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)
John H. Gernon 522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant’s telephone number, including area code:				212-296-0289
Date of fiscal year end:	September 30, 2014
Date of reporting period:		March 31, 2014

Item 1 - Report to Shareholders

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Strategist Portfolio

Semi-Annual Report

March 31, 2014

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	29
Statement of Operations	31
Statements of Changes in Net Assets	32
Financial Highlights	34
Notes to Financial Statements	37
U.S. Privacy Policy	49
Trustee and Officer Information	52

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 statement of additional information (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.

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 this Portfolio. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 (the "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,

John H. Gernon
President and Principal Executive Officer

April 2014

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014 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.

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 10/1/13		Actual Ending Account Value 3/31/14		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	$	1,073.10	$	1,021.29	$	3.77	$	3.68		0.73	%
Global Strategist Portfolio Class A		1,000.00		1,070.80		1,019.65		5.47		5.34		1.06
Global Strategist Portfolio Class L		1,000.00		1,068.80		1,017.05		8.15		7.95		1.58

*  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 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (30.0%)
Agency Adjustable Rate Mortgage (0.0%)
United States (0.0%)
Federal National Mortgage Association,
Conventional Pool
2.33%, 5/1/35	$	40	$	43
Agency Fixed Rate Mortgages (2.3%)
United States (2.3%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
6.00%, 11/1/37		211		235
6.50%, 5/1/32 - 9/1/32		251		281
7.50%, 5/1/35		11		12
Federal National Mortgage Association,
April TBA:
4.00%, 4/1/44 (a)		140		146
4.50%, 4/1/44 (a)		1,390		1,483
5.00%, 4/1/44 (a)		185		202
Conventional Pools:
4.00%, 1/1/42		1,661		1,730
5.00%, 1/1/41 - 3/1/41		1,883		2,066
5.50%, 2/1/38 - 8/1/38		530		591
6.00%, 1/1/38		25		27
6.50%, 12/1/29		37		43
7.00%, 12/1/17 - 2/1/31		524		587
7.50%, 8/1/37		21		25
May TBA:
4.00%, 5/1/44 (a)		235		243
Government National Mortgage Association,
April TBA:
3.50%, 4/20/44 (a)		934		953
4.50%, 4/20/44 (a)		340		367
Various Pools:
4.00%, 8/20/41 - 11/20/42		1,084		1,141
4.50%, 8/15/39		214		231
5.50%, 8/15/39		214		239
				10,602
Asset-Backed Securities (0.2%)
United States (0.2%)
CVS Pass-Through Trust,
6.04%, 12/10/28		376		424
Ford Credit Floorplan Master Owner Trust,
1.86%, 2/15/17 (b)(c)		525		532
				956
Collateralized Mortgage Obligations — Agency Collateral Series (0.5%)
United States (0.5%)
Federal Home Loan Mortgage Corporation,
2.36%, 7/25/22		792		755
2.40%, 6/25/22		1,625		1,549
2.79%, 1/25/22		75		75
2.97%, 10/25/21		90		91

	Face Amount (000)		Value (000)
IO
0.66%, 1/25/21 (c)	$	676	$	22
IO REMIC
5.90%, 4/15/39 (c)		181		32
Federal National Mortgage Association,
IO REMIC
5.00%, 8/25/37		25		—	@
6.45%, 9/25/38 (c)		151		25
				2,549
Commercial Mortgage-Backed Securities (0.8%)
United States (0.8%)
BAMLL Commercial Mortgage Securities Trust,
2.96%, 12/10/30 (b)		175		169
COMM Mortgage Trust,
3.28%, 1/10/46		305		297
Commercial Mortgage Pass-Through Certificates,
2.82%, 10/15/45		376		361
Extended Stay America Trust,
2.96%, 12/5/31 (b)		325		323
GS Mortgage Securities Corp. II,
1.00%, 11/8/29 (b)(c)		395		397
JP Morgan Chase Commercial Mortgage Securities Trust,
4.17%, 8/15/46		770		819
4.39%, 7/15/46 (b)		100		108
Queens Center Mortgage Trust,
3.28%, 1/11/37 (b)		520		495
UBS-Barclays Commercial Mortgage Trust,
3.53%, 5/10/63		255		257
VNO Mortgage Trust,
3.00%, 11/15/30 (b)		361		348
Wells Fargo Commercial Mortgage Trust,
2.92%, 10/15/45		449		434
				4,008
Corporate Bonds (7.5%)
Australia (0.4%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	400		639
BHP Billiton Finance USA Ltd.,
3.85%, 9/30/23	$	170		174
Macquarie Bank Ltd.,
6.63%, 4/7/21 (b)		270		306
Macquarie Group Ltd.,
6.00%, 1/14/20 (b)		260		288
Origin Energy Finance Ltd.,
3.50%, 10/9/18 (b)		200		204
QBE Insurance Group Ltd.,
2.40%, 5/1/18 (b)		200		196
Wesfarmers Ltd.,
2.98%, 5/18/16 (b)		245		255
				2,062

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Belgium (0.1%)
Anheuser-Busch InBev Finance, Inc.,
3.70%, 2/1/24	$	300	$	304
Brazil (0.1%)
Petrobras International Finance Co.,
5.75%, 1/20/20		330		346
Vale Overseas Ltd.,
6.88%, 11/10/39		50		54
				400
Canada (0.2%)
Barrick Gold Corp.,
4.10%, 5/1/23		100		95
Brookfield Asset Management, Inc.,
5.80%, 4/25/17		295		324
Goldcorp, Inc.,
3.70%, 3/15/23		270		255
				674
Chile (0.0%)
ENTEL Chile SA,
4.88%, 10/30/24 (b)		200		202
China (0.1%)
Baidu, Inc.,
3.25%, 8/6/18		225		231
Sinopec Group Overseas Development 2012 Ltd.,
2.75%, 5/17/17 (b)		217		223
Want Want China Finance Ltd.,
1.88%, 5/14/18 (b)		200		193
				647
Colombia (0.1%)
Ecopetrol SA,
5.88%, 9/18/23		270		296
France (0.6%)
Banque Federative du Credit Mutuel SA,
2.00%, 9/19/19	EUR	400		559
BNP Paribas SA,
5.00%, 1/15/21	$	95		106
BPCE SA,
1.63%, 2/10/17		250		250
Credit Agricole SA,
3.90%, 4/19/21	EUR	300		450
5.88%, 6/11/19		400		655
Societe Generale SA,
5.00%, 1/17/24 (b)	$	250		250
Veolia Environnement SA,
6.75%, 4/24/19	EUR	400		689
				2,959
Ireland (0.1%)
CRH America, Inc.,
6.00%, 9/30/16	$	415		462

	Face Amount (000)		Value (000)
Israel (0.1%)
Teva Pharmaceutical Finance IV BV,
3.65%, 11/10/21	$	420	$	421
Italy (0.4%)
Enel Finance International N.V.,
5.13%, 10/7/19 (b)		650		713
Intesa Sanpaolo SpA,
4.13%, 4/14/20	EUR	400		613
Telecom Italia Finance SA,
7.75%, 1/24/33		80		134
UniCredit SpA,
4.25%, 7/29/16		350		519
				1,979
Korea, Republic of (0.0%)
SK Telecom Co., Ltd.,
2.13%, 5/1/18 (b)	$	200		198
Netherlands (0.4%)
ABN Amro Bank N.V.,
2.50%, 10/30/18 (b)		300		300
3.63%, 10/6/17	EUR	200		299
Cooperatieve Centrale Raiffeisen- Boerenleenbank BA,
3.95%, 11/9/22	$	250		249
Series G
3.75%, 11/9/20	EUR	300		444
ING Bank N.V.,
5.25%, 6/5/18		300		487
5.80%, 9/25/23 (b)	$	240		256
				2,035
Spain (0.3%)
Banco Bilbao Vizcaya Argentaria SA,
3.63%, 1/18/17	EUR	350		517
Iberdrola Finance Ireland Ltd.,
5.00%, 9/11/19 (b)	$	200		220
Telefonica Emisiones SAU,
4.71%, 1/20/20	EUR	500		784
				1,521
Sweden (0.3%)
Nordea Bank AB,
4.00%, 3/29/21		480		729
Skandinaviska Enskilda Banken AB,
1.75%, 3/19/18 (b)	$	200		198
Swedbank AB,
1.75%, 3/12/18 (b)		270		267
				1,194
Switzerland (0.2%)
Credit Suisse,
6.00%, 2/15/18		90		103
Novartis Capital Corp.,
3.40%, 5/6/24		370		370

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Switzerland (cont'd)
UBS AG,
7.50%, 7/15/25	$	380	$	475
				948
Thailand (0.1%)
PTT Exploration & Production PCL,
3.71%, 9/16/18 (b)		240		247
PTT PCL,
3.38%, 10/25/22 (b)		230		215
				462
United Kingdom (1.4%)
Abbey National Treasury Services PLC,
3.63%, 10/14/17	EUR	725		1,076
4.00%, 3/13/24	$	120		121
Bank of Scotland PLC,
4.63%, 6/8/17	EUR	350		543
Barclays Bank PLC,
6.00%, 1/23/18 - 1/14/21		275		436
BAT International Finance PLC,
9.50%, 11/15/18 (b)	$	155		202
Diageo Capital PLC,
1.50%, 5/11/17		215		217
Experian Finance PLC,
2.38%, 6/15/17 (b)		400		407
GlaxoSmithKline Capital PLC,
2.85%, 5/8/22		252		246
Heathrow Funding Ltd.,
4.60%, 2/15/18	EUR	300		464
HSBC Holdings PLC,
4.00%, 3/30/22	$	45		47
4.25%, 3/14/24		200		201
6.00%, 6/10/19	EUR	450		733
Imperial Tobacco Finance PLC,
8.38%, 2/17/16		400		628
Lloyds Bank PLC,
6.50%, 3/24/20		250		414
Nationwide Building Society,
6.25%, 2/25/20 (b)	$	300		350
Royal Bank of Scotland PLC (The),
5.50%, 3/23/20	EUR	150		244
Standard Chartered PLC,
3.85%, 4/27/15 (b)	$	260		269
				6,598
United States (2.6%)
Agilent Technologies, Inc.,
5.50%, 9/14/15		155		165
Altria Group, Inc.,
2.85%, 8/9/22		25		24
5.38%, 1/31/44		155		163
Amgen, Inc.,
5.15%, 11/15/41		99		102

	Face Amount (000)		Value (000)
Apple, Inc.,
2.40%, 5/3/23	$	225	$	209
AT&T, Inc.,
6.30%, 1/15/38		150		171
Bank of America Corp.,
4.00%, 4/1/24 (d)		250		250
5.00%, 1/21/44		250		256
Boston Properties LP,
3.85%, 2/1/23		25		25
Capital One Bank, USA NA,
3.38%, 2/15/23		546		532
Citigroup, Inc.,
3.88%, 10/25/23		150		149
6.13%, 5/15/18		107		123
6.68%, 9/13/43		20		24
8.50%, 5/22/19		214		273
CNA Financial Corp.,
5.75%, 8/15/21		45		52
Coca-Cola Co. (The),
3.20%, 11/1/23		250		246
Comcast Corp.,
4.65%, 7/15/42		150		150
DirecTV Holdings LLC/DirecTV Financing Co., Inc.,
3.80%, 3/15/22		75		74
Discover Bank,
2.00%, 2/21/18		345		344
Enterprise Products Operating LLC,
3.35%, 3/15/23		275		269
Five Corners Funding Trust,
4.42%, 11/15/23 (b)		350		359
Ford Motor Credit Co., LLC,
4.21%, 4/15/16		630		668
Freeport-McMoRan Copper & Gold, Inc.,
3.88%, 3/15/23		70		67
General Electric Capital Corp.,
5.30%, 2/11/21		275		310
Genworth Holdings, Inc.,
7.20%, 2/15/21		305		366
Gilead Sciences, Inc.,
4.80%, 4/1/44		150		155
Glencore Funding LLC,
4.13%, 5/30/23 (b)		200		191
Goldman Sachs Group, Inc. (The),
3.63%, 1/22/23		675		665
Hartford Financial Services Group, Inc.,
5.50%, 3/30/20		25		28
Hewlett-Packard Co.,
3.75%, 12/1/20		250		254
4.65%, 12/9/21		35		37
ING US, Inc.,
5.50%, 7/15/22		175		197

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
International Business Machines Corp.,
1.95%, 2/12/19	$	300	$	298
JPMorgan Chase & Co.,
3.20%, 1/25/23		615		598
3.88%, 2/1/24		200		202
Kinder Morgan Energy Partners LP,
2.65%, 2/1/19		225		225
L-3 Communications Corp.,
4.75%, 7/15/20		255		268
Lowe's Cos., Inc.,
5.00%, 9/15/43		100		107
Marathon Petroleum Corp.,
5.13%, 3/1/21		275		306
Medtronic, Inc.,
3.63%, 3/15/24		250		252
Merck & Co., Inc.,
2.80%, 5/18/23		250		238
Monongahela Power Co.,
5.40%, 12/15/43 (b)		100		110
Nationwide Financial Services, Inc.,
5.38%, 3/25/21 (b)		25		28
NBC Universal Media LLC,
4.38%, 4/1/21		175		190
Omnicom Group, Inc.,
3.63%, 5/1/22		60		60
Pacific LifeCorp,
6.00%, 2/10/20 (b)		25		29
PepsiCo, Inc.,
3.60%, 3/1/24		250		251
Plains All American Pipeline LP/ PAA Finance Corp.,
6.70%, 5/15/36		190		235
8.75%, 5/1/19		220		282
Prudential Financial, Inc.,
6.63%, 12/1/37		150		188
Santander Holdings USA, Inc.,
3.45%, 8/27/18		90		93
UnitedHealth Group, Inc.,
4.25%, 3/15/43		150		144
Verizon Communications, Inc.,
3.85%, 11/1/42		50		42
6.55%, 9/15/43		300		366
Viacom, Inc.,
5.85%, 9/1/43		225		248
Wells Fargo & Co.,
3.45%, 2/13/23		395		384
				12,042
				35,404
Mortgages — Other (0.3%)
United Kingdom (0.2%)
Holmes Master Issuer PLC,
2.07%, 10/15/54 (b)(c)	GBP	616		1,061

	Face Amount (000)		Value (000)
United States (0.1%)
Banc of America Alternative Loan Trust,
5.86%, 10/25/36	$	54	$	40
5.91%, 10/25/36 (c)		103		77
6.00%, 4/25/36		41		42
Chaseflex Trust,
6.00%, 2/25/37		50		44
First Horizon Alternative Mortgage Securities Trust,
6.25%, 8/25/36		29		25
GSR Mortgage Loan Trust,
5.75%, 1/25/37		51		49
Lehman Mortgage Trust,
5.50%, 11/25/35		19		18
6.50%, 9/25/37		58		51
RALI Trust,
0.65%, 3/25/35 (c)		52		39
				385
				1,446
Sovereign (15.7%)
Australia (0.5%)
Australia Government Bond,
5.25%, 3/15/19	AUD	575		577
5.75%, 5/15/21		1,800		1,875
				2,452
Bermuda (0.1%)
Bermuda Government International Bond,
4.85%, 2/6/24 (b)	$	390		398
Canada (1.0%)
Canadian Government Bond,
3.25%, 6/1/21	CAD	5,000		4,884
Germany (0.6%)
Bundesrepublik Deutschland,
4.25%, 7/4/39	EUR	1,150		2,137
4.75%, 7/4/34		450		860
				2,997
Greece (1.2%)
Hellenic Republic Government Bond,
2.00%, 2/24/23 - 2/24/42 (e)		5,364		5,374
Hungary (0.2%)
Hungary Government International Bond,
5.38%, 3/25/24	$	130		130
5.75%, 11/22/23		800		830
				960
Indonesia (0.1%)
Indonesia Government International Bond,
5.88%, 1/15/24 (b)		600		646
Ireland (0.4%)
Ireland Government Bond,
3.90%, 3/20/23	EUR	1,225		1,841

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Italy (1.7%)
Italy Buoni Poliennali Del Tesoro,
4.00%, 9/1/20	$	375	$	566
4.50%, 2/1/18 - 3/1/19		2,375		3,637
5.00%, 3/1/22 - 9/1/40		870		1,361
5.50%, 11/1/22		1,350		2,200
				7,764
Japan (1.3%)
Japan Finance Organization for Municipalities,
1.90%, 6/22/18	JPY	70,000		728
Japan Government Ten Year Bond,
1.10%, 6/20/21		35,000		357
1.90%, 6/20/16		105,000		1,058
Japan Government Thirty Year Bond,
1.70%, 6/20/33		340,000		3,433
2.00%, 9/20/40		57,000		591
				6,167
Kazakhstan (0.2%)
KazMunayGas National Co., JSC,
6.38%, 4/9/21	$	1,000		1,095
Korea, Republic of (0.2%)
Korea Development Bank (The),
3.88%, 5/4/17		400		429
Korea Finance Corp.,
4.63%, 11/16/21		630		688
				1,117
Mexico (0.6%)
Mexican Bonos,
7.50%, 6/3/27	MXN	4,100		342
10.00%, 12/5/24		13,500		1,341
Petroleos Mexicanos,
4.88%, 1/24/22	$	1,070		1,121
				2,804
Netherlands (0.2%)
Bank Nederlandse Gemeenten,
0.88%, 2/21/17 (b)		882		878
Norway (0.1%)
Norway Government Bond,
3.75%, 5/25/21	NOK	3,500		630
Poland (0.6%)
Poland Government Bond,
5.75%, 10/25/21	PLN	5,500		2,017
Poland Government International Bond,
5.00%, 3/23/22	$	670		733
				2,750
Portugal (3.1%)
Portugal Obrigacoes do Tesouro OT,
3.35%, 10/15/15 (b)	EUR	729		1,045
4.20%, 10/15/16 (b)		2,305		3,388
5.65%, 2/15/24 (b)		4,571		7,114
6.40%, 2/15/16 (b)		1,865		2,812
				14,359

	Face Amount (000)		Value (000)
Qatar (0.2%)
Qatar Government International Bond,
4.00%, 1/20/15 (b)	$	900	$	925
South Africa (0.1%)
South Africa Government Bond,
7.25%, 1/15/20	ZAR	4,400		403
Spain (1.1%)
Spain Government Bond,
4.20%, 1/31/37	EUR	330		467
4.40%, 10/31/23 (b)		2,250		3,415
5.85%, 1/31/22		680		1,136
				5,018
Supernational (0.5%)
European Investment Bank,
2.15%, 1/18/27	JPY	157,000		1,729
European Union,
2.75%, 4/4/22	EUR	300		450
				2,179
Sweden (0.9%)
Sweden Government Bond,
1.50%, 11/13/23	SEK	23,700		3,465
4.25%, 3/12/19		4,000		701
				4,166
United Kingdom (0.8%)
United Kingdom Gilt,
3.75%, 9/7/21	GBP	400		729
4.25%, 6/7/32 - 9/7/39		1,700		3,205
				3,934
				73,741
U.S. Treasury Securities (2.7%)
United States (2.7%)
U.S. Treasury Bond,
3.50%, 2/15/39	$	4,300		4,315
U.S. Treasury Notes,
0.88%, 1/31/17 - 2/28/17		6,380		6,381
1.50%, 6/30/16		1,780		1,818
				12,514
Total Fixed Income Securities (Cost $135,172)				141,263
	Shares
Common Stocks (54.8%)
Australia (1.8%)
AGL Energy Ltd.		4,451		63
Alumina Ltd. (f)		28,733		32
Amcor Ltd.		11,036		106
AMP Ltd.		31,080		144
Arrium Ltd.		14,100		18
Asciano Ltd.		7,805		38
ASX Ltd.		1,539		52
Australia & New Zealand Banking Group Ltd.		27,202		836
BHP Billiton Ltd.		28,547		966

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Australia (cont'd)
BlueScope Steel Ltd. (f)		3,657	$	21
Brambles Ltd.		13,059		112
Coca-Cola Amatil Ltd.		4,624		47
Cochlear Ltd.		499		26
Commonwealth Bank of Australia		12,195		878
Computershare Ltd.		4,195		47
Crown Resorts Ltd.		5,745		89
CSL Ltd.		4,783		309
Dexus Property Group REIT		42,125		41
DuluxGroup Ltd.		5,316		28
Echo Entertainment Group Ltd.		7,295		17
Fairfax Media Ltd.		32,187		27
Fortescue Metals Group Ltd.		10,837		53
Goodman Group REIT		10,629		47
GPT Group REIT		17,370		59
Incitec Pivot Ltd.		13,741		38
Insurance Australia Group Ltd.		19,798		102
Leighton Holdings Ltd.		1,366		27
Lend Lease Group REIT		5,862		64
Macquarie Group Ltd.		2,700		146
Mirvac Group REIT		25,584		40
National Australia Bank Ltd.		22,829		752
Newcrest Mining Ltd. (f)		4,209		39
Orica Ltd.		3,553		72
Origin Energy Ltd.		9,394		125
Orora Ltd.		11,036		14
QBE Insurance Group Ltd.		13,356		159
Recall Holdings Ltd. (f)		2,611		11
Rio Tinto Ltd.		3,744		221
Santos Ltd.		8,429		106
Shopping Centres Australasia Property Group REIT		2,263		3
Sonic Healthcare Ltd.		3,160		51
Stockland REIT		23,429		82
Suncorp Group Ltd.		11,119		133
Sydney Airport		2,861		11
TABCORP Holdings Ltd.		7,097		22
Telstra Corp., Ltd.		41,748		197
Toll Holdings Ltd.		6,015		29
Transurban Group		12,301		83
Treasury Wine Estates Ltd.		7,395		24
Wesfarmers Ltd.		10,200		390
Westfield Group REIT		18,583		177
Westfield Retail Trust REIT		19,480		54
Westpac Banking Corp.		23,864		765
Woodside Petroleum Ltd.		5,210		189
Woolworths Ltd.		10,835		359
WorleyParsons Ltd.		1,584		22
				8,563
Austria (0.1%)
Erste Group Bank AG		4,146		142
Immofinanz AG (f)		3,664		17

	Shares		Value (000)
Raiffeisen Bank International AG		786	$	26
Voestalpine AG		1,329		59
				244
Belgium (0.4%)
Ageas		3,005		134
Anheuser-Busch InBev N.V.		8,754		920
Colruyt SA		1,096		60
Delhaize Group SA		3,508		257
Groupe Bruxelles Lambert SA		1,457		146
KBC Groep N.V.		6,712		414
Umicore SA		1,567		80
Viohalco SA (f)		1,985		13
				2,024
Bermuda (0.0%)
Brookfield Property Partners LP		301		5
Canada (2.2%)
Agnico-Eagle Mines Ltd.		1,600		48
Agrium, Inc.		1,500		146
Bank of Montreal		5,100		341
Bank of Nova Scotia		8,800		510
Barrick Gold Corp.		9,400		167
BCE, Inc.		5,300		228
Blackberry Ltd. (f)		4,200		34
Bombardier, Inc.		12,800		48
Brookfield Asset Management, Inc., Class A		5,500		224
Brookfield Office Properties, Inc.		3,800		73
Cameco Corp.		4,100		94
Canadian Imperial Bank of Commerce		3,700		319
Canadian National Railway Co.		8,600		483
Canadian Natural Resources Ltd.		10,300		395
Canadian Oil Sands Ltd.		2,700		57
Canadian Pacific Railway Ltd.		1,600		240
Cenovus Energy, Inc.		7,100		205
Crescent Point Energy Corp.		2,100		77
Eldorado Gold Corp.		5,400		30
Enbridge, Inc.		8,200		372
Encana Corp.		7,600		162
Fairfax Financial Holdings Ltd.		300		130
First Quantum Minerals Ltd.		5,100		94
Fortis, Inc.		1,300		37
Goldcorp, Inc.		7,100		173
Great-West Lifeco, Inc.		4,100		113
Husky Energy, Inc.		2,600		78
IGM Financial, Inc.		1,800		85
Imperial Oil Ltd.		2,600		121
Intact Financial Corp.		1,500		93
Kinross Gold Corp.		10,100		42
Lightstream Resources Ltd.		1,136		6
Magna International, Inc.		2,600		250
Manulife Financial Corp.		18,100		349
National Bank of Canada		3,000		120
Pembina Pipeline Corp.		400		15

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Canada (cont'd)
Penn West Petroleum Ltd.		3,700	$	31
Petrobank Energy & Resources Ltd. (f)		1,300		1
Potash Corp. of Saskatchewan, Inc.		8,200		297
Power Corp. of Canada		4,100		112
Power Financial Corp.		3,400		105
Rogers Communications, Inc., Class B		3,800		158
Royal Bank of Canada		12,300		811
Shaw Communications, Inc., Class B		3,700		88
Shoppers Drug Mart Corp.		2,600		143
Silver Wheaton Corp.		3,500		79
SNC-Lavalin Group, Inc.		1,800		79
Sun Life Financial, Inc.		5,900		204
Suncor Energy, Inc.		14,100		493
Talisman Energy, Inc.		10,200		102
Teck Resources Ltd., Class B		4,700		101
Thomson Reuters Corp.		3,700		127
Tim Hortons, Inc.		3,100		171
Toronto-Dominion Bank (The)		16,200		760
TransAlta Corp.		2,300		27
TransCanada Corp.		6,300		286
Valeant Pharmaceuticals International, Inc. (f)		300		40
Yamana Gold, Inc.		7,200		63
				10,237
Chile (0.0%)
Antofagasta PLC		2,716		38
Denmark (0.4%)
AP Moeller - Maersk A/S		6		69
AP Moeller - Maersk A/S Series B		11		132
Carlsberg A/S Series B		371		37
Coloplast A/S		120		10
Danske Bank A/S		6,044		168
DSV A/S		3,452		112
Novo Nordisk A/S		19,475		888
Novozymes A/S Series B		2,771		122
TDC A/S		537		5
Vestas Wind Systems A/S (f)		3,486		141
				1,684
Finland (0.2%)
Fortum Oyj		6,094		138
Kesko Oyj, Class B		161		7
Kone Oyj, Class B		5,074		213
Nokia Oyj (f)		34,796		256
Nokian Renkaat Oyj		1,401		57
Sampo, Class A		3,582		186
UPM-Kymmene Oyj		11,663		200
				1,057
France (3.4%)
Accor SA		1,422		73
Aeroports de Paris (ADP)		480		60
Air Liquide SA		2,791		379
Alcatel-Lucent (f)		39,117		155

	Shares		Value (000)
Alstom SA		4,118	$	113
AXA SA		16,884		440
BNP Paribas SA		25,966		2,007
Bouygues SA		2,699		113
Bureau Veritas SA		2,324		71
Cap Gemini SA		1,918		145
Carrefour SA		7,019		272
Casino Guichard Perrachon SA		141		17
CGG SA (f)		2,024		33
Christian Dior SA		710		137
Cie de St-Gobain		2,371		144
Cie Generale des Etablissements Michelin Series B		1,855		232
Credit Agricole SA (f)		24,158		382
Danone SA		8,122		574
Edenred		1,823		57
Electricite de France SA		3,256		129
Essilor International SA		1,528		154
Eutelsat Communications SA		799		27
GDF Suez		12,237		335
Groupe Eurotunnel SA		7,563		97
ICADE REIT		86		9
JCDecaux SA		651		29
Kering		1,357		277
L'Oreal SA		3,007		496
Lafarge SA		4,474		351
LVMH Moet Hennessy Louis Vuitton SA		2,297		418
Natixis		14,909		110
Orange SA		19,419		287
Pernod-Ricard SA		2,385		278
Peugeot SA (f)		96,613		1,824
Publicis Groupe SA		1,047		95
Remy Cointreau SA		63		5
Renault SA		1,898		185
Sanofi		11,589		1,211
SES SA		2,416		90
Societe Generale SA		18,210		1,124
Societe Television Francaise 1		1,176		19
Sodexo		1,223		128
Suez Environnement Co.		4,193		85
Technip SA		933		96
Thales SA		1,262		84
Total SA		20,957		1,376
Unibail-Rodamco SE REIT		1,616		420
Vallourec SA		2,417		131
Veolia Environnement SA		5,613		111
Vinci SA		4,786		357
Vivendi SA		16,236		453
				16,195
Germany (2.2%)
Adidas AG		1,738		188
Allianz SE (Registered)		4,059		686
Axel Springer SE		168		11

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Germany (cont'd)
BASF SE		10,277	$	1,142
Bayer AG (Registered)		6,754		913
Bayerische Motoren Werke AG		2,799		353
Beiersdorf AG		1,103		108
Commerzbank AG (f)		19,418		357
Continental AG		533		128
Daimler AG (Registered)		6,189		585
Deutsche Bank AG (Registered)		9,205		412
Deutsche Boerse AG		1,204		96
Deutsche Lufthansa AG (Registered) (f)		3,253		85
Deutsche Post AG (Registered)		5,009		186
Deutsche Telekom AG (Registered)		25,997		420
E.ON SE		15,975		312
Esprit Holdings Ltd. (g)		12,482		21
Fraport AG Frankfurt Airport Services Worldwide		268		20
Fresenius Medical Care AG & Co., KGaA		1,557		109
Fresenius SE & Co., KGaA		1,047		164
Henkel AG & Co., KGaA		1,748		176
Henkel AG & Co., KGaA (Preference)		2,044		220
Infineon Technologies AG		10,693		128
K&S AG (Registered)		1,306		43
Lanxess AG		827		62
Linde AG		1,359		272
Merck KGaA		524		88
Metro AG		1,378		56
Muenchener Rueckversicherungs AG (Registered)		1,719		376
Osram Licht AG (f)		765		50
Porsche Automobil Holding SE (Preference)		779		80
ProSiebenSat.1 Media AG (Registered)		535		24
QIAGEN N.V. (f)		2,514		53
RWE AG		3,402		138
SAP AG		9,219		746
Siemens AG (Registered)		7,650		1,029
Suedzucker AG		616		18
ThyssenKrupp AG (f)		4,900		132
TUI AG		1,503		25
Volkswagen AG		290		73
Volkswagen AG (Preference)		1,450		376
				10,461
Greece (0.2%)
Aegean Airlines SA (f)		110		1
Alpha Bank AE (f)		33,199		33
Athens Water Supply & Sewage Co., SA (The)		260		3
Diagnostic & Therapeutic Center of Athens Hygeia SA (f)		1,296		1
Ellaktor SA (f)		2,471		14
Elval - Hellenic Aluminium Industry SA (f)		223		1
Folli Follie SA (f)		843		31
Fourlis Holdings SA (f)		518		4
Frigoglass SA (f)		397		3
GEK Terna Holding Real Estate Construction SA (f)		2,998		17

	Shares		Value (000)
Hellenic Exchanges - Athens Stock Exchange SA Holding		1,988	$	25
Hellenic Petroleum SA		830		8
Hellenic Telecommunications Organization SA (f)		6,619		109
Intracom Holdings SA (Registered) (f)		2,952		3
Intralot SA-Integrated Lottery Systems & Services		5,186		16
JUMBO SA (f)		992		18
Marfin Investment Group Holdings SA (f)		14,047		10
Metka SA		686		13
MLS Multimedia SA (f)		248		1
Motor Oil Hellas Corinth Refineries SA		1,078		14
Mytilineos Holdings SA (f)		1,815		17
National Bank of Greece SA (f)		10,211		55
OPAP SA		5,669		91
Piraeus Bank SA (f)		25,204		69
Piraeus Port Authority		135		4
Public Power Corp. SA		3,618		60
Sidenor Steel Products Manufacturing Co., SA (f)		968		3
Terna Energy SA (f)		980		6
Thessaloniki Port Authority SA		44		2
Titan Cement Co., SA (f)		1,502		53
				685
Hong Kong (0.6%)
AIA Group Ltd.		67,200		319
Bank of East Asia Ltd.		16,803		66
BOC Hong Kong Holdings Ltd.		36,500		104
Cheung Kong Holdings Ltd.		14,000		233
CLP Holdings Ltd.		19,000		144
Hang Lung Group Ltd.		8,000		40
Hang Lung Properties Ltd.		22,000		63
Hang Seng Bank Ltd.		11,500		183
Henderson Land Development Co., Ltd.		12,912		76
Hong Kong & China Gas Co., Ltd.		47,916		105
Hong Kong Exchanges and Clearing Ltd.		10,587		161
Hutchison Whampoa Ltd.		21,000		279
Kerry Logistics Network Ltd. (f)		3,500		5
Kerry Properties Ltd.		7,000		23
Link REIT (The)		21,033		103
MTR Corp., Ltd.		15,242		57
New World Development Co., Ltd.		29,383		30
Power Assets Holdings Ltd.		14,500		126
Sands China Ltd.		28,400		213
Sino Land Co., Ltd.		22,193		33
Sun Hung Kai Properties Ltd.		14,177		174
Swire Pacific Ltd., Class A		6,500		76
Swire Properties Ltd.		4,550		13
Wharf Holdings Ltd.		13,200		84
Wheelock & Co., Ltd.		10,000		39
				2,749

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Ireland (0.0%)
Bank of Ireland (f)		339,240	$	145
Kerry Group PLC, Class A		374		29
				174
Italy (1.7%)
Assicurazioni Generali SpA		11,606		259
Atlantia SpA		3,202		82
Banca Monte dei Paschi di Siena SpA (f)		102,883		38
Banco Popolare SC (f)		1,051		23
Enel Green Power SpA		11,984		34
Enel SpA		57,892		328
Eni SpA		22,322		561
Fiat SpA (f)		9,996		116
Finmeccanica SpA (f)		1,205		12
Intesa Sanpaolo SpA		896,366		3,044
Luxottica Group SpA		1,123		65
Prysmian SpA		1,210		30
Saipem SpA		2,154		53
Snam SpA		20,778		122
Telecom Italia SpA		155,330		167
Terna Rete Elettrica Nazionale SpA		9,469		51
UniCredit SpA		331,460		3,034
Unione di Banche Italiane SCPA		18,973		179
				8,198
Japan (4.7%)
Advantest Corp.		1,600		17
Aeon Co., Ltd.		10,800		122
Aisin Seiki Co., Ltd.		2,800		101
Ajinomoto Co., Inc.		13,000		186
Asahi Glass Co., Ltd.		12,000		69
Asahi Group Holdings Ltd.		5,300		149
Asahi Kasei Corp.		19,000		129
Astellas Pharma, Inc.		19,000		225
Bank of Yokohama Ltd. (The)		15,000		75
Bridgestone Corp.		6,600		234
Calbee, Inc.		300		7
Canon, Inc.		10,400		322
Central Japan Railway Co.		1,700		199
Chiba Bank Ltd. (The)		10,000		62
Chubu Electric Power Co., Inc. (f)		5,800		68
Chugai Pharmaceutical Co., Ltd.		3,400		87
Chugoku Electric Power Co., Inc. (The)		2,600		36
Coca-Cola West Co., Ltd.		300		5
Dai Nippon Printing Co., Ltd.		8,000		77
Dai-ichi Life Insurance Co., Ltd. (The)		1,000		15
Daiichi Sankyo Co., Ltd.		6,800		114
Daikin Industries Ltd.		2,800		157
Daito Trust Construction Co., Ltd.		1,000		92
Daiwa House Industry Co., Ltd.		8,000		135
Daiwa Securities Group, Inc.		21,000		182
Denso Corp.		6,100		292
Dentsu, Inc.		2,200		83

	Shares		Value (000)
East Japan Railway Co.		3,600	$	265
Eisai Co., Ltd.		2,800		109
Electric Power Development Co., Ltd.		1,900		54
FamilyMart Co., Ltd.		200		9
FANUC Corp.		1,800		317
Fast Retailing Co., Ltd.		500		181
FUJIFILM Holdings Corp.		5,700		153
Fujitsu Ltd.		19,000		115
Hankyu Hanshin Holdings, Inc.		24,000		131
Hitachi Ltd.		47,000		346
Hokkaido Electric Power Co., Inc. (f)		2,900		25
Hokuriku Electric Power Co.		2,700		35
Honda Motor Co., Ltd.		1,100		39
Honda Motor Co., Ltd. ADR		13,695		484
Hoya Corp.		4,200		131
Ibiden Co., Ltd.		1,400		28
Inpex Corp.		4,200		54
Isetan Mitsukoshi Holdings Ltd.		3,700		46
Isuzu Motors Ltd.		1,000		6
ITOCHU Corp.		15,500		181
Japan Real Estate Investment Corp. REIT		12		60
Japan Steel Works Ltd. (The)		3,000		13
Japan Tobacco, Inc.		16,000		502
JFE Holdings, Inc.		4,600		87
JGC Corp.		2,000		70
JSR Corp.		2,100		39
JX Holdings, Inc.		2,800		13
Kansai Electric Power Co., Inc. (The) (f)		4,900		50
Kao Corp.		8,100		287
Kawasaki Heavy Industries Ltd.		26,000		96
KDDI Corp.		7,500		436
Keikyu Corp.		7,000		59
Keio Corp.		7,000		49
Keyence Corp.		500		206
Kikkoman Corp.		1,000		19
Kintetsu Corp.		29,000		103
Kirin Holdings Co., Ltd.		14,000		195
Kobe Steel Ltd.		49,000		65
Komatsu Ltd.		9,800		203
Konica Minolta, Inc.		3,500		33
Kubota Corp.		13,000		174
Kuraray Co., Ltd.		3,500		40
Kyocera Corp.		3,200		144
Kyushu Electric Power Co., Inc. (f)		2,700		33
Lawson, Inc.		300		21
LIXIL Group Corp.		3,900		107
Makita Corp.		1,100		61
Marubeni Corp.		21,000		141
Mazda Motor Corp.		17,000		75
MEIJI Holdings Co., Ltd.		200		13
Mitsubishi Chemical Holdings Corp.		15,500		64
Mitsubishi Corp.		12,800		237
Mitsubishi Electric Corp.		19,000		213

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Japan (cont'd)
Mitsubishi Estate Co., Ltd.		12,000	$	286
Mitsubishi Heavy Industries Ltd.		37,000		215
Mitsubishi Motors Corp.		6,400		67
Mitsui & Co., Ltd.		19,300		272
Mitsui Fudosan Co., Ltd.		9,000		274
Mitsui OSK Lines Ltd.		12,000		47
Mizuho Financial Group, Inc.		144,700		286
MS&AD Insurance Group Holdings		4,000		91
Murata Manufacturing Co., Ltd.		2,200		207
NGK Insulators Ltd.		3,000		62
Nidec Corp.		2,200		134
Nikon Corp.		3,500		56
Nintendo Co., Ltd.		1,000		119
Nippon Building Fund, Inc. REIT		12		63
Nippon Electric Glass Co., Ltd.		4,000		21
Nippon Express Co., Ltd.		15,000		73
Nippon Meat Packers, Inc.		1,000		15
Nippon Steel Sumitomo Metal Corp.		80,000		218
Nippon Telegraph & Telephone Corp.		5,600		304
Nippon Yusen KK		24,000		70
Nissan Motor Co., Ltd.		23,900		213
Nisshin Seifun Group, Inc.		800		9
Nissin Foods Holdings Co., Ltd.		200		9
Nitto Denko Corp.		1,700		82
NKSJ Holdings, Inc.		400		10
Nomura Holdings, Inc.		36,100		231
NSK Ltd.		7,000		72
NTT Data Corp.		2,100		82
NTT DoCoMo, Inc.		14,700		232
Odakyu Electric Railway Co., Ltd.		12,000		104
OJI Holdings Corp.		9,000		40
Olympus Corp. (f)		2,400		77
Omron Corp.		1,900		78
Ono Pharmaceutical Co., Ltd.		1,000		87
Oriental Land Co., Ltd.		100		15
ORIX Corp.		10,500		147
Osaka Gas Co., Ltd.		29,000		110
Otsuka Holdings Co., Ltd.		400		12
Panasonic Corp.		18,700		213
Rakuten, Inc.		10,000		133
Resona Holdings, Inc.		7,300		35
Ricoh Co., Ltd.		8,000		93
Rohm Co., Ltd.		800		36
Secom Co., Ltd.		2,100		121
Sekisui House Ltd.		8,000		99
Seven & I Holdings Co., Ltd.		11,400		435
Sharp Corp. (f)		10,000		30
Shikoku Electric Power Co., Inc. (f)		3,800		52
Shin-Etsu Chemical Co., Ltd.		3,300		188
Shionogi & Co., Ltd.		4,400		81
Shiseido Co., Ltd.		6,000		105
Shizuoka Bank Ltd. (The)		10,000		97

	Shares		Value (000)
SMC Corp.		600	$	158
Softbank Corp.		7,400		558
Sony Corp.		900		17
Sony Corp. ADR		9,035		173
Sumitomo Chemical Co., Ltd.		15,000		55
Sumitomo Corp.		11,700		149
Sumitomo Electric Industries Ltd.		16,600		247
Sumitomo Metal Mining Co., Ltd.		6,000		75
Sumitomo Mitsui Financial Group, Inc.		13,000		554
Sumitomo Mitsui Trust Holdings, Inc.		30,000		135
Sumitomo Realty & Development Co., Ltd.		6,000		234
Suntory Beverage & Food Ltd.		500		17
Suzuki Motor Corp.		4,200		109
T&D Holdings, Inc.		5,800		69
Takeda Pharmaceutical Co., Ltd.		7,400		350
TDK Corp.		1,000		42
Terumo Corp.		4,600		100
Tobu Railway Co., Ltd.		23,000		111
Tohoku Electric Power Co., Inc.		4,600		47
Tokio Marine Holdings, Inc.		4,900		147
Tokyo Electric Power Co., Inc. (f)		9,500		38
Tokyo Electron Ltd.		1,500		92
Tokyo Gas Co., Ltd.		26,000		132
Tokyu Corp.		12,000		74
Toppan Printing Co., Ltd.		8,000		57
Toray Industries, Inc.		19,000		125
Toshiba Corp.		42,000		178
Toyota Industries Corp.		2,500		120
Toyota Motor Corp.		27,300		1,536
Trend Micro, Inc.		1,200		37
Unicharm Corp.		2,300		123
West Japan Railway Co.		2,300		94
Yahoo! Japan Corp.		19,100		93
Yakult Honsha Co., Ltd.		400		20
Yamada Denki Co., Ltd.		9,500		32
Yamato Holdings Co., Ltd.		6,600		142
				22,305
Kazakhstan (0.0%)
Kazakhmys PLC		2,888		13
Netherlands (0.8%)
Akzo Nobel N.V.		4,136		339
ArcelorMittal		12,177		197
ASML Holding N.V.		2,380		220
CNH Industrial N.V. (f)		6,659		77
Fugro N.V. CVA		657		40
Heineken Holding N.V.		254		16
Heineken N.V.		4,097		286
ING Groep N.V. CVA (f)		45,698		650
Koninklijke Ahold N.V.		12,980		261
Koninklijke DSM N.V.		3,186		219
Koninklijke KPN N.V. (f)		6,177		22
Koninklijke Philips N.V.		11,422		402

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Netherlands (cont'd)
Koninklijke Vopak N.V.		1,006	$	56
PostNL N.V. (f)		4,654		21
Randstad Holding N.V.		1,207		71
TNT Express N.V.		4,151		41
Unilever N.V. CVA		18,468		759
				3,677
Norway (0.3%)
Aker Solutions ASA		1,833		28
DnB ASA		11,838		206
Kvaerner ASA		1,677		4
Norsk Hydro ASA		13,781		69
Orkla ASA		12,166		104
REC Silicon ASA (f)		6,482		4
Seadrill Ltd.		328		11
Statoil ASA		13,168		372
Subsea 7 SA		3,127		58
Telenor ASA		16,272		361
Yara International ASA		2,039		90
				1,307
Poland (0.0%)
Jeronimo Martins SGPS SA		8,461		142
Portugal (0.2%)
Altri SGPS SA		2,096		8
Banco BPI SA (f)		11,503		30
Banco Comercial Portugues SA (f)		490,800		154
Banco Espirito Santo SA (Registered) (f)		100,719		189
EDP - Energias de Portugal SA		33,275		155
Galp Energia SGPS SA		9,188		159
Mota-Engil SGPS SA		1,271		10
Portucel SA		1,622		7
Portugal Telecom SGPS SA (Registered)		33,426		142
Sonae		7,110		13
Sonaecom - SGPS SA		3,245		10
Zon Optimus SGPS SA		1,592		13
				890
Russia (0.4%)
Gazprom OAO ADR		56,532		436
Lukoil OAO ADR		5,154		287
Magnit OJSC GDR		2,639		145
MegaFon OAO GDR		834		23
MMC Norilsk Nickel OJSC ADR		5,428		90
Mobile Telesystems OJSC ADR		5,000		87
NovaTek OAO (Registered GDR)		848		94
Rosneft OAO (Registered GDR)		11,433		76
RusHydro JSC ADR		10,957		17
Sberbank of Russia ADR		26,535		259
Severstal OAO GDR		1,941		15
Sistema JSFC GDR		1,154		26
Surgutneftegas OJSC ADR		13,624		101
Tatneft OAO ADR		2,348		81
Uralkali OJSC GDR		2,609		62

	Shares		Value (000)
VTB Bank OJSC (Registerd GDR)		25,728	$	57
				1,856
South Africa (0.1%)
SABMiller PLC		13,206		660
Spain (2.1%)
Abertis Infraestructuras SA		12,358		282
ACS Actividades de Construccion y Servicios SA		3,511		138
Amadeus IT Holding SA, Class A		5,400		225
Banco Bilbao Vizcaya Argentaria SA		132,359		1,593
Banco de Sabadell SA		102,449		317
Banco Popular Espanol SA		27,988		212
Banco Santander SA		241,421		2,305
Bankia SA (f)		66,209		140
CaixaBank SA		46,340		299
Distribuidora Internacional de Alimentacion SA		20,015		183
EDP Renovaveis SA		7,236		48
Enagas SA		4,460		136
Ferrovial SA		6,878		149
Gas Natural SDG SA		5,948		167
Grifols SA		2,531		139
Grifols SA, Class B		126		5
Iberdrola SA		103,127		722
Inditex SA		5,526		831
International Consolidated Airlines Group SA (f)		13,928		97
Red Electrica Corp., SA		3,217		262
Repsol SA		16,546		423
Telefonica SA		71,322		1,129
				9,802
Sweden (1.0%)
Assa Abloy AB, Class B		3,279		175
Atlas Copco AB, Class A		9,926		287
Atlas Copco AB, Class B		7,174		197
Electrolux AB, Class B		2,950		65
Hennes & Mauritz AB, Class B		10,362		442
Husqvarna AB, Class B		5,449		38
Investor AB, Class B		11,790		427
Millicom International Cellular SA SDR		1,326		135
Modern Times Group AB, Class B		443		21
Nordea Bank AB		26,050		370
Sandvik AB		15,296		217
Scania AB, Class B		5,178		152
Skandinaviska Enskilda Banken AB		14,182		195
Skanska AB, Class B		3,281		77
SKF AB, Class B		6,298		162
Svenska Cellulosa AB SCA, Class B		10,031		295
Svenska Handelsbanken AB, Class A		5,479		275
Swedbank AB, Class A		4,898		131
Swedish Match AB		4,710		154
Telefonaktiebolaget LM Ericsson, Class B		25,830		344
TeliaSonera AB		31,426		237
Volvo AB, Class B		8,272		131
				4,527

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Switzerland (2.9%)
ABB Ltd. (Registered) (f)		37,474	$	970
Actelion Ltd. (Registered) (f)		1,056		100
Adecco SA (Registered) (f)		1,374		115
Aryzta AG (f)		217		19
Barry Callebaut AG (Registered) (f)		5		7
Cie Financiere Richemont SA (Registered)		5,331		510
Coca-Cola HBC AG (f)		1,752		43
Credit Suisse Group AG (Registered) (f)		16,331		529
Geberit AG (Registered)		894		293
Givaudan SA (Registered) (f)		99		153
Holcim Ltd. (Registered) (f)		327		27
Julius Baer Group Ltd. (f)		2,309		103
Kuehne & Nagel International AG (Registered)		732		103
Lindt & Spruengli AG		2		10
Lonza Group AG (Registered) (f)		523		53
Nestle SA (Registered)		46,168		3,479
Novartis AG (Registered)		23,572		2,002
Roche Holding AG (Genusschein)		6,415		1,928
SGS SA (Registered)		60		148
Sonova Holding AG (Registered) (f)		957		140
Swatch Group AG (The)		353		222
Swiss Re AG (f)		1,336		124
Swisscom AG (Registered)		745		457
Syngenta AG (Registered)		914		347
Transocean Ltd.		3,245		134
UBS AG (Registered) (f)		30,443		629
Zurich Insurance Group AG (f)		2,528		777
				13,422
United Kingdom (6.0%)
3i Group PLC		17,668		117
Admiral Group PLC		3,778		90
Aggreko PLC		2,555		64
AMEC PLC		3,969		74
Anglo American PLC		12,293		314
ARM Holdings PLC		14,750		249
Associated British Foods PLC		2,748		127
AstraZeneca PLC		16,441		1,065
Aviva PLC		32,168		256
Babcock International Group PLC		4,000		90
BAE Systems PLC		51,079		355
Barclays PLC		165,488		646
BG Group PLC		32,584		608
BHP Billiton PLC		20,867		644
BP PLC		189,666		1,519
British American Tobacco PLC		24,355		1,356
British Land Co., PLC REIT		12,968		142
British Sky Broadcasting Group PLC		8,242		126
BT Group PLC		102,679		653
Burberry Group PLC		4,196		98
Cairn Energy PLC (f)		6,451		18
Capita PLC		6,586		121

	Shares		Value (000)
Centrica PLC		52,229	$	288
Compass Group PLC		21,054		322
Diageo PLC		31,027		963
Experian PLC		11,285		204
G4S PLC		14,808		60
GlaxoSmithKline PLC		58,621		1,562
Glencore Xstrata PLC (f)		65,300		337
HSBC Holdings PLC		161,033		1,630
Imperial Tobacco Group PLC		12,761		516
Inmarsat PLC		4,106		50
Intertek Group PLC		1,847		95
Investec PLC		9,538		77
ITV PLC		32,244		103
J Sainsbury PLC		3,076		16
Johnson Matthey PLC		2,335		127
Land Securities Group PLC REIT		12,437		212
Legal & General Group PLC		64,615		221
Lloyds Banking Group PLC (f)		379,266		476
Lonmin PLC (f)		1,989		9
Man Group PLC		15,236		26
Marks & Spencer Group PLC		10,082		76
National Grid PLC		35,017		481
Next PLC		1,962		216
Old Mutual PLC		76,950		258
Pearson PLC		12,902		229
Petrofac Ltd.		3,181		76
Prudential PLC		31,720		672
Randgold Resources Ltd.		924		69
Reckitt Benckiser Group PLC		8,526		695
Reed Elsevier PLC		3,587		55
Rio Tinto PLC		13,589		758
Rolls-Royce Holdings PLC (f)		34,143		612
Royal Bank of Scotland Group PLC (f)		20,621		107
Royal Dutch Shell PLC, Class A		35,881		1,312
Royal Dutch Shell PLC, Class B		27,048		1,055
RSA Insurance Group PLC		79,789		119
Serco Group PLC		5,878		41
Shire PLC		5,464		269
Signet Jewelers Ltd.		1,025		108
Smith & Nephew PLC		10,250		155
Smiths Group PLC		6,229		132
SSE PLC		17,723		435
Standard Chartered PLC		21,901		458
Standard Life PLC		18,540		117
Tate & Lyle PLC		1,154		13
Tesco PLC		98,927		488
TUI Travel PLC		15,728		115
Tullow Oil PLC		8,851		111
Unilever PLC		16,493		704
Vedanta Resources PLC		1,623		24
Vodafone Group PLC		330,304		1,216
WM Morrison Supermarkets PLC		25,711		91
Wolseley PLC		3,226		184

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
WPP PLC		28,743	$	595
				28,072
United States (23.1%)
3M Co.		1,791		243
AAON, Inc.		867		24
Aaron's, Inc.		3,398		103
Abbott Laboratories		5,712		220
AbbVie, Inc.		5,712		294
Abercrombie & Fitch Co., Class A		249		10
Accenture PLC, Class A		3,625		289
ACCO Brands Corp. (f)		104		1
Actavis plc (f)		321		66
Actuant Corp., Class A		3,106		106
Acuity Brands, Inc.		740		98
Adobe Systems, Inc. (f)		3,763		247
ADT Corp. (The)		404		12
Advance Auto Parts, Inc.		1,090		138
Advanced Micro Devices, Inc. (f)		3,080		12
AES Corp.		893		13
Aetna, Inc.		2,546		191
Aflac, Inc.		301		19
Agilent Technologies, Inc.		1,979		111
Air Products & Chemicals, Inc.		277		33
Airgas, Inc.		294		31
Akamai Technologies, Inc. (f)		1,112		65
Alcoa, Inc.		3,780		49
Alexander & Baldwin, Inc.		1,073		46
Alexion Pharmaceuticals, Inc. (f)		1,201		183
Allegheny Technologies, Inc.		535		20
Allegion PLC		342		18
Allergan, Inc.		2,556		317
Allstate Corp. (The)		543		31
Alpha Natural Resources, Inc. (f)		884		4
Altera Corp.		4,241		154
Altria Group, Inc.		13,729		514
Amazon.com, Inc. (f)		1,470		495
AMC Networks, Inc., Class A (f)		21		2
Ameren Corp.		2,292		94
American Electric Power Co., Inc.		4,094		207
American Express Co.		3,491		314
American Tower Corp. REIT		3,460		283
Ameriprise Financial, Inc.		2,279		251
AmerisourceBergen Corp.		3,371		221
AMETEK, Inc.		2,892		149
Amgen, Inc.		5,517		680
Amphenol Corp., Class A		206		19
Anadarko Petroleum Corp.		2,941		249
Analog Devices, Inc.		3,757		200
Analogic Corp.		814		67
Annaly Capital Management, Inc. REIT		2,458		27
Aon PLC		200		17

	Shares		Value (000)
Apache Corp.		2,574	$	214
Apollo Group, Inc., Class A (f)		636		22
Apple, Inc.		7,309		3,923
Applied Materials, Inc.		7,149		146
Arch Coal, Inc.		24,958		120
Archer-Daniels-Midland Co.		4,604		200
Arkansas Best Corp.		1,905		70
AT&T, Inc.		28,651		1,005
Automatic Data Processing, Inc.		1,670		129
AutoZone, Inc. (f)		257		138
Avago Technologies Ltd.		1,465		94
AvalonBay Communities, Inc. REIT		1,367		180
Avery Dennison Corp.		1,448		73
Avon Products, Inc.		5,226		77
Baker Hughes, Inc.		3,595		234
Balchem Corp.		688		36
Ball Corp.		799		44
Bank of America Corp.		90,316		1,553
Bank of New York Mellon Corp. (The)		10,284		363
Baxter International, Inc.		4,020		296
BB&T Corp.		5,960		239
Beam, Inc.		324		27
Becton Dickinson and Co.		1,822		213
Bed Bath & Beyond, Inc. (f)		1,380		95
Belden, Inc.		1,387		97
Berkshire Hathaway, Inc., Class B (f)		654		82
Best Buy Co., Inc.		1,346		36
Biogen Idec, Inc. (f)		1,424		436
BlackRock, Inc.		987		310
Boeing Co. (The)		3,219		404
Boston Properties, Inc. REIT		1,216		139
Boston Scientific Corp. (f)		10,697		145
Bristol-Myers Squibb Co.		8,039		418
Broadcom Corp., Class A		5,352		168
Brown-Forman Corp., Class B		306		27
Bunge Ltd.		875		70
C.H. Robinson Worldwide, Inc.		1,127		59
CA, Inc.		1,775		55
Cablevision Systems Corp.		2,712		46
Cabot Oil & Gas Corp.		3,131		106
Callaway Golf Co.		4,683		48
Cameron International Corp. (f)		1,723		106
Campbell Soup Co.		677		30
Cantel Medical Corp.		608		20
Capital One Financial Corp.		3,477		268
Cardinal Health, Inc.		3,121		218
CarMax, Inc. (f)		877		41
Carnival Corp.		2,009		76
Cash America International, Inc.		2,545		99
Catamaran Corp. (f)		200		9
Caterpillar, Inc.		4,387		436
CBRE Group, Inc., Class A (f)		5,489		151
CBS Corp., Class B		5,701		352

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Celanese Corp. Series A		320	$	18
Celgene Corp. (f)		2,611		364
CenterPoint Energy, Inc.		4,476		106
CenturyLink, Inc.		3,610		119
Cerner Corp. (f)		2,012		113
CF Industries Holdings, Inc.		556		145
Charles Schwab Corp. (The)		6,333		173
Chesapeake Energy Corp.		4,134		106
Chevron Corp.		9,265		1,102
Chipotle Mexican Grill, Inc. (f)		223		127
Chubb Corp. (The)		284		25
Church & Dwight Co., Inc.		304		21
Cigna Corp.		3,371		282
Cimarex Energy Co.		913		109
Cintas Corp.		1,094		65
CIRCOR International, Inc.		494		36
Cisco Systems, Inc.		41,042		920
CIT Group, Inc.		1,655		81
Citigroup, Inc.		16,592		790
Citrix Systems, Inc. (f)		1,679		96
Cliffs Natural Resources, Inc.		877		18
Clorox Co. (The)		1,448		127
CME Group, Inc.		211		16
Coach, Inc.		1,353		67
Coca-Cola Co. (The)		36,863		1,425
Coca-Cola Enterprises, Inc.		2,183		104
Cognizant Technology Solutions Corp., Class A (f)		5,218		264
Colgate-Palmolive Co.		10,333		670
Comcast Corp., Class A		12,074		604
Comcast Corp. Special Class A		3,375		165
Comerica, Inc.		222		11
ConAgra Foods, Inc.		3,791		118
Concho Resources, Inc. (f)		580		71
ConocoPhillips		6,765		476
CONSOL Energy, Inc.		4,286		171
Consolidated Edison, Inc.		1,986		107
Constellation Brands, Inc., Class A (f)		697		59
Cooper Cos., Inc. (The)		761		105
Corning, Inc.		4,384		91
Costco Wholesale Corp.		6,415		716
Covidien PLC		1,698		125
CR Bard, Inc.		1,272		188
Crimson Wine Group Ltd. (f)		181		2
Crown Castle International Corp.		2,596		192
Crown Holdings, Inc. (f)		600		27
CST Brands, Inc.		319		10
CSX Corp.		6,008		174
Cubic Corp.		795		41
Cummins, Inc.		1,721		256
Curtiss-Wright Corp.		1,692		108
CVS Caremark Corp.		4,087		306

	Shares		Value (000)
Cytec Industries, Inc.		1,099	$	107
D.R. Horton, Inc.		4,658		101
Danaher Corp.		4,797		360
Darden Restaurants, Inc.		524		27
DaVita HealthCare Partners, Inc. (f)		1,092		75
Deere & Co.		2,618		238
Delta Air Lines, Inc.		3,106		108
Deltic Timber Corp.		169		11
Denbury Resources, Inc.		834		14
DENTSPLY International, Inc.		2,288		105
Devon Energy Corp.		2,022		135
DeVry Education Group, Inc.		21		1
Diamond Offshore Drilling, Inc.		43		2
DIRECTV, Class A (f)		7,292		557
Discover Financial Services		3,169		184
Discovery Communications, Inc., Class A (f)		1,442		119
Discovery Communications, Inc., Class C (f)		1,203		93
Dollar General Corp. (f)		186		10
Dollar Tree, Inc. (f)		580		30
Dominion Resources, Inc.		5,323		378
Dover Corp.		226		18
Dow Chemical Co. (The)		1,880		91
Dr. Pepper Snapple Group, Inc.		1,363		74
DTE Energy Co.		1,390		103
Duke Energy Corp.		4,362		311
Dun & Bradstreet Corp. (The)		626		62
Eagle Materials, Inc.		1,203		107
Eastman Chemical Co.		282		24
Eaton Corp., PLC		2,048		154
eBay, Inc. (f)		7,267		401
Ecolab, Inc.		1,368		148
Edison International		3,627		205
Edwards Lifesciences Corp. (f)		321		24
EI du Pont de Nemours & Co.		1,472		99
Eli Lilly & Co.		4,433		261
EMC Corp.		15,897		436
EMCOR Group, Inc.		2,192		103
Emerson Electric Co.		4,565		305
Encore Wire Corp.		336		16
Energizer Holdings, Inc.		138		14
EnerSys, Inc.		1,454		101
Engility Holdings, Inc. (f)		18		1
Ensign Group, Inc. (The)		396		17
Entergy Corp.		1,190		80
EOG Resources, Inc.		2,535		497
EQT Corp.		1,875		182
Equifax, Inc.		1,361		93
Equity Residential REIT		2,633		153
Estee Lauder Cos., Inc. (The), Class A		3,290		220
Exelis, Inc.		227		4
Exelon Corp.		6,830		229
Expedia, Inc.		332		24
Expeditors International of Washington, Inc.		656		26

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Express Scripts Holding Co. (f)		6,026	$	452
Exxon Mobil Corp.		22,586		2,206
Fair Isaac Corp.		1,012		56
Family Dollar Stores, Inc.		297		17
Fastenal Co.		1,671		82
FedEx Corp.		2,271		301
FEI Co.		1,031		106
Fidelity National Information Services, Inc.		111		6
Fifth Third Bancorp		8,171		188
Financial Engines, Inc.		1,765		90
First Solar, Inc. (f)		295		21
FirstEnergy Corp.		3,156		107
Fiserv, Inc. (f)		1,336		76
Flowserve Corp.		900		70
Fluor Corp.		626		49
FMC Corp.		2,226		170
FMC Technologies, Inc. (f)		2,271		119
Ford Motor Co.		9,229		144
Franklin Electric Co., Inc.		896		38
Franklin Resources, Inc.		3,208		174
Freeport-McMoRan Copper & Gold, Inc.		2,560		85
Frontier Communications Corp.		8,847		50
GameStop Corp., Class A		536		22
Gannett Co., Inc.		233		6
Gap, Inc. (The)		1,396		56
General Dynamics Corp.		1,141		124
General Electric Co.		20,178		522
General Growth Properties, Inc. REIT		1,246		27
General Mills, Inc.		6,004		311
Genuine Parts Co.		111		10
Gilead Sciences, Inc. (f)		8,580		608
Global Payments, Inc.		1,445		103
Goldman Sachs Group, Inc. (The)		4,252		697
Google, Inc., Class A (f)		1,683		1,876
Green Plains Renewable Energy, Inc.		3,531		106
H&R Block, Inc.		3,237		98
Halliburton Co.		6,438		379
Harman International Industries, Inc.		43		5
Hartford Financial Services Group, Inc.		328		12
Hasbro, Inc.		176		10
HCP, Inc. REIT		1,586		62
Health Care, Inc. REIT		617		37
Heartland Express, Inc.		3,385		77
Helmerich & Payne, Inc.		880		95
Henry Schein, Inc. (f)		580		69
Herbalife Ltd.		195		11
Hershey Co. (The)		895		93
Hess Corp.		1,239		103
Hewlett-Packard Co.		10,606		343
Hillshire Brands Co.		404		15
Hologic, Inc. (f)		1,496		32
Home Depot, Inc.		1,131		89

	Shares		Value (000)
Honeywell International, Inc.		4,630	$	429
Hormel Foods Corp.		323		16
Hospira, Inc. (f)		1,394		60
Host Hotels & Resorts, Inc. REIT		7,871		159
Hudson City Bancorp, Inc.		222		2
Humana, Inc.		604		68
Huntington Bancshares, Inc.		900		9
Huntington Ingalls Industries, Inc.		59		6
IHS, Inc., Class A (f)		572		69
Illinois Tool Works, Inc.		2,274		185
Illumina, Inc. (f)		542		81
Ingersoll-Rand PLC		1,027		59
Intel Corp.		17,676		456
IntercontinentalExchange Group, Inc.		578		114
Interface, Inc.		2,040		42
International Business Machines Corp.		7,271		1,400
International Flavors & Fragrances, Inc.		253		24
International Game Technology		2,603		37
International Paper Co.		830		38
International Speedway Corp., Class A		575		20
Interpublic Group of Cos., Inc. (The)		4,601		79
Intuit, Inc.		2,922		227
Intuitive Surgical, Inc. (f)		535		234
Invacare Corp.		885		17
Invesco Ltd.		3,481		129
Iron Mountain, Inc.		2,291		63
ITT Corp.		219		9
Jabil Circuit, Inc.		222		4
Jacobs Engineering Group, Inc. (f)		951		60
Janus Capital Group, Inc.		111		1
JB Hunt Transport Services, Inc.		228		16
JC Penney Co., Inc. (f)		222		2
JM Smucker Co. (The)		920		89
Johnson & Johnson		13,648		1,341
Johnson Controls, Inc.		1,948		92
Jones Lang LaSalle, Inc.		873		103
Joy Global, Inc.		241		14
JPMorgan Chase & Co.		37,177		2,257
Juniper Networks, Inc. (f)		5,331		137
KB Home		5,596		95
KBR, Inc.		1,102		29
Kellogg Co.		2,415		151
Keurig Green Mountain, Inc.		306		32
KeyCorp		10,315		147
Kimberly-Clark Corp.		4,289		473
Kimco Realty Corp. REIT		2,219		49
KLA-Tencor Corp.		889		61
Knowles Corp. (f)		113		4
Kohl's Corp.		1,649		94
Kraft Foods Group, Inc.		3,996		224
Kroger Co. (The)		7,169		313
L Brands, Inc.		1,931		110
L-3 Communications Holdings, Inc.		111		13

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Laboratory Corp. of America Holdings (f)		549	$	54
Lam Research Corp. (f)		642		35
Landstar System, Inc.		1,756		104
Las Vegas Sands Corp.		1,835		148
Legg Mason, Inc.		1,664		82
Lennar Corp., Class A		2,534		100
Leucadia National Corp.		2,012		56
Lexmark International, Inc., Class A		111		5
Li & Fung Ltd. (g)		40,000		59
Liberty Global PLC, Class A (f)		1,941		81
Liberty Global PLC Series C (f)		5,409		220
Liberty Property Trust REIT		529		20
Linear Technology Corp.		1,599		78
Lockheed Martin Corp.		883		144
Loews Corp.		2,984		131
Lorillard, Inc.		3,363		182
Lowe's Cos., Inc.		5,973		292
LSI Corp.		4,691		52
LyondellBasell Industries N.V., Class A		854		76
M&T Bank Corp.		1,032		125
Macerich Co. (The) REIT		287		18
Macy's, Inc.		173		10
Mallinckrodt PLC (f)		224		14
Manpowergroup, Inc.		1,229		97
Marathon Oil Corp.		3,605		128
Marathon Petroleum Corp.		1,803		157
Marriott International, Inc., Class A		1,625		91
Marriott Vacations Worldwide Corp. (f)		194		11
Marsh & McLennan Cos., Inc.		586		29
Marvell Technology Group Ltd.		2,749		43
Mastercard, Inc., Class A		10,428		779
Mattel, Inc.		1,465		59
Maxim Integrated Products, Inc.		1,470		49
MAXIMUS, Inc.		2,176		98
McCormick & Co., Inc.		268		19
McDonald's Corp.		4,982		488
McGraw Hill Financial, Inc.		3,115		238
McKesson Corp.		2,317		409
Mead Johnson Nutrition Co.		1,886		157
MeadWestvaco Corp.		232		9
Medtronic, Inc.		7,136		439
Merck & Co., Inc.		14,239		808
MetLife, Inc.		870		46
MGM Resorts International (f)		2,234		58
Microchip Technology, Inc.		903		43
Micron Technology, Inc. (f)		5,196		123
Microsoft Corp.		36,720		1,505
Minerals Technologies, Inc.		1,550		100
Molson Coors Brewing Co., Class B		1,521		90
Mondelez International, Inc., Class A		11,613		401
Monsanto Co.		2,586		294
Monster Beverage Corp. (f)		315		22

		Shares		Value (000)
Moody's Corp.	��		1,055	$	84
Mosaic Co. (The)			1,408		70
Motorola Solutions, Inc.			1,199		77
Murphy Oil Corp.			914		57
Murphy USA, Inc. (f)			228		9
Mylan, Inc. (f)			1,601		78
Nabors Industries Ltd.			4,457		110
NASDAQ OMX Group, Inc. (The)			2,592		96
National Oilwell Varco, Inc.			3,789		295
NetApp, Inc.			3,216		119
NetFlix, Inc. (f)			325		114
New York Community Bancorp, Inc.			4,171		67
Newfield Exploration Co. (f)			836		26
Newmont Mining Corp.			2,581		60
News Corp., Class A (f)			3,591		62
News Corp., Class B (f)			825		14
NextEra Energy, Inc.			2,887		276
NII Holdings, Inc. (f)			1,486		2
NIKE, Inc., Class B			2,926		216
NiSource, Inc.			64		2
Noble Corp. PLC			971		32
Noble Energy, Inc.			2,700		192
Nordstrom, Inc.			310		19
Norfolk Southern Corp.			3,630		353
Northern Trust Corp.			33		2
Northrop Grumman Corp.			839		104
Nucor Corp.			866		44
NVIDIA Corp.			3,256		58
O'Reilly Automotive, Inc. (f)			1,033		153
Occidental Petroleum Corp.			6,817		650
Olympic Steel, Inc.			418		12
Omnicom Group, Inc.			1,761		128
ONE Gas, Inc. (f)			642		23
ONEOK, Inc.			2,570		152
Oracle Corp.			22,811		933
Owens-Illinois, Inc. (f)			262		9
PACCAR, Inc.			2,526		170
Pall Corp.			535		48
Patterson Cos., Inc.			176		7
Patterson-UTI Energy, Inc.			3,375		107
Paychex, Inc.			1,753		75
Peabody Energy Corp.			2,623		43
Pentair Ltd.			189		15
People's United Financial, Inc.			567		8
Pepco Holdings, Inc.			94		2
PepsiCo, Inc.			10,249		856
PerkinElmer, Inc.			2,282		103
Perrigo Co., PLC			951		147
PetSmart, Inc.			286		20
Pfizer, Inc.			28,629		920
PG&E Corp.			3,237		140
Philip Morris International, Inc.			11,566		947
Phillips 66			3,593		277

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Pioneer Natural Resources Co.		1,587	$	297
Pitney Bowes, Inc.		2,481		64
Plum Creek Timber Co., Inc. REIT		858		36
PNC Financial Services Group, Inc. (The)		3,969		345
Power Integrations, Inc.		1,610		106
PPG Industries, Inc.		322		62
PPL Corp.		4,062		135
Praxair, Inc.		1,429		187
Precision Castparts Corp.		1,411		357
Priceline.com, Inc. (f)		258		307
PrivateBancorp, Inc.		2,169		66
Procter & Gamble Co. (The)		25,481		2,054
Progressive Corp. (The)		259		6
ProLogis, Inc. REIT		3,809		156
Prudential Financial, Inc.		200		17
Public Service Enterprise Group, Inc.		4,094		156
Public Storage REIT		2,566		432
PVH Corp.		884		110
QEP Resources, Inc.		4,708		139
Qualcomm, Inc.		12,126		956
Quest Diagnostics, Inc.		970		56
Ralph Lauren Corp.		47		8
Range Resources Corp.		2,398		199
Rayonier, Inc. REIT		525		24
Raytheon Co.		974		96
Regency Centers Corp. REIT		251		13
Regions Financial Corp.		13,979		155
Republic Services, Inc.		2,858		98
Reynolds American, Inc.		3,349		179
Robert Half International, Inc.		1,660		70
Rockwell Automation, Inc.		1,362		170
Rockwell Collins, Inc.		832		66
Roper Industries, Inc.		1,030		138
Ross Stores, Inc.		1,350		97
Rouse Properties, Inc. REIT		71		1
Royal Caribbean Cruises Ltd.		1,478		81
RR Donnelley & Sons Co.		2,704		48
Ryland Group, Inc. (The)		2,541		101
Safeway, Inc.		861		32
Salesforce.com, Inc. (f)		4,196		240
SanDisk Corp.		2,718		221
Schlumberger Ltd.		10,225		997
Scripps Networks Interactive, Inc., Class A		681		52
Sealed Air Corp.		287		9
Sempra Energy		2,003		194
Sherwin-Williams Co. (The)		61		12
Sigma-Aldrich Corp.		266		25
Simon Property Group, Inc. REIT		4,528		743
SLM Corp.		4,930		121
SM Energy Co.		1,498		107
Sonic Automotive, Inc., Class A		1,177		26
Southern Co. (The)		6,330		278

	Shares		Value (000)
Southwest Airlines Co.		4,985	$	118
Southwestern Energy Co. (f)		3,262		150
Spectra Energy Corp.		4,322		160
Sprint Corp. (f)		22,134		203
St. Jude Medical, Inc.		2,926		191
Stanley Black & Decker, Inc.		258		21
Staples, Inc.		5,338		61
Starbucks Corp.		4,552		334
Starwood Hotels & Resorts Worldwide, Inc.		684		54
State Street Corp.		2,768		193
Stericycle, Inc. (f)		617		70
Stewart Information Services Corp.		898		32
Stryker Corp.		2,547		207
SunTrust Banks, Inc.		4,717		188
Symantec Corp.		6,062		121
Sysco Corp.		7,922		286
T-Mobile US, Inc. (f)		116		4
T. Rowe Price Group, Inc.		2,931		241
Target Corp.		2,288		138
TE Connectivity Ltd.		2,600		157
Tenaris SA		4,172		92
Tenet Healthcare Corp. (f)		131		6
Terex Corp.		2,505		111
Texas Instruments, Inc.		10,705		505
Textron, Inc.		4,439		174
Thermo Fisher Scientific, Inc.		3,458		416
Tiffany & Co.		261		22
Time Warner Cable, Inc.		2,949		405
Time Warner, Inc.		6,009		393
Titan International, Inc.		3,563		68
TJX Cos., Inc.		4,040		245
Towers Watson & Co., Class A		898		102
Tractor Supply Co.		1,424		101
Travelers Cos., Inc. (The)		528		45
TripAdvisor, Inc. (f)		332		30
Triumph Group, Inc.		1,647		106
TRW Automotive Holdings Corp. (f)		1,344		110
Twenty-First Century Fox, Inc.		17,267		550
Tyco International Ltd.		1,109		47
Tyson Foods, Inc., Class A		2,883		127
Ultra Petroleum Corp. (f)		1,210		33
UniFirst Corp.		433		48
Union Pacific Corp.		1,985		372
United Parcel Service, Inc., Class B		3,420		333
United States Steel Corp.		541		15
United Technologies Corp.		2,573		301
UnitedHealth Group, Inc.		4,612		378
Universal Health Services, Inc., Class B		1,363		112
Urban Outfitters, Inc. (f)		186		7
US Bancorp		13,773		590
UTi Worldwide, Inc.		9,173		97
Valero Energy Corp.		3,571		190
Valmont Industries, Inc.		712		106

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Varian Medical Systems, Inc. (f)		827	$	69
Ventas, Inc. REIT		547		33
Verisk Analytics, Inc., Class A (f)		1,588		95
Verizon Communications, Inc.		29,350		1,398
Vertex Pharmaceuticals, Inc. (f)		542		38
VF Corp.		2,312		143
Viacom, Inc., Class B		3,563		303
Visa, Inc., Class A		3,400		734
Vornado Realty Trust REIT		309		30
Vulcan Materials Co.		1,559		104
Wabtec Corp.		1,294		100
Wal-Mart Stores, Inc.		23,621		1,805
Walgreen Co.		11,657		770
Walt Disney Co. (The)		9,674		775
Waste Management, Inc.		3,629		153
Waters Corp. (f)		321		35
Weatherford International Ltd. (f)		4,376		76
WellPoint, Inc.		1,687		168
Wells Fargo & Co.		38,327		1,906
Western Union Co. (The)		5,569		91
Weyerhaeuser Co. REIT		1,979		58
Whole Foods Market, Inc.		4,848		246
Williams Cos., Inc. (The)		7,331		297
Wisconsin Energy Corp.		2,870		134
World Fuel Services Corp.		1,779		78
WPX Energy, Inc. (f)		3,405		61
WW Grainger, Inc.		588		149
Wyndham Worldwide Corp.		308		23
Wynn Resorts Ltd.		640		142
Xcel Energy, Inc.		4,016		122
Xerox Corp.		5,356		61
Xilinx, Inc.		1,608		87
Xylem, Inc.		1,738		63
Yahoo!, Inc. (f)		5,999		215
Yum! Brands, Inc.		3,189		240
Zimmer Holdings, Inc.		1,737		164
Zions Bancorporation		3,499		108
Zoetis, Inc.		8,964		259
				108,881
Total Common Stocks (Cost $208,645)				257,868
Investment Companies (0.1%)
United States (0.1%)
iShares MSCI Emerging Markets Index Fund		8,000		328
Morgan Stanley Institutional Fund, Inc. — Emerging Markets Portfolio (See Note F)		4,614		113
Total Investment Companies (Cost $493)				441

	No. of Rights		Value (000)
Rights (0.0%)
Hong Kong (0.0%)
New World Development Co., Ltd. (f)		9,794	$	2
Italy (0.0%)
Banco Popolare SC (f)		1,051		9
Portugal (0.0%)
Mota Engil SGPS (f)		2,077		2
Spain (0.0%)
BBVA (f)		132,359		31
United Kingdom (0.0%)
RSA Insurance Group PLC (f)		29,921		17
Total Rights (Cost $35)				61
	Shares
Short-Term Investments (14.0%)
Investment Company (13.5%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F) (Cost $63,691)		63,691,356		63,691
	Face Amount (000)
U.S. Treasury Securities (0.5%)
U.S. Treasury Bills,
0.05%, 8/21/14 (h)(i)	$	1,119		1,119
0.06%, 8/21/14 (h)(i)		366		366
0.07%, 8/21/14 (h)(i)		792		792
Total U.S. Treasury Securities (Cost $2,277)				2,277
Total Short-Term Investments (Cost $65,968)				65,968
Total Investments (98.9%) (Cost $410,313) (j)(k)				465,601
Other Assets in Excess of Liabilities (1.1%)				5,143
Net Assets (100.0%)			$	470,744

(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 31, 2014.

(d)  When-issued security.

(e)  Multi-step coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2014. Maturity date disclosed is the ultimate maturity date.

(f)  Non-income producing security.

(g)  Security trades on the Hong Kong exchange.

(h)  Rate shown is the yield to maturity at March 31, 2014.

(i)  All or a portion of the security was pledged to cover margin requirements for swap agreements.

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

(k)  The approximate fair value and percentage of net assets, $137,785,000 and 29.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

@  Value is less than $500.

ADR  American Depositary Receipt.

CVA  Certificaten Van Aandelen.

GDR  Global Depositary Receipt.

IO  Interest Only.

OJSC  Open Joint Stock Company.

REIT  Real Estate Investment Trust.

REMIC  Real Estate Mortgage Investment Conduit.

SDR  Swedish Depositary Receipt.

TBA  To Be Announced.

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at March 31, 2014:

Counterparty	Currency to Deliver (000)			Value (000)			Settlement Date	In Exchange For (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
HSBC Bank PLC	MXN	9,400		$	720		4/1/14	USD	715		$	715		$	(5	)
HSBC Bank PLC	USD	712			712		4/1/14	MXN	9,400			720			8
Deutsche Bank AG London	USD	794			794		4/3/14	AUD	856			794			—	@
Deutsche Bank AG London	USD	14			14		4/3/14	AUD	15			14			—	@
Deutsche Bank AG London	USD	34			34		4/3/14	EUR	25			34			(—	@)
Deutsche Bank AG London	USD	66			66		4/3/14	EUR	48			65			(1	)
Deutsche Bank AG London	USD	244			244		4/3/14	EUR	176			243			(1	)
Deutsche Bank AG London	USD	6			6		4/3/14	JPY	570			6			(—	@)
Deutsche Bank AG London	USD	630			630		4/3/14	MXN	8,228			630			(—	@)
Deutsche Bank AG London	USD	651			651		4/3/14	NOK	3,887			649			(2	)
HSBC Bank PLC	USD	715			715		4/3/14	MXN	9,400			720			5
HSBC Bank PLC	ZAR	1,560			148		4/3/14	USD	143			143			(5	)
JPMorgan Chase Bank NA	AUD	15			14		4/3/14	USD	14			14			(—	@)
JPMorgan Chase Bank NA	AUD	871			808		4/3/14	USD	777			777			(31	)
JPMorgan Chase Bank NA	CAD	5,206			4,709		4/3/14	USD	4,693			4,693			(16	)
JPMorgan Chase Bank NA	EUR	9			12		4/3/14	USD	12			12			(—	@)
JPMorgan Chase Bank NA	USD	—	@		—	@	4/3/14	CAD	—	@		—	@		—	@
JPMorgan Chase Bank NA	USD	243			243		4/3/14	CHF	214			242			(1	)
UBS AG	CHF	214			242		4/3/14	USD	242			242			(—	@)
UBS AG	EUR	444			611		4/3/14	NOK	3,660			611			(—	@)
UBS AG	EUR	3,729			5,136		4/3/14	USD	5,134			5,134			(2	)
UBS AG	EUR	734			1,011		4/3/14	USD	1,019			1,019			8
UBS AG	EUR	332			457		4/3/14	USD	456			456			(1	)
UBS AG	GBP	1,985			3,309		4/3/14	USD	3,310			3,310			1
UBS AG	JPY	1,186,932			11,500		4/3/14	USD	11,517			11,517			17
UBS AG	NOK	3,660			611		4/3/14	EUR	440			606			(5	)
UBS AG	NOK	1,110			185		4/3/14	USD	185			185			(—	@)
UBS AG	NOK	2,776			463		4/3/14	USD	459			459			(4	)
UBS AG	NZD	246			213		4/3/14	USD	213			213			(—	@)
UBS AG	SEK	22,277			3,442		4/3/14	USD	3,444			3,444			2
UBS AG	THB	10,500			324		4/3/14	USD	324			324			(—	@)
UBS AG	USD	14			14		4/3/14	AUD	15			14			—	@
UBS AG	USD	4,717			4,717		4/3/14	CAD	5,206			4,709			(8	)
UBS AG	USD	6,273			6,273		4/3/14	EUR	4,555			6,276			3
UBS AG	USD	3,276			3,276		4/3/14	GBP	1,960			3,268			(8	)
UBS AG	USD	11,697			11,697		4/3/14	JPY	1,186,362			11,494			(203	)
UBS AG	USD	1,364			1,364		4/3/14	KRW	1,458,797			1,370			6
UBS AG	USD	259			259		4/3/14	MYR	850			260			1
UBS AG	USD	1,340			1,340		4/3/14	PLN	4,051			1,340			(—	@)
UBS AG	USD	3,416			3,416		4/3/14	SEK	22,107			3,416			(—	@)
UBS AG	USD	27			27		4/3/14	SEK	170			27			(—	@)
UBS AG	USD	321			321		4/3/14	THB	10,500			323			2
UBS AG	USD	148			148		4/3/14	ZAR	1,560			148			(—	@)
Wells Fargo Bank NA	MXN	17,628			1,350		4/3/14	USD	1,319			1,319			(31	)
Wells Fargo Bank NA	PLN	4,051			1,339		4/3/14	USD	1,321			1,321			(18	)
Wells Fargo Bank NA	USD	41			41		4/3/14	GBP	25			41			(—	@)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
Wells Fargo Bank NA	USD	206	$	206	4/3/14	NZD	246	$	214	$	8
Bank of New York Mellon	MXN	8,665		663	4/16/14	USD	663		663		—	@
Bank of New York Mellon	USD	187		187	4/16/14	MXN	2,462		189		2
JPMorgan Chase Bank NA	NOK	9,322		1,556	4/16/14	USD	1,562		1,562		6
State Street Bank and Trust Co.	USD	529		529	4/16/14	DKK	2,839		524		(5	)
UBS AG	USD	1,732		1,732	4/16/14	NOK	10,335		1,725		(7	)
Bank of America NA	USD	2,279		2,279	4/17/14	CAD	2,529		2,286		7
Bank of America NA	USD	490		490	4/17/14	EUR	353		485		(5	)
Bank of Montreal	TRY	1,397		650	4/17/14	USD	624		624		(26	)
Barclays Bank PLC	EUR	2,186		3,012	4/17/14	USD	3,013		3,013		1
Barclays Bank PLC	EUR	4,730		6,516	4/17/14	USD	6,581		6,581		65
Barclays Bank PLC	KRW	853,348		801	4/17/14	USD	803		803		2
Barclays Bank PLC	USD	373		373	4/17/14	AUD	409		379		6
Barclays Bank PLC	USD	30		30	4/17/14	INR	1,840		31		1
Barclays Bank PLC	USD	1,118		1,118	4/17/14	KRW	1,200,163		1,126		8
Barclays Bank PLC	USD	892		892	4/17/14	SEK	5,657		874		(18	)
Commonwealth Bank of Australia	AUD	21,248		19,685	4/17/14	USD	19,368		19,368		(317	)
Commonwealth Bank of Australia	EUR	630		867	4/17/14	USD	876		876		9
Commonwealth Bank of Australia	USD	2,338		2,338	4/17/14	AUD	2,530		2,344		6
Commonwealth Bank of Australia	USD	1,730		1,730	4/17/14	AUD	1,876		1,738		8
Deutsche Bank AG London	AUD	1,152		1,067	4/17/14	USD	1,050		1,050		(17	)
Deutsche Bank AG London	CAD	541		490	4/17/14	USD	488		488		(2	)
Deutsche Bank AG London	CHF	483		546	4/17/14	USD	552		552		6
Deutsche Bank AG London	JPY	90,878		880	4/17/14	USD	882		882		2
Deutsche Bank AG London	JPY	8,810		85	4/17/14	USD	87		87		2
Deutsche Bank AG London	USD	3,465		3,465	4/17/14	EUR	2,515		3,465		—	@
Deutsche Bank AG London	USD	1,396		1,396	4/17/14	EUR	1,009		1,391		(5	)
Deutsche Bank AG London	USD	16,560		16,560	4/17/14	EUR	11,903		16,397		(163	)
Deutsche Bank AG London	USD	6,819		6,819	4/17/14	EUR	4,897		6,745		(74	)
Deutsche Bank AG London	USD	133		133	4/17/14	HKD	1,031		133		—	@
Goldman Sachs International	EUR	37,960		52,293	4/17/14	USD	52,810		52,810		517
Goldman Sachs International	USD	632		632	4/17/14	HKD	4,901		632		—	@
Goldman Sachs International	USD	1,520		1,520	4/17/14	HKD	11,806		1,522		2
JPMorgan Chase Bank NA	USD	201		201	4/17/14	SGD	254		202		1
JPMorgan Chase Bank NA	USD	554		554	4/17/14	TWD	16,799		552		(2	)
JPMorgan Chase Bank NA	ZAR	7,017		665	4/17/14	USD	651		651		(14	)
Royal Bank of Scotland PLC	JPY	1,081,232		10,477	4/17/14	USD	10,668		10,668		191
Royal Bank of Scotland PLC	USD	799		799	4/17/14	BRL	1,903		835		36
Royal Bank of Scotland PLC	USD	1,256		1,256	4/17/14	ILS	4,349		1,246		(10	)
Royal Bank of Scotland PLC	USD	48		48	4/17/14	THB	1,550		48		(—	@)
State Street Bank and Trust Co.	USD	2,145		2,145	4/17/14	CHF	1,875		2,121		(24	)
State Street Bank and Trust Co.	USD	325		325	4/17/14	SEK	2,064		319		(6	)
UBS AG	GBP	304		507	4/17/14	USD	504		504		(3	)
UBS AG	ILS	2,042		586	4/17/14	USD	590		590		4
UBS AG	JPY	191,061		1,851	4/17/14	USD	1,885		1,885		34
UBS AG	SEK	7,354		1,136	4/17/14	USD	1,159		1,159		23
UBS AG	USD	506		506	4/17/14	CAD	562		508		2
UBS AG	USD	1,619		1,619	4/17/14	CHF	1,415		1,601		(18	)
UBS AG	USD	7,668		7,668	4/17/14	EUR	5,512		7,593		(75	)
UBS AG	USD	1,117		1,117	4/17/14	GBP	670		1,117		(—	@)
UBS AG	USD	273		273	4/17/14	RUB	10,096		287		14
UBS AG	USD	1,412		1,412	4/17/14	SGD	1,784		1,419		7
UBS AG	USD	642		642	4/17/14	TRY	1,436		668		26
UBS AG	USD	770		770	4/17/14	ZAR	8,302		786		16
UBS AG	USD	11,519		11,519	5/2/14	JPY	1,186,932		11,502		(17	)
UBS AG	USD	1,373		1,373	5/2/14	KRW	1,458,797		1,368		(5	)
Deutsche Bank AG London	AUD	856		792	5/6/14	USD	792		792		—	@
Deutsche Bank AG London	MXN	8,228		629	5/6/14	USD	629		629		—	@
UBS AG	CAD	5,206		4,705	5/6/14	USD	4,713		4,713		8

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
UBS AG	NOK	3,660	$	611	5/6/14	EUR	443	$	611	$	—	@
UBS AG	PLN	4,051		1,337	5/6/14	USD	1,337		1,337		—	@
UBS AG	SEK	22,107		3,414	5/6/14	USD	3,414		3,414		—	@
UBS AG	USD	242		242	5/6/14	CHF	214		242		—	@
UBS AG	USD	5,134		5,134	5/6/14	EUR	3,729		5,136		2
UBS AG	USD	3,309		3,309	5/6/14	GBP	1,985		3,308		(1	)
UBS AG	USD	261		261	5/6/14	MYR	850		260		(1	)
UBS AG	USD	185		185	5/6/14	NOK	1,110		185		—	@
UBS AG	USD	213		213	5/6/14	NZD	246		213		—	@
UBS AG	USD	323		323	5/6/14	THB	10,500		323		(—	@)
UBS AG	ZAR	1,560		148	5/6/14	USD	148		148		—	@
			$	273,898				$	273,816	$	(82	)

Futures Contracts:

The Portfolio had the following futures contracts open at March 31, 2014:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
Amsterdam Index (Netherlands)		3	$	334		Apr-14	$	10
CAC 40 Index (France)		7		423		Apr-14		9
Dollar Index (United States)		75		6,019		Jun-14		50
FTSE 100 Index (United Kingdom)		9		982		Jun-14		6
FTSE MIB Index (Italy)		15		2,211		Jun-14		123
MSCI Emerging Market E Mini (United States)		75		3,698		Jun-14		(2	)
MSCI Singapore Free Index (Singapore)		36		2,046		Apr-14		51
NIKKEI 225 Index (Japan)		60		4,306		Jun-14		3
OMXS 30 (Sweden)		19		397		Apr-14		6
S&P 500 E MINI Index (United States)		706		65,820		Jun-14		5
SPI 200 Index (Australia)		2		250		Jun-14		(—	@)
U.S. Treasury 5 yr. Note (United States)		16		1,903		Jun-14		(15	)
U.S. Treasury 10 yr. Note (United States)		114		14,079		Jun-14		(114	)
U.S. Treasury Long Bond (United States)		18		2,398		Jun-14		18
U.S. Treasury Ultra Long Bond (United States)		44		6,357		Jun-14		45
Short:
Copper High Grade Index (United States)		31		(2,345	)	May-14		129
Euro Stoxx 50 Index (Germany)		37		(1,580	)	Jun-14		(—	@)
German Euro BOBL (Germany)		2		(346	)	Jun-14		(—	@)
German Euro Bund (Germany)		99		(19,555	)	Jun-14		(55	)
Hang Seng Index (Hong Kong)		118		(7,668	)	Apr-14		(226	)
IBEX 35 Index (Spain)		25		(3,552	)	Apr-14		(87	)
TOPIX Index (Japan)		62		(7,226	)	Jun-14		68
U.S. Treasury 2 yr. Note (United States)		3		(659	)	Jun-14		1
U.S. Treasury 5 yr. Note (United States)		50		(5,948	)	Jun-14		47
U.S. Treasury 10 yr. Note (United States)		92		(11,362	)	Jun-14		71
							$	143

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 31, 2014:

Swap Counterparty and  Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Appreciation (Depreciation) (000)			Value (000)			Credit Rating of Reference Obligation†
Bank of America NA People's Republic of China	Buy	$	51		1.00	%	3/20/19	$	(—	@)	$	(—	@)	$	(—	@)	AA-
Bank of America NA Australian Government	Buy		51		1.00		3/20/19		(2	)		(—	@)		(2	)	NR
Bank of America NA People's Republic of China	Buy		51		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Bank of America NA People's Republic of China	Buy		16		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Bank of America NA People's Republic of China	Buy		16		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Bank of America NA Australian Government	Buy		79		1.00		3/20/19		(2	)		(1	)		(3	)	NR
Bank of America NA Australian Government	Buy		34		1.00		3/20/19		(1	)		(—	@)		(1	)	NR
Bank of America NA People's Republic of China	Buy		34		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Bank of America NA People's Republic of China	Buy		7		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Barclays Bank PLC People's Republic of China	Buy		16		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Barclays Bank PLC People's Republic of China	Buy		33		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Barclays Bank PLC People's Republic of China	Buy		24		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Barclays Bank PLC People's Republic of China	Buy		33		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Barclays Bank PLC People's Republic of China	Buy		54		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Deutsche Bank AG Australian Government	Buy		49		1.00		3/20/19		(1	)		(—	@)		(1	)	NR
Deutsche Bank AG People's Republic of China	Buy		49		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Deutsche Bank AG People's Republic of China	Buy		65		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Deutsche Bank AG Australian Government	Buy		49		1.00		3/20/19		(1	)		(—	@)		(1	)	NR
Deutsche Bank AG People's Republic of China	Buy		16		1.00		3/20/19		(—	@)		(—	@)		(—	@)	AA-
Deutsche Bank AG Australian Government	Buy		33		1.00		3/20/19		(1	)		(—	@)		(1	)	NR
Deutsche Bank AG Australian Government	Buy		53		1.00		3/20/19		(2	)		(—	@)		(2	)	NR
Goldman Sachs International Australian Government	Buy		33		1.00	%	3/20/19		(1	)		(—	@)		(1	)	NR
JPMorgan Chase Bank NA HSBC Bank PLC	Buy	EUR	230		1.00		3/20/19		(4	)		(2	)		(6	)	AA-
JPMorgan Chase Bank NA Standard Chartered Bank	Buy		275		1.00		3/20/19		4			(1	)		3		NR
JPMorgan Chase Bank NA Standard Chartered Bank	Buy		180		1.00		3/20/19		2			(1	)		1		NR
JPMorgan Chase Bank NA Standard Chartered Bank	Buy		195		1.00		3/20/19		3			(1	)		2		NR
JPMorgan Chase Bank NA Australian Government	Buy	$	47		1.00		3/20/19		(1	)		(—	@)		(1	)	NR

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Credit Default Swap Agreements: (cont'd)

Swap Counterparty and  Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate		Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Appreciation (Depreciation) (000)			Value (000)			Credit Rating of Reference Obligation†
JPMorgan Chase Bank NA HSBC Bank PLC	Buy	EUR	915		1.00	3/20/19	$	(13	)	$	(9	)	$	(22	)	AA-
JPMorgan Chase Bank NA HSBC Bank PLC	Buy		2,750		1.00	3/20/19		(41	)		(23	)		(64	)	AA-
JPMorgan Chase Bank NA Australian Government	Buy	$	47		1.00	3/20/19		(1	)		(—	@)		(1	)	NR
JPMorgan Chase Bank NA People's Republic of China	Buy		34		1.00	3/20/19		(—	@)		(—	@)		(—	@)	AA-
JPMorgan Chase Bank NA Australian Government	Buy		34		1.00	3/20/19		(1	)		(—	@)		(1	)	NR
JPMorgan Chase Bank NA People's Republic of China	Buy		20		1.00	3/20/19		(—	@)		(—	@)		(—	@)	AA-
JPMorgan Chase Bank NA People's Republic of China	Buy		16		1.00	3/20/19		(—	@)		(—	@)		(—	@)	AA-
JPMorgan Chase Bank NA People's Republic of China	Buy		48		1.00	3/20/19		(—	@)		(—	@)		(—	@)	AA-
JPMorgan Chase Bank NA Standard Chartered Bank	Buy	EUR	680		1.00	3/20/19		11			(4	)		7		NR
JPMorgan Chase Bank NA Standard Chartered Bank	Buy		625		1.00	3/20/19		1			4			5		NR
		$	6,942				$	(51	)	$	(38	)	$	(89	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 31, 2014:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Bank of America NA	3 Month LIBOR	Receive		2.04	%	2/13/23	$	3,010	$	153
Barclays Bank PLC	3 Month LIBOR	Receive		2.90		5/13/43		1,530		170
Deutsche Bank AG	3 Month LIBOR	Receive		2.80		5/1/43		1,215		158
Goldman Sachs International	3 Month LIBOR	Pay		2.04		1/22/19	CAD	5,960		26
Goldman Sachs International	3 Month LIBOR	Receive		2.09		2/15/23	$	3,740		175
Goldman Sachs International	3 Month LIBOR	Receive		2.95		1/22/24	CAD	3,240		(48	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.79		1/24/19	$	6,380		(32	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Pay		2.96		1/24/24		3,480		62
Royal Bank of Canada	3 Month LIBOR	Receive		2.06		2/6/23		1,810		88
									$	752

Total Return Swap Agreements:

The Portfolio had the following total return swap agreements open at March 31, 2014:

Swap Counterparty	Index	Notional Amount (000)		Floating Rate	Pay/Receive Total Return of Referenced Index	Maturity Date	Unrealized Appreciation (Depreciation) (000)
Barclays Bank PLC	Barclays Custom International Retail Basket	$	734	3 Month USD LIBOR minus 0.65%	Pay	10/23/14	$	(34	)
Barclays Bank PLC	Barclays Custom International Retail Basket		6,311	3 Month USD LIBOR minus 0.65%	Pay	10/23/14		(86	)
Barclays Bank PLC	Barclays Custom International Retail Basket		5,551	3 Month USD LIBOR minus 0.25%	Pay	2/4/15		(128	)
Barclays Bank PLC	MSCI Daily Total Return Net Emerging Markets Index		24,428	3 Month USD LIBOR minus 0.20%	Receive	3/5/15		749
Deutsche Bank AG	MSCI China Banks Index	HKD	27,338	3 Month HKD HIBOR minus 0.35%	Pay	2/17/15		(118	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Total Return Swap Agreements: (cont'd)

Swap Counterparty	Index	Notional Amount (000)		Floating Rate	Pay/Receive Total Return of Referenced Index	Maturity Date	Unrealized Appreciation (Depreciation) (000)
Deutsche Bank AG	MSCI Japan Retail Index	JPY	270,581	3 Month USD LIBOR minus 0.20%	Pay	3/2/15	$	67
Deutsche Bank AG	MSCI Japan Retail Index		272,927	3 Month USD LIBOR minus 0.20%	Pay	3/2/15		(22	)
Deutsche Bank AG	MSCI Japan Retail Index		262,766	3 Month USD LIBOR minus 0.20%	Pay	3/2/15		1
Deutsche Bank AG	MSCI Japan Retail Index		262,025	3 Month USD LIBOR minus 0.35%	Pay	3/2/15		(54	)
Goldman Sachs International	Goldman Sachs Custom Mortgage REIT Index	$	730	3 Month USD LIBOR minus 0.28%	Pay	8/21/14		(21	)
Goldman Sachs International	Goldman Sachs Custom Mortgage REIT Index		7,678	3 Month USD LIBOR minus 0.28%	Pay	8/21/14		(218	)
Goldman Sachs International	Goldman Sachs Custom Miners Index		911	3 Month USD LIBOR minus 0.51%	Pay	11/26/14		49
Goldman Sachs International	Goldman Sachs China Retail Custom Basket	HKD	14,109	3 Month HKD HIBOR minus 0.65%	Pay	12/12/14		(42	)
Goldman Sachs International	Goldman Sachs China Retail Custom Basket		11,051	3 Month HKD HIBOR minus 0.65%	Pay	12/15/14		(38	)
Goldman Sachs International	Goldman Sachs Custom Client Basket	$	8,449	3 Month USD LIBOR minus 0.23%	Pay	3/25/15		(92	)
JPMorgan Chase Bank NA	MSCI Daily Total Return Europe Net Food Beverage & Tobacco Index		12,467	3 Month USD LIBOR minus 0.22%	Pay	8/16/14		(655	)
JPMorgan Chase Bank NA	MSCI Daily Total Return Europe Net Household & Personal Products Index		1,709	3 Month USD LIBOR minus 0.39%	Pay	8/16/14		23
JPMorgan Chase Bank NA	JPMorgan Chase Custom Machinery Index		1,411	3 Month USD LIBOR minus 0.28%	Pay	11/26/14		(36	)
JPMorgan Chase Bank NA	MSCI China Banks Index	HKD	14,883	3 Month HKD HIBOR minus 0.30%	Pay	11/26/14		(49	)
JPMorgan Chase Bank NA	MSCI China Banks Index		11,710	3 Month HKD HIBOR minus 0.25%	Pay	11/26/14		(38	)
							$	(742	)

@    Value is less than $500.

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

*    Cleared swap agreement, the broker for which is Morgan Stanley & Co., LLC.

HIBOR  Hong Kong Interbank Offered Rate.

LIBOR  London Interbank Offered Rate.

NR    Not Rated.

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

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 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.
27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Common Stocks		55.4	%
Fixed Income Securities		30.3
Short-Term Investments		14.2
Other+		0.1
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 $171,464,000 with net unrealized appreciation of approximately $143,000. Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $82,000 and does not include open swap agreements with net unrealized depreciation of approximately $28,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Global Strategist Portfolio

Statement of Assets and Liabilities	March 31, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $346,496)	$	401,797
Investment in Securities of Affiliated Issuers, at Value (Cost $63,817)		63,804
Total Investments in Securities, at Value (Cost $410,313)		465,601
Foreign Currency, at Value (Cost $1,530)		1,532
Cash		—	@
Receivable for Variation Margin on Futures Contracts		6,666
Unrealized Appreciation on Swap Agreements		1,663
Interest Receivable		1,310
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		1,075
Receivable for Investments Sold		723
Dividends Receivable		636
Receivable for Portfolio Shares Sold		552
Tax Reclaim Receivable		157
Premium Paid on Open Swap Agreements		21
Receivable from Affiliate		3
Other Assets		32
Total Assets		479,971
Liabilities:
Payable for Investments Purchased		3,797
Unrealized Depreciation on Swap Agreements		1,721
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		1,157
Payable for Portfolio Shares Redeemed		976
Payable for Advisory Fees		475
Due to Broker		380
Payable for Sub Transfer Agency Fees — Class I		57
Payable for Sub Transfer Agency Fees — Class A		43
Payable for Sub Transfer Agency Fees — Class L		12
Payable for Shareholder Services Fees — Class A		80
Payable for Distribution and Shareholder Services Fees — Class L		18
Payable for Trustees' Fees and Expenses		79
Premium Received on Open Swap Agreements		72
Payable for Custodian Fees		66
Payable for Swap Agreements Termination		57
Payable for Professional Fees		42
Payable for Administration Fees		32
Payable for Transfer Agent Fees — Class A		8
Payable for Variation Margin on Swap Agreements		6
Other Liabilities		149
Total Liabilities		9,227
Net Assets	$	470,744
Net Assets Consist Of:
Paid-in-Capital	$	412,351
Accumulated Undistributed Net Investment Income		3,324
Accumulated Net Realized Loss		(269	)
Unrealized Appreciation (Depreciation) on:
Investments		55,301
Investments in Affiliates		(13	)
Futures Contracts		143
Swap Agreements		(28	)
Foreign Currency Forward Exchange Contracts		(82	)
Foreign Currency Translations		17
Net Assets	$	470,744

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Global Strategist Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2014 (000)
CLASS I:
Net Assets	$	65,346
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		3,920,662
Net Asset Value, Offering and Redemption Price Per Share	$	16.67
CLASS A:
Net Assets	$	376,430
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		22,684,849
Net Asset Value, Redemption Price Per Share	$	16.59
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.92
Maximum Offering Price Per Share	$	17.51
CLASS L:
Net Assets	$	28,968
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		1,751,617
Net Asset Value, Offering and Redemption Price Per Share	$	16.54

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Global Strategist Portfolio

Statement of Operations	Six Months Ended March 31, 2014 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $133 of Foreign Taxes Withheld)	$	3,879
Interest from Securities of Unaffiliated Issuers		2,786
Dividends from Securities of Affiliated Issuers (Note F)		14
Total Investment Income		6,679
Expenses:
Advisory Fees (Note B)		1,042
Shareholder Services Fees — Class A (Note D)		470
Distribution and Shareholder Services Fees — Class L (Note D)		109
Custodian Fees (Note E)		226
Sub Transfer Agency Fees — Class I		58
Sub Transfer Agency Fees — Class A		127
Sub Transfer Agency Fees — Class L		19
Administration Fees (Note C)		185
Shareholder Reporting Fees		111
Professional Fees		67
Pricing Fees		62
Transfer Agency Fees — Class I		3
Transfer Agency Fees — Class A		23
Transfer Agency Fees — Class L		3
Registration Fees		25
Trustees' Fees and Expenses		8
Other Expenses		14
Total Expenses		2,552
Reimbursement of Class Specific Expenses — Class I (Note B)		(61	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(7	)
Waiver of Advisory Fees (Note B)		(28	)
Rebate from Morgan Stanley Affiliate (Note F)		(25	)
Net Expenses		2,431
Net Investment Income		4,248
Realized Gain (Loss):
Investments Sold		8,514
Foreign Currency Forward Exchange Contracts		(3,850	)
Foreign Currency Transactions		26
Futures Contracts		2,751
Swap Agreements		(3,050	)
Net Realized Gain		4,391
Change in Unrealized Appreciation (Depreciation):
Investments		22,483
Investments in Affiliates		(3	)
Foreign Currency Forward Exchange Contracts		1,522
Foreign Currency Translations		(31	)
Futures Contracts		1,615
Swap Agreements		(2,372	)
Net Change in Unrealized Appreciation (Depreciation)		23,214
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		27,605
Net Increase in Net Assets Resulting from Operations	$	31,853

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Global Strategist Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2014 (unaudited) (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	4,248		$	7,327
Net Realized Gain		4,391			32,434
Net Change in Unrealized Appreciation (Depreciation)		23,214			14,274
Net Increase in Net Assets Resulting from Operations		31,853			54,035
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(714	)		(106	)
Net Realized Gain		(3,844	)		—
Class A:
Net Investment Income		(4,088	)		(53	)
Net Realized Gain		(26,774	)		—
Class H*:
Net Investment Income		—			(473	)**
Class L:
Net Investment Income		(173	)		(43	)
Net Realized Gain		(2,073	)		—
Total Distributions		(37,666	)		(675	)
Capital Share Transactions:(1)
Class I:
Subscribed		13,533			7,208
Issued due to a tax-free reorganization		—			23,950
Distributions Reinvested		4,536			105
Redeemed		(4,338	)		(8,420	)
Class A:
Subscribed		11,596			3,837
Distributions Reinvested		30,252			53
Conversion from Class H		—			345,585
Redeemed		(34,034	)		(7,166	)
Class H*:
Subscribed		—			3,245	**
Issued due to a tax-free reorganization		—			367,167
Distributions Reinvested		—			459	**
Conversion to Class A		—			(345,585	)**
Redeemed		—			(58,859	)**
Class L:
Subscribed		1,113			1,036
Issued due to a tax-free reorganization		—			35,288
Distributions Reinvested		2,203			42
Redeemed		(3,058	)		(10,816	)
Net Increase in Net Assets Resulting from Capital Share Transactions		21,803			357,129
Total Increase in Net Assets		15,990			410,489
Net Assets:
Beginning of Period		454,754			44,265
End of Period (Including Accumulated Undistributed Net Investment Income of $3,324 and $4,051)	$	470,744		$	454,754

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Global Strategist Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2014 (unaudited) (000)			Year Ended September 30, 2013 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		817			444
Shares Issued due to a tax-free reorganization		—			1,593
Shares Issued on Distributions Reinvested		284			7
Shares Redeemed		(257	)		(528	)
Net Increase in Class I Shares Outstanding		844			1,516
Class A:
Shares Subscribed		692			235
Shares Issued on Distributions Reinvested		1,903			3
Conversion from Class H		—			20,983
Shares Redeemed		(2,045	)		(436	)
Net Increase in Class A Shares Outstanding		550			20,785
Class H*:
Shares Subscribed		—			205	**
Shares Issued due to a tax-free reorganization		—			24,510
Shares Issued on Distributions Reinvested		—			30	**
Conversion to Class A		—			(21,000	)**
Shares Redeemed		—			(3,746	)**
Net Decrease in Class H Shares Outstanding		—			(1	)
Class L:
Shares Subscribed		68			63
Shares Issued due to a tax-free reorganization		—			2,356
Shares Issued on Distributions Reinvested		139			3
Shares Redeemed		(185	)		(693	)
Net Increase in Class L Shares Outstanding		22			1,729

*  Effective September 9, 2013, Class H shares converted into Class A shares.

**  For the period October 1, 2012 through September 6, 2013.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Global Strategist Portfolio

	Class I
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	16.96		$	15.22		$	12.50		$	12.55		$	11.66		$	11.87
Income (Loss) from Investment Operations:
Net Investment Income†		0.18			0.35			0.14			0.18			0.21			0.16
Net Realized and Unrealized Gain (Loss)		0.99			1.44			2.79			(0.02	)		0.91			0.17
Total from Investment Operations		1.17			1.79			2.93			0.16			1.12			0.33
Distributions from and/or in Excess of:
Net Investment Income		(0.23	)		(0.05	)		(0.21	)		(0.21	)		(0.23	)		(0.54	)
Net Realized Gain		(1.23	)		—			—			—			—			—
Total Distributions		(1.46	)		(0.05	)		(0.21	)		(0.21	)		(0.23	)		(0.54	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	16.67		$	16.96		$	15.22		$	12.50		$	12.55		$	11.66
Total Return++		7.31	%#		11.79	%		23.66	%		1.07	%		9.77	%		3.45	%**
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	65,346		$	52,170		$	23,756		$	25,192		$	22,706		$	45,567
Ratio of Expenses to Average Net Assets (1)		0.73	%+††*		0.69	%+		1.37	%+		1.30	%+††		0.89	%+††		0.67	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			0.76	%+		N/A			N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets (1)		2.15	%+††*		2.18	%+		1.01	%+		1.35	%+††		1.73	%+††		1.56	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.02	%		0.01	%		0.01	%		0.04	%
Portfolio Turnover Rate		30	%#		107	%		168	%		164	%		176	%		171	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.96	%††*		0.82	%		N/A			N/A			N/A			N/A
Net Investment Income to Average Net Assets		1.92	%††*		2.05	%		N/A			N/A			N/A			N/A

†  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%.

+  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.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Global Strategist Portfolio

	Class A
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	16.88		$	15.18		$	12.47		$	12.52		$	11.63		$	11.84
Income from Investment Operations:
Net Investment Income†		0.15			0.42			0.10			0.15			0.18			0.13
Net Realized and Unrealized Gain (Loss)		0.98			1.32			2.79			(0.03	)		0.91			0.17
Total from Investment Operations		1.13			1.74			2.89			0.12			1.09			0.30
Distributions from and/or in Excess of:
Net Investment Income		(0.19	)		(0.04	)		(0.18	)		(0.17	)		(0.20	)		(0.51	)
Net Realized Gain		(1.23	)		—			—			—			—			—
Total Distributions		(1.42	)		(0.04	)		(0.18	)		(0.17	)		(0.20	)		(0.51	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	16.59		$	16.88		$	15.18		$	12.47		$	12.52		$	11.63
Total Return++		7.08	%#		11.49	%		23.33	%		0.83	%		9.52	%		3.15	%**
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	376,430		$	373,559		$	20,487		$	16,857		$	17,169		$	18,290
Ratio of Expenses to Average Net Assets (1)		1.06	%+††*		0.47	%+^		1.64	%+		1.55	%+††		1.14	%+††		1.03	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			1.03	%+^		N/A			N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets (1)		1.82	%+††*		2.60	%+^		0.69	%+		1.10	%+††		1.48	%+††		1.27	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.02	%		0.01	%		0.01	%		0.04	%
Portfolio Turnover Rate		30	%#		107	%		168	%		164	%		176	%		171	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.08	%††*		1.11	%		N/A			N/A			N/A			1.08	%+
Net Investment Income to Average Net Assets		1.80	%††*		1.96	%		N/A			N/A			N/A			1.22	%+

†  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 A shares would have been approximately 2.35%.

+  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.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.09% for Class A shares. Prior to September 16, 2013, the maximum ratio was 0.99% for Class A shares.

#  Not Annualized.

*  Annualized.

The accompanying notes are an integral part of the financial statements.
35

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Global Strategist Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 31, 2014 (unaudited)			Year Ended September 30, 2013			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	16.78		$	15.15		$	14.42
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		0.11			0.23			(0.02	)
Net Realized and Unrealized Gain		0.98			1.42			0.78
Total from Investment Operations		1.09			1.65			0.76
Distributions from and/or in Excess of:
Net Investment Income		(0.10	)		(0.02	)		(0.03	)
Net Realized Gain		(1.23	)		—			—
Total Distributions		(1.33	)		(0.02	)		(0.03	)
Net Asset Value, End of Period	$	16.54		$	16.78		$	15.15
Total Return++		6.88	%#		10.91	%		5.30	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	28,968		$	29,025		$	11
Ratio of Expenses to Average Net Assets (1)		1.58	%+††*		1.42	%+^^		2.39	%+*
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			1.49	%+^^		N/A
Ratio of Net Investment Income (Loss) to Average Net Assets (1)		1.30	%+††*		1.44	%+^^		(0.29	)%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.03	%*
Portfolio Turnover Rate		30	%#		107	%		168	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.65	%††*		1.54	%		N/A
Net Investment Income to Average Net Assets		1.23	%††*		1.32	%		N/A

^  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.

+  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.

^^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.59% for Class L shares. Prior to September 16, 2013, the maximum ratio was 1.49% for Class L shares.

#  Not Annualized.

*  Annualized.

The accompanying notes are an integral part of the financial statements.
36

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 three classes of shares — Class I, Class A 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 September 30, 2013, are as follows:

Net investment income(1)	$	11,938,000
Net gain realized and unrealized gain(2)	$	64,661,000
Net increase (decrease) in net assets resulting from operations	$	76,599,000

⁽¹⁾ Approximately $7,327,000 as reported, plus approximately $2,820,000 Global Strategist Fund premerger, plus approximately $1,791,000 of estimated pro-forma eliminated expenses.

⁽²⁾ Approximately $46,708,000 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 September 30, 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) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (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 if such exchange reports an official closing price), if there were no sales on a given day, the security is valued at

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 its latest reported sales price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) futures are valued at the latest price published by the commodities exchange on which they trade; (5) swaps are marked-to-market daily based upon quotations from market makers; (6) 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 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; (7) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (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 taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

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. 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

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Semi-Annual Report — March 31, 2014

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

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 31, 2014.

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	$	—	$	43	$	—	$	43
Agency Fixed Rate Mortgages		—		10,602		—		10,602
Asset-Backed Securities		—		956		—		956

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Fixed Income Securities (cont'd)
Collateralized Mortgage Obligations — Agency Collateral Series	$	—	$	2,549	$	—	$	2,549
Commercial Mortgage-Backed Securities		—		4,008		—		4,008
Corporate Bonds		—		35,404		—		35,404
Mortgages — Other		—		1,446		—		1,446
Sovereign		—		73,741		—		73,741
U.S. Treasury Securities		—		12,514		—		12,514
Total Fixed Income Securities		—		141,263		—		141,263
Common Stocks
Aerospace & Defense		2,526		1,063		—		3,589
Air Freight & Logistics		816		424		—		1,240
Airlines		226		183		—		409
Auto Components		452		1,164		—		1,616
Automobiles		628		5,637		—		6,265
Banks		10,980		25,823		—		36,803
Beverages		2,686		3,645		—		6,331
Biotechnology		2,309		553		—		2,862
Building Products		42		945		—		987
Capital Markets		2,791		2,452		—		5,243
Chemicals		2,195		4,297		—		6,492
Commercial Banks		108		145		—		253
Commercial Services & Supplies		711		690		—		1,401
Communications Equipment		2,090		499		—		2,589
Computers & Peripherals		343		—		—		343
Construction & Engineering		320		972		—		1,292
Construction Materials		211		431		—		642
Consumer Finance		986		—		—		986
Containers & Packaging		171		120		—		291
Distributors		10		—		—		10
Diversified Consumer Services		121		—		—		121
Diversified Financial Services		1,476		1,714		—		3,190
Diversified Telecommunication Services		2,800		4,993		—		7,793
Electric Utilities		1,989		2,951		—		4,940
Electrical Equipment		1,169		1,898		—		3,067
Electronic Equipment, Instruments & Components		478		1,356		—		1,834
Energy Equipment & Services		2,552		721		—		3,273
Food & Staples Retailing		4,617		3,344		—		7,961
Food Products		2,053		6,121		—		8,174
Gas Utilities		23		772		—		795
Health Care Equipment & Supplies		2,861		662		—		3,523
Health Care Providers & Services		2,792		325		—		3,117
Health Care Technology		113		—		—		113
Hotels, Restaurants & Leisure		2,128		1,126		—		3,254

39

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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)
Household Durables	$	575	$	518	$	—	$	1,093
Household Products		3,359		1,509		—		4,868
Independent Power Producers & Energy Traders		40		142		—		182
Industrial Conglomerates		1,125		2,023		—		3,148
Information Technology Services		4,105		614		—		4,719
Insurance		1,516		5,904		—		7,420
Internet & Catalog Retail		970		133		—		1,103
Internet Software & Services		2,557		93		—		2,650
Leisure Products		117		—		—		117
Life Sciences Tools & Services		746		106		—		852
Machinery		2,129		2,954		—		5,083
Marine		—		421		—		421
Media		5,221		1,547		—		6,768
Metals & Mining		1,100		4,597		—		5,697
Multi-Utilities		1,414		1,813		—		3,227
Multi-line Retail		320		338		—		658
Oil, Gas & Consumable Fuels		11,859		9,154		—		21,013
Paper & Forest Products		49		255		—		304
Personal Products		307		996		—		1,303
Pharmaceuticals		5,023		10,991		—		16,014
Professional Services		588		825		—		1,413
Real Estate Investment Trusts (REITs)		2,872		1,512		—		4,384
Real Estate Management & Development		603		1,986		—		2,589
Road & Rail		1,889		1,469		—		3,358
Semiconductors & Semiconductor Equipment		2,491		746		—		3,237
Software		3,480		903		—		4,383
Specialty Retail		1,989		1,560		—		3,549
Tech Hardware, Storage & Peripherals		4,738		704		—		5,442
Textiles, Apparel & Luxury Goods		544		1,974		—		2,518
Thrifts & Mortgage Finance		77		—		—		77
Tobacco		1,822		2,528		—		4,350
Trading Companies & Distributors		231		1,164		—		1,395
Transportation Infrastructure		—		641		—		641
Water Utilities		—		3		—		3
Wireless Telecommunication Services		454		2,636		—		3,090
Total Common Stocks		120,083		137,785		—		257,868
Investment Companies		441		—		—		441
Rights		57		4		—		61
Short-Term Investments
Investment Company		63,691		—		—		63,691
U.S. Treasury Securities		—		2,277		—		2,277
Total Short-Term Investments		63,691		2,277		—		65,968

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Foreign Currency Forward Exchange Contracts	$	—		$	1,075		$	—	$	1,075
Futures Contracts		642			—			—		642
Credit Default Swap Agreements		—			4			—		4
Interest Rate Swap Agreements		—			832			—		832
Total Return Swap Agreements		—			889			—		889
Total Assets		184,914			284,129			—		469,043
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(1,157	)		—		(1,157	)
Futures Contracts		(499	)		—			—		(499	)
Credit Default Swap Agreements		—			(42	)		—		(42	)
Interest Rate Swap Agreements		—			(80	)		—		(80	)
Total Return Swap Agreements		—			(1,631	)		—		(1,631	)
Total Liabilities		(499	)		(2,910	)		—		(3,409	)
Total	$	184,415		$	281,219		$	—	$	465,634

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 31, 2014, securities with a total value of approximately $77,000 transferred from Level 1 to Level 2. Securities that were valued using unadjusted quoted prices at September 30, 2013 were valued using significant other inputs at March 31, 2014.

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

	Right (000)
Beginning Balance	$	—	@
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate Action		—
Change in unrealized appreciation/depreciation		(—	@)
Realized gains (losses)		—
Ending Balance	$	—
Net change in unrealized appreciation/depreciation from investments still held as of March 31, 2014	$	—

@  Value is less than $500.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

3.  Foreign Currency Translation and Foreign Investments: The books and records of the Portfolio are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars 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 Portfolio are presented at the foreign exchange rates and market values at the close of the period, the Portfolio 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 Portfolio 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 forward 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 Portfolio'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.

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 Portfolio values the foreign shares at the closing exchange price of the local shares.

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, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. 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 the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. 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

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 the risk of 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, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index 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 contracts 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 contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts 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. There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with whom the Portfolio has open positions in the futures contract.

Swaps: The Portfolio may enter into over-the-counter ("OTC") swap contracts or cleared swap transactions. A swap contract 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, indices, reference rates, currencies or other instruments. Typically 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 contract 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 party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Portfolio's ultimate counterparty is a clearinghouse rather than a bank, dealer or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring 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 commonly referred to as credit default swaps. The Portfolio may be either the buyer or seller in a credit default swap. Where the Portfolio is the buyer of a credit default swap contract, it would typically be entitled to receive the par (or other agreed-upon)

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

value of a referenced debt obligation from the counterparty to the contract only in the event of a default or similar event by the issuer of the debt obligation. If no default occurs, the Portfolio would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Portfolio is the seller of a credit default swap contract, it typically 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 the default or similar event by the issuer of the referenced debt obligation. The use of credit default swaps could result in losses to the Portfolio if the Adviser fails to correctly evaluate the creditworthiness of the issuer 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. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

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 Forward 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 securities or foreign currencies at a future date. A foreign currency forward exchange contract ("currency contract") is a negotiated agreement between the contracting parties to exchange a specified amount of currency at a specified future time

at a specified rate. The rate 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. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it matures. 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 additional risk to the extent 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 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

43

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

effects on the Portfolio's financial position and results of operations.

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 31, 2014.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contracts	Unrealized Appreciation on Foreign Currency Forward Exchange Contracts	Currency Risk	$	1,075
Futures Contracts	Variation Margin	Commodity Risk		129	(a)
Futures Contracts	Variation Margin	Currency Risk		50	(a)
Futures Contracts	Variation Margin	Equity Risk		281	(a)
Futures Contracts	Variation Margin	Interest Rate Risk		182	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Credit Risk		4
Swap Agreements	Unrealized Appreciation on Swap Agreements	Equity Risk		889
Swap Agreements	Unrealized Appreciation on Swap Agreements	Interest Rate Risk		770
Swap Agreements	Variation Margin	Interest Rate Risk		62	(a)
Total			$	3,442
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contracts	Unrealized Depreciation on Foreign Currency Forward Exchange Contracts	Currency Risk	$	(1,157	)
Futures Contracts	Variation Margin	Equity Risk		(315	)(a)
Futures Contracts	Variation Margin	Interest Rate Risk		(184	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(42	)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Equity Risk		(1,631	)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Interest Rate Risk		(48	)
Swap Agreements	Variation Margin	Interest Rate Risk		(32	)(a)
Total			$	(3,409	)

(a) This amount represents the cumulative appreciation (depreciation) 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 31, 2014 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(3,850	)
Commodity Risk	Futures Contracts		(232	)
Equity Risk	Futures Contracts		3,919
Interest Rate Risk	Futures Contracts		(936	)
Credit Risk	Swap Agreements		(14	)
Equity Risk	Swap Agreements		(2,799	)
Interest Rate Risk	Swap Agreements		(237	)
Total		$	(4,149	)

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	1,522
Commodity Risk	Futures Contracts		129
Currency Risk	Futures Contracts		206
Equity Risk	Futures Contracts		1,752
Interest Rate Risk	Futures Contracts		(472	)
Credit Risk	Swap Agreements		(38	)
Equity Risk	Swap Agreements		(2,420	)
Interest Rate Risk	Swap Agreements		37
Variation Margin	Swap Agreements		49
Total		$	765

At March 31, 2014, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	1,075	$	(1,157	)
Swap Agreements		1,663		(1,721	)
Total	$	2,738	$	(2,878	)

(b) Excludes exchange-traded derivatives.

(c) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

The Portfolio typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreements, the Portfolio typically may offset with the counterparty certain derivative financial instrument's payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swaps, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Portfolio and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party. In the event of a default by a Master Agreements

44

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

counterparty, the return of collateral with market value in excess of the Portfolio's net liability, held by the defaulting party, may be delayed or denied.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2014.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Received(d) (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	160	$	(6	)	$	—		$	154
Bank of New York Mellon		2		—			—			2
Barclays Bank PLC		1,002		(266	)		(290	)		446
Commonwealth Bank of Australia		23		(23	)		—			0
Deutsche Bank AG		226		(194	)		(32	)		0
Deutsche Bank AG London		10		(10	)		—			0
Goldman Sachs International		769		(250	)		—			519
HSBC Bank PLC		13		(10	)		—			3
JPMorgan Chase Bank NA		34		(34	)		—			0
Royal Bank of Canada		88		—			—			88
Royal Bank of Scotland PLC		227		(10	)		—			217
UBS AG		176		(176	)		—			0
Wells Fargo Bank NA		8		(8	)		—			0
Total	$	2,738	$	(987	)	$	(322	)	$	1,429

(d) In some instances, the actual collateral received may be more than the amount shown here due to overcollateralization.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Bank of America NA	$	6	$	(6	)	$	—	$	0
Bank of Montreal		26		—			—		26
Barclays Bank PLC		266		(266	)		—		0
Commonwealth Bank of Australia		317		(23	)		—		294
Deutsche Bank AG		194		(194	)		—		0
Deutsche Bank AG London		265		(10	)		—		255
Goldman Sachs International		459		(250	)		—		209
HSBC Bank PLC		10		(10	)		—		0
JPMorgan Chase Bank NA		883		(34	)		—		849
Royal Bank of Scotland PLC		10		(10	)		—		0
State Street Bank and Trust Co.		35		—			—		35
UBS AG		358		(176	)		—		182
Wells Fargo Bank NA		49		(8	)		—		41
Total	$	2,878	$	(987	)	$	—	$	1,891

For the six months ended March 31, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	318,978,000
Futures Contracts:
Average monthly original value	$	229,650,000
Swap Agreements:
Average monthly notional amount	$	159,636,000

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 a month or more 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 annually. 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

45

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 — distribution, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

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 year 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.

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, 1.09% for Class A shares and 1.59% 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 Trustees act to discontinue all or a portion of such waivers and/or expense reimbursements when they deem such action is appropriate. For the six months ended March 31, 2014, approximately $28,000 of advisory fees were waived and approximately $68,000 of other expenses were reimbursed by the Adviser 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 Portfolio.

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 a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, 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 A 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 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 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 A and Class L shares.

E. 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.

F. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $85,132,000 and $138,472,000, respectively. For the six months ended March 31, 2014, purchases and sales of long-term U.S. Government securities were approximately $39,586,000 and $36,898,000, respectively.

46

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 31, 2014, advisory fees paid were reduced by approximately $24,000 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 31, 2014 is as follows:

Value September 30, 2013 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2014 (000)
$	26,991	$	118,897	$	82,197	$	11	$	63,691

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 31, 2014, 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 $126,000 at March 31, 2014.

A summary of the Portfolio's transactions in shares of the Emerging Markets Portfolio during the six months ended March 31, 2014 is as follows:

Value September 30, 2013 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2014 (000)
$	112	$	3	$	—	$	3	$	113

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.

G. 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.

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, 2013, 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 years 2013 and 2012 was as follows:

2013 Distributions Paid From: Ordinary Income (000)		2012 Distributions Paid From: Ordinary Income (000)
$	675	$	606

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, paydown adjustments,

47

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

premium amortization, merger adjustments and tax adjustments on passive foreign investment companies sold by the Portfolio, resulted in the following reclassifications among the components of net assets at September 30, 2013:

Accumulated Undistributed Net Investment Income (000)			Accumulated Undistributed Net Realized Gain (000)			Paid-in Capital (000)
$	(3,197	)	$	(2,389	)	$	5,586

At September 30, 2013, 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)
$	18,487	$	19,178

At March 31, 2014, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $65,674,000 and the aggregate gross unrealized depreciation is approximately $10,386,000 resulting in net unrealized appreciation of approximately $55,288,000.

At September 30, 2013, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	607	September 30, 2018

Based on certain provisions in the Internal Revenue Code, various limitations regarding the future utilization of these carryforwards may apply as a result of the Portfolio's merger with Global Strategist Fund in October 2012.

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, 2013, the Portfolio utilized approximately $1,222,000 of its capital loss carryforward.

H. Other: At March 31, 2014, 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 35% for Class I shares.

I. Accounting Pronouncement: In June 2013, FASB issued Accounting Standards Update 2013-08 Financial Services — Investment Companies (Topic 946) — Amendments to the Scope, Measurement, and Disclosure Requirements ("ASU 2013-08") which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. ASU 2013-08 sets forth a methodology for determining whether an entity should be characterized as an investment company and prescribes fair value accounting for an investment company's non-controlling ownership interest in another investment company. FASB has determined that a fund registered under the Act automatically meets ASU 2013-08's criteria for an investment company. Although still evaluating the potential impacts of ASU 2013-08 to the Portfolio, management expects that the impact of the Portfolio's adoption will be limited to additional financial statement disclosures.

48

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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.

49

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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.

50

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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:

  Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

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.

51

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Trustee and Officer Information (unaudited)

Trustees

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

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

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

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 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.

52

(This Page has been left blank intentionally.)

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

© 2014 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTGSSAN
910982 EXP 5.31.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Mid Cap Growth Portfolio

Semi-Annual Report

March 31, 2014

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	7
Statement of Operations	9
Statements of Changes in Net Assets	10
Financial Highlights	12
Notes to Financial Statements	16
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 statement of additional information (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.

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 this Portfolio. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 (the "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,

John H. Gernon
President and Principal Executive Officer

April 2014

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014 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.

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 10/1/13		Actual Ending Account Value 3/31/14		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	$	1,087.30	$	1,021.44	$	3.64	$	3.53		0.70	%
Mid Cap Growth Portfolio Class A		1,000.00		1,085.80		1,020.14		4.99		4.84		0.96
Mid Cap Growth Portfolio Class L		1,000.00		1,082.90		1,017.45		7.79		7.54		1.50
Mid Cap Growth Portfolio Class IS		1,000.00		1,087.80		1,021.94		3.12		3.03		0.60

*  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 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments

Mid Cap Growth Portfolio

	Shares		Value (000)
Common Stocks (98.2%)
Advertising Agencies (0.9%)
Aimia, Inc. (Canada)		4,223,560	$	67,814
Aerospace (2.5%)
TransDigm Group, Inc. (a)		1,080,011		200,018
Automobiles (2.8%)
Tesla Motors, Inc. (a)(b)		1,072,517		223,566
Back Office Support, HR & Consulting (5.4%)
IHS, Inc., Class A (b)		1,543,399		187,523
Qualicorp SA (Brazil) (b)		6,140,706		62,110
Verisk Analytics, Inc., Class A (b)		2,890,189		173,296
				422,929
Beverage: Soft Drinks (2.4%)
Keurig Green Mountain, Inc.		947,988		100,098
Monster Beverage Corp. (b)		1,272,324		88,363
				188,461
Biotechnology (0.7%)
Alnylam Pharmaceuticals, Inc. (b)		297,296		19,961
Intercept Pharmaceuticals, Inc. (b)		33,334		10,993
Seattle Genetics, Inc. (b)		446,363		20,336
				51,290
Building Materials (1.2%)
Martin Marietta Materials, Inc. (a)		719,789		92,385
Computer Services, Software & Systems (24.8%)
Akamai Technologies, Inc. (b)		3,452,972		200,998
FireEye, Inc. (b)		2,577,369		158,689
Gartner, Inc. (b)		2,971,406		206,334
Groupon, Inc. (b)		16,067,742		125,971
LinkedIn Corp., Class A (a)(b)		1,046,931		193,619
NetSuite, Inc. (b)		679,547		64,441
Palo Alto Networks, Inc. (b)		619,452		42,494
Qihoo 360 Technology Co., Ltd. ADR (China) (b)		1,548,922		154,242
ServiceNow, Inc. (b)		1,421,320		85,166
Solera Holdings, Inc.		3,714,325		235,265
Splunk, Inc. (b)		1,170,685		83,692
Tableau Software, Inc., Class A (b)		210,011		15,978
Twitter, Inc. (a)(b)		2,529,743		118,063
Workday, Inc., Class A (b)		925,879		84,653
Yandex N.V., Class A (Russia) (b)		2,834,375		85,570
Youku Tudou, Inc. ADR (China) (b)		3,530,451		98,994
				1,954,169
Computer Technology (0.4%)
Stratasys Ltd. (a)(b)		296,691		31,476
Consumer Lending (2.3%)
FleetCor Technologies, Inc. (b)		1,545,812		177,923
Consumer Services: Miscellaneous (1.5%)
Dropbox, Inc. (b)(c)(d)(e) (acquisition cost — $33,909; acquired 5/1/12)		3,747,173		71,575
MercadoLibre, Inc. (Brazil) (a)		495,163		47,095
				118,670

	Shares		Value (000)
Diversified Retail (2.8%)
Dollar Tree, Inc. (b)		3,125,475	$	163,087
zulily, Inc., Class A (a)(b)		1,146,396		57,538
				220,625
Electronic Components (0.7%)
3D Systems Corp. (a)(b)		888,542		52,557
Electronic Entertainment (0.6%)
Zynga, Inc., Class A (a)(b)		10,459,277		44,975
Energy Equipment (0.4%)
SolarCity Corp. (a)(b)		510,727		31,982
Entertainment (0.5%)
Legend Pictures LLC Ltd. (b)(c)(d)(e) (acquisition cost — $38,812; acquired 3/8/12)		36,302		42,332
Environmental, Maintenance & Security Services (3.2%)
Intertek Group PLC (United Kingdom)		3,581,274		183,791
Stericycle, Inc. (b)		613,303		69,683
				253,474
Financial Data & Systems (2.4%)
MSCI, Inc. (b)		4,445,649		191,252
Foods (4.8%)
McCormick & Co., Inc. (a)		2,214,952		158,901
Mead Johnson Nutrition Co. (a)		2,651,944		220,482
				379,383
Health Care Services (3.4%)
athenahealth, Inc. (b)		1,683,431		269,753
Hotel/Motel (2.7%)
Edenred (France)		6,648,777		208,804
Insurance: Property-Casualty (4.1%)
Arch Capital Group Ltd. (b)		2,757,037		158,640
Progressive Corp. (The) (a)		6,690,515		162,044
				320,684
Leisure Time (0.9%)
TripAdvisor, Inc. (b)		801,304		72,590
Machinery: Industrial (1.2%)
Colfax Corp. (a)(b)		1,287,194		91,816
Medical Equipment (9.7%)
Illumina, Inc. (b)		3,377,829		502,148
Intuitive Surgical, Inc. (a)(b)		596,153		261,109
				763,257
Oil: Crude Producers (0.9%)
Range Resources Corp. (a)		901,138		74,767
Pharmaceuticals (3.2%)
Endo International PLC (b)		2,847,086		195,453
Ironwood Pharmaceuticals, Inc. (b)		3,539,459		43,606
Pharmacyclics, Inc. (a)(b)		145,650		14,597
				253,656
Radio & TV Broadcasters (0.5%)
Pandora Media, Inc. (b)		1,231,714		37,346

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

	Shares		Value (000)
Restaurants (4.6%)
Dunkin' Brands Group, Inc.		3,828,189	$	192,099
Panera Bread Co., Class A (b)		975,578		172,160
				364,259
Specialty Retail (0.4%)
ASOS PLC (United Kingdom) (b)		393,477		34,061
Telecommunications Equipment (2.9%)
Motorola Solutions, Inc.		3,601,708		231,554
Textiles, Apparel & Shoes (3.4%)
Carter's, Inc.		2,443,341		189,725
Moncler SpA (Italy) (b)		4,723,442		80,848
				270,573
Total Common Stocks (Cost $5,655,792)				7,738,401
Convertible Preferred Stocks (0.1%)
Computer Services, Software & Systems (0.0%)
Peixe Urbano, Inc. (Brazil) (b)(c)(d)(e) (acquisition cost — $18,817; acquired 12/2/11)		571,575		692
Consumer Services: Miscellaneous (0.1%)
Dropbox, Inc. Series A (b)(c)(d)(e) (acquisition cost — $3,365; acquired 5/25/12)		371,814		7,102
Total Convertible Preferred Stocks (Cost $22,182)				7,794
Preferred Stocks (0.6%)
Computer Services, Software & Systems (0.4%)
Palantir Technologies, Inc. Series G (b)(c)(d)(e) (acquisition cost — $11,738; acquired 7/19/12)		3,835,908		23,514
Palantir Technologies, Inc. Series H (b)(c)(d)(e) (acquisition cost — $3,519; acquired 10/25/13)		1,002,564		6,146
Palantir Technologies, Inc. Series H1 (b)(c)(d)(e) (acquisition cost — $3,519; acquired 10/25/13)		1,002,564		6,146
				35,806
Diversified Retail (0.2%)
Flipkart Online Services Pvt Ltd. Series D (India) (b)(c)(d)(e) (acquisition cost — $13,007; acquired 10/4/13)		566,827		13,428
Total Preferred Stocks (Cost $31,783)				49,234
	Notional Amount
Call Options Purchased (0.1%)
Foreign Currency Options (0.1%)
USD/CNY December 2014@ CNY 6.50		85,254,479		240
USD/CNY December 2014@ CNY 6.50		1,060,534,647		3,033
USD/CNY December 2014@ CNY 6.50		1,194,070,384		3,454
Total Call Options Purchased (Cost $7,364)				6,727

	Shares		Value (000)
Short-Term Investments (7.7%)
Securities held as Collateral on Loaned Securities (6.3%)
Investment Company (4.8%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F)		382,768,985	$	382,769
	Face Amount (000)
Repurchase Agreements (1.5%)
Barclays Capital, Inc., (0.06%, dated 3/31/14, due 4/1/14; proceeds $28,465; fully collateralized by a U.S. Government Obligation; 1.50% due 8/31/18; valued at $29,034)	$	28,465		28,465
BNP Paribas Securities Corp., (0.05%, dated 3/31/14, due 4/1/14; proceeds $28,013; fully collateralized by a U.S. Government Obligation; 0.88% due 2/28/17; valued at $28,574)		28,013		28,013
Merrill Lynch & Co., Inc., (0.07%, dated 3/31/14, due 4/1/14; proceeds $59,223; fully collateralized by various U.S. Government Agencies; 3.00% - 4.50% due 3/1/26 - 10/1/43; valued at $60,407)		59,223		59,223
				115,701
Total Securities held as Collateral on Loaned Securities (Cost $498,470)				498,470
	Shares
Investment Company (1.4%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F) (Cost $105,823)		105,823,100		105,823
Total Short-Term Investments (Cost $604,293)				604,293
Total Investments (106.7%) (Cost $6,321,414) Including $599,279 of Securities Loaned (f)				8,406,449
Liabilities in Excess of Other Assets (-6.7%)				(526,763	)
Net Assets (100.0%)			$	7,879,686

(a)  All or a portion of this security was on loan at March 31, 2014.

(b)  Non-income producing security.

(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 amounts to approximately $170,935,000 and represents 2.2% of net assets.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

(d)  At March 31, 2014, the Portfolio held fair valued securities valued at approximately $170,935,000, representing 2.2% 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.

(e)  Security has been deemed illiquid at March 31, 2014.

(f)  The approximate fair value and percentage of net assets, $507,504,000 and 6.4%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

ADR  American Depositary Receipt.

CNY  —  Chinese Yuan Renminbi

USD  —  United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		59.8	%
Computer Services, Software & Systems		25.2
Medical Equipment		9.7
Back Office Support, HR & Consulting		5.3
Total Investments		100.0	%

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2014.

**  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 31, 2014 (unaudited)

Mid Cap Growth Portfolio

Statement of Assets and Liabilities	March 31, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $5,832,822)	$	7,917,857
Investment in Security of Affiliated Issuer, at Value (Cost $488,592)		488,592
Total Investments in Securities, at Value (Cost $6,321,414)		8,406,449
Foreign Currency, at Value (Cost $552)		552
Receivable for Portfolio Shares Sold		9,776
Dividends Receivable		2,193
Receivable from Affiliate		10
Other Assets		323
Total Assets		8,419,303
Liabilities:
Collateral on Securities Loaned, at Value		498,470
Payable for Portfolio Shares Redeemed		21,237
Payable for Advisory Fees		9,828
Due to Broker		6,830
Payable for Sub Transfer Agency Fees		782
Payable for Sub Transfer Agency Fees — Class I		634
Payable for Sub Transfer Agency Fees — Class A		378
Payable for Sub Transfer Agency Fees — Class L		4
Payable for Administration Fees		562
Payable for Shareholder Services Fees — Class A		487
Payable for Distribution and Shareholder Services Fees — Class L		12
Payable for Trustees' Fees and Expenses		43
Payable for Custodian Fees		36
Payable for Professional Fees		36
Payable for Transfer Agent Fees		2
Payable for Transfer Agent Fees — Class A		7
Payable for Transfer Agent Fees — Class L		2
Payable for Transfer Agent Fees — Class IS		1
Other Liabilities		266
Total Liabilities		539,617
Net Assets	$	7,879,686
Net Assets Consist Of:
Paid-in-Capital	$	5,512,174
Distributions in Excess of Net Investment Income		(5,146	)
Accumulated Net Realized Gain		287,622
Unrealized Appreciation (Depreciation) on:
Investments		2,085,035
Foreign Currency Translations		1
Net Assets	$	7,879,686

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Mid Cap Growth Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2014 (000)
CLASS I:
Net Assets	$	5,343,104
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		117,826,592
Net Asset Value, Offering and Redemption Price Per Share	$	45.35
CLASS A:
Net Assets	$	2,170,518
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		50,067,725
Net Asset Value, Redemption Price Per Share	$	43.35
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	2.40
Maximum Offering Price Per Share	$	45.75
CLASS L:
Net Assets	$	18,224
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		424,275
Net Asset Value, Offering and Redemption Price Per Share	$	42.95
CLASS IS:
Net Assets	$	347,840
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		7,664,641
Net Asset Value, Offering and Redemption Price Per Share	$	45.38
(1) Including: Securities on Loan, at Value:	$	599,279

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Mid Cap Growth Portfolio

Statement of Operations	Six Months Ended March 31, 2014 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $443 of Foreign Taxes Withheld)	$	23,821
Income from Securities Loaned — Net		2,917
Dividends from Security of Affiliated Issuer (Note F)		62
Total Investment Income		26,800
Expenses:
Advisory Fees (Note B)		19,364
Sub Transfer Agency Fees — Class I		2,568
Sub Transfer Agency Fees — Class A		1,191
Sub Transfer Agency Fees — Class L		10
Administration Fees (Note C)		3,098
Shareholder Services Fees — Class A (Note D)		2,758
Distribution and Shareholder Services Fees — Class L (Note D)		67
Shareholder Reporting Fees		436
Custodian Fees (Note E)		186
Registration Fees		91
Trustees' Fees and Expenses		83
Professional Fees		77
Transfer Agency Fees — Class I		14
Transfer Agency Fees — Class A		33
Transfer Agency Fees — Class L		3
Transfer Agency Fees — Class IS		1
Pricing Fees		2
Other Expenses		76
Total Expenses		30,058
Rebate from Morgan Stanley Affiliate (Note F)		(139	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Net Expenses		29,918
Net Investment Loss		(3,118	)
Realized Gain:
Investments Sold		299,958
Foreign Currency Transactions		10
Net Realized Gain		299,968
Change in Unrealized Appreciation (Depreciation):
Investments		325,520
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		625,488
Net Increase in Net Assets Resulting from Operations	$	622,370

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Mid Cap Growth Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2014 (unaudited) (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	(3,118	)	$	12,226
Net Realized Gain		299,968			463,569
Net Change in Unrealized Appreciation (Depreciation)		325,520			1,214,780
Net Increase in Net Assets Resulting from Operations		622,370			1,690,575
Distributions from and/or in Excess of:
Class I:
Net Investment Income		—			(13,404	)
Net Realized Gain		(310,450	)		(133,898	)
Class A:
Net Investment Income		—			(4,830	)
Net Realized Gain		(128,582	)		(59,176	)
Class H*:
Net Investment Income		—			(731	)**
Net Realized Gain		—			(8,367	)**
Class L:
Net Investment Income		—			(35	)
Net Realized Gain		(1,046	)		(564	)
Class IS:
Net Realized Gain		(1	)		—
Total Distributions		(440,079	)		(221,005	)
Capital Share Transactions:(1)
Class I:
Subscribed		551,428			1,139,503
Issued due to a tax-free reorganization		—			2,947
Distributions Reinvested		297,048			139,068
Redeemed		(828,858	)		(1,329,591	)
Class A:
Subscribed		192,483			235,049
Distributions Reinvested		126,784			63,274
Conversion from Class H		—			265,546
Redeemed		(368,712	)		(632,952	)
Class H*:
Subscribed		—			12,590	**
Issued due to a tax-free reorganization		—			241,247
Distributions Reinvested		—			8,783	**
Conversion to Class A		—			(265,546	)**
Redeemed		—			(51,044	)**
Class L:
Subscribed		1,289			314
Issued due to a tax-free reorganization		—			16,919
Distributions Reinvested		1,024			581
Redeemed		(1,602	)		(4,686	)
Class IS:
Subscribed		365,679			10	***
Redeemed		(2,301	)		—
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		334,262			(157,988	)
Total Increase in Net Assets		516,553			1,311,582
Net Assets:
Beginning of Period		7,363,133			6,051,551
End of Period (Including Distributions in Excess of Net Investment Income of $(5,146) and $(2,028))	$	7,879,686		$	7,363,133

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Mid Cap Growth Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2014 (unaudited) (000)			Year Ended September 30, 2013 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		11,930			28,858
Shares Issued due to a tax-free reorganization		—			86
Shares Issued on Distributions Reinvested		6,827			4,036
Shares Redeemed		(17,893	)		(35,425	)
Net Increase (Decrease) in Class I Shares Outstanding		864			(2,445	)
Class A:
Shares Subscribed		4,307			6,431
Shares Issued on Distributions Reinvested		3,046			1,909
Conversion from Class H		—			6,494
Shares Redeemed		(8,428	)		(17,531	)
Net Decrease in Class A Shares Outstanding		(1,075	)		(2,697	)
Class H*:
Shares Subscribed		—			360	**
Shares Issued due to a tax-free reorganization		—			7,299
Shares Issued on Distributions Reinvested		—			265	**
Conversion to Class A		—			(6,496	)**
Shares Redeemed		—			(1,428	)**
Net Increase (Decrease) in Class H Shares Outstanding		—			—
Class L:
Shares Subscribed		29			8
Shares Issued due to a tax-free reorganization		—			513
Shares Issued on Distributions Reinvested		25			18
Shares Redeemed		(37	)		(132	)
Net Increase in Class L Shares Outstanding		17			407
Class IS:
Shares Subscribed		7,714			—	@@***
Shares Redeemed		(49	)		—
Net Increase in Class IS Shares Outstanding		7,665			—	@@***

@@  Amount is less than 500 shares.

*  Effective September 9, 2013, Class H shares converted into Class A shares.

**  For the period October 1, 2012 through September 6, 2013.

***  For the period September 13, 2013 through September 30, 2013.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Mid Cap Growth Portfolio

	Class I
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	44.24		$	35.34		$	33.65		$	33.58		$	26.96		$	23.99
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.00	)‡		0.10			0.17			0.03			0.11			0.03
Net Realized and Unrealized Gain		3.75			10.10			3.35			0.14			6.52			2.94
Total from Investment Operations		3.75			10.20			3.52			0.17			6.63			2.97
Distributions from and/or in Excess of:
Net Investment Income		—			(0.12	)		—			(0.10	)		(0.01	)		—
Net Realized Gain		(2.64	)		(1.18	)		(1.83	)		—			—			—
Total Distributions		(2.64	)		(1.30	)		(1.83	)		(0.10	)		(0.01	)		—
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	45.35		$	44.24		$	35.34		$	33.65		$	33.58		$	26.96
Total Return++		8.73	%#		29.92	%		10.91	%		0.47	%		24.58	%		12.38	%**
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	5,343,104		$	5,174,440		$	4,219,528		$	3,797,139		$	3,012,006		$	2,005,809
Ratio of Expenses to Average Net Assets		0.70	%+††*		0.70	%+^		0.71	%+		0.69	%+††		0.68	%+††		0.69	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			0.71	%+^		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.01	)%+††*		0.27	%+^		0.48	%+		0.07	%+††		0.38	%+††		0.16	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		20	%#		52	%		26	%		35	%		23	%		27	%

†  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 0.04% 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%.

+  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%.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.80% for Class I shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Mid Cap Growth Portfolio

	Class A
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	42.46		$	34.03		$	32.55		$	32.51		$	26.15		$	23.33
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.06	)		0.01			0.06			(0.07	)		0.04			(0.02	)
Net Realized and Unrealized Gain		3.59			9.70			3.25			0.15			6.32			2.84
Total from Investment Operations		3.53			9.71			3.31			0.08			6.36			2.82
Distributions from and/or in Excess of:
Net Investment Income		—			(0.10	)		—			(0.04	)		—			—
Net Realized Gain		(2.64	)		(1.18	)		(1.83	)		—			—			—
Total Distributions		(2.64	)		(1.28	)		(1.83	)		(0.04	)		—			—
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	43.35		$	42.46		$	34.03		$	32.55		$	32.51		$	26.15
Total Return++		8.58	%#		29.60	%		10.62	%		0.22	%		24.32	%		12.04	%**
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,170,518		$	2,171,493		$	1,832,003		$	2,595,397		$	2,465,552		$	1,567,302
Ratio of Expenses to Average Net Assets		0.96	%+††*		0.95	%+^		0.96	%+		0.94	%+††		0.93	%+††		0.96	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			0.96	%+^		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.27	)%+††*		0.02	%+^		0.17	%+		(0.18	)%+††		0.13	%+††		(0.11	)%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		20	%#		52	%		26	%		35	%		23	%		27	%

†  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 0.04% 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%.

+  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%.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.15% for Class A shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Mid Cap Growth Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 31, 2014 (unaudited)			Year Ended September 30, 2013			Period from June 14, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	42.20		$	33.97		$	32.87
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.18	)		(0.15	)		0.05
Net Realized and Unrealized Gain		3.57			9.63			1.05
Total from Investment Operations		3.39			9.48			1.10
Distributions from and/or in Excess of:
Net Investment Income		—			(0.07	)		—
Net Realized Gain		(2.64	)		(1.18	)		—
Total Distributions		(2.64	)		(1.25	)		—
Net Asset Value, End of Period	$	42.95		$	42.20		$	33.97
Total Return++		8.29	%#		28.92	%		3.35	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	18,224		$	17,190		$	10
Ratio of Expenses to Average Net Assets		1.50	%+††*		1.46	%+^^		1.50	%+*
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			1.46	%+^^		N/A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.81	)%+††*		(0.41	)%+^^		0.46	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§*
Portfolio Turnover Rate		20	%#		52	%		26	%#

^  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.

+  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%.

^^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.65% for Class L shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Mid Cap Growth Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2014 (unaudited)			Period from September 13, 2013^ to September 30, 2013
Net Asset Value, Beginning of Period	$	44.25		$	43.74
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		0.02			(0.00	)‡
Net Realized and Unrealized Gain		3.75			0.51
Total from Investment Operations		3.77			0.51
Distributions from and/or in Excess of:
Net Realized Gain		(2.64	)		—
Net Asset Value, End of Period	$	45.38		$	44.25
Total Return++		8.78	%#		1.17	%#
Ratios and Supplemental Data:
Net Assets, End of Period, in (Thousands)	$	347,840		$	10
Ratio of Expenses to Average Net Assets		0.60	%+††*		0.49	%+^^*
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			0.58	%+^^*
Ratio of Net Investment Income (Loss) to Average Net Assets		0.09	%+††*		(0.22	)%+^^*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.01	%*
Portfolio Turnover Rate		20	%#		52	%#

^  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.

+  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%.

^^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.73% for Class IS shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 A, Class L and Class IS.

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 approximately $261,113,000, including unrealized appreciation of approximately $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 September 30, 2013, are as follows:

Net investment income(1)	$	12,717,000
Net gain realized and unrealized gain(2)	$	1,682,794,000
Net increase (decrease) in net assets resulting from operations	$	1,695,511,000

(1) Approximately $12,226,000 as reported, plus approximately $59,000 Mid Cap Growth Fund premerger, plus approximately $432,000 of estimated pro-forma eliminated expenses.

(2) Approximately $1,678,349,000 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 September 30, 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 its latest reported sales price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (3) listed options are valued at the last reported sales price

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between their latest bid and asked price. Unlisted options are valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees") or quotes from a broker or dealer; (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 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) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (6) 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 (7) short-term debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such valuation does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser.

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. 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

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 31, 2014.

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	$	67,814	$	—	$	—	$	67,814
Aerospace		200,018		—		—		200,018
Automobiles		223,566		—		—		223,566
Back Office Support, HR & Consulting		422,929		—		—		422,929
Beverage: Soft Drinks		188,461		—		—		188,461
Biotechnology		51,290		—		—		51,290
Building Materials		92,385		—		—		92,385
Computer Services, Software & Systems		1,954,169		—		—		1,954,169
Computer Technology		31,476		—		—		31,476

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)
Consumer Lending	$	177,923	$	—	$	—	$	177,923
Consumer Services: Miscellaneous		47,095		—		71,575		118,670
Diversified Retail		220,625		—		—		220,625
Electronic Components		52,557		—		—		52,557
Electronic Entertainment		44,975		—		—		44,975
Energy Equipment		31,982		—		—		31,982
Entertainment		—		—		42,332		42,332
Environmental, Maintenance & Security Services		69,683		183,791		—		253,474
Financial Data & Systems		191,252		—		—		191,252
Foods		379,383		—		—		379,383
Health Care Services		269,753		—		—		269,753
Hotel/Motel		—		208,804		—		208,804
Insurance: Property-Casualty		320,684		—		—		320,684
Leisure Time		72,590		—		—		72,590
Machinery: Industrial		91,816		—		—		91,816
Medical Equipment		763,257		—		—		763,257
Oil: Crude Producers		74,767		—		—		74,767
Pharmaceuticals		253,656		—		—		253,656
Radio & TV Broadcasters		37,346		—		—		37,346
Restaurants		364,259		—		—		364,259
Specialty Retail		—		34,061		—		34,061
Telecommunications Equipment		231,554		—		—		231,554
Textiles, Apparel & Shoes		189,725		80,848		—		270,573
Total Common Stocks		7,116,990		507,504		113,907		7,738,401
Convertible Preferred Stocks		—		—		7,794		7,794
Preferred Stocks		—		—		49,234		49,234
Call Options Purchased		—		6,727		—		6,727
Short-Term Investments
Investment Company		488,592		—		—		488,592
Repurchase Agreements		—		115,701		—		115,701
Total Short-Term Investments		488,592		115,701		—		604,293
Total Assets	$	7,605,582	$	629,932	$	170,935	$	8,406,449

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 31, 2014, the Portfolio did not have any investments transfer between investment levels.

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

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

	Common Stocks (000)		Convertible Preferred Stocks (000)		Preferred Stocks (000)
Beginning Balance	$	97,346	$	5,162	$	12,118
Purchases		—		—		20,045
Sales		—		—		—
Amortization of discount		—		—		—
Transfers in		—		—		—
Transfers out		—		—		—
Corporate Action		—		—		—
Fund Merger		—		—		—
Change in unrealized appreciation/depreciation		16,561		2,632		17,071
Realized gains (losses)		—		—		—
Ending Balance	$	113,907	$	7,794	$	49,234
Net change in unrealized appreciation/ depreciation from investments still held as of March 31, 2014	$	16,561	$	2,632	$	17,071

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 31, 2014.

	Fair Value at March 31, 2014 (000)		Valuation Technique	Unobservable Input	Range						Weighted Average			Impact to Valuation from an Increase in Input
Computer Services, Software & Systems
Convertible Preferred Stock	$	692	Asset Approach	Net Tangible Assets	$	0.00		$	0.00		$	0.00		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		1.2	x		6.5	x		1.9	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease
			Merger & Acquisition Transactions	Sale/Merger Scenario	$	6.88		$	6.88		$	6.88		Increase
Preferred Stocks	$	35,806	Market Transaction Method	Precedent Transaction of Preferred Stock	$	6.13		$	6.13		$	6.13		Increase
Consumer Services: Miscellaneous
Common Stock Convertible Preferred Stock	$	71,575 $7,102	Market Transaction Method	Precedent Transaction of Common and Preferred Stock	$	19.1012		$	19.1012		$	19.1012		Increase
Diversified Retail
Preferred Stock	$	13,428	Market Transaction Method	Precedent Transaction of Preferred Stock	$	22.947		$	22.947		$	22.947		Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		17.0	%		19.0	%		18.0	%	Decrease
				Perpetual Growth Rate		3.5	%		4.5	%		4.0	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		3.1	x		7.5	x		5.7	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

	Fair Value at March 31, 2014 (000)	Valuation Technique	Unobservable Input	Range					Weighted Average			Impact to Valuation from an Increase in Input
Entertainment
Common Stock	$42,332	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/ Revenue		3.0	x	7.9	x		5.3	x	Increase
			Discount for Lack of Marketability		15.0	%	15.0	%		15.0	%	Decrease

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, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. 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 the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. 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 the risk of 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:

Options: In respect to options, the Portfolio is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If the Portfolio buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or futures contract on the underlying instrument, at an agreed-upon price typically in exchange for a premium paid by the Portfolio. The Portfolio may purchase and/or sell put and call options. Purchasing call options tends to increase the Portfolio's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Portfolio's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Portfolio bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Portfolio may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments" on the Statement of Assets and Liabilities. Premium paid for purchasing options which expired are treated as realized losses. If the Portfolio sells an option, it sells to another party the right to buy from or sell to the Portfolio a specific amount of the underlying instrument or futures contract on the underlying instrument at an agreed-upon price typically in exchange for a premium received by the Portfolio. When options are purchased over-the-counter, the Portfolio bears the risk that

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Portfolio may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

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 31, 2014.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Options Purchased	Investments, at Value (Options Purchased)	Currency Risk	$	6,727	(a)

(a) Amounts are included in Investments in the Statement of Assets and Liabilities.

The following table sets forth by primary risk exposure the Portfolio's change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 31, 2014 in accordance with ASC 815.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Options Purchased)	$	(637	)(b)

(b) Amounts are included in Investments in the Statement of Operations.

At March 31, 2014, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives	Assets(c) (000)		Liabilities(c) (000)
Options Purchased	$	6,727	$	—

(c) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

The Portfolio typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA

Master Agreements") or similar master agreements (collectively, "Master Agreements") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreements, the Portfolio typically may offset with the counterparty certain derivative financial instrument's payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swaps, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Portfolio and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party. In the event of a default by a Master Agreements counterparty, the return of collateral with market value in excess of the Portfolio's net liability, held by the defaulting party, may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2014.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Received(d) (000)			Net Amount (not less than $0) (000)
Royal Bank of Scotland	$	6,727	$	—	$	(6,727	)	$	0

(d) In some instances, the actual collateral received may be more than the amount shown here due to overcollateralization.

For the six months ended March 31, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Options Purchased:
Average monthly notional amount	2,339,860,000

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

4.  Foreign Currency Translation and Foreign Investments: The books and records of the Portfolio are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars 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 Portfolio are presented at the foreign exchange rates and market values at the close of the period, the Portfolio 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 Portfolio 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 forward 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 Portfolio'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.

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 Portfolio values the foreign shares at the closing exchange price of the local shares.

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

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

The Portfolio has the right under the lending agreement to recover the securities from the borrower on demand.

The following table presents financial instruments that are subject to enforceable netting arrangements as of March 31, 2014.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	599,279	(e)	$	—	$	(599,279	)(f)(g)	$	0

(e) Represents market value of loaned securities at period end.

(f) The Portfolio received cash collateral of approximately $498,470,000, of which approximately $498,470,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $121,130,000 in the form of U.S. government agencies and obligations, which the Portfolio cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

(g) The actual collateral received is greater than the amount shown here due to overcollateralization.

6.  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.

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 annually. 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 — distribution, transfer agency and sub transfer agency fees) 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.

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 0.80% for Class I shares, 1.15% for Class A shares, 1.65% for Class L shares and 0.73% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2014, approximately $1,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 Portfolio.

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 a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, 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 A 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 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 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 A and Class L shares.

E. 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.

F. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $1,581,195,000 and

$1,498,260,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2014.

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 31, 2014, advisory fees paid were reduced by approximately $139,000 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 31, 2014 is as follows:

Value September 30, 2013 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2014 (000)
$	362,847	$	1,321,684	$	1,195,939	$	62	$	488,592

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.

G. 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.

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.

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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, 2013, 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 years 2013 and 2012 was as follows:

2013 Distributions Paid From:				2012 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	19,000	$	202,005	$	16,705	$	331,169

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, merger adjustments, basis adjustments for return of capital sold and tax adjustments on partnership investments held and sold by the Portfolio, resulted in the following reclassifications among the components of net assets at September 30, 2013:

Distributions in Excess of Net Investment Income (000)			Accumulated Undistributed Net Realized Gain (000)			Paid-in Capital (000)
$	(1,465	)	$	(830	)	$	2,295

At September 30, 2013, 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)
$	70,823	$	351,263

At March 31, 2014, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $2,313,332,000 and the aggregate gross unrealized depreciation is approximately $228,297,000 resulting in net unrealized appreciation of approximately $2,085,035,000.

H. Other: At March 31, 2014, 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 62%, 52% and 93%, for Class I, Class A and Class IS shares, respectively.

I. Accounting Pronouncement: In June 2013, FASB issued Accounting Standards Update 2013-08 Financial Services — Investment Companies (Topic 946) — Amendments to the Scope, Measurement, and Disclosure Requirements ("ASU 2013-08") which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. ASU 2013-08 sets forth a methodology for determining whether an entity should be characterized as an investment company and prescribes fair value accounting for an investment company's non-controlling ownership interest in another investment company. FASB has determined that a fund registered under the Act automatically meets ASU 2013-08's criteria for an investment company. Although still evaluating the potential impacts of ASU 2013-08 to the Portfolio, management expects that the impact of the Portfolio's adoption will be limited to additional financial statement disclosures.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014

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 31, 2014

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:

  Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

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 31, 2014

Trustee and Officer Information (unaudited)

Trustees

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

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

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

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 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

© 2014 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTMCGSAN
911048 EXP 05.31.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Core Fixed Income Portfolio

Semi-Annual Report

March 31, 2014

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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	17
U.S. Privacy Policy	25
Trustee and Officer Information	28

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 statement of additional information (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.

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 this Portfolio. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 (the "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,

John H. Gernon
President and Principal Executive Officer

April 2014

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014 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.

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 10/1/13		Actual Ending Account Value 3/31/14		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	$	1,024.30	$	1,022.49	$	2.47	$	2.47		0.49	%
Core Fixed Income Portfolio Class A		1,000.00		1,022.60		1,020.74		4.24		4.23		0.84
Core Fixed Income Portfolio Class L		1,000.00		1,021.30		1,019.50		5.49		5.49		1.09

*  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 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (93.7%)
Agency Fixed Rate Mortgages (18.9%)
Federal Home Loan Mortgage Corporation, Gold Pools: 4.00%, 12/1/41 - 11/1/42	$	905	$	936
5.00%, 10/1/35		332		361
6.00%, 5/1/37 - 11/1/37		90		100
7.50%, 5/1/35		42		49
8.00%, 8/1/32		23		29
8.50%, 8/1/31		37		45
May TBA: 3.50%, 5/1/44 (a)		210		210
4.00%, 5/1/44 (a)		470		486
Federal National Mortgage Association, April TBA: 4.50%, 4/1/44 (a)		230		245
5.00%, 4/1/44 (a)		259		282
Conventional Pools: 3.50%, 12/1/42		881		878
4.00%, 11/1/41 - 12/1/41		938		976
4.50%, 8/1/40 - 12/1/44		1,183		1,268
5.50%, 4/1/34 - 2/1/38		621		692
6.00%, 1/1/38		66		74
6.50%, 7/1/29 - 2/1/33		186		209
7.00%, 10/1/31 - 12/1/31		1		1
7.50%, 8/1/37		73		87
8.00%, 4/1/33		52		63
8.50%, 10/1/32		53		65
May TBA: 3.50%, 5/1/44 (a)		429		430
Government National Mortgage Association, April TBA: 3.50%, 4/20/44 (a)		812		829
4.50%, 4/20/44 (a)		320		345
5.00%, 4/20/44 (a)		470		513
				9,173
Asset-Backed Securities (3.1%)
Ally Master Owner Trust 1.54%, 9/15/19		170		169
Brazos Higher Education Authority 1.09%, 7/25/29 (b)		323		327
CVS Pass-Through Trust 6.04%, 12/10/28		108		122
Enterprise Fleet Financing LLC 1.62%, 5/20/17 (c)		23		23
Louisiana Public Facilities Authority 1.14%, 4/26/27 (b)		312		314
North Carolina State Education Assistance Authority 1.14%, 1/26/26 (b)		220		222
Panhandle-Plains Higher Education Authority, Inc. 1.18%, 7/1/24 (b)		125		125
Textainer Marine Containers Ltd. 4.70%, 6/15/26 (c)		181		182
				1,484

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligations — Agency Collateral Series (9.2%)
Federal Home Loan Mortgage Corporation, 1.88%, 5/25/19	$	230	$	228
2.09%, 3/25/19		159		159
2.32%, 10/25/18		155		158
2.57%, 9/25/22		281		270
2.70%, 5/25/18		335		348
2.79%, 1/25/22		300		298
2.97%, 10/25/21		300		303
3.87%, 4/25/21		325		348
IO 0.66%, 1/25/21 (b)		2,222		72
IO REMIC 5.85%, 11/15/43 (b)		908		127
5.90%, 4/15/39 (b)		681		121
IO STRIPS 8.00%, 1/1/28		15		4
REMIC 3.50%, 12/15/42		203		183
Federal National Mortgage Association, 3.76%, 6/25/21		110		116
IO 6.24%, 9/25/20 (b)		1,719		402
IO REMIC 6.45%, 9/25/38 (b)		484		81
REMIC 9.29%, 10/25/41 (b)(d)		97		97
Government National Mortgage Association, IO 0.83%, 8/20/58 (b)		2,899		89
1.29%, 4/16/53 (b)		4,234		282
3.50%, 5/20/43		597		140
5.00%, 2/16/41		128		28
5.90%, 11/16/40 (b)		871		171
5.95%, 7/16/33 - 8/16/42 (b)		2,186		328
5.99%, 6/20/43 (b)		664		106
				4,459
Commercial Mortgage-Backed Securities (4.9%)
CGBAM Commercial Mortgage Trust 1.26%, 5/15/30 (b)(c)		148		148
COMM Mortgage Trust 3.28%, 1/10/46		120		117
Extended Stay America Trust 2.96%, 12/5/31 (c)		125		124
GS Mortgage Securities Corp. II 1.00%, 11/8/29 (b)(c)		160		161
GS Mortgage Securities Trust 3.71%, 8/10/44		240		249
JP Morgan Chase Commercial Mortgage Securities Trust, 4.17%, 8/15/46		240		255
4.39%, 7/15/46 (c)		350		378
Queens Center Mortgage Trust 3.28%, 1/11/37 (c)		211		201

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (cont'd)
UBS-Barclays Commercial Mortgage Trust 3.53%, 5/10/63	$	80	$	81
Wells Fargo Commercial Mortgage Trust 2.92%, 10/15/45		100		97
WF-RBS Commercial Mortgage Trust, 3.43%, 6/15/45		238		239
4.87%, 2/15/44 (b)(c)		315		348
				2,398
Corporate Bonds (31.7%)
Finance (15.4%)
Abbey National Treasury Services PLC 3.05%, 8/23/18 (e)		120		124
ABN Amro Bank N.V. 4.25%, 2/2/17 (c)		200		215
Aegon N.V. 4.63%, 12/1/15		175		186
American International Group, Inc., 4.88%, 6/1/22		75		82
8.25%, 8/15/18 (e)		100		125
AvalonBay Communities, Inc. 2.95%, 9/15/22 (e)		75		71
Bank of America Corp., 5.00%, 1/21/44		20		20
5.70%, 1/24/22		225		259
MTN 3.30%, 1/11/23 (e)		100		97
Barclays Bank PLC 6.05%, 12/4/17 (c)		200		225
BNP Paribas SA 5.00%, 1/15/21 (e)		60		67
Boston Properties LP, 3.80%, 2/1/24		10		10
3.85%, 2/1/23		100		101
5.88%, 10/15/19		30		35
Brookfield Asset Management, Inc. 5.80%, 4/25/17		50		55
Citigroup, Inc., 3.88%, 10/25/23		50		50
6.13%, 11/21/17 - 5/15/18		71		81
6.68%, 9/13/43		20		23
8.13%, 7/15/39		50		72
8.50%, 5/22/19		57		73
Commonwealth Bank of Australia 5.00%, 3/19/20 (c)		75		83
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 3.88%, 2/8/22		75		78
Credit Agricole SA 2.13%, 4/17/18 (c)		200		199
Credit Suisse 6.00%, 2/15/18		60		69
Dexus Diversified Trust/Dexus Office Trust 5.60%, 3/15/21 (c)		100		111
ERP Operating LP 3.00%, 4/15/23		155		147

	Face Amount (000)		Value (000)
General Electric Capital Corp., 5.30%, 2/11/21 (e)	$	110	$	124
MTN 5.88%, 1/14/38		25		30
Series G 6.00%, 8/7/19		190		223
Goldman Sachs Group, Inc. (The), 3.63%, 1/22/23		90		89
6.75%, 10/1/37		105		121
Hartford Financial Services Group, Inc. 5.50%, 3/30/20 (e)		110		125
HSBC Finance Corp. 6.68%, 1/15/21		100		117
HSBC Holdings PLC, 4.00%, 3/30/22		70		73
4.25%, 3/14/24 (e)		200		201
Intesa Sanpaolo SpA 3.88%, 1/16/18		200		207
JPMorgan Chase & Co., 3.20%, 1/25/23 (e)		445		432
3.88%, 2/1/24 (e)		40		40
National Retail Properties, Inc. 3.30%, 4/15/23		75		71
Nationwide Building Society 6.25%, 2/25/20 (c)		145		169
Nationwide Financial Services, Inc. 5.38%, 3/25/21 (c)		125		138
Nordea Bank AB 4.88%, 5/13/21 (c)		200		210
Pacific LifeCorp 6.00%, 2/10/20 (c)		125		143
Piedmont Operating Partnership LP 3.40%, 6/1/23 (e)		100		93
Platinum Underwriters Finance, Inc., Series B 7.50%, 6/1/17		120		136
Principal Financial Group, Inc. 8.88%, 5/15/19		100		128
QBE Insurance Group Ltd. 2.40%, 5/1/18 (c)		200		196
Realty Income Corp. 4.65%, 8/1/23		100		105
Royal Bank of Scotland Group PLC 2.55%, 9/18/15 (e)		120		123
Santander Holdings USA, Inc. 3.45%, 8/27/18		40		41
Skandinaviska Enskilda Banken AB 1.75%, 3/19/18 (c)		200		198
Societe Generale SA 5.00%, 1/17/24 (c)		200		200
Standard Chartered PLC 3.95%, 1/11/23 (c)(e)		200		191
State Street Corp. 3.10%, 5/15/23		60		57
Svenska Handelsbanken AB 2.88%, 4/4/17		250		261
Swedbank AB 1.75%, 3/12/18 (c)(e)		200		198

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
UnitedHealth Group, Inc., 1.40%, 10/15/17	$	50	$	50
2.88%, 3/15/23 (e)		175		166
Wells Fargo & Co., Series M 3.45%, 2/13/23		100		97
Xilinx, Inc. 3.00%, 3/15/21		75		74
				7,485
Industrials (13.6%)
21st Century Fox America, Inc. 6.15%, 2/15/41		75		89
Agilent Technologies, Inc. 5.50%, 9/14/15		120		128
Altera Corp. 2.50%, 11/15/18		100		100
Altria Group, Inc., 2.85%, 8/9/22		55		52
5.38%, 1/31/44		55		58
Amazon.com, Inc. 1.20%, 11/29/17		150		149
American Tower Corp. 3.50%, 1/31/23 (e)		100		95
Amgen, Inc. 5.15%, 11/15/41		50		52
Apple, Inc. 2.40%, 5/3/23 (e)		125		116
AT&T, Inc. 6.30%, 1/15/38 (e)		120		137
Baidu, Inc. 3.25%, 8/6/18		225		230
Barrick Gold Corp. 4.10%, 5/1/23		50		48
BHP Billiton Finance USA Ltd. 3.85%, 9/30/23 (e)		100		103
BP Capital Markets PLC 3.25%, 5/6/22		125		124
CNOOC Finance 2013 Ltd. 3.00%, 5/9/23		200		181
Coca-Cola Co. 3.20%, 11/1/23		100		99
ConocoPhillips 6.50%, 2/1/39		25		33
Deere & Co. 3.90%, 6/9/42		50		47
DirecTV Holdings LLC/DirecTV Financing Co., Inc. 3.80%, 3/15/22		50		50
Experian Finance PLC 2.38%, 6/15/17 (c)		210		214
Fiserv, Inc. 3.13%, 6/15/16		80		83
Ford Motor Credit Co., LLC 4.21%, 4/15/16		200		212
Freeport-McMoRan Copper & Gold, Inc. 3.88%, 3/15/23 (e)		20		19

	Face Amount (000)		Value (000)
Gilead Sciences, Inc. 4.80%, 4/1/44	$	75	$	78
Glencore Funding LLC 4.13%, 5/30/23 (c)(e)		105		100
Goldcorp, Inc. 3.70%, 3/15/23		100		94
Harley-Davidson Funding Corp. 6.80%, 6/15/18 (c)		105		123
Heathrow Funding Ltd. 4.88%, 7/15/21 (c)(e)		170		183
Hewlett-Packard Co. 4.65%, 12/9/21		40		42
Holcim US Finance Sarl & Cie SCS 6.00%, 12/30/19 (c)(e)		85		97
Intel Corp. 2.70%, 12/15/22 (e)		100		96
Juniper Networks, Inc. 4.50%, 3/15/24 (e)		50		51
Lowe's Cos., Inc. 5.00%, 9/15/43		50		53
LVMH Moet Hennessy Louis Vuitton SA 1.63%, 6/29/17 (c)		150		151
McKesson Corp. 4.88%, 3/15/44		60		61
Medtronic, Inc. 3.63%, 3/15/24 (e)		100		101
Merck & Co., Inc. 2.80%, 5/18/23 (e)		100		95
NBC Universal Media LLC, 2.88%, 1/15/23 (e)		175		169
5.95%, 4/1/41		50		59
NetApp, Inc. 2.00%, 12/15/17		50		51
Oracle Corp. 3.63%, 7/15/23		130		132
Packaging Corp. of America 4.50%, 11/1/23		70		73
PepsiCo, Inc. 3.60%, 3/1/24 (e)		125		125
Philip Morris International, Inc. 2.50%, 8/22/22		130		122
Qtel International Finance Ltd. 3.25%, 2/21/23 (c)		200		188
Sanofi 4.00%, 3/29/21 (e)		135		145
SK Telecom Co., Ltd. 2.13%, 5/1/18 (c)		200		199
Statoil ASA 5.25%, 4/15/19		100		114
Telefonaktiebolaget LM Ericsson 4.13%, 5/15/22		75		77
Teva Pharmaceutical Finance Co. BV 2.95%, 12/18/22 (e)		70		65
Teva Pharmaceutical Finance IV BV 3.65%, 11/10/21 (e)		180		181
United Airlines Pass-Through Trust, Series A 4.00%, 10/11/27 (f)		175		177

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
United Technologies Corp. 4.50%, 6/1/42	$	40	$	41
Vale Overseas Ltd. 5.63%, 9/15/19		85		94
Verizon Communications, Inc., 3.85%, 11/1/42		50		42
6.55%, 9/15/43		250		305
Viacom, Inc. 5.85%, 9/1/43 (e)		100		110
Volkswagen International Finance N.V. 2.38%, 3/22/17 (c)		115		118
Weatherford International Ltd. 4.50%, 4/15/22		100		105
Wesfarmers Ltd., 1.87%, 3/20/18 (c)		55		54
2.98%, 5/18/16 (c)		85		88
				6,578
Utilities (2.7%)
Buckeye Partners LP 4.15%, 7/1/23 (e)		75		75
CEZ AS 4.25%, 4/3/22 (c)		200		205
EnLink Midstream Partners LP 2.70%, 4/1/19		100		100
Enterprise Products Operating LLC, Series N 6.50%, 1/31/19		10		12
Exelon Generation Co., LLC 6.25%, 10/1/39 (e)		140		155
Jersey Central Power & Light Co. 4.70%, 4/1/24 (c)		175		182
Kinder Morgan Energy Partners LP, 3.50%, 9/1/23		50		47
5.95%, 2/15/18 (e)		160		181
PPL WEM Holdings Ltd. 3.90%, 5/1/16 (c)		150		158
State Grid Overseas Investment 2013 Ltd. 3.13%, 5/22/23 (c)(e)		200		189
				1,304
				15,367
Mortgages — Other (0.5%)
Freddie Mac Structured Agency Credit Risk Debt Notes 1.15%, 2/25/24		248		249
Municipal Bonds (1.0%)
City of Chicago, IL, O'Hare International Airport Revenue 6.40%, 1/1/40		40		48
City of New York, NY, Series G-1 5.97%, 3/1/36		85		102
Illinois State Toll Highway Authority, Highway Revenue, Build America Bonds 6.18%, 1/1/34		130		158
Municipal Electric Authority of Georgia 6.66%, 4/1/57		155		174
				482

	Face Amount (000)		Value (000)
Sovereign (4.4%)
Banco Nacional de Desenvolvimento, Economico e Social 5.50%, 7/12/20 (c)(e)	$	150	$	162
Bermuda Government International Bond 4.85%, 2/6/24 (c)		200		204
Brazilian Government International Bond 4.88%, 1/22/21		120		128
Caixa Economica Federal 3.50%, 11/7/22 (c)(e)		150		132
Credit Mutuel - CIC Home Loan SFH 1.50%, 11/16/17 (c)(e)		200		199
KazMunayGas National Co., JSC 6.38%, 4/9/21 (c)(e)		200		219
Mexico Government International Bond 3.63%, 3/15/22		370		371
Peruvian Government International Bond 8.75%, 11/21/33		110		161
Petroleos Mexicanos 4.88%, 1/24/22		250		262
Poland Government International Bond 5.00%, 3/23/22		290		317
				2,155
U.S. Agency Securities (1.7%)
Federal Home Loan Mortgage Corporation 1.25%, 10/2/19 (e)		700		671
Federal National Mortgage Association 6.63%, 11/15/30		100		138
				809
U.S. Treasury Securities (18.3%)
U.S. Treasury Bonds, 2.75%, 11/15/42		1,450		1,236
3.00%, 5/15/42 (e)		1,280		1,154
U.S. Treasury Notes, 0.63%, 8/15/16 - 5/31/17		4,300		4,273
0.88%, 1/31/17		2,200		2,203
				8,866
Total Fixed Income Securities (Cost $45,032)				45,442
	Shares
Short-Term Investments (24.1%)
Securities held as Collateral on Loaned Securities (11.8%)
Investment Company (9.4%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F)		4,578,085		4,578
	Face Amount (000)
Repurchase Agreement (2.4%)
Barclays Capital, Inc., (0.06%, dated 3/31/14, due 4/1/14; proceeds $1,155; fully collateralized by a U.S. Government Obligation; 1.50% due 8/31/18; valued at $ 1,178)	$	1,155		1,155
Total Securities held as Collateral on Loaned Securities (Cost $5,733)				5,733

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Shares		Value (000)
Investment Company (6.0%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F) (Cost $2,909)		2,908,762	$	2,909
	Face Amount (000)
U.S. Treasury Securities (6.3%)
U.S. Treasury Bills, 0.04%, 7/10/14 (g)	$	2,000		2,000
0.04%, 8/21/14 (g)(h)		10		10
0.06%, 5/29/14 (g)		1,000		1,000
0.06%, 8/21/14 (g)(h)		40		40
Total U.S. Treasury Securities (Cost $3,050)				3,050
Total Short-Term Investments (Cost $11,692)				11,692
Total Investments (117.8%) (Cost $56,724) Including $6,956 of Securities Loaned (i)				57,134
Liabilities in Excess of Other Assets (-17.8%)				(8,615	)
Net Assets (100.0%)			$	48,519

(a)  Security is subject to delayed delivery.

(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 31, 2014.

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

(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 31, 2014.

(e)  All or a portion of this security was on loan at March 31, 2014.

(f)  When-issued security.

(g)  Rate shown is the yield to maturity at March 31, 2014.

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

(i)  Securities are available for collateral in connection with purchase of a when-issued security, securities purchased on a forward commitment basis, open futures contracts and swap agreements.

IO  Interest Only.

MTN  Medium Term Note.

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 31, 2014:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		12	$	2,635		Jun-14	$	(3	)
U.S. Treasury Long Bond		17		2,265		Jun-14		3
U.S. Treasury Ultra Long Bond		7		1,011		Jun-14		17
Short:
U.S. Treasury 10 yr. Note		17		(2,099	)	Jun-14		13
U.S. Treasury 5 yr. Note		31		(3,688	)	Jun-14		18
							$	48

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 31, 2014:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Depreciation (000)			Value (000)			Credit Rating of Reference Obligation†
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	250		1.00	%	3/20/19	$	5		$	(4	)	$	1		BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		250		1.00		12/20/18		(5	)		(1	)		(6	)	BBB
		$	500					$	—	@	$	(5	)	$	(5	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 31, 2014:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (000)
Bank of America NA	3 Month LIBOR	Receive		2.10	%	2/5/23	$	750	$	34
Barclays Bank PLC	3 Month LIBOR	Receive		2.90		5/13/43		630		70
Deutsche Bank AG	3 Month LIBOR	Receive		2.80		5/1/43		640		83
Goldman Sachs International	3 Month LIBOR	Receive		2.09		2/15/23		1,190		56
Royal Bank of Canada	3 Month LIBOR	Receive		2.06		2/6/23		1,200		58
									$	301

@    Value is less than $500.

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

LIBOR  London Interbank Offered Rate.

Portfolio Composition*

Classification	Percentage of Total Investments
Agency Fixed Rate Mortgages		17.8	%
Other**		17.3
U.S. Treasury Securities		17.2
Finance		14.6
Industrials		12.8
Short-Term Investments		11.6
Collateralized Mortgage Obligations — Agency Collateral Series		8.7
Total Investments		100.0	%***

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2014.

**  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 $11,698,000 with net unrealized appreciation of approximately $48,000. Does not include open swap agreements with net unrealized appreciation of approximately $296,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Core Fixed Income Portfolio

Statement of Assets and Liabilities	March 31, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $49,237)	$	49,647
Investment in Security of Affiliated Issuer, at Value (Cost $7,487)		7,487
Total Investments in Securities, at Value (Cost $56,724)		57,134
Cash		185
Unrealized Appreciation on Swap Agreements		301
Interest Receivable		281
Receivable for Investments Sold		235
Due from Adviser		69
Receivable for Portfolio Shares Sold		18
Premium Paid on Open Swap Agreements		5
Receivable from Affiliate		—	@
Other Assets		31
Total Assets		58,259
Liabilities:
Collateral on Securities Loaned, at Value		5,918
Payable for Investments Purchased		3,522
Payable for Sub Transfer Agency Fees		57
Payable for Sub Transfer Agency Fees — Class I		53
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Portfolio Shares Redeemed		105
Payable for Professional Fees		34
Payable for Variation Margin on Futures Contracts		8
Payable for Trustees' Fees and Expenses		6
Premium Received on Open Swap Agreements		5
Unrealized Depreciation on Swap Agreements		5
Payable for Custodian Fees		4
Payable for Administration Fees		3
Payable for Transfer Agent Fees — Class I		—	@
Payable for Transfer Agent Fees — Class A		—	@
Payable for Transfer Agent Fees — Class L		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Other Liabilities		20
Total Liabilities		9,740
Net Assets	$	48,519
Net Assets Consist Of:
Paid-in-Capital	$	84,966
Accumulated Undistributed Net Investment Income		463
Accumulated Net Realized Loss		(37,664	)
Unrealized Appreciation (Depreciation) on:
Investments		410
Futures Contracts		48
Swap Agreements		296
Net Assets	$	48,519

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Core Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2014 (000)
CLASS I:
Net Assets	$	47,937
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		4,747,174
Net Asset Value, Offering and Redemption Price Per Share	$	10.10
CLASS A:
Net Assets	$	572
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		56,334
Net Asset Value, Redemption Price Per Share	$	10.15
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.45
Maximum Offering Price Per Share	$	10.60
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	$	10.15
(1) Including: Securities on Loan, at Value:	$	6,956

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Core Fixed Income Portfolio

Statement of Operations	Six Months Ended March 31, 2014 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	799
Income from Securities Loaned — Net		4
Dividends from Security of Affiliated Issuer (Note F)		1
Total Investment Income		804
Expenses:
Advisory Fees (Note B)		91
Sub Transfer Agency Fees — Class I		64
Sub Transfer Agency Fees — Class A		—	@
Professional Fees		60
Shareholder Reporting Fees		37
Registration Fees		24
Administration Fees (Note C)		19
Custodian Fees (Note E)		18
Pricing Fees		16
Transfer Agency Fees — Class I		1
Transfer Agency Fees — Class A		1
Transfer Agency Fees — Class L		1
Trustees' Fees and Expenses		1
Shareholder Services Fees — Class A (Note D)		1
Distribution and Shareholder Services Fees — Class L (Note D)		—	@
Other Expenses		9
Total Expenses		343
Waiver of Advisory Fees (Note B)		(91	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(65	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Expenses Reimbursed by Adviser (Note B)		(62	)
Rebate from Morgan Stanley Affiliate (Note F)		(2	)
Net Expenses		121
Net Investment Income		683
Realized Gain (Loss):
Investments Sold		46
Futures Contracts		34
Swap Agreements		(72	)
Net Realized Gain		8
Change in Unrealized Appreciation (Depreciation):
Investments		434
Futures Contracts		59
Swap Agreements		(17	)
Net Change in Unrealized Appreciation (Depreciation)		476
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		484
Net Increase in Net Assets Resulting from Operations	$	1,167

@  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 31, 2014

Core Fixed Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2014 (unaudited) (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	683		$	1,357
Net Realized Gain		8			617
Net Change in Unrealized Appreciation (Depreciation)		476			(2,775	)
Net Increase (Decrease) in Net Assets Resulting from Operations		1,167			(801	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(770	)		(1,658	)
Class A:
Net Investment Income		(8	)		(10	)
Class H*:
Net Investment Income		—			(3	)**
Class L:
Net Investment Income		(—	@)		(—	@)
Total Distributions		(778	)		(1,671	)
Capital Share Transactions:(1)
Class I:
Subscribed		1,730			2,259
Distributions Reinvested		769			1,656
Redeemed		(3,566	)		(9,860	)
Class A:
Subscribed		57			223
Distributions Reinvested		8			10
Conversion from Class H		—			69
Redeemed		(16	)		(96	)
Class H*:
Subscribed		—			275	**
Distributions Reinvested		—			2	**
Conversion to Class A		—			(69	)**
Redeemed		—			(212	)**
Net Decrease in Net Assets Resulting from Capital Share Transactions		(1,018	)		(5,743	)
Total Decrease in Net Assets		(629	)		(8,215	)
Net Assets:
Beginning of Period		49,148			57,363
End of Period (Including Accumulated Undistributed Net Investment Income of $463 and $558)	$	48,519		$	49,148
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		172			220
Shares Issued on Distributions Reinvested		78			161
Shares Redeemed		(357	)		(957	)
Net Decrease in Class I Shares Outstanding		(107	)		(576	)
Class A:
Shares Subscribed		6			21
Shares Issued on Distributions Reinvested		1			1
Conversion from Class H		—			7
Shares Redeemed		(2	)		(9	)
Net Increase in Class A Shares Outstanding		5			20
Class H*:
Shares Subscribed		—			26	**
Shares Issued on Distributions Reinvested		—			—	@@**
Conversion to Class A		—			(7	)**
Shares Redeemed		—			(20	)**
Net Decrease in Class H Shares Outstanding		—			(1	)

@  Amount is less than $500.

@@  Amount is less than 500 shares.

*  Effective September 9, 2013, Class H shares converted into Class A shares.

**  For the period October 1, 2012 through September 6, 2013.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Core Fixed Income Portfolio

	Class I
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	10.02		$	10.50		$	10.08		$	9.96		$	9.49		$	9.18
Income (Loss) from Investment Operations:
Net Investment Income†		0.14			0.26			0.29			0.34			0.34			0.34
Net Realized and Unrealized Gain (Loss)		0.10			(0.42	)		0.48			0.08			0.45			0.57
Total from Investment Operations		0.24			(0.16	)		0.77			0.42			0.79			0.91
Distributions from and/or in Excess of:
Net Investment Income		(0.16	)		(0.32	)		(0.35	)		(0.30	)		(0.32	)		(0.60	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	10.10		$	10.02		$	10.50		$	10.08		$	9.96		$	9.49
Total Return++		2.43	%#		(1.57	)%		7.83	%		4.34	%		8.57	%		10.41	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	47,937		$	48,620		$	57,013		$	63,866		$	75,651		$	93,768
Ratio of Expenses to Average Net Assets (1)		0.49	%+††*		0.49	%+		0.49	%+		0.50	%+††		0.50	%+††		0.50	%+
Ratio of Net Investment Income to Average Net Assets (1)		2.83	%+††*		2.57	%+		2.80	%+		3.43	%+††		3.58	%+††		3.73	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.01	%		0.00	%§		0.00	%§		0.01	%
Portfolio Turnover Rate		83	%#		187	%		216	%		234	%		261	%		437	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.40	%††*		1.16	%		0.97	%		0.99	%††		0.67	%+††		0.61	%+
Net Investment Income to Average Net Assets		1.92	%††*		1.90	%		2.32	%		2.94	%††		3.41	%+††		3.62	%+

†  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.

+  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%.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Core Fixed Income Portfolio

	Class A
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	10.07		$	10.56		$	10.14		$	10.01		$	9.53		$	9.12
Income (Loss) from Investment Operations:
Net Investment Income†		0.12			0.24			0.23			0.31			0.32			0.31
Net Realized and Unrealized Gain (Loss)		0.10			(0.43	)		0.52			0.09			0.46			0.58
Total from Investment Operations		0.22			(0.19	)		0.75			0.40			0.78			0.89
Distributions from and/or in Excess of:
Net Investment Income		(0.14	)		(0.30	)		(0.33	)		(0.27	)		(0.30	)		(0.48	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	10.15		$	10.07		$	10.56		$	10.14		$	10.01		$	9.53
Total Return++		2.26	%#		(1.89	)%		7.55	%		4.11	%		8.47	%		10.10	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	572		$	518		$	330		$	44		$	209		$	214
Ratio of Expenses to Average Net Assets (1)		0.84	%+††*		0.75	%+^		0.74	%+		0.75	%+††		0.75	%+††		0.75	%+
Ratio of Net Investment Income to Average Net Assets (1)		2.48	%+††*		2.32	%+^		2.25	%+		3.18	%+††		3.33	%+††		3.48	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.01	%		0.00	%§		0.00	%§		0.01	%
Portfolio Turnover Rate		83	%#		187	%		216	%		234	%		261	%		437	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.76	%††*		1.44	%		1.33	%		1.24	%††		0.92	%+††		0.86	%+
Net Investment Income to Average Net Assets		1.56	%††*		1.63	%		1.66	%		2.69	%††		3.16	%+††		3.37	%+

†  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.

+  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%.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.85% for Class A shares. Prior to September 16, 2013, the maximum ratio was 0.75% for Class A shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Core Fixed Income Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 31, 2014 (unaudited)			Year Ended September 30, 2013			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.07		$	10.55		$	10.29
Income (Loss) from Investment Operations:
Net Investment Income†		0.11			0.27			0.06
Net Realized and Unrealized Gain (Loss)		0.10			(0.48	)		0.27
Total from Investment Operations		0.21			(0.21	)		0.33
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.27	)		(0.07	)
Net Asset Value, End of Period	$	10.15		$	10.07		$	10.55
Total Return++		2.13	%#		(2.05	)%		3.23	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10		$	10
Ratio of Expenses to Average Net Assets (1)		1.09	%+††*		1.00	%+^^		0.99	%+*
Ratio of Net Investment Income to Average Net Assets (1)		2.23	%+††*		2.41	%+^^		1.45	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.01	%*
Portfolio Turnover Rate		83	%#		187	%		216	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		15.74	%††*		2.21	%		1.58	%*
Net Investment Income (Loss) to Average Net Assets		(12.42	)%††*		1.20	%		0.86	%*

^  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.

+  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.

^^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.10% for Class L shares. Prior to September 16, 2013, the maximum ratio was 1.00% for Class L shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 manage-ment 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 three classes of shares — Class I, Class A 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) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (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 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 taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

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. 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

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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. 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 31, 2014.

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	$	—		$	9,173		$	—	$	9,173
Asset-Backed Securities		—			1,484			—		1,484
Collateralized Mortgage Obligations — Agency Collateral Series		—			4,459			—		4,459
Commercial Mortgage-Backed Securities		—			2,398			—		2,398
Corporate Bonds		—			15,367			—		15,367
Mortgages — Other		—			249			—		249
Municipal Bonds		—			482			—		482
Sovereign		—			2,155			—		2,155
U.S. Agency Securities		—			809			—		809
U.S. Treasury Securities		—			8,866			—		8,866
Total Fixed Income Securities		—			45,442			—		45,442
Short-Term Investments
Investment Company		7,487			—			—		7,487
Repurchase Agreement		—			1,155			—		1,155
U.S. Treasury Securities		—			3,050			—		3,050
Total Short-Term Investments		7,487			4,205			—		11,692
Futures Contracts		51			—			—		51
Interest Rate Swap Agreements		—			301			—		301
Total Assets		7,538			49,948			—		57,486
Liabilities:
Futures Contracts		(3	)		—			—		(3	)
Credit Default Swap Agreements		—			(5	)		—		(5	)
Total Liabilities		(3	)		(5	)		—		(8	)
Total	$	7,535		$	49,943		$	—	$	57,478

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 31, 2014, the Portfolio did not have any investments transfer between investment levels.

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. 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 the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. 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 the risk of 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, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index 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 contracts 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 contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts 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. There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with whom the Portfolio has open positions in the futures contract.

Swaps: The Portfolio may enter into over-the-counter ("OTC") swap contracts or cleared swap transactions. A swap contract 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, indices, reference rates, currencies or other instruments. Typically 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 contract 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 party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Portfolio's ultimate counterparty is a clearinghouse rather than a bank, dealer or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring 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 commonly referred to as credit default swaps. The Portfolio may be either the buyer or seller in a credit default swap. Where the Portfolio is the buyer of a credit default swap contract, it would typically be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract only in the event of a default or similar event by the issuer of the debt obligation. If no default occurs, the Portfolio would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Portfolio is the seller of a credit default swap contract, it typically 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 the default or similar event by the issuer of the referenced debt obligation. The use of credit default swaps could result in losses to the Portfolio if the Adviser fails to correctly evaluate the creditworthiness of the issuer 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. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

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 tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 31, 2014.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk	$	51	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Interest Rate Risk		301
Total			$	352
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk	$	(3	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(5	)
Total			$	(8	)

(a) This amount represents the cumulative appreciation (depreciation) 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

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

for the six months ended March 31, 2014 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	34
Credit Risk	Swap Agreements		(19	)
Interest Rate Risk	Swap Agreements		(53	)
Total		$	(38	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	59
Credit Risk	Swap Agreements		7
Interest Rate Risk	Swap Agreements		(24	)
Total		$	42

At March 31, 2014, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Swap Agreements	$	301	$	(5	)

(b) Excludes exchange-traded derivatives.

(c) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

The Portfolio typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreements, the Portfolio typically may offset with the counterparty certain derivative financial instrument's payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swaps, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Portfolio and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the

defaulting party. In the event of a default by a Master Agreements counterparty, the return of collateral with market value in excess of the Portfolio's net liability, held by the defaulting party, may be delayed or denied.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2014.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Received (000)		Net Amount (not less than $0) (000)
Bank of America NA	$	34	$	—		$	—	$	34
Barclays Bank PLC		70		(5	)		—		65
Deutsche Bank AG		83		—			—		83
Goldman Sachs International		56		—			—		56
Royal Bank of Canada		58		—			—		58
Total	$	301	$	(5	)	$	—	$	296
Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	5	$	(5	)	$	—	$	0

For the six months ended March 31, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	12,446,000
Swap Agreements:
Average monthly notional amount	$	9,676,000

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

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

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 Portfolio has the right under the lending agreement to recover the securities from the borrower on demand.

The following table presents financial instruments that are subject to enforceable netting arrangements as of March 31, 2014.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	6,956	(d)	$	—	$	(6,956	)(e)(f)	$	0

(d) Represents market value of loaned securities at period end.

(e) The Portfolio received cash collateral of approximately $5,918,000, of which approximately $5,733,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of March 31, 2014 there was uninvested cash of approximately $185,000, which is not reflected in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $1,195,000 in the form of U.S. government agencies and obligations, which the Portfolio cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

(f) The actual collateral received is greater than the amount shown here due to overcollateralization.

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 a month or more 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 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 — distribution, transfer agency and sub transfer agency fees) 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.

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),

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

will not exceed 0.50% for Class I shares, 0.85% for Class A shares and 1.10% for Class L shares. The fee waivers and/or expense reimbursements will continue for at least one year or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2014, approximately $91,000 of advisory fees were waived and approximately $129,000 of other expenses were reimbursed by the Adviser 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 Portfolio.

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 a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, 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 A 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 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 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 A and Class L shares.

E. 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.

F. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $2,765,000 and $4,292,000, respectively. For the six months ended March 31, 2014, purchases and sales of long-term U.S. Government securities were approximately $36,238,000 and $35,563,000, 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 31, 2014, 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 31, 2014 is as follows:

Value September 30, 2013 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2014 (000)
$	6,159	$	14,923	$	13,595	$	1	$	7,487

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.

G. 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.

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

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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. 2013, 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 years 2013 and 2012 was as follows:

2013 Distributions Paid From: Ordinary Income (000)		2012 Distributions Paid From: Ordinary Income (000)
$	1,671	$	2,118

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, 2013:

Accumulated Undistributed Net Investment Income (000)		Accumulated Net Realized Loss (000)			Paid-in Capital (000)
$	104	$	(104	)		—

At September 30, 2013, 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)
$	546		—

At March 31, 2014, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,198,000 and the aggregate gross unrealized depreciation is approximately $788,000 resulting in net unrealized appreciation of approximately $410,000.

At September 30, 2013, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	34,355	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, 2013, the Portfolio utilized capital loss carryforwards for U.S. Federal income tax purposes of approximately $324,000.

H. Accounting Pronouncement: In June 2013, FASB issued Accounting Standards Update 2013-08 Financial Services — Investment Companies (Topic 946) — Amendments to the Scope, Measurement, and Disclosure Requirements ("ASU 2013-08") which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. ASU 2013-08 sets forth a methodology for determining whether an entity should be characterized as an investment company and prescribes fair value accounting for an investment company's non-controlling ownership interest in another investment company. FASB has determined that a fund registered under the Act automatically meets ASU 2013-08's criteria for an investment company. Although still evaluating the potential impacts of ASU 2013-08 to the Portfolio, management expects that the impact of the Portfolio's adoption will be limited to additional financial statement disclosures.

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014

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.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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:

  Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

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.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Trustee and Officer Information (unaudited)

Trustees

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

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

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

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 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.

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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

© 2014 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTFXDINCSAN
911053 EXP 05.31.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Semi-Annual Report

March 31, 2014

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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	19
U.S. Privacy Policy	29
Trustee and Officer Information	32

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 statement of additional information (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.

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 this Portfolio. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 (the "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,

John H. Gernon
President and Principal Executive Officer

April 2014

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014 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.

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 10/1/13		Actual Ending Account Value 3/31/14		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	$	1,042.40	$	1,021.89	$	3.11	$	3.07		0.61	%
Core Plus Fixed Income Portfolio Class A		1,000.00		1,040.70		1,020.14		4.88		4.84		0.96
Core Plus Fixed Income Portfolio Class L		1,000.00		1,039.40		1,018.95		6.10		6.04		1.20

*  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 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments

Core Plus Fixed Income Portfolio

	Face Amount (000)			Value (000)
Fixed Income Securities (93.6%)
Agency Adjustable Rate Mortgage (0.7%)
Federal National Mortgage Association, Conventional Pool 2.33%, 5/1/35	$	1,272		$	1,355
Agency Fixed Rate Mortgages (21.5%)
Federal Home Loan Mortgage Corporation, Conventional Pools: 12.00%, 2/1/15		—	@		—	@
13.00%, 6/1/19		—	@		—	@
Gold Pools: 5.00%, 10/1/35		125			136
6.00%, 10/1/36 - 8/1/38		678			757
6.50%, 3/1/16 - 8/1/33		298			335
7.00%, 6/1/28 - 11/1/31		86			92
May TBA: 3.50%, 5/1/44 (a)		380			381
4.00%, 5/1/44 (a)		1,350			1,396
Federal National Mortgage Association, April TBA: 4.00%, 4/1/44 (a)		1,710			1,778
4.50%, 4/1/44 (a)		4,830			5,154
5.00%, 4/1/44 (a)		3,331			3,632
Conventional Pools: 3.50%, 12/1/42		3,433			3,423
4.00%, 11/1/41 - 7/1/43		6,636			6,910
5.00%, 3/1/41		586			641
5.50%, 6/1/35 - 5/1/41		2,543			2,820
6.50%, 11/1/23 - 1/1/34		2,848			3,219
7.00%, 11/1/17 - 1/1/34		473			516
8.50%, 1/1/15		1			1
9.50%, 4/1/30		442			519
12.00%, 11/1/15		6			7
12.50%, 9/1/15		1			1
May TBA: 3.50%, 5/1/44 (a)		2,087			2,092
Government National Mortgage Association, April TBA: 3.50%, 4/20/44 (a)		3,130			3,194
4.50%, 4/20/44 (a)		2,450			2,642
Various Pools: 4.00%, 8/20/41 - 3/20/43		1,667			1,755
					41,401
Asset-Backed Securities (1.2%)
Contimortgage Home Equity Trust 8.10%, 8/15/25		34			33
CVS Pass-Through Trust 6.04%, 12/10/28		449			505
Mid-State Trust IV 8.33%, 4/1/30		21			22
Textainer Marine Containers Ltd. 4.70%, 6/15/26 (b)		544			544
U-Haul S Fleet LLC 4.90%, 10/25/23 (b)		1,098			1,148
					2,252

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligations — Agency Collateral Series (4.2%)
Federal Home Loan Mortgage Corporation, IO 0.66%, 1/25/21 (c)	$	9,856	$	321
IO REMIC 5.85%, 11/15/43 (c)		3,525		494
5.90%, 4/15/39 (c)		2,889		512
IO STRIPS 7.50%, 12/1/29		66		17
8.00%, 1/1/28		111		28
PAC REMIC 9.50%, 4/15/20		1		1
REMIC 3.50%, 12/15/42		835		749
Federal National Mortgage Association, IO 6.24%, 9/25/20 (c)		5,061		1,185
IO PAC REMIC 8.00%, 9/18/27		273		56
IO REMIC 5.00%, 8/25/37		79		—	@
6.00%, 7/25/33		257		43
6.45%, 9/25/38 (c)		2,299		387
IO STRIPS 6.50%, 9/1/29 - 12/1/29		1,173		305
8.00%, 4/1/24		313		80
8.50%, 10/1/25		93		29
9.00%, 11/1/26		87		20
REMIC 7.00%, 9/25/32		510		585
9.29%, 10/25/41 (c)(d)		431		428
63.62%, 9/25/20 (c)(d)		5		8
Government National Mortgage Association, IO 3.50%, 5/20/43		2,478		582
5.00%, 2/16/41		674		149
5.90%, 11/16/40 (c)		3,821		751
5.95%, 7/16/33 (c)		6,102		852
5.99%, 6/20/43 (c)		2,578		412
				7,994
Commercial Mortgage-Backed Securities (4.1%)
CGBAM Commercial Mortgage Trust 3.01%, 5/15/30 (b)(c)		340		342
Commercial Mortgage Pass-Through Certificates, 4.26%, 7/10/45 (b)(c)		493		480
5.05%, 8/10/46 (b)(c)		800		748
IO 0.41%, 7/10/45 (c)		16,412		271
Commercial Mortgage Trust 5.48%, 3/10/39		450		485
DBUBS Mortgage Trust 5.44%, 7/10/44 (b)(c)		325		357
FREMF Mortgage Trust 3.54%, 10/25/46 (b)(c)		825		738
GS Mortgage Securities Corp. II 2.76%, 11/8/29 (b)(c)		500		508

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (cont'd)
GS Mortgage Securities Trust 4.78%, 8/10/46 (b)(c)	$	500	$	456
JP Morgan Chase Commercial Mortgage Securities Trust, 5.46%, 12/12/43		600		625
IO 0.59%, 4/15/46 (c)		6,956		305
LB-UBS Commercial Mortgage Trust 2007-C7 6.24%, 9/15/45 (c)		550		573
NLY Commercial Mortgage Trust 2014-FL1 2.76%, 11/15/30 (b)(c)		218		219
WF-RBS Commercial Mortgage Trust, 3.43%, 6/15/45		966		973
3.71%, 3/15/45 (c)		140		137
4.99%, 9/15/46 (b)(c)		805		771
				7,988
Corporate Bonds (35.2%)
Finance (14.6%)
Abbey National Treasury Services PLC 3.05%, 8/23/18		490		505
ABN Amro Bank N.V. 4.25%, 2/2/17 (b)		600		646
Alexandria Real Estate Equities, Inc. 4.60%, 4/1/22		275		285
American Campus Communities Operating Partnership LP 3.75%, 4/15/23		250		239
American International Group, Inc., 4.88%, 6/1/22		275		302
6.40%, 12/15/20		375		447
American Realty Capital Properties, Inc. 3.00%, 8/1/18		525		559
Banco de Credito del Peru 6.13%, 4/24/27 (b)(c)		400		417
Bank of America Corp., 4.00%, 4/1/24 (e)		220		220
5.00%, 1/21/44		180		184
MTN 3.30%, 1/11/23		660		638
Barclays Bank PLC 6.05%, 12/4/17 (b)		650		731
BNP Paribas SA 5.00%, 1/15/21		175		195
Boston Properties LP 3.80%, 2/1/24		175		174
Brookfield Asset Management, Inc. 5.80%, 4/25/17		235		258
Capital One Bank, USA NA 3.38%, 2/15/23		366		357
Citigroup, Inc., 4.05%, 7/30/22		165		166
6.68%, 9/13/43		120		141
8.13%, 7/15/39		175		254
CNA Financial Corp. 5.75%, 8/15/21		315		363
Commonwealth Bank of Australia 5.00%, 3/19/20 (b)		300		334

	Face Amount (000)		Value (000)
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA 3.95%, 11/9/22 (f)	$	650	$	647
Credit Agricole SA, 2.13%, 4/17/18 (b)		275		274
7.88%, 1/23/24 (b)(c)(f)(g)		200		212
Credit Suisse AG 6.50%, 8/8/23 (b)(f)		425		468
Discover Bank 7.00%, 4/15/20		250		295
General Electric Capital Corp., MTN 5.88%, 1/14/38		235		278
Series G 6.00%, 8/7/19		694		816
Genworth Holdings, Inc. 7.20%, 2/15/21 (f)		375		450
Goldman Sachs Group, Inc. (The), 3.63%, 1/22/23		440		434
6.75%, 10/1/37		490		563
Goodman Funding Pty Ltd. 6.38%, 4/15/21 (b)		425		483
Hartford Financial Services Group, Inc. 5.50%, 3/30/20		645		731
HBOS PLC, Series G 6.75%, 5/21/18 (b)		813		923
Healthcare Trust of America Holdings LP 3.70%, 4/15/23		350		334
HSBC Finance Corp. 6.68%, 1/15/21		420		491
HSBC Holdings PLC, 4.00%, 3/30/22		275		286
4.25%, 3/14/24		550		552
ING Bank N.V. 5.80%, 9/25/23 (b)		520		556
ING US, Inc. 5.50%, 7/15/22 (f)		400		449
Intesa Sanpaolo SpA 5.25%, 1/12/24		410		422
Jefferies Finance LLC/JFIN Co-Issuer Corp. 7.38%, 4/1/20 (b)		380		401
JPMorgan Chase & Co., 3.20%, 1/25/23		690		670
3.88%, 2/1/24 (f)		310		313
4.63%, 5/10/21		380		415
Kilroy Realty LP 3.80%, 1/15/23		325		317
Macquarie Bank Ltd. 6.63%, 4/7/21 (b)		490		555
Markel Corp. 3.63%, 3/30/23		450		438
Mizuho Corporate Bank Ltd. 1.85%, 3/21/18 (b)		485		481
National Retail Properties, Inc. 3.30%, 4/15/23		350		331
Nationwide Building Society 6.25%, 2/25/20 (b)		645		753
Nationwide Financial Services, Inc. 5.38%, 3/25/21 (b)		450		497

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
PHH Corp. 4.00%, 9/1/14	$	287	$	310
Piedmont Operating Partnership LP 3.40%, 6/1/23		425		394
Platinum Underwriters Finance, Inc., Series B 7.50%, 6/1/17		791		897
Principal Financial Group, Inc. 1.85%, 11/15/17		575		577
QBE Capital Funding III Ltd. 7.25%, 5/24/41 (b)(c)		550		589
Realty Income Corp. 3.25%, 10/15/22 (f)		400		382
Santander Holdings USA, Inc. 3.45%, 8/27/18		170		176
Societe Generale SA 5.00%, 1/17/24 (b)		400		399
Standard Chartered PLC 3.95%, 1/11/23 (b)(f)		310		297
Swedbank AB 2.38%, 2/27/19 (b)		340		339
UnitedHealth Group, Inc. 2.88%, 3/15/23 (f)		800		760
Wells Fargo & Co., 4.13%, 8/15/23		170		172
Series M 3.45%, 2/13/23		320		311
Xilinx, Inc. 3.00%, 3/15/21		275		273
				28,126
Industrials (18.5%)
Albea Beauty Holdings SA 8.38%, 11/1/19 (b)(f)		600		654
Allegheny Technologies, Inc. 4.25%, 6/1/14		297		304
Altria Group, Inc. 5.38%, 1/31/44		285		299
American Tower Corp. 3.50%, 1/31/23		455		431
Amgen, Inc. 5.15%, 11/15/41		198		205
Anheuser-Busch InBev Finance, Inc. 3.70%, 2/1/24		475		481
Apple, Inc. 2.40%, 5/3/23 (f)		525		488
ARAMARK Corp. 5.75%, 3/15/20		410		435
ArcelorMittal 10.35%, 6/1/19		316		402
AT&T, Inc. 6.30%, 1/15/38		350		399
Barrick Gold Corp. 4.10%, 5/1/23		255		242
BE Aerospace, Inc. 5.25%, 4/1/22		200		207
BHP Billiton Finance USA Ltd. 3.85%, 9/30/23		370		380

	Face Amount (000)		Value (000)
Bombardier, Inc. 6.13%, 1/15/23 (b)(f)	$	450	$	457
BP Capital Markets PLC 3.25%, 5/6/22		600		596
CC Holdings GS V LLC/Crown Castle GS III Corp. 3.85%, 4/15/23		325		317
CEVA Group PLC 7.00%, 3/1/21 (b)		370		378
Chrysler Group LLC/CG Co-Issuer, Inc. 8.00%, 6/15/19 (b)		375		412
CNOOC Finance 2013 Ltd. 3.00%, 5/9/23		540		489
Coca-Cola Co. (The) 3.20%, 11/1/23		375		369
DirecTV Holdings LLC/DirecTV Financing Co., Inc. 3.80%, 3/15/22		175		173
Eldorado Gold Corp. 6.13%, 12/15/20 (b)		380		382
Exide Technologies 8.63%, 2/1/18 (f)(h)(i)		219		167
Experian Finance PLC 2.38%, 6/15/17 (b)		635		647
Fiserv, Inc. 3.13%, 6/15/16		360		376
Ford Motor Credit Co., LLC 4.21%, 4/15/16		860		912
Freeport-McMoRan Copper & Gold, Inc. 3.88%, 3/15/23 (f)		220		211
General Motors Co. 4.88%, 10/2/23 (b)		375		386
Gilead Sciences, Inc. 4.80%, 4/1/44		300		310
Glencore Funding LLC 4.13%, 5/30/23 (b)(f)		390		373
Goldcorp, Inc. 3.70%, 3/15/23		400		378
Harley-Davidson Funding Corp. 6.80%, 6/15/18 (b)		630		738
HCA, Inc. 4.75%, 5/1/23		445		441
Heathrow Funding Ltd. 4.88%, 7/15/21 (b)(f)		525		567
Hewlett-Packard Co., 3.75%, 12/1/20		275		280
4.65%, 12/9/21		155		164
Holcim US Finance Sarl & Cie SCS 6.00%, 12/30/19 (b)		483		550
Host Hotels & Resorts LP, Series D 3.75%, 10/15/23 (f)		150		145
Intel Corp., 2.70%, 12/15/22 (f)		400		383
2.95%, 12/15/35 (f)		356		420
International Game Technology 3.25%, 5/1/14		305		306
JBS Investments GmbH 7.75%, 10/28/20 (b)(f)		200		212
Juniper Networks, Inc. 4.50%, 3/15/24 (f)		200		203

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Lam Research Corp. 1.25%, 5/15/18 (f)	$	304	$	379
Lowe's Cos., Inc. 5.00%, 9/15/43		150		160
MasTec, Inc. 4.88%, 3/15/23		395		389
McKesson Corp. 4.88%, 3/15/44		220		224
MDC Partners, Inc. 6.75%, 4/1/20 (b)		420		444
Medtronic, Inc. 3.63%, 3/15/24 (f)		370		372
NBC Universal Media LLC, 2.88%, 1/15/23 (f)		250		242
5.95%, 4/1/41		400		474
NetApp, Inc. 2.00%, 12/15/17		200		202
NOVA Chemicals Corp. 5.25%, 8/1/23 (b)		375		403
Novartis Capital Corp. 3.40%, 5/6/24		570		570
Nuance Communications, Inc. 2.75%, 11/1/31 (f)		286		288
NVIDIA Corp. 1.00%, 12/1/18 (b)		550		605
Omega Healthcare Investors, Inc. 4.95%, 4/1/24 (b)		225		221
ON Semiconductor Corp., Series B 2.63%, 12/15/26		290		355
Packaging Corp. of America 4.50%, 11/1/23		270		280
PepsiCo, Inc. 3.60%, 3/1/24		475		477
Philip Morris International, Inc. 2.50%, 8/22/22		495		466
Pioneer Natural Resources Co. 7.50%, 1/15/20		375		458
Qtel International Finance Ltd. 3.25%, 2/21/23 (b)		450		424
QVC, Inc. 4.38%, 3/15/23 (f)		400		395
RR Donnelley & Sons Co. 7.88%, 3/15/21		345		397
SanDisk Corp. 0.50%, 10/15/20 (b)(f)		375		415
Silgan Holdings, Inc. 5.50%, 2/1/22 (b)		500		516
Sinopec Group Overseas Development 2012 Ltd. 3.90%, 5/17/22 (b)		500		494
SK Telecom Co., Ltd. 2.13%, 5/1/18 (b)		200		198
T-Mobile USA, Inc. 6.25%, 4/1/21		545		578
Telefonaktiebolaget LM Ericsson 4.13%, 5/15/22		300		307
Teva Pharmaceutical Finance Co. BV 2.95%, 12/18/22 (f)		280		261

	Face Amount (000)		Value (000)
Teva Pharmaceutical Finance IV BV 3.65%, 11/10/21	$	720	$	722
Time Warner Cable, Inc. 4.50%, 9/15/42 (f)		175		161
Transocean, Inc. 6.38%, 12/15/21		275		310
United Airlines Pass-Through Trust, Series A 4.00%, 4/11/26 (e)		675		682
United Rentals North America, Inc. 5.75%, 11/15/24		370		373
United States Steel Corp. 4.00%, 5/15/14		307		311
United Technologies Corp. 4.50%, 6/1/42		165		169
Verisk Analytics, Inc. 5.80%, 5/1/21		550		611
Verizon Communications, Inc., 3.85%, 11/1/42		300		252
6.55%, 9/15/43		925		1,130
Viacom, Inc. 5.85%, 9/1/43		425		469
Volkswagen International Finance N.V. 2.38%, 3/22/17 (b)		190		196
Wal-Mart Stores, Inc. 5.25%, 9/1/35		290		328
Weatherford International Ltd. 4.50%, 4/15/22		400		420
Wesfarmers Ltd. 2.98%, 5/18/16 (b)		390		406
Wyndham Worldwide Corp. 4.25%, 3/1/22		680		689
Yahoo!, Inc. 0.00%, 12/1/18 (b)		550		562
				35,454
Utilities (2.1%)
Access Midstream Partners LP/ACMP Finance Corp. 4.88%, 5/15/23		425		430
CEZ AS 4.25%, 4/3/22 (b)		210		215
DCP Midstream Operating LP 3.88%, 3/15/23 (f)		375		367
Delmarva Power & Light Co. 4.00%, 6/1/42		475		446
EnLink Midstream Partners LP 2.70%, 4/1/19		400		402
Exelon Generation Co., LLC 6.25%, 10/1/39 (f)		445		493
Jersey Central Power & Light Co. 4.70%, 4/1/24 (b)		700		727
PPL WEM Holdings Ltd. 3.90%, 5/1/16 (b)		375		394
State Grid Overseas Investment 2013 Ltd. 3.13%, 5/22/23 (b)(f)		540		509
				3,983
				67,563

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (9.8%)
Alternative Loan Trust 6.00%, 2/25/37	$	104	$	85
Banc of America Alternative Loan Trust, 0.80%, 7/25/46 (c)		521		342
5.50%, 10/25/35		2,372		2,201
5.86%, 10/25/36		966		720
5.91%, 10/25/36 (c)		1,683		1,254
6.00%, 4/25/36		491		510
Banc of America Funding Trust 0.52%, 8/25/36 (c)		113		97
Chaseflex Trust 6.00%, 2/25/37		1,464		1,296
Commercial Mortgage Pass-Through Certificates 4.91%, 4/10/47 (b)		883		790
First Horizon Alternative Mortgage Securities Trust 6.25%, 8/25/36		925		787
GSMSC Pass-Through Trust 7.50%, 9/25/36 (b)(c)		1,154		915
JP Morgan Mortgage Trust, 4.45%, 6/25/37 (c)		354		313
6.00%, 6/25/37		414		412
Lehman Mortgage Trust, 5.50%, 11/25/35 - 2/25/36		1,925		1,926
6.50%, 9/25/37		2,043		1,809
RALI Trust, 0.33%, 12/25/36 (c)		550		406
0.34%, 12/25/36 (c)		531		393
5.50%, 12/25/34		1,432		1,458
6.00%, 11/25/36		298		228
Springleaf Mortgage Loan Trust 3.56%, 12/25/59 (b)(c)		860		870
Washington Mutual Mortgage Pass-Through Certificates Trust, 0.90%, 4/25/47 (c)		743		580
1.11%, 7/25/46 (c)		1,642		1,393
				18,785
Municipal Bonds (1.2%)
City of Chicago, IL, O'Hare International Airport Revenue 6.40%, 1/1/40		255		307
City of New York, NY, Series G-1 5.97%, 3/1/36		270		322
Illinois State Toll Highway Authority, Highway Revenue, Build America Bonds 6.18%, 1/1/34		477		580
Municipal Electric Authority of Georgia, 6.64%, 4/1/57		283		324
6.66%, 4/1/57		320		360
New York City, NY, Transitional Finance Authority Future Tax Secured Revenue 5.27%, 5/1/27		320		371
				2,264

	Face Amount (000)		Value (000)
Sovereign (5.2%)
Banco Nacional de Desenvolvimento, Economico e Social 5.50%, 7/12/20 (b)	$	580	$	624
Brazilian Government International Bond 5.63%, 1/7/41 (f)		350		356
Caixa Economica Federal 3.50%, 11/7/22 (b)(f)		410		359
Hellenic Republic Government Bond 2.00%, 2/24/25 (j)	EUR	1,070		1,112
Hungary Government International Bond 5.38%, 3/25/24	$	202		203
KazMunayGas National Co., JSC 6.38%, 4/9/21 (b)(f)		900		986
Mexico Government International Bond 3.63%, 3/15/22		868		871
Petroleos Mexicanos 4.88%, 1/24/22		1,000		1,048
Poland Government International Bond 5.00%, 3/23/22		1,000		1,094
Portugal Obrigacoes do Tesouro OT 4.10%, 4/15/37 (b)	EUR	2,100		2,694
Spain Government International Bond 4.00%, 3/6/18 (b)	$	650		688
				10,035
U.S. Agency Securities (1.8%)
Federal Home Loan Mortgage Corporation, 3.75%, 3/27/19		2,520		2,752
6.75%, 3/15/31		470		656
				3,408
U.S. Treasury Securities (8.7%)
U.S. Treasury Bonds, 2.75%, 11/15/42		5,100		4,347
3.13%, 2/15/43		2,000		1,841
U.S. Treasury Note 0.88%, 1/31/17		10,500		10,514
				16,702
Total Fixed Income Securities (Cost $175,785)				179,747
	Shares
Short-Term Investments (20.4%)
Securities held as Collateral on Loaned Securities (3.4%)
Investment Company (2.7%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F)		5,229,386		5,229
	Face Amount (000)
Repurchase Agreement (0.7%)
Barclays Capital, Inc., (0.06%, dated 3/31/14, due 4/1/14; proceeds $1,320; fully collateralized by a U.S. Government Obligation; 1.50% due 8/31/18; valued at $1,346)	$	1,320		1,320
Total Securities held as Collateral on Loaned Securities (Cost $6,549)				6,549

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Shares		Value (000)
Investment Company (9.1%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F) (Cost $17,503)		17,503,393	$	17,503
	Face Amount (000)
U.S. Treasury Securities (7.9%)
U.S. Treasury Bills, 0.06%, 6/26/14 (k)	$	15,100		15,099
0.06%, 8/21/14 (k)(l)		80		80
Total U.S. Treasury Securities (Cost $15,178)				15,179
Total Short-Term Investments (Cost $39,230)				39,231
Total Investments (114.0%) (Cost $215,015) Including $6,603 of Securities Loaned (m)				218,978
Liabilities in Excess of Other Assets (-14.0%)				(26,898	)
Net Assets (100.0%)			$	192,080

(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 31, 2014.

(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 31, 2014.

(e)  When-issued security.

(f)  All or a portion of this security was on loan at March 31, 2014.

(g)  Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of March 31, 2014.

(h)  Issuer in bankruptcy.

(i)  Non-income producing security; bond in default.

(j)  Multi-step coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2014. Maturity date disclosed is the ultimate maturity date.

(k)  Rate shown is the yield to maturity at March 31, 2014.

(l)  All or a portion of the security was pledged to cover margin requirements for swap agreements.

(m)  Securities are available for collateral in connection with purchase of when-issued securities, securities purchased on a forward commitment basis, open foreign currency forward exchange contracts, 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.

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at March 31, 2014:

Counterparty	Currency to Deliver (000)			Value (000)			Settlement Date	In Exchange For (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Deutsche Bank AG London	USD	1,136		$	1,136		4/3/14	EUR	821		$	1,131		$	(5	)
Deutsche Bank AG London	USD	6			6		4/3/14	MXN	74			6			(—	@)
Deutsche Bank AG London	USD	1,033			1,033		4/3/14	MXN	13,575			1,040			7
JPMorgan Chase Bank NA	CAD	2,982			2,697		4/3/14	USD	2,688			2,688			(9	)
JPMorgan Chase Bank NA	CHF	2,570			2,907		4/3/14	USD	2,918			2,918			11
JPMorgan Chase Bank NA	USD	—	@		—	@	4/3/14	CAD	—	@		—	@		—	@
UBS AG	EUR	3,147			4,336		4/3/14	USD	4,334			4,334			(2	)
UBS AG	USD	2,702			2,702		4/3/14	CAD	2,982			2,697			(5	)
UBS AG	USD	2,907			2,907		4/3/14	CHF	2,570			2,908			1
UBS AG	USD	3,203			3,203		4/3/14	EUR	2,326			3,205			2
Wells Fargo Bank NA	MXN	13,648			1,045		4/3/14	USD	1,021			1,021			(24	)
Deutsche Bank AG London	MXN	74			6		5/6/14	USD	6			6			—	@
UBS AG	CAD	2,982			2,695		5/6/14	USD	2,700			2,700			5
UBS AG	CHF	2,570			2,908		5/6/14	USD	2,907			2,907			(1	)
UBS AG	EUR	2,326			3,205		5/6/14	USD	3,203			3,203			(2	)
				$	30,786						$	30,764		$	(22	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Futures Contracts:

The Portfolio had the following futures contracts open at March 31, 2014:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		100	$	21,956		Jun-14	$	(28	)
U.S. Treasury Long Bond		61		8,126		Jun-14		12
U.S. Treasury Ultra Long Bond		49		7,079		Jun-14		122
Short:
U.S. Treasury 5 yr. Note		58		(6,899	)	Jun-14		24
U.S. Treasury 10 yr. Note		67		(8,275	)	Jun-14		49
							$	179

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 31, 2014:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Depreciation (000)			Value (000)			Credit Rating of Reference Obligation†
Barclays Bank PLC Quest Diagnostics Inc.	Buy	$	995		1.00	%	3/20/19	$	19		$	(15	)	$	4		BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		950		1.00		12/20/18		(16	)		(6	)		(22	)	BBB
		$	1,945					$	3		$	(21	)	$	(18	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 31, 2014:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Bank of America NA	3 Month LIBOR	Receive		2.10	%	2/5/23	$	2,990	$	134
Deutsche Bank AG	3 Month LIBOR	Receive		2.80		5/1/43		2,620		340
Goldman Sachs International	3 Month LIBOR	Pay		2.04		1/22/19	CAD	8,980		38
Goldman Sachs International	3 Month LIBOR	Receive		2.09		2/15/23	$	4,760		223
Goldman Sachs International	3 Month LIBOR	Receive		2.95		1/22/24	CAD	4,880		(72	)
Goldman Sachs International	3 Month LIBOR	Receive		2.90		5/13/43	$	2,620		291
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.79		1/24/19		9,610		(49	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Pay		2.96		1/24/24		5,240		94
Royal Bank of Canada	3 Month LIBOR	Receive		2.06		2/6/23		4,550		222
									$	1,221

@    Value is less than $500.

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

*    Cleared swap agreement, the broker for which is Morgan Stanley & Co., LLC.

LIBOR  London Interbank Offered Rate.

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

EUR  —  Euro

MXN  —  Mexican Peso

USD  —  United States Dollar

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Agency Fixed Rate Mortgages		19.5	%
Other**		18.5
Industrials		16.7
Short-Term Investments		15.4
Finance		13.2
Mortgages — Other		8.8
U.S. Treasury Securities		7.9
Total Investments		100.0	%***

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2014.

**  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 $52,335,000 with net unrealized appreciation of approximately $179,000. Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $22,000 and does not include open swap agreements with net unrealized appreciation of approximately $1,200,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities	March 31, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $192,283)	$	196,246
Investment in Security of Affiliated Issuer, at Value (Cost $22,732)		22,732
Total Investments in Securities, at Value (Cost $215,015)		218,978
Cash		222
Receivable for Investments Sold		2,670
Interest Receivable		1,333
Unrealized Appreciation on Swap Agreements		1,248
Receivable for Variation Margin on Futures Contracts		276
Tax Reclaim Receivable		29
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		26
Premium Paid on Open Swap Agreements		19
Receivable for Portfolio Shares Sold		12
Receivable from Affiliate		1
Other Assets		14
Total Assets		224,828
Liabilities:
Payable for Investments Purchased		23,747
Collateral on Securities Loaned, at Value		6,760
Due to Broker		1,430
Payable for Portfolio Shares Redeemed		261
Payable for Trustees' Fees and Expenses		121
Payable for Sub Transfer Agency Fees		21
Payable for Sub Transfer Agency Fees — Class I		96
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Unrealized Depreciation on Swap Agreements		93
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		48
Payable for Professional Fees		43
Payable for Advisory Fees		39
Premium Received on Open Swap Agreements		16
Payable for Administration Fees		13
Payable for Custodian Fees		9
Payable for Variation Margin on Swap Agreements		10
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Transfer Agent Fees — Class I		—	@
Payable for Transfer Agent Fees — Class A		—	@
Payable for Transfer Agent Fees — Class L		—	@
Other Liabilities		39
Total Liabilities		32,748
Net Assets	$	192,080
Net Assets Consist Of:
Paid-in-Capital	$	666,410
Accumulated Undistributed Net Investment Income		3,188
Accumulated Net Realized Loss		(482,839	)
Unrealized Appreciation (Depreciation) on:
Investments		3,963
Futures Contracts		179
Swap Agreements		1,200
Foreign Currency Forward Exchange Contracts		(22	)
Foreign Currency Translations		1
Net Assets	$	192,080

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2014 (000)
CLASS I:
Net Assets	$	188,453
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		18,523,663
Net Asset Value, Offering and Redemption Price Per Share	$	10.17
CLASS A:
Net Assets	$	3,535
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		346,984
Net Asset Value, Redemption Price Per Share	$	10.19
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.45
Maximum Offering Price Per Share	$	10.64
CLASS L:
Net Assets	$	92
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		8,995
Net Asset Value, Offering and Redemption Price Per Share	$	10.18
(1) Including: Securities on Loan, at Value:	$	6,603

@  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 31, 2014 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Operations	Six Months Ended March 31, 2014 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	3,602
Income from Securities Loaned — Net		9
Dividends from Security of Affiliated Issuer (Note F)		3
Total Investment Income		3,614
Expenses:
Advisory Fees (Note B)		352
Sub Transfer Agency Fees — Class I		148
Sub Transfer Agency Fees — Class A		2
Sub Transfer Agency Fees — Class L		—	@
Administration Fees (Note C)		75
Professional Fees		73
Shareholder Reporting Fees		38
Custodian Fees (Note E)		37
Pricing Fees		24
Registration Fees		21
Shareholder Services Fees — Class A (Note D)		4
Distribution and Shareholder Services Fees — Class L (Note D)		—	@
Transfer Agency Fees — Class I		2
Transfer Agency Fees — Class A		1
Transfer Agency Fees — Class L		1
Trustees' Fees and Expenses		2
Other Expenses		47
Total Expenses		827
Reimbursement of Class Specific Expenses — Class I (Note B)		(150	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Waiver of Advisory Fees (Note B)		(87	)
Rebate from Morgan Stanley Affiliate (Note F)		(6	)
Net Expenses		582
Net Investment Income		3,032
Realized Gain (Loss):
Investments Sold		1,650
Foreign Currency Forward Exchange Contracts		(226	)
Foreign Currency Transactions		(6	)
Futures Contracts		244
Swap Agreements		(375	)
Net Realized Gain		1,287
Change in Unrealized Appreciation (Depreciation):
Investments		3,083
Foreign Currency Forward Exchange Contracts		267
Foreign Currency Translations		(2	)
Futures Contracts		128
Swap Agreements		47
Net Change in Unrealized Appreciation (Depreciation)		3,523
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		4,810
Net Increase in Net Assets Resulting from Operations	$	7,842

@  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 31, 2014

Core Plus Fixed Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2014 (unaudited) (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	3,032		$	6,687
Net Realized Gain		1,287			1,559
Net Change in Unrealized Appreciation (Depreciation)		3,523			(8,974	)
Net Increase (Decrease) in Net Assets Resulting from Operations		7,842			(728	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(2,884	)		(11,071	)
Class A:
Net Investment Income		(45	)		(175	)
Class H*:
Net Investment Income		—			(2	)**
Class L:
Net Investment Income		(1	)		(5	)
Total Distributions		(2,930	)		(11,253	)
Capital Share Transactions:(1)
Class I:
Subscribed		10,077			15,295
Distributions Reinvested		2,880			10,981
Redeemed		(16,339	)		(54,815	)
Class A:
Subscribed		720			982
Distributions Reinvested		45			175
Conversion from Class H		—			45
Redeemed		(470	)		(1,527	)
Class H*:
Subscribed		—			36	**
Distributions Reinvested		—			1	**
Conversion to Class A		—			(45	)**
Redeemed		—			(28	)**
Class L:
Subscribed		—			3
Distributions Reinvested		1			5
Redeemed		—			(43	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(3,086	)		(28,935	)
Total Increase (Decrease) in Net Assets		1,826			(40,916	)
Net Assets:
Beginning of Period		190,254			231,170
End of Period (Including Accumulated Undistributed Net Investment Income of $3,188 and $3,086)	$	192,080		$	190,254
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		1,006			1,496
Shares Issued on Distributions Reinvested		292			1,077
Shares Redeemed		(1,642	)		(5,392	)
Net Decrease in Class I Shares Outstanding		(344	)		(2,819	)
Class A:
Shares Subscribed		72			96
Shares Issued on Distributions Reinvested		5			17
Conversion from Class H		—			5
Shares Redeemed		(47	)		(151	)
Net Increase (Decrease) in Class A Shares Outstanding		30			(33	)
Class H*:
Shares Subscribed		—			4	**
Shares Issued on Distributions Reinvested		—			—	@@**
Conversion to Class A		—			(5	)**
Shares Redeemed		—			(2	)**
Net (Decrease) in Class H Shares Outstanding		—			(3	)
Class L:
Shares Subscribed		—			—	@@
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		—			(3	)
Net Increase (Decrease) in Class L Shares Outstanding		—	@@		(3	)

@@  Amount is less than 500 shares.

*  Effective September 9, 2013, Class H shares converted into Class A shares.

**  For the period October 1, 2012 through September 6, 2013.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Core Plus Fixed Income Portfolio

	Class I
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	9.91		$	10.48		$	9.92		$	9.96		$	9.41		$	9.41
Income (Loss) from Investment Operations:
Net Investment Income†		0.16			0.32			0.39			0.38			0.34			0.41
Net Realized and Unrealized Gain (Loss)		0.26			(0.36	)		0.63			(0.02	)		0.57			0.27
Total from Investment Operations		0.42			(0.04	)		1.02			0.36			0.91			0.68
Distributions from and/or in Excess of:
Net Investment Income		(0.16	)		(0.53	)		(0.46	)		(0.40	)		(0.36	)		(0.68	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	10.17		$	9.91		$	10.48		$	9.92		$	9.96		$	9.41
Total Return++		4.24	%#		(0.42	)%		10.62	%		3.74	%		10.02	%		7.56	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	188,453		$	187,014		$	227,331		$	295,226		$	434,657		$	797,788
Ratio of Expenses to Average Net Assets (1)		0.61	%+††*		0.71	%+^		0.62	%+		0.66	%+††		0.51	%+††		0.49	%+
Ratio of Net Investment Income to Average Net Assets (1)		3.24	%+††*		3.14	%+^		3.88	%+		3.88	%+††		3.53	%+††		4.56	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.01	%		0.00	%§		0.01	%		0.00	%§
Portfolio Turnover Rate		134	%#		226	%		189	%		225	%		270	%		402	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.87	%††*		0.73	%		N/A			N/A			N/A			0.50	%+
Net Investment Income to Average Net Assets		2.98	%††*		3.12	%		N/A			N/A			N/A			4.55	%+

†  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.

+  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%.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.62% for Class I shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Core Plus Fixed Income Portfolio

	Class A
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	9.93		$	10.50		$	9.94		$	9.97		$	9.40		$	9.40
Income (Loss) from Investment Operations:
Net Investment Income†		0.14			0.29			0.37			0.36			0.31			0.41
Net Realized and Unrealized Gain (Loss)		0.26			(0.36	)		0.62			(0.02	)		0.57			0.24
Total from Investment Operations		0.40			(0.07	)		0.99			0.34			0.88			0.65
Distributions from and/or in Excess of:
Net Investment Income		(0.14	)		(0.50	)		(0.43	)		(0.37	)		(0.31	)		(0.65	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	10.19		$	9.93		$	10.50		$	9.94		$	9.97		$	9.40
Total Return++		4.07	%#		(0.68	)%		10.31	%		3.57	%		9.73	%		7.26	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,535		$	3,152		$	3,673		$	4,654		$	5,732		$	6,442
Ratio of Expenses to Average Net Assets (1)		0.96	%+††*		0.96	%+^		0.87	%+		0.91	%+††		0.76	%+††		0.73	%+
Ratio of Net Investment Income to Average Net Assets (1)		2.89	%+††*		2.89	%+^		3.63	%+		3.63	%+††		3.28	%+††		4.56	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.01	%		0.00	%§		0.01	%		0.00	%§
Portfolio Turnover Rate		134	%#		226	%		189	%		225	%		270	%		402	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.11	%††*		0.98	%		N/A			N/A			N/A			N/A
Net Investment Income to Average Net Assets		2.74	%††*		2.87	%		N/A			N/A			N/A			N/A

†  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.

+  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%.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.97% for Class A shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Core Plus Fixed Income Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 31, 2014 (unaudited)			Year Ended September 30, 2013			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	9.92		$	10.49		$	10.14
Income (Loss) from Investment Operations:
Net Investment Income†		0.13			0.27			0.11
Net Realized and Unrealized Gain (Loss)		0.26			(0.36	)		0.35
Total from Investment Operations		0.39			(0.09	)		0.46
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.48	)		(0.11	)
Net Asset Value, End of Period	$	10.18		$	9.92		$	10.49
Total Return++		3.94	%#		(0.95	)%		4.59	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	92		$	88		$	130
Ratio of Expenses to Average Net Assets (1)		1.20	%+††*		1.21	%+^^		1.16	%+*
Ratio of Net Investment Income to Average Net Assets (1)		2.65	%+††*		2.64	%+^^		2.60	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.01	%*
Portfolio Turnover Rate		134	%#		226	%		189	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.84	%††*		1.27	%		N/A
Net Investment Income to Average Net Assets		1.01	%††*		2.58	%		N/A

^  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.

+  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.

^^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.22% for Class L shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 three classes of shares — Class I, Class A 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) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (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 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) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (6) 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 (7) short-term taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

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. 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

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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. 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 31, 2014.

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	$	—	$	1,355	$	—	$	1,355
Agency Fixed Rate Mortgages		—		41,401		—		41,401
Asset-Backed Securities		—		2,252		—		2,252
Collateralized Mortgage Obligations — Agency Collateral Series		—		7,994		—		7,994
Commercial Mortgage-Backed Securities		—		7,988		—		7,988
Corporate Bonds		—		67,563		—		67,563
Mortgages — Other		—		18,785		—		18,785
Municipal Bonds		—		2,264		—		2,264
Sovereign		—		10,035		—		10,035
U.S. Agency Securities		—		3,408		—		3,408
U.S. Treasury Securities		—		16,702		—		16,702
Total Fixed Income Securities		—		179,747		—		179,747
Short-Term Investments
Investment Company		22,732		—		—		22,732
Repurchase Agreement		—		1,320		—		1,320
U.S. Treasury Securities		—		15,179		—		15,179
Total Short-Term Investments		22,732		16,499		—		39,231
Foreign Currency Forward Exchange Contracts		—		26		—		26
Futures Contracts		207		—		—		207
Interest Rate Swap Agreements		—		1,342		—		1,342
Total Assets		22,939		197,614		—		220,553

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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:
Foreign Currency Forward Exchange Contracts	$	—		$	(48	)	$	—	$	(48	)
Futures Contracts		(28	)		—			—		(28	)
Credit Default Swap Agreements		—			(21	)		—		(21	)
Interest Rate Swap Agreements		—			(121	)		—		(121	)
Total Liabilities		(28	)		(190	)		—		(218	)
Total	$	22,911		$	197,424		$	—	$	220,335

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 31, 2014, the Portfolio did not have any investments transfer between investment levels.

3.  Foreign Currency Translation and Foreign Investments: The books and records of the Portfolio are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars 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 Portfolio are presented at the foreign exchange rates and market values at the close of the period, the Portfolio 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 Portfolio 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 forward 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 Portfolio'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.

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 Portfolio values the foreign shares at the closing exchange price of the local shares.

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, in part, on the value of an

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. 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 the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. 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 the risk of 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, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index 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 contracts 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 contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts 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. There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with whom the Portfolio has open positions in the futures contract.

Swaps: The Portfolio may enter into over-the-counter ("OTC") swap contracts or cleared swap transactions. A swap contract 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, indices, reference rates, currencies or other instruments. Typically 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 contract 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 party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Portfolio's ultimate counterparty is a clearinghouse rather than a bank, dealer or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring 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 commonly referred to as credit default swaps. The Portfolio may be either the buyer or seller in a credit default swap. Where the Portfolio is the buyer of a credit default swap contract, it would typically be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract only in the event of a default or similar event by the issuer of the debt obligation. If no default occurs, the Portfolio would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Portfolio is the seller of a credit default swap contract, it typically 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 the default or similar event by the issuer of the referenced debt obligation. The use of credit default swaps could result in losses to the Portfolio if the Adviser fails to correctly evaluate the creditworthiness of the issuer 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. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

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 Forward 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 securities or foreign currencies at a future date. A foreign currency forward exchange contract ("currency contract") is a negotiated agreement between the contracting parties to exchange a specified amount of currency at a specified future time at a specified rate. The rate 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. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it matures. 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 additional risk to the extent that

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 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 tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 31, 2014.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contracts	Unrealized Appreciation on Foreign Currency Forward Exchange Contracts	Currency Risk	$	26
Futures Contracts	Variation Margin	Interest Rate Risk		207	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Interest Rate Risk		1,248
Swap Agreements	Variation Margin	Interest Rate Risk		94	(a)
Total			$	1,575
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contracts	Unrealized Depreciation on Foreign Currency Forward Exchange Contracts	Currency Risk	$	(48	)
Futures Contracts	Variation Margin	Interest Rate Risk		(28	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(21	)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Interest Rate Risk		(72	)
Swap Agreements	Variation Margin	Interest Rate Risk		(49	)(a)
Total			$	(218	)

(a) This amount represents the cumulative appreciation (depreciation) 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 31, 2014 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(226	)
Interest Rate Risk	Futures Contracts		244
Credit Risk	Swap Agreements		(75	)
Interest Rate Risk	Swap Agreements		(300	)
Total		$	(357	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	267
Interest Rate Risk	Futures Contracts		128
Credit Risk	Swap Agreements		27
Interest Rate Risk	Swap Agreements		20
Total		$	442

At March 31, 2014, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	26	$	(48	)
Swap Agreements		1,248		(93	)
Total	$	1,274	$	(141	)

(b) Excludes exchange-traded derivatives.

(c) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

The Portfolio typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreements, the Portfolio typically may offset with the counterparty certain derivative financial instrument's payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swaps, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Portfolio and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party. In the event of a default by a Master Agreements counterparty, the return of collateral with market value in excess of the Portfolio's net liability, held by the defaulting party, may be delayed or denied.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2014.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Received(d) (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	134	$	—		$	—		$	134
Deutsche Bank AG		340		—			(340	)		0
Deutsche Bank AG London		7		(5	)		—			2
Goldman Sachs International		552		(72	)		(480	)		0
JPMorgan Chase Bank NA		11		(9	)		—			2
Royal Bank of Canada		222		—			(222	)		0
UBS AG		8		(8	)		—			0
Total	$	1,274	$	(94	)	$	(1,042	)	$	138

(d) In some instances, the actual collateral received may be more than the amount shown here due to overcollateralization.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	21	$	—		$	—	$	21
Deutsche Bank AG London		5		(5	)		—		0
Goldman Sachs International		72		(72	)		—		0
JPMorgan Chase Bank NA		9		(9	)		—		0
UBS AG		10		(8	)		—		2
Wells Fargo Bank NA		24		—			—		24
Total	$	141	$	(94	)	$	—	$	47

For the six months ended March 31, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	33,424,000
Futures Contracts:
Average monthly original value	$	57,857,000
Swap Agreements:
Average monthly notional amount	$	55,775,000

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 Portfolio has the right under the lending agreement to recover the securities from the borrower on demand.

The following table presents financial instruments that are subject to enforceable netting arrangements as of March 31, 2014.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	6,603	(e)		—	$	(6,603	)(f)(g)	$	0

(e) Represents market value of loaned securities at period end.

(f) The Portfolio received cash collateral of approximately $6,760,000, of which approximately $6,549,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of March 31, 2014 there was uninvested cash of approximately $211,000, which is not reflected in the Portfolio of Investments.

(g) The actual collateral received is greater than the amount shown here due to overcollateralization.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

6.  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 a month or more 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 — distribution, transfer agency and sub transfer agency fees) 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	%		0.300	%

For the six months ended March 31, 2014, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.28% 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 0.62% for Class I shares, 0.97% for Class A shares and 1.22% for Class L shares. The fee waivers and/or expense reimbursements will continue for at least one year or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2014, approximately $87,000 of advisory fees were waived and approximately $152,000 of other expenses were reimbursed by the Adviser 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 Portfolio.

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

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

Agreement. The Fund has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, 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 A 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 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 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 A and Class L shares.

E. 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.

F. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $26,640,000 and $34,670,000, respectively. For the six months ended March 31, 2014, purchases and sales of long-term U.S. Government securities were approximately $217,098,000 and $208,600,000, 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 31, 2014,

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 31, 2014 is as follows:

Value September 30, 2013 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2014 (000)
$	21,525	$	52,629	$	51,422	$	3	$	22,732

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.

G. 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.

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, 2013, remains subject to examination by taxing authorities.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 years 2013 and 2012 was as follows:

2013 Distributions Paid From: Ordinary Income (000)		2012 Distributions Paid From: Ordinary Income (000)
$	11,253	$	12,613

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, 2013:

Accumulated Undistributed Net Investment Income (000)		Accumulated Net Realized Loss (000)			Paid-in Capital (000)
$	1,343	$	(1,343	)		—

At September 30, 2013, 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)
$	2,772		—

At March 31, 2014, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $8,000,000 and the aggregate gross unrealized depreciation is approximately $4,037,000 resulting in net unrealized appreciation of approximately $3,963,000.

At September 30, 2013, the Portfolio had available for Federal income tax purposes unused short-term capital losses of approximately $1,286,000 that do not have an expiration date.

In addition, At September 30, 2013, 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.

H. Other: At March 31, 2014, 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% and 24%, for Class I and Class A shares, respectively.

I. Accounting Pronouncement: In June 2013, FASB issued Accounting Standards Update 2013-08 Financial Services — Investment Companies (Topic 946) — Amendments to the Scope, Measurement, and Disclosure Requirements ("ASU 2013-08") which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. ASU 2013-08 sets forth a methodology for determining whether an entity should be characterized as an investment company and prescribes fair value accounting for an investment company's non-controlling ownership interest in another investment company. FASB has determined that a fund registered under the Act automatically meets ASU 2013-08's criteria for an investment company. Although still evaluating the potential impacts of ASU 2013-08 to the Portfolio, management expects that the impact of the Portfolio's adoption will be limited to additional financial statement disclosures.

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014

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 31, 2014

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:

  Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

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.

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Trustee and Officer Information (unaudited)

Trustees

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

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

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

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 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.

32

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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.

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522 Fifth Avenue
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© 2014 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTCPFISAN
909952 EXP 5.31.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Corporate Bond Portfolio

Semi-Annual Report

March 31, 2014

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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	18
U.S. Privacy Policy	27
Trustee and Officer Information	30

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 statement of additional information (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.

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 this Portfolio. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 (the "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,

John H. Gernon
President and Principal Executive Officer

April 2014

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014 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.

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 10/1/13		Actual Ending Account Value 3/31/14		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	$	1,055.80	$	1,021.44	$	3.59	$	3.53		0.70	%
Corporate Bond Portfolio Class A		1,000.00		1,054.00		1,019.70		5.38		5.29		1.05
Corporate Bond Portfolio Class L		1,000.00		1,052.80		1,018.50		6.60		6.49		1.29

*  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 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (97.0%)
Asset-Backed Securities (0.8%)
CVS Pass-Through Trust,
6.04%, 12/10/28	$	120	$	135
8.35%, 7/10/31 (a)		136		177
				312
Collateralized Mortgage Obligation — Agency Collateral Series (0.0%)
Federal Home Loan Mortgage Corporation,
IO STRIPS
8.00%, 1/1/28		21		5
Corporate Bonds (95.9%)
Finance (39.8%)
Abbey National Treasury Services PLC,
3.05%, 8/23/18		120		124
4.00%, 3/13/24 (b)		50		51
Alexandria Real Estate Equities, Inc.
3.90%, 6/15/23		50		48
American Campus Communities Operating Partnership LP
3.75%, 4/15/23		100		96
American Financial Group, Inc.
9.88%, 6/15/19 (b)		225		290
American International Group, Inc.,
4.88%, 6/1/22		100		110
6.40%, 12/15/20		345		412
Bank of America Corp.,
4.00%, 4/1/24 (c)		620		621
5.70%, 1/24/22		125		144
Bank of New York Mellon Corp. (The)
3.65%, 2/4/24		60		61
Barclays Bank PLC
6.05%, 12/4/17 (a)		515		579
BBVA Bancomer SA
6.50%, 3/10/21 (a)		150		163
Bear Stearns Cos., LLC (The)
5.55%, 1/22/17		200		222
BNP Paribas SA
5.00%, 1/15/21		95		106
Boston Properties LP
3.80%, 2/1/24		25		25
Brookfield Asset Management, Inc.
5.80%, 4/25/17		55		60
Capital One Bank, USA NA
3.38%, 2/15/23		342		333
Citigroup, Inc.,
3.88%, 10/25/23		50		50
4.05%, 7/30/22		140		141
4.45%, 1/10/17		125		135
5.50%, 9/13/25		50		53
6.13%, 11/21/17		390		447
6.68%, 9/13/43		50		59
8.13%, 7/15/39		100		145
8.50%, 5/22/19		60		76

	Face Amount (000)		Value (000)
CNA Financial Corp.
5.75%, 8/15/21	$	250	$	288
Cooperatieve Centrale Raiffeisen- Boerenleenbank BA
3.95%, 11/9/22		250		249
Credit Suisse
6.00%, 2/15/18		61		70
Dexus Diversified Trust/Dexus Office Trust
5.60%, 3/15/21 (a)		100		111
Discover Bank
2.00%, 2/21/18		250		249
Five Corners Funding Trust
4.42%, 11/15/23 (a)		200		205
General Electric Capital Corp.,
5.30%, 2/11/21 (b)		120		135
MTN
5.88%, 1/14/38		230		272
Series G
6.00%, 8/7/19		666		783
Goldman Sachs Group, Inc. (The),
3.63%, 1/22/23		480		473
6.75%, 10/1/37		205		236
Goodman Funding Pty Ltd.
6.38%, 4/15/21 (a)		250		284
Hartford Financial Services Group, Inc.
5.50%, 3/30/20 (b)		275		312
HBOS PLC,
Series G
6.75%, 5/21/18 (a)		357		405
Healthcare Trust of America Holdings LP
3.70%, 4/15/23		100		95
HSBC Finance Corp.
6.68%, 1/15/21		135		158
HSBC Holdings PLC,
4.00%, 3/30/22		200		208
4.88%, 1/14/22		100		110
6.50%, 5/2/36		100		118
ING Bank N.V.
5.80%, 9/25/23 (a)		200		214
ING US, Inc.
5.65%, 5/15/53 (d)		100		100
Intesa Sanpaolo SpA
5.25%, 1/12/24		200		206
JPMorgan Chase & Co.,
3.20%, 1/25/23		275		267
3.88%, 2/1/24 (b)		220		222
4.50%, 1/24/22		305		329
Kilroy Realty LP
3.80%, 1/15/23		125		122
Lincoln National Corp.
7.00%, 6/15/40		75		99
Macquarie Group Ltd.
6.00%, 1/14/20 (a)		215		239

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Markel Corp.
3.63%, 3/30/23	$	150	$	146
National Retail Properties, Inc.
3.30%, 4/15/23		150		142
Nationwide Building Society
6.25%, 2/25/20 (a)		260		303
Nationwide Financial Services, Inc.
5.38%, 3/25/21 (a)		275		304
Pacific LifeCorp
6.00%, 2/10/20 (a)		150		171
Piedmont Operating Partnership LP
3.40%, 6/1/23 (b)		125		116
Platinum Underwriters Finance, Inc.,
Series B
7.50%, 6/1/17		234		265
PNC Bank NA
1.13%, 1/27/17		260		259
Post Apartment Homes LP
3.38%, 12/1/22		120		114
Principal Financial Group, Inc.
1.85%, 11/15/17		250		251
Protective Life Corp.
7.38%, 10/15/19		175		213
Prudential Financial, Inc.
5.63%, 6/15/43 (d)		95		97
Realty Income Corp.
3.25%, 10/15/22 (b)		150		143
Santander Holdings USA, Inc.
3.45%, 8/27/18		60		62
Santander US Debt SAU
3.72%, 1/20/15 (a)		200		204
Societe Generale SA
5.00%, 1/17/24 (a)		200		200
Standard Chartered PLC
3.95%, 1/11/23 (a)(b)		200		191
UBS AG
7.50%, 7/15/25		100		125
UnitedHealth Group, Inc.,
1.40%, 10/15/17		85		85
2.75%, 2/15/23 (b)		55		52
2.88%, 3/15/23 (b)		255		242
Weingarten Realty Investors
3.38%, 10/15/22		150		142
Wells Fargo & Co.,
1.25%, 7/20/16		300		303
2.15%, 1/15/19 (b)		60		60
3.00%, 1/22/21		200		200
Series M
3.45%, 2/13/23		125		122
4.13%, 8/15/23 (b)		130		132

	Face Amount (000)		Value (000)
Xilinx, Inc.
3.00%, 3/15/21	$	75	$	74
				15,828
Industrials (45.3%)
ABB Treasury Center USA, Inc.
4.00%, 6/15/21 (a)		50		53
ADT Corp. (The)
6.25%, 10/15/21 (a)(b)		100		103
Alfa SAB de CV
5.25%, 3/25/24 (a)(b)		200		205
Altria Group, Inc.,
2.85%, 8/9/22		115		108
5.38%, 1/31/44		80		84
American Airlines Pass-Through Trust,
4.00%, 1/15/27 (a)		195		196
4.95%, 7/15/24 (a)		194		208
American Tower Corp.
3.50%, 1/31/23		100		95
Amgen, Inc.
5.15%, 11/15/41		198		205
Anheuser-Busch InBev Finance, Inc.
3.70%, 2/1/24		200		202
Apple, Inc.
2.40%, 5/3/23 (b)		225		209
ARAMARK Corp.
5.75%, 3/15/20		95		101
ArcelorMittal
10.35%, 6/1/19		134		170
Ashland, Inc.
6.88%, 5/15/43		50		51
AstraZeneca PLC
6.45%, 9/15/37		125		158
AT&T, Inc.
6.30%, 1/15/38 (b)		275		314
Barrick Gold Corp.
4.10%, 5/1/23		100		95
BE Aerospace, Inc.
5.25%, 4/1/22		100		103
BHP Billiton Finance USA Ltd.
3.85%, 9/30/23		200		205
Bombardier, Inc.
6.13%, 1/15/23 (a)(b)		116		118
British Airways PLC
4.63%, 6/20/24 (a)		175		183
Burlington Northern Santa Fe LLC,
3.05%, 3/15/22		150		146
4.40%, 3/15/42		75		71
5.65%, 5/1/17		130		146
Caterpillar Financial Services Corp.,
Series G
2.45%, 9/6/18 (b)		200		204

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
CC Holdings GS V LLC/Crown Castle GS III Corp.
3.85%, 4/15/23	$	150	$	146
CEVA Group PLC
7.00%, 3/1/21 (a)(b)		75		77
Cimarex Energy Co.
5.88%, 5/1/22		150		163
Coca-Cola Co.
3.20%, 11/1/23		125		123
Continental Resources, Inc.
5.00%, 9/15/22		175		184
Covidien International Finance SA
2.95%, 6/15/23 (b)		175		166
Crown Castle International Corp.
5.25%, 1/15/23		75		77
Daimler Finance North America LLC
8.50%, 1/18/31		161		240
Deere & Co.
3.90%, 6/9/42		60		56
DirecTV Holdings LLC/DirecTV Financing Co., Inc.
3.80%, 3/15/22		180		178
Ecopetrol SA
5.88%, 9/18/23 (b)		130		142
Eldorado Gold Corp.
6.13%, 12/15/20 (a)		105		106
ENTEL Chile SA
4.88%, 10/30/24 (a)		200		202
ESAL GmbH
6.25%, 2/5/23 (a)		200		190
Express Scripts Holding Co.
2.65%, 2/15/17		100		103
Fiserv, Inc.
3.13%, 6/15/16		190		198
Ford Motor Co.
4.75%, 1/15/43		100		97
Ford Motor Credit Co., LLC,
4.21%, 4/15/16		200		212
5.88%, 8/2/21		200		230
Freeport-McMoRan Copper & Gold, Inc.
3.88%, 3/15/23 (b)		120		115
General Electric Co.
4.50%, 3/11/44		50		51
General Motors Co.
4.88%, 10/2/23 (a)		125		129
Gilead Sciences, Inc.
4.80%, 4/1/44		100		103
Glencore Funding LLC
4.13%, 5/30/23 (a)(b)		170		163
Goldcorp, Inc.
3.70%, 3/15/23		225		212
Harley-Davidson Funding Corp.
6.80%, 6/15/18 (a)		245		287

	Face Amount (000)		Value (000)
HCA, Inc.
4.75%, 5/1/23	$	130	$	129
Heathrow Funding Ltd.
4.88%, 7/15/21 (a)(b)		190		205
Hewlett-Packard Co.,
3.75%, 12/1/20		50		51
4.65%, 12/9/21		110		117
Home Depot, Inc.
5.88%, 12/16/36		59		71
Host Hotels & Resorts LP,
Series D
3.75%, 10/15/23 (b)		75		73
Incitec Pivot Ltd.
4.00%, 12/7/15 (a)		160		166
Intel Corp.
2.70%, 12/15/22 (b)		200		191
Juniper Networks, Inc.
4.50%, 3/15/24		75		76
Koninklijke Philips N.V.
3.75%, 3/15/22		300		310
Kroger Co. (The)
6.90%, 4/15/38		80		99
Lowe's Cos., Inc.
5.00%, 9/15/43		50		53
Lubrizol Corp.
8.88%, 2/1/19		165		213
MasTec, Inc.
4.88%, 3/15/23		140		138
McKesson Corp.,
2.70%, 12/15/22		100		93
4.88%, 3/15/44		30		31
MDC Partners, Inc.
6.75%, 4/1/20 (a)		100		106
Medtronic, Inc.
3.63%, 3/15/24 (b)		200		201
Merck & Co., Inc.
2.80%, 5/18/23		250		238
NBC Universal Media LLC
5.95%, 4/1/41		350		415
NetApp, Inc.
2.00%, 12/15/17		100		101
Nexen Energy ULC
6.40%, 5/15/37		100		115
NOVA Chemicals Corp.
5.25%, 8/1/23 (a)		120		129
Novartis Capital Corp.
3.40%, 5/6/24		200		200
Omega Healthcare Investors, Inc.
4.95%, 4/1/24 (a)		100		98
Omnicom Group, Inc.
3.63%, 5/1/22		95		95
Oracle Corp.
2.50%, 10/15/22		200		188

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Packaging Corp. of America
4.50%, 11/1/23	$	110	$	114
PepsiCo, Inc.
3.60%, 3/1/24		200		201
Petro-Canada
6.80%, 5/15/38		130		165
Philip Morris International, Inc.
4.50%, 3/20/42		150		147
Phillips 66
4.30%, 4/1/22		75		79
Pioneer Natural Resources Co.
3.95%, 7/15/22		175		179
Praxair, Inc.
1.25%, 11/7/18 (b)		175		169
Qtel International Finance Ltd.
3.25%, 2/21/23 (a)		225		212
QVC, Inc.
4.38%, 3/15/23 (b)		150		148
Rockwood Specialties Group, Inc.
4.63%, 10/15/20		135		140
RR Donnelley & Sons Co.
7.88%, 3/15/21		120		138
Salix Pharmaceuticals Ltd.
6.00%, 1/15/21 (a)		100		107
Silgan Holdings, Inc.
5.50%, 2/1/22 (a)		100		103
Sinopec Group Overseas Development 2012 Ltd.
2.75%, 5/17/17 (a)		200		206
T-Mobile USA, Inc.
6.25%, 4/1/21		140		149
Telefonaktiebolaget LM Ericsson
4.13%, 5/15/22		100		102
Telefonica Europe BV
8.25%, 9/15/30		184		240
Tesoro Corp.
5.38%, 10/1/22 (b)		45		47
Teva Pharmaceutical Finance Co. BV
2.95%, 12/18/22 (b)		70		65
Teva Pharmaceutical Finance IV BV
3.65%, 11/10/21 (b)		180		181
Time Warner Cable, Inc.,
4.50%, 9/15/42 (b)		75		69
6.75%, 6/15/39		80		95
Time Warner, Inc.
7.70%, 5/1/32		141		190
Transocean, Inc.
6.38%, 12/15/21 (b)		100		113
United Airlines Pass-Through Trust
4.30%, 8/15/25 (b)		225		232
United Rentals North America, Inc.
5.75%, 11/15/24		80		81

	Face Amount (000)		Value (000)
United Technologies Corp.
1.80%, 6/1/17	$	500	$	509
US Airways Pass-Through Trust
3.95%, 11/15/25		75		76
Verisk Analytics, Inc.
5.80%, 5/1/21		185		206
Verizon Communications, Inc.,
3.85%, 11/1/42		240		202
5.15%, 9/15/23		100		110
6.35%, 4/1/19		125		148
6.55%, 9/15/43		400		489
Viacom, Inc.
5.85%, 9/1/43		125		138
Weatherford International Ltd.
4.50%, 4/15/22		225		236
WM Wrigley Jr Co.
2.90%, 10/21/19 (a)		230		232
Wyndham Worldwide Corp.
4.25%, 3/1/22		255		258
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.
5.38%, 3/15/22 (b)		115		121
				17,982
Utilities (10.8%)
Access Midstream Partners LP/ACMP Finance Corp.
4.88%, 5/15/23		145		147
Appalachian Power Co.
7.00%, 4/1/38		150		197
Boston Gas Co.
4.49%, 2/15/42 (a)(b)		125		125
Buckeye Partners LP
4.15%, 7/1/23		175		175
CEZ AS
4.25%, 4/3/22 (a)		200		205
DCP Midstream Operating LP
3.88%, 3/15/23 (b)		150		147
Enel Finance International N.V.
5.13%, 10/7/19 (a)		200		220
Energy Transfer Partners LP,
3.60%, 2/1/23		100		96
4.90%, 2/1/24		150		156
EnLink Midstream Partners LP
2.70%, 4/1/19		175		176
Enterprise Products Operating LLC,
Series N
6.50%, 1/31/19		229		271
Exelon Generation Co., LLC
6.25%, 10/1/39 (b)		145		161
Iberdrola Finance Ireland Ltd.
5.00%, 9/11/19 (a)		175		192
Jersey Central Power & Light Co.
4.70%, 4/1/24 (a)		200		208

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Utilities (cont'd)
Kinder Morgan Energy Partners LP,
2.65%, 2/1/19	$	50	$	50
3.50%, 9/1/23		125		118
5.95%, 2/15/18		300		340
Nevada Power Co.,
Series N
6.65%, 4/1/36		150		195
Plains All American Pipeline LP/PAA Finance Corp.
6.70%, 5/15/36		61		75
PSEG Power LLC
8.63%, 4/15/31 (b)		200		284
Sempra Energy
6.00%, 10/15/39		125		150
Spectra Energy Capital LLC
8.00%, 10/1/19		50		61
TransAlta Corp.
4.50%, 11/15/22		235		232
Virginia Electric and Power Co.
2.95%, 1/15/22		325		321
				4,302
				38,112
Variable Rate Senior Loan Interest (0.3%)
Industrial (0.3%)
Aspect Software, Inc.,
Term B
7.25%, 5/7/16		99		100
Total Fixed Income Securities (Cost $37,226)				38,529
	Shares
Short-Term Investments (15.8%)
Securities held as Collateral on Loaned Securities (14.4%)
Investment Company (11.5%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F)		4,555,613		4,556
	Face Amount (000)
Repurchase Agreement (2.9%)
Barclays Capital, Inc., (0.06%, dated 3/31/14, due 4/1/14; proceeds $1,149; fully collateralized by a U.S. Government Obligation; 1.50% due 8/31/18; valued at $1,172)	$	1,149		1,149
Total Securities held as Collateral on Loaned Securities (Cost $5,705)				5,705
	Shares
Investment Company (0.8%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F) (Cost $333)		332,999		333

	Face Amount (000)		Value (000)
U.S. Treasury Security (0.6%)
U.S. Treasury Bill
0.06%, 8/21/14 (e)(f) (Cost $251)	$	251	$	251
Total Short-Term Investments (Cost $6,289)				6,289
Total Investments (112.8%) (Cost $43,515) Including $5,756 of Securities Loaned (g)				44,818
Liabilities in Excess of Other Assets (-12.8%)				(5,082	)
Net Assets (100.0%)			$	39,736

(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 31, 2014.

(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 31, 2014.

(e)  Rate shown is the yield to maturity at March 31, 2014.

(f)  All or a portion of the security was pledged to cover margin requirements for futures contracts and swap agreements.

(g)  Securities are available for collateral in connection with purchase of when-issued securities, open futures contracts and swap agreements.

IO  Interest Only.

MTN  Medium Term Note.

STRIPS  Separate Trading of Registered Interest and Principal of Securities.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

Futures Contracts:

The Portfolio had the following futures contracts open at March 31, 2014:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		38	$	8,343		Jun-14		(10	)
U.S. Treasury Long Bond		7		933		Jun-14		1
U.S. Treasury Ultra Long Bond		39		5,634		Jun-14		96
Short:
U.S. Treasury 10 yr. Note		70		(8,645	)	Jun-14		59
U.S. Treasury 5 yr. Note		19		(2,260	)	Jun-14		11
							$	157

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 31, 2014:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Depreciation (000)			Value (000)			Credit Rating of Reference Obligation†
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	200		1.00	%	3/20/19	$	4		$	(3	)	$	1		BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		200		1.00		12/20/18		(3	)		(1	)		(4	)	BBB
Morgan Stanley & Co., LLC* CDX.NA.IG.21	Buy		1,175		1.00		12/20/18		(20	)		(2	)		(22	)	NR
		$	1,575					$	(19	)	$	(6	)	$	(25	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 31, 2014:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Deutsche Bank AG	3 Month LIBOR	Receive		2.80	%	5/1/43	$	565	$	73
Deutsche Bank AG	3 Month LIBOR	Receive		3.03		5/14/43		1,690		147
Goldman Sachs International	3 Month LIBOR	Receive		2.42		3/22/22		642		6
JPMorgan Chase Bank NA	3 Month LIBOR	Receive		2.43		3/22/22		311		3
Morgan Stanley & Co., LLC *	3 Month LIBOR	Receive		2.75		11/20/23		2,120		(11	)
Royal Bank of Canada	3 Month LIBOR	Receive		2.06		2/6/23		510		25
									$	243

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

*  Cleared swap agreements, the broker for which is Morgan Stanley & Co., LLC.

LIBOR  London Interbank Offered Rate.

NR  Not Rated.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Industrials		46.2	%
Finance		40.5
Utilities		11.0
Other**		2.3
Total Investments		100.0	%***

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2014.

**  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 $25,815,000 with net unrealized appreciation of approximately $157,000. Does not include open swap agreements with net unrealized appreciation of approximately $237,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Corporate Bond Portfolio

Statement of Assets and Liabilities	March 31, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $38,626)	$	39,929
Investment in Security of Affiliated Issuer, at Value (Cost $4,889)		4,889
Total Investments in Securities, at Value (Cost $43,515)		44,818
Cash		184
Receivable for Investments Sold		1,037
Interest and Paydown Receivable		418
Unrealized Appreciation on Swap Agreements		254
Receivable for Portfolio Shares Sold		41
Due from Adviser		25
Premium Paid on Open Swap Agreements		4
Receivable for Variation Margin on Swap Agreements		2
Receivable from Affiliate		—	@
Other Assets		6
Total Assets		46,789
Liabilities:
Collateral on Securities Loaned, at Value		5,889
Payable for Investments Purchased		619
Due to Broker		300
Payable for Portfolio Shares Redeemed		97
Payable for Sub Transfer Agency Fees		22
Payable for Sub Transfer Agency Fees — Class I		20
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Professional Fees		30
Payable for Trustees' Fees and Expenses		20
Payable for Variation Margin on Futures Contracts		10
Payable for Custodian Fees		4
Unrealized Depreciation on Swap Agreements		4
Premium Received on Open Swap Agreements		3
Payable for Administration Fees		3
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Transfer Agent Fees — Class A		—	@
Payable for Transfer Agent Fees — Class L		—	@
Other Liabilities		31
Total Liabilities		7,053
Net Assets	$	39,736
Net Assets Consist of:
Paid-in-Capital	$	95,526
Accumulated Undistributed Net Investment Income		554
Accumulated Net Realized Loss		(58,041	)
Unrealized Appreciation (Depreciation) on:
Investments		1,303
Futures Contracts		157
Swap Agreements		237
Net Assets	$	39,736

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Corporate Bond Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2014 (000)
CLASS I:
Net Assets	$	36,070
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		3,293,659
Net Asset Value, Offering and Redemption Price Per Share	$	10.95
CLASS A:
Net Assets	$	1,286
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		117,433
Net Asset Value, Redemption Price Per Share	$	10.95
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.49
Maximum Offering Price Per Share	$	11.44
CLASS L:
Net Assets	$	2,380
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		217,516
Net Asset Value, Offering and Redemption Price Per Share	$	10.94
(1) Including: Securities on Loan, at Value:	$	5,756

@  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 31, 2014 (unaudited)

Corporate Bond Portfolio

Statement of Operations	Six Months Ended March 31, 2014 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	860
Income from Securities Loaned — Net		5
Dividends from Security of Affiliated Issuer (Note F)		—	@
Total Investment Income		865
Expenses:
Advisory Fees (Note B)		75
Professional Fees		53
Sub Transfer Agency Fees — Class I		23
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class L		—	@
Registration Fees		18
Shareholder Reporting Fees		17
Administration Fees (Note C)		16
Pricing Fees		16
Custodian Fees (Note E)		15
Shareholder Services Fees — Class A (Note D)		1
Distribution and Shareholder Services Fees — Class L (Note D)		6
Transfer Agency Fees — Class I		3
Transfer Agency Fees — Class A		1
Transfer Agency Fees — Class L		1
Trustees' Fees and Expenses		1
Other Expenses		12
Total Expenses		259
Waiver of Advisory Fees (Note B)		(75	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(26	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(—	@)
Expenses Reimbursed by Adviser (Note B)		(9	)
Waiver of Shareholder Servicing Fees — Class A (Note D)		(1	)
Rebate from Morgan Stanley Affiliate (Note F)		(—	@)
Net Expenses		148
Net Investment Income		717
Realized Gain:
Investments Sold		378
Futures Contracts		7
Swap Agreements		45
Net Realized Gain		430
Change in Unrealized Appreciation (Depreciation):
Investments		941
Futures Contracts		205
Swap Agreements		(128	)
Net Change in Unrealized Appreciation (Depreciation)		1,018
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		1,448
Net Increase in Net Assets Resulting from Operations	$	2,165

@  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 31, 2014 (unaudited)

Corporate Bond Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2014 (unaudited) (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	717		$	1,290
Net Realized Gain		430			752
Net Change in Unrealized Appreciation (Depreciation)		1,018			(2,326	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,165			(284	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(546	)		(1,230	)
Class A:
Net Investment Income		(16	)		(33	)
Class H*:
Net Investment Income		—			(3	)**
Class L:
Net Investment Income		(32	)		(73	)
Total Distributions		(594	)		(1,339	)
Capital Share Transactions:(1)
Class I:
Subscribed		1,183			1,851
Distributions Reinvested		546			1,230
Redeemed		(3,273	)		(10,209	)
Class A:
Subscribed		293			1,020
Distributions Reinvested		14			33
Conversion from Class H		—			93
Redeemed		(262	)		(867	)
Class H*:
Distributions Reinvested		—			1	**
Conversion to Class A		—			(93	)**
Redeemed		—			(81	)**
Class L:
Subscribed		—			120
Distributions Reinvested		32			73
Redeemed		(397	)		(586	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(1,864	)		(7,415	)
Total Decrease in Net Assets		(293	)		(9,038	)
Net Assets:
Beginning of Period		40,029			49,067
End of Period (Including Accumulated Undistributed Net Investment Income of $554 and $431)	$	39,736		$	40,029
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		111			174
Shares Issued on Distributions Reinvested		52			114
Shares Redeemed		(306	)		(948	)
Net Decrease in Class I Shares Outstanding		(143	)		(660	)
Class A:
Shares Subscribed		28			93
Shares Issued on Distributions Reinvested		1			3
Conversion from Class H		—			9
Shares Redeemed		(25	)		(80	)
Net Increase in Class A Shares Outstanding		4			25
Class H*:
Shares Issued on Distributions Reinvested		—			—	@@**
Conversion to Class A		—			(9	)**
Shares Redeemed		—			(7	)**
Net Decrease in Class H Shares Outstanding		—			(16	)
Class L:
Shares Subscribed		—			11
Shares Issued on Distributions Reinvested		3			7
Shares Redeemed		(37	)		(55	)
Net Decrease in Class L Shares Outstanding		(34	)		(37	)

@@  Amount is less than 500 shares.

*  Effective September 9, 2013, Class H shares converted into Class A shares.

**  For the period October 1, 2012 through September 6, 2013.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Corporate Bond Portfolio

	Class I
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	10.53		$	10.93		$	10.27		$	10.17		$	9.75		$	9.61
Income (Loss) from Investment Operations:
Net Investment Income†		0.19			0.32			0.36			0.33			0.33			0.31
Net Realized and Unrealized Gain (Loss)		0.39			(0.40	)		0.73			0.07			0.49			0.38
Total from Investment Operations		0.58			(0.08	)		1.09			0.40			0.82			0.69
Distributions from and/or in Excess of:
Net Investment Income		(0.16	)		(0.32	)		(0.43	)		(0.30	)		(0.40	)		(0.55	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	10.95		$	10.53		$	10.93		$	10.27		$	10.17		$	9.75
Total Return++		5.58	%#		(0.77	)%		10.94	%		4.05	%		8.65	%		7.46	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	36,070		$	36,186		$	44,779		$	62,410		$	79,337		$	140,890
Ratio of Expenses to Average Net Assets (1)		0.70	%+††*		1.18	%+^		1.00	%+††		0.80	%+††		0.76	%+††		0.56	%+
Ratio of Net Investment Income to Average Net Assets (1)		3.64	%+††*		2.91	%+^		3.41	%+††		3.27	%+††		3.36	%+††		3.30	%+
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		26	%#		63	%		129	%		224	%		277	%		545	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.26	%††*		1.21	%		N/A			N/A			N/A			N/A
Net Investment Income to Average Net Assets		3.08	%††*		2.88	%		N/A			N/A			N/A			N/A

†  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.

+  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%.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.70% for Class I shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Corporate Bond Portfolio

	Class A
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	10.53		$	10.92		$	10.27		$	10.16		$	9.74		$	9.60
Income from Investment Operations:
Net Investment Income†		0.18			0.30			0.34			0.31			0.31			0.30
Net Realized and Unrealized Gain (Loss)		0.38			(0.39	)		0.73			0.08			0.49			0.38
Total from Investment Operations		0.56			(0.09	)		1.07			0.39			0.80			0.68
Distributions from and/or in Excess of:
Net Investment Income		(0.14	)		(0.30	)		(0.42	)		(0.28	)		(0.38	)		(0.54	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	10.95		$	10.53		$	10.92		$	10.27		$	10.16		$	9.74
Total Return++		5.40	%#		(0.83	)%		10.69	%		3.99	%		8.50	%		7.44	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,286		$	1,194		$	961		$	408		$	590		$	611
Ratio of Expenses to Average Net Assets (1)		1.05	%+††*		1.34	%+^		1.15	%+††		0.95	%+††		0.91	%+††		0.69	%+
Ratio of Net Investment Income to Average Net Assets (1)		3.29	%+††*		2.76	%+^		3.26	%+††		3.12	%+††		3.21	%+††		3.19	%+
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		26	%#		63	%		129	%		224	%		277	%		545	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.63	%††*		1.47	%		1.25	%††		1.05	%††		1.01	%+††		0.79	%+
Net Investment Income to Average Net Assets		2.71	%††*		2.63	%		3.16	%††		3.02	%††		3.11	%+††		3.09	%+

†  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.

+  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%.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.05% for Class A shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Corporate Bond Portfolio

	Class L
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	10.52		$	10.92		$	10.26		$	10.15		$	9.74		$	9.63
Income (Loss) from Investment Operations:
Net Investment Income†		0.16			0.26			0.30			0.28			0.28			0.24
Net Realized and Unrealized Gain (Loss)		0.39			(0.40	)		0.74			0.08			0.48			0.41
Total from Investment Operations		0.55			(0.14	)		1.04			0.36			0.76			0.65
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.26	)		(0.38	)		(0.25	)		(0.35	)		(0.54	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	10.94		$	10.52		$	10.92		$	10.26		$	10.15		$	9.74
Total Return++		5.28	%#		(1.28	)%		10.38	%		3.51	%		8.15	%		7.08	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,380		$	2,649		$	3,149		$	4,080		$	5,508		$	5,159
Ratio of Expenses to Average Net Assets (1)		1.29	%+††*		1.69	%+^		1.50	%+††		1.30	%+††		1.26	%+††		1.06	%+
Ratio of Net Investment Income to Average Net Assets (1)		3.05	%+††*		2.40	%+^		2.91	%+††		2.77	%+††		2.86	%+††		2.58	%+
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		26	%#		63	%		129	%		224	%		277	%		545	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.71	%††*		1.70	%		N/A			N/A			N/A			N/A
Net Investment Income to Average Net Assets		2.63	%††*		2.39	%		N/A			N/A			N/A			N/A

†  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.

+  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%.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.52% for Class L shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 three classes of shares — Class I, Class A 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) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (2) certain senior collateralized loans ("Senior Loans") are valued based on quotations received from an independent pricing service; (3) futures are valued at the latest price published by the commodities exchange on which they trade; (4) swaps are marked-to-market daily based upon quotations from market makers; (5) 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 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; (6) 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 (7) short-term taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

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. 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

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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. 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 31, 2014.

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	$	—		$	312		$	—	$	312
Collateralized Mortgage Obligation — Agency Collateral Series		—			5			—		5
Corporate Bonds		—			38,112			—		38,112
Variable Rate Senior Loan Interests		—			100			—		100
Total Fixed Income Securities		—			38,529			—		38,529
Short-Term Investments
Investment Company		4,889			—			—		4,889
Repurchase Agreement		—			1,149			—		1,149
U.S. Treasury Securities		—			251			—		251
Total Short-Term Investments		4,889			1,400			—		6,289
Futures Contracts		167			—			—		167
Interest Rate Swap Agreements		—			254			—		254
Total Assets		5,056			40,183			—		45,239
Liabilities:
Futures Contracts		(10	)		—			—		(10	)
Credit Default Swap Agreements		—			(6	)		—		(6	)
Interest Rate Swap Agreements		—			(11	)		—		(11	)
Total Liabilities		(10	)		(17	)		—		(27	)
Total	$	5,046		$	40,166		$	—	$	45,212

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014, 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, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. 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 the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. 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 the risk of 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, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index 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 contracts 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 contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts 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. There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with whom the Portfolio has open positions in the futures contract.

Swaps: The Portfolio may enter into over-the-counter ("OTC") swap contracts or cleared swap transactions. A swap contract 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, indices, reference rates, currencies or other instruments. Typically 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 contract 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 party.

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Semi-Annual Report — March 31, 2014

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

Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Portfolio's ultimate counterparty is a clearinghouse rather than a bank, dealer or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring 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 commonly referred to as credit default swaps. The Portfolio may be either the buyer or seller in a credit default swap. Where the Portfolio is the buyer of a credit default swap contract, it would typically be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract only in the event of a default or similar event by the issuer of the debt obligation. If no default occurs, the Portfolio would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Portfolio is the seller of a credit default swap contract, it typically 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 the default or similar event by the issuer of the referenced debt obligation. The use of credit default swaps could result in losses to the Portfolio if the Adviser fails to correctly evaluate the creditworthiness of the issuer 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. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

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 tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 31, 2014.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk	$	167	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Interest Rate Risk		254
Total			$	421

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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	$	(10	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(4	)
Swap Agreements	Variation Margin	Credit Risk		(2	)(a)
Swap Agreements	Variation Margin	Interest Rate Risk		(11	)(a)
Total			$	(27	)

(a) This amount represents the cumulative appreciation (depreciation) 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 31, 2014 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	7
Credit Risk	Swap Agreements		47
Interest Rate Risk	Swap Agreements		(2	)
	Total	$	52
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	205
Credit Risk	Swap Agreements		(14	)
Interest Rate Risk	Swap Agreements		(114	)
	Total	$	77

At March 31, 2014, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Swap Agreements	$	254	$	(4	)

(b) Excludes exchange-traded derivatives.

(c) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

The Portfolio typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreements, the Portfolio typically may offset with the counterparty certain derivative financial instrument's payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of

default, termination and/or deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swaps, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Portfolio and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party. In the event of a default by a Master Agreements counterparty, the return of collateral with market value in excess of the Portfolio's net liability, held by the defaulting party, may be delayed or denied.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2014.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
COUNTERPARTY	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Received(d) (000)			Net Amount (not less than $0) (000)
Deutsche Bank AG	$	220	$	—	$	(220	)	$	0
Goldman Sachs International		6		—		—			6
JPMorgan Chase Bank NA		3		—		—			3
Royal Bank of Canada		25		—		—			25
Total	$	254	$	—	$	(220	)	$	34

(d) In some instances, the actual collateral received may be more than the amount shown here due to overcollateralization.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
COUNTERPARTY	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	4	$	—	$	—	$	4

For the six months ended March 31, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	23,585,000
Swap Agreements:
Average monthly notional amount	$	10,883,000

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

4.  Senior Loans: Senior Loans are typically structured by a syndicate of lenders ("Lenders"), one or more of which administers the Senior Loan on behalf of the Lenders ("Agent"). Lenders may sell interests in Senior Loans to third parties ("Participations") or may assign all or a portion of their interest in a Senior Loan to third parties ("Assignments"). Senior Loans are exempt from registration under the Securities Act of 1933. Presently, Senior Loans are not readily marketable and are often subject to restrictions on resale.

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 Portfolio has the right under the lending agreement to recover the securities from the borrower on demand.

The following table presents financial instruments that are subject to enforceable netting arrangements as of March 31, 2014.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	5,756	(e)		—	$	(5,756	)(f)(g)	$	0

(e) Represents market value of loaned securities at period end.

(f) The Portfolio received cash collateral of approximately $5,889,000, of which approximately $5,705,000 was subsequently invested in Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of March 31, 2014 there was uninvested cash of approximately $184,000, which is not reflected in the Portfolio of Investments.

(g) The actual collateral received is greater than the amount shown here due to overcollateralization.

6.  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 a month or more 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.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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. When the Portfolio buys an interest in a Senior Loan, it may receive a commitment fee which is paid to lenders on an ongoing basis based upon the undrawn portion committed by the lenders of the underlying Senior Loan. The Portfolio accrues the commitment fee over the expected term of the loan. When the Portfolio sells interest in a Senior Loan, it may be required to pay fees or commissions to the purchaser of the interest. Fees received in connection with loan amendments are accrued as earned. 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 -distribution, transfer agency and sub transfer agency fees) 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.

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 0.70% for Class I shares, 1.05% for Class A shares and 1.52% for Class L shares. The fee waivers and/or expense reimbursements will continue for at least one year or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2014, approximately $75,000 of advisory fees were

waived and approximately $35,000 of other expenses were reimbursed by the Adviser 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 Portfolio.

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 a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, 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 A shares. The Distributor has agreed to waive for at least one year the 12b-1 fees on Class A shares of the Portfolio to the extent it exceeds 0.15% of the average daily net assets of such shares on an annualized basis. This waiver will continue for at least one year or until such time that the Trustees act to discontinue all or a portion of such waiver when it deems such action is appropriate. For the six months ended March 31, 2014, this waiver amounted to 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 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 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 A and Class L shares.

E. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Fund in accordance with a Custodian

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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.

F. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $9,907,000 and $11,703,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2014.

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 31, 2014, 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 31, 2014 is as follows:

Value September 30, 2013 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)			Value March 31, 2014 (000)
$	4,804	$	10,844	$	10,759	$	—	@	$	4,889

@ 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.

G. 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.

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 At September 30, 2013, 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 years 2013 and 2012 was as follows:

2013 Distributions Paid From: Ordinary Income (000)		2012 Distributions Paid From: Ordinary Income (000)
$	1,339	$	2,368

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.

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

Permanent differences, primarily due to basis adjustments for swap transactions, resulted in the following reclassifications among the components of net assets at September 30, 2013:

Accumulated Undistributed Net Investment Income (000)			Accumulated Net Realized Loss (000)		Paid-in Capital (000)
$	(73	)	$	73		—

At September 30, 2013, 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)
$	441		—

At March 31, 2014, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,668,000 and the aggregate gross unrealized depreciation is approximately $365,000 resulting in net unrealized appreciation of approximately $1,303,000.

At September 30, 2013, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	50,421	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 At September 30, 2013, the Portfolio utilized capital loss carryforwards for U.S. Federal income tax purposes of approximately $793,000.

H. Accounting Pronouncement: In June 2013, FASB issued Accounting Standards Update 2013-08 Financial Services — Investment Companies (Topic 946) — Amendments to the Scope, Measurement, and Disclosure Requirements ("ASU 2013-08") which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. ASU 2013-08 sets forth a methodology for determining whether an entity should be characterized as an investment company and prescribes fair value accounting for an investment company's non-controlling ownership interest in another investment company. FASB has determined that a fund registered

under the Act automatically meets ASU 2013-08's criteria for an investment company. Although still evaluating the potential impacts of ASU 2013-08 to the Portfolio, management expects that the impact of the Portfolio's adoption will be limited to additional financial statement disclosures.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014

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 31, 2014

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:

  Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

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 31, 2014

Trustee and Officer Information (unaudited)

Trustees

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

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

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

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 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.

30

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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

© 2014 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTCBSAN
909690 EXP 5.31.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

High Yield Portfolio

Semi-Annual Report

March 31, 2014

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	8
Statement of Operations	9
Statements of Changes in Net Assets	10
Financial Highlights	12
Notes to Financial Statements	16
U.S. Privacy Policy	21
Trustee and Officer Information	24

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 statement of additional information (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.

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 this Portfolio. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 (the "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,

John H. Gernon
President and Principal Executive Officer

April 2014

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014 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.

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 10/1/13		Actual Ending Account Value 3/31/14		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	$	1,086.20	$	1,021.19	$	3.90	*	$	3.78	*		0.75	%
High Yield Portfolio Class A		1,000.00		1,085.50		1,019.55		5.62	*		5.44	*		1.08
High Yield Portfolio Class L		1,000.00		1,083.40		1,018.20		7.01	*		6.79	*		1.35
High Yield Portfolio Class IS		1,000.00		1,000.90		1,000.12		0.02	**		0.02	**		0.62

*  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 182/365 (to reflect the most recent one-half year period).

**  Expenses are calculated using the Portfolio Class's annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 1/365 (to reflect the actual days in the period).

***  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments

High Yield Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (99.6%)
Corporate Bonds (96.3%)
Basic Materials (5.2%)
American Gilsonite Co. 11.50%, 9/1/17 (a)	$	150	$	157
APERAM 7.75%, 4/1/18 (a)		150		158
Axalta Coating Systems US Holdings, Inc./ Axalta Coating Systems Dutch Holding B 7.38%, 5/1/21 (a)		150		164
Chemtura Corp. 5.75%, 7/15/21		50		52
Hecla Mining Co. 6.88%, 5/1/21		100		98
Neenah Paper, Inc. 5.25%, 5/15/21 (a)		50		50
Permian Holdings, Inc. 10.50%, 1/15/18 (a)		90		92
Prince Mineral Holding Corp. 11.50%, 12/15/19 (a)		150		169
				940
Communications (11.1%)
Altice Finco SA 8.13%, 1/15/24 (a)		200		216
Bankrate, Inc. 6.13%, 8/15/18 (a)		100		106
Cablevision Systems Corp. 7.75%, 4/15/18		50		57
CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. 5.63%, 2/15/24 (a)		100		103
CCO Holdings LLC/CCO Holdings Capital Corp. 5.75%, 1/15/24		100		100
Columbus International, Inc. 7.38%, 3/30/21 (a)		200		206
Crown Castle International Corp. 5.25%, 1/15/23		50		51
Harron Communications LP/Harron Finance Corp. 9.13%, 4/1/20 (a)		150		170
Intelsat Luxembourg SA 6.75%, 6/1/18 (a)		150		159
inVentiv Health, Inc. 9.00%, 1/15/18 (a)		100		106
Lamar Media Corp. 5.38%, 1/15/24 (a)		50		52
MDC Partners, Inc. 6.75%, 4/1/20 (a)		100		106
Mediacom Broadband LLC/Mediacom Broadband Corp. 5.50%, 4/15/21 (a)		100		101
Midcontinent Communications & Midcontinent Finance Corp. 6.25%, 8/1/21 (a)		100		105
Pacnet Ltd. 9.00%, 12/12/18 (a)		200		214
SBA Telecommunications, Inc. 5.75%, 7/15/20		50		53

	Face Amount (000)		Value (000)
T-Mobile USA, Inc. 6.84%, 4/28/23	$	100	$	108
				2,013
Consumer, Cyclical (17.4%)
Air Canada 6.75%, 10/1/19 (a)		50		54
Allied Specialty Vehicles, Inc. 8.50%, 11/1/19 (a)		100		107
American Builders & Contractors Supply Co., Inc. 5.63%, 4/15/21 (a)		100		104
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)		3		3
Caesars Entertainment Operating Co., Inc. 8.50%, 2/15/20		50		45
CCM Merger, Inc. 9.13%, 5/1/19 (a)		100		107
Chassix Holdings, Inc. 10.00%, 12/15/18 (a)(b)		100		102
Chassix, Inc. 9.25%, 8/1/18 (a)		50		54
Chester Downs & Marina LLC/Chester Downs Finance Corp. 9.25%, 2/1/20 (a)		100		100
Churchill Downs, Inc. 5.38%, 12/15/21 (a)		100		102
Diamond Resorts Corp. 12.00%, 8/15/18		100		110
Empire Today LLC/Empire Today Finance Corp. 11.38%, 2/1/17 (a)		100		103
Exide Technologies 8.63%, 2/1/18 (c)(d)		100		77
Gibson Brands, Inc. 8.88%, 8/1/18 (a)		100		107
Golden Nugget Escrow, Inc. 8.50%, 12/1/21 (a)		100		102
Graton Economic Development Authority 9.63%, 9/1/19 (a)		100		115
Greektown Holdings LLC/Greektown Mothership Corp. 8.88%, 3/15/19 (a)		200		207
Guitar Center, Inc. 6.50%, 4/15/19 (a)(e)		100		100
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 5.63%, 10/15/21 (a)		50		52
IDQ Holdings, Inc. 11.50%, 4/1/17 (a)		150		164
Logan's Roadhouse, Inc. 10.75%, 10/15/17		100		77
Meritor, Inc. 6.25%, 2/15/24		100		101
Neiman Marcus Group Ltd., Inc. 8.75%, 10/15/21 (a)(b)		100		111
Oshkosh Corp. 5.38%, 3/1/22 (a)		100		102

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (cont'd)
Pinnacle Entertainment, Inc. 7.50%, 4/15/21	$	50	$	54
Pittsburgh Glass Works LLC 8.00%, 11/15/18 (a)		100		109
Playa Resorts Holding BV 8.00%, 8/15/20 (a)		100		109
Rite Aid Corp. 6.75%, 6/15/21		50		54
RSI Home Products, Inc. 6.88%, 3/1/18 (a)		50		54
Sonic Automotive, Inc. 5.00%, 5/15/23		50		49
Sugarhouse HSP Gaming Prop Mezz LP/ Sugarhouse HSP Gaming Finance Corp. 6.38%, 6/1/21 (a)		100		99
United Continental Holdings, Inc. 6.38%, 6/1/18		200		216
Wolverine World Wide, Inc. 6.13%, 10/15/20		50		54
				3,160
Consumer, Non-Cyclical (21.3%)
Acadia Healthcare Co., Inc. 6.13%, 3/15/21 (a)		50		52
Ahern Rentals, Inc. 9.50%, 6/15/18 (a)		150		167
Albea Beauty Holdings SA 8.38%, 11/1/19 (a)		100		109
American Achievement Corp. 10.88%, 4/15/16 (a)		50		53
ARAMARK Corp. 5.75%, 3/15/20		50		53
Armored Autogroup, Inc. 9.25%, 11/1/18		150		158
Beverages & More, Inc. 10.00%, 11/15/18 (a)		150		157
BioScrip, Inc. 8.88%, 2/15/21 (a)		100		104
Brand Energy & Infrastructure Services, Inc. 8.50%, 12/1/21 (a)		100		106
Bumble Bee Holdco SCA 9.63%, 3/15/18 (a)(b)		100		105
Cenveo Corp. 8.88%, 2/1/18		100		103
CHS/Community Health Systems, Inc. 6.88%, 2/1/22 (a)		100		105
Crestview DS Merger Sub II, Inc. 10.00%, 9/1/21 (a)		100		112
Dole Food Co., Inc. 7.25%, 5/1/19 (a)		50		50
DynCorp International, Inc. 10.38%, 7/1/17		100		105
Global A&T Electronics Ltd. 10.00%, 2/1/19 (a)		200		165
Grifols Worldwide Operations Ltd. 5.25%, 4/1/22 (a)		200		205
Harland Clarke Holdings Corp. 9.75%, 8/1/18 (a)		50		55

	Face Amount (000)		Value (000)
Hologic, Inc. 6.25%, 8/1/20	$	100	$	106
JLL/Delta Dutch Newco BV 7.50%, 2/1/22 (a)		100		103
KeHE Distributors LLC/KeHE Finance Corp. 7.63%, 8/15/21 (a)		100		108
Knowledge Universe Education LLC 7.75%, 2/1/15 (a)		150		151
Monitronics International, Inc. 9.13%, 4/1/20		100		108
MPH Acquisition Holdings LLC 6.63%, 4/1/22 (a)		100		103
Mustang Merger Corp. 8.50%, 8/15/21 (a)		100		110
Pinnacle Operating Corp. 9.00%, 11/15/20 (a)		150		162
Post Holdings, Inc. 6.75%, 12/1/21 (a)		100		106
RR Donnelley & Sons Co. 7.88%, 3/15/21		50		58
Safway Group Holding LLC/Safway Finance Corp. 7.00%, 5/15/18 (a)		100		107
Salix Pharmaceuticals Ltd. 6.00%, 1/15/21 (a)		100		107
Service Corp. International 5.38%, 1/15/22 (a)		100		102
SUPERVALU, Inc. 8.00%, 5/1/16		50		55
TMS International Corp. 7.63%, 10/15/21 (a)		100		108
United Rentals North America, Inc. 5.75%, 11/15/24		100		101
US Foods, Inc. 8.50%, 6/30/19		100		108
Wells Enterprises, Inc. 6.75%, 2/1/20 (a)		100		104
				3,871
Energy (4.9%)
Approach Resources, Inc. 7.00%, 6/15/21		50		52
Bonanza Creek Energy, Inc. 6.75%, 4/15/21		50		54
Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp. 6.38%, 3/15/24		100		103
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. 6.13%, 3/1/22 (a)		100		105
EXCO Resources, Inc. 7.50%, 9/15/18		100		101
Kodiak Oil & Gas Corp. 5.50%, 1/15/21		50		52
Lightstream Resources Ltd. 8.63%, 2/1/20 (a)		100		100
Northern Oil and Gas, Inc. 8.00%, 6/1/20		50		53
Northern Tier Energy LLC/Northern Tier Finance Corp 7.13%, 11/15/20		100		107

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Energy (cont'd)
Seven Generations Energy Ltd. 8.25%, 5/15/20 (a)	$	100	$	110
SM Energy Co. 5.00%, 1/15/24 (a)		50		49
				886
Finance (7.4%)
CNO Financial Group, Inc. 6.38%, 10/1/20 (a)		50		54
Compiler Finance Sub, Inc. 7.00%, 5/1/21 (a)		150		152
DuPont Fabros Technology LP 5.88%, 9/15/21		100		106
Hockey Merger Sub 2, Inc. 7.88%, 10/1/21 (a)		50		54
Jefferies Finance LLC/JFIN Co-Issuer Corp. 6.88%, 4/15/22 (a)		200		202
KCG Holdings, Inc. 8.25%, 6/15/18 (a)		100		107
Kennedy-Wilson, Inc. 5.88%, 4/1/24		100		100
Nationstar Mortgage LLC/Nationstar Capital Corp. 7.88%, 10/1/20		50		51
Nuveen Investments, Inc. 9.13%, 10/15/17 (a)		100		106
Oxford Finance LLC/Oxford Finance Co-Issuer, Inc. 7.25%, 1/15/18 (a)		100		107
Provident Funding Associates LP/PFG Finance Corp. 6.75%, 6/15/21 (a)		100		101
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp. 9.50%, 6/15/19 (a)		92		101
Sabra Health Care LP/Sabra Capital Corp. 5.50%, 2/1/21		100		105
				1,346
Industrials (22.1%)
Accudyne Industries Borrower/ Accudyne Industries LLC 7.75%, 12/15/20 (a)		100		108
Alion Science & Technology Corp. 12.00%, 11/1/14 (b)		102		102
Amsted Industries, Inc. 5.00%, 3/15/22 (a)		100		101
Artesyn Escrow, Inc. 9.75%, 10/15/20 (a)		50		48
Associated Asphalt Partners LLC/Road Holdings III LLC/Associated Asphalt Finance 8.50%, 2/15/18 (a)		90		95
Atkore International, Inc. 9.88%, 1/1/18		45		48
BC Mountain LLC/BC Mountain Finance, Inc. 7.00%, 2/1/21 (a)		100		99
BlueLine Rental Finance Corp. 7.00%, 2/1/19 (a)		100		106
BOE Intermediate Holding Corp. 9.00%, 11/1/17 (a)(b)		105		114

	Face Amount (000)		Value (000)
Cequel Communications Holdings I LLC/ Cequel Capital Corp. 6.38%, 9/15/20 (a)	$	50	$	52
CEVA Group PLC 9.00%, 9/1/21 (a)		100		103
Cleaver-Brooks, Inc. 8.75%, 12/15/19 (a)		100		111
Consolidated Container Co., LLC/Consolidated Container Capital, Inc. 10.13%, 7/15/20 (a)		100		107
CPG Merger Sub LLC 8.00%, 10/1/21 (a)		100		108
CTP Transportation Products LLC/CTP Finance, Inc. 8.25%, 12/15/19 (a)		100		108
DH Services Luxembourg Sarl 7.75%, 12/15/20 (a)		50		54
DryShips, Inc. 5.00%, 12/1/14		100		99
Emeco Pty Ltd. 9.88%, 3/15/19 (a)		200		206
Gibraltar Industries, Inc. 6.25%, 2/1/21		50		54
Interline Brands, Inc. 10.00%, 11/15/18 (b)		150		164
Iracore International Holdings, Inc. 9.50%, 6/1/18 (a)		150		160
JB Poindexter & Co., Inc. 9.00%, 4/1/22 (a)		150		161
Kemet Corp. 10.50%, 5/1/18		100		105
Kenan Advantage Group, Inc. (The) 8.38%, 12/15/18 (a)		100		105
Kratos Defense & Security Solutions, Inc. 10.00%, 6/1/17		50		53
Marquette Transportation Co., LLC/Marquette Transportation Finance Corp. 10.88%, 1/15/17		100		106
Martin Midstream Partners LP/Martin Midstream Finance Corp. 7.25%, 2/15/21		50		53
Michael Baker International LLC/CDL Acquisition Co., Inc. 8.25%, 10/15/18 (a)		100		107
Navios Maritime Holdings, Inc./Navios Maritime Finance II US, Inc. 8.13%, 2/15/19		100		101
Nuverra Environmental Solutions, Inc. 9.88%, 4/15/18		50		52
Plastipak Holdings, Inc. 6.50%, 10/1/21 (a)		50		53
Pretium Packaging LLC/Pretium Finance, Inc. 11.50%, 4/1/16		100		107
Quality Distribution LLC/QD Capital Corp. 9.88%, 11/1/18		135		148
Sequa Corp. 7.00%, 12/15/17 (a)		100		102

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Summit Materials LLC/Summit Materials Finance Corp. 10.50%, 1/31/20 (a)	$	100	$	113
Tekni-Plex, Inc. 9.75%, 6/1/19 (a)		72		82
Tervita Corp. 8.00%, 11/15/18 (a)		50		51
Vander Intermediate Holding II Corp. 9.75%, 2/1/19 (a)(b)		100		106
Viasystems, Inc. 7.88%, 5/1/19 (a)		50		54
Wise Metals Group LLC/Wise Alloys Finance Corp. 8.75%, 12/15/18 (a)		100		108
Zachry Holdings, Inc. 7.50%, 2/1/20 (a)		100		109
				4,023
Technology (4.4%)
Activision Blizzard, Inc. 6.13%, 9/15/23 (a)		50		55
BCP Singapore VI Cayman Financing Co., Ltd. 8.00%, 4/15/21 (a)		200		204
BMC Software Finance, Inc. 8.13%, 7/15/21 (a)		100		106
First Data Corp., 11.25%, 1/15/21		50		57
11.75%, 8/15/21		100		105
IMS Health, Inc. 6.00%, 11/1/20 (a)		50		53
Infor US, Inc., 9.38%, 4/1/19		100		113
11.50%, 7/15/18		92		107
				800
Utilities (2.5%)
AES Corp., 5.50%, 3/15/24		100		99
7.38%, 7/1/21		50		57
GenOn Americas Generation LLC 8.50%, 10/1/21		100		96
LBC Tank Terminals Holding Netherlands BV 6.88%, 5/15/23 (a)		100		107
NRG Energy, Inc. 6.25%, 7/15/22 (a)		50		52
Sabine Pass LNG LP 6.50%, 11/1/20		50		53
				464
				17,503
Sovereign (1.1%)
Government (1.1%)
Select Medical Corp. 6.38%, 6/1/21		100		102
Waterjet Holdings, Inc. 7.63%, 2/1/20 (a)		100		106
				208

	Face Amount (000)		Value (000)
Variable Rate Senior Loan Interests (2.2%)
Industrials (1.6%)
Atkore International, Inc., 1st Lien Term 3/26/21 (f)	$	300	$	300
Technology (0.6%)
Aspect Software, Inc., Term B 7.25%, 5/7/16		99		101
				401
Total Fixed Income Securities (Cost $17,257)				18,112
	Shares
Short-Term Investment (0.5%)
Investment Company (0.5%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F) (Cost $83)		83,276		83
Total Investments (100.1%) (Cost $17,340)				18,195
Liabilities in Excess of Other Assets (-0.1%)				(23	)
Net Assets (100.0%)			$	18,172

(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)  Issuer in bankruptcy.

(d)  Non-income producing security; bond in default.

(e)  When-issued security.

(f)  Unsettled position. The contract rate does not take effect until settlement date.

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		22.1	%
Consumer, Non-Cyclical		21.3
Consumer, Cyclical		17.4
Other*		15.6
Communications		11.0
Finance		7.4
Basic Materials		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.
7

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

High Yield Portfolio

Statement of Assets and Liabilities	March 31, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $17,257)	$	18,112
Investment in Security of Affiliated Issuer, at Value (Cost $83)		83
Total Investments in Securities, at Value (Cost $17,340)		18,195
Interest Receivable		355
Receivable for Investments Sold		103
Receivable for Portfolio Shares Sold		52
Due from Adviser		16
Receivable from Affiliate		—	@
Other Assets		35
Total Assets		18,756
Liabilities:
Payable for Investments Purchased		517
Payable for Professional Fees		45
Payable for Portfolio Shares Redeemed		3
Payable for Custodian Fees		2
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Administration Fees		1
Payable for Transfer Agent Fees — Class I		—	@
Payable for Transfer Agent Fees — Class A		—	@
Payable for Transfer Agent Fees — Class L		—	@
Payable for Transfer Agent Fees — Class IS		—	@
Other Liabilities		15
Total Liabilities		584
Net Assets	$	18,172
Net Assets Consist Of:
Paid-in-Capital	$	17,130
Accumulated Undistributed Net Investment Income		98
Accumulated Net Realized Gain		89
Unrealized Appreciation (Depreciation) on:
Investments		855
Net Assets	$	18,172
CLASS I:
Net Assets	$	13,693
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		1,246,502
Net Asset Value, Offering and Redemption Price Per Share	$	10.98
CLASS A:
Net Assets	$	3,318
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		302,265
Net Asset Value, Redemption Price Per Share	$	10.98
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.49
Maximum Offering Price Per Share	$	11.47
CLASS L:
Net Assets	$	1,151
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		104,938
Net Asset Value, Offering and Redemption Price Per Share	$	10.97
CLASS IS:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		911
Net Asset Value, Offering and Redemption Price Per Share	$	10.99

@  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 31, 2014 (unaudited)

High Yield Portfolio

Statement of Operations	Six Months Ended March 31, 2014 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	595
Dividends from Security of Affiliated Issuer (Note F)		—	@
Total Investment Income		595
Expenses:
Professional Fees		48
Advisory Fees (Note B)		45
Registration Fees		21
Pricing Fees		12
Shareholder Reporting Fees		7
Administration Fees (Note C)		6
Custodian Fees (Note E)		4
Shareholder Services Fees — Class A (Note D)		3
Distribution and Shareholder Services Fees — Class L (Note D)		1
Transfer Agency Fees — Class I		1
Transfer Agency Fees — Class A		1
Transfer Agency Fees — Class L		1
Transfer Agency Fees — Class IS		—	@
Sub Transfer Agency Fees — Class A		—	@
Trustees' Fees and Expenses		—	@
Other Expenses		2
Total Expenses		152
Waiver of Advisory Fees (Note B)		(45	)
Expenses Reimbursed by Adviser (Note B)		(44	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(—	@)
Rebate from Morgan Stanley Affiliate (Note F)		(—	@)
Net Expenses		62
Net Investment Income		533
Realized Gain:
Investments Sold		134
Change in Unrealized Appreciation (Depreciation):
Investments		573
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		707
Net Increase in Net Assets Resulting from Operations	$	1,240

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

High Yield Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2014 (unaudited) (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	533		$	935
Net Realized Gain		134			672
Net Change in Unrealized Appreciation (Depreciation)		573			(88	)
Net Increase in Net Assets Resulting from Operations		1,240			1,519
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(484	)		(873	)
Net Realized Gain		(550	)		(270	)
Class A:
Net Investment Income		(68	)		(17	)
Net Realized Gain		(81	)		(3	)
Class H*:
Net Investment Income		—			(26	)***
Net Realized Gain		—			(5	)***
Class L:
Net Investment Income		(19	)		(9	)
Net Realized Gain		(21	)		(3	)
Total Distributions		(1,223	)		(1,206	)
Capital Share Transactions:(1)
Class I:
Subscribed		2,111			1,646
Distributions Reinvested		136			102
Redeemed		(1,235	)		(350	)
Class A:
Subscribed		2,836			752
Distributions Reinvested		131			9
Conversion from Class H		—			556
Redeemed		(752	)		(338	)
Class H*:
Subscribed		—			477	***
Distributions Reinvested		—			21	***
Conversion to Class A		—			(556	)***
Redeemed		—			(148	)***
Class L:
Subscribed		957			341
Distributions Reinvested		31			2
Redeemed		(166	)		(127	)
Class IS:
Subscribed		10	**		—
Net Increase in Net Assets Resulting from Capital Share Transactions		4,059			2,387
Total Increase in Net Assets		4,076			2,700
Net Assets:
Beginning of Period		14,096			11,396
End of Period (Including Accumulated Undistributed Net Investment Income of $98 and $136)	$	18,172		$	14,096
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		195			150
Shares Issued on Distributions Reinvested		13			9
Shares Redeemed		(113	)		(32	)
Net Increase in Class I Shares Outstanding		95			127
Class A:
Shares Subscribed		261			68
Shares Issued on Distributions Reinvested		12			1
Conversion from Class H		—			51
Shares Redeemed		(70	)		(31	)
Net Increase in Class A Shares Outstanding		203			89

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

High Yield Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2014 (unaudited) (000)			Year Ended September 30, 2013 (000)
Class H*:
Shares Subscribed		—			44	***
Shares Issued on Distributions Reinvested		—			2	***
Conversion to Class A		—			(51	)***
Shares Redeemed		—			(14	)***
Net Decrease in Class H Shares Outstanding		—			(19	)
Class L:
Shares Subscribed		88			31
Shares Issued on Distributions Reinvested		3			—	@@
Shares Redeemed		(16	)		(11	)
Net Increase in Class L Shares Outstanding		75			20
Class IS:
Shares Subscribed		1	**		—

@@  Amount is less than 500 shares.

*  Effective September 9, 2013, Class H shares converted into Class A shares.

**  For the one day period ended March 31, 2014.

***  For the period October 1, 2012 through September 6, 2013.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

High Yield Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended March 31, 2014 (unaudited)			Year Ended September 30, 2013			Period from February 7, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	11.00		$	10.71		$	10.00
Income from Investment Operations:
Net Investment Income†		0.39			0.81			0.50
Net Realized and Unrealized Gain		0.52			0.55			0.59
Total from Investment Operations		0.91			1.36			1.09
Distributions from and/or in Excess of:
Net Investment Income		(0.43	)		(0.81	)		(0.38	)
Net Realized Gain		(0.50	)		(0.26	)		—
Total Distributions		(0.93	)		(1.07	)		(0.38	)
Net Asset Value, End of Period	$	10.98		$	11.00		$	10.71
Total Return++		8.62	%#		13.38	%		11.07	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13,693		$	12,678		$	10,975
Ratio of Expenses to Average Net Assets (1)		0.75	%+*		0.75	%+		0.74	%+*††
Ratio of Net Investment Income to Average Net Assets (1)		7.17	%+*		7.42	%+		7.53	%+*††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.01	%*
Portfolio Turnover Rate		92	%#		227	%		192	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.95	%*		3.16	%		3.17	%*††
Net Investment Income to Average Net Assets		5.97	%*		5.01	%		5.10	%*††

^  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.

+  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%.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

High Yield Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 31, 2014 (unaudited)			Year Ended September 30, 2013			Period from February 7, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.99		$	10.71		$	10.00
Income from Investment Operations:
Net Investment Income†		0.37			0.77			0.48
Net Realized and Unrealized Gain		0.53			0.55			0.59
Total from Investment Operations		0.90			1.32			1.07
Distributions from and/or in Excess of:
Net Investment Income		(0.41	)		(0.78	)		(0.36	)
Net Realized Gain		(0.50	)		(0.26	)		—
Total Distributions		(0.91	)		(1.04	)		(0.36	)
Net Asset Value, End of Period	$	10.98		$	10.99		$	10.71
Total Return++		8.55	%#		13.01	%		10.92	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,318		$	1,092		$	107
Ratio of Expenses to Average Net Assets (1)		1.08	%+*		1.01	%+^^		0.99	%+*††
Ratio of Net Investment Income to Average Net Assets (1)		6.81	%+*		7.04	%+^^		7.28	%+*††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.01	%*
Portfolio Turnover Rate		92	%#		227	%		192	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.26	%*		4.22	%		3.42	%*††
Net Investment Income to Average Net Assets		5.63	%*		3.83	%		4.85	%*††

^  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.

+  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.

^^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.10% for Class A shares. Prior to September 16, 2013, the maximum ratio was 1.00% for Class A shares.

§  Amount is less than 0.005%.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

High Yield Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 31, 2014 (unaudited)			Year Ended September 30, 2013			Period from February 7, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	10.99		$	10.70		$	10.00
Income from Investment Operations:
Net Investment Income†		0.35			0.75			0.46
Net Realized and Unrealized Gain		0.53			0.56			0.59
Total from Investment Operations		0.88			1.31			1.05
Distributions from and/or in Excess of:
Net Investment Income		(0.40	)		(0.76	)		(0.35	)
Net Realized Gain		(0.50	)		(0.26	)		—
Total Distributions		(0.90	)		(1.02	)		(0.35	)
Net Asset Value, End of Period	$	10.97		$	10.99		$	10.70
Total Return++		8.34	%#		12.82	%		10.66	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,151		$	326		$	107
Ratio of Expenses to Average Net Assets (1)		1.35	%+*		1.26	%+^^		1.24	%+*††
Ratio of Net Investment Income to Average Net Assets (1)		6.45	%+*		6.90	%+^^		7.03	%+*††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.01	%*
Portfolio Turnover Rate		92	%#		227	%		192	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.68	%*		4.11	%		3.67	%*††
Net Investment Income to Average Net Assets		5.12	%*		4.05	%		4.60	%*††

^  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.

+  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.

^^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.35% for Class L shares. Prior to September 16, 2013, the maximum ratio was 1.25% for Class L shares.

§  Amount is less than 0.005%.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

High Yield Portfolio

	Class IS
Selected Per Share Data and Ratios	One Day Period Ended March 31, 2014^ (unaudited)
Net Asset Value, Beginning of Period	$	10.98
Income from Investment Operations:
Net Investment Income†		0.00	‡
Net Realized and Unrealized Gain		0.01
Total from Investment Operations		0.01
Net Asset Value, End of Period	$	10.99
Total Return++		0.09	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10
Ratio of Expenses to Average Net Assets (1)		0.61	%+*
Ratio of Net Investment Income to Average Net Assets (1)		6.50	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.11	%*
Portfolio Turnover Rate		92	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		15.59	%*
Net Investment Loss to Average Net Assets		(8.47	)%*

^  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.

+  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."

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 A, Class L and Class IS.

On March 31, 2014, the Portfolio commenced offering Class IS shares.

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) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (2) certain senior collateralized loans ("Senior Loans") are valued based on quotations received from an independent pricing service; (3) 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 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; (4) 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 (5) short-term debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such valuation does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser.

  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. 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

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 31, 2014.

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	$	—	$	17,503	$	—	$	17,503
Sovereign		—		208		—		208
Variable Rate Senior Loan Interests		—		401		—		401
Total Fixed Income Securities		—		18,112		—		18,112
Short-Term Investment
Investment Company		83		—		—		83
Total Assets	$	83	$	18,112	$	—	$	18,195

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 31, 2014, the Portfolio did not have any investments transfer between investment levels.

3.  Senior Loans: Senior Loans are typically structured by a syndicate of lenders ("Lenders"), one or more of which administers the Senior Loan on behalf of the Lenders ("Agent"). Lenders may sell interests in Senior Loans to third parties ("Participations") or may assign all or a portion of their interest in a Senior Loan to third parties ("Assignments"). Senior Loans are exempt from registration under the Securities Act of 1933. Presently, Senior Loans are not readily marketable and are often subject to restrictions on resale.

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 a month or

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

more 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. When the Portfolio buys an interest in a Senior Loan, it may receive a commitment fee which is paid to lenders on an ongoing basis based upon the undrawn portion committed by the lenders of the underlying Senior Loan. The Portfolio accrues the commitment fee over the expected term of the loan. When the Portfolio sells interest in a Senior Loan, it may be required to pay fees or commissions to the purchaser of the interest. Fees received in connection with loan amendments are accrued as earned. 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-distribution, transfer agency and sub transfer agency fees) 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.

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, 1.10% for Class A shares and 1.35% for Class L shares. Effective March 31, 2014, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.72% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2014, approximately $45,000 of advisory fees were waived and approximately $45,000 of other expenses were reimbursed by the Adviser 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 Portfolio.

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 a Shareholder Services Plan

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, 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 A 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 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 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 A and Class L shares.

E. 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.

F. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $17,435,000 and $14,059,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2014.

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 31, 2014, 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 31, 2014 is as follows:

Value September 30, 2013 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)			Value March 31, 2014 (000)
$	—	$	3,457	$	3,374	$	—	@	$	83

@ 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.

G. 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.

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, 2013, remains subject to examination by taxing authorities.

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 years 2013 and 2012 was as follows:

2013 Distributions Paid From: Ordinary Income (000)		2012 Distributions Paid From: Ordinary Income (000)
$	1,206	$	377

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, due to nondeductible expenses, resulted in the following reclassifications among the components of net assets at September 30, 2013:

Accumulated Undistributed Net Investment Income (000)			Accumulated Undistributed Net Realized Gain (000)		Paid-in Capital (000)
$	—	@		—	$	(—	@)

@ Amount is less than $500.

At September 30, 2013, 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)
$	674	$	74

At March 31, 2014, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $945,000 and the aggregate gross unrealized depreciation is approximately $90,000 resulting in net unrealized appreciation of approximately $855,000.

H. Other: At March 31, 2014, 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 73% and 36% Class A and Class L shares, respectively.

I. Accounting Pronouncement: In June 2013, FASB issued Accounting Standards Update 2013-08 Financial Services — Investment Companies (Topic 946) — Amendments to the Scope, Measurement, and Disclosure Requirements ("ASU 2013-08") which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. ASU 2013-08 sets forth a methodology for determining whether an entity should be characterized as an investment company and prescribes fair value accounting for an investment company's non-controlling ownership interest in another investment company. FASB has determined that a fund registered under the Act automatically meets ASU 2013-08's criteria for an investment company. Although still evaluating the potential impacts of ASU 2013-08 to the Portfolio, management expects that the impact of the Portfolio's adoption will be limited to additional financial statement disclosures.

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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.

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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.

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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:

  Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

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.

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Trustee and Officer Information (unaudited)

Trustees

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

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

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

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 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.

24

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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

© 2014 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTHYSAN
914187 EXP 05.31.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Limited Duration Portfolio

Semi-Annual Report

March 31, 2014

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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	17
U.S. Privacy Policy	25
Trustee and Officer Information	28

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 statement of additional information (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.

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 this Portfolio. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 (the "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,

John H. Gernon
President and Principal Executive Officer

April 2014

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 31, 2014 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.

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 10/1/13		Actual Ending Account Value 3/31/14		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	$	1,015.00	$	1,022.29	$	2.66	$	2.67		0.53	%
Limited Duration Portfolio Class A		1,000.00		1,013.50		1,020.54		4.42		4.43		0.88
Limited Duration Portfolio Class L		1,000.00		1,011.60		1,018.80		6.17		6.19		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 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.5%)
Agency Adjustable Rate Mortgages (3.8%)
Federal Home Loan Mortgage Corporation,
Conventional Pools:
2.31%, 6/1/36	$	528	$	560
2.42%, 7/1/38		444		470
2.43%, 7/1/36 - 7/1/38		1,260		1,358
2.54%, 9/1/35		691		726
2.68%, 1/1/38		125		132
Federal National Mortgage Association,
Conventional Pools:
2.33%, 5/1/35		554		590
2.43%, 5/1/39		575		609
Government National Mortgage Association,
Various Pool
3.00%, 2/20/40		172		180
				4,625
Agency Fixed Rate Mortgages (0.6%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
6.50%, 9/1/19 - 4/1/24		9		10
7.50%, 11/1/19		1		2
Federal National Mortgage Association,
Conventional Pools:
6.50%, 2/1/28 - 10/1/32		544		611
7.00%, 7/1/29 - 12/1/33		61		64
Government National Mortgage Association,
Various Pools:
9.00%, 11/15/16 - 12/15/16		25		26
				713
Asset-Backed Securities (13.9%)
Ally Auto Receivables Trust
0.62%, 3/15/17		750		751
American Express Credit Account Master Trust
1.41%, 3/15/17 (a)		2,325		2,336
AWAS Aviation Capital Ltd.
7.00%, 10/17/16 (b)		356		370
CarMax Auto Owner Trust
0.52%, 7/17/17		500		500
Chase Issuance Trust,
0.54%, 10/16/17		1,125		1,125
0.59%, 8/15/17		1,608		1,611
Citibank Credit Card Issuance Trust
2.88%, 1/23/23		450		453
Discover Card Execution Note Trust
0.59%, 7/15/21 (a)		670		672
Fifth Third Auto Trust
0.88%, 10/16/17		506		509
Ford Credit Floorplan Master Owner Trust
4.20%, 2/15/17 (b)		1,150		1,187
GE Dealer Floorplan Master Note Trust
0.65%, 6/20/17 (a)		750		753

	Face Amount (000)		Value (000)
GE Equipment Transportation LLC
0.62%, 7/25/16	$	570	$	571
Hertz Fleet Lease Funding LP
0.70%, 12/10/27 (a)(b)		575		577
Hyundai Auto Receivables Trust
1.01%, 2/15/18		427		430
Invitation Homes 2013-SFR1 Trust
1.40%, 12/17/30 (a)(b)		134		135
John Deere Owner Trust
0.60%, 3/15/17		1,325		1,327
Nationstar Agency Advance Funding Trust
1.89%, 2/18/48 (b)		100		97
North Carolina State Education Assistance Authority
1.04%, 7/25/25 (a)		625		627
Panhandle-Plains Higher Education Authority, Inc.
1.18%, 7/1/24 (a)		275		276
Toyota Auto Receivables Owner Trust
0.89%, 7/17/17		595		599
Vericrest Opportunity Loan Transferee
3.25%, 11/25/53 (b)		1,157		1,157
Volvo Financial Equipment LLC
0.74%, 3/15/17 (b)		650		651
World Omni Automobile Lease Securitization Trust,
0.93%, 11/16/15		166		166
1.10%, 12/15/16		321		323
				17,203
Collateralized Mortgage Obligations — Agency Collateral Series (3.0%)
Federal Home Loan Mortgage Corporation,
1.43%, 8/25/17		688		691
1.56%, 10/25/18		239		241
REMIC
7.50%, 9/15/29		1,178		1,357
Federal National Mortgage Association,
0.59%, 8/25/15		571		573
0.95%, 11/25/15		283		285
1.08%, 2/25/16		593		597
				3,744
Commercial Mortgage-Backed Securities (0.6%)
Citigroup Commercial Mortgage Trust
2.11%, 1/12/30 (b)		176		178
Hilton USA Trust
1.16%, 11/5/30 (a)(b)		170		170
JP Morgan Chase Commercial Mortgage Securities Trust
5.46%, 12/12/43		400		417
				765
Corporate Bonds (59.7%)
Finance (25.9%)
Abbey National Treasury Services PLC
3.05%, 8/23/18		370		381
ABN Amro Bank N.V.
2.50%, 10/30/18 (b)		630		630

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Aflac, Inc.
3.45%, 8/15/15	$	325	$	338
American Express Credit Corp.
2.13%, 3/18/19		625		623
Australia & New Zealand Banking Group Ltd.
1.45%, 5/15/18		575		561
Bank of America Corp.
2.60%, 1/15/19		900		905
Bank of Montreal,
MTN
1.40%, 9/11/17		585		583
BB&T Corp.
2.25%, 2/1/19		580		580
Berkshire Hathaway Finance Corp.
2.90%, 10/15/20		600		609
BNP Paribas SA,
MTN
2.70%, 8/20/18		610		623
BNZ International Funding Ltd.
2.35%, 3/4/19 (b)		650		646
BPCE SA
1.63%, 2/10/17		250		250
Canadian Imperial Bank of Commerce
1.55%, 1/23/18		310		307
CIT Group, Inc.
5.00%, 5/15/17		500		537
Citigroup, Inc.
4.45%, 1/10/17		1,125		1,216
Commonwealth Bank of Australia
2.50%, 9/20/18		600		609
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
3.38%, 1/19/17		330		350
Credit Agricole SA
2.13%, 4/17/18 (b)		775		772
Discover Bank
2.00%, 2/21/18		665		663
DNB Bank ASA
3.20%, 4/3/17 (b)		610		641
General Electric Capital Corp.
1.63%, 4/2/18		1,770		1,762
General Motors Financial Co., Inc.
2.75%, 5/15/16		325		330
Goldman Sachs Group, Inc. (The)
2.38%, 1/22/18		880		887
HSBC USA, Inc.
1.63%, 1/16/18		685		680
Icahn Enterprises LP/Icahn Enterprises Finance Corp.
4.88%, 3/15/19 (b)		375		383
ING Bank N.V.
3.75%, 3/7/17 (b)		600		638
ING US, Inc.
2.90%, 2/15/18		300		308

	Face Amount (000)		Value (000)
Intesa Sanpaolo SpA
3.88%, 1/16/18	$	355	$	368
JPMorgan Chase & Co.
1.63%, 5/15/18		900		885
Lloyds Bank PLC
2.30%, 11/27/18		400		400
Macquarie Bank Ltd.
1.65%, 3/24/17 (b)		625		624
Mastercard, Inc.
2.00%, 4/1/19		625		623
Metropolitan Life Global Funding I
1.50%, 1/10/18 (b)		775		756
Mizuho Corporate Bank Ltd.
1.85%, 3/21/18 (b)		645		639
National Australia Bank Ltd.
1.25%, 3/17/17 (b)		400		399
Nationwide Building Society
4.65%, 2/25/15 (b)		840		870
Nordea Bank AB
0.88%, 5/13/16 (b)		695		694
PNC Bank NA
0.80%, 1/28/16		600		601
Principal Financial Group, Inc.
1.85%, 11/15/17		725		728
Prudential Financial, Inc.,
MTN
4.75%, 9/17/15		930		983
QBE Insurance Group Ltd.
2.40%, 5/1/18 (b)		200		196
Royal Bank of Scotland Group PLC
2.55%, 9/18/15		495		506
Santander Holdings USA, Inc.
3.45%, 8/27/18		650		673
Skandinaviska Enskilda Banken AB
1.75%, 3/19/18 (b)		380		376
Standard Chartered PLC
3.85%, 4/27/15 (b)		940		971
Sumitomo Mitsui Banking Corp.
2.45%, 1/10/19		630		636
Swedbank AB
1.75%, 3/12/18 (b)		305		302
Toronto-Dominion Bank (The),
MTN
2.63%, 9/10/18		650		666
UnitedHealth Group, Inc.
1.40%, 10/15/17		250		250
WellPoint, Inc.
1.88%, 1/15/18		705		700
Wells Fargo & Co.
2.15%, 1/15/19		360		360
Westpac Banking Corp.
1.38%, 5/30/18 (b)		970		948
				31,966

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Industrials (29.4%)
ABB Treasury Center USA, Inc.
2.50%, 6/15/16 (b)	$	745	$	768
AbbVie, Inc.
1.75%, 11/6/17		715		718
Altera Corp.
2.50%, 11/15/18		300		301
Altria Group, Inc.
4.13%, 9/11/15		750		786
Amazon.com, Inc.
1.20%, 11/29/17		700		694
American Honda Finance Corp.
1.60%, 2/16/18 (b)		545		540
Amgen, Inc.
2.50%, 11/15/16		425		439
Applied Materials, Inc.
2.65%, 6/15/16		455		472
ArcelorMittal,
5.00%, 2/25/17		375		400
9.50%, 2/15/15		10		11
AT&T, Inc.,
1.70%, 6/1/17		1,075		1,085
2.38%, 11/27/18		825		830
Baidu, Inc.
3.25%, 8/6/18		225		230
BAT International Finance PLC
1.40%, 6/5/15 (b)		600		605
Baxter International, Inc.
1.85%, 6/15/18		795		791
Bombardier, Inc.
4.25%, 1/15/16 (b)		250		261
BW Group Ltd.
6.63%, 6/28/17 (b)		325		341
Chesapeake Energy Corp.
6.50%, 8/15/17		350		395
CNH Capital LLC
6.25%, 11/1/16		355		391
Comcast Corp.
5.70%, 5/15/18		520		598
Covidien International Finance SA
1.35%, 5/29/15		265		267
CVS Caremark Corp.
2.25%, 12/5/18		580		581
Daimler Finance North America LLC
2.38%, 8/1/18 (b)		750		758
Diageo Capital PLC
1.50%, 5/11/17		775		781
DISH DBS Corp.
4.63%, 7/15/17		375		400
Eaton Corp.
1.50%, 11/2/17		630		627

	Face Amount (000)		Value (000)
Ecolab, Inc.,
1.00%, 8/9/15	$	245	$	246
3.00%, 12/8/16		320		336
EMC Corp.
1.88%, 6/1/18		750		750
Experian Finance PLC
2.38%, 6/15/17 (b)		600		611
Ford Motor Credit Co., LLC
5.63%, 9/15/15		375		400
General Mills, Inc.
0.88%, 1/29/16		340		340
Glencore Funding LLC
1.70%, 5/27/16 (b)		650		653
Goldcorp, Inc.
2.13%, 3/15/18		520		515
Heathrow Funding Ltd.
2.50%, 6/25/15 (b)		400		405
Hewlett-Packard Co.
3.30%, 12/9/16		315		332
Home Depot, Inc.
5.40%, 3/1/16		630		687
Hyundai Capital America
1.63%, 10/2/15 (b)		395		399
Ingersoll-Rand Global Holding Co., Ltd.
2.88%, 1/15/19 (b)		335		334
John Deere Capital Corp.
1.95%, 12/13/18		510		508
Kraft Foods Group, Inc.
2.25%, 6/5/17		425		436
Kroger Co. (The)
2.30%, 1/15/19		450		446
LVMH Moet Hennessy Louis Vuitton SA
1.63%, 6/29/17 (b)		525		529
Marathon Petroleum Corp.
3.50%, 3/1/16		1,070		1,121
McKesson Corp.
3.25%, 3/1/16		1,070		1,115
Nissan Motor Acceptance Corp.
2.65%, 9/26/18 (b)		720		729
Oracle Corp.
2.38%, 1/15/19		370		375
Orange SA
2.75%, 2/6/19		625		634
Origin Energy Finance Ltd.
3.50%, 10/9/18 (b)		200		204
PACCAR Financial Corp.,
MTN
1.15%, 8/16/16		430		433
PepsiCo, Inc.
0.95%, 2/22/17		630		627
Phillips 66
1.95%, 3/5/15		775		784

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Rio Tinto Finance USA PLC
1.38%, 6/17/16	$	325	$	328
RR Donnelley & Sons Co.
6.13%, 1/15/17		300		331
STATS ChipPAC Ltd.
5.38%, 3/31/16 (b)		300		309
T-Mobile USA, Inc.
5.25%, 9/1/18		500		531
Thermo Fisher Scientific, Inc.
2.40%, 2/1/19		305		304
Thomson Reuters Corp.
1.30%, 2/23/17		325		324
Time Warner Cable, Inc.
6.75%, 7/1/18		400		469
TSMC Global Ltd.
1.63%, 4/3/18 (b)		800		778
Ventas Realty LP
1.55%, 9/26/16		250		252
Verizon Communications, Inc.
2.55%, 6/17/19		1,250		1,259
Viacom, Inc.
2.50%, 9/1/18		625		633
Vodafone Group PLC
1.25%, 9/26/17		775		767
Volkswagen International Finance N.V.
1.13%, 11/18/16 (b)		740		740
Waste Management, Inc.
2.60%, 9/1/16		725		751
Wesfarmers Ltd.
2.98%, 5/18/16 (b)		395		411
				36,206
Utilities (4.4%)
AES Corp.
8.00%, 10/15/17		40		48
DCP Midstream Operating LP
2.70%, 4/1/19		650		649
Dominion Resources, Inc.
1.25%, 3/15/17		350		350
Enel Finance International N.V.
3.88%, 10/7/14 (b)		1,115		1,132
EnLink Midstream Partners LP
2.70%, 4/1/19		525		527
Enterprise Products Operating LLC
1.25%, 8/13/15		315		317
GDF Suez
1.63%, 10/10/17 (b)		650		651
Northeast Utilities
1.45%, 5/1/18		525		510
NRG Energy, Inc.
7.63%, 1/15/18		275		310

	Face Amount (000)			Value (000)
PSEG Power LLC
5.50%, 12/1/15	$	570		$	613
Southern Co. (The)
2.45%, 9/1/18		350			355
					5,462
					73,634
Mortgages — Other (2.4%)
Alternative Loan Trust,
0.55%, 2/25/35 (a)		128			122
5.50%, 10/25/35 - 11/25/35		1,110			1,017
6.00%, 2/25/37		66			54
FDIC Guaranteed Notes Trust
0.70%, 2/25/48 (a)(b)		237			237
Freddie Mac Structured Agency Credit Risk Debt Notes
1.15%, 2/25/24		248			249
JP Morgan Alternative Loan Trust
6.00%, 12/25/35		154			139
Lehman Mortgage Trust
6.50%, 9/25/37		63			56
Merrill Lynch Mortgage Investors Trust Series
2.14%, 11/25/35 (a)		—	@		—	@
Opteum Mortgage Acceptance Corp. Trust
0.45%, 4/25/36 (a)		470			396
RALI Trust,
0.33%, 12/25/36 (a)		346			256
0.34%, 12/25/36 (a)		333			246
6.00%, 11/25/36		187			143
					2,915
Sovereign (1.4%)
Korea Development Bank (The)
1.50%, 1/22/18		690			677
Qatar Government International Bond
4.00%, 1/20/15 (b)		500			514
Spain Government International Bond
4.00%, 3/6/18 (b)		500			529
					1,720
U.S. Treasury Securities (13.1%)
U.S. Treasury Notes,
0.38%, 1/15/16		330			330
0.63%, 5/31/17		8,500			8,403
0.88%, 1/31/17 - 2/28/17		7,400			7,406
					16,139
Total Fixed Income Securities (Cost $120,285)					121,458
	Shares
Short-Term Investments (0.4%)
Investment Company (0.0%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note F) (Cost $22)		22,033			22

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
U.S. Treasury Security (0.4%)
U.S. Treasury Bill
0.06%, 8/21/14 (c)(d) (Cost $490)	$	490	$	490
Total Short-Term Investments (Cost $512)				512
Total Investments (98.9%) (Cost $120,797) (e)				121,970
Other Assets in Excess of Liabilities (1.1%)				1,378
Net Assets (100.0%)			$	123,348

@  Value is less than $500.

(a)  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 31, 2014.

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

(c)  Rate shown is the yield to maturity at March 31, 2014.

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

(e)  Securities are available for collateral in connection with open futures contracts and swap agreements.

FDIC  Federal Deposit Insurance Corporation.

MTN  Medium Term Note.

REMIC  Real Estate Mortgage Investment Conduit.

Futures Contracts:

The Portfolio had the following futures contracts open at March 31, 2014:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		234	$	51,378		Jun-14	$	(66	)
U.S. Treasury 10 yr. Note		40		4,940		Jun-14		(31	)
U.S. Treasury Long Bond		16		2,131		Jun-14		17
Short:
U.S. Treasury 5 yr. Note		395		(46,986	)	Jun-14		299
							$	219

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 31, 2014:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Depreciation (000)			Value (000)			Credit Rating of Reference Obligation†
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	645		1.00	%	3/20/19	$	13		$	(10	)	$	3		BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		625		1.00		12/20/18		(11	)		(4	)		(15	)	BBB
		$	1,270					$	2		$	(14	)	$	(12	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 31, 2014:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (000)
Bank of America NA	3 Month LIBOR	Receive		2.10	%	2/5/23	$	1,880	$	85
Goldman Sachs International	3 Month LIBOR	Receive		2.09		2/15/23		2,670		125
Royal Bank of Canada	3 Month LIBOR	Receive		2.06		2/6/23		3,320		162
									$	372

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

LIBOR  London Interbank Offered Rate.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Portfolio of Investments (cont'd)

Limited Duration Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		29.7	%
Finance		26.2
Other+		16.8
Asset-Backed Securities		14.1
U.S. Treasury Securities		13.2
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 $105,435,000 with net unrealized appreciation of approximately $219,000. Does not include open swap agreements with net unrealized appreciation of approximately $358,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Limited Duration Portfolio

Statement of Assets and Liabilities	March 31, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $120,775)	$	121,948
Investment in Security of Affiliated Issuer, at Value (Cost $22)		22
Total Investments in Securities, at Value (Cost $120,797)		121,970
Cash		6
Receivable for Investments Sold		1,284
Interest Receivable		548
Unrealized Appreciation on Swap Agreements		372
Receivable for Portfolio Shares Sold		34
Due from Adviser		16
Premium Paid on Open Swap Agreements		13
Receivable from Affiliate		—	@
Other Assets		32
Total Assets		124,275
Liabilities:
Due to Broker		340
Payable for Portfolio Shares Redeemed		267
Payable for Sub Transfer Agency Fees		107
Payable for Sub Transfer Agency Fees — Class I		100
Payable for Professional Fees		31
Unrealized Depreciation on Swap Agreements		14
Premium Received on Open Swap Agreements		11
Payable for Variation Margin on Futures Contracts		10
Payable for Administration Fees		8
Payable for Trustees' Fees and Expenses		6
Payable for Custodian Fees		4
Payable for Transfer Agent Fees — Class I		—	@
Payable for Transfer Agent Fees — Class A		—	@
Payable for Transfer Agent Fees — Class L		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Other Liabilities		29
Total Liabilities		927
Net Assets	$	123,348
Net Assets Consist of:
Paid-in-Capital	$	370,512
Accumulated Undistributed Net Investment Income		279
Accumulated Net Realized Loss		(249,193	)
Unrealized Appreciation (Depreciation) on:
Investments		1,173
Futures Contracts		219
Swap Agreements		358
Net Assets	$	123,348

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Limited Duration Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2014 (000)
CLASS I:
Net Assets	$	121,380
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		15,525,432
Net Asset Value, Offering and Redemption Price Per Share	$	7.82
CLASS A:
Net Assets	$	1,878
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		239,926
Net Asset Value, Redemption Price Per Share	$	7.83
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.35
Maximum Offering Price Per Share	$	8.18
CLASS L:
Net Assets	$	90
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		11,549
Net Asset Value, Offering and Redemption Price Per Share	$	7.81

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014 (unaudited)

Limited Duration Portfolio

Statement of Operations	Six Months Ended March 31, 2014 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	1,235
Dividends from Security of Affiliated Issuer (Note F)		1
Total Investment Income		1,236
Expenses:
Advisory Fees (Note B)		185
Sub Transfer Agency Fees — Class I		126
Sub Transfer Agency Fees — Class A		—	@
Sub Transfer Agency Fees — Class L		—	@
Professional Fees		55
Shareholder Reporting Fees		53
Administration Fees (Note C)		49
Registration Fees		24
Custodian Fees (Note E)		17
Pricing Fees		13
Transfer Agency Fees — Class I		2
Transfer Agency Fees — Class A		1
Transfer Agency Fees — Class L		1
Trustees' Fees and Expenses		2
Shareholder Services Fees — Class A (Note D)		2
Distribution and Shareholder Services Fees — Class L (Note D)		—	@
Other Expenses		9
Total Expenses		539
Reimbursement of Class Specific Expenses — Class I (Note B)		(128	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Waiver of Advisory Fees (Note B)		(79	)
Rebate from Morgan Stanley Affiliate (Note F)		(2	)
Net Expenses		329
Net Investment Income		907
Realized Gain (Loss):
Investments Sold		957
Futures Contracts		(241	)
Swap Agreements		(124	)
Net Realized Gain		592
Change in Unrealized Appreciation (Depreciation):
Investments		(25	)
Futures Contracts		372
Swap Agreements		24
Net Change in Unrealized Appreciation (Depreciation)		371
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		963
Net Increase in Net Assets Resulting from Operations	$	1,870

@  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 31, 2014

Limited Duration Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2014 (unaudited) (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	907		$	1,934
Net Realized Gain		592			1,551
Net Change in Unrealized Appreciation (Depreciation)		371			(2,083	)
Net Increase in Net Assets Resulting from Operations		1,870			1,402
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(883	)		(2,132	)
Class A:
Net Investment Income		(7	)		(3	)
Class H*:
Net Investment Income		—			(2	)**
Class L:
Net Investment Income		(—	@)		(1	)
Total Distributions		(890	)		(2,138	)
Capital Share Transactions:(1)
Class I:
Subscribed		6,592			5,024
Distributions Reinvested		882			2,130
Redeemed		(10,022	)		(28,846	)
Class A:
Subscribed		1,172			486
Distributions Reinvested		7			3
Conversion from Class H		—			243
Redeemed		(59	)		(129	)
Class H*:
Subscribed		—			270	**
Distributions Reinvested		—			1	**
Conversion to Class A		—			(243	)**
Redeemed		—			(38	)**
Class L:
Subscribed		—			93
Distributions Reinvested		—	@		—	@
Redeemed		(6	)		(8	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(1,434	)		(21,014	)
Total Decrease in Net Assets		(454	)		(21,750	)
Net Assets:
Beginning of Period		123,802			145,552
End of Period (Including Accumulated Undistributed Net Investment Income of $279 and $262)	$	123,348		$	123,802
(1)   Capital Share Transactions:
Class I:
Shares Subscribed	$	846		$	646
Shares Issued on Distributions Reinvested		113			274
Shares Redeemed		(1,287	)		(3,706	)
Net Decrease in Class I Shares Outstanding		(328	)		(2,786	)
Class A:
Shares Subscribed		151			63
Shares Issued on Distributions Reinvested		1			—	@@
Conversion from Class H		—			31
Shares Redeemed		(8	)		(17	)
Net Increase in Class A Shares Outstanding		144			77
Class H*:
Shares Subscribed		—			35	**
Shares Issued on Distributions Reinvested		—			—	@@**
Conversion to Class A		—			(31	)**
Shares Redeemed		—			(5	)**
Net Decrease in Class H Shares Outstanding		—			(1	)
Class L:
Shares Subscribed		—			12
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(1	)		(1	)
Net Increase (Decrease) in Class L Shares Outstanding		(1	)		11

@  Amount is less than $500.

@@  Amount is less than 500 shares.

*  Effective September 9, 2013, Class H shares converted into Class A shares.

**  For the period October 1, 2012 through September 6, 2013.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Limited Duration Portfolio

	Class I
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	7.76		$	7.80		$	7.71		$	7.79		$	7.68		$	8.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.06			0.11			0.15			0.16			0.18			0.24
Net Realized and Unrealized Gain (Loss)		0.06			(0.03	)		0.11			(0.10	)		0.10			(0.12	)
Total from Investment Operations		0.12			0.08			0.26			0.06			0.28			0.12
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.12	)		(0.17	)		(0.14	)		(0.16	)		(0.44	)
Paid-in-Capital		—			—			—			—			(0.01	)		—
Total Distributions		(0.06	)		(0.12	)		(0.17	)		(0.14	)		(0.17	)		(0.44	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	7.82		$	7.76		$	7.80		$	7.71		$	7.79		$	7.68
Total Return++		1.50	%#		1.09	%		3.35	%		0.71	%		3.74	%		1.77	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	121,380		$	122,958		$	145,387		$	167,811		$	208,608		$	262,794
Ratio of Expenses to Average Net Assets (1)		0.53	%+††*		0.71	%+^		0.63	%+		0.59	%+††		0.55	%+††		0.45	%+
Ratio of Net Investment Income to Average Net Assets (1)		1.48	%+††*		1.45	%+^		1.92	%+		2.12	%+††		2.39	%+††		3.16	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		35	%#		66	%		51	%		35	%		95	%		110	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.87	%††*		0.72	%		N/A			N/A			N/A			N/A
Net Investment Income to Average Net Assets		1.14	%††*		1.44	%		N/A			N/A			N/A			N/A

†  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.

+  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%.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.53% for Class I shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Limited Duration Portfolio

	Class A
	Six Months Ended March 31, 2014			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2013			2012			2011			2010			2009
Net Asset Value, Beginning of Period	$	7.77		$	7.80		$	7.71		$	7.79		$	7.68		$	8.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.04			0.09			0.13			0.15			0.17			0.22
Net Realized and Unrealized Gain (Loss)		0.06			(0.01	)		0.11			(0.12	)		0.09			(0.12	)
Total from Investment Operations		0.10			0.08			0.24			0.03			0.26			0.10
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.11	)		(0.15	)		(0.11	)		(0.15	)		(0.42	)
Paid-in-Capital		—			—			—			—			(0.00	)‡		—
Total Distributions		(0.04	)		(0.11	)		(0.15	)		(0.11	)		(0.15	)		(0.42	)
Redemption Fees		—			—			—			—			—			0.00	‡
Net Asset Value, End of Period	$	7.83		$	7.77		$	7.80		$	7.71		$	7.79		$	7.68
Total Return++		1.35	%#		0.84	%		3.22	%		0.45	%		3.48	%		1.52	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,878		$	749		$	145		$	194		$	52		$	169
Ratio of Expenses to Average Net Assets (1)		0.88	%+††*		0.97	%+^		0.88	%+		0.84	%+††		0.80	%+††		0.70	%+
Ratio of Net Investment Income to Average Net Assets (1)		1.13	%+††*		1.15	%+^		1.70	%+		1.87	%+††		2.14	%+††		2.87	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		35	%#		66	%		51	%		35	%		95	%		110	%
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.05	%††*		1.00	%		N/A			N/A			N/A			N/A
Net Investment Income to Average Net Assets		0.96	%††*		1.12	%		N/A			N/A			N/A			N/A

†  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.

+  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%.

^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.88% for Class A shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Financial Highlights

Limited Duration Portfolio

	Class L
Selected Per Share Data and Ratios	Six Months Ended March 31, 2014 (unaudited)			Year Ended September 30, 2013			Period from April 27, 2012^ to September 30, 2012
Net Asset Value, Beginning of Period	$	7.75		$	7.80		$	7.76
Income (Loss) from Investment Operations:
Net Investment Income†		0.03			0.07			0.04
Net Realized and Unrealized Gain (Loss)		0.06			(0.03	)		0.04
Total from Investment Operations		0.09			0.04			0.08
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.09	)		(0.04	)
Net Asset Value, End of Period	$	7.81		$	7.75		$	7.80
Total Return++		1.16	%#		0.48	%		1.06	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	90		$	95		$	10
Ratio of Expenses to Average Net Assets (1)		1.23	%+††*		1.24	%+^^		1.21	%+*
Ratio of Net Investment Income to Average Net Assets (1)		0.78	%+††*		0.85	%+^^		1.14	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%*§
Portfolio Turnover Rate		35	%#		66	%		51	%#
(1) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.72	%††*		1.34	%		N/A
Net Investment Income (Loss) to Average Net Assets		(0.71	)%††*		0.75	%		N/A

^  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.

+  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%.

^^  Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.23% for Class L shares.

#  Not Annualized.

*  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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 three classes of shares — Class I, Class A 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) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (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 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 taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

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. 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

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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. 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 31, 2014.

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	$	—		$	4,625		$	—	$	4,625
Agency Fixed Rate Mortgages		—			713			—		713
Asset-Backed Securities		—			17,203			—		17,203
Collateralized Mortgage Obligations — Agency Collateral Series		—			3,744			—		3,744
Commercial Mortgage- Backed Securities		—			765			—		765
Corporate Bonds		—			73,634			—		73,634
Mortgages — Other		—			2,915			—		2,915
Sovereign		—			1,720			—		1,720
U.S. Treasury Securities		—			16,139			—		16,139
Total Fixed Income Securities		—			121,458			—		121,458
Short-Term Investments
Investment Company		22			—			—		22
U.S. Treasury Security		—			490			—		490
Total Short-Term Investments		22			490			—		512
Futures Contracts		316			—			—		316
Interest Rate Swap Agreements		—			372			—		372
Total Assets		338			122,320			—		122,658
Liabilities:
Futures Contracts		(97	)		—			—		(97	)
Credit Default Swap Agreements		—			(14	)		—		(14	)
Total Liabilities		(97	)		(14	)		—		(111	)
Total	$	241		$	122,306		$	—	$	122,547

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 31, 2014, the Portfolio did not have any investments transfer between investment levels.

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. 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 the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. 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 the risk of 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, exchange-traded agreement to buy or sell a specific quantity of an

underlying asset, reference rate or index 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 contracts 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 contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts 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. There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with whom the Portfolio has open positions in the futures contract.

Swaps: The Portfolio may enter into over-the-counter ("OTC") swap contracts or cleared swap transactions. A swap contract 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, indices, reference rates, currencies or other instruments. Typically 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 contract 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 party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Portfolio's ultimate counterparty is a clearinghouse rather than a bank, dealer or other financial institution. OTC swap agreements are not entered into or traded on exchanges and

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring 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 commonly referred to as credit default swaps. The Portfolio may be either the buyer or seller in a credit default swap. Where the Portfolio is the buyer of a credit default swap contract, it would typically be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract only in the event of a default or similar event by the issuer of the debt obligation. If no default occurs, the Portfolio would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Portfolio is the seller of a credit default swap contract, it typically 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 the default or similar event by the issuer of the referenced debt obligation. The use of credit default swaps could result in losses to the Portfolio if the Adviser fails to correctly evaluate the creditworthiness of the issuer 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. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

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 tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 31, 2014.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk	$	316	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Interest Rate Risk		372
Total			$	688
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin	Interest Rate Risk	$	(97	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(14	)
Total			$	(111	)

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

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 31, 2014 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(241	)
Credit Risk	Swap Agreements		(32	)
Interest Rate Risk	Swap Agreements		(92	)
	Total	$	(365	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	372
Credit Risk	Swap Agreements		9
Interest Rate Risk	Swap Agreements		15
	Total	$	396

At March 31, 2014, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Swap Agreements	$	372	$	(14	)

(b) Excludes exchange-traded derivatives.

(c) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

The Portfolio typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreements, the Portfolio typically may offset with the counterparty certain derivative financial instrument's payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swaps, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Portfolio and a counterparty gives the non-defaulting party

the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party. In the event of a default by a Master Agreements counterparty, the return of collateral with market value in excess of the Portfolio's net liability, held by the defaulting party, may be delayed or denied.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2014.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Received(d) (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	85	$	—	$	—		$	85
Goldman Sachs International		125		—		—			125
Royal Bank of Canada		162		—		(162	)		0
Total	$	372	$	—	$	(162	)	$	210

(d) In some instances, the actual collateral received may be more than the amount shown here due to overcollateralization.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	14	$	—	$	—	$	14

For the six months ended March 31, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	105,438,000
Swap Agreements:
Average monthly notional amount	$	21,665,000

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 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.

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 -distribution, transfer agency and sub transfer agency fees) 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.

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 0.53% for Class I shares, 0.88% for Class A shares and 1.23% for Class L shares. The fee waivers and/or expense reimbursements will continue for at least one year or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2014, approximately $79,000 of advisory fees were waived and approximately $129,000 of other expenses were reimbursed by the Adviser 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 Portfolio.

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 a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, 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 A 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 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 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 A and Class L shares.

E. 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.

F. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $21,860,000 and $26,194,000, respectively. For the six months ended March 31, 2014, purchases and sales of long-term U.S. Government securities were approximately $20,166,000 and $16,788,000, 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

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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 31, 2014, 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 31, 2014 is as follows:

Value September 30, 2013 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2014 (000)
$	1,114	$	23,489	$	24,581	$	1	$	22

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.

G. 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.

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, 2013, 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 years 2013 and 2012 was as follows:

2013 Distributions Paid From: Ordinary Income (000)		2012 Distributions Paid From: Ordinary Income (000)
$	2,138	$	3,366

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, paydown adjustments and an expired capital loss carryforward, resulted in the following reclassifications among the components of net assets at September 30, 2013:

Accumulated Undistributed Net Investment Income (000)			Accumulated Net Realized Loss (000)		Paid-in Capital (000)
$	(40	)	$	7,733	$	(7,693	)

At September 30, 2013, 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)
$	241		—

At March 31, 2014, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,470,000 and the aggregate gross unrealized depreciation is approximately $297,000 resulting in net unrealized appreciation of approximately $1,173,000.

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

At September 30, 2013, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	8,229	September 30, 2014
	7,068	September 30, 2015
	265	September 30, 2016
	200,864	September 30, 2017
	33,504	September 30, 2018

During the year ended September 30, 2013, the Portfolio expired capital loss carryforwards for Federal income tax purposes of approximately $7,693,000.

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, 2013, the Portfolio utilized capital loss carryforwards for U.S. Federal income tax purposes of approximately $1,417,000.

H. Accounting Pronouncement: In June 2013, FASB issued Accounting Standards Update 2013-08 Financial Services — Investment Companies (Topic 946) — Amendments to the Scope, Measurement, and Disclosure Requirements ("ASU 2013-08") which is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. ASU 2013-08 sets forth a methodology for determining whether an entity should be characterized as an investment company and prescribes fair value accounting for an investment company's non-controlling ownership interest in another investment company. FASB has determined that a fund registered under the Act automatically meets ASU 2013-08's criteria for an investment company. Although still evaluating the potential impacts of ASU 2013-08 to the Portfolio, management expects that the impact of the Portfolio's adoption will be limited to additional financial statement disclosures.

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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.

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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

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.

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.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

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:

  Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

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.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2014

Trustee and Officer Information (unaudited)

Trustees

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

Officers

Michael E. Nugent
Chairperson of the Board and Trustee

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

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

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 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.

28

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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

© 2014 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTLDSAN
910428 EXP 05.31.15

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.

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/ John H. Gernon

John H. Gernon

Principal Executive Officer

May 20, 2014

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/ John H. Gernon

John H. Gernon

Principal Executive Officer

May 20, 2014

/s/ Francis Smith

Francis Smith

Principal Financial Officer

May 20, 2014