Morgan Stanley Institutional Fund Trust NCSR Certified 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,

Date of reporting period:		September 30, 2014

Item 1 - Report to Shareholders

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Core Fixed Income Portfolio

Annual Report

September 30, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Advisory Agreement Approval					4
Investment Overview					6
Portfolio of Investments					8
Statement of Assets and Liabilities					13
Statement of Operations					15
Statements of Changes in Net Assets					16
Financial Highlights					17
Notes to Financial Statements					20
Report of Independent Registered Public Accounting Firm					28
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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Core Fixed Income Portfolio (the "Portfolio") performed during the latest twelve-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

October 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 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 September 30, 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 4/1/14		Actual Ending Account Value 9/30/14		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	$	1,024.80	$	1,022.61	$	2.49	$	2.48		0.49	%
Core Fixed Income Portfolio Class A		1,000.00		1,023.00		1,020.86		4.26		4.26		0.84
Core Fixed Income Portfolio Class L		1,000.00		1,021.70		1,019.60		5.52		5.52		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 183/365 (to reflect the most recent one-half year period).

** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

The Board reviewed and considered the nature and extent of the investment advisory services provided by the Adviser (as defined herein) under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services provided by the Adviser under the administration agreement, including accounting, clerical, bookkeeping, compliance, business management and planning, and the provision of supplies, office space and utilities at the Adviser's expense. (The advisory and administration agreements together are referred to as the "Management Agreement.") The Board also compared the nature of the services provided by the Adviser with similar services provided by non-affiliated advisers as reported to the Board by Lipper, Inc. ("Lipper").

The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who provide the advisory and administrative services to the Portfolio. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services provided were necessary and appropriate for the conduct of the business and investment activities of the Portfolio and supported its decision to approve the Management Agreement.

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2013, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one- and three-year periods but below its peer group average for the five-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. The Board noted that the Portfolio's management fee and total expense ratio were lower than its peer group average. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; (ii) management fee was competitive with its peer group average; and (iii) total expense ratio was competitive with its peer group average.

Economies of Scale

The Board considered the size and growth prospects of the Portfolio and how that relates to the Portfolio's total expense ratio and particularly the Portfolio's management fee rate, which does not include breakpoints. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Portfolio and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and potential economies of scale of the Portfolio supports its decision to approve the Management Agreement.

Profitability of the Adviser and Affiliates

The Board considered information concerning the costs incurred and profits realized by the Adviser and its affiliates during the last year from their relationship with the Portfolio and during the last two years from their relationship with the Morgan Stanley Fund Complex and reviewed with the Adviser the cost allocation methodology used to determine the profitability of the Adviser and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.

Other Benefits of the Relationship

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited) (cont'd)

commission dollars spent on funds' portfolio trading, and fees for trading, distribution and/or shareholder servicing. The Board reviewed with the Adviser each of these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.

Resources of the Adviser and Historical Relationship Between the Portfolio and the Adviser

The Board considered whether the Adviser is financially sound and has the resources necessary to perform its obligations under the Management Agreement. The Board also reviewed and considered the historical relationship between the Portfolio and the Adviser, including the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Portfolio's operations and the Board's confidence in the competence and integrity of the senior managers and key personnel of the Adviser. The Board concluded that the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Portfolio to continue its relationship with the Adviser.

Other Factors and Current Trends

The Board considered the controls and procedures adopted and implemented by the Adviser and monitored by the Fund's Chief Compliance Officer and concluded that the conduct of business by the Adviser indicates a good faith effort on its part to adhere to high ethical standards in the conduct of the Fund's business.

General Conclusion

After considering and weighing all of the above factors, the Board concluded that it would be in the best interest of the Portfolio and its shareholders to approve renewal of the Management Agreement for another year. In reaching this conclusion the Board did not give particular weight to any single factor referenced above. The Board considered these factors over the course of numerous meetings, some of which were in executive session with only the independent Board members and their counsel present. It is possible that individual Board members may have weighed these factors differently in reaching their individual decisions to approve the Management Agreement.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited)

Core Fixed Income Portfolio

The Core Fixed Income Portfolio seeks above-average total return over a market cycle of three to five years.

Performance

For the fiscal year ended September 30, 2014, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 4.97%, net of fees. The Portfolio's Class I shares outperformed against the Portfolio's benchmark, the Barclays Capital U.S. Aggregate Index (the "Index"), which returned 3.96%.

Factors Affecting Performance

• After rallying for most of the period, risky assets paused late in the period as investors took stock of the changing fundamental backdrop and re-evaluated whether market risk premia are sufficient to compensate for these risks. In the U.S., investors increased their focus on when the Federal Reserve (Fed) will raise rates, potentially increasing the volatility in financial markets. In contrast, investors in Europe focused on the weakening fundamental backdrop, as economic growth continued to decelerate and inflation expectations continued their downward path, thereby putting pressure on the European Central Bank (ECB) to take additional unconventional action. On a global basis, expectations for growth continue to fall, and this has been reflected in weaker commodity prices and the strengthening U.S. dollar. These concerns, combined with the growing geopolitical tension in Syria and Iraq, contributed to an uncertain backdrop for investing.

• In the U.S., the Fed has maintained a view that rates will remain low for a "considerable time." The ECB eased policy rates and announced outright asset purchases of asset-backed securities (ABS) and covered bonds. The Bank of Japan continued to contemplate ways to ease financial conditions. Both Australian and New Zealand central banks have also turned slightly more dovish, meaning that they are more favorable toward maintaining low interest rates to foster economic growth. As long as the inflation backdrop remains benign, the risk of a sharp rise in interest rates appears minimal.

• The Fed is expected to complete the tapering of its mortgage-backed security (MBS) purchase program by October of this year. During the first half of 2014, the Fed purchased as much as 75% of net MBS issuance.⁽ⁱ⁾ The Fed's share declined to 30% to 50% in the third quarter, as MBS gross issuance increased in the summer months and the Fed continued to

reduce the size of its purchases. Even after the bond buying program ends, the Fed will likely continue to reinvest MBS paydowns, which is expected to reduce its share of net issuance to 25% to 30%.

• The mortgage primary rate rose slightly from the 2014 lows set in June, ending September at 4.20%.⁽ⁱⁱ⁾ Despite the low mortgage rate environment, refinancing activity remained at historically low levels and has contributed to relatively tight spreads. Other housing indicators pointed to slower growth in housing trends as new construction remained weak and existing homes sales began to fall at the end of the period. We believe home price growth could continue, albeit at a slower pace. The fundamentals in the housing market are very positive, supported by good housing affordability, near all-time low household debt service ratios and an improving labor market.

• Commercial mortgage-backed security (CMBS) bond spreads tightened and new issue supply was absorbed by the market. Overall, issuance is projected to exceed last year's volumes and rely on a reasonably active forward calendar. Delinquency trends have remained stable.

• Corporate credit performed well during the period. On a sector basis, financials continued to outperform industrials, supported by the financials sector's lower net issuance and continued secular de-risking. Credit spreads decompressed, with higher rated issuers outperforming those with lower-quality credit profiles. The high yield segment weakened in the latter part of the period, reflecting both the spread decompression witnessed in the investment grade market and less favorable supply demand characteristics. High yield supply has been high both in Europe and the U.S., while fund flows were negative, particularly in the U.S., as investors reduced positions ahead of a potential rate-raising cycle.

• The Treasury yield curve flattened during the period, with two- and five-year yields rising between 20 and 30 basis points, and 10- and 30-year yields falling between 20 and 60 basis points.

• The Portfolio's positioning in the corporate sector was one of the main drivers of outperformance. In particular, an overweight in financials contributed significantly to returns.

⁽ⁱ⁾ Fed MBS data from J.P. Morgan Global Structured Finance Research and the Federal Reserve.

⁽ⁱⁱ⁾ Data from Bloomberg.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

Core Fixed Income Portfolio

• An overweight to CMBS also contributed positively to returns.

• A small overweight to emerging market debt added slightly to returns, as that sector recovered from the sell-off in the summer of 2013.

• A duration that was lower than that of the Index also contributed positively to returns.

• Although it detracted toward the end of the period, positioning in agency MBS had a nearly neutral impact on relative performance overall.

Management Strategies

• Throughout the period, the Portfolio was positioned with an overweight to investment-grade credit, particularly in financials, as we believe valuations relative to fundamentals have been attractive.

• With regard to interest rate strategy, the Portfolio is positioned to be underweight duration at the intermediate part of the yield curve.

• We continue being overweight spread product (non-government bonds) as we believe the yield advantage could provide attractive returns over the near term.

* Minimum Investment

In accordance with SEC regulations, the Portfolio's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A and Class L shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes.

Performance Compared to the Barclays Capital U.S. Aggregate Index⁽¹⁾ and the Lipper Core Bond Funds Index⁽²⁾

	Period Ended September 30, 2014 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁷⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		4.97	%		4.77	%		3.54	%		6.64	%
Barclays Capital U.S. Aggregate Index		3.96			4.12			4.62			6.99
Lipper Core Bond Funds Index		4.54			5.06			4.57			—
Portfolio — Class A Shares w/o sales charges⁽⁵⁾		4.61			4.51			3.27			4.30
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁵⁾		0.14			3.61			2.82			4.01
Barclays Capital U.S. Aggregate Index		3.96			4.12			4.62			5.40
Lipper Core Bond Funds Index		4.54			5.06			4.57			5.29
Portfolio — Class L Shares w/o sales charges⁽⁶⁾		4.34			—			—			2.23
Barclays Capital U.S. Aggregate Index		3.96			—			—			1.99
Lipper Core Bond Funds Index		4.54			—			—			2.74

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im. Investment returns and principal value will fluctuate so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Performance of share classes will vary due to differences in sales charges and expenses.

⁽¹⁾ The Barclays Capital U.S. Aggregate Index tracks the performance of all U.S. government agency and Treasury securities, investment-grade corporate debt securities, agency mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Core Bond Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Core Bond Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Core Bond Funds classification.

⁽³⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower. The fee waivers and/or expense reimbursements will continue for at least one year or until such time as the Fund's Board of Trustees acts to discontinue all or a portion of such waivers and/or reimbursements when it deems such action is appropriate.

⁽⁴⁾ Commenced operations on September 29, 1987.

⁽⁵⁾ Commenced operations on March 1, 1999.

⁽⁶⁾Commenced operations on April 27, 2012.

⁽⁷⁾For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date or initial offering of the respective share class of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (94.1%)
Agency Fixed Rate Mortgages (32.7%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
4.00%, 12/1/41	$	201	$	212
5.00%, 10/1/35		288		318
6.00%, 5/1/37 - 11/1/37		76		86
7.50%, 5/1/35		39		46
8.00%, 8/1/32		22		27
8.50%, 8/1/31		34		43
Federal National Mortgage Association,
Conventional Pools:
3.50%, 12/1/42		853		871
4.00%, 11/1/41 - 12/1/41		867		914
4.50%, 8/1/40 - 7/1/41		1,091		1,184
5.50%, 4/1/34 - 2/1/38		544		609
6.00%, 1/1/38		56		63
6.50%, 7/1/29 - 11/1/32		148		169
7.00%, 10/1/31 - 12/1/31		1		1
7.50%, 8/1/37		67		81
8.00%, 4/1/33		48		58
8.50%, 10/1/32		48		59
				4,741
Asset-Backed Securities (0.9%)
CVS Pass-Through Trust
6.04%, 12/10/28		106		122
Collateralized Mortgage Obligations — Agency Collateral Series (6.9%)
Federal National Mortgage Association,
IO
6.24%, 9/25/20 (a)		1,677		400
IO REMIC
6.45%, 9/25/38 (a)		440		73
REMIC
9.29%, 10/25/41 (a)(b)		77		78
Government National Mortgage Association,
IO
0.83%, 8/20/58 (a)		2,811		84
3.50%, 5/20/43		570		131
5.00%, 2/16/41		112		20
5.95%, 8/16/42 (a)		556		111
6.00%, 6/20/43 (a)		588		98
				995
Corporate Bonds (35.5%)
Finance (18.8%)
Abbey National Treasury Services PLC
3.05%, 8/23/18		120		125
ACE INA Holdings, Inc.
3.35%, 5/15/24 (c)		100		100
Aegon N.V.
4.63%, 12/1/15 (c)		75		78

	Face Amount (000)		Value (000)
American International Group, Inc.
4.88%, 6/1/22	$	75	$	83
AvalonBay Communities, Inc.
2.95%, 9/15/22		75		73
Bank of America Corp.,
4.20%, 8/26/24		25		25
5.00%, 1/21/44		20		21
MTN
3.30%, 1/11/23		100		98
Bank of New York Mellon Corp. (The)
3.65%, 2/4/24		100		103
BNP Paribas SA
5.00%, 1/15/21 (c)		60		67
Boston Properties LP,
3.80%, 2/1/24		10		10
3.85%, 2/1/23		100		102
Brookfield Asset Management, Inc.
5.80%, 4/25/17		50		55
Capital One Financial Corp.
2.45%, 4/24/19		25		25
Citigroup, Inc.,
3.88%, 10/25/23		100		102
6.68%, 9/13/43		20		25
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
3.88%, 2/8/22 (c)		75		79
Credit Suisse
6.00%, 2/15/18		60		67
ERP Operating LP
3.00%, 4/15/23 (c)		55		53
General Electric Capital Corp.,
MTN
5.88%, 1/14/38		25		30
Series G
6.00%, 8/7/19		115		134
Goldman Sachs Group, Inc. (The)
6.75%, 10/1/37		55		66
Hartford Financial Services Group, Inc.
5.50%, 3/30/20		85		96
HSBC Finance Corp.
6.68%, 1/15/21		100		117
HSBC USA, Inc.
3.50%, 6/23/24 (c)		100		100
JPMorgan Chase & Co.
3.20%, 1/25/23		145		142
Liberty Mutual Group, Inc.
4.85%, 8/1/44 (d)		25		25
Pacific LifeCorp
6.00%, 2/10/20 (d)		50		57
PNC Financial Services Group, Inc. (The)
3.90%, 4/29/24 (c)		60		60
Principal Financial Group, Inc.
8.88%, 5/15/19		100		127

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Realty Income Corp.
4.65%, 8/1/23 (c)	$	50	$	54
Royal Bank of Scotland Group PLC
2.55%, 9/18/15		120		122
State Street Corp.
3.10%, 5/15/23		60		58
Synchrony Financial
4.25%, 8/15/24		25		25
UnitedHealth Group, Inc.
2.88%, 3/15/23 (c)		125		122
Wells Fargo & Co.,
Series M
3.45%, 2/13/23		100		98
				2,724
Industrials (14.4%)
Altera Corp.
2.50%, 11/15/18		100		101
Altria Group, Inc.,
2.85%, 8/9/22		55		53
5.38%, 1/31/44 (c)		5		5
Amazon.com, Inc.
1.20%, 11/29/17		100		99
Amgen, Inc.
5.15%, 11/15/41		25		26
Anadarko Petroleum Corp.
6.45%, 9/15/36		50		61
Apple, Inc.
2.40%, 5/3/23 (c)		65		62
AT&T, Inc.
6.30%, 1/15/38		45		53
Barrick Gold Corp.
4.10%, 5/1/23 (c)		50		48
BHP Billiton Finance USA Ltd.
3.85%, 9/30/23		50		52
BP Capital Markets PLC
3.25%, 5/6/22		50		50
Caterpillar, Inc.
3.40%, 5/15/24 (c)		50		51
Coca-Cola Co.
3.20%, 11/1/23		50		50
ConocoPhillips
6.50%, 2/1/39		25		33
DirecTV Holdings LLC/DirecTV Financing Co., Inc.
3.80%, 3/15/22		50		51
eBay, Inc.
2.88%, 8/1/21 (c)		25		25
EMC Corp.
3.38%, 6/1/23		50		49
Ensco PLC
5.75%, 10/1/44		25		25

	Face Amount (000)		Value (000)
Freeport-McMoRan, Inc.
3.88%, 3/15/23 (c)	$	20	$	20
Gilead Sciences, Inc.
4.80%, 4/1/44		25		26
Goldcorp, Inc.
3.70%, 3/15/23 (c)		50		49
Hewlett-Packard Co.
4.65%, 12/9/21 (c)		40		43
Home Depot, Inc.
5.88%, 12/16/36		50		62
Johnson Controls, Inc.
3.63%, 7/2/24		50		50
Merck & Co., Inc.
2.80%, 5/18/23		50		49
Motorola Solutions, Inc.
4.00%, 9/1/24		25		24
NBC Universal Media LLC
5.95%, 4/1/41		25		31
Oracle Corp.
3.40%, 7/8/24 (c)		25		25
PepsiCo, Inc.
3.60%, 3/1/24 (c)		50		51
Sanofi
4.00%, 3/29/21 (c)		60		65
Spectra Energy Capital LLC
3.30%, 3/15/23		25		24
Target Corp.
3.50%, 7/1/24		25		25
Tiffany & Co.
4.90%, 10/1/44 (d)		25		25
Time Warner Cable, Inc.
4.50%, 9/15/42 (c)		25		25
Toyota Motor Credit Corp.
2.75%, 5/17/21		50		51
Tyson Foods, Inc.
3.95%, 8/15/24		40		40
United Airlines Pass-Through Trust,
Series A
3.75%, 3/3/28		25		25
4.00%, 10/11/27 (c)		100		100
Verizon Communications, Inc.,
5.01%, 8/21/54 (d)		55		55
6.55%, 9/15/43		56		70
Volkswagen International Finance N.V.
2.38%, 3/22/17 (d)		115		118
Wesfarmers Ltd.,
1.87%, 3/20/18 (d)		55		55
2.98%, 5/18/16 (d)		85		88
				2,090

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Utilities (2.3%)
Buckeye Partners LP
4.15%, 7/1/23	$	75	$	75
EnLink Midstream Partners LP
2.70%, 4/1/19		50		50
Jersey Central Power & Light Co.
4.70%, 4/1/24 (d)		75		80
Kinder Morgan Energy Partners LP
3.50%, 9/1/23		50		48
PPL WEM Holdings Ltd.
3.90%, 5/1/16 (d)		75		78
				331
				5,145
Sovereign (1.4%)
Credit Mutuel — CIC Home Loan SFH
1.50%, 11/16/17 (c)(d)		200		200
U.S. Treasury Securities (16.7%)
U.S. Treasury Bonds,
2.75%, 11/15/42		425		389
3.00%, 5/15/42		405		391
U.S. Treasury Notes,
0.63%, 8/15/16 - 5/31/17		1,125		1,122
0.88%, 1/31/17		525		526
				2,428
Total Fixed Income Securities (Cost $13,219)				13,631
	Shares
Short-Term Investments (15.5%)
Securities held as Collateral on Loaned Securities (10.1%)
Investment Company (8.2%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		1,186,306		1,186
	Face Amount (000)
Repurchase Agreement (1.9%)
Merrill Lynch & Co., Inc., (Zero Coupon, dated 9/30/14, due 10/1/14; proceeds $282; fully collateralized by various U.S. Government agency securities; 3.00% - 7.00% due 9/15/31 - 9/15/44; valued at $287)	$	282		282
Total Securities held as Collateral on Loaned Securities (Cost $1,468)				1,468
	Shares
Investment Company (4.8%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $703)		702,607		703

	Face Amount (000)		Value (000)
U.S. Treasury Securities (0.6%)
U.S. Treasury Bills,
0.04%, 2/12/15 (e)(f)	$	25	$	25
0.05%, 2/12/15 (e)(f)		62		62
Total U.S. Treasury Securities (Cost $87)				87
Total Short-Term Investments (Cost $2,258)				2,258
Total Investments (109.6%) (Cost $15,477) Including $1,492 of Securities Loaned (g)				15,889
Liabilities in Excess of Other Assets (-9.6%)				(1,386	)
Net Assets (100.0%)			$	14,503

(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 September 30, 2014.

(b) Inverse Floating Rate Security — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at September 30, 2014.

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

(e) Rate shown is the yield to maturity at September 30, 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 securities purchased on open futures contracts and swap agreements.

IO Interest Only.

MTN Medium Term Note.

REMIC Real Estate Mortgage Investment Conduit.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2014:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		24	$	5,252		Dec-14	$	(2	)
U.S. Treasury Long Bond		4		552		Dec-14		(7	)
Short:
U.S. Treasury 5 yr. Note		4		(473	)	Dec-14		(—	@)
U.S. Treasury 10 yr. Note		5		(623	)	Dec-14		3
U.S. Treasury Ultra Bond		2		(305	)	Dec-14		4
							$	(2	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 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† (unaudited)
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	250		1.00	%	3/20/19	$	5		$	(5	)	$	—	@	BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		250		1.00		12/20/18		(4	)		(1	)		(5	)	BBB
		$	500					$	1		$	(6	)	$	(5	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at September 30, 2014:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.14	%	7/23/17	$	752	$	1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.06		8/21/17		1,700		8
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.18		9/4/17		700		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.17		9/5/17		900		2
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.19		9/10/17		250		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.71		8/21/19		564		4
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.81		9/4/19		200		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.80		9/5/19		271		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.85		9/10/19		73		—	@
									$	19

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

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

@ Value is less than $500.

LIBOR London Interbank Offered Rate.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Agency Fixed Rate Mortgages		32.9	%
Finance		18.9
U.S. Treasury Securities		16.8
Industrials		14.5
Collateralized Mortgage Obligations — Agency Collateral Series		6.9
Short-Term Investments		5.5
Other**		4.5
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 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 $7,205,000 with net unrealized depreciation of approximately $2,000. Does not include open swap agreements with net unrealized appreciation of approximately $13,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Core Fixed Income Portfolio

Statement of Assets and Liabilities	September 30, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $13,588)	$	14,000
Investment in Security of Affiliated Issuer, at Value (Cost $1,889)		1,889
Total Investments in Securities, at Value (Cost $15,477)		15,889
Cash		60
Receivable for Investments Sold		104
Interest Receivable		86
Due from Adviser		38
Premium Paid on Open Swap Agreements		5
Receivable for Variation Margin on Swap Agreements		1
Receivable from Affiliate		—	@
Receivable for Variation Margin on Futures Contracts		—	@
Other Assets		24
Total Assets		16,207
Liabilities:
Collateral on Securities Loaned, at Value		1,528
Payable for Investments Purchased		50
Payable for Sub Transfer Agency Fees — Class I		45
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Professional Fees		25
Payable for Custodian Fees		7
Unrealized Depreciation on Swap Agreements		6
Payable for Trustees' Fees and Expenses		6
Premium Received on Open Swap Agreements		4
Payable for Transfer Agent Fees — Class I		1
Payable for Transfer Agent Fees — Class A		—	@
Payable for Transfer Agent Fees — Class L		—	@
Payable for Administration Fees		1
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Other Liabilities		31
Total Liabilities		1,704
Net Assets	$	14,503
Net Assets Consist Of:
Paid-in-Capital	$	50,475
Accumulated Undistributed Net Investment Income		356
Accumulated Net Realized Loss		(36,751	)
Unrealized Appreciation (Depreciation) on:
Investments		412
Futures Contracts		(2	)
Swap Agreements		13
Net Assets	$	14,503

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Core Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2014 (000)
CLASS I:
Net Assets	$	14,350
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,406,777
Net Asset Value, Offering and Redemption Price Per Share	$	10.20
CLASS A:
Net Assets	$	143
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		13,957
Net Asset Value, Redemption Price Per Share	$	10.27
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.46
Maximum Offering Price Per Share	$	10.73
CLASS L:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		972
Net Asset Value, Offering and Redemption Price Per Share	$	10.24
⁽¹⁾ Including: Securities on Loan, at Value:	$	1,492

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Core Fixed Income Portfolio

Statement of Operations	Year Ended September 30, 2014 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	1,225
Income from Securities Loaned — Net		7
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		1,233
Expenses:
Advisory Fees (Note B)		140
Professional Fees		139
Shareholder Reporting Fees		68
Sub Transfer Agency Fees — Class I		57
Sub Transfer Agency Fees — Class A		1
Registration Fees		44
Custodian Fees (Note F)		35
Administration Fees (Note C)		30
Pricing Fees		29
Transfer Agency Fees (Note E)		1
Transfer Agency Fees — Class I (Note E)		3
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		2
Trustees' Fees and Expenses		3
Shareholder Services Fees — Class A (Note D)		1
Distribution and Shareholder Services Fees — Class L (Note D)		—	@
Other Expenses		2
Total Expenses		557
Expenses Reimbursed by Adviser (Note B)		(164	)
Waiver of Advisory Fees (Note B)		(140	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(60	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(2	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Net Expenses		187
Net Investment Income		1,046
Realized Gain:
Investments Sold		692
Futures Contracts		104
Swap Agreements		95
Net Realized Gain		891
Change in Unrealized Appreciation (Depreciation):
Investments		436
Futures Contracts		9
Swap Agreements		(300	)
Net Change in Unrealized Appreciation (Depreciation)		145
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		1,036
Net Increase in Net Assets Resulting from Operations	$	2,082

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Core Fixed Income Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2014 (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,046		$	1,357
Net Realized Gain		891			617
Net Change in Unrealized Appreciation (Depreciation)		145			(2,775	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,082			(801	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1,206	)		(1,658	)
*Class A:**
Net Investment Income		(12	)		(10	)
*Class H:**
Net Investment Income		—			(3	)**
Class L:
Net Investment Income		(—	@)		(—	@)
Total Distributions		(1,218	)		(1,671	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		11,931			2,259
Distributions Reinvested		1,125			1,656
Redeemed		(48,180	)		(9,860	)
*Class A:**
Subscribed		100			223
Distributions Reinvested		12			10
Conversion from Class H		—			69
Redeemed		(497	)		(96	)
*Class H:**
Subscribed		—			275	**
Distributions Reinvested		—			2	**
Conversion to Class A		—			(69	)**
Redeemed		—			(212	)**
Class L:
Subscribed		33			—
Distributions Reinvested		—	@		—
Redeemed		(33	)		—
Net Decrease in Net Assets Resulting from Capital Share Transactions		(35,509	)		(5,743	)
Total Decrease in Net Assets		(34,645	)		(8,215	)
Net Assets:
Beginning of Period		49,148			57,363
End of Period (Including Accumulated Undistributed Net Investment Income of $356 and $558)	$	14,503		$	49,148
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1,176			220
Shares Issued on Distributions Reinvested		113			161
Shares Redeemed		(4,736	)		(957	)
Net Decrease in Class I Shares Outstanding		(3,447	)		(576	)
*Class A:**
Shares Subscribed		11			21
Shares Issued on Distributions Reinvested		1			1
Conversion from Class H		—			7
Shares Redeemed		(49	)		(9	)
Net Increase (Decrease) in Class A Shares Outstanding		(37	)		20
*Class H:**
Shares Subscribed		—			26	**
Shares Issued on Distributions Reinvested		—			—	@@**
Conversion to Class A		—			(7	)**
Shares Redeemed		—			(20	)**
Net Increase (Decrease) in Class H Shares Outstanding		—			(1	)
Class L:
Shares Subscribed		3			—
Shares Issued on Distributions Reinvested		—	@@		—
Shares Redeemed		(3	)		—
Net Increase (Decrease) in Class L Shares Outstanding		(—	@@)		—

@ Amount is less than $500.

@@ Amount is less than 500 shares.

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Core Fixed Income Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	10.02		$	10.50		$	10.08		$	9.96		$	9.49
Income (Loss) from Investment Operations:
Net Investment Income†		0.28			0.26			0.29			0.34			0.34
Net Realized and Unrealized Gain (Loss)		0.21			(0.42	)		0.48			0.08			0.45
Total from Investment Operations		0.49			(0.16	)		0.77			0.42			0.79
Distributions from and/or in Excess of:
Net Investment Income		(0.31	)		(0.32	)		(0.35	)		(0.30	)		(0.32	)
Net Asset Value, End of Period	$	10.20		$	10.02		$	10.50		$	10.08		$	9.96
Total Return++		4.97	%		(1.57	)%		7.83	%		4.34	%		8.57	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	14,350		$	48,620		$	57,013		$	63,866		$	75,651
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.49	%+††		0.49	%+		0.49	%+		0.50	%+††		0.50	%+††
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.81	%+††		2.57	%+		2.80	%+		3.43	%+††		3.58	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%		0.00	%§		0.00	%§
Portfolio Turnover Rate		172	%		187	%		216	%		234	%		261	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.47	%††		1.16	%		0.97	%		0.99	%††		0.67	%+††
Net Investment Income to Average Net Assets		1.83	%††		1.90	%		2.32	%		2.94	%††		3.41	%+††

† 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%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Core Fixed Income Portfolio

	Class A*
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	10.07		$	10.56		$	10.14		$	10.01		$	9.53
Income (Loss) from Investment Operations:
Net Investment Income†		0.25			0.24			0.23			0.31			0.32
Net Realized and Unrealized Gain (Loss)		0.21			(0.43	)		0.52			0.09			0.46
Total from Investment Operations		0.46			(0.19	)		0.75			0.40			0.78
Distributions from and/or in Excess of:
Net Investment Income		(0.26	)		(0.30	)		(0.33	)		(0.27	)		(0.30	)
Net Asset Value, End of Period	$	10.27		$	10.07		$	10.56		$	10.14		$	10.01
Total Return++		4.61	%		(1.89	)%		7.55	%		4.11	%		8.47	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	143		$	518		$	330		$	44		$	209
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.84	%+††		0.75	%+^		0.74	%+		0.75	%+††		0.75	%+††
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.46	%+††		2.32	%+^		2.25	%+		3.18	%+††		3.33	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%		0.00	%§		0.00	%§
Portfolio Turnover Rate		172	%		187	%		216	%		234	%		261	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.15	%††		1.44	%		1.33	%		1.24	%††		0.92	%+††
Net Investment Income to Average Net Assets		1.15	%††		1.63	%		1.66	%		2.69	%††		3.16	%+††

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

† 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.

†† 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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Core Fixed Income Portfolio

	Class L
	Year Ended September 30,						Period from April 27, 2012^ to
Selected Per Share Data and Ratios	2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	10.07		$	10.55		$	10.29
Income (Loss) from Investment Operations:
Net Investment Income†		0.22			0.27			0.06
Net Realized and Unrealized Gain (Loss)		0.21			(0.48	)		0.27
Total from Investment Operations		0.43			(0.21	)		0.33
Distributions from and/or in Excess of:
Net Investment Income		(0.26	)		(0.27	)		(0.07	)
Net Asset Value, End of Period	$	10.24		$	10.07		$	10.55
Total Return++		4.34	%		(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⁾		2.21	%+††		2.41	%+^^		1.45	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%*
Portfolio Turnover Rate		172	%		187	%		216	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		14.10	%††		2.21	%		1.58	%*
Net Investment Income (Loss) to Average Net Assets		(10.80	)%††		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.

†† 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.
19

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements

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"). The Fund applies investment company accounting and reporting guidance. 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.

Effective September 9, 2013, Class P and Class H shares were renamed Class A 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) 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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 Measurement" ("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 September 30, 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	$	—		$	4,741		$	—	$	4,741
Asset-Backed Securities		—			122			—		122
Collateralized Mortgage Obligations — Agency Collateral Series		—			995			—		995
Corporate Bonds		—			5,145			—		5,145
Sovereign		—			200			—		200
U.S. Treasury Securities		—			2,428			—		2,428
Total Fixed Income Securities		—			13,631			—		13,631
Short-Term Investments
Investment Company		1,889			—			—		1,889
Repurchase Agreement		—			282			—		282
U.S. Treasury Securities		—			87			—		87
Total Short-Term Investments		1,889			369			—		2,258
Futures Contracts		7			—			—		7
Interest Rate Swap Agreements		—			19			—		19
Total Assets		1,896			14,019			—		15,915
Liabilities:
Futures Contracts		(9	)		—			—		(9	)
Credit Default Swap Agreements		—			(6	)		—		(6	)
Total Liabilities		(9	)		(6	)		—		(15	)
Total	$	1,887		$	14,013		$	—	$	15,900

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

3. Repurchase Agreements: The Portfolio may enter into repurchase agreements under which the Portfolio lends cash and takes possession of securities with an agreement that the counterparty will repurchase such securities. In connection with transactions in repurchase agreements, a bank as custodian for the Portfolio takes possession of the underlying securities which are held as collateral, with a market value at least equal to the amount of the repurchase transaction, including principal and accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to determine that the value of the collateral does not decrease below the repurchase price plus accrued interest as earned. If such a decrease occurs, additional collateral will be requested and, when received, will be added to the account to maintain full collateralization. In the event of default on the obligation to repurchase, the Portfolio has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral proceeds may be subject to cost and delays. The Portfolio, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into repurchase agreements.

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 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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

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, respectively, in the Statement of Assets and Liabilities.

FASB ASC 815, "Derivatives and Hedging" ("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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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 September 30, 2014.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(a)

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

(a)

Total

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

)(a)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Credit Risk

)

Total

(15

)

(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 year ended September 30, 2014 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	104
Credit Risk	Swap Agreements		(22	)
Interest Rate Risk	Swap Agreements		117
	Total	$	199
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	9
Credit Risk	Swap Agreements		6
Interest Rate Risk	Swap Agreements		(306	)
	Total	$	(291	)

At September 30, 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	$	—	$	(6	)

(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 contract counterparties for certain OTC derivatives 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 Agreement, the Portfolio typically may offset with the counterparty certain OTC derivative financial instruments' 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 potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, 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 and may be a feature in certain Master Agreements. In the event the Portfolio exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Portfolio's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2014.

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	$	6	$	—	$	—	$	6

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

For the year ended September 30, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	10,437,000
Swap Agreements:
Average monthly notional amount	$	6,923,000

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 September 30, 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)
$	1,492	(d)	$	—	$	(1,492	)(e)(f)	$	0

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

(e) The Portfolio received cash collateral of approximately $1,528,000, of which approximately $1,468,000 was subsequently invested in a Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of September 30, 2014, there was uninvested cash of approximately $60,000, which is not reflected in the Portfolio of Investments.

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), 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 year ended September 30, 2014, approximately $140,000 of advisory fees were waived and approximately $228,000 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.

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

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

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $6,195,000 and $24,240,000, respectively. For the year ended September 30, 2014, purchases and sales of long-term U.S. Government securities were approximately $57,036,000 and $73,447,000, 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 year ended September 30, 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 year ended September 30, 2014 is as follows:

Value September 30, 2013 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2014 (000)
$	6,159			$	16,163			$	20,433			$	1			$	1,889

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the net asset value of the Portfolio.

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

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, 2014 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 2014 and 2013 was as follows:

2014 Distributions Paid From: Ordinary Income (000)				2013 Distributions Paid From: Ordinary Income (000)
$	1,218			$	1,671

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, 2014:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in-Capital (000)
$	(30	)		$	30			$	—

At September 30, 2014, 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)
$	351			$	—

At September 30, 2014, the aggregate cost for Federal income tax purposes is approximately $15,477,000. The aggregate gross unrealized appreciation is approximately $517,000 and the aggregate gross unrealized depreciation is approximately $105,000 resulting in net unrealized appreciation of approximately $412,000.

At September 30, 2014, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	33,429	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, 2014, the Portfolio utilized capital loss carryforwards for U.S. Federal income tax purposes of approximately $926,000.

I. Other (unaudited): At September 30, 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 11% and 17%, for Class I and Class A shares, respectively.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Core Fixed Income Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Core Fixed Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Portfolio's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2014, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Core Fixed Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 26, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 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 6p.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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (69)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (since February 2007); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996); and on the Joint Staff as Director of Political Military Affairs (June 1992-July 1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mérite by the French Government; elected to the National Academy of Engineering (2009).

Director of BP p.l.c.; Director of Naval and Nuclear Technologies LLP; Director of the Armed Services YMCA of the USA and the U.S. Naval Submarine League; Director of the American Shipbuilding Suppliers Association; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a member of the CNA Military Advisory Board; Chairman of the Charity, J Street Cup Golf Charity, Director Fairhaven United Methodist Church.

Michael Bozic (73)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
April
1994

Private investor and a member of the advisory board of American Road Group LLC (retail) (since June 2000); Chairperson of the Compliance and Insurance Committee (since October 2006); Director or Trustee of various Morgan Stanley Funds (since April 1994); formerly, Chairperson of the Insurance Committee (July 2006-September 2006); Vice Chairman of Kmart Corporation (December 1998-October 2000), Chairman and Chief Executive Officer of Levitz Furniture Corporation (November 1995-November 1998) and President and Chief Executive Officer of Hills Department Stores (May 1991-July 1995); variously Chairman, Chief Executive Officer, President and Chief Operating Officer (1987-1991) of the Sears Merchandise Group of Sears, Roebuck & Co.

100

Trustee and member of the Hillsdale College Board of Trustees.

Kathleen A. Dennis (61)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); Chairperson of the Money Market and Alternatives Sub-Committee of the Investment Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006).

Director of various non-profit organizations.

Dr. Manuel H. Johnson (65)
c/o Johnson Smick
International, Inc.
220 I Street, N.E.
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Investment Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly, Chairperson of the Audit Committee (July 1991-September 2006), Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury.

100

Director of NVR, Inc. (home construction).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Joseph J. Kearns (72)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

President, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006) and Chairperson of the Audit Committee of various Morgan Stanley Funds (since August 1994); CFO of the J. Paul Getty Trust.

101

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Michael F. Klein (55)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Managing Director, Aetos Capital, LLC (since March 2000) and Co-President, Aetos Alternatives Management, LLC (since January 2004); and Co-Chief Executive Officer of Aetos Capital LLC (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management, President, various Morgan Stanley Funds (June 1998-March 2000) and Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999).

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (78)
522 Fifth Avenue
New York, NY 10036

Chairperson
of the
Board and
Trustee

Chairperson of
the Boards since
July 2006 and
Trustee since
July 1991

Chairperson of the Boards of various Morgan Stanley Funds (since July 2006); Chairperson of the Closed-End Fund Committee (since June 2012) and Director or Trustee of various Morgan Stanley Funds (since July 1991); formerly, Chairperson of the Insurance Committee (until July 2006), General Partner, Triumph Capital, L.P. (private investment partnership) (1988-2013).

100

None.

W. Allen Reed (67)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Chairperson of the Equity Sub-Committee of the Investment Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, President and CEO of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005).

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (82)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

101

Through December 31, 2012, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Position(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (66)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

Formerly, Director of AXA Financial, Inc. and AXA Equitable Life Insurance Company (2002-2011) and Director of AXA MONY Life Insurance Company and AXA MONY Life Insurance Company of America (2004-2011).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

** The Fund Complex includes (as of December 31, 2013) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (51)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and various money market funds (since May 2014) in the Fund Complex, Managing Director of the Adviser; Head of Product (since 2006) and Global Portfolio Analysis and Reporting (since 2012) For MSIM's Long Only business.

Stefanie V. Chang Yu (47)
522 Fifth Avenue
New York, NY 10036

Chief Compliance Officer

Since
December
1997

Managing Director of the Adviser and various entities affiliated with the Adviser; Chief Compliance Officer of various Morgan Stanley Funds and the Adviser (since January 2014); formerly Vice President of various Morgan Stanley Funds (December 1997-January 2014).

Joseph C. Benedetti (49)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Managing Director of the Adviser and various entities affiliated with the Adviser; Vice President of various Morgan Stanley Funds (since January 2014); formerly, Assistant Secretary of various Morgan Stanley Funds (October 2004-January 2014).

Francis J. Smith (49)
522 Fifth Avenue
New York, NY 10036

Treasurer and Principal Financial
Officer

Treasurer since July 2003 and Principal Financial Officer since September 2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (47)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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 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.

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

IFTFXDINCANN
1044156 EXP 11.28.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Annual Report

September 30, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Advisory Agreement Approval					4
Investment Overview					6
Portfolio of Investments					9
Statement of Assets and Liabilities					18
Statement of Operations					20
Statements of Changes in Net Assets					21
Financial Highlights					22
Notes to Financial Statements					25
Report of Independent Registered Public Accounting Firm					36
U.S. Privacy Policy					37
Trustee and Officer Information					40

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

October 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Expense Example (unaudited)

Core Plus Fixed Income Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2014 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/14		Actual Ending Account Value 9/30/14		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	$	1,034.30	$	1,022.06	$	3.06	$	3.04		0.60	%
Core Plus Fixed Income Portfolio Class A		1,000.00		1,031.50		1,020.31		4.84		4.81		0.95
Core Plus Fixed Income Portfolio Class L		1,000.00		1,031.20		1,019.05		6.11		6.07		1.20

** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2013, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one- and three-year periods but below its peer group average for the five-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that the Portfolio's management fee and total expense ratio were higher than its peer group average. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; and (ii) management fee and total expense ratio were acceptable.

Economies of Scale

The Board considered the size and growth prospects of the Portfolio and how that relates to the Portfolio's total expense ratio and particularly the Portfolio's management fee rate, which includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Portfolio and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and potential economies of scale of the Portfolio supports its decision to approve the Management Agreement.

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

The Board considered other benefits to the Adviser and its affiliates derived from their relationship with the Fund and other funds advised by the Adviser. These benefits may include, among other things, research received by the Adviser generated from commission dollars spent on funds' portfolio trading, and fees for trading, distribution and/or shareholder servicing. The Board reviewed with the Adviser each of these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.

Resources of the Adviser and Historical Relationship Between the Portfolio and the Adviser

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited)

Core Plus Fixed Income Portfolio

The Core Plus Fixed Income Portfolio seeks above-average total return over a market cycle of three to five years.

Performance

For the fiscal year ended September 30, 2014, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 7.82%, net of fees. The Portfolio's Class I shares outperformed against the Portfolio's benchmark, the Barclays Capital U.S. Aggregate Index (the "Index"), which returned 3.96%.

Factors Affecting Performance

• After rallying for most of the period, risky assets paused late in the period as investors took stock of the changing fundamental backdrop and re-evaluated whether market risk premia are sufficient to compensate for these risks. In the U.S., investors increased their focus on when the Federal Reserve (Fed) will raise rates, potentially increasing the volatility in financial markets. In contrast, investors in Europe focused on the weakening fundamental backdrop as economic growth continued to decelerate and inflation expectations continued their downward path, thereby putting pressure on the European Central Bank (ECB) to take additional unconventional action. On a global basis, expectations for growth continued to fall, and this has been reflected in weaker commodity prices and the strengthening U.S. dollar. These concerns, combined with the growing geopolitical tension in Syria and Iraq, contributed to an uncertain backdrop for investing.

• In the U.S., the Fed has maintained a view that rates will remain low for a "considerable time." The ECB eased policy rates and announced outright asset purchases of asset-backed securities (ABS) and covered bonds. The Bank of Japan continued to contemplate ways to ease financial conditions. Both Australian and New Zealand central banks have also turned slightly more dovish, meaning that they are more favorable toward maintaining low interest rates to foster economic growth. As long as the inflation backdrop remains steady, the risk of a sharp rise in interest rates appears minimal.

• The Fed is expected to complete the tapering of its mortgage-backed security (MBS) purchase program by October of this year. During the first half of 2014, the Fed purchased as much as 75% of net

MBS issuance.⁽ⁱ⁾ The Fed's share declined to 30% to 50% in the third quarter, as MBS gross issuance increased in the summer months and the Fed continued to reduce the size of its purchases. Even after the bond buying program ends, the Fed will continue to reinvest MBS paydowns, which is expected to reduce its share of net issuance to 25% to 30%.

⁽ⁱ⁾ Fed MBS data from J.P. Morgan Global Structured Financial Research and the Federal Reserve.

⁽ⁱⁱ⁾ Data from Bloomberg.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

Core Plus Fixed Income Portfolio

• The Treasury yield curve flattened during the period, with two- and five-year yields rising between 20 and 30 basis points, and 10- and 30-year yields falling between 20 and 60 basis points.

• The Portfolio's positioning in the corporate sector was one of the main drivers of outperformance. In particular, an overweight in financials and allocations to high yield bonds and convertible securities contributed significantly to returns.

• The Portfolio's allocation to non-agency mortgage securities was another main contributor to relative returns, as the sector performed well.

• A small overweight to emerging market debt added slightly to returns, as that sector recovered from the sell-off in the summer of 2013.

• A duration that was lower than that of the Index also contributed positively to returns.

• Although it detracted toward the end of the period, positioning in agency MBS had a near neutral impact on relative performance overall.

Management Strategies

• The Portfolio also had allocations to riskier segments of the market such as high-yield corporates, non-agency mortgages and convertible bonds. These sectors performed very well during the period and we took advantage of the recent sell-off to selectively increase exposure to some of these sectors.

• With regard to interest rate strategy, the Portfolio is positioned to be underweight duration at the intermediate part of the yield curve.

• We continue being overweight spread product (non-government bonds) as we believe the yield advantage could provide attractive returns over the near term.

* Minimum Investment

Performance Compared to the Barclays Capital U.S. Aggregate Index⁽¹⁾ and the Lipper Core Plus Bond Funds Index⁽²⁾

	Period Ended September 30, 2014 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁷⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		7.82	%		6.27	%		3.78	%		7.45	%
Barclays Capital U.S. Aggregate Index		3.96			4.12			4.62			7.50
Lipper Core Plus Bond Funds Index		5.15			5.73			5.38			—
Portfolio — Class A Shares w/o sales charges⁽⁵⁾		7.35			5.97			3.50			4.79
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁵⁾		2.79			5.05			3.05			4.54
Barclays Capital U.S. Aggregate Index		3.96			4.12			4.62			5.65
Lipper Core Plus Bond Funds Index		5.15			5.73			5.38			—
Portfolio — Class L Shares w/o sales charges⁽⁶⁾		7.19			—			—			4.41
Barclays Capital U.S. Aggregate Index		3.96			—			—			1.99
Lipper Core Plus Bond Funds Index		5.15			—			—			3.65

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

Core Plus Fixed Income Portfolio

returns and principal value will fluctuate so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Performance of share classes will vary due to differences in sales charges and expenses.

⁽¹⁾ The Barclays Capital U.S. Aggregate Index tracks the performance of U.S. government agency and Treasury securities, investment-grade corporate debt securities, agency mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Core Plus Bond Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Core Plus Bond Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Core Plus Bond Funds classification.

⁽⁴⁾ Commenced operations on November 14, 1984.

⁽⁵⁾ Commenced operations on November 7, 1996.

⁽⁶⁾ Commenced operations on April 27, 2012.

⁽⁷⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date or initial offering of the respective share class of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments

Core Plus Fixed Income Portfolio

		Face Amount (000)			Value (000)
Fixed Income Securities (95.8%)
Agency Adjustable Rate Mortgage (0.6%)
Federal National Mortgage Association,
Conventional Pool:
2.33%, 5/1/35		$	1,171		$	1,252
Agency Fixed Rate Mortgages (23.5%)
Federal Home Loan Mortgage Corporation,
Conventional Pools:
12.00%, 2/1/15			—	@		—	@
Gold Pools:
5.00%, 10/1/35			108			119
6.00%, 10/1/36 - 8/1/38			612			693
6.50%, 3/1/16 - 8/1/33			283			320
7.00%, 6/1/28 - 11/1/31			77			83
Federal National Mortgage Association,
Conventional Pools:
3.50%, 12/1/42			3,325			3,396
4.00%, 11/1/41 - 7/1/43			6,188			6,534
5.00%, 3/1/41			528			585
5.50%, 6/1/35 - 5/1/41			2,300			2,579
6.50%, 11/1/23 - 1/1/34			2,475			2,818
7.00%, 11/1/17 - 1/1/34			426			463
8.50%, 1/1/15			—	@		—	@
9.50%, 4/1/30			388			460
12.00%, 11/1/15			5			5
12.50%, 9/1/15			—	@		—	@
October TBA:
3.00%, 10/1/29 (a)			1,406			1,448
3.50%, 10/1/29 - 10/1/44 (a)			1,944			2,027
4.00%, 10/1/44 (a)			4,877			5,140
4.50%, 10/1/44 (a)			5,951			6,422
5.00%, 10/1/44 (a)			3,152			3,478
Government National Mortgage Association,
October TBA:
3.50%, 10/20/44 (a)			4,124			4,261
4.50%, 10/20/44 (a)			2,450			2,657
Various Pools:
3.50%, 12/15/43			863			898
4.00%, 8/20/41 - 3/20/43			1,518			1,612
						45,998
Asset-Backed Securities (0.8%)
Contimortgage Home Equity Trust
8.10%, 8/15/25	��		32			31
CVS Pass-Through Trust
6.04%, 12/10/28			439			509
Mid-State Trust IV
8.33%, 4/1/30			18			19
U-Haul S Fleet LLC
4.90%, 10/25/23 (b)			987			1,021
						1,580

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligations — Agency Collateral Series (3.7%)
Federal Home Loan Mortgage Corporation,
IO
0.81%, 1/25/21 (c)	$	9,778	$	297
IO REMIC
5.85%, 11/15/43 (c)		3,046		477
5.90%, 4/15/39 (c)		2,687		484
IO STRIPS
7.50%, 12/1/29		60		12
8.00%, 1/1/28		102		29
PAC REMIC
9.50%, 4/15/20		1		1
REMIC
3.50%, 12/15/42		815		806
Federal National Mortgage Association,
IO
6.24%, 9/25/20 (c)		4,937		1,178
IO PAC REMIC
8.00%, 9/18/27		243		45
IO REMIC
6.00%, 7/25/33		234		46
6.45%, 9/25/38 (c)		2,092		344
IO STRIPS
6.50%, 9/25/29 - 12/25/29		1,039		239
8.00%, 4/25/24		276		66
8.50%, 10/25/25		86		22
9.00%, 11/25/26		80		18
REMIC
7.00%, 9/25/32		456		522
9.29%, 10/25/41 (c)(d)		342		346
63.62%, 9/25/20 (c)(d)		4		7
Government National Mortgage Association,
IO
3.50%, 5/20/43		2,365		544
5.00%, 2/16/41		589		106
5.90%, 11/16/40 (c)		3,487		649
5.95%, 7/16/33 (c)		5,264		709
6.00%, 6/20/43 (c)		2,282		378
				7,325
Commercial Mortgage-Backed Securities (6.7%)
COMM Mortgage Trust,
5.22%, 8/10/46 (b)(c)		800		788
IO
0.46%, 7/10/45 (c)		16,312		248
1.47%, 7/15/47 (c)		4,275		349
Commercial Mortgage Pass-Through Certificates,
4.76%, 2/10/47 (b)(c)		575		541
IO
1.04%, 10/10/47 (c)		4,752		297
Commercial Mortgage Trust
5.48%, 3/10/39		450		477
DBUBS Mortgage Trust
5.62%, 7/10/44 (b)(c)		325		361

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (cont'd)
FREMF Mortgage Trust,
3.65%, 10/25/46 (b)(c)	$	825	$	780
4.16%, 8/25/47 (b)(c)		278		275
4.79%, 6/25/47 (b)(c)		219		224
GS Mortgage Securities Trust
4.93%, 8/10/46 (b)(c)		500		480
JP Morgan Chase Commercial Mortgage Securities Trust,
4.72%, 7/15/47 (b)(c)		1,135		1,042
5.46%, 12/12/43		600		628
IO
0.73%, 4/15/46 (c)		6,956		296
1.34%, 7/15/47 (c)		10,753		757
JPMBB Commercial Mortgage Securities Trust,
4.83%, 4/15/47 (b)(c)		775		718
IO
1.29%, 8/15/47		4,590		369
LB-UBS Commercial Mortgage Trust
6.46%, 9/15/45 (c)		550		578
NLY Commercial Mortgage Trust
2.75%, 11/15/30 (b)(c)		218		220
Wells Fargo Commercial Mortgage Trust
3.94%, 8/15/50 (b)		945		802
WF-RBS Commercial Mortgage Trust,
3.43%, 6/15/45		966		989
3.71%, 3/15/45 (c)		140		140
3.99%, 5/15/47 (b)		580		499
4.28%, 5/15/45 (b)(c)		425		398
5.15%, 9/15/46 (b)(c)		805		788
				13,044
Corporate Bonds (33.4%)
Finance (14.6%)
Abbey National Treasury Services PLC
3.05%, 8/23/18		490		508
ABN Amro Bank N.V.
4.25%, 2/2/17 (b)		600		639
ACE INA Holdings, Inc.
3.35%, 5/15/24		400		400
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust
3.75%, 5/15/19 (b)		380		369
Alexandria Real Estate Equities, Inc.
4.60%, 4/1/22		275		289
American Campus Communities Operating Partnership LP
3.75%, 4/15/23		250		247
American International Group, Inc.,
4.88%, 6/1/22		275		303
6.40%, 12/15/20		146		174
American Realty Capital Properties, Inc.
3.00%, 8/1/18		525		522
Banco de Credito del Peru
6.13%, 4/24/27 (b)(c)(e)		400		429

	Face Amount (000)		Value (000)
Bank of America Corp.,
4.00%, 4/1/24	$	220	$	223
4.20%, 8/26/24		225		223
5.00%, 1/21/44		180		191
MTN
3.30%, 1/11/23		660		644
Bank of New York Mellon Corp. (The)
3.65%, 2/4/24		400		410
Barclays Bank PLC
3.75%, 5/15/24		475		473
BNP Paribas SA
5.00%, 1/15/21		175		195
Boston Properties LP
3.80%, 2/1/24		175		176
BPCE SA
5.15%, 7/21/24 (b)		600		620
Brookfield Asset Management, Inc.
5.80%, 4/25/17		235		258
Capital One Bank, USA NA
3.38%, 2/15/23		366		359
Capital One Financial Corp.
2.45%, 4/24/19		150		150
Citigroup, Inc.,
3.75%, 6/16/24		675		674
4.05%, 7/30/22		165		167
6.68%, 9/13/43		120		148
8.13%, 7/15/39		175		260
CNA Financial Corp.
5.75%, 8/15/21		315		360
Commonwealth Bank of Australia
5.00%, 3/19/20 (b)		300		337
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
3.95%, 11/9/22		650		654
Credit Agricole SA,
3.88%, 4/15/24 (b)		500		503
7.88%, 1/23/24 (b)(c)(f)		200		203
Credit Suisse AG
6.50%, 8/8/23 (b)		425		463
DBS Group Holdings Ltd.
2.25%, 7/16/19 (b)(e)		525		520
Discover Bank
7.00%, 4/15/20		250		296
General Electric Capital Corp.,
MTN
5.88%, 1/14/38		235		284
Series G
6.00%, 8/7/19		694		810
Genworth Holdings, Inc.
7.20%, 2/15/21 (e)		375		442
Goldman Sachs Group, Inc. (The),
3.63%, 1/22/23		440		438
6.75%, 10/1/37		490		586

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Goodman Funding Pty Ltd.
6.38%, 4/15/21 (b)	$	425	$	496
Hartford Financial Services Group, Inc.
5.50%, 3/30/20		645		729
HBOS PLC,
Series G
6.75%, 5/21/18 (b)		813		921
Healthcare Trust of America Holdings LP
3.70%, 4/15/23		350		342
HSBC Finance Corp.
6.68%, 1/15/21		420		493
HSBC Holdings PLC,
4.25%, 3/14/24		200		203
6.38%, 9/17/24 (c)(e)(f)		200		200
HSBC USA, Inc.
3.50%, 6/23/24		225		226
ING Bank N.V.
5.80%, 9/25/23 (b)		520		574
Intesa Sanpaolo SpA
5.25%, 1/12/24		410		438
Jefferies Finance LLC/JFIN Co-Issuer Corp.
7.38%, 4/1/20 (b)		380		390
JPMorgan Chase & Co.,
3.20%, 1/25/23		690		674
3.88%, 9/10/24		300		294
4.63%, 5/10/21		380		414
Liberty Mutual Group, Inc.
4.85%, 8/1/44 (b)		150		150
Lloyds Bank PLC
6.50%, 9/14/20 (b)(e)		400		466
Macquarie Bank Ltd.
6.63%, 4/7/21 (b)(e)		490		559
Nationwide Building Society
6.25%, 2/25/20 (b)		645		754
Nationwide Financial Services, Inc.
5.38%, 3/25/21 (b)		450		507
Platinum Underwriters Finance, Inc.,
Series B
7.50%, 6/1/17		791		895
PNC Financial Services Group, Inc. (The)
3.90%, 4/29/24		210		209
Principal Financial Group, Inc.
1.85%, 11/15/17		575		576
QBE Capital Funding III Ltd.
7.25%, 5/24/41 (b)(c)		550		600
Realty Income Corp.
3.25%, 10/15/22		400		392
Standard Chartered PLC
3.95%, 1/11/23 (b)(e)		310		302
Swedbank AB
2.38%, 2/27/19 (b)		340		341

	Face Amount (000)		Value (000)
Synchrony Financial
4.25%, 8/15/24	$	300	$	300
UnitedHealth Group, Inc.
2.88%, 3/15/23		800		782
Wells Fargo & Co.,
4.13%, 8/15/23		170		176
Series M
3.45%, 2/13/23		320		315
				28,665
Industrials (16.7%)
21st Century Fox America, Inc.
4.75%, 9/15/44 (b)		325		328
Albea Beauty Holdings SA
8.38%, 11/1/19 (b)		600		643
Altria Group, Inc.
5.38%, 1/31/44		285		305
Amgen, Inc.
5.15%, 11/15/41		198		210
Anadarko Petroleum Corp.
6.45%, 9/15/36		250		306
Anheuser-Busch InBev Finance, Inc.
3.70%, 2/1/24 (e)		475		479
Apple, Inc.,
2.40%, 5/3/23		295		279
4.45%, 5/6/44		300		307
AT&T, Inc.
6.30%, 1/15/38		350		415
Baidu, Inc.
2.75%, 6/9/19		475		473
Barrick Gold Corp.
4.10%, 5/1/23 (e)		255		245
BHP Billiton Finance USA Ltd.
3.85%, 9/30/23		370		385
Bombardier, Inc.
6.13%, 1/15/23 (b)(e)		450		453
BP Capital Markets PLC
3.25%, 5/6/22		600		596
Cardtronics, Inc.
5.13%, 8/1/22 (b)		375		371
Caterpillar, Inc.
3.40%, 5/15/24 (e)		600		606
CC Holdings GS V LLC/Crown Castle GS III Corp.
3.85%, 4/15/23		325		320
CEVA Group PLC
7.00%, 3/1/21 (b)(e)		370		372
Chrysler Group LLC/CG Co-Issuer, Inc.
8.00%, 6/15/19		375		400
CNOOC Finance 2013 Ltd.
3.00%, 5/9/23		540		503
Coca-Cola Co.
3.20%, 11/1/23		375		377
Continental Resources, Inc.
4.90%, 6/1/44 (e)		475		465

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
CSC Holdings LLC
5.25%, 6/1/24 (b)	$	450	$	433
Devon Energy Corp.
3.25%, 5/15/22		325		323
DirecTV Holdings LLC/DirecTV Financing Co., Inc.
3.80%, 3/15/22		175		178
eBay, Inc.
2.88%, 8/1/21 (e)		475		466
Eldorado Gold Corp.
6.13%, 12/15/20 (b)		380		379
EMC Corp.
3.38%, 6/1/23		210		206
Ensco PLC
5.75%, 10/1/44		225		229
Exide Technologies
8.63%, 2/1/18 (g)(h)		219		59
Experian Finance PLC
2.38%, 6/15/17 (b)		635		646
Freeport-McMoRan, Inc.
3.88%, 3/15/23 (e)		220		217
General Motors Financial Co., Inc.
4.38%, 9/25/21 (e)		400		410
Gilead Sciences, Inc.
4.80%, 4/1/44		300		317
Glencore Funding LLC
4.13%, 5/30/23 (b)(e)		390		387
Goldcorp, Inc.
3.70%, 3/15/23		400		393
Harley-Davidson Funding Corp.
6.80%, 6/15/18 (b)		630		736
HCA, Inc.
4.75%, 5/1/23 (e)		445		436
Heathrow Funding Ltd.
4.88%, 7/15/21 (b)(e)		525		580
Hewlett-Packard Co.,
3.75%, 12/1/20		275		285
4.65%, 12/9/21		155		168
Home Depot, Inc.
5.88%, 12/16/36		400		494
Illumina, Inc.
0.00%, 6/15/19 (b)		328		338
Intel Corp.,
2.70%, 12/15/22		400		390
2.95%, 12/15/35		356		454
Johnson Controls, Inc.,
3.63%, 7/2/24		95		94
4.95%, 7/2/64		175		172
Liberty Media Corp.
1.38%, 10/15/23 (b)(e)		341		335
McKesson Corp.
4.88%, 3/15/44		220		227

	Face Amount (000)		Value (000)
MDC Partners, Inc.
6.75%, 4/1/20 (b)	$	420	$	435
Medtronic, Inc.
3.63%, 3/15/24		370		378
Motorola Solutions, Inc.
4.00%, 9/1/24		300		293
NBC Universal Media LLC,
2.88%, 1/15/23		250		246
5.95%, 4/1/41		150		184
NetApp, Inc.
2.00%, 12/15/17		200		201
Novartis Capital Corp.
3.40%, 5/6/24		570		580
Nuance Communications, Inc.
2.75%, 11/1/31 (e)		286		284
NVIDIA Corp.
1.00%, 12/1/18 (b)		550		605
Omega Healthcare Investors, Inc.
4.95%, 4/1/24 (b)		225		230
ON Semiconductor Corp.,
Series B
2.63%, 12/15/26 (e)		290		327
Ooredoo International Finance Ltd.
3.25%, 2/21/23 (b)		450		428
Packaging Corp. of America
4.50%, 11/1/23		270		286
PepsiCo, Inc.
3.60%, 3/1/24 (e)		475		488
Philip Morris International, Inc.
2.50%, 8/22/22		495		474
QVC, Inc.
4.38%, 3/15/23		400		400
Rowan Cos., Inc.
5.85%, 1/15/44 (e)		175		173
RR Donnelley & Sons Co.
7.88%, 3/15/21		345		380
SanDisk Corp.
0.50%, 10/15/20 (b)		375		451
Sinopec Group Overseas Development 2012 Ltd.
3.90%, 5/17/22 (b)(e)		500		504
SK Telecom Co., Ltd.
2.13%, 5/1/18 (b)		200		199
Spectra Energy Capital LLC
3.30%, 3/15/23		475		454
Target Corp.
3.50%, 7/1/24		325		326
Tiffany & Co.
4.90%, 10/1/44 (b)		100		100
Time Warner Cable, Inc.
4.50%, 9/15/42 (e)		475		471
Transocean, Inc.
6.38%, 12/15/21		275		293

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Tyson Foods, Inc.
3.95%, 8/15/24	$	530	$	532
United Airlines Pass-Through Trust,
Series A
3.75%, 3/3/28		325		329
4.00%, 10/11/27 (e)		675		678
United Rentals North America, Inc.
5.75%, 11/15/24		370		376
United Technologies Corp.
4.50%, 6/1/42		165		173
Verizon Communications, Inc.,
5.01%, 8/21/54 (b)		658		664
6.55%, 9/15/43		657		822
Volkswagen International Finance N.V.
2.38%, 3/22/17 (b)		190		195
Wal-Mart Stores, Inc.
5.25%, 9/1/35		290		336
Wesfarmers Ltd.
2.98%, 5/18/16 (b)		390		403
Yahoo!, Inc.
0.00%, 12/1/18 (b)(e)		550		574
Zimmer Holdings, Inc.
5.75%, 11/30/39		220		258
				32,720
Utilities (2.1%)
Access Midstream Partners LP/ACMP Finance Corp.
4.88%, 5/15/23		475		490
CEZ AS
4.25%, 4/3/22 (b)		210		223
DCP Midstream Operating LP
3.88%, 3/15/23		375		376
Delmarva Power & Light Co.
4.00%, 6/1/42		475		463
EnLink Midstream Partners LP
2.70%, 4/1/19		400		403
Exelon Generation Co., LLC
6.25%, 10/1/39		445		520
Jersey Central Power & Light Co.
4.70%, 4/1/24 (b)		700		744
PPL WEM Holdings Ltd.
3.90%, 5/1/16 (b)		375		390
State Grid Overseas Investment 2013 Ltd.
3.13%, 5/22/23 (b)		540		517
				4,126
				65,511
Mortgages — Other (10.0%)
Banc of America Alternative Loan Trust,
0.80%, 7/25/46 (c)		481		328
5.50%, 10/25/35		2,110		1,970
5.86%, 10/25/36		935		639

	Face Amount (000)		Value (000)
5.91%, 10/25/36 (c)	$	1,630	$	1,112
6.00%, 4/25/36		445		461
Banc of America Funding Trust
0.52%, 8/25/36 (c)		98		84
Chase Mortgage Finance Trust
6.00%, 10/25/36		529		473
Chaseflex Trust
6.00%, 2/25/37		1,349		1,155
Commercial Mortgage Pass-Through Certificates
5.07%, 4/10/47 (b)(c)		883		834
First Horizon Alternative Mortgage Securities Trust
6.25%, 8/25/36		830		694
Freddie Mac Structured Agency Credit Risk Debt Notes
3.90%, 9/25/24 (c)		352		345
GS Mortgage Securities Trust
0.90%, 9/10/49		5,990		376
GSMSC Pass-Through Trust
7.50%, 9/25/36 (b)(c)		1,128		985
Harborview Mortgage Loan Trust
0.34%, 1/19/38 (c)		338		291
Impac CMB Trust
0.89%, 4/25/35 (c)		370		285
JP Morgan Mortgage Trust,
2.67%, 6/25/37 (c)		323		296
6.00%, 6/25/37		358		342
Lehman Mortgage Trust,
5.50%, 11/25/35 - 2/25/36		1,749		1,744
6.50%, 9/25/37		1,879		1,678
RALI Trust,
0.33%, 12/25/36 (c)		528		398
0.34%, 12/25/36 (c)		961		724
5.50%, 12/25/34		1,317		1,341
6.00%, 11/25/36		280		224
Springleaf Mortgage Loan Trust
3.56%, 12/25/59 (b)(c)		860		876
Washington Mutual Mortgage Pass-Through Certificates Trust,
0.89%, 4/25/47 (c)		717		587
1.10%, 7/25/46 (c)		1,512		1,312
				19,554
Municipal Bonds (1.2%)
City of Chicago, IL,
O'Hare International Airport Revenue
6.40%, 1/1/40		255		322
City of New York, NY,
Series G-1
5.97%, 3/1/36		270		331
Illinois State Toll Highway Authority,
Highway Revenue, Build America Bonds
6.18%, 1/1/34		477		594

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Municipal Bonds (cont'd)
Municipal Electric Authority of Georgia,
6.64%, 4/1/57	$	283	$	356
6.66%, 4/1/57		320		395
New York City, NY,
Transitional Finance Authority Future Tax Secured Revenue
5.27%, 5/1/27		320		380
				2,378
Sovereign (5.4%)
Banco Nacional de Desenvolvimento Economico e Social
5.50%, 7/12/20 (b)		580		620
Brazilian Government International Bond,
5.00%, 1/27/45		244		231
5.63%, 1/7/41 (e)		132		137
Hellenic Republic Government Bond,
2.00%, 2/24/25 (i)	EUR	950		900
3.38%, 7/17/17 (b)		720		893
Hungary Government International Bond
5.38%, 3/25/24	$	202		214
KazMunayGas National Co., JSC
6.38%, 4/9/21 (b)		900		974
Mexico Government International Bond
3.63%, 3/15/22		868		884
Petroleos Mexicanos
4.88%, 1/24/22		1,000		1,065
Poland Government International Bond
5.00%, 3/23/22		1,000		1,101
Portugal Obrigacoes do Tesouro OT,
3.88%, 2/15/30 (b)	EUR	280		359
4.10%, 4/15/37 (b)		2,010		2,574
Spain Government International Bond
4.00%, 3/6/18 (b)	$	650		694
				10,646
U.S. Agency Securities (1.7%)
Federal Home Loan Mortgage Corporation,
3.75%, 3/27/19		2,520		2,730
6.75%, 3/15/31		470		678
				3,408
U.S. Treasury Securities (8.8%)
U.S. Treasury Bonds,
2.75%, 11/15/42		5,100		4,667
3.13%, 2/15/43 (e)		2,000		1,971
U.S. Treasury Note
0.88%, 1/31/17		10,500		10,522
				17,160
Total Fixed Income Securities (Cost $183,105)				187,856

	Shares		Value (000)
Short-Term Investments (18.9%)
Securities held as Collateral on Loaned Securities (2.4%)
Investment Company (1.9%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		3,726,793	$	3,727
	Face Amount (000)
Repurchase Agreement (0.5%)
Merrill Lynch & Co., Inc., (Zero Coupon, dated 9/30/14, due 10/1/14; proceeds $884; fully collateralized by various U.S. Government agency securities; 3.00% - 7.00% due 9/15/31 - 9/15/44; valued at $901)	$	883		883
Total Securities held as Collateral on Loaned Securities (Cost $4,610)				4,610
	Shares
Investment Company (16.1%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $31,614)		31,613,712		31,614
	Face Amount (000)
U.S. Treasury Securities (0.4%)
U.S. Treasury Bills,
0.03%, 2/12/15 (j)(k)	$	60		60
0.04%, 2/12/15 (j)(k)		440		440
0.05%, 2/12/15 (j)(k)		176		176
Total U.S. Treasury Securities (Cost $676)				676
Total Short-Term Investments (Cost $36,900)				36,900
Total Investments (114.7%) (Cost $220,005) Including $6,240 of Securities Loaned (l)				224,756
Liabilities in Excess of Other Assets (-14.7%)				(28,839	)
Net Assets (100.0%)			$	195,917

(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 September 30, 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 September 30, 2014.

(e) All or a portion of this security was on loan at September 30, 2014.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

(f) 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 September 30, 2014.

(g) Issuer in bankruptcy.

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

(i) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of September 30, 2014. Maturity date disclosed is the ultimate maturity date.

(j) Rate shown is the yield to maturity at September 30, 2014.

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

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

@ Value is less than $500.

IO Interest Only.

MTN Medium Term Note.

PAC Planned Amortization Class.

REMIC Real Estate Mortgage Investment Conduit.

STRIPS Separate Trading of Registered Interest and Principal of Securities.

TBA To Be Announced.

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at September 30, 2014:

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
Citibank NA	CAD	2,988	$	2,668	10/3/14	USD	2,755	$	2,755	$	87
Citibank NA	MXN	74		6	10/3/14	USD	6		6		—	@
Deutsche Bank AG	NOK	53		8	10/3/14	USD	8		8		—	@
Deutsche Bank AG	USD	970		970	10/3/14	NOK	6,000		934		(36	)
HSBC Bank PLC	AUD	1,067		934	10/3/14	USD	970		970		36
HSBC Bank PLC	EUR	279		352	10/3/14	USD	361		361		9
HSBC Bank PLC	EUR	760		960	10/3/14	USD	970		970		10
HSBC Bank PLC	JPY	104,019		948	10/3/14	USD	973		973		25
HSBC Bank PLC	NOK	5,947		926	10/3/14	USD	934		934		8
HSBC Bank PLC	NZD	3,480		2,716	10/3/14	USD	2,905		2,905		189
HSBC Bank PLC	SEK	6,920		959	10/3/14	USD	973		973		14
HSBC Bank PLC	USD	875		875	10/3/14	CAD	963		860		(15	)
HSBC Bank PLC	USD	1,816		1,816	10/3/14	EUR	1,404		1,773		(43	)
HSBC Bank PLC	USD	6,757		6,757	10/3/14	EUR	5,352		6,759		2
HSBC Bank PLC	USD	949		949	10/3/14	JPY	104,019		948		(1	)
HSBC Bank PLC	USD	2,846		2,846	10/3/14	NZD	3,489		2,723		(123	)
HSBC Bank PLC	USD	959		959	10/3/14	SEK	6,920		959		(—	@)
JPMorgan Chase Bank NA	USD	1,859		1,859	10/3/14	AUD	2,127		1,862		3
JPMorgan Chase Bank NA	USD	5		5	10/3/14	MXN	74		5		(—	@)
UBS AG	AUD	1,060		928	10/3/14	USD	989		989		61
UBS AG	EUR	5,718		7,221	10/3/14	USD	7,538		7,538		317
UBS AG	NZD	9		7	10/3/14	USD	7		7		—	@
UBS AG	USD	1,807		1,807	10/3/14	CAD	2,025		1,808		1
Deutsche Bank AG	CAD	121		108	11/5/14	USD	108		108		—	@
Deutsche Bank AG	USD	8		8	11/5/14	NOK	53		8		(—	@)
HSBC Bank PLC	EUR	5,352		6,761	11/5/14	USD	6,759		6,759		(2	)
HSBC Bank PLC	JPY	104,019		949	11/5/14	USD	949		949		—	@
HSBC Bank PLC	SEK	6,920		959	11/5/14	USD	959		959		—	@
JPMorgan Chase Bank NA	AUD	2,127		1,858	11/5/14	USD	1,855		1,855		(3	)
JPMorgan Chase Bank NA	MXN	74		5	11/5/14	USD	5		5		—	@
UBS AG	CAD	2,025		1,806	11/5/14	USD	1,805		1,805		(1	)
UBS AG	USD	7		7	11/5/14	NZD	9		7		(—	@)
			$	49,937				$	50,475	$	538

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2014:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		353	$	77,252		Dec-14	$	(29	)
U.S. Treasury 5 yr. Note		132		15,610		Dec-14		(23	)
U.S. Treasury Long Bond		20		2,758		Dec-14		(36	)
U.S. Treasury Ultra Long Bond		7		1,067		Dec-14		(16	)
Short:
U.S. Treasury 10 yr. Note		208		(25,925	)	Dec-14		163
							$	59

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 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† (unaudited)
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	995		1.00	%	3/20/19	$	19		$	(18	)	$	1		BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		950		1.00		12/20/18		(17	)		(5	)		(22	)	BBB
Morgan Stanley & Co., LLC* CDX.NA.IG.22	Buy		4,600		1.00		6/20/19		(94	)		19			(75	)	NR
Morgan Stanley & Co., LLC* CDX.NA.IG.22	Buy		3,825		1.00		6/20/19		(77	)		15			(62	)	NR
		$	10,370					$	(169	)	$	11		$	(158	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at September 30, 2014:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.14	%	7/23/17	$	9,915	$	7
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.06		8/21/17		21,300		98
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.18		9/4/17		7,850		16
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.17		9/5/17		12,000		27
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.19		9/10/17		6,000		12
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.71		8/21/19		7,064		58
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.81		9/4/19		2,400		11
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.80		9/5/19		3,612		17
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.85		9/10/19		1,740		6
									$	252

@ 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.

NR Not Rated.

AUD — Australian Dollar

CAD — Canadian Dollar

EUR — Euro

JPY — Japanese Yen

MXN — Mexican Peso

NOK — Norwegian Krone

NZD — New Zealand Dollar

SEK — Swedish Krona

USD — United States Dollar

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Agency Fixed Rate Mortgages		20.9	%
Industrials		14.9
Short-Term Investments		14.7
Other**		13.9
Finance		13.0
Mortgages — Other		8.9
U.S. Treasury Securities		7.8
Commercial Mortgage-Backed Securities		5.9
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 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 $122,612,000 with net unrealized appreciation of approximately $59,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $538,000 and does not include open swap agreements with net unrealized appreciation of approximately $263,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities	September 30, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $184,664)	$	189,415
Investment in Security of Affiliated Issuer, at Value (Cost $35,341)		35,341
Total Investments in Securities, at Value (Cost $220,005)		224,756
Cash		191
Interest Receivable		1,290
Receivable for Investments Sold		822
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		762
Receivable for Swap Agreements Termination		266
Receivable for Variation Margin on Futures Contracts		153
Receivable for Portfolio Shares Sold		144
Premium Paid on Open Swap Agreements		19
Tax Reclaim Receivable		12
Receivable from Affiliate		1
Other Assets		41
Total Assets		228,457
Liabilities:
Payable for Investments Purchased		26,535
Collateral on Securities Loaned, at Value		4,801
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		224
Payable for Swap Agreements Termination		209
Payable for Advisory Fees		192
Payable for Variation Margin on Swap Agreements		154
Payable for Trustees' Fees and Expenses		129
Payable for Portfolio Shares Redeemed		90
Payable for Sub Transfer Agency Fees — Class I		65
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Unrealized Depreciation on Swap Agreements		23
Payable for Professional Fees		23
Premium Received on Open Swap Agreements		17
Payable for Administration Fees		13
Payable for Custodian Fees		12
Payable for Transfer Agent Fees — Class I		1
Payable for Transfer Agent Fees — Class A		1
Payable for Transfer Agent Fees — Class L		—	@
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Other Liabilities		49
Total Liabilities		32,540
Net Assets	$	195,917
Net Assets Consist Of:
Paid-in-Capital	$	664,122
Accumulated Undistributed Net Investment Income		3,137
Accumulated Net Realized Loss		(476,949	)
Unrealized Appreciation (Depreciation) on:
Investments		4,751
Futures Contracts		59
Swap Agreements		263
Foreign Currency Forward Exchange Contracts		538
Foreign Currency Translations		(4	)
Net Assets	$	195,917

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2014 (000)
CLASS I:
Net Assets	$	192,868
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		18,624,049
Net Asset Value, Offering and Redemption Price Per Share	$	10.36
CLASS A:
Net Assets	$	2,941
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		283,648
Net Asset Value, Redemption Price Per Share	$	10.37
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.46
Maximum Offering Price Per Share	$	10.83
CLASS L:
Net Assets	$	108
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		10,448
Net Asset Value, Offering and Redemption Price Per Share	$	10.37
⁽¹⁾ Including: Securities on Loan, at Value:	$	6,240

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Core Plus Fixed Income Portfolio

Statement of Operations	Year Ended September 30, 2014 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	6,913
Income from Securities Loaned — Net		19
Dividends from Security of Affiliated Issuer (Note G)		11
Total Investment Income		6,943
Expenses:
Advisory Fees (Note B)		718
Sub Transfer Agency Fees		50
Sub Transfer Agency Fees — Class I		197
Sub Transfer Agency Fees — Class A		3
Sub Transfer Agency Fees — Class L		—	@
Administration Fees (Note C)		153
Professional Fees		143
Shareholder Reporting Fees		76
Custodian Fees (Note F)		74
Pricing Fees		47
Registration Fees		12
Transfer Agency Fees — Class I (Note E)		6
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		2
Shareholder Services Fees — Class A (Note D)		8
Distribution and Shareholder Services Fees — Class L (Note D)		—	@
Trustees' Fees and Expenses		3
Other Expenses		65
Total Expenses		1,559
Reimbursement of Class Specific Expenses — Class I (Note B)		(203	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(2	)
Waiver of Advisory Fees (Note B)		(154	)
Rebate from Morgan Stanley Affiliate (Note G)		(23	)
Net Expenses		1,175
Net Investment Income		5,768
Realized Gain (Loss):
Investments Sold		3,936
Foreign Currency Forward Exchange Contracts		(47	)
Foreign Currency Transactions		(1	)
Futures Contracts		752
Swap Agreements		21
Net Realized Gain		4,661
Change in Unrealized Appreciation (Depreciation):
Investments		3,871
Foreign Currency Forward Exchange Contracts		827
Foreign Currency Translations		(7	)
Futures Contracts		8
Swap Agreements		(890	)
Net Change in Unrealized Appreciation (Depreciation)		3,809
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		8,470
Net Increase in Net Assets Resulting from Operations	$	14,238

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Core Plus Fixed Income Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2014 (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	5,768		$	6,687
Net Realized Gain		4,661			1,559
Net Change in Unrealized Appreciation (Depreciation)		3,809			(8,974	)
Net Increase (Decrease) in Net Assets Resulting from Operations	��	14,238			(728	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(5,745	)		(11,071	)
*Class A:**
Net Investment Income		(93	)		(175	)
*Class H:**
Net Investment Income		—			(2	)**
Class L:
Net Investment Income		(2	)		(5	)
Total Distributions		(5,840	)		(11,253	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		23,107			15,295
Distributions Reinvested		5,736			10,981
Redeemed		(31,232	)		(54,815	)
*Class A:**
Subscribed		1,471			982
Distributions Reinvested		93			175
Conversion from Class H		—			45
Redeemed		(1,926	)		(1,527	)
*Class H:**
Subscribed		—			36	**
Distributions Reinvested		—			1	**
Conversion to Class A		—			(45	)**
Redeemed		—			(28	)**
Class L:
Subscribed		14			3
Distributions Reinvested		2			5
Redeemed		—			(43	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(2,735	)		(28,935	)
Total Increase (Decrease) in Net Assets		5,663			(40,916	)
Net Assets:
Beginning of Period		190,254			231,170
End of Period (Including Accumulated Undistributed Net Investment Income of $3,137 and $3,086)	$	195,917		$	190,254
(1) Capital Share Transactions:
Class I:
Shares Subscribed		2,271			1,496
Shares Issued on Distributions Reinvested		574			1,077
Shares Redeemed		(3,088	)		(5,392	)
Net Decrease in Class I Shares Outstanding		(243	)		(2,819	)
*Class A:**
Shares Subscribed		146			96
Shares Issued on Distributions Reinvested		9			17
Conversion from Class H		—			5
Shares Redeemed		(188	)		(151	)
Net Decrease in Class A Shares Outstanding		(33	)		(33	)
*Class H:**
Shares Subscribed		—			4	**
Shares Issued on Distributions Reinvested		—			—	@@**
Conversion to Class A		—			(5	)**
Shares Redeemed		—			(2	)**
Net Increase (Decrease) in Class H Shares Outstanding		—			(3	)
Class L:
Shares Subscribed		1			—	@@
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		—			(3	)
Net Increase (Decrease) in Class L Shares Outstanding		1			(3	)

@@ Amount is less than 500 shares.

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Core Plus Fixed Income Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	9.91		$	10.48		$	9.92		$	9.96		$	9.41
Income (Loss) from Investment Operations:
Net Investment Income†		0.31			0.32			0.39			0.38			0.34
Net Realized and Unrealized Gain (Loss)		0.45			(0.36	)		0.63			(0.02	)		0.57
Total from Investment Operations		0.76			(0.04	)		1.02			0.36			0.91
Distributions from and/or in Excess of:
Net Investment Income		(0.31	)		(0.53	)		(0.46	)		(0.40	)		(0.36	)
Net Asset Value, End of Period	$	10.36		$	9.91		$	10.48		$	9.92		$	9.96
Total Return++		7.82	%		(0.42	)%		10.62	%		3.74	%		10.02	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	192,868		$	187,014		$	227,331		$	295,226		$	434,657
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.61	%+††		0.71	%+^		0.62	%+		0.66	%+††		0.51	%+††
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		3.02	%+††		3.14	%+^		3.88	%+		3.88	%+††		3.53	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%		0.00	%§		0.01	%
Portfolio Turnover Rate		296	%		226	%		189	%		225	%		270	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.81	%††		0.73	%		N/A			N/A			N/A
Net Investment Income to Average Net Assets		2.82	%††		3.12	%		N/A			N/A			N/A

† 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.

†† 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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Core Plus Fixed Income Portfolio

	Class A*
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	9.93		$	10.50		$	9.94		$	9.97		$	9.40
Income (Loss) from Investment Operations:
Net Investment Income†		0.27			0.29			0.37			0.36			0.31
Net Realized and Unrealized Gain (Loss)		0.45			(0.36	)		0.62			(0.02	)		0.57
Total from Investment Operations		0.72			(0.07	)		0.99			0.34			0.88
Distributions from and/or in Excess of:
Net Investment Income		(0.28	)		(0.50	)		(0.43	)		(0.37	)		(0.31	)
Net Asset Value, End of Period	$	10.37		$	9.93		$	10.50		$	9.94		$	9.97
Total Return++		7.35	%		(0.68	)%		10.31	%		3.57	%		9.73	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,941		$	3,152		$	3,673		$	4,654		$	5,732
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.96	%+††		0.96	%+^		0.87	%+		0.91	%+††		0.76	%+††
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.67	%+††		2.89	%+^		3.63	%+		3.63	%+††		3.28	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%		0.00	%§		0.01	%
Portfolio Turnover Rate		296	%		226	%		189	%		225	%		270	%
⁽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
Net Investment Income to Average Net Assets		2.52	%††		2.87	%		N/A			N/A			N/A

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

† 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.

†† 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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Core Plus Fixed Income Portfolio

	Class L
	Year Ended September 30,						Period from April 27, 2012^ to
Selected Per Share Data and Ratios	2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	9.92		$	10.49		$	10.14
Income (Loss) from Investment Operations:
Net Investment Income†		0.25			0.27			0.11
Net Realized and Unrealized Gain (Loss)		0.45			(0.36	)		0.35
Total from Investment Operations		0.70			(0.09	)		0.46
Distributions from and/or in Excess of:
Net Investment Income		(0.25	)		(0.48	)		(0.11	)
Net Asset Value, End of Period	$	10.37		$	9.92		$	10.49
Total Return++		7.19	%		(0.95	)%		4.59	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	108		$	88		$	130
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.21	%+††		1.21	%+^^		1.16	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.42	%+††		2.64	%+^^		2.60	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%*
Portfolio Turnover Rate		296	%		226	%		189	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		3.10	%††		1.27	%		N/A
Net Investment Income to Average Net Assets		0.53	%††		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.

†† 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.
24

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements

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.

Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

• 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 following is a summary of the inputs used to value the Portfolio's investments as of September 30, 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	$	—	$	1,252	$	—	$	1,252
Agency Fixed Rate Mortgages		—		45,998		—		45,998
Asset-Backed Securities		—		1,580		—		1,580
Collateralized Mortgage Obligations — Agency Collateral Series		—		7,325		—		7,325
Commercial Mortgage-Backed Securities		—		13,044		—		13,044
Corporate Bonds		—		65,511		—		65,511
Mortgages — Other		—		19,554		—		19,554
Municipal Bonds		—		2,378		—		2,378
Sovereign		—		10,646		—		10,646
U.S. Agency Securities		—		3,408		—		3,408
U.S. Treasury Securities		—		17,160		—		17,160
Total Fixed Income Securities		—		187,856		—		187,856
Short-Term Investments
Investment Company		35,341		—		—		35,341
Repurchase Agreement		—		883		—		883
U.S. Treasury Securities		—		676		—		676
Total Short-Term Investments		35,341		1,559		—		36,900

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (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)
Foreign Currency Forward Exchange Contracts	$	—		$	762		$	—	$	762
Futures Contract		163			—			—		163
Credit Default Swap Agreements		—			34			—		34
Interest Rate Swap Agreements		—			252			—		252
Total Assets		35,504			190,463			—		225,967
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(224	)		—		(224	)
Futures Contracts		(104	)		—			—		(104	)
Credit Default Swap Agreements		—			(23	)		—		(23	)
Total Liabilities		(104	)		(247	)		—		(351	)
Total	$	35,400		$	190,216		$	—	$	225,616

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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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. 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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 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

762

Futures Contracts

Variation Margin
on Futures Contracts

Interest Rate Risk

163

(a)

Swap Agreements

Variation Margin
on Swap Agreements

Credit Risk

(a)

Swap Agreements

Variation Margin

Interest Rate Risk

252

(a)

on Swap Agreements

Total

1,211

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

(224

)

Futures Contracts

Variation Margin
on Futures Contracts

Interest Rate Risk

(104

)(a)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Credit Risk

(23

)

Total

(351

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(47	)
Interest Rate Risk	Futures Contracts		752
Credit Risk	Swap Agreements		(97	)
Interest Rate Risk	Swap Agreements		118
	Total	$	726
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	827
Interest Rate Risk	Futures Contracts		8
Credit Risk	Swap Agreements		59
Interest Rate Risk	Swap Agreements		(949	)
	Total	$	(55	)

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

At September 30, 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	$	762	$	(224	)
Swap Agreements		—		(23	)
Total	$	762	$	(247	)

(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 following tables present derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 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)
Citibank NA	$	87	$	—		$	—	$	87
HSBC Bank PLC		293		(184	)		—		109
JPMorgan Chase Bank NA		3		(3	)		—		0
UBS AG		379		(1	)		—		378
Total	$	762	$	(188	)	$	—	$	574
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	$	23	$	—		$	—	$	23
Deutsche Bank AG		36		—			—		36
HSBC Bank PLC		184		(184	)		—		0
JPMorgan Chase Bank NA		3		(3	)		—		0
UBS AG		1		(1	)		—		0
Total	$	247	$	(188	)	$	—	$	59

For the year ended September 30, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	32,130,000
Futures Contracts:
Average monthly original value	$	70,236,000
Swap Agreements:
Average monthly notional amount	$	59,740,000

6. 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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 September 30, 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)
$	6,240	(d)	$	—	$	(6,240	)(e)(f)	$	0

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

(e) The Portfolio received cash collateral of approximately $4,801,000, of which approximately $4,610,000 was subsequently invested in a Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of September 30, 2014, there was uninvested cash of approximately $191,000, which is not reflected in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $1,580,000 in the form of U.S. Government agency securities, 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.

7. 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.

8. 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.

9. 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.

10. 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	%

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

For the year ended September 30, 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. Effective October 6, 2014, the Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses will not exceed 0.52% for Class I shares, 0.87% for Class A shares and 1.12% for Class L shares, respectively. 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 year ended September 30, 2014, approximately $154,000 of advisory fees were waived and approximately $207,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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.

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $54,660,000 and $60,066,000, respectively. For the year ended September 30, 2014, purchases and sales of long-term U.S. Government securities were approximately $492,105,000 and $488,842,000, 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 year ended September 30, 2014, advisory fees paid were reduced by approximately $23,000 relating to the Portfolio's investment in the Liquidity Funds.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the year ended September 30, 2014 is as follows:

Value September 30, 2013 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2014 (000)
$	21,525			$	93,116			$	79,300			$	11			$	35,341

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.

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 2014 and 2013 was as follows:

2014 Distributions Paid From: Ordinary Income (000)				2013 Distributions Paid From: Ordinary Income (000)
$	5,840			$	11,253

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 and an expired capital loss carryforward, resulted in the following reclassifications among the components of net assets at September 30, 2014:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in-Capital (000)
$	123			$	2,516			$	(2,639	)

At September 30, 2014, 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)
$	3,775			$	—

At September 30, 2014, the aggregate cost for Federal income tax purposes is approximately $220,071,000. The aggregate gross unrealized appreciation is approximately $8,885,000 and the aggregate gross unrealized depreciation is approximately $3,547,000 resulting in net unrealized appreciation of approximately $5,338,000.

At September 30, 2014, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	15,680	September 30, 2015
	5,336	September 30, 2016
	254,264	September 30, 2017
	201,462	September 30, 2018

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

Capital loss carryforwards of approximately $2,643,000 expired during the year ended September 30, 2014.

I. Other (unaudited): At September 30, 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 58% and 32%, for Class I and Class A shares, respectively.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Core Plus Fixed Income Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Core Plus Fixed Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Core Plus Fixed Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 26, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 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 RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• 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 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

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

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

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

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.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

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

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (69)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Michael Bozic (73)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
April
1994

100

Trustee and member of the Hillsdale College Board of Trustees

Kathleen A. Dennis (61)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various non-profit organizations.

Dr. Manuel H. Johnson (65)
c/o Johnson Smick
International, Inc.
220 I Street, N.E.
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

100

Director of NVR, Inc. (home construction).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Joseph J. Kearns (72)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

101

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Michael F. Klein (55)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (78)
522 Fifth Avenue
New York, NY 10036

Chairperson
of the
Board and
Trustee

Chairperson of
the Boards since
July 2006 and
Trustee since
July 1991

100

None.

W. Allen Reed (67)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (82)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

101

Through December 31, 2012, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Position(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (66)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (51)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (47)
522 Fifth Avenue
New York, NY 10036

Chief Compliance Officer

Since
January
2014

Joseph C. Benedetti (49)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
December
1997

Francis J. Smith (49)
522 Fifth Avenue
New York, NY 10036

Treasurer and Principal Financial
Officer

Treasurer since July 2003 and Principal Financial Officer since September 2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (47)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

IFTCPFIANN
1043222 EXP 11.28.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Corporate Bond Portfolio

Annual Report

September 30, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Advisory Agreement Approval					4
Investment Overview					6
Portfolio of Investments					9
Statement of Assets and Liabilities					16
Statement of Operations					18
Statements of Changes in Net Assets					19
Financial Highlights					20
Notes to Financial Statements					23
Report of Independent Registered Public Accounting Firm					32
U.S. Privacy Policy					33
Trustee and Officer Information					36

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Corporate Bond Portfolio (the "Portfolio") performed during the latest twelve-month period.

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

October 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Expense Example (unaudited)

Corporate Bond Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2014 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/14		Actual Ending Account Value 9/30/14		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	$	1,030.40	$	1,021.61	$	3.51	$	3.50		0.69	%
Corporate Bond Portfolio Class A		1,000.00		1,028.80		1,019.85		5.29		5.27		1.04
Corporate Bond Portfolio Class L		1,000.00		1,027.30		1,018.55		6.61		6.58		1.30

** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2013, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one- and three-year periods but below its peer group average for the five-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that while the Portfolio's management fee was lower than its peer group average, the total expense ratio was higher than its peer group average. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; (ii) management fee was competitive with its peer group average; and (iii) total expense ratio was acceptable.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

Resources of the Adviser and Historical Relationship Between the Portfolio and the Adviser

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited)

Corporate Bond Portfolio

The Corporate Bond Portfolio seeks above-average total return over a market cycle of three to five years.

Performance

For the fiscal year ended September 30, 2014, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 8.79%, net of fees. The Portfolio's Class I shares outperformed against the Portfolio's benchmark, the Barclays Capital U.S. Corporate Index (the "Index"), which returned 6.77%.

Factors Affecting Performance

• After rallying for most of the 12-month period, risky assets paused late in the period as investors took stock of the changing fundamental backdrop and re-evaluated whether market risk premia are sufficient to compensate for these risks. In the U.S., investors increased their focus on when the Federal Reserve (Fed) will raise rates, potentially increasing the volatility in financial markets. In contrast, investors in Europe focused on the weakening fundamental backdrop, as economic growth continued to decelerate and inflation expectations continued their downward path, thereby putting pressure on the European Central Bank (ECB) to take additional unconventional action. On a global basis, expectations for growth continued to fall, and this has been reflected in weaker commodity prices and the strengthening U.S. dollar. These concerns, combined with the growing geopolitical tension in Syria and Iraq, contributed to an uncertain backdrop for investing.

• Investors also continued to watch the actions of global central banks. In the U.S., the Fed has maintained a view that rates will remain low for a "considerable time." The ECB eased policy rates and announced outright asset purchases of asset-backed securities and covered bonds. The Bank of Japan continued to contemplate ways to ease financial conditions. Both Australian and New Zealand central banks have also turned slightly more dovish, meaning that they are more favorable toward maintaining low interest rates to foster economic growth. As long as the inflation backdrop remains steady, the risk of a sharp rise in interest rates appears minimal.

• Corporate credit performed well during the period. On a sector basis, financials continued to outperform industrials, supported by the financials

sector's lower net issuance and continued secular de-risking. Credit spreads also decompressed, with higher-rated issuers outperforming those with lower-quality credit profiles.

• The high yield segment weakened in the latter part of the period, reflecting both the spread decompression witnessed in the investment grade market and less favorable supply demand characteristics. High yield supply has been high both in Europe and the U.S., while fund flows were negative, particularly in the U.S., as investors reduced positions ahead of a potential rate-raising cycle.

• The Treasury curve flattened during the period with two- and five-year yields rising between 20 and 30 basis points and 10- and 30-year yields falling between 20 and 60 basis points.

• Investment grade credit performed strongly over the past 12 months. Traditionally higher beta (or more volatile) sectors, such as financials and BBB-rated non-financials, outperformed the broader corporate market.

• The Portfolio's overweight allocation to financial sector credits contributed positively to returns, as spreads in the sector narrowed relative to the broader market.

• An opportunistic allocation to below investment grade (high yield) also contributed positively to the Portfolio's performance. Despite some recent underperformance, high yield securities performed well over the year as spreads narrowed and default rates remained low.

• During the year, the Portfolio's duration, a measure of interest-rate sensitivity, was below that of the Index. This defensive positioning detracted from returns as yields fell during the period. The Portfolio did maintain a position seeking to take advantage of yield curve flattening, which contributed positively to returns. The duration and yield curve flattening positions were managed in part using futures and swaps.

Management Strategies

• As fixed income markets have remained in a "carry" environment — that is, investors borrow at a lower interest rate and invest in a higher-yielding asset — one of our investment themes has been to identify

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

Corporate Bond Portfolio

those higher yielding assets we believe could outperform government bonds as the market begins to price in tighter Fed Policy. We believe this theme remains valid as the policy reaction from global central banks remains supportive and the sluggish recovery in global growth acts to minimize the risk of a sharp rise in interest rates. To be clear, we do expect U.S. policy rates to rise in 2015, but we believe this will be a slow process and there are still opportunities to take advantage of income earned from carry while building in a hedge against rising interest rates. In terms of carry, we still believe growth is strong enough to support credit and keep default rates low.

• Given this outlook, we continue to position the Portfolio to be overweight credit risk, particularly in the financial sector, where we believe that the fundamental story remains one of secular de-risking as banks look to shore up their balance sheets, increase liquidity and reduce their risky activities.

• In the non-financial segment of the investment grade market, we have positioned the Portfolio with an increasingly defensive stance. While many companies spent the last several years strengthening their balance sheets, more and more have been increasing leverage as the economic recovery matures. We expect this behavior will pressure spreads within the non-financial segment of the market.

• The Portfolio continues to hold a modest allocation to high yield bonds, as we believe conditions remain supportive for this subsector of the market. We have become more positive on the high yield segment as valuations have recently improved.

* Minimum Investment

Performance Compared to the Barclays Capital U.S. Corporate Index⁽¹⁾ and the Lipper Corporate Debt Funds BBB-Rated Index⁽²⁾

	Period Ended September 30, 2014 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁷⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		8.79	%		6.25	%		4.11	%		6.52	%
Barclays Capital U.S. Corporate Index		6.77			6.41			5.49			7.31
Lipper Corporate Debt Funds BBB-Rated Index		7.08			7.04			5.53			6.90
Portfolio — Class A Shares w/o sales charges⁽⁵⁾		8.43			6.07			3.95			4.28
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁵⁾		3.79			5.16			3.50			3.91
Barclays Capital U.S. Corporate Index		6.77			6.41			5.49			6.05
Lipper Corporate Debt Funds BBB-Rated Index		7.08			7.04			5.53			6.04
Portfolio — Class L Shares w/o sales charges⁽⁶⁾		8.15			5.70			—			4.83
Barclays Capital U.S. Corporate Index		6.77			6.41			—			7.08
Lipper Corporate Debt Funds BBB-Rated Index		7.08			7.04			—			6.72

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

Corporate Bond Portfolio

performance figures, please visit www.morganstanley.com/im. Investment returns and principal value will fluctuate so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Performance of share classes will vary due to differences in sales charges and expenses.

⁽¹⁾ The Barclays Capital U.S. Corporate Index is a broad-based benchmark that measures the investment grade, fixed-rate, taxable, corporate bond market. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Corporate Debt Funds BBB-Rated Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Corporate Debt Funds BBB-Rated Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Corporate Debt Funds BBB-Rated Funds classification.

⁽³⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser and Distributor. Without such waivers and/or reimbursements, total returns would have been lower. The fee waivers and/or expense reimbursements will continue for at least one year or until such time as the Fund's Board of Trustees acts to discontinue all or a portion of such waivers and/or reimbursements when it deems such action is appropriate.

⁽⁴⁾ Commenced operations on August 31, 1990.

⁽⁵⁾ Commenced operations on May 20, 2002.

⁽⁶⁾ Commenced operations on June 16, 2008.

⁽⁷⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date or initial offering of the respective share class of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (96.4%)
Asset-Backed Securities (0.8%)
CVS Pass-Through Trust,
6.04%, 12/10/28	$	117	$	136
8.35%, 7/10/31 (a)		134		182
				318
Collateralized Mortgage Obligation — Agency Collateral Series (0.0%)
Federal Home Loan Mortgage Corporation,
IO STRIPS
8.00%, 1/1/28		19		5
Corporate Bonds (95.0%)
Finance (38.7%)
Abbey National Treasury Services PLC,
3.05%, 8/23/18		120		124
4.00%, 3/13/24		50		51
ACE INA Holdings, Inc.
3.35%, 5/15/24		125		125
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust
3.75%, 5/15/19 (a)		150		146
Alexandria Real Estate Equities, Inc.
3.90%, 6/15/23		50		50
American Campus Communities Operating Partnership LP
3.75%, 4/15/23		100		99
American Financial Group, Inc.
9.88%, 6/15/19		225		291
American International Group, Inc.,
4.88%, 6/1/22		100		110
6.40%, 12/15/20		134		160
Bank of America Corp.,
4.00%, 4/1/24 (b)		620		627
4.20%, 8/26/24		100		99
Bank of New York Mellon Corp. (The)
3.65%, 2/4/24		60		62
BBVA Bancomer SA
6.50%, 3/10/21 (a)		150		164
Bear Stearns Cos., LLC (The)
5.55%, 1/22/17		200		218
BNP Paribas SA
5.00%, 1/15/21		95		106
Boston Properties LP
3.80%, 2/1/24		25		25
BPCE SA
5.15%, 7/21/24 (a)(b)		200		206
Capital One Bank, USA NA
3.38%, 2/15/23		342		336
Capital One Financial Corp.
2.45%, 4/24/19		50		50
Citigroup, Inc.,
3.88%, 10/25/23		375		382
4.05%, 7/30/22		140		142

	Face Amount (000)		Value (000)
5.50%, 9/13/25	$	50	$	55
6.68%, 9/13/43		50		61
8.13%, 7/15/39		100		149
CNA Financial Corp.
5.75%, 8/15/21		250		286
Cooperatieve Centrale Raiffeisen- Boerenleenbank BA
3.95%, 11/9/22		250		251
Credit Agricole SA
3.88%, 4/15/24 (a)		250		252
Credit Suisse,
3.63%, 9/9/24		250		247
6.00%, 2/15/18		61		68
DBS Group Holdings Ltd.
2.25%, 7/16/19 (a)(b)		225		223
Discover Bank
2.00%, 2/21/18		250		249
Five Corners Funding Trust
4.42%, 11/15/23 (a)		200		210
General Electric Capital Corp.,
5.30%, 2/11/21 (b)		120		135
MTN
5.88%, 1/14/38		230		278
Series G
6.00%, 8/7/19		666		778
Goldman Sachs Group, Inc. (The),
3.63%, 1/22/23		480		477
6.75%, 10/1/37		205		245
Goodman Funding Pty Ltd.
6.38%, 4/15/21 (a)		250		292
Hartford Financial Services Group, Inc.
5.50%, 3/30/20 (b)		275		311
HBOS PLC,
Series G
6.75%, 5/21/18 (a)		357		404
Healthcare Trust of America Holdings LP
3.70%, 4/15/23		100		98
HSBC Finance Corp.
6.68%, 1/15/21		135		158
HSBC Holdings PLC
6.50%, 5/2/36		100		123
HSBC USA, Inc.
3.50%, 6/23/24 (b)		275		276
ING Bank N.V.
5.80%, 9/25/23 (a)		200		221
Intesa Sanpaolo SpA
5.25%, 1/12/24		200		214
JPMorgan Chase & Co.,
3.20%, 1/25/23		275		269
3.88%, 9/10/24		200		196
4.50%, 1/24/22		305		327
Liberty Mutual Group, Inc.
4.85%, 8/1/44 (a)		50		50

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Lincoln National Corp.
7.00%, 6/15/40	$	75	$	100
Lloyds Bank PLC
6.50%, 9/14/20 (a)(b)		320		373
Macquarie Group Ltd.
6.00%, 1/14/20 (a)		215		241
Nationwide Building Society
6.25%, 2/25/20 (a)		260		304
Nationwide Financial Services, Inc.
5.38%, 3/25/21 (a)		275		310
Pacific LifeCorp
6.00%, 2/10/20 (a)		150		171
Platinum Underwriters Finance, Inc.,
Series B
7.50%, 6/1/17		234		265
PNC Financial Services Group, Inc. (The)
3.90%, 4/29/24		80		80
Principal Financial Group, Inc.
1.85%, 11/15/17		250		250
Protective Life Corp.
7.38%, 10/15/19		175		214
Prudential Financial, Inc.
5.63%, 6/15/43 (c)		95		99
Realty Income Corp.
3.25%, 10/15/22		150		147
Santander US Debt SAU
3.72%, 1/20/15 (a)		200		202
Standard Chartered PLC
3.95%, 1/11/23 (a)(b)		200		195
Synchrony Financial
4.25%, 8/15/24		75		75
UBS AG
7.50%, 7/15/25		100		126
UnitedHealth Group, Inc.,
1.40%, 10/15/17		10		10
2.75%, 2/15/23		55		53
2.88%, 3/15/23		255		249
Voya Financial, Inc.
5.65%, 5/15/53 (c)		100		101
Weingarten Realty Investors
3.38%, 10/15/22		150		149
Wells Fargo & Co.,
1.25%, 7/20/16		300		302
2.15%, 1/15/19		60		60
3.30%, 9/9/24		200		196
Series M
3.45%, 2/13/23		125		123
4.10%, 6/3/26		250		249
4.13%, 8/15/23		130		135
				15,255

	Face Amount (000)		Value (000)
Industrials (46.7%)
21st Century Fox America, Inc.
4.75%, 9/15/44 (a)	$	150	$	151
ABB Treasury Center USA, Inc.
4.00%, 6/15/21 (a)		50		53
AbbVie, Inc.
2.90%, 11/6/22		43		41
ADT Corp. (The)
6.25%, 10/15/21 (b)		100		104
Alfa SAB de CV
5.25%, 3/25/24 (a)(b)		200		214
Altria Group, Inc.,
2.85%, 8/9/22		115		110
5.38%, 1/31/44		80		86
American Airlines Pass-Through Trust,
4.00%, 1/15/27		190		192
4.95%, 7/15/24		189		202
American Tower Corp.
3.50%, 1/31/23		50		48
Amgen, Inc.
5.15%, 11/15/41		198		210
Anadarko Petroleum Corp.
6.45%, 9/15/36		100		122
Anheuser-Busch InBev Finance, Inc.
3.70%, 2/1/24 (b)		200		202
Apple, Inc.,
2.40%, 5/3/23		125		118
4.45%, 5/6/44 (b)		125		128
Aramark Services, Inc.
5.75%, 3/15/20		95		98
Ashland, Inc.
6.88%, 5/15/43		50		52
AstraZeneca PLC
6.45%, 9/15/37		125		163
AT&T, Inc.
6.30%, 1/15/38		275		326
BAE Systems Holdings, Inc.
3.80%, 10/7/24		100		100
Baidu, Inc.
3.25%, 8/6/18		200		206
Barrick Gold Corp.
4.10%, 5/1/23 (b)		100		96
BHP Billiton Finance USA Ltd.
3.85%, 9/30/23		200		208
Bombardier, Inc.
6.13%, 1/15/23 (a)(b)		116		117
British Airways PLC
4.63%, 6/20/24 (a)(b)		173		182
Burlington Northern Santa Fe LLC,
3.05%, 3/15/22		150		150
4.40%, 3/15/42		75		74
5.65%, 5/1/17		130		144

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Cardtronics, Inc.
5.13%, 8/1/22 (a)	$	125	$	124
Caterpillar Financial Services Corp.,
Series G
2.45%, 9/6/18		200		204
Caterpillar, Inc.
3.40%, 5/15/24 (b)		125		126
CBS Corp.
4.90%, 8/15/44		75		74
CC Holdings GS V LLC/Crown Castle GS III Corp.
3.85%, 4/15/23		150		148
CEVA Group PLC
7.00%, 3/1/21 (a)(b)		75		75
Cimarex Energy Co.
5.88%, 5/1/22		150		162
Coca-Cola Co.
3.20%, 11/1/23 (b)		125		126
Continental Resources, Inc.
3.80%, 6/1/24 (b)		250		245
Covidien International Finance SA
2.95%, 6/15/23		175		169
Crown Castle International Corp.
5.25%, 1/15/23		75		75
Daimler Finance North America LLC
8.50%, 1/18/31		161		244
Deere & Co.
3.90%, 6/9/42		60		57
Denbury Resources, Inc.
5.50%, 5/1/22		90		89
DirecTV Holdings LLC/DirecTV Financing Co., Inc.
3.80%, 3/15/22		180		183
eBay, Inc.
2.88%, 8/1/21 (b)		150		147
Ecopetrol SA
5.88%, 9/18/23		130		144
Eldorado Gold Corp.
6.13%, 12/15/20 (a)(b)		105		105
EMC Corp.
3.38%, 6/1/23		140		138
Ensco PLC
5.75%, 10/1/44		50		51
ENTEL Chile SA
4.88%, 10/30/24 (a)(b)		200		205
Express Scripts Holding Co.
2.65%, 2/15/17		100		103
Ford Motor Credit Co., LLC,
4.21%, 4/15/16		100		105
5.88%, 8/2/21		200		230
Freeport-McMoRan, Inc.
3.88%, 3/15/23 (b)		120		119
General Electric Co.
4.50%, 3/11/44		50		52

	Face Amount (000)		Value (000)
General Motors Financial Co., Inc.
4.38%, 9/25/21 (b)	$	125	$	128
Gilead Sciences, Inc.
4.80%, 4/1/44		100		106
Glencore Funding LLC
4.13%, 5/30/23 (a)		170		169
Goldcorp, Inc.,
3.70%, 3/15/23		150		147
5.45%, 6/9/44		50		52
Guitar Center, Inc.
6.50%, 4/15/19 (a)(b)		75		68
Harley-Davidson Funding Corp.
6.80%, 6/15/18 (a)		245		286
HCA, Inc.
4.75%, 5/1/23		130		127
Heathrow Funding Ltd.
4.88%, 7/15/21 (a)(b)		190		210
Hewlett-Packard Co.,
3.75%, 12/1/20		50		52
4.65%, 12/9/21 (b)		110		119
Home Depot, Inc.
5.88%, 12/16/36		109		135
Intel Corp.
2.70%, 12/15/22		200		195
International Business Machines Corp.
1.95%, 2/12/19 (b)		325		325
Johnson Controls, Inc.
4.95%, 7/2/64		25		24
Koninklijke Philips N.V.
3.75%, 3/15/22		300		311
Kroger Co. (The)
6.90%, 4/15/38		80		103
Lubrizol Corp.
8.88%, 2/1/19		165		208
MasTec, Inc.
4.88%, 3/15/23		140		132
McKesson Corp.,
2.70%, 12/15/22		100		96
4.88%, 3/15/44		30		31
MDC Partners, Inc.
6.75%, 4/1/20 (a)		100		103
Medtronic, Inc.
3.63%, 3/15/24		200		205
Merck & Co., Inc.
2.80%, 5/18/23		250		244
Motorola Solutions, Inc.
4.00%, 9/1/24		200		196
NBC Universal Media LLC
5.95%, 4/1/41		325		398
NetApp, Inc.
2.00%, 12/15/17		100		101
Nexen Energy ULC
6.40%, 5/15/37		100		122

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
NOVA Chemicals Corp.
5.25%, 8/1/23 (a)	$	120	$	125
Novartis Capital Corp.
3.40%, 5/6/24		200		204
Omega Healthcare Investors, Inc.
4.95%, 4/1/24 (a)		100		102
Omnicom Group, Inc.
3.63%, 5/1/22		95		97
Ooredoo International Finance Ltd.
3.25%, 2/21/23 (a)		225		214
Oracle Corp.
4.50%, 7/8/44		150		152
Packaging Corp. of America
4.50%, 11/1/23		110		117
PepsiCo, Inc.
3.60%, 3/1/24 (b)		200		205
Petro-Canada
6.80%, 5/15/38		130		171
Philip Morris International, Inc.
4.50%, 3/20/42		150		151
Phillips 66
5.88%, 5/1/42		25		30
Praxair, Inc.
1.25%, 11/7/18		175		171
QVC, Inc.
4.38%, 3/15/23		150		150
Rockwood Specialties Group, Inc.
4.63%, 10/15/20		135		140
Rowan Cos., Inc.
5.85%, 1/15/44 (b)		75		74
RR Donnelley & Sons Co.
7.88%, 3/15/21		120		132
Salix Pharmaceuticals Ltd.
6.00%, 1/15/21 (a)		100		108
Silgan Holdings, Inc.
5.50%, 2/1/22		100		101
Sinopec Group Overseas Development 2012 Ltd.
2.75%, 5/17/17 (a)		200		205
Spectra Energy Capital LLC
3.30%, 3/15/23		175		167
Target Corp.
3.50%, 7/1/24		75		75
Telefonica Europe BV
8.25%, 9/15/30		184		250
Teva Pharmaceutical Finance IV BV
3.65%, 11/10/21		58		59
Tiffany & Co.
4.90%, 10/1/44 (a)		50		50
Time Warner Cable, Inc.,
4.50%, 9/15/42 (b)		100		99
6.75%, 6/15/39		80		103

	Face Amount (000)		Value (000)
Time Warner, Inc.
7.70%, 5/1/32	$	141	$	195
Toyota Motor Credit Corp.
2.75%, 5/17/21		125		126
Transocean, Inc.
6.38%, 12/15/21		100		107
Trinity Industries, Inc.
4.55%, 10/1/24		200		201
Tyson Foods, Inc.
3.95%, 8/15/24		135		136
Union Pacific Railroad Co.
3.23%, 5/14/26		200		199
United Airlines Pass-Through Trust,
Series A
3.75%, 3/3/28		25		25
4.30%, 2/15/27		225		235
United Rentals North America, Inc.
5.75%, 11/15/24		80		81
United Technologies Corp.
1.80%, 6/1/17		500		508
US Airways Pass-Through Trust
3.95%, 11/15/25		75		76
Verizon Communications, Inc.,
5.01%, 8/21/54 (a)		335		338
5.15%, 9/15/23		100		111
6.55%, 9/15/43		336		420
WM Wrigley Jr Co.
2.90%, 10/21/19 (a)		230		233
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.
5.38%, 3/15/22		115		118
Zimmer Holdings, Inc.
5.75%, 11/30/39		50		59
				18,410
Utilities (9.6%)
Access Midstream Partners LP/ACMP Finance Corp.
4.88%, 5/15/23		125		129
Appalachian Power Co.
7.00%, 4/1/38		150		204
Boston Gas Co.
4.49%, 2/15/42 (a)(b)		125		129
Buckeye Partners LP
4.15%, 7/1/23		175		176
CEZ AS
4.25%, 4/3/22 (a)		200		212
DCP Midstream Operating LP
3.88%, 3/15/23		150		150
DTE Energy Co.,
Series C
3.50%, 6/1/24		200		201
Enel Finance International N.V.
5.13%, 10/7/19 (a)		200		221

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Utilities (cont'd)
Energy Transfer Partners LP,
3.60%, 2/1/23	$	100	$	98
4.90%, 2/1/24		150		157
EnLink Midstream Partners LP
2.70%, 4/1/19		175		176
Enterprise Products Operating LLC
3.35%, 3/15/23		150		148
Exelon Generation Co., LLC
6.25%, 10/1/39		145		169
Jersey Central Power & Light Co.
4.70%, 4/1/24 (a)		200		213
Kinder Morgan Energy Partners LP
4.15%, 2/1/24 (b)		150		148
Kinder Morgan, Inc.
5.63%, 11/15/23 (a)		150		160
Nevada Power Co.,
Series N
6.65%, 4/1/36		150		198
Plains All American Pipeline LP/PAA Finance Corp.
6.70%, 5/15/36		61		78
Sempra Energy
6.00%, 10/15/39		125		156
TransAlta Corp.
4.50%, 11/15/22		235		236
TransCanada PipeLines Ltd.
7.63%, 1/15/39		75		106
Virginia Electric and Power Co.
2.95%, 1/15/22		325		328
				3,793
				37,458
Variable Rate Senior Loan Interests (0.6%)
Industrials (0.6%)
Aspect Software, Inc.,
Term B
7.25%, 11/7/14		96		96
Diamond Resorts Corp.,
Term Loan
5.50%, 12/31/14		75		75
OSG Bulk Ships, Inc.,
Exit Term Loan
5.25%, 2/5/15		50		50
				221
Total Fixed Income Securities (Cost $36,702)				38,002
	Shares
Short-Term Investments (16.2%)
Securities held as Collateral on Loaned Securities (13.0%)
Investment Company (10.5%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		4,143,584		4,144

	Face Amount (000)		Value (000)
Repurchase Agreement (2.5%)
Merrill Lynch & Co., Inc., (Zero Coupon, dated 9/30/14, due 10/1/14; proceeds $982; fully collateralized by various U.S. Government agency securities; 3.00% - 7.00% due 9/15/31 - 9/15/44; valued at $1,002)	$	982	$	982
Total Securities held as Collateral on Loaned Securities (Cost $5,126)				5,126
	Shares
Investment Company (2.3%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $910)		909,744		910
	Face Amount (000)
U.S. Treasury Securities (0.9%)
U.S. Treasury Bills,
0.04%, 2/12/15 (d)(e)	$	150		150
0.05%, 2/12/15 (d)(e)		204		204
Total U.S. Treasury Securities (Cost $354)				354
Total Short-Term Investments (Cost $6,390)				6,390
Total Investments (112.6%) (Cost $43,092) Including $5,316 of Securities Loaned (f)				44,392
Liabilities in Excess of Other Assets (-12.6%)				(4,984	)
Net Assets (100.0%)			$	39,408

(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 September 30, 2014.

(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 September 30, 2014.

(d) Rate shown is the yield to maturity at September 30, 2014.

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

(f) Securities are available for collateral in connection with purchase of 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.
13

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2014:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		114	$	24,948		Dec-14	$	(10	)
U.S. Treasury 5 yr. Note		29		3,430		Dec-14		(8	)
U.S. Treasury Long Bond		11		1,517		Dec-14		12
U.S. Treasury Ultra Long Bond		14		2,135		Dec-14		(31	)
Short:
U.S. Treasury 10 yr. Note		96		(11,966	)	Dec-14		83
							$	46

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 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† (unaudited)
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	200		1.00	%	3/20/19	$	4		$	(4	)	$	—	@	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
Morgan Stanley & Co., LLC* CDX.NA.IG.22	Buy		1,100		1.00		6/20/19		(22	)		5			(17	)	NR
Morgan Stanley & Co., LLC* CDX.NA.IG.22	Buy		775		1.00		6/20/19		(16	)		3			(13	)	NR
		$	3,450					$	(57	)	$	1		$	(56	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at September 30, 2014:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Goldman Sachs International	3 Month LIBOR	Receive		2.42	%	3/22/22	$	642	$	(2	)
JPMorgan Chase Bank NA	3 Month LIBOR	Receive		2.43		3/22/22		311		(1	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.14		7/23/17		2,017		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.06		8/21/17		9,200		43
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.18		9/4/17		4,000		8
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.19		9/10/17		1,100		2
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.71		8/21/19		3,051		25
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.81		9/4/19		1,200		6
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.85		9/10/19		319		1
									$	83

@ 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.

NR Not Rated.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Industrials		46.9	%
Finance		38.8
Utilities		9.7
Other**		4.6
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 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 $43,996,000 with net unrealized appreciation of approximately $46,000. Does not include open swap agreements with net unrealized appreciation of approximately $84,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Corporate Bond Portfolio

Statement of Assets and Liabilities	September 30, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $38,038)	$	39,338
Investment in Security of Affiliated Issuer, at Value (Cost $5,054)		5,054
Total Investments in Securities, at Value (Cost $43,092)		44,392
Cash		211
Interest Receivable		395
Receivable for Investments Sold		283
Receivable for Portfolio Shares Sold		80
Premium Paid on Open Swap Agreements		4
Receivable for Variation Margin on Swap Agreements		3
Tax Reclaim Receivable		—	@
Receivable from Affiliate		—	@
Other Assets		25
Total Assets		45,393
Liabilities:
Collateral on Securities Loaned, at Value		5,337
Payable for Investments Purchased		502
Payable for Professional Fees		22
Payable for Trustees' Fees and Expenses		21
Payable for Advisory Fees		20
Payable for Sub Transfer Agency Fees — Class I		14
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		1
Payable for Portfolio Shares Redeemed		12
Unrealized Depreciation on Swap Agreements		8
Payable for Variation Margin on Futures Contracts		8
Payable for Custodian Fees		5
Premium Received on Open Swap Agreements		3
Payable for Administration Fees		3
Payable for Transfer Agent Fees — Class I		2
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		1
Other Liabilities		25
Total Liabilities		5,985
Net Assets	$	39,408
Net Assets Consist Of:
Paid-in-Capital	$	94,585
Accumulated Undistributed Net Investment Income		466
Accumulated Net Realized Loss		(57,073	)
Unrealized Appreciation (Depreciation) on:
Investments		1,300
Futures Contracts		46
Swap Agreements		84
Net Assets	$	39,408

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Corporate Bond Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2014 (000)
CLASS I:
Net Assets	$	36,598
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		3,291,552
Net Asset Value, Offering and Redemption Price Per Share	$	11.12
CLASS A:
Net Assets	$	405
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		36,465
Net Asset Value, Redemption Price Per Share	$	11.12
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.49
Maximum Offering Price Per Share	$	11.61
CLASS L:
Net Assets	$	2,405
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		216,517
Net Asset Value, Offering and Redemption Price Per Share	$	11.11
⁽¹⁾ Including: Securities on Loan, at Value:	$	5,316

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Corporate Bond Portfolio

Statement of Operations	Year Ended September 30, 2014 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	1,651
Income from Securities Loaned — Net		11
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		1,663
Expenses:
Advisory Fees (Note B)		149
Professional Fees		125
Administration Fees (Note C)		32
Pricing Fees		32
Custodian Fees (Note F)		31
Shareholder Reporting Fees		31
Sub Transfer Agency Fees — Class I		18
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class L		1
Shareholder Services Fees — Class A (Note D)		3
Distribution and Shareholder Services Fees — Class L (Note D)		12
Transfer Agency Fees (Note E)		1
Transfer Agency Fees — Class I (Note E)		8
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		2
Registration Fees		11
Trustees' Fees and Expenses		2
Other Expenses		10
Total Expenses		471
Waiver of Advisory Fees (Note B)		(145	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(26	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Waiver of Shareholder Servicing Fees — Class A (Note D)		(1	)
Net Expenses		297
Net Investment Income		1,366
Realized Gain (Loss):
Investments Sold		934
Futures Contracts		314
Swap Agreements		(23	)
Net Realized Gain		1,225
Change in Unrealized Appreciation (Depreciation):
Investments		938
Futures Contracts		94
Swap Agreements		(281	)
Net Change in Unrealized Appreciation (Depreciation)		751
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		1,976
Net Increase in Net Assets Resulting from Operations	$	3,342

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Corporate Bond Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2014 (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,366		$	1,290
Net Realized Gain		1,225			752
Net Change in Unrealized Appreciation (Depreciation)		751			(2,326	)
Net Increase (Decrease) in Net Assets Resulting from Operations		3,342			(284	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1,066	)		(1,230	)
*Class A:**
Net Investment Income		(33	)		(33	)
*Class H:**
Net Investment Income		—			(3	)**
Class L:
Net Investment Income		(59	)		(73	)
Total Distributions		(1,158	)		(1,339	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		3,095			1,851
Distributions Reinvested		1,066			1,230
Redeemed		(5,724	)		(10,209	)
*Class A:**
Subscribed		700			1,020
Distributions Reinvested		31			33
Conversion from Class H		—			93
Redeemed		(1,596	)		(867	)
*Class H:**
Distributions Reinvested		—			1	**
Conversion to Class A		—			(93	)**
Redeemed		—			(81	)**
Class L:
Subscribed		23			120
Distributions Reinvested		59			73
Redeemed		(459	)		(586	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(2,805	)		(7,415	)
Total Decrease in Net Assets		(621	)		(9,038	)
Net Assets:
Beginning of Period		40,029			49,067
End of Period (Including Accumulated Undistributed Net Investment Income of $466 and $431)	$	39,408		$	40,029
(1) Capital Share Transactions:
Class I:
Shares Subscribed		282			174
Shares Issued on Distributions Reinvested		100			114
Shares Redeemed		(527	)		(948	)
Net Decrease in Class I Shares Outstanding		(145	)		(660	)
*Class A:**
Shares Subscribed		64			93
Shares Issued on Distributions Reinvested		3			3
Conversion from Class H		—			9
Shares Redeemed		(144	)		(80	)
Net Increase (Decrease) in Class A Shares Outstanding		(77	)		25
*Class H:**
Shares Issued on Distributions Reinvested		—			—	@@**
Conversion to Class A		—			(9	)**
Shares Redeemed		—			(7	)**
Net Increase (Decrease) in Class H Shares Outstanding		—			(16	)
Class L:
Shares Subscribed		2			11
Shares Issued on Distributions Reinvested		6			7
Shares Redeemed		(43	)		(55	)
Net Decrease in Class L Shares Outstanding		(35	)		(37	)

@@ Amount is less than 500 shares.

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Corporate Bond Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	10.53		$	10.93		$	10.27		$	10.17		$	9.75
Income (Loss) from Investment Operations:
Net Investment Income†		0.38			0.32			0.36			0.33			0.33
Net Realized and Unrealized Gain (Loss)		0.53			(0.40	)		0.73			0.07			0.49
Total from Investment Operations		0.91			(0.08	)		1.09			0.40			0.82
Distributions from and/or in Excess of:
Net Investment Income		(0.32	)		(0.32	)		(0.43	)		(0.30	)		(0.40	)
Net Asset Value, End of Period	$	11.12		$	10.53		$	10.93		$	10.27		$	10.17
Total Return++		8.79	%		(0.77	)%		10.94	%		4.05	%		8.65	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	36,598		$	36,186		$	44,779		$	62,410		$	79,337
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.70	%+††		1.18	%+^		1.00	%+††		0.80	%+††		0.76	%+††
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		3.47	%+††		2.91	%+^		3.41	%+††		3.27	%+††		3.36	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		50	%		63	%		129	%		224	%		277	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.13	%††		1.21	%		N/A			N/A			N/A
Net Investment Income to Average Net Assets		3.04	%††		2.88	%		N/A			N/A			N/A

† 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.

†† 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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Corporate Bond Portfolio

	Class A*
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	10.53		$	10.92		$	10.27		$	10.16		$	9.74
Income (Loss) from Investment Operations:
Net Investment Income†		0.34			0.30			0.34			0.31			0.31
Net Realized and Unrealized Gain (Loss)		0.53			(0.39	)		0.73			0.08			0.49
Total from Investment Operations		0.87			(0.09	)		1.07			0.39			0.80
Distributions from and/or in Excess of:
Net Investment Income		(0.28	)		(0.30	)		(0.42	)		(0.28	)		(0.38	)
Net Asset Value, End of Period	$	11.12		$	10.53		$	10.92		$	10.27		$	10.16
Total Return++		8.43	%		(0.83	)%		10.69	%		3.99	%		8.50	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	405		$	1,194		$	961		$	408		$	590
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.05	%+††		1.34	%+^		1.15	%+††		0.95	%+††		0.91	%+††
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		3.12	%+††		2.76	%+^		3.26	%+††		3.12	%+††		3.21	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		50	%		63	%		129	%		224	%		277	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.60	%††		1.47	%		1.25	%††		1.05	%††		1.01	%+††
Net Investment Income to Average Net Assets		2.57	%††		2.63	%		3.16	%††		3.02	%††		3.11	%+††

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

† 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.

†† 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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Corporate Bond Portfolio

	Class L
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	10.52		$	10.92		$	10.26		$	10.15		$	9.74
Income (Loss) from Investment Operations:
Net Investment Income†		0.31			0.26			0.30			0.28			0.28
Net Realized and Unrealized Gain (Loss)		0.54			(0.40	)		0.74			0.08			0.48
Total from Investment Operations		0.85			(0.14	)		1.04			0.36			0.76
Distributions from and/or in Excess of:
Net Investment Income		(0.26	)		(0.26	)		(0.38	)		(0.25	)		(0.35	)
Net Asset Value, End of Period	$	11.11		$	10.52		$	10.92		$	10.26		$	10.15
Total Return++		8.15	%		(1.28	)%		10.38	%		3.51	%		8.15	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,405		$	2,649		$	3,149		$	4,080		$	5,508
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.30	%+††		1.69	%+^		1.50	%+††		1.30	%+††		1.26	%+††
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.87	%+††		2.40	%+^		2.91	%+††		2.77	%+††		2.86	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		50	%		63	%		129	%		224	%		277	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.66	%††		1.70	%		N/A			N/A			N/A
Net Investment Income to Average Net Assets		2.51	%††		2.39	%		N/A			N/A			N/A

† 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.

†† 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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements

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.

Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

• 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 following is a summary of the inputs used to value the Portfolio's investments as of September 30, 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	$	—		$	318		$	—	$	318
Collateralized Mortgage Obligation — Agency Collateral Series		—			5			—		5
Corporate Bonds		—			37,458			—		37,458
Variable Rate Senior Loan Interests		—			221			—		221
Total Fixed Income Securities		—			38,002			—		38,002
Short-Term Investments
Investment Company		5,054			—			—		5,054
Repurchase Agreement		—			982			—		982
U.S. Treasury Securities		—			354			—		354
Total Short-Term Investments		5,054			1,336			—		6,390
Futures Contracts		95			—			—		95
Credit Default Swap Agreements		—			8			—		8
Interest Rate Swap Agreements		—			86			—		86
Total Assets		5,149			39,432			—		44,581
Liabilities:
Futures Contracts		(49	)		—			—		(49	)
Credit Default Swap Agreements		—			(7	)		—		(7	)
Interest Rate Swap Agreements		—			(3	)		—		(3	)
Total Liabilities		(49	)		(10	)		—		(59	)
Total	$	5,100		$	39,422		$	—	$	44,522

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

exchange-trading and clearing is occurring on a phased-in basis.

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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2014.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin
on Futures Contracts

Interest Rate Risk

(a)

Swap Agreements

Variation Margin
on Swap Agreements

Credit Risk

(a)

Swap Agreements

Variation Margin
on Swap Agreements

Interest Rate Risk

(a)

Total

189

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin
on Futures Contracts

Interest Rate Risk

(49

)(a)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Credit Risk

)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Interest Rate Risk

)

Swap Agreements

Variation Margin
on Swap Agreements

Credit Risk

)(a)

Total

(59

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	314
Credit Risk	Swap Agreements		38
Interest Rate Risk	Swap Agreements		(61	)
Total		$	291
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	94
Credit Risk	Swap Agreements		(7	)
Interest Rate Risk	Swap Agreements		(274	)
Total		$	(187	)

At September 30, 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	$	—	$	(8	)

(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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2014.

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
Goldman Sachs International		2		—		—		2
JPMorgan Chase Bank NA		1		—		—		1
Total	$	8	$	—	$	—	$	8

For the year ended September 30, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	28,403,000
Swap Agreements:
Average monthly notional amount	$	12,416,000

5. 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.

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 September 30, 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)
$	5,316	(d)	$	—	$	(5,316	)(e)(f)	$	0

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

(e) The Portfolio received cash collateral of approximately $5,337,000, of which approximately $5,126,000 was subsequently invested in a Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of September 30, 2014, there was uninvested cash of approximately $211,000, which is not reflected in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $100,000 in the form of U.S. Government agency securities, 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.

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. When the Portfolio buys an interest in a Senior Loan, it may receive

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

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 year ended September 30, 2014, approximately $145,000 of advisory fees were waived and approximately $27,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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 year ended September 30, 2014, this waiver amounted to approximately $1,000.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $19,366,000 and $22,138,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended September 30, 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 year ended September 30, 2014, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the year ended September 30, 2014 is as follows:

Value September 30, 2013 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2014 (000)
$	4,804			$	17,389			$	17,139			$	1			$	5,054

2014 Distributions Paid From: Ordinary Income (000)				2013 Distributions Paid From: Ordinary Income (000)
$	1,158			$	1,339

Permanent differences, primarily due to basis adjustments for swap transactions and paydown adjustments, resulted in the

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

following reclassifications among the components of net assets at September 30, 2014:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	(173	)		$	173			$	—

At September 30, 2014, 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)
$	473			$	—

At September 30, 2014, the aggregate cost for Federal income tax purposes is approximately $43,092,000. The aggregate gross unrealized appreciation is approximately $1,550,000 and the aggregate gross unrealized depreciation is approximately $250,000 resulting in net unrealized appreciation of approximately $1,300,000.

At September 30, 2014, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	48,923	September 30, 2017
	8,130	September 30, 2018

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Corporate Bond Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Corporate Bond Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Corporate Bond Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 26, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 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 RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• 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 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

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

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

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

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.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

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

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (69)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Michael Bozic (73)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
April
1994

100

Trustee and member of the Hillsdale College Board of Trustees

Kathleen A. Dennis (61)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various non-profit organizations.

Dr. Manuel H. Johnson (65)
c/o Johnson Smick
International, Inc.
220 I Street, N.E.
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

100

Director of NVR, Inc. (home construction).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Joseph J. Kearns (72)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

101

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Michael F. Klein (55)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (78)
522 Fifth Avenue
New York, NY 10036

Chairperson
of the
Board and
Trustee

Chairperson of
the Boards since
July 2006 and
Trustee since
July 1991

100

None.

W. Allen Reed (67)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (82)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

101

Through December 31, 2012, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Position(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (66)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (51)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (47)
522 Fifth Avenue
New York, NY 10036

Chief Compliance Officer

Since
December
1997

Joseph C. Benedetti (49)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (49)
522 Fifth Avenue
New York, NY 10036

Treasurer and Principal Financial
Officer

Treasurer since July 2003 and Principal Financial Officer since September 2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (47)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

IFTCBANN
1043229 EXP 11.28.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Strategist Portfolio

Annual Report

September 30, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Advisory Agreement Approval					4
Investment Overview					6
Portfolio of Investments					9
Statement of Assets and Liabilities					38
Statement of Operations					40
Statements of Changes in Net Assets					41
Financial Highlights					43
Notes to Financial Statements					46
Report of Independent Registered Public Accounting Firm					58
Federal Tax Notice					59
U.S. Privacy Policy					60
Trustee and Officer Information					63

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

October 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Expense Example (unaudited)

Global Strategist Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2014 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/14		Actual Ending Account Value 9/30/14		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	$	1,019.20	$	1,021.46	$	3.64	$	3.65		0.72	%
Global Strategist Portfolio Class A		1,000.00		1,018.10		1,019.60		5.51		5.52		1.09
Global Strategist Portfolio Class L		1,000.00		1,015.10		1,017.20		7.93		7.94		1.57

** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2013, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. The Board noted that the Portfolio's management fee and total expense ratio were lower than its peer group average. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; (ii) management fee was competitive with its peer group average; and (iii) total expense ratio was competitive with its peer group average.

Economies of Scale

Profitability of the Adviser and Affiliates

Other Benefits of the Relationship

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited) (cont'd)

reviewed with the Adviser each of these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.

Resources of the Adviser and Historical Relationship Between the Portfolio and the Adviser

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited)

Global Strategist Portfolio

The Global Strategist Portfolio seeks above-average total return over a market cycle of three to five years.

Performance

For the fiscal year ended September 30, 2014, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 9.37%, net of fees. The Portfolio's Class I shares underperformed both the MSCI All Country World Index, which returned 11.32%, and the Lipper Flexible Portfolio Funds Index, which returned 9.63%, but outperformed the Customized MSIM Global Allocation Index (the "Customized Index," which is comprised of 60% MSCI All Country World Index, 30% Barclays Capital Global Aggregate Bond Index, 5% S&P GSCI Light Energy Index, and 5% Bank of America/Merrill Lynch U.S. Dollar 1-Month LIBID Average Index), which returned 6.66%.

Factors Affecting Performance

• In the 12 months ended September 30, 2014, global equities outperformed bonds and commodities, with the MSCI All Country World Index up 11.3% and the Barclays Capital Global Aggregate Index up 1.2%, while the S&P GSCI Index, a broad index of commodity prices, fell 7.8%.ⁱ (Except where noted, equity market returns are represented by the MSCI regional or country index and are calculated in U.S. dollars.)

• Within equities, the U.S. was the regional outperformer, with the S&P 500 Index rising 19.7% for the period, as economic data strengthened following the first quarter of 2014's weather-related weakness, and the employment picture continued to improve. Eurozone equities underperformed (up 5.8%) on disappointing economic data and weak inflation, most worryingly within core countries. Japanese equities underperformed (up 0.6%), as optimism around the ability of Abenomics to generate sustainably higher economic growth in Japan waned as the weaker yen's positive effects receded, tax hikes crimped growth, and structural reform remained lacking. Emerging market equities underperformed global equities broadly (up 4.3%), with differentiation among countries. India was the largest outperformer (up 37.6%), as Narendra Modi's general election victory contributed to positive sentiment in Indian equities. China mildly

outperformed (up 4.6%), as policymakers loosened credit controls and announced some stimulus measures. Russia was the largest underperformer (down 19.6%), as tensions in Russia and Ukraine escalated.

• Within bonds, yields fell over the course of the year and the yield curve flattened, with the U.S. 10-year Treasury yield falling 11 basis points to 2.51% and the U.S. 30-year Treasury yield falling 48 basis points to 3.21%. While bond yields rose in the fourth quarter of 2013 (with the U.S. 10-year Treasury yield breaking 3% for the first time in over two years), they resumed their decline during 2014, as global economic data disappointments and geopolitical tensions in Russia and the Middle East caused a flight to safe haven assets and the Fed's rhetoric remained dovish (or supportive of a low interest rate environment) through the summer. Peripheral eurozone bond yields rallied over the course of the year, with Greek and Portuguese 10-year bond yields falling by roughly 300 basis points during the year.

• Within currencies, the U.S. dollar rallied, with all of the move happening in the third quarter of 2014. The Russian ruble was the largest relative underperformer (down 18.1%), while the Korean won was the largest gainer (up 1.8%). The euro depreciated by -6.7% and the Japanese yen by -10.5%.

• Regarding the Portfolio's overall performance relative to the Customized Index, our underweight position in commodities contributed to performance, as did our slight underweight position in equities. However, our underweight position in fixed income and our overweight in cash detracted from performance.

• Active positions within equities contributed to performance. Underweight positions in emerging market consumer staples stocks relative to developed market consumer staples stocks, in U.S. real estate investment trusts (REITs) and retail stocks, and in global iron ore mining and aerospace stocks all contributed to performance. Overweight positions in European equities detracted. Each of these positions was hedged.

ⁱ Data sources used in preparation of this commentary include FactSet and Bloomberg LP, data as of September 30, 2014.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

Global Strategist Portfolio

• Active positions within fixed income contributed to performance. Positive performance from our overweight positions in eurozone peripheral sovereign bonds was only partially offset by negative performance from underweight positions in German 10-year Bunds.

• Active positions within commodities negatively impacted performance, as our underweight position in copper detracted slightly.

• Active currency positions positively impacted performance. Within currencies, underweights to the euro and other emerging market and commodity-sensitive currencies such as the New Zealand dollar and Chilean peso added to performance.

Management Strategies

• As of September 30, 2014, we maintain a neutral position in global equities, and underweight positions in fixed income and commodities. Heading into the last quarter of 2014, we remain cautious on risky assets globally. We continue to be more constructive on developed markets than on emerging markets, with a preference for Europe over the U.S. We continue to believe many yield-sensitive assets are overvalued globally, and are likely to re-price as U.S. interest rates are gradually normalized.

• We are neutral on U.S. equities, despite increasing evidence of strong U.S. economic growth, as valuations remain high, earnings are slowing amid a backdrop of potentially peaking margins, and the prospect of higher U.S. interest rates in the next six to nine months could contribute to increased volatility. We expect the Eurozone to stabilize and accelerate into 2015 after a disappointing first half with the help of lower oil, a weaker euro, and moderating austerity.

• With respect to Japan, we expect the market to increasingly recognize that Abenomics' three components — monetary easing, fiscal stimulus and structural reform — have largely failed. This theme is not represented in the portfolio. However, we are actively monitoring it for opportunities to re-initiate bearish positions.

• Emerging market countries' economic growth continues to underwhelm. We expect a continued slowdown in China to further depress emerging market growth, particularly for countries which have benefited from rising commodity prices and exports to China. We continue to believe that the Federal Reserve is behind the curve and likely to tighten policy earlier than the market expects (in the first half 2015, rather the fourth quarter of 2015 as the Fed funds futures market is currently pricing). However, we note that the risk to this view is that, similar to in the late 1990s, global growth deceleration led by Asia, falling commodity prices, disinflation, and a strong U.S. dollar could prevent the Fed from tightening policy, despite strong U.S. domestic growth.

* Minimum Investment

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

Global Strategist Portfolio

Performance Compared to the Morgan Stanley Capital International All Country World Index⁽¹⁾, the Customized MSIM Global Allocation Index⁽²⁾ and the Lipper Flexible Portfolio Funds Index⁽³⁾

	Period Ended September 30, 2014 Total Returns⁽⁴⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁸⁾
Portfolio — Class I Shares w/o sales charges⁽⁵⁾		9.37	%		10.90	%		7.58	%		7.94	%
MSCI All Country World Index		11.32			10.07			7.28			7.78
Customized MSIM Global Allocation Index		6.66			7.07			6.05			—
Lipper Flexible Portfolio Funds Index		9.63			9.59			6.89			7.14
Portfolio — Class A Shares w/o sales charges⁽⁶⁾		9.02			10.60			7.29			6.85
Portfolio — Class A Shares with maximum 5.25% sales charges		3.27			9.42			6.71			6.53
MSCI All Country World Index		11.32			10.07			7.28			6.29
Customized MSIM Global Allocation Index		6.66			7.07			6.05			—
Lipper Flexible Portfolio Funds Index		9.63			9.59			6.89			6.32
Portfolio — Class L Shares w/o sales charges⁽⁷⁾		8.49			—			—			10.24
MSCI All Country World Index		11.32			—			—			12.63
Customized MSIM Global Allocation Index		6.66			—			—			7.38
Lipper Flexible Portfolio Funds Index		9.63			—			—			9.66

⁽¹⁾ The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. "Net dividends" reflects a reduction in dividends after taking into account withholding of taxes by any foreign countries represented in the Index. Returns, including periods prior to January 1, 2001, are calculated using the return data of the MSCI All Country World Index (gross dividends) through December 31, 2000 and the return data of the MSCI All Country World Index (net dividends) after December 31, 2000. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Customized MSIM Global Allocation Index is comprised of 60% MSCI All-Country World Index (benchmark that measures the equity market performance of developed and emerging markets), 30% Barclays Capital Global Aggregate Bond Index (benchmark that provides a broadbased measure of the global investment grade fixed-rate debt markets), 5% S&P GSCI Light Energy Index (benchmark for investment performance in the energy commodity market) and 5% Bank of America/Merrill Lynch US Dollar 1-Month LIBID Average Index (benchmark that tracks the performance of a basket of synthetic assets paying LIBID to a stated maturity). The Customized MSIM Global Allocation Index was added as the portfolio benchmark on October 2, 2013 and is provided for comparative purposes only. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽³⁾ The Lipper Flexible Portfolio Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Flexible Portfolio Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Flexible Portfolio Funds classification.

⁽⁴⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower. The fee waivers and/or expense reimbursements will continue for at least two years from the Reorganization (as defined herein) or until such time as the Fund's Board of Trustees acts to discontinue all or a portion of such waivers and/or reimbursements when it deems such action is appropriate.

⁽⁵⁾ Commenced operations on December 31, 1992.

⁽⁶⁾ Commenced operations on November 1, 1996.

⁽⁷⁾ Commenced operations on April 27, 2012.

⁽⁸⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date or initial offering of the respective share class of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (26.0%)
Agency Adjustable Rate Mortgage (0.0%)
United States (0.0%)
Federal National Mortgage Association,
Conventional Pool:
2.33%, 5/1/35	$	37	$	39
Agency Fixed Rate Mortgages (2.6%)
United States (2.6%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
6.00%, 11/1/37		181		204
6.50%, 5/1/32 - 9/1/32		242		274
7.50%, 5/1/35		10		11
Federal National Mortgage Association,
Conventional Pools:
4.00%, 1/1/42		1,577		1,664
5.00%, 1/1/41 - 3/1/41		1,728		1,920
5.50%, 2/1/38 - 8/1/38		464		520
6.00%, 1/1/38		21		23
6.50%, 12/1/29		33		38
7.00%, 12/1/17 - 2/1/31		501		572
7.50%, 8/1/37		19		23
October TBA:
3.00%, 10/1/29 (a)		469		483
3.50%, 10/1/29 (a)		447		470
4.00%, 10/1/44 (a)		2,505		2,640
4.50%, 10/1/44 (a)		197		213
5.00%, 10/1/44 (a)		185		204
Government National Mortgage Association,
October TBA:
3.50%, 10/20/44 (a)		355		367
4.50%, 10/20/44 (a)		340		369
Various Pools:
3.50%, 12/15/43		570		593
4.00%, 8/20/41 - 11/20/42		987		1,049
4.50%, 8/15/39		189		206
5.50%, 8/15/39		159		177
				12,020
Asset-Backed Securities (0.2%)
United States (0.2%)
CVS Pass-Through Trust,
6.04%, 12/10/28		368		427
Ford Credit Floorplan Master Owner Trust,
1.85%, 2/15/17 (b)(c)		525		528
				955
Collateralized Mortgage Obligations — Agency Collateral Series (0.4%)
United States (0.4%)
Federal Home Loan Mortgage Corporation,
2.40%, 6/25/22		1,625		1,589
2.79%, 1/25/22		75		76
2.97%, 10/25/21		90		92

	Face Amount (000)		Value (000)
IO
0.81%, 1/25/21 (c)	$	671	$	20
IO REMIC
5.90%, 4/15/39 (c)		168		30
Federal National Mortgage Association,
6.45%, 9/25/38 (c)		137		23
				1,830
Commercial Mortgage-Backed Securities (0.8%)
United States (0.8%)
COMM Mortgage Trust,
3.28%, 1/10/46		305		302
4.70%, 8/10/47 (c)		322		339
4.90%, 7/15/47 (b)(c)		152		141
Commercial Mortgage Pass-Through Certificates,
2.82%, 10/15/45		376		369
Extended Stay America Trust,
2.96%, 12/5/31 (b)		325		328
JP Morgan Chase Commercial Mortgage Securities Trust,
4.39%, 7/15/46 (b)		100		108
4.72%, 7/15/47 (b)(c)		745		684
JPMBB Commercial Mortgage Securities Trust,
3.96%, 9/15/47 (b)(c)		205		177
4.71%, 9/15/47 (b)(c)		263		237
4.82%, 8/15/47 (b)(c)		361		336
UBS-Barclays Commercial Mortgage Trust,
3.53%, 5/10/63		255		261
Wells Fargo Commercial Mortgage Trust,
2.92%, 10/15/45		449		444
WF-RBS Commercial Mortgage Trust,
3.99%, 10/15/57 (b)(c)		175		149
				3,875
Corporate Bonds (7.4%)
Australia (0.4%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	400		596
BHP Billiton Finance USA Ltd.,
3.85%, 9/30/23	$	170		177
Macquarie Bank Ltd.,
6.63%, 4/7/21 (b)		270		308
Macquarie Group Ltd.,
6.00%, 1/14/20 (b)		260		292
Origin Energy Finance Ltd.,
3.50%, 10/9/18 (b)		200		205
QBE Insurance Group Ltd.,
2.40%, 5/1/18 (b)		200		200
Wesfarmers Ltd.,
2.98%, 5/18/16 (b)		245		254
				2,032
Belgium (0.1%)
Anheuser-Busch InBev Finance, Inc.,
3.70%, 2/1/24		300		302

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Brazil (0.1%)
Petrobras International Finance Co.,
5.75%, 1/20/20	$	330	$	348
Vale Overseas Ltd.,
6.88%, 11/10/39		50		57
				405
Canada (0.1%)
Barrick Gold Corp.,
4.10%, 5/1/23		100		96
Brookfield Asset Management, Inc.,
5.80%, 4/25/17		295		324
Goldcorp, Inc.,
3.70%, 3/15/23		270		265
				685
Chile (0.1%)
ENTEL Chile SA,
4.75%, 8/1/26 (b)		250		251
4.88%, 10/30/24 (b)		200		205
				456
China (0.1%)
Baidu, Inc.,
3.25%, 8/6/18		225		232
Sinopec Group Overseas Development 2012 Ltd.,
2.75%, 5/17/17 (b)(d)		217		223
Want Want China Finance Ltd.,
1.88%, 5/14/18 (b)(d)		200		196
				651
Colombia (0.1%)
Ecopetrol SA,
5.88%, 9/18/23		270		299
France (0.6%)
Banque Federative du Credit Mutuel SA,
2.00%, 9/19/19	EUR	400		535
BNP Paribas SA,
5.00%, 1/15/21	$	95		106
BPCE SA,
5.15%, 7/21/24 (b)		450		464
Credit Agricole SA,
3.90%, 4/19/21	EUR	300		428
5.88%, 6/11/19		400		607
Veolia Environnement SA,
6.75%, 4/24/19		400		639
				2,779
Germany (0.0%)
Vier Gas Transport GmbH,
3.13%, 7/10/23		100		143
Ireland (0.1%)
CRH America, Inc.,
6.00%, 9/30/16	$	415		454

	Face Amount (000)		Value (000)
Italy (0.3%)
Intesa Sanpaolo SpA,
4.13%, 4/14/20	EUR	400	$	583
Telecom Italia Finance SA,
7.75%, 1/24/33		80		131
UniCredit SpA,
4.25%, 7/29/16		350		474
				1,188
Korea, Republic of (0.0%)
SK Telecom Co., Ltd.,
2.13%, 5/1/18 (b)	$	200		200
Netherlands (0.4%)
ABN Amro Bank N.V.,
2.50%, 10/30/18 (b)		300		303
3.63%, 10/6/17	EUR	200		277
Cooperatieve Centrale Raiffeisen- Boerenleenbank BA,
3.95%, 11/9/22	$	250		251
Series G
3.75%, 11/9/20	EUR	300		421
ING Bank N.V.,
5.25%, 6/5/18		300		449
5.80%, 9/25/23 (b)	$	240		265
				1,966
Spain (0.3%)
Banco Bilbao Vizcaya Argentaria SA,
3.63%, 1/18/17	EUR	350		477
Telefonica Emisiones SAU,
4.71%, 1/20/20		500		744
				1,221
Sweden (0.3%)
Nordea Bank AB,
4.00%, 3/29/21		480		690
Skandinaviska Enskilda Banken AB,
1.75%, 3/19/18 (b)	$	200		199
Swedbank AB,
1.75%, 3/12/18 (b)		270		269
				1,158
Switzerland (0.2%)
Credit Suisse,
6.00%, 2/15/18		90		101
Glencore Funding LLC,
4.13%, 5/30/23 (b)		200		198
Novartis Capital Corp.,
3.40%, 5/6/24		370		377
UBS AG,
7.50%, 7/15/25		380		478
				1,154
Thailand (0.1%)
PTT Exploration & Production PCL,
3.71%, 9/16/18 (b)		240		250

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Thailand (cont'd)
PTT PCL,
3.38%, 10/25/22 (b)	$	230	$	222
				472
United Kingdom (1.3%)
Abbey National Treasury Services PLC,
3.63%, 10/14/17	EUR	725		981
4.00%, 3/13/24	$	120		122
Bank of Scotland PLC,
4.63%, 6/8/17	EUR	350		495
Barclays Bank PLC,
6.00%, 1/23/18 - 1/14/21		275		404
BAT International Finance PLC,
9.50%, 11/15/18 (b)	$	155		198
Diageo Capital PLC,
1.50%, 5/11/17		215		216
Experian Finance PLC,
2.38%, 6/15/17 (b)		400		407
GlaxoSmithKline Capital PLC,
2.85%, 5/8/22		252		248
Heathrow Funding Ltd.,
4.60%, 2/15/18	EUR	300		428
HSBC Holdings PLC,
6.00%, 6/10/19		450		689
6.38%, 9/17/24 (c)(e)	$	200		200
Imperial Tobacco Finance PLC,
8.38%, 2/17/16	EUR	400		560
Lloyds Bank PLC,
6.50%, 3/24/20		250		388
Nationwide Building Society,
6.25%, 2/25/20 (b)	$	300		351
Royal Bank of Scotland PLC (The),
5.50%, 3/23/20	EUR	150		232
Standard Chartered PLC,
3.85%, 4/27/15 (b)	$	260		265
				6,184
United States (2.8%)
Altria Group, Inc.,
2.85%, 8/9/22		25		24
5.38%, 1/31/44		155		166
Amgen, Inc.,
5.15%, 11/15/41		99		105
Apple, Inc.,
2.40%, 5/3/23		225		213
4.45%, 5/6/44		175		179
AT&T, Inc.,
6.30%, 1/15/38		150		178
Bank of America Corp.,
4.00%, 4/1/24		250		253
5.00%, 1/21/44		250		265
MTN
4.20%, 8/26/24		100		99

	Face Amount (000)		Value (000)
Boston Properties LP,
3.85%, 2/1/23	$	25	$	26
Burlington Northern Santa Fe LLC,
4.55%, 9/1/44		195		196
Capital One Bank, USA NA,
3.38%, 2/15/23		546		536
Citigroup, Inc.,
3.75%, 6/16/24		400		399
3.88%, 10/25/23		300		305
6.13%, 5/15/18		107		121
6.68%, 9/13/43		20		25
CNA Financial Corp.,
5.75%, 8/15/21		45		51
Coca-Cola Co.,
3.20%, 11/1/23		250		251
DirecTV Holdings LLC/DirecTV Financing Co., Inc.,
3.80%, 3/15/22		75		76
Discover Bank,
2.00%, 2/21/18		345		344
Enterprise Products Operating LLC,
3.35%, 3/15/23		275		271
Five Corners Funding Trust,
4.42%, 11/15/23 (b)		350		367
Ford Motor Credit Co., LLC,
4.21%, 4/15/16		305		319
Freeport-McMoRan, Inc.,
3.88%, 3/15/23		70		69
General Electric Capital Corp.,
5.30%, 2/11/21		275		310
Genworth Holdings, Inc.,
7.20%, 2/15/21		305		360
Gilead Sciences, Inc.,
4.80%, 4/1/44		150		158
Goldman Sachs Group, Inc. (The),
3.63%, 1/22/23		675		671
Hartford Financial Services Group, Inc.,
5.50%, 3/30/20		25		28
Hewlett-Packard Co.,
3.75%, 12/1/20		250		259
4.65%, 12/9/21		35		38
Home Depot, Inc.,
5.88%, 12/16/36		100		123
HSBC USA, Inc.,
3.50%, 6/23/24		100		100
International Business Machines Corp.,
1.95%, 2/12/19		300		300
Johnson Controls, Inc.,
3.63%, 7/2/24		60		60
JPMorgan Chase & Co.,
3.20%, 1/25/23		615		601
3.88%, 2/1/24		200		205
Kinder Morgan Energy Partners LP,
4.15%, 2/1/24		125		124

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
L-3 Communications Corp.,
4.75%, 7/15/20	$	255	$	276
Liberty Mutual Group, Inc.,
4.85%, 8/1/44 (b)		100		100
Medtronic, Inc.,
3.63%, 3/15/24		250		256
Merck & Co., Inc.,
2.80%, 5/18/23		250		244
Monongahela Power Co.,
5.40%, 12/15/43 (b)		100		115
Nationwide Financial Services, Inc.,
5.38%, 3/25/21 (b)		25		28
NBC Universal Media LLC,
4.38%, 4/1/21		175		191
Omnicom Group, Inc.,
3.63%, 5/1/22		60		61
Oracle Corp.,
3.40%, 7/8/24		175		175
Pacific LifeCorp,
6.00%, 2/10/20 (b)		25		28
PepsiCo, Inc.,
3.60%, 3/1/24		250		257
Plains All American Pipeline LP/PAA Finance Corp.,
6.70%, 5/15/36		190		242
8.75%, 5/1/19		220		279
Prudential Financial, Inc.,
6.63%, 12/1/37		150		189
Rowan Cos., Inc.,
5.85%, 1/15/44		150		148
Synchrony Financial,
4.25%, 8/15/24		150		150
Target Corp.,
3.50%, 7/1/24		200		201
Time Warner Cable, Inc.,
4.50%, 9/15/42		175		173
Tyson Foods, Inc.,
3.95%, 8/15/24		250		251
UnitedHealth Group, Inc.,
4.25%, 3/15/43		150		147
Verizon Communications, Inc.,
5.01%, 8/21/54 (b)		195		197
6.55%, 9/15/43		196		245
Viacom, Inc.,
5.85%, 9/1/43		225		251
Wells Fargo & Co.,
3.45%, 2/13/23		395		389
Zimmer Holdings, Inc.,
5.75%, 11/30/39		150		176
				12,944
				34,693

	Face Amount (000)		Value (000)
Mortgages — Other (0.3%)
United Kingdom (0.2%)
Holmes Master Issuer PLC,
2.11%, 10/15/54 (b)(c)	GBP	616	$	1,030
United States (0.1%)
Banc of America Alternative Loan Trust,
5.86%, 10/25/36	$	52		36
5.91%, 10/25/36 (c)		99		68
6.00%, 4/25/36		37		38
Chaseflex Trust,
6.00%, 2/25/37		46		39
First Horizon Alternative Mortgage Securities Trust,
6.25%, 8/25/36		26		22
GSR Mortgage Loan Trust,
5.75%, 1/25/37		45		44
Lehman Mortgage Trust,
5.50%, 11/25/35		16		16
6.50%, 9/25/37		53		47
RALI Trust,
0.65%, 3/25/35 (c)		52		39
				349
				1,379
Sovereign (11.7%)
Bermuda (0.1%)
Bermuda Government International Bond,
4.85%, 2/6/24 (b)		390		405
Canada (1.0%)
Canadian Government Bond,
3.25%, 6/1/21	CAD	5,000		4,877
Germany (0.8%)
Bundesrepublik Deutschland,
4.25%, 7/4/39	EUR	1,450		2,725
4.75%, 7/4/34		450		860
				3,585
Hungary (0.2%)
Hungary Government International Bond,
5.38%, 3/25/24	$	130		137
5.75%, 11/22/23		800		871
				1,008
Indonesia (0.1%)
Indonesia Government International Bond,
5.88%, 1/15/24 (b)		600		663
Ireland (0.9%)
Ireland Government Bond,
3.40%, 3/18/24	EUR	1,680		2,444
3.90%, 3/20/23		1,225		1,846
				4,290
Italy (1.4%)
Italy Buoni Poliennali Del Tesoro,
4.00%, 9/1/20		375		546
4.50%, 2/1/18 - 3/1/19		2,375		3,387

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Italy (cont'd)
5.00%, 3/1/22	$	270	$	416
5.50%, 11/1/22		1,250		1,987
				6,336
Japan (1.3%)
Japan Finance Organization for Municipalities,
1.90%, 6/22/18	JPY	70,000		681
Japan Government Ten Year Bond,
1.10%, 6/20/21		75,000		722
Japan Government Thirty Year Bond,
1.70%, 6/20/33		395,000		3,872
2.00%, 9/20/40		57,000		571
				5,846
Kazakhstan (0.2%)
KazMunayGas National Co., JSC,
6.38%, 4/9/21	$	1,000		1,083
Korea, Republic of (0.2%)
Korea Development Bank (The),
3.88%, 5/4/17		400		424
Korea Finance Corp.,
4.63%, 11/16/21		630		687
				1,111
Mexico (0.8%)
Mexican Bonos,
7.50%, 6/3/27	MXN	22,000		1,795
10.00%, 12/5/24		8,000		771
Petroleos Mexicanos,
4.88%, 1/24/22	$	1,070		1,139
				3,705
New Zealand (0.8%)
New Zealand Government Bond,
3.00%, 4/15/20	NZD	4,770		3,532
Norway (0.1%)
Norway Government Bond,
3.75%, 5/25/21	NOK	1,500		260
Poland (0.7%)
Poland Government Bond,
5.75%, 10/25/21	PLN	7,600		2,733
Poland Government International Bond,
5.00%, 3/23/22	$	670		738
				3,471
Portugal (0.0%)
Portugal Obrigacoes do Tesouro OT,
4.20%, 10/15/16 (b)	EUR	120		164
Qatar (0.2%)
Qatar Government International Bond,
4.00%, 1/20/15 (b)	$	900		910
South Africa (0.1%)
South Africa Government Bond,
7.25%, 1/15/20	ZAR	1,000		87
7.75%, 2/28/23		4,300		372
				459

	Face Amount (000)		Value (000)
Spain (1.1%)
Spain Government Bond,
4.20%, 1/31/37	EUR	330	$	480
4.40%, 10/31/23 (b)		2,250		3,421
5.85%, 1/31/22		680		1,117
				5,018
Supernational (0.4%)
European Investment Bank,
2.15%, 1/18/27	JPY	157,000		1,670
European Union,
2.75%, 4/4/22	EUR	300		435
				2,105
Sweden (0.4%)
Sweden Government Bond,
1.50%, 11/13/23	SEK	12,300		1,726
4.25%, 3/12/19		450		73
				1,799
United Kingdom (0.9%)
United Kingdom Gilt,
3.75%, 9/7/21	GBP	400		720
4.25%, 6/7/32 - 9/7/39		1,700		3,324
				4,044
				54,671
U.S. Treasury Securities (2.6%)
United States (2.6%)
U.S. Treasury Bond,
3.50%, 2/15/39	$	4,300		4,577
U.S. Treasury Notes,
0.88%, 1/31/17 - 2/28/17		6,380		6,387
1.50%, 6/30/16		1,200		1,221
				12,185
Total Fixed Income Securities (Cost $119,733)				121,647
	Shares
Common Stocks (59.3%)
Australia (1.7%)
AGL Energy Ltd.		4,451		53
Alumina Ltd. (f)		28,733		43
Amcor Ltd.		11,036		109
AMP Ltd.		31,080		149
Arrium Ltd.		14,100		4
Asciano Ltd.		7,805		41
ASX Ltd.		1,539		48
Australia & New Zealand Banking Group Ltd.		27,880		755
BHP Billiton Ltd.		28,547		847
BlueScope Steel Ltd. (f)		3,657		17
Brambles Ltd.		13,059		109
Coca-Cola Amatil Ltd.		4,624		36
Cochlear Ltd.		499		30
Commonwealth Bank of Australia		12,195		804
Computershare Ltd.		4,195		45
Crown Resorts Ltd.		5,745		69

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

		Shares		Value (000)
Australia (cont'd)
CSL Ltd.			4,783	$	311
Dexus Property Group REIT			42,125		41
DuluxGroup Ltd.			5,415		26
Echo Entertainment Group Ltd.			7,295		21
Fairfax Media Ltd.			32,187		22
Fortescue Metals Group Ltd.			10,837		33
Goodman Group REIT			10,844		49
GPT Group REIT			17,370		59
Incitec Pivot Ltd.			13,918		33
Insurance Australia Group Ltd.			19,798		106
Leighton Holdings Ltd.			1,366		23
Lend Lease Group REIT			5,862		74
Macquarie Group Ltd.			2,700		136
Mirvac Group REIT			25,584		38
National Australia Bank Ltd.			23,506		670
Newcrest Mining Ltd. (f)			4,209		39
Orica Ltd.			3,553		59
Origin Energy Ltd.			9,394		123
Orora Ltd.			11,036		16
QBE Insurance Group Ltd.			13,529		138
Recall Holdings Ltd.			2,611		13
Rio Tinto Ltd.			3,744		195
Santos Ltd.			8,544		102
Scentre Group REIT (f)			41,036		118
Shopping Centres Australasia Property Group REIT			2,263		3
Sonic Healthcare Ltd.			3,160		49
Stockland REIT			24,146		83
Suncorp Group Ltd.			11,119		137
Sydney Airport			2,861		11
TABCORP Holdings Ltd.			7,097		22
Telstra Corp., Ltd.			41,748		194
Toll Holdings Ltd.			6,015		30
Transurban Group			12,301		83
Treasury Wine Estates Ltd.			7,395		27
Wesfarmers Ltd.			10,200		376
Westfield Corp. REIT			18,583		121
Westpac Banking Corp.			23,864		672
Woodside Petroleum Ltd.			5,210		185
Woolworths Ltd.			10,835		325
WorleyParsons Ltd.	��		1,584		21
					7,943
Austria (0.0%)
BUWOG AG (f)			183		4
Erste Group Bank AG			3,466		79
Immofinanz AG (f)			3,664		10
Raiffeisen Bank International AG			1,454		32
Voestalpine AG			1,329		53
					178
Belgium (0.4%)
Ageas			3,005		100

	Shares		Value (000)
Anheuser-Busch InBev N.V.		7,694	$	856
Colruyt SA		995		44
Delhaize Group SA		3,372		235
Groupe Bruxelles Lambert SA		1,457		133
KBC Groep N.V. (f)		6,130		326
Umicore SA		1,567		69
				1,763
Canada (2.3%)
Agnico-Eagle Mines Ltd.		1,600		46
Agrium, Inc.		1,500		133
Bank of Montreal		5,100		375
Bank of Nova Scotia		8,800		544
Barrick Gold Corp.		9,400		138
BCE, Inc.		5,300		227
Blackberry Ltd. (f)		4,200		42
Bombardier, Inc.		12,800		43
Brookfield Asset Management, Inc., Class A		5,500		247
Cameco Corp.		4,100		72
Canadian Imperial Bank of Commerce		3,700		332
Canadian National Railway Co.		8,600		611
Canadian Natural Resources Ltd.		10,300		400
Canadian Oil Sands Ltd.		2,700		50
Canadian Pacific Railway Ltd.		1,600		332
Cenovus Energy, Inc.		7,100		191
Crescent Point Energy Corp.		2,100		76
Eldorado Gold Corp.		5,400		36
Enbridge, Inc.		8,200		393
Encana Corp.		7,600		161
Fairfax Financial Holdings Ltd.		300		134
First Quantum Minerals Ltd.		5,100		99
Fortis, Inc.		1,300		40
Goldcorp, Inc.		7,100		164
Great-West Lifeco, Inc.		4,100		118
Husky Energy, Inc.		2,600		71
IGM Financial, Inc.		1,800		78
Imperial Oil Ltd.		2,600		123
Intact Financial Corp.		1,500		97
Kinross Gold Corp. (f)		10,100		33
Lightstream Resources Ltd.		1,136		5
Loblaw Cos. Ltd.		673		34
Magna International, Inc.		2,600		247
Manulife Financial Corp.		18,100		348
National Bank of Canada		3,000		137
Pembina Pipeline Corp.		400		17
Penn West Petroleum Ltd.		3,700		25
Potash Corp. of Saskatchewan, Inc.		8,200		284
Power Corp. of Canada		4,100		114
Power Financial Corp.		3,400		104
Rogers Communications, Inc., Class B		3,800		142
Royal Bank of Canada		12,300		879
Shaw Communications, Inc., Class B		3,700		91
Silver Wheaton Corp.		3,500		70

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Canada (cont'd)
SNC-Lavalin Group, Inc.		1,800	$	83
Sun Life Financial, Inc.		5,900		214
Suncor Energy, Inc.		14,100		510
Talisman Energy, Inc.		10,200		88
Teck Resources Ltd., Class B		4,700		89
Thomson Reuters Corp.		3,700		135
Tim Hortons, Inc.		3,100		244
Toronto-Dominion Bank (The)		16,200		800
Touchstone Exploration, Inc. (f)		650		1
TransAlta Corp.		2,300		24
TransCanada Corp.		6,300		325
Valeant Pharmaceuticals International, Inc. (f)		300		39
Yamana Gold, Inc.		7,200		43
				10,498
Chile (0.0%)
Antofagasta PLC		2,716		32
Denmark (0.4%)
AP Moeller - Maersk A/S		30		70
AP Moeller - Maersk A/S Series B		55		131
Carlsberg A/S Series B		227		20
Coloplast A/S		120		10
Danske Bank A/S		6,044		164
DSV A/S		3,452		97
Novo Nordisk A/S		19,475		932
Novozymes A/S Series B		2,771		120
TDC A/S		537		4
Vestas Wind Systems A/S (f)		3,486		136
				1,684
Finland (0.2%)
Fortum Oyj		6,094		149
Kesko Oyj, Class B		76		3
Kone Oyj, Class B		5,074		204
Nokia Oyj		34,796		297
Nokian Renkaat Oyj		1,401		42
Sampo, Class A		3,582		174
UPM-Kymmene Oyj		11,663		166
				1,035
France (2.7%)
Accor SA		1,422		63
Aeroports de Paris (ADP)		480		57
Air Liquide SA		3,070		374
Alcatel-Lucent (f)		39,117		121
Alstom SA (f)		4,118		141
AXA SA		16,884		416
BNP Paribas SA		23,110		1,533
Bouygues SA		2,699		88
Bureau Veritas SA		2,324		51
Cap Gemini SA		1,918		138
Carrefour SA		6,238		193
Casino Guichard Perrachon SA		67		7
CGG SA (f)		2,024		18

	Shares		Value (000)
Christian Dior SA		710	$	119
Cie de St-Gobain		2,371		109
Cie Generale des Etablissements Michelin Series B		1,855		175
Credit Agricole SA		20,490		309
Danone SA		7,355		492
Edenred		1,823		45
Electricite de France SA		3,256		107
Essilor International SA		1,528		168
Eutelsat Communications SA		799		26
GDF Suez		12,237		307
Groupe Eurotunnel SA		7,563		92
ICADE REIT		86		7
JCDecaux SA		651		21
Kering		1,357		274
L'Oreal SA		2,690		427
Lafarge SA		4,474		322
LVMH Moet Hennessy Louis Vuitton SA		2,297		373
Natixis		11,504		79
Orange SA		19,419		292
Pernod Ricard SA		2,105		238
Peugeot SA (f)		1,221		16
Publicis Groupe SA		1,047		72
Remy Cointreau SA		30		2
Renault SA		1,898		137
Sanofi		11,589		1,311
SES SA		2,416		84
Societe Generale SA		15,837		809
Societe Television Francaise 1		1,176		16
Sodexo		1,223		120
Suez Environnement Co.		4,193		71
Technip SA		933		79
Thales SA		1,262		67
Total SA		20,957		1,362
Unibail-Rodamco SE REIT		1,616		416
Vallourec SA		2,417		111
Veolia Environnement SA		5,613		99
Vinci SA		4,786		278
Vivendi SA (f)		16,236		392
				12,624
Germany (2.0%)
Adidas AG		1,738		130
Allianz SE (Registered)		4,059		658
Axel Springer SE		168		9
BASF SE		10,277		943
Bayer AG (Registered)		6,754		946
Bayerische Motoren Werke AG		2,799		301
Beiersdorf AG		970		81
Commerzbank AG (f)		15,833		237
Continental AG		533		101
Daimler AG (Registered)		6,189		475
Deutsche Bank AG (Registered)		11,761		413
Deutsche Boerse AG		1,204		81

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Germany (cont'd)
Deutsche Lufthansa AG (Registered)		3,253	$	51
Deutsche Post AG (Registered)		5,009		161
Deutsche Telekom AG (Registered)		25,997		394
E.ON SE		15,975		292
Esprit Holdings Ltd. (d)		12,508		16
Fraport AG Frankfurt Airport Services Worldwide		268		18
Fresenius Medical Care AG & Co., KGaA		1,557		109
Fresenius SE & Co., KGaA		3,141		155
Henkel AG & Co., KGaA		1,575		147
Henkel AG & Co., KGaA (Preference)		2,044		204
Infineon Technologies AG		10,693		111
K&S AG (Registered)		1,306		37
Lanxess AG		827		46
Linde AG		1,359		261
Merck KGaA		1,048		97
Metro AG (f)		1,211		40
Muenchener Rueckversicherungs AG (Registered)		1,719		340
Osram Licht AG (f)		765		28
Porsche Automobil Holding SE (Preference)		779		62
ProSiebenSat.1 Media AG (Registered)		535		21
QIAGEN N.V. (f)		2,514		57
RWE AG		3,402		133
SAP SE		9,219		665
Siemens AG (Registered)		7,650		912
Suedzucker AG		507		8
ThyssenKrupp AG (f)		4,900		129
TUI AG		1,503		22
Volkswagen AG		290		60
Volkswagen AG (Preference)		1,450		301
				9,252
Greece (0.1%)
Aegean Airlines SA (f)		547		4
Alpha Bank AE (f)		52,415		41
Athens Water Supply & Sewage Co., SA (The)		513		5
Ellaktor SA (f)		1,606		6
Eurobank Ergasias SA (f)		111,133		44
Eurobank Properties Real Estate Investment Co. REIT		554		6
FF Group (f)		456		17
Fourlis Holdings SA (f)		417		2
GEK Terna Holding Real Estate Construction SA (f)		931		4
Hellenic Exchanges - Athens Stock Exchange SA Holding (f)		1,347		10
Hellenic Petroleum SA (f)		1,202		8
Hellenic Telecommunications Organization SA (f)		3,650		48
Intralot SA-Integrated Lottery Systems & Services (f)		921		2
JUMBO SA (f)		1,895		24
Lamda Development SA (f)		678		4
Marfin Investment Group Holdings SA (f)		5,423		2
Metka SA		293		4
Motor Oil Hellas Corinth Refineries SA		528		5

	Shares		Value (000)
Mytilineos Holdings SA (f)		1,227	$	10
National Bank of Greece SA (f)		18,771		55
OPAP SA		2,699		35
Piraeus Bank SA (f)		24,238		41
Public Power Corp. SA (f)		1,889		22
Terna Energy SA (f)		293		1
Titan Cement Co., SA		456		11
				411
Hong Kong (0.6%)
AIA Group Ltd.		67,200		347
Bank of East Asia Ltd.		17,427		71
BOC Hong Kong Holdings Ltd.		36,500		116
Cheung Kong Holdings Ltd.		14,000		231
CLP Holdings Ltd.		19,000		153
Global Brands Group Holding Ltd. (f)		40,000		9
Hang Lung Group Ltd.		8,000		40
Hang Lung Properties Ltd.		22,000		63
Hang Seng Bank Ltd.		11,500		185
Henderson Land Development Co., Ltd.		14,408		93
Hong Kong & China Gas Co., Ltd.		52,707		114
Hong Kong Exchanges and Clearing Ltd.		10,822		233
Hutchison Whampoa Ltd.		21,000		254
Kerry Logistics Network Ltd.		3,500		5
Kerry Properties Ltd.		7,000		23
Link REIT (The)		21,033		121
MTR Corp., Ltd.		15,595		61
New World Development Co., Ltd.		39,632		46
Power Assets Holdings Ltd.		14,500		128
Sands China Ltd.		28,400		148
Sino Land Co., Ltd.		22,444		35
Sun Hung Kai Properties Ltd.		14,323		203
Swire Pacific Ltd., Class A		6,500		84
Swire Properties Ltd.		4,550		14
Wharf Holdings Ltd.		13,200		94
Wheelock & Co., Ltd.		10,000		48
				2,919
Ireland (0.0%)
Bank of Ireland (f)		299,332		118
Kerry Group PLC, Class A		176		12
				130
Italy (0.7%)
Assicurazioni Generali SpA		11,606		244
Atlantia SpA		3,202		79
Banca Monte dei Paschi di Siena SpA (f)		53,950		71
Banco Popolare SC (f)		6,530		96
Enel Green Power SpA		11,984		31
Enel SpA		57,892		307
Eni SpA		22,322		532
Fiat SpA (f)		9,996		96
Finmeccanica SpA (f)		1,205		12
Intesa Sanpaolo SpA		243,499		736
Luxottica Group SpA		1,123		58

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Italy (cont'd)
Prysmian SpA		1,210	$	23
Saipem SpA (f)		2,154		46
Snam SpA		20,778		115
Telecom Italia SpA (f)		90,977		104
Telecom Italia SpA		64,353		57
Terna Rete Elettrica Nazionale SpA		9,469		48
UniCredit SpA		83,548		661
Unione di Banche Italiane SCPA		15,735		132
				3,448
Japan (4.9%)
Advantest Corp.		1,600		21
Aeon Co., Ltd.		9,500		95
Aisin Seiki Co., Ltd.		2,800		101
Ajinomoto Co., Inc.		12,000		200
Asahi Glass Co., Ltd.		12,000		65
Asahi Group Holdings Ltd.		4,500		130
Asahi Kasei Corp.		19,000		154
Astellas Pharma, Inc.		19,000		283
Bank of Yokohama Ltd. (The)		15,000		83
Bridgestone Corp.		6,600		218
Calbee, Inc.		100		3
Canon, Inc.		10,400		339
Central Japan Railway Co.		1,700		230
Chiba Bank Ltd. (The)		10,000		70
Chubu Electric Power Co., Inc. (f)		5,800		67
Chugai Pharmaceutical Co., Ltd.		3,400		98
Chugoku Electric Power Co., Inc. (The)		2,600		33
Coca-Cola West Co., Ltd.		100		1
Dai Nippon Printing Co., Ltd.		8,000		80
Dai-ichi Life Insurance Co., Ltd. (The)		1,000		15
Daiichi Sankyo Co., Ltd.		6,800		107
Daikin Industries Ltd.		2,800		174
Daito Trust Construction Co., Ltd.		1,000		118
Daiwa House Industry Co., Ltd.		8,000		144
Daiwa Securities Group, Inc.		21,000		166
Denso Corp.		6,100		281
Dentsu, Inc.		2,200		84
East Japan Railway Co.		3,600		270
Eisai Co., Ltd.		2,800		113
Electric Power Development Co., Ltd.		1,900		62
FamilyMart Co., Ltd.		100		4
FANUC Corp.		1,800		325
Fast Retailing Co., Ltd.		500		167
FUJIFILM Holdings Corp.		5,700		175
Fujitsu Ltd.		19,000		117
Hankyu Hanshin Holdings, Inc.		24,000		140
Hitachi Ltd.		47,000		359
Hokkaido Electric Power Co., Inc. (f)		2,900		24
Hokuriku Electric Power Co.		2,700		35
Honda Motor Co., Ltd.		1,100		38
Honda Motor Co., Ltd. ADR		13,695		469
Hoya Corp.		4,200		141

	Shares		Value (000)
Ibiden Co., Ltd.		1,400	$	27
Inpex Corp.		4,200		59
Isetan Mitsukoshi Holdings Ltd.		3,700		48
Isuzu Motors Ltd.		500		7
ITOCHU Corp.		15,500		189
Japan Real Estate Investment Corp. REIT		12		62
Japan Steel Works Ltd. (The)		3,000		12
Japan Tobacco, Inc.		13,600		442
JFE Holdings, Inc.		4,600		92
JGC Corp.		2,000		55
JSR Corp.		2,100		37
JX Holdings, Inc.		2,800		13
Kansai Electric Power Co., Inc. (The) (f)		4,900		46
Kao Corp.		6,900		269
Kawasaki Heavy Industries Ltd.		26,000		104
KDDI Corp.		7,500		451
Keikyu Corp.		7,000		58
Keio Corp.		7,000		52
Keyence Corp.		500		217
Kintetsu Corp.		29,000		98
Kirin Holdings Co., Ltd.		11,900		158
Kobe Steel Ltd.		49,000		80
Komatsu Ltd.		9,800		227
Konica Minolta, Inc.		3,500		38
Kubota Corp.		13,000		205
Kuraray Co., Ltd.		3,500		41
Kyocera Corp.		3,200		149
Kyushu Electric Power Co., Inc. (f)		2,700		29
Lawson, Inc.		100		7
LIXIL Group Corp.		3,900		83
Makita Corp.		1,100		62
Marubeni Corp.		21,000		144
Mazda Motor Corp.		3,400		85
MEIJI Holdings Co., Ltd.		100		8
Mitsubishi Chemical Holdings Corp.		15,500		76
Mitsubishi Corp.		12,800		262
Mitsubishi Electric Corp.		19,000		253
Mitsubishi Estate Co., Ltd.		12,000		270
Mitsubishi Heavy Industries Ltd.		37,000		238
Mitsubishi Motors Corp.		6,400		78
Mitsui & Co., Ltd.		19,300		304
Mitsui Fudosan Co., Ltd.		9,000		276
Mitsui OSK Lines Ltd.		12,000		38
Mizuho Financial Group, Inc.		144,700		258
MS&AD Insurance Group Holdings, Inc.		4,000		87
Murata Manufacturing Co., Ltd.		2,200		250
NGK Insulators Ltd.		3,000		71
Nidec Corp.		2,200		149
Nikon Corp.		3,500		51
Nintendo Co., Ltd.		1,000		109
Nippon Building Fund, Inc. REIT		12		63
Nippon Electric Glass Co., Ltd.		4,000		19
Nippon Express Co., Ltd.		15,000		63

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Japan (cont'd)
Nippon Steel Sumitomo Metal Corp.		80,000	$	208
Nippon Telegraph & Telephone Corp.		5,600		348
Nippon Yusen KK		24,000		63
Nissan Motor Co., Ltd.		23,900		233
Nisshin Seifun Group, Inc.		440		4
Nissin Foods Holdings Co., Ltd.		100		5
Nitto Denko Corp.		1,700		93
Nomura Holdings, Inc.		36,100		215
NSK Ltd.		7,000		100
NTT Data Corp.		2,100		76
NTT DoCoMo, Inc.		14,700		245
Odakyu Electric Railway Co., Ltd.		12,000		110
OJI Holdings Corp.		9,000		34
Olympus Corp. (f)		2,400		86
Omron Corp.		1,900		86
Ono Pharmaceutical Co., Ltd.		1,000		89
Oriental Land Co., Ltd.		100		19
ORIX Corp.		10,500		145
Osaka Gas Co., Ltd.		29,000		117
Otsuka Holdings Co., Ltd.		400		14
Panasonic Corp.		18,700		222
Rakuten, Inc.		10,000		115
Resona Holdings, Inc.		7,300		41
Ricoh Co., Ltd.		8,000		86
Rohm Co., Ltd.		800		50
Secom Co., Ltd.		2,100		125
Sekisui House Ltd.		8,000		94
Seven & I Holdings Co., Ltd.		9,800		380
Sharp Corp. (f)		10,000		28
Shikoku Electric Power Co., Inc. (f)		3,800		49
Shin-Etsu Chemical Co., Ltd.		3,300		216
Shionogi & Co., Ltd.		4,400		101
Shiseido Co., Ltd.		5,200		86
Shizuoka Bank Ltd. (The)		10,000		103
SMC Corp.		600		165
Softbank Corp.		7,400		519
Sompo Japan Nipponkoa Holdings, Inc.		400		10
Sony Corp.		900		16
Sony Corp. ADR		9,035		163
Sumitomo Chemical Co., Ltd.		15,000		53
Sumitomo Corp.		11,700		129
Sumitomo Electric Industries Ltd.		16,600		245
Sumitomo Metal Mining Co., Ltd.		6,000		84
Sumitomo Mitsui Financial Group, Inc.		13,000		530
Sumitomo Mitsui Trust Holdings, Inc.		30,000		125
Sumitomo Realty & Development Co., Ltd.		6,000		214
Suntory Beverage & Food Ltd.		200		7
Suzuki Motor Corp.		4,200		139
T&D Holdings, Inc.		5,800		74
Takeda Pharmaceutical Co., Ltd.		7,400		322
TDK Corp.		1,000		56
Terumo Corp.		4,600		110
Tobu Railway Co., Ltd.		23,000		116
Tohoku Electric Power Co., Inc.		4,600		52

	Shares		Value (000)
Tokio Marine Holdings, Inc.		4,900	$	152
Tokyo Electric Power Co., Inc. (f)		9,500		33
Tokyo Electron Ltd.		1,500		98
Tokyo Gas Co., Ltd.		26,000		146
Tokyu Corp.		12,000		79
Toppan Printing Co., Ltd.		8,000		57
Toray Industries, Inc.		19,000		126
Toshiba Corp.		42,000		195
Toyota Industries Corp.		2,500		121
Toyota Motor Corp.		27,300		1,609
Trend Micro, Inc.		1,200		41
Unicharm Corp.		6,000		137
West Japan Railway Co.		2,300		103
Yahoo! Japan Corp.		19,100		73
Yakult Honsha Co., Ltd.		200		11
Yamada Denki Co., Ltd.		9,500		28
Yamato Holdings Co., Ltd.		6,600		123
				22,615
Kazakhstan (0.0%)
Kazakhmys PLC (f)		2,888		12
Netherlands (0.7%)
Akzo Nobel N.V.		4,136		283
ArcelorMittal		12,177		168
ASML Holding N.V.		2,380		237
CNH Industrial N.V.		6,659		53
Fugro N.V. CVA		657		20
Heineken Holding N.V.		120		8
Heineken N.V.		3,790		284
ING Groep N.V. CVA (f)		45,698		653
Koninklijke Ahold N.V.		11,740		190
Koninklijke DSM N.V.		3,186		197
Koninklijke KPN N.V. (f)		6,177		20
Koninklijke Philips N.V.		11,422		364
Koninklijke Vopak N.V.		1,006		54
PostNL N.V. (f)		4,654		20
Randstad Holding N.V.		1,207		56
TNT Express N.V.		4,151		26
Unilever N.V. CVA		16,310		649
				3,282
Norway (0.3%)
Akastor ASA		1,833		7
Aker Solutions ASA (b)(f)		1,833		18
DnB ASA		11,838		222
Kvaerner ASA		1,677		3
Norsk Hydro ASA		13,781		77
Orkla ASA		11,153		101
REC Silicon ASA (f)		6,482		3
Seadrill Ltd.		328		9
Statoil ASA		13,168		359
Subsea 7 SA		3,127		45
Telenor ASA		16,272		357
Yara International ASA		2,039		102
				1,303

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Poland (0.0%)
Jeronimo Martins SGPS SA		9,761	$	107
Portugal (0.2%)
Altri SGPS SA		2,495		7
Banco BPI SA (f)		27,337		58
Banco Comercial Portugues SA (f)		1,243,522		163
Banco Espirito Santo SA (Registered) (f)		192,146		7
BANIF - Banco Internacional do Funchal SA (f)		1,098,476		11
CTT - Correios de Portugal SA		4,233		41
EDP - Energias de Portugal SA		39,852		174
Galp Energia SGPS SA		9,936		161
Impresa SGPS SA (f)		998		1
Mota-Engil SGPS SA		5,647		36
NOS SGPS		6,625		40
Portucel SA		2,203		9
Portugal Telecom SGPS SA (Registered)		72,608		153
REN - Redes Energeticas Nacionais SGPS SA		5,377		18
Semapa-Sociedade de Investimento e Gestao		454		6
Sonae		34,319		50
Teixeira Duarte SA		2,438		3
				938
Russia (0.3%)
Gazprom OAO ADR		42,906		302
Lukoil OAO ADR		3,827		195
Magnit OJSC GDR		1,831		106
MegaFon OAO GDR		629		16
MMC Norilsk Nickel OJSC ADR		3,702		69
Mobile Telesystems OJSC ADR		3,600		54
NovaTek OAO (Registered GDR)		702		73
Rosneft OAO (Registered GDR)		9,468		55
Sberbank of Russia ADR		24,086		190
Severstal OAO GDR		1,156		12
Sistema JSFC GDR		739		5
Surgutneftegas OJSC ADR		11,119		74
Tatneft OAO ADR		1,669		59
Uralkali OJSC (Registerd GDR)		2,362		42
VTB Bank OJSC (Registerd GDR)		18,306		36
				1,288
South Africa (0.1%)
SABMiller PLC		11,933		663
Spain (2.5%)
Abertis Infraestructuras SA		12,358		244
ACS Actividades de Construccion y Servicios SA		3,511		135
Amadeus IT Holding SA, Class A		5,400		202
Banco Bilbao Vizcaya Argentaria SA		205,626		2,481
Banco de Sabadell SA		89,733		266
Banco Popular Espanol SA		29,127		178
Banco Santander SA		391,017		3,759
Bankia SA (f)		57,079		107
CaixaBank SA		48,840		297
Distribuidora Internacional de Alimentacion SA		19,214		138
EDP Renovaveis SA		4,976		34

	Shares		Value (000)
Enagas SA		4,460	$	144
Ferrovial SA		6,878		133
Gas Natural SDG SA		5,948		175
Grifols SA		2,531		104
Grifols SA, Class B		126		4
Iberdrola SA		103,127		739
Inditex SA		27,630		763
International Consolidated Airlines Group SA (f)		13,928		83
Red Electrica Corp., SA		3,217		279
Repsol SA		16,546		393
Telefonica SA		71,322		1,104
				11,762
Sweden (0.9%)
Assa Abloy AB, Class B		3,279		169
Atlas Copco AB, Class A		9,926		285
Atlas Copco AB, Class B		7,174		186
Electrolux AB, Class B		2,950		78
Hennes & Mauritz AB, Class B		10,362		430
Husqvarna AB, Class B		5,449		39
Investor AB, Class B		11,790		417
Millicom International Cellular SA SDR		1,326		106
Modern Times Group AB, Class B		443		14
Nordea Bank AB		26,050		339
Sandvik AB		15,296		173
Skandinaviska Enskilda Banken AB		14,182		189
Skanska AB, Class B		3,281		68
SKF AB, Class B		6,298		132
Svenska Cellulosa AB SCA, Class B		9,267		221
Svenska Handelsbanken AB, Class A		5,479		258
Swedbank AB, Class A		4,898		123
Swedish Match AB		4,441		144
Telefonaktiebolaget LM Ericsson, Class B		25,830		328
TeliaSonera AB		31,426		217
Volvo AB, Class B		8,272		90
				4,006
Switzerland (2.7%)
ABB Ltd. (Registered) (f)		37,474		843
Actelion Ltd. (Registered) (f)		1,056		124
Adecco SA (Registered) (f)		1,374		93
Aryzta AG (f)		102		9
Barry Callebaut AG (Registered) (f)		2		2
Chocoladefabriken Lindt & Spruengli AG		1		5
Cie Financiere Richemont SA (Registered)		5,331		438
Coca-Cola HBC AG (f)		590		13
Credit Suisse Group AG (Registered) (f)		16,331		453
Geberit AG (Registered)		894		289
Givaudan SA (Registered) (f)		99		158
Holcim Ltd. (Registered) (f)		327		24
Julius Baer Group Ltd. (f)		2,309		104
Kuehne & Nagel International AG (Registered)		732		93
Lonza Group AG (Registered) (f)		523		63
Nestle SA (Registered)		41,900		3,083

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Switzerland (cont'd)
Novartis AG (Registered)		23,572	$	2,226
Roche Holding AG (Genusschein)		6,415		1,902
SGS SA (Registered)		60		125
Sonova Holding AG (Registered)		957		153
Swatch Group AG (The)		353		168
Swiss Re AG (f)		1,336		107
Swisscom AG (Registered)		745		423
Syngenta AG (Registered)		914		291
Transocean Ltd.		3,245		105
UBS AG (Registered) (f)		30,443		531
Zurich Insurance Group AG (f)		2,528		754
				12,579
United Kingdom (5.7%)
3i Group PLC		17,668		110
Admiral Group PLC		3,778		79
Aggreko PLC		2,431		61
AMEC PLC		3,969		71
Anglo American PLC		12,293		276
ARM Holdings PLC		14,750		217
Associated British Foods PLC		2,278		99
AstraZeneca PLC		16,441		1,184
Aviva PLC		32,168		273
Babcock International Group PLC		4,000		71
BAE Systems PLC		51,079		390
Barclays PLC		165,488		610
BG Group PLC		32,584		602
BHP Billiton PLC		20,867		580
BP PLC		189,666		1,394
British American Tobacco PLC		21,825		1,232
British Land Co., PLC REIT		12,968		148
British Sky Broadcasting Group PLC		8,242		118
BT Group PLC		102,679		632
Burberry Group PLC		4,196		103
Cairn Energy PLC (f)		6,451		18
Capita PLC		6,586		124
Centrica PLC		52,229		261
Compass Group PLC		19,815		320
Diageo PLC		27,686		801
Experian PLC		11,449		183
G4S PLC		14,808		60
GlaxoSmithKline PLC		58,621		1,343
Glencore PLC (f)		65,300		363
HSBC Holdings PLC		161,033		1,634
Imperial Tobacco Group PLC		11,465		495
Inmarsat PLC		4,106		47
Intertek Group PLC		1,847		78
Investec PLC		9,538		80
ITV PLC		32,244		109
J Sainsbury PLC		1,451		6
Johnson Matthey PLC		2,335		111
Land Securities Group PLC REIT		12,437		209

	Shares		Value (000)
Legal & General Group PLC		64,615	$	240
Lloyds Banking Group PLC (f)		379,266		473
Lonmin PLC (f)		1,989		6
Man Group PLC		15,236		29
Marks & Spencer Group PLC		10,082		66
National Grid PLC		35,017		504
Next PLC		1,962		210
Old Mutual PLC		76,950		227
Pearson PLC		12,902		259
Petrofac Ltd.		3,181		53
Prudential PLC		31,720		708
Randgold Resources Ltd.		924		63
Reckitt Benckiser Group PLC		7,675		666
Reed Elsevier PLC		3,587		57
Rio Tinto PLC		13,589		668
Rolls-Royce Holdings PLC (f)		34,143		534
Royal Bank of Scotland Group PLC (f)		20,621		123
Royal Dutch Shell PLC, Class A		35,881		1,372
Royal Dutch Shell PLC, Class B		27,048		1,069
RSA Insurance Group PLC (f)		15,957		125
Serco Group PLC		5,878		27
Shire PLC		5,464		473
Signet Jewelers Ltd.		402		46
Smith & Nephew PLC		10,250		173
Smiths Group PLC		6,229		128
SSE PLC		17,723		444
Standard Chartered PLC		21,901		405
Standard Life PLC (f)		18,540		125
Tate & Lyle PLC		544		5
Tesco PLC		88,122		266
TUI Travel PLC		15,728		99
Tullow Oil PLC		8,851		92
Unilever PLC		14,806		620
Vedanta Resources PLC		1,623		26
Vodafone Group PLC		330,304		1,095
WM Morrison Supermarkets PLC		22,809		62
Wolseley PLC		3,226		170
WPP PLC		28,743		578
				26,778
United States (29.9%)
3M Co.		2,391		339
Aaron's, Inc.		1,865		45
Abbott Laboratories		9,467		394
AbbVie, Inc.		9,622		556
Abercrombie & Fitch Co., Class A		249		9
Accenture PLC, Class A		4,625		376
ACCO Brands Corp. (f)		104		1
Actavis plc (f)		702		169
Actuant Corp., Class A		1,472		45
Acuity Brands, Inc.		381		45
Adobe Systems, Inc. (f)		4,763		330
ADT Corp. (The)		504		18

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Advance Auto Parts, Inc.		606	$	79
Advanced Micro Devices, Inc. (f)		3,480		12
AES Corp.		993		14
Aetna, Inc.		3,858		312
Aflac, Inc.		301		18
Agilent Technologies, Inc.		3,065		175
Air Products & Chemicals, Inc.		277		36
Airgas, Inc.		294		33
Akamai Technologies, Inc. (f)		1,512		90
Alaska Air Group, Inc.		1,047		46
Alcoa, Inc.		4,780		77
Alexander & Baldwin, Inc.		1,262		45
Alexion Pharmaceuticals, Inc. (f)		1,888		313
Allegheny Technologies, Inc.		635		24
Allegion PLC		1,299		62
Allergan, Inc.		3,053		544
Allstate Corp. (The)		743		46
Alpha Natural Resources, Inc. (f)		984		2
Altera Corp.		5,441		195
Altria Group, Inc.		13,961		641
Amazon.com, Inc. (f)		1,870		603
AMC Networks, Inc., Class A (f)		21		1
Ameren Corp.		2,892		111
American Electric Power Co., Inc.		5,294		276
American Express Co.		4,491		393
American Tower Corp. REIT		4,460		418
Ameriprise Financial, Inc.		2,879		355
AmerisourceBergen Corp.		4,695		363
AMETEK, Inc.		2,019		101
Amgen, Inc.		8,205		1,152
Amphenol Corp., Class A		206		21
Anadarko Petroleum Corp.		3,741		379
Analog Devices, Inc.		4,757		235
Analogic Corp.		602		38
Andersons, Inc. (The)		743		47
Annaly Capital Management, Inc. REIT		2,758		29
Aon PLC		200		18
Apache Corp.		3,374		317
Apollo Education Group, Inc., Class A (f)		736		19
Apple, Inc.		65,763		6,626
Applied Materials, Inc.		9,149		198
ArcBest Corp.		1,219		45
Arch Coal, Inc.		22,831		48
Archer-Daniels-Midland Co.		4,632		237
AT&T, Inc.		36,851		1,299
Automatic Data Processing, Inc.		2,070		172
AutoZone, Inc. (f)		257		131
Avago Technologies Ltd.		1,865		162
AvalonBay Communities, Inc. REIT		1,767		249
Avery Dennison Corp.		1,848		83
Avon Products, Inc.		5,924		75
Baker Hughes, Inc.		4,595		299

	Shares		Value (000)
Balchem Corp.		809	$	46
Ball Corp.		999		63
Bank of America Corp.		111,137		1,895
Bank of New York Mellon Corp. (The)		13,284		514
Baxter International, Inc.		6,001		431
BB&T Corp.		7,560		281
Becton Dickinson and Co.		2,700		307
Bed Bath & Beyond, Inc. (f)		1,780		117
Belden, Inc.		705		45
Berkshire Hathaway, Inc., Class B (f)		854		118
Best Buy Co., Inc.		1,746		59
Biogen Idec, Inc. (f)		2,166		717
Blackhawk Network Holdings, Inc. (f)		95		3
BlackRock, Inc.		1,187		390
Boeing Co. (The)		4,219		537
Boston Properties, Inc. REIT		1,616		187
Boston Scientific Corp. (f)		15,580		184
Bristol-Myers Squibb Co.		12,627		646
Broadcom Corp., Class A		6,952		281
Brookfield Property Partners LP		2,480		52
Brown-Forman Corp., Class B		161		15
Bunge Ltd.		901		76
C.H. Robinson Worldwide, Inc.		1,527		101
CA, Inc.		2,375		66
Cablevision Systems Corp.		3,512		61
Cabot Oil & Gas Corp.		1,448		47
Callaway Golf Co.		2,457		18
Cameron International Corp. (f)		2,123		141
Campbell Soup Co.		437		19
Cantel Medical Corp.		568		20
Capital One Financial Corp.		4,477		365
Cardinal Health, Inc.		4,410		330
CareFusion Corp. (f)		298		13
CarMax, Inc. (f)		977		45
Carnival Corp.		2,609		105
Cash America International, Inc.		874		38
Catamaran Corp. (f)		200		8
Caterpillar, Inc.		5,587		553
CBRE Group, Inc., Class A (f)		7,089		211
CBS Corp., Class B		7,301		391
Celadon Group, Inc.		801		16
Celanese Corp. Series A		320		19
Celgene Corp. (f)		7,772		737
CenterPoint Energy, Inc.		5,676		139
CenturyLink, Inc.		4,610		188
Cerner Corp. (f)		3,037		181
CF Industries Holdings, Inc.		756		211
Charles Schwab Corp. (The)		8,133		239
Chesapeake Energy Corp.		5,334		123
Chevron Corp.		11,865		1,416
Chipotle Mexican Grill, Inc. (f)		223		149
Chubb Corp. (The)		284		26

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Church & Dwight Co., Inc.		143	$	10
Cigna Corp.		3,556		322
Cimarex Energy Co.		364		46
Cintas Corp.		1,494		105
CIRCOR International, Inc.		419		28
Cisco Systems, Inc.		52,742		1,328
CIT Group, Inc.		2,055		94
Citigroup, Inc.		19,537		1,012
Citrix Systems, Inc. (f)		2,079		148
Cliffs Natural Resources, Inc.		977		10
Clorox Co. (The)		1,695		163
CME Group, Inc.		211		17
Coach, Inc.		1,753		62
Coca-Cola Co.		40,123		1,712
Coca-Cola Enterprises, Inc.		2,278		101
Cognizant Technology Solutions Corp., Class A (f)		6,618		296
Colgate-Palmolive Co.		11,656		760
Comcast Corp., Class A		15,474		832
Comcast Corp. Special Class A		4,375		234
Comerica, Inc.		222		11
ConAgra Foods, Inc.		4,101		135
Concho Resources, Inc. (f)		780		98
ConocoPhillips		8,765		671
CONSOL Energy, Inc.		3,320		126
Consolidated Edison, Inc.		2,586		147
Constellation Brands, Inc., Class A (f)		505		44
Cooper Cos., Inc. (The)		297		46
Corning, Inc.		5,584		108
Costco Wholesale Corp.		7,506		941
Covidien PLC		2,747		238
CR Bard, Inc.		1,182		169
Crimson Wine Group Ltd. (f)		181		2
Crown Castle International Corp.		3,396		273
Crown Holdings, Inc. (f)		700		31
CST Brands, Inc.		1,609		58
CSX Corp.		7,808		250
Cubic Corp.		740		35
Cummins, Inc.		2,121		280
CVS Health Corp.		3,057		243
Cytec Industries, Inc.		967		46
D.R. Horton, Inc.		2,223		46
Danaher Corp.		5,000		380
Darden Restaurants, Inc.		724		37
DaVita HealthCare Partners, Inc. (f)		1,747		128
Deere & Co.		3,418		280
Delta Air Lines, Inc.		1,272		46
Deltic Timber Corp.		169		11
Denbury Resources, Inc.		934		14
DENTSPLY International, Inc.		1,224		56
Devon Energy Corp.		2,622		179
DeVry Education Group, Inc.		21		1
Diamond Offshore Drilling, Inc.		43		1

	Shares		Value (000)
DIRECTV, Class A (f)		9,292	$	804
Discover Financial Services		4,169		268
Discovery Communications, Inc., Class A (f)		1,842		70
Discovery Communications, Inc., Class C (f)		4,848		181
Dollar General Corp. (f)		186		11
Dollar Tree, Inc. (f)		780		44
Dominion Resources, Inc.		6,923		478
Dover Corp.		226		18
Dow Chemical Co. (The)		2,480		130
Dr. Pepper Snapple Group, Inc.		1,324		85
DTE Energy Co.		1,790		136
Duke Energy Corp.		5,562		416
Dun & Bradstreet Corp. (The)		826		97
Eagle Materials, Inc.		456		46
Eastman Chemical Co.		282		23
Eaton Corp., PLC		2,648		168
eBay, Inc. (f)		9,267		525
Ecolab, Inc.		1,768		203
Edison International		4,627		259
Edwards Lifesciences Corp. (f)		472		48
EI du Pont de Nemours & Co.		1,872		134
Eli Lilly & Co.		7,044		457
EMC Corp.		20,497		600
Emerson Electric Co.		5,765		361
Encore Wire Corp.		526		19
Energizer Holdings, Inc.		65		8
Engility Holdings, Inc. (f)		18		1
Entergy Corp.		1,590		123
EOG Resources, Inc.		5,605		555
EQT Corp.		1,560		143
Equifax, Inc.		1,761		132
Equity Residential REIT		3,433		211
Estee Lauder Cos., Inc. (The), Class A		3,809		285
Exelis, Inc.		227		4
Exelon Corp.		8,830		301
Expedia, Inc.		873		76
Expeditors International of Washington, Inc.		756		31
Express Scripts Holding Co. (f)		8,934		631
Exxon Mobil Corp.		28,986		2,726
Fair Isaac Corp.		836		46
Family Dollar Stores, Inc.		297		23
Fastenal Co.		2,071		93
FedEx Corp.		2,205		356
Fidelity National Information Services, Inc.		111		6
Fifth Third Bancorp		10,571		212
Financial Engines, Inc.		1,380		47
First Solar, Inc. (f)		295		19
FirstEnergy Corp.		3,956		133
Fiserv, Inc. (f)		1,736		112
Flowserve Corp.		1,100		78
Fluor Corp.		826		55
FMC Corp.		1,082		62
FMC Technologies, Inc. (f)		2,871		156

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Ford Motor Co.		11,829	$	175
Franklin Resources, Inc.		4,208		230
Freeport-McMoRan, Inc.		3,360		110
Frontier Communications Corp.		11,447		75
GameStop Corp., Class A		636		26
Gannett Co., Inc.		233		7
Gap, Inc. (The)		1,796		75
General Dynamics Corp.		1,541		196
General Electric Co.		25,978		666
General Growth Properties, Inc. REIT		1,446		34
General Mills, Inc.		6,649		335
Genuine Parts Co.		111		10
Gilead Sciences, Inc. (f)		13,161		1,401
Global Payments, Inc.		654		46
Goldman Sachs Group, Inc. (The)		5,452		1,001
Google, Inc., Class A (f)		2,083		1,226
Google, Inc., Class C (f)		2,083		1,203
Green Plains, Inc.		1,219		46
H&R Block, Inc.		4,237		131
Halliburton Co.		8,238		531
Harman International Industries, Inc.		43		4
Hartford Financial Services Group, Inc.		328		12
Hasbro, Inc.		176		10
HCP, Inc. REIT		1,986		79
Health Care, Inc. REIT		817		51
Heartland Express, Inc.		1,950		47
Heartland Payment Systems, Inc.		975		47
Helmerich & Payne, Inc.		1,080		106
Henry Schein, Inc. (f)		780		91
Herbalife Ltd.		92		4
Hershey Co. (The)		912		87
Hess Corp.		1,639		155
Hewlett-Packard Co.		13,606		483
Hologic, Inc. (f)		1,696		41
Home Depot, Inc.		1,531		140
Honeywell International, Inc.		6,030		562
Hormel Foods Corp.		152		8
Hospira, Inc. (f)		2,035		106
Host Hotels & Resorts, Inc. REIT		10,071		215
Hudson City Bancorp, Inc.		222		2
Humana, Inc.		1,027		134
Huntington Bancshares, Inc.		1,000		10
Huntington Ingalls Industries, Inc.		59		6
IHS, Inc., Class A (f)		772		97
Illinois Tool Works, Inc.		2,874		243
Illumina, Inc. (f)		742		122
Ingersoll-Rand PLC		1,227		69
Intel Corp.		22,676		790
Intercontinental Exchange, Inc.		778		152
Interface, Inc.		2,232		36
International Business Machines Corp.		9,271		1,760
International Flavors & Fragrances, Inc.		253		24

	Shares		Value (000)
International Game Technology		3,403	$	57
International Paper Co.		930		44
International Speedway Corp., Class A		693		22
Interpublic Group of Cos., Inc. (The)		6,001		110
Intuit, Inc.		3,722		326
Intuitive Surgical, Inc. (f)		787		363
Invacare Corp.		857		10
Invesco Ltd.		4,481		177
Iron Mountain, Inc.		2,891		94
ITT Corp.		219		10
Jabil Circuit, Inc.		222		4
Jacobs Engineering Group, Inc. (f)		1,051		51
Janus Capital Group, Inc.		111		2
JB Hunt Transport Services, Inc.		228		17
JC Penney Co., Inc. (f)		222		2
JM Smucker Co. (The)		993		98
Johnson & Johnson		21,501		2,292
Johnson Controls, Inc.		2,548		112
Jones Lang LaSalle, Inc.		366		46
Joy Global, Inc.		241		13
JPMorgan Chase & Co.		47,777		2,878
Juniper Networks, Inc.		6,931		154
KB Home		3,017		45
KBR, Inc.		1,302		25
Kellogg Co.		2,711		167
Keurig Green Mountain, Inc.		144		19
KeyCorp		13,315		177
Kimberly-Clark Corp.		4,844		521
Kimco Realty Corp. REIT		2,819		62
KLA-Tencor Corp.		1,089		86
Knowles Corp. (f)		113		3
Kohl's Corp.		2,049		125
Kraft Foods Group, Inc.		4,082		230
Kroger Co. (The)		8,391		436
L Brands, Inc.		2,531		170
L-3 Communications Holdings, Inc.		111		13
Laboratory Corp. of America Holdings (f)		872		89
Lam Research Corp.		842		63
Landstar System, Inc.		644		46
Las Vegas Sands Corp.		2,435		151
Legg Mason, Inc.		2,064		106
Lennar Corp., Class A		1,175		46
Leucadia National Corp.		2,612		62
Lexmark International, Inc., Class A		111		5
Li & Fung Ltd. (d)		40,000		45
Liberty Global PLC, Class A (f)		2,541		108
Liberty Global PLC Series C (f)		7,009		287
Liberty Property Trust REIT		629		21
Linear Technology Corp.		1,999		89
Lockheed Martin Corp.		1,083		198
Loews Corp.		1,790		75
Lorillard, Inc.		3,718		223
Lowe's Cos., Inc.		7,573		401

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
LyondellBasell Industries N.V., Class A		1,054	$	115
M&T Bank Corp.		1,232		152
Macerich Co. (The) REIT		287		18
Macy's, Inc.		173		10
Mallinckrodt PLC (f)		387		35
Manpowergroup, Inc.		1,629		114
Marathon Oil Corp.		4,605		173
Marathon Petroleum Corp.		2,403		203
Marriott International, Inc., Class A		2,025		142
Marriott Vacations Worldwide Corp. (f)		194		12
Marsh & McLennan Cos., Inc.		786		41
Marvell Technology Group Ltd.		3,549		48
Mastercard, Inc., Class A		12,308		910
Mattel, Inc.		1,865		57
Maxim Integrated Products, Inc.		1,870		57
MAXIMUS, Inc.		1,144		46
McCormick & Co., Inc.		126		8
McDonald's Corp.		6,382		605
McGraw Hill Financial, Inc.		3,915		331
McKesson Corp.		2,713		528
Mead Johnson Nutrition Co.		2,047		197
MeadWestvaco Corp.		232		9
Medtronic, Inc.		10,568		655
Merck & Co., Inc.		22,442		1,330
MetLife, Inc.		1,070		57
MGM Resorts International (f)		2,834		65
Microchip Technology, Inc.		1,003		47
Micron Technology, Inc. (f)		6,596		226
Microsoft Corp.		47,120		2,184
Minerals Technologies, Inc.		737		45
Molson Coors Brewing Co., Class B		1,745		130
Mondelez International, Inc., Class A		11,819		405
Monsanto Co.		3,386		381
Monster Beverage Corp. (f)		149		14
Moody's Corp.		1,455		137
Mosaic Co. (The)		1,808		80
Motorola Solutions, Inc.		1,599		101
Murphy Oil Corp.		1,114		63
Murphy USA, Inc. (f)		228		12
Mylan, Inc. (f)		2,537		115
Nabors Industries Ltd.		1,991		45
NASDAQ OMX Group, Inc. (The)		3,392		144
National Oilwell Varco, Inc.		4,789		364
Navient Corp.		6,330		112
NetApp, Inc.		4,216		181
Netflix, Inc. (f)		325		147
New York Community Bancorp, Inc.		5,371		85
Newfield Exploration Co. (f)		936		35
Newmont Mining Corp.		5,346		123
News Corp., Class A (f)		4,591		75
News Corp., Class B (f)		925		15
NextEra Energy, Inc.		3,687		346

	Shares		Value (000)
NII Holdings, Inc. (f)		1,686	$	—	@
NIKE, Inc., Class B		3,726		332
NiSource, Inc.		64		3
Noble Corp. PLC		1,071		24
Noble Energy, Inc.		3,500		239
Nordstrom, Inc.		310		21
Norfolk Southern Corp.		4,630		517
Northern Trust Corp.		33		2
Northrop Grumman Corp.		1,039		137
NOW, Inc. (f)		1,047		32
Nucor Corp.		1,066		58
NVIDIA Corp.		4,256		79
O'Reilly Automotive, Inc. (f)		1,233		185
Occidental Petroleum Corp.		8,817		848
Olympic Steel, Inc.		276		6
Omnicom Group, Inc.		2,361		163
ONE Gas, Inc.		742		25
ONEOK, Inc.		3,370		221
Oracle Corp.		29,311		1,122
Owens-Illinois, Inc. (f)		262		7
PACCAR, Inc.		3,326		189
Pall Corp.		735		62
Paragon Offshore PLC (f)		323		2
Patterson Cos., Inc.		294		12
Paychex, Inc.		2,153		95
Peabody Energy Corp.		3,023		37
Pentair PLC		189		12
People's United Financial, Inc.		667		10
Pepco Holdings, Inc.		94		3
PepsiCo, Inc.		10,446		972
PerkinElmer, Inc.		1,227		53
Perrigo Co., PLC		822		123
PetSmart, Inc.		286		20
Pfizer, Inc.		45,990		1,360
PG&E Corp.		4,237		191
Philip Morris International, Inc.		11,813		985
Phillips 66		4,593		373
Pioneer Natural Resources Co.		1,457		287
Pitney Bowes, Inc.		3,281		82
Plum Creek Timber Co., Inc. REIT		958		37
PNC Financial Services Group, Inc. (The)		5,169		442
Power Integrations, Inc.		840		45
PPG Industries, Inc.		322		63
PPL Corp.		5,262		173
Praxair, Inc.		1,829		236
Precision Castparts Corp.		1,387		329
Priceline Group, Inc. (f)		258		299
PrivateBancorp, Inc.		1,547		46
Procter & Gamble Co. (The)		27,883		2,335
Progressive Corp. (The)		259		7
ProLogis, Inc. REIT		4,809		181
Prudential Financial, Inc.		200		18
Public Service Enterprise Group, Inc.		5,294		197

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares			Value (000)
United States (cont'd)
Public Storage REIT		3,366		$	558
PVH Corp.		378			46
QEP Resources, Inc.		2,945			91
Qualcomm, Inc.		15,526			1,161
Quest Diagnostics, Inc.		1,378			84
Ralph Lauren Corp.		47			8
Range Resources Corp.		2,279			155
Rayonier Advanced Materials		175			6
Rayonier, Inc. REIT		625			19
Raytheon Co.		1,174			119
Regency Centers Corp. REIT		251	��		14
Regeneron Pharmaceuticals, Inc. (f)		114			41
Regions Financial Corp.		17,979			180
Republic Services, Inc.		3,658			143
Reynolds American, Inc.		3,762			222
Robert Half International, Inc.		2,060			101
Rockwell Automation, Inc.		1,762			194
Rockwell Collins, Inc.		1,032			81
Roper Industries, Inc.		572			84
Ross Stores, Inc.		1,750			132
Rouse Properties, Inc. REIT		71			1
Royal Caribbean Cruises Ltd.		1,878			126
RR Donnelley & Sons Co.		3,504			58
Ryland Group, Inc. (The)		1,347			45
Safeway, Inc.		577			20
Salesforce.com, Inc. (f)		5,396			310
SanDisk Corp.		3,518			345
Schlumberger Ltd.		13,225			1,345
Scripps Networks Interactive, Inc., Class A		881			69
Sealed Air Corp.		287			10
Sempra Energy		2,603			274
Seventy Seven Energy, Inc. (f)		295			7
Sherwin-Williams Co. (The)		61			13
Sigma-Aldrich Corp.		606			82
Simon Property Group, Inc. REIT		5,728			942
Skyworks Solutions, Inc.		795			46
SLM Corp.		6,330			54
SM Energy Co.		581			45
Sonic Automotive, Inc., Class A		1,982			49
Southern Co. (The)		8,130			355
Southwest Airlines Co.		2,050			69
Southwestern Energy Co. (f)		4,262			149
Spectra Energy Corp.		5,522			217
Sprint Corp. (f)		28,434			180
St. Jude Medical, Inc.		4,136			249
Standex International Corp.		298			22
Stanley Black & Decker, Inc.		258			23
Staples, Inc.		6,938			84
Starbucks Corp.		5,752			434
Starwood Hotels & Resorts Worldwide, Inc.		884			74
State Street Corp.		3,568			263
Stericycle, Inc. (f)		817			95

	Shares		Value (000)
Stewart Information Services Corp.		599	$	18
Stryker Corp.		3,774		305
SunTrust Banks, Inc.		6,117		233
Symantec Corp.		7,862		185
Sysco Corp.		9,035		343
T-Mobile US, Inc. (f)		116		3
T. Rowe Price Group, Inc.		3,731		292
Target Corp.		2,888		181
TE Connectivity Ltd.		3,400		188
Tenaris SA		4,172		96
Tenet Healthcare Corp. (f)		271		16
Terex Corp.		1,451		46
Texas Instruments, Inc.		13,705		654
Textron, Inc.		3,397		122
Thermo Fisher Scientific, Inc.		4,362		531
Tiffany & Co.		261		25
Time Warner Cable, Inc.		3,749		538
Time Warner, Inc.		7,809		587
Time, Inc. (f)		851		20
Titan International, Inc.		2,652		31
TJX Cos., Inc. (The)		5,240		310
Towers Watson & Co., Class A		462		46
Travelers Cos., Inc. (The)		728		68
TripAdvisor, Inc. (f)		332		30
Triumph Group, Inc.		703		46
TRW Automotive Holdings Corp. (f)		1,744		177
Twenty-First Century Fox, Inc.		23,421		799
Tyco International Ltd.		1,509		67
Tyson Foods, Inc., Class A		3,153		124
Ultra Petroleum Corp. (f)		1,410		33
UniFirst Corp.		439		42
Union Pacific Corp.		5,170		561
United Community Banks, Inc.		2,803		46
United Parcel Service, Inc., Class B		4,420		434
United States Steel Corp.		1,755		69
United Technologies Corp.		3,373		356
UnitedHealth Group, Inc.		7,419		640
Universal Health Services, Inc., Class B		417		44
Urban Outfitters, Inc. (f)		186		7
US Bancorp		17,773		743
UTi Worldwide, Inc. (f)		4,381		47
Valero Energy Corp.		4,571		211
Varian Medical Systems, Inc. (f)		1,177		94
Vectrus, Inc. (f)		13		—	@
Ventas, Inc. REIT		747		46
Verisk Analytics, Inc., Class A (f)		1,988		121
Veritiv Corp. (f)		15		1
Verizon Communications, Inc.		33,150		1,660
Vertex Pharmaceuticals, Inc. (f)		1,076		121
VF Corp.		2,912		192
Viacom, Inc., Class B		4,563		351
Visa, Inc., Class A		3,951		843
Vornado Realty Trust REIT		309		31

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Vulcan Materials Co.		754	$	45
Wabtec Corp.		572		46
Wal-Mart Stores, Inc.		27,287		2,087
Walgreen Co.		13,401		794
Walt Disney Co. (The)		12,474		1,111
Washington Prime Group, Inc. REIT		2,864		50
Waste Management, Inc.		4,629		220
Waters Corp. (f)		443		44
Weatherford International PLC (f)		5,576		116
WellPoint, Inc.		2,486		297
Wells Fargo & Co.		49,327		2,559
Western Union Co. (The)		7,169		115
Weyerhaeuser Co. REIT		2,579		82
Whole Foods Market, Inc.		5,624		214
Williams Cos., Inc. (The)		9,331		516
Wisconsin Energy Corp.		3,670		158
Woodward, Inc.		953		45
World Fuel Services Corp.		1,140		45
WPX Energy, Inc. (f)		4,405		106
WW Grainger, Inc.		788		198
Wyndham Worldwide Corp.		308		25
Wynn Resorts Ltd.		840		157
Xcel Energy, Inc.		5,216		159
Xerox Corp.		6,956		92
Xilinx, Inc.		2,008		85
Xylem, Inc.		2,138		76
Yahoo!, Inc. (f)		7,799		318
Yum! Brands, Inc.		4,189		302
Zimmer Holdings, Inc.		2,380		239
Zions Bancorporation		1,810		53
Zoetis, Inc.		12,288		454
				139,244
Total Common Stocks (Cost $230,925)				276,494
Investment Companies (0.3%)
United Kingdom (0.2%)
ETFS Daily Short Copper (United Kingdom) (f)		33,621		1,079
United States (0.1%)
iShares MSCI Emerging Markets Index Fund		8,000		333
Morgan Stanley Institutional Fund, Inc. — Emerging Markets Portfolio (See Note G)		4,645		116
				449
Total Investment Companies (Cost $1,589)				1,528
	No. of Rights
Rights (0.0%)
Australia (0.0%)
Arrium Ltd. (f)		14,100		—	@
Italy (0.0%)
Fiat S.p.A (f)		9,996		—
Portugal (0.0%)
Mota Engil SGPS (f)(g)		2,077		—

	No. of Rights		Value (000)
Spain (0.0%)
Banco Bilbao Vizcaya Argentaria SA (f)		205,626	$	21
Banco Popular Espanol SA (f)		29,127		—	@
				21
Total Rights (Cost $21)				21
	No. of Warrants
Warrants (0.0%)
France (0.0%)
Peugeot SA (France) (f)		1,221		2
Hong Kong (0.0%)
Sun Hung Kai Properties Ltd. (Hong Kong) (f)		1,181		2
Total Warrants (Cost $2)				4
	Shares
Short-Term Investments (16.4%)
Investment Company (15.7%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $73,049)		73,048,564		73,049
	Face Amount (000)
U.S. Treasury Securities (0.7%)
U.S. Treasury Bills,
0.03%, 2/12/15 (h)(i)	$	273		273
0.04%, 2/12/15 (h)(i)		525		525
0.05%, 2/12/15 (h)(i)		2,419		2,419
Total U.S. Treasury Securities (Cost $3,216)				3,217
Total Short-Term Investments (Cost $76,265)				76,266
Total Investments (102.0%) (Cost $428,535) (j)				475,960
Liabilities in Excess of Other Assets (-2.0%)				(9,334	)
Net Assets (100.0%)			$	466,626

(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 September 30, 2014.

(d) Security trades on the Hong Kong exchange.

(e) 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 September 30, 2014.

(f) Non-income producing security.

(g) Security has been deemed illiquid at September 30, 2014.

(h) Rate shown is the yield to maturity at September 30, 2014.

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

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

@ Value is less than $500.

ADR American Depositary Receipt.

CVA Certificaten Van Aandelen.

GDR Global Depositary Receipt.

IO Interest Only.

MTN Medium Term Note.

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 September 30, 2014:

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
HSBC Bank PLC	KRW	1,458,797	$	1,383	10/2/14	USD	1,393	$	1,393	$	10
HSBC Bank PLC	USD	1,383		1,383	10/2/14	KRW	1,458,797		1,382		(1	)
UBS AG	KRW	1,458,797		1,382	10/2/14	USD	1,383		1,383		1
UBS AG	USD	1,433		1,433	10/2/14	KRW	1,458,797		1,382		(51	)
Citibank NA	CAD	4,429		3,955	10/3/14	USD	4,083		4,083		128
Citibank NA	EUR	89		112	10/3/14	USD	115		115		3
Citibank NA	MXN	20,254		1,508	10/3/14	USD	1,545		1,545		37
Citibank NA	NZD	1,577		1,231	10/3/14	USD	1,286		1,286		55
Citibank NA	ZAR	1,936		171	10/3/14	USD	181		181		10
Commonwealth Bank of Australia	AUD	700		613	10/3/14	USD	637		637		24
Commonwealth Bank of Australia	EUR	500		632	10/3/14	USD	637		637		5
Deutsche Bank AG London	EUR	451		570	10/3/14	NOK	3,660		570		(—	@)
Deutsche Bank AG London	EUR	480		607	10/3/14	USD	619		619		12
Deutsche Bank AG London	NOK	3,660		569	10/3/14	EUR	449		567		(2	)
Deutsche Bank AG London	NOK	5,421		844	10/3/14	USD	844		844		—	@
Deutsche Bank AG London	PLN	2,400		725	10/3/14	USD	740		740		15
Deutsche Bank AG London	PLN	1,492		451	10/3/14	USD	460		460		9
Deutsche Bank AG London	USD	877		877	10/3/14	NOK	5,421		844		(33	)
HSBC Bank PLC	EUR	597		754	10/3/14	CHF	720		754		(—	@)
HSBC Bank PLC	EUR	615		777	10/3/14	PLN	2,600		785		8
HSBC Bank PLC	EUR	1,582		1,998	10/3/14	USD	1,997		1,997		(1	)
HSBC Bank PLC	JPY	1,156,920		10,549	10/3/14	USD	10,550		10,550		1
HSBC Bank PLC	NZD	4,968		3,878	10/3/14	USD	4,148		4,148		270
HSBC Bank PLC	PLN	2,600		786	10/3/14	EUR	622		786		—	@
HSBC Bank PLC	PLN	6,413		1,937	10/3/14	USD	2,001		2,001		64
HSBC Bank PLC	THB	10,500		324	10/3/14	USD	324		324		(—	@)
HSBC Bank PLC	USD	3,333		3,333	10/3/14	GBP	2,010		3,258		(75	)
HSBC Bank PLC	USD	11,561		11,561	10/3/14	JPY	1,201,350		10,953		(608	)
HSBC Bank PLC	USD	3,339		3,339	10/3/14	PLN	11,049		3,337		(2	)
HSBC Bank PLC	USD	1,212		1,212	10/3/14	SEK	8,744		1,212		(—	@)
JPMorgan Chase Bank NA	AUD	477		418	10/3/14	USD	417		417		(1	)
JPMorgan Chase Bank NA	JPY	45,000		410	10/3/14	USD	426		426		16
JPMorgan Chase Bank NA	USD	239		239	10/3/14	GBP	147		238		(1	)
JPMorgan Chase Bank NA	USD	5		5	10/3/14	JPY	570		5		(—	@)
JPMorgan Chase Bank NA	USD	1,509		1,509	10/3/14	MXN	20,254		1,508		(1	)
JPMorgan Chase Bank NA	USD	2,182		2,182	10/3/14	SEK	15,864		2,198		16
JPMorgan Chase Bank NA	USD	328		328	10/3/14	THB	10,500		324		(4	)
UBS AG	CHF	720		754	10/3/14	EUR	597		754		(—	@)
UBS AG	CHF	214		224	10/3/14	USD	224		224		(—	@)
UBS AG	GBP	2,182		3,537	10/3/14	USD	3,536		3,536		(1	)
UBS AG	MYR	850		259	10/3/14	USD	259		259		(—	@)
UBS AG	NZD	5		4	10/3/14	USD	4		4		—	@
UBS AG	PLN	744		225	10/3/14	USD	229		229		4
UBS AG	SEK	24,607		3,410	10/3/14	USD	3,539		3,539		129
UBS AG	USD	1,098		1,098	10/3/14	AUD	1,177		1,031		(67	)
UBS AG	USD	3,952		3,952	10/3/14	CAD	4,429		3,955		3
UBS AG	USD	234		234	10/3/14	CHF	214		224		(10	)
UBS AG	USD	3,495		3,495	10/3/14	EUR	2,651		3,348		(147	)
UBS AG	USD	40		40	10/3/14	GBP	25		40		—	@

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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	USD	269	$	269	10/3/14	MYR	850	$	260	$	(9	)
UBS AG	USD	3,904		3,904	10/3/14	NZD	5,000		3,903		(1	)
UBS AG	USD	172		172	10/3/14	ZAR	1,936		172		(—	@)
Westpac Banking Corp.	USD	1,267		1,267	10/3/14	NZD	1,550		1,210		(57	)
Deutsche Bank AG London	NOK	4,050		630	10/10/14	USD	634		634		4
HSBC Bank PLC	USD	283		283	10/10/14	NOK	1,820		283		(—	@)
UBS AG	USD	348		348	10/10/14	NOK	2,230		347		(1	)
Credit Suisse International	ILS	3,271		888	10/15/14	USD	887		887		(1	)
Royal Bank of Scotland PLC	USD	633		633	10/15/14	ILS	2,307		627		(6	)
Bank of America NA	PLN	2,918		880	10/16/14	USD	885		885		5
Bank of America NA	USD	2,310		2,310	10/16/14	CAD	2,549		2,275		(35	)
Bank of Montreal	HUF	217,415		884	10/16/14	USD	883		883		(1	)
Bank of Montreal	NZD	8,262		6,440	10/16/14	USD	6,717		6,717		277
Bank of Montreal	TRY	3,118		1,364	10/16/14	USD	1,400		1,400		36
Bank of Montreal	TRY	2,013		881	10/16/14	USD	885		885		4
Bank of New York Mellon	MXN	6,203		461	10/16/14	USD	468		468		7
Barclays Bank PLC	AUD	9,658		8,448	10/16/14	USD	8,701		8,701		253
Barclays Bank PLC	AUD	3,475		3,039	10/16/14	USD	3,049		3,049		10
Barclays Bank PLC	AUD	1,682		1,472	10/16/14	USD	1,476		1,476		4
Barclays Bank PLC	AUD	447		391	10/16/14	USD	390		390		(1	)
Barclays Bank PLC	CLP	1,965,250		3,282	10/16/14	USD	3,323		3,323		41
Barclays Bank PLC	INR	54,603		882	10/16/14	USD	886		886		4
Barclays Bank PLC	KRW	928,970		880	10/16/14	USD	887		887		7
Barclays Bank PLC	USD	1,122		1,122	10/16/14	KRW	1,163,378		1,102		(20	)
Citibank NA	USD	6,123		6,123	10/16/14	EUR	4,729		5,975		(148	)
Citibank NA	USD	8,552		8,552	10/16/14	JPY	916,392		8,356		(196	)
Citibank NA	USD	3,914		3,914	10/16/14	JPY	429,185		3,914		(—	@)
Commonwealth Bank of Australia	AUD	2,735		2,392	10/16/14	USD	2,464		2,464		72
Commonwealth Bank of Australia	AUD	5,489		4,801	10/16/14	USD	4,945		4,945		144
Deutsche Bank AG London	CHF	3,152		3,301	10/16/14	USD	3,374		3,374		73
Deutsche Bank AG London	GBP	3,261		5,287	10/16/14	USD	5,288		5,288		1
Deutsche Bank AG London	IDR	7,571,608		620	10/16/14	USD	614		614		(6	)
Deutsche Bank AG London	IDR	3,092,628		253	10/16/14	USD	251		251		(2	)
Deutsche Bank AG London	JPY	119,776		1,092	10/16/14	USD	1,118		1,118		26
Deutsche Bank AG London	MYR	2,896		882	10/16/14	USD	884		884		2
Deutsche Bank AG London	USD	810		810	10/16/14	CHF	773		810		—	@
Deutsche Bank AG London	USD	3,024		3,024	10/16/14	EUR	2,336		2,951		(73	)
Deutsche Bank AG London	USD	1,383		1,383	10/16/14	GBP	852		1,382		(1	)
Goldman Sachs International	EUR	30,814		38,923	10/16/14	USD	39,889		39,889		966
Goldman Sachs International	USD	622		622	10/16/14	AUD	712		623		1
Goldman Sachs International	USD	1,114		1,114	10/16/14	HKD	8,631		1,112		(2	)
Goldman Sachs International	USD	578		578	10/16/14	TWD	17,343		570		(8	)
JPMorgan Chase Bank NA	NZD	8,579		6,688	10/16/14	USD	6,975		6,975		287
JPMorgan Chase Bank NA	NZD	2,250		1,754	10/16/14	USD	1,751		1,751		(3	)
JPMorgan Chase Bank NA	TWD	26,988		887	10/16/14	USD	890		890		3
JPMorgan Chase Bank NA	USD	88		88	10/16/14	TWD	2,640		87		(1	)
Northern Trust Company	SGD	1,130		885	10/16/14	USD	887		887		2
Royal Bank of Scotland PLC	BRL	3,247		1,321	10/16/14	USD	1,375		1,375		54
Royal Bank of Scotland PLC	BRL	2,163		880	10/16/14	USD	883		883		3
Royal Bank of Scotland PLC	CLP	532,967		890	10/16/14	USD	888		888		(2	)
Royal Bank of Scotland PLC	JPY	655,602		5,978	10/16/14	USD	6,118		6,118		140
Royal Bank of Scotland PLC	MXN	11,917		887	10/16/14	USD	884		884		(3	)
Royal Bank of Scotland PLC	USD	1,885		1,885	10/16/14	BRL	4,413		1,796		(89	)
Royal Bank of Scotland PLC	USD	2,827		2,827	10/16/14	EUR	2,183		2,758		(69	)
State Street Bank and Trust Co.	MXN	18,724		1,392	10/16/14	USD	1,413		1,413		21
State Street Bank and Trust Co.	SEK	6,951		964	10/16/14	USD	963		963		(1	)
State Street Bank and Trust Co.	THB	28,742		885	10/16/14	USD	887		887		2
State Street Bank and Trust Co.	USD	494		494	10/16/14	DKK	2,839		482		(12	)
UBS AG	EUR	4,688		5,922	10/16/14	USD	6,069		6,069		147

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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	RUB	34,260	$	863	10/16/14	USD	872	$	872	$	9
UBS AG	SEK	2,878		399	10/16/14	USD	404		404		5
UBS AG	USD	3,079		3,079	10/16/14	EUR	2,439		3,080		1
UBS AG	USD	909		909	10/16/14	RUB	34,640		873		(36	)
UBS AG	USD	1,616		1,616	10/16/14	SGD	2,038		1,598		(18	)
UBS AG	USD	18		18	10/16/14	TRY	39		18		(—	@)
UBS AG	ZAR	14,253		1,260	10/16/14	USD	1,294		1,294		34
UBS AG	ZAR	9,971		881	10/16/14	USD	886		886		5
Deutsche Bank AG London	CAD	80		72	11/5/14	USD	72		72		—	@
Deutsche Bank AG London	NOK	3,660		569	11/5/14	EUR	450		569		—	@
Deutsche Bank AG London	USD	843		843	11/5/14	NOK	5,421		843		(—	@)
HSBC Bank PLC	EUR	621		784	11/5/14	PLN	2,600		784		(—	@)
HSBC Bank PLC	NOK	1,820		283	11/5/14	USD	283		283		—	@
HSBC Bank PLC	PLN	11,049		3,332	11/5/14	USD	3,333		3,333		1
HSBC Bank PLC	SEK	8,744		1,212	11/5/14	USD	1,212		1,212		—	@
HSBC Bank PLC	USD	1,998		1,998	11/5/14	EUR	1,582		1,999		1
HSBC Bank PLC	USD	10,552		10,552	11/5/14	JPY	1,156,920		10,551		(1	)
HSBC Bank PLC	USD	1,391		1,391	11/5/14	KRW	1,458,797		1,380		(11	)
HSBC Bank PLC	USD	323		323	11/5/14	THB	10,500		323		—	@
JPMorgan Chase Bank NA	MXN	20,254		1,504	11/5/14	USD	1,505		1,505		1
JPMorgan Chase Bank NA	USD	416		416	11/5/14	AUD	477		417		1
UBS AG	CAD	4,429		3,952	11/5/14	USD	3,949		3,949		(3	)
UBS AG	EUR	597		754	11/5/14	CHF	720		754		—	@
UBS AG	NZD	5,000		3,890	11/5/14	USD	3,891		3,891		1
UBS AG	USD	224		224	11/5/14	CHF	214		224		—	@
UBS AG	USD	3,535		3,535	11/5/14	GBP	2,182		3,536		1
UBS AG	USD	258		258	11/5/14	MYR	850		258		—	@
UBS AG	ZAR	1,936		171	11/5/14	USD	171		171		—	@
			$	285,733				$	287,387	$	1,654

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2014:

	Number of Contracts		Value (000)		Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
Amsterdam Index (Netherlands)		3	$	319	Oct-14	$	4
CAC 40 Index (France)		7		390	Oct-14		(2	)
Dollar Index (United States)		75		6,454	Dec-14		121
Euro Stoxx 50 Index (Germany)		316		12,864	Dec-14		1
FTSE MIB Index (Italy)		15		1,977	Dec-14		8
MSCI Emerging Market E Mini (United States)		112		5,615	Dec-14		(273	)
MSCI Singapore Free Index (Singapore)		36		2,084	Oct-14		(12	)
NIKKEI 225 Index (Japan)		76		5,613	Dec-14		148
OMXS 30 (Sweden)		19		370	Oct-14		2
S&P 500 E MINI Index (United States)		479		47,074	Dec-14		(569	)
U.S. Treasury 2 yr. Note (United States)		140		30,638	Dec-14		(10	)
U.S. Treasury 5 yr. Note (United States)		118		13,954	Dec-14		(36	)
U.S. Treasury Long Bond (United States)		11		1,517	Dec-14		(8	)
U.S. Treasury Ultra Long Bond (United States)		41		6,253	Dec-14		(3	)

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Futures Contracts: (cont'd)

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Short:
Copper High Grade Index (United States)		78	$	(5,864	)	Dec-14	$	427
FTSE 100 Index (United Kingdom)		67		(7,175	)	Dec-14		150
German Euro Bund (Germany)		110		(20,799	)	Dec-14		(82	)
Hang Seng Index (Hong Kong)		98		(6,517	)	Oct-14		194
Hang Seng Index (Hong Kong)		3		(441	)	Oct-14		1
IBEX 35 Index (Spain)		26		(3,566	)	Oct-14		15
SPI 200 Index (Australia)		8		(925	)	Dec-14		39
U.S. Treasury 10 yr. Note (United States)		536		(66,807	)	Dec-14		450
U.S. Treasury 5 yr. Note (United States)		30		(3,548	)	Dec-14		8
U.S. Treasury Ultra Bond (United States)		20		(3,050	)	Dec-14		45
							$	618

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 2014:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment (Received) (000)			Unrealized Appreciation (Depreciation) (000)			Value (000)			Credit Rating of Reference Obligation† (unaudited)
Bank of America NA Russian Federation	Sell	$	2,257		1.00	%	12/20/19	$	(131	)	$	(26	)	$	(157	)	BBB-
Barclays Bank PLC Russian Federation	Sell		1,132		1.00		12/20/19		(70	)		(9	)		(79	)	BBB-
Goldman Sachs International People's Republic of China	Buy		1,347		1.00		12/20/19		(19	)		7			(12	)	AA-
Goldman Sachs International Australian Government	Buy		179		1.00		12/20/19		(7	)		—	@		(7	)	AAA
JPMorgan Chase Bank NA People's Republic of China	Buy		1,205		1.00		12/20/19		(17	)		9			(8	)	AA-
JPMorgan Chase Bank NA Russian Federation	Sell		275		1.00		12/20/19		(18	)		(1	)		(19	)	BBB-
JPMorgan Chase Bank NA People's Republic of China	Buy		159		1.00		12/20/19		(2	)		1			(1	)	AA-
JPMorgan Chase Bank NA Australian Government	Buy		148		1.00		12/20/19		(5	)		—	@		(5	)	AAA
JPMorgan Chase Bank NA Russian Federation	Sell		695		1.00		12/20/19		(45	)		(2	)		(47	)	BBB-
JPMorgan Chase Bank NA Australian Government	Buy		3,504		1.00		12/20/19		(128	)		9			(119	)	AAA
JPMorgan Chase Bank NA Russian Federation	Sell		686		1.00		12/20/19		(44	)		(3	)		(47	)	BBB-
JPMorgan Chase Bank NA People's Republic of China	Buy		4,147		1.00		12/20/19		(62	)		34			(28	)	AA-
JPMorgan Chase Bank NA Russian Federation	Sell		827		1.00		12/20/19		(55	)		(3	)		(58	)	BBB-
JPMorgan Chase Bank NA Australian Government	Buy		2,320		1.00		12/20/19		(78	)		(1	)		(79	)	AAA
JPMorgan Chase Bank NA Russian Federation	Sell		601		1.00		12/20/19		(37	)		(4	)		(41	)	BBB-
		$	19,482					$	(718	)	$	11		$	(707	)

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at September 30, 2014:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	3 Month LIBOR	Pay		3.05	%	9/19/17	AUD	7,310	$	28
JPMorgan Chase Bank NA	3 Month LIBOR	Pay		3.04		9/22/17		7,310		25
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		0.70		7/29/16	$	18,618		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		0.76		8/1/16		71,576		(48	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		0.65		8/21/16		36,740		73
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		0.71		8/29/16		16,940		17
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.14		7/23/17		6,593		5
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.06		8/21/17		11,000		51
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.18		9/4/17		6,100		12
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.17		9/5/17		7,900		17
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.19		9/10/17		5,700		12
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.30		9/22/17		7,780		(3	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.30		9/23/17		7,780		(2	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.71		8/21/19		3,648		30
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.81		9/4/19		1,900		8
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.80		9/5/19		2,378		11
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.85		9/10/19		1,653		5
									$	242

Total Return Swap Agreements:

The Portfolio had the following total return swap agreements open at September 30, 2014:

Swap Counterparty

Index

Notional
Amount
(000)

Floating
Rate

Pay/Receive
Total Return
of Referenced
Index

Maturity
Date

Unrealized
Appreciation
(Depreciation)
(000)

Bank of America NA

MSCI World/Energy
Equipment Index

2,129

3 Month USD LIBOR minus
0.35%

Pay

5/5/15

207

Bank of America NA

MSCI World/Energy
Equipment Index

1,556

3 Month USD LIBOR minus
0.35%

Pay

5/5/15

151

Barclays Bank PLC

Barclays EM Consumer
Staples Index^††

2,724

3 Month USD LIBOR minus
0.65%

Pay

10/23/14

163

Barclays Bank PLC

Barclays EM Consumer
Staples Index^††

807

3 Month USD LIBOR minus
0.65%

Pay

10/23/14

Barclays Bank PLC

Barclays EU Luxury Index^††

2,607

3 Month USD LIBOR plus
0.25%

Pay

2/4/15

158

Barclays Bank PLC

MSCI Daily Total Return Net
Emerging Markets Index

27,974

3 Month USD LIBOR minus
0.20%

Receive

3/5/15

(2,079

)

Barclays Bank PLC

MSCI U.S. REIT Index

7,184

3 Month USD LIBOR plus
0.05%

Pay

6/15/15

351

Barclays Bank PLC

Barclays Global Elevators Index^††

1,056

3 Month USD LIBOR minus
0.35%

Pay

9/3/15

Deutsche Bank AG

DB Non-US Machinery Index^††

6,808

3 Month USD LIBOR minus
0.23%

Pay

9/1/15

—

Deutsche Bank AG

DB Hong Kong ex RE Index^††

HKD

27,103

3 Month HKD HIBOR minus
0.40%

Pay

9/4/15

232

Deutsche Bank AG

DB Hong Kong ex RE Index^††

27,106

3 Month HKD HIBOR minus
0.40%

Pay

9/4/15

154

Goldman Sachs
International

GS Iron Ore II Index^††

3,511

3 Month USD LIBOR minus
0.51%

Pay

6/10/15

387

Goldman Sachs
International

GS Iron Ore II Index^††

2,911

3 Month USD LIBOR minus
0.58%

Pay

6/10/15

321

Goldman Sachs
International

GS Iron Ore II Index^††

1,779

3 Month USD LIBOR minus
0.58%

Pay

6/10/15

186

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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)

Goldman Sachs
International

GS Iron Ore II Index^††

1,269

3 Month USD LIBOR minus
0.58%

Pay

6/10/15

Goldman Sachs
International

GS Turkey Index^††

4,175

3 Month USD LIBOR minus
0.98%

Pay

8/20/15

344

Goldman Sachs
International

GS US Aircraft Leasing Index^††

1,069

3 Month USD LIBOR minus
0.29%

Pay

9/25/15

Goldman Sachs
International

GS US Dividend Index^††

4,264

3 Month USD LIBOR minus
0.25%

Pay

10/2/15

JPMorgan Chase
Bank NA

JPM US Airlines Index^††

1,514

3 Month USD LIBOR minus
0.32%

Pay

7/3/15

)

JPMorgan Chase
Bank NA

JPM US Airlines Index^††

1,415

3 Month USD LIBOR minus
0.29%

Pay

7/3/15

)

JPMorgan Chase
Bank NA

JPM US Airlines Index^††

1,413

3 Month USD LIBOR minus
0.32%

Pay

7/6/15

)

JPMorgan Chase
Bank NA

JPM MSCI China Index^††

HKD

27,464

3 Month HKD HIBOR minus
0.22%

Pay

8/26/15

240

JPMorgan Chase
Bank NA

JPM US Machinery Index^††

7,369

3 Month USD LIBOR minus
0.26%

Pay

8/27/15

142

JPMorgan Chase
Bank NA

JPM Aerospace Index^††

12,839

3 Month USD LIBOR minus
0.26%

Pay

9/8/15

198

JPMorgan Chase
Bank NA

Australia Bank Index

AUD

3,952

3 Month USD LIBOR minus
0.18%

Pay

9/23/15

1,497

†† See tables below for details of the equity basket holdings underlying the swap.

The following table represents the equity basket holdings underlying the total return swaps with Barclays EM Consumer Staples Index as of September 30, 2014.

Security Description	Index Weight
Barclays EM Consumer Staples Index
AMBEV SA		22.27	%
BRF SA		5.23
Fomento Economico Mexicano SA		19.12
Hengan International Group Co., Ltd.		8.24
Magnit PJSC		14.97
Uni-President Enterprises Corp.		8.02
Wal-Mart de Mexico SAB de CV		13.90
Want Want China Holdings, Ltd.		8.25
		100	%

The following table represents the equity basket holdings underlying the total return swaps with Barclays EU Luxury Index as of September 30, 2014.

Security Description	Index Weight
Barclays EU Luxury Index
Adidas AG		6.32	%
Brunello Cucinelli SpA		1.94
Burberry Group PLC		6.69
Christian Dior SA		6.97
Cie Financiere Richmont SA		12.81
Coach, Inc.		5.24
Hermes International		2.79
Hugo Boss AG		5.02
Kering		9.40
LVMH Moet Hennessy Louis Vuiton		19.94
Moncler SpA		3.46

Security Description	Index Weight
Barclays EU Luxury Index (cont'd)
Salvatore Ferragamo SpA		4.11	%
Swatch Group AG (UHR VX)		8.21
Swatch Group AG (UHRN SE)		4.08
Tod's SpA		3.02
		100	%

The following table represents the equity basket holdings underlying the total return swap with Barclays Global Elevators Index as of September 30, 2014.

Security Description	Index Weight
Barclays Global Elevators Index
Fujitec Co. Ltd.		1.80	%
Kone OYJ		36.08
Schindler Holding AG		26.21
United Technologies Corp.		34.30
Yungtay Engineering Co. Ltd.		1.61
		100	%

The following table represents the equity basket holdings underlying the total return swap with DB Non-US Machinery Index as of September 30, 2014.

Security Description	Index Weight
DB Non-US Machinery Index
Alfa Laval AB		2.89	%
Atlas Copco AB (ATCOA SS)		7.66
Atlas Copco AB (ATCOB SS)		4.07
CNH Industrial NV		3.21
CSR Corp Ltd.		0.68
Daewoo Shipbuilding & Marine		0.92
Doosan Infracore Co. Ltd.		0.57

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Index Weight
DB Non-US Machinery Index (cont'd)
GEA Group AG		3.16	%
Hino Motors Ltd.		1.42
Hitachi Construction Machinery Corp.		0.82
Hiwin Technologies Corp.		0.77
Hyundai Heavy Industries Co. Ltd.		2.15
Hyundai Mipo Dockyard Co. Ltd.		0.48
IMI PLC		2.36
JTEKT Corp.		1.27
Kawasaki Heavy Industries Ltd.		2.03
Komatsu Ltd.		8.26
Kone OYJ		5.09
Kubota Corp.		6.57
MAN SE		1.61
Melrose Industries PLC		2.00
Metso OYJ		1.72
NGK Insulators Ltd.		2.54
Samsung Heavy Industries Co. Ltd.		1.60
Sandvik AB		5.17
Schindler Holding AG (SCHN SE)		1.18
Schindler Holding AG (SCHP VX)		2.55
Sembcorp Marine Ltd.		1.02
SMC Corp. (Japan)		5.52
Sulzer AG		1.19
Sumimoto Heavy Industries Ltd.		1.12
United Tractors Tbk PT		1.17
Vallourec SA		1.87
Volvo AB		7.17
Wartsila OYJ Abp		2.86
Weichai Power Co. Ltd.		0.75
Weir Group PLC (The)		3.55
Yangzijiang Shipbuilding Holdings		0.70
Zoomlian Heavy Industry Science		0.33
		100	%

The following table represents the equity basket holdings underlying the total return swap with DB Hong Kong ex RE Index as of September 30, 2014.

Security Description	Index Weight
DB Hong Kong ex RE Index
AIA Group Ltd.		23.13	%
ASM Pacific Technology Ltd.		1.05
Bank of East Asia Ltd.		1.99
BOC Hong Kong Holdings Ltd.		4.33
Cathay Pacific Airways Ltd.		0.87
Cheung Kong Infrastructure Holdings Ltd.		1.62
CLP Holdings Ltd.		5.93
First Pacific Co. Ltd. (Hong Kong)		0.96
Galaxy Entertainment Group Ltd.		5.49
Hang Seng Bank Ltd.		4.79
HKT Trust and HKT Ltd.		1.18
Hong Kong & China Gas Co. Ltd.		5.24
Hong Kong Exchanges and Clearing		7.94
Hutchinson Whampoa Ltd.		10.73
Li & Fung Ltd.		3.16
MGM China Holdings Ltd.		1.07
MTR Corp. Ltd.		2.21
NWS Holdings Ltd.		0.52
PCCW Ltd.		0.89
Power Assets Holdings Ltd.		4.54
Sands China Ltd.		5.55

Security Description	Index Weight
DB Hong Kong ex RE Index (cont'd)
Shangri-La Asia Ltd.		0.84	%
SJM Holdings Ltd.		1.47
Techtronic Industries Co. Ltd.		1.57
Wynn Macau Ltd.		1.96
Yue Yuen Industrial Holdings Ltd.		0.97
		100	%

The following table represents the equity basket holdings underlying the total return swaps with GS Iron Ore II Index as of September 30, 2014.

Security Description	Index Weight
GS Iron Ore II Index
African Rainbow Minerals Ltd.		1.15	%
Assore Ltd.		0.29
BHP Billiton Ltd.		42.75
Ferrexpo PLC		0.22
Fortescue Metals Group Ltd.		4.12
Kumba Iron Ore Ltd.		2.69
Rio Tinto PLC		32.29
Vale SA		16.49
		100	%

The following table represents the equity basket holdings underlying the total return swap with GS Turkey Index as of September 30, 2014.

Security Description	Index Weight
GS Turkey Index
Akbank TAS		14.24	%
Arcelik AS		2.80
BIM Birlesik Magazalar AS		3.17
Emlak Konut Gayrimenkul Yatirim Ortaklig		5.19
Enka Insaat ve Sanayi AS		2.62
Eregli Demir ve Celik Fabrikalari TAS		6.14
Haci Omer Sabanci Holding AS		4.27
KOC Holding AS		4.67
TAV Havalimanlari Holding AS		1.65
Tofas Turk Otomobil Fabrikasi AS		1.92
Tupras Turkiye Petrol Rafinerileri AS		3.39
Turk Hava Yollari		3.82
Turk Telekomunikasyon AS		2.24
Turkcell Iletisim Hizmetleri AS		3.54
Turkiye Garanti Bankasi AS		18.30
Turkiye Halk Bankasi AS		10.19
Turkiye Is Bankasi		5.39
Turkiye Sise ve Cam Fabrikalari AS		1.77
Turkiye Vakiflar Bankasi Tao		3.72
Ulker Biskuvi Sanayi AS		0.97
		100	%

The following table represents the equity basket holdings underlying the total return swap with GS US Aircraft Leasing Index as of September 30, 2014.

Security Description	Index Weight
GS US Aircraft Leasing Index
AerCap Holdings NV		66.29	%
Air Lease Corp		23.78
Aircastle Ltd		7.77
Fly Leasing Ltd		2.16
		100	%

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

The following table represents the equity basket holdings underlying the total return swap with GS US Dividend Index as of September 30, 2014.

Security Description	Index Weight
GS US Dividend Index
AbbVie Inc		0.53	%
Acadia Realty Trust		0.54
AGL Resources Inc		0.54
Alexandria Real Estate Equities Inc		0.54
Alliant Energy Corp		0.54
American Eagle Outfitters Inc		0.54
American Electric Power Co Inc		0.54
American Financial Group Inc/OH		0.53
American Science & Engineering Inc		0.20
Analog Devices Inc		0.53
Apartment Investment & Management Co		0.54
Arthur J Gallagher & Co		0.54
Atmos Energy Corp		0.54
AvalonBay Communities Inc		0.54
Avery Dennison Corp		0.52
Avista Corp		0.53
Bank of Hawaii Corp		0.53
Baxter International Inc		0.53
Bemis Co Inc		0.54
Big 5 Sporting Goods Corp		0.16
Black Hills Corp		0.53
Brady Corp		0.53
Brookline Bancorp Inc		0.35
Brooks Automation Inc		0.52
CA Inc		0.54
Cablevision Systems Corp		0.53
Calamos Asset Management Inc		0.24
Camden Property Trust		0.55
Campbell Soup Co		0.54
Cato Corp/The		0.51
CDI Corp		0.09
Cedar Realty Trust Inc		0.22
CenterPoint Energy Inc		0.55
Chesapeake Lodging Trust		0.54
Chevron Corp		0.53
Cincinnati Financial Corp		0.54
Cinemark Holdings Inc		0.53
Cisco Systems Inc		0.55
City Holding Co		0.41
Cleco Corp		0.52
Clorox Co/The		0.54
CMS Energy Corp		0.54
Coach Inc		0.52
Coca-Cola Co/The		0.55
Community Bank System Inc		0.53
Compass Minerals International Inc		0.53
Computer Programs & Systems Inc		0.53
Comtech Telecommunications Corp		0.42
ConAgra Foods Inc		0.54
ConocoPhillips		0.53
Cracker Barrel Old Country Store Inc		0.54
Daktronics Inc		0.22
Deere & Co		0.53
DiamondRock Hospitality Co		0.53
Diebold Inc		0.53
Dime Community Bancshares Inc		0.32

Security Description	Index Weight
GS US Dividend Index (cont'd)
DineEquity Inc		0.55	%
Dominion Resources Inc/VA		0.55
Domtar Corp		0.52
DTE Energy Co		0.54
Duke Realty Corp		0.54
EastGroup Properties Inc		0.54
Eaton Corp PLC		0.52
El Paso Electric Co		0.54
Eli Lilly & Co		0.53
Equity One Inc		0.54
Equity Residential		0.54
Essex Property Trust Inc		0.53
Exelon Corp		0.54
Extra Space Storage Inc		0.54
Exxon Mobil Corp		0.53
Federated Investors Inc		0.53
First American Financial Corp		0.53
First Commonwealth Financial Corp		0.43
First Niagara Financial Group Inc		0.53
FirstMerit Corp		0.54
FNB Corp/PA		0.53
Ford Motor Co		0.49
Freeport-McMoRan Inc		0.53
Fulton Financial Corp		0.53
GameStop Corp		0.52
Garmin Ltd		0.54
General Electric Co		0.54
General Mills Inc		0.54
General Motors Co		0.52
Great Plains Energy Inc		0.54
Greenhill & Co Inc		0.54
Greif Inc		0.53
Guess? Inc		0.52
Gulfmark Offshore Inc		0.50
Hancock Holding Co		0.53
Harsco Corp		0.52
Hasbro Inc		0.53
HCI Group Inc		0.52
Horace Mann Educators Corp		0.43
Host Hotels & Resorts Inc		0.54
IDACORP Inc		0.54
Integrys Energy Group Inc		0.54
International Paper Co		0.53
Intersil Corp		0.52
Iron Mountain Inc		0.55
Janus Capital Group Inc		0.52
Kellogg Co		0.54
Kimberly-Clark Corp		0.54
Kimco Realty Corp		0.54
Koppers Holdings Inc		0.51
Kraft Foods Group Inc		0.54
Laclede Group Inc/The		0.54
Leggett & Platt Inc		0.53
Leidos Holdings Inc		0.54
Lexmark International Inc		0.54
Lockheed Martin Corp		0.55
Lorillard Inc		0.54
Lumos Networks Corp		0.14

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Index Weight
GS US Dividend Index (cont'd)
Macerich Co/The		0.54	%
Mack-Cali Realty Corp		0.53
ManTech International Corp/VA		0.52
McDonald's Corp		0.54
MDC Holdings Inc		0.52
Merck & Co Inc		0.54
Meredith Corp		0.52
Microchip Technology Inc		0.53
Myers Industries Inc		0.43
National Penn Bancshares Inc		0.53
Navient Corp		0.54
NBT Bancorp Inc		0.45
New Jersey Resources Corp		0.54
NextEra Energy Inc		0.54
Northeast Utilities		0.54
NorthWestern Corp		0.53
Occidental Petroleum Corp		0.53
Old National Bancorp/IN		0.53
Olin Corp		0.53
Omnicom Group Inc		0.53
ONE Gas Inc		0.53
ONEOK Inc		0.53
Owens & Minor Inc		0.53
PACCAR Inc		0.53
Parkway Properties Inc/Md		0.55
Paychex Inc		0.54
Pennsylvania Real Estate Investment Trust		0.54
Pepco Holdings Inc		0.53
PepsiCo Inc		0.54
Pfizer Inc		0.53
PG&E Corp		0.55
Piedmont Natural Gas Co Inc		0.53
Pinnacle West Capital Corp		0.53
Pitney Bowes Inc		0.53
PNM Resources Inc		0.53
Post Properties Inc		0.54
Potlatch Corp		0.54
Procter & Gamble Co/The		0.53
Prologis Inc		0.54
Provident Financial Services Inc		0.53
Public Service Enterprise Group Inc		0.53
Public Storage		0.54
Questar Corp		0.54
Rayonier Inc		0.54
Regency Centers Corp		0.54
Rent-A-Center Inc/TX		0.54
S&T Bancorp Inc		0.18
Schweitzer-Mauduit International Inc		0.54
Scotts Miracle-Gro Co/The		0.54
Seagate Technology PLC		0.54
Simon Property Group Inc		0.54
Sonoco Products Co		0.54
South Jersey Industries Inc		0.54
Southwest Gas Corp		0.53
Sovran Self Storage Inc		0.53
Spectra Energy Corp		0.54
Spok Holdings Inc		0.23
Stage Stores Inc		0.54
Staples Inc		0.51

Security Description	Index Weight
GS US Dividend Index (cont'd)
Superior Industries International Inc		0.21	%
Susquehanna Bancshares Inc		0.52
Sysco Corp		0.54
Tanger Factory Outlet Centers Inc		0.54
Taubman Centers Inc		0.54
Tessera Technologies Inc		0.52
Tompkins Financial Corp		0.21
TrustCo Bank Corp NY		0.30
Trustmark Corp		0.53
Tupperware Brands Corp		0.53
UDR Inc		0.54
Umpqua Holdings Corp		0.54
United Bankshares Inc/WV		0.53
United Fire Group Inc		0.32
Universal Technical Institute Inc		0.05
Vectren Corp		0.54
Vornado Realty Trust		0.54
Waste Management Inc		0.54
Weingarten Realty Investors		0.54
Westamerica Bancorporation		0.53
Westar Energy Inc		0.54
Western Union Co/The		0.53
Williams Cos Inc/The		0.53
Wisconsin Energy Corp		0.54
Xcel Energy Inc		0.54
		100	%

The following table represents the equity basket holdings underlying the total return swaps with JPM US Airlines Index as of September 30, 2014.

Security Description	Index Weight
JPM US Airlines Index
American Airlines Group Inc		25.41	%
Delta Air Lines Inc		30.47
JetBlue Airways Corp		3.19
Southwest Airlines Co		23.29
United Continental Holdings Inc		17.64
		100	%

The following table represents the equity basket holdings underlying the total return swap with JPM MSCI China Index as of September 30, 2014.

Security Description	Index Weight
JPM MSCI China Index
AAC Technologies Holdings Inc		0.71	%
Agricultural Bank of China Ltd		1.65
Bank of China Ltd		6.15
Bank of Communications Co Ltd		1.05
Beijing Enterprises Holdings Ltd		0.73
Brilliance China Automotive Holdings Ltd		0.89
Byd Co Ltd		0.72
China CITIC Bank Corp Ltd		0.85
China Communications Construction Co Ltd		0.55
China Construction Bank Corp		8.69
China Everbright International Ltd		0.55
China Gas Holdings Ltd		0.57
China Life Insurance Co Ltd		3.57
China Longyuan Power Group Corp Ltd		0.50
China Mengniu Dairy Co Ltd		0.99

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Index Weight
JPM MSCI China Index (cont'd)
China Merchants Bank Co Ltd		1.37	%
China Merchants Holdings International C		0.60
China Minsheng Banking Corp Ltd		1.01
China Mobile Ltd		11.21
China Oilfield Services Ltd		0.81
China Overseas Land & Investment Ltd		1.77
China Pacific Insurance Group Co Ltd		1.58
China Petroleum & Chemical Corp		3.84
China Resources Enterprise Ltd		0.49
China Resources Land Ltd		0.68
China Resources Power Holdings Co Ltd		0.86
China Shenhua Energy Co Ltd		1.65
China Telecom Corp Ltd		1.41
China Unicom Hong Kong Ltd		1.21
CITIC Ltd		0.47
CNOOC Ltd		5.09
Dongfeng Motor Group Co Ltd		0.74
ENN Energy Holdings Ltd		0.84
Great Wall Motor Co Ltd		0.71
Hengan International Group Co Ltd		1.26
Huaneng Power International Inc		0.59
ICBC		7.95
Kunlun Energy Co Ltd		0.80
Lenovo Group Ltd		1.54
PetroChina Co Ltd		4.62
PICC Property & Casualty Co Ltd		0.98
Ping An Insurance Group Co of China Ltd		2.65
Tencent Holdings Ltd		12.93
Tingyi Cayman Islands Holding Corp		0.90
Want Want China Holdings Ltd		1.27
		100	%

The following table represents the equity basket holdings underlying the total return swap with JPM US Machinery Index as of September 30, 2014.

Security Description	Index Weight
JPM US Machinery Index
AGCO Corp		1.59	%
Caterpillar Inc		25.29
Cummins Inc		9.26
Deere & Co		10.74
Dover Corp		5.34
Flowserve Corp		3.76
Illinois Tool Works Inc		12.70
Ingersoll-Rand PLC		6.06
Joy Global Inc		2.26
PACCAR Inc		7.92
Parker-Hannifin Corp		6.33
Pentair PLC		4.91
SPX Corp		1.40
Xylem Inc/NY		2.44
		100	%

The following table represents the equity basket holdings underlying the total return swap with JPM Aerospace Index as of September 30, 2014.

Security Description	Index Weight
JPM Aerospace Index
Airbus Group NV		13.90	%
B/E Aerospace Inc		2.73
Boeing Co/The		30.62
Bombardier Inc		1.86
Precision Castparts Corp		11.98
Rolls-Royce Holdings PLC		8.49
Safran SA		7.70
Textron Inc		4.41
Thales SA		2.06
TransDigm Group Inc		3.04
United Technologies Corp		10.58
Zodiac Aerospace		2.63
		100	%

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Global Strategist Portfolio

@ 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.

AUD — Australian Dollar

BRL — Brazilian Real

CAD — Canadian Dollar

CHF — Swiss Franc

CLP — Chilean Peso

DKK — Danish Krone

EUR — Euro

GBP — British Pound

HKD — Hong Kong Dollar

HUF — Hungarian Forint

IDR — Indonesian Rupiah

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

Portfolio Composition

Classification	Percentage of Total Investments
Common Stocks		58.1	%
Fixed Income Securities		25.6
Short-Term Investments		16.0
Other**		0.3
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 $253,814,000 with net unrealized appreciation of approximately $618,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $1,654,000 and does not include open swap agreements with net unrealized appreciation of approximately $1,750,000.

The accompanying notes are an integral part of the financial statements.
37

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Global Strategist Portfolio

Statement of Assets and Liabilities	September 30, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $355,360)	$	402,795
Investment in Security of Affiliated Issuer, at Value (Cost $73,175)		73,165
Total Investments in Securities, at Value (Cost $428,535)		475,960
Foreign Currency, at Value (Cost $1,333)		1,314
Receivable for Variation Margin on Futures Contracts		7,374
Unrealized Appreciation on Swap Agreements		3,698
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		3,476
Interest Receivable		1,328
Receivable for Investments Sold		597
Receivable for Swap Agreements Termination		503
Dividends Receivable		456
Receivable for Portfolio Shares Sold		394
Tax Reclaim Receivable		130
Receivable from Affiliate		3
Other Assets		45
Total Assets		495,278
Liabilities:
Payable for Investments Purchased		19,571
Unrealized Depreciation on Swap Agreements		2,137
Due to Broker		1,933
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		1,822
Payable for Portfolio Shares Redeemed		772
Premium Received on Open Swap Agreements		718
Payable for Advisory Fees		614
Payable for Swap Agreements Termination		313
Payable for Sub Transfer Agency Fees — Class I		8
Payable for Sub Transfer Agency Fees — Class A		215
Payable for Sub Transfer Agency Fees — Class L		24
Payable for Shareholder Services Fees — Class A		76
Payable for Distribution and Shareholder Services Fees — Class L		17
Payable for Variation Margin on Swap Agreements		82
Payable for Trustees' Fees and Expenses		80
Payable for Custodian Fees		49
Payable for Administration Fees		31
Payable for Professional Fees		17
Payable for Transfer Agent Fees — Class I		2
Payable for Transfer Agent Fees — Class A		11
Payable for Transfer Agent Fees — Class L		3
Other Liabilities		157
Total Liabilities		28,652
Net Assets	$	466,626
Net Assets Consist Of:
Paid-in-Capital	$	399,923
Accumulated Undistributed Net Investment Income		3,936
Accumulated Undistributed Net Realized Gain		11,413
Unrealized Appreciation (Depreciation) on:
Investments		47,435
Investments in Affiliates		(10	)
Futures Contracts		618
Swap Agreements		1,750
Foreign Currency Forward Exchange Contracts		1,654
Foreign Currency Translations		(93	)
Net Assets	$	466,626

The accompanying notes are an integral part of the financial statements.
38

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Global Strategist Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2014 (000)
CLASS I:
Net Assets	$	72,952
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,293,706
Net Asset Value, Offering and Redemption Price Per Share	$	16.99
CLASS A:
Net Assets	$	365,642
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		21,655,874
Net Asset Value, Redemption Price Per Share	$	16.88
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.94
Maximum Offering Price Per Share	$	17.82
CLASS L:
Net Assets	$	28,032
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,669,865
Net Asset Value, Offering and Redemption Price Per Share	$	16.79

The accompanying notes are an integral part of the financial statements.
39

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Global Strategist Portfolio

Statement of Operations	Year Ended September 30, 2014 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $396 of Foreign Taxes Withheld)	$	7,705
Interest from Securities of Unaffiliated Issuers		4,948
Dividends from Security of Affiliated Issuer (Note G)		41
Total Investment Income		12,694
Expenses:
Advisory Fees (Note B)		2,108
Shareholder Services Fees — Class A (Note D)		938
Distribution and Shareholder Services Fees — Class L (Note D)		218
Sub Transfer Agency Fees		271
Sub Transfer Agency Fees — Class I		15
Sub Transfer Agency Fees — Class A		335
Sub Transfer Agency Fees — Class L		32
Custodian Fees (Note F)		435
Administration Fees (Note C)		375
Professional Fees		148
Shareholder Reporting Fees		142
Pricing Fees		136
Transfer Agency Fees (Note E)		2
Transfer Agency Fees — Class I (Note E)		9
Transfer Agency Fees — Class A (Note E)		42
Transfer Agency Fees — Class L (Note E)		13
Registration Fees		22
Trustees' Fees and Expenses		16
Other Expenses		32
Total Expenses		5,289
Waiver of Advisory Fees (Note B)		(219	)
Rebate from Morgan Stanley Affiliate (Note G)		(78	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(24	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(17	)
Net Expenses		4,949
Net Investment Income		7,745
Realized Gain (Loss):
Investments Sold		13,853
Investments in Affiliates		(—	@)
Foreign Currency Forward Exchange Contracts		(1,048	)
Foreign Currency Transactions		(55	)
Futures Contracts		2,997
Swap Agreements		(2,559	)
Net Realized Gain		13,188
Change in Unrealized Appreciation (Depreciation):
Investments		14,617
Foreign Currency Forward Exchange Contracts		3,258
Foreign Currency Translations		(141	)
Futures Contracts		2,090
Swap Agreements		(594	)
Net Change in Unrealized Appreciation (Depreciation)		19,230
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		32,418
Net Increase in Net Assets Resulting from Operations	$	40,163

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
40

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Global Strategist Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2014 (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	7,745		$	7,327
Net Realized Gain		13,188			32,434
Net Change in Unrealized Appreciation (Depreciation)		19,230			14,274
Net Increase in Net Assets Resulting from Operations		40,163			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		25,332		��	7,208
Issued due to a tax-free reorganization		—			23,950
Distributions Reinvested		4,536			105
Redeemed		(9,847	)		(8,420	)
*Class A:**
Subscribed		23,787			3,837
Distributions Reinvested		30,252			53
Conversion from Class H		—			345,585
Redeemed		(63,566	)		(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		1,835			1,036
Issued due to a tax-free reorganization		—			35,288
Distributions Reinvested		2,203			42
Redeemed		(5,157	)		(10,816	)
Net Increase in Net Assets Resulting from Capital Share Transactions		9,375			357,129
Total Increase in Net Assets		11,872			410,489
Net Assets:
Beginning of Period		454,754			44,265
End of Period (Including Accumulated Undistributed Net Investment Income of $3,936 and $4,051)	$	466,626		$	454,754

The accompanying notes are an integral part of the financial statements.
41

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Global Strategist Portfolio

Statements of Changes in Net Assets (cont'd)	Year Ended September 30, 2014 (000)			Year Ended September 30, 2013 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1,511			444
Shares Issued due to a tax-free reorganization		—			1,593
Shares Issued on Distributions Reinvested		284			7
Shares Redeemed		(578	)		(528	)
Net Increase in Class I Shares Outstanding		1,217			1,516
*Class A:**
Shares Subscribed		1,412			235
Shares Issued on Distributions Reinvested		1,903			3
Conversion from Class H		—			20,983
Shares Redeemed		(3,794	)		(436	)
Net Increase (Decrease) in Class A Shares Outstanding		(479	)		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		110			63
Shares Issued due to a tax-free reorganization		—			2,356
Shares Issued on Distributions Reinvested		139			3
Shares Redeemed		(309	)		(693	)
Net Increase (Decrease) in Class L Shares Outstanding		(60	)		1,729

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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

The accompanying notes are an integral part of the financial statements.
42

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Global Strategist Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	16.96		$	15.22		$	12.50		$	12.55		$	11.66
Income (Loss) from Investment Operations:
Net Investment Income†		0.34			0.35			0.14			0.18			0.21
Net Realized and Unrealized Gain (Loss)		1.15			1.44			2.79			(0.02	)		0.91
Total from Investment Operations		1.49			1.79			2.93			0.16			1.12
Distributions from and/or in Excess of:
Net Investment Income		(0.23	)		(0.05	)		(0.21	)		(0.21	)		(0.23	)
Net Realized Gain		(1.23	)		—			—			—			—
Total Distributions		(1.46	)		(0.05	)		(0.21	)		(0.21	)		(0.23	)
Net Asset Value, End of Period	$	16.99		$	16.96		$	15.22		$	12.50		$	12.55
Total Return++		9.37	%		11.79	%		23.66	%		1.07	%		9.77	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	72,952		$	52,170		$	23,756		$	25,192		$	22,706
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.72	%+††		0.69	%+		1.37	%+		1.30	%+††		0.89	%+††
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			0.76	%+		N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.99	%+††		2.18	%+		1.01	%+		1.35	%+††		1.73	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%		0.01	%		0.02	%		0.01	%		0.01	%
Portfolio Turnover Rate		62	%		107	%		168	%		164	%		176	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.83	%††		0.82	%		N/A			N/A			N/A
Net Investment Income to Average Net Assets		1.88	%††		2.05	%		N/A			N/A			N/A

† 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.

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

The accompanying notes are an integral part of the financial statements.
43

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Global Strategist Portfolio

	Class A*
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	16.88		$	15.18		$	12.47		$	12.52		$	11.63
Income (Loss) from Investment Operations:
Net Investment Income†		0.27			0.42			0.10			0.15			0.18
Net Realized and Unrealized Gain (Loss)		1.15			1.32			2.79			(0.03	)		0.91
Total from Investment Operations		1.42			1.74			2.89			0.12			1.09
Distributions from and/or in Excess of:
Net Investment Income		(0.19	)		(0.04	)		(0.18	)		(0.17	)		(0.20	)
Net Realized Gain		(1.23	)		—			—			—			—
Total Distributions		(1.42	)		(0.04	)		(0.18	)		(0.17	)		(0.20	)
Net Asset Value, End of Period	$	16.88		$	16.88		$	15.18		$	12.47		$	12.52
Total Return++		9.02	%		11.49	%		23.33	%		0.83	%		9.52	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	365,642		$	373,559		$	20,487		$	16,857		$	17,169
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.07	%+††		0.47	%+^		1.64	%+		1.55	%+††		1.14	%+††
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			1.03	%+^		N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.64	%+††		2.60	%+^		0.69	%+		1.10	%+††		1.48	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%		0.01	%		0.02	%		0.01	%		0.01	%
Portfolio Turnover Rate		62	%		107	%		168	%		164	%		176	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.14	%††		1.11	%		N/A			N/A			N/A
Net Investment Income to Average Net Assets		1.57	%††		1.96	%		N/A			N/A			N/A

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

† 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.

†† 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.

The accompanying notes are an integral part of the financial statements.
44

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Global Strategist Portfolio

	Class L
	Year Ended September 30,						Period from April 27, 2012^ to
Selected Per Share Data and Ratios	2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	16.78		$	15.15		$	14.42
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		0.19			0.23			(0.02	)
Net Realized and Unrealized Gain		1.15			1.42			0.78
Total from Investment Operations		1.34			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	$	16.79		$	16.78		$	15.15
Total Return++		8.49	%		10.91	%		5.30	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	28,032		$	29,025		$	11
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.57	%+††		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⁾		1.14	%+††		1.44	%+^^		(0.29	)%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%		0.01	%		0.03	%*
Portfolio Turnover Rate		62	%		107	%		168	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.70	%††		1.54	%		N/A
Net Investment Income to Average Net Assets		1.01	%††		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.
45

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements

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.

Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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; (3) all other equity portfolio securities for which over-the-counter ("OTC") 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.

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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.)

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 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	$	—	$	39	$	—	$	39
Agency Fixed Rate Mortgages		—		12,020		—		12,020
Asset-Backed Securities		—		955		—		955
Collateralized Mortgage Obligations — Agency Collateral Series		—		1,830		—		1,830
Commercial Mortgage-Backed Securities		—		3,875		—		3,875
Corporate Bonds		—		34,693		—		34,693
Mortgages — Other		—		1,379		—		1,379
Sovereign		—		54,671		—		54,671
U.S. Treasury Securities		—		12,185		—		12,185
Total Fixed Income Securities		—		121,647		—		121,647
Common Stocks
Aerospace & Defense		3,788		—		—		3,788
Air Freight & Logistics		1,375		—		—		1,375
Airlines		299		—		—		299
Auto Components		1,820		—		—		1,820
Automobiles		4,281		—		—		4,281
Banks		36,719		—		—		36,719
Beverages		6,319		—		—		6,319
Biotechnology		5,025		—		—		5,025
Building Products		951		—		—		951
Capital Markets		5,933		—		—		5,933
Chemicals		6,353		—		—		6,353
Commercial Services & Supplies		1,609		—		—		1,609
Communications Equipment		3,193		—		—		3,193
Construction & Engineering		1,043		—		—		1,043
Construction Materials		448		—		—		448
Consumer Finance		1,230		—		—		1,230
Containers & Packaging		328		—		—		328
Distributors		10		—		—		10
Diversified Consumer Services		151		—		—		151
Diversified Financial Services		2,030		—		—		2,030
Diversified Telecommunication Services		8,235		—		—		8,235
Electric Utilities		5,502		—		—		5,502
Electrical Equipment		2,461		—		—		2,461
Electronic Equipment, Instruments & Components		1,673		—		—		1,673
Energy Equipment & Services		3,710		—		—		3,710
Food & Staples Retailing		7,793		—		—		7,793
Food Products		7,461		—		—		7,461
Gas Utilities		836		—		—		836

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (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)
Health Care Equipment & Supplies	$	4,630	$	—	$	—	$	4,630
Health Care Providers & Services		4,342		—		—		4,342
Health Care Technology		181		—		—		181
Hotels, Restaurants & Leisure		3,647		—		—		3,647
Household Durables		877		—		—		877
Household Products		5,172		—		—		5,172
Independent Power Producers & Energy Traders		166		—		—		166
Industrial Conglomerates		3,322		—		—		3,322
Information Technology Services		5,497		—		—		5,497
Insurance		7,318		—		—		7,318
Internet & Catalog Retail		1,270		—		—		1,270
Internet Software & Services		3,435		—		—		3,435
Leisure Products		85		—		—		85
Life Sciences Tools & Services		1,045		—		—		1,045
Machinery		4,916		—		—		4,916
Marine		395		—		—		395
Media		8,571		—		—		8,571
Metals & Mining		5,381		—		—		5,381
Multi-Utilities		3,572		—		—		3,572
Multi-line Retail		741		—		—		741
Oil, Gas & Consumable Fuels		22,325		—		—		22,325
Paper & Forest Products		277		—		—		277
Personal Products		1,227		—		—		1,227
Pharmaceuticals		19,767		—		—		19,767
Professional Services		1,418		—		—		1,418
Real Estate Investment Trusts (REITs)		5,352		—		—		5,352
Real Estate Management & Development		2,689		—		—		2,689
Road & Rail		3,960		—		—		3,960
Semiconductors & Semiconductor Equipment		4,154		—		—		4,154
Software		5,532		—		—		5,532
Specialty Retail		3,672		—		—		3,672
Tech Hardware, Storage & Peripherals		9,217		—		—		9,217
Textiles, Apparel & Luxury Goods		2,357		—		—		2,357
Thrifts & Mortgage Finance		97		—		—		97
Tobacco		4,384		—		—		4,384
Trading Companies & Distributors		1,522		—		—		1,522
Transportation Infrastructure		584		—		—		584

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)
Water Utilities	$	5		$	—		$	—	$	5
Wireless Telecommunication Services		2,816			—			—		2,816
Total Common Stocks		276,494			—			—		276,494
Investment Companies		1,528			—			—		1,528
Rights		21			—	†		—		21	†
Warrants		4			—			—		4
Short-Term Investments
Investment Company		73,049			—			—		73,049
U.S. Treasury Securities		—			3,217			—		3,217
Total Short-Term Investments		73,049			3,217			—		76,266
Foreign Currency Forward Exchange Contracts		—			3,476			—		3,476
Futures Contracts		1,613			—			—		1,613
Credit Default Swap Agreements		—			60			—		60
Interest Rate Swap Agreements		—			295			—		295
Total Return Swap Agreements		—			3,585			—		3,585
Total Assets		352,709			132,280	†		—		484,989	†
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(1,822	)		—		(1,822	)
Futures Contracts		(995	)		—			—		(995	)
Credit Default Swap Agreements		—			(49	)		—		(49	)
Interest Rate Swap Agreements		—			(53	)		—		(53	)
Total Return Swap Agreements		—			(2,088	)		—		(2,088	)
Total Liabilities		(995	)		(4,012	)		—		(5,007	)
Total	$	351,714		$	128,268	†	$	—	$	479,982	†

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

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of September 30, 2014, securities with a total value of approximately $120,085,000 transferred from Level 2 to Level 1. At September 30, 2013, the fair value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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 September 30, 2014	$	—

@ Value is less than $500.

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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

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

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 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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability, respectively, 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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 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

3,476

Futures Contracts

Variation Margin on
Futures Contracts

Commodity Risk

427

(a)

Futures Contracts

Variation Margin on
Futures Contracts

Currency Risk

121

(a)

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

562

(a)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

503

(a)

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Credit Risk

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Equity Risk

3,585

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Interest Rate Risk

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

242

(a)

Total

9,029

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

(1,822

)

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

(856

)(a)

Futures Contracts

Variation Margin on

Futures Contracts

Interest Rate Risk

(139

)(a)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Credit Risk

(49

)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Equity Risk

(2,088

)

Swap Agreements

Variation Margin on

Swap Agreements

Interest Rate Risk

(53

)(a)

Total

(5,007

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(1,048	)
Commodity Risk	Futures Contracts		(579	)
Currency Risk	Futures Contracts		112
Equity Risk	Futures Contracts		5,988
Interest Rate Risk	Futures Contracts		(2,524	)
Credit Risk	Swap Agreements		(144	)
Equity Risk	Swap Agreements		(2,807	)
Interest Rate Risk	Swap Agreements		392
	Total	$	(610	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	3,258
Commodity Risk	Futures Contracts		427
Currency Risk	Futures Contracts		277
Equity Risk	Futures Contracts		1,492
Interest Rate Risk	Futures Contracts		(106	)
Credit Risk	Swap Agreements		11
Equity Risk	Swap Agreements		(181	)
Interest Rate Risk	Swap Agreements		(424	)
	Total	$	4,754

At September 30, 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	$	3,476	$	(1,822	)
Swap Agreements		3,698		(2,137	)
Total	$	7,174	$	(3,959	)

(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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, 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 and may be a feature in certain Master Agreements. In the event the Portfolio exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Portfolio's net liability may be delayed or denied.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 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	$	363	$	(31	)	$	(313	)	$	19
Bank of Montreal		317		(1	)		—			316
Bank of New York Mellon		7		—			—			7
Barclays Bank PLC		1,090		(792	)		—			298
Citibank NA		233		(233	)		—			0
Commonwealth Bank of Australia		245		—			—			245
Deutsche Bank AG		386		—			(260	)		126
Deutsche Bank AG London		142		(117	)		—			25
Goldman Sachs International		2,379		(10	)		(1,170	)		1,199
HSBC Bank PLC		355		(355	)		—			0
JPMorgan Chase Bank NA		1,095		(34	)		(190	)		871
Northern Trust Company		2		—			—			2
Royal Bank of Scotland PLC		197		(169	)		—			28
State Street Bank and Trust Co.		23		(13	)		—			10
UBS AG		340		(340	)		—			0
Total	$	7,174	$	(2,095	)	$	(1,933	)	$	3,146

(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	$	61	$	(31	)	$	—		$	30
Bank of Montreal		1		(1	)		—			0
Barclays Bank PLC		2,109		(792	)		(1,298	)		19
Citibank NA		344		(233	)		(63	)		48
Credit Suisse International		1		—			—			1
Deutsche Bank AG London		117		(117	)		—			0
Goldman Sachs International		10		(10	)		—			0
HSBC Bank PLC		699		(355	)		—			344
JPMorgan Chase Bank NA		34		(34	)		—			0
Royal Bank of Scotland PLC		169		(169	)		—			0
State Street Bank and Trust Co.		13		(13	)		—			0
UBS AG		344		(340	)		—			4
Westpac Banking Corp.		57		—			—			57
Total	$	3,959	$	(2,095	)	$	(1,361	)	$	503

For the year ended September 30, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount...	$	281,307,000
Futures Contracts:
Average monthly original value...	$	226,658,000
Swap Agreements:
Average monthly notional amount...	$	275,857,000

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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

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 (as defined herein) 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 year ended September 30, 2014, approximately $219,000 of advisory fees were waived and approximately $43,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

providing shareholder support services to investors who purchase Class A and Class L shares.

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $153,717,000 and $204,598,000, respectively. For the year ended September 30, 2014, purchases and sales of long-term U.S. Government securities were approximately $97,744,000 and $96,318,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the year ended September 30, 2014, advisory fees paid were reduced by approximately $77,000 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 year ended September 30, 2014 is as follows:

Value September 30, 2013 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2014 (000)
$	26,991			$	191,582			$	145,524			$	37			$	73,049

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 year ended September 30, 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 September 30, 2014.

A summary of the Portfolio's transactions in shares of the Emerging Markets Portfolio during the year ended September 30, 2014 is as follows:

Value September 30, 2013 (000)				Purchases at Cost (000)				Sales (000)				Realized Loss (000)				Dividend Income (000)				Value September 30, 2014 (000)
$	112			$	4			$	—			$	(—	@)		$	4			$	116

@ Amount is less than $500.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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, 2014 remains subject to examination by taxing authorities.

2014 Distributions Paid From:				2013 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)
$	18,470	$	19,196	$	675

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, basis adjustments for swap transactions, paydown adjustments, distribution redesignations 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, 2014:

Accumulated Undistributed Net Investment Income (000)				Accumulated Undistributed Net Realized Gain (000)				Paid-in- Capital (000)
$	(2,885	)		$	2,885			$	—

At September 30, 2014, 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)
$	18,006			$	6,707

At September 30, 2014, the aggregate cost for Federal income tax purposes is approximately $434,345,000. The aggregate

gross unrealized appreciation is approximately $58,216,000 and the aggregate gross unrealized depreciation is approximately $16,601,000 resulting in net unrealized appreciation of approximately $41,615,000.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Global Strategist Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Global Strategist Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Global Strategist Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2014, the results of its operations for the year then ended, the changes in its net assets for the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 26, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Federal Tax Notice (unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Portfolio during its taxable year ended September 30, 2014. For corporate shareholders 9.52% of the dividends qualified for the dividends received deduction.

The Portfolio designated and paid approximately $19,196,000 as a long-term capital gain distribution.

For Federal income tax purposes, the following information is furnished with respect to the Portfolio's earnings for its taxable year ended September 30, 2014. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Portfolio designated up to a maximum of approximately $7,708,000 as taxable at this lower rate.

In January, the Portfolio provides tax information to shareholders for the preceding calendar year.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 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 RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• 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 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

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

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

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

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.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

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

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (69)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Michael Bozic (73)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
April
1994

100

Trustee and member of the Hillsdale College Board of Trustees

Kathleen A. Dennis (61)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various non-profit organizations.

Dr. Manuel H. Johnson (65)
c/o Johnson Smick
International, Inc.
220 I Street, N.E.
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

100

Director of NVR, Inc. (home construction).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Joseph J. Kearns (72)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

101

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Michael F. Klein (55)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (78)
522 Fifth Avenue
New York, NY 10036

Chairperson
of the
Board and
Trustee

Chairperson of
the Boards since
July 2006 and
Trustee since
July 1991

100

None.

W. Allen Reed (67)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (82)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

101

Through December 31, 2012, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Position(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (66)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (51)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (47)
522 Fifth Avenue
New York, NY 10036

Chief Compliance Officer

Since
December
1997

Joseph C. Benedetti (49)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (49)
522 Fifth Avenue
New York, NY 10036

Treasurer and Principal Financial
Officer

Treasurer since July 2003 and Principal Financial Officer since September 2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (47)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

IFTGSANN
1057923 EXP 11.28.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

High Yield Portfolio

Annual Report

September 30, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Advisory Agreement Approval					4
Investment Overview					6
Portfolio of Investments					8
Statement of Assets and Liabilities					13
Statement of Operations					14
Statements of Changes in Net Assets					15
Financial Highlights					17
Notes to Financial Statements					21
Report of Independent Registered Public Accounting Firm					26
Federal Tax Notice					27
U.S. Privacy Policy					28
Trustee and Officer Information					31

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in High Yield Portfolio (the "Portfolio") performed during the latest twelve-month period.

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

October 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Expense Example (unaudited)

High Yield Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2014 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/14		Actual Ending Account Value 9/30/14		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	$	1,007.90	$	1,021.31	$	3.78	$	3.80		0.75	%
High Yield Portfolio Class A		1,000.00		1,005.50		1,019.95		5.13		5.17		1.02
High Yield Portfolio Class L		1,000.00		1,005.00		1,018.30		6.79		6.83		1.35
High Yield Portfolio Class IS		1,000.00		1,008.00		1,021.46		3.62		3.65		0.72

** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who provide the administrative and advisory services to the Portfolio. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services to be provided were necessary and appropriate for the conduct of the business and investment activities of the Portfolio and supported its decision to approve the Management Agreement.

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance as of December 31, 2013, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one-year period and the period since inception on February 7, 2012. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. The Board noted that the Portfolio's management fee and total expense ratio were lower than its peer group average. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; (ii) management fee was competitive with its peer group average; and (iii) total expense ratio was competitive with its peer group average.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

Resources of the Adviser and Historical Relationship Between the Portfolio and the Adviser

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited)

High Yield Portfolio

The High Yield Portfolio seeks total return.

Performance

For the fiscal year ended September 30, 2014, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 9.48%, net of fees. The Portfolio's Class I shares outperformed against the Portfolio's benchmark the Barclays Capital U.S. Corporate High Yield Index (the "Index"), which returned 7.20%.

Factors Affecting Performance

• After rallying for most of the period, risky assets paused late in the period as investors took stock of the changing fundamental backdrop and re-evaluated whether market risk premia are sufficient to compensate for these risks. In the U.S., investors increased their focus on when the Federal Reserve (Fed) will raise rates, potentially increasing the volatility in financial markets. In contrast, investors in Europe focused on the weakening fundamental backdrop, as economic growth continued to decelerate and inflation expectations continued their downward path, thereby putting pressure on the European Central Bank (ECB) to take additional unconventional action. On a global basis, expectations for growth continued to fall, and this has been reflected in weaker commodity prices and the strengthening U.S. dollar. These concerns, combined with the growing geopolitical tension in Syria and Iraq, contributed to an uncertain backdrop for investing.

• In the U.S., the Fed has maintained a view that rates will remain low for a "considerable time." The ECB eased policy rates and announced outright asset purchases of asset-backed securities (ABS) and covered bonds. The Bank of Japan continued to contemplate ways to ease financial conditions. Both Australian and New Zealand central banks have also turned slightly more dovish, meaning that they are more favorable toward maintaining low interest rates to foster economic growth. As long as the inflation backdrop remains steady, the risk of a sharp rise in interest rates appears minimal.

• The Treasury yield curve flattened during the period with two- and five-year yields rising between 20 and 30 basis points and 10- and 30-year yields falling between 20 and 60 basis points.

• Corporate credit performed well during the period. On a sector basis, financials continue to outperform industrials, supported by the financials sector's lower net issuance and continued secular de-risking. Credit spreads decompressed, with higher rated issuers outperforming those with lower-quality credit profiles.

• The high yield segment weakened in the latter part of the period, reflecting both the decompression witnessed in the investment grade market and less favorable supply demand characteristics. The rotation out of riskier assets was largely fueled by a rapidly changing macro environment, abundant new issue supply, significant outflows and waning risk appetite. In the last month of the period, total returns turned negative across the entire credit spectrum, including the high yield, investment grade and emerging markets credit markets. High yield particularly underperformed as lower-quality paper sold off.

• That said, we saw this volatility as a window to selectively add to the Portfolio's positions. In our view, little has changed fundamentally in the market — spreads have widened to 464 basis points over Treasuries and default rates remain historically low.

• We continued to underweight BB-rated credits, as they tend to be lower coupon and longer duration. Accordingly, we are overweight single B and CCC-rated credits, as well as overweight the four-to-seven-year portion of the market.

• Overall, a focus on middle-market high yield credit has contributed positively to relative performance, as these credits tended to exhibit considerably less volatility than the broader market.

• Individual credit selection was a positive for performance, as was an overweight to B- and CCC-rated credits. Our underweight to BB-rated credits helped, as these tended to be more highly correlated to interest rates and therefore suffered as rates rose during the period.

Management Strategies

• The Portfolio is focused on middle-market high yield credits, which we define as companies with $200 million to $1 billion of total debt outstanding. We believe that this segment of the

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

High Yield Portfolio

high yield market offers attractive opportunities, as market participants (including asset managers and sell-side research analysts) do not cover it as closely as they do the largest high yield credits.

• We positioned the Portfolio with a yield advantage of approximately 100 to 125 basis points relative to the Index. The Portfolio's duration was largely similar to that of the Index, while its average rating was B relative to the Index's average rating of B+.

• Although we may see an increase in defaults over the next year, we believe that yields offered by high yield credits are likely to compensate investors for the expected default rate.

* Minimum Investment

** Commenced operations on February 7, 2012

In accordance with SEC regulations, the Portfolio's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, Class L and Class IS shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (where applicable).

Performance Compared to the Barclays Capital U.S. Corporate High Yield Index⁽¹⁾ and the Lipper High Current Yield Bond Funds Index⁽²⁾

	Period Ended September 30, 2014 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years		Ten Years		Since Inception⁽⁶⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		9.48	%		—		—		12.90	%

	Period Ended September 30, 2014 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years		Ten Years		Since Inception⁽⁶⁾
Portfolio — Class A Shares w/o sales charges⁽⁴⁾		9.15	%		—		—		12.57	%
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁴⁾		4.49			—		—		10.76
Portfolio — Class L Shares w/o sales charges⁽⁴⁾		8.88			—		—		12.30
Barclays Capital U.S. Corporate High Yield Index		7.20			—		—		8.47
Lipper High Current Yield Bond Funds Index		6.84			—		—		8.17
Portfolio — Class IS Shares w/o sales charges⁽⁵⁾		—			—		—		0.89	#
Barclays Capital U.S. Corporate High Yield Index		—			—		—		0.59	#
Lipper High Current Yield Bond Funds Index		—			—		—		0.45	#

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. Returns for period less than one year are not annualized. For the most recent month-end performance figures, please visit www.morganstanley.com/im. Investment return and principal value will fluctuate so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Performance of share classes will vary due to differences in sales charges and expenses.

⁽¹⁾ The Barclays Capital U.S. Corporate High-Yield Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. Securities are classified as high yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes emerging market debt. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper High Current Yield Bond Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper High Current Yield Bond Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper High Current Yield Bond Funds classification.

⁽⁴⁾ Commenced operations on February 7, 2012.

⁽⁵⁾ Commenced operations on March 28, 2014.

⁽⁶⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date or initial offering of the respective share class of the Portfolio, not the inception of the Indexes.

# Not Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments

High Yield Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (99.5%)
Corporate Bonds (96.8%)
Basic Materials (5.2%)
American Gilsonite Co.
11.50%, 9/1/17 (a)	$	500	$	542
APERAM
7.75%, 4/1/18 (a)		350		365
Chemtura Corp.
5.75%, 7/15/21		50		50
Coveris Holdings SA
7.88%, 11/1/19 (a)		200		210
Hecla Mining Co.
6.88%, 5/1/21		200		189
Hexion US Finance Corp./ Hexion Nova Scotia Finance ULC
8.88%, 2/1/18		550		562
Permian Holdings, Inc.
10.50%, 1/15/18 (a)		240		246
Prince Mineral Holding Corp.
12.00%, 12/15/19 (a)		150		169
Signode Industrial Group Lux SA/ Signode Industrial Group US, Inc.
6.38%, 5/1/22 (a)		550		529
				2,862
Communications (8.0%)
Altice Finco SA
8.13%, 1/15/24 (a)		250		269
Altice SA
7.75%, 5/15/22 (a)		200		207
Bankrate, Inc.
6.13%, 8/15/18 (a)		350		346
Cablevision Systems Corp.
7.75%, 4/15/18		150		163
CBS Outdoor Americas Capital LLC/ CBS Outdoor Americas Capital Corp.
5.63%, 2/15/24 (a)		100		100
CCO Holdings LLC/CCO Holdings Capital Corp.
5.75%, 1/15/24		100		100
Columbus International, Inc.
7.38%, 3/30/21 (a)		450		470
CommScope, Inc.
5.50%, 6/15/24 (a)		100		99
Crown Castle International Corp.
5.25%, 1/15/23		250		249
inVentiv Health, Inc.
9.00%, 1/15/18 (a)		100		104
Lamar Media Corp.
5.38%, 1/15/24 (a)		250		252
MDC Partners, Inc.
6.75%, 4/1/20 (a)		550		569
Mediacom Broadband LLC/ Mediacom Broadband Corp.
5.50%, 4/15/21 (a)		100		99

	Face Amount (000)		Value (000)
Midcontinent Communications & Midcontinent Finance Corp.
6.25%, 8/1/21 (a)	$	350	$	355
Pacnet Ltd.
9.00%, 12/12/18 (a)		450		476
SBA Telecommunications, Inc.
5.75%, 7/15/20		250		256
T-Mobile USA, Inc.
6.84%, 4/28/23		250		258
				4,372
Consumer, Cyclical (20.0%)
Accuride Corp.
9.50%, 8/1/18		250		261
Air Canada
7.75%, 4/15/21 (a)		450		460
Algeco Scotsman Global Finance PLC,
8.50%, 10/15/18 (a)		200		206
10.75%, 10/15/19 (a)		200		193
Allegiant Travel Co.
5.50%, 7/15/19		50		51
Allied Specialty Vehicles, Inc.
8.50%, 11/1/19 (a)		350		367
American Airlines Group, Inc.
5.50%, 10/1/19 (a)		250		247
American Builders & Contractors Supply Co., Inc.
5.63%, 4/15/21 (a)		350		344
AV Homes, Inc.
8.50%, 7/1/19 (a)		100		99
CCM Merger, Inc.
9.13%, 5/1/19 (a)		100		106
Century Communities, Inc.
6.88%, 5/15/22 (a)		350		354
Chassix Holdings, Inc.
10.00%, 12/15/18 (a)(b)		350		313
Chassix, Inc.
9.25%, 8/1/18 (a)		50		50
Chester Downs & Marina LLC/ Chester Downs Finance Corp.
9.25%, 2/1/20 (a)		450		425
Churchill Downs, Inc.
5.38%, 12/15/21 (a)		100		101
Empire Today LLC/Empire Today Finance Corp.
11.38%, 2/1/17 (a)		175		177
Exide Technologies
8.63%, 2/1/18 (c)(d)		100		27
Gibson Brands, Inc.
8.88%, 8/1/18 (a)		350		344
Global Partners LP/GLP Finance Corp.
6.25%, 7/15/22 (a)		475		475
Golden Nugget Escrow, Inc.
8.50%, 12/1/21 (a)		250		253
Graton Economic Development Authority
9.63%, 9/1/19 (a)		300		344

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (cont'd)
Greektown Holdings LLC/ Greektown Mothership Corp.
8.88%, 3/15/19 (a)	$	350	$	350
Guitar Center, Inc.
6.50%, 4/15/19 (a)		350		317
Hilton Worldwide Finance LLC/ Hilton Worldwide Finance Corp.
5.63%, 10/15/21 (a)		250		258
IDQ Holdings, Inc.
11.50%, 4/1/17 (a)		150		163
JC Penney Corp., Inc.
8.13%, 10/1/19		500		490
Logan's Roadhouse, Inc.
10.75%, 10/15/17		100		76
Men's Wearhouse, Inc. (The)
7.00%, 7/1/22 (a)		100		101
Meritor, Inc.
6.25%, 2/15/24		100		102
Neiman Marcus Group Ltd., Inc.
8.75%, 10/15/21 (a)(b)		350		370
New Red Finance, Inc.
6.00%, 4/1/22 (a)(e)		50		50
Oshkosh Corp.
5.38%, 3/1/22		350		353
PC Nextco Holdings LLC/PC Nextco Finance, Inc.
8.75%, 8/15/19		260		263
Pittsburgh Glass Works LLC
8.00%, 11/15/18 (a)		405		431
Playa Resorts Holding BV
8.00%, 8/15/20 (a)		500		525
Rite Aid Corp.
6.75%, 6/15/21		500		514
RSI Home Products, Inc.
6.88%, 3/1/18 (a)		350		367
Seminole Hard Rock Entertainment, Inc./ Seminole Hard Rock International LLC
5.88%, 5/15/21 (a)		500		485
Sonic Automotive, Inc.
5.00%, 5/15/23		50		48
Sugarhouse HSP Gaming Prop Mezz LP/ Sugarhouse HSP Gaming Finance Corp.
6.38%, 6/1/21 (a)		125		120
United Continental Holdings, Inc.
6.38%, 6/1/18		400		420
				11,000
Consumer, Non-Cyclical (14.9%)
Acadia Healthcare Co., Inc.,
5.13%, 7/1/22		50		49
6.13%, 3/15/21		400		414
Ahern Rentals, Inc.
9.50%, 6/15/18 (a)		400		429

	Face Amount (000)		Value (000)
Albea Beauty Holdings SA
8.38%, 11/1/19 (a)	$	100	$	107
American Achievement Corp.
10.88%, 4/15/16 (a)		400		397
Amsurg Corp.
5.63%, 7/15/22 (a)		50		50
Aramark Services, Inc.
5.75%, 3/15/20		250		257
Armored Autogroup, Inc.
9.25%, 11/1/18		150		155
Beverages & More, Inc.
10.00%, 11/15/18 (a)		400		377
BioScrip, Inc.
8.88%, 2/15/21 (a)		100		103
Brand Energy & Infrastructure Services, Inc.
8.50%, 12/1/21 (a)		100		101
Bumble Bee Holdco SCA
9.63%, 3/15/18 (a)(b)		500		520
Cenveo Corp.
6.00%, 8/1/19 (a)		50		47
Crestview DS Merger Sub II, Inc.
10.00%, 9/1/21		304		337
DJO Finance LLC/DJO Finance Corp.
8.75%, 3/15/18		250		265
DynCorp International, Inc.
10.38%, 7/1/17		400		351
Global A&T Electronics Ltd.
10.00%, 2/1/19 (a)		200		181
Harland Clarke Holdings Corp.
9.75%, 8/1/18 (a)		50		54
Hologic, Inc.
6.25%, 8/1/20		306		317
Interactive Data Corp.
5.88%, 4/15/19 (a)		100		99
JLL/Delta Dutch Newco BV
7.50%, 2/1/22 (a)		100		101
KeHE Distributors LLC/KeHE Finance Corp.
7.63%, 8/15/21 (a)		370		393
Lantheus Medical Imaging, Inc.
9.75%, 5/15/17		400		398
Monitronics International, Inc.
9.13%, 4/1/20		550		569
MPH Acquisition Holdings LLC
6.63%, 4/1/22 (a)		350		354
Mustang Merger Corp.
8.50%, 8/15/21 (a)		270		281
Pinnacle Operating Corp.
9.00%, 11/15/20 (a)		400		428
RR Donnelley & Sons Co.
7.88%, 3/15/21		50		55
Safway Group Holding LLC/Safway Finance Corp.
7.00%, 5/15/18 (a)		100		102

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Non-Cyclical (cont'd)
Salix Pharmaceuticals Ltd.
6.00%, 1/15/21 (a)	$	350	$	380
Service Corp. International/US
5.38%, 1/15/22		100		102
TMS International Corp.
7.63%, 10/15/21 (a)		100		105
United Rentals North America, Inc.
5.75%, 11/15/24		100		102
US Foods, Inc.
8.50%, 6/30/19		100		106
Wells Enterprises, Inc.
6.75%, 2/1/20 (a)		100		103
				8,189
Energy (8.1%)
American Energy-Permian Basin LLC/ AEPB Finance Corp.
7.13%, 11/1/20 (a)		350		322
Approach Resources, Inc.
7.00%, 6/15/21		50		50
Bonanza Creek Energy, Inc.
6.75%, 4/15/21		50		52
Crestwood Midstream Partners LP/ Crestwood Midstream Finance Corp.
6.13%, 3/1/22		130		131
Energy XXI Gulf Coast, Inc.
6.88%, 3/15/24 (a)		350		330
EXCO Resources, Inc.,
7.50%, 9/15/18		100		96
8.50%, 4/15/22		250		238
Hiland Partners LP/Hiland Partners Finance Corp.
5.50%, 5/15/22 (a)		100		97
Kodiak Oil & Gas Corp.
5.50%, 1/15/21		50		51
Lightstream Resources Ltd.
8.63%, 2/1/20 (a)		500		497
Lonestar Resources America, Inc.
8.75%, 4/15/19 (a)		350		349
Memorial Resource Development Corp.
5.88%, 7/1/22 (a)		50		49
Northern Oil and Gas, Inc.
8.00%, 6/1/20		300		306
Northern Tier Energy LLC/ Northern Tier Finance Corp.
7.13%, 11/15/20		100		106
PetroQuest Energy, Inc.
10.00%, 9/1/17		250		262
Rice Energy, Inc.
6.25%, 5/1/22 (a)		500		490
Rosetta Resources, Inc.
5.88%, 6/1/24		100		98
Seven Generations Energy Ltd.
8.25%, 5/15/20 (a)		350		380

	Face Amount (000)		Value (000)
Triangle USA Petroleum Corp.
6.75%, 7/15/22 (a)	$	450	$	441
WPX Energy, Inc.
5.25%, 9/15/24		125		122
				4,467
Finance (9.2%)
Ardagh Finance Holdings SA
8.63%, 6/15/19 (a)(b)		450		454
Aston Escrow Corp.
9.50%, 8/15/21 (a)		100		98
Baytex Energy Corp.
5.63%, 6/1/24 (a)		350		337
Compiler Finance Sub, Inc.
7.00%, 5/1/21 (a)		500		475
CTR Partnership LP/CareTrust Capital Corp.
5.88%, 6/1/21 (a)		100		101
Forestar USA Real Estate Group, Inc.
8.50%, 6/1/22 (a)		350		360
Hockey Merger Sub 2, Inc.
7.88%, 10/1/21 (a)		300		309
Infinity Acquisition LLC/ Infinity Acquisition Finance Corp.
7.25%, 8/1/22 (a)		250		242
Jefferies Finance LLC/JFIN Co-Issuer Corp.
6.88%, 4/15/22 (a)		450		445
KCG Holdings, Inc.
8.25%, 6/15/18 (a)		450		470
Kennedy-Wilson, Inc.
5.88%, 4/1/24		350		353
Nationstar Mortgage LLC/Nationstar Capital Corp.,
6.50%, 8/1/18		250		251
7.88%, 10/1/20		50		51
Nuveen Investments, Inc.
9.13%, 10/15/17 (a)		100		108
Outerwall, Inc.
5.88%, 6/15/21 (a)		50		47
Oxford Finance LLC/Oxford Finance Co-Issuer, Inc.
7.25%, 1/15/18 (a)		350		366
Provident Funding Associates LP/PFG Finance Corp.
6.75%, 6/15/21 (a)		100		100
Radian Group, Inc.
5.50%, 6/1/19		100		99
Rivers Pittsburgh Borrower LP/ Rivers Pittsburgh Finance Corp.
9.50%, 6/15/19 (a)		122		131
Sabra Health Care LP/Sabra Capital Corp.
5.50%, 2/1/21		250		254
				5,051
Industrials (24.9%)
Abengoa Greenfield SA
6.50%, 10/1/19 (a)		200		199

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Accudyne Industries Borrower/ Accudyne Industries LLC
7.75%, 12/15/20 (a)	$	100	$	104
Aguila 3 SA
7.88%, 1/31/18 (a)		250		257
Artesyn Escrow, Inc.
9.75%, 10/15/20 (a)		250		251
Associated Asphalt Partners LLC/ Road Holdings III LLC/Associated Asphalt Finance
8.50%, 2/15/18 (a)		300		313
Associated Materials LLC/AMH New Finance, Inc.
9.13%, 11/1/17		200		197
BC Mountain LLC/BC Mountain Finance, Inc.
7.00%, 2/1/21 (a)		450		416
Belden, Inc.
5.25%, 7/15/24 (a)		50		48
BlueLine Rental Finance Corp.
7.00%, 2/1/19 (a)		450		463
Cequel Communications Holdings I LLC/ Cequel Capital Corp.
6.38%, 9/15/20 (a)		450		465
CEVA Group PLC,
4.00%, 5/1/18 (a)		400		375
9.00%, 9/1/21 (a)		100		100
Cleaver-Brooks, Inc.
8.75%, 12/15/19 (a)		100		109
Consolidated Container Co., LLC/ Consolidated Container Capital, Inc.
10.13%, 7/15/20 (a)		100		95
CPG Merger Sub LLC
8.00%, 10/1/21 (a)		350		356
CTP Transportation Products LLC/CTP Finance, Inc.
8.25%, 12/15/19 (a)		100		107
DH Services Luxembourg Sarl
7.75%, 12/15/20 (a)		50		53
DryShips, Inc.
5.00%, 12/1/14		100		99
Emeco Pty Ltd.
9.88%, 3/15/19 (a)		200		200
EnPro Industries, Inc.
5.88%, 9/15/22 (a)		102		104
Euramax International, Inc.
9.50%, 4/1/16		200		196
Florida East Coast Holdings Corp.
6.75%, 5/1/19 (a)		250		256
Gibraltar Industries, Inc.
6.25%, 2/1/21		50		52
Interline Brands, Inc.
10.00%, 11/15/18 (b)		400		419
Iracore International Holdings, Inc.
9.50%, 6/1/18 (a)		400		366

	Face Amount (000)		Value (000)
Jac Holding Corp.
11.50%, 10/1/19 (a)	$	300	$	308
JB Poindexter & Co., Inc.
9.00%, 4/1/22 (a)		250		270
Kemet Corp.
10.50%, 5/1/18		450		473
Kenan Advantage Group, Inc. (The)
8.38%, 12/15/18 (a)		100		105
Kratos Defense & Security Solutions, Inc.
7.00%, 5/15/19 (a)		350		349
LMI Aerospace, Inc.
7.38%, 7/15/19 (a)		300		301
Marquette Transportation Co., LLC/ Marquette Transportation Finance Corp.
10.88%, 1/15/17		342		359
Martin Midstream Partners LP/ Martin Midstream Finance Corp.
7.25%, 2/15/21		150		150
Michael Baker Holdings LLC/ Michael Baker Finance Corp.
8.88%, 4/15/19 (a)(b)		350		348
Michael Baker International LLC/ CDL Acquisition Co., Inc.
8.25%, 10/15/18 (a)		200		203
Navios Maritime Holdings, Inc./ Navios Maritime Finance II US, Inc.
8.13%, 2/15/19		550		520
Nuverra Environmental Solutions, Inc.
9.88%, 4/15/18		250		252
Plastipak Holdings, Inc.
6.50%, 10/1/21 (a)		300		306
Polymer Group, Inc.
6.88%, 6/1/19 (a)		50		50
Quality Distribution LLC/QD Capital Corp.
9.88%, 11/1/18		370		390
SAExploration Holdings, Inc.
10.00%, 7/15/19 (a)		350		346
Sequa Corp.
7.00%, 12/15/17 (a)		450		393
Summit Materials LLC/ Summit Materials Finance Corp.
10.50%, 1/31/20		350		388
Syncreon Group BV/Syncreon Global Finance US, Inc.
8.63%, 11/1/21 (a)		650		647
Tekni-Plex, Inc.
9.75%, 6/1/19 (a)		62		68
Tervita Corp.
8.00%, 11/15/18 (a)		300		304
Transfield Services Ltd.
8.38%, 5/15/20 (a)		50		52
Vander Intermediate Holding II Corp.
9.75%, 2/1/19 (a)(b)		100		105
Viasystems, Inc.
7.88%, 5/1/19 (a)		300		316

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Wise Metals Intermediate Holdings LLC/ Wise Holdings Finance Corp.
9.75%, 6/15/19 (a)	$	450	$	479
XPO Logistics, Inc.
7.88%, 9/1/19 (a)		500		519
Zachry Holdings, Inc.
7.50%, 2/1/20 (a)		100		103
				13,704
Technology (4.6%)
Advanced Micro Devices, Inc.,
6.75%, 3/1/19		50		51
7.00%, 7/1/24		350		336
BCP Singapore VI Cayman Financing Co., Ltd.
8.00%, 4/15/21 (a)		450		463
BMC Software, Inc.
7.25%, 6/1/18		250		248
Boxer Parent Co., Inc.
9.00%, 10/15/19 (a)(b)		450		416
First Data Corp.
11.75%, 8/15/21		315		366
Infor US, Inc.,
9.38%, 4/1/19		500		542
11.50%, 7/15/18		92		103
				2,525
Utilities (1.9%)
AES Corp.
4.88%, 5/15/23		250		239
DPL, Inc.
6.75%, 10/1/19 (a)(e)		200		204
GenOn Americas Generation LLC
8.50%, 10/1/21		450		424
LBC Tank Terminals Holding Netherlands BV
6.88%, 5/15/23 (a)		100		107
Sabine Pass LNG LP
6.50%, 11/1/20		50		52
				1,026
				53,196
Sovereign (1.3%)
Government (1.3%)
Select Medical Corp.
6.38%, 6/1/21		350		352
Waterjet Holdings, Inc.
7.63%, 2/1/20 (a)		350		363
				715
Variable Rate Senior Loan Interests (1.4%)
Consumer, Cyclical (0.1%)
Diamond Resorts Corp., Term Loan
5.50%, 12/31/14		75		75

	Face Amount (000)		Value (000)
Energy (0.5%)
Drillships Ocean Ventures, Inc., Term B
5.50%, 10/27/14	$	275	$	267
Industrials (0.6%)
Atkore international, Inc., Term Loan
7.75%, 12/31/14		300		298
OSG Bulk Ships, Inc., Exit Term Loan
5.25%, 2/5/15		50		50
				348
Technology (0.2%)
Aspect Software, Inc., Term B
7.25%, 11/7/14		96		96
				786
Total Fixed Income Securities (Cost $55,058)				54,697
Total Investments (99.5%) (Cost $55,058)				54,697
Other Assets in Excess of Liabilities (0.5%)				289
Net Assets (100.0%)			$	54,986

(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.

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

(e) When-issued security.

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		25.1	%
Consumer, Cyclical		20.1
Consumer, Non-Cyclical		15.0
Finance		9.2
Other*		9.2
Energy		8.2
Communications		8.0
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.
12

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

High Yield Portfolio

Statement of Assets and Liabilities	September 30, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $55,058)	$	54,697
Interest Receivable		1,221
Receivable for Investments Sold		454
Due from Adviser		44
Receivable for Portfolio Shares Sold		39
Tax Reclaim Receivable		—	@
Receivable from Affiliate		—	@
Other Assets		23
Total Assets		56,478
Liabilities:
Bank Overdraft		784
Payable for Investments Purchased		670
Payable for Professional Fees		10
Payable for Shareholder Services Fees — Class A		8
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Administration Fees		4
Payable for Portfolio Shares Redeemed		3
Payable for Transfer Agent Fees — Class I		—	@
Payable for Transfer Agent Fees — Class A		—	@
Payable for Transfer Agent Fees — Class L		—	@
Payable for Custodian Fees		1
Payable for Sub Transfer Agency Fees — Class I		—	@
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Other Liabilities		10
Total Liabilities		1,492
Net Assets	$	54,986
Net Assets Consist of:
Paid-in-Capital	$	54,768
Accumulated Undistributed Net Investment Income		303
Accumulated Undistributed Net Realized Gain		276
Unrealized Appreciation (Depreciation) on:
Investments		(361	)
Net Assets	$	54,986
CLASS I:
Net Assets	$	13,300
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,239,619
Net Asset Value, Offering and Redemption Price Per Share	$	10.73
CLASS A:
Net Assets	$	40,157
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		3,746,683
Net Asset Value, Redemption Price Per Share	$	10.72
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.48
Maximum Offering Price Per Share	$	11.20
CLASS L:
Net Assets	$	1,519
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		141,799
Net Asset Value, Offering and Redemption Price Per Share	$	10.72
CLASS IS:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		911
Net Asset Value, Offering and Redemption Price Per Share	$	10.74

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

High Yield Portfolio

Statement of Operations	Year Ended September 30, 2014 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	1,674
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		1,675
Expenses:
Professional Fees		152
Advisory Fees (Note B)		136
Registration Fees		38
Shareholder Services Fees — Class A (Note D)		21
Distribution and Shareholder Services Fees — Class L (Note D)		5
Shareholder Reporting Fees		26
Pricing Fees		23
Administration Fees (Note C)		18
Transfer Agency Fees (Note E)		1
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		7
Sub Transfer Agency Fees — Class I		—	@
Sub Transfer Agency Fees — Class A		3
Sub Transfer Agency Fees — Class L		1
Trustees' Fees and Expenses		1
Sub Transfer Agency Fees		—	@
Other Expenses		6
Total Expenses		445
Waiver of Advisory Fees (Note B)		(136	)
Expenses Reimbursed by Adviser (Note B)		(106	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		199
Net Investment Income		1,476
Realized Gain:
Investments Sold		321
Change in Unrealized Appreciation (Depreciation):
Investments		(643	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(322	)
Net Increase in Net Assets Resulting from Operations	$	1,154

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

High Yield Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2014 (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,476		$	935
Net Realized Gain		321			672
Net Change in Unrealized Appreciation (Depreciation)		(643	)		(88	)
Net Increase in Net Assets Resulting from Operations		1,154			1,519
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(910	)		(873	)
Net Realized Gain		(550	)		(270	)
*Class A:**
Net Investment Income		(339	)		(17	)
Net Realized Gain		(81	)		(3	)
*Class H:**
Net Investment Income		—			(26	)***
Net Realized Gain		—			(5	)***
Class L:
Net Investment Income		(60	)		(9	)
Net Realized Gain		(21	)		(3	)
Class IS:
Net Investment Income		(—	@)		—
Total Distributions		(1,961	)		(1,206	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		2,503			1,646
Distributions Reinvested		231			102
Redeemed		(1,800	)		(350	)
*Class A:**
Subscribed		42,604			752
Distributions Reinvested		395			9
Conversion from Class H		—			556
Redeemed		(3,475	)		(338	)
*Class H:**
Subscribed		—			477	***
Distributions Reinvested		—			21	***
Conversion to Class A		—			(556	)***
Redeemed		—			(148	)***
Class L:
Subscribed		1,661			341
Distributions Reinvested		69			2
Redeemed		(501	)		(127	)
Class IS:
Subscribed		10	**		—
Net Increase in Net Assets Resulting from Capital Share Transactions		41,697			2,387
Total Increase in Net Assets		40,890			2,700
Net Assets:
Beginning of Period		14,096			11,396
End of Period (Including Accumulated Undistributed Net Investment Income of $303 and $136)	$	54,986		$	14,096
(1) Capital Share Transactions:
Class I:
Shares Subscribed		230			150
Shares Issued on Distributions Reinvested		21			9
Shares Redeemed		(164	)		(32	)
Net Increase in Class I Shares Outstanding		87			127
*Class A:**
Shares Subscribed		3,929			68
Shares Issued on Distributions Reinvested		37			1
Conversion from Class H		—			51
Shares Redeemed		(319	)		(31	)
Net Increase in Class A Shares Outstanding		3,647			89

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

High Yield Portfolio

Statements of Changes in Net Assets (cont'd)	Year Ended September 30, 2014 (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 Increase (Decrease) in Class H Shares Outstanding		—			(19	)
Class L:
Shares Subscribed		152			31
Shares Issued on Distributions Reinvested		6			—	@@
Shares Redeemed		(46	)		(11	)
Net Increase in Class L Shares Outstanding		112			20
Class IS:
Shares Subscribed		1	**		—

@ Amount is less than $500.

@@ Amount is less than 500 shares.

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

** For the period March 31, 2014 through September 30, 2014.

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

High Yield Portfolio

	Class I
	Year Ended September 30,						Period from February 7, 2012^ to
Selected Per Share Data and Ratios	2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	11.00		$	10.71		$	10.00
Income from Investment Operations:
Net Investment Income†		0.75			0.81			0.50
Net Realized and Unrealized Gain		0.25			0.55			0.59
Total from Investment Operations		1.00			1.36			1.09
Distributions from and/or in Excess of:
Net Investment Income		(0.77	)		(0.81	)		(0.38	)
Net Realized Gain		(0.50	)		(0.26	)		—
Total Distributions		(1.27	)		(1.07	)		(0.38	)
Net Asset Value, End of Period	$	10.73		$	11.00		$	10.71
Total Return++		9.48	%		13.38	%		11.07	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13,300		$	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⁾		6.89	%+		7.42	%+		7.53	%+*††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.01	%*
Portfolio Turnover Rate		96	%		227	%		192	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.85	%		3.16	%		3.17	%*††
Net Investment Income to Average Net Assets		5.79	%		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.

†† 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.
17

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

High Yield Portfolio

	Class A**
	Year Ended September 30,						Period from February 7, 2012^ to
Selected Per Share Data and Ratios	2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	10.99		$	10.71		$	10.00
Income from Investment Operations:
Net Investment Income†		0.65			0.77			0.48
Net Realized and Unrealized Gain		0.31			0.55			0.59
Total from Investment Operations		0.96			1.32			1.07
Distributions from and/or in Excess of:
Net Investment Income		(0.73	)		(0.78	)		(0.36	)
Net Realized Gain		(0.50	)		(0.26	)		—
Total Distributions		(1.23	)		(1.04	)		(0.36	)
Net Asset Value, End of Period	$	10.72		$	10.99		$	10.71
Total Return++		9.15	%		13.01	%		10.92	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	40,157		$	1,092		$	107
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.02	%+		1.01	%+^^		0.99	%+*††
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		5.99	%+		7.04	%+^^		7.28	%+*††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.00	%§		0.01	%*
Portfolio Turnover Rate		96	%		227	%		192	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.06	%		4.22	%		3.42	%*††
Net Investment Income to Average Net Assets		4.95	%		3.83	%		4.85	%*††

** Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

^ 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.

†† 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.
18

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

High Yield Portfolio

	Class L
	Year Ended September 30,						Period from February 7, 2012^ to
Selected Per Share Data and Ratios	2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	10.99		$	10.70		$	10.00
Income from Investment Operations:
Net Investment Income†		0.67			0.75			0.46
Net Realized and Unrealized Gain		0.27			0.56			0.59
Total from Investment Operations		0.94			1.31			1.05
Distributions from and/or in Excess of:
Net Investment Income		(0.71	)		(0.76	)		(0.35	)
Net Realized Gain		(0.50	)		(0.26	)		—
Total Distributions		(1.21	)		(1.02	)		(0.35	)
Net Asset Value, End of Period	$	10.72		$	10.99		$	10.70
Total Return++		8.88	%		12.82	%		10.66	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,519		$	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⁾		6.14	%+		6.90	%+^^		7.03	%+*††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.01	%*
Portfolio Turnover Rate		96	%		227	%		192	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.52	%		4.11	%		3.67	%*††
Net Investment Income to Average Net Assets		4.97	%		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.

†† 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.
19

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

High Yield Portfolio

	Class IS
Selected Per Share Data and Ratios	Period from March 28, 2014^ to September 30, 2014
Net Asset Value, Beginning of Period	$	10.98
Income (Loss) from Investment Operations:
Net Investment Income†		0.37
Net Realized and Unrealized Loss		(0.27	)
Total from Investment Operations		0.10
Distributions from and/or in Excess of:
Net Investment Income		(0.34	)
Net Asset Value, End of Period	$	10.74
Total Return++		0.89	%#
Ratios and Supplemental Data:
Net Assets, End of Period, in (Thousands)	$	10
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.72	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		6.66	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*
Portfolio Turnover Rate		96	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation
Expenses to Average Net Assets		15.70	%*
Net Investment Loss to Average Net Assets		(8.32	)%*

^ 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements

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.

Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

• 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.)

able documents and, if necessary, available information concerning other securities in similar circumstances

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 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	$	—	$	53,196	$	—	$	53,196
Sovereign		—		715		—		715
Variable Rate Senior Loan Interests		—		786		—		786
Total Fixed Income Securities		—		54,697		—		54,697
Total Assets	$	—	$	54,697	$	—	$	54,697

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

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 year ended September 30, 2014, approximately $136,000 of advisory fees were waived and approximately $109,000 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $63,446,000 and $21,840,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended September 30, 2014.

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 year ended September 30, 2014, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the year ended September 30, 2014 is as follows:

Value September 30, 2013 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2014 (000)
$	—			$	40,741			$	40,741			$	1			$	—

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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, 2014 remains subject to examination by taxing authorities.

2014 Distributions Paid From:				2013 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)
$	1,880	$	81	$	1,206

Permanent differences, primarily due to paydown adjustments, resulted in the following reclassifications among the components of net assets at September 30, 2014:

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

@ Amount is less than 500

At September 30, 2014, 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)
$	512			$	82

At September 30, 2014, the aggregate cost for Federal income tax purposes is approximately $55,058,000. The aggregate gross unrealized appreciation is approximately $481,000 and the aggregate gross unrealized depreciation is approximately $842,000 resulting in net unrealized depreciation of approximately $361,000.

I. Other (unaudited): At September 30, 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 96% and 47%, for Class A and Class L shares, respectively.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
High Yield Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of High Yield Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of High Yield Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 26, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Federal Tax Notice (unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Portfolio during its taxable year ended September 30, 2014.

The Portfolio designated and paid approximately $81,000 as a long-term capital gain distribution.

In January, the Portfolio provides tax information to shareholders for the preceding calendar year.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 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 RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• 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 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

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

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

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

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.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

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

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address
of Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (69)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Michael Bozic (73)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
April
1994

100

Trustee and member of the Hillsdale College Board of Trustees

Kathleen A. Dennis (61)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various non-profit organizations.

Dr. Manuel H. Johnson (65)
c/o Johnson Smick
International, Inc.
220 I Street, N.E.
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

100

Director of NVR, Inc. (home construction).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address
of Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Joseph J. Kearns (72)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

101

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Michael F. Klein (55)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (78)
522 Fifth Avenue
New York, NY 10036

Chairperson
of the
Board and
Trustee

Chairperson of
the Boards since
July 2006 and
Trustee since
July 1991

100

None.

W. Allen Reed (67)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (82)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

101

Through December 31, 2012, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (66)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (51)
522 Fifth Avenue
New York, NY 10036

President and
Principal
Executive
Officer

Since
September
2013

Stefanie V. Chang Yu (47)
522 Fifth Avenue
New York, NY 10036

Chief
Compliance
Officer

Since
December
1997

Joseph C. Benedetti (49)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (49)
522 Fifth Avenue
New York, NY 10036

Treasurer and
Principal
Financial
Officer

Treasurer
since July
2003 and
Principal
Financial
Officer since
September
2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (47)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

IFTHYANN
1044182 EXP 11.28.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Limited Duration Portfolio

Annual Report

September 30, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Advisory Agreement Approval					4
Investment Overview					6
Portfolio of Investments					9
Statement of Assets and Liabilities					15
Statement of Operations					17
Statements of Changes in Net Assets					18
Financial Highlights					19
Notes to Financial Statements					22
Report of Independent Registered Public Accounting Firm					30
U.S. Privacy Policy					31
Trustee and Officer Information					34

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Limited Duration Portfolio (the "Portfolio") performed during the latest twelve-month period.

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

October 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Expense Example (unaudited)

Limited Duration Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2014 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/14		Actual Ending Account Value 9/30/14		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	$	1,005.40	$	1,022.41	$	2.66	$	2.69		0.53	%
Limited Duration Portfolio Class A		1,000.00		1,004.30		1,020.66		4.42		4.46		0.88
Limited Duration Portfolio Class L		1,000.00		1,002.20		1,018.90		6.17		6.23		1.23

** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2013, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one- and three-year periods but below its peer group average for the five-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that the Portfolio's management fee and total expense ratio were higher than its peer group average. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; and (ii) management fee and total expense ratio were acceptable.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

Resources of the Adviser and Historical Relationship Between the Portfolio and the Adviser

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited)

Limited Duration Portfolio

The Limited Duration Portfolio seeks above-average total return over a market cycle of three to five years.

Performance

For the fiscal year ended September 30, 2014, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 2.06%, net of fees. The Portfolio's Class I shares outperformed against the Portfolio's benchmark, Barclays Capital 1-3 Year Government/Credit Index (the "Index"), which returned 0.77%.

Factors Affecting Performance

• After rallying for most of the period, risky assets paused late in the period as investors took stock of the changing fundamental backdrop and re-evaluated whether market risk premia are sufficient to compensate for these risks. In the U.S., investors increased their focus on when the Federal Reserve (Fed) will raise rates, potentially increasing the volatility in financial markets. In contrast, investors in Europe focused on the weakening fundamental backdrop, as economic growth continued to decelerate and inflation expectations continued their downward path, thereby putting pressure on the European Central Bank (ECB) to take additional unconventional action. On a global basis, expectations for growth continued to fall, and this has been reflected in weaker commodity prices and the strengthening U.S. dollar. These concerns, combined with the growing geopolitical tension in Syria and Iraq, contributed to an uncertain backdrop for investing.

• In the U.S., the Fed has maintained a view that rates will remain low for a "considerable time." The ECB eased policy rates and announced outright asset purchases of asset-backed securities (ABS) and covered bonds. The Bank of Japan continued to contemplate ways to ease financial conditions. Both Australian and New Zealand central banks have also turned slightly more dovish, meaning that they are more favorable toward maintaining low interest rates to foster economic growth. As long as the inflation backdrop remains steady, the risk of a sharp rise in interest rates appears minimal.

50% in the third quarter, as MBS gross issuance increased in the summer months and the Fed continued to reduce the size of its purchases. Even after the bond buying program ends, the Fed will likely continue to reinvest MBS paydowns, which is expected to reduce its share of net issuance to 25% to 30%.

• The Treasury yield curve flattened during the period, with two- and five-year yields rising between 20 and 30 basis points, and 10- and 30-year yields falling between 20 and 60 basis points.

⁽ⁱ⁾ Fed MBS data from J.P. Morgan Global Structured Finance Research and the Federal Reserve.

⁽ⁱⁱ⁾ Data from Bloomberg.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

Limited Duration Portfolio

• The Portfolio's positioning in the corporate sector was one of the main drivers of outperformance. In particular, an overweight in financials and a small allocation to high yield securities contributed significantly to returns.

• The Portfolio also benefited from an allocation to ABS, as the bonds provided an attractive yield advantage during the period.

• An interest rate sensitivity that was lower than that of the Index added to returns overall, but detracted slightly during periods of falling rates.

Management Strategies

• The Portfolio has also been positioned with an allocation to short-maturity, high-quality ABS. This position is primarily in credit card, auto, and business and construction equipment securities.

• The Portfolio has allocations to riskier segments of the market, such as BB-rated high-yield corporates and non-agency mortgage securities.

• We continue being overweight spread product (non-government bonds) in the Portfolio, as we believe the yield advantage could provide a large part of returns over the near term.

* Minimum Investment

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

Limited Duration Portfolio

Performance Compared to the Barclays Capital 1-3 Year U.S. Government/Credit Index⁽¹⁾ and the Lipper Short Investment Grade Debt Funds Index⁽²⁾

	Period Ended September 30, 2014 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁷⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		2.06	%		2.18	%		0.26	%		3.12	%
Barclays Capital 1-3 Year U.S. Government/Credit Index		0.77			1.45			2.85			4.45
Lipper Short Investment Grade Debt Funds Index		1.51			2.65			2.81			4.18
Portfolio — Class A Shares w/o sales charges⁽⁵⁾		1.78			1.95			—			-1.19
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁵⁾		-2.48			1.07			—			-1.80
Barclays Capital 1-3 Year U.S. Government/Credit Index		0.77			1.45			—			2.54
Lipper Short Investment Grade Debt Funds Index		1.51			2.65			—			2.57
Portfolio — Class L Shares w/o sales charges⁽⁶⁾		1.38			—			—			1.20
Barclays Capital 1-3 Year U.S. Government/Credit Index		0.77			—			—			0.81
Lipper Short Investment Grade Debt Funds Index		1.51			—			—			1.60

⁽¹⁾ The Barclays Capital 1-3 Year U.S. Government/Credit Index tracks the securities in the 1-3 year maturity range of the Barclays Capital U.S. Government/Credit Index which tracks investment-grade (BBB-/Baa3) or higher publicly traded fixed rate U.S. government, U.S. agency, and corporate issues. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Short Investment Grade Debt Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Short Investment Grade Debt Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Short Investment Grade Debt Funds classification.

⁽⁴⁾ Commenced operations on March 31, 1992.

⁽⁵⁾ Commenced operations on September 28, 2007.

⁽⁶⁾ Commenced operations on April 27, 2012.

⁽⁷⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date or initial offering of the share class of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.4%)
Agency Adjustable Rate Mortgages (3.9%)
Federal Home Loan Mortgage Corporation, Conventional Pools:
2.31%, 6/1/36	$	487	$	522
2.32%, 7/1/38		420		447
2.34%, 7/1/36		457		489
2.42%, 7/1/38		1,002		1,079
2.47%, 9/1/35		626		672
2.68%, 1/1/38		124		133
Federal National Mortgage Association, Conventional Pools:
2.33%, 5/1/35 - 5/1/39		1,037		1,108
Government National Mortgage Association, Various Pool:
2.00%, 2/20/40		161		168
				4,618
Agency Fixed Rate Mortgages (0.4%)
Federal Home Loan Mortgage Corporation, Gold Pools:
6.50%, 9/1/19 - 4/1/24		5		5
7.50%, 11/1/19		1		1
Federal National Mortgage Association, Conventional Pools:
6.50%, 2/1/28 - 10/1/32		386		436
7.00%, 7/1/29 - 12/1/33		59		63
Government National Mortgage Association, Various Pools:
9.00%, 11/15/16 - 12/15/16		20		21
				526
Asset-Backed Securities (17.5%)
Ally Auto Receivables Trust
0.62%, 3/15/17		562		563
American Homes 4 Rent 2014-SFR1
1.25%, 6/17/31 (a)(b)		273		272
American Residential Properties 2014-SFR1 Trust
1.25%, 9/17/31 (a)(b)		401		401
AWAS Aviation Capital Ltd.
7.00%, 10/17/16 (b)		332		339
CarMax Auto Owner Trust
0.52%, 7/17/17		373		374
Chase Issuance Trust,
0.54%, 10/16/17		1,125		1,125
0.59%, 8/15/17		1,608		1,610
Citibank Credit Card Issuance Trust
2.88%, 1/23/23		450		458
Colony American Homes 2014-1
1.40%, 5/17/31 (a)(b)		424		425
Colony American Homes Single-Family Rental Pass-Through Certificates
1.10%, 7/17/31 (a)(b)		338		336
Discover Card Execution Note Trust,
0.58%, 7/15/21 (a)		670		672
1.22%, 10/15/19		465		464

	Face Amount (000)		Value (000)
Enterprise Fleet Financing LLC
1.05%, 3/20/20 (b)	$	836	$	836
Fifth Third Auto Trust
0.88%, 10/16/17		506		508
Ford Credit Auto Owner Trust
2.26%, 11/15/25 (b)		1,165		1,165
Ford Credit Floorplan Master Owner Trust
4.20%, 2/15/17 (b)		1,150		1,166
GE Dealer Floorplan Master Note Trust
0.64%, 6/20/17 (a)		750		751
GE Equipment Transportation LLC
0.62%, 7/25/16		343		343
GM Financial Leasing Trust
0.73%, 2/20/17 (b)		580		580
Hertz Fleet Lease Funding LP
0.70%, 12/10/27 (a)(b)		575		576
Hyundai Auto Receivables Trust,
0.90%, 12/17/18		941		942
1.01%, 2/15/18		427		429
Invitation Homes 2013-SFR1 Trust
1.40%, 12/17/30 (a)(b)		609		611
Invitation Homes 2014-SFR1 Trust
1.15%, 6/17/31 (a)(b)		429		427
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
1.03%, 7/25/25 (a)		625		628
Panhandle-Plains Higher Education Authority, Inc.
1.19%, 7/1/24 (a)		254		258
PFS Tax Lien Trust 2014-1
1.44%, 5/15/29 (b)		471		471
Toyota Auto Receivables Owner Trust
0.89%, 7/17/17		595		597
Volkswagen Credit Auto Master Trust
1.40%, 7/22/19 (b)		398		397
VOLT XXIV LLC
3.25%, 11/25/53 (b)		727		730
Volvo Financial Equipment LLC
0.74%, 3/15/17 (b)		650		651
Wheels SPV LLC
0.84%, 3/20/23 (b)		203		202
World Omni Automobile Lease Securitization Trust,
0.93%, 11/16/15		19		19
1.10%, 12/15/16		321		323
				21,073
Collateralized Mortgage Obligations — Agency Collateral Series (3.6%)
Federal Home Loan Mortgage Corporation,
1.43%, 8/25/17		688		691
1.56%, 10/25/18		219		221

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligations — Agency Collateral Series (cont'd)
REMIC
7.50%, 9/15/29	$	1,081	$	1,240
Federal National Mortgage Association,
0.59%, 8/25/15		497		497
0.95%, 11/25/15		276		277
1.08%, 2/25/16		585		588
2.17%, 9/25/19 (a)		783		780
				4,294
Commercial Mortgage-Backed Securities (0.9%)
Citigroup Commercial Mortgage Trust
2.11%, 1/12/30 (b)		174		175
Hilton USA Trust
1.16%, 11/5/30 (a)(b)		170		170
JP Morgan Chase Commercial Mortgage Securities Trust,
1.13%, 7/15/31 (a)(b)		285		286
5.46%, 12/12/43		400		418
				1,049
Corporate Bonds (64.2%)
Finance (29.1%)
Abbey National Treasury Services PLC
3.05%, 8/23/18		370		384
ABN Amro Bank N.V.
2.50%, 10/30/18 (b)		630		637
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust
3.75%, 5/15/19 (b)		345		335
American Express Credit Corp.
2.25%, 8/15/19		675		671
Australia & New Zealand Banking Group Ltd.
1.45%, 5/15/18		575		566
Bank of America Corp.
2.60%, 1/15/19		900		899
BB&T Corp.
2.25%, 2/1/19		580		581
Berkshire Hathaway Finance Corp.
2.90%, 10/15/20		600		611
BioMed Realty LP
2.63%, 5/1/19		310		308
BNP Paribas SA, MTN
2.70%, 8/20/18		610		622
BNZ International Funding Ltd.
2.35%, 3/4/19 (b)		650		648
BPCE SA
2.50%, 7/15/19		625		621
Canadian Imperial Bank of Commerce
1.55%, 1/23/18		310		310
Capital One Financial Corp.
2.45%, 4/24/19		1,005		1,002
CIT Group, Inc.
5.00%, 5/15/17		500		514

	Face Amount (000)		Value (000)
Citigroup, Inc.
8.50%, 5/22/19	$	950	$	1,189
Commonwealth Bank of Australia
2.50%, 9/20/18		600		612
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
3.38%, 1/19/17		330		346
Credit Agricole SA
2.13%, 4/17/18 (b)		775		774
Credit Suisse
2.30%, 5/28/19		650		644
DBS Group Holdings Ltd.
2.25%, 7/16/19 (b)		650		644
Discover Bank
2.00%, 2/21/18		665		662
DNB Bank ASA
3.20%, 4/3/17 (b)		610		637
ERP Operating LP
2.38%, 7/1/19		550		547
General Electric Capital Corp.
1.63%, 4/2/18		1,220		1,219
General Motors Financial Co., Inc.
2.75%, 5/15/16		325		328
Goldman Sachs Group, Inc. (The)
2.38%, 1/22/18		880		890
HSBC USA, Inc.
2.25%, 6/23/19		659		657
Icahn Enterprises LP/Icahn Enterprises Finance Corp., Series WI
4.88%, 3/15/19		375		370
ING Bank N.V.
3.75%, 3/7/17 (b)		600		632
Intesa Sanpaolo SpA
3.88%, 1/16/18		355		370
JPMorgan Chase & Co.
1.63%, 5/15/18		900		888
Lloyds Bank PLC
2.30%, 11/27/18		400		401
Macquarie Bank Ltd.
2.60%, 6/24/19 (b)		605		605
Mastercard, Inc.
2.00%, 4/1/19		325		323
Metropolitan Life Global Funding I
1.50%, 1/10/18 (b)		775		769
Mizuho Corporate Bank Ltd.
1.85%, 3/21/18 (b)		645		645
National Australia Bank Ltd.
1.25%, 3/17/17 (b)		400		400
Nationwide Building Society
4.65%, 2/25/15 (b)		840		854
Nordea Bank AB
0.88%, 5/13/16 (b)		695		695
Principal Financial Group, Inc.
1.85%, 11/15/17		725		726

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Prudential Financial, Inc., MTN
4.75%, 9/17/15	$	930	$	967
QBE Insurance Group Ltd.
2.40%, 5/1/18 (b)		200		200
Royal Bank of Scotland Group PLC
2.55%, 9/18/15		495		502
Skandinaviska Enskilda Banken AB
1.75%, 3/19/18 (b)		380		379
Standard Chartered PLC
1.50%, 9/8/17 (b)		900		898
Sumitomo Mitsui Banking Corp.
2.45%, 1/10/19		630		637
Swedbank AB
1.75%, 3/12/18 (b)		305		304
Synchrony Financial
3.00%, 8/15/19		800		803
Toronto-Dominion Bank (The), MTN
2.63%, 9/10/18		650		665
UBS AG
2.38%, 8/14/19		925		918
WEA Finance LLC / Westfield UK & Europe Finance PLC
2.70%, 9/17/19 (b)		600		602
WellPoint, Inc.
1.88%, 1/15/18		705		705
Wells Fargo & Co.,
1.40%, 9/8/17		575		574
2.15%, 1/15/19		360		361
Westpac Banking Corp.
1.38%, 5/30/18 (b)		970		958
				35,009
Industrials (30.1%)
ABB Treasury Center USA, Inc.
2.50%, 6/15/16 (b)		745		764
AbbVie, Inc.
1.75%, 11/6/17		715		713
Altera Corp.
2.50%, 11/15/18		300		303
Altria Group, Inc.
4.13%, 9/11/15		750		774
American Honda Finance Corp.
1.60%, 2/16/18 (b)		545		543
Amgen, Inc.
2.50%, 11/15/16		425		437
Apple, Inc.
2.10%, 5/6/19		625		626
Applied Materials, Inc.
2.65%, 6/15/16		455		468
ArcelorMittal,
5.00%, 2/25/17		375		389
9.50%, 2/15/15		10		10

	Face Amount (000)		Value (000)
AT&T, Inc.,
1.70%, 6/1/17	$	1,075	$	1,085
2.38%, 11/27/18		825		834
Baidu, Inc.
3.25%, 8/6/18		225		232
BAT International Finance PLC
1.40%, 6/5/15 (b)		600		603
Baxter International, Inc.
1.85%, 6/15/18		795		792
Bombardier, Inc.
4.25%, 1/15/16 (b)		250		255
BW Group Ltd.
6.63%, 6/28/17 (b)		325		341
CBS Corp.
2.30%, 8/15/19		625		617
Chesapeake Energy Corp.
6.50%, 8/15/17		350		382
CNH Capital LLC
6.25%, 11/1/16		355		375
Comcast Corp.
5.70%, 5/15/18		520		591
Compass Bank
1.85%, 9/29/17		600		600
Covidien International Finance SA
1.35%, 5/29/15		265		266
CVS Caremark Corp.
2.25%, 12/5/18		580		583
Daimler Finance North America LLC
2.38%, 8/1/18 (b)		750		760
DISH DBS Corp.
4.63%, 7/15/17		375		383
Eaton Corp.
1.50%, 11/2/17		630		628
eBay, Inc.
2.20%, 8/1/19		600		593
Ecolab, Inc.
3.00%, 12/8/16		320		332
EMC Corp.
1.88%, 6/1/18		750		746
Experian Finance PLC
2.38%, 6/15/17 (b)		600		611
Ford Motor Credit Co., LLC
5.00%, 5/15/18		825		902
Glencore Funding LLC
1.70%, 5/27/16 (b)		650		655
Goldcorp, Inc.
2.13%, 3/15/18		520		519
Heathrow Funding Ltd.
2.50%, 6/25/15 (b)		400		405
Hewlett-Packard Co.
3.30%, 12/9/16		315		329
Home Depot, Inc.
2.00%, 6/15/19		600		597

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Hyundai Capital America
1.63%, 10/2/15 (b)	$	395	$	398
Ingersoll-Rand Global Holding Co., Ltd.
2.88%, 1/15/19		335		343
John Deere Capital Corp.
1.95%, 12/13/18		510		509
Kraft Foods Group, Inc.
2.25%, 6/5/17		425		433
L-3 Communications Corp.
1.50%, 5/28/17		275		273
LVMH Moet Hennessy Louis Vuitton SA
1.63%, 6/29/17 (b)		525		528
Marathon Petroleum Corp.
3.50%, 3/1/16		595		616
McKesson Corp.
3.25%, 3/1/16		1,070		1,105
Nissan Motor Acceptance Corp.
2.65%, 9/26/18 (b)		720		734
Oracle Corp.
2.25%, 10/8/19		600		598
Orange SA
2.75%, 2/6/19		625		633
Origin Energy Finance Ltd.
3.50%, 10/9/18 (b)		200		205
Rio Tinto Finance USA PLC
1.38%, 6/17/16		325		327
RR Donnelley & Sons Co.
6.13%, 1/15/17		300		310
STATS ChipPAC Ltd.
5.38%, 3/31/16 (b)		300		305
T-Mobile USA, Inc.
5.25%, 9/1/18		500		517
Target Corp.
2.30%, 6/26/19		600		602
Thomson Reuters Corp.
1.30%, 2/23/17		325		325
1.65%, 9/29/17		150		150
Time Warner Cable, Inc.
6.75%, 7/1/18		400		465
TSMC Global Ltd.
1.63%, 4/3/18 (b)		800		791
Tyson Foods, Inc.
2.65%, 8/15/19		600		602
Ventas Realty LP
1.55%, 9/26/16		250		252
Verizon Communications, Inc.
2.55%, 6/17/19		1,250		1,255
Viacom, Inc.
2.50%, 9/1/18		625		633
Vodafone Group PLC
1.25%, 9/26/17		775		765

	Face Amount (000)		Value (000)
Volkswagen International Finance N.V.
1.13%, 11/18/16 (b)	$	740	$	741
Waste Management, Inc.
2.60%, 9/1/16		725		746
Wesfarmers Ltd.
2.98%, 5/18/16 (b)		395		408
Wm Wrigley Jr Co.
1.40%, 10/21/16 (b)		600		603
				36,215
Utilities (5.0%)
AES Corp.
8.00%, 10/15/17		40		45
DCP Midstream Operating LP
2.70%, 4/1/19		650		652
Dominion Resources, Inc.
1.25%, 3/15/17		350		350
Enbridge, Inc.
0.68%, 6/2/17 (a)		175		176
Enel Finance International N.V.
3.88%, 10/7/14 (b)		1,115		1,115
EnLink Midstream Partners LP
2.70%, 4/1/19		525		529
Enterprise Products Operating LLC
1.25%, 8/13/15		315		317
GDF Suez
1.63%, 10/10/17 (b)		650		653
Northeast Utilities
1.45%, 5/1/18		525		517
NRG Energy, Inc.
7.63%, 1/15/18		275		303
PSEG Power LLC
5.50%, 12/1/15		570		600
Southern Co. (The)
2.15%, 9/1/19		725		719
				5,976
				77,200
Mortgages — Other (3.5%)
Alternative Loan Trust,
0.55%, 2/25/35 (a)		114		106
5.50%, 10/25/35 - 11/25/35		1,033		985
FDIC Guaranteed Notes Trust
0.71%, 2/25/48 (a)(b)		197		197
Freddie Mac Structured Agency Credit Risk Debt Notes
1.16%, 2/25/24 (a)		238		236
Harborview Mortgage Loan Trust
0.34%, 1/19/38 (a)		434		373
JP Morgan Alternative Loan Trust
6.00%, 12/25/35		142		130
Lehman Mortgage Trust
6.50%, 9/25/37		58		52
Opteum Mortgage Acceptance Corp. Trust
0.45%, 4/25/36 (a)		470		409

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (cont'd)
RALI Trust,
0.33%, 12/25/36 (a)	$	332	$	250
0.34%, 12/25/36 (a)		598		451
6.00%, 11/25/36		176		141
Sequoia Mortgage Trust
0.77%, 8/20/34 (a)		603		578
Washington Mutual Mortgage Pass-Through Certificates Trust,
1.08%, 8/25/46 (a)		343		239
1.11%, 6/25/46 (a)		68		50
				4,197
Sovereign (1.4%)
Korea Development Bank (The)
1.50%, 1/22/18		690		680
Qatar Government International Bond
4.00%, 1/20/15 (b)		500		505
Spain Government International Bond
4.00%, 3/6/18 (b)		500		534
				1,719
U.S. Treasury Security (3.0%)
U.S. Treasury Note
0.63%, 5/31/17		3,650		3,619
Total Fixed Income Securities (Cost $117,395)				118,295
	Shares
Short-Term Investments (1.5%)
Investment Company (0.8%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $936)		936,251		936

	Face Amount (000)		Value (000)
U.S. Treasury Securities (0.7%)
U.S. Treasury Bills,
0.03%, 2/12/15 (c)(d)	$	125	$	125
0.04%, 2/12/15 (c)(d)		115		115
0.05%, 2/12/15 (c)(d)		578		578
Total U.S. Treasury Securities (Cost $818)				818
Total Short-Term Investments (Cost $1,754)				1,754
Total Investments (99.9%) (Cost $119,149) (e)				120,049
Other Assets in Excess of Liabilities (0.1%)				150
Net Assets (100.0%)			$	120,199

(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 September 30, 2014.

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

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

(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 September 30, 2014:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		390	$	85,349		Dec-14	$	(29	)
U.S. Treasury Long Bond		8		1,103		Dec-14		(15	)
Short:
U.S. Treasury 5 yr. Note		361		(42,691	)	Dec-14		146
U.S. Treasury 10 yr. Note		19		(2,368	)	Dec-14		12
							$	114

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Limited Duration Portfolio

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 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† (Unaudited)
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	645		1.00	%	3/20/19	$	13		$	(12	)	$	1		BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		625		1.00		12/20/18		(11	)		(3	)		(14	)	BBB
Morgan Stanley & Co., LLC* CDX.NA.IG.22	Buy		1,200		1.00		6/20/19		(24	)		5			(19	)	NR
		$	2,470					$	(22	)	$	(10	)	$	(32	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at September 30, 2014:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.14	%	7/23/17	$	6,188	$	4
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.18		9/4/17		4,400		9
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.17		9/5/17		7,300		15
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.19		9/10/17		16,200		33
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.81		9/4/19		1,300		6
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.80		9/5/19		2,197		11
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.85		9/10/19		4,698		15
									$	93

† 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.

NR Not Rated.

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		30.2	%
Finance		29.2
Asset-Backed Securities		17.5
Other+		18.1
Utilities		5.0
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 $131,511,000 with net unrealized appreciation of approximately $114,000. Does not include open swap agreements with net unrealized appreciation of approximately $83,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Limited Duration Portfolio

Statement of Assets and Liabilities	September 30, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $118,213)	$	119,113
Investment in Security of Affiliated Issuer, at Value (Cost $936)		936
Total Investments in Securities, at Value (Cost $119,149)		120,049
Interest Receivable		641
Receivable for Portfolio Shares Sold		43
Premium Paid on Open Swap Agreements		13
Receivable for Variation Margin on Swap Agreements		8
Receivable for Variation Margin on Futures Contracts		4
Tax Reclaim Receivable		—	@
Receivable from Affiliate		—	@
Other Assets		32
Total Assets		120,790
Liabilities:
Payable for Portfolio Shares Redeemed		271
Payable for Sub Transfer Agency Fees — Class I		105
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Advisory Fees		101
Payable for Professional Fees		23
Unrealized Depreciation on Swap Agreements		15
Premium Received on Open Swap Agreements		11
Payable for Administration Fees		8
Payable for Trustees' Fees and Expenses		7
Payable for Custodian Fees		5
Payable for Transfer Agent Fees — Class I		1
Payable for Transfer Agent Fees — Class A		—	@
Payable for Transfer Agent Fees — Class L		1
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Other Liabilities		42
Total Liabilities		591
Net Assets	$	120,199
Net Assets Consist of:
Paid-in-Capital	$	360,612
Accumulated Undistributed Net Investment Income		268
Accumulated Net Realized Loss		(241,778	)
Unrealized Appreciation (Depreciation) on:
Investments		900
Futures Contracts		114
Swap Agreements		83
Net Assets	$	120,199

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Limited Duration Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2014 (000)
CLASS I:
Net Assets	$	119,059
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		15,242,039
Net Asset Value, Offering and Redemption Price Per Share	$	7.81
CLASS A:
Net Assets	$	940
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		120,144
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	$	200
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		25,650
Net Asset Value, Offering and Redemption Price Per Share	$	7.80

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Limited Duration Portfolio

Statement of Operations	Year Ended September 30, 2014 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	2,478
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		2,479
Expenses:
Advisory Fees (Note B)		368
Sub Transfer Agency Fees		5
Sub Transfer Agency Fees — Class I		132
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class L		—	@
Professional Fees		125
Shareholder Reporting Fees		99
Administration Fees (Note C)		98
Registration Fees		41
Custodian Fees (Note F)		31
Pricing Fees		27
Transfer Agency Fees (Note E)		2
Transfer Agency Fees — Class I (Note E)		5
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		3
Shareholder Services Fees — Class A (Note D)		4
Distribution and Shareholder Services Fees — Class L (Note D)		1
Trustees' Fees and Expenses		4
Other Expenses		19
Total Expenses		967
Waiver of Advisory Fees (Note B)		(170	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(137	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(3	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Net Expenses		654
Net Investment Income		1,825
Realized Gain (Loss):
Investments Sold		1,252
Futures Contracts		(174	)
Swap Agreements		(37	)
Net Realized Gain		1,041
Change in Unrealized Appreciation (Depreciation):
Investments		(298	)
Futures Contracts		267
Swap Agreements		(251	)
Net Change in Unrealized Appreciation (Depreciation)		(282	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		759
Net Increase in Net Assets Resulting from Operations	$	2,584

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Limited Duration Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2014 (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,825		$	1,934
Net Realized Gain		1,041			1,551
Net Change in Unrealized Appreciation (Depreciation)		(282	)		(2,083	)
Net Increase in Net Assets Resulting from Operations		2,584			1,402
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1,684	)		(2,132	)
*Class A:**
Net Investment Income		(18	)		(3	)
*Class H:**
Net Investment Income		—			(2	)**
Class L:
Net Investment Income		(1	)		(1	)
Total Distributions		(1,703	)		(2,138	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		14,035			5,024
Distributions Reinvested		1,682			2,130
Redeemed		(20,486	)		(28,846	)
*Class A:**
Subscribed		2,964			486
Distributions Reinvested		18			3
Conversion from Class H		—			243
Redeemed		(2,802	)		(129	)
*Class H:**
Subscribed		—			270	**
Distributions Reinvested		—			1	**
Conversion to Class A		—			(243	)**
Redeemed		—			(38	)**
Class L:
Subscribed		110			93
Distributions Reinvested		1			—	@
Redeemed		(6	)		(8	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(4,484	)		(21,014	)
Total Decrease in Net Assets		(3,603	)		(21,750	)
Net Assets:
Beginning of Period		123,802			145,552
End of Period (Including Accumulated Undistributed Net Investment Income of $268 and $262)	$	120,199		$	123,802
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1,797			646
Shares Issued on Distributions Reinvested		216			274
Shares Redeemed		(2,624	)		(3,706	)
Net Decrease in Class I Shares Outstanding		(611	)		(2,786	)
*Class A:**
Shares Subscribed		379			63
Shares Issued on Distributions Reinvested		2			—	@@
Conversion from Class H		—			31
Shares Redeemed		(357	)		(17	)
Net Increase in Class A Shares Outstanding		24			77
*Class H:**
Shares Subscribed		—			35	**
Shares Issued on Distributions Reinvested		—			—	@@**
Conversion to Class A		—			(31	)**
Shares Redeemed		—			(5	)**
Net Increase (Decrease) in Class H Shares Outstanding		—			(1	)
Class L:
Shares Subscribed		14			12
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(1	)		(1	)
Net Increase in Class L Shares Outstanding		13			11

@ Amount is less than $500.

@@ Amount is less than 500 shares.

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Limited Duration Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	7.76		$	7.80		$	7.71		$	7.79		$	7.68
Income (Loss) from Investment Operations:
Net Investment Income†		0.12			0.11			0.15			0.16			0.18
Net Realized and Unrealized Gain (Loss)		0.04			(0.03	)		0.11			(0.10	)		0.10
Total from Investment Operations		0.16			0.08			0.26			0.06			0.28
Distributions from and/or in Excess of:
Net Investment Income		(0.11	)		(0.12	)		(0.17	)		(0.14	)		(0.16	)
Paid-in-Capital		—			—			—			—			(0.01	)
Total Distributions		(0.11	)		(0.12	)		(0.17	)		(0.14	)		(0.17	)
Net Asset Value, End of Period	$	7.81		$	7.76		$	7.80		$	7.71		$	7.79
Total Return++		2.06	%		1.09	%		3.35	%		0.71	%		3.74	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	119,059		$	122,958		$	145,387		$	167,811		$	208,608
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.53	%+††		0.71	%+^		0.63	%+		0.59	%+††		0.55	%+††
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.49	%+††		1.45	%+^		1.92	%+		2.12	%+††		2.39	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		60	%		66	%		51	%		35	%		95	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.78	%††		0.72	%		N/A			N/A			N/A
Net Investment Income to Average Net Assets		1.24	%††		1.44	%		N/A			N/A			N/A

† 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.

†† 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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Limited Duration Portfolio

	Class A*
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	7.77		$	7.80		$	7.71		$	7.79		$	7.68
Income (Loss) from Investment Operations:
Net Investment Income†		0.09			0.09			0.13			0.15			0.17
Net Realized and Unrealized Gain (Loss)		0.05			(0.01	)		0.11			(0.12	)		0.09
Total from Investment Operations		0.14			0.08			0.24			0.03			0.26
Distributions from and/or in Excess of:
Net Investment Income		(0.08	)		(0.11	)		(0.15	)		(0.11	)		(0.15	)
Paid-in-Capital		—			—			—			—			(0.00	)‡
Total Distributions		(0.08	)		(0.11	)		(0.15	)		(0.11	)		(0.15	)
Net Asset Value, End of Period	$	7.83		$	7.77		$	7.80		$	7.71		$	7.79
Total Return++		1.78	%		0.84	%		3.22	%		0.45	%		3.48	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	940		$	749		$	145		$	194		$	52
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.88	%+††		0.97	%+^		0.88	%+		0.84	%+††		0.80	%+††
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.14	%+††		1.15	%+^		1.70	%+		1.87	%+††		2.14	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		60	%		66	%		51	%		35	%		95	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.10	%††		1.00	%		N/A			N/A			N/A
Net Investment Income to Average Net Assets		0.92	%††		1.12	%		N/A			N/A			N/A

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

† 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.

†† 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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Limited Duration Portfolio

	Class L
	Year Ended September 30,						Period from April 27, 2012^ to
Selected Per Share Data and Ratios	2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	7.75		$	7.80		$	7.76
Income (Loss) from Investment Operations:
Net Investment Income†		0.06			0.07			0.04
Net Realized and Unrealized Gain (Loss)		0.05			(0.03	)		0.04
Total from Investment Operations		0.11			0.04			0.08
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.09	)		(0.04	)
Net Asset Value, End of Period	$	7.80		$	7.75		$	7.80
Total Return++		1.38	%		0.48	%		1.06	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	200		$	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⁾		0.79	%+††		0.85	%+^^		1.14	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%*§
Portfolio Turnover Rate		60	%		66	%		51	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		3.48	%††		1.34	%		N/A
Net Investment Income (Loss) to Average Net Assets		(1.46	)%††		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.

†† 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.
21

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements

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.

Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (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.

• 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 following is a summary of the inputs used to value the Portfolio's investments as of September 30, 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	$	—	$	4,618	$	—	$	4,618
Agency Fixed Rate Mortgages		—		526		—		526
Asset-Backed Securities		—		21,073		—		21,073
Collateralized Mortgage Obligations — Agency Collateral Series		—		4,294		—		4,294
Commercial Mortgage- Backed Securities		—		1,049		—		1,049
Corporate Bonds		—		77,200		—		77,200
Mortgages — Other		—		4,197		—		4,197
Sovereign		—		1,719		—		1,719
U.S. Treasury Security		—		3,619		—		3,619
Total Fixed Income Securities		—		118,295		—		118,295
Short-Term Investments
Investment Company		936		—		—		936
U.S. Treasury Securities		—		818		—		818
Total Short-Term Investments		936		818		—		1,754
Futures Contracts		158		—		—		158
Credit Default Swap Agreement		—		5		—		5
Interest Rate Swap Agreements		—		93		—		93
Total Assets	$	1,094	$	119,211	$	—	$	120,305

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Liabilities:
Futures Contracts	$	(44	)	$	—		$	—	$	(44	)
Credit Default Swap Agreements		—			(15	)		—		(15	)
Total Liabilities		(44	)		(15	)		—		(59	)
Total	$	1,050		$	119,196		$	—	$	120,246

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.

lio 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:

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

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.

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

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2014.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

158

(a)

Swap Agreements

Variation Margin on
Swap Agreements

Credit Risk

(a)

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

(a)

Total

256

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(44

)(a)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Credit Risk

(15

)

Total

(59

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(174	)
Credit Risk	Swap Agreements		(41	)
Interest Rate Risk	Swap Agreements		4
	Total	$	(211	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	267
Credit Risk	Swap Agreements		13
Interest Rate Risk	Swap Agreements		(264	)
	Total	$	16

At September 30, 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	$	—	$	(15	)

(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.

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 Agreement, the Portfolio typically may offset with the counterparty certain OTC derivative financial instruments' 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 potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, 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 and may be a feature in certain Master Agreements. In the event the Portfolio exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Portfolio's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2014.

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	$	15	$	—	$	—	$	15

For the year ended September 30, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	109,175,000
Swap Agreements:
Average monthly notional amount	$	19,802,000

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

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.

portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended September 30, 2014, approximately $170,000 of advisory fees were waived and approximately $141,000 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $51,356,000 and $44,613,000, respectively. For the year ended September 30, 2014, purchases and sales of long-term U.S. Government securities were approximately $21,045,000 and $28,527,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the year ended September 30, 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 year ended September 30, 2014 is as follows:

Value September 30, 2013 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2014 (000)
$	1,114			$	46,591			$	46,769			$	1			$	936

2014 Distributions Paid From: Ordinary Income (000)				2013 Distributions Paid From: Ordinary Income (000)
$	1,703			$	2,138

Permanent differences, primarily due to basis adjustments for swap transactions, paydown adjustments and an expired capital

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

loss carryforward, resulted in the following reclassifications among the components of net assets at September 30, 2014:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	(116	)		$	6,966			$	(6,850	)

At September 30, 2014, 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)
$	261			$	—

At September 30, 2014, the aggregate cost for Federal income tax purposes is approximately $119,149,000. The aggregate gross unrealized appreciation is approximately $1,170,000 and the aggregate gross unrealized depreciation is approximately $270,000 resulting in net unrealized appreciation of approximately $900,000.

At September 30, 2014, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	7,068	September 30, 2015
	265	September 30, 2016
	200,864	September 30, 2017
	33,504	September 30, 2018

Capital loss carryforwards of approximately $6,850,000 expired during the year ended September 30, 2014.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Limited Duration Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Limited Duration Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Portfolio's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2014, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not obtained. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Limited Duration Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 26, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 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 RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• 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 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

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

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

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

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.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

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

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (69)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Michael Bozic (73)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
April
1994

100

Trustee and member of the Hillsdale College Board of Trustees.

Kathleen A. Dennis (61)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various non-profit organizations.

Dr. Manuel H. Johnson (65)
c/o Johnson Smick
International, Inc.
220 I Street, N.E.
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

100

Director of NVR, Inc. (home construction).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Joseph J. Kearns (72)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

101

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Michael F. Klein (55)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Managing Director, Aetos Capital, LLC (since March 2000) and Co- President, Aetos Alternatives Management, LLC (since January 2004); and Co-Chief Executive Officer of Aetos Capital LLC (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management, President, various Morgan Stanley Funds (June 1998-March 2000) and Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999).

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (78)
522 Fifth Avenue
New York, NY 10036

Chairperson
of the Board
and Trustee

Chairperson of
the Boards since
July 2006 and
Trustee since
July 1991

100

None.

W. Allen Reed (67)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Chairperson of the Equity Sub- Committee of the Investment Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, President and CEO of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005).

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (82)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

101

Through December 31, 2012, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (66)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (51)
522 Fifth Avenue
New York, NY 10036

President and
Principal
Executive
Officer

Since
September
2013

Stefanie V. Chang Yu (47)
522 Fifth Avenue
New York, NY 10036

Chief
Compliance
Officer

Since
December
1997

Joseph C. Benedetti (49)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (49)
522 Fifth Avenue
New York, NY 10036

Treasurer and
Principal
Financial Officer

Treasurer
since July
2003 and
Principal
Financial
Officer since
September
2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (47)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

IFTLDANN
1043234 EXP 11.28.15

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Mid Cap Growth Portfolio

Annual Report

September 30, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Advisory Agreement Approval					4
Investment Overview					6
Portfolio of Investments					8
Statement of Assets and Liabilities					11
Statement of Operations					13
Statements of Changes in Net Assets					14
Financial Highlights					16
Notes to Financial Statements					20
Report of Independent Registered Public Accounting Firm					31
Federal Tax Notice					32
U.S. Privacy Policy					33
Trustee and Officer Information					36

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

October 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Expense Example (unaudited)

Mid Cap Growth Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2014 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/14		Actual Ending Account Value 9/30/14		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	$	986.30	$	1,021.06	$	3.98	$	4.05		0.80	%
Mid Cap Growth Portfolio Class A		1,000.00		985.00		1,019.80		5.22		5.32		1.05
Mid Cap Growth Portfolio Class L		1,000.00		982.50		1,017.05		7.95		8.09		1.60
Mid Cap Growth Portfolio Class IS		1,000.00		987.20		1,022.01		3.04		3.09		0.61

** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2013, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one- and five-year periods but below its peer group average for the three-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. The Board noted that the Portfolio's management fee and total expense ratio were lower than its peer group average. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; (ii) management fee was competitive with its peer group average; and (iii) total expense ratio was competitive with its peer group average.

Economies of Scale

Profitability of the Adviser and Affiliates

Other Benefits of the Relationship

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Advisory Agreement Approval (unaudited) (cont'd)

Resources of the Adviser and Historical Relationship Between the Portfolio and the Adviser

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited)

Mid Cap Growth Portfolio

The Mid Cap Growth Portfolio seeks long-term capital growth.

Performance

For the fiscal year ended September 30, 2014, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 7.25%, net of fees. The Portfolio's Class I shares underperformed against the Portfolio's benchmark, the Russell Midcap® Growth Index (the "Index"), which returned 14.43%.

Factors Affecting Performance

• Investors continued to focus on the actions of global central banks during the 12-month period. After much anticipation, in December 2013, the U.S. Federal Reserve (Fed) announced that it would begin reducing its bond purchases beginning in January 2014. Stocks finished 2013 on a high note but stumbled in the early months of 2014 as an exceptionally cold winter dampened economic activity. As the year progressed, economic growth recovered and stocks resumed their climb. However, August and September saw a return to volatility as geopolitical risks intensified, the pace of global economic growth slowed, and the timing of the Fed's first rate hike was debated.

• The Portfolio's underperformance was driven primarily by the information technology sector, due to both stock selection and an overweight allocation. A cyber security company was the largest detractor in the Portfolio overall during the period.

• The consumer discretionary sector was detrimental as well. Stock selection was unfavorable in the sector, particularly a holding in an online deals provider.

• Stock selection in the industrials sector dampened relative returns, with disappointing results from a corporate prepaid services provider.

• The Portfolio's health care position contributed positively, as both stock selection and an overweight in the sector were beneficial. A maker of genetic sequencing systems was the best-performing holding in the overall Portfolio during the period.

• Stock selection in the consumer staples sector boosted relative performance, led by a position in an infant formula manufacturer.

• An underweight position in the energy sector was advantageous to relative performance, as the sector was the weakest performer in the Index during the period.

Management Strategies

• We look for high-quality growth companies that we believe have these attributes: sustainable competitive advantages, above-average business visibility, rising return on invested capital, strong free cash flow generation and a favorable risk/reward profile. We find these companies through intense fundamental research. Our emphasis is on secular growth, and as a result, short-term market events are not as meaningful in the stock selection process.

* Minimum Investment

In accordance with SEC regulations, the Portfolio's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, Class L and Class IS shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (where applicable).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Investment Overview (unaudited) (cont'd)

Mid Cap Growth Portfolio

Performance Compared to the Russell Midcap^® Growth Index⁽¹⁾ and the Lipper Mid-Cap Growth Funds Index⁽²⁾

	Period Ended September 30, 2014 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁸⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		7.25	%		14.11	%		11.01	%		12.94	%
Russell Midcap^® Growth Index		14.43			17.12			10.24			10.49
Lipper Mid-Cap Growth Funds Index		10.64			14.69			9.68			9.90
Portfolio — Class A Shares w/o sales charges⁽⁵⁾		6.95			13.82			10.73			10.28
Portfolio — Class A Shares with maximum 5.25% sales charges⁽⁵⁾		1.34			12.60			10.13			9.95
Russell Midcap^® Growth Index		14.43			17.12			10.24			8.32
Lipper Mid-Cap Growth Funds Index		10.64			14.69			9.68			7.25
Portfolio — Class L Shares w/o sales charges⁽⁶⁾		6.40			—			—			16.41
Russell Midcap^® Growth Index		14.43			—			—			21.92
Lipper Mid-Cap Growth Funds Index		10.64			—			—			19.71
Portfolio — Class IS Shares w/o sales charges⁽⁷⁾		7.39			—			—			8.24
Russell Midcap^® Growth Index		14.43			—			—			14.48
Lipper Mid-Cap Growth Funds Index		10.64			—			—			11.05

⁽¹⁾ The Russell Midcap^® Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap^® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell Midcap^® Index is a subset of the Russell 1000^® Index and includes approximately 800 of the smallest securities in the Russell 1000^® Index, which in turn consists of approximately 1,000 of the largest U.S. securities based on a combination of market capitalization and current index membership. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Mid-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Mid-Cap Growth Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Mid-Cap Growth Funds classification.

⁽³⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower. The fee waivers and/or expense reimbursements for the Portfolio will continue for at least one year or until such time as the Fund's

Board of Trustees acts to discontinue all or a portion of such waivers and/or reimbursements when it deems such action is appropriate.

⁽⁴⁾ Commenced operations on March 30, 1990.

⁽⁵⁾ Commenced operations on January 31, 1997.

⁽⁶⁾ Commenced operations on June 14, 2012.

⁽⁷⁾ Commenced operations on September 13, 2013.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments

Mid Cap Growth Portfolio

	Shares		Value (000)
Common Stocks (94.2%)
Aerospace & Defense (2.5%)
TransDigm Group, Inc.		980,406	$	180,718
Automobiles (3.9%)
Tesla Motors, Inc. (a)		1,156,613		280,687
Biotechnology (1.7%)
Alnylam Pharmaceuticals, Inc. (a)		366,019		28,586
Intercept Pharmaceuticals, Inc. (a)		48,953		11,586
Ironwood Pharmaceuticals, Inc. (a)		3,539,459		45,854
Pharmacyclics, Inc. (a)(b)		186,118		21,856
Seattle Genetics, Inc. (a)		446,363		16,596
				124,478
Commercial Services & Supplies (1.6%)
Edenred (France)		1,409,081		34,768
Stericycle, Inc. (a)		705,484		82,231
				116,999
Communications Equipment (0.8%)
Palo Alto Networks, Inc. (a)		619,452		60,768
Diversified Financial Services (5.3%)
McGraw Hill Financial, Inc.		2,227,459		188,109
MSCI, Inc. (a)		4,113,668		193,425
				381,534
Electrical Equipment (0.4%)
SolarCity Corp. (a)(b)		510,727		30,439
Food Products (6.7%)
Keurig Green Mountain, Inc.		818,464		106,507
McCormick & Co., Inc. (b)		1,842,868		123,288
Mead Johnson Nutrition Co.		2,686,509		258,496
				488,291
Health Care Equipment & Supplies (4.3%)
Intuitive Surgical, Inc. (a)(b)		680,684		314,354
Health Care Providers & Services (0.2%)
Qualicorp SA (Brazil) (a)		1,526,642		15,106
Health Care Technology (3.2%)
athenahealth, Inc. (a)		1,774,435		233,675
Hotels, Restaurants & Leisure (4.7%)
Dunkin' Brands Group, Inc.		3,977,459		178,270
Panera Bread Co., Class A (a)		975,578		158,746
				337,016
Information Technology Services (5.2%)
FleetCor Technologies, Inc. (a)		1,335,067		189,740
Gartner, Inc. (a)(b)		2,516,506		184,887
				374,627
Insurance (3.1%)
Arch Capital Group Ltd. (a)(b)		1,379,076		75,463
Progressive Corp. (The) (b)		5,935,957		150,061
				225,524
Internet & Catalog Retail (4.0%)
Ctrip.com International Ltd. ADR (China) (a)		1,297,684		73,656
Groupon, Inc. (a)(b)		6,045,312		40,383
TripAdvisor, Inc. (a)(b)		711,854		65,078

	Shares		Value (000)
Zalando SE (Germany) (a)		768,601	$	20,872
zulily, Inc., Class A (a)(b)		2,279,853		86,383
				286,372
Internet Software & Services (13.4%)
Dropbox, Inc. (a)(c)(d)(e) (acquisition cost — $33,909; acquired 5/1/12)		3,747,173		70,372
LinkedIn Corp., Class A (a)(b)		1,590,564		330,503
MercadoLibre, Inc. (Brazil) (b)		419,461		45,574
Pandora Media, Inc. (a)(b)		2,563,240		61,928
Qihoo 360 Technology Co., Ltd. ADR (China) (a)		790,770		53,353
Twitter, Inc. (a)		6,702,051		345,692
Youku Tudou, Inc. ADR (China) (a)		3,530,451		63,266
				970,688
Life Sciences Tools & Services (5.2%)
Illumina, Inc. (a)(b)		2,305,541		377,924
Machinery (1.9%)
Colfax Corp. (a)(b)		2,450,607		139,611
Media (0.9%)
Legend Pictures LLC Ltd. (a)(c)(d)(e) (acquisition cost — $38,812; acquired 3/8/12)		36,302		62,194
Oil, Gas & Consumable Fuels (0.9%)
Range Resources Corp. (b)		901,138		61,106
Pharmaceuticals (3.7%)
Endo International PLC (a)		2,792,987		190,873
Zoetis, Inc.		2,175,780		80,395
				271,268
Professional Services (4.9%)
IHS, Inc., Class A (a)(b)		1,361,316		170,423
Verisk Analytics, Inc., Class A (a)		2,969,011		180,783
				351,206
Software (11.5%)
FireEye, Inc. (a)(b)		3,993,189		122,032
NetSuite, Inc. (a)(b)		679,547		60,847
ServiceNow, Inc. (a)		1,498,265		88,068
Solera Holdings, Inc. (b)		1,266,171		71,361
Splunk, Inc. (a)		3,756,147		207,940
Tableau Software, Inc., Class A (a)		551,024		40,032
Workday, Inc., Class A (a)(b)		2,654,692		219,012
Zynga, Inc., Class A (a)(b)		9,411,046		25,410
				834,702
Tech Hardware, Storage & Peripherals (1.0%)
3D Systems Corp. (a)(b)		667,308		30,943
Stratasys Ltd. (a)(b)		361,547		43,668
				74,611
Textiles, Apparel & Luxury Goods (3.2%)
Lululemon Athletica, Inc. (Canada) (a)		1,323,740		55,610
Michael Kors Holdings Ltd. (a)		2,466,253		176,066
				231,676
Total Common Stocks (Cost $5,473,384)				6,825,574

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

	Shares		Value (000)
Convertible Preferred Stocks (0.1%)
Internet & Catalog Retail (0.0%)
Peixe Urbano, Inc. (Brazil) (a)(c)(d)(e) (acquisition cost — $18,817; acquired 12/2/11)		571,575	$	1,212
Internet Software & Services (0.1%)
Dropbox, Inc. Series A (a)(c)(d)(e) (acquisition cost — $3,365; acquired 5/25/12)		371,814		6,983
Total Convertible Preferred Stocks (Cost $22,182)				8,195
Preferred Stocks (1.7%)
Internet & Catalog Retail (1.2%)
Airbnb, Inc. Series D (a)(c)(d)(e) (acquisition cost — $47,799; acquired 4/16/14)		1,174,038		47,537
Flipkart Online Services Pvt Ltd. Series D (a)(c)(d)(e) (acquisition cost — $13,007; acquired 10/4/13)		566,827		40,897
			��	88,434
Software (0.5%)
Palantir Technologies, Inc. Series G (a)(c)(d)(e) (acquisition cost — $11,738; acquired 7/19/12)		3,835,908		23,016
Palantir Technologies, Inc. Series H (a)(c)(d)(e) (acquisition cost — $3,519; acquired 10/25/13)		1,002,564		6,015
Palantir Technologies, Inc. Series H1 (a)(c)(d)(e) (acquisition cost — $3,519; acquired 10/25/13)		1,002,564		6,015
				35,046
Total Preferred Stocks (Cost $79,582)				123,480
	Notional Amount
Call Options Purchased (0.0%)
Foreign Currency Options (0.0%)
USD/CNY December 2014 @ CNY 6.50		85,254,479		6
USD/CNY December 2014 @ CNY 6.50		1,060,534,647		80
USD/CNY December 2014 @ CNY 6.50		1,194,070,384		99
USD/CNY June 2015 @ CNY 6.62		1,374,242,186		1,307
Total Call Options Purchased (Cost $11,193)				1,492
	Shares
Short-Term Investments (5.1%)
Securities held as Collateral on Loaned Securities (2.7%)
Investment Company (2.3%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		163,629,487		163,629

	Face Amount (000)		Value (000)
Repurchase Agreements (0.4%)
BNP Paribas Securities Corp., (Zero Coupon, dated 9/30/14, due 10/1/14; proceeds $13,509; fully collateralized by various U.S. Government agency securities; 0.57% — 5.59% due 12/29/14 — 2/25/28; valued at $13,780)	$	13,509	$	13,509
Merrill Lynch & Co., Inc., (Zero Coupon, dated 9/30/14, due 10/1/14; proceeds $14,605; fully collateralized by various U.S. Government agency securities; 3.22% — 5.00% due 3/15/39 — 8/15/49; valued at $14,897)		14,605		14,605
				28,114
Total Securities held as Collateral on Loaned Securities (Cost $191,743)				191,743
	Shares
Investment Company (2.4%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $173,897)		173,897,493		173,897
Total Short-Term Investments (Cost $365,640)				365,640
Total Investments (101.1%) (Cost $5,951,981) Including $367,634 of Securities Loaned				7,324,381
Liabilities in Excess of Other Assets (-1.1%)				(76,978	)
Net Assets (100.0%)			$	7,247,403

(a) Non-income producing security.

(b) All or a portion of this security was on loan at September 30, 2014.

(c) At September 30, 2014, the Portfolio held fair valued securities valued at approximately $264,241,000, representing 3.7% 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.

(d) 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 $264,241,000 and represents 3.7% of net assets.

(e) Security has been deemed illiquid at September 30, 2014.

ADR American Depositary Receipt.

CNY — Chinese Yuan Renminbi

USD — United States Dollar

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		51.9	%
Internet Software & Services		13.6
Software		11.7
Food Products		6.8
Diversified Financial Services		5.4
Life Sciences Tools & Services		5.3
Information Technology Services		5.3
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2014.

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Mid Cap Growth Portfolio

Statement of Assets and Liabilities	September 30, 2014 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $5,614,455)	$	6,986,855
Investment in Security of Affiliated Issuer, at Value (Cost $337,526)		337,526
Total Investments in Securities, at Value (Cost $5,951,981)		7,324,381
Cash		867
Receivable for Investments Sold		210,666
Receivable for Portfolio Shares Sold		153,717
Dividends Receivable		1,077
Receivable from Affiliate		3
Other Assets		350
Total Assets		7,691,061
Liabilities:
Collateral on Securities Loaned, at Value		192,610
Payable for Portfolio Shares Redeemed		162,402
Payable for Investments Purchased		74,776
Payable for Advisory Fees		9,381
Payable for Sub Transfer Agency Fees — Class I		1,196
Payable for Sub Transfer Agency Fees — Class A		573
Payable for Sub Transfer Agency Fees — Class L		17
Due to Broker		1,320
Payable for Administration Fees		495
Payable for Shareholder Services Fees — Class A		400
Payable for Distribution and Shareholder Services Fees — Class L		11
Payable for Professional Fees		51
Payable for Trustees' Fees and Expenses		46
Payable for Custodian Fees		44
Payable for Transfer Agent Fees — Class I		12
Payable for Transfer Agent Fees — Class A		19
Payable for Transfer Agent Fees — Class L		1
Other Liabilities		304
Total Liabilities		443,658
Net Assets	$	7,247,403
Net Assets Consist Of:
Paid-in-Capital	$	4,992,905
Accumulated Undistributed Net Investment Income		11,125
Accumulated Undistributed Net Realized Gain		871,024
Unrealized Appreciation (Depreciation) on:
Investments		1,372,400
Foreign Currency Translations		(51	)
Net Assets	$	7,247,403

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Mid Cap Growth Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2014 (000)
CLASS I:
Net Assets	$	4,708,900
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		105,285,558
Net Asset Value, Offering and Redemption Price Per Share	$	44.73
CLASS A:
Net Assets	$	1,859,126
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		43,534,986
Net Asset Value, Redemption Price Per Share	$	42.70
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	2.37
Maximum Offering Price Per Share	$	45.07
CLASS L:
Net Assets	$	16,817
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		398,551
Net Asset Value, Offering and Redemption Price Per Share	$	42.20
CLASS IS:
Net Assets	$	662,560
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000s)		14,788,519
Net Asset Value, Offering and Redemption Price Per Share	$	44.80
⁽¹⁾ Including: Securities on Loan, at Value:	$	367,634

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Mid Cap Growth Portfolio

Statement of Operations	Year Ended September 30, 2014 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $1,777 of Foreign Taxes Withheld)	$	63,458
Income from Securities Loaned — Net		8,041
Dividends from Security of Affiliated Issuer (Note G)		87
Total Investment Income		71,586
Expenses:
Advisory Fees (Note B)		37,972
Sub Transfer Agency Fees		1,535
Sub Transfer Agency Fees — Class I		6,196
Sub Transfer Agency Fees — Class A		2,585
Sub Transfer Agency Fees — Class L		25
Administration Fees (Note C)		6,076
Shareholder Services Fees — Class A (Note D)		5,241
Distribution and Shareholder Services Fees — Class L (Note D)		132
Shareholder Reporting Fees		1,131
Custodian Fees (Note F)		404
Professional Fees		175
Trustees' Fees and Expenses		175
Registration Fees		143
Transfer Agency Fees — Class I (Note E)		52
Transfer Agency Fees — Class A (Note E)		75
Transfer Agency Fees — Class L (Note E)		6
Transfer Agency Fees — Class IS (Note E)		2
Pricing Fees		5
Other Expenses		144
Total Expenses		62,074
Rebate from Morgan Stanley Affiliate (Note G)		(184	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Net Expenses		61,889
Net Investment Income		9,697
Realized Gain (Loss):
Investments Sold		885,071
Foreign Currency Transactions		(124	)
Net Realized Gain		884,947
Change in Unrealized Appreciation (Depreciation):
Investments		(387,115	)
Foreign Currency Translations		(52	)
Net Change in Unrealized Appreciation (Depreciation)		(387,167	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		497,780
Net Increase in Net Assets Resulting from Operations	$	507,477

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Mid Cap Growth Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2014 (000)			Year Ended September 30, 2013 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	9,697		$	12,226
Net Realized Gain		884,947			463,569
Net Change in Unrealized Appreciation (Depreciation)		(387,167	)		1,214,780
Net Increase in Net Assets Resulting from Operations		507,477			1,690,575
Distributions from and/or in Excess of:
Class I:
Net Investment Income		—			(13,404	)
Net Realized Gain		(310,448	)		(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		(440,077	)		(221,005	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		916,673			1,139,503
Issued due to a tax-free reorganization		—			2,947
Distributions Reinvested		297,048			139,068
Redeemed		(1,755,132	)		(1,329,591	)
*Class A:**
Subscribed		295,233			235,049
Distributions Reinvested		126,784			63,274
Conversion from Class H		—			265,546
Redeemed		(745,859	)		(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		1,469			314
Issued due to a tax-free reorganization		—			16,919
Distributions Reinvested		1,024			581
Redeemed		(2,856	)		(4,686	)
Class IS:
Subscribed		725,627			10	***
Redeemed		(43,141	)		—
Net Decrease in Net Assets Resulting from Capital Share Transactions		(183,130	)		(157,988	)
Total Increase (Decrease) in Net Assets		(115,730	)		1,311,582
Net Assets:
Beginning of Period		7,363,133			6,051,551
End of Period (Including Accumulated Undistributed (Distributions in Excess of) Net Investment Income of $11,125 and $(2,028))	$	7,247,403		$	7,363,133

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Mid Cap Growth Portfolio

Statements of Changes in Net Assets (cont'd)	Year Ended September 30, 2014 (000)			Year Ended September 30, 2013 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		20,224			28,858
Shares Issued due to a tax-free reorganization		—			86
Shares Issued on Distributions Reinvested		6,827			4,036
Shares Redeemed		(38,728	)		(35,425	)
Net Decrease in Class I Shares Outstanding		(11,677	)		(2,445	)
*Class A:**
Shares Subscribed		6,761			6,431
Shares Issued on Distributions Reinvested		3,046			1,909
Conversion from Class H		—			6,494
Shares Redeemed		(17,415	)		(17,531	)
Net Decrease in Class A Shares Outstanding		(7,608	)		(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		34			8
Shares Issued due to a tax-free reorganization		—			513
Shares Issued on Distributions Reinvested		24			18
Shares Redeemed		(67	)		(132	)
Net Increase (Decrease) in Class L Shares Outstanding		(9	)		407
Class IS:
Shares Subscribed		15,763			—	@@***
Shares Redeemed		(975	)		—
Net Increase in Class IS Shares Outstanding		14,788			—	@@***

@@ Amount is less than 500 shares.

* Effective September 9, 2013, Class P and Class H shares were renamed 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.
15

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Mid Cap Growth Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	44.24		$	35.34		$	33.65		$	33.58		$	26.96
Income from Investment Operations:
Net Investment Income†		0.09			0.10			0.17			0.03			0.11
Net Realized and Unrealized Gain		3.04			10.10			3.35			0.14			6.52
Total from Investment Operations		3.13			10.20			3.52			0.17			6.63
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	)
Net Asset Value, End of Period	$	44.73		$	44.24		$	35.34		$	33.65		$	33.58
Total Return++		7.25	%		29.92	%		10.91	%		0.47	%		24.58	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,708,900		$	5,174,440		$	4,219,528		$	3,797,139		$	3,012,006
Ratio of Expenses to Average Net Assets		0.75	%+		0.70	%+^		0.71	%+		0.69	%+††		0.68	%+††
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			0.71	%+^		N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets		0.19	%+		0.27	%+^		0.48	%+		0.07	%+††		0.38	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.01	%		0.01	%
Portfolio Turnover Rate		45	%		52	%		26	%		35	%		23	%

† 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.

†† 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.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Mid Cap Growth Portfolio

	Class A*
	Year Ended September 30,
Selected Per Share Data and Ratios	2014			2013			2012			2011			2010
Net Asset Value, Beginning of Period	$	42.46		$	34.03		$	32.55		$	32.51		$	26.15
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.03	)		0.01			0.06			(0.07	)		0.04
Net Realized and Unrealized Gain		2.91			9.70			3.25			0.15			6.32
Total from Investment Operations		2.88			9.71			3.31			0.08			6.36
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	)		—
Net Asset Value, End of Period	$	42.70		$	42.46		$	34.03		$	32.55		$	32.51
Total Return++		6.95	%		29.60	%		10.62	%		0.22	%		24.32	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,859,126		$	2,171,493		$	1,832,003		$	2,595,397		$	2,465,552
Ratio of Expenses to Average Net Assets		1.00	%+		0.95	%+^		0.96	%+		0.94	%+††		0.93	%+††
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			0.96	%+^		N/A			N/A			N/A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.07	)%+		0.02	%+^		0.17	%+		(0.18	)%+††		0.13	%+††
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.01	%		0.01	%
Portfolio Turnover Rate		45	%		52	%		26	%		35	%		23	%

* Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

† 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.

†† 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 1.15% for Class A shares.

§ Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Mid Cap Growth Portfolio

	Class L
	Year Ended September 30,						Period from June 14, 2012^ to
Selected Per Share Data and Ratios	2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	42.20		$	33.97		$	32.87
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.26	)		(0.15	)		0.05
Net Realized and Unrealized Gain		2.90			9.63			1.05
Total from Investment Operations		2.64			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	$	42.20		$	42.20		$	33.97
Total Return++		6.40	%		28.92	%		3.35	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	16,817		$	17,190		$	10
Ratio of Expenses to Average Net Assets		1.55	%+		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		(0.60	)%+		(0.41	)%+^^		0.46	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§*
Portfolio Turnover Rate		45	%		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.

^^ 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Financial Highlights

Mid Cap Growth Portfolio

	Class IS
Selected Per Share Data and Ratios	Year Ended September 30, 2014			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 Gain (Loss)†		0.18			(0.00	)‡
Net Realized and Unrealized Gain		3.01			0.51
Total from Investment Operations		3.19			0.51
Distributions from and/or in Excess of:
Net Realized Gain		(2.64	)		—
Net Asset Value, End of Period	$	44.80		$	44.25
Total Return++		7.39	%		1.17	%#
Ratios and Supplemental Data:
Net Assets, End of Period, in (Thousands)	$	662,560		$	10
Ratio of Expenses to Average Net Assets		0.61	%+		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		0.41	%+		(0.22	)%+^^*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.01	%*
Portfolio Turnover Rate		45	%		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.

^^ 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements

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.

Effective September 9, 2013, Class P and Class H shares were renamed Class A shares.

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

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.

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 ("OTC") 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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

is valued on the exchange designated as the primary market; (3) listed options are valued at the last reported sales price 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.

quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.)

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 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
Aerospace & Defense	$	180,718	$	—	$	—	$	180,718
Automobiles		280,687		—		—		280,687
Biotechnology		124,478		—		—		124,478
Commercial Services & Supplies		116,999		—		—		116,999
Communications Equipment		60,768		—		—		60,768
Diversified Financial Services		381,534		—		—		381,534
Electrical Equipment		30,439		—		—		30,439
Food Products		488,291		—		—		488,291

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)
Health Care Equipment & Supplies	$	314,354	$	—	$	—	$	314,354
Health Care Providers & Services		15,106		—		—		15,106
Health Care Technology		233,675		—		—		233,675
Hotels, Restaurants & Leisure		337,016		—		—		337,016
Information Technology Services		374,627		—		—		374,627
Insurance		225,524		—		—		225,524
Internet & Catalog Retail		286,372		—		—		286,372
Internet Software & Services		900,316		—		70,372		970,688
Life Sciences Tools & Services		377,924		—		—		377,924
Machinery		139,611		—		—		139,611
Media		—		—		62,194		62,194
Oil, Gas & Consumable Fuels		61,106		—		—		61,106
Pharmaceuticals		271,268		—		—		271,268
Professional Services		351,206		—		—		351,206
Software		834,702		—		—		834,702
Tech Hardware, Storage & Peripherals		74,611		—		—		74,611
Textiles, Apparel & Luxury Goods		231,676		—		—		231,676
Total Common Stocks		6,693,008		—		132,566		6,825,574
Convertible Preferred Stocks		—		—		8,195		8,195
Preferred Stocks		—		—		123,480		123,480
Call Options Purchased		—		1,492		—		1,492
Short-Term Investments
Investment Company		337,526		—		—		337,526
Repurchase Agreements		—		28,114		—		28,114
Total Short-Term Investments		337,526		28,114		—		365,640
Total Assets	$	7,030,534	$	29,606	$	264,241	$	7,324,381

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 September 30, 2014, securities with a total value of approximately $34,767,000 transferred from Level 2 to Level 1. At September 30, 2013, the fair value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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

	Common Stocks (000)		Convertible Preferred Stocks (000)		Preferred Stocks (000)
Beginning Balance	$	97,346	$	5,162	$	12,118
Purchases		—		—		67,844
Sales		—		—		—
Amortization of discount		—		—		—
Transfers in		—		—		—
Transfers out		—		—		—
Corporate Action		—		—		—
Fund Merger		—		—		—
Change in unrealized appreciation/ depreciation		35,220		3,033		43,518
Realized gains (losses)		—		—		—
Ending Balance	$	132,566	$	8,195	$	123,480
Net change in unrealized appreciation/ depreciation from investments still held as of September 30, 2014	$	35,220	$	3,033	$	43,518

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 September 30, 2014.

	Fair Value at September 30, 2014 (000)		Valuation Technique	Unobservable Input	Range						Weighted Average/ Selected Value			Impact to Valuation from an Increase in Input
Internet & Catalog Retail
Convertible Preferred Stock	$	1,212	Market Transaction Method	Proceeds from Sale of Business	$	2.12		$	2.12		$	2.12		Increase
Preferred Stocks	$	47,537	Market Transaction Method	Precedent Transaction	$	40.71		$	40.71		$	40.71		Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		16.5	%		18.5	%		17.5	%	Decrease
				Perpetual Growth Rate		3.0	%		4.0	%		3.5	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		8.5	x		15.5	x		11.7	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease
	$	40,897	Market Transaction Method	Precedent Transaction of Preferred Stock	$	72.15		$	72.15		$	72.15		Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		16.0	%		18.0	%		17.0	%	Decrease
				Perpetual Growth Rate		3.5	%		4.5	%		4.0	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		1.8	x		4.8	x		4.3	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

	Fair Value at September 30, 2014 (000)		Valuation Technique	Unobservable Input	Range						Weighted Average/ Selected Value			Impact to Valuation from an Increase in Input
Internet Software & Services
Common Stock	$	70,372	Market Transaction Method	Precedent Transaction of Series C Preferred Shares		$19.10		$	19.10		$	19.10		Increase
Convertible Preferred			Discounted Cash Flow	Weighted Average Cost of Capital		16.0	%		18.0	%		17.0	%	Decrease
Stock	$	6,983		Perpetual Growth Rate		2.5	%		3.5	%		3.0	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		7.9	x		18.8	x		14.1	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease
Media
Common Stock	$	62,194	Market Transaction Method	Precedent Transaction	$	1,803.40		$	1,803.40		$	1,803.40		Increase
				Discount for Nature of Transaction		5.0	%		5.0	%		5.0	%	Decrease
Software
Preferred Stocks	$	35,046	Market Transaction Method	Precedent Transaction of Preferred Stock	$	6.13		$	6.13		$	6.13		Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		16.0	%		18.0	%		17.0	%	Decrease
				Perpetual Growth Rate		2.5	%		3.5	%		3.0	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		10.2	x		13.1	x		11.2	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease

be subject to cost and delays. The Portfolio, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into repurchase agreements.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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 OTC, the Portfolio bears the risk that 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.

The following table sets forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2014.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Call Options Purchased

Investments, at Value
(Options Purchased)

Currency Risk

1,492

(a)

(a) Amounts are included in Investments in Securities 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 year ended September 30, 2014 in accordance with ASC 815.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Options Purchased)	$	(9,701	)(b)

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

At September 30, 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)
Call Options Purchased	$	1,492	$	—

(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 following table presents derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 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	$	1,492	$	—	$	(1,320	)	$	172

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

For the year ended September 30, 2014, the approximate average monthly amount outstanding for each derivative type is as follows:

Options Purchased:
Average monthly notional amount				$	2,407,964,000

5. 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

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 September 30, 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)
$	367,634	(e)	$	—	$	(367,634	)(f)(g)	$	0

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

(f) The Portfolio received cash collateral of approximately $192,610,000, of which approximately $191,743,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of September 30, 2014, there was uninvested cash of approximately $867,000, which is not reflected in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $189,548,000 in the form of U.S. Government agency securities and U.S. Government 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.

7. 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

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.

9. 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.

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 year ended September 30, 2014, approximately $1,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2014, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $3,358,817,000 and $3,991,776,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended September 30, 2014.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds (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 year ended September 30, 2014, advisory fees paid were reduced by approximately $184,000 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 year ended September 30, 2014 is as follows:

Value September 30, 2013 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2014 (000)
$	362,847			$	2,229,109			$	2,254,430			$	87			$	337,526

During the year ended September 30, 2014, the Portfolio incurred approximately $9,000 in brokerage commissions with Morgan Stanley & Co., LLC, an affiliate of the Adviser, Administrator and Distributor, for portfolio transactions executed on behalf of the Portfolio.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Notes to Financial Statements (cont'd)

2014 Distributions Paid From:				2013 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	70,823	$	369,254	$	19,000	$	202,005

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, nondeductible expenses, 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, 2014:

Accumulated Undistributed Net Investment Income (000)				Accumulated Undistributed Net Realized Gain (000)				Paid-in- Capital (000)
$	3,456			$	(1,579	)		$	(1,877	)

At September 30, 2014, 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)
$	91,008			$	791,619

At September 30, 2014, the aggregate cost for Federal income tax purposes is approximately $5,952,177,000. The aggregate gross unrealized appreciation is approximately $1,799,074,000 and the aggregate gross unrealized depreciation is approximately $426,870,000 resulting in net unrealized appreciation of approximately $1,372,204,000.

I. Other (unaudited): At September 30, 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 60%, 51% and 32%, for Class I, Class A and Class IS shares, respectively.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Mid Cap Growth Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Mid Cap Growth Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Portfolio's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2014, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not obtained. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Mid Cap Growth Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 26, 2014

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Federal Tax Notice (unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Portfolio during its taxable year ended September 30, 2014. For corporate shareholders 50.39% of the dividends qualified for the dividends received deduction.

The Portfolio designated and paid approximately $369,254,000 as a long-term capital gain distribution.

In January, the Portfolio provides tax information to shareholders for the preceding calendar year.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 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 RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• 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 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.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

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

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

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

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.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

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

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (69)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Michael Bozic (73)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the Independent
Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
April
1994

100

Trustee and member of the Hillsdale College Board of Trustees

Kathleen A. Dennis (61)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various non-profit organizations.

Dr. Manuel H. Johnson (65)
c/o Johnson Smick
International, Inc.
220 I Street, N.E.
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

100

Director of NVR, Inc. (home construction).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Position(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Independent
Trustee**

Other Directorships
Held by Independent
Trustee***

Joseph J. Kearns (72)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

101

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Michael F. Klein (55)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (78)
522 Fifth Avenue
New York, NY 10036

Chairperson
of the
Board and
Trustee

Chairperson of
the Boards since
July 2006 and
Trustee since
July 1991

100

None.

W. Allen Reed (67)
c/o Kramer Levin Naftalis &
Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (82)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

101

Through December 31, 2012, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Position(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (66)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (51)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (47)
522 Fifth Avenue
New York, NY 10036

Chief Compliance Officer

Since
December
1997

Joseph C. Benedetti (49)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (49)
522 Fifth Avenue
New York, NY 10036

Treasurer and Principal Financial
Officer

Treasurer since July 2003 and Principal Financial Officer since September 2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (47)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves an indefinite term, until his or her successor is elected.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2014

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

Proxy Voting Policies and Procedures and Proxy Voting Record

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

IFTMCGANN
1044175 EXP 11.28.15

Item 2. Code of Ethics.

(a) The Fund has adopted a code of ethics (the “Code of Ethics”) that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Fund or a third party.

(b) No information need be disclosed pursuant to this paragraph.

(d) Not applicable.

(e) Not applicable.

(f)

(1) The Fund’s Code of Ethics is attached hereto as Exhibit 12 A.

(2) Not applicable.

(3) Not applicable.

Item 3. Audit Committee Financial Expert.

The Fund’s Board of Trustees has determined that Joseph J. Kearns, an “independent” Trustee, is an “audit committee financial expert” serving on its audit committee. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification

Item 4. Principal Accountant Fees and Services.

(a)(b)(c)(d) and (g). Based on fees billed for the periods shown:

2014

	Registrant			Covered Entities(1)
Audit Fees	$	355,677		N/A

Non-Audit Fees
Audit-Related Fees	$	—	(2)	$	—	(2)
Tax Fees	$	27,807	(3)	$	8,152,733	(4)
All Other Fees	$			$	280,341	(5)
Total Non-Audit Fees	$	27,807		$	8,433,074

Total	$	383,484		$	8,433,074

2013

	Registrant			Covered Entities(1)
Audit Fees	$	321,708		N/A

Non-Audit Fees
Audit-Related Fees	$	—	(2)	$	—	(2)
Tax Fees	$	27,073	(3)	$	6,883,455	(4)
All Other Fees	$			$	96,000	(5)
Total Non-Audit Fees	$	27,073		$	6,979,455

Total	$	348,781		$	6,979,455

N/A- Not applicable, as not required by Item 4.

(1) Covered Entities include the Adviser (excluding sub-advisors) and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Registrant.

(2) Audit-Related Fees represent assurance and related services provided that are reasonably related to the performance of the audit of the financial statements of the Covered Entities’ and funds advised by the Adviser or its affiliates, specifically data verification and agreed-upon procedures related to asset securitizations and agreed-upon procedures engagements.

(3) Tax Fees represent tax compliance, tax planning and tax advice services provided in connection with the preparation and review of the Registrant’s tax returns.

(4) Tax Fees represent tax compliance, tax planning and tax advice services provided in connection with the review of Covered Entities’ tax returns.

(5) All other fees represent project management for future business applications and improving business and operational processes.

(e)(1) The audit committee’s pre-approval policies and procedures are as follows:

APPENDIX A

AUDIT COMMITTEE

AUDIT AND NON-AUDIT SERVICES

PRE-APPROVAL POLICY AND PROCEDURES

OF THE

MORGAN STANLEY RETAIL AND INSTITUTIONAL FUNDS

AS ADOPTED AND AMENDED JULY 23, 2004,(1)

1. Statement of Principles

The Audit Committee of the Board is required to review and, in its sole discretion, pre-approve all Covered Services to be provided by the Independent Auditors to the Fund and Covered Entities in order to assure that services performed by the Independent Auditors do not impair the auditor’s independence from the Fund.

The SEC has issued rules specifying the types of services that an independent auditor may not provide to its audit client, as well as the audit committee’s administration of the engagement of the independent auditor. The SEC’s rules establish two different approaches to pre-approving services, which the SEC considers to be equally valid. Proposed services either: may be pre-approved without consideration of specific case-by-case services by the Audit Committee (“general pre-approval”); or require the specific pre-approval of the Audit Committee or its delegate (“specific pre-approval”). The Audit Committee believes that the combination of these two approaches in this Policy will result in an effective and efficient procedure to pre-approve services performed by the Independent Auditors. As set forth in this Policy, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee (or by any member of the Audit Committee to which pre-approval authority has been delegated) if it is to be provided by the Independent Auditors. Any proposed services exceeding pre-approved cost levels or budgeted amounts will also require specific pre-approval by the Audit Committee.

The appendices to this Policy describe the Audit, Audit-related, Tax and All Other services that have the general pre-approval of the Audit Committee. The term of any general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee considers and provides a different period and states otherwise. The Audit Committee will annually review and pre-approve the services that may be provided by the Independent Auditors without obtaining specific pre-approval from the Audit Committee. The Audit Committee will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.

(1) This Audit Committee Audit and Non-Audit Services Pre-Approval Policy and Procedures (the “Policy”), adopted as of the date above, supersedes and replaces all prior versions that may have been adopted from time to time.

The purpose of this Policy is to set forth the policy and procedures by which the Audit Committee intends to fulfill its responsibilities. It does not delegate the Audit Committee’s responsibilities to pre-approve services performed by the Independent Auditors to management.

The Fund’s Independent Auditors have reviewed this Policy and believes that implementation of the Policy will not adversely affect the Independent Auditors’ independence.

2. Delegation

As provided in the Act and the SEC’s rules, the Audit Committee may delegate either type of pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next scheduled meeting.

3. Audit Services

The annual Audit services engagement terms and fees are subject to the specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by the Independent Auditors to be able to form an opinion on the Fund’s financial statements. These other procedures include information systems and procedural reviews and testing performed in order to understand and place reliance on the systems of internal control, and consultations relating to the audit. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, Fund structure or other items.

In addition to the annual Audit services engagement approved by the Audit Committee, the Audit Committee may grant general pre-approval to other Audit services, which are those services that only the Independent Auditors reasonably can provide. Other Audit services may include statutory audits and services associated with SEC registration statements (on Forms N-1A, N-2, N-3, N-4, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.

The Audit Committee has pre-approved the Audit services in Appendix B.1. All other Audit services not listed in Appendix B.1 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

4. Audit-related Services

Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Fund’s financial statements and, to the extent they are Covered Services, the Covered Entities or that are traditionally performed by the Independent Auditors. Because the Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor and is consistent with the SEC’s rules on auditor independence, the Audit Committee may grant general pre-approval to Audit-related services. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters

not classified as “Audit services”; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting requirements under Forms N-SAR and/or N-CSR.

The Audit Committee has pre-approved the Audit-related services in Appendix B.2. All other Audit-related services not listed in Appendix B.2 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

5. Tax Services

The Audit Committee believes that the Independent Auditors can provide Tax services to the Fund and, to the extent they are Covered Services, the Covered Entities, such as tax compliance, tax planning and tax advice without impairing the auditor’s independence, and the SEC has stated that the Independent Auditors may provide such services.

Pursuant to the preceding paragraph, the Audit Committee has pre-approved the Tax Services in Appendix B.3. All Tax services in Appendix B.3 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

6. All Other Services

The Audit Committee believes, based on the SEC’s rules prohibiting the Independent Auditors from providing specific non-audit services, that other types of non-audit services are permitted. Accordingly, the Audit Committee believes it may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, would not impair the independence of the auditor and are consistent with the SEC’s rules on auditor independence.

The Audit Committee has pre-approved the All Other services in Appendix B.4. Permissible All Other services not listed in Appendix B.4 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

7. Pre-Approval Fee Levels or Budgeted Amounts

Pre-approval fee levels or budgeted amounts for all services to be provided by the Independent Auditors will be established annually by the Audit Committee. Any proposed services exceeding these levels or amounts will require specific pre-approval by the Audit Committee. The Audit Committee is mindful of the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services.

8. Procedures

All requests or applications for services to be provided by the Independent Auditors that do not require specific approval by the Audit Committee will be submitted to the Fund’s Chief Financial Officer and must include a detailed description of the services to be

rendered. The Fund’s Chief Financial Officer will determine whether such services are included within the list of services that have received the general pre-approval of the Audit Committee. The Audit Committee will be informed on a timely basis of any such services rendered by the Independent Auditors. Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the Independent Auditors and the Fund’s Chief Financial Officer, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.

The Audit Committee has designated the Fund’s Chief Financial Officer to monitor the performance of all services provided by the Independent Auditors and to determine whether such services are in compliance with this Policy. The Fund’s Chief Financial Officer will report to the Audit Committee on a periodic basis on the results of its monitoring. Both the Fund’s Chief Financial Officer and management will immediately report to the chairman of the Audit Committee any breach of this Policy that comes to the attention of the Fund’s Chief Financial Officer or any member of management.

9. Additional Requirements

The Audit Committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work of the Independent Auditors and to assure the auditor’s independence from the Fund, such as reviewing a formal written statement from the Independent Auditors delineating all relationships between the Independent Auditors and the Fund, consistent with Independence Standards Board No. 1, and discussing with the Independent Auditors its methods and procedures for ensuring independence.

10. Covered Entities

Covered Entities include the Fund’s investment adviser(s) and any entity controlling, controlled by or under common control with the Fund’s investment adviser(s) that provides ongoing services to the Fund(s). Beginning with non-audit service contracts entered into on or after May 6, 2003, the Fund’s audit committee must pre-approve non-audit services provided not only to the Fund but also to the Covered Entities if the engagements relate directly to the operations and financial reporting of the Fund. This list of Covered Entities would include:

Morgan Stanley Retail Funds

Morgan Stanley Investment Advisors Inc.

Morgan Stanley & Co. Incorporated

Morgan Stanley DW Inc.

Morgan Stanley Investment Management Inc.

Morgan Stanley Investment Management Limited

Morgan Stanley Investment Management Private Limited

Morgan Stanley Asset & Investment Trust Management Co., Limited

Morgan Stanley Investment Management Company

Morgan Stanley Services Company, Inc.

Morgan Stanley Distributors Inc.

Morgan Stanley Trust FSB

Morgan Stanley Institutional Funds

Morgan Stanley Investment Management Inc.

Morgan Stanley Investment Advisors Inc.

Morgan Stanley Investment Management Limited

Morgan Stanley Investment Management Private Limited

Morgan Stanley Asset & Investment Trust Management Co., Limited

Morgan Stanley Investment Management Company

Morgan Stanley & Co. Incorporated

Morgan Stanley Distribution, Inc.

Morgan Stanley AIP GP LP

Morgan Stanley Alternative Investment Partners LP

(e)(2) Beginning with non-audit service contracts entered into on or after May 6, 2003, the audit committee also is required to pre-approve services to Covered Entities to the extent that the services are determined to have a direct impact on the operations or financial reporting of the Registrant. 100% of such services were pre-approved by the audit committee pursuant to the Audit Committee’s pre-approval policies and procedures (attached hereto).

(f) Not applicable.

(g) See table above.

(h) The audit committee of the Board of Trustees has considered whether the provision of services other than audit services performed by the auditors to the Registrant and Covered Entities is compatible with maintaining the auditors’ independence in performing audit services.

Item 5. Audit Committee of Listed Registrants.

(a) The Fund has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act whose members are:

Joseph Kearns, Michael Nugent, Allen Reed and Michael Klein.

(b) Not applicable.

Item 6. Schedule of Investments

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Applicable only to reports filed by closed-end funds.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable only 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) The Code of Ethics for Principal Executive and Senior Financial Officers is attached hereto.

(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
November 19, 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
November 19, 2014

/s/ Francis Smith
Francis Smith
Principal Financial Officer
November 19, 2014

Morgan Stanley Institutional Fund Trust N-CSRCertified annual shareholder report (management investment company)