares.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class P, Class H and Class L shares.

E. Dividend Disbursing and Transfer Agent: The Fund's dividend disbursing and transfer agent is Morgan Stanley Services Company Inc. ("Morgan Stanley Services"). Pursuant to a Transfer Agency Agreement, the Fund pays Morgan Stanley Services a fee based on the number of classes, accounts and transactions relating to the Portfolios of the Fund.

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Fund in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Fund as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

The Fund has entered into an arrangement with its Custodian whereby credits realized on uninvested cash balances may be used to offset a portion of the Portfolio's expenses. If applicable, these custodian credits are shown as "Expense Offset" in the Statement of Operations.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 28, 2013, purchases and sales of investment securities for the Portfolio, other

than long-term U.S. Government securities and short-term investments, were approximately $1,394,988,000 and $2,154,775,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 28, 2013.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 28, 2013, advisory fees paid were reduced by approximately $122,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 28, 2013 is as follows:

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 28, 2013 (000)
$	35,346	$	1,034,658	$	982,590	$	116	$	87,414

During the six months ended March 28, 2013, the Portfolio incurred approximately $17,000 in brokerage commissions with Citigroup, Inc., and its affiliated broker-dealers, which may be deemed affiliates of the Adviser, Administrator and Distributor under Section 17 of the Act, for portfolio transactions executed on behalf of the Portfolio.

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

H. Federal Income Taxes: It is the Portfolio's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for Federal income taxes is required in the financial statements.

Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recognized

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

on the accrual basis. Dividends from net investment income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.

The Portfolio may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10 "Income Taxes — Overall" sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended September 30, 2012, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal 2012 and 2011 was as follows:

2012 Distributions Paid From:				2011 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	16,705	$	331,169	$	8,346	$	4,087

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, distribution redesignation, in-kind redemptions, basis adjustments for

return of capital sold and tax adjustments on passive foreign investment companies and partnership investments held and sold by the Portfolio, resulted in the following reclassifications among the components of net assets at September 30, 2012:

Accumulated Undistributed Net Investment Income (000)			Accumulated Undistributed Net Realized Gain (000)		Paid-in Capital (000)
$	(17,205	)	$	76,295	$	(59,090	)

At September 30, 2012, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	6,308	$	163,716

At March 28, 2013, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,580,620,000 and the aggregate gross unrealized depreciation is approximately $402,922,000 resulting in net unrealized appreciation of approximately $1,177,698,000.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Modernization Act") was signed into law. The Modernization Act modernizes several tax provisions related to Regulated Investment Companies ("RICs") and their shareholders. One key change made by the Modernization Act is that capital losses will generally retain their character as short-term or long-term and may be carried forward indefinitely to offset future gains. These losses are utilized before other capital loss carryforwards that expire. Generally, the Modernization Act is effective for taxable years beginning after December 22, 2010.

For the year ended September 30, 2012, the Portfolio realized losses from in-kind redemptions of approximately $59,735,000. These losses are not tax deductible to the Portfolio.

I. Other: At March 28, 2013, the Portfolio had otherwise unaffiliated record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Portfolio. The aggregate percentage of such owners was 39.6% for Class P shares.

J. Accounting Pronouncement: In January 2013, Accounting Standard Update 2013-01 ("ASU 2013-01"), "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," replaced Accounting Standards Update 2011-11 ("ASU 2011-11"), "Disclosures about Offsetting Assets and Liabilities." ASU 2013-01 is effective for fiscal years beginning on

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact, if any, on the Portfolio's financial statements.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

We are required by federal law to provide you with notice of our U.S. privacy policy ("Policy"). This Policy applies to both our current and former clients unless we state otherwise and is intended for individual clients who purchase products or receive services from us for personal, family or household purposes. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders, nor is this Policy applicable to individuals who are either beneficiaries of a trust for which we serve as trustee or participants in an employee benefit plan administered or advised by us. This Policy is, however, applicable to individuals who select us to be a custodian of securities or assets in individual retirement accounts, 401(k) accounts, or accounts subject to the Uniform Gifts to Minors Act.

This notice sets out our business practices to protect your privacy; how we collect and share personal information about you; and how you can limit our sharing or certain uses by others of this information. We may amend this Policy at any time, and will inform you of any changes to our Policy as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information and understand your concerns about your information. We strive to safeguard the information our clients entrust to us. Protecting the confidentiality and security of client information is an important part of how we conduct our business.

This notice describes what personal information we collect about you, how we collect it, when we may share it with others, and how certain others may use it. It discusses the steps you may take to limit our sharing of certain information about you with our affiliated companies, including, but not limited to our affiliated banking businesses, brokerage firms and credit service affiliates. It also discloses how you may limit our affiliates' use of shared information for marketing purposes.

Throughout this Policy, we refer to the nonpublic information that personally identifies you as "personal information." We also use the term "affiliated company" in this notice. An affiliated company is a company in our family of companies and includes companies with the Morgan Stanley name. These affiliated companies are financial institutions such as broker-dealers, banks, investment advisers and credit card issuers. We refer to any company that is not an affiliated company as a nonaffiliated third party. For purposes of Section 5 of this notice, and your ability to limit certain uses of personal information by our affiliates, this notice applies to the use of personal information by our affiliated companies.

1.  WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

We may collect the following types of information about you: (i) information provided by you, including information from applications and other forms we receive from you, (ii) information about your transactions with us or our affiliates, (iii) information about your transactions with nonaffiliated third parties, (iv) information from consumer reporting agencies, (v) information obtained from our websites, and (vi) information obtained from other sources. For example:

•  We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

•  We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources.

•  We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

•  We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2.  WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

a. Information we disclose to affiliated companies.

We may disclose personal information that we collect about you to our affiliated companies to manage your account(s) effectively, to service and process your transactions, and to let you know about products and services offered by us and affiliated companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from affiliated companies are developed under conditions designed to safeguard your personal information.

b. Information we disclose to third parties.

We may disclose personal information that we collect about you to nonaffiliated third parties to provide marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. We may also disclose all of the information we collect to other nonaffiliated third parties for our everyday business purposes, such as to process transactions, maintain account(s), respond to court orders and legal investigations, report to credit bureaus, offer our own products and services, protect against fraud, for institutional risk control, to perform services on our behalf, and as otherwise required or permitted by law.

When we share personal information about you with a nonaffiliated third party, they are required to limit their use of personal information about you to the particular purpose for which it was shared and they are not allowed to share personal information about you with others except to fulfill that limited purpose or as may be permitted or required by law.

3.  HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We maintain physical, electronic and procedural security measures that comply with applicable law and regulations to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information by employees. Third parties that provide support or marketing services on our behalf may also receive personal information about you, and we require them to adhere to appropriate security standards with respect to such information.

4.  HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

By following the opt-out procedures in Section 6 below, you may limit the extent to which we share with our affiliated companies, personal information that was collected to determine your eligibility for products and services such as your credit reports and other information that you have provided to us or that we may obtain from third parties ("eligibility information"). Eligibility information does not include your identification information or personal information pertaining to our transactions or experiences with you. Please note that, even if you direct us not to share eligibility information with our affiliated companies, we may still share your personal information, including eligibility information, with our affiliated companies under circumstances that are permitted under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit our affiliated companies from marketing their products or services to you based on personal information we disclose to them. This information may include, for example, your income and account history with us. Please note that, even if you choose to limit our affiliated companies from using personal information about you that we may share with them for marketing their products and services to you, our affiliated companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the affiliated party has its own relationship with you.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

6.  HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

If you wish to limit our sharing of eligibility information about you with our affiliated companies, or our affiliated companies' use of personal information for marketing purposes, as described in this notice, you may do so by:

•  Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 5p.m. (EST)

•  Writing to us at the following address:

  Morgan Stanley Services Company Inc.
c/o Privacy Coordinator
201 Plaza Two, 3rd Floor
Jersey City, New Jersey 07311

If you choose to write to us, your request should include: your name, address, telephone number and account number(s) to which the opt-out applies and whether you are opting out with respect to sharing of eligibility information (Section 4 above), or information used for marketing (Section 5 above), or both. Written opt-out requests should not be sent with any other correspondence. In order to process your request, we require that the request be provided by you directly and not through a third party. Once you have informed us about your privacy preferences, your opt-out preference will remain in effect with respect to this Policy (as it may be amended) until you notify us otherwise. If you are a joint account owner, we will accept instructions from any one of you and apply those instructions to the entire account.

Please understand that if you limit our sharing or our affiliated companies' use of personal information, you and any joint account holder(s) may not receive information about our affiliated companies' products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

If you have more than one account or relationship with us, please specify the accounts to which you would like us to apply your privacy choices. If you have accounts or relationships with our affiliates, you may receive multiple privacy policies from them, and will need to separately notify those companies of your privacy choices for those accounts or relationships.

7.  WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

If, at any time in the future, an affiliated company becomes a nonaffiliated third party, further disclosures of personal information made to the former affiliated company will be limited to those described in Section 2(b) above relating to nonaffiliated third parties. If you elected under Section 6 to limit disclosures we make to affiliated companies, or use of personal information by affiliated companies, your election will not apply to use by any former affiliated company of your personal information in their possession once it becomes a nonaffiliated third party.

SPECIAL NOTICE TO RESIDENTS OF VERMONT

The following section supplements our Policy with respect to our individual clients who have a Vermont address and supersedes anything to the contrary in the above Policy with respect to those clients only.

The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with nonaffiliated third parties, or eligibility information with affiliated companies, other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or eligibility information with affiliated companies, unless you provide us with your written consent to share such information.

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

The following section supplements our Policy with respect to our individual clients who have a California address and supersedes anything to the contrary in the above Policy with respect to those clients only.

In response to a California law, if your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us.

26

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Trustee and Officer Information (unaudited)

Trustees

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

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

Morgan Stanley Services Company Inc.
P.O. Box 219804
Kansas City, Missouri 64121

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

Arthur Lev
President and Principal Executive Officer

Mary Ann Picciotto
Chief Compliance Officer

Stefanie V. Chang Yu
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its semi-annual and annual reports within 60 days of the end of the fund's second and fourth fiscal quarters by filing the schedule electronically with the Securities and Exchange Commission (SEC). The semi-annual reports are filed on Form N-CSRS and the annual reports are filed on Form N-CSR. Morgan Stanley also delivers the semi-annual and annual reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im. Each Morgan Stanley fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters on Form N-Q. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Morgan Stanley public website. You may, however, obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You may also review and copy them at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling the SEC toll free at 1 (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov) or by writing the Public Reference Room of the SEC, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Fund's Proxy Voting Policy and Procedures and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus of the Morgan Stanley Institutional Fund Trust which describes in detail each Investment Portfolio's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Portfolio, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

29

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2013 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTMCGSAN
655715 EXP [05/31/14]

INVESTMENT MANAGEMENT

Morgan Stanley
Institutional Fund Trust

Core Fixed Income Portfolio

Semi-Annual
Report

March 28, 2013

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	10
Statement of Operations	12
Statements of Changes in Net Assets	13
Financial Highlights	14
Notes to Financial Statements	18
U.S. Privacy Policy	26
Trustee and Officer Information	29

This report is authorized for distribution only when preceded or accompanied by prospectuses of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or SAI, which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations, and describes in detail each of the Portfolio's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access portfolio information including performance, characteristics, and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im.

Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Portfolio in the future. There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that market values of securities owned by the Portfolio will decline and, therefore, the value of the Portfolio's shares may be less than what you paid for them. Accordingly, you can lose money investing in Portfolios. Please see the prospectus for more complete information on investment risks.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Semi-Annual report, in which you will learn how your investment in Core Fixed Income Portfolio performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

Arthur Lev
President and Principal Executive Officer

April 2013

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Expense Example (unaudited)

Core Fixed Income Portfolio

As a shareholder of the Portfolio, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, including advisory fees, administration fees, distribution and shareholder services fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 28, 2013 and held for the entire six-month period.

Actual Expenses

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

Please note that "Actual Expenses Paid During Period" are grossed up to reflect Portfolio expenses prior to the effect of Expense Offset (See Note F in the Notes to Financial Statements). Therefore, the annualized net expense ratios may differ from the ratio of expenses to average net assets shown in the Financial Highlights.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/12		Actual Ending Account Value 3/28/13		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Core Fixed Income Portfolio Class I	$	1,000.00	$	1,004.80	$	1,022.12	$	2.41	$	2.43		0.49	%
Core Fixed Income Portfolio Class P		1,000.00		1,003.60		1,020.89		3.64		3.67		0.74
Core Fixed Income Portfolio Class H		1,000.00		1,003.00		1,020.89		3.63		3.67		0.74
Core Fixed Income Portfolio Class L		1,000.00		1,002.30		1,019.67		4.86		4.90		0.99

*  Expenses are calculated using each Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 179/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.4%)
Agency Fixed Rate Mortgages (25.7%)
Federal Home Loan Mortgage Corporation, April TBA: 3.50%, 4/25/43 (a)	$	210	$	221
Gold Pools: 3.50%, 8/1/42		208		219
4.00%, 12/1/41 - 11/1/42		989		1,076
5.00%, 10/1/35		546		590
6.00%, 5/1/37 - 10/1/38		242		265
7.50%, 5/1/35		55		67
8.00%, 8/1/32		28		35
8.50%, 8/1/31		44		55
Federal National Mortgage Association, April TBA: 3.50%, 4/25/43 (a)		1,673		1,767
4.00%, 4/25/43 (a)		220		235
Conventional Pools: 3.50%, 12/1/42		919		973
4.00%, 11/1/41 - 12/1/41		1,140		1,218
4.50%, 8/1/40 - 8/1/41		1,764		1,927
5.00%, 3/1/39		563		626
5.50%, 4/1/34 - 2/1/38		1,244		1,367
6.00%, 1/1/38		121		132
6.50%, 7/1/29 - 2/1/33		260		304
7.00%, 10/1/31 - 12/1/31		2		2
7.50%, 8/1/37		90		110
8.00%, 4/1/33		67		83
8.50%, 10/1/32		65		81
Government National Mortgage Association, April TBA: 4.50%, 4/25/43 (a)		199		218
Various Pools: 3.50%, 11/20/42		598		640
4.00%, 1/20/42 - 4/20/42		1,042		1,129
4.50%, 8/15/39		242		266
				13,606
Asset-Backed Securities (4.9%)
Ally Master Owner Trust, 1.54%, 9/15/19		170		171
2.88%, 4/15/15 (b)		225		225
Brazos Higher Education Authority 1.15%, 7/25/29 (c)		325		330
CVS Pass-Through Trust 6.04%, 12/10/28		112		132
Discover Card Master Trust 0.55%, 8/15/16 (c)		300		301
Enterprise Fleet Financing LLC, 1.43%, 10/20/16 (b)		95		95
1.62%, 5/20/17 (b)		80		81
Ford Credit Floorplan Master Owner Trust 2.12%, 2/15/16		175		178
Great America Leasing Receivables 1.69%, 2/15/14 (b)		114		114
Louisiana Public Facilities Authority 1.20%, 4/26/27 (c)		325		329

	Face Amount (000)		Value (000)
MMCA Auto Owner Trust 2011-A 1.22%, 1/15/15 (b)	$	91	$	91
North Carolina State Education Assistance Authority 1.20%, 1/26/26 (c)		225		227
Panhandle-Plains Higher Education Authority, Inc. 1.23%, 7/1/24 (c)		125		127
Textainer Marine Containers Ltd. 4.70%, 6/15/26 (b)		206		209
				2,610
Collateralized Mortgage Obligations — Agency Collateral Series (9.6%)
Federal Home Loan Mortgage Corporation, 1.88%, 5/25/19		230		236
2.09%, 3/25/19		159		165
2.32%, 10/25/18		155		163
2.57%, 9/25/22		281		287
2.70%, 5/25/18		335		359
2.79%, 1/25/22		300		314
2.97%, 10/25/21		300		319
3.87%, 4/25/21		325		367
IO 0.68%, 1/25/21 (c)		2,257		88
IO PAC REMIC 6.27%, 6/15/40 (c)		1,689		325
IO REMIC 5.85%, 4/15/39 (c)		761		172
IO STRIPS 8.00%, 1/1/28		18		3
REMIC 3.50%, 12/15/42		326		325
Federal National Mortgage Association, 3.76%, 6/25/21		110		121
IO 6.19%, 9/25/20 (c)		1,749		484
IO REMIC 6.40%, 9/25/38 (c)		565		132
REMIC 9.19%, 10/25/41 (c)(d)		159		164
Government National Mortgage Association, IO 0.84%, 8/20/58 (c)		2,807		95
1.36%, 4/16/53 (c)		4,453		346
5.00%, 2/16/41		150		28
5.85%, 11/16/40 (c)		1,013		205
5.90%, 8/16/42 (c)		727		155
6.40%, 4/16/41 (c)		1,016		232
				5,085
Commercial Mortgage-Backed Securities (4.8%)
COMM Mortgage Trust 3.28%, 1/10/46		120		123
Extended Stay America Trust 2.96%, 12/5/31 (b)		125		127
GS Mortgage Securities Corp. II 1.05%, 11/8/29 (b)(c)		160		161
3.28%, 2/10/46		82		84
GS Mortgage Securities Trust 3.71%, 8/10/44		240		262

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (cont'd)
JP Morgan Chase Commercial Mortgage Securities Trust, 4.17%, 8/15/46	$	240	$	270
4.39%, 7/15/46 (b)		350		398
Queens Center Mortgage Trust 3.28%, 1/11/37 (b)		211		213
UBS-Barclays Commercial Mortgage Trust 3.53%, 5/10/63		80		85
Wells Fargo Commercial Mortgage Trust 2.92%, 10/15/45		100		102
WF-RBS Commercial Mortgage Trust, 3.31%, 3/15/45		120		123
Series 2011-C2 4.87%, 2/15/44 (b)(c)		315		369
Series 2012-C7 3.43%, 6/15/45		238		253
				2,570
Corporate Bonds (32.6%)
Finance (14.0%)
ABB Treasury Center USA, Inc. 2.50%, 6/15/16 (b)(e)		175		183
Abbey National Treasury Services PLC, MTN 3.88%, 11/10/14 (b)		140		145
ABN Amro Bank N.V. 4.25%, 2/2/17 (b)		200		218
Aegon N.V. 4.63%, 12/1/15 (e)		175		191
American International Group, Inc. 8.25%, 8/15/18		100		130
AvalonBay Communities, Inc. 2.95%, 9/15/22 (e)		75		74
Bank of America Corp. 5.70%, 1/24/22		225		264
Barclays Bank PLC 6.05%, 12/4/17 (b)		200		224
Berkshire Hathaway, Inc. 3.75%, 8/15/21 (e)		235		256
BNP Paribas SA 5.00%, 1/15/21 (e)		135		152
Boston Properties LP, 3.85%, 2/1/23		100		106
5.88%, 10/15/19		30		36
Brookfield Asset Management, Inc. 5.80%, 4/25/17		65		73
Cigna Corp., 2.75%, 11/15/16		70		74
5.38%, 2/15/42		60		68
Citigroup, Inc., (See Note G)
6.13%, 11/21/17 - 5/15/18		71		85
8.50%, 5/22/19		72		96
Commonwealth Bank of Australia 5.00%, 3/19/20 (b)		75		87
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 3.88%, 2/8/22		75		79
Coventry Health Care, Inc. 5.45%, 6/15/21		120		142

	Face Amount (000)		Value (000)
Credit Agricole SA 3.00%, 10/1/17 (b)(e)	$	200	$	207
Credit Suisse, 5.40%, 1/14/20 (e)		85		95
6.00%, 2/15/18 (e)		60		70
Dexus Diversified Trust/Dexus Office Trust 5.60%, 3/15/21 (b)		100		112
General Electric Capital Corp., 5.30%, 2/11/21 (e)		110		126
Series G 6.00%, 8/7/19 (e)		190		231
Goldman Sachs Group, Inc. (The) 2.38%, 1/22/18		450		457
Hartford Financial Services Group, Inc. 5.50%, 3/30/20 (e)		110		129
HSBC Finance Corp. 6.68%, 1/15/21		100		119
HSBC Holdings PLC 4.00%, 3/30/22 (e)		70		75
Intesa Sanpaolo SpA 3.88%, 1/16/18		200		194
JPMorgan Chase & Co., 3.20%, 1/25/23		170		170
4.50%, 1/24/22		50		55
MetLife, Inc. 7.72%, 2/15/19 (e)		60		78
Nationwide Building Society 6.25%, 2/25/20 (b)		145		170
Nationwide Financial Services, Inc. 5.38%, 3/25/21 (b)		75		83
Nordea Bank AB 4.88%, 5/13/21 (b)(e)		200		217
Pacific LifeCorp 6.00%, 2/10/20 (b)		125		144
Platinum Underwriters Finance, Inc., Series B 7.50%, 6/1/17 (e)		120		135
Principal Financial Group, Inc. 8.88%, 5/15/19		100		136
Prudential Financial, Inc. 7.38%, 6/15/19		270		347
Royal Bank of Scotland Group PLC 2.55%, 9/18/15		120		123
Skandinaviska Enskilda Banken AB 1.75%, 3/19/18 (b)		200		200
Societe Generale SA 5.20%, 4/15/21 (b)(e)		200		224
Standard Chartered PLC 3.95%, 1/11/23 (b)(e)		200		200
Svenska Handelsbanken AB 2.88%, 4/4/17 (e)		250		264
Swedbank AB 1.75%, 3/12/18 (b)		200		199
UnitedHealth Group, Inc., 1.40%, 10/15/17		50		50
2.75%, 2/15/23		30		30
Wells Fargo & Co., Series M 3.45%, 2/13/23		100		101
				7,424

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (16.4%)
AbbVie, Inc. 2.90%, 11/6/22 (b)	$	100	$	100
Actavis, Inc. 3.25%, 10/1/22 (e)		50		51
Agilent Technologies, Inc. 5.50%, 9/14/15		120		133
Air Products & Chemicals, Inc. 2.00%, 8/2/16 (e)		165		171
Allergan, Inc. 2.80%, 3/15/23		35		35
Altria Group, Inc. 2.85%, 8/9/22		55		54
Amazon.com, Inc. 1.20%, 11/29/17		150		149
American Honda Finance Corp. 2.13%, 2/28/17 (b)		200		208
Amgen, Inc. 3.88%, 11/15/21		100		109
AT&T, Inc. 6.30%, 1/15/38		170		205
Bemis Co., Inc. 4.50%, 10/15/21		110		120
Boeing Capital Corp. 2.13%, 8/15/16		175		182
BP Capital Markets PLC 3.25%, 5/6/22		125		129
British Sky Broadcasting Group PLC 3.13%, 11/26/22 (b)(e)		75		75
Burlington Northern Santa Fe LLC 5.65%, 5/1/17		115		135
Canadian Oil Sands Ltd. 7.75%, 5/15/19 (b)		125		158
Cardinal Health, Inc. 3.20%, 3/15/23		100		100
CF Industries, Inc. 6.88%, 5/1/18		150		180
ConAgra Foods, Inc., 3.20%, 1/25/23 (e)		40		40
4.65%, 1/25/43		50		50
ConocoPhillips 6.50%, 2/1/39		25		34
CRH America, Inc. 6.00%, 9/30/16		135		154
Daimler Finance North America LLC 8.50%, 1/18/31		55		85
Deere & Co. 3.90%, 6/9/42		50		50
Deutsche Telekom International Finance BV 8.75%, 6/15/30		65		92
DirecTV Holdings LLC/DirecTV Financing Co., Inc. 3.80%, 3/15/22 (e)		50		51
Discovery Communications LLC 3.25%, 4/1/23 (e)		50		51
Eaton Corp. 2.75%, 11/2/22 (b)		105		105
Experian Finance PLC 2.38%, 6/15/17 (b)		210		214

	Face Amount (000)		Value (000)
Express Scripts Holding Co. 3.90%, 2/15/22 (e)	$	45	$	48
Fiserv, Inc. 3.13%, 6/15/16		80		84
FMC Technologies, Inc. 3.45%, 10/1/22		55		56
Ford Motor Credit Co., LLC 4.21%, 4/15/16		200		213
Freeport-McMoRan Copper & Gold, Inc., 2.38%, 3/15/18 (b)		60		60
3.88%, 3/15/23 (b)		50		50
Gap, Inc. (The) 5.95%, 4/12/21		75		86
Georgia-Pacific LLC 5.40%, 11/1/20 (b)		90		107
GlaxoSmithKline Capital, Inc., 2.80%, 3/18/23		105		106
4.20%, 3/18/43		25		25
Goldcorp, Inc. 3.70%, 3/15/23 (e)		100		101
Grupo Bimbo SAB de CV 4.88%, 6/30/20 (b)		100		113
Harley-Davidson Funding Corp. 6.80%, 6/15/18 (b)		105		129
Heathrow Funding Ltd. 4.88%, 7/15/21 (b)(e)		170		190
Hewlett-Packard Co. 4.65%, 12/9/21 (e)		40		42
Holcim US Finance Sarl & Cie SCS 6.00%, 12/30/19 (b)		85		99
Intel Corp. 2.70%, 12/15/22		100		99
Kraft Foods Group, Inc. 5.38%, 2/10/20		102		122
L-3 Communications Corp. 4.75%, 7/15/20		135		150
LVMH Moet Hennessy Louis Vuitton SA 1.63%, 6/29/17 (b)		150		152
Motorola Solutions, Inc. 3.75%, 5/15/22		50		51
Murphy Oil Corp. 3.70%, 12/1/22 (e)		75		73
NBC Universal Media LLC, 2.88%, 1/15/23		175		174
5.95%, 4/1/41		50		61
NetApp, Inc. 2.00%, 12/15/17		50		50
Odebrecht Finance Ltd. 6.00%, 4/5/23 (b)		168		189
Omnicom Group, Inc. 3.63%, 5/1/22		100		102
PepsiCo, Inc. 2.75%, 3/5/22		125		128
Philip Morris International, Inc. 2.50%, 8/22/22		130		129
Phillips 66 4.30%, 4/1/22		50		55
Qtel International Finance Ltd. 3.25%, 2/21/23 (b)		200		197

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Rogers Communications, Inc. 3.00%, 3/15/23	$	125	$	126
Sanofi 4.00%, 3/29/21		135		151
Schneider Electric SA 2.95%, 9/27/22 (b)(e)		125		127
SK Telecom Co., Ltd. 2.13%, 5/1/18 (b)		200		201
Sonoco Products Co. 5.75%, 11/1/40		100		114
Syngenta Finance N.V. 3.13%, 3/28/22		130		134
Telefonaktiebolaget LM Ericsson 4.13%, 5/15/22 (e)		75		78
Teva Pharmaceutical Finance IV BV 3.65%, 11/10/21		215		229
Time Warner Cable, Inc., 4.50%, 9/15/42 (e)		50		46
6.75%, 6/15/39		40		47
United Technologies Corp. 4.50%, 6/1/42		40		43
Vale Overseas Ltd. 5.63%, 9/15/19 (e)		85		96
VF Corp. 3.50%, 9/1/21		105		112
Volkswagen International Finance N.V. 2.38%, 3/22/17 (b)(e)		115		119
Weatherford International Ltd. 4.50%, 4/15/22 (e)		100		103
Wesfarmers Ltd., 1.87%, 3/20/18 (b)		55		56
2.98%, 5/18/16 (b)		85		90
Westvaco Corp. 8.20%, 1/15/30		45		56
Woolworths Ltd. 4.00%, 9/22/20 (b)		125		136
WPP Finance 2010 3.63%, 9/7/22		150		150
				8,675
Utilities (2.2%)
CEZ AS 4.25%, 4/3/22 (b)		200		213
Enterprise Products Operating LLC, 5.25%, 1/31/20		50		59
Series N 6.50%, 1/31/19		160		199
Exelon Generation Co., LLC 6.25%, 10/1/39		140		163
Kinder Morgan Energy Partners LP 5.95%, 2/15/18 (e)		160		191
Plains All American Pipeline LP/PAA Finance Corp., 6.70%, 5/15/36		60		76
8.75%, 5/1/19		65		88
PPL WEM Holdings PLC 3.90%, 5/1/16 (b)		150		158
				1,147
				17,246

	Face Amount (000)		Value (000)
Municipal Bonds (1.3%)
City of Chicago, IL, O'Hare International Airport Revenue 6.40%, 1/1/40	$	40	$	52
City of New York, NY, Series G-1 5.97%, 3/1/36		85		109
Illinois State Toll Highway Authority, Highway Revenue, Build America Bonds 6.18%, 1/1/34		130		165
Municipal Electric Authority of Georgia 6.66%, 4/1/57		155		183
State of California, General Obligation Bonds 5.95%, 4/1/16		175		200
				709
Sovereign (4.5%)
Banco Nacional de Desenvolvimento, Economico e Social 5.50%, 7/12/20 (b)(e)		150		170
Brazilian Government International Bond 4.88%, 1/22/21		120		140
Caixa Economica Federal 3.50%, 11/7/22 (b)		150		144
Credit Mutuel - CIC Home Loan SFH 1.50%, 11/16/17 (b)		200		201
Eskom Holdings SOC Ltd. 5.75%, 1/26/21 (b)		200		218
KazMunaiGaz Finance Sub BV 6.38%, 4/9/21 (b)		200		234
Mexico Government International Bond 3.63%, 3/15/22 (e)		130		138
Peruvian Government International Bond 8.75%, 11/21/33		110		180
Petroleos Mexicanos 4.88%, 1/24/22		250		277
Poland Government International Bond 5.00%, 3/23/22		290		332
Russian Foreign Bond - Eurobond 4.50%, 4/4/22 (b)(e)		200		218
South Africa Government International Bond 4.67%, 1/17/24		100		108
				2,360
U.S. Agency Securities (2.4%)
Federal National Mortgage Association, 0.88%, 10/26/17		300		301
5.38%, 6/12/17 (e)		700		835
6.63%, 11/15/30		100		149
				1,285
U.S. Treasury Securities (12.6%)
U.S. Treasury Bonds, 3.00%, 5/15/42		440		431
3.13%, 11/15/41		1,488		1,497

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
U.S. Treasury Securities (cont'd)
U.S. Treasury Notes, 0.38%, 1/15/16	$	1,000	$	1,001
1.25%, 10/31/15		815		835
1.63%, 11/15/22 (e)		787		773
2.25%, 3/31/16 (e)		2,025		2,139
				6,676
Total Fixed Income Securities (Cost $50,072)				52,147
	Shares
Short-Term Investments (22.3%)
Securities held as Collateral on Loaned Securities (16.6%)
Investment Company (14.9%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		7,866,535		7,867
	Face Amount (000)
Repurchase Agreement (1.7%)
Barclays Capital, Inc., (0.15%, dated 3/28/13, due 4/1/13; proceeds $915; fully collateralized by U.S. Government Obligations; U.S. Treasury Notes 0.38% - 0.50% due 2/15/16 - 7/31/17; valued at $934)	$	915		915
Total Securities held as Collateral on Loaned Securities (Cost $8,782)				8,782
	Shares
Investment Company (5.6%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $2,948)		2,947,501		2,948

	Face Amount (000)		Value (000)
U.S. Treasury Security (0.1%)
U.S. Treasury Bill 0.12%, 8/8/13 (f)(g) (Cost $25)	$	25	$	25
Total Short-Term Investments (Cost $11,755)				11,755
Total Investments (120.7%) (Cost $61,827) Including $8,579 of Securities Loaned (h)				63,902
Liabilities in Excess of Other Assets (-20.7%)				(10,943	)
Net Assets (100.0%)			$	52,959

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

(a)  Security is subject to delayed delivery.

(b)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(c)  Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 28, 2013.

(d)  Inverse Floating Rate Security — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at March 28, 2013.

(e)  All or a portion of this security was on loan at March 28, 2013.

(f)  Rate shown is the yield to maturity at March 28, 2013.

(g)  All or a portion of the security was pledged to cover margin requirements for futures contracts.

(h)  Securities are available for collateral in connection with securities purchased on a forward commitment basis, open futures contracts and swap agreements.

IO  Interest Only.

MTN  Medium Term Note.

PAC  Planned Amortization Class.

REMIC  Real Estate Mortgage Investment Conduit.

STRIPS  Separate Trading of Registered Interest and Principal of Securities.

TBA  To Be Announced.

Futures Contracts:

The Portfolio had the following futures contracts open at March 28, 2013:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		31	$	6,834		Jun-13	$	—	@
U.S. Treasury 5 yr. Note		54		6,699		Jun-13		5
U.S. Treasury Ultra Long Bond		4		631		Jun-13		(4	)
Short:
U.S. Treasury 30 yr. Bond		1		(145	)	Jun-13		(—	@)
U.S. Treasury 10 yr. Note		45		(5,939	)	Jun-13		(31	)
							$	(30	)

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 28, 2013:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)			Value (000)		Credit Rating of Reference Obligation† (unaudited)	��
Barclays Bank Alcoa, Inc.	Buy	$	250		1.00	%	6/20/18	$	22	$	1		$	23	BBB-
Barclays Bank Devon Energy Company	Buy		275		1.00		6/20/18		4		(—	@)		4	BBB+
Barclays Bank Transocean, Inc.	Buy		275		1.00		6/20/18		12		(—	@)		12	BBB-
JPMorgan Chase CDX.NA.IG.20	Sell		1,000		1.00		6/20/18		6		(1	)		5	NR
JPMorgan Chase Kohl's Corporation	Buy		275		1.00		6/20/18		16		(1	)		15	BBB+
		$	2,075					$	60	$	(1	)	$	59

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 28, 2013:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Bank of America	3 Month LIBOR	Receive		2.10	%	2/5/23	$	750	$	(11	)
Barclays Bank	3 Month LIBOR	Receive		0.81		9/24/17		1,180		1
Credit Suisse	3 Month LIBOR	Receive		0.82		9/13/17		1,770		(1	)
Deutsche Bank	3 Month LIBOR	Receive		0.82		7/24/17		3,026		(7	)
Goldman Sachs	3 Month LIBOR	Receive		2.09		2/15/23		1,190		(14	)
Royal Bank of Canada	3 Month LIBOR	Receive		2.06		2/6/23		1,200		(11	)
									$	(43	)

@    Value is less than $500.

LIBOR  London Interbank Offered Rate.

NR    Not Rated.

†    Credit Rating as issued by Standard and Poor's.

Portfolio Composition*

Classification	Percentage of Total Investments
Agency Fixed Rate Mortgages		24.7	%
Other**		19.4
Industrials		15.7
Finance		13.5
U.S. Treasury Securities		12.1
Collateralized Mortgage Obligations — Agency Collateral Series		9.2
Short-Term Investments		5.4
Total Investments		100.0	%***

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 28, 2013.

**  Industries and/or investment types representing less than 5% of total investments.

***  Does not include open long/short futures contracts with an underlying face amount of approximately $20,248,000 and net unrealized depreciation of approximately $30,000. Does not include open swap agreements with net unrealized depreciation of approximately $44,000.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Core Fixed Income Portfolio

Statement of Assets and Liabilities	March 28, 2013 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $50,862)	$	52,906
Investment in Securities of Affiliated Issuers, at Value (Cost $10,965)		10,996
Total Investments in Securities, at Value (Cost $61,827)		63,902
Cash		3
Interest Receivable		352
Receivable for Investments Sold		275
Premium Paid on Open Swap Agreements		60
Due from Adviser		24
Receivable from Affiliate		4
Receivable for Swap Agreement Termination		7
Unrealized Appreciation on Swap Agreements		2
Tax Reclaim Receivable		1
Receivable for Portfolio Shares Sold		—	@
Other Assets		15
Total Assets		64,645
Liabilities:
Collateral on Securities Loaned, at Value		8,783
Payable for Investments Purchased		2,662
Payable for Portfolio Shares Redeemed		82
Unrealized Depreciation on Swap Agreements		46
Payable for Sub Transfer Agency Fees		41
Payable for Professional Fees		30
Premium Due to Broker for Swap Agreement		16
Payable for Trustees' Fees and Expenses		4
Payable for Custodian Fees		4
Payable for Transfer Agent Fees		4
Payable for Administration Fees		3
Payable for Variation Margin		1
Payable for Shareholder Services Fees — Class P		—	@
Payable for Shareholder Services Fees — Class H		—	@
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Other Liabilities		10
Total Liabilities		11,686
Net Assets	$	52,959
Net Assets Consist Of:
Paid-in-Capital	$	87,934
Undistributed Net Investment Income		566
Accumulated Net Realized Loss		(37,542	)
Unrealized Appreciation (Depreciation) on:
Investments		2,044
Investments in Affiliates		31
Futures Contracts		(30	)
Swap Agreements		(44	)
Net Assets	$	52,959

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Core Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 28, 2013 (000)
CLASS I:
Net Assets	$	52,576
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		5,061,700
Net Asset Value, Offering and Redemption Price Per Share	$	10.39
CLASS P:
Net Assets	$	336
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		32,219
Net Asset Value, Redemption Price Per Share	$	10.44
Maximum Sales Load§§		4.25	%
Maximum Sales Charge	$	0.46
Maximum Offering Price Per Share	$	10.90
CLASS H:
Net Assets	$	37
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		3,557
Net Asset Value, Redemption Price Per Share	$	10.44
Maximum Sales Load§§		4.00	%
Maximum Sales Charge	$	0.44
Maximum Offering Price Per Share	$	10.88
CLASS L:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		972
Net Asset Value, Offering and Redemption Price Per Share	$	10.44
(1) Including: Securities on Loan, at Value:	$	8,579

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

§§  Effective February 25, 2013, the Trustees approved the imposition of a maximum initial sales charge of 4.25% on purchases of Class P shares of the Portfolio and an increase in the maximum initial sales charge on purchases of Class H shares of the Portfolio from 3.50% to 4.00%.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Core Fixed Income Portfolio

Statement of Operations	Six Months Ended March 28, 2013 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	783
Income from Securities Loaned — Net		6
Interest from Securities of Affiliated Issuers		5
Dividends from Security of Affiliated Issuer		2
Total Investment Income		796
Expenses:
Advisory Fees (Note B)		102
Sub Transfer Agency Fees		41
Professional Fees		38
Registration Fees		32
Administration Fees (Note C)		22
Pricing Fees		14
Custodian Fees (Note F)		13
Shareholder Reporting Fees		13
Transfer Agency Fees (Note E)		6
Trustees' Fees and Expenses		2
Shareholder Services Fees — Class P (Note D)		—	@
Shareholder Services Fees — Class H (Note D)		—	@
Distribution and Shareholder Services Fees — Class L (Note D)		—	@
Other Expenses		3
Total Expenses		286
Waiver of Advisory Fees (Note B)		(102	)
Expenses Reimbursed by Adviser (Note B)		(48	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Expense Offset (Note F)		(—	@)
Net Expenses		134
Net Investment Income		662
Realized Gain:
Investments Sold		591
Futures Contracts		48
Swap Agreements		4
Net Realized Gain		643
Change in Unrealized Appreciation (Depreciation):
Investments		(1,005	)
Investments in Affiliates		2
Futures Contracts		(30	)
Swap Agreements		(19	)
Net Change in Unrealized Appreciation (Depreciation)		(1,052	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(409	)
Net Increase in Net Assets Resulting from Operations	$	253

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Core Fixed Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 28, 2013R (unaudited) (000)			Year Ended September 30, 2012 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	662		$	1,698
Net Realized Gain		643			1,478
Net Change in Unrealized Appreciation (Depreciation)		(1,052	)		1,356
Net Increase in Net Assets Resulting from Operations		253			4,532
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(857	)		(2,115	)
Class P:
Net Investment Income		(5	)		(3	)
Class H:
Net Investment Income		(2	)		(—	@)*
Class L:
Net Investment Income		(—	@)		(—	@)*
Total Distributions		(864	)		(2,118	)
Capital Share Transactions:(1)
Class I:
Subscribed		492			1,368
Distributions Reinvested		856			2,115
Redeemed		(5,181	)		(12,743	)
Class P:
Subscribed		71			304
Distributions Reinvested		5			3
Redeemed		(65	)		(28	)
Class H:
Subscribed		240			10	*
Distributions Reinvested		2			—
Redeemed		(213	)		—
Class L:
Subscribed		—			10	*
Net Decrease in Net Assets Resulting from Capital Share Transactions		(3,793	)		(8,961	)
Total Decrease in Net Assets		(4,404	)		(6,547	)
Net Assets:
Beginning of Period		57,363			63,910
End of Period (Including Undistributed Net Investment Income of $566 and $768)	$	52,959		$	57,363
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		48			134
Shares Issued on Distributions Reinvested		82			210
Shares Redeemed		(498	)		(1,248	)
Net Decrease in Class I Shares Outstanding		(368	)		(904	)
Class P:
Shares Subscribed		7			30
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(6	)		(3	)
Net Increase in Class P Shares Outstanding		1			27
Class H:
Shares Subscribed		23			1	*
Shares Issued on Distributions Reinvested		—	@@		—
Shares Redeemed		(20	)		—
Net Increase in Class H Shares Outstanding		3			1	*
Class L:
Shares Subscribed		—			1	*

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

*  For the period April 27, 2012 through September 30, 2012.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Core Fixed Income Portfolio

	Class I
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	10.50		$	10.08		$	9.96		$	9.49		$	9.18		$	10.77
Income (Loss) from Investment Operations:
Net Investment Income†		0.12			0.29			0.34			0.34			0.34			0.53
Net Realized and Unrealized Gain (Loss)		(0.07	)		0.48			0.08			0.45			0.57			(1.60	)
Total from Investment Operations		0.05			0.77			0.42			0.79			0.91			(1.07	)
Distributions from and/or in Excess of:
Net Investment Income		(0.16	)		(0.35	)		(0.30	)		(0.32	)		(0.60	)		(0.52	)
Redemption Fees		—			—			—			—			0.00	‡		0.00	‡
Net Asset Value, End of Period	$	10.39		$	10.50		$	10.08		$	9.96		$	9.49		$	9.18
Total Return++		0.48	%#		7.83	%		4.34	%		8.57	%		10.41	%		(10.40	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	52,576		$	57,013		$	63,866		$	75,651		$	93,768		$	186,305
Ratio of Expenses to Average Net Assets (1)		0.49	%*+††		0.49	%+		0.50	%+††		0.50	%+††		0.50	%+		0.49	%+
Ratio of Net Investment Income to Average Net Assets (1)		2.45	%*+††		2.80	%+		3.43	%+††		3.58	%+††		3.73	%+		5.11	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.00	%§		0.00	%§		0.01	%		0.01	%
Portfolio Turnover Rate		100	%#		216	%		234	%		261	%		437	%		306	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.05	%*††		0.97	%		0.99	%††		0.67	%+††		0.61	%+		0.53	%+
Net Investment Income to Average Net Assets		1.89	%*††		2.32	%		2.94	%††		3.41	%+††		3.62	%+		5.07	%+

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Core Fixed Income Portfolio

	Class P
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	10.56		$	10.14		$	10.01		$	9.53		$	9.12		$	10.71
Income (Loss) from Investment Operations:
Net Investment Income†		0.11			0.23			0.31			0.32			0.31			0.50
Net Realized and Unrealized Gain (Loss)		(0.08	)		0.52			0.09			0.46			0.58			(1.60	)
Total from Investment Operations		0.03			0.75			0.40			0.78			0.89			(1.10	)
Distributions from and/or in Excess of:
Net Investment Income		(0.15	)		(0.33	)		(0.27	)		(0.30	)		(0.48	)		(0.49	)
Redemption Fees		—			—			—			—			0.00	‡		0.00	‡
Net Asset Value, End of Period	$	10.44		$	10.56		$	10.14		$	10.01		$	9.53		$	9.12
Total Return++		0.36	%#		7.55	%		4.11	%		8.47	%		10.10	%		(10.68	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	336		$	330		$	44		$	209		$	214		$	487
Ratio of Expenses to Average Net Assets (1)		0.74	%*+††		0.74	%+		0.75	%+††		0.75	%+††		0.75	%+		0.74	%+
Ratio of Net Investment Income to Average Net Assets (1)		2.20	%*+††		2.25	%+		3.18	%+††		3.33	%+††		3.48	%+		4.87	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.00	%§		0.00	%§		0.01	%		0.01	%
Portfolio Turnover Rate		100	%#		216	%		234	%		261	%		437	%		306	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.30	%*††		1.33	%		1.24	%††		0.92	%+††		0.86	%+		0.78	%+
Net Investment Income to Average Net Assets		1.64	%*††		1.66	%		2.69	%††		3.16	%+††		3.37	%+		4.84	%+

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Core Fixed Income Portfolio

	Class H
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R (unaudited)			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.56		$	10.29
Income (Loss) from Investment Operations:
Net Investment Income†		0.11			0.07
Net Realized and Unrealized Gain (Loss)		(0.08	)		0.28
Total from Investment Operations		0.03			0.35
Distributions from and/or in Excess of:
Net Investment Income		(0.15	)		(0.08	)
Net Asset Value, End of Period	$	10.44		$	10.56
Total Return++		0.30	%#		3.37	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	37		$	10
Ratio of Expenses to Average Net Assets (1)		0.74	%*+††		0.74	%*+
Ratio of Net Investment Income to Average Net Assets (1)		2.20	%*+††		1.68	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%*
Portfolio Turnover Rate		100	%#		216	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.30	%*††		1.37	%*
Net Investment Income to Average Net Assets		1.64	%*††		1.05	%*

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

The accompanying notes are an integral part of the financial statements.
16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Core Fixed Income Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R (unaudited)			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.55		$	10.29
Income (Loss) from Investment Operations:
Net Investment Income†		0.10			0.06
Net Realized and Unrealized Gain (Loss)		(0.08	)		0.27
Total from Investment Operations		0.02			0.33
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.07	)
Net Asset Value, End of Period	$	10.44		$	10.55
Total Return++		0.23	%#		3.23	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratio of Expenses to Average Net Assets (1)		0.99	%*+††		0.99	%*+
Ratio of Net Investment Income to Average Net Assets (1)		1.95	%*+††		1.45	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%*
Portfolio Turnover Rate		100	%#		216	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.55	%*††		1.58	%*
Net Investment Income to Average Net Assets		1.39	%*††		0.86	%*

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

The accompanying notes are an integral part of the financial statements.
17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("MSIFT'' or the "Fund'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Fund is comprised of seven separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Core Fixed Income Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers four classes of shares — Class I, Class P, Class H and Class L.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Fund in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

1.  Security Valuation: (1) Bonds and other fixed income securities may be valued according to the broadest and most representative market. In addition, bonds and other fixed income securities may be valued on the basis of prices provided by a pricing service. The prices provided by a pricing service take into account broker-dealer market price quotations for institutional size trading in similar groups of securities, security quality, maturity, coupon and other security characteristics as well as any developments related to the specific securities; (2) futures are valued at the latest price published by the commodities exchange on which they trade; (3) swaps are marked-to-market daily based upon quotations from market makers; (4) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc., (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees (the "Trustees"). Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of

business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (6) short-term debt securities having a maturity date of more than sixty days at the time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost, which approximates fair value.

Under procedures approved by the Trustees, the Fund's Adviser has formed a Valuation Committee. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Trustees. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurements and Disclosures" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below.

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange

(for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Portfolio's investments as of March 28, 2013.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Fixed Rate Mortgages	$	—	$	13,606	$	—	$	13,606
Asset-Backed Securities		—		2,610		—		2,610
Collateralized Mortgage Obligations — Agency Collateral Series		—		5,085		—		5,085
Commercial Mortgage-Backed Securities		—		2,570		—		2,570
Corporate Bonds		—		17,246		—		17,246
Municipal Bonds		—		709		—		709
Sovereign		—		2,360		—		2,360
U.S. Agency Securities		—		1,285		—		1,285
U.S. Treasury Securities		—		6,676		—		6,676
Total Fixed Income Securities		—		52,147		—		52,147
Short-Term Investments
Investment Company		10,815		—		—		10,815
Repurchase Agreement		—		915		—		915
U.S. Treasury Security		—		25		—		25
Total Short-Term Investments		10,815		940		—		11,755
Futures Contracts		5		—		—		5
Credit Default Swap Agreements		—		1		—		1
Interest Rate Swap Agreements		—		1		—		1
Total Assets		10,820		53,089		—		63,909

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Liabilities:
Futures Contracts	$	(35	)	$	—		$	—	$	(35	)
Credit Default Swap Agreements		—			(2	)		—		(2	)
Interest Rate Swap Agreements		—			(44	)		—		(44	)
Total Liabilities		(35	)		(46	)		—		(81	)
Total	$	10,785		$	53,043		$	—	$	63,828

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of March 28, 2013, the Portfolio did not have any investments transfer between investment levels.

3.  Derivatives: The Portfolio may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based on the value of an underlying asset, interest rate, index or financial instrument. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which they relate, and risks that the transactions may not be liquid. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Portfolio's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and risk for loss. Leverage associated with derivative transactions may cause the Portfolio to liquidate portfolio positions when it may not be advantageous to do so to

satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission rules and regulations, or may cause the Portfolio to be more volatile than if the Portfolio had not been leveraged. Although the Adviser seeks to use derivatives to further the Portfolio's investment objectives, there is no assurance that the use of derivatives will achieve this result.

Following is a description of the derivative instruments and techniques that the Portfolio used during the period and their associated risks:

Futures: A futures contract is a standardized agreement between two parties to buy or sell a specific quantity of an underlying instrument at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures can be highly volatile, using futures can lower total return, and the potential loss from futures can exceed the Portfolio's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time.

Swaps: An over-the-counter ("OTC") swap agreement is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indexes, reference rates, currencies or other instruments. A small percentage of swap agreements are cleared through a central clearing house. Most swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Portfolio's

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

obligations or rights under a swap agreement entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each counterparty. In a zero coupon interest rate swap, payment only occurs at maturity, at which time one counterparty pays the total compounded fixed rate over the life of the swap and the other pays the total compounded floating rate that would have been earned had a series of floating rate investments been rolled over through the life of the swap. Most swap agreements are not entered into or traded on exchanges and there is no central clearing or guaranty function for swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Swaps could result in losses if interest rate or foreign currency exchange rates or credit quality changes are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments will require the clearing and exchange-trading of many OTC swap agreements. Mandatory exchange-trading and clearing will occur on a phased-in basis.

The Portfolio enters into credit default, interest rate and other forms of swap agreements to manage exposure to credit and interest rate risks.

The Portfolio's use of swaps during the period included those based on the credit of an underlying security and commonly referred to as credit default swaps. Where a Portfolio is the buyer of a credit default swap agreement, it would be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the agreement only in the event of a default by a third party on the debt obligation. If no default occurs, a Portfolio would have paid to the counterparty a periodic stream of payments over the term of the agreement and received no benefit from the agreement. When a Portfolio is the seller of a credit default swap agreement, it receives the stream of payments but is obligated to pay an amount equal to the par (or other agreed upon) value of a referenced debt obligation upon default of the referenced debt obligation.

The current credit rating of each individual issuer is listed in the table following the Portfolio of Investments and serves as an indicator of the current status of the payment/performance risk of the credit derivative.

Alternatively, for credit default swaps on an index of credits, the quoted market prices and current values serve as an indicator of the current status of the the payment/performance risk of the credit derivative. Generally, lower credit ratings and increasing market values, in absolute terms, represent a deterioration of the credit and a greater likelihood of an adverse credit event of the issuer.

When the Portfolio has an unrealized loss on a swap agreement, the Portfolio has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. Cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities. Cash collateral has been offset against open swap agreements under the provisions of FASB ASC 210 "Balance Sheet" ("ASC 210"). Offsetting of Amounts Related to Certain Contracts, an interpretation of ASC 210-20, are included within "Unrealized Appreciation (Depreciation) on Swap Agreements" in the Statement of Assets and Liabilities. For cash collateral received, the Portfolio pays a monthly fee to the counterparty based on the effective rate for Federal Funds. This fee, when paid, is included within realized gain (loss) on swap agreements in the Statement of Operations.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability in the Statement of Assets and Liabilities.

FASB ASC 815, "Derivatives and Hedging: Overall" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Portfolio uses derivative instruments, how these derivative instruments are accounted for and their effects on the Portfolio's financial position and results of operations.

The following table sets forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 28, 2013.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure		Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk		$	5	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements		Credit Risk		1
Swap Agreements	Unrealized Appreciation on Swap Agreements		Interest Rate Risk		1
Total				$	7

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure		Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk		$	(35	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements		Credit Risk		(2	)
Swap Agreements	Unrealized Depreciation on Swap Agreements		Interest Rate Risk		(44	)
Total				$	(81	)

(a) This amount represents the cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. The Statement of Assets and Liabilities only reflects the current day's net variation margin.

The following tables set forth by primary risk exposure the Portfolio's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 28, 2013 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	48
Credit Risk	Swap Agreements		10
Interest Rate Risk	Swap Agreements		(6	)
Total		$	52
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(30	)
Credit Risk	Swap Agreements		(1	)
Interest Rate Risk	Swap Agreements		(18	)
Total		$	(49	)

For the six months ended March 28, 2013, the average monthly original value of futures contracts was approximately $25,671,000 and the average monthly notional amount of swap agreements was approximately $14,349,000.

4.  Securities Lending: The Portfolio lends securities to qualified financial institutions, such as broker-dealers, to earn additional income. Any increase or decrease in the fair value of the securities loaned that might occur and any interest earned or dividends declared on those securities during the term of the loan would remain in the Portfolio. The Portfolio would receive cash or securities as collateral in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily, by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an

affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned-Net" in the Portfolio's Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

The value of loaned securities and related collateral outstanding at March 28, 2013 were approximately $8,579,000 and $8,783,000, respectively. The Portfolio received cash collateral of approximately $8,783,000, of which, approximately $8,782,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. At March 28, 2013, there was uninvested cash collateral of approximately $1,000, which is not reflected in the Portfolio of Investments. The Portfolio has the right under the lending agreement to recover the securities from the borrower on demand.

5.  When-Issued/Delayed Delivery Securities: The Portfolio purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the Portfolio on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place up to 120 days after the date of the transaction. When the Portfolio enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral in an amount at least equal in value to the Portfolio's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower than the agreed upon purchase price, in which case there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Portfolio.

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

6.  Indemnifications: The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

7.  Dividends and Distributions to Shareholders: Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid quarterly. Net realized capital gains, if any, are distributed at least annually.

8.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Portfolio with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.375% of the average daily net assets of the Portfolio. For the period ended March 28, 2013, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.00% of the Portfolio's daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.50% for Class I shares, 0.75% for Class P shares, 0.75% for Class H shares and 1.00% for Class L shares. The fee waivers and/or expense reimbursements will continue for at least one year or until such time that the

Fund's Board of Trustees acts to discontinue all or a portion of such waivers and/or reimbursements when it deems such action is appropriate. For the six months ended March 28, 2013, approximately $150,000 of advisory fees were waived and/or reimbursed pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street, State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted Shareholder Services Plans with respect to Class P and Class H shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plans, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class P and Class H shares.

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.25% and a shareholder service fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class L shares.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class P, Class H and Class L shares.

E. Dividend Disbursing and Transfer Agent: The Fund's dividend disbursing and transfer agent is Morgan Stanley Services Company Inc. ("Morgan Stanley Services"). Pursuant to a Transfer Agency Agreement, the Fund pays Morgan Stanley Services a fee based on the number of classes, accounts and transactions relating to the Portfolios of the Fund.

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Fund in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Fund as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

The Fund has entered into an arrangement with its Custodian whereby credits realized on uninvested cash balances may be used to offset a portion of the Portfolio's expenses. If applicable, these custodian credits are shown as "Expense Offset" in the Statement of Operations.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 28, 2013, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $8,803,000 and $7,720,000, respectively. For the six months ended March 28, 2013, purchases and sales of long-term U.S. Government securities were approximately $45,529,000 and $50,076,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly, and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 28, 2013, advisory fees paid were reduced by approximately $2,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 28, 2013 is as follows:

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 28, 2013 (000)
$	9,560	$	23,996	$	22,741	$	2	$	10,815

For the six months ended March 28, 2013, the Portfolio had transactions with Citigroup, Inc., and its affiliated broker-dealers which may be deemed affiliates of the Adviser, Administrator and Distributor under Section 17 of the Act.

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Realized Gain (000)		Interest Income (000)		Value March 28, 2013 (000)
$	179		—		—		—	$	5	$	181

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

H. Federal Income Taxes: It is the Portfolio's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for Federal income taxes is required in the financial statements.

Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recognized on the accrual basis. Dividends from net investment income, if any, are declared and paid quarterly. Net realized capital gains, if any, are distributed at least annually.

The Portfolio may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10 "Income Taxes — Overall" sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Portfolio files tax returns with

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended 2012, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal 2012 and 2011 was as follows:

2012 Distributions Paid From: Ordinary Income (000)		2011 Distributions Paid From: Ordinary Income (000)
$	2,118	$	2,135

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, primarily due to basis adjustments for swap transactions and paydown adjustments, resulted in the following reclassifications among the components of net assets at September 30, 2012:

Accumulated Undistributed Net Investment Income (000)		Accumulated Net Realized Loss (000)			Paid-in Capital (000)
$	212	$	(212	)		—

At September 30, 2012, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	769		—

At March 28, 2013, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $2,399,000 and the aggregate gross unrealized depreciation is approximately $324,000 resulting in net unrealized appreciation of approximately $2,075,000.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Modernization Act") was signed into law. The Modernization Act modernizes several tax provisions related to Regulated Investment Companies ("RICs") and their shareholders. One key change made by the Modernization Act is that capital losses will generally retain their character as short-term or long-term and may be carried forward indefinitely to offset future gains. These losses are utilized before other capital loss carryforwards that expire. Generally, the Modernization Act is effective for taxable years beginning after December 22, 2010.

At September 30, 2012 the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	34,679	September 30, 2017
	3,319	September 30, 2018

To the extent that capital loss carryforwards are used to offset any future capital gains realized during the carryover period as provided by U.S. Federal income tax regulations, no capital gains tax liability will be incurred by the Portfolio for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders. During the year ended September 30, 2012, the Portfolio utilized capital loss carryforwards for U.S. Federal income tax purposes of approximately $1,347,000.

I. Accounting Pronouncement: In January 2013, Accounting Standard Update 2013-01 ("ASU 2013-01"), "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," replaced Accounting Standards Update 2011-11 ("ASU 2011-11"), "Disclosures about Offsetting Assets and Liabilities." ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact, if any, on the Portfolio's financial statements.

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

We are required by federal law to provide you with notice of our U.S. privacy policy ("Policy"). This Policy applies to both our current and former clients unless we state otherwise and is intended for individual clients who purchase products or receive services from us for personal, family or household purposes. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders, nor is this Policy applicable to individuals who are either beneficiaries of a trust for which we serve as trustee or participants in an employee benefit plan administered or advised by us. This Policy is, however, applicable to individuals who select us to be a custodian of securities or assets in individual retirement accounts, 401(k) accounts, or accounts subject to the Uniform Gifts to Minors Act.

This notice sets out our business practices to protect your privacy; how we collect and share personal information about you; and how you can limit our sharing or certain uses by others of this information. We may amend this Policy at any time, and will inform you of any changes to our Policy as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information and understand your concerns about your information. We strive to safeguard the information our clients entrust to us. Protecting the confidentiality and security of client information is an important part of how we conduct our business.

This notice describes what personal information we collect about you, how we collect it, when we may share it with others, and how certain others may use it. It discusses the steps you may take to limit our sharing of certain information about you with our affiliated companies, including, but not limited to our affiliated banking businesses, brokerage firms and credit service affiliates. It also discloses how you may limit our affiliates' use of shared information for marketing purposes.

Throughout this Policy, we refer to the nonpublic information that personally identifies you as "personal information." We also use the term "affiliated company" in this notice. An affiliated company is a company in our family of companies and includes companies with the Morgan Stanley name. These affiliated companies are financial institutions such as broker-dealers, banks, investment advisers and credit card issuers. We refer to any company that is not an affiliated company as a nonaffiliated third party. For purposes of Section 5 of this notice, and your ability to limit certain uses of personal information by our affiliates, this notice applies to the use of personal information by our affiliated companies.

1.  WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

We may collect the following types of information about you: (i) information provided by you, including information from applications and other forms we receive from you, (ii) information about your transactions with us or our affiliates, (iii) information about your transactions with nonaffiliated third parties, (iv) information from consumer reporting agencies, (v) information obtained from our websites, and (vi) information obtained from other sources. For example:

•  We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

•  We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources.

•  We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

•  We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2.  WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

a. Information we disclose to affiliated companies.

We may disclose personal information that we collect about you to our affiliated companies to manage your account(s) effectively, to service and process your transactions, and to let you know about products and services offered by us and affiliated companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from affiliated companies are developed under conditions designed to safeguard your personal information.

b. Information we disclose to third parties.

We may disclose personal information that we collect about you to nonaffiliated third parties to provide marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. We may also disclose all of the information we collect to other nonaffiliated third parties for our everyday business purposes, such as to process transactions, maintain account(s), respond to court orders and legal investigations, report to credit bureaus, offer our own products and services, protect against fraud, for institutional risk control, to perform services on our behalf, and as otherwise required or permitted by law.

When we share personal information about you with a nonaffiliated third party, they are required to limit their use of personal information about you to the particular purpose for which it was shared and they are not allowed to share personal information about you with others except to fulfill that limited purpose or as may be permitted or required by law.

3.  HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We maintain physical, electronic and procedural security measures that comply with applicable law and regulations to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information by employees. Third parties that provide support or marketing services on our behalf may also receive personal information about you, and we require them to adhere to appropriate security standards with respect to such information.

4.  HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

By following the opt-out procedures in Section 6 below, you may limit the extent to which we share with our affiliated companies, personal information that was collected to determine your eligibility for products and services such as your credit reports and other information that you have provided to us or that we may obtain from third parties ("eligibility information"). Eligibility information does not include your identification information or personal information pertaining to our transactions or experiences with you. Please note that, even if you direct us not to share eligibility information with our affiliated companies, we may still share your personal information, including eligibility information, with our affiliated companies under circumstances that are permitted under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit our affiliated companies from marketing their products or services to you based on personal information we disclose to them. This information may include, for example, your income and account history with us. Please note that, even if you choose to limit our affiliated companies from using personal information about you that we may share with them for marketing their products and services to you, our affiliated companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the affiliated party has its own relationship with you.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

6.  HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

If you wish to limit our sharing of eligibility information about you with our affiliated companies, or our affiliated companies' use of personal information for marketing purposes, as described in this notice, you may do so by:

•  Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 5p.m. (EST)

•  Writing to us at the following address:

  Morgan Stanley Services Company Inc.
c/o Privacy Coordinator
201 Plaza Two, 3rd Floor
Jersey City, New Jersey 07311

If you choose to write to us, your request should include: your name, address, telephone number and account number(s) to which the opt-out applies and whether you are opting out with respect to sharing of eligibility information (Section 4 above), or information used for marketing (Section 5 above), or both. Written opt-out requests should not be sent with any other correspondence. In order to process your request, we require that the request be provided by you directly and not through a third party. Once you have informed us about your privacy preferences, your opt-out preference will remain in effect with respect to this Policy (as it may be amended) until you notify us otherwise. If you are a joint account owner, we will accept instructions from any one of you and apply those instructions to the entire account.

Please understand that if you limit our sharing or our affiliated companies' use of personal information, you and any joint account holder(s) may not receive information about our affiliated companies' products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

If you have more than one account or relationship with us, please specify the accounts to which you would like us to apply your privacy choices. If you have accounts or relationships with our affiliates, you may receive multiple privacy policies from them, and will need to separately notify those companies of your privacy choices for those accounts or relationships.

7.  WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

If, at any time in the future, an affiliated company becomes a nonaffiliated third party, further disclosures of personal information made to the former affiliated company will be limited to those described in Section 2(b) above relating to nonaffiliated third parties. If you elected under Section 6 to limit disclosures we make to affiliated companies, or use of personal information by affiliated companies, your election will not apply to use by any former affiliated company of your personal information in their possession once it becomes a nonaffiliated third party.

SPECIAL NOTICE TO RESIDENTS OF VERMONT

The following section supplements our Policy with respect to our individual clients who have a Vermont address and supersedes anything to the contrary in the above Policy with respect to those clients only.

The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with nonaffiliated third parties, or eligibility information with affiliated companies, other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or eligibility information with affiliated companies, unless you provide us with your written consent to share such information.

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

The following section supplements our Policy with respect to our individual clients who have a California address and supersedes anything to the contrary in the above Policy with respect to those clients only.

In response to a California law, if your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us.

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Trustee and Officer Information (unaudited)

Trustees

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

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

Morgan Stanley Services Company Inc.
P.O. Box 219804
Kansas City, Missouri 64121

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

Arthur Lev
President and Principal Executive Officer

Mary Ann Picciotto
Chief Compliance Officer

Stefanie V. Chang Yu
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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You may obtain a copy of the Fund's Proxy Voting Policy and Procedures and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus of the Morgan Stanley Institutional Fund Trust which describes in detail each Investment Portfolio's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Portfolio, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

29

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2013 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTFXDINCSAN
656034 EXP [05/31/14]

INVESTMENT MANAGEMENT

Morgan Stanley
Institutional Fund Trust

Core Plus Fixed Income Portfolio

Semi-Annual Report

March 28, 2013

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	12
Statement of Operations	14
Statements of Changes in Net Assets	15
Financial Highlights	16
Notes to Financial Statements	20
U.S. Privacy Policy	30
Trustee and Officer Information	33

This report is authorized for distribution only when preceded or accompanied by prospectuses of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or SAI, which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations, and describes in detail each of the Portfolio's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access portfolio information including performance, characteristics, and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im.

Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Portfolio in the future. There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that market values of securities owned by the Portfolio will decline and, therefore, the value of the Portfolio's shares may be less than what you paid for them. Accordingly, you can lose money investing in Portfolios. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Semi-Annual report, in which you will learn how your investment in Core Plus Fixed Income Portfolio performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

Arthur Lev
President and Principal Executive Officer

April 2013

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Expense Example (unaudited)

Core Plus Fixed Income Portfolio

As a shareholder of the Portfolio, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, including advisory fees, administration fees, distribution and shareholder services fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 28, 2013 and held for the entire six-month period.

Actual Expenses

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

Please note that "Actual Expenses Paid During Period" are grossed up to reflect Portfolio expenses prior to the effect of Expense Offset (See Note F in the Notes to Financial Statements). Therefore, the annualized net expense ratios may differ from the ratio of expenses to average net assets shown in the Financial Highlights.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/12		Actual Ending Account Value 3/28/13		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Core Plus Fixed Income Portfolio Class I	$	1,000.00	$	1,015.60	$	1,021.19	$	3.36	$	3.37		0.68	%
Core Plus Fixed Income Portfolio Class P		1,000.00		1,013.30		1,019.96		4.59		4.61		0.93
Core Plus Fixed Income Portfolio Class H		1,000.00		1,014.30		1,019.96		4.59		4.61		0.93
Core Plus Fixed Income Portfolio Class L		1,000.00		1,012.10		1,018.73		5.82		5.84		1.18

*  Expenses are calculated using each Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 179/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments

Core Plus Fixed Income Portfolio

	Face Amount (000)			Value (000)
Fixed Income Securities (97.1%)
Agency Adjustable Rate Mortgage (0.8%)
Federal National Mortgage Association,
Conventional Pool
2.34%, 5/1/35	$	1,593		$	1,697
Agency Fixed Rate Mortgages (26.7%)
Federal Home Loan Mortgage Corporation,
April TBA:
3.50%, 4/1/43 (a)		810			853
Conventional Pools:
12.00%, 2/1/15		—	@		—	@
13.00%, 6/1/19		—	@		—	@
Gold Pools:
3.50%, 8/1/42		1,062			1,121
4.50%, 6/1/39 - 3/1/41		7,613			8,288
5.00%, 10/1/35		205			222
6.00%, 10/1/36 - 8/1/38		1,129			1,238
6.50%, 3/1/16 - 8/1/33		364			421
7.00%, 6/1/28 - 11/1/31		103			124
Federal National Mortgage Association,
April TBA:
2.50%, 4/1/28 (a)		1,750			1,816
3.50%, 4/1/43 (a)		6,866			7,252
4.00%, 4/1/43 (a)		1,105			1,178
Conventional Pools:
3.50%, 12/1/42		3,582			3,792
4.00%, 11/1/41 - 1/1/42		9,550			10,193
5.00%, 1/1/37 - 3/1/41		2,365			2,582
5.50%, 6/1/35 - 5/1/41		7,022			7,760
6.00%, 5/1/38		991			1,087
6.50%, 11/1/23 - 1/1/34		3,833			4,420
7.00%, 11/1/13 - 1/1/34		623			731
8.50%, 1/1/15		2			2
9.50%, 4/1/30		559			674
12.00%, 11/1/15		17			17
12.50%, 9/1/15		2			3
Government National Mortgage Association,
April TBA:
4.00%, 4/15/43 (a)		900			974
Various Pools:
4.00%, 8/20/41 - 11/20/42		1,628			1,765
4.50%, 8/15/39		575			632
					57,145
Asset-Backed Securities (1.8%)
Contimortgage Home Equity Trust
8.10%, 8/15/25		39			39
CVS Pass-Through Trust
6.04%, 12/10/28		467			550
Mid-State Trust IV
8.33%, 4/1/30		27			28
Santander Drive Auto Receivables Trust,
Series 2010-3
3.06%, 11/15/17		1,075			1,110

	Face Amount (000)		Value (000)
Textainer Marine Containers Ltd.
4.70%, 6/15/26 (b)	$	619	$	628
U-Haul S Fleet LLC
4.90%, 10/25/23 (b)		1,308		1,402
				3,757
Collateralized Mortgage Obligations — Agency Collateral Series (5.1%)
Federal Home Loan Mortgage Corporation,
IO
0.68%, 1/25/21 (c)		10,010		391
IO PAC REMIC
6.27%, 6/15/40 (c)		9,652		1,857
IO REMIC
5.85%, 4/15/39 (c)		3,226		730
IO STRIPS
7.50%, 12/1/29		78		14
8.00%, 1/1/28		132		23
PAC REMIC
9.50%, 4/15/20		1		1
REMIC
3.50%, 12/15/42		1,337		1,333
Federal National Mortgage Association,
IO
6.19%, 9/25/20 (c)		5,150		1,425
IO PAC REMIC
8.00%, 9/18/27		338		68
IO REMIC
5.00%, 8/25/37		948		30
6.00%, 7/25/33		412		70
6.40%, 9/25/38 (c)		2,685		625
IO STRIPS
6.50%, 9/1/29 - 12/1/29		1,467		322
8.00%, 4/1/24		404		75
8.50%, 10/1/25		112		25
9.00%, 11/1/26		105		27
REMIC
7.00%, 9/25/32		674		792
9.19%, 10/25/41 (c)(d)		704		726
63.21%, 9/25/20 (c)(d)		7		14
Government National Mortgage Association,
IO
5.00%, 2/16/41		789		147
5.85%, 11/16/40 (c)		4,440		897
6.40%, 4/16/41 (c)		5,589		1,277
				10,869
Commercial Mortgage-Backed Securities (1.4%)
DBUBS Mortgage Trust
5.45%, 7/10/44 (b)(c)		325		374
Extended Stay America Trust
3.90%, 12/5/31 (b)		740		748
GS Mortgage Securities Corp. II
2.80%, 11/8/29 (b)(c)		500		504

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (cont'd)
Ladder Capital Commercial Mortgage Mortgage Trust
4.34%, 2/15/36 (b)	$	158	$	163
WF-RBS Commercial Mortgage Trust,
3.71%, 3/15/45 (c)		140		145
Series 2012-C7
3.43%, 6/15/45		966		1,028
				2,962
Corporate Bonds (36.2%)
Finance (15.4%)
ABB Treasury Center USA, Inc.
2.50%, 6/15/16 (b)(e)		800		835
Abbey National Treasury Services PLC,
MTN
3.88%, 11/10/14 (b)		439		455
ABN Amro Bank N.V.
4.25%, 2/2/17 (b)		600		655
Aegon N.V.
4.63%, 12/1/15		480		523
Affiliated Managers Group, Inc.
3.95%, 8/15/38		269		335
Alexandria Real Estate Equities, Inc.
4.60%, 4/1/22		400		432
American Campus Communities Operating Partnership LP
3.75%, 4/15/23 (f)		250		252
American International Group, Inc.
6.40%, 12/15/20		375		465
Banco de Credito del Peru
6.13%, 4/24/27 (b)(c)		400		432
Barclays Bank PLC
6.05%, 12/4/17 (b)		650		727
BNP Paribas SA
2.38%, 9/14/17		465		472
Brookfield Asset Management, Inc.
5.80%, 4/25/17		300		339
Capital One Bank, USA NA
3.38%, 2/15/23		366		363
Cigna Corp.,
2.75%, 11/15/16		335		354
5.38%, 2/15/42		220		250
Citigroup, Inc. (See Note G),
4.05%, 7/30/22		165		171
5.88%, 5/29/37		264		313
8.50%, 5/22/19		469		626
CNA Financial Corp.
5.75%, 8/15/21		315		373
Commonwealth Bank of Australia
5.00%, 3/19/20 (b)		300		349
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
3.95%, 11/9/22		475		479

	Face Amount (000)		Value (000)
Coventry Health Care, Inc.
5.45%, 6/15/21	$	540	$	638
Credit Agricole SA
3.00%, 10/1/17 (b)(e)		575		596
Credit Suisse
6.00%, 2/15/18 (e)		369		428
Discover Bank
7.00%, 4/15/20		575		717
General Electric Capital Corp.,
Series G
6.00%, 8/7/19 (e)		694		844
Genworth Financial, Inc.
7.20%, 2/15/21		375		438
Goldman Sachs Group, Inc. (The)
2.38%, 1/22/18 (e)		1,880		1,908
Goodman Funding Pty Ltd.
6.38%, 4/15/21 (b)		850		990
Hartford Financial Services Group, Inc.
5.50%, 3/30/20 (e)		645		753
HBOS PLC,
Series G
6.75%, 5/21/18 (b)		813		908
Healthcare Trust of America Holdings LP
3.70%, 4/15/23 (b)		350		350
HSBC Finance Corp.
6.68%, 1/15/21		420		498
HSBC Holdings PLC
4.00%, 3/30/22 (e)		275		296
ING Bank N.V.
3.75%, 3/7/17 (b)		600		640
ING US, Inc.
5.50%, 7/15/22 (b)		400		443
Intesa Sanpaolo SpA
3.88%, 1/16/18		580		561
Jefferies Finance LLC/JFIN Co-Issuer Corp.
7.38%, 4/1/20 (b)		380		389
JPMorgan Chase & Co.,
4.50%, 1/24/22		225		247
4.63%, 5/10/21		380		425
JPMorgan Chase Bank NA
6.00%, 10/1/17		715		843
Kilroy Realty LP
3.80%, 1/15/23		325		334
Macquarie Bank Ltd.
6.63%, 4/7/21 (b)		490		548
Markel Corp.
3.63%, 3/30/23		450		453
Merrill Lynch & Co., Inc.,
MTN
6.88%, 4/25/18		908		1,097
MetLife, Inc.
7.72%, 2/15/19 (e)		285		371

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Mizuho Corporate Bank Ltd.
1.85%, 3/21/18 (b)(e)	$	485	$	487
Nationwide Building Society
6.25%, 2/25/20 (b)		645		756
Nationwide Financial Services, Inc.
5.38%, 3/25/21 (b)		450		498
Nordea Bank AB
4.88%, 5/13/21 (b)		765		829
PHH Corp.
4.00%, 9/1/14		287		317
Platinum Underwriters Finance, Inc.,
Series B
7.50%, 6/1/17 (e)		791		889
Principal Financial Group, Inc.
1.85%, 11/15/17		575		582
QBE Capital Funding III Ltd.
7.25%, 5/24/41 (b)(c)		550		578
Realty Income Corp.
3.25%, 10/15/22		400		392
Santander Holdings USA, Inc.,
3.00%, 9/24/15		105		108
4.63%, 4/19/16 (e)		250		268
Societe Generale SA
5.20%, 4/15/21 (b)(e)		455		509
Standard Chartered PLC
3.95%, 1/11/23 (b)		310		309
Swedbank AB
2.13%, 9/29/17 (b)		460		466
UnitedHealth Group, Inc.,
1.40%, 10/15/17		200		202
2.75%, 2/15/23		125		124
WellPoint, Inc.
2.75%, 10/15/42 (b)		330		362
Wells Fargo & Co.,
Series M
3.45%, 2/13/23		320		323
				32,914
Industrials (19.4%)
AbbVie, Inc.
2.90%, 11/6/22 (b)		450		451
Actavis, Inc.
3.25%, 10/1/22 (e)		225		229
Albea Beauty Holdings SA
8.38%, 11/1/19 (b)		600		642
Allegheny Technologies, Inc.
4.25%, 6/1/14		297		320
American Honda Finance Corp.
2.13%, 2/28/17 (b)		770		800
American Tower Corp.
3.50%, 1/31/23 (e)		375		373
Amgen, Inc.
3.88%, 11/15/21		400		437

	Face Amount (000)		Value (000)
Anheuser-Busch InBev Worldwide, Inc.
5.38%, 1/15/20	$	425	$	513
Anixter, Inc.
5.63%, 5/1/19		220		235
ARAMARK Corp.
5.75%, 3/15/20 (b)		410		421
ArcelorMittal
10.35%, 6/1/19 (e)		416		526
AT&T, Inc.,
5.35%, 9/1/40		150		161
6.30%, 1/15/38		500		602
Best Buy Co., Inc.
3.75%, 3/15/16 (e)		350		352
Boston Scientific Corp.
6.00%, 1/15/20		480		562
BP Capital Markets PLC
3.25%, 5/6/22		600		621
British Sky Broadcasting Group PLC
3.13%, 11/26/22 (b)(e)		350		350
Burlington Northern Santa Fe LLC
3.05%, 3/15/22		400		410
Canadian Oil Sands Ltd.
7.75%, 5/15/19 (b)		425		536
Cardinal Health, Inc.
3.20%, 3/15/23		420		419
CF Industries, Inc.
6.88%, 5/1/18		475		570
Chrysler Group LLC/CG Co-Issuer, Inc.
8.00%, 6/15/19 (e)		560		617
ConAgra Foods, Inc.,
3.20%, 1/25/23 (e)		180		180
4.65%, 1/25/43		225		225
Continental Resources, Inc.
7.13%, 4/1/21		305		347
CRH America, Inc.
6.00%, 9/30/16		580		660
Daimler Finance North America LLC
8.50%, 1/18/31		224		348
Deere & Co.
3.90%, 6/9/42		220		218
DirecTV Holdings LLC/DirecTV Financing Co., Inc.
3.80%, 3/15/22 (e)		200		205
Discovery Communications LLC
3.25%, 4/1/23 (e)		225		229
Eaton Corp.
2.75%, 11/2/22 (b)		425		423
Eldorado Gold Corp.
6.13%, 12/15/20 (b)(e)		380		396
Exide Technologies
8.63%, 2/1/18 (e)		219		189
Experian Finance PLC
2.38%, 6/15/17 (b)		635		648
Express Scripts Holding Co.
3.90%, 2/15/22		185		199

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Fiserv, Inc.
3.13%, 6/15/16	$	360	$	380
FMC Technologies, Inc.
3.45%, 10/1/22		235		239
Ford Motor Credit Co., LLC
4.21%, 4/15/16		860		916
Freeport-McMoRan Copper & Gold, Inc.,
2.38%, 3/15/18 (b)		255		256
3.88%, 3/15/23 (b)		200		201
Gap, Inc. (The)
5.95%, 4/12/21		645		738
Georgia-Pacific LLC
8.88%, 5/15/31		280		419
GlaxoSmithKline Capital, Inc.,
2.80%, 3/18/23		430		434
4.20%, 3/18/43		50		51
Goldcorp, Inc.,
2.00%, 8/1/14		335		350
3.70%, 3/15/23 (e)		420		423
Grupo Bimbo SAB de CV
4.88%, 6/30/20 (b)		435		493
Harley-Davidson Funding Corp.
6.80%, 6/15/18 (b)		630		775
Heathrow Funding Ltd.
4.88%, 7/15/21 (b)(e)		525		587
Hewlett-Packard Co.
4.65%, 12/9/21 (e)		155		161
Holcim US Finance Sarl & Cie SCS
6.00%, 12/30/19 (b)		483		565
Home Depot, Inc.
5.88%, 12/16/36		293		365
Host Hotels & Resorts LP,
Series D
3.75%, 10/15/23		150		151
Intel Corp.,
2.70%, 12/15/22		400		397
2.95%, 12/15/35		356		379
International Business Machines Corp.
1.88%, 5/15/19 (e)		650		668
International Game Technology
3.25%, 5/1/14		305		330
Kinross Gold Corp.
5.13%, 9/1/21 (e)		520		544
Lam Research Corp.
1.25%, 5/15/18 (e)		304		326
Life Technologies Corp.
6.00%, 3/1/20		295		331
MasTec, Inc.
4.88%, 3/15/23		395		392
MDC Partners, Inc.
6.75%, 4/1/20 (b)		420		426

	Face Amount (000)		Value (000)
MeadWestvaco Corp.
7.38%, 9/1/19	$	155	$	189
MetroPCS Wireless, Inc.
6.25%, 4/1/21 (b)(e)		545		557
Microsoft Corp.
Zero Coupon, 6/15/13 (b)		262		262
Murphy Oil Corp.
3.70%, 12/1/22 (e)		345		336
NBC Universal Media LLC,
2.88%, 1/15/23		250		248
5.95%, 4/1/41		400		484
NetApp, Inc.
2.00%, 12/15/17		200		201
News America, Inc.
6.15%, 2/15/41 (e)		125		150
Nuance Communications, Inc.
2.75%, 11/1/31		286		297
Omnicom Group, Inc.
3.63%, 5/1/22		455		466
ON Semiconductor Corp.,
Series B
2.63%, 12/15/26		290		330
Philip Morris International, Inc.
2.50%, 8/22/22		495		489
Phillips 66
4.30%, 4/1/22		225		247
Pioneer Natural Resources Co.
7.50%, 1/15/20 (e)		375		478
Priceline.com, Inc.
1.00%, 3/15/18 (e)		389		431
Qtel International Finance Ltd.
3.25%, 2/21/23 (b)		450		443
QVC, Inc.
4.38%, 3/15/23 (b)		400		405
Rogers Communications, Inc.
3.00%, 3/15/23		550		553
RR Donnelley & Sons Co.
7.88%, 3/15/21 (e)		545		571
SABMiller Holdings, Inc.
3.75%, 1/15/22 (b)		420		450
SanDisk Corp.
1.50%, 8/15/17 (e)		261		338
Schlumberger Norge AS
1.25%, 8/1/17 (b)		300		300
Schneider Electric SA
2.95%, 9/27/22 (b)		525		531
SK Telecom Co., Ltd.
2.13%, 5/1/18 (b)		200		201
Syngenta Finance N.V.
3.13%, 3/28/22		585		604
Telefonaktiebolaget LM Ericsson
4.13%, 5/15/22 (e)		300		313

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Teva Pharmaceutical Finance IV BV
3.65%, 11/10/21	$	525	$	560
Time Warner Cable, Inc.
4.50%, 9/15/42 (e)		205		187
Trinity Industries, Inc.
3.88%, 6/1/36		273		329
United States Steel Corp.
4.00%, 5/15/14		307		321
United Technologies Corp.
4.50%, 6/1/42		165		177
Verisk Analytics, Inc.
5.80%, 5/1/21 (e)		550		636
Volkswagen International Finance N.V.
2.38%, 3/22/17 (b)		550		571
Wal-Mart Stores, Inc.
5.25%, 9/1/35		290		342
Weatherford International Ltd.
4.50%, 4/15/22 (e)		400		413
Wesfarmers Ltd.
2.98%, 5/18/16 (b)		390		411
Westvaco Corp.
8.20%, 1/15/30		185		231
WMG Acquisition Corp.
6.00%, 1/15/21 (b)		485		510
WPP Finance 2010
3.63%, 9/7/22		550		548
Wyndham Worldwide Corp.
4.25%, 3/1/22		680		713
				41,534
Utilities (1.4%)
CEZ AS
4.25%, 4/3/22 (b)		210		224
DCP Midstream Operating LP
3.88%, 3/15/23 (e)		375		378
Delmarva Power & Light Co.
4.00%, 6/1/42		475		486
Enterprise Products Operating LLC
5.20%, 9/1/20 (e)		635		746
Exelon Generation Co., LLC
6.25%, 10/1/39		445		519
Plains All American Pipeline LP/PAA Finance Corp.
6.70%, 5/15/36		264		333
PPL WEM Holdings PLC
3.90%, 5/1/16 (b)		375		396
				3,082
				77,530
Mortgages — Other (7.3%)
Banc of America Alternative Loan Trust,
5.86%, 10/25/36 (c)		1,079		865
5.91%, 10/25/36 (c)		1,881		1,507
6.00%, 4/25/36		618		635

	Face Amount (000)		Value (000)
Banc of America Funding Trust,
0.49%, 7/20/36 (c)	$	720	$	632
0.57%, 8/25/36 (c)		306		291
Chaseflex Trust
6.00%, 2/25/37		1,694		1,344
First Horizon Alternative Mortgage Securities Trust
6.25%, 8/25/36		1,090		944
GSMSC Pass-Through Trust,
Series 2008-2R
7.50%, 9/25/36 (b)(c)		1,266		1,141
JP Morgan Mortgage Trust,
5.51%, 6/25/37 (c)		437		380
6.00%, 6/25/37		596		592
Lehman Mortgage Trust,
Series 2005-1
5.50%, 11/25/35		567		572
Series 2006-1
5.50%, 2/25/36		1,773		1,791
Series 2007-8
6.50%, 9/25/37		2,467		2,118
Springleaf Mortgage Loan Trust
3.56%, 12/25/59 (b)(c)		860		864
WaMu Mortgage Pass-Through Certificates
1.16%, 7/25/46 (c)		1,832		1,404
Washington Mutual Alternative Mortgage Pass-Through Certificates
0.95%, 4/25/47 (c)		809		607
				15,687
Municipal Bonds (1.6%)
City of Chicago, IL,
O'Hare International Airport Revenue
6.40%, 1/1/40		255		331
City of New York, NY,
Series G-1
5.97%, 3/1/36		270		345
Illinois State Toll Highway Authority,
Highway Revenue, Build America Bonds
6.18%, 1/1/34		477		607
Municipal Electric Authority of Georgia,
6.64%, 4/1/57		283		337
6.66%, 4/1/57		320		378
New York City, NY,
Transitional Finance Authority Future Tax Secured Revenue
5.27%, 5/1/27		320		390
State of California,
General Obligation Bonds
5.95%, 4/1/16		830		949
				3,337

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Sovereign (6.1%)
Banco Nacional de Desenvolvimento, Economico e Social
5.50%, 7/12/20 (b)	$	580	$	657
Brazilian Government International Bond
8.50%, 1/5/24		1,900		1,006
Caixa Economica Federal
3.50%, 11/7/22 (b)		410		394
Colombia Government International Bond
7.75%, 4/14/21		2,400,000		1,677
Eskom Holdings SOC Ltd.
5.75%, 1/26/21 (b)		1,000		1,087
KazMunaiGaz Finance Sub BV
6.38%, 4/9/21 (b)		900		1,052
Mexican Bonos
6.50%, 6/9/22		13,000		1,177
Peruvian Government International Bond,
(Units)
8.20%, 8/12/26 (b)(g)		2,200		1,190
Petroleos Mexicanos
4.88%, 1/24/22		1,000		1,110
Poland Government International Bond
5.00%, 3/23/22		1,170		1,339
Russian Foreign Bond - Eurobond
4.50%, 4/4/22 (b)(e)		1,000		1,092
South Africa Government Bond
7.25%, 1/15/20		6,200		705
Spain Government International Bond
4.00%, 3/6/18 (b)		650		645
				13,131
U.S. Agency Securities (1.7%)
Federal Home Loan Mortgage Corporation,
3.75%, 3/27/19 (e)		2,520		2,893
6.75%, 3/15/31		470		709
				3,602
U.S. Treasury Securities (8.4%)
U.S. Treasury Bond
3.13%, 11/15/41		8,880		8,934
U.S. Treasury Notes,
0.38%, 1/15/16		4,400		4,405
0.88%, 4/30/17		1,590		1,609
1.63%, 11/15/22		3,150		3,095
				18,043
Total Fixed Income Securities (Cost $199,372)				207,760
	Shares
Short-Term Investments (12.7%)
Securities held as Collateral on Loaned Securities (5.3%)
Investment Company (4.7%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		10,139,842		10,140

	Face Amount (000)		Value (000)
Repurchase Agreement (0.6%)
Barclays Capital, Inc., (0.15%, dated 3/28/13, due 4/1/13; proceeds $1,180; fully collateralized by a U.S. Government Obligation; U.S. Treasury Note 0.38% due 2/15/16; valued at $1,204)	$	1,180	$	1,180
Total Securities held as Collateral on Loaned Securities (Cost $11,320)				11,320
	Shares
Investment Company (5.1%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $10,811)		10,811,279		10,811
	Face Amount (000)
U.S. Treasury Security (2.3%)
U.S. Treasury Bill
0.11%, 11/14/13 (h) (Cost $4,997)	$	5,000		4,997
Total Short-Term Investments (Cost $27,128)				27,128
Total Investments (109.8%) (Cost $226,500) Including $11,083 of Securities Loaned (i)				234,888
Liabilities in Excess of Other Assets (-9.8%)				(21,035	)
Net Assets (100.0%)			$	213,853

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

(a)  Security is subject to delayed delivery.

(b)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(c)  Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 28, 2013.

(d)  Inverse Floating Rate Security — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at March 28, 2013.

(e)  All or a portion of this security was on loan at March 28, 2013.

(f)  When-issued security.

(g)  Consists of one or more classes of securities traded together as a unit.

(h)  Rate shown is the yield to maturity at March 28, 2013.

(i)  Securities are available for collateral in connection with purchase of when-issued securities, securities purchased on a forward commitment basis, open foreign currency exchange contracts, futures contracts and swap agreements.

@  Face Amount/Value is less than $500.

IO  Interest Only.

MTN  Medium Term Note.

PAC  Planned Amortization Class.

REMIC  Real Estate Mortgage Investment Conduit.

STRIPS  Separate Trading of Registered Interest and Principal of Securities.

TBA  To Be Announced.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Foreign Currency Exchange Contracts:

The Portfolio had the following foreign currency exchange contracts open at March 28, 2013 :

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
HSBC Bank PLC	AUD	3,431	$	3,572	4/2/13	USD	3,537	$	3,537	$	(35	)
HSBC Bank PLC	USD	663		663	4/2/13	ZAR	6,099		663		—	@
JPMorgan Chase	COP	3,250,000		1,780	4/2/13	USD	1,815		1,815		35
JPMorgan Chase	EUR	1,700		2,179	4/2/13	USD	2,180		2,180		1
JPMorgan Chase	USD	1,774		1,774	4/2/13	COP	3,250,000		1,781		7
UBS AG	USD	1,886		1,886	4/2/13	AUD	1,850		1,926		40
UBS AG	USD	2,273		2,273	4/2/13	EUR	1,700		2,180		(93	)
Wells Fargo Bank	CHF	2,100		2,212	4/2/13	USD	2,277		2,277		65
Wells Fargo Bank	USD	1,646		1,646	4/2/13	AUD	1,581		1,645		(1	)
Wells Fargo Bank	USD	2,205		2,205	4/2/13	CHF	2,100		2,212		7
Wells Fargo Bank	ZAR	6,099		663	4/2/13	USD	685		685		22
HSBC Bank PLC	ZAR	6,099		660	5/2/13	USD	660		660		—	@
JPMorgan Chase	USD	2,181		2,181	5/2/13	EUR	1,700		2,180		(1	)
Wells Fargo Bank	AUD	1,581		1,643	5/2/13	USD	1,643		1,643		—	@
Wells Fargo Bank	CHF	2,100		2,213	5/2/13	USD	2,206		2,206		(7	)
UBS AG	COP	3,250,000		1,775	5/3/13	USD	1,770		1,770		(5	)
			$	29,325				$	29,360	$	35

Futures Contracts:

The Portfolio had the following futures contracts open at March 28, 2013:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		175	$	38,579		Jun-13	$	(1	)
U.S. Treasury 5 yr. Note		279		34,611		Jun-13		28
U.S. Treasury 30 yr. Bond		18		2,601		Jun-13		20
U.S. Treasury Ultra Long Bond		2		315		Jun-13		(2	)
Short:
U.S. Treasury 10 yr. Note		128		(16,894	)	Jun-13		(84	)
							$	(39	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 28, 2013:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)			Value (000)		Credit Rating of Reference Obligation† (unaudited)
Barclays Bank Alcoa, Inc.	Buy	$	1,000		1.00	%	6/20/18	$	90	$	4		$	94	BBB-
Barclays Bank Devon Energy Corporation	Buy		1,000		1.00		6/20/18		16		(2	)		14	BBB+
Barclays Bank Transocean, Inc.	Buy		1,125		1.00		6/20/18		49		(1	)		48	BBB-
JPMorgan Chase CDX.NA.IG.20	Sell		4,000		1.00		6/20/18		22		(2	)		20	NR
JPMorgan Chase Kohl's Corporation	Buy		1,100		1.00		6/20/18		62		(2	)		60	BBB+
		$	8,225					$	239	$	(3	)	$	236

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 28, 2013:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Bank of America	3 Month LIBOR	Receive		2.10	%	2/5/23	$	2,990	$	(42	)
Barclays Bank	3 Month NZBBR	Pay		3.51		3/4/16	NZD	14,120		12
Barclays Bank	3 Month LIBOR	Receive		0.81		9/24/17	$	4,730		2
Credit Suisse	3 Month LIBOR	Receive		0.82		9/13/17		7,520		(2	)
Deutsche Bank	3 Month LIBOR	Receive		0.82		7/24/17		12,735		(33	)
Goldman Sachs	3 Month CDOR	Pay		1.75		8/1/16	CAD	25,600		83
Goldman Sachs	3 Month LIBOR	Receive		0.83		8/3/16	$	25,080		(49	)
Goldman Sachs	3 Month LIBOR	Receive		2.09		2/15/23		4,760		(55	)
Royal Bank of Canada	3 Month LIBOR	Receive		2.06		2/6/23		4,550		(43	)
									$	(127	)

CDOR  Canadian Dealer Offered Rate.

LIBOR  London Interbank Offered Rate.

NZBBR  New Zealand Bank Bill Rate.

NR    Not Rated.

AUD  —  Australian Dollar

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

COP  —  Colombian Peso

EUR  —  Euro

USD  —  United States Dollar

ZAR  —  South African Rand

†    Credit Rating as issued by Standard and Poor's.

Portfolio Composition*

Classification	Percentage of Total Investments
Agency Fixed Rate Mortgages		25.5	%
Industrials		18.6
Finance		14.7
Other**		13.1
U.S. Treasury Securities		8.1
Short-Term Investments		7.1
Mortgages — Other		7.0
Sovereign		5.9
Total Investments		100.0	%***

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 28, 2013.

**  Industries and/or investment types representing less than 5% of total investments.

***  Does not include open long/short futures contracts with an underlying face amount of approximately $93,000,000 and net unrealized depreciation of approximately $39,000. Also, does not include open foreign currency exchange contracts with net unrealized appreciation of approximately $35,000 and open swap agreements with net unrealized depreciation of approximately $130,000.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities	March 28, 2013 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $204,617)	$	212,827
Investment in Securities of Affiliated Issuers, at Value (Cost $21,883)		22,061
Total Investments in Securities, at Value (Cost $226,500)		234,888
Foreign Currency, at Value (Cost $59)		59
Cash		6
Interest Receivable		1,616
Receivable for Investments Sold		1,307
Receivable for Portfolio Shares Sold		559
Premium Paid on Open Swap Agreements		239
Unrealized Appreciation on Foreign Currency Exchange Contracts		177
Receivable for Variation Margin		175
Unrealized Appreciation on Swap Agreements		101
Receivable for Swap Agreement Termination		25
Receivable from Affiliates		22
Tax Reclaim Receivable		1
Other Assets		32
Total Assets		239,207
Liabilities:
Collateral on Securities Loaned, at Value		11,321
Payable for Investments Purchased		13,010
Unrealized Depreciation on Swap Agreements		231
Payable for Advisory Fees		191
Unrealized Depreciation on Foreign Currency Exchange Contracts		142
Payable for Portfolio Shares Redeemed		119
Payable for Trustees' Fees and Expenses		84
Payable for Sub Transfer Agency Fees		74
Payable for Premium Due to Broker for Swap Agreement		62
Payable for Professional Fees		40
Payable for Administration Fees		13
Payable for Custodian Fees		12
Payable for Transfer Agent Fees		10
Payable for Shareholder Services Fees — Class P		1
Payable for Shareholder Services Fees — Class H		—	@
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Other Liabilities		44
Total Liabilities		25,354
Net Assets	$	213,853
Net Assets Consist Of:
Paid-in-Capital	$	684,163
Undistributed Net Investment Income		3,363
Accumulated Net Realized Loss		(481,926	)
Unrealized Appreciation (Depreciation) on:
Investments		8,210
Investments in Affiliates		178
Foreign Currency Exchange Contracts		35
Foreign Currency Translations		(1	)
Futures Contracts		(39	)
Swap Agreements		(130	)
Net Assets	$	213,853

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 28, 2013 (000)
CLASS I:
Net Assets	$	210,183
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		20,317,608
Net Asset Value, Offering and Redemption Price Per Share	$	10.34
CLASS P:
Net Assets	$	3,539
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		341,527
Net Asset Value, Redemption Price Per Share	$	10.36
Maximum Sales Load§§		4.25	%
Maximum Sales Charge	$	0.46
Maximum Offering Price Per Share	$	10.82
CLASS H:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		986
Net Asset Value, Redemption Price Per Share	$	10.37
Maximum Sales Load§§		4.00	%
Maximum Sales Charge	$	0.43
Maximum Offering Price Per Share	$	10.80
CLASS L:
Net Assets	$	121
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		11,693
Net Asset Value, Offering and Redemption Price Per Share	$	10.35
(1) Including: Securities on Loan, at Value:	$	11,083

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

§§  Effective February 25, 2013, the Trustees approved the imposition of a maximum initial sales charge of 4.25% on purchases of Class P shares of the Portfolio and an increase in the maximum initial sales charge on purchases of Class H shares of the Portfolio from 3.50% to 4.00%.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Core Plus Fixed Income Portfolio

Statement of Operations	Six Months Ended March 28, 2013 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $—@ Foreign Taxes Withheld)	$	4,118
Interest from Securities of Affiliated Issuers		28
Income from Securities Loaned — Net		12
Dividends from Security of Affiliated Issuer		6
Total Investment Income		4,164
Expenses:
Advisory Fees (Note B)		412
Administration Fees (Note C)		88
Sub Transfer Agency Fees		83
Professional Fees		48
Custodian Fees (Note F)		33
Registration Fees		32
Pricing Fees		20
Transfer Agency Fees (Note E)		14
Shareholder Reporting Fees		13
Shareholder Services Fees — Class P (Note D)		5
Shareholder Services Fees — Class H (Note D)		—	@
Distribution and Shareholder Services Fees — Class L (Note D)		—	@
Trustees' Fees and Expenses		3
Other Expenses		6
Total Expenses		757
Rebate from Morgan Stanley Affiliate (Note G)		(6	)
Expense Offset (Note F)		(—	@)
Net Expenses		751
Net Investment Income		3,413
Realized Gain:
Investments Sold		2,214
Investments in Affiliates		26
Foreign Currency Exchange Contracts		14
Foreign Currency Transactions		1
Futures Contracts		146
Swap Agreements		15
Net Realized Gain		2,416
Change in Unrealized Appreciation (Depreciation):
Investments		(2,483	)
Investments in Affiliates		(8	)
Foreign Currency Exchange Contracts		28
Foreign Currency Translations		(1	)
Futures Contracts		(24	)
Swap Agreements		(31	)
Net Change in Unrealized Appreciation (Depreciation)		(2,519	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(103	)
Net Increase in Net Assets Resulting from Operations	$	3,310

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Core Plus Fixed Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 28, 2013R (unaudited) (000)			Year Ended September 30, 2012 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	3,413		$	10,420
Net Realized Gain		2,416			2,445
Net Change in Unrealized Appreciation (Depreciation)		(2,519	)		13,876
Net Increase in Net Assets Resulting from Operations		3,310			26,741
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(6,256	)		(12,432	)
Class P:
Net Investment Income		(99	)		(181	)
Class H:
Net Investment Income		(1	)		(—	@)*
Class L:
Net Investment Income		(3	)		(—	@)*
Total Distributions		(6,359	)		(12,613	)
Capital Share Transactions:(1)
Class I:
Subscribed		9,631			26,881
Distributions Reinvested		6,172			12,404
Redeemed		(29,952	)		(121,093	)
Class P:
Subscribed		468			1,208
Distributions Reinvested		99			181
Redeemed		(652	)		(2,580	)
Class H:
Subscribed		—			35	*
Distributions Reinvested		—	@		—	@*
Redeemed		(27	)		—
Class L:
Subscribed		—			135	*
Distributions Reinvested		3			—	@*
Redeemed		(10	)		(9	)*
Net Decrease in Net Assets Resulting from Capital Share Transactions		(14,268	)		(82,838	)
Total Decrease in Net Assets		(17,317	)		(68,710	)
Net Assets:
Beginning of Period		231,170			299,880
End of Period (Including Undistributed Net Investment Income of $3,363 and $6,309)	$	213,853		$	231,170
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		931			2,670
Shares Issued on Distributions Reinvested		598			1,248
Shares Redeemed		(2,898	)		(11,980	)
Net Decrease in Class I Shares Outstanding		(1,369	)		(8,062	)
Class P:
Shares Subscribed		45			118
Shares Issued on Distributions Reinvested		10			18
Shares Redeemed		(63	)		(255	)
Net Decrease in Class P Shares Outstanding		(8	)		(119	)
Class H:
Shares Subscribed		—			3	*
Shares Issued on Distributions Reinvested		—	@@		—	@@*
Shares Redeemed		(2	)		—
Net Increase (Decrease) in Class H Shares Outstanding		(2	)		3
Class L:
Shares Subscribed		—			13	*
Shares Issued on Distributions Reinvested		—	@@		—	@@*
Shares Redeemed		(—	@@)		(1	)*
Net Increase (Decrease) in Class L Shares Outstanding		(—	@@)		12

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

*  For the period April 27, 2012 through September 30, 2012.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Core Plus Fixed Income Portfolio

	Class I
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	10.48		$	9.92		$	9.96		$	9.41		$	9.41		$	11.40
Income (Loss) from Investment Operations:
Net Investment Income†		0.16			0.39			0.38			0.34			0.41			0.66
Net Realized and Unrealized Gain (Loss)		(0.01	)		0.63			(0.02	)		0.57			0.27			(2.10	)
Total from Investment Operations		0.15			1.02			0.36			0.91			0.68			(1.44	)
Distributions from and/or in Excess of:
Net Investment Income		(0.29	)		(0.46	)		(0.40	)		(0.36	)		(0.68	)		(0.55	)
Redemption Fees		—			—			—			—			0.00	‡		0.00	‡
Net Asset Value, End of Period	$	10.34		$	10.48		$	9.92		$	9.96		$	9.41		$	9.41
Total Return++		1.56	%#		10.62	%		3.74	%		10.02	%		7.56	%		(13.07	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	210,183		$	227,331		$	295,226		$	434,657		$	797,788		$	1,210,286
Ratio of Expenses to Average Net Assets (1)		0.68	%*+††		0.62	%+		0.66	%+††		0.51	%+††		0.49	%+		0.45	%+
Ratio of Net Investment Income to Average Net Assets (1)		3.11	%*+††		3.88	%+		3.88	%+††		3.53	%+††		4.56	%+		6.13	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.00	%§		0.01	%		0.00	%§		0.01	%
Portfolio Turnover Rate		100	%#		189	%		225	%		270	%		402	%		320	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		N/A			N/A			N/A			N/A			0.50	%+		0.45	%+
Net Investment Income to Average Net Assets		N/A			N/A			N/A			N/A			4.55	%+		6.13	%+

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Core Plus Fixed Income Portfolio

	Class P
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	10.50		$	9.94		$	9.97		$	9.40		$	9.40		$	11.38
Income (Loss) from Investment Operations:
Net Investment Income†		0.15			0.37			0.36			0.31			0.41			0.63
Net Realized and Unrealized Gain (Loss)		(0.01	)		0.62			(0.02	)		0.57			0.24			(2.09	)
Total from Investment Operations		0.14			0.99			0.34			0.88			0.65			(1.46	)
Distributions from and/or in Excess of:
Net Investment Income		(0.28	)		(0.43	)		(0.37	)		(0.31	)		(0.65	)		(0.52	)
Redemption Fees		—			—			—			—			0.00	‡		0.00	‡
Net Asset Value, End of Period	$	10.36		$	10.50		$	9.94		$	9.97		$	9.40		$	9.40
Total Return++		1.33	%#		10.31	%		3.57	%		9.73	%		7.26	%		(13.23	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,539		$	3,673		$	4,654		$	5,732		$	6,442		$	97,823
Ratio of Expenses to Average Net Assets (1)		0.93	%*+††		0.87	%+		0.91	%+††		0.76	%+††		0.73	%+		0.70	%+
Ratio of Net Investment Income to Average Net Assets (1)		2.86	%*+††		3.63	%+		3.63	%+††		3.28	%+††		4.56	%+		5.87	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.00	%§		0.01	%		0.00	%§		0.01	%
Portfolio Turnover Rate		100	%#		189	%		225	%		270	%		402	%		320	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		N/A			N/A			N/A			N/A			N/A			0.70	%+
Net Investment Income to Average Net Assets		N/A			N/A			N/A			N/A			N/A			5.87	%+

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Core Plus Fixed Income Portfolio

	Class H
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R (unaudited)			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.50		$	10.14
Income from Investment Operations:
Net Investment Income†		0.15			0.13
Net Realized and Unrealized Gain (Loss)		(0.00	)‡		0.35
Total from Investment Operations		0.15			0.48
Distributions from and/or in Excess of:
Net Investment Income		(0.28	)		(0.12	)
Net Asset Value, End of Period	$	10.37		$	10.50
Total Return++		1.43	%#		4.74	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	36
Ratio of Expenses to Average Net Assets		0.93	%*+††		0.90	%*+
Ratio of Net Investment Income to Average Net Assets		2.86	%*+††		3.02	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%*
Portfolio Turnover Rate		100	%#		189	%#

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

The accompanying notes are an integral part of the financial statements.
18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Core Plus Fixed Income Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R (unaudited)			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.49		$	10.14
Income from Investment Operations:
Net Investment Income†		0.13			0.11
Net Realized and Unrealized Gain (Loss)		(0.00	)‡		0.35
Total from Investment Operations		0.13			0.46
Distributions from and/or in Excess of:
Net Investment Income		(0.27	)		(0.11	)
Net Asset Value, End of Period	$	10.35		$	10.49
Total Return++		1.21	%#		4.59	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	121		$	130
Ratio of Expenses to Average Net Assets		1.18	%*+††		1.16	%*+
Ratio of Net Investment Income to Average Net Assets		2.61	%*+††		2.60	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%*
Portfolio Turnover Rate		100	%#		189	%#

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

The accompanying notes are an integral part of the financial statements.
19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("MSIFT" or the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Fund is comprised of seven separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Core Plus Fixed Income Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers four classes of shares — Class I, Class P, Class H and Class L.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Fund in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

1.  Security Valuation: (1) Bonds and other fixed income securities may be valued according to the broadest and most representative market. In addition, bonds and other fixed income securities may be valued on the basis of prices provided by a pricing service. The prices provided by a pricing service take into account broker-dealer market price quotations for institutional size trading in similar groups of securities, security quality, maturity, coupon and other security characteristics as well as any developments related to the specific securities; (2) futures are valued at the latest price published by the commodities exchange on which they trade; (3) swaps are marked-to-market daily based upon quotations from market makers; (4) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc., (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees (the "Trustees"). Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of

business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (6) short-term debt securities having a maturity date of more than sixty days at the time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost, which approximates fair value.

Under procedures approved by the Trustees, the Adviser has formed a Valuation Committee. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Trustees. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurements and Disclosures" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below.

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Portfolio's investments as of March 28, 2013.

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgages	$	—		$	1,697		$	—	$	1,697
Agency Fixed Rate Mortgages		—			57,145			—		57,145
Asset-Backed Securities		—			3,757			—		3,757
Collateralized Mortgage Obligations — Agency Collateral Series		—			10,869			—		10,869
Commercial Mortgage-Backed Securities		—			2,962			—		2,962
Corporate Bonds		—			77,530			—		77,530
Mortgages — Other		—			15,687			—		15,687
Municipal Bonds		—			3,337			—		3,337
Sovereign		—			13,131			—		13,131
U.S. Agency Securities		—			3,602			—		3,602
U.S. Treasury Securities		—			18,043			—		18,043
Total Fixed Income Securities		—			207,760			—		207,760
Short-Term Investments
Investment Company		20,951			—			—		20,951
Repurchase Agreement		—			1,180			—		1,180
U.S. Treasury Security		—			4,997			—		4,997
Total Short-Term Investments		20,951			6,177			—		27,128
Foreign Currency Exchange Contracts		—			177			—		177
Futures Contracts		48			—			—		48
Credit Default Swap Agreements		—			4			—		4
Interest Rate Swap Agreements		—			97			—		97
Total Assets		20,999			214,215			—		235,214
Liabilities:
Foreign Currency Exchange Contracts		—			(142	)		—		(142	)
Futures Contracts		(87	)		—			—		(87	)
Credit Default Swap Agreements		—			(7	)		—		(7	)
Interest Rate Swap Agreements		—			(224	)		—		(224	)
Total Liabilities		(87	)		(373	)		—		(460	)
Total	$	20,912		$	213,842		$	—	$	234,754

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of March 28, 2013, the Portfolio did not have any investments transfer between investment levels.

3.  Foreign Currency Translation and Foreign Investments: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the mean of the bid and ask prices of such currencies against U.S. dollars last quoted by a major bank as follows:

–  investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

–  investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities sold during the period. Accordingly, realized and unrealized foreign currency gains (losses) on investments in securities are included in the reported net realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S. Federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. Federal income tax purposes.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency exchange contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains

(losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) on the Statement of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations for the period is reflected in the Statement of Operations.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, fluctuations of exchange rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

The net assets of the Portfolio include foreign denominated securities and currency. Changes in currency exchange rates will affect the U.S. Dollar value of and investment income from such securities. Further, at times the Portfolio's investments are focused in a limited number of countries and regions. This focus may further increase the risk of the Portfolio.

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares. Such securities, if any, are identified as fair valued in the Portfolio of Investments.

4.  Derivatives: The Portfolio may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based on the value of an underlying asset, interest rate, index or financial instrument. A derivative instrument often has risks similar to its underlying asset and may have

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which they relate, and risks that the transactions may not be liquid. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Portfolio's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and risk for loss. Leverage associated with derivative transactions may cause the Portfolio to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission rules and regulations, or may cause the Portfolio to be more volatile than if the Portfolio had not been leveraged. Although the Adviser seeks to use derivatives to further the Portfolio's investment objectives, there is no assurance that the use of derivatives will achieve this result.

Following is a description of the derivative instruments and techniques that the Portfolio used during the period and their associated risks:

Futures: A futures contract is a standardized agreement between two parties to buy or sell a specific quantity of an underlying instrument at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures involves the exercise

of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures can be highly volatile, using futures can lower total return, and the potential loss from futures can exceed the Portfolio's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time.

Swaps: An over-the-counter ("OTC") swap agreement is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indexes, reference rates, currencies or other instruments. A small percentage of swap agreements are cleared through a central clearing house. Most swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Portfolio's obligations or rights under a swap agreement entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each counterparty. Most swap agreements are not entered into or traded on exchanges and there is no central clearing or guaranty function for swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Swaps could result in losses if interest rate or foreign currency exchange rates or credit quality changes are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments will require the clearing and exchange-trading of many OTC swap agreements. Mandatory exchange-trading and clearing will occur on a phased-in basis.

The Portfolio enters into credit default, interest rate and other forms of swap agreements to manage exposure to credit and interest rate risks.

The Portfolio's use of swaps during the period included those based on the credit of an underlying security and commonly referred to as credit default swaps. Where a Portfolio is the buyer of a credit default swap agreement,

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

it would be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the agreement only in the event of a default by a third party on the debt obligation. If no default occurs, a Portfolio would have paid to the counterparty a periodic stream of payments over the term of the agreement and received no benefit from the agreement. When a Portfolio is the seller of a credit default swap agreement, it receives the stream of payments but is obligated to pay an amount equal to the par (or other agreed upon) value of a referenced debt obligation upon default of the referenced debt obligation.

The current credit rating of each individual issuer is listed in the table following the Portfolio of Investments and serves as an indicator of the current status of the payment/performance risk of the credit derivative. Alternatively, for credit default swaps on an index of credits, the quoted market prices and current values serve as an indicator of the current status of the payment/performance risk of the credit derivative. Generally, lower credit ratings and increasing market values, in absolute terms, represent a deterioration of the credit and a greater likelihood of an adverse credit event of the issuer.

When the Portfolio has an unrealized loss on a swap agreement, the Portfolio has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. Cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities. Cash collateral has been offset against open swap agreements under the provisions of FASB ASC 210 "Balance Sheet" ("ASC 210"). Offsetting of Amounts Related to Certain Contracts, an interpretation of ASC 210-20, are included within "Unrealized Appreciation (Depreciation) on Swap Agreements" in the Statement of Assets and Liabilities. For cash collateral received, the Portfolio pays a monthly fee to the counterparty based on the effective rate for Federal Funds. This fee, when paid, is included within realized gain (loss) on swap agreements in the Statement of Operations.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability in the Statement of Assets and Liabilities.

Foreign Currency Exchange Contracts: In connection with its investments in foreign securities, the Portfolio also entered into contracts with banks, brokers or dealers to purchase or sell foreign currencies at a future date. A foreign currency exchange contract ("currency contracts") is a negotiated agreement between two parties to exchange specified amounts of two or more currencies at a specified future time at a specified rate. The rate specified by the currency contract can be higher or lower than the spot rate between the currencies that are the subject of the contract. Currency contracts may be used to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. Hedging the Portfolio's currency risks involves the risk of mismatching the Portfolio's objectives under a currency contract with the value of securities denominated in a particular currency. Furthermore, such transactions reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is an additional risk to the effect that currency contracts create exposure to currencies in which the Portfolio's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Portfolio than if it had not entered into such currency contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Portfolio as unrealized gain or (loss). The Portfolio records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

FASB ASC 815, "Derivatives and Hedging: Overall" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Portfolio uses derivative instruments, how these derivative instruments are accounted for and their effects on the Portfolio's financial position and results of operations.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

The following table sets forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 28, 2013.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Exchange Contracts	Unrealized Appreciation on Foreign Currency Exchange Contracts	Currency Risk	$	177
Futures Contracts	Variation Margin	Interest Rate Risk		48	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Credit Risk		4
Swap Agreements	Unrealized Appreciation on Swap Agreements	Interest Rate Risk		97
Total			$	326
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Exchange Contracts	Unrealized Depreciation on Foreign Currency Exchange Contracts	Currency Risk	$	(142	)
Futures Contracts	Variation Margin	Interest Rate Risk		(87	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(7	)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Interest Rate Risk		(224	)
Total			$	(460	)

(a) This amount represents the cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. The Statement of Assets and Liabilities only reflects the current day's net variation margin.

The following tables set forth by primary risk exposure the Portfolio's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 28, 2013 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Exchange Contracts	$	14
Interest Rate Risk	Futures Contracts		146
Credit Risk	Swap Agreements		43
Interest Rate Risk	Swap Agreements		(28	)
Total		$	175
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Exchange Contracts	$	28
Interest Rate Risk	Futures Contracts		(24	)
Credit Risk	Swap Agreements		(3	)
Interest Rate Risk	Swap Agreements		(28	)
Total		$	(27	)

For the six months ended March 28, 2013, the average monthly principal amount of foreign currency exchange contracts was approximately $12,177,000, the average monthly original value of futures contracts was approximately

$111,817,000 and the average monthly notional amount of swap agreements was approximately $113,072,000.

5.  Securities Lending: The Portfolio lends securities to qualified financial institutions, such as broker-dealers, to earn additional income. Any increase or decrease in the fair value of the securities loaned that might occur and any interest earned or dividends declared on those securities during the term of the loan would remain in the Portfolio. The Portfolio would receive cash or securities as collateral in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily, by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned-Net" in the Portfolio's Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

The value of loaned securities and related collateral outstanding at March 28, 2013 were approximately $11,083,000 and $11,321,000, respectively. The Portfolio received cash collateral of approximately $11,321,000, of which, approximately $11,320,000 was subsequently invested in Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. At March 28, 2013, there was uninvested cash collateral of approximately $1,000, which is not reflected in the Portfolio of Investments. The Portfolio has the right under the lending agreement to recover the securities from the borrower on demand.

6.  When-Issued/Delayed Delivery Securities: The Portfolio purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the Portfolio on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place up to 120 days after the date of the transaction. When the Portfolio enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral in an amount at least equal in value to the Portfolio's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower than the agreed upon purchase price, in which case there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Portfolio.

7.  Indemnifications: The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

8.  Dividends and Distributions to Shareholders: Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid quarterly. Net realized capital gains, if any, are distributed at least annually.

9.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based

upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Portfolio with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at the annual rate based on the average daily net assets as follows:

First $1 billion			Over $1 billion
	0.375	%		0.30	%

For the period ended March 28, 2013, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.369% of the Portfolio's daily net assets.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street, State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted Shareholder Services Plans with respect to Class P and Class H shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plans, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class P and Class H shares.

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.25% and a shareholder service fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class L shares.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class P, Class H and Class L shares.

E. Dividend Disbursing and Transfer Agent: The Fund's dividend disbursing and transfer agent is Morgan Stanley Services Company Inc. ("Morgan Stanley Services"). Pursuant to a Transfer Agency Agreement, the Fund pays Morgan Stanley Services a fee based on the number of classes, accounts and transactions relating to the Portfolios of the Fund.

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Fund in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Fund as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

The Fund has entered into an arrangement with its Custodian whereby credits realized on uninvested cash balances may be used to offset a portion of the Portfolio's expenses. If applicable, these custodian credits are shown as "Expense Offset" in the Statement of Operations.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 28, 2013, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $46,407,000 and $41,283,000, respectively. For the six months ended March 28, 2013, purchases and sales of long-term U.S. Government securities were approximately $173,479,000 and $195,825,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly, and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 28, 2013, advisory fees paid were reduced by approximately $6,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 28, 2013 is as follows:

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 28, 2013 (000)
$	20,433	$	81,635	$	81,117	$	6	$	20,951

For the six months ended March 28, 2013, the Portfolio had transactions with Citigroup, Inc., and its affiliated broker-dealers which may be deemed affiliates of the Adviser, Administrator and Distributor under Section 17 of the Act.

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Realized Gain (000)		Interest Income (000)		Value March 28, 2013 (000)
$	1,098	$	165	$	167	$	26	$	28	$	1,110

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

H. Federal Income Taxes: It is the Portfolio's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for Federal income taxes is required in the financial statements.

Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recognized on the accrual basis. Dividends from net investment income, if any, are declared and paid quarterly. Net realized capital gains, if any, are distributed at least annually.

The Portfolio may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10 "Income Taxes — Overall" sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended September 30, 2012, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal 2012 and 2011 was as follows:

2012 Distributions Paid From: Ordinary Income (000)		2011 Distributions Paid From: Ordinary Income (000)
$	12,613	$	16,358

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, basis adjustments for swap transactions and paydown adjustments, resulted in the following reclassifications among the components of net assets at September 30, 2012:

Accumulated Undistributed Net Investment Income (000)		Accumulated Net Realized Loss (000)			Paid-in Capital (000)
$	2,087	$	(2,087	)		—

At September 30, 2012, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	6,327		—

At March 28, 2013, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $11,579,000 and the aggregate gross unrealized depreciation is approximately $3,191,000 resulting in net unrealized appreciation of approximately $8,388,000.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Modernization Act") was signed into law. The Modernization Act modernizes several tax provisions related to Regulated Investment Companies ("RICs") and their shareholders. One key change made by the Modernization Act is that capital losses will generally retain their character as short-term or long-term and may be carried forward indefinitely to offset future gains. These losses are utilized before other capital loss carryforwards that expire. Generally, the Modernization Act is effective for taxable years beginning after December 22, 2010.

At September 30, 2012, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	6,102	September 30, 2014
	15,680	September 30, 2015
	5,336	September 30, 2016
	254,264	September 30, 2017
	201,462	September 30, 2018

To the extent that capital loss carryforwards are used to offset any future capital gains realized during the carryover period as provided by U.S. Federal income tax regulations, no capital gains tax liability will be incurred by the Portfolio for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders. During the year ended September 30, 2012, the Portfolio utilized capital loss carryforwards for U.S. Federal income tax purposes of approximately $1,032,000.

Capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year are deemed to arise on the first day of the Portfolio's next taxable

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

year. For the year ended September 30, 2012, the Portfolio deferred to October 1, 2012 for U.S. Federal income tax purposes the following losses:

Post-October Currency and Specified Ordinary Losses (000)		Post-October Capital Losses (000)
	—	$	820

I. Other: At March 28, 2013, the Portfolio had otherwise unaffiliated record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Portfolio. The aggregate percentage of such owners was 56.2% and 29.6%, for Class I and Class P shares, respectively.

J. Accounting Pronouncement: In January 2013, Accounting Standard Update 2013-01 ("ASU 2013-01"), "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," replaced Accounting Standards Update 2011-11 ("ASU 2011-11"), "Disclosures about Offsetting Assets and Liabilities." ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact, if any, on the Portfolio's financial statements.

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

We are required by federal law to provide you with notice of our U.S. privacy policy ("Policy"). This Policy applies to both our current and former clients unless we state otherwise and is intended for individual clients who purchase products or receive services from us for personal, family or household purposes. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders, nor is this Policy applicable to individuals who are either beneficiaries of a trust for which we serve as trustee or participants in an employee benefit plan administered or advised by us. This Policy is, however, applicable to individuals who select us to be a custodian of securities or assets in individual retirement accounts, 401(k) accounts, or accounts subject to the Uniform Gifts to Minors Act.

This notice sets out our business practices to protect your privacy; how we collect and share personal information about you; and how you can limit our sharing or certain uses by others of this information. We may amend this Policy at any time, and will inform you of any changes to our Policy as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information and understand your concerns about your information. We strive to safeguard the information our clients entrust to us. Protecting the confidentiality and security of client information is an important part of how we conduct our business.

This notice describes what personal information we collect about you, how we collect it, when we may share it with others, and how certain others may use it. It discusses the steps you may take to limit our sharing of certain information about you with our affiliated companies, including, but not limited to our affiliated banking businesses, brokerage firms and credit service affiliates. It also discloses how you may limit our affiliates' use of shared information for marketing purposes.

Throughout this Policy, we refer to the nonpublic information that personally identifies you as "personal information." We also use the term "affiliated company" in this notice. An affiliated company is a company in our family of companies and includes companies with the Morgan Stanley name. These affiliated companies are financial institutions such as broker-dealers, banks, investment advisers and credit card issuers. We refer to any company that is not an affiliated company as a nonaffiliated third party. For purposes of Section 5 of this notice, and your ability to limit certain uses of personal information by our affiliates, this notice applies to the use of personal information by our affiliated companies.

1.  WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

We may collect the following types of information about you: (i) information provided by you, including information from applications and other forms we receive from you, (ii) information about your transactions with us or our affiliates, (iii) information about your transactions with nonaffiliated third parties, (iv) information from consumer reporting agencies, (v) information obtained from our websites, and (vi) information obtained from other sources. For example:

•  We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

•  We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources.

•  We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

•  We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2.  WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

a. Information we disclose to affiliated companies.

We may disclose personal information that we collect about you to our affiliated companies to manage your account(s) effectively, to service and process your transactions, and to let you know about products and services offered by us and affiliated companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from affiliated companies are developed under conditions designed to safeguard your personal information.

b. Information we disclose to third parties.

We may disclose personal information that we collect about you to nonaffiliated third parties to provide marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. We may also disclose all of the information we collect to other nonaffiliated third parties for our everyday business purposes, such as to process transactions, maintain account(s), respond to court orders and legal investigations, report to credit bureaus, offer our own products and services, protect against fraud, for institutional risk control, to perform services on our behalf, and as otherwise required or permitted by law.

When we share personal information about you with a nonaffiliated third party, they are required to limit their use of personal information about you to the particular purpose for which it was shared and they are not allowed to share personal information about you with others except to fulfill that limited purpose or as may be permitted or required by law.

3.  HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We maintain physical, electronic and procedural security measures that comply with applicable law and regulations to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information by employees. Third parties that provide support or marketing services on our behalf may also receive personal information about you, and we require them to adhere to appropriate security standards with respect to such information.

4.  HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

By following the opt-out procedures in Section 6 below, you may limit the extent to which we share with our affiliated companies, personal information that was collected to determine your eligibility for products and services such as your credit reports and other information that you have provided to us or that we may obtain from third parties ("eligibility information"). Eligibility information does not include your identification information or personal information pertaining to our transactions or experiences with you. Please note that, even if you direct us not to share eligibility information with our affiliated companies, we may still share your personal information, including eligibility information, with our affiliated companies under circumstances that are permitted under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit our affiliated companies from marketing their products or services to you based on personal information we disclose to them. This information may include, for example, your income and account history with us. Please note that, even if you choose to limit our affiliated companies from using personal information about you that we may share with them for marketing their products and services to you, our affiliated companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the affiliated party has its own relationship with you.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

6.  HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

If you wish to limit our sharing of eligibility information about you with our affiliated companies, or our affiliated companies' use of personal information for marketing purposes, as described in this notice, you may do so by:

•  Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 5p.m. (EST)

•  Writing to us at the following address:

  Morgan Stanley Services Company Inc.
c/o Privacy Coordinator
201 Plaza Two, 3rd Floor
Jersey City, New Jersey 07311

If you choose to write to us, your request should include: your name, address, telephone number and account number(s) to which the opt-out applies and whether you are opting out with respect to sharing of eligibility information (Section 4 above), or information used for marketing (Section 5 above), or both. Written opt-out requests should not be sent with any other correspondence. In order to process your request, we require that the request be provided by you directly and not through a third party. Once you have informed us about your privacy preferences, your opt-out preference will remain in effect with respect to this Policy (as it may be amended) until you notify us otherwise. If you are a joint account owner, we will accept instructions from any one of you and apply those instructions to the entire account.

Please understand that if you limit our sharing or our affiliated companies' use of personal information, you and any joint account holder(s) may not receive information about our affiliated companies' products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

If you have more than one account or relationship with us, please specify the accounts to which you would like us to apply your privacy choices. If you have accounts or relationships with our affiliates, you may receive multiple privacy policies from them, and will need to separately notify those companies of your privacy choices for those accounts or relationships.

7.  WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

If, at any time in the future, an affiliated company becomes a nonaffiliated third party, further disclosures of personal information made to the former affiliated company will be limited to those described in Section 2(b) above relating to nonaffiliated third parties. If you elected under Section 6 to limit disclosures we make to affiliated companies, or use of personal information by affiliated companies, your election will not apply to use by any former affiliated company of your personal information in their possession once it becomes a nonaffiliated third party.

SPECIAL NOTICE TO RESIDENTS OF VERMONT

The following section supplements our Policy with respect to our individual clients who have a Vermont address and supersedes anything to the contrary in the above Policy with respect to those clients only.

The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with nonaffiliated third parties, or eligibility information with affiliated companies, other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or eligibility information with affiliated companies, unless you provide us with your written consent to share such information.

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

The following section supplements our Policy with respect to our individual clients who have a California address and supersedes anything to the contrary in the above Policy with respect to those clients only.

In response to a California law, if your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us.

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Trustee and Officer Information (unaudited)

Trustees

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

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

Morgan Stanley Services Company Inc.
P.O. Box 219804
Kansas City, Missouri 64121

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

Arthur Lev
President and Principal Executive Officer

Mary Ann Picciotto
Chief Compliance Officer

Stefanie V. Chang Yu
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its semi-annual and annual reports within 60 days of the end of the fund's second and fourth fiscal quarters by filing the schedule electronically with the Securities and Exchange Commission (SEC). The semi-annual reports are filed on Form N-CSRS and the annual reports are filed on Form N-CSR. Morgan Stanley also delivers the semi-annual and annual reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im. Each Morgan Stanley fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters on Form N-Q. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Morgan Stanley public website. You may, however, obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You may also review and copy them at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling the SEC toll free at 1 (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov) or by writing the Public Reference Room of the SEC, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Fund's Proxy Voting Policy and Procedures and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus of the Morgan Stanley Institutional Fund Trust which describes in detail each Investment Portfolio's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Portfolio, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

33

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2013 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTCPFISAN
654928 EXP [05/31/14]

INVESTMENT MANAGEMENT

Morgan Stanley
Institutional Fund Trust

Corporate Bond Portfolio

Semi-Annual
Report

March 28, 2013

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	11
Statement of Operations	13
Statements of Changes in Net Assets	14
Financial Highlights	15
Notes to Financial Statements	19
U.S. Privacy Policy	27
Trustee and Officer Information	33

This report is authorized for distribution only when preceded or accompanied by prospectuses of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or SAI, which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations, and describes in detail each of the Portfolio's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access portfolio information including performance, characteristics, and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im.

Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Portfolio in the future. There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that market values of securities owned by the Portfolio will decline and, therefore, the value of the Portfolio's shares may be less than what you paid for them. Accordingly, you can lose money investing in Portfolios. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Semi-Annual report, in which you will learn how your investment in Corporate Bond Portfolio performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

Arthur Lev
President and Principal Executive Officer

April 2013

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Expense Example (unaudited)

Corporate Bond Portfolio

As a shareholder of the Portfolio, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, including advisory fees, administration fees, distribution and shareholder services fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 28, 2013 and held for the entire six-month period.

Actual Expenses

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

Please note that "Actual Expenses Paid During Period" are grossed up to reflect Portfolio expenses prior to the effect of Expense Offset (See Note F in the Notes to Financial Statements). Therefore, the annualized net expense ratios may differ from the ratio of expenses to average net assets shown in the Financial Highlights.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/12		Actual Ending Account Value 3/28/13		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Corporate Bond Portfolio Class I	$	1,000.00	$	1,017.50	$	1,018.78	$	5.79	$	5.79		1.17	%
Corporate Bond Portfolio Class P		1,000.00		1,017.70		1,018.05		6.53		6.53		1.32
Corporate Bond Portfolio Class H		1,000.00		1,017.00		1,017.56		7.02		7.02		1.42
Corporate Bond Portfolio Class L		1,000.00		1,014.90		1,016.33		8.25		8.26		1.67

*  Expenses are calculated using each Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 179/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (97.6%)
Asset-Backed Securities (0.8%)
CVS Pass-Through Trust,
6.04%, 12/10/28	$	125	$	147
8.35%, 7/10/31 (a)		140		191
				338
Collateralized Mortgage Obligation — Agency Collateral Series (0.0%)
Federal Home Loan Mortgage Corporation, IO STRIPS
8.00%, 1/1/28		25		4
Corporate Bonds (96.8%)
Finance (39.9%)
ABB Treasury Center USA, Inc.
2.50%, 6/15/16 (a)(b)		195		204
Abbey National Treasury Services PLC,
MTN
3.88%, 11/10/14 (a)		146		151
ABN Amro Bank N.V.
4.25%, 2/2/17 (a)		210		229
Aetna, Inc.
2.75%, 11/15/22		200		196
Alexandria Real Estate Equities, Inc.
4.60%, 4/1/22		150		162
Ally Financial, Inc.
5.50%, 2/15/17		175		190
American Campus Communities Operating Partnership LP
3.75%, 4/15/23 (c)		100		101
American Express Co.
2.65%, 12/2/22		115		113
American Financial Group, Inc.
9.88%, 6/15/19		225		306
American International Group, Inc.
6.40%, 12/15/20		345		428
Bank of America Corp.,
5.63%, 7/1/20		665		777
5.70%, 1/24/22		125		147
Barclays Bank PLC
6.05%, 12/4/17 (a)		515		576
BBVA Bancomer SA
6.50%, 3/10/21 (a)(b)		150		171
Bear Stearns Cos. LLC (The)
5.55%, 1/22/17		200		228
Berkshire Hathaway, Inc.
3.75%, 8/15/21 (b)		265		288
BNP Paribas SA
5.00%, 1/15/21 (b)		170		192
Brookfield Asset Management, Inc.
5.80%, 4/25/17		70		79
Capital One Bank, USA NA
3.38%, 2/15/23		342		339

	Face Amount (000)		Value (000)
Cigna Corp.
5.38%, 2/15/42	$	120	$	136
Citigroup, Inc. (See Note G),
4.05%, 7/30/22		140		145
4.45%, 1/10/17		125		138
6.13%, 11/21/17		390		462
8.50%, 5/22/19		65		87
CNA Financial Corp.
5.75%, 8/15/21 (b)		250		296
Cooperatieve Centrale Raiffeisen- Boerenleenbank BA
3.95%, 11/9/22		260		262
Credit Agricole SA
3.00%, 10/1/17 (a)(b)		250		259
Credit Suisse,
5.40%, 1/14/20 (b)		170		191
6.00%, 2/15/18 (b)		61		71
Dexus Diversified Trust/Dexus Office Trust
5.60%, 3/15/21 (a)		225		252
Discover Bank
2.00%, 2/21/18		250		251
Farmers Exchange Capital
7.05%, 7/15/28 (a)		215		272
General Electric Capital Corp.,
3.15%, 9/7/22		300		299
5.30%, 2/11/21 (b)		120		138
Series G
3.10%, 1/9/23		115		114
6.00%, 8/7/19		666		810
Goldman Sachs Group, Inc. (The),
2.38%, 1/22/18		1,255		1,274
6.75%, 10/1/37		50		56
Goodman Funding Pty Ltd.
6.38%, 4/15/21 (a)		250		291
Hartford Financial Services Group, Inc.
5.50%, 3/30/20 (b)		275		321
HBOS PLC,
Series G
6.75%, 5/21/18 (a)		357		399
Healthcare Trust of America Holdings LP
3.70%, 4/15/23 (a)		100		100
HSBC Finance Corp.
6.68%, 1/15/21		135		160
HSBC Holdings PLC,
4.00%, 3/30/22 (b)		200		216
4.88%, 1/14/22 (b)		100		114
6.50%, 5/2/36		100		123
ING US, Inc.
5.50%, 7/15/22 (a)		150		166
Intesa Sanpaolo SpA
3.88%, 1/16/18		225		218

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
JPMorgan Chase & Co.,
3.20%, 1/25/23	$	150	$	150
4.50%, 1/24/22		305		335
4.63%, 5/10/21		210		235
Kilroy Realty LP
3.80%, 1/15/23		125		128
Lincoln National Corp.
7.00%, 6/15/40		75		99
Macquarie Group Ltd.
6.00%, 1/14/20 (a)(b)		215		236
Markel Corp.
3.63%, 3/30/23		150		151
Merrill Lynch & Co., Inc.,
MTN
6.88%, 4/25/18		217		262
MetLife, Inc.
7.72%, 2/15/19 (b)		70		91
Mizuho Corporate Bank Ltd.
1.85%, 3/21/18 (a)(b)		205		206
Nationwide Building Society
6.25%, 2/25/20 (a)		260		305
Nationwide Financial Services, Inc.
5.38%, 3/25/21 (a)		175		194
Nordea Bank AB
4.88%, 5/13/21 (a)		200		217
Pacific LifeCorp
6.00%, 2/10/20 (a)		150		173
Platinum Underwriters Finance, Inc.,
Series B
7.50%, 6/1/17		234		263
Post Apartment Homes LP
3.38%, 12/1/22		270		273
Principal Financial Group, Inc.
1.85%, 11/15/17		250		253
Protective Life Corp.
7.38%, 10/15/19		175		215
Prudential Financial, Inc.,
5.63%, 6/15/43 (d)		95		99
7.38%, 6/15/19		150		193
Realty Income Corp.
3.25%, 10/15/22		150		147
Santander Holdings USA, Inc.,
3.00%, 9/24/15		55		56
4.63%, 4/19/16 (b)		55		59
Santander US Debt SAU
3.72%, 1/20/15 (a)		200		202
SLM Corp.,
MTN
8.00%, 3/25/20 (b)		90		105
Societe Generale SA
5.20%, 4/15/21 (a)(b)		200		224

	Face Amount (000)		Value (000)
Standard Chartered PLC
3.95%, 1/11/23 (a)	$	200	$	200
Swedbank AB
2.13%, 9/29/17 (a)		200		203
UnitedHealth Group, Inc.,
1.40%, 10/15/17		85		86
2.75%, 2/15/23		55		54
Weingarten Realty Investors
3.38%, 10/15/22 (b)		150		149
Wells Fargo & Co.,
Series M
3.45%, 2/13/23		125		126
				18,187
Industrials (47.0%)
ABB Treasury Center USA, Inc.
4.00%, 6/15/21 (a)		50		55
AbbVie, Inc.
2.90%, 11/6/22 (a)		275		276
Actavis, Inc.
3.25%, 10/1/22 (b)		125		127
Agilent Technologies, Inc.
5.50%, 9/14/15		126		139
Altria Group, Inc.
2.85%, 8/9/22		115		113
American Airlines 2013-1 Class A Pass Through Trust
4.00%, 7/15/25 (a)		200		203
American Tower Corp.
3.50%, 1/31/23 (b)		150		149
Amgen, Inc.
3.88%, 11/15/21		430		470
Anixter, Inc.
5.63%, 5/1/19 (b)		135		144
ARAMARK Corp.
5.75%, 3/15/20 (a)		95		98
ArcelorMittal
10.35%, 6/1/19 (b)		134		169
AstraZeneca PLC
6.45%, 9/15/37		125		162
AT&T, Inc.,
5.55%, 8/15/41		175		194
6.30%, 1/15/38		275		331
Bemis Co., Inc.
4.50%, 10/15/21		230		250
Best Buy Co., Inc.
3.75%, 3/15/16 (b)		220		221
Boston Scientific Corp.
6.00%, 1/15/20 (b)		205		240
BP Capital Markets PLC
3.25%, 5/6/22		275		285

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
British Sky Broadcasting Group PLC
3.13%, 11/26/22 (a)(b)	$	150	$	150
Burlington Northern Santa Fe LLC,
3.05%, 3/15/22		150		154
5.65%, 5/1/17		130		153
Canadian Oil Sands Ltd.,
6.00%, 4/1/42 (a)		50		57
7.75%, 5/15/19 (a)(b)		100		126
Cardinal Health, Inc.
3.20%, 3/15/23		175		174
Caterpillar, Inc.
3.90%, 5/27/21 (b)		130		145
CC Holdings GS V LLC
3.85%, 4/15/23 (a)		100		101
CF Industries, Inc.
6.88%, 5/1/18		200		240
Cimarex Energy Co.
5.88%, 5/1/22 (b)		75		81
Comcast Corp.
6.40%, 5/15/38		100		126
ConAgra Foods, Inc.,
3.20%, 1/25/23 (b)		70		70
4.65%, 1/25/43		75		75
Continental Resources, Inc.
5.00%, 9/15/22		175		187
Daimler Finance North America LLC
8.50%, 1/18/31		161		250
Deere & Co.
3.90%, 6/9/42		60		60
Deutsche Telekom International Finance BV
8.75%, 6/15/30		100		142
DirecTV Holdings LLC/DirecTV Financing Co., Inc.
3.80%, 3/15/22 (b)		205		210
Discovery Communications LLC
3.25%, 4/1/23 (b)		75		76
Eaton Corp.
2.75%, 11/2/22 (a)		180		179
Eldorado Gold Corp.
6.13%, 12/15/20 (a)(b)		105		109
ESAL GmbH
6.25%, 2/5/23 (a)		200		202
Express Scripts Holding Co.
2.65%, 2/15/17		225		236
Fiserv, Inc.
3.13%, 6/15/16		190		200
FMC Technologies, Inc.
3.45%, 10/1/22		105		107
Ford Motor Co.
4.75%, 1/15/43		50		47
Ford Motor Credit Co., LLC,
4.21%, 4/15/16		200		213
5.88%, 8/2/21 (b)		200		229

	Face Amount (000)		Value (000)
Freeport-McMoRan Copper & Gold, Inc.,
2.38%, 3/15/18 (a)	$	105	$	106
3.88%, 3/15/23 (a)		100		100
Gap, Inc. (The)
5.95%, 4/12/21		185		212
Georgia-Pacific LLC,
5.40%, 11/1/20 (a)		95		113
8.88%, 5/15/31		75		112
GlaxoSmithKline Capital, Inc.,
2.80%, 3/18/23		185		187
4.20%, 3/18/43		25		25
Goldcorp, Inc.
3.70%, 3/15/23 (b)		225		226
Grupo Bimbo SAB de CV
4.88%, 6/30/20 (a)		225		255
Harley-Davidson Funding Corp.
6.80%, 6/15/18 (a)		245		301
HCA, Inc.
5.88%, 3/15/22		125		135
Heathrow Funding Ltd.
4.88%, 7/15/21 (a)(b)		190		212
Hess Corp.
6.00%, 1/15/40		50		56
Hewlett-Packard Co.,
2.60%, 9/15/17 (b)		80		81
4.65%, 12/9/21 (b)		110		114
Holcim US Finance Sarl & Cie SCS
6.00%, 12/30/19 (a)		182		213
Home Depot, Inc.
5.88%, 12/16/36		159		198
Host Hotels & Resorts LP,
Series D
3.75%, 10/15/23		75		75
Incitec Pivot Ltd.
4.00%, 12/7/15 (a)		160		168
Intel Corp.
2.70%, 12/15/22		200		199
International Business Machines Corp.
1.25%, 2/6/17		200		202
Kinross Gold Corp.
5.13%, 9/1/21 (b)		180		188
Koninklijke Philips Electronics N.V.
3.75%, 3/15/22 (b)		300		321
Kraft Foods Group, Inc.
6.88%, 1/26/39		125		165
Kroger Co. (The)
6.90%, 4/15/38		80		100
Life Technologies Corp.
6.00%, 3/1/20		150		169
Lubrizol Corp.
8.88%, 2/1/19		165		229
Macy's Retail Holdings, Inc.
3.88%, 1/15/22 (b)		25		26

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
MasTec, Inc.
4.88%, 3/15/23	$	140	$	139
MDC Partners, Inc.
6.75%, 4/1/20 (a)		100		102
MeadWestvaco Corp.
7.38%, 9/1/19		120		146
MetroPCS Wireless, Inc.
6.25%, 4/1/21 (a)(b)		140		143
Murphy Oil Corp.
3.70%, 12/1/22 (b)		135		131
NBC Universal Media LLC,
2.88%, 1/15/23		300		298
5.95%, 4/1/41		125		151
NetApp, Inc.
2.00%, 12/15/17		100		101
NewMarket Corp.
4.10%, 12/15/22 (a)(b)		125		127
News America, Inc.
6.15%, 2/15/41		50		60
Nexen, Inc.
6.40%, 5/15/37		100		130
Odebrecht Finance Ltd.
6.00%, 4/5/23 (a)		168		189
Omnicom Group, Inc.
3.63%, 5/1/22		170		174
Oracle Corp.
5.25%, 1/15/16		300		338
PepsiCo, Inc.
2.75%, 3/5/22 (b)		275		281
Petro-Canada
6.80%, 5/15/38		130		170
Philip Morris International, Inc.
4.50%, 3/20/42		150		155
Phillips 66
4.30%, 4/1/22		175		192
Pioneer Natural Resources Co.
3.95%, 7/15/22		175		183
Qtel International Finance Ltd.
3.25%, 2/21/23 (a)		225		221
QVC, Inc.
4.38%, 3/15/23 (a)		150		152
RR Donnelley & Sons Co.
7.88%, 3/15/21 (b)		120		126
Sanofi
4.00%, 3/29/21		150		167
Schneider Electric SA
2.95%, 9/27/22 (a)		225		228
Sinopec Group Overseas Development 2012 Ltd.
2.75%, 5/17/17 (a)(e)		200		209
SK Telecom Co., Ltd.
2.13%, 5/1/18 (a)		200		201

	Face Amount (000)		Value (000)
Sonoco Products Co.
5.75%, 11/1/40	$	150	$	172
Stryker Corp.
2.00%, 9/30/16		325		338
Syngenta Finance N.V.
4.38%, 3/28/42		75		78
Telecom Italia Capital SA
7.18%, 6/18/19		134		153
Telefonaktiebolaget LM Ericsson
4.13%, 5/15/22 (b)		100		104
Telefonica Europe BV
8.25%, 9/15/30 (b)		184		219
Tesoro Corp.
5.38%, 10/1/22		45		47
Teva Pharmaceutical Finance IV BV
3.65%, 11/10/21		250		267
Time Warner Cable, Inc.,
4.50%, 9/15/42 (b)		130		119
6.75%, 6/15/39		80		95
Time Warner, Inc.
7.70%, 5/1/32		291		398
Union Pacific Corp.
4.30%, 6/15/42		100		102
United Technologies Corp.
4.50%, 6/1/42		135		144
Valero Energy Corp.
6.13%, 2/1/20 (b)		150		183
Verisk Analytics, Inc.
5.80%, 5/1/21		185		214
Verizon Communications, Inc.,
3.85%, 11/1/42 (b)		190		165
6.35%, 4/1/19		125		154
VF Corp.
3.50%, 9/1/21		120		128
Volkswagen International Finance N.V.
2.38%, 3/22/17 (a)		160		166
Waste Management, Inc.
6.13%, 11/30/39		100		123
Weatherford International Ltd.
4.50%, 4/15/22 (b)		225		232
Wesfarmers Ltd.,
1.87%, 3/20/18 (a)		80		81
2.98%, 5/18/16 (a)		100		105
WMG Acquisition Corp.
6.00%, 1/15/21 (a)		125		132
Woolworths Ltd.
4.00%, 9/22/20 (a)		140		152
WPP Finance 2010
3.63%, 9/7/22		125		125
Wyndham Worldwide Corp.
4.25%, 3/1/22		255		268

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.
5.38%, 3/15/22 (b)	$	115	$	121
Yum! Brands, Inc.
6.88%, 11/15/37		89		117
				21,429
Utilities (9.9%)
Access Midstream Partners LP/ACMP Finance Corp.
4.88%, 5/15/23 (b)		45		45
Appalachian Power Co.
7.00%, 4/1/38		150		202
Boston Gas Co.
4.49%, 2/15/42 (a)(b)		125		131
CEZ AS
4.25%, 4/3/22 (a)		200		213
Consolidated Edison Co. of New York, Inc.
6.65%, 4/1/19		190		242
DCP Midstream Operating LP
3.88%, 3/15/23		150		151
Duke Energy Carolinas LLC
1.75%, 12/15/16 (b)		320		330
Enel Finance International N.V.
5.13%, 10/7/19 (a)(b)		200		213
Energy Transfer Partners LP
3.60%, 2/1/23		100		100
Enterprise Products Operating LLC,
5.25%, 1/31/20		25		29
Series N
6.50%, 1/31/19		279		347
Exelon Generation Co., LLC
6.25%, 10/1/39		145		169
Iberdrola Finance Ireland Ltd.
5.00%, 9/11/19 (a)		175		186
Kinder Morgan Energy Partners LP
5.95%, 2/15/18 (b)		300		358
Nevada Power Co.,
Series N
6.65%, 4/1/36		150		201
Plains All American Pipeline LP/PAA Finance Corp.
6.70%, 5/15/36		136		172
PPL WEM Holdings PLC
3.90%, 5/1/16 (a)		315		333
PSEG Power LLC
8.63%, 4/15/31		200		291
Sempra Energy
6.00%, 10/15/39 (b)		125		156
Spectra Energy Capital LLC
8.00%, 10/1/19		50		66
TransAlta Corp.
4.50%, 11/15/22		235		239

	Face Amount (000)		Value (000)
Virginia Electric and Power Co.
2.95%, 1/15/22	$	325	$	341
				4,515
				44,131
Total Fixed Income Securities (Cost $41,982)				44,473
	Shares
Short-Term Investments (22.1%)
Securities held as Collateral on Loaned Securities (20.2%)
Investment Company (18.1%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		8,251,620		8,252
	Face Amount (000)
Repurchase Agreement (2.1%)
Barclays Capital, Inc., (0.15%, dated 3/28/13, due 4/1/13; proceeds $960; fully collateralized by U.S. Government Obligations; U.S. Treasury Notes 0.38% — 0.50% due 2/15/16 — 7/31/17; valued at $980)	$	960		960
Total Securities held as Collateral on Loaned Securities (Cost $9,212)				9,212
	Shares
Investment Company (1.8%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $839)		839,344		839
	Face Amount (000)
U.S. Treasury Security (0.1%)
U.S. Treasury Bill
0.12%, 8/8/13 (f)(g) (Cost $60)	$	60		60
Total Short-Term Investments (Cost $10,111)				10,111
Total Investments (119.7%) (Cost $52,093) Including $9,016 of Securities Loaned (h)				54,584
Liabilities in Excess of Other Assets (-19.7%)				(8,983	)
Net Assets (100.0%)			$	45,601

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

(a)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(b)  All or a portion of this security was on loan at March 28, 2013.

(c)  When-issued security.

(d)  Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 28, 2013.

(e)  Security trades on the Hong Kong exchange.

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

(f)  Rate shown is the yield to maturity at March 28, 2013.

(g)  All or a portion of the security was pledged to cover margin requirements for futures contracts.

(h)  Securities are available for collateral in connection with purchase of when-issued securities, futures contracts and swap agreements.

IO  Interest Only.

MTN  Medium Term Note.

STRIPS  Separate Trading of Registered Interest and Principal of Securities.

Futures Contracts:

The Portfolio had the following futures contracts open at March 28, 2013:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		33	$	7,275		Jun-13	$	(—	@)
U.S. Treasury 5 yr. Note		41		5,086		Jun-13		4
U.S. Treasury Ultra Long Bond		21		3,309		Jun-13		(22	)
Short:
U.S. Treasury 10 yr. Note		69		(9,107	)	Jun-13		(49	)
U.S. Treasury 30 yr. Bond		5		(722	)	Jun-13		(4	)
							$	(71	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 28, 2013:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)			Value (000)		Credit Rating of Reference Obligation† (unaudited)
Barclays Bank PLC Alcoa Inc.	Buy	$	200		1.00	%	6/20/18	$	18	$	1		$	19	BBB-
Barclays Bank PLC Devon Energy Corporation	Buy		200		1.00		6/20/18		3		—	@		3	BBB+
Barclays Bank PLC Transocean Inc.	Buy		250		1.00		6/20/18		11		—	@		11	BBB-
JPMorgan Chase Bank CDX.NA.IG. 20	Sell		1,000		1.00		6/20/18		6		(1	)		5	NR
JPMorgan Chase Kohl's Corporate	Buy		250		1.00		6/20/18		14		(1	)		13	BBB+
		$	1,900					$	52	$	(1	)	$	51

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 28, 2013:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Barclays Capital	3 Month LIBOR	Receive		0.81	%	9/24/17	$	1,000	$	—	@
Credit Suisse	3 Month LIBOR	Receive		0.82		9/13/17		1,500		(—	@)
Deutsche Bank	3 Month LIBOR	Receive		0.82		7/24/17		2,532		(7	)
Goldman Sachs	3 Month LIBOR	Receive		2.42		3/22/22		642		(31	)
JPMorgan Chase	3 Month LIBOR	Receive		2.43		3/22/22		311		(16	)
JPMorgan Chase	3 Month LIBOR	Receive		2.09		2/15/23		1,270		(15	)
Royal Bank of Canada	3 Month LIBOR	Receive		2.06		2/6/23		510		(5	)
									$	(74	)

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

@  Value is less than $500.

LIBOR  London Interbank Offered Rate.

NR  Not Rated.

†  Credit Rating as issued by Standard and Poor's.

Portfolio Composition*

Classification	Percentage of Total Investments
Industrials		47.2	%
Finance		40.1
Utilities		9.9
Other**		2.8
Total Investments		100.0	%***

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 28, 2013.

**  Industries and/or investment types representing less than 5% of total investments.

***  Does not include open long/short futures contracts with an underlying face amount of approximately $25,499,000 and net unrealized depreciation of approximately $71,000. Does not include open swap agreements with net unrealized depreciation of approximately $75,000.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Corporate Bond Portfolio

Statement of Assets and Liabilities	March 28, 2013 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $42,265)	$	44,661
Investment in Securities of Affiliated Issuers, at Value (Cost $9,828)		9,923
Total Investments in Securities, at Value (Cost $52,093)		54,584
Cash		6
Interest Receivable		473
Receivable for Investments Sold		368
Premium Paid on Open Swap Agreements		52
Receivable from Affiliates		13
Receivable for Swap Agreement Termination		11
Receivable for Portfolio Shares Sold		3
Unrealized Appreciation on Swap Agreements		1
Tax Reclaim Receivable		1
Other Assets		5
Total Assets		55,517
Liabilities:
Collateral on Securities Loaned, at Value		9,213
Payable for Investments Purchased		419
Unrealized Depreciation on Swap Agreements		76
Payable for Advisory Fees		41
Payable for Portfolio Shares Redeemed		40
Payable for Professional Fees		34
Payable for Sub Transfer Agency Fees		22
Payable for Trustees' Fees and Expenses		14
Payable for Premium Due to Broker for Swap Agreement		14
Payable for Variation Margin		6
Payable for Transfer Agent Fees		5
Payable for Custodian Fees		4
Payable for Administration Fees		3
Payable for Shareholder Services Fees — Class P		—	@
Payable for Shareholder Services Fees — Class H		—	@
Payable for Distribution and Shareholder Services Fees — Class L		1
Other Liabilities		24
Total Liabilities		9,916
Net Assets	$	45,601
Net Assets Consist of:
Paid-in-Capital	$	101,204
Undistributed Net Investment Income		514
Accumulated Net Realized Loss		(58,462	)
Unrealized Appreciation (Depreciation) on:
Investments		2,396
Investments in Affiliates		95
Futures Contracts		(71	)
Swap Agreements		(75	)
Net Assets	$	45,601

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Corporate Bond Portfolio

Statement of Assets and Liabilities (cont'd)	March 28, 2013 (000)
CLASS I:
Net Assets	$	41,361
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		3,773,749
Net Asset Value, Offering and Redemption Price Per Share	$	10.96
CLASS P:
Net Assets	$	1,243
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		113,400
Net Asset Value, Redemption Price Per Share	$	10.96
Maximum Sales Load§§		4.25	%
Maximum Sales Charge	$	0.49
Maximum Offering Price Per Share	$	11.45
CLASS H:
Net Assets	$	98
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		8,969
Net Asset Value, Redemption Price Per Share	$	10.96
Maximum Sales Load§§		4.00	%
Maximum Sales Charge	$	0.46
Maximum Offering Price Per Share	$	11.42
CLASS L:
Net Assets	$	2,899
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		264,624
Net Asset Value, Offering and Redemption Price Per Share	$	10.95
(1) Including: Securities on Loan, at Value:	$	9,016

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

§§  Effective February 25, 2013, the Trustees approved the imposition of a maximum initial sales charge of 4.25% on purchases of Class P shares of the Portfolio and an increase in the maximum initial sales charge on purchases of Class H shares of the Portfolio from 3.50% to 4.00%

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Corporate Bond Portfolio

Statement of Operations	Six Months Ended March 28, 2013 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $—@ Foreign Taxes Withheld)	$	899
Interest from Securities of Affiliated Issuers		20
Income from Securities Loaned — Net		9
Dividends from Security of Affiliated Issuer		1
Total Investment Income		929
Expenses:
Advisory Fees (Note B)		86
Professional Fees		57
Registration Fees		26
Sub Transfer Agency Fees		24
Administration Fees (Note C)		18
Shareholder Reporting Fees		17
Pricing Fees		15
Custodian Fees (Note F)		12
Shareholder Services Fees — Class P (Note D)		2
Shareholder Services Fees — Class H (Note D)		—	@
Distribution and Shareholder Services Fees — Class L (Note D)		8
Transfer Agency Fees (Note E)		8
Trustees' Fees and Expenses		2
Other Expenses		4
Total Expenses		279
Waiver of Shareholder Servicing Fees — Class P (Note D)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Expense Offset (Note F)		(—	@)
Net Expenses		277
Net Investment Income		652
Realized Gain (Loss):
Investments Sold		905
Investments in Affiliates		22
Futures Contracts		(83	)
Swap Agreements		(10	)
Net Realized Gain		834
Change in Unrealized Appreciation (Depreciation):
Investments		(638	)
Investments in Affiliates		(9	)
Futures Contracts		(28	)
Swap Agreements		15
Net Change in Unrealized Appreciation (Depreciation)		(660	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		174
Net Increase in Net Assets Resulting from Operations	$	826

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Corporate Bond Portfolio

Statements of Changes in Net Assets	Six Months Ended March 28, 2013R (unaudited) (000)			Year Ended September 30, 2012 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	652		$	1,913
Net Realized Gain		834			3,497
Net Change in Unrealized Appreciation (Depreciation)		(660	)		348
Net Increase in Net Assets Resulting from Operations		826			5,758
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(637	)		(2,199	)
Class P:
Net Investment Income		(15	)		(23	)
Class H:
Net Investment Income		(2	)		(9	)
Class L:
Net Investment Income		(37	)		(137	)
Total Distributions		(691	)		(2,368	)
Capital Share Transactions:(1)
Class I:
Subscribed		563			1,425
Distributions Reinvested		636			2,197
Redeemed		(4,738	)		(24,373	)
Class P:
Subscribed		797			809
Distributions Reinvested		15			23
Redeemed		(534	)		(325	)
Class H:
Distributions Reinvested		1			5
Redeemed		(81	)		(308	)
Class L:
Subscribed		56			58
Distributions Reinvested		37			137
Redeemed		(353	)		(1,342	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(3,601	)		(21,694	)
Total Decrease in Net Assets		(3,466	)		(18,304	)
Net Assets:
Beginning of Period		49,067			67,371
End of Period (Including Undistributed Net Investment Income of $514 and $553)	$	45,601		$	49,067
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		52			137
Shares Issued on Distributions Reinvested		59			213
Shares Redeemed		(434	)		(2,328	)
Net Decrease in Class I Shares Outstanding		(323	)		(1,978	)
Class P:
Shares Subscribed		73			77
Shares Issued on Distributions Reinvested		1			2
Shares Redeemed		(49	)		(31	)
Net Increase in Class P Shares Outstanding		25			48
Class H:
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(7	)		(30	)
Net Decrease in Class H Shares Outstanding		(7	)		(30	)
Class L:
Shares Subscribed		5			5
Shares Issued on Distributions Reinvested		4			13
Shares Redeemed		(33	)		(127	)
Net Decrease in Class L Shares Outstanding		(24	)		(109	)

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@@  Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Corporate Bond Portfolio

	Class I
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	10.93		$	10.27		$	10.17		$	9.75		$	9.61		$	11.15
Income (Loss) from Investment Operations:
Net Investment Income†		0.15			0.36			0.33			0.33			0.31			0.55
Net Realized and Unrealized Gain (Loss)		0.04			0.73			0.07			0.49			0.38			(1.57	)
Total from Investment Operations		0.19			1.09			0.40			0.82			0.69			(1.02	)
Distributions from and/or in Excess of:
Net Investment Income		(0.16	)		(0.43	)		(0.30	)		(0.40	)		(0.55	)		(0.52	)
Redemption Fees		—			—			—			—			0.00	‡		0.00	‡
Net Asset Value, End of Period	$	10.96		$	10.93		$	10.27		$	10.17		$	9.75		$	9.61
Total Return++		1.75	%#		10.94	%		4.05	%		8.65	%		7.46	%		(9.37	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	41,361		$	44,779		$	62,410		$	79,337		$	140,890		$	316,894
Ratio of Expenses to Average Net Assets		1.17	%*+††		1.00	%+††		0.80	%+††		0.76	%+††		0.56	%+		0.52	%+
Ratio of Net Investment Income to Average Net Assets		2.86	%*+††		3.41	%+††		3.27	%+††		3.36	%+††		3.30	%+		5.18	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%§		0.00	%§		0.00	%§		0.01	%		0.01	%
Portfolio Turnover Rate		34	%#		129	%		224	%		277	%		545	%		325	%

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Corporate Bond Portfolio

	Class P
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	10.92		$	10.27		$	10.16		$	9.74		$	9.60		$	11.14
Income (Loss) from Investment Operations:
Net Investment Income†		0.15			0.34			0.31			0.31			0.30			0.53
Net Realized and Unrealized Gain (Loss)		0.04			0.73			0.08			0.49			0.38			(1.57	)
Total from Investment Operations		0.19			1.07			0.39			0.80			0.68			(1.04	)
Distributions from and/or in Excess of:
Net Investment Income		(0.15	)		(0.42	)		(0.28	)		(0.38	)		(0.54	)		(0.50	)
Redemption Fees		—			—			—			—			0.00	‡		0.00	‡
Net Asset Value, End of Period	$	10.96		$	10.92		$	10.27		$	10.16		$	9.74		$	9.60
Total Return++		1.77	%#		10.69	%		3.99	%		8.50	%		7.44	%		(9.60	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,243		$	961		$	408		$	590		$	611		$	842
Ratio of Expenses to Average Net Assets(1)		1.32	%*+††		1.15	%+††		0.95	%+††		0.91	%+††		0.69	%+		0.67	%+
Ratio of Net Investment Income to Average Net Assets(1)		2.71	%*+††		3.26	%+††		3.12	%+††		3.21	%+††		3.19	%+		5.01	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%§		0.00	%§		0.00	%§		0.01	%		0.01	%
Portfolio Turnover Rate		34	%#		129	%		224	%		277	%		545	%		325	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.42	%*††		1.25	%††		1.05	%††		1.01	%+††		0.79	%+		0.77	%+
Net Investment Income to Average Net Assets		2.61	%*††		3.16	%††		3.02	%††		3.11	%+††		3.09	%+		4.91	%+

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Corporate Bond Portfolio

	Class H
	Six Months Ended March 28, 2013R			Year Ended September 30,												Period from January 2, 2008^ to
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			September 30, 2008
Net Asset Value, Beginning of Period	$	10.92		$	10.27		$	10.16		$	9.74		$	9.53		$	11.15
Income (Loss) from Investment Operations:
Net Investment Income†		0.14			0.33			0.31			0.31			0.28			0.21
Net Realized and Unrealized Gain (Loss)		0.04			0.72			0.07			0.48			0.39			(1.68	)
Total from Investment Operations		0.18			1.05			0.38			0.79			0.67			(1.47	)
Distributions from and/or in Excess of:
Net Investment Income		(0.14	)		(0.40	)		(0.27	)		(0.37	)		(0.46	)		(0.15	)
Redemption Fees		—			—			—			—			0.00	‡		—
Net Asset Value, End of Period	$	10.96		$	10.92		$	10.27		$	10.16		$	9.74		$	9.53
Total Return++		1.70	%#		10.55	%		3.89	%		8.39	%		7.21	%		(13.21	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	98		$	178		$	473		$	170		$	162		$	85
Ratio of Expenses to Average Net Assets		1.42	%*+††		1.25	%+††		1.05	%+††		1.01	%+††		0.81	%+		2.98	%*+
Ratio of Net Investment Income to Average Net Assets		2.61	%*+††		3.16	%+††		3.02	%+††		3.11	%+††		2.94	%+		2.71	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%§		0.00	%§		0.00	%§		0.01	%		0.01	%*
Portfolio Turnover Rate		34	%#		129	%		224	%		277	%		545	%		325	%#

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Corporate Bond Portfolio

	Class L
	Six Months Ended March 28, 2013R			Year Ended September 30,												Period from June 16, 2008^ to
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			September 30, 2008
Net Asset Value, Beginning of Period	$	10.92		$	10.26		$	10.15		$	9.74		$	9.63		$	10.12
Income (Loss) from Investment Operations:
Net Investment Income†		0.13			0.30			0.28			0.28			0.24			0.12
Net Realized and Unrealized Gain (Loss)		0.03			0.74			0.08			0.48			0.41			(0.60	)
Total from Investment Operations		0.16			1.04			0.36			0.76			0.65			(0.48	)
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.38	)		(0.25	)		(0.35	)		(0.54	)		(0.01	)
Redemption Fees		—			—			—			—			0.00	‡		—
Net Asset Value, End of Period	$	10.95		$	10.92		$	10.26		$	10.15		$	9.74		$	9.63
Total Return++		1.49	%#		10.38	%		3.51	%		8.15	%		7.08	%		(4.73	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,899		$	3,149		$	4,080		$	5,508		$	5,159		$	58
Ratio of Expenses to Average Net Assets		1.67	%*+††		1.50	%+††		1.30	%+††		1.26	%+††		1.06	%+		1.15	%*+
Ratio of Net Investment Income to Average Net Assets		2.36	%*+††		2.91	%+††		2.77	%+††		2.86	%+††		2.58	%+		4.34	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%§		0.00	%§		0.00	%§		0.01	%		0.01	%*
Portfolio Turnover Rate		34	%#		129	%		224	%		277	%		545	%		325	%#

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust (''MSIFT'' or the ''Fund'') is registered under the Investment Company Act of 1940, as amended (the ''Act''), as an open-end management investment company. The Fund is comprised of seven separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Corporate Bond Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers four classes of shares — Class I, Class P, Class H and Class L.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Fund in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

1.  Security Valuation: (1) Bonds and other fixed income securities may be valued according to the broadest and most representative market. In addition, bonds and other fixed income securities may be valued on the basis of prices provided by a pricing service. The prices provided by a pricing service take into account broker-dealer market price quotations for institutional size trading in similar groups of securities, security quality, maturity, coupon and other security characteristics as well as any developments related to the specific securities; (2) futures are valued at the latest price published by the commodities exchange on which they trade; (3) swaps are marked-to-market daily based upon quotations from market makers; (4) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc., (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees (the "Trustees"). Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If

developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (6) short-term debt securities having a maturity date of more than sixty days at the time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost, which approximates fair value.

Under procedures approved by the Trustees, the Adviser has formed a Valuation Committee. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Trustees. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurements and Disclosures" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below.

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Portfolio's investments as of March 28, 2013.

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Asset-Backed Securities	$	—		$	338		$	—	$	338
Collateralized Mortgage Obligations — Agency Collateral Series		—			4			—		4
Corporate Bonds		—			44,131			—		44,131
Total Fixed Income Securities		—			44,473			—		44,473
Short-Term Investments
Investment Company		9,091			—			—		9,091
Repurchase Agreement		—			960			—		960
U.S. Treasury Security		—			60			—		60
Total Short-Term Investments		9,091			1,020			—		10,111
Futures Contracts		4			—			—		4
Credit Default Swap Agreements		—			1			—		1
Total Assets		9,095			45,494			—		54,589
Liabilities:
Futures Contracts		(75	)		—			—		(75	)
Credit Default Swap Agreements		—			(2	)		—		(2	)
Interest Rate Swap Agreements		—			(74	)		—		(74	)
Total Liabilities		(75	)		(76	)		—		(151	)
Total	$	9,020		$	45,418		$	—	$	54,438

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of March 28, 2013, the Portfolio did not have any investments transfer between investment levels.

3.  Derivatives: The Portfolio may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based on the value of an underlying asset, interest rate, index or financial instrument. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which they relate, and risks that the transactions may not be liquid. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Portfolio's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and risk for loss. Leverage associated with derivative transactions may cause the Portfolio to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission rules and regulations, or may cause the Portfolio to be more volatile than if the Portfolio had not been leveraged. Although the Adviser seeks to use derivatives to further the Portfolio's investment objectives, there is no assurance that the use of derivatives will achieve this result.

Following is a description of the derivative instruments and techniques that the Portfolio used during the period and their associated risks:

Futures: A futures contract is a standardized agreement between two parties to buy or sell a specific quantity of an underlying instrument at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to

whether, when and how to use futures involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures can be highly volatile, using futures can lower total return, and the potential loss from futures can exceed the Portfolio's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time.

Swaps: An over-the-counter ("OTC") swap agreement is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indexes, reference rates, currencies or other instruments. A small percentage of swap agreements are cleared through a central clearing house. Most swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Portfolio's obligations or rights under a swap agreement entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each counterparty. In a zero coupon interest rate swap, payment only occurs at maturity, at which time one counterparty pays the total compounded fixed rate over the life of the swap and the other pays the total compounded floating rate that would have been earned had a series of floating rate investments been rolled over through the life of the swap. Most swap agreements are not entered into or traded on exchanges and there is no central clearing or guaranty function for swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Swaps could result in losses if interest rate or foreign currency exchange rates or credit quality changes are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments will require the clearing and exchange-trading of many OTC swap agreements. Mandatory exchange-trading and clearing will occur on a phased-in basis.

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

The Portfolio enters into credit default, interest rate and other forms of swap agreements to manage exposure to credit and interest rate risks.

The Portfolio's use of swaps during the period included those based on the credit of an underlying security and commonly referred to as credit default swaps. Where a Portfolio is the buyer of a credit default swap agreement, it would be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the agreement only in the event of a default by a third party on the debt obligation. If no default occurs, a Portfolio would have paid to the counterparty a periodic stream of payments over the term of the agreement and received no benefit from the agreement. When a Portfolio is the seller of a credit default swap agreement, it receives the stream of payments but is obligated to pay an amount equal to the par (or other agreed upon) value of a referenced debt obligation upon default of the referenced debt obligation.

The current credit rating of each individual issuer is listed in the table following the Portfolio of Investments and serves as an indicator of the current status of the payment/performance risk of the credit derivative. Alternatively, for credit default swaps on an index of credits, the quoted market prices and current values serve as an indicator of the current status of the the payment/performance risk of the credit derivative. Generally, lower credit ratings and increasing market values, in absolute terms, represent a deterioration of the credit and a greater likelihood of an adverse credit event of the issuer.

When the Portfolio has an unrealized loss on a swap agreement, the Portfolio has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. Cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities. Cash collateral has been offset against open swap agreements under the provisions of FASB ASC 210 "Balance Sheet" ("ASC 210"). Offsetting of Amounts Related to Certain Contracts, an interpretation of ASC 210-20, are included within "Unrealized Appreciation (Depreciation) on Swap Agreements" in the Statement of Assets and Liabilities. For cash collateral received, the Portfolio pays a monthly fee

to the counterparty based on the effective rate for Federal Funds. This fee, when paid, is included within realized gain (loss) on swap agreements in the Statement of Operations.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability in the Statement of Assets and Liabilities.

FASB ASC 815, "Derivatives and Hedging: Overall" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Portfolio uses derivative instruments, how these derivative instruments are accounted for and their effects on the Portfolio's financial position and results of operations.

The following table sets forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 28, 2013.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk	$	4	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Credit Risk		1
		Total	$	5
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk	$	(75	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(2	)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Interest Rate Risk		(74	)
		Total	$	(151	)

(a) This amount represents the cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. The Statement of Assets and Liabilities only reflects the current day's net variation margin.

The following tables set forth by primary risk exposure the Portfolio's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 28, 2013 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(83	)
Credit Risk	Swap Agreements		12
Interest Rate Risk	Swap Agreements		(22	)
	Total	$	(93	)

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(28	)
Credit Risk	Swap Agreements		(1	)
Interest Rate Risk	Swap Agreements		16
	Total	$	(13	)

For the six months ended March 28, 2013, the average monthly original value of futures contracts was approximately $30,327,000 and the average monthly notional amount of swap agreements was approximately $9,986,000.

4.  Securities Lending: The Portfolio lends securities to qualified financial institutions, such as broker-dealers, to earn additional income. Any increase or decrease in the fair value of the securities loaned that might occur and any interest earned or dividends declared on those securities during the term of the loan would remain in the Portfolio. The Portfolio would receive cash or securities as collateral in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily, by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Portfolio's Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

The value of loaned securities and related collateral outstanding at March 28, 2013 were approximately $9,016,000 and $9,213,000, respectively. The Portfolio received cash collateral of approximately $9,213,000, of which, approximately $9,212,000 was subsequently invested in Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. At March 28, 2013, there was uninvested cash collateral of approximately $1,000, which is

not reflected in the Portfolio of Investments. The Portfolio has the right under the lending agreement to recover the securities from the borrower on demand.

5.  When-Issued/Delayed Delivery Securities: The Portfolio purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the Portfolio on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place up to 120 days after the date of the transaction. When the Portfolio enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral in an amount at least equal in value to the Portfolio's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower than the agreed upon purchase price, in which case there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Portfolio.

6.  Indemnifications: The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

7.  Dividends and Distributions to Shareholders: Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid quarterly. Net realized capital gains, if any, are distributed at least annually.

8.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Portfolio with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.375% of the average daily net assets of the Portfolio. For the period ended March 28, 2013, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.372% of the Portfolio's daily net assets.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street, State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted Shareholder Services Plans with respect to Class P and Class H shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plans, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class P and Class H shares. The Distributor has agreed to waive 0.10% of the 0.25% shareholder services fee it is entitled to receive from Class P shares' average daily net assets for the Portfolio. For the six months ended March 28, 2013, the Portfolio waived approximately $1,000.

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services

Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.25% and a shareholder service fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class L shares.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class P, Class H and Class L shares.

E. Dividend Disbursing and Transfer Agent: The Fund's dividend disbursing and transfer agent is Morgan Stanley Services Company Inc. ("Morgan Stanley Services"). Pursuant to a Transfer Agency Agreement, the Fund pays Morgan Stanley Services a fee based on the number of classes, accounts and transactions relating to the Portfolios of the Fund.

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Fund in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Fund as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

The Fund has entered into an arrangement with its Custodian whereby credits realized on uninvested cash balances may be used to offset a portion of the Portfolio's expenses. If applicable, these custodian credits are shown as "Expense Offset" in the Statement of Operations.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 28, 2013, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $15,731,000 and $17,907,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 28, 2013.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly, and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

Liquidity Funds. For the six months ended March 28, 2013, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 28, 2013 is as follows:

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 28, 2013 (000)
$	7,949	$	17,452	$	16,310	$	1	$	9,091

For the six months ended March 28, 2013, the Portfolio had transactions with Citigroup, Inc., and its affiliated broker-dealers which may be deemed affiliates of the Adviser, Administrator and Distributor under Section 17 of the Act.

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Realized Gain (000)		Interest Income (000)		Value March 28, 2013 (000)
$	880	$	140	$	199	$	22	$	20	$	832

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

H. Federal Income Taxes: It is the Portfolio's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for Federal income taxes is required in the financial statements.

Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recognized on the accrual basis. Dividends from net investment income, if any, are declared and paid quarterly. Net realized capital gains, if any, are distributed at least annually.

The Portfolio may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued

based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10 "Income Taxes — Overall" sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in ''Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended September 30, 2012, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal 2012 and 2011 was as follows:

2012 Distributions Paid From: Ordinary Income (000)		2011 Distributions Paid From: Ordinary Income (000)
$	2,368	$	2,333

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, primarily due to basis adjustments for swap transactions and paydown adjustments, resulted in the following reclassifications among the components of net assets at September 30, 2012:

Accumulated Undistributed Net Investment Income (000)		Accumulated Net Realized Loss (000)			Paid-in Capital (000)
$	92	$	(92	)		—

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

At September 30, 2012, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	557		—

At March 28, 2013, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $2,637,000 and the aggregate gross unrealized depreciation is approximately $146,000 resulting in net unrealized appreciation of approximately $2,491,000.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Modernization Act") was signed into law. The Modernization Act modernizes several tax provisions related to Regulated Investment Companies ("RICs") and their shareholders. One key change made by the Modernization Act is that capital losses will generally retain their character as short-term or long-term and may be carried forward indefinitely to offset future gains. These losses are utilized before other capital loss carryforwards that expire. Generally, the Modernization Act is effective for taxable years beginning after December 22, 2010.

At September 30, 2012, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	51,214	September 30, 2017
	8,130	September 30, 2018

To the extent that capital loss carryforwards are used to offset any future capital gains realized during the carryover period as provided by U.S. Federal income tax regulations, no capital gains tax liability will be incurred by the Portfolio for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders. During the year ended September 30, 2012, the Portfolio utilized capital loss carryforwards for U.S. Federal income tax purposes of approximately $3,205,000.

I. Accounting Pronouncement: In January 2013, Accounting Standard Update 2013-01 ("ASU 2013-01"), "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," replaced Accounting Standards Update 2011-11 ("ASU 2011-11"), "Disclosures about Offsetting Assets and Liabilities." ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact, if any, on the Portfolio's financial statements.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

We are required by federal law to provide you with notice of our U.S. privacy policy ("Policy"). This Policy applies to both our current and former clients unless we state otherwise and is intended for individual clients who purchase products or receive services from us for personal, family or household purposes. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders, nor is this Policy applicable to individuals who are either beneficiaries of a trust for which we serve as trustee or participants in an employee benefit plan administered or advised by us. This Policy is, however, applicable to individuals who select us to be a custodian of securities or assets in individual retirement accounts, 401(k) accounts, or accounts subject to the Uniform Gifts to Minors Act.

This notice sets out our business practices to protect your privacy; how we collect and share personal information about you; and how you can limit our sharing or certain uses by others of this information. We may amend this Policy at any time, and will inform you of any changes to our Policy as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information and understand your concerns about your information. We strive to safeguard the information our clients entrust to us. Protecting the confidentiality and security of client information is an important part of how we conduct our business.

This notice describes what personal information we collect about you, how we collect it, when we may share it with others, and how certain others may use it. It discusses the steps you may take to limit our sharing of certain information about you with our affiliated companies, including, but not limited to our affiliated banking businesses, brokerage firms and credit service affiliates. It also discloses how you may limit our affiliates' use of shared information for marketing purposes.

Throughout this Policy, we refer to the nonpublic information that personally identifies you as "personal information." We also use the term "affiliated company" in this notice. An affiliated company is a company in our family of companies and includes companies with the Morgan Stanley name. These affiliated companies are financial institutions such as broker-dealers, banks, investment advisers and credit card issuers. We refer to any company that is not an affiliated company as a nonaffiliated third party. For purposes of Section 5 of this notice, and your ability to limit certain uses of personal information by our affiliates, this notice applies to the use of personal information by our affiliated companies.

1.  WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

We may collect the following types of information about you: (i) information provided by you, including information from applications and other forms we receive from you, (ii) information about your transactions with us or our affiliates, (iii) information about your transactions with nonaffiliated third parties, (iv) information from consumer reporting agencies, (v) information obtained from our websites, and (vi) information obtained from other sources. For example:

•  We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

•  We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources.

•  We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

•  We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2.  WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

We may disclose personal information that we collect about you to our affiliated companies to manage your account(s) effectively, to service and process your transactions, and to let you know about products and services offered by us and affiliated companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from affiliated companies are developed under conditions designed to safeguard your personal information.

b. Information We Disclose to Third Parties.

We may disclose personal information that we collect about you to nonaffiliated third parties to provide marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. We may also disclose all of the information we collect to other nonaffiliated third parties for our everyday business purposes, such as to process transactions, maintain account(s), respond to court orders and legal investigations, report to credit bureaus, offer our own products and services, protect against fraud, for institutional risk control, to perform services on our behalf, and as otherwise required or permitted by law.

When we share personal information about you with a nonaffiliated third party, they are required to limit their use of personal information about you to the particular purpose for which it was shared and they are not allowed to share personal information about you with others except to fulfill that limited purpose or as may be permitted or required by law.

3.  HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We maintain physical, electronic and procedural security measures that comply with applicable law and regulations to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information by employees. Third parties that provide support or marketing services on our behalf may also receive personal information about you, and we require them to adhere to appropriate security standards with respect to such information.

4.  HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

By following the opt-out procedures in Section 6 below, you may limit the extent to which we share with our affiliated companies, personal information that was collected to determine your eligibility for products and services such as your credit reports and other information that you have provided to us or that we may obtain from third parties ("eligibility information"). Eligibility information does not include your identification information or personal information pertaining to our transactions or experiences with you. Please note that, even if you direct us not to share eligibility information with our affiliated companies, we may still share your personal information, including eligibility information, with our affiliated companies under circumstances that are permitted under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit our affiliated companies from marketing their products or services to you based on personal information we disclose to them. This information may include, for example, your income and account history with us. Please note that, even if you choose to limit our affiliated companies from using personal information about you that we may share with them for marketing their products and services to you, our affiliated companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the affiliated party has its own relationship with you.

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

6.  HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

If you wish to limit our sharing of eligibility information about you with our affiliated companies, or our affiliated companies' use of personal information for marketing purposes, as described in this notice, you may do so by:

•  Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 5p.m. (EST)

•  Writing to us at the following address:

  Morgan Stanley Services Company Inc.
c/o Privacy Coordinator
201 Plaza Two, 3rd Floor
Jersey City, New Jersey 07311

If you choose to write to us, your request should include: your name, address, telephone number and account number(s) to which the opt-out applies and whether you are opting out with respect to sharing of eligibility information (Section 4 above), or information used for marketing (Section 5 above), or both. Written opt-out requests should not be sent with any other correspondence. In order to process your request, we require that the request be provided by you directly and not through a third party. Once you have informed us about your privacy preferences, your opt-out preference will remain in effect with respect to this Policy (as it may be amended) until you notify us otherwise. If you are a joint account owner, we will accept instructions from any one of you and apply those instructions to the entire account.

Please understand that if you limit our sharing or our affiliated companies' use of personal information, you and any joint account holder(s) may not receive information about our affiliated companies' products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

If you have more than one account or relationship with us, please specify the accounts to which you would like us to apply your privacy choices. If you have accounts or relationships with our affiliates, you may receive multiple privacy policies from them, and will need to separately notify those companies of your privacy choices for those accounts or relationships.

7.  WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

If, at any time in the future, an affiliated company becomes a nonaffiliated third party, further disclosures of personal information made to the former affiliated company will be limited to those described in Section 2(b) above relating to nonaffiliated third parties. If you elected under Section 6 to limit disclosures we make to affiliated companies, or use of personal information by affiliated companies, your election will not apply to use by any former affiliated company of your personal information in their possession once it becomes a nonaffiliated third party.

SPECIAL NOTICE TO RESIDENTS OF VERMONT

The following section supplements our Policy with respect to our individual clients who have a Vermont address and supersedes anything to the contrary in the above Policy with respect to those clients only.

The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with nonaffiliated third parties, or eligibility information with affiliated companies, other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or eligibility information with affiliated companies, unless you provide us with your written consent to share such information.

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

The following section supplements our Policy with respect to our individual clients who have a California address and supersedes anything to the contrary in the above Policy with respect to those clients only.

In response to a California law, if your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Trustee and Officer Information (unaudited)

Trustees

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

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

Morgan Stanley Services Company Inc.
P.O. Box 219804
Kansas City, Missouri 64121

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

Arthur Lev
President and Principal Executive Officer

Mary Ann Picciotto
Chief Compliance Officer

Stefanie V. Chang Yu
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its semi-annual and annual reports within 60 days of the end of the fund's second and fourth fiscal quarters by filing the schedule electronically with the Securities and Exchange Commission (SEC). The semi-annual reports are filed on Form N-CSRS and the annual reports are filed on Form N-CSR. Morgan Stanley also delivers the semi-annual and annual reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im. Each Morgan Stanley fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters on Form N-Q. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Morgan Stanley public website. You may, however, obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You may also review and copy them at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling the SEC toll free at 1 (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov) or by writing the Public Reference Room of the SEC, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Fund's Proxy Voting Policy and Procedures and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus of the Morgan Stanley Institutional Fund Trust which describes in detail each Investment Portfolio's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Portfolio, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

33

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2013 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTCBSAN
654916 EXP [05/31/14]

INVESTMENT MANAGEMENT

Morgan Stanley
Institutional Fund Trust

High Yield Portfolio

Semi-Annual
Report

March 28, 2013

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	7
Statement of Operations	8
Statements of Changes in Net Assets	9
Financial Highlights	10
Notes to Financial Statements	14
U.S. Privacy Policy	19
Trustee and Officer Information	25

This report is authorized for distribution only when preceded or accompanied by prospectuses of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or SAI, which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations, and describes in detail each of the Portfolio's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access portfolio information including performance, characteristics, and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im.

Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Portfolio in the future. There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that market values of securities owned by the Portfolio will decline and, therefore, the value of the Portfolio's shares may be less than what you paid for them. Accordingly, you can lose money investing in Portfolios. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Semi-Annual report, in which you will learn how your investment in High Yield Portfolio performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

Arthur Lev
President and Principal Executive Officer

April 2013

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Expense Example (unaudited)

High Yield Portfolio

As a shareholder of the Portfolio, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, including advisory fees, administration fees, distribution and shareholder services fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 28, 2013 and held for the entire six-month period.

Actual Expenses

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

Please note that "Actual Expenses Paid During Period" are grossed up to reflect Portfolio expenses prior to the effect of Expense Offset (See Note F in the Notes to Financial Statements). Therefore, the annualized net expense ratios may differ from the ratio of expenses to average net assets shown in the Financial Highlights.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/12		Actual Ending Account Value 3/28/13		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
High Yield Portfolio Class I	$	1,000.00	$	1,100.80	$	1,020.84	$	3.86	$	3.72		0.75	%
High Yield Portfolio Class P		1,000.00		1,099.40		1,019.62		5.15		4.95		1.00
High Yield Portfolio Class H		1,000.00		1,099.40		1,019.62		5.15		4.95		1.00
High Yield Portfolio Class L		1,000.00		1,099.00		1,018.39		6.43		6.19		1.25

*  Expenses are calculated using each Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 179/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments

High Yield Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.0%)
Corporate Bonds (98.0%)
Basic Materials (8.2%)
American Gilsonite Co. 11.50%, 9/1/17 (a)	$	100	$	107
APERAM 7.38%, 4/1/16 (a)		50		51
Boise Cascade LLC/Boise Cascade Finance Corp. 6.38%, 11/1/20 (a)		50		53
HudBay Minerals, Inc. 9.50%, 10/1/20		100		110
Ineos Group Holdings SA 8.50%, 2/15/16 (a)		75		77
Kraton Polymers LLC/Kraton Polymers Capital Corp. 6.75%, 3/1/19		50		52
Olin Corp. 5.50%, 8/15/22		50		52
Permian Holdings, Inc. 10.50%, 1/15/18 (a)		100		103
Prince Mineral Holding Corp. 11.50%, 12/15/19 (a)		150		168
Taminco Acquisition Corp. 9.13%, 12/15/17 (a)(b)		100		102
US Coatings Acquisition, Inc./Flash Dutch 2 BV 7.38%, 5/1/21 (a)		150		158
				1,033
Communications (7.9%)
Avaya, Inc. 7.00%, 4/1/19 (a)		100		98
Cablevision Systems Corp. 7.75%, 4/15/18		50		57
Crown Castle International Corp. 5.25%, 1/15/23		50		51
GXS Worldwide, Inc. 9.75%, 6/15/15		50		52
Harron Communications LP/Harron Finance Corp. 9.13%, 4/1/20 (a)		150		167
Intelsat Luxembourg SA 6.75%, 6/1/18 (a)(c)		150		155
inVentiv Health, Inc. 9.00%, 1/15/18 (a)		100		105
Level 3 Financing, Inc. 8.13%, 7/1/19		50		55
MDC Partners, Inc. 6.75%, 4/1/20 (a)		100		102
MetroPCS Wireless, Inc. 6.25%, 4/1/21 (a)		110		113
SBA Telecommunications, Inc. 5.75%, 7/15/20 (a)		50		52
				1,007
Consumer, Cyclical (20.7%)
Academy Ltd./Academy Finance Corp. 9.25%, 8/1/19 (a)		100		113
American Standard Americas 10.75%, 1/15/16 (a)		100		104
Ameristar Casinos, Inc. 7.50%, 4/15/21		50		55

	Face Amount (000)		Value (000)
Burlington Coat Factory Warehouse Corp. 10.00%, 2/15/19	$	50	$	56
Burlington Holdings LLC/Burlington Holding Finance, Inc. 9.00%, 2/15/18 (a)(b)		150		153
Caesars Entertainment Operating Co., Inc., 8.50%, 2/15/20		50		50
10.00%, 12/15/18		150		103
CCM Merger, Inc. 9.13%, 5/1/19 (a)		100		103
Chester Downs & Marina LLC 9.25%, 2/1/20 (a)		100		96
Choice Hotels International, Inc. 5.75%, 7/1/22		50		56
Continental Airlines 2012-3 Class C Pass-Thru Certificates 6.13%, 4/29/18		100		101
Diamond Resorts Corp. 12.00%, 8/15/18		150		166
Exide Technologies 8.63%, 2/1/18		100		86
Graton Economic Development Authority 9.63%, 9/1/19 (a)		100		112
HD Supply, Inc. 10.50%, 1/15/21		150		157
IDQ Holdings, Inc. 11.50%, 4/1/17 (a)		150		166
INTCOMEX, Inc. 13.25%, 12/15/14		145		150
Jaguar Land Rover Automotive PLC 5.63%, 2/1/23 (a)		150		157
Levi Strauss & Co. 6.88%, 5/1/22		50		55
Logan's Roadhouse, Inc. 10.75%, 10/15/17		150		141
RSI Home Products, Inc. 6.88%, 3/1/18 (a)		50		51
Scientific Games International, Inc. 6.25%, 9/1/20		50		51
Snoqualmie Entertainment Authority 9.13%, 2/1/15 (a)		127		127
Sonic Automotive, Inc. 7.00%, 7/15/22		50		55
VWR Funding, Inc. 7.25%, 9/15/17 (a)		50		53
Wolverine World Wide, Inc. 6.13%, 10/15/20 (a)		100		107
				2,624
Consumer, Non-Cyclical (17.6%)
Acadia Healthcare Co., Inc. 6.13%, 3/15/21 (a)		100		104
Albea Beauty Holdings SA 8.38%, 11/1/19 (a)		100		107
American Achievement Corp. 10.88%, 4/15/16 (a)		50		49
ARAMARK Corp. 5.75%, 3/15/20 (a)		100		103

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Non-Cyclical (cont'd)
Armored Autogroup, Inc. 9.25%, 11/1/18	$	150	$	135
Bumble Bee Holdco SCA 9.63%, 3/15/18 (a)(b)		100		104
CDRT Holding Corp. 9.25%, 10/1/17 (a)(b)		50		52
DynCorp International, Inc. 10.38%, 7/1/17		50		50
Global A&T Electronics Ltd. 10.00%, 2/1/19 (a)		200		216
HCA, Inc. 5.88%, 3/15/22		50		54
Hologic, Inc. 6.25%, 8/1/20		50		53
Jaguar Holding Co., I 9.38%, 10/15/17 (a)(b)		100		108
Kindred Healthcare, Inc. 8.25%, 6/1/19		150		150
Knowledge Universe Education LLC 7.75%, 2/1/15 (a)		150		148
Mead Products LLC/ACCO Brands Corp. 6.75%, 4/30/20 (a)		50		54
Monitronics International, Inc. 9.13%, 4/1/20		100		106
RR Donnelley & Sons Co. 7.88%, 3/15/21		50		52
ServiceMaster Co. 8.00%, 2/15/20		100		108
Spectrum Brands Escrow Corp. 6.63%, 11/15/22 (a)		50		54
SUPERVALU, Inc. 8.00%, 5/1/16		50		52
Universal Hospital Services, Inc. 7.63%, 8/15/20		50		54
US Foods, Inc. 8.50%, 6/30/19 (a)		100		107
Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II, Inc. 8.00%, 2/1/18		50		53
Wells Enterprises, Inc. 6.75%, 2/1/20 (a)		150		159
				2,232
Energy (6.7%)
Continental Resources, Inc. 5.00%, 9/15/22		50		53
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. 7.75%, 4/1/19		50		52
Eagle Rock Energy Partners LP/Eagle Rock Energy Finance Corp. 8.38%, 6/1/19		50		53
Kodiak Oil & Gas Corp. 5.50%, 1/15/21 (a)		50		53
Northern Oil and Gas, Inc. 8.00%, 6/1/20		50		52

	Face Amount (000)		Value (000)
Northern Tier Energy LLC/Northern Tier Finance Corp. 7.13%, 11/15/20 (a)	$	100	$	107
Offshore Group Investment Ltd. 7.13%, 4/1/23 (a)		100		103
Penn Virginia Corp. 10.38%, 6/15/16		150		160
PetroBakken Energy Ltd. 8.63%, 2/1/20 (a)		100		103
SM Energy Co. 6.50%, 1/1/23		50		55
Tesoro Corp. 5.38%, 10/1/22		50		52
				843
Finance (6.3%)
CNO Financial Group, Inc. 6.38%, 10/1/20 (a)		50		53
Jefferies Finance LLC/JFIN Co-Issuer Corp. 7.38%, 4/1/20 (a)		200		204
Kennedy-Wilson, Inc. 8.75%, 4/1/19		50		54
Nationstar Mortgage LLC/Nationstar Capital Corp. 7.88%, 10/1/20 (a)		50		56
Neuberger Berman Group LLC/Neuberger Berman Finance Corp. 5.88%, 3/15/22 (a)		50		53
Nuveen Investments, Inc. 9.13%, 10/15/17 (a)		100		104
Oxford Finance LLC/Oxford Finance Co-Issuer, Inc. 7.25%, 1/15/18 (a)		100		104
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp. 8.25%, 9/1/17		50		54
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp. 9.50%, 6/15/19 (a)		100		110
				792
Government (0.4%)
Laredo Petroleum, Inc. 7.38%, 5/1/22		50		55
Industrials (24.5%)
Alion Science & Technology Corp. 12.00%, 11/1/14 (b)		100		103
Associated Asphalt Partners LLC/Road Holdings III LLC/Associated Asphalt Finance 8.50%, 2/15/18 (a)		100		103
Atkore International, Inc. 9.88%, 1/1/18		50		55
BC Mountain LLC/BC Mountain Finance, Inc. 7.00%, 2/1/21 (a)		100		106
Bristow Group, Inc. 6.25%, 10/15/22		50		54
Cequel Communications Holdings I LLC/ Cequel Capital Corp. 6.38%, 9/15/20 (a)		50		52
CEVA Group PLC 8.38%, 12/1/17 (a)		100		103

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Cleaver Brooks, Inc. 8.75%, 12/15/19 (a)	$	100	$	108
Consolidated Container Co., LLC/Consolidated Container Capital, Inc. 10.13%, 7/15/20 (a)		150		165
Dematic SA/DH Services Luxembourg Sarl 7.75%, 12/15/20 (a)		50		52
DryShips, Inc. 5.00%, 12/1/14		100		87
Gibraltar Industries, Inc. 6.25%, 2/1/21 (a)		50		53
Griffon Corp. 7.13%, 4/1/18		50		54
Harland Clarke Holdings Corp. 9.50%, 5/15/15		100		99
Heckmann Corp. 9.88%, 4/15/18		100		107
Interline Brands, Inc. 10.00%, 11/15/18 (a)(b)		150		167
JB Poindexter & Co., Inc. 9.00%, 4/1/22 (a)		150		157
Kenan Advantage Group, Inc. (The) 8.38%, 12/15/18 (a)		100		105
Kratos Defense & Security Solutions, Inc. 10.00%, 6/1/17		50		55
Marquette Transportation Co./Marquette Transportation Finance Corp. 10.88%, 1/15/17		150		161
Martin Midstream Partners LP/Martin Midstream Finance Corp. 7.25%, 2/15/21 (a)		50		51
Navios Maritime Holdings, Inc./Navios Maritime Finance II US, Inc. 8.13%, 2/15/19		100		91
Pretium Packaging LLC/Pretium Finance, Inc. 11.50%, 4/1/16		100		109
Quality Distribution LLC/QD Capital Corp. 9.88%, 11/1/18		150		166
Sealed Air Corp. 6.50%, 12/1/20 (a)		50		55
Sequa Corp. 7.00%, 12/15/17 (a)		100		102
Silver II Borrower/Silver II US Holdings LLC 7.75%, 12/15/20 (a)		100		107
Tekni-Plex, Inc. 9.75%, 6/1/19 (a)		100		111
Terex Corp. 6.00%, 5/15/21		50		53
Tervita Corp. 8.00%, 11/15/18 (a)		50		52
Viasystems, Inc. 7.88%, 5/1/19 (a)		50		53
Weekley Homes LLC/Weekley Finance Corp. 6.00%, 2/1/23 (a)		100		104
Zachry Holdings, Inc. 7.50%, 2/1/20 (a)		100		106
				3,106

	Face Amount (000)		Value (000)
Technology (3.9%)
CDW LLC/CDW Finance Corp. 8.50%, 4/1/19	$	50	$	56
First Data Corp., 10.63%, 6/15/21 (a)(c)		50		51
11.25%, 1/15/21 (a)		50		52
Freescale Semiconductor, Inc. 9.25%, 4/15/18 (a)		50		55
iGate Corp. 9.00%, 5/1/16		50		55
IMS Health, Inc. 6.00%, 11/1/20 (a)		50		52
Infor US, Inc., 9.38%, 4/1/19		100		114
11.50%, 7/15/18		45		53
				488
Utilities (1.8%)
AES Corp. 7.38%, 7/1/21		50		58
GenOn Americas Generation LLC 8.50%, 10/1/21		100		118
Sabine Pass LNG LP 6.50%, 11/1/20 (a)		50		53
				229
Total Fixed Income Securities (Cost $11,778)				12,409
	Shares
Short-Term Investment (0.2%)
Investment Company (0.2%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $24)		24,080		24
Total Investments (98.2%) (Cost $11,802)				12,433
Other Assets in Excess of Liabilities (1.8%)				226
Net Assets (100.0%)			$	12,659

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

(a)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(b)  Payment-in-kind security.

(c)  When-issued security.

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		25.0	%
Consumer, Cyclical		21.1
Consumer, Non-Cyclical		17.9
Basic Materials		8.3
Communications		8.1
Energy		6.8
Finance		6.4
Other*		6.4
Total Investments		100.0	%

*  Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

High Yield Portfolio

Statement of Assets and Liabilities	March 28, 2013 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $11,778)	$	12,409
Investment in Security of Affiliated Issuer, at Value (Cost $24)		24
Total Investments in Securities, at Value (Cost $11,802)		12,433
Cash		—	@
Receivable for Investments Sold		667
Interest Receivable		267
Due from Adviser		48
Receivable from Affiliate		—	@
Other Assets		38
Total Assets		13,453
Liabilities:
Payable for Investments Purchased		759
Payable for Professional Fees		21
Payable for Transfer Agent Fees		4
Payable for Custodian Fees		1
Payable for Administration Fees		1
Payable for Portfolio Shares Redeemed		—	@
Payable for Shareholder Services Fees — Class P		—	@
Payable for Distribution and Shareholder Services Fees — Class H		—	@
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Other Liabilities		8
Total Liabilities		794
Net Assets	$	12,659
Net Assets Consist Of:
Paid-in-Capital	$	11,579
Undistributed Net Investment Income		98
Accumulated Net Realized Gain		351
Unrealized Appreciation (Depreciation) on:
Investments		631
Net Assets	$	12,659
CLASS I:
Net Assets	$	12,078
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		1,093,648
Net Asset Value, Offering and Redemption Price Per Share	$	11.04
CLASS P:
Net Assets	$	139
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		12,562
Net Asset Value, Redemption Price Per Share	$	11.04
Maximum Sales Load§§		4.25	%
Maximum Sales Charge	$	0.49
Maximum Offering Price Per Share	$	11.53
CLASS H:
Net Assets	$	332
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		30,054
Net Asset Value, Redemption Price Per Share	$	11.04
Maximum Sales Load§§		4.00	%
Maximum Sales Charge	$	0.46
Maximum Offering Price Per Share	$	11.50
CLASS L:
Net Assets	$	110
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		10,000
Net Asset Value, Offering and Redemption Price Per Share	$	11.04

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

§§  Effective February 25, 2013, the Trustees approved the imposition of a maximum initial sales charge of 4.25% on purchases of Class P shares of the Portfolio and an increase in the maximum initial sales charge on purchases of Class H shares of the Portfolio from 3.50% to 4.00%.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

High Yield Portfolio

Statement of Operations	Six Months Ended March 28, 2013 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	484
Dividends from Security of Affiliated Issuer		—	@
Total Investment Income		484
Expenses:
Offering Costs		48
Professional Fees		38
Advisory Fees (Note B)		34
Registration Fees		12
Shareholder Reporting Fees		10
Custodian Fees (Note F)		6
Transfer Agency Fees (Note E)		6
Administration Fees (Note C)		5
Pricing Fees		5
Trustees' Fees and Expenses		1
Shareholder Services Fees — Class P (Note D)		—	@
Shareholder Services Fees — Class H (Note D)		—	@
Distribution and Shareholder Services Fees — Class L (Note D)		—	@
Other Expenses		12
Total Expenses		177
Expenses Reimbursed by Adviser (Note B)		(99	)
Waiver of Advisory Fees (Note B)		(34	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		44
Net Investment Income		440
Realized Gain:
Investments Sold		416
Change in Unrealized Appreciation (Depreciation):
Investments		261
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		677
Net Increase in Net Assets Resulting from Operations	$	1,117

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

High Yield Portfolio

Statements of Changes in Net Assets	Six Months Ended March 28, 2013R (unaudited) (000)			Period from February 7, 2012^ to September 30, 2012 (000)
Increase in Net Assets:
Operations:
Net Investment Income	$	440		$	503
Net Realized Gain		416			216
Net Change in Unrealized Appreciation (Depreciation)		261			370
Net Increase in Net Assets Resulting from Operations		1,117			1,089
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(449	)		(365	)
Net Realized Gain		(270	)		—
Class P:
Net Investment Income		(4	)		(4	)
Net Realized Gain		(3	)		—
Class H:
Net Investment Income		(10	)		(5	)
Net Realized Gain		(5	)		—
Class L:
Net Investment Income		(5	)		(3	)
Net Realized Gain		(3	)		—
Total Distributions		(749	)		(377	)
Capital Share Transactions:(1)
Class I:
Subscribed		880			10,286
Distributions Reinvested		42			1
Redeemed		(172	)		—
Class P:
Subscribed		28			100
Class H:
Subscribed		256			250
Distributions Reinvested		8			1
Redeemed		(147	)		(54	)
Class L:
Subscribed		127			100
Distributions Reinvested		1			—
Redeemed		(128	)		—
Net Increase in Net Assets Resulting from Capital Share Transactions		895			10,684
Total Increase in Net Assets		1,263			11,396
Net Assets:
Beginning of Period		11,396			—
End of Period (Including Undistributed Net Investment Income of $98 and $126)	$	12,659		$	11,396
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		81			1,025
Shares Issued on Distributions Reinvested		4			—	@@
Shares Redeemed		(16	)		—
Net Increase in Class I Shares Outstanding		69			1,025
Class P:
Shares Subscribed		3			10
Class H:
Shares Subscribed		24			24
Shares Issued on Distributions Reinvested		1			—	@@
Shares Redeemed		(14	)		(5	)
Net Increase in Class H Shares Outstanding		11			19
Class L:
Shares Subscribed		12			10
Shares Issued on Distributions Reinvested		—	@@		—
Shares Redeemed		(12	)		—
Net Increase in Class L Shares Outstanding		—			10

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

@@  Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

High Yield Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R(unaudited)			Period from February 7, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.71		$	10.00
Income from Investment Operations:
Net Investment Income†		0.41			0.50
Net Realized and Unrealized Gain		0.61			0.59
Total from Investment Operations		1.02			1.09
Distributions from and/or in Excess of:
Net Investment Income		(0.43	)		(0.38	)
Net Realized Gain		(0.26	)		—
Total Distributions		(0.69	)		(0.38	)
Net Asset Value, End of Period	$	11.04		$	10.71
Total Return++		10.08	%#		11.07	%#
Ratios and Supplemental Data:††
Net Assets, End of Period (Thousands)	$	12,078		$	10,975
Ratio of Expenses to Average Net Assets (1)		0.75	%*+		0.74	%*+
Ratio of Net Investment Income to Average Net Assets (1)		7.68	%*+		7.53	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.01	%*
Portfolio Turnover Rate		141	%#		192	%#
(1) Supplemental Information on the Ratios to Average Net Assets:††
Ratios Before Expense Limitation:
Expenses to Average Net Assets		3.07	%*		3.17	%*
Net Investment Income to Average Net Assets		5.36	%*		5.10	%*

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

High Yield Portfolio

	Class P
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R(unaudited)			Period from February 7, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.71		$	10.00
Income from Investment Operations:
Net Investment Income†		0.39			0.48
Net Realized and Unrealized Gain		0.62			0.59
Total from Investment Operations		1.01			1.07
Distributions from and/or in Excess of:
Net Investment Income		(0.42	)		(0.36	)
Net Realized Gain		(0.26	)		—
Total Distributions		(0.68	)		(0.36	)
Net Asset Value, End of Period	$	11.04		$	10.71
Total Return++		9.94	%#		10.92	%#
Ratios and Supplemental Data:††
Net Assets, End of Period (Thousands)	$	139		$	107
Ratio of Expenses to Average Net Assets (1)		1.00	%*+		0.99	%*+
Ratio of Net Investment Income to Average Net Assets (1)		7.43	%*+		7.28	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.01	%*
Portfolio Turnover Rate		141	%#		192	%#
(1) Supplemental Information on the Ratios to Average Net Assets:††
Ratios Before Expense Limitation:
Expenses to Average Net Assets		3.32	%*		3.42	%*
Net Investment Income to Average Net Assets		5.11	%*		4.85	%*

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

High Yield Portfolio

	Class H
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R(unaudited)			Period from February 7, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.71		$	10.00
Income from Investment Operations:
Net Investment Income†		0.39			0.48
Net Realized and Unrealized Gain		0.62			0.59
Total from Investment Operations		1.01			1.07
Distributions from and/or in Excess of:
Net Investment Income		(0.42	)		(0.36	)
Net Realized Gain		(0.26	)		—
Total Distributions		(0.68	)		(0.36	)
Net Asset Value, End of Period	$	11.04		$	10.71
Total Return++		9.94	%#		10.92	%#
Ratios and Supplemental Data:††
Net Assets, End of Period (Thousands)	$	332		$	207
Ratio of Expenses to Average Net Assets (1)		1.00	%*+		0.99	%*+
Ratio of Net Investment Income to Average Net Assets (1)		7.43	%*+		7.28	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.01	%*
Portfolio Turnover Rate		141	%#		192	%#
(1) Supplemental Information on the Ratios to Average Net Assets:††
Ratios Before Expense Limitation:
Expenses to Average Net Assets		3.32	%*		3.42	%*
Net Investment Income to Average Net Assets		5.11	%*		4.85	%*

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

High Yield Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R(unaudited)			Period from February 7, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.70		$	10.00
Income from Investment Operations:
Net Investment Income†		0.38			0.46
Net Realized and Unrealized Gain		0.63			0.59
Total from Investment Operations		1.01			1.05
Distributions from and/or in Excess of:
Net Investment Income		(0.41	)		(0.35	)
Net Realized Gain		(0.26	)		—
Total Distributions		(0.67	)		(0.35	)
Net Asset Value, End of Period	$	11.04		$	10.70
Total Return++		9.90	%#		10.66	%#
Ratios and Supplemental Data:††
Net Assets, End of Period (Thousands)	$	110		$	107
Ratio of Expenses to Average Net Assets (1)		1.25	%*+		1.24	%*+
Ratio of Net Investment Income to Average Net Assets (1)		7.18	%*+		7.03	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.01	%*
Portfolio Turnover Rate		141	%#		192	%#
(1) Supplemental Information on the Ratios to Average Net Assets:††
Ratios Before Expense Limitation:
Expenses to Average Net Assets		3.57	%*		3.67	%*
Net Investment Income to Average Net Assets		4.86	%*		4.60	%*

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("MSIFT'' or the "Fund'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Fund is comprised of seven separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the High Yield Portfolio. The Portfolio seeks total return. The Portfolio offers four classes of shares — Class I, Class P, Class H and Class L.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Fund in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

1.  Security Valuation: (1) Bonds and other fixed income securities may be valued according to the broadest and most representative market. In addition, bonds and other fixed income securities may be valued on the basis of prices provided by a pricing service. The prices provided by a pricing service take into account broker-dealer market price quotations for institutional size trading in similar groups of securities, security quality, maturity, coupon and other security characteristics as well as any developments related to the specific securities; (2) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc., (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees (the "Trustees"). Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be

adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (3) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (4) short-term debt securities having a maturity date of more than sixty days at the time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost, which approximates fair value.

Under procedures approved by the Trustees, the Fund's Adviser has formed a Valuation Committee. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Trustees. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation

14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurements and Disclosures" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below.

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination

of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Portfolio's investments as of March 28, 2013.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities — Corporate Bonds	$	—	$	12,409	$	—	$	12,409
Short-Term Investment — Investment Company		24		—		—		24
Total Assets	$	24	$	12,409	$	—	$	12,433

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of March 28, 2013, the Portfolio did not have any investments transfer between investment levels.

3.  When-Issued/Delayed Delivery Securities: The Portfolio purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the Portfolio on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place up to 120 days after the date of the transaction. When the Portfolio enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral in an amount at least equal in value to the Portfolio's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower than the agreed upon purchase price, in which case there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Portfolio.

4.  Indemnifications: The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses

15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

pursuant to these contracts and expects the risk of loss to be remote.

5.  Dividends and Distributions to Shareholders: Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid monthly. Net realized capital gains, if any, are distributed at least annually.

6.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Portfolio with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.60% of the average daily net assets of the Portfolio. For the period ended March 28, 2013, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.00% of the Portfolio's daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.75% for Class I shares, 1.00% for Class P shares, 1.00% for Class H shares and 1.25% for Class L shares. The fee waivers and/or expense reimbursements will continue for at least one year or until such time that the Fund's Board of Trustees acts to discontinue all or a portion of such waivers

and/or reimbursements when it deems such action is appropriate. For the six months ended March 28, 2013, approximately $133,000 of advisory fees were waived and/or reimbursed pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted Shareholder Services Plans with respect to Class P and Class H shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plans, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class P and Class H shares.

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.25% and a shareholder service fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class L shares.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class P, Class H and Class L shares.

E. Dividend Disbursing and Transfer Agent: The Fund's dividend disbursing and transfer agent is Morgan Stanley Services Company Inc. ("Morgan Stanley Services"). Pursuant to a Transfer Agency Agreement, the Fund pays Morgan Stanley Services a fee based on the number of classes, accounts and transactions relating to the Portfolios of the Fund.

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Fund in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Fund as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

The Fund has entered into an arrangement with its Custodian whereby credits realized on uninvested cash balances may be used to offset a portion of the Portfolio's expenses. If applicable, these custodian credits are shown as "Expense Offset" in the Statement of Operations.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 28, 2013, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $16,850,000 and $16,336,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 28, 2013.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 28, 2013, advisory fees paid were reduced by less than $500 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 28, 2013 is as follows:

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)			Value March 28, 2013 (000)
$	148	$	1,948	$	2,072	$	—	@	$	24

@ Amount is less than $500.

The Portfolio has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation

and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the net asset value of the Portfolio.

H. Federal Income Taxes: It is the Portfolio's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for Federal income taxes is required in the financial statements.

Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recognized on the accrual basis. Dividends from net investment income, if any, are declared and paid monthly. Net realized capital gains, if any, are distributed at least annually.

The Portfolio may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10 "Income Taxes — Overall" sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. The year ended September 30, 2012 remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal 2012 was as follows:

2012 Distributions Paid From: Ordinary Income (000)
	$	377

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

At September 30, 2012, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	342	$	—

At March 28, 2013, the aggregate cost for federal income tax purposes is approximately $11,802,000. The aggregate gross unrealized appreciation is approximately $665,000 and the aggregate gross unrealized depreciation is approximately $34,000 resulting in net unrealized appreciation of approximately $631,000.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Modernization Act") was signed into law. The Modernization Act modernizes several tax provisions related to Regulated Investment Companies ("RICs") and their shareholders. One key change made by the Modernization Act is that capital losses will generally retain their character as short-term or long-term and may be carried forward indefinitely to offset future gains. These losses are utilized before other capital loss carryforwards that expire. Generally, the Modernization Act is effective for taxable years beginning after December 22, 2010.

I. Accounting Pronouncement: In January 2013, Accounting Standard Update 2013-01 ("ASU 2013-01"), "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," replaced Accounting Standards Update 2011-11 ("ASU 2011-11"), "Disclosures about Offsetting Assets and Liabilities." ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact, if any, on the Portfolio's financial statements.

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

We are required by federal law to provide you with notice of our U.S. privacy policy ("Policy"). This Policy applies to both our current and former clients unless we state otherwise and is intended for individual clients who purchase products or receive services from us for personal, family or household purposes. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders, nor is this Policy applicable to individuals who are either beneficiaries of a trust for which we serve as trustee or participants in an employee benefit plan administered or advised by us. This Policy is, however, applicable to individuals who select us to be a custodian of securities or assets in individual retirement accounts, 401(k) accounts, or accounts subject to the Uniform Gifts to Minors Act.

This notice sets out our business practices to protect your privacy; how we collect and share personal information about you; and how you can limit our sharing or certain uses by others of this information. We may amend this Policy at any time, and will inform you of any changes to our Policy as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information and understand your concerns about your information. We strive to safeguard the information our clients entrust to us. Protecting the confidentiality and security of client information is an important part of how we conduct our business.

This notice describes what personal information we collect about you, how we collect it, when we may share it with others, and how certain others may use it. It discusses the steps you may take to limit our sharing of certain information about you with our affiliated companies, including, but not limited to our affiliated banking businesses, brokerage firms and credit service affiliates. It also discloses how you may limit our affiliates' use of shared information for marketing purposes.

Throughout this Policy, we refer to the nonpublic information that personally identifies you as "personal information." We also use the term "affiliated company" in this notice. An affiliated company is a company in our family of companies and includes companies with the Morgan Stanley name. These affiliated companies are financial institutions such as broker-dealers, banks, investment advisers and credit card issuers. We refer to any company that is not an affiliated company as a nonaffiliated third party. For purposes of Section 5 of this notice, and your ability to limit certain uses of personal information by our affiliates, this notice applies to the use of personal information by our affiliated companies.

1.  WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

We may collect the following types of information about you: (i) information provided by you, including information from applications and other forms we receive from you, (ii) information about your transactions with us or our affiliates, (iii) information about your transactions with nonaffiliated third parties, (iv) information from consumer reporting agencies, (v) information obtained from our websites, and (vi) information obtained from other sources. For example:

• We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

• We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources.

• We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

• We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2.  WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

a. Information we disclose to affiliated companies.

We may disclose personal information that we collect about you to our affiliated companies to manage your account(s) effectively, to service and process your transactions, and to let you know about products and services offered by us and affiliated companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from affiliated companies are developed under conditions designed to safeguard your personal information.

b. Information we disclose to third parties.

We may disclose personal information that we collect about you to nonaffiliated third parties to provide marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. We may also disclose all of the information we collect to other nonaffiliated third parties for our everyday business purposes, such as to process transactions, maintain account(s), respond to court orders and legal investigations, report to credit bureaus, offer our own products and services, protect against fraud, for institutional risk control, to perform services on our behalf, and as otherwise required or permitted by law.

When we share personal information about you with a nonaffiliated third party, they are required to limit their use of personal information about you to the particular purpose for which it was shared and they are not allowed to share personal information about you with others except to fulfill that limited purpose or as may be permitted or required by law.

3.  HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We maintain physical, electronic and procedural security measures that comply with applicable law and regulations to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information by employees. Third parties that provide support or marketing services on our behalf may also receive personal information about you, and we require them to adhere to appropriate security standards with respect to such information.

4.  HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

By following the opt-out procedures in Section 6 below, you may limit the extent to which we share with our affiliated companies, personal information that was collected to determine your eligibility for products and services such as your credit reports and other information that you have provided to us or that we may obtain from third parties ("eligibility information"). Eligibility information does not include your identification information or personal information pertaining to our transactions or experiences with you. Please note that, even if you direct us not to share eligibility information with our affiliated companies, we may still share your personal information, including eligibility information, with our affiliated companies under circumstances that are permitted under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit our affiliated companies from marketing their products or services to you based on personal information we disclose to them. This information may include, for example, your income and account history with us. Please note that, even if you choose to limit our affiliated companies from using personal information about you that we may share with them for marketing their products and services to you, our affiliated companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the affiliated party has its own relationship with you.

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

6.  HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

If you wish to limit our sharing of eligibility information about you with our affiliated companies, or our affiliated companies' use of personal information for marketing purposes, as described in this notice, you may do so by:

•  Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 5p.m. (EST)

•  Writing to us at the following address:

  Morgan Stanley Services Company Inc.
c/o Privacy Coordinator
201 Plaza Two, 3rd Floor
Jersey City, New Jersey 07311

If you choose to write to us, your request should include: your name, address, telephone number and account number(s) to which the opt-out applies and whether you are opting out with respect to sharing of eligibility information (Section 4 above), or information used for marketing (Section 5 above), or both. Written opt-out requests should not be sent with any other correspondence. In order to process your request, we require that the request be provided by you directly and not through a third party. Once you have informed us about your privacy preferences, your opt-out preference will remain in effect with respect to this Policy (as it may be amended) until you notify us otherwise. If you are a joint account owner, we will accept instructions from any one of you and apply those instructions to the entire account.

Please understand that if you limit our sharing or our affiliated companies' use of personal information, you and any joint account holder(s) may not receive information about our affiliated companies' products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

If you have more than one account or relationship with us, please specify the accounts to which you would like us to apply your privacy choices. If you have accounts or relationships with our affiliates, you may receive multiple privacy policies from them, and will need to separately notify those companies of your privacy choices for those accounts or relationships.

7.  WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

If, at any time in the future, an affiliated company becomes a nonaffiliated third party, further disclosures of personal information made to the former affiliated company will be limited to those described in Section 2(b) above relating to nonaffiliated third parties. If you elected under Section 6 to limit disclosures we make to affiliated companies, or use of personal information by affiliated companies, your election will not apply to use by any former affiliated company of your personal information in their possession once it becomes a nonaffiliated third party.

SPECIAL NOTICE TO RESIDENTS OF VERMONT

The following section supplements our Policy with respect to our individual clients who have a Vermont address and supersedes anything to the contrary in the above Policy with respect to those clients only.

The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with nonaffiliated third parties, or eligibility information with affiliated companies, other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or eligibility information with affiliated companies, unless you provide us with your written consent to share such information.

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

The following section supplements our Policy with respect to our individual clients who have a California address and supersedes anything to the contrary in the above Policy with respect to those clients only.

In response to a California law, if your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Trustee and Officer Information (unaudited)

Trustees

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

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

Morgan Stanley Services Company Inc.
P.O. Box 219804
Kansas City, Missouri 64121

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

Arthur Lev
President and Principal Executive Officer

Mary Ann Picciotto
Chief Compliance Officer

Stefanie V. Chang Yu
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its semi-annual and annual reports within 60 days of the end of the fund's second and fourth fiscal quarters by filing the schedule electronically with the Securities and Exchange Commission (SEC). The semi-annual reports are filed on Form N-CSRS and the annual reports are filed on Form N-CSR. Morgan Stanley also delivers the semi-annual and annual reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im. Each Morgan Stanley fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters on Form N-Q. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Morgan Stanley public website. You may, however, obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You may also review and copy them at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling the SEC toll free at 1 (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov) or by writing the Public Reference Room of the SEC, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Fund's Proxy Voting Policy and Procedures and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus of the Morgan Stanley Institutional Fund Trust which describes in detail each Investment Portfolio's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Portfolio, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

25

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2013 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTHYSAN
656129 EXP[05/31/14]

INVESTMENT MANAGEMENT

Morgan Stanley
Institutional Fund Trust

Limited Duration Portfolio

Semi-Annual
Report

March 28, 2013

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	10
Statement of Operations	12
Statements of Changes in Net Assets	13
Financial Highlights	14
Notes to Financial Statements	18
U.S. Privacy Policy	26
Trustee and Officer Information	29

This report is authorized for distribution only when preceded or accompanied by prospectuses of the Morgan Stanley Institutional Fund Trust. To receive a prospectus and/or SAI, which contains more complete information such as investment objectives, charges, expenses, policies for voting proxies, risk considerations, and describes in detail each of the Portfolio's investment policies to the prospective investor, please call toll free 1 (800) 548-7786. Please read the prospectuses carefully before you invest or send money.

Additionally, you can access portfolio information including performance, characteristics, and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im.

Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Portfolio in the future. There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that market values of securities owned by the Portfolio will decline and, therefore, the value of the Portfolio's shares may be less than what you paid for them. Accordingly, you can lose money investing in Portfolios. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Semi-Annual report, in which you will learn how your investment in Limited Duration Portfolio performed during the latest six-month period.

Morgan Stanley Investment Management is a client-centric, investor-led organization. Our global presence, intellectual capital, and breadth of products and services enable us to partner with investors to meet the evolving challenges of today's financial markets. We aim to deliver superior investment service and to empower our clients to make the informed decisions that help them reach their investment goals.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

Arthur Lev
President and Principal Executive Officer

April 2013

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Expense Example (unaudited)

Limited Duration Portfolio

As a shareholder of the Portfolio, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, including advisory fees, administration fees, distribution and shareholder services fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds.

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 28, 2013 and held for the entire six-month period.

Actual Expenses

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

Please note that "Actual Expenses Paid During Period" are grossed up to reflect Portfolio expenses prior to the effect of Expense Offset (See Note F in the Notes to Financial Statements). Therefore, the annualized net expense ratios may differ from the ratio of expenses to average net assets shown in the Financial Highlights.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads, if applicable). Therefore, the information for each class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/12		Actual Ending Account Value 3/28/13		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Limited Duration Portfolio Class I	$	1,000.00	$	1,008.30	$	1,020.99	$	3.55	$	3.57		0.72	%
Limited Duration Portfolio Class P		1,000.00		1,007.00		1,019.76		4.77		4.80		0.97
Limited Duration Portfolio Class H		1,000.00		1,007.10		1,019.76		4.77		4.80		0.97
Limited Duration Portfolio Class L		1,000.00		1,004.60		1,018.49		6.05		6.09		1.23

*  Expenses are calculated using each Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 179/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.8%)
Agency Adjustable Rate Mortgages (2.8%)
Federal Home Loan Mortgage Corporation,
Conventional Pools:
2.75%, 7/1/36	$	186	$	198
2.80%, 7/1/38		554		592
2.93%, 9/1/35 - 1/1/38		1,045		1,108
Federal National Mortgage Association,
Conventional Pools:
2.34%, 5/1/35		694		739
2.94%, 5/1/39		751		809
Government National Mortgage Association,
Various Pool
4.00%, 2/20/40		253		268
				3,714
Agency Fixed Rate Mortgages (0.7%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
6.50%, 9/1/19 - 11/1/29		13		15
7.50%, 11/1/19		2		2
Federal National Mortgage Association,
Conventional Pools:
6.50%, 2/1/28 - 10/1/32		719		830
7.00%, 7/1/29 - 12/1/33		62		75
Government National Mortgage Association,
Various Pools:
9.00%, 11/15/16 - 12/15/16		34		37
				959
Asset-Backed Securities (12.4%)
Ally Auto Receivables Trust,
Series 2012-3
0.62%, 3/15/17		750		751
Series 2012-SN1
0.57%, 8/20/15		560		561
Ally Master Owner Trust,
2.15%, 1/15/16		700		709
2.88%, 4/15/15 (a)		650		651
American Express Credit Account Master Trust
1.45%, 3/15/17 (b)		2,325		2,364
AWAS Aviation Capital Ltd.
7.00%, 10/17/16 (a)		404		428
CarMax Auto Owner Trust
0.52%, 7/17/17		500		500
Chase Issuance Trust,
0.54%, 10/16/17		1,125		1,124
0.59%, 8/15/17		1,608		1,607
CNH Equipment Trust
1.17%, 5/15/15		322		322
Ford Credit Auto Lease Trust,
0.57%, 9/15/15		330		330
0.60%, 3/15/16		590		590

	Face Amount (000)		Value (000)
Ford Credit Floorplan Master Owner Trust
4.20%, 2/15/17 (a)	$	1,150	$	1,227
GE Dealer Floorplan Master Note Trust
0.69%, 6/20/17 (b)		750		754
GE Equipment Transportation LLC
0.62%, 7/25/16		570		570
Harley-Davidson Motorcycle Trust,
Series 2010-1
1.16%, 2/15/15		307		307
Hyundai Auto Receivables Trust
0.53%, 4/17/17		1,500		1,500
Nationstar Agency Advance Funding Trust
1.89%, 2/18/48 (a)		100		101
North Carolina State Education Assistance Authority,
0.75%, 1/25/21 (b)		278		278
1.10%, 7/25/25 (b)		625		631
Panhandle-Plains Higher Education Authority, Inc.
1.23%, 7/1/24 (b)		275		278
Volvo Financial Equipment LLC
0.74%, 3/15/17 (a)		650		650
World Omni Automobile Lease Securitization Trust
0.93%, 11/16/15		180		181
				16,414
Collateralized Mortgage Obligations — Agency Collateral Series (2.8%)
Federal Home Loan Mortgage Corporation,
1.43%, 8/25/17		688		702
1.56%, 10/25/18		263		269
REMIC
7.50%, 9/15/29		1,463		1,724
Federal National Mortgage Association,
0.95%, 11/25/15		360		364
1.08%, 2/25/16		670		678
				3,737
Commercial Mortgage-Backed Security (0.1%)
Citigroup Commercial Mortgage Trust (See Note G)
2.11%, 1/12/18		182		187
Corporate Bonds (65.2%)
Finance (30.6%)
ABB Treasury Center USA, Inc.
2.50%, 6/15/16 (a)		745		777
Abbey National Treasury Services PLC
2.88%, 4/25/14		615		626
ABN Amro Bank N.V.
4.25%, 2/2/17 (a)		400		437
Aflac, Inc.
3.45%, 8/15/15		325		345
American Express Co.
7.25%, 5/20/14		1,680		1,804
American International Group, Inc.
3.65%, 1/15/14		745		763
Banco Bradesco SA
4.50%, 1/12/17		975		1,043

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Bank of America Corp.,
Series 1
3.75%, 7/12/16	$	1,295	$	1,378
Bank of Montreal
1.40%, 9/11/17		585		586
Barclays Bank PLC
5.20%, 7/10/14		980		1,033
BNP Paribas SA
2.38%, 9/14/17		1,000		1,016
BP Capital Markets PLC
3.88%, 3/10/15		595		631
Canadian Imperial Bank of Commerce
1.55%, 1/23/18		310		312
Capital One Financial Corp.
7.38%, 5/23/14		875		940
CIT Group, Inc.
5.00%, 5/15/17		500		539
Citigroup, Inc. (See Note G)
4.45%, 1/10/17		1,125		1,240
Commonwealth Bank of Australia
1.95%, 3/16/15		735		753
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
3.38%, 1/19/17		330		354
Credit Agricole SA
3.00%, 10/1/17 (a)		725		752
Discover Bank
2.00%, 2/21/18		665		668
DNB Bank ASA
3.20%, 4/3/17 (a)		610		647
General Electric Capital Corp.
1.63%, 4/2/18 (c)		1,770		1,764
Genworth Life Institutional Funding Trust
5.88%, 5/3/13 (a)		865		869
Goldman Sachs Group, Inc. (The)
2.38%, 1/22/18		880		893
HSBC USA, Inc.
1.63%, 1/16/18		685		685
Icahn Enterprises LP/Icahn Enterprises Finance Corp.
7.75%, 1/15/16		375		391
ING Bank N.V.
3.75%, 3/7/17 (a)		600		640
ING US, Inc.
2.90%, 2/15/18 (a)		300		305
Intesa Sanpaolo SpA
3.88%, 1/16/18		355		344
JPMorgan Chase & Co.,
1.88%, 3/20/15		475		484
3.15%, 7/5/16		1,025		1,088
Korea Development Bank (The)
1.50%, 1/22/18		690		682
Macquarie Group Ltd.
7.30%, 8/1/14 (a)		720		772

	Face Amount (000)		Value (000)
Metropolitan Life Global Funding I,
1.50%, 1/10/18 (a)	$	775	$	779
Mizuho Corporate Bank Ltd.
1.85%, 3/21/18 (a)		645		647
Monumental Global Funding III
5.25%, 1/15/14 (a)		1,115		1,153
National Australia Bank Ltd.
3.00%, 7/27/16 (a)		900		952
Nationwide Building Society
4.65%, 2/25/15 (a)		840		890
Nordea Bank AB
2.25%, 3/20/15 (a)		635		653
PNC Bank NA
0.80%, 1/28/16		600		600
Principal Financial Group, Inc.
1.85%, 11/15/17		725		733
Prudential Financial, Inc.,
MTN
4.75%, 9/17/15		930		1,014
Royal Bank of Scotland Group PLC
2.55%, 9/18/15		495		509
Santander Holdings USA, Inc.
3.00%, 9/24/15		110		113
Skandinaviska Enskilda Banken AB
1.75%, 3/19/18 (a)		380		380
Standard Chartered PLC
3.85%, 4/27/15 (a)		940		994
Swedbank AB
1.75%, 3/12/18 (a)		305		304
UBS AG
3.88%, 1/15/15		663		700
UnitedHealth Group, Inc.
1.40%, 10/15/17		250		252
US Bancorp
2.20%, 11/15/16		940		982
WellPoint, Inc.
1.88%, 1/15/18		705		715
Wells Fargo & Co.
3.68%, 6/15/16		1,350		1,461
Westpac Banking Corp.
0.95%, 1/12/16		1,095		1,100
				40,492
Industrials (30.2%)
AbbVie, Inc.,
1.20%, 11/6/15 (a)		745		751
1.75%, 11/6/17 (a)		715		724
Allergan, Inc.
1.35%, 3/15/18		210		211
Altria Group, Inc.
4.13%, 9/11/15		750		810
Amazon.com, Inc.
1.20%, 11/29/17		700		697

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
American Honda Finance Corp.
1.60%, 2/16/18 (a)	$	545	$	552
Amgen, Inc.
2.50%, 11/15/16		425		446
Anheuser-Busch InBev Worldwide, Inc.,
4.13%, 1/15/15		350		372
5.38%, 11/15/14		785		844
Applied Materials, Inc.
2.65%, 6/15/16		455		479
Apria Healthcare Group, Inc.
11.25%, 11/1/14		375		387
ArcelorMittal
9.50%, 2/15/15		610		690
AT&T, Inc.
1.70%, 6/1/17		1,075		1,089
BAA Funding Ltd.
2.50%, 6/25/15 (a)		400		412
Bacardi Ltd.
7.45%, 4/1/14 (a)		835		890
BAT International Finance PLC
1.40%, 6/5/15 (a)		600		607
Best Buy Co., Inc.
3.75%, 3/15/16		875		879
Bill Barrett Corp.
9.88%, 7/15/16		425		457
Bombardier, Inc.
4.25%, 1/15/16 (a)		250		261
Bunge Ltd. Finance Corp.
5.35%, 4/15/14		830		867
Cardinal Health, Inc.
1.70%, 3/15/18		860		858
Chesapeake Energy Corp.
7.63%, 7/15/13		350		357
CNH Capital LLC Co.
6.25%, 11/1/16		355		394
Comcast Corp.
6.50%, 1/15/15		870		960
Covidien International Finance SA
1.35%, 5/29/15		265		269
Daimler Finance North America LLC
1.88%, 9/15/14 (a)		785		797
Diageo Capital PLC
1.50%, 5/11/17		775		786
DirecTV Holdings LLC/DirecTV Financing Co., Inc.
4.75%, 10/1/14		695		735
DISH DBS Corp.
7.13%, 2/1/16		475		530
Ecolab, Inc.,
1.00%, 8/9/15		245		246
3.00%, 12/8/16		320		340
Experian Finance PLC
2.38%, 6/15/17 (a)		600		612

	Face Amount (000)		Value (000)
Express Scripts Holding Co.
2.75%, 11/21/14	$	580	$	598
Ford Motor Credit Co., LLC
5.63%, 9/15/15		375		409
Freeport-McMoRan Copper & Gold, Inc.
2.38%, 3/15/18 (a)		155		156
General Mills, Inc.
0.88%, 1/29/16		340		341
Gilead Sciences, Inc.
3.05%, 12/1/16		1,000		1,071
Goldcorp, Inc.
2.13%, 3/15/18		520		522
Hewlett-Packard Co.
3.30%, 12/9/16		315		328
Home Depot, Inc.
5.40%, 3/1/16		630		714
Hyundai Capital America
1.63%, 10/2/15 (a)		395		398
Intel Corp.
1.35%, 12/15/17		575		578
Kellogg Co.
1.13%, 5/15/15		175		177
Kinross Gold Corp.
3.63%, 9/1/16		740		758
Kraft Foods Group, Inc.
2.25%, 6/5/17		425		441
Kroger Co. (The)
7.50%, 1/15/14		725		764
LVMH Moet Hennessy Louis Vuitton SA
1.63%, 6/29/17 (a)		525		532
Marathon Petroleum Corp.
3.50%, 3/1/16		1,070		1,144
McKesson Corp.
3.25%, 3/1/16		1,070		1,148
News America, Inc.
5.30%, 12/15/14		455		490
Phillips 66
1.95%, 3/5/15		775		792
Precision Castparts Corp.
0.70%, 12/20/15		125		125
Sealy Mattress Co.
10.88%, 4/15/16 (a)		261		276
Stryker Corp.
2.00%, 9/30/16		715		743
Takeda Pharmaceutical Co., Ltd.
1.03%, 3/17/15 (a)		440		444
Time Warner Cable, Inc.
6.75%, 7/1/18		400		493
TSMC Global Ltd.
1.63%, 4/3/18 (a)(c)		800		803
Turlock Corp.
1.50%, 11/2/17 (a)		630		633

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Verizon Communications, Inc.
1.10%, 11/1/17	$	655	$	645
Viacom, Inc.
4.38%, 9/15/14		1,100		1,157
Vodafone Group PLC
1.25%, 9/26/17		775		770
Volkswagen International Finance N.V.
1.63%, 3/22/15 (a)		1,195		1,211
Waste Management, Inc.
2.60%, 9/1/16		725		761
Wesfarmers Ltd.
2.98%, 5/18/16 (a)		395		417
Xstrata Finance Canada Ltd.
1.80%, 10/23/15 (a)		760		769
				39,917
Utilities (4.4%)
AES Corp. (The)
7.75%, 10/15/15		350		395
Enel Finance International N.V.
3.88%, 10/7/14 (a)		1,115		1,147
Enterprise Products Operating LLC
1.25%, 8/13/15		315		318
FirstEnergy Solutions Corp.
4.80%, 2/15/15		755		814
GDF Suez
1.63%, 10/10/17 (a)		650		654
Georgia Power Co.
0.75%, 8/10/15		340		341
NextEra Energy Capital Holdings, Inc.
5.35%, 6/15/13		825		833
Spectra Energy Capital LLC
5.90%, 9/15/13		965		987
TransCanada PipeLines Ltd.
0.88%, 3/2/15		300		302
				5,791
				86,200
Mortgages — Other (1.9%)
Alternative Loan Trust
5.50%, 10/25/35		835		782
FDIC Guaranteed Notes Trust
0.75%, 2/25/48 (a)(b)		349		349
Merrill Lynch Mortgage Investors Trust Series
2.45%, 11/25/35 (b)		705		668
WaMu Mortgage Pass Through Certificates
2.49%, 4/25/35 (b)		705		669
				2,468
Sovereign (1.3%)
ANZ New Zealand Int'l Ltd.
1.13%, 3/24/16 (a)		675		676
Qatar Government International Bond
4.00%, 1/20/15 (a)		500		528

	Face Amount (000)		Value (000)
Spain Government International Bond
4.00%, 3/6/18 (a)	$	500	$	496
				1,700
U.S. Treasury Securities (11.6%)
U.S. Treasury Notes,
0.38%, 6/15/15 - 1/15/16		4,720		4,729
1.25%, 10/31/15		8,453		8,656
1.63%, 11/15/22		1,983		1,948
				15,333
Total Fixed Income Securities (Cost $127,866)				130,712
	Shares
Short-Term Investments (2.8%)
Investment Company (2.7%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $3,637)		3,637,201		3,637
	Face Amount (000)
U.S. Treasury Security (0.1%)
U.S. Treasury Bill,
0.12%, 8/8/13 (d)(e) (Cost $65)	$	65	$	65
Total Short-Term Investments (Cost $3,702)				3,702
Total Investments (101.6%) (Cost $131,568) (f)				134,414
Liabilities in Excess of Other Assets (-1.6%)				(2,101	)
Net Assets (100.0%)			$	132,313

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

(a)  144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.

(b)  Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 28, 2013.

(c)  When-issued security.

(d)  Rate shown is the yield to maturity at March 28, 2013.

(e)  All or a portion of the security was pledged to cover margin requirements for futures contracts.

(f)  Securities are available for collateral in connection with purchase of when-issued securities, open futures contracts and swap agreements.

FDIC  Federal Deposit Insurance Corporation.

MTN  Medium Term Note.

REMIC  Real Estate Mortgage Investment Conduit.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Limited Duration Portfolio

Futures Contracts:

The Portfolio had the following futures contracts open at March 28, 2013:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		160	$	35,272		Jun-13	$	—	@
U.S. Treasury 10 yr. Note		28		3,696		Jun-13		13
U.S. Treasury 30 yr. Bond		16		2,311		Jun-13		5
Short:
U.S. Treasury 5 yr. Note		131		(16,251	)	Jun-13		(29	)
							$	(11	)

Credit Default Swap Agreements

The Portfolio had the following credit default swap agreements open at March 28, 2013:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)			Value (000)		Credit Rating of Reference Obligation† (unaudited)
Barclays Bank Alcoa, Inc.	Buy	$	650		1.00	%	6/20/18	$	58	$	3		$	61	BBB-
Barclays Bank Devon Energy Corporation	Buy		675		1.00		6/20/18		11		(1	)		10	BBB+
Barclays Bank Transocean, Inc.	Buy		700		1.00		6/20/18		30		(1	)		29	BBB-
JPMorgan Chase CDX.NA.IG.20	Sell		2,500		1.00		6/20/18		14		(2	)		12	NR
JPMorgan Chase Kohl's Corporation	Buy		700		1.00		6/20/18		40		(1	)		39	BBB+
		$	5,225					$	153	$	(2	)	$	151

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 28, 2013:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Bank of America	3 Month LIBOR	Receive		2.10	%	2/5/23	$	1,880	$	(26	)
Barclays Capital	3 Month LIBOR	Receive		0.81		9/24/17		3,000		1
Credit Suisse	3 Month LIBOR	Receive		0.82		9/13/17		4,500		(1	)
Deutsche Bank	3 Month LIBOR	Receive		0.82		7/24/17		7,644		(20	)
Goldman Sachs	3 Month LIBOR	Receive		2.09		2/15/23		2,670		(32	)
Royal Bank of Canada	3 Month LIBOR	Receive		2.06		2/6/23		3,320		(30	)
									$	(108	)

LIBOR  London Interbank Offered Rate.

NR  Not Rated.

@  Value is less than $500.

†  Credit Rating as issued by Standard and Poor's.

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Portfolio of Investments (cont'd)

Limited Duration Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Finance		30.1	%
Industrials		29.7
Other*		16.6
Asset-Backed Securities		12.2
U.S. Treasury Securities		11.4
Total Investments		100.0	%**

*  Industries and/or investment types representing less than 5% of total investments.

**  Does not include open long/short futures contracts with an underlying face amount of approximately $57,530,000 and net unrealized depreciation of approximately $11,000. Does not include open swap agreements with net unrealized depreciation of approximately $110,000.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Limited Duration Portfolio

Statement of Assets and Liabilities	March 28, 2013 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $126,569)	$	129,350
Investment in Securities of Affiliated Issuers, at Value (Cost $4,999)		5,064
Total Investments in Securities, at Value (Cost $131,568)		134,414
Cash		12
Interest Receivable		798
Premium Paid on Open Swap Agreements		153
Receivable for Portfolio Shares Sold		68
Receivable for Swap Agreements Termination		17
Receivable from Affiliate		12
Receivable for Variation Margin		10
Unrealized Appreciation on Swap Agreements		4
Other Assets		7
Total Assets		135,495
Liabilities:
Payable for Investments Purchased		2,564
Payable for Portfolio Shares Redeemed		189
Unrealized Depreciation on Swap Agreements		114
Payable for Sub Transfer Agency Fees		99
Payable for Advisory Fees		96
Premium Received from Broker		40
Payable for Professional Fees		28
Payable for Administration Fees		8
Payable for Trustees' Fees and Expenses		4
Payable for Transfer Agent Fees		4
Payable for Custodian Fees		3
Payable for Shareholder Services Fees — Class P		—	@
Payable for Shareholder Services Fees — Class H		—	@
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Other Liabilities		33
Total Liabilities		3,182
Net Assets	$	132,313
Net Assets Consist of:
Paid-in-Capital	$	387,497
Undistributed Net Investment Income		411
Accumulated Net Realized Loss		(258,320	)
Unrealized Appreciation (Depreciation) on:
Investments		2,781
Investments in Affiliates		65
Futures Contracts		(11	)
Swap Agreements		(110	)
Net Assets	$	132,313

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Limited Duration Portfolio

Statement of Assets and Liabilities (cont'd)	March 28, 2013 (000)
CLASS I:
Net Assets	$	131,904
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		16,920,047
Net Asset Value, Offering and Redemption Price Per Share	$	7.80
CLASS P:
Net Assets	$	234
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		30,037
Net Asset Value, Redemption Price Per Share	$	7.81
Maximum Sales Load§§		4.25	%
Maximum Sales Charge	$	0.35
Maximum Offering Price Per Share	$	8.16
CLASS H:
Net Assets	$	141
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		18,055
Net Asset Value, Redemption Price Per Share	$	7.79
Maximum Sales Load§§		4.00	%
Maximum Sales Charge	$	0.32
Maximum Offering Price Per Share	$	8.11
CLASS L:
Net Assets	$	34
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		4,371
Net Asset Value, Offering and Redemption Price Per Share	$	7.79

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

§§  Effective February 25, 2013, the Trustees approved the imposition of a maximum initial sales charge of 4.25% on purchases of Class P shares of the Portfolio and an increase in the maximum initial sales charge on purchases of Class H shares of the Portfolio from 3.50% to 4.00%

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013 (unaudited)R

Limited Duration Portfolio

Statement of Operations	Six Months Ended March 28, 2013 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	1,512
Interest from Securities of Affiliated Issuers		29
Dividends from Security of Affiliated Issuer		2
Total Investment Income		1,543
Expenses:
Advisory Fees (Note B)		205
Sub Transfer Agency Fees		99
Administration Fees (Note C)		55
Professional Fees		35
Registration Fees		33
Shareholder Reporting Fees		18
Custodian Fees (Note F)		13
Pricing Fees		11
Transfer Agency Fees (Note E)		7
Trustees' Fees and Expenses		2
Shareholder Services Fees — Class P (Note D)		—	@
Shareholder Services Fees — Class H (Note D)		—	@
Distribution and Shareholder Services Fees — Class L (Note D)		—	@
Other Expenses		10
Total Expenses		488
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Expense Offset (Note F)		(—	@)
Net Expenses		486
Net Investment Income		1,057
Realized Gain (Loss):
Investments Sold		684
Investments in Affiliates		2
Futures Contracts		53
Swap Agreements		10
Net Realized Gain		749
Change in Unrealized Appreciation (Depreciation):
Investments		(669	)
Investments in Affiliates		(2	)
Futures Contracts		(18	)
Swap Agreements		(48	)
Net Change in Unrealized Appreciation (Depreciation)		(737	)
Net Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation)		12
Net Increase in Net Assets Resulting from Operations	$	1,069

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Limited Duration Portfolio

Statements of Changes in Net Assets	Six Months Ended March 28, 2013R (unaudited) (000)			Year Ended September 30, 2012 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,057		$	2,991
Net Realized Gain (Loss)		749			(345	)
Net Change in Unrealized Appreciation (Depreciation)		(737	)		2,437
Net Increase in Net Assets Resulting from Operations		1,069			5,083
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1,150	)		(3,363	)
Class P:
Net Investment Income		(1	)		(3	)
Class H:
Net Investment Income		(1	)		(—	@)*
Class L:
Net Investment Income		(—	@)		(—	@)*
Total Distributions		(1,152	)		(3,366	)
Capital Share Transactions:(1)
Class I:
Subscribed		1,452			6,757
Distributions Reinvested		1,149			3,362
Redeemed		(16,001	)		(34,259	)
Class P:
Subscribed		102			131
Distributions Reinvested		1			3
Redeemed		(14	)		(184	)
Class H:
Subscribed		168			10	*
Distributions Reinvested		—	@		—
Redeemed		(37	)		—
Class L:
Subscribed		25			10	*
Distributions Reinvested		—	@		—
Redeemed		(1	)		—
Net Decrease in Net Assets Resulting from Capital Share Transactions		(13,156	)		(24,170	)
Total Decrease in Net Assets		(13,239	)		(22,453	)
Net Assets:
Beginning of Period		145,552			168,005
End of Period (Including Undistributed Net Investment Income of $411 and $506)	$	132,313		$	145,552
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		186			873
Shares Issued on Distributions Reinvested		148			435
Shares Redeemed		(2,053	)		(4,432	)
Net Decrease in Class I Shares Outstanding		(1,719	)		(3,124	)
Class P:
Shares Subscribed		13			17
Shares Issued on Distributions Reinvested		—	@@		1
Shares Redeemed		(2	)		(24	)
Net Increase (Decrease) in Class P Shares Outstanding		11			(6	)
Class H:
Shares Subscribed		22			1	*
Shares Issued on Distributions Reinvested		—	@@		—
Shares Redeemed		(5	)		—
Net Increase in Class H Shares Outstanding		17			1	*
Class L:
Shares Subscribed		3			1	*
Shares Issued on Distributions Reinvested		—	@@		—
Shares Redeemed		(—	@@)		—
Net Increase in Class L Shares Outstanding		3			1	*

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

*  For the period April 27, 2012 through September 30, 2012.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Limited Duration Portfolio

	Class I
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	7.80		$	7.71		$	7.79		$	7.68		$	8.00		$	10.24
Income (Loss) from Investment Operations:
Net Investment Income†		0.06			0.15			0.16			0.18			0.24			0.49
Net Realized and Unrealized Gain (Loss)		(0.00	)‡		0.11			(0.10	)		0.10			(0.12	)		(2.22	)
Total from Investment Operations		0.06			0.26			0.06			0.28			0.12			(1.73	)
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.17	)		(0.14	)		(0.16	)		(0.44	)		(0.51	)
Paid-in-Capital		—			—			—			(0.01	)		—			—
Total Distributions		(0.06	)		(0.17	)		(0.14	)		(0.17	)		(0.44	)		(0.51	)
Redemption Fees		—			—			—			—			0.00	‡		—
Net Asset Value, End of Period	$	7.80		$	7.80		$	7.71		$	7.79		$	7.68		$	8.00
Total Return++		0.83	%#		3.35	%		0.71	%		3.74	%		1.77	%		(17.57	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	131,904		$	145,387		$	167,811		$	208,608		$	262,794		$	568,156
Ratio of Expenses to Average Net Assets (1)		0.72	%*+††		0.63	%+		0.59	%+††		0.55	%+††		0.45	%+		0.43	%+
Ratio of Net Investment Income to Average Net Assets (1)		1.54	%*+††		1.92	%+		2.12	%+††		2.39	%+††		3.16	%+		5.22	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.01	%
Portfolio Turnover Rate		34	%#		51	%		35	%		95	%		110	%		20	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		N/A			N/A			N/A			N/A			N/A			0.43	%+
Net Investment Income to Average Net Assets		N/A			N/A			N/A			N/A			N/A			5.22	%+

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Limited Duration Portfolio

	Class P
	Six Months Ended March 28, 2013R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2012			2011			2010			2009			2008
Net Asset Value, Beginning of Period	$	7.80		$	7.71		$	7.79		$	7.68		$	8.00		$	10.24
Income (Loss) from Investment Operations:
Net Investment Income†		0.05			0.13			0.15			0.17			0.22			0.47
Net Realized and Unrealized Gain (Loss)		0.01			0.11			(0.12	)		0.09			(0.12	)		(2.23	)
Total from Investment Operations		0.06			0.24			0.03			0.26			0.10			(1.76	)
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		(0.15	)		(0.11	)		(0.15	)		(0.42	)		(0.48	)
Paid-in-Capital		—			—			—			(0.00	)‡		—			—
Total Distributions		(0.05	)		(0.15	)		(0.11	)		(0.15	)		(0.42	)		(0.48	)
Redemption Fees		—			—			—			—			0.00	‡		—
Net Asset Value, End of Period	$	7.81		$	7.80		$	7.71		$	7.79		$	7.68		$	8.00
Total Return++		0.70	%#		3.22	%		0.45	%		3.48	%		1.52	%		(17.77	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	234		$	145		$	194		$	52		$	169		$	294
Ratio of Expenses to Average Net Assets		0.97	%*+††		0.88	%+		0.84	%+††		0.80	%+††		0.70	%+		0.68	%+
Ratio of Net Investment Income to Average Net Assets		1.29	%*+††		1.70	%+		1.87	%+††		2.14	%+††		2.87	%+		4.95	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.01	%
Portfolio Turnover Rate		34	%#		51	%		35	%		95	%		110	%		20	%

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Limited Duration Portfolio

	Class H
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R (unaudited)			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	7.80		$	7.76
Income from Investment Operations:
Net Investment Income†		0.05			0.05
Net Realized and Unrealized Gain (Loss)		(0.00	)‡		0.04
Total from Investment Operations		0.05			0.09
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.05	)
Net Asset Value, End of Period	$	7.79		$	7.80
Total Return++		0.71	%#		1.14	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	141		$	10
Ratio of Expenses to Average Net Assets		0.97	%*+††		0.91	%*+
Ratio of Net Investment Income to Average Net Assets		1.29	%*+††		1.42	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%*§
Portfolio Turnover Rate		34	%#		51	%#

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value, which does not reflect sales charges, if applicable, as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Financial Highlights

Limited Duration Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 28, 2013R (unaudited)			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	7.80		$	7.76
Income from Investment Operations:
Net Investment Income†		0.04			0.04
Net Realized and Unrealized Gain (Loss)		(0.00	)‡		0.04
Total from Investment Operations		0.04			0.08
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		(0.04	)
Net Asset Value, End of Period	$	7.79		$	7.80
Total Return++		0.46	%#		1.06	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	34		$	10
Ratio of Expenses to Average Net Assets		1.23	%*+††		1.21	%*+
Ratio of Net Investment Income to Average Net Assets		1.03	%*+††		1.14	%*+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%*§		0.00	%*§
Portfolio Turnover Rate		34	%#		51	%#

R  March 28, 2013 represents the last business day of the Portfolio's semi-annual period.

^  Commencement of Operations.

†  Per share amount is based on average shares outstanding.

‡  Amount is less than $0.005 per share.

++  Calculated based on the net asset value as of the last business day of the period.

#  Not Annualized.

*  Annualized.

+  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

††  Reflects overall Portfolio ratios for investment income and non-class specific expenses.

§  Amount is less than 0.005%.

The accompanying notes are an integral part of the financial statements.
17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust (''MSIFT'' or the ''Fund'') is registered under the Investment Company Act of 1940, as amended (the ''Act''), as an open-end management investment company. The Fund is comprised of seven separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Limited Duration Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers four classes of shares — Class I, Class P, Class H and Class L.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Fund in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

1.  Security Valuation: (1) Bonds and other fixed income securities may be valued according to the broadest and most representative market. In addition, bonds and other fixed income securities may be valued on the basis of prices provided by a pricing service. The prices provided by a pricing service take into account broker-dealer market price quotations for institutional size trading in similar groups of securities, security quality, maturity, coupon and other security characteristics as well as any developments related to the specific securities; (2) futures are valued at the latest price published by the commodities exchange on which they trade; (3) swaps are marked-to-market daily based upon quotations from market makers; (4) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc., (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Board of Trustees (the "Trustees"). Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of

business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value as of the close of each business day; and (6) short-term debt securities having a maturity date of more than sixty days at the time of purchase are valued on a mark-to-market basis until sixty days prior to maturity and thereafter at amortized cost based on their value on the 61st day. Short-term debt securities having a maturity date of sixty days or less at the time of purchase are valued at amortized cost, which approximates fair value.

Under procedures approved by the Trustees, the Adviser has formed a Valuation Committee. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Trustees. Among other things, these procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurements and Disclosures" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below.

•  Level 1 – unadjusted quoted prices in active markets for identical investments

•  Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

•  Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Portfolio's investments as of March 28, 2013.

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgages	$	—		$	3,714		$	—	$	3,714
Agency Fixed Rate Mortgages		—			959			—		959
Asset-Backed Securities		—			16,414			—		16,414
Collateralized Mortgage Obligations — Agency Collateral Series		—			3,737			—		3,737
Commercial Mortgage- Backed Security		—			187			—		187
Corporate Bonds		—			86,200			—		86,200
Mortgages — Other		—			2,468			—		2,468
Sovereign		—			1,700			—		1,700
U.S. Treasury Securities		—			15,333			—		15,333
Total Fixed Income Securities		—			130,712			—		130,712
Short-Term Investments
Investment Company		3,637			—			—		3,637
U.S. Treasury Security		—			65			—		65
Total Short-Term Investments		3,637			65			—		3,702
Futures Contracts		18			—			—		18
Credit Default Swap Agreements		—			3			—		3
Interest Rate Swap Agreements		—			1			—		1
Total Assets		3,655			130,781			—		134,436
Liabilities:
Futures Contracts	$	(29	)	$	—		$	—	$	(29	)
Credit Default Swap Agreements		—			(5	)		—		(5	)
Interest Rate Swap Agreements		—			(109	)		—		(109	)
Total Liabilities		(29	)		(114	)		—		(143	)
Total	$	3,626		$	130,667		$	—	$	134,293

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of March 28, 2013, the Portfolio did not have any investments transfer between investment levels.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

3.  Derivatives: The Portfolio may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based on the value of an underlying asset, interest rate, index or financial instrument. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which they relate, and risks that the transactions may not be liquid. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Portfolio's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and risk for loss. Leverage associated with derivative transactions may cause the Portfolio to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission rules and regulations, or may cause the Portfolio to be more volatile than if the Portfolio had not been leveraged. Although the Adviser seeks to use derivatives to further the Portfolio's investment objectives, there is no assurance that the use of derivatives will achieve this result.

Following is a description of the derivative instruments and techniques that the Portfolio used during the period and their associated risks:

Futures: A futures contract is a standardized agreement between two parties to buy or sell a specific quantity of an underlying instrument at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the

particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures involves the exercise of skill and judgment and even a well conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures can be highly volatile, using futures can lower total return, and the potential loss from futures can exceed the Portfolio's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time.

Swaps: An over-the-counter ("OTC") swap agreement is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indexes, reference rates, currencies or other instruments. A small percentage of swap agreements are cleared through a central clearing house. Most swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Portfolio's obligations or rights under a swap agreement entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each counterparty. In a zero coupon interest rate swap, payment only occurs at maturity, at which time one counterparty pays the total compounded fixed rate over the life of the swap and the other pays the total compounded floating rate that would have been earned had a series of floating rate investments been rolled over through the life of the swap. Most swap agreements are not entered into or traded on exchanges and there is no central clearing or guaranty function for swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Swaps could result in losses if interest rate or foreign currency exchange rates or credit quality changes are not correctly

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments will require the clearing and exchange-trading of many OTC swap agreements. Mandatory exchange-trading and clearing will occur on a phased-in basis.

The Portfolio enters into credit default, interest rate and other forms of swap agreements to manage exposure to credit and interest rate risks.

The Portfolio's use of swaps during the period included those based on the credit of an underlying security and commonly referred to as credit default swaps. Where a Portfolio is the buyer of a credit default swap agreement, it would be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the agreement only in the event of a default by a third party on the debt obligation. If no default occurs, a Portfolio would have paid to the counterparty a periodic stream of payments over the term of the agreement and received no benefit from the agreement. When a Portfolio is the seller of a credit default swap agreement, it receives the stream of payments but is obligated to pay an amount equal to the par (or other agreed upon) value of a referenced debt obligation upon default of the referenced debt obligation.

The current credit rating of each individual issuer is listed in the table following the Portfolio of Investments and serves as an indicator of the current status of the payment/performance risk of the credit derivative. Alternatively, for credit default swaps on an index of credits, the quoted market prices and current values serve as an indicator of the current status of the the payment/performance risk of the credit derivative. Generally, lower credit ratings and increasing market values, in absolute terms, represent a deterioration of the credit and a greater likelihood of an adverse credit event of the issuer.

When the Portfolio has an unrealized loss on a swap agreement, the Portfolio has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. Cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities. Cash collateral has

been offset against open swap agreements under the provisions of FASB ASC 210 "Balance Sheet" ("ASC 210"). Offsetting of Amounts Related to Certain Contracts, an interpretation of ASC 210-20, are included within "Unrealized Appreciation (Depreciation) on Swap Agreements" in the Statement of Assets and Liabilities. For cash collateral received, the Portfolio pays a monthly fee to the counterparty based on the effective rate for Federal Funds. This fee, when paid, is included within realized gain (loss) on swap agreements in the Statement of Operations.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability in the Statement of Assets and Liabilities.

FASB ASC 815, "Derivatives and Hedging: Overall" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Portfolio uses derivative instruments, how these derivative instruments are accounted for and their effects on the Portfolio's financial position and results of operations.

The following table sets forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 28, 2013.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk	$	18	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Credit Risk		3
Swap Agreements	Unrealized Appreciation on Swap Agreements	Interest Rate Risk		1
Total			$	22
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk	$	(29	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(5	)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Interest Rate Risk		(109	)
Total			$	(143	)

(a) This amount represents the cumulative appreciation (depreciation) of futures contracts as reported in the Portfolio of Investments. The Statement of Assets and Liabilities only reflects the current day's net variation margin.

The following tables set forth by primary risk exposure the Portfolio's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

for the six months ended March 28, 2013 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	53
Credit Risk	Swap Agreements		27
Interest Rate Risk	Swap Agreements		(17	)
	Total	$	63
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(18	)
Credit Risk	Swap Agreements		(2	)
Interest Rate Risk	Swap Agreements		(46	)
	Total	$	(66	)

For the six months ended March 28, 2013, the average monthly original value of futures contracts was approximately $54,482,000 and the average monthly notional amount of swap agreements was approximately $36,372,000.

4.  When-Issued/Delayed Delivery Securities: The Portfolio purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the Portfolio on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place up to 120 days after the date of the transaction. When the Portfolio enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral in an amount at least equal in value to the Portfolio's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower than the agreed upon purchase price, in which case there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Portfolio.

5.  Indemnifications: The Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

6.  Dividends and Distributions to Shareholders: Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid monthly. Net realized capital gains, if any, are distributed at least annually.

7.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Portfolio with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.30% of the average daily net assets of the Portfolio. For the period ended March 28, 2013, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.30% of the Portfolio's daily net assets.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted Shareholder Services Plans with respect to Class P and Class H shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plans, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class P and Class H shares.

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.25% and a shareholder service fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class L shares.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class P, Class H and Class L shares.

E. Dividend Disbursing and Transfer Agent: The Fund's dividend disbursing and transfer agent is Morgan Stanley Services Company Inc. ("Morgan Stanley Services"). Pursuant to a Transfer Agency Agreement, the Fund pays Morgan Stanley Services a fee based on the number of classes, accounts and transactions relating to the Portfolios of the Fund.

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Fund in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Fund as required by the Act. Custody fees are payable monthly based on assets held in custody, investment purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

The Fund has entered into an arrangement with its Custodian whereby credits realized on uninvested cash balances may be used to offset a portion of the Portfolio's expenses. If applicable, these custodian credits are shown as "Expense Offset" in the Statement of Operations.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 28, 2013, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $29,355,000 and $41,700,000, respectively. For the six months ended March 28, 2013, purchases and sales of long-term U.S. Government securities were approximately $17,123,000 and $15,282,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 28, 2013, advisory fees paid were reduced by approximately $2,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 28, 2013 is as follows:

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 28, 2013 (000)
$	5,319	$	40,906	$	42,588	$	2	$	3,637

For the six months ended March 28, 2013, the Portfolio had transactions with Citigroup, Inc., and its affiliated broker-dealers which may be deemed affiliates of the Adviser, Administrator and Distributor under Section 17 of the Act.

Value September 30, 2012 (000)		Purchases at Cost (000)		Sales (000)		Realized Gain (000)		Interest Income (000)		Value March 28, 2013 (000)
$	3,196	$	187	$	1,950	$	2	$	29	$	1,427

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

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

H. Federal Income Taxes: It is the Portfolio's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for Federal income taxes is required in the financial statements.

Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is recognized on the accrual basis. Dividends from net investment income, if any, are declared and paid monthly. Net realized capital gains, if any, are distributed at least annually.

The Portfolio may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10 "Income Taxes — Overall" sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in ''Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended September 30, 2012, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal 2012 and 2011 was as follows:

2012 Distributions Paid From: Ordinary Income (000)		2011 Distributions Paid From: Ordinary Income (000)
$	3,366	$	3,270

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations

which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, primarily due to basis adjustments for swap transactions and paydown adjustments, resulted in the following reclassifications among the components of net assets at September 30, 2012:

Accumulated Undistributed Net Investment Income (000)		Accumulated Net Realized Loss (000)			Paid-in Capital (000)
$	59	$	(59	)	$	—

At September 30, 2012, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	509	$	—

At March 28, 2013, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $2,903,000 and the aggregate gross unrealized depreciation is approximately $57,000 resulting in net unrealized appreciation of approximately $2,846,000.

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the "Modernization Act") was signed into law. The Modernization Act modernizes several tax provisions related to Regulated Investment Companies ("RICs") and their shareholders. One key change made by the Modernization Act is that capital losses will generally retain their character as short-term or long-term and may be carried forward indefinitely to offset future gains. These losses are utilized before other capital loss carryforwards that expire. Generally, the Modernization Act is effective for taxable years beginning after December 22, 2010.

At September 30, 2012, the Portfolio had available for Federal income tax purposes unused short term and long term capital losses of approximately $134,000 and $957,000, respectively that do not have an expiration date.

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Notes to Financial Statements (unaudited) (cont'd)

In addition, at September 30, 2012, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	8,019	September 30, 2013
	8,229	September 30, 2014
	7,068	September 30, 2015
	265	September 30, 2016
	200,864	September 30, 2017
	33,504	September 30, 2018

To the extent that capital loss carryforwards are used to offset any future capital gains realized during the carryover period as provided by U.S. Federal income tax regulations, no capital gains tax liability will be incurred by the Portfolio for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Accounting Pronouncement: In January 2013, Accounting Standard Update 2013-01 ("ASU 2013-01"), "Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities," replaced Accounting Standards Update 2011-11 ("ASU 2011-11"), "Disclosures about Offsetting Assets and Liabilities." ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact, if any, on the Portfolio's financial statements.

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

We are required by federal law to provide you with notice of our U.S. privacy policy ("Policy"). This Policy applies to both our current and former clients unless we state otherwise and is intended for individual clients who purchase products or receive services from us for personal, family or household purposes. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders, nor is this Policy applicable to individuals who are either beneficiaries of a trust for which we serve as trustee or participants in an employee benefit plan administered or advised by us. This Policy is, however, applicable to individuals who select us to be a custodian of securities or assets in individual retirement accounts, 401(k) accounts, or accounts subject to the Uniform Gifts to Minors Act.

This notice sets out our business practices to protect your privacy; how we collect and share personal information about you; and how you can limit our sharing or certain uses by others of this information. We may amend this Policy at any time, and will inform you of any changes to our Policy as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information and understand your concerns about your information. We strive to safeguard the information our clients entrust to us. Protecting the confidentiality and security of client information is an important part of how we conduct our business.

This notice describes what personal information we collect about you, how we collect it, when we may share it with others, and how certain others may use it. It discusses the steps you may take to limit our sharing of certain information about you with our affiliated companies, including, but not limited to our affiliated banking businesses, brokerage firms and credit service affiliates. It also discloses how you may limit our affiliates' use of shared information for marketing purposes.

Throughout this Policy, we refer to the nonpublic information that personally identifies you as "personal information." We also use the term "affiliated company" in this notice. An affiliated company is a company in our family of companies and includes companies with the Morgan Stanley name. These affiliated companies are financial institutions such as broker-dealers, banks, investment advisers and credit card issuers. We refer to any company that is not an affiliated company as a nonaffiliated third party. For purposes of Section 5 of this notice, and your ability to limit certain uses of personal information by our affiliates, this notice applies to the use of personal information by our affiliated companies.

1.  WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

We may collect the following types of information about you: (i) information provided by you, including information from applications and other forms we receive from you, (ii) information about your transactions with us or our affiliates, (iii) information about your transactions with nonaffiliated third parties, (iv) information from consumer reporting agencies, (v) information obtained from our websites, and (vi) information obtained from other sources. For example:

•  We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

•  We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources.

•  We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

•  We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2.  WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

We may disclose personal information that we collect about you to our affiliated companies to manage your account(s) effectively, to service and process your transactions, and to let you know about products and services offered by us and affiliated companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from affiliated companies are developed under conditions designed to safeguard your personal information.

b. Information We Disclose to Third Parties.

We may disclose personal information that we collect about you to nonaffiliated third parties to provide marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. We may also disclose all of the information we collect to other nonaffiliated third parties for our everyday business purposes, such as to process transactions, maintain account(s), respond to court orders and legal investigations, report to credit bureaus, offer our own products and services, protect against fraud, for institutional risk control, to perform services on our behalf, and as otherwise required or permitted by law.

When we share personal information about you with a nonaffiliated third party, they are required to limit their use of personal information about you to the particular purpose for which it was shared and they are not allowed to share personal information about you with others except to fulfill that limited purpose or as may be permitted or required by law.

3.  HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We maintain physical, electronic and procedural security measures that comply with applicable law and regulations to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information by employees. Third parties that provide support or marketing services on our behalf may also receive personal information about you, and we require them to adhere to appropriate security standards with respect to such information.

4.  HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

By following the opt-out procedures in Section 6 below, you may limit the extent to which we share with our affiliated companies, personal information that was collected to determine your eligibility for products and services such as your credit reports and other information that you have provided to us or that we may obtain from third parties ("eligibility information"). Eligibility information does not include your identification information or personal information pertaining to our transactions or experiences with you. Please note that, even if you direct us not to share eligibility information with our affiliated companies, we may still share your personal information, including eligibility information, with our affiliated companies under circumstances that are permitted under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit our affiliated companies from marketing their products or services to you based on personal information we disclose to them. This information may include, for example, your income and account history with us. Please note that, even if you choose to limit our affiliated companies from using personal information about you that we may share with them for marketing their products and services to you, our affiliated companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the affiliated party has its own relationship with you.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

U.S. Privacy Policy (unaudited) (cont'd)

6.  HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

If you wish to limit our sharing of eligibility information about you with our affiliated companies, or our affiliated companies' use of personal information for marketing purposes, as described in this notice, you may do so by:

•  Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 5p.m. (EST)

•  Writing to us at the following address:

  Morgan Stanley Services Company Inc.
c/o Privacy Coordinator
201 Plaza Two, 3rd Floor
Jersey City, New Jersey 07311

If you choose to write to us, your request should include: your name, address, telephone number and account number(s) to which the opt-out applies and whether you are opting out with respect to sharing of eligibility information (Section 4 above), or information used for marketing (Section 5 above), or both. Written opt-out requests should not be sent with any other correspondence. In order to process your request, we require that the request be provided by you directly and not through a third party. Once you have informed us about your privacy preferences, your opt-out preference will remain in effect with respect to this Policy (as it may be amended) until you notify us otherwise. If you are a joint account owner, we will accept instructions from any one of you and apply those instructions to the entire account.

Please understand that if you limit our sharing or our affiliated companies' use of personal information, you and any joint account holder(s) may not receive information about our affiliated companies' products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

If you have more than one account or relationship with us, please specify the accounts to which you would like us to apply your privacy choices. If you have accounts or relationships with our affiliates, you may receive multiple privacy policies from them, and will need to separately notify those companies of your privacy choices for those accounts or relationships.

7.  WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

If, at any time in the future, an affiliated company becomes a nonaffiliated third party, further disclosures of personal information made to the former affiliated company will be limited to those described in Section 2(b) above relating to nonaffiliated third parties. If you elected under Section 6 to limit disclosures we make to affiliated companies, or use of personal information by affiliated companies, your election will not apply to use by any former affiliated company of your personal information in their possession once it becomes a nonaffiliated third party.

SPECIAL NOTICE TO RESIDENTS OF VERMONT

The following section supplements our Policy with respect to our individual clients who have a Vermont address and supersedes anything to the contrary in the above Policy with respect to those clients only.

The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with nonaffiliated third parties, or eligibility information with affiliated companies, other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or eligibility information with affiliated companies, unless you provide us with your written consent to share such information.

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

The following section supplements our Policy with respect to our individual clients who have a California address and supersedes anything to the contrary in the above Policy with respect to those clients only.

In response to a California law, if your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us.

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 28, 2013

Trustee and Officer Information (unaudited)

Trustees

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

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

Morgan Stanley Services Company Inc.
P.O. Box 219804
Kansas City, Missouri 64121

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

Arthur Lev
President and Principal Executive Officer

Mary Ann Picciotto
Chief Compliance Officer

Stefanie V. Chang Yu
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its semi-annual and annual reports within 60 days of the end of the fund's second and fourth fiscal quarters by filing the schedule electronically with the Securities and Exchange Commission (SEC). The semi-annual reports are filed on Form N-CSRS and the annual reports are filed on Form N-CSR. Morgan Stanley also delivers the semi-annual and annual reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im. Each Morgan Stanley fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters on Form N-Q. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Morgan Stanley public website. You may, however, obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You may also review and copy them at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling the SEC toll free at 1 (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov) or by writing the Public Reference Room of the SEC, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Fund's Proxy Voting Policy and Procedures and information regarding how the Fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus of the Morgan Stanley Institutional Fund Trust which describes in detail each Investment Portfolio's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Portfolio, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

29

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

© 2013 Morgan Stanley. Morgan Stanley Distribution, Inc.

  IFTLDSAN
656060 EXP [05/31/14]

Item 2.  Code of Ethics.

Not applicable for semiannual reports.

Item 3.  Audit Committee Financial Expert.

Not applicable for semiannual reports.

Item 4. Principal Accountant Fees and Services

Not applicable for semiannual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semiannual reports.

Item 6.

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable for semiannual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to annual reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable to reports filed by closed-end funds.

Item 10. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 11. Controls and Procedures

(a)  The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b)  There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a) Code of Ethics — Not applicable for semiannual reports.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto as part of EX-99.CERT.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Institutional Fund Trust

/s/ Arthur Lev

Arthur Lev

Principal Executive Officer

May 21, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ Arthur Lev

Arthur Lev

Principal Executive Officer

May 21, 2013

/s/ Francis Smith

Francis Smith

Principal Financial Officer

May 21, 2013

3