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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-03980

Morgan Stanley Institutional Fund Trust
(Exact name of registrant as specified in charter)

522 Fifth Avenue, New York, New York					10036
(Address of principal executive offices)					(Zip code)

John H. Gernon 522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)

Registrant’s telephone number, including area code:				212-296-0289

Date of fiscal year end:	September 30,

Date of reporting period:		March 31, 2016

Item 1 - Report to Shareholders

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Short Duration Income Portfolio

(formerly Limited Duration Portfolio)

Semi-Annual Report
March 31, 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					10
Statement of Operations					12
Statements of Changes in Net Assets					13
Financial Highlights					15
Notes to Financial Statements					20
U.S. Privacy Policy					31
Trustee and Officer Information					34

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

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

There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that market values of securities owned by the Portfolio will decline and, therefore, the value of the Portfolio's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Portfolio. Please see the prospectus for more complete information on investment risks.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Expense Example (unaudited)

Short Duration Income Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2016 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 10/1/15		Actual Ending Account Value 3/31/16		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
Short Duration Income Portfolio Class I	$	1,000.00	$	1,030.00	$	1,022.85	$	2.18	*	$	2.17	*		0.43	%
Short Duration Income Portfolio Class A		1,000.00		1,029.80		1,022.40		2.64	*		2.63	*		0.52
Short Duration Income Portfolio Class L		1,000.00		1,027.80		1,019.85		5.22	*		5.20	*		1.03
Short Duration Income Portfolio Class C		1,000.00		1,024.90		1,017.60		7.49	*		7.47	*		1.48
Short Duration Income Portfolio Class IS		1,000.00		1,030.90		1,010.51		0.56	**		0.56	**		0.25

* Expenses are calculated using each Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 183/366 (to reflect the most recent one-half year period).

** 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 81/366 (to reflect actual days one-half year period).

*** Annualized.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (95.0%)
Agency Adjustable Rate Mortgages (7.2%)
Federal Home Loan Mortgage Corporation,
Conventional Pools:
2.47%, 6/1/38	$	580	$	613
2.56%, 7/1/38		498		523
2.60%, 8/1/35 - 5/1/40		2,612		2,760
2.61%, 7/1/38		682		720
2.63%, 6/1/37		242		257
2.69%, 9/1/35		1,090		1,150
2.81%, 9/1/40		324		341
Federal National Mortgage Association,
Conventional Pools:
2.02%, 9/1/37		776		797
2.44%, 9/1/38		642		667
2.51%, 10/1/35 - 9/1/38		1,171		1,240
2.60%, 9/1/39		261		277
2.61%, 5/1/39		895		942
Government National Mortgage Association,
Various Pools:
1.75%, 2/20/41		315		326
2.00%, 11/20/39		161		167
				10,780
Agency Bond — Consumer Discretionary (U.S. Government Guaranteed) (0.4%)
Safina Ltd.
2.00%, 12/30/23		660		666
Agency Bonds — Sovereign (U.S. Government Guaranteed) (1.8%)
Hashemite Kingdom of Jordan Government AID Bond
2.50%, 10/30/20		1,705		1,797
Tunisia Government AID Bonds
1.69%, 7/16/19		885		903
				2,700
Agency Fixed Rate Mortgages (7.2%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
4.50%, 12/1/24		713		763
6.50%, 9/1/19 - 4/1/24		3		4
7.50%, 11/1/19 - 5/1/35		44		54
8.00%, 8/1/32		25		31
8.50%, 8/1/31		26		34
Federal National Mortgage Association,
Conventional Pools:
4.50%, 6/1/24 - 1/1/44		2,822		3,073
5.00%, 12/1/23 - 11/1/44		3,900		4,300
6.00%, 2/1/37 - 9/1/37		520		594
6.50%, 2/1/28 - 10/1/32		298		343
7.00%, 7/1/29 - 3/1/37		404		482
7.50%, 8/1/37		60		75
8.00%, 4/1/33		106		132
8.50%, 10/1/32		45		57

	Face Amount (000)		Value (000)
Government National Mortgage Association,
Various Pools:
6.00%, 11/15/38	$	220	$	249
7.50%, 11/15/32		302		358
8.50%, 7/15/30		134		152
9.00%, 11/15/16 - 12/15/16		5		5
				10,706
Asset-Backed Securities (8.8%)
Ally Auto Receivables Trust,
1.20%, 8/15/18		460		460
1.47%, 4/15/20		650		652
American Homes 4 Rent
4.69%, 10/17/45 (a)		176		174
CAM Mortgage LLC
3.38%, 7/15/64 (a)		224		224
Capital One Multi-Asset Execution Trust,
1.45%, 8/16/21		474		476
1.48%, 7/15/20		550		553
Citibank Credit Card Issuance Trust
2.88%, 1/23/23		450		471
Colony American Homes
1.59%, 5/17/31 (a)(b)		407		400
Discover Card Execution Note Trust
0.87%, 7/15/21 (b)		670		671
Ford Credit Auto Owner Trust,
1.39%, 7/15/20		400		401
2.26%, 11/15/25 (a)		1,165		1,181
Green Tree Agency Advance Funding Trust I
3.09%, 10/15/48 (a)		227		227
Hyundai Auto Lease Securitization Trust
0.99%, 7/16/18 (a)(b)		600		600
Invitation Homes Trust,
1.58%, 12/17/30 (a)(b)		592		586
1.78%, 6/17/32 (a)(b)		392		385
3.18%, 8/17/32 (a)(b)		666		635
Nationstar HECM Loan Trust,
2.88%, 11/25/25 (a)		230		230
2.98%, 2/25/26 (a)		476		476
3.84%, 5/25/18 (a)		231		231
North Carolina State Education Assistance Authority
1.42%, 7/25/25 (b)		548		538
Panhandle-Plains Higher Education Authority, Inc.
1.56%, 7/1/24 (b)		163		162
RMAT LLC
4.83%, 6/25/35 (a)		467		459
SBA Small Business Investment Cos.
2.25%, 9/10/22		608		613
SPS Servicer Advance Receivables Trust
2.92%, 7/15/47 (a)		350		350
Sunset Mortgage Loan Co., LLC
3.72%, 11/16/44 (a)		161		160
Volkswagen Credit Auto Master Trust
1.40%, 7/22/19 (a)		398		394

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Asset-Backed Securities (cont'd)
VOLT NPL X LLC
4.75%, 10/26/54 (a)	$	282	$	276
VOLT XIX LLC
5.00%, 4/25/55 (a)		200		197
VOLT XXII LLC
4.25%, 2/25/55 (a)		200		192
VOLT XXX LLC
4.75%, 10/25/57 (a)		200		195
VOLT XXXI LLC
4.50%, 2/25/55 (a)		200		195
VOLT XXXIII LLC
4.25%, 3/25/55 (a)		347		336
				13,100
Collateralized Mortgage Obligations — Agency Collateral Series (6.8%)
Federal Home Loan Mortgage Corporation,
1.44%, 1/25/19		437		439
1.56%, 10/25/18		194		195
1.62%, 9/25/18		465		468
1.66%, 11/25/16		2,202		2,204
1.78%, 10/25/20		496		501
1.87%, 1/25/18		6		6
1.88%, 5/25/19		843		857
2.06%, 10/25/20		585		595
2.09%, 3/25/19		265		271
2.26%, 10/25/20		322		328
2.30%, 9/25/18		320		328
2.32%, 10/25/18		285		292
3.03%, 10/25/20 (b)		483		512
REMIC
7.50%, 9/15/29		821		956
Federal National Mortgage Association,
0.62%, 6/25/18 (b)		241		240
1.55%, 4/25/18		250		251
1.63%, 2/25/18		300		302
2.17%, 9/25/19 (b)		587		600
Government National Mortgage Association,
IO
5.00%, 11/20/38		972		59
5.80%, 3/20/43 (b)		882		147
6.06%, 8/16/39 (b)		899		81
6.07%, 5/20/40 (b)		1,068		188
6.16%, 1/16/40 (b)		646		109
6.36%, 8/16/36 (b)		1,151		258
				10,187
Commercial Mortgage-Backed Securities (1.2%)
BLCP Hotel Trust
1.39%, 8/15/29 (a)(b)		581		568
CDGJ Commercial Mortgage Trust
1.74%, 12/15/27 (a)(b)		544		540
Citigroup Commercial Mortgage Trust
2.11%, 1/12/30 (a)		165		166

	Face Amount (000)		Value (000)
Hilton USA Trust
1.44%, 11/5/30 (a)(b)	$	154	$	154
Hudsons Bay Simon JV Trust
2.02%, 8/5/34 (a)(b)		185		185
JP Morgan Chase Commercial Mortgage Securities Trust
1.42%, 7/15/31 (a)(b)		177		176
				1,789
Corporate Bonds (57.2%)
Finance (26.7%)
ABN Amro Bank N.V.
2.50%, 10/30/18 (a)		630		639
American Express Credit Corp.,
Series G
1.80%, 7/31/18		425		427
2.25%, 8/15/19		675		684
Automatic Data Processing, Inc.
2.25%, 9/15/20		350		360
Bank of America Corp.,
MTN
2.63%, 10/19/20		780		786
Bank of America NA
1.25%, 2/14/17		1,450		1,452
Bank of Montreal,
MTN
1.80%, 7/31/18		475		477
Bank of New York Mellon Corp. (The),
MTN
2.45%, 11/27/20		525		536
Bank of Nova Scotia (The),
1.70%, 6/11/18		550		551
1.95%, 1/15/19		725		731
BB&T Corp.,
MTN
2.25%, 2/1/19		580		590
Berkshire Hathaway Finance Corp.
1.70%, 3/15/19		500		507
BNP Paribas SA, MTN
2.70%, 8/20/18		610		624
BNZ International Funding Ltd.
2.35%, 3/4/19 (a)		650		654
BPCE SA,
MTN
2.25%, 1/27/20		600		602
Canadian Imperial Bank of Commerce
1.55%, 1/23/18		310		310
Capital One Financial Corp.
2.45%, 4/24/19		1,005		1,016
Citigroup, Inc.
2.05%, 12/7/18		475		477
Commonwealth Bank of Australia
2.50%, 9/20/18		600		612
Compass Bank
1.85%, 9/29/17		600		601

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Cooperatieve Rabobank UA
3.38%, 1/19/17	$	330	$	336
Credit Agricole SA
2.13%, 4/17/18 (a)		775		781
Credit Suisse AG, Series G
2.30%, 5/28/19		650		656
DBS Group Holdings Ltd.
2.25%, 7/16/19 (a)		650		657
Discover Bank
2.00%, 2/21/18		665		662
DNB Bank ASA
3.20%, 4/3/17 (a)		610		621
ERP Operating LP
2.38%, 7/1/19		550		554
Goldman Sachs Group, Inc. (The)
2.38%, 1/22/18		880		892
HSBC USA, Inc.,
1.63%, 1/16/18		725		724
2.25%, 6/23/19		659		661
ING Bank N.V.
2.05%, 8/17/18 (a)		1,075		1,081
Intesa Sanpaolo SpA
3.88%, 1/16/18		355		363
Jackson National Life Global Funding
1.88%, 10/15/18 (a)		275		276
JPMorgan Chase & Co.,
1.85%, 3/22/19		1,170		1,175
2.20%, 10/22/19		325		331
LeasePlan Corp. N.V.
2.88%, 1/22/19 (a)		500		499
Macquarie Bank Ltd., 2.35%, 1/15/19 (a)		725		729
2.60%, 6/24/19 (a)		605		611
Manufacturers & Traders Trust Co.
2.10%, 2/6/20		560		559
Metropolitan Life Global Funding I
2.00%, 4/14/20 (a)		550		547
Mizuho Bank Ltd.
1.85%, 3/21/18 (a)		645		645
National Australia Bank Ltd.
1.25%, 3/17/17 (a)		400		400
New York Life Global Funding,
1.30%, 10/30/17 (a)		475		476
1.55%, 11/2/18 (a)		375		376
PNC Bank NA
1.95%, 3/4/19		875		884
Principal Financial Group, Inc.
1.85%, 11/15/17		725		727
Protective Life Global Funding
2.70%, 11/25/20 (a)		525		534

	Face Amount (000)		Value (000)
QBE Insurance Group Ltd.
2.40%, 5/1/18 (a)	$	200	$	201
Royal Bank of Canada
1.80%, 7/30/18		500		503
Santander Bank NA
2.00%, 1/12/18		525		521
Santander UK Group Holdings PLC
2.88%, 10/16/20		200		199
Skandinaviska Enskilda Banken AB
1.75%, 3/19/18 (a)		380		380
Standard Chartered PLC
1.50%, 9/8/17 (a)		900		893
Sumitomo Mitsui Banking Corp.
2.45%, 1/10/19		630		640
Swedbank AB
1.75%, 3/12/18 (a)		305		305
Synchrony Financial
3.00%, 8/15/19		800		813
Toronto-Dominion Bank (The),
1.95%, 1/22/19		1,450		1,463
MTN
2.63%, 9/10/18		650		666
UBS AG,
MTN
2.38%, 8/14/19		925		939
UnitedHealth Group, Inc.
2.70%, 7/15/20		500		520
Visa, Inc.
2.20%, 12/14/20		500		513
WEA Finance LLC/Westfield UK & Europe Finance PLC
2.70%, 9/17/19 (a)		600		605
Wells Fargo & Co.
2.15%, 1/15/19		360		367
Wells Fargo Bank NA
1.65%, 1/22/18		725		731
Westpac Banking Corp.
1.95%, 11/23/18		375		378
				40,030
Industrials (28.1%)
ABB Treasury Center USA, Inc.
2.50%, 6/15/16 (a)		745		747
AbbVie, Inc.
2.50%, 5/14/20		575		586
Actavis Funding SCS
3.00%, 3/12/20		835		861
Altera Corp.
2.50%, 11/15/18		300		309
Amazon.com, Inc.
2.60%, 12/5/19		525		547
American Honda Finance Corp.,
MTN
2.45%, 9/24/20		550		567

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Anadarko Petroleum Corp.
5.95%, 9/15/16	$	575	$	585
Anheuser-Busch InBev Finance, Inc.
1.90%, 2/1/19		775		786
AstraZeneca PLC
1.75%, 11/16/18		525		530
AT&T, Inc.
2.45%, 6/30/20		1,225		1,243
Baidu, Inc.
3.25%, 8/6/18		225		231
BAT International Finance PLC
2.75%, 6/15/20 (a)		450		463
Baxalta, Inc.
2.88%, 6/23/20 (a)		550		550
Bayer US Finance LLC
2.38%, 10/8/19 (a)		600		619
Becton Dickinson and Co.
2.68%, 12/15/19		300		308
Biogen, Inc.
2.90%, 9/15/20		525		541
Caterpillar Financial Services Corp.,
1.50%, 2/23/18		425		427
1.80%, 11/13/18		300		304
CBS Corp.
2.30%, 8/15/19		625		632
Celgene Corp.
2.88%, 8/15/20		525		541
Chevron Corp.
1.79%, 11/16/18		300		304
Cisco Systems, Inc.
1.60%, 2/28/19		700		710
Coca-Cola Co.
1.88%, 10/27/20		500		508
Comcast Corp.
5.70%, 5/15/18		520		569
CVS Health Corp.
1.90%, 7/20/18		550		558
Daimler Finance North America LLC
2.38%, 8/1/18 (a)		750		762
Dominion Gas Holdings LLC
2.50%, 12/15/19		825		838
EMD Finance LLC
2.40%, 3/19/20 (a)		575		575
Enbridge, Inc.
1.08%, 6/2/17 (b)		175		168
Enterprise Products Operating LLC
2.55%, 10/15/19		325		326
Experian Finance PLC
2.38%, 6/15/17 (a)		600		599
Exxon Mobil Corp.
1.71%, 3/1/19		775		786

	Face Amount (000)		Value (000)
Ford Motor Credit Co., LLC
5.00%, 5/15/18	$	825	$	872
General Motors Financial Co., Inc.
3.15%, 1/15/20		600		602
Gilead Sciences, Inc.
2.55%, 9/1/20		500		515
Goldcorp, Inc.
2.13%, 3/15/18		520		513
Harley-Davidson Financial Services, Inc.,
1.55%, 11/17/17 (a)		258		259
2.15%, 2/26/20 (a)		350		351
Hewlett Packard Enterprise Co.
3.60%, 10/15/20 (a)		400		416
Hutchison Whampoa International 14 Ltd.
1.63%, 10/31/17 (a)		240		240
Hyundai Capital America,
2.00%, 3/19/18 (a)		525		529
2.50%, 3/18/19 (a)		775		782
2.60%, 3/19/20 (a)		325		325
Ingersoll-Rand Global Holding Co., Ltd.
2.88%, 1/15/19		335		343
Intel Corp.
2.45%, 7/29/20		550		570
JM Smucker Co. (The)
2.50%, 3/15/20		225		228
John Deere Capital Corp.
1.95%, 1/8/19		275		279
Kinder Morgan, Inc.
3.05%, 12/1/19		650		640
L-3 Communications Corp.
1.50%, 5/28/17		275		274
Lockheed Martin Corp.
2.50%, 11/23/20		225		231
LVMH Moet Hennessy Louis Vuitton SE
1.63%, 6/29/17 (a)		525		528
McDonald's Corp.,
MTN
2.20%, 5/26/20		550		561
Mead Johnson Nutrition Co.
3.00%, 11/15/20		175		180
Medtronic, Inc.
2.50%, 3/15/20		550		569
Nissan Motor Acceptance Corp., 2.00%, 3/8/19 (a)		575		580
2.65%, 9/26/18 (a)		720		736
Orange SA
2.75%, 2/6/19		625		645
PepsiCo, Inc.
1.50%, 2/22/19		450		456
Reynolds American, Inc.
2.30%, 6/12/18		525		536
Rio Tinto Finance USA PLC
1.38%, 6/17/16		325		325

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Ryder System, Inc.,
MTN
2.65%, 3/2/20	$	125	$	125
5.85%, 11/1/16		475		487
Scripps Networks Interactive, Inc.
2.75%, 11/15/19		575		578
Shell International Finance BV
1.25%, 11/10/17		675		676
Siemens Financieringsmaatschappij N.V.
2.15%, 5/27/20 (a)		550		558
Southwest Airlines Co.
2.75%, 11/6/19		600		618
Thomson Reuters Corp.,
1.30%, 2/23/17		325		324
1.65%, 9/29/17		150		150
Time Warner Cable, Inc.
6.75%, 7/1/18		400		440
Toyota Motor Credit Corp.
1.70%, 2/19/19		725		732
TSMC Global Ltd.
1.63%, 4/3/18 (a)		800		796
Tyson Foods, Inc.
2.65%, 8/15/19		600		616
Union Pacific Corp.
2.25%, 6/19/20		550		562
Verizon Communications, Inc.
2.55%, 6/17/19		1,250		1,287
Viacom, Inc.
2.50%, 9/1/18		625		630
Volkswagen Group of America Finance LLC
2.40%, 5/22/20 (a)		550		539
Walt Disney Co. (The)
1.65%, 1/8/19		100		102
Waste Management, Inc.
2.60%, 9/1/16		725		730
Wesfarmers Ltd.
2.98%, 5/18/16 (a)		395		396
Wm Wrigley Jr. Co.
1.40%, 10/21/16 (a)		600		601
				42,112
Utilities (2.4%)
Energy Transfer Partners LP
2.50%, 6/15/18		575		557
Engie
1.63%, 10/10/17 (a)		650		651
Eversource Energy
1.45%, 5/1/18		525		521
Origin Energy Finance Ltd.
3.50%, 10/9/18 (a)		200		189
Sempra Energy
2.40%, 3/15/20		600		603

	Face Amount (000)		Value (000)
Southern Co. (The)
2.15%, 9/1/19	$	725	$	729
Xcel Energy, Inc.
1.20%, 6/1/17		275		274
				3,524
				85,666
Mortgages — Other (2.0%)
CHL Mortgage Pass-Through Trust
5.50%, 5/25/34		273		279
Fannie Mae Connecticut Avenue Securities
1.59%, 5/25/25 (b)		261		260
FDIC Guaranteed Notes Trust
0.99%, 2/25/48 (a)(b)		61		61
Freddie Mac Structured Agency Credit Risk Debt Notes,
1.34%, 10/25/27 (b)		229		228
1.44%, 2/25/24 (b)		165		165
1.89%, 7/25/28 (b)		493		493
2.19%, 9/25/28 (b)		350		351
New Residential Mortgage Loan Trust,
3.75%, 5/28/52 (a)(b)		257		264
3.75%, 8/25/55 (b)		465		482
Sequoia Mortgage Trust
1.05%, 8/20/34 (b)		508		478
				3,061
Sovereign (0.8%)
Korea Development Bank (The)
1.50%, 1/22/18		690		691
Spain Government International Bond
4.00%, 3/6/18 (a)		500		522
				1,213
U.S. Agency Security (1.6%)
Private Export Funding Corp.
1.45%, 8/15/19		2,300		2,329
Total Fixed Income Securities (Cost $140,606)				142,197
	Shares
Short-Term Investments (4.7%)
Investment Company (3.8%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $5,689)		5,688,861		5,689
	Face Amount (000)
U.S. Treasury Security (0.9%)
U.S. Treasury Bill, 0.51%, 6/9/16 (c)(d) (Cost $1,349)	$	1,350		1,350
Total Short-Term Investments (Cost $7,038)				7,039
Total Investments (99.7%) (Cost $147,644) (e)(f)				149,236
Other Assets in Excess of Liabilities (0.3%)				408
Net Assets (100.0%)			$	149,644

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

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

(b) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 31, 2016.

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

(e) Securities are available for collateral in connection with open foreign currency forward exchange contracts and futures contracts.

(f) At March 31, 2016, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,990,000 and the aggregate gross unrealized depreciation is approximately $398,000 resulting in net unrealized appreciation of approximately $1,592,000.

AID Agency for International Development.

FDIC Federal Deposit Insurance Corporation.

IO Interest Only.

MTN Medium Term Note.

REMIC Real Estate Mortgage Investment Conduit.

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at March 31, 2016:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
HSBC Bank PLC	$	9	AUD	13	4/5/16	$	—	@
UBS AG	AUD	13	$	10	4/5/16		(—	@)
						$	—	@

Futures Contracts:

The Portfolio had the following futures contracts open at March 31, 2016:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Short:
U.S. Treasury 5 yr. Note		211	$	(25,565	)	Jun-16	$	31
U.S. Treasury 2 yr. Note		133		(29,094	)	Jun-16		(123	)
U.S. Treasury 10 yr. Note		17		(2,217	)	Jun-16		4
							$	(88	)

@ Value is less than $500.

AUD — Australian Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		28.2	%
Finance		26.8
Other*		15.0
Asset-Backed Securities		8.8
Agency Adjustable Rate Mortgages		7.2
Agency Fixed Rate Mortgages		7.2
Collateralized Mortgage Obligations — Agency Collateral Series		6.8
Total Investments		100.0	%**

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

** Does not include open short futures contracts with an underlying face amount of approximately $56,876,000 with net unrealized depreciation of approximately $88,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Short Duration Income Portfolio

Statement of Assets and Liabilities	March 31, 2016 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $141,955)	$	143,547
Investment in Security of Affiliated Issuer, at Value (Cost $5,689)		5,689
Total Investments in Securities, at Value (Cost $147,644)		149,236
Interest and Paydown Receivable		686
Receivable for Portfolio Shares Sold		172
Due from Adviser		1
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		—	@
Receivable from Affiliate		—	@
Due from Broker		—	@
Other Assets		93
Total Assets		150,188
Liabilities:
Payable for Portfolio Shares Redeemed		267
Payable for Variation Margin on Futures Contracts		63
Payable for Reorganization Expense		53
Payable for Professional Fees		38
Payable for Custodian Fees		32
Payable for Sub Transfer Agency Fees — Class A		14
Payable for Shareholder Services Fees — Class A		10
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Administration Fees		10
Payable for Trustees' Fees and Expenses		7
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		4
Payable for Transfer Agency Fees — Class C		—	@
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		—	@
Other Liabilities		46
Total Liabilities		544
Net Assets	$	149,644
Net Assets Consist Of:
Paid-in-Capital	$	380,755
Accumulated Undistributed Net Investment Income		491
Accumulated Net Realized Loss		(233,106	)
Unrealized Appreciation (Depreciation) on:
Investments		1,592
Futures Contracts		(88	)
Foreign Currency Translations		—	@
Net Assets	$	149,644

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Short Duration Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2016 (000)
CLASS I:
Net Assets	$	99,309
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		12,632,281
Net Asset Value, Offering and Redemption Price Per Share	$	7.86
CLASS A:
Net Assets	$	49,794
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		6,320,040
Net Asset Value, Offering and Redemption Price Per Share	$	7.88
CLASS L:
Net Assets	$	426
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		54,160
Net Asset Value, Offering and Redemption Price Per Share	$	7.86
CLASS C:
Net Assets	$	105
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		13,369
Net Asset Value, Offering and Redemption Price Per Share	$	7.84
CLASS IS:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,307
Net Asset Value, Offering and Redemption Price Per Share	$	7.86

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Short Duration Income Portfolio

Statement of Operations	Six Months Ended March 31, 2016 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	1,436
Dividends from Security of Affiliated Issuer (Note G)		3
Total Investment Income		1,439
Expenses:
Advisory Fees (Note B)		151
Professional Fees		56
Administration Fees (Note C)		49
Shareholder Services Fees — Class A (Note D)		28
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		1
Custodian Fees (Note F)		30
Shareholder Reporting Fees		18
Sub Transfer Agency Fees — Class I		16
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Registration Fees		16
Pricing Fees		15
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		—	@
Trustees' Fees and Expenses		1
Other Expenses		5
Total Expenses		393
Waiver of Advisory Fees (Note B)		(108	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(8	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(—	@)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		273
Net Investment Income		1,166
Realized Gain (Loss):
Investments Sold		2,989
Foreign Currency Forward Exchange Contracts		2
Foreign Currency Transactions		—	@
Futures Contracts		(690	)
Swap Agreements		(65	)
Net Realized Gain		2,236
Change in Unrealized Appreciation (Depreciation):
Investments		799
Foreign Currency Forward Exchange Contracts		(2	)
Foreign Currency Translations		—	@
Futures Contracts		104
Swap Agreements		73
Net Change in Unrealized Appreciation (Depreciation)		974
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		3,210
Net Increase in Net Assets Resulting from Operations	$	4,376

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Short Duration Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2016 (unaudited) (000)			Year Ended September 30, 2015 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,166		$	1,904
Net Realized Gain (Loss)		2,236			(804	)
Net Change in Unrealized Appreciation (Depreciation)		974			(1,030	)
Net Increase in Net Assets Resulting from Operations		4,376			70
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1,019	)		(1,478	)
Class A:
Net Investment Income		(158	)		(14	)
Class L:
Net Investment Income		(3	)		(2	)
Class C:
Net Investment Income		(1	)		(—	@)*
Class IS:
Net Investment Income		(—	@)**		—
Total Distributions		(1,181	)		(1,494	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		2,855			6,678
Issued due to a tax-free reorganization		604			—
Distributions Reinvested		1,018			1,477
Redeemed		(9,855	)		(23,006	)
Class A:
Subscribed		2,758			2,156
Issued due to a tax-free reorganization		47,269			—
Distributions Reinvested		157			14
Redeemed		(3,457	)		(1,330	)
Class L:
Subscribed		162			367
Issued due to a tax-free reorganization		112			—
Distributions Reinvested		2			1
Redeemed		(297	)		(124	)
Class C:
Subscribed		32			72	*
Distributions Reinvested		—	@		—	@*
Redeemed		(—	@)		(1	)*
Class IS:
Subscribed		10	**		—
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		41,370			(13,696	)
Total Increase (Decrease) in Net Assets		44,565			(15,120	)
Net Assets:
Beginning of Period		105,079			120,199
End of Period (Including Accumulated Undistributed Net Investment Income of $491 and $506)	$	149,644		$	105,079

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Short Duration Income Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2016 (unaudited) (000)			Year Ended September 30, 2015 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		373			859
Shares Issued due to a tax-free reorganization		79			—
Shares Issued on Distributions Reinvested		133			190
Shares Redeemed		(1,285	)		(2,959	)
Net Decrease in Class I Shares Outstanding		(700	)		(1,910	)
Class A:
Shares Subscribed		360			277
Shares Issued due to a tax-free reorganization		6,163			—
Shares Issued on Distributions Reinvested		21			2
Shares Redeemed		(452	)		(171	)
Net Increase in Class A Shares Outstanding		6,092			108
Class L:
Shares Subscribed		21			47
Shares Issued due to a tax-free reorganization		15			—
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(39	)		(16	)
Net Increase (Decrease) in Class L Shares Outstanding		(3	)		31
Class C:
Shares Subscribed		4			9	*
Shares Issued on Distributions Reinvested		—	@@		—	@@*
Shares Redeemed		(—	@@)		(—	@@)*
Net Increase in Class C Shares Outstanding		4			9
Class IS:
Shares Subscribed		1	**		—

* For the period April 30, 2015 through September 30, 2015.

** For the period January 11, 2016 through March 31, 2016.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Short Duration Income Portfolio

	Class I
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	7.71		$	7.81		$	7.76		$	7.80		$	7.71		$	7.79
Income (Loss) from Investment Operations:
Net Investment Income†		0.07			0.13			0.12			0.11			0.15			0.16
Net Realized and Unrealized Gain (Loss)		0.16			(0.12	)		0.04			(0.03	)		0.11			(0.10	)
Total from Investment Operations		0.23			0.01			0.16			0.08			0.26			0.06
Distributions from and/or in Excess of:
Net Investment Income		(0.08	)		(0.11	)		(0.11	)		(0.12	)		(0.17	)		(0.14	)
Net Asset Value, End of Period	$	7.86		$	7.71		$	7.81		$	7.76		$	7.80		$	7.71
Total Return++		3.00	%**#		0.06	%		2.06	%		1.09	%		3.35	%		0.71	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	99,309		$	102,808		$	119,059		$	122,958		$	145,387		$	167,811
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.43	%+^^*		0.53	%+		0.53	%+		0.71	%+^		0.63	%+		0.59	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.91	%+^^*		1.72	%+		1.49	%+		1.45	%+^		1.92	%+		2.12	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		40	%#		41	%		60	%		66	%		51	%		35	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.62	%*		0.63	%		0.78	%		0.72	%		N/A			N/A
Net Investment Income to Average Net Assets		1.72	%*		1.62	%		1.24	%		1.44	%		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.

** Performance was positively impacted by approximately 2.62% due to the receipt of proceeds from the settlement of a class action suit involving the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had this settlement not occurred, the total return for Class I shares would have been approximately 0.38%.

+ 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."

^ 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.

^^ Effective January 11, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.30% for Class I shares. Prior to January 11, 2016, the maximum ratio was 0.53% for Class I shares.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Short Duration Income Portfolio

	Class A
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	7.72		$	7.83		$	7.77		$	7.80		$	7.71		$	7.79
Income (Loss) from Investment Operations:
Net Investment Income†		0.07			0.11			0.09			0.09			0.13			0.15
Net Realized and Unrealized Gain (Loss)		0.16			(0.14	)		0.05			(0.01	)		0.11			(0.12	)
Total from Investment Operations		0.23			(0.03	)		0.14			0.08			0.24			0.03
Distributions from and/or in Excess of:
Net Investment Income		(0.07	)		(0.08	)		(0.08	)		(0.11	)		(0.15	)		(0.11	)
Net Asset Value, End of Period	$	7.88		$	7.72		$	7.83		$	7.77		$	7.80		$	7.71
Total Return++		2.98	%**#		(0.41	)%		1.78	%		0.84	%		3.22	%		0.45	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	49,794		$	1,761		$	940		$	749		$	145		$	194
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.52	%+^^*		0.88	%+		0.88	%+		0.97	%+^		0.88	%+		0.84	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.91	%+^^*		1.40	%+		1.14	%+		1.15	%+^		1.70	%+		1.87	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		40	%#		41	%		60	%		66	%		51	%		35	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.73	%*		1.22	%		1.10	%		1.00	%		N/A			N/A
Net Investment Income to Average Net Assets		1.70	%*		1.06	%		0.92	%		1.12	%		N/A			N/A

† 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. Effective January 11, 2016, the sales charges on Class A shares were eliminated.

** Performance was positively impacted by approximately 2.61% due to the receipt of proceeds from the settlement of a class action suit involving the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had this settlement not occurred, the total return for Class A shares would have been approximately 0.37%.

^ 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.

^^ Effective January 11, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.55% for Class A shares. Prior to January 11, 2016, the maximum ratio was 0.88% for Class A shares.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Short Duration Income Portfolio

	Class L
	Six Months Ended March 31, 2016			Year Ended September 30,									Period from April 27, 2012^ to
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	7.70		$	7.80		$	7.75		$	7.80		$	7.76
Income (Loss) from Investment Operations:
Net Investment Income†		0.05			0.08			0.06			0.07			0.04
Net Realized and Unrealized Gain (Loss)		0.16			(0.13	)		0.05			(0.03	)		0.04
Total from Investment Operations		0.21			(0.05	)		0.11			0.04			0.08
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		(0.05	)		(0.06	)		(0.09	)		(0.04	)
Net Asset Value, End of Period	$	7.86		$	7.70		$	7.80		$	7.75		$	7.80
Total Return++		2.78	%**#		(0.68	)%		1.38	%		0.48	%		1.06	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	426		$	439		$	200		$	95		$	10
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.03	%+^^^*		1.23	%+		1.23	%+		1.24	%+^^		1.21	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.32	%+^^^*		1.05	%+		0.79	%+		0.85	%+^^		1.14	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§*
Portfolio Turnover Rate		40	%#		41	%		60	%		66	%		51	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.51	%*		1.80	%		3.48	%		1.34	%		N/A
Net Investment Income (Loss) to Average Net Assets		0.84	%*		0.48	%		(1.46	)%		0.75	%		N/A

^ Commencement of Offering.

† 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 1.23% for Class L shares.

^^^ Effective January 11, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.80% for Class L shares. Prior to January 11, 2016, the maximum ratio was 1.23% for Class L shares.

§ 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

Semi-Annual Report — March 31, 2016

Financial Highlights

Short Duration Income Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	7.69		$	7.78
Income (Loss) from Investment Operations:
Net Investment Income†		0.03			0.02
Net Realized and Unrealized Gain (Loss)		0.16			(0.09	)
Total from Investment Operations		0.19			(0.07	)
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.02	)
Net Asset Value, End of Period	$	7.84		$	7.69
Total Return++		2.49	%**#		(0.92	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	105		$	71
Ratios of Expenses to Average Net Assets ⁽¹⁾		1.48	%+^^*		1.63	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		0.85	%+^^*		0.73	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§
Portfolio Turnover Rate		40	%#		41	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		3.46	%*		6.73	%*
Net Investment Loss to Average Net Assets		(1.13	)%*		(4.37	)%*

^ Commencement of Offering.

† 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.

^^ Effective January 11, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.30% for Class C shares. Prior to January 11, 2016, the maximum ratio was 1.63% for Class C 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

Semi-Annual Report — March 31, 2016

Financial Highlights

Short Duration Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Period from January 11, 2016^ to March 31, 2016 (unaudited)
Net Asset Value, Beginning of Period	$	7.65
Income from Investment Operations:
Net Investment Income†		0.04
Net Realized and Unrealized Gain		0.20
Total from Investment Operations		0.24
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)
Net Asset Value, End of Period	$	7.86
Total Return++		3.09	%**#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10
Ratios of Expenses to Average Net Assets ⁽¹⁾		0.25	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.27	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*
Portfolio Turnover Rate		40	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		14.33	%*
Net Investment Loss to Average Net Assets		(11.81	)%*

^ Commencement of Offering.

† 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.
19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("MSIFT" or the "Fund'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Fund is comprised of eight 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 Short Duration Income Portfolio (name changed on January 11, 2016, formerly Limited Duration Portfolio). The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers five classes of shares — Class I, Class A, Class L, Class C and Class IS.

The Portfolio has suspended offering Class L and Class C shares to all investors. Class L and Class C shareholders of the Portfolio do not have the option of purchasing additional Class L and Class C shares, respectively. However, existing Class L and Class C shareholders may invest through reinvestment of dividends and distributions.

On January 11, 2016, the Portfolio commenced offering Class IS shares.

On January 11, 2016, the Portfolio acquired the net assets of Morgan Stanley Limited Duration U.S. Government Trust ("Limited Duration U.S. Government Trust"), an open-end investment company, based on the respective valuations as of the close of business on January 8, 2016, pursuant to a Plan of Reorganization approved by the shareholders of Limited Duration U.S. Government Trust on June 9, 2015 ("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 78,397 Class I shares of the Portfolio at a net asset value of $7.65 for 68,223 Class I shares of Limited Duration U.S. Government Trust; 528 Class I shares of the Portfolio at a net asset value of $7.65 for 460 Class Advisor shares of Limited Duration U.S. Government Trust; 6,162,897 Class A shares of the Portfolio at a net asset value of $7.67 for 5,378,737 Class Advisor shares of Limited Duration U.S. Government Trust; 14,702 Class L shares of the Portfolio at a net asset value of $7.65 for 12,798 Class Advisor shares of Limited Duration U.S. Government Trust. The net assets of Limited Duration U.S. Government Trust before the Reorganization were approximately $47,986,000, including unrealized appreciation of

approximately $462,000 at January 8, 2016. The investment portfolio of Limited Duration U.S. Government Trust, with a fair value of approximately $47,575,000 and identified cost of approximately $47,113,000 on January 8, 2016, 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 Limited Duration U.S. Government Trust 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 $100,541,000. Immediately after the merger, the net assets of the Portfolio were approximately $148,527,000.

Upon closing of the Reorganization, shareholders of Limited Duration U.S. Government Trust received shares of the Portfolio as follows:

Limited Duration U.S. Government Trust				Short Duration Income Portfolio
Class I				Class I
Class Advisor				Class I
Class Advisor				Class A
Class Advisor				Class L

Assuming the acquisition had been completed on October 1, 2015, the beginning of the annual reporting period of the Portfolio, the Portfolio's pro forma results of operations for the period ended March 31, 2016, are as follows:

Net investment income⁽¹⁾	$	2,579,000
Net realized gain and unrealized gain⁽²⁾	$	2,745,000
Net increase in net assets resulting from operations	$	5,324,000

(1) Approximately $1,166,000 as reported, plus approximately $898,000 Limited Duration U.S. Government Trust prior to Reorganization, plus approximately $515,000 of estimated pro-forma eliminated expenses.

(2) Approximately $3,210,000 as reported, plus approximately $(465,000) Limited Duration U.S. Government Trust prior to Reorganization.

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 Limited Duration U.S. Government Trust that have been included in the Portfolio's Statement of Operations since January 11, 2016.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 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 ("NAV") 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.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees may appoint others, such as the Fund's Adviser or a valuation committee, to assist the Trustees in determining fair value and to make the actual calculations pursuant to the fair valuation methodologies previously approved by the Trustees. Under procedures approved by the Trustees, the Fund's Adviser has formed a Valuation Committee whose members are approved by the Trustees. The Valuation Committee provides administration and oversight of the Fund's valuation policies and procedures, which are reviewed at least annually by the Trustees. These procedures allow the Fund to utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value 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 March 31, 2016.

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	$	—		$	10,780		$	—	$	10,780
Agency Bond — Consumer Discretionary (U.S. Government Guaranteed)		—			666			—		666
Agency Bonds — Sovereign (U.S. Government Guaranteed)		—			2,700			—		2,700
Agency Fixed Rate Mortgages		—			10,706			—		10,706
Asset-Backed Securities		—			13,100			—		13,100
Collateralized Mortgage Obligations — Agency Collateral Series		—			10,187			—		10,187
Commercial Mortgage-Backed Securities		—			1,789			—		1,789
Corporate Bonds		—			85,666			—		85,666
Mortgages — Other		—			3,061			—		3,061
Sovereign		—			1,213			—		1,213
U.S. Agency Security		—			2,329			—		2,329
Total Fixed Income Securities		—			142,197			—		142,197
Short-Term Investments
Investment Company		5,689			—			—		5,689
U.S. Treasury Security		—			1,350			—		1,350
Total Short-Term Investments		5,689			1,350			—		7,039
Foreign Currency Forward Exchange Contract		—			—	@		—		—	@
Futures Contracts		35			—			—		35
Total Assets		5,724			143,547			—		149,271
Liabilities:
Foreign Currency Forward Exchange Contract		—			(—	@)		—		(—	@)
Futures Contract		(123	)		—			—		(123	)
Total Liabilities		(123	)		(—	@)		—		(123	)
Total	$	5,601		$	143,547		$	—	$	149,148

@ Value is less than $500.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

3. Foreign Currency Translation and Foreign Investments: The books and records of the Portfolio are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

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

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

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

component of unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations for the period is reflected in the Statement of Operations.

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

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

4. Derivatives: The Portfolio may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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:

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. 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 may 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.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 swap dealer, bank or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis.

the 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.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap agreement and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap agreement and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

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.

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 instruments are accounted for and their effects on the Portfolio's financial position and results of operations.

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 31, 2016.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contract

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contract

Currency Risk

—

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(a)

Total

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contract

Unrealized Depreciation on
Foreign Currency Forward
Exchange Contract

Currency Risk

(—

Futures Contract

Variation Margin on
Futures Contract

Interest Rate Risk

(123

)(a)

Total

(123

)

@ Amount is less than $500.

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

The following tables set forth by primary risk exposure the Portfolio's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 31, 2016 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	2
Interest Rate Risk	Futures Contracts		(690	)
Credit Risk	Swap Agreements		(15	)
Interest Rate Risk	Swap Agreements		(50	)
	Total	$	(753	)
Change in Unrealized Appreciation (Depreciation)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(2	)
Interest Rate Risk	Futures Contracts		104
Credit Risk	Swap Agreements		22
Interest Rate Risk	Swap Agreements		51
	Total	$	175

At March 31, 2016, 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	$	—	@	$	(—	@)

@ Amount is less than $500.

(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

Semi-Annual Report — March 31, 2016

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

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 March 31, 2016.

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)

HSBC Bank PLC

—

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)

UBS AG

—

@ Amount is less than $500.

For the six months ended March 31, 2016, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	669,000
Futures Contracts:
Average monthly original value	$	70,229,000
Swap Agreements:
Average monthly notional amount	$	323,000

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

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

7. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, 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. Effective January 11, 2016, the advisory fees were reduced to 0.20% of the average daily net assets of the Portfolio.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

will not exceed 0.53% for Class I shares, 0.88% for Class A shares, 1.23% for Class L shares and 1.63% for Class C shares. Effective January 11, 2016, pursuant to the Reorganization, the Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses will not exceed 0.30% for Class I shares, 0.55% for Class A shares, 0.80% for Class L shares, 1.30% for Class C shares and 0.25% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least two years from the date of the Reorganization or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2016, approximately $108,000 of advisory fees were waived and approximately $11,000 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.

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 Fund has adopted a Distribution and Shareholder Services Plan with respect to Class C 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 0.75% 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 C 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, Class L and Class C 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 six months ended March 31, 2016, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $29,045,000 and $25,619,000, respectively. For the six months ended March 31, 2016, purchases and sales of long-term U.S. Government securities were approximately $18,205,000 and $22,795,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 31, 2016, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Liquidity Funds.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	750			$	42,216			$	37,277			$	3			$	5,689

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 NAV 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, 2015, 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 2015 and 2014 was as follows:

2015 Distributions Paid From: Ordinary Income (000)				2014 Distributions Paid From: Ordinary Income (000)
$	1,494			$	1,703

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

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

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, basis adjustments for swap transactions, paydown adjustments and an expired capital loss carryforward, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Gain (000)				Paid-in- Capital (000)
$	(172	)		$	7,240			$	(7,068	)

At September 30, 2015, 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)
$	490			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused short term and long term capital losses of approximately $485,000 and $416,000, respectively, that do not have an expiration date.

In addition, at September 30, 2015, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	265	September 30, 2016
	200,864	September 30, 2017
	33,504	September 30, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Capital loss carryforwards of approximately $7,068,000 expired during the year ended September 30, 2015.

To the extent that capital loss carryforwards are used to offset any future capital gains realized during the carryover period as provided by U.S. Federal income tax regulations, no capital gains tax liability will be incurred by the Portfolio for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Other: At March 31, 2016, the Portfolio had 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 91.7%.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

Trustee and Officer Information (unaudited)

Trustees

Frank L. Bowman
Kathleen A. Dennis
Nancy C. Everett
Jakki L. Haussler
James F. Higgins
Dr. Manuel H. Johnson
Joseph J. Kearns
Michael F. Klein
Michael E. Nugent, Chair of the Board
W. Allen Reed
Fergus Reid

Officers

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its semi-annual and the annual reports within 60 days of the end of the fund's second and fourth fiscal quarters. The semi-annual and annual reports are filed electronically with the Securities and Exchange Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. 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.

(This Page has been left blank intentionally.)

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

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

IFTLDSAN
1481281 EXP. 05.31.17

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Semi-Annual Report

March 31, 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					12
Statement of Operations					14
Statements of Changes in Net Assets					15
Financial Highlights					16
Notes to Financial Statements					20
U.S. Privacy Policy					32
Trustee and Officer Information					35

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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 March 31, 2016 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 10/1/15		Actual Ending Account Value 3/31/16		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	$	1,066.00	$	1,022.65	$	2.43	$	2.38		0.47	%
Core Plus Fixed Income Portfolio Class A		1,000.00		1,063.90		1,020.95		4.18		4.09		0.81
Core Plus Fixed Income Portfolio Class L		1,000.00		1,062.70		1,019.70		5.47		5.35		1.06
Core Plus Fixed Income Portfolio Class C		1,000.00		1,059.60		1,017.25		7.98		7.82		1.55

** Annualized.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (94.4%)
Agency Adjustable Rate Mortgage (0.2%)
Federal Home Loan Mortgage Corporation, Conventional Pool 2.58%, 7/1/45	$	284	$	291
Agency Fixed Rate Mortgages (21.0%)
Federal Home Loan Mortgage Corporation, April TBA:
3.00%, 4/1/46 (a)		570		584
3.50%, 4/1/31 - 4/1/46 (a)		5,930		6,209
Gold Pools:
3.50%, 1/1/44 - 2/1/45		2,579		2,710
4.00%, 6/1/44 - 10/1/44		1,452		1,550
5.41%, 7/1/37 - 8/1/37		55		60
5.44%, 1/1/37 - 6/1/38		133		149
5.46%, 5/1/37 - 4/1/38		128		142
5.48%, 8/1/37 - 10/1/37		146		162
5.50%, 8/1/37 - 4/1/38		162		180
5.52%, 9/1/37 - 1/1/38		29		33
5.62%, 12/1/36 - 12/1/37		103		115
6.00%, 10/1/36 - 8/1/38		427		484
6.50%, 12/1/25 - 8/1/33		203		233
7.00%, 6/1/28 - 11/1/31		57		63
Federal National Mortgage Association, April TBA:
2.50%, 4/1/31 (a)		300		308
3.00%, 4/1/31 (a)		590		616
4.00%, 4/1/46 (a)		2,078		2,220
Conventional Pools:
3.00%, 5/1/30 - 4/1/45		1,865		1,929
3.50%, 4/1/29 - 8/1/45		1,453		1,534
4.00%, 11/1/41 - 1/1/46		6,263		6,725
4.50%, 3/1/41 - 11/1/44		2,728		3,023
5.00%, 3/1/41		421		469
5.50%, 6/1/35 - 1/1/37		125		142
5.62%, 12/1/36		35		39
6.50%, 4/1/24 - 1/1/34		1,736		1,998
7.00%, 11/1/17 - 1/1/34		324		351
9.50%, 4/1/30		245		284
Government National Mortgage Association, April TBA:
3.50%, 4/20/46 (a)		1,761		1,861
Various Pools:
3.50%, 12/15/43		790		839
4.00%, 8/20/41 - 3/20/43		1,049		1,129
5.48%, 9/20/37		10		10
5.56%, 7/20/37		22		24
				36,175
Asset-Backed Securities (5.0%)
American Homes 4 Rent
6.07%, 10/17/45 (b)		500		501
ContiMortgage Home Equity Loan Trust
8.10%, 8/15/25		26		21

	Face Amount (000)			Value (000)
CVS Pass-Through Trust
6.04%, 12/10/28	$	408		$	458
Invitation Homes Trust,
4.44%, 9/17/31 (b)(c)		1,000			942
5.18%, 8/17/32 (b)(c)		997			949
Mid-State Trust IV
8.33%, 4/1/30		10			11
Nationstar HECM Loan Trust
4.36%, 2/25/26 (b)		650			651
RMAT LLC
4.83%, 6/25/35 (b)		890			877
Silver Bay Realty Trust
3.98%, 9/17/31 (b)(c)		700			641
Skopos Auto Receivables Trust,
3.10%, 12/15/23 (b)		154			153
3.55%, 2/15/20 (b)		167			167
U-Haul S Fleet LLC
4.90%, 10/25/23 (b)		760			776
VOLT NPL X LLC
4.75%, 10/26/54 (b)		493			483
VOLT XIX LLC
5.00%, 4/25/55 (b)		300			295
VOLT XXII LLC
4.25%, 2/25/55 (b)		299			288
VOLT XXX LLC
4.75%, 10/25/57 (b)		399			390
VOLT XXXI LLC
4.50%, 2/25/55 (b)		399			389
VOLT XXXIII LLC
4.25%, 3/25/55 (b)		694			671
					8,663
Collateralized Mortgage Obligations — Agency Collateral Series (2.9%)
Federal Home Loan Mortgage Corporation,
3.60%, 6/25/48 (b)(c)		483			367
3.95%, 10/25/48 (b)(c)		750			568
IO REMIC
5.56%, 11/15/43 (c)		2,023			304
5.61%, 4/15/39 (c)		1,987			256
IO STRIPS
7.50%, 12/1/29		48			11
PAC REMIC
9.50%, 4/15/20		—	@		—	@
Federal National Mortgage Association, IO
5.95%, 9/25/20 (c)		3,851			662
IO PAC REMIC
8.00%, 9/18/27		195			34
IO REMIC
6.00%, 7/25/33		136			30
IO STRIPS
6.50%, 9/25/29 - 12/25/29		750			150
8.00%, 4/25/24		192			28
8.50%, 10/25/25		66			16
9.00%, 11/25/26		61			14

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligations — Agency Collateral Series (cont'd)
REMIC
7.00%, 9/25/32	$	341	$	394
8.72%, 10/25/41 (d)		101		102
61.84%, 9/25/20 (d)		1		1
Government National Mortgage Association, IO
3.50%, 5/20/43		1,961		387
5.00%, 2/16/41		428		92
5.61%, 11/16/40 (c)		2,631		520
5.66%, 7/16/33 (c)		3,275		297
5.80%, 3/20/43 (c)		1,018		170
6.07%, 5/20/40 (c)		1,225		216
IO PAC
5.72%, 10/20/41 (c)		3,779		352
				4,971
Commercial Mortgage-Backed Securities (7.6%)
Citigroup Commercial Mortgage Trust,
3.37%, 9/15/27 (b)(c)		800		725
IO
0.91%, 11/10/48 (c)		2,835		165
0.99%, 9/10/58 (c)		9,857		662
COMM Mortgage Trust,
4.91%, 4/10/47 (b)(c)		883		723
5.05%, 8/10/46 (b)(c)		800		780
IO
0.31%, 7/10/45 (c)		15,363		133
1.01%, 10/10/47 (c)		4,674		231
1.28%, 7/15/47 (c)		4,219		269
Commercial Mortgage Pass-Through Certificates
4.61%, 2/10/47 (b)(c)		575		474
CSMC Trust
4.59%, 3/15/17 (b)(c)		200		194
GS Mortgage Securities Trust,
4.77%, 8/10/46 (b)(c)		500		448
IO
0.88%, 9/10/47 (c)		5,911		292
1.38%, 10/10/48 (c)		5,432		496
HILT Mortgage Trust
4.19%, 7/15/29 (b)(c)		600		522
JP Morgan Chase Commercial Mortgage Securities Trust,
4.57%, 7/15/47 (b)(c)		1,135		896
5.46%, 12/12/43		600		581
IO
0.58%, 4/15/46 (c)		6,956		240
1.15%, 7/15/47 (c)		10,601		577
JPMBB Commercial Mortgage Securities Trust,
4.68%, 4/15/47 (b)(c)		775		623
IO
1.11%, 8/15/47 (c)		4,540		300
LB-UBS Commercial Mortgage Trust
6.24%, 9/15/45 (c)		550		539

	Face Amount (000)		Value (000)
Wells Fargo Commercial Mortgage Trust,
3.94%, 8/15/50 (b)	$	945	$	709
4.50%, 9/15/58 (b)(c)		471		361
WF-RBS Commercial Mortgage Trust,
3.80%, 11/15/47 (b)(c)		950		694
3.99%, 5/15/47 (b)		580		422
4.14%, 5/15/45 (b)(c)		425		372
4.98%, 9/15/46 (b)(c)		805		744
				13,172
Corporate Bonds (35.3%)
Finance (15.5%)
ABN Amro Bank N.V.
4.25%, 2/2/17 (b)		600		613
ACE INA Holdings, Inc.
3.35%, 5/15/24		400		419
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust
3.75%, 5/15/19		380		379
Alexandria Real Estate Equities, Inc.
4.60%, 4/1/22		275		297
Ally Financial, Inc.
3.25%, 2/13/18		10		10
American Campus Communities Operating Partnership LP
3.75%, 4/15/23		250		253
American International Group, Inc.
4.88%, 6/1/22		275		303
Banco de Credito del Peru
6.13%, 4/24/27 (b)(c)		400		428
Bank of America Corp., MTN
4.00%, 1/22/25		830		833
4.20%, 8/26/24		225		230
4.25%, 10/22/26		113		115
5.00%, 1/21/44		180		199
Bank of New York Mellon Corp. (The), MTN
3.65%, 2/4/24		400		424
BNP Paribas SA,
5.00%, 1/15/21		175		196
MTN
4.25%, 10/15/24 (e)		200		203
Boston Properties LP
3.80%, 2/1/24		175		184
BPCE SA
5.15%, 7/21/24 (b)		600		614
Brookfield Asset Management, Inc.
5.80%, 4/25/17		235		245
Capital One Financial Corp.
2.45%, 4/24/19		150		152
Citigroup, Inc.,
5.50%, 9/13/25		325		356
6.68%, 9/13/43		120		146
8.13%, 7/15/39		175		260

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
CNOOC Finance 2013 Ltd.
3.00%, 5/9/23 (e)	$	540	$	524
Cooperatieve Rabobank UA
3.95%, 11/9/22		650		667
Credit Agricole SA,
3.88%, 4/15/24 (b)(e)		500		531
7.88%, 1/23/24 (b)(c)(f)		200		190
Credit Suisse AG
6.50%, 8/8/23 (b)		425		459
Discover Bank
7.00%, 4/15/20		250		285
Discover Financial Services
3.95%, 11/6/24		300		298
Extra Space Storage LP
3.13%, 10/1/35 (b)		375		429
Five Corners Funding Trust
4.42%, 11/15/23 (b)		500		525
GE Capital International Funding Co.
4.42%, 11/15/35 (b)		215		234
Genworth Holdings, Inc.
7.20%, 2/15/21		200		173
Goldman Sachs Group, Inc. (The)
6.75%, 10/1/37		490		587
Goodman Funding Pty Ltd.
6.38%, 4/15/21 (b)		425		492
Hartford Financial Services Group, Inc. (The)
5.50%, 3/30/20		295		328
HBOS PLC, Series G
6.75%, 5/21/18 (b)		813		881
Healthcare Trust of America Holdings LP
3.70%, 4/15/23 (e)		350		345
HSBC Finance Corp.
6.68%, 1/15/21		820		942
HSBC Holdings PLC,
4.25%, 3/14/24		200		202
6.38%, 9/17/24 (c)(e)(f)		200		186
HSBC USA, Inc.
3.50%, 6/23/24 (e)		225		229
ING Bank N.V.
5.80%, 9/25/23 (b)		520		567
ING Groep N.V.
6.00%, 4/16/20 (c)(e)(f)		200		188
Intesa Sanpaolo SpA
5.25%, 1/12/24		410		443
Jefferies Finance LLC/JFIN Co-Issuer Corp.
7.38%, 4/1/20 (b)		380		331
JPMorgan Chase & Co.,
3.13%, 1/23/25		950		954
4.63%, 5/10/21		380		422
LeasePlan Corp. N.V.
2.88%, 1/22/19 (b)		475		474

	Face Amount (000)		Value (000)
Liberty Mutual Group, Inc.
4.85%, 8/1/44 (b)	$	150	$	144
Macquarie Bank Ltd.
6.63%, 4/7/21 (b)(e)		490		558
Nationwide Building Society,
3.90%, 7/21/25 (b)		200		211
6.25%, 2/25/20 (b)		645		736
PNC Financial Services Group, Inc. (The)
3.90%, 4/29/24		210		221
QBE Capital Funding III Ltd.
7.25%, 5/24/41 (b)(c)		550		596
Realty Income Corp.
3.25%, 10/15/22		400		395
Santander UK Group Holdings PLC,
2.88%, 10/16/20		375		374
3.13%, 1/8/21		350		353
Skandinaviska Enskilda Banken AB
2.63%, 11/17/20 (b)		500		506
Standard Chartered PLC,
3.05%, 1/15/21 (b)		325		327
3.95%, 1/11/23 (b)(e)		310		298
TD Ameritrade Holding Corp.
3.63%, 4/1/25		500		524
UBS Group Funding Co.
2.95%, 9/24/20 (b)(e)		525		527
UnitedHealth Group, Inc.
2.88%, 3/15/23		800		822
Visa, Inc.
3.15%, 12/14/25		425		444
WEA Finance LLC/Westfield UK & Europe Finance PLC
3.25%, 10/5/20 (b)(e)		450		460
Wells Fargo & Co.,
4.13%, 8/15/23		170		182
Series M
3.45%, 2/13/23		320		328
				26,751
Industrials (18.4%)
21st Century Fox America, Inc.
4.75%, 9/15/44		275		286
Actavis Funding SCS,
3.80%, 3/15/25		95		99
4.75%, 3/15/45		215		227
Albea Beauty Holdings SA
8.38%, 11/1/19 (b)		250		264
Altria Group, Inc.
5.38%, 1/31/44		285		350
Amazon.com, Inc.
3.80%, 12/5/24		475		521
Anadarko Petroleum Corp.,
5.55%, 3/15/26		275		278
6.45%, 9/15/36		250		250

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Anheuser-Busch InBev Finance, Inc.,
3.70%, 2/1/24 (e)	$	250	$	268
4.90%, 2/1/46		425		476
Apple, Inc.
4.45%, 5/6/44		300		317
AT&T, Inc.,
5.55%, 8/15/41		525		566
6.30%, 1/15/38		100		115
Barrick Gold Corp.
4.10%, 5/1/23		255		249
Baxalta, Inc.
4.00%, 6/23/25 (b)		625		636
BHP Billiton Finance USA Ltd.
5.00%, 9/30/43		150		153
Boston Scientific Corp.
3.85%, 5/15/25		425		442
BP Capital Markets PLC,
3.25%, 5/6/22		275		283
3.51%, 3/17/25 (e)		375		381
CBS Corp.
4.60%, 1/15/45		175		165
CCO Safari II LLC
6.48%, 10/23/45 (b)		300		335
Celgene Corp.
3.88%, 8/15/25 (e)		650		685
CEVA Group PLC
7.00%, 3/1/21 (b)		370		297
CNH Industrial Capital LLC
4.38%, 11/6/20 (e)		300		296
Coca-Cola Co.
3.20%, 11/1/23		375		403
Comcast Corp.
4.60%, 8/15/45		230		256
DCP Midstream LLC
5.35%, 3/15/20 (b)		169		146
Eldorado Gold Corp.
6.13%, 12/15/20 (b)		380		349
Ensco PLC
5.75%, 10/1/44		225		112
Experian Finance PLC
2.38%, 6/15/17 (b)		635		635
Exxon Mobil Corp.
4.11%, 3/1/46		300		319
Ford Motor Credit Co., LLC
3.20%, 1/15/21		400		409
General Motors Co.
6.60%, 4/1/36		450		497
Goldcorp, Inc.
3.70%, 3/15/23 (e)		293		287
Harley-Davidson Funding Corp.
6.80%, 6/15/18 (b)(e)		630		696

	Face Amount (000)		Value (000)
HCA, Inc.
4.75%, 5/1/23	$	445	$	454
Heathrow Funding Ltd.
4.88%, 7/15/21 (b)		525		570
Hewlett Packard Enterprise Co.
4.90%, 10/15/25 (b)		525		541
Hilcorp Energy I LP/Hilcorp Finance Co.
5.75%, 10/1/25 (b)		315		273
Home Depot, Inc.
5.88%, 12/16/36		225		293
Illumina, Inc.
0.00%, 6/15/19 (e)		328		342
Intel Corp.
2.95%, 12/15/35 (e)		356		453
Kinder Morgan, Inc.
4.30%, 6/1/25 (e)		650		619
Lockheed Martin Corp.
3.10%, 1/15/23		725		753
Lundin Mining Corp.
7.50%, 11/1/20 (b)		502		482
LyondellBasell Industries N.V.
4.63%, 2/26/55		300		269
Mallinckrodt International Finance SA/Mallinckrodt CB LLC
5.50%, 4/15/25 (b)		500		444
MasTec, Inc.
4.88%, 3/15/23		515		444
McDonald's Corp., MTN
4.60%, 5/26/45		325		343
Medtronic, Inc.
4.63%, 3/15/45		325		365
Motorola Solutions, Inc.
4.00%, 9/1/24 (e)		300		277
NBC Universal Media LLC
5.95%, 4/1/41		150		192
NetApp, Inc.
2.00%, 12/15/17		200		200
Netflix, Inc.
5.50%, 2/15/22		255		268
Noble Energy, Inc.,
3.90%, 11/15/24		225		212
5.05%, 11/15/44 (e)		200		171
NOVA Chemicals Corp.
5.25%, 8/1/23 (b)		463		454
Novartis Capital Corp.
4.40%, 5/6/44		250		287
Nuance Communications, Inc.
2.75%, 11/1/31		286		287
Omnicom Group, Inc.
3.65%, 11/1/24		230		238
ON Semiconductor Corp., Series B
2.63%, 12/15/26		290		315

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Ooredoo International Finance Ltd.
3.25%, 2/21/23 (b)	$	450	$	448
Oracle Corp.
2.95%, 5/15/25		131		134
PepsiCo, Inc.
3.60%, 3/1/24		475		521
Philip Morris International, Inc.
2.50%, 8/22/22		495		510
Phillips 66 Partners LP
4.68%, 2/15/45		150		125
QVC, Inc.
4.38%, 3/15/23		400		392
Rowan Cos., Inc.
5.85%, 1/15/44		175		102
SanDisk Corp.
0.50%, 10/15/20		575		600
Shell International Finance BV
3.25%, 5/11/25		400		404
SK Telecom Co., Ltd.
2.13%, 5/1/18 (b)		200		201
Southern Copper Corp.
5.25%, 11/8/42		300		248
Spectra Energy Capital LLC
3.30%, 3/15/23		475		421
Telstra Corp., Ltd.
3.13%, 4/7/25 (b)(e)		240		242
Tiffany & Co.
4.90%, 10/1/44		80		75
Tyco International Finance SA
3.90%, 2/14/26		350		364
United Airlines Pass-Through Trust, Series A
4.00%, 4/11/26		655		677
United Rentals North America, Inc.
5.75%, 11/15/24		370		372
United Technologies Corp.
4.50%, 6/1/42		165		179
Verizon Communications, Inc.
4.67%, 3/15/55		775		747
Volkswagen Group of America Finance LLC
2.40%, 5/22/20 (b)		525		515
Wal-Mart Stores, Inc.
5.25%, 9/1/35		440		546
Wesfarmers Ltd.
2.98%, 5/18/16 (b)		390		391
Whole Foods Market, Inc.
5.20%, 12/3/25 (b)		475		499
Williams Partners LP/ACMP Finance Corp.
4.88%, 5/15/23		175		152
Yahoo!, Inc.
0.00%, 12/1/18		550		546

	Face Amount (000)		Value (000)
ZF North America Capital, Inc.
4.50%, 4/29/22 (b)	$	475	$	486
Zimmer Biomet Holdings, Inc.
5.75%, 11/30/39		220		255
				31,746
Utilities (1.4%)
Enable Midstream Partners LP
3.90%, 5/15/24		200		158
Exelon Generation Co., LLC
6.25%, 10/1/39		445		461
Jersey Central Power & Light Co.
4.70%, 4/1/24 (b)		700		752
Petroleos Mexicanos
6.88%, 8/4/26 (b)(e)		675		732
PPL WEM Ltd./Western Power Distribution Ltd.
3.90%, 5/1/16 (b)		375		376
				2,479
				60,976
Mortgages — Other (9.5%)
Alternative Loan Trust,
0.62%, 5/25/47 (c)		240		190
Banc of America Alternative Loan Trust,
1.09%, 7/25/46 (c)		353		235
5.50%, 10/25/35		1,574		1,426
5.86%, 10/25/36		785		492
6.00%, 4/25/36		226		229
Banc of America Funding Trust,
5.25%, 7/25/37		434		434
ChaseFlex Trust,
6.00%, 2/25/37		1,161		807
Fannie Mae Connecticut Avenue Securities,
4.44%, 5/25/25 (c)		671		653
5.34%, 11/25/24 (c)		698		705
5.44%, 7/25/25 (c)		500		501
First Horizon Alternative Mortgage Securities Trust,
6.25%, 8/25/36		637		491
Freddie Mac Structured Agency Credit Risk Debt Notes,
3.74%, 10/25/27 (c)		400		380
4.19%, 9/25/24 (c)		602		558
4.44%, 8/25/24 (c)		312		303
4.69%, 11/25/23 (c)		700		692
4.99%, 10/25/24 (c)		948		943
Freddie Mac Whole Loan Securities Trust,
3.50%, 5/25/45 - 9/25/45		1,418		1,471
3.88%, 5/25/45 (b)(c)		249		216
4.00%, 5/25/45		187		195
Grifonas Finance PLC,
0.15%, 8/28/39 (c)	EUR	571		453
HarborView Mortgage Loan Trust,
0.62%, 1/19/38 (c)	$	292		236
IM Pastor 3 FTH,
0.01%, 3/22/43 (c)	EUR	582		501

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (cont'd)
Impac CMB Trust,
1.17%, 4/25/35 (c)	$	295	$	232
JP Morgan Mortgage Trust,
2.80%, 6/25/37 (c)		279		257
6.00%, 6/25/37		218		211
Lehman Mortgage Trust,
5.50%, 11/25/35 - 2/25/36		1,239		1,166
6.50%, 9/25/37		1,498		1,129
RALI Trust,
5.50%, 12/25/34		967		953
6.00%, 11/25/36		346		278
				16,337
Municipal Bonds (1.4%)
City of Chicago, IL, O'Hare International Airport Revenue
6.40%, 1/1/40		255		337
City of New York, NY, Series G-1
5.97%, 3/1/36		270		349
Illinois State Toll Highway Authority, Highway Revenue, Build America Bonds
6.18%, 1/1/34		477		624
Municipal Electric Authority of Georgia,
6.64%, 4/1/57		283		351
6.66%, 4/1/57		320		384
New York City, NY, Transitional Finance Authority Future Tax Secured Revenue
5.27%, 5/1/27		320		379
				2,424
Sovereign (8.6%)
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/25	BRL	3,450		778
Cyprus Government International Bond,
3.88%, 5/6/22	EUR	1,525		1,776
Hungary Government International Bond,
5.75%, 11/22/23	$	1,348		1,538
Indonesia Government International Bond,
5.88%, 1/15/24		1,150		1,294
Italy Buoni Poliennali Del Tesoro,
2.35%, 9/15/24 (b)	EUR	861		1,146
Mexican Bonos,
10.00%, 12/5/24	MXN	23,000		1,712
New Zealand Government Bond,
5.50%, 4/15/23	NZD	2,000		1,646
Peruvian Government International Bond,
7.35%, 7/21/25	$	1,300		1,713
Petroleos de Venezuela SA,
6.00%, 11/15/26		550		171
Petroleos Mexicanos,
6.38%, 1/23/45		225		210

	Face Amount (000)		Value (000)
Poland Government Bond,
2.50%, 7/25/26	PLN	3,875	$	1,009
Romania Government Bond,
4.75%, 2/24/25	RON	4,795		1,359
South Africa Government Bond,
8.00%, 1/31/30	ZAR	8,178		490
				14,842
U.S. Treasury Security (2.9%)
U.S. Treasury Inflation Indexed Bond
0.25%, 1/15/25		4,996		5,042
Total Fixed Income Securities (Cost $163,160)				162,893
	Shares
Short-Term Investments (14.6%)
Securities held as Collateral on Loaned Securities (2.0%)
Investment Company (1.7%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		2,888,955		2,889
	Face Amount (000)
Repurchase Agreements (0.3%)
Barclays Capital, Inc., (0.30%, dated 3/31/16, due 4/1/16; proceeds $211; fully collateralized by a U.S. Government obligation; 4.50% due 8/15/39; valued at $215)	$	211		211
Merrill Lynch & Co., Inc., (0.30%, dated 3/31/16, due 4/1/16; proceeds $295; fully collateralized by a U.S. Government agency security; 4.00% due 9/20/45; valued at $301)		295		295
				506
Total Securities held as Collateral on Loaned Securities (Cost $3,395)				3,395
	Shares
Investment Company (11.7%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $20,211)		20,211,134		20,211
	Face Amount (000)
U.S. Treasury Security (0.9%)
U.S. Treasury Bill
0.51%, 6/9/16 (g)(h) (Cost $1,486)	$	1,488		1,488
Total Short-Term Investments (Cost $25,092)				25,094
Total Investments (109.0%) (Cost $188,252) Including $8,570 of Securities Loaned (i)(j)				187,987
Liabilities in Excess of Other Assets (–9.0%)				(15,459	)
Net Assets (100.0%)			$	172,528

(a) Security is subject to delayed delivery.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

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

(c) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 31, 2016.

(d) Inverse Floating Rate Security — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at March 31, 2016.

(e) All or a portion of this security was on loan at March 31, 2016.

(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 March 31, 2016.

(g) Rate shown is the yield to maturity at March 31, 2016.

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

(i) 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.

(j) At March 31, 2016, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $4,957,000 and the aggregate gross unrealized depreciation is approximately $5,222,000 resulting in net unrealized depreciation of approximately $265,000.

IO Interest Only.

MTN Medium Term Note.

PAC Planned Amortization Class.

REMIC Real Estate Mortgage Investment Conduit.

STRIPS Separate Trading of Registered Interest and Principal of Securities.

TBA To Be Announced.

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at March 31, 2016:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Citibank NA	EUR	438	$	476	4/5/16	$	(23	)
Citibank NA	$	20	EUR	18	4/5/16		—	@
HSBC Bank PLC	BRL	868	$	238	4/5/16		(4	)
HSBC Bank PLC	EUR	3,902	$	4,235	4/5/16		(204	)
HSBC Bank PLC	MXN	29,080	$	1,617	4/5/16		(66	)
HSBC Bank PLC	SEK	15	$	2	4/5/16		(—	@)
HSBC Bank PLC	$	16	AUD	23	4/5/16		1
JPMorgan Chase Bank NA	CAD	6	$	4	4/5/16		(—	@)
JPMorgan Chase Bank NA	PLN	86	$	22	4/5/16		(1	)
JPMorgan Chase Bank NA	RON	5,094	$	1,236	4/5/16		(61	)
JPMorgan Chase Bank NA	TRY	60	$	20	4/5/16		(1	)
JPMorgan Chase Bank NA	$	14	HUF	4,011	4/5/16		—	@
JPMorgan Chase Bank NA	ZAR	33	$	2	4/5/16		(—	@)
UBS AG	BRL	1,953	$	530	4/5/16		(13	)
UBS AG	NZD	2,250	$	1,484	4/5/16		(71	)
UBS AG	PLN	3,794	$	967	4/5/16		(49	)
UBS AG	$	793	BRL	2,821	4/5/16		(8	)
UBS AG	$	32	EUR	29	4/5/16		2
UBS AG	$	1,184	EUR	1,072	4/5/16		36
UBS AG	$	11	EUR	10	4/5/16		—	@
UBS AG	$	10	JPY	1,109	4/5/16		—	@
UBS AG	$	6	NOK	53	4/5/16		—	@
UBS AG	ZAR	762	$	49	4/5/16		(3	)
UBS AG	ZAR	6,455	$	418	4/5/16		(19	)
UBS AG	BRL	2,821	$	787	5/4/16		9
						$	(475	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Futures Contracts:

The Portfolio had the following futures contracts open at March 31, 2016:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		143	$	31,281		Jun-16	$	9
U.S. Treasury 5 yr. Note		68		8,239		Jun-16		42
U.S. Treasury Long Bond		13		2,138		Jun-16		15
U.S. Treasury Ultra Bond		62		10,697		Jun-16		(79	)
Short:
U.S. Treasury Ultra Long Bond		111		(15,623	)	Jun-16		(145	)
							$	(158	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 31, 2016:

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†
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	995		1.00	%	3/20/19	$	19		$	(40	)	$	(21	)	BBB+
Deutsche Bank AG CMBX.NA.BB.60	Sell		515		5.00		5/11/63		3			(61	)		(58	)	NR
Morgan Stanley & Co., LLC* CDX.NA.IG.24	Buy		2,975		1.00		6/20/20		(56	)		40			(16	)	NR
		$	4,485					$	(34	)	$	(61	)	$	(95	)

@ Value is less than $500.

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

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

NR Not rated.

AUD — Australian Dollar

BRL — Brazilian Real

CAD — Canadian Dollar

EUR — Euro

HUF — Hungarian Forint

JPY — Japanese Yen

MXN — Mexican Peso

NOK — Norwegian Krone

NZD — New Zealand Dollar

PLN — Polish Zloty

RON — Romanian New Leu

SEK — Swedish Krona

TRY — Turkish Lira

ZAR — South African Rand

Portfolio Composition**

Classification	Percentage of Total Investments
Agency Fixed Rate Mortgages		19.6	%
Industrials		17.2
Finance		14.5
Other***		12.9
Short-Term Investments		11.8
Mortgages — Other		8.9
Sovereign		8.0
Commercial Mortgage-Backed Securities		7.1
Total Investments		100.0	%****

** Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2016.

*** 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 $67,978,000 with net unrealized depreciation of approximately $158,000. Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $475,000 and does not include open swap agreements with net unrealized depreciation of approximately $61,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities	March 31, 2016 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $165,152)	$	164,887
Investment in Security of Affiliated Issuer, at Value (Cost $23,100)		23,100
Total Investments in Securities, at Value (Cost $188,252)		187,987
Cash		683
Receivable for Investments Sold		5,446
Interest and Paydown Receivable		1,363
Receivable for Variation Margin on Futures Contracts		456
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		48
Premium Paid on Open Swap Agreements		22
Due from Adviser		6
Receivable from Affiliate		4
Receivable for Portfolio Shares Sold		4
Other Assets		86
Total Assets		196,105
Liabilities:
Payable for Investments Purchased		17,435
Collateral on Securities Loaned, at Value		4,078
Payable for Portfolio Shares Redeemed		1,142
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		523
Payable for Trustees' Fees and Expenses		140
Unrealized Depreciation on Swap Agreements		101
Payable for Professional Fees		56
Payable for Custodian Fees		42
Payable for Administration Fees		11
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		1
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Variation Margin on Swap Agreements		—	@
Other Liabilities		42
Total Liabilities		23,577
Net Assets	$	172,528
Net Assets Consist Of:
Paid-in-Capital	$	624,658
Accumulated Undistributed Net Investment Income		3,018
Accumulated Net Realized Loss		(454,203	)
Unrealized Appreciation (Depreciation) on:
Investments		(265	)
Futures Contracts		(158	)
Swap Agreements		(61	)
Foreign Currency Forward Exchange Contracts		(475	)
Foreign Currency Translations		14
Net Assets	$	172,528

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2016 (000)
CLASS I:
Net Assets	$	167,063
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		15,770,416
Net Asset Value, Offering and Redemption Price Per Share	$	10.59
CLASS A:
Net Assets	$	4,366
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		411,530
Net Asset Value, Redemption Price Per Share	$	10.61
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.47
Maximum Offering Price Per Share	$	11.08
CLASS L:
Net Assets	$	362
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		34,172
Net Asset Value, Offering and Redemption Price Per Share	$	10.60
CLASS C:
Net Assets	$	737
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		69,824
Net Asset Value, Offering and Redemption Price Per Share	$	10.56
⁽¹⁾ Including: Securities on Loan, at Value:	$	8,570

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Operations	Six Months Ended March 31, 2016 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	3,634
Dividends from Security of Affiliated Issuer (Note G)		22
Income from Securities Loaned — Net		12
Total Investment Income		3,668
Expenses:
Advisory Fees (Note B)		360
Sub Transfer Agency Fees — Class I		103
Sub Transfer Agency Fees — Class A		2
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Administration Fees (Note C)		77
Professional Fees		54
Custodian Fees (Note F)		49
Pricing Fees		26
Registration Fees		21
Shareholder Reporting Fees		18
Shareholder Services Fees — Class A (Note D)		5
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		2
Transfer Agency Fees — Class I (Note E)		3
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Trustees' Fees and Expenses		3
Other Expenses		10
Total Expenses		738
Waiver of Advisory Fees (Note B)		(166	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(106	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(7	)
Net Expenses		455
Net Investment Income		3,213
Realized Gain (Loss):
Investments Sold		6,518
Foreign Currency Forward Exchange Contracts		120
Foreign Currency Transactions		28
Futures Contracts		468
Swap Agreements		(334	)
Net Realized Gain		6,800
Change in Unrealized Appreciation (Depreciation):
Investments		1,032
Foreign Currency Forward Exchange Contracts		(535	)
Foreign Currency Translations		15
Futures Contracts		(79	)
Swap Agreements		307
Net Change in Unrealized Appreciation (Depreciation)		740
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		7,540
Net Increase in Net Assets Resulting from Operations	$	10,753

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Core Plus Fixed Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2016 (unaudited) (000)			Year Ended September 30, 2015 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	3,213		$	6,672
Net Realized Gain		6,800			2,949
Net Change in Unrealized Appreciation (Depreciation)		740			(7,292	)
Net Increase in Net Assets Resulting from Operations		10,753			2,329
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(4,587	)		(6,016	)
Class A:
Net Investment Income		(77	)		(96	)
Class L:
Net Investment Income		(7	)		(7	)
Class C:
Net Investment Income		(6	)		(—	@)*
Total Distributions		(4,677	)		(6,119	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		14,445			41,541
Distributions Reinvested		4,581			6,008
Redeemed		(54,872	)		(39,648	)
Class A:
Subscribed		1,376			2,479
Distributions Reinvested		77			96
Redeemed		(819	)		(1,892	)
Class L:
Subscribed		77			225
Distributions Reinvested		7			6
Redeemed		(68	)		—
Class C:
Subscribed		650			50	*
Distributions Reinvested		6			—	@*
Redeemed		(—	@)		(—	@)*
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(34,540	)		8,865
Total Increase (Decrease) in Net Assets		(28,464	)		5,075
Net Assets:
Beginning of Period		200,992			195,917
End of Period (Including Accumulated Undistributed Net Investment Income of $3,018 and $4,482)	$	172,528		$	200,992
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1,439			4,007
Shares Issued on Distributions Reinvested		459			583
Shares Redeemed		(5,494	)		(3,848	)
Net Increase (Decrease) in Class I Shares Outstanding		(3,596	)		742
Class A:
Shares Subscribed		137			239
Shares Issued on Distributions Reinvested		8			9
Shares Redeemed		(82	)		(183	)
Net Increase in Class A Shares Outstanding		63			65
Class L:
Shares Subscribed		7			21
Shares Issued on Distributions Reinvested		1			1
Shares Redeemed		(7	)		—
Net Increase in Class L Shares Outstanding		1			22
Class C:
Shares Subscribed		64			5	*
Shares Issued on Distributions Reinvested		1			—	@@*
Shares Redeemed		(—	@@)		(—	@@)*
Net Increase in Class C Shares Outstanding		65			5

* For the period April 30, 2015 through September 30, 2015.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Core Plus Fixed Income Portfolio

	Class I
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	10.18		$	10.36		$	9.91		$	10.48		$	9.92		$	9.96
Income (Loss) from Investment Operations:
Net Investment Income†		0.17			0.33			0.31			0.32			0.39			0.38
Net Realized and Unrealized Gain (Loss)		0.48			(0.20	)		0.45			(0.36	)		0.63			(0.02	)
Total from Investment Operations		0.65			0.13			0.76			(0.04	)		1.02			0.36
Distributions from and/or in Excess of:
Net Investment Income		(0.24	)		(0.31	)		(0.31	)		(0.53	)		(0.46	)		(0.40	)
Net Asset Value, End of Period	$	10.59		$	10.18		$	10.36		$	9.91		$	10.48		$	9.92
Total Return++		6.60	%**#		1.15	%		7.82	%		(0.42	)%		10.62	%		3.74	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	167,063		$	197,057		$	192,868		$	187,014		$	227,331		$	295,226
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.47	%+^^^*		0.51	%+^^		0.61	%+		0.71	%+^		0.62	%+		0.66	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		3.36	%+^^^*		3.24	%+^^		3.02	%+		3.14	%+^		3.88	%+		3.88	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%§
Portfolio Turnover Rate		126	%#		348	%		296	%		226	%		189	%		225	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.76	%*		0.73	%		0.81	%		0.73	%		N/A			N/A
Net Investment Income to Average Net Assets		3.07	%*		3.02	%		2.82	%		3.12	%		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.

** Performance was positively impacted by approximately 4.24% due to the receipt of proceeds from the settlement of a class action suit involving the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had this settlement not occurred, the total return for Class I shares would have been approximately 2.36%.

^^^ Effective January 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.42% for Class I shares. Prior to January 1, 2016, the maximum ratio was 0.52% for Class I shares.

^^ Effective October 6, 2014, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.52% for Class I shares. Prior to October 6, 2014, the maximum ratio was 0.62% for Class I shares.

^ 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Core Plus Fixed Income Portfolio

	Class A
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	10.19		$	10.37		$	9.93		$	10.50		$	9.94		$	9.97
Income (Loss) from Investment Operations:
Net Investment Income†		0.15			0.30			0.27			0.29			0.37			0.36
Net Realized and Unrealized Gain (Loss)		0.49			(0.21	)		0.45			(0.36	)		0.62			(0.02	)
Total from Investment Operations		0.64			0.09			0.72			(0.07	)		0.99			0.34
Distributions from and/or in Excess of:
Net Investment Income		(0.22	)		(0.27	)		(0.28	)		(0.50	)		(0.43	)		(0.37	)
Net Asset Value, End of Period	$	10.61		$	10.19		$	10.37		$	9.93		$	10.50		$	9.94
Total Return++		6.39	%**#		0.90	%		7.35	%		(0.68	)%		10.31	%		3.57	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,366		$	3,553		$	2,941		$	3,152		$	3,673		$	4,654
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.81	%+^^^*		0.86	%+^^		0.96	%+		0.96	%+^		0.87	%+		0.91	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		3.01	%+^^^*		2.87	%+^^		2.67	%+		2.89	%+^		3.63	%+		3.63	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%§
Portfolio Turnover Rate		126	%#		348	%		296	%		226	%		189	%		225	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.08	%*		1.07	%		1.11	%		0.98	%		N/A			N/A
Net Investment Income to Average Net Assets		2.74	%*		2.66	%		2.52	%		2.87	%		N/A			N/A

† 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.

** Performance was positively impacted by approximately 4.22% due to the receipt of proceeds from the settlement of a class action suit involving the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had this settlement not occurred, the total return for Class A shares would have been approximately 2.17%.

^^^ Effective January 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.77% for Class A shares. Prior to January 1, 2016, the maximum ratio was 0.87% for Class A shares.

^^ Effective October 6, 2014, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.87% for Class A shares. Prior to October 6, 2014, the maximum ratio was 0.97% for Class A shares.

^ 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.

§ 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

Semi-Annual Report — March 31, 2016

Financial Highlights

Core Plus Fixed Income Portfolio

	Class L
	Six Months Ended March 31, 2016			Year Ended September 30,									Period from April 27, 2012^ to
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	10.18		$	10.37		$	9.92		$	10.49		$	10.14
Income (Loss) from Investment Operations:
Net Investment Income†		0.14			0.27			0.25			0.27			0.11
Net Realized and Unrealized Gain (Loss)		0.48			(0.21	)		0.45			(0.36	)		0.35
Total from Investment Operations		0.62			0.06			0.70			(0.09	)		0.46
Distributions from and/or in Excess of:
Net Investment Income		(0.20	)		(0.25	)		(0.25	)		(0.48	)		(0.11	)
Net Asset Value, End of Period	$	10.60		$	10.18		$	10.37		$	9.92		$	10.49
Total Return++		6.27	%**#		0.59	%		7.19	%		(0.95	)%		4.59	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	362		$	333		$	108		$	88		$	130
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.06	%+^^^^*		1.11	%+^^^		1.21	%+		1.21	%+^^		1.16	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.74	%+^^^^*		2.65	%+^^^		2.42	%+		2.64	%+^^		2.60	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.02	%		0.01	%		0.01	%		0.01	%*
Portfolio Turnover Rate		126	%#		348	%		296	%		226	%		189	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.70	%*		1.76	%		3.10	%		1.27	%		N/A
Net Investment Income to Average Net Assets		2.10	%*		2.00	%		0.53	%		2.58	%		N/A

^ Commencement of Offering.

† 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 January 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.02% for Class L shares. Prior to January 1, 2016, the maximum ratio was 1.12% for Class L shares.

^^^ Effective October 6, 2014, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.12% for Class L shares. Prior to October 6, 2014, the maximum ratio was 1.22% for Class L shares.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Core Plus Fixed Income Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.16		$	10.44
Income (Loss) from Investment Operations:
Net Investment Income†		0.11			0.10
Net Realized and Unrealized Gain (Loss)		0.48			(0.31	)
Total from Investment Operations		0.59			(0.21	)
Distributions from and/or in Excess of:
Net Investment Income		(0.19	)		(0.07	)
Net Asset Value, End of Period	$	10.56		$	10.16
Total Return++		5.96	%**#		(2.02	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	737		$	49
Ratios of Expenses to Average Net Assets ⁽¹⁾		1.55	%+^^*		1.61	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.26	%+^^*		2.23	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.01	%*
Portfolio Turnover Rate		126	%#		348	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		2.31	%*		14.06	%*
Net Investment Income (Loss) to Average Net Assets		1.50	%*		(10.22	)%*

^ Commencement of Offering.

† 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.

^^ Effective January 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.52% for Class C shares. Prior to January 1, 2016, the maximum ratio was 1.62% for Class C shares.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Notes to Financial Statements (unaudited)

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

On April 30, 2015, the Portfolio suspended offering Class L shares to all investors. Existing Class L shareholders may invest through reinvestment of dividends and distributions.

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 ("NAV") 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

Semi-Annual Report — March 31, 2016

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

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

The following is a summary of the inputs used to value the Portfolio's investments as of March 31, 2016.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgage	$	—	$	291	$	—	$	291
Agency Fixed Rate Mortgages		—		36,175		—		36,175
Asset-Backed Securities		—		8,663		—		8,663
Collateralized Mortgage Obligations — Agency Collateral Series		—		4,971		—		4,971
Commercial Mortgage-Backed Securities		—		13,172		—		13,172
Corporate Bonds		—		60,976		—		60,976
Mortgages — Other		—		16,337		—		16,337
Municipal Bonds		—		2,424		—		2,424
Sovereign		—		14,842		—		14,842
U.S. Treasury Security		—		5,042		—		5,042
Total Fixed Income Securities		—		162,893		—		162,893

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Short-Term Investments
Investment Company	$	23,100		$	—		$	—	$	23,100
Repurchase Agreements		—			506			—		506
U.S. Treasury Security		—			1,488			—		1,488
Total Short-Term Investments		23,100			1,994			—		25,094
Foreign Currency Forward Exchange Contracts		—			48			—		48
Futures Contracts		66			—			—		66
Credit Default Swap Agreement		—			40			—		40
Total Assets		23,166			164,975			—		188,141
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(523	)		—		(523	)
Futures Contracts		(224	)		—			—		(224	)
Credit Default Swap Agreements		—			(101	)		—		(101	)
Total Liabilities		(224	)		(624	)		—		(848	)
Total	$	22,942		$	164,351		$	—	$	187,293

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. 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

Semi-Annual Report — March 31, 2016

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

currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) in 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.

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

Semi-Annual Report — March 31, 2016

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

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 which the Portfolio has open positions in the futures contract.

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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

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.

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

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 may 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 March 31, 2016.

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

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(a)

Swap Agreement

Variation Margin on
Swap Agreement

Credit Risk

(a)

Total

154

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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

(523

)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(224

)(a)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Credit Risk

(101

)

Total

(848

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	120
Interest Rate Risk	Futures Contracts		468
Credit Risk	Swap Agreements		14
Interest Rate Risk	Swap Agreements		(348	)
	Total	$	254
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(535	)
Interest Rate Risk	Futures Contracts		(79	)
Credit Risk	Swap Agreements		(46	)
Interest Rate Risk	Swap Agreements		353
	Total	$	(307	)

At March 31, 2016, 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	$	48	$	(523	)
Swap Agreements		—		(101	)
Total	$	48	$	(624	)

(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 tables present derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2016.

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	$	—	@	$	(—	@)	$	—	$	0
HSBC Bank PLC		1			(1	)		—		0
JPMorgan Chase Bank NA		—	@		(—	@)		—		0
UBS AG		47			(47	)		—		0
Total	$	48		$	(48	)	$	—	$	0

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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	$	40	$	—		$	—	$	40
Citibank NA		23		(—	@)		—		23
Deutsche Bank AG		61		—			—		61
HSBC Bank PLC		274		(1	)		—		273
JPMorgan Chase Bank NA		63		(—	@)		—		63
UBS AG		163		(47	)		—		116
Total	$	624	$	(48	)	$	—	$	576

@ Amount is less than $500.

For the six months ended March 31, 2016, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	19,850,000
Futures Contracts:
Average monthly original value	$	93,888,000
Swap Agreements:
Average monthly notional amount	$	4,485,000

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.

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

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

The following table presents financial instruments that are subject to enforceable netting arrangements as of March 31, 2016.

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)
$	8,570	(d)	$	—	$	(8,570	)(e)(f)	$	0

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

(e) The Portfolio received cash collateral of approximately $4,078,000, of which approximately $3,395,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of March 31, 2016, there was uninvested cash of approximately $683,000, which is not reflected in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $4,649,000 in the form of U.S. Government obligations, which the Portfolio cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

The Portfolio has adopted the disclosure provisions of FASB Accounting Standards Update No. 2014-11 ("ASU No. 2014-11"), "Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures". ASU No. 2014-11 is intended to provide increased transparency about the types of collateral pledged in securities lending transactions and other similar transactions that are accounted for as secured borrowing.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged, and the remaining contractual maturity of those transactions as of March 31, 2016.

	Remaining Contractual Maturity of the Agreements As of March 31, 2016
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Corporate Bonds	$	4,078	$	—	$	—	$	—	$	4,078
Total Borrowings	$	4,078	$	—	$	—	$	—	$	4,078
Gross amount of recognized liabilities for securities lending transactions									$	4,078

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 and shareholder services, 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.

First $1 billion				Over $1 billion
	0.375	%			0.300	%

For the six months ended March 31, 2016, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.19% of the Portfolio's average 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,

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

interest and other extraordinary expenses (including litigation), will not exceed 0.52% for Class I shares, 0.87% for Class A shares, 1.12% for Class L shares and 1.62% for Class C shares. Effective January 4, 2016, the Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses will not exceed 0.42% for Class I shares, 0.77% for Class A shares, 1.02% for Class L shares and 1.52% for Class C shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2016, approximately $166,000 of advisory fees were waived and approximately $110,000 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.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2016, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $29,258,000 and $47,790,000, respectively. For the six months ended March 31, 2016, purchases and sales of long-term U.S. Government securities were approximately $206,694,000 and $225,314,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 31, 2016, advisory fees paid were reduced by approximately $7,000 relating to the Portfolio's investment in the Liquidity Funds.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	25,450			$	58,536			$	60,886			$	22			$	23,100

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 2015 and 2014 was as follows:

2015 Distributions Paid From: Ordinary Income (000)				2014 Distributions Paid From: Ordinary Income (000)
$	6,119			$	5,840

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	792			$	12,997			$	(13,789	)

At September 30, 2015, 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)
$	4,616			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

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

Capital loss carryforwards of approximately $13,785,000 expired during the year ended September 30, 2015.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

ers. During the year ended September 30, 2015, the Portfolio utilized capital loss carryforwards for U.S. Federal income tax purposes of approximately $1,895,000.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

Trustee and Officer Information (unaudited)

Trustees

Officers

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

IFTCPFISAN
1480951 EXP. 05.31.17

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Strategist Portfolio

Semi-Annual Report

March 31, 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					28
Statement of Operations					30
Statements of Changes in Net Assets					31
Financial Highlights					33
Notes to Financial Statements					38
U.S. Privacy Policy					52
Trustee and Officer Information					55

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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 March 31, 2016 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 10/1/15		Actual Ending Account Value 3/31/16		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	$	1,043.00	$	1,021.30	$	3.78	$	3.74		0.74	%
Global Strategist Portfolio Class A		1,000.00		1,040.50		1,019.60		5.51		5.45		1.08
Global Strategist Portfolio Class L		1,000.00		1,038.60		1,017.05		8.10		8.02		1.59
Global Strategist Portfolio Class C		1,000.00		1,036.50		1,015.85		9.32		9.22		1.83
Global Strategist Portfolio Class IS		1,000.00		1,043.70		1,021.45		3.63		3.59		0.71

** Annualized.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (42.1%)
Agency Adjustable Rate Mortgages (0.3%)
United States (0.3%)
Federal Home Loan Mortgage Corporation, Conventional Pool
2.58%, 7/1/45	$	361	$	370
Federal National Mortgage Association, Conventional Pool
2.65%, 12/1/45		590		608
				978
Agency Fixed Rate Mortgages (3.4%)
United States (3.4%)
Federal Home Loan Mortgage Corporation,
April TBA
3.50%, 4/1/31 - 4/1/46 (a)		563		591
4.00%, 4/1/46 (a)		3,000		3,202
Gold Pools:
3.50%, 1/1/44 - 6/1/45		1,642		1,726
6.00%, 11/1/37		96		110
6.50%, 5/1/32 - 7/1/32		66		76
7.50%, 5/1/35		7		9
Federal National Mortgage Association,
Conventional Pools:
3.00%, 3/1/30 - 5/1/30		433		453
3.50%, 4/1/29		407		430
4.00%, 4/1/45 - 9/1/45		1,845		1,984
4.50%, 3/1/41 - 11/1/44		466		512
5.00%, 1/1/41 - 3/1/41		1,362		1,523
6.00%, 1/1/38		12		14
6.50%, 12/1/29		24		28
7.00%, 12/1/17 - 2/1/31		311		346
7.50%, 8/1/37		15		19
Government National Mortgage Association,
Various Pools:
3.50%, 12/15/43		522		554
4.00%, 8/20/41 - 11/20/42		685		736
5.50%, 8/15/39		105		120
				12,433
Asset-Backed Security (0.1%)
United States (0.1%)
CVS Pass-Through Trust,
6.04%, 12/10/28		342		383
Collateralized Mortgage Obligations — Agency Collateral Series (0.5%)
United States (0.5%)
Federal Home Loan Mortgage Corporation,
2.40%, 6/25/22		1,625		1,680
2.79%, 1/25/22		75		79
2.97%, 10/25/21		90		96
IO REMIC
5.61%, 4/15/39 (b)		125		16
				1,871

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (0.8%)
United States (0.8%)
COMM Mortgage Trust,
3.28%, 1/10/46	$	305	$	314
4.74%, 7/15/47 (b)(c)		152		119
Commercial Mortgage Pass-Through Certificates,
2.82%, 10/15/45		376		388
Extended Stay America Trust,
2.96%, 12/5/31 (c)		325		326
JP Morgan Chase Commercial Mortgage Securities Trust,
4.39%, 7/15/46 (c)		100		109
4.57%, 7/15/47 (b)(c)		745		588
JPMBB Commercial Mortgage Securities Trust,
3.96%, 9/15/47 (b)(c)		205		158
4.56%, 9/15/47 (b)(c)		263		208
4.66%, 8/15/47 (b)(c)		361		288
UBS-Barclays Commercial Mortgage Trust,
3.53%, 5/10/63		255		271
WF-RBS Commercial Mortgage Trust,
3.99%, 10/15/57 (b)(c)		362		274
				3,043
Corporate Bonds (12.4%)
Australia (0.5%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	400		518
BHP Billiton Finance USA Ltd.,
3.85%, 9/30/23	$	170		175
Macquarie Bank Ltd.,
6.63%, 4/7/21 (c)		270		307
Origin Energy Finance Ltd.,
3.50%, 10/9/18 (c)		200		190
QBE Insurance Group Ltd.,
2.40%, 5/1/18 (c)		200		201
Telstra Corp., Ltd.,
3.13%, 4/7/25 (c)		135		136
Transurban Finance Co., Pty Ltd.,
4.13%, 2/2/26 (c)		170		175
				1,702
Belgium (0.1%)
Anheuser-Busch InBev Finance, Inc.,
3.70%, 2/1/24		300		321
4.70%, 2/1/36		225		244
				565
Canada (0.1%)
Brookfield Asset Management, Inc.,
5.80%, 4/25/17		295		308
Goldcorp, Inc.,
3.70%, 3/15/23		198		194
				502

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Chile (0.1%)
Empresa Nacional de Telecomunicaciones SA,
4.75%, 8/1/26 (c)	$	250	$	240
China (0.1%)
Baidu, Inc.,
3.25%, 8/6/18		225		231
Want Want China Finance Ltd.,
1.88%, 5/14/18 (c)		200		198
				429
Colombia (0.1%)
Ecopetrol SA,
5.88%, 9/18/23		270		267
France (4.5%)
AXA SA,
3.94%, 11/7/24 (b)(d)	EUR	500		573
Banque Federative du Credit Mutuel SA,
2.00%, 9/19/19		500		604
BNP Paribas SA,
1.00%, 4/18/17 (b)	$	13,710		13,743
5.00%, 1/15/21		95		106
MTN
4.25%, 10/15/24		250		253
BPCE SA,
5.15%, 7/21/24 (c)		450		461
Credit Agricole Assurances SA,
4.25%, 1/13/25 (b)(d)	EUR	500		545
Electricite de France SA,
5.00%, 1/22/26 (b)(d)		300		325
TOTAL SA,
2.25%, 2/26/21 (b)(d)		200		215
				16,825
Germany (0.7%)
Bayer AG,
3.75%, 7/1/74 (b)		300		354
Deutsche Bank AG,
Zero Coupon, 3/17/17 (c)	$	10		1,242
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen,
6.00%, 5/26/41 (b)	EUR	400		543
Siemens Financieringsmaatschappij N.V.,
3.25%, 5/27/25 (c)	$	250		261
Vier Gas Transport GmbH,
3.13%, 7/10/23	EUR	100		132
				2,532
Italy (0.3%)
Assicurazioni Generali SpA,
10.13%, 7/10/42 (b)		400		596
FCA Capital Ireland PLC,
1.38%, 4/17/20		250		287
Telecom Italia Finance SA,
7.75%, 1/24/33		80		124
				1,007

	Face Amount (000)		Value (000)
Korea, Republic of (0.1%)
SK Telecom Co., Ltd.,
2.13%, 5/1/18 (c)	$	200	$	201
Malaysia (0.1%)
Petronas Capital Ltd.,
3.50%, 3/18/25 (c)		375		383
Mexico (0.0%)
Mexichem SAB de CV,
5.88%, 9/17/44 (c)		200		180
				180
Netherlands (0.6%)
ABN Amro Bank N.V.,
2.50%, 10/30/18 (c)		300		304
2.88%, 6/30/25 (b)	EUR	250		291
ASR Nederland N.V.,
5.00%, 9/30/24 (b)(d)		500		565
Cooperatieve Rabobank UA,
3.95%, 11/9/22	$	250		256
Series G
3.75%, 11/9/20	EUR	300		382
ING Bank N.V.,
5.80%, 9/25/23 (c)	$	240		262
				2,060
Spain (0.3%)
Santander Issuances SAU,
5.18%, 11/19/25		600		581
Telefonica Emisiones SAU,
4.71%, 1/20/20	EUR	300		397
				978
Sweden (0.1%)
Skandinaviska Enskilda Banken AB,
1.75%, 3/19/18 (c)	$	200		200
Swedbank AB,
1.75%, 3/12/18 (c)		270		270
				470
Switzerland (0.4%)
Aquarius and Investments PLC for Zurich Insurance Co., Ltd.,
4.25%, 10/2/43 (b)	EUR	450		561
Credit Suisse AG,
0.63%, 11/20/18		550		632
6.00%, 2/15/18	$	90		96
Novartis Capital Corp.,
4.40%, 5/6/44		150		172
				1,461
Thailand (0.1%)
PTT Exploration & Production PCL,
3.71%, 9/16/18 (c)		240		248
United Kingdom (0.8%)
Abbey National Treasury Services PLC,
4.00%, 3/13/24		120		128

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United Kingdom (cont'd)
BAT International Finance PLC,
9.50%, 11/15/18 (c)	$	155	$	185
Diageo Capital PLC,
1.50%, 5/11/17		215		216
Experian Finance PLC,
2.38%, 6/15/17 (c)		400		400
GlaxoSmithKline Capital, Inc.,
6.38%, 5/15/38		100		136
Heathrow Funding Ltd.,
4.60%, 2/15/18	EUR	300		369
HSBC Holdings PLC,
6.38%, 9/17/24 (b)(d)	$	200		186
Lloyds Bank PLC,
6.50%, 3/24/20	EUR	450		603
Nationwide Building Society,
3.90%, 7/21/25 (c)	$	200		211
6.25%, 2/25/20 (c)		300		342
NGG Finance PLC,
5.63%, 6/18/73 (b)	GBP	200		299
				3,075
United States (3.4%)
Actavis Funding SCS,
3.80%, 3/15/25	$	55		57
Altria Group, Inc.,
2.85%, 8/9/22		25		26
5.38%, 1/31/44		155		190
Apple, Inc.,
3.85%, 5/4/43		100		98
AT&T, Inc.,
5.15%, 3/15/42		25		25
6.30%, 1/15/38		150		173
Bank of America Corp.,
MTN
4.00%, 4/1/24		250		263
4.20%, 8/26/24		100		102
4.25%, 10/22/26		45		46
5.00%, 1/21/44		250		277
Baxalta, Inc.,
4.00%, 6/23/25 (c)		300		305
Boston Properties LP,
3.85%, 2/1/23		25		26
Burlington Northern Santa Fe LLC,
4.55%, 9/1/44		195		212
Capital One Bank, USA NA,
3.38%, 2/15/23		546		551
CCO Safari II LLC,
4.91%, 7/23/25 (c)		300		317
6.48%, 10/23/45 (c)		150		167
Citigroup, Inc.,
2.65%, 10/26/20		50		51
5.50%, 9/13/25		250		274
6.68%, 9/13/43		20		24
8.13%, 7/15/39		175		260

	Face Amount (000)		Value (000)
Coca-Cola Co.,
3.20%, 11/1/23	$	250	$	269
Comcast Corp.,
4.60%, 8/15/45		130		145
Discover Bank,
2.00%, 2/21/18		345		343
Enterprise Products Operating LLC,
3.35%, 3/15/23		275		274
Five Corners Funding Trust,
4.42%, 11/15/23 (c)		350		368
Ford Motor Credit Co., LLC,
4.21%, 4/15/16		305		305
General Motors Financial Co., Inc.,
4.30%, 7/13/25		250		248
Genworth Holdings, Inc.,
7.20%, 2/15/21		105		91
Gilead Sciences, Inc.,
3.65%, 3/1/26		175		186
4.80%, 4/1/44		75		82
Goldman Sachs Group, Inc. (The),
4.80%, 7/8/44		275		289
Hartford Financial Services Group, Inc. (The),
5.50%, 3/30/20		25		28
Hewlett Packard Enterprise Co.,
3.60%, 10/15/20 (c)		325		338
Home Depot, Inc.,
5.88%, 12/16/36		100		130
HSBC USA, Inc.,
3.50%, 6/23/24		100		102
JPMorgan Chase & Co.,
3.20%, 1/25/23		615		631
3.88%, 2/1/24		200		213
Kinder Morgan Energy Partners LP,
4.15%, 2/1/24		125		118
Kinder Morgan, Inc.,
4.30%, 6/1/25		150		143
Liberty Mutual Group, Inc.,
4.85%, 8/1/44 (c)		100		96
McDonald's Corp.,
3.38%, 5/26/25		275		287
Medtronic, Inc.,
3.63%, 3/15/24		250		269
4.63%, 3/15/45		50		56
Merck & Co., Inc.,
2.80%, 5/18/23		250		261
Monongahela Power Co.,
5.40%, 12/15/43 (c)		100		119
NBC Universal Media LLC,
4.38%, 4/1/21		175		196
Omnicom Group, Inc.,
3.63%, 5/1/22		60		63
3.65%, 11/1/24		84		87

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
Oracle Corp.,
3.40%, 7/8/24	$	175	$	186
Pacific LifeCorp,
6.00%, 2/10/20 (c)		25		28
PepsiCo, Inc.,
3.60%, 3/1/24		250		274
Plains All American Pipeline LP/ PAA Finance Corp.,
6.70%, 5/15/36		190		177
8.75%, 5/1/19		220		243
Prudential Financial, Inc.,
6.63%, 12/1/37		150		184
QUALCOMM, Inc.,
4.65%, 5/20/35		175		180
Tyco International Finance SA,
3.90%, 2/14/26		175		182
UnitedHealth Group, Inc.,
3.75%, 7/15/25		75		81
4.25%, 3/15/43		150		159
Verizon Communications, Inc.,
4.67%, 3/15/55		231		223
5.01%, 8/21/54		195		197
Visa, Inc.,
3.15%, 12/14/25		325		340
Wal-Mart Stores, Inc.,
2.55%, 4/11/23		475		489
Wells Fargo & Co.,
3.45%, 2/13/23		395		405
Zimmer Biomet Holdings, Inc.,
5.75%, 11/30/39		150		174
				12,703
				45,828
Mortgages — Other (0.7%)
United Kingdom (0.2%)
Holmes Master Issuer PLC,
2.14%, 10/15/54 (b)(c)	GBP	616		894
United States (0.5%)
Banc of America Alternative Loan Trust,
5.86%, 10/25/36	$	44		27
6.00%, 4/25/36		19		19
ChaseFlex Trust,
6.00%, 2/25/37		40		28
First Horizon Alternative Mortgage Securities Trust,
6.25%, 8/25/36		20		16
Freddie Mac Whole Loan Securities Trust,
3.00%, 9/25/45		531		540
3.50%, 5/25/45 - 9/25/45		844		875
4.00%, 5/25/45		112		117
GSR Mortgage Loan Trust,
5.75%, 1/25/37		32		31

	Face Amount (000)		Value (000)
Lehman Mortgage Trust,
5.50%, 11/25/35	$	11	$	10
6.50%, 9/25/37		41		31
				1,694
				2,588
Sovereign (16.2%)
Australia (0.3%)
Australia Government Bond,
3.25%, 4/21/25	AUD	1,300		1,062
Austria (0.2%)
Austria Government Bond,
1.20%, 10/20/25 (c)	EUR	500		614
Belgium (0.3%)
Belgium Government Bond,
0.80%, 6/22/25 (c)		900		1,063
Bermuda (0.1%)
Bermuda Government International Bond,
4.85%, 2/6/24 (c)	$	390		411
Brazil (0.3%)
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/25	BRL	4,350		981
Canada (1.1%)
Canadian Government Bond,
1.50%, 6/1/23	CAD	2,300		1,831
3.25%, 6/1/21		2,600		2,259
				4,090
China (0.1%)
Sinopec Group Overseas Development 2015 Ltd.,
2.50%, 4/28/20 (c)	$	375		377
France (0.8%)
France Government Bond OAT,
1.75%, 5/25/23	EUR	790		1,008
3.25%, 5/25/45		900		1,482
5.50%, 4/25/29		300		545
				3,035
Germany (0.7%)
Bundesrepublik Deutschland,
1.00%, 8/15/25		700		864
4.25%, 7/4/39		650		1,294
4.75%, 7/4/34		220		430
				2,588
Greece (0.3%)
Hellenic Republic Government Bond,
3.00%, 2/24/23 - 2/24/42 (e)		1,580		1,112
Hungary (0.3%)
Hungary Government International Bond,
5.38%, 3/25/24	$	250		281
5.75%, 11/22/23		800		913
				1,194

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Indonesia (0.3%)
Indonesia Government International Bond,
5.88%, 1/15/24 (c)	$	1,090	$	1,227
Ireland (0.1%)
Ireland Government Bond,
5.40%, 3/13/25	EUR	200		321
Italy (1.3%)
Italy Buoni Poliennali Del Tesoro,
1.50%, 6/1/25		650		763
1.65%, 3/1/32 (c)		800		900
2.35%, 9/15/24 (c)		2,277		3,029
				4,692
Japan (4.6%)
Japan Finance Organization for Municipalities,
1.90%, 6/22/18	JPY	70,000		649
Japan Government Ten Year Bond,
0.50%, 9/20/24		295,000		2,763
1.10%, 3/20/21 - 6/20/21		237,000		2,245
1.70%, 6/20/18		300,000		2,780
Japan Government Thirty Year Bond,
1.70%, 6/20/33		477,000		5,236
2.00%, 9/20/40		239,000		2,844
Japan Government Twenty Year Bond,
1.70%, 6/20/33		33,000		362
				16,879
Korea, Republic of (0.3%)
Korea Development Bank (The),
3.88%, 5/4/17	$	400		411
4.63%, 11/16/21		630		710
				1,121
Mexico (1.0%)
Mexican Bonos,
10.00%, 12/5/24	MXN	48,000		3,572
Petroleos Mexicanos,
6.38%, 1/23/45	$	285		266
				3,838
Netherlands (0.2%)
Netherlands Government Bond,
0.25%, 7/15/25 (c)	EUR	800		911
New Zealand (0.8%)
New Zealand Government Bond,
4.50%, 4/15/27	NZD	800		634
5.50%, 4/15/23		2,800		2,305
				2,939
Poland (0.4%)
Poland Government Bond,
2.50%, 7/25/26	PLN	5,700		1,485
4.00%, 10/25/23		600		177
				1,662

	Face Amount (000)		Value (000)
South Africa (0.1%)
South Africa Government Bond,
8.00%, 1/31/30	ZAR	6,401	$	384
Spain (0.6%)
Spain Government Bond,
2.15%, 10/31/25 (c)	EUR	500		609
Spain Government Inflation Linked Bond,
1.00%, 11/30/30 (c)		767		886
1.80%, 11/30/24 (c)		543		687
				2,182
United Kingdom (2.0%)
United Kingdom Gilt,
2.75%, 9/7/24	GBP	2,400		3,841
4.25%, 6/7/32 - 9/7/39		1,810		3,523
				7,364
				60,047
U.S. Treasury Securities (7.7%)
United States (7.7%)
U.S. Treasury Bond,
3.50%, 2/15/39	$	4,710		5,607
U.S. Treasury Inflation Indexed Bonds,
0.25%, 1/15/25		4,701		4,744
0.63%, 1/15/26		14,508		15,178
U.S. Treasury Notes,
0.63%, 9/30/17		500		499
1.13%, 3/31/20		2,500		2,505
				28,533
Total Fixed Income Securities (Cost $151,468)				155,704
	Shares
Common Stocks (54.2%)
Australia (1.8%)
AGL Energy Ltd.		4,451		63
Alumina Ltd.		30,244		30
Amcor Ltd.		11,036		121
AMP Ltd.		31,080		138
Arrium Ltd. (f)		14,100		—	@
Asciano Ltd.		7,805		54
ASX Ltd.		1,539		49
Australia & New Zealand Banking Group Ltd.		30,514		549
BHP Billiton Ltd.		28,547		369
BlueScope Steel Ltd.		3,657		17
Brambles Ltd.		13,249		123
CIMIC Group Ltd.		1,366		36
Coca-Cola Amatil Ltd.		4,624		31
Cochlear Ltd.		499		39
Commonwealth Bank of Australia		12,195		700
Computershare Ltd.		4,195		31
Crown Resorts Ltd.		5,745		55
CSL Ltd.		4,783		372
CYBG PLC (f)		6,450		19
Dexus Property Group REIT		7,020		43

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Australia (cont'd)
DuluxGroup Ltd.		5,515	$	27
Evolution Mining Ltd.		5,335		6
Fairfax Media Ltd.		32,187		21
Fortescue Metals Group Ltd.		10,837		21
Goodman Group REIT		11,464		59
GPT Group REIT		17,813		68
Incitec Pivot Ltd.		14,433		35
Insurance Australia Group Ltd.		19,798		85
Lend Lease Group REIT		5,862		62
Macquarie Group Ltd.		2,760		140
Mirvac Group REIT		25,584		38
National Australia Bank Ltd.		25,803		519
Newcrest Mining Ltd. (f)		6,867		89
Northern Star Resources Ltd.		3,268		9
OceanaGold Corp. CDI		500		1
Orica Ltd.		3,553		42
Origin Energy Ltd.		9,394		37
Orora Ltd.		11,036		21
QBE Insurance Group Ltd.		13,964		117
Recall Holdings Ltd.		2,611		15
Rio Tinto Ltd.		3,744		123
Santos Ltd.		9,133		28
Scentre Group REIT		41,036		140
Shopping Centres Australasia Property Group REIT		2,465		4
Sonic Healthcare Ltd.		3,230		46
South32 Ltd. (f)		20,867		24
South32 Ltd. (f)		28,547		32
Star Entertainment Grp Ltd. (The)		7,295		32
Stockland REIT		26,303		86
Suncorp Group Ltd.		11,119		102
Sydney Airport		2,861		15
Tabcorp Holdings Ltd.		7,097		23
Telstra Corp., Ltd.		41,748		171
Transurban Group		12,301		107
Treasury Wine Estates Ltd.		7,395		55
Wesfarmers Ltd.		10,023		318
Westfield Corp. REIT		18,583		142
Westpac Banking Corp.		24,560		571
Woodside Petroleum Ltd.		5,210		104
Woolworths Ltd.		10,835		184
WorleyParsons Ltd.		1,584		7
				6,565
Austria (0.0%)
BUWOG AG (f)		183		4
Immofinanz AG (f)		3,664		8
Voestalpine AG		1,329		44
				56
Belgium (0.5%)
Ageas		3,005		119
Anheuser-Busch InBev N.V.		6,748		839
Colruyt SA		905		53

	Shares		Value (000)
Delhaize Group SA		3,250	$	339
Groupe Bruxelles Lambert SA		1,457		120
KBC Groep N.V.		3,321		172
Umicore SA		1,567		78
				1,720
Canada (2.3%)
Agnico-Eagle Mines Ltd.		700		25
Agnico-Eagle Mines Ltd.		1,600		58
Agrium, Inc.		1,500		132
Bank of Montreal		5,100		310
Bank of Nova Scotia		8,800		430
Barrick Gold Corp.		3,400		46
Barrick Gold Corp.		9,400		128
BCE, Inc.		5,300		242
Blackberry Ltd. (f)		4,200		34
Bombardier, Inc. (f)		12,800		13
Brookfield Asset Management, Inc., Class A		8,250		287
Cameco Corp.		4,100		53
Canadian Imperial Bank of Commerce		3,700		276
Canadian National Railway Co.		8,600		537
Canadian Natural Resources Ltd.		10,300		279
Canadian Pacific Railway Ltd.		1,600		213
Cenovus Energy, Inc.		7,100		92
Centerra Gold, Inc.		1,400		6
Crescent Point Energy Corp.		2,100		29
Detour Gold Corp. (f)		1,100		17
Eldorado Gold Corp.		3,500		11
Eldorado Gold Corp.		5,400		17
Enbridge, Inc.		8,200		319
Encana Corp.		7,600		46
Fairfax Financial Holdings Ltd.		300		168
First Majestic Silver Corp. (f)		50		—	@
First Quantum Minerals Ltd.		5,100		27
Fortis, Inc.		1,300		41
Franco-Nevada Corp.		550		34
Goldcorp, Inc.		1,850		30
Goldcorp, Inc.		7,100		115
Great-West Lifeco, Inc.		4,100		113
Husky Energy, Inc.		2,655		33
IGM Financial, Inc.		1,800		54
Imperial Oil Ltd.		2,600		87
Intact Financial Corp.		1,500		105
Kinross Gold Corp. (f)		15,850		54
Kinross Gold Corp. (f)		1,200		4
Lightstream Resources Ltd. (f)		1,136		—	@
Loblaw Cos., Ltd.		673		38
Magna International, Inc.		5,200		223
Manulife Financial Corp.		18,100		256
National Bank of Canada		3,000		98
New Gold, Inc. (f)		3,100		12
Osisko Gold Royalties Ltd.		550		6
Pan American Silver Corp.		950		10
Pembina Pipeline Corp.		400		11

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Canada (cont'd)
Penn West Petroleum Ltd.		3,700	$	3
Potash Corp. of Saskatchewan, Inc.		8,200		140
Power Corp. of Canada		4,100		95
Power Financial Corp.		3,400		85
Rogers Communications, Inc., Class B		3,800		152
Royal Bank of Canada		12,300		709
SEMAFO, Inc. (f)		1,850		7
Shaw Communications, Inc., Class B		3,700		71
Silver Wheaton Corp.		3,500		58
Silver Wheaton Corp.		1,500		25
SNC-Lavalin Group, Inc.		1,800		66
Sun Life Financial, Inc.		5,900		190
Suncor Energy, Inc.		14,856		414
Teck Resources Ltd., Class B		4,700		36
Thomson Reuters Corp.		3,700		150
Toronto-Dominion Bank (The)		16,200		699
Touchstone Exploration, Inc. (f)		650		—	@
TransAlta Corp.		2,300		11
TransCanada Corp.		6,300		248
Valeant Pharmaceuticals International, Inc. (f)		300		8
Yamana Gold, Inc.		7,200		22
Yamana Gold, Inc.		4,650		14
				8,322
Chile (0.0%)
Antofagasta PLC		2,716		18
China (0.0%)
Hanergy Thin Film Power Group Ltd. (f)(g)(h)(i)		42,000		1
Zhaojin Mining Industry Co., Ltd. H Shares (g)		4,750		4
Zijin Mining Group Co., Ltd. H Shares (g)		32,000		10
				15
Denmark (0.6%)
AP Moeller - Maersk A/S Series A		30		38
AP Moeller - Maersk A/S Series B		55		72
Carlsberg A/S Series B		98		9
Coloplast A/S Series B		120		9
Danske Bank A/S		6,876		194
DSV A/S		3,452		144
Novo Nordisk A/S Series B		21,768		1,181
Novozymes A/S Series B		2,771		125
Pandora A/S		129		17
TDC A/S		537		3
Vestas Wind Systems A/S		3,743		264
				2,056
Finland (0.3%)
Fortum Oyj		6,094		92
Kone Oyj, Class B		5,474		264
Nokia Oyj		41,561		247
Nokian Renkaat Oyj		1,401		50
Sampo Oyj, Class A		4,103		195
UPM-Kymmene Oyj		11,663		211
				1,059

	Shares		Value (000)
France (3.0%)
Accor SA		3,032	$	128
Aeroports de Paris (ADP)		480		59
Air Liquide SA		3,470		390
Airbus Group SE		693		46
Alcatel-Lucent SA (f)		39,117		146
Alstom SA (f)		4,118		105
Atos SE		618		50
AXA SA		19,167		451
BNP Paribas SA		11,215		564
Bouygues SA		4,617		188
Bureau Veritas SA		2,324		52
Cap Gemini SA		3,269		307
Carrefour SA		5,540		152
CGG SA (f)		2,024		2
Christian Dior SE		710		129
Cie de Saint-Gobain		5,083		224
Cie Generale des Etablissements Michelin		2,071		212
Credit Agricole SA		8,087		88
Danone SA		6,671		475
Edenred		1,823		35
Electricite de France SA		3,256		37
Engie		13,944		216
Essilor International SA		1,766		218
Eutelsat Communications SA		799		26
Groupe Eurotunnel SE		8,859		99
Hermes International		150		53
ICADE REIT		86		7
JCDecaux SA		651		29
Kering		1,446		259
L'Oreal SA		2,407		431
Legrand SA		309		17
LVMH Moet Hennessy Louis Vuitton SE		2,622		449
Orange SA		21,751		381
Pernod Ricard SA		1,855		207
Peugeot SA (f)		1,221		21
Publicis Groupe SA		1,269		89
Renault SA		2,122		211
Rexel SA		1,524		22
Safran SA		364		25
Sanofi		12,969		1,046
Schneider Electric SE		651		41
SES SA		2,416		71
Societe Generale SA		7,757		287
Societe Television Francaise 1		1,176		15
Sodexo SA		1,223		132
Suez Environnement Co.		4,193		77
Technip SA		933		52
Thales SA		1,262		111
Total SA		23,495		1,071
Unibail-Rodamco SE REIT		1,733		477
Vallourec SA		2,417		16
Veolia Environnement SA		5,613		135

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
France (cont'd)
Vinci SA		6,865	$	511
Vivendi SA		17,608		370
				11,012
Germany (2.6%)
Adidas AG		1,985		233
Allianz SE (Registered)		4,594		747
Axel Springer SE		168		9
BASF SE		11,348		856
Bayer AG (Registered)		7,722		908
Bayerische Motoren Werke AG		3,183		292
Beiersdorf AG		851		77
Commerzbank AG (f)		3,854		33
Continental AG		662		151
Daimler AG (Registered)		7,312		560
Deutsche Bank AG (Registered)		13,359		227
Deutsche Boerse AG		2,503		214
Deutsche Lufthansa AG (Registered) (f)		3,253		53
Deutsche Post AG (Registered)		6,139		171
Deutsche Telekom AG (Registered)		29,763		534
E.ON SE		18,317		176
Esprit Holdings Ltd. (f)(g)		12,583		12
Fraport AG Frankfurt Airport Services Worldwide		268		16
Fresenius Medical Care AG & Co., KGaA		1,810		160
Fresenius SE & Co., KGaA		3,586		262
Henkel AG & Co., KGaA		1,420		140
Henkel AG & Co., KGaA (Preference)		2,044		225
Infineon Technologies AG		12,031		171
K&S AG (Registered)		1,306		31
Lanxess AG		827		40
Linde AG		1,577		230
Merck KGaA		1,198		100
Metro AG		1,062		33
Muenchener Rueckversicherungs AG (Registered)		1,913		389
Osram Licht AG		765		39
Porsche Automobil Holding SE (Preference)		779		40
ProSiebenSat.1 Media SE (Registered)		1,826		94
QIAGEN N.V. (f)		2,514		56
RWE AG		3,402		44
SAP SE		10,369		839
Siemens AG (Registered)		8,575		909
Suedzucker AG		410		7
ThyssenKrupp AG		4,900		102
TUI AG		6,275		97
TUI AG		1,503		23
Volkswagen AG		290		42
Volkswagen AG (Preference)		1,666		212
Vonovia SE		544		20
				9,574
Greece (0.0%)
National Bank of Greece SA (f)		95		—	@

	Shares		Value (000)
Hong Kong (0.8%)
AIA Group Ltd.		67,200	$	381
Bank of East Asia Ltd. (The)		18,453		69
BOC Hong Kong Holdings Ltd.		36,500		109
Cheung Kong Property Holdings Ltd.		28,364		183
CK Hutchison Holdings Ltd.		28,364		368
CLP Holdings Ltd.		19,000		172
G-Resources Group Ltd.		81,000		2
Global Brands Group Holding Ltd. (f)		40,000		5
Hang Lung Group Ltd.		8,000		23
Hang Lung Properties Ltd.		22,000		42
Hang Seng Bank Ltd.		11,500		203
Henderson Land Development Co., Ltd.		16,274		100
Hong Kong & China Gas Co., Ltd.		57,977		108
Hong Kong Exchanges and Clearing Ltd.		11,101		267
Kerry Logistics Network Ltd.		3,500		5
Kerry Properties Ltd.		7,000		19
Link REIT		21,033		125
MTR Corp., Ltd.		16,169		80
New World Development Co., Ltd.		43,222		41
Power Assets Holdings Ltd.		14,500		148
Sands China Ltd.		28,400		116
Sino Land Co., Ltd.		24,070		38
Sun Hung Kai Properties Ltd.		15,504		190
Swire Pacific Ltd., Class A		6,500		70
Swire Properties Ltd.		4,550		12
Wharf Holdings Ltd. (The)		13,200		72
Wheelock & Co., Ltd.		10,000		45
				2,993
Ireland (0.0%)
CRH PLC		3,265		92
Italy (0.6%)
Assicurazioni Generali SpA		12,972		192
Atlantia SpA		6,690		186
Banco Popolare SC (f)		2,037		14
Enel Green Power SpA		11,984		26
Enel SpA		66,146		293
Eni SpA		25,302		383
Ferrari N.V. (f)		999		42
Finmeccanica SpA (f)		1,205		15
Intesa Sanpaolo SpA		102,574		284
Luxottica Group SpA		1,123		62
Mediobanca SpA		8,204		59
Prysmian SpA		1,210		27
Saipem SpA (f)		2,154		1
Snam SpA		23,281		146
Telecom Italia SpA (f)		104,580		113
Telecom Italia SpA		64,353		56
Terna Rete Elettrica Nazionale SpA		9,469		54
UniCredit SpA		34,395		124
Unione di Banche Italiane SpA		5,195		19
				2,096

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Japan (5.9%)
Advantest Corp.		1,600	$	15
Aeon Co., Ltd.		8,400		121
Aisin Seiki Co., Ltd.		2,800		106
Ajinomoto Co., Inc.		11,000		248
Asahi Glass Co., Ltd.		12,000		66
Asahi Group Holdings Ltd.		3,700		115
Asahi Kasei Corp.		19,000		128
Astellas Pharma, Inc.		19,000		253
Bank of Yokohama Ltd. (The)		15,000		69
Bridgestone Corp.		6,600		247
Canon, Inc.		10,400		310
Central Japan Railway Co.		1,700		301
Chiba Bank Ltd. (The)		10,000		50
Chubu Electric Power Co., Inc.		5,800		81
Chugai Pharmaceutical Co., Ltd.		3,400		105
Chugoku Electric Power Co., Inc. (The)		2,600		35
Dai Nippon Printing Co., Ltd.		8,000		71
Dai-ichi Life Insurance Co., Ltd. (The)		1,000		12
Daiichi Sankyo Co., Ltd.		6,800		151
Daikin Industries Ltd.		2,800		209
Daito Trust Construction Co., Ltd.		1,000		142
Daiwa House Industry Co., Ltd.		8,000		225
Daiwa Securities Group, Inc.		21,000		129
Denso Corp.		6,100		245
Dentsu, Inc.		2,200		110
East Japan Railway Co.		3,600		311
Eisai Co., Ltd.		2,800		168
Electric Power Development Co., Ltd.		1,900		59
FANUC Corp.		1,800		280
Fast Retailing Co., Ltd.		500		160
FUJIFILM Holdings Corp.		5,700		225
Fujitsu Ltd.		19,000		70
Hankyu Hanshin Holdings, Inc.		24,000		153
Hitachi Ltd.		47,000		220
Hokkaido Electric Power Co., Inc. (f)		2,900		24
Hokuriku Electric Power Co.		2,700		38
Honda Motor Co., Ltd.		1,100		30
Honda Motor Co., Ltd. ADR		13,695		374
Hoya Corp.		4,200		160
Ibiden Co., Ltd.		1,400		17
Inpex Corp.		4,200		32
Isetan Mitsukoshi Holdings Ltd.		3,700		43
Isuzu Motors Ltd.		500		5
ITOCHU Corp.		15,500		191
Japan Real Estate Investment Corp. REIT		12		69
Japan Steel Works Ltd. (The)		3,000		10
Japan Tobacco, Inc.		11,500		479
JFE Holdings, Inc.		4,600		62
JGC Corp.		2,000		30
JSR Corp.		2,100		30
JX Holdings, Inc.		2,800		11
Kansai Electric Power Co., Inc. (The) (f)		4,900		43

	Shares		Value (000)
Kao Corp.		5,900	$	315
Kawasaki Heavy Industries Ltd.		26,000		75
KDDI Corp.		22,500		601
Keikyu Corp.		7,000		62
Keio Corp.		7,000		61
Keyence Corp.		500		273
Kintetsu Group Holdings Co., Ltd.		29,000		118
Kirin Holdings Co., Ltd.		10,000		140
Kobe Steel Ltd.		49,000		43
Komatsu Ltd.		9,800		167
Konica Minolta, Inc.		3,500		30
Kubota Corp.		13,000		178
Kuraray Co., Ltd.		3,500		43
Kyocera Corp.		3,200		141
Kyushu Electric Power Co., Inc. (f)		2,700		26
LIXIL Group Corp.		3,900		80
Makita Corp.		1,100		68
Marubeni Corp.		21,000		106
Mazda Motor Corp.		3,400		53
Mitsubishi Chemical Holdings Corp.		15,500		81
Mitsubishi Corp.		12,800		217
Mitsubishi Electric Corp.		19,000		199
Mitsubishi Estate Co., Ltd.		12,000		223
Mitsubishi Heavy Industries Ltd.		37,000		137
Mitsubishi Motors Corp.		6,400		48
Mitsui & Co., Ltd.		19,300		222
Mitsui Fudosan Co., Ltd.		9,000		225
Mitsui OSK Lines Ltd.		12,000		24
Mizuho Financial Group, Inc.		144,700		216
MS&AD Insurance Group Holdings, Inc.		4,000		112
Murata Manufacturing Co., Ltd.		2,200		265
NGK Insulators Ltd.		3,000		55
Nidec Corp.		2,200		151
Nikon Corp.		3,500		54
Nintendo Co., Ltd.		1,000		142
Nippon Building Fund, Inc. REIT		12		71
Nippon Electric Glass Co., Ltd.		4,000		21
Nippon Express Co., Ltd.		15,000		68
Nippon Steel Sumitomo Metal Corp.		8,000		154
Nippon Telegraph & Telephone Corp.		11,200		482
Nippon Yusen KK		24,000		46
Nissan Motor Co., Ltd.		23,900		221
Nitto Denko Corp.		1,700		95
Nomura Holdings, Inc.		36,100		161
NSK Ltd.		7,000		64
NTT Data Corp.		2,100		105
NTT DoCoMo, Inc.		14,700		333
Odakyu Electric Railway Co., Ltd.		12,000		131
Oji Holdings Corp.		9,000		36
Olympus Corp.		2,400		93
Omron Corp.		1,900		57
Ono Pharmaceutical Co., Ltd.		5,000		212
Oriental Land Co., Ltd.		400		28

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Japan (cont'd)
ORIX Corp.		10,500	$	150
Osaka Gas Co., Ltd.		29,000		111
Otsuka Holdings Co., Ltd.		400		15
Panasonic Corp.		18,700		172
Rakuten, Inc.		10,000		96
Resona Holdings, Inc.		7,300		26
Ricoh Co., Ltd.		8,000		82
Rohm Co., Ltd.		800		34
Secom Co., Ltd.		2,100		156
Sekisui House Ltd.		8,000		135
Seven & I Holdings Co., Ltd.		8,400		358
Sharp Corp. (f)		10,000		12
Shikoku Electric Power Co., Inc.		3,800		51
Shin-Etsu Chemical Co., Ltd.		3,300		171
Shionogi & Co., Ltd.		4,400		207
Shiseido Co., Ltd.		4,500		100
Shizuoka Bank Ltd. (The)		10,000		72
SMC Corp.		600		139
SoftBank Group Corp.		7,400		353
Sompo Japan Nipponkoa Holdings, Inc.		400		11
Sony Corp.		900		23
Sony Corp. ADR		9,035		232
Sumitomo Chemical Co., Ltd.		15,000		68
Sumitomo Corp.		11,700		116
Sumitomo Electric Industries Ltd.		16,600		202
Sumitomo Metal Mining Co., Ltd.		6,000		60
Sumitomo Mitsui Financial Group, Inc.		13,000		394
Sumitomo Mitsui Trust Holdings, Inc.		30,000		88
Sumitomo Realty & Development Co., Ltd.		6,000		176
Suzuki Motor Corp.		4,200		112
T&D Holdings, Inc.		5,800		54
Takeda Pharmaceutical Co., Ltd.		7,400		338
TDK Corp.		1,000		56
Terumo Corp.		4,600		165
Tobu Railway Co., Ltd.		23,000		115
Tohoku Electric Power Co., Inc.		4,600		59
Tokio Marine Holdings, Inc.		4,900		165
Tokyo Electric Power Co., Inc. (f)		9,500		52
Tokyo Electron Ltd.		1,500		98
Tokyo Gas Co., Ltd.		26,000		121
Tokyu Corp.		12,000		101
Toppan Printing Co., Ltd.		8,000		67
Toray Industries, Inc.		19,000		162
Toshiba Corp. (f)		42,000		82
Toyota Industries Corp.		2,500		112
Toyota Motor Corp.		27,300		1,444
Trend Micro, Inc.		1,200		44
Unicharm Corp.		5,400		118
West Japan Railway Co.		2,300		142
Yahoo! Japan Corp.		19,100		81
Yamada Denki Co., Ltd.		9,500		45
Yamato Holdings Co., Ltd.		6,600		132
				21,842

	Shares		Value (000)
Kazakhstan (0.0%)
KAZ Minerals PLC (f)		2,888	$	7
Mexico (0.0%)
Primero Mining Corp. (f)		1,000		2
Netherlands (0.9%)
Akzo Nobel N.V.		4,425		302
ArcelorMittal		12,177		55
ASML Holding N.V.		2,788		283
CNH Industrial N.V.		6,659		45
Fiat Chrysler Automobiles N.V.		9,996		81
Fugro N.V. CVA (f)		657		13
Heineken N.V.		3,516		319
ING Groep N.V. CVA		50,218		607
Koninklijke Ahold N.V.		10,633		239
Koninklijke DSM N.V.		3,186		175
Koninklijke KPN N.V.		9,919		42
Koninklijke Philips N.V.		12,539		357
Koninklijke Vopak N.V.		1,006		50
PostNL N.V. (f)		4,654		19
Randstad Holding N.V.		2,468		137
RELX N.V.		1,152		20
TNT Express N.V.		4,151		37
Unilever N.V. CVA		14,384		645
Wolters Kluwer N.V.		354		14
				3,440
Nicaragua (0.0%)
B2Gold Corp. (f)		5,250		9
Norway (0.2%)
Akastor ASA (f)		1,833		2
Aker Solutions ASA		1,833		6
DNB ASA		12,978		153
Kvaerner ASA		1,677		1
Norsk Hydro ASA		13,781		57
Orkla ASA		10,248		93
REC Silicon ASA (f)		6,482		1
Seadrill Ltd. (f)		328		1
Statoil ASA		14,461		228
Subsea 7 SA (f)		3,127		24
Telenor ASA		17,155		277
Yara International ASA		2,039		77
				920
Peru (0.0%)
Cia de Minas Buenaventura SA ADR (f)		1,700		12
Poland (0.0%)
Jeronimo Martins SGPS SA		3,072		50
Portugal (0.0%)
Banco Espirito Santo SA (Registered) (f)(h)		192,146		—	@
Galp Energia SGPS SA		2,866		36
Pharol SGPS SA (Registered) (f)		11,841		2
				38

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
South Africa (0.2%)
AngloGold Ashanti Ltd. ADR (f)		2,350	$	32
Gold Fields Ltd. ADR		5,100		20
Harmony Gold Mining Co., Ltd. ADR (f)		2,550		9
SABMiller PLC		10,797		660
				721
Spain (1.8%)
Abertis Infraestructuras SA		12,358		203
ACS Actividades de Construccion y Servicios SA		3,511		105
Amadeus IT Holding SA, Class A		5,911		254
Banco Bilbao Vizcaya Argentaria SA		139,791		929
Banco de Sabadell SA		47,500		86
Banco Popular Espanol SA		7,319		19
Banco Santander SA		258,323		1,139
CaixaBank SA		26,805		79
Distribuidora Internacional de Alimentacion SA		18,498		96
Enagas SA		4,460		134
Ferrovial SA		6,878		148
Gas Natural SDG SA		5,948		120
Iberdrola SA		109,518		730
Industria de Diseno Textil SA		28,907		973
International Consolidated Airlines Group SA		23,949		191
Red Electrica Corp., SA		3,217		279
Repsol SA		17,809		201
Telefonica SA		76,567		858
				6,544
Sweden (1.0%)
Assa Abloy AB, Class B		11,003		217
Atlas Copco AB, Class A		10,720		270
Atlas Copco AB, Class B		7,174		169
Electrolux AB, Class B		2,950		78
Hennes & Mauritz AB, Class B		11,463		382
Husqvarna AB, Class B		5,449		40
Investor AB, Class B		12,330		437
Millicom International Cellular SA SDR		1,326		73
Modern Times Group MTG AB, Class B		443		13
Nordea Bank AB		29,588		284
Sandvik AB		15,296		158
Skandinaviska Enskilda Banken AB, Class A		15,950		152
Skanska AB, Class B		3,281		75
SKF AB, Class B		6,298		114
Svenska Cellulosa AB SCA, Class B		8,585		268
Svenska Handelsbanken AB, Class A		18,171		231
Swedbank AB, Class A		5,961		129
Swedish Match AB		4,201		143
Telefonaktiebolaget LM Ericsson, Class B		29,386		294
TeliaSonera AB		34,491		179
Volvo AB, Class B		10,054		110
				3,816
Switzerland (3.2%)
ABB Ltd. (Registered) (f)		40,038		780
Actelion Ltd. (Registered) (f)		1,177		176

	Shares		Value (000)
Adecco SA (Registered) (f)		2,873	$	187
Cie Financiere Richemont SA (Registered)		5,939		393
Credit Suisse Group AG (Registered) (f)		18,440		261
Geberit AG (Registered)		938		351
Givaudan SA (Registered)		109		214
Julius Baer Group Ltd. (f)		2,309		99
Kuehne & Nagel International AG (Registered)		732		104
LafargeHolcim Ltd. (Registered) (f)		882		41
LafargeHolcim Ltd. (Registered) (f)		4,228		199
Lonza Group AG (Registered) (f)		523		88
Nestle SA (Registered)		38,089		2,846
Novartis AG (Registered)		26,233		1,902
Roche Holding AG (Genusschein)		7,237		1,782
SGS SA (Registered)		60		127
Sonova Holding AG (Registered)		957		122
Swatch Group AG (The)		353		122
Swiss Re AG		1,746		161
Swisscom AG (Registered)		775		421
Syngenta AG (Registered)		1,023		426
Transocean Ltd.		3,245		29
UBS Group AG (Registered)		34,735		560
Zurich Insurance Group AG (f)		2,702		627
				12,018
Turkey (0.0%)
Alacer Gold Corp. (f)		1,500		3
United Kingdom (6.5%)
3i Group PLC		17,668		116
Admiral Group PLC		3,778		108
Aggreko PLC		2,431		38
Amec Foster Wheeler PLC		3,969		26
Anglo American PLC		12,293		97
ARM Holdings PLC		16,399		239
Associated British Foods PLC		1,859		89
AstraZeneca PLC		17,918		1,004
Aviva PLC		36,947		242
Babcock International Group PLC		4,000		55
BAE Systems PLC		54,763		400
Barclays PLC		185,011		399
BHP Billiton PLC		23,336		262
BP PLC		211,028		1,061
British American Tobacco PLC		19,566		1,149
British Land Co., PLC REIT		12,968		130
BT Group PLC		112,483		712
Burberry Group PLC		4,196		82
Cairn Energy PLC (f)		6,451		19
Capita PLC		6,586		99
Centrica PLC		58,184		190
Compass Group PLC		21,733		383
Diageo PLC		24,702		668
Experian PLC		12,755		228
G4S PLC		14,808		41
GlaxoSmithKline PLC		64,305		1,304

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
Glencore PLC (f)		79,703	$	180
HSBC Holdings PLC		183,906		1,146
Imperial Brands PLC		10,308		572
Indivior PLC		6,915		16
Inmarsat PLC		4,106		58
Intertek Group PLC		1,847		84
Investec PLC		9,538		70
ITV PLC		36,766		127
Johnson Matthey PLC		2,205		87
Land Securities Group PLC REIT		12,437		197
Legal & General Group PLC		71,568		242
Liberty Global PLC LiLAC, Class A (f)		107		4
Liberty Global PLC LiLAC Series C (f)		270		10
Lloyds Banking Group PLC		446,284		436
London Stock Exchange Group PLC		362		15
Lonmin PLC (f)		26		—	@
Man Group PLC		15,236		33
Marks & Spencer Group PLC		10,082		59
National Grid PLC		39,392		559
Next PLC		2,130		165
Old Mutual PLC		82,767		230
Paddy Power Betfair PLC		95		13
Pearson PLC		12,902		162
Petrofac Ltd.		3,181		42
Prudential PLC		34,715		649
Randgold Resources Ltd.		924		85
Reckitt Benckiser Group PLC		6,915		668
RELX PLC		4,910		91
Rio Tinto PLC		15,046		423
Rolls-Royce Holdings PLC (f)		36,285		355
Royal Bank of Scotland Group PLC (f)		20,621		66
Royal Dutch Shell PLC, Class A		54,966		1,329
Royal Dutch Shell PLC, Class B		31,687		774
RSA Insurance Group PLC		15,957		109
Serco Group PLC (f)		11,756		17
Shire PLC		6,159		350
Sky PLC		9,458		139
Smith & Nephew PLC		11,285		186
Smiths Group PLC		6,229		96
SSE PLC		18,883		405
Standard Chartered PLC		25,740		175
Standard Life PLC		15,169		78
Tesco PLC (f)		78,475		216
Tullow Oil PLC (f)		8,851		25
Unilever PLC		13,299		602
Vedanta Resources PLC		1,623		8
Verizon Communications, Inc.		25,900		1,400
Vodafone Group PLC		361,372		1,148
WM Morrison Supermarkets PLC		20,218		58
Wolseley PLC		3,525		199
WPP PLC		30,248		707
				24,006

	Shares		Value (000)
United States (22.0%)
3M Co.		1,411	$	235
Abbott Laboratories		4,282		179
AbbVie, Inc.		4,282		245
Abercrombie & Fitch Co., Class A		229		7
Accenture PLC, Class A		2,685		310
ACCO Brands Corp. (f)		104		1
Adobe Systems, Inc. (f)		2,713		254
ADT Corp. (The)		384		16
Advance Auto Parts, Inc.		229		37
Advanced Micro Devices, Inc. (f)		2,560		7
AES Corp.		673		8
Aetna, Inc.		1,946		219
Aflac, Inc.		281		18
Agilent Technologies, Inc.		1,499		60
Air Products & Chemicals, Inc.		257		37
Airgas, Inc.		274		39
Akamai Technologies, Inc. (f)		1,062		59
Alamos Gold, Inc., Class A		1,600		8
Alcoa, Inc.		2,730		26
Alexion Pharmaceuticals, Inc. (f)		1,051		146
Allegheny Technologies, Inc.		515		8
Allegion PLC		232		15
Allergan PLC (f)		849		228
Allstate Corp. (The)		623		42
Alpha Natural Resources, Inc. (f)		944		—	@
Alphabet, Inc., Class A (f)		1,313		1,002
Alphabet, Inc., Class C (f)		1,317		981
Altria Group, Inc.		6,866		430
Amazon.com, Inc. (f)		1,210		718
AMC Networks, Inc., Class A (f)		21		1
Ameren Corp.		1,702		85
American Electric Power Co., Inc.		3,124		207
American Express Co.		2,751		169
American Tower Corp. REIT		2,720		278
Ameriprise Financial, Inc.		1,589		149
AmerisourceBergen Corp.		2,531		219
AMETEK, Inc.		776		39
Amgen, Inc.		4,097		614
Amphenol Corp., Class A		292		17
Anadarko Petroleum Corp.		2,221		103
Analog Devices, Inc.		2,807		166
Annaly Capital Management, Inc. REIT		1,578		16
Anthem, Inc.		1,317		183
Aon PLC		200		21
Apache Corp.		1,974		96
Apollo Education Group, Inc., Class A (f)		616		5
Apple, Inc.		38,273		4,171
Applied Materials, Inc.		5,359		114
Archer-Daniels-Midland Co.		2,323		84
AT&T, Inc.		31,763		1,244
Automatic Data Processing, Inc.		1,310		118
AutoZone, Inc. (f)		237		189

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
AvalonBay Communities, Inc. REIT		1,107	$	211
Avery Dennison Corp.		1,188		86
Avon Products, Inc.		3,795		18
Baker Hughes, Inc.		2,755		121
Ball Corp.		679		48
Bank of America Corp.		94,980		1,284
Bank of New York Mellon Corp. (The)		7,664		282
Baxalta, Inc.		3,060		124
Baxter International, Inc.		3,060		126
BB&T Corp.		6,920		230
Becton Dickinson and Co.		1,442		219
Bed Bath & Beyond, Inc. (f)		1,120		56
Berkshire Hathaway, Inc., Class B (f)		634		90
Best Buy Co., Inc.		1,086		35
Biogen, Inc. (f)		1,164		303
Blackhawk Network Holdings, Inc. (f)		53		2
BlackRock, Inc.		847		288
Boeing Co. (The)		2,479		315
Boston Properties, Inc. REIT		1,066		135
Boston Scientific Corp. (f)		7,867		148
Bristol-Myers Squibb Co.		5,919		378
Broadcom Ltd.		1,309		202
Brookfield Property Partners LP		2,480		57
Brown-Forman Corp., Class B		31		3
Bunge Ltd.		626		35
C.H. Robinson Worldwide, Inc.		987		73
CA, Inc.		1,395		43
Cablevision Systems Corp.		2,102		69
California Resources Corp.		3,015		3
Cameron International Corp. (f)		1,263		85
Campbell Soup Co.		222		14
Capital One Financial Corp.		2,637		183
Cardinal Health, Inc.		2,401		197
Care Capital Properties, Inc. REIT		161		4
CarMax, Inc. (f)		657		34
Carnival Corp.		1,529		81
Caterpillar, Inc.		3,207		245
CBRE Group, Inc., Class A (f)		4,169		120
CBS Corp., Class B		4,271		235
CDK Global, Inc.		570		27
Celanese Corp. Series A		220		14
Celgene Corp. (f)		3,812		382
CenterPoint Energy, Inc.		3,296		69
CenturyLink, Inc.		2,670		85
Cerner Corp. (f)		1,532		81
CF Industries Holdings, Inc.		2,360		74
Charles Schwab Corp. (The)		4,773		134
Chemours Co. (The)		294		2
Chesapeake Energy Corp.		3,364		14
Chevron Corp.		6,795		648
Chipotle Mexican Grill, Inc. (f)		223		105
Chubb Ltd.		158		19

	Shares		Value (000)
Cigna Corp.		1,586	$	218
Cintas Corp.		1,054		95
Cisco Systems, Inc.		30,672		873
CIT Group, Inc.		1,795		56
Citigroup, Inc.		20,062		838
Citizens Financial Group, Inc.		1,600		34
Citrix Systems, Inc. (f)		1,209		95
Cliffs Natural Resources, Inc. (f)		737		2
Clorox Co. (The)		1,019		128
CME Group, Inc.		211		20
Coach, Inc.		1,193		48
Coca-Cola Co.		20,851		967
Coca-Cola Enterprises, Inc.		1,245		63
Coeur Mining, Inc. (f)		900		5
Cognizant Technology Solutions Corp., Class A (f)		3,808		239
Colgate-Palmolive Co.		6,254		442
Columbia Pipeline Group, Inc.		64		2
Comcast Corp., Class A		11,519		704
Comerica, Inc.		722		27
ConAgra Foods, Inc.		2,243		100
Concho Resources, Inc. (f)		560		57
ConocoPhillips		5,185		209
CONSOL Energy, Inc.		1,309		15
Consolidated Edison, Inc.		1,506		115
Constellation Brands, Inc., Class A		233		35
Corning, Inc.		3,204		67
Costco Wholesale Corp.		4,131		651
CR Bard, Inc.		631		128
Crimson Wine Group Ltd. (f)		181		2
Crown Castle International Corp. REIT		1,996		173
Crown Holdings, Inc. (f)		580		29
CST Brands, Inc.		219		8
CSX Corp.		4,558		117
Cummins, Inc.		1,261		139
CVS Health Corp.		1,121		116
Danaher Corp.		597		57
Darden Restaurants, Inc.		604		40
DaVita HealthCare Partners, Inc. (f)		1,052		77
Deere & Co.		2,018		155
Denbury Resources, Inc.		704		2
Devon Energy Corp.		1,542		42
DeVry Education Group, Inc.		21		—	@
Diamond Offshore Drilling, Inc.		43		1
Discover Financial Services		2,439		124
Discovery Communications, Inc., Class A (f)		1,182		34
Discovery Communications, Inc., Class C (f)		2,888		78
Dollar General Corp.		186		16
Dollar Tree, Inc. (f)		633		52
Dominion Resources, Inc.		4,103		308
Dover Corp.		226		15
Dow Chemical Co. (The)		1,500		76
Dr. Pepper Snapple Group, Inc.		771		69
DTE Energy Co.		1,130		102

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Duke Energy Corp.		3,182	$	257
Dun & Bradstreet Corp. (The)		606		62
Eastman Chemical Co.		262		19
Eaton Corp., PLC		1,568		98
eBay, Inc. (f)		5,467		130
Ecolab, Inc.		1,108		124
Edison International		2,687		193
Edwards Lifesciences Corp. (f)		442		39
EI du Pont de Nemours & Co.		1,212		77
Eli Lilly & Co.		3,253		234
EMC Corp.		11,847		316
Emerson Electric Co.		3,285		179
Engility Holdings, Inc. (f)		18		—	@
Entergy Corp.		1,050		83
EOG Resources, Inc.		2,992		217
EQT Corp.		719		48
Equifax, Inc.		1,101		126
Equity Residential REIT		2,033		153
Estee Lauder Cos., Inc. (The), Class A		2,139		202
Exelon Corp.		5,150		185
Expedia, Inc.		232		25
Expeditors International of Washington, Inc.		636		31
Express Scripts Holding Co. (f)		4,576		314
Exxon Mobil Corp.		16,866		1,410
Fastenal Co.		1,311		64
FedEx Corp.		1,254		204
Fidelity National Information Services, Inc.		111		7
Fifth Third Bancorp		8,631		144
First Republic Bank		400		27
First Solar, Inc. (f)		275		19
FirstEnergy Corp.		2,436		88
Fiserv, Inc. (f)		1,076		110
Flowserve Corp.		760		34
Fluor Corp.		606		33
FMC Corp.		742		30
FMC Technologies, Inc. (f)		1,681		46
Ford Motor Co.		6,859		93
Four Corners Property Trust, Inc.		274		5
Franklin Resources, Inc.		2,478		97
Freeport-McMoRan, Inc.		1,960		20
Frontier Communications Corp.		6,587		37
GameStop Corp., Class A		516		16
Gannett Co., Inc.		116		2
Gap, Inc. (The)		1,136		33
General Dynamics Corp.		1,001		132
General Electric Co.		15,158		482
General Growth Properties, Inc. REIT		1,006		30
General Mills, Inc.		3,384		214
Genuine Parts Co.		111		11
Gilead Sciences, Inc.		6,330		581
Goldman Sachs Group, Inc. (The)		4,372		686
Grifols SA		5,062		113

	Shares		Value (000)
Grifols SA, (Preference) Class B		252	$	4
H&R Block, Inc.		2,497		66
Halliburton Co.		4,778		171
Halyard Health, Inc. (f)		435		13
Harman International Industries, Inc.		43		4
Harris Corp.		23		2
Hartford Financial Services Group, Inc. (The)		228		11
Hasbro, Inc.		176		14
HCP, Inc. REIT		1,226		40
Hecla Mining Co.		2,400		7
Helmerich & Payne, Inc.		740		43
Henry Schein, Inc. (f)		560		97
Hershey Co. (The)		628		58
Hess Corp.		1,079		57
Hewlett Packard Enterprise Co.		7,876		140
Hologic, Inc. (f)		1,136		39
Home Depot, Inc.		991		132
Honeywell International, Inc.		3,440		385
Host Hotels & Resorts, Inc. REIT		5,851		98
HP, Inc.		7,876		97
Humana, Inc.		584		107
Huntington Bancshares, Inc.		3,180		30
Huntington Ingalls Industries, Inc.		59		8
IAMGOLD Corp. (f)		2,200		5
IHS, Inc., Class A (f)		652		81
Illinois Tool Works, Inc.		1,684		173
Illumina, Inc. (f)		622		101
Ingersoll-Rand PLC		887		55
Intel Corp.		13,346		432
Intercontinental Exchange, Inc.		558		131
International Business Machines Corp.		5,471		829
International Flavors & Fragrances, Inc.		233		27
International Game Technology PLC		499		9
International Paper Co.		610		25
Interpublic Group of Cos., Inc. (The)		3,411		78
Intuit, Inc.		2,302		239
Intuitive Surgical, Inc. (f)		615		370
Invesco Ltd.		2,741		84
Iron Mountain, Inc. REIT		1,878		64
ITT Corp.		219		8
Jabil Circuit, Inc.		222		4
Jacobs Engineering Group, Inc. (f)		711		31
Janus Capital Group, Inc.		111		2
JB Hunt Transport Services, Inc.		228		19
JC Penney Co., Inc. (f)		222		2
JM Smucker Co. (The)		659		86
Johnson & Johnson		10,098		1,093
Johnson Controls, Inc.		1,468		57
Joy Global, Inc.		231		4
JPMorgan Chase & Co.		39,357		2,331
Juniper Networks, Inc.		4,111		105
KBR, Inc.		862		13
Kellogg Co.		1,360		104

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares			Value (000)
United States (cont'd)
KeyCorp		10,285		$	114
Keysight Technologies, Inc. (f)		949			26
Kimberly-Clark Corp.		2,707			364
Kimco Realty Corp. REIT		1,639			47
KLA-Tencor Corp.		749			55
Knowles Corp. (f)		113			1
Kohl's Corp.		1,289			60
Kraft Heinz Co. (The)		2,035			160
Kroger Co. (The)		9,250			354
L Brands, Inc.		1,451			127
L-3 Communications Holdings, Inc.		111			13
Laboratory Corp. of America Holdings (f)		629			74
Lam Research Corp.		622			51
Las Vegas Sands Corp.		1,355			70
Legg Mason, Inc.		1,304			45
Leucadia National Corp.		1,532			25
Lexmark International, Inc., Class A		111			4
Li & Fung Ltd. (g)		40,000			24
Liberty Global PLC, Class A (f)		1,561			60
Liberty Global PLC Series C (f)		4,089			154
Liberty Property Trust REIT		509			17
Linear Technology Corp.		1,239			55
Lockheed Martin Corp.		743			165
Loews Corp.		566			22
Lowe's Cos., Inc.		4,433			336
LyondellBasell Industries N.V., Class A		714			61
M&T Bank Corp.		1,392			155
Macerich Co. (The) REIT		267			21
Macy's, Inc.		173			8
Mallinckrodt PLC (f)		224			14
Manpowergroup, Inc.		1,079			88
Marathon Oil Corp.		2,665			30
Marathon Petroleum Corp.		2,846			106
Marriott International, Inc., Class A		1,265			90
Marriott Vacations Worldwide Corp.		194			13
Marsh & McLennan Cos., Inc.		566			34
Marvell Technology Group Ltd.		2,129			22
Mastercard, Inc., Class A		6,820			645
Mattel, Inc.		1,105			37
Maxim Integrated Products, Inc.		1,210			45
McDonald's Corp.		3,682			463
McGraw Hill Financial, Inc.		2,295			227
McKesson Corp.		1,281	��		201
Mead Johnson Nutrition Co.		1,173			100
Medtronic PLC		6,392			479
Merck & Co., Inc.		10,669			565
MetLife, Inc.		730			32
MGM Resorts International (f)		1,654			35
Microchip Technology, Inc.		683			33
Micron Technology, Inc. (f)		3,786			40
Microsoft Corp.		27,520			1,520
Molson Coors Brewing Co., Class B		1,047			101

	Shares		Value (000)
Mondelez International, Inc., Class A		5,818	$	233
Monsanto Co.		1,986		174
Moody's Corp.		1,015		98
Mosaic Co. (The)		1,148		31
Motorola Solutions, Inc.		1,049		79
Murphy Oil Corp.		774		20
Murphy USA, Inc. (f)		228		14
Mylan N.V. (f)		1,341		62
NASDAQ, Inc.		1,992		132
National Oilwell Varco, Inc.		2,839		88
Navient Corp.		3,730		45
NetApp, Inc.		2,476		68
Netflix, Inc. (f)		1,215		124
NetScout Systems, Inc. (f)		5,193		119
New York Community Bancorp, Inc.		4,501		72
Newfield Exploration Co. (f)		616		20
Newmont Mining Corp.		3,481		93
News Corp., Class A		2,751		35
News Corp., Class B		605		8
NextEra Energy, Inc.		2,267		268
NIKE, Inc., Class B		4,512		277
NiSource, Inc.		64		2
Noble Corp., PLC		731		8
Noble Energy, Inc.		2,090		66
Nordstrom, Inc.		210		12
Norfolk Southern Corp.		2,690		224
Northern Trust Corp.		33		2
Northrop Grumman Corp.		709		140
NOW, Inc. (f)		707		13
Nucor Corp.		726		34
NVIDIA Corp.		2,516		90
O'Reilly Automotive, Inc. (f)		893		244
Occidental Petroleum Corp.		5,137		352
Omnicom Group, Inc.		1,481		123
ONE Gas, Inc.		622		38
ONEOK, Inc.		1,970		59
Oracle Corp.		16,981		695
Owens-Illinois, Inc. (f)		242		4
PACCAR, Inc.		2,026		111
Paragon Offshore PLC (f)		303		—	@
Patterson Cos., Inc.		176		8
Paychex, Inc.		1,293		70
PayPal Holdings, Inc. (f)		5,467		211
Peabody Energy Corp.		168		—	@
Pentair PLC		189		10
People's United Financial, Inc.		1,647		26
PepsiCo, Inc.		5,157		529
Perrigo Co., PLC		221		28
Pfizer, Inc.		21,359		633
PG&E Corp.		2,397		143
Philip Morris International, Inc.		5,850		574
Phillips 66		2,753		238
Pioneer Natural Resources Co.		882		124

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Pitney Bowes, Inc.		1,981	$	43
PNC Financial Services Group, Inc. (The)		4,609		390
PPG Industries, Inc.		424		47
PPL Corp.		3,102		118
Praxair, Inc.		1,169		134
Priceline Group, Inc. (The) (f)		238		307
Procter & Gamble Co. (The)		14,538		1,197
Progressive Corp. (The)		239		8
ProLogis, Inc. REIT		2,749		121
Prudential Financial, Inc.		200		14
Public Service Enterprise Group, Inc.		3,024		143
Public Storage REIT		1,966		542
QEP Resources, Inc.		1,023		14
QUALCOMM, Inc.		9,036		462
Quest Diagnostics, Inc.		830		59
Ralph Lauren Corp.		47		5
Range Resources Corp.		1,047		34
Rayonier Advanced Materials, Inc.		175		2
Rayonier, Inc. REIT		505		12
Raytheon Co.		834		102
Regency Centers Corp. REIT		231		17
Regions Financial Corp.		14,509		114
Republic Services, Inc.		2,138		102
Reynolds American, Inc.		5,092		256
Robert Half International, Inc.		1,300		61
Rockwell Automation, Inc.		1,202		137
Rockwell Collins, Inc.		702		65
Roper Technologies, Inc.		236		43
Ross Stores, Inc.		2,090		121
Rouse Properties, Inc. REIT		71		1
Royal Caribbean Cruises Ltd.		1,218		100
Royal Gold, Inc.		400		21
RR Donnelley & Sons Co.		2,094		34
Salesforce.com, Inc. (f)		3,126		231
SanDisk Corp.		1,998		152
Schlumberger Ltd.		7,705		568
Scripps Networks Interactive, Inc., Class A		661		43
Sealed Air Corp.		267		13
Sempra Energy		1,523		158
Seventy Seven Energy, Inc. (f)		275		—	@
Sherwin-Williams Co. (The)		61		17
Sibanye Gold Ltd. ADR		1,400		21
Signature Bank (f)		200		27
Simon Property Group, Inc. REIT		3,248		675
SLM Corp. (f)		3,730		24
Southern Co. (The)		4,770		247
Southwest Airlines Co.		558		25
Southwestern Energy Co. (f)		2,422		20
Spectra Energy Corp.		3,142		96
Sprint Corp. (f)		16,534		58
St. Jude Medical, Inc.		2,306		127
Stanley Black & Decker, Inc.		238		25

	Shares		Value (000)
Staples, Inc.		4,118	$	45
Starbucks Corp.		6,634		396
Starwood Hotels & Resorts Worldwide, Inc.		664		55
State Street Corp.		2,148		126
Stericycle, Inc. (f)		597		75
Stryker Corp.		1,947		209
SunTrust Banks, Inc.		5,117		185
Symantec Corp.		4,512		83
Sysco Corp.		4,952		231
T-Mobile US, Inc. (f)		116		4
T. Rowe Price Group, Inc.		2,211		162
Tahoe Resources, Inc.		1,350		14
Talen Energy Corp. (f)		544		5
Target Corp.		1,598		131
TE Connectivity Ltd.		2,000		124
TEGNA, Inc.		233		5
Tenaris SA		4,172		52
Tenet Healthcare Corp. (f)		131		4
Texas Instruments, Inc.		7,875		452
Textron, Inc.		1,262		46
Thermo Fisher Scientific, Inc.		2,004		284
Tiffany & Co.		241		18
Time Warner Cable, Inc.		2,329		477
Time Warner, Inc.		4,559		331
Time, Inc.		631		10
TJX Cos., Inc. (The)		3,080		241
Travelers Cos., Inc. (The)		608		71
TripAdvisor, Inc. (f)		232		15
Twenty-First Century Fox, Inc., Class A		10,595		295
Twenty-First Century Fox, Inc., Class B		2,382		67
Tyco International PLC		1,059		39
Tyson Foods, Inc., Class A		1,668		111
Ultra Petroleum Corp. (f)		970		—	@
Union Pacific Corp.		3,010		239
United Parcel Service, Inc., Class B		2,580		272
United States Steel Corp.		521		8
United Technologies Corp.		1,973		198
UnitedHealth Group, Inc.		3,422		441
Urban Edge Properties REIT		154		4
Urban Outfitters, Inc. (f)		186		6
US Bancorp		15,903		646
Valero Energy Corp.		2,631		169
Varian Medical Systems, Inc. (f)		697		56
Vectrus, Inc. (f)		12		—	@
Ventas, Inc. REIT		627		39
Verisk Analytics, Inc. (f)		1,328		106
Veritiv Corp. (f)		15		1
Vertex Pharmaceuticals, Inc. (f)		622		49
VF Corp.		1,722		112
Viacom, Inc., Class B		2,723		112
Visa, Inc., Class A		8,758		670
Vornado Realty Trust REIT		209		20
Wal-Mart Stores, Inc.		14,951		1,024

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Walgreens Boots Alliance, Inc.		7,268	$	612
Walt Disney Co. (The)		7,284		723
Waste Management, Inc.		2,689		159
Waters Corp. (f)		221		29
Weatherford International PLC (f)		3,196		25
WEC Energy Group, Inc.		2,250		135
Wells Fargo & Co.		43,867		2,121
Welltower, Inc. REIT		597		41
Western Union Co. (The)		4,149		80
WestRock Co.		180		7
Weyerhaeuser Co. REIT		2,519		78
Whole Foods Market, Inc.		3,086		96
Williams Cos., Inc. (The)		5,531		89
WP GLIMCHER, Inc. REIT		1,674		16
WPX Energy, Inc. (f)		2,665		19
WW Grainger, Inc.		568		133
Wyndham Worldwide Corp.		208		16
Wynn Resorts Ltd.		620		58
Xcel Energy, Inc.		3,056		128
Xerox Corp.		4,136		46
Xilinx, Inc.		1,248		59
Xylem, Inc.		1,278		52
Yahoo!, Inc. (f)		4,549		167
Yum! Brands, Inc.		2,459		201
Zimmer Biomet Holdings, Inc.		1,277		136
Zions Bancorporation		222		5
Zoetis, Inc.		6,694		297
				81,464
Total Common Stocks (Cost $168,876)				200,470
Investment Companies (0.1%)
United States (0.1%)
iShares MSCI Emerging Markets Index Fund		8,000		274
Morgan Stanley Institutional Fund, Inc. — Emerging Markets Portfolio (See Note G)		4,948		102
Total Investment Companies (Cost $500)				376
	No. of Rights
Rights (0.0%)
United States (0.0%)
Safeway Casa Ley CVR (f)		577		1
Safeway PDC, LLC CVR (f)		577		—	@
Total Rights (Cost $1)				1
	No. of Warrants
Warrant (0.0%)
France (0.0%)
Peugeot SA, expires 4/29/17 (f) (Cost $2)		1,221		4

	Notional Amount (000)		Value (000)
Call Options Purchased (0.1%)
China (0.1%)
USD/CNH October 2016 @ CNH 6.75, Citibank NA		4,590	$	59
USD/CNH October 2016 @ CNH 6.75, Goldman Sachs International		3,550		46
USD/CNH October 2016 @ CNH 6.75, JPMorgan Chase Bank NA		7,490		97
Total Call Options Purchased (Cost $301)				202
	Shares
Short-Term Investments (2.9%)
Investment Company (1.8%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $6,821)		6,821,210		6,821
	Face Amount (000)
U.S. Treasury Security (1.1%)
U.S. Treasury Bill, 0.51%, 6/9/16 (j)(k) (Cost $3,891)	$	3,895		3,894
Total Short-Term Investments (Cost $10,712)				10,715
Total Investments (99.4%) (Cost $331,860) (l)(m)				367,472
Other Assets in Excess of Liabilities (0.6%)				2,466
Total Written Options Outstanding (-0.0%) (Premiums received $161)				(82	)
Net Assets (100.0%)			$	369,856

(a) Security is subject to delayed delivery.

(b) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 31, 2016.

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

(d) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of March 31, 2016.

(e) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2016. Maturity date disclosed is the ultimate maturity date.

(f) Non-income producing security.

(g) Security trades on the Hong Kong exchange.

(h) Security has been deemed illiquid at March 31, 2016.

(i) At March 31, 2016, the Portfolio held a fair valued security valued at approximately $1,000, representing less than 0.05% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund's Trustees.

(j) Rate shown is the yield to maturity at March 31, 2016.

(k) 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.
20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

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

(m) At March 31, 2016, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $56,053,000 and the aggregate gross unrealized depreciation is approximately $20,441,000 resulting in net unrealized appreciation of approximately $35,612,000.

@ Value is less than $500.

ADR American Depositary Receipt.

CDI CHESS Depositary Interest.

CVA Certificaten Van Aandelen.

IO Interest Only.

MTN Medium Term Note.

OAT Obligations Assimilables du Trésor (French Treasury Obligation).

REIT Real Estate Investment Trust.

REMIC Real Estate Mortgage Investment Conduit.

SDR Swedish Depositary Receipt.

TBA To Be Announced.

Call Options Written:

The Portfolio had the following call options written open at March 31, 2016:

Counterparty	Notional Amount (000)		Description	Strike Price		Expiration Date	Value (000)
Citibank NA		4,590	USD/CNH (Premiums received $49)	CNH	7.25	Oct-16	$	(24	)
Goldman Sachs International		3,550	USD/CNH (Premiums received $39)		7.25	Oct-16		(19	)
JPMorgan Chase Bank NA		7,490	USD/CNH (Premiums received $73)		7.25	Oct-16		(39	)
							$	(82	)

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at March 31, 2016:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Citibank NA	$	1,032	EUR	919	4/5/16	$	14
HSBC Bank PLC	AUD	2,111	$	1,506	4/5/16		(112	)
HSBC Bank PLC	BRL	1,199	$	328	4/5/16		(5	)
HSBC Bank PLC	BRL	918	$	251	4/5/16		(4	)
HSBC Bank PLC	CAD	837	MXN	11,200	4/5/16		3
HSBC Bank PLC	EUR	334	$	372	4/5/16		(7	)
HSBC Bank PLC	GBP	415	EUR	532	4/5/16		9
HSBC Bank PLC	GBP	252	$	352	4/5/16		(10	)
HSBC Bank PLC	GBP	325	$	453	4/5/16		(14	)
HSBC Bank PLC	JPY	487,401	$	4,333	4/5/16		2
HSBC Bank PLC	JPY	122,780	$	1,091	4/5/16		(—	@)
HSBC Bank PLC	MXN	11,800	JPY	74,423	4/5/16		(22	)
HSBC Bank PLC	MXN	31,427	$	1,748	4/5/16		(71	)
HSBC Bank PLC	SEK	2,850	EUR	305	4/5/16		(4	)
HSBC Bank PLC	$	572	AUD	779	4/5/16		25
HSBC Bank PLC	$	1,560	AUD	2,044	4/5/16		6
HSBC Bank PLC	$	380	DKK	2,500	4/5/16		2
HSBC Bank PLC	$	4,742	EUR	4,369	4/5/16		229
HSBC Bank PLC	$	12	EUR	11	4/5/16		—	@
HSBC Bank PLC	$	251	JPY	28,000	4/5/16		(2	)
HSBC Bank PLC	$	884	SEK	7,612	4/5/16		54
HSBC Bank PLC	$	77	SEK	625	4/5/16		—	@
HSBC Bank PLC	$	242	SGD	340	4/5/16		10
HSBC Bank PLC	$	653	ZAR	9,700	4/5/16		4
JPMorgan Chase Bank NA	CAD	1,210	$	897	4/5/16		(34	)
JPMorgan Chase Bank NA	EUR	599	PLN	2,600	4/5/16		15
JPMorgan Chase Bank NA	GBP	85	EUR	109	4/5/16		2
JPMorgan Chase Bank NA	JPY	4,166	$	37	4/5/16		(—	@)
JPMorgan Chase Bank NA	JPY	29,935	$	263	4/5/16		(3	)
JPMorgan Chase Bank NA	$	76	GBP	54	4/5/16		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	$	27	JPY	3,060	4/5/16	$	(—	@)
JPMorgan Chase Bank NA	$	1,338	KRW	1,658,797	4/5/16		113
JPMorgan Chase Bank NA	$	381	MYR	1,600	4/5/16		29
JPMorgan Chase Bank NA	$	320	NOK	2,670	4/5/16		2
JPMorgan Chase Bank NA	$	700	NZD	1,046	4/5/16		23
JPMorgan Chase Bank NA	$	16	PLN	66	4/5/16		1
JPMorgan Chase Bank NA	$	368	THB	13,100	4/5/16		5
JPMorgan Chase Bank NA	$	82	ZAR	1,294	4/5/16		5
UBS AG	BRL	2,360	$	641	4/5/16		(15	)
UBS AG	CAD	7	$	5	4/5/16		(—	@)
UBS AG	EUR	665	CHF	720	4/5/16		(8	)
UBS AG	EUR	573	NOK	5,400	4/5/16		—	@
UBS AG	EUR	297	$	325	4/5/16		(13	)
UBS AG	KRW	1,658,797	$	1,454	4/5/16		4
UBS AG	MYR	1,600	$	413	4/5/16		3
UBS AG	NZD	5,032	$	3,318	4/5/16		(160	)
UBS AG	PLN	5,572	$	1,417	4/5/16		(76	)
UBS AG	$	1,258	BRL	4,477	4/5/16		(14	)
UBS AG	$	214	CHF	214	4/5/16		8
UBS AG	$	259	EUR	238	4/5/16		12
UBS AG	$	1,430	EUR	1,295	4/5/16		44
UBS AG	$	30	EUR	27	4/5/16		1
UBS AG	$	9,716	JPY	1,103,345	4/5/16		88
UBS AG	$	217	NOK	1,882	4/5/16		10
UBS AG	ZAR	737	$	47	4/5/16		(3	)
UBS AG	ZAR	2,353	$	152	4/5/16		(7	)
Citibank NA	$	364	BRL	1,348	4/20/16		9
Citibank NA	$	1,345	BRL	4,984	4/20/16		35
Bank of America NA	CHF	5,091	$	5,168	4/21/16		(130	)
Bank of America NA	EUR	504	$	575	4/21/16		—	@
Bank of America NA	EUR	1,562	$	1,735	4/21/16		(43	)
Bank of America NA	GBP	290	$	418	4/21/16		1
Bank of America NA	GBP	318	$	451	4/21/16		(6	)
Bank of America NA	JPY	175,333	$	1,555	4/21/16		(3	)
Bank of America NA	NOK	3,381	$	395	4/21/16		(14	)
Bank of America NA	PLN	1,176	$	315	4/21/16		—	@
Bank of America NA	SEK	4,036	$	498	4/21/16		1
Bank of America NA	$	596	CHF	571	4/21/16		(2	)
Bank of America NA	$	3,087	HKD	23,948	4/21/16		1
Bank of America NA	$	114	MXN	2,042	4/21/16		4
Bank of America NA	$	323	PLN	1,251	4/21/16		12
Bank of America NA	$	2,389	SEK	19,869	4/21/16		60
Bank of Montreal	AUD	185	$	138	4/21/16		(4	)
Bank of Montreal	CAD	530	$	408	4/21/16		1
Bank of Montreal	CAD	912	$	682	4/21/16		(20	)
Bank of Montreal	TRY	703	$	248	4/21/16		(—	@)
Bank of Montreal	$	77	ILS	299	4/21/16		3
Bank of Montreal	$	1,101	TRY	3,218	4/21/16		35
Bank of New York Mellon	CHF	671	$	682	4/21/16		(16	)
Bank of New York Mellon	$	78	SEK	643	4/21/16		2
Barclays Bank PLC	AUD	1,680	$	1,289	4/21/16		2
Barclays Bank PLC	AUD	554	$	412	4/21/16		(12	)
Barclays Bank PLC	EUR	2,843	$	3,193	4/21/16		(44	)
Barclays Bank PLC	$	105	SGD	145	4/21/16		3
BNP Paribas SA	$	692	CLP	474,327	4/21/16		15
Citibank NA	GBP	1,956	$	2,771	4/21/16		(39	)
Citibank NA	JPY	44,900	$	399	4/21/16		—	@
Citibank NA	JPY	254,842	$	2,261	4/21/16		(5	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Citibank NA	MYR	2,403	$	622	4/21/16	$	7
Citibank NA	NOK	9,183	$	1,112	4/21/16		2
Citibank NA	$	822	KRW	983,316	4/21/16		37
Citibank NA	$	6,645	MYR	27,450	4/21/16		381
Citibank NA	$	664	THB	23,318	4/21/16		(2	)
Credit Suisse International	CHF	723	$	734	4/21/16		(18	)
Credit Suisse International	EUR	5,816	$	6,469	4/21/16		(152	)
Credit Suisse International	THB	13,567	$	386	4/21/16		1
Credit Suisse International	$	1,350	ILS	5,262	4/21/16		51
Credit Suisse International	$	100	NZD	151	4/21/16		5
Credit Suisse International	$	342	THB	12,010	4/21/16		(1	)
Goldman Sachs International	EUR	3,869	$	4,304	4/21/16		(101	)
Goldman Sachs International	GBP	994	$	1,408	4/21/16		(20	)
Goldman Sachs International	HKD	31,735	$	4,092	4/21/16		—	@
Goldman Sachs International	JPY	536,332	$	4,757	4/21/16		(11	)
Goldman Sachs International	MXN	15,457	$	896	4/21/16		3
Goldman Sachs International	$	653	HUF	182,702	4/21/16		9
JPMorgan Chase Bank NA	CHF	3,644	$	3,704	4/21/16		(89	)
JPMorgan Chase Bank NA	GBP	255	$	361	4/21/16		(5	)
JPMorgan Chase Bank NA	IDR	6,492,435	$	494	4/21/16		5
JPMorgan Chase Bank NA	INR	97,161	$	1,465	4/21/16		3
JPMorgan Chase Bank NA	KRW	3,316,828	$	2,907	4/21/16		8
JPMorgan Chase Bank NA	KRW	2,662,654	$	2,205	4/21/16		(122	)
JPMorgan Chase Bank NA	MYR	3,402	$	817	4/21/16		(54	)
JPMorgan Chase Bank NA	MYR	19,279	$	4,641	4/21/16		(294	)
JPMorgan Chase Bank NA	RUB	49,599	$	733	4/21/16		(1	)
JPMorgan Chase Bank NA	TWD	75,896	$	2,362	4/21/16		3
JPMorgan Chase Bank NA	TWD	1,972	$	60	4/21/16		(1	)
JPMorgan Chase Bank NA	$	1,154	IDR	15,281,919	4/21/16		(4	)
JPMorgan Chase Bank NA	$	344	INR	23,271	4/21/16		6
JPMorgan Chase Bank NA	$	1,716	INR	116,129	4/21/16		32
JPMorgan Chase Bank NA	$	4,692	KRW	5,572,123	4/21/16		179
JPMorgan Chase Bank NA	$	4,080	RUB	296,448	4/21/16		310
JPMorgan Chase Bank NA	$	711	RUB	51,681	4/21/16		54
JPMorgan Chase Bank NA	$	2,981	SEK	24,726	4/21/16		67
JPMorgan Chase Bank NA	$	2,958	TWD	97,213	4/21/16		63
Northern Trust Company	$	466	SGD	644	4/21/16		12
State Street Bank and Trust Co.	DKK	435	$	65	4/21/16		(2	)
State Street Bank and Trust Co.	JPY	269,609	$	2,392	4/21/16		(5	)
State Street Bank and Trust Co.	$	54	MXN	973	4/21/16		2
UBS AG	CHF	3,603	$	3,662	4/21/16		(88	)
UBS AG	DKK	3,365	$	514	4/21/16		—	@
UBS AG	GBP	1,413	$	2,002	4/21/16		(28	)
UBS AG	$	1,839	MXN	33,064	4/21/16		72
UBS AG	$	953	SGD	1,316	4/21/16		24
UBS AG	$	1,733	ZAR	27,815	4/21/16		144
UBS AG	ZAR	28,689	$	1,942	4/21/16		6
UBS AG	BRL	4,477	$	1,249	5/4/16		14
UBS AG	$	1,453	KRW	1,658,797	5/4/16		(4	)
UBS AG	$	413	MYR	1,600	5/4/16		(4	)
Citibank NA	CNY	8,584	$	1,376	5/19/16		51
Citibank NA	CNY	25,146	$	4,029	5/19/16		148
Citibank NA	$	459	CNY	2,981	5/19/16		1
Citibank NA	$	1,506	CNY	10,215	5/19/16		71
Deutsche Bank AG	CNY	16,764	$	2,686	5/19/16		99
Deutsche Bank AG	$	5,517	CNY	37,298	5/19/16		239
Citibank NA	CNH	42,378	$	6,372	9/22/16		(131	)
JPMorgan Chase Bank NA	CNH	2,044	$	314	9/22/16		(—	@)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	CNH	43,319	$	6,517	9/22/16	$	(131	)
Citibank NA	CNH	35,621	$	5,403	3/16/17		1
						$	828

Futures Contracts:

The Portfolio had the following futures contracts open at March 31, 2016:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
Amsterdam Index (Netherlands)		3	$	300		Apr-16	$	(1	)
CAC 40 Index (France)		7		349		Apr-16		(6	)
MSCI Emerging Market E Mini (United States)		37		1,543		Jun-16		34
MSCI Singapore Free Index (Singapore)		72		1,704		Apr-16		9
OMXS 30 (Sweden)		19		315		Apr-16		(6	)
S&P 500 E Mini Index (United States)		628		64,417		Jun-16		1,104
Sugar No. 11 (United States)		16		277		Jun-16		1
Sugar No. 11 (United States)		15		269		Feb-17		1
Sugar No. 11 (United States)		16		275		Apr-16		(2	)
Sugar No. 11 (United States)		16		280		Sep-16		2
U.S. Dollar Index (United States)		75		7,093		Jun-16		(198	)
U.S. Treasury 10 yr. Note (United States)		4		522		Jun-16		5
U.S. Treasury 2 yr. Note (United States)		52		11,375		Jun-16		(6	)
U.S. Treasury 5 yr. Note (United States)		81		9,814		Jun-16		29
Short:
Brent Crude Futures (United Kingdom)		27		(1,089	)	Apr-16		10
Euro Stoxx 50 Index (Germany)		137		(4,569	)	Jun-16		3
FTSE 100 Index (United Kingdom)		84		(7,375	)	Jun-16		(6	)
German Euro Bund (Germany)		147		(27,319	)	Jun-16		(164	)
Hang Seng Index (Hong Kong)		3		(403	)	Apr-16		(9	)
IBEX 35 Index (Spain)		40		(3,955	)	Apr-16		122
NIKKEI 225 Index (United States)		44		(3,277	)	Jun-16		(12	)
S&P TSX 60 Index (Canada)		11		(1,333	)	Jun-16		(9	)
SPI 200 Index (Australia)		13		(1,262	)	Jun-16		10
TOPIX Index (Japan)		30		(3,592	)	Jun-16		2
U.S. Treasury 10 yr. Note (United States)		85		(11,083	)	Jun-16		15
U.S. Treasury Long Bond (United States)		32		(5,262	)	Jun-16		(5	)
U.S. Treasury Ultra Bond (United States)		15		(2,588	)	Jun-16		21
UK Long Gilt Bond (United Kingdom)		11		(1,915	)	Jun-16		(1	)
							$	943

Credit Default Swap Agreement:

The Portfolio had the following credit default swap agreement open at March 31, 2016:

Swap Counterparty and Reference Obligation				Buy/Sell Protection				Notional Amount (000)				Pay/Receive Fixed Rate				Termination Date				Upfront Payment (Received) (000)				Unrealized Depreciation (000)				Value (000)				Credit Rating of Reference Obligation†
Barclays Bank PLC Russian Federation				Sell				$	2,912				1.00	%		6/20/21				$	(244	)		$	(5	)		$	(249	)		BBB-

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 31, 2016:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Depreciation (000)
Barclays Bank PLC	3 Month STIBOR	Receive		1.34	%	10/12/25	SEK	4,398	$	(17	)
Barclays Bank PLC	3 Month STIBOR	Receive		1.37		10/14/25		4,151		(17	)
BNP Paribas SA	3 Month STIBOR	Receive		1.34		10/12/25		4,694		(18	)
Citibank NA	3 Month STIBOR	Receive		1.28		10/6/25		11,482		(37	)
Citibank NA	3 Month STIBOR	Receive		1.34		10/12/25		5,855		(23	)
Citibank NA	3 Month STIBOR	Receive		1.39		10/13/25		10,530		(48	)
Citibank NA	3 Month STIBOR	Receive		1.37		10/14/25		3,418		(14	)
Goldman Sachs International	3 Month STIBOR	Receive		1.29		10/7/25		3,096		(10	)
Goldman Sachs International	3 Month STIBOR	Receive		1.39		10/13/25		3,301		(14	)
JPMorgan Chase Bank NA	3 Month STIBOR	Receive		1.25		10/6/25		12,560		(36	)
JPMorgan Chase Bank NA	3 Month STIBOR	Receive		1.29		10/7/25		11,000		(36	)
JPMorgan Chase Bank NA	3 Month STIBOR	Receive		1.33		10/8/25		6,633		(26	)
JPMorgan Chase Bank NA	3 Month STIBOR	Receive		1.38		10/13/25		7,673		(34	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.71		3/19/20	$	7,400		(189	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.29		3/7/21		6,480		(34	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.45		7/17/25		3,400		(264	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.73		3/11/26		13,670		(97	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.80		3/14/26		8,220		(111	)
									$	(1,025	)

Total Return Swap Agreements:

The Portfolio had the following total return swap agreements open at March 31, 2016:

Swap Counterparty

Index

Notional
Amount
(000)

Floating
Rate

Pay/Receive
Total Return
of Referenced
Index

Maturity
Date

Unrealized
Appreciation
(Depreciation)
(000)

Barclays Bank PLC

MSCI Emerging Market Index

19,647

3 Month USD LIBOR minus
0.08%

Receive

3/3/17

2,591

Barclays Bank PLC

VIX Short-Term Futures Index

410

3 Month USD LIBOR plus
1.30%

Pay

3/22/17

Citibank NA

U.S. Media Index††

3,912

3 Month USD LIBOR minus
0.10%

Pay

2/8/17

(283

)

Goldman Sachs
International

USD Liquid High Yield Index

5,400

3 Month USD LIBOR plus
0.62%

Receive

6/23/16

107

Goldman Sachs
International

U.S. Consumer Staples Index††

3,226

3 Month USD LIBOR minus
0.15%

Pay

3/2/17

(128

)

Goldman Sachs
International

U.S. Consumer Staples Index††

3,199

3 Month USD LIBOR minus
0.15%

Pay

3/2/17

(112

)

JPMorgan Chase
Bank NA

EU Consumer Staples Index††

EUR

2,970

3 Month EUR EURIBOR minus
0.11%

Pay

3/2/17

(88

)

JPMorgan Chase
Bank NA

EU Consumer Staples Index††

2,948

3 Month EUR EURIBOR minus
0.11%

Pay

3/2/17

(24

)

2,102

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Strategist Portfolio

The following table represents the equity basket holdings underlying the total return swap with U.S. Media Index as of March 31, 2016.

Security Description	Index Weight
U.S. Media Index
Cablevision Systems Corp.		1.00	%
CBS Corp.		3.71
Charter Communications, Inc.		2.63
Comcast Corp.		22.93
Discovery Communications, Inc.		1.14
Discovery Communications, Inc.		0.66
DISH Network Corp.		1.58
Interpublic Group of Cos, Inc. (The)		1.43
Liberty Global PLC		3.55
Liberty Global PLC		1.49
Liberty Media Corp.		1.18
Liberty Media Corp.		0.54
News Corp.		0.74
Omnicom Group, Inc.		3.08
Scripps Networks Interactive, Inc.		0.75
Sirius XM Holdings, Inc.		1.46
TEGNA, Inc.		0.77
Time Warner Cable, Inc.		8.88
Time Warner, Inc.		9.03
Twenty-First Century Fox, Inc.		5.19
Twenty-First Century Fox, Inc.		1.89
Viacom, Inc.		2.18
Walt Disney Co. (The)		24.19
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with U.S. Consumer Staples Index as of March 31, 2016.

Security Description	Index Weight
U.S. Consumer Staples Index
Altria Group, Inc.		11.92	%
Archer-Daniels-Midland Co.		9.67
Brown-Forman Corp.		8.09
Campbell Soup Co.		7.95
Church & Dwight Co., Inc.		6.54
Clorox Co. (The)		3.39
Coca-Cola Co. (The)		3.37
Coca-Cola Enterprises, Inc.		2.60
Colgate-Palmolive Co.		2.49
ConAgra Foods, Inc.		2.22
Constellation Brands, Inc.		2.01
Costco Wholesale Corp.		1.39
CVS Health Corp.		1.15
Dr. Pepper Snapple Group, Inc.		1.12
Estee Lauder Cos, Inc. (The)		1.06
General Mills, Inc.		1.05
Hershey Co. (The)		1.04
Hormel Foods Corp.		1.03
JM Smucker Co. (The)		0.93
Kellogg Co.		0.90
Kimberly-Clark Corp.		0.87
Kraft Heinz Co. (The)		0.84
Kroger Co. (The)		0.83
McCormick & Co., Inc.		0.70
Mead Johnson Nutrition Co.		0.64
Molson Coors Brewing Co.		0.62

Security Description	Index Weight
Mondelez International, Inc.		0.61	%
Monster Beverage Corp.		0.61
PepsiCo, Inc.		0.56
Philip Morris International, Inc.		0.53
Procter & Gamble Co. (The)		6.11
Reynolds American, Inc.		5.72
Sysco Corp.		3.91
Tyson Foods, Inc.		3.67
Walgreens Boots Alliance, Inc.		1.98
Wal-Mart Stores, Inc.		0.57
Whole Foods Market, Inc.		1.31
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with EU Consumer Staples Index as of March 31, 2016.

Security Description	Index Weight
EU Consumer Staples Index
Anheuser-Busch InBev SA		8.79	%
Aryzta AG		0.32
Associated British Foods PLC		1.51
Barry Callebaut AG		0.21
Beiersdorf AG		0.80
British American Tobacco PLC		9.65
Carlsberg A/S		0.90
Carrefour SA		1.34
Casino Guichard Perrachon SA		0.29
Chocoladefabriken Lindt & Spruengli AG		0.53
Chocoladefabriken Lindt & Spruengli AG		0.67
Coca-Cola HBC AG		0.38
Colruyt SA		0.36
Danone SA		3.69
Diageo PLC		5.99
Distribuidora Internacional de Alimentac		0.28
Heineken Holding N.V.		0.69
Heineken N.V.		1.84
Henkel AG & Co., KGaA		0.90
Henkel AG & Co., KGaA		1.73
ICA Gruppen AB		0.23
Imperial Brands PLC		4.68
J Sainsbury PLC		0.47
Jeronimo Martins SGPS SA		0.36
Kerry Group PLC		1.30
Koninklijke Ahold N.V.		1.65
L'Oreal SA		3.97
METRO AG		0.49
Nestle SA		21.01
Orkla ASA		0.65
Pernod Ricard SA		2.08
Reckitt Benckiser Group PLC		5.45
Remy Cointreau SA		0.16
Svenska Cellulosa AB SCA		1.62
Swedish Match AB		0.59
Tate & Lyle PLC		0.34
Tesco PLC		1.98
Unilever N.V.		6.42
Unilever PLC		5.12
Wm Morrison Supermarkets PLC		0.56
		100.00	%

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

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 is Morgan Stanley & Co., LLC.

EURIBOR Euro Interbank Offered Rate.

LIBOR London Interbank Offered Rate.

STIBOR Stockholm Interbank Offered Rate.

AUD — Australian Dollar

BRL — Brazilian Real

CAD — Canadian Dollar

CHF — Swiss Franc

CLP — Chilean Peso

CNH — Chinese Yuan Renminbi

CNY — Chinese Yuan Renminbi

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		54.5	%
Fixed Income Securities		42.4
Other*		3.1
Total Investments		100.0	%**

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

** Does not include open call options written with a value of approximately $82,000. Does not include open long/short futures contracts with an underlying face amount of approximately $173,555,000 with net unrealized appreciation of approximately $943,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $828,000 and does not include open swap agreements with net unrealized appreciation of approximately $1,072,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Global Strategist Portfolio

Statement of Assets and Liabilities	March 31, 2016 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $324,907)	$	360,549
Investment in Securities of Affiliated Issuer, at Value (Cost $6,953)		6,923
Total Investments in Securities, at Value (Cost $331,860)		367,472
Foreign Currency, at Value (Cost $952)		968
Cash		673
Receivable for Variation Margin on Futures Contracts		6,081
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		3,018
Unrealized Appreciation on Swap Agreements		2,737
Interest and Paydown Receivable		1,000
Receivable for Investments Sold		937
Dividends Receivable		565
Tax Reclaim Receivable		212
Receivable for Portfolio Shares Sold		210
Receivable from Affiliate		6
Other Assets		108
Total Assets		383,987
Liabilities:
Payable for Investments Purchased		5,962
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		2,190
Due to Broker		2,493
Payable for Portfolio Shares Redeemed		1,034
Unrealized Depreciation on Swap Agreements		970
Payable for Advisory Fees		323
Premium Received on Open Swap Agreements		244
Payable for Custodian Fees		161
Payable for Variation Margin on Swap Agreements		115
Payable for Sub Transfer Agency Fees — Class I		7
Payable for Sub Transfer Agency Fees — Class A		79
Payable for Sub Transfer Agency Fees — Class L		11
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Professional Fees		89
Options Written, at Value (Premiums received $161)		82
Payable for Trustees' Fees and Expenses		81
Payable for Shareholder Services Fees — Class A		57
Payable for Distribution and Shareholder Services Fees — Class L		16
Payable for Distribution and Shareholder Services Fees — Class C		2
Payable for Administration Fees		25
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		11
Payable for Transfer Agency Fees — Class L		4
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		173
Total Liabilities		14,131
Net Assets	$	369,856
Net Assets Consist Of:
Paid-in-Capital	$	353,334
Accumulated Undistributed Net Investment Income		1,180
Accumulated Net Realized Loss		(23,228	)
Unrealized Appreciation (Depreciation) on:
Investments		35,642
Investments in Affiliates		(30	)
Futures Contracts		943
Options Written		79
Swap Agreements		1,072
Foreign Currency Forward Exchange Contracts		828
Foreign Currency Translations		36
Net Assets	$	369,856

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Global Strategist Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2016 (000)
CLASS I:
Net Assets	$	72,094
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,743,413
Net Asset Value, Offering and Redemption Price Per Share	$	15.20
CLASS A:
Net Assets	$	271,311
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		17,988,991
Net Asset Value, Redemption Price Per Share	$	15.08
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.84
Maximum Offering Price Per Share	$	15.92
CLASS L:
Net Assets	$	24,538
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,640,715
Net Asset Value, Offering and Redemption Price Per Share	$	14.96
CLASS C:
Net Assets	$	1,903
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		127,432
Net Asset Value, Offering and Redemption Price Per Share	$	14.93
CLASS IS:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		626
Net Asset Value, Offering and Redemption Price Per Share	$	15.21

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Global Strategist Portfolio

Statement of Operations	Six Months Ended March 31, 2016 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $124 of Foreign Taxes Withheld)	$	2,595
Interest from Securities of Unaffiliated Issuers		1,480
Dividends from Securities of Affiliated Issuer (Note G)		29
Total Investment Income		4,104
Expenses:
Advisory Fees (Note B)		863
Shareholder Services Fees — Class A (Note D)		349
Distribution and Shareholder Services Fees — Class L (Note D)		93
Distribution and Shareholder Services Fees — Class C (Note D)		8
Custodian Fees (Note F)		237
Sub Transfer Agency Fees — Class I		19
Sub Transfer Agency Fees — Class A		150
Sub Transfer Agency Fees — Class L		18
Sub Transfer Agency Fees — Class C		—	@
Administration Fees (Note C)		153
Professional Fees		77
Pricing Fees		68
Shareholder Reporting Fees		41
Transfer Agency Fees — Class I (Note E)		5
Transfer Agency Fees — Class A (Note E)		20
Transfer Agency Fees — Class L (Note E)		4
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Registration Fees		30
Trustees' Fees and Expenses		6
Other Expenses		11
Total Expenses		2,154
Waiver of Advisory Fees (Note B)		(124	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(12	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(6	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(8	)
Net Expenses		2,003
Net Investment Income		2,101
Realized Gain (Loss):
Investments Sold		(1,072	)
Foreign Currency Forward Exchange Contracts		(838	)
Foreign Currency Transactions		173
Futures Contracts		2,669
Options Written		14
Swap Agreements		(3,559	)
Net Realized Loss		(2,613	)
Change in Unrealized Appreciation (Depreciation):
Investments		11,930
Investments in Affiliates		4
Foreign Currency Forward Exchange Contracts		792
Foreign Currency Translations		80
Futures Contracts		1,603
Swap Agreements		1,325
Options Written		79
Net Change in Unrealized Appreciation (Depreciation)		15,813
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		13,200
Net Increase in Net Assets Resulting from Operations	$	15,301

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Global Strategist Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2016 (unaudited) (000)			Year Ended September 30, 2015 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	2,101		$	6,483
Net Realized Loss		(2,613	)		(18,236	)
Net Change in Unrealized Appreciation (Depreciation)		15,813			(28,597	)
Net Increase (Decrease) in Net Assets Resulting from Operations		15,301			(40,350	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		—			(1,528	)
Net Realized Gain		(87	)		(2,679	)
Class A:
Net Investment Income		—			(6,120	)
Net Realized Gain		(309	)		(13,028	)
Class L:
Net Investment Income		—			(334	)
Net Realized Gain		(27	)		(1,018	)
Class C:
Net Realized Gain		(2	)		—
Class IS:
Net Realized Gain		(—	@)		—
Total Distributions		(425	)		(24,707	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		5,805			54,340
Distributions Reinvested		86			4,190
Redeemed		(20,714	)		(35,485	)
Class A:
Subscribed		1,727			16,757
Distributions Reinvested		304			18,802
Redeemed		(29,105	)		(64,828	)
Class L:
Subscribed		2,360			4,778
Distributions Reinvested		27			1,327
Redeemed		(3,270	)		(5,643	)
Class C:
Subscribed		572			1,467	*
Distributions Reinvested		2			—
Redeemed		(98	)		(—	@)*
Class IS:
Subscribed		—			10	**
Net Decrease in Net Assets Resulting from Capital Share Transactions		(42,304	)		(4,285	)
Total Decrease in Net Assets		(27,428	)		(69,342	)
Net Assets:
Beginning of Period		397,284			466,626
End of Period (Including Accumulated Undistributed Net Investment Income and Accumulated Undistributed Distributions in Excess of Net Investment Income of $1,180 and $(921), respectively)	$	369,856		$	397,284

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Global Strategist Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2016 (unaudited) (000)			Year Ended September 30, 2015 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		388			3,417
Shares Issued on Distributions Reinvested		6			269
Shares Redeemed		(1,405	)		(2,225	)
Net Increase (Decrease) in Class I Shares Outstanding		(1,011	)		1,461
Class A:
Shares Subscribed		117			1,040
Shares Issued on Distributions Reinvested		21			1,211
Shares Redeemed		(1,975	)		(4,081	)
Net Decrease in Class A Shares Outstanding		(1,837	)		(1,830	)
Class L:
Shares Subscribed		160			305
Shares Issued on Distributions Reinvested		2			86
Shares Redeemed		(224	)		(358	)
Net Increase (Decrease) in Class L Shares Outstanding		(62	)		33
Class C:
Shares Subscribed		39			95	*
Shares Issued on Distributions Reinvested		—	@@		—
Shares Redeemed		(6	)		(—	@@)*
Net Increase in Class C Shares Outstanding		33			95
Class IS:
Shares Subscribed		—			1	**

* For the period April 30, 2015 through September 30, 2015.

** For the period May 29, 2015 through September 30, 2015.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Global Strategist Portfolio

	Class I
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	14.58		$	16.99		$	16.96		$	15.22		$	12.50		$	12.55
Income (Loss) from Investment Operations:
Net Investment Income†		0.10			0.28			0.34			0.35			0.14			0.18
Net Realized and Unrealized Gain (Loss)		0.54			(1.73	)		1.15			1.44			2.79			(0.02	)
Total from Investment Operations		0.64			(1.45	)		1.49			1.79			2.93			0.16
Distributions from and/or in Excess of:
Net Investment Income		—			(0.35	)		(0.23	)		(0.05	)		(0.21	)		(0.21	)
Net Realized Gain		(0.02	)		(0.61	)		(1.23	)		—			—			—
Total Distributions		(0.02	)		(0.96	)		(1.46	)		(0.05	)		(0.21	)		(0.21	)
Net Asset Value, End of Period	$	15.20		$	14.58		$	16.99		$	16.96		$	15.22		$	12.50
Total Return++		4.30	%#		(8.87	)%		9.37	%		11.79	%		23.66	%		1.07	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	72,094		$	83,930		$	72,952		$	52,170		$	23,756		$	25,192
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.74	%+*		0.73	%+		0.72	%+		0.69	%+		1.37	%+		1.30	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			N/A			0.76	%+		N/A			N/A
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.39	%+*		1.78	%+		1.99	%+		2.18	%+		1.01	%+		1.35	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.01	%		0.02	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		53	%#		98	%		62	%		107	%		168	%		164	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.84	%*		0.83	%		0.83	%		0.82	%		N/A			N/A
Net Investment Income to Average Net Assets		1.29	%*		1.68	%		1.88	%		2.05	%		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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Global Strategist Portfolio

	Class A
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	14.50		$	16.88		$	16.88		$	15.18		$	12.47		$	12.52
Income (Loss) from Investment Operations:
Net Investment Income†		0.08			0.23			0.27			0.42			0.10			0.15
Net Realized and Unrealized Gain (Loss)		0.52			(1.71	)		1.15			1.32			2.79			(0.03	)
Total from Investment Operations		0.60			(1.48	)		1.42			1.74			2.89			0.12
Distributions from and/or in Excess of:
Net Investment Income		—			(0.29	)		(0.19	)		(0.04	)		(0.18	)		(0.17	)
Net Realized Gain		(0.02	)		(0.61	)		(1.23	)		—			—			—
Total Distributions		(0.02	)		(0.90	)		(1.42	)		(0.04	)		(0.18	)		(0.17	)
Net Asset Value, End of Period	$	15.08		$	14.50		$	16.88		$	16.88		$	15.18		$	12.47
Total Return++		4.05	%#		(9.16	)%		9.02	%		11.49	%		23.33	%		0.83	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	271,311		$	287,438		$	365,642		$	373,559		$	20,487		$	16,857
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.08	%+*		1.05	%+		1.07	%+		0.47	%+^		1.64	%+		1.55	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			N/A			1.03	%+^		N/A			N/A
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.07	%+*		1.44	%+		1.64	%+		2.60	%+^		0.69	%+		1.10	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.01	%		0.02	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		53	%#		98	%		62	%		107	%		168	%		164	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.15	%*		1.11	%		1.14	%		1.11	%		N/A			N/A
Net Investment Income to Average Net Assets		1.00	%*		1.38	%		1.57	%		1.96	%		N/A			N/A

† 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.

^ 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Global Strategist Portfolio

	Class L
	Six Months Ended March 31, 2016			Year Ended September 30,									Period from April 27, 2012^ to
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	14.41		$	16.79		$	16.78		$	15.15		$	14.42
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		0.04			0.15			0.19			0.23			(0.02	)
Net Realized and Unrealized Gain (Loss)		0.53			(1.72	)		1.15			1.42			0.78
Total from Investment Operations		0.57			(1.57	)		1.34			1.65			0.76
Distributions from and/or in Excess of:
Net Investment Income		—			(0.20	)		(0.10	)		(0.02	)		(0.03	)
Net Realized Gain		(0.02	)		(0.61	)		(1.23	)		—			—
Total Distributions		(0.02	)		(0.81	)		(1.33	)		(0.02	)		(0.03	)
Net Asset Value, End of Period	$	14.96		$	14.41		$	16.79		$	16.78		$	15.15
Total Return++		3.86	%#		(9.66	)%		8.49	%		10.91	%		5.30	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	24,538		$	24,544		$	28,032		$	29,025		$	11
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.59	%+*		1.58	%+		1.57	%+		1.42	%+^^		2.39	%+*
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			N/A			1.49	%+^^		N/A
Ratio of Net Investment Income (Loss) to Average Net Assets ⁽¹⁾		0.56	%+*		0.93	%+		1.14	%+		1.44	%+^^		(0.29	)%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.01	%		0.02	%		0.01	%		0.03	%*
Portfolio Turnover Rate		53	%#		98	%		62	%		107	%		168	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.71	%*		1.69	%*		1.70	%		1.54	%		N/A
Net Investment Income to Average Net Assets		0.44	%*		0.82	%*		1.01	%		1.32	%		N/A

^ Commencement of Offering.

† 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."

^^ 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Global Strategist Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	14.41		$	16.03
Income (Loss) from Investment Operations:
Net Investment Income†		0.03			0.03
Net Realized and Unrealized Gain (Loss)		0.51			(1.65	)
Total from Investment Operations		0.54			(1.62	)
Distributions from and/or in Excess of:
Net Realized Gain		(0.02	)		—
Net Asset Value, End of Period	$	14.93		$	14.41
Total Return++		3.65	%#		(10.11	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,903		$	1,363
Ratios of Expenses to Average Net Assets ⁽¹⁾		1.83	%+*		1.83	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		0.36	%+*		0.54	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.01	%*
Portfolio Turnover Rate		53	%#		98	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		1.90	%*		2.28	%*
Net Investment Income to Average Net Assets		0.29	%*		0.09	%*

^ Commencement of Offering.

† 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Global Strategist Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from May 29, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	14.59		$	15.97
Income (Loss) from Investment Operations:
Net Investment Income†		0.11			0.09
Net Realized and Unrealized Gain (Loss)		0.53			(1.47	)
Total from Investment Operations		0.64			(1.38	)
Distributions from and/or in Excess of:
Net Realized Gain		(0.02	)		—
Net Asset Value, End of Period	$	15.21		$	14.59
Total Return++		4.37	%#		(8.70	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	9
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.71	%+*		0.71	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.47	%+*		1.66	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§*
Portfolio Turnover Rate		53	%#		98	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		17.62	%*		16.27	%*
Net Investment Loss to Average Net Assets		(15.44	)%*		(13.90	)%*

^ Commencement of Offering.

† 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.
37

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Notes to Financial Statements (unaudited)

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 five classes of shares — Class I, Class A, Class L, Class C and Class IS.

On April 30, 2015, the Portfolio suspended offering Class L shares to all investors. Existing Class L shareholders may invest through reinvestment of dividends and distributions.

by the commodities exchange on which they trade; (5) swaps are marked-to-market daily based upon quotations from market makers; (6) 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 Trustees or quotes from a broker or dealer; (7) 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; (8) 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; (9) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (10) 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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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.

• 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.)

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

measurement in its entirety requires judgment and considers factors specific to each security.

The following is a summary of the inputs used to value the Portfolio's investments as of March 31, 2016.

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	$	—	$	978		$	—	$	978
Agency Fixed Rate Mortgages		—		12,433			—		12,433
Asset-Backed Security		—		383			—		383
Collateralized Mortgage Obligations — Agency Collateral Series		—		1,871			—		1,871
Commercial Mortgage-Backed Securities		—		3,043			—		3,043
Corporate Bonds		—		45,828			—		45,828
Mortgages — Other		—		2,588			—		2,588
Sovereign		—		60,047			—		60,047
U.S. Treasury Securities		—		28,533			—		28,533
Total Fixed Income Securities		—		155,704			—		155,704
Common Stocks
Aerospace & Defense		2,534		—			—		2,534
Air Freight & Logistics		944		—			—		944
Airlines		269		—			—		269
Auto Components		1,605		—			—		1,605
Automobiles		3,881		—			—		3,881
Banks		22,750		—	@		—		22,750
Beverages		4,812		—			—		4,812
Biotechnology		3,109		—			—		3,109
Building Products		1,162		—			—		1,162
Capital Markets		3,966		—			—		3,966
Chemicals		5,170		—			—		5,170
Commercial Services & Supplies		1,182		—			—		1,182
Communications Equipment		1,865		—			—		1,865
Construction & Engineering		1,236		—			—		1,236
Construction Materials		332		—			—		332
Consumer Finance		545		—			—		545
Containers & Packaging		354		—			—		354
Distributors		11		—			—		11
Diversified Consumer Services		71		—			—		71
Diversified Financial Services		1,975		—			—		1,975
Diversified Telecommunication Services		7,297		—			—		7,297
Electric Utilities		4,434		—			—		4,434
Electrical Equipment		1,971		—			—		1,971
Electronic Equipment, Instruments & Components		1,289		—			—		1,289

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)
Energy Equipment & Services	$	1,430	$	—	$	—	$	1,430
Food & Staples Retailing		5,339		—		—		5,339
Food Products		5,057		—		—		5,057
Gas Utilities		778		—		—		778
Health Care Equipment & Supplies		3,260		—		—		3,260
Health Care Providers & Services		2,886		—		—		2,886
Health Care Technology		81		—		—		81
Hotels, Restaurants & Leisure		2,762		—		—		2,762
Household Durables		750		—		—		750
Household Products		3,550		—		—		3,550
Independent Power Producers & Energy Traders		109		—		—		109
Industrial Conglomerates		2,629		—		—		2,629
Information Technology Services		4,154		—		—		4,154
Insurance		7,020		—		—		7,020
Internet & Catalog Retail		1,285		—		—		1,285
Internet Software & Services		2,420		—		—		2,420
Leisure Products		51		—		—		51
Life Sciences Tools & Services		618		—		—		618
Machinery		3,434		—		—		3,434
Marine		284		—		—		284
Media		5,986		—		—		5,986
Metals & Mining		3,515		—		—		3,515
Multi-Utilities		2,720		—		—		2,720
Multi-line Retail		548		—		—		548
Oil, Gas & Consumable Fuels		11,382		—		—		11,382
Paper & Forest Products		247		—		—		247
Personal Products		2,390		—		—		2,390
Pharmaceuticals		14,582		—		—		14,582
Professional Services		1,438		—		—		1,438
Real Estate Investment Trusts (REITs)		4,514		—		—		4,514
Real Estate Management & Development		2,384		—		—		2,384
Road & Rail		3,190		—		—		3,190
Semiconductors & Semiconductor Equipment		3,145		—		1		3,146
Software		4,212		—		—		4,212
Specialty Retail		3,271		—		—		3,271
Tech Hardware, Storage & Peripherals		5,629		—		—		5,629
Textiles, Apparel & Luxury Goods		2,270		—		—		2,270
Thrifts & Mortgage Finance		91		—		—		91
Tobacco		3,603		—		—		3,603
Trading Companies & Distributors		1,284		—		—		1,284

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Transportation Infrastructure	$	685		$	—		$	—	$	685
Wireless Telecommunication Services		2,722			—			—		2,722
Total Common Stocks		200,469			—	@		1		200,470
Investment Companies		376			—			—		376
Rights		—			1			—		1
Warrant		4			—			—		4
Call Options Purchased		—			202			—		202
Short-Term Investments
Investment Company		6,821			—			—		6,821
U.S. Treasury Securities		—			3,894			—		3,894
Total Short-Term Investments		6,821			3,894			—		10,715
Foreign Currency Forward Exchange Contracts		—			3,018			—		3,018
Futures Contracts		1,368			—			—		1,368
Total Return Swap Agreements		—			2,737			—		2,737
Total Assets		209,038			165,556			1		374,595
Liabilities:
Call Options Written		—			(82	)		—		(82	)
Foreign Currency Forward Exchange Contracts		—			(2,190	)		—		(2,190	)
Futures Contracts		(425	)		—			—		(425	)
Credit Default Swap Agreement		—			(5	)		—		(5	)
Interest Rate Swap Agreements		—			(1,025	)		—		(1,025	)
Total Return Swap Agreements		—			(635	)		—		(635	)
Total Liabilities		(425	)		(3,937	)		—		(4,362	)
Total	$	208,613		$	161,619		$	1	$	370,233

@ Value is less than $500.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of March 31, 2016, securities with a total value of approximately $108,626,000 transferred from Level 2 to Level 1. Securities that were valued using other significant observable inputs at September 30, 2015 were valued using unadjusted quoted prices at March 31, 2016.

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

	Common Stock (000)
Beginning Balance	$	6
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		(5	)
Realized gains (losses)		—
Ending Balance	$	1
Net change in unrealized appreciation (depreciation) from investments still held as of March 31, 2016	$	(5	)

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of March 31, 2016.

	Fair Value at March 31, 2016 (000)		Valuation Technique	Unobservable Input	Range					Selected Value			Impact to Valuation from an increase in input
Semiconductors & Semiconductor Equipment
Common Stock	$	1	Discounted Cash Flow	Weighted Average Cost of Capital		14.0	%	14.0	%		14.0	%	Decrease
				Long-Term Capital Growth		3.5	%	3.5	%		3.5	%	Increase
				Capitalization Rate		10.5	%	10.5	%		10.5	%	Increase
			Market Comparable Companies	Enterprise Value/ EBITDA		6.2	x	7.6	x		6.4	x	Increase
				Discount for Lack of Marketability		15.0	%	15.0	%		15.0	%	Decrease

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

– 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.

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) in 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

Semi-Annual Report — March 31, 2016

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

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:

event of bankruptcy of a broker with which 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 swap dealer, bank 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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

Upfront payments paid or received 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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 may 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.

Options: With 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 in Securities" in 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. The Portfolio may write call and put options on stock indexes, futures, securities or currencies it owns or in which it may invest. Writing put options tend to increase the Portfolio's exposure to the underlying instrument. Writing call options tend to decrease the Portfolio's exposure to the underlying instruments. When the Portfolio writes a call or put option, an amount equal to the premium received is recorded as a liability. Any liability recorded is subsequently adjusted to reflect the current value of the options written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the net realized gain or loss. The Portfolio as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. 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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Transactions in written options for the six months ended March 31, 2016 were as follows:

Written Options	Notional Amount (000)			Premiums Received (000)
Options outstanding at September 30, 2015		—		$	—
Options written		27,590			194
Options closed		(11,960	)		(33	)
Options exercised		—			—
Options expired		—			—
Options outstanding at March 31, 2016		15,630		$	161

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 31, 2016.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Call Options Purchased

Investments, at Value
(Call Options Purchased)

Currency Risk

202

(a)

Foreign Currency
Forward Exchange
Contracts

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

3,018

Futures Contracts

Variation Margin on
Futures Contracts

Commodity Risk

(b)

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

1,284

(b)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(b)

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Equity Risk

2,737

Total

7,325

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Call Options Written

Options Written, at Value

Currency Risk

(82

)

Foreign Currency
Forward Exchange
Contracts

Unrealized Depreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

(2,190

)

Futures Contract

Variation Margin on
Futures Contract

Commodity Risk

)(b)

Futures Contracts

Variation Margin on
Futures Contracts

Currency Risk

(198

)(b)

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

(49

)(b)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(176

)(b)

Swap Agreement

Unrealized Depreciation on
Swap Agreement

Credit Risk

)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Equity Risk

(635

)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Interest Rate Risk

(330

)

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

(695

)(b)

Total

(4,362

)

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

(b) 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.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Call Options Purchased	$	7	(c)
Currency Risk	Call Options Written		14
Currency Risk	Foreign Currency Forward Exchange Contracts		(838	)
Commodity Risk	Futures Contracts		(320	)
Currency Risk	Futures Contracts		105
Equity Risk	Futures Contracts		4,195
Interest Rate Risk	Futures Contracts		(1,311	)
Credit Risk	Swap Agreements		75
Equity Risk	Swap Agreements		(3,737	)
Interest Rate Risk	Swap Agreements		103
Total		$	(1,707	)

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Call Options Purchased	$	(99	)(c)
Currency Risk	Call Options Written		79
Currency Risk	Foreign Currency Forward Exchange Contracts		792
Commodity Risk	Futures Contracts		167
Currency Risk	Futures Contracts		(261	)
Equity Risk	Futures Contracts		423
Interest Rate Risk	Futures Contracts		1,274
Credit Risk	Swap Agreements		(65	)
Equity Risk	Swap Agreements		2,079
Interest Rate Risk	Swap Agreements		(689	)
Total		$	3,700

At March 31, 2016, 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(d)	Assets(e) (000)			Liabilities(e) (000)
Call Options Purchased	$	202	(a)	$	—
Call Options Written		—			(82	)
Foreign Currency Forward Exchange Contracts		3,018			(2,190	)
Swap Agreements		2,737			(970	)
Total	$	5,957		$	(3,242	)

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

(d) Excludes exchange traded derivatives.

(e) 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.

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 March 31, 2016.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Received (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	79	$	(79	)	$	—		$	0
Bank of Montreal		39		(24	)		—			15
Bank of New York Mellon		2		(2	)		—			0
Barclays Bank PLC		2,635		(44	)		(2,262	)		329
BNP Paribas SA		15		—			—			15
Citibank NA		816		(201	)		—			615
Credit Suisse International		57		(57	)		—			0
Deutsche Bank AG		338		—			(231	)		107
Goldman Sachs International		165		(138	)		—			27
HSBC Bank PLC		344		(251	)		—			93
JPMorgan Chase Bank NA		1,023		(777	)		—			246
Northern Trust Company		12		—			—			12
State Street Bank and Trust Co.		2		(2	)		—			0
UBS AG		430		(420	)		—			10
Total	$	5,957	$	(1,995	)	$	(2,493	)	$	1,469

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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(f) (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	198	$	(79	)	$	—		$	119
Bank of Montreal		24		(24	)		—			0
Bank of New York Mellon		16		(2	)		—			14
Barclays Bank PLC		95		(44	)		—			51
BNP Paribas SA		18		—			—			18
Citibank NA		606		(201	)		—			405
Credit Suisse International		171		(57	)		—			114
Goldman Sachs International		415		(138	)		(277	)		0
HSBC Bank PLC		251		(251	)		—			0
JPMorgan Chase Bank NA		1,021		(777	)		(129	)		115
State Street Bank and Trust Co.		7		(2	)		—			5
UBS AG		420		(420	)		—			0
Total	$	3,242	$	(1,995	)	$	(406	)	$	841

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

For the six months ended March 31, 2016, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	183,826,000
Futures Contracts:
Average monthly original value	$	292,724,000
Swap Agreements:
Average monthly notional amount	$	94,490,000
Call Options Purchased:
Average monthly notional amount		17,623,000
Call Options Written:
Average monthly notional amount		17,623,000

5. When-Issued/Delayed Delivery Securities: The Portfolio purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the Portfolio on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place a month or more after the date of the transaction. When the Portfolio enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral in an amount at least equal in value to the Portfolio's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower than the agreed upon purchase price, in which case

there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Portfolio.

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

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

8. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined 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 and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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, 1.59% for Class L shares, 1.84% for Class C shares and 0.71% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2016, approximately $124,000 of advisory fees were waived and approximately $19,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2016, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $93,992,000 and $119,170,000, respectively. For the six months ended March 31, 2016, purchases and sales of long-term U.S. Government securities were approximately $94,848,000 and $80,221,000, respectively.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 31, 2016, advisory fees paid were reduced by approximately $7,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	30,788			$	102,516			$	126,483			$	28			$	6,821

The Portfolio invests in Morgan Stanley Institutional Fund, Inc. — Emerging Markets Portfolio ("Emerging Markets Portfolio"), an open-end management investment company advised by an affiliate of the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Emerging Markets Portfolio. For the six months ended March 31, 2016, 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 $132,000 at March 31, 2016.

A summary of the Portfolio's transactions in shares of the Emerging Markets Portfolio during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	98			$	1			$	—			$	1			$	102

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.

2015 Distributions Paid From:				2014 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	17,981	$	6,726	$	18,470	$	19,196

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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, 2015:

Distributions in Excess of Net Investment Income (000)				Accumulated Net Realized Gain (000)				Paid-in- Capital (000)
$	(3,358	)		$	3,358			$	—

At September 30, 2015, 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)
$	—			$	425

Capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year are deemed to arise on the first day of the Portfolio's next taxable year. For the year ended September 30, 2015, the Portfolio deferred to October 1, 2015 for U.S. Federal income tax purposes the following losses:

Post-October Currency And Specified Ordinary Losses (000)				Post-October Capital Losses (000)
$	—			$	12,881

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

Trustee and Officer Information (unaudited)

Trustees

Officers

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

IFTGSSAN
1482420 EXP. 05.31.17

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

High Yield Portfolio

Semi-Annual Report

March 31, 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					10
Statement of Operations					12
Statements of Changes in Net Assets					13
Financial Highlights					15
Notes to Financial Statements					20
U.S. Privacy Policy					27
Trustee and Officer Information					30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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 March 31, 2016 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 10/1/15		Actual Ending Account Value 3/31/16		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	$	985.10	$	1,021.60	$	3.37	$	3.44		0.68	%
High Yield Portfolio Class A		1,000.00		983.30		1,019.75		5.21		5.30		1.05
High Yield Portfolio Class L		1,000.00		982.10		1,018.45		6.49		6.61		1.31
High Yield Portfolio Class C		1,000.00		979.70		1,016.20		8.91		9.07		1.80
High Yield Portfolio Class IS		1,000.00		985.30		1,021.75		3.13		3.18		0.63

** Annualized.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments

High Yield Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (100.0%)
Corporate Bonds (95.7%)
Basic Materials (5.0%)
Aleris International, Inc.
9.50%, 4/1/21 (a)	$	700	$	715
American Gilsonite Co.
11.50%, 9/1/17 (a)		500		266
Blue Cube Spinco, Inc.
10.00%, 10/15/25 (a)		475		545
Chemtura Corp.
5.75%, 7/15/21		750		742
Eco Services Operations LLC/Eco Finance Corp.
8.50%, 11/1/22 (a)		350		324
Hexion, Inc.,
8.88%, 2/1/18		550		380
10.00%, 4/15/20		250		226
HudBay Minerals, Inc.
9.50%, 10/1/20		750		536
Lundin Mining Corp.
7.50%, 11/1/20 (a)		500		480
Prince Mineral Holding Corp.
11.50%, 12/15/19 (a)		800		700
Signode Industrial Group Lux SA/Signode Industrial Group US, Inc.
6.38%, 5/1/22 (a)		550		503
				5,417
Communications (11.6%)
Altice Financing SA
6.63%, 2/15/23 (a)		500		504
Bankrate, Inc.
6.13%, 8/15/18 (a)		740		744
Cable One, Inc.
5.75%, 6/15/22 (a)		780		794
Cablevision Systems Corp.
7.75%, 4/15/18		150		156
CCO Holdings LLC/CCO Holdings Capital Corp.
5.75%, 1/15/24		600		626
Columbus International, Inc.
7.38%, 3/30/21 (a)		750		801
CommScope Technologies Finance LLC
6.00%, 6/15/25 (a)		400		406
CommScope, Inc.
5.50%, 6/15/24 (a)		500		507
CSC Holdings LLC
5.25%, 6/1/24		750		670
GCI, Inc.,
6.75%, 6/1/21		250		256
6.88%, 4/15/25		250		256
Intelsat Jackson Holdings SA
8.00%, 2/15/24 (a)		750		774
inVentiv Health, Inc.
9.00%, 1/15/18 (a)		750		778

	Face Amount (000)		Value (000)
Lamar Media Corp.,
5.38%, 1/15/24	$	250	$	262
5.75%, 2/1/26 (a)		300		316
MDC Partners, Inc.
6.50%, 5/1/24 (a)		750		768
Midcontinent Communications & Midcontinent Finance Corp.,
6.25%, 8/1/21 (a)		450		466
6.88%, 8/15/23 (a)		350		364
Netflix, Inc.
5.88%, 2/15/25		500		529
Numericable-SFR SA
6.00%, 5/15/22 (a)		500		490
Outfront Media Capital LLC/Outfront Media Capital Corp.
5.63%, 2/15/24		500		522
SBA Telecommunications, Inc.
5.75%, 7/15/20		250		259
Sinclair Television Group, Inc.
5.88%, 3/15/26 (a)		450		462
Syniverse Holdings, Inc.
9.13%, 1/15/19		250		114
T-Mobile USA, Inc.
6.84%, 4/28/23		750		795
				12,619
Consumer, Cyclical (21.2%)
Accuride Corp.
9.50%, 8/1/18		750		694
Air Canada
7.75%, 4/15/21 (a)		925		916
Algeco Scotsman Global Finance PLC,
8.50%, 10/15/18 (a)		200		155
10.75%, 10/15/19 (a)		200		60
Allied Specialty Vehicles, Inc.
8.50%, 11/1/19 (a)		750		763
American Airlines Group, Inc.
5.50%, 10/1/19 (a)		750		767
American Builders & Contractors Supply Co., Inc.
5.63%, 4/15/21 (a)		500		518
AV Homes, Inc.
8.50%, 7/1/19		750		739
Beacon Roofing Supply, Inc.
6.38%, 10/1/23 (a)		500		532
Carrols Restaurant Group, Inc.
8.00%, 5/1/22		600		646
CCM Merger, Inc.
9.13%, 5/1/19 (a)		100		104
Century Communities, Inc.
6.88%, 5/15/22		850		816
Chester Downs & Marina LLC/Chester Downs Finance Corp.
9.25%, 2/1/20 (a)		700		511

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (cont'd)
Churchill Downs, Inc.
5.38%, 12/15/21 (a)	$	300	$	311
Commercial Vehicle Group, Inc.
7.88%, 4/15/19		324		274
Dollar Tree, Inc.
5.75%, 3/1/23 (a)		500		532
Downstream Development Authority of the Quapaw Tribe of Oklahoma
10.50%, 7/1/19 (a)		417		398
Eldorado Resorts, Inc.
7.00%, 8/1/23		345		359
Empire Today LLC/Empire Today Finance Corp.
11.38%, 2/1/17 (a)		630		624	��
Exide Technologies
8.63%, 2/1/18 (b)(c)(d)		100		—
FelCor Lodging LP
6.00%, 6/1/25		450		467
Gibson Brands, Inc.
8.88%, 8/1/18 (a)		500		293
Global Partners LP/GLP Finance Corp.
6.25%, 7/15/22		725		544
Golden Nugget Escrow, Inc.
8.50%, 12/1/21 (a)		250		253
Greektown Holdings LLC/Greektown Mothership Corp.
8.88%, 3/15/19 (a)		710		731
Guitar Center, Inc.
6.50%, 4/15/19 (a)		700		633
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp.
5.63%, 10/15/21		250		260
Jarden Corp.
5.00%, 11/15/23 (a)		450		474
JC Penney Corp., Inc.
8.13%, 10/1/19		500		516
Lions Gate Entertainment Corp.
5.25%, 8/1/18		500		513
Logan's Roadhouse, Inc.
10.75%, 10/15/17		550		336
Meritor, Inc.
6.25%, 2/15/24		750		665
Neiman Marcus Group Ltd., LLC
8.75%, 10/15/21 (a)(e)		350		271
Oshkosh Corp.
5.38%, 3/1/22		750		767
Party City Holdings, Inc.
6.13%, 8/15/23 (a)		750		771
Playa Resorts Holding BV
8.00%, 8/15/20 (a)		750		744
Rite Aid Corp.,
6.13%, 4/1/23 (a)		250		266
6.75%, 6/15/21		500		529

		Face Amount (000)		Value (000)
RSI Home Products, Inc.
6.50%, 3/15/23 (a)		$	450	$	471
Sally Holdings LLC/Sally Capital, Inc
5.63%, 12/1/25			500		535
Seminole Hard Rock Entertainment, Inc./ Seminole Hard Rock International LLC
5.88%, 5/15/21 (a)			270		272
Sonic Automotive, Inc.
5.00%, 5/15/23			750		742
Speedway Motorsports, Inc.
5.13%, 2/1/23			335		345
Sugarhouse HSP Gaming Prop Mezz LP/ Sugarhouse HSP Gaming Finance Corp.
6.38%, 6/1/21 (a)			694		671
Tops Holding LLC/Tops Markets II Corp.
8.00%, 6/15/22 (a)			750		697
United Continental Holdings, Inc.
6.38%, 6/1/18			400		422
VistaJet Malta Finance PLC/VistaJet Co., Finance LLC
7.75%, 6/1/20 (a)			300		134
					23,041
Consumer, Non-Cyclical (17.4%)
Acadia Healthcare Co., Inc.,
5.13%, 7/1/22	��		500		507
5.63%, 2/15/23			500		510
Ahern Rentals, Inc.
7.38%, 5/15/23 (a)			400		278
Albea Beauty Holdings SA
8.38%, 11/1/19 (a)			100		106
Alere, Inc.
6.38%, 7/1/23 (a)			200		211
Amsurg Corp.
5.63%, 7/15/22			400		414
APX Group, Inc.
6.38%, 12/1/19			500		504
Aramark Services, Inc.,
5.13%, 1/15/24			250		264
5.75%, 3/15/20			400		413
Beverages & More, Inc.
10.00%, 11/15/18 (a)			739		666
Brand Energy & Infrastructure Services, Inc.
8.50%, 12/1/21 (a)			500		472
Bumble Bee Holdco SCA
9.63%, 3/15/18 (a)(e)			465		459
Bumble Bee Holdings, Inc.
9.00%, 12/15/17 (a)			500		503
Centene Escrow Corp.
6.13%, 2/15/24 (a)			250		264
Central Garden & Pet Co.
6.13%, 11/15/23			750		784
Cenveo Corp.
6.00%, 8/1/19 (a)			400		293

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Non-Cyclical (cont'd)
Concordia Healthcare Corp.
7.00%, 4/15/23 (a)	$	250	$	216
DPx Holdings BV
7.50%, 2/1/22 (a)		100		100
DS Services of America, Inc.
10.00%, 9/1/21 (a)		304		346
DynCorp International, Inc.
10.38%, 7/1/17		400		322
Endo Ltd./Endo Finance LLC/Endo Finco, Inc.
6.00%, 7/15/23 (a)		700		662
Global A&T Electronics Ltd.
10.00%, 2/1/19 (a)		400		257
Great Lakes Dredge & Dock Corp.
7.38%, 2/1/19		750		714
Harland Clarke Holdings Corp.
9.75%, 8/1/18 (a)		750		740
HCA, Inc.
5.25%, 6/15/26		450		462
Jaguar Holding Co. II/Pharmaceutical Product Development LLC
6.38%, 8/1/23 (a)		500		515
JLL/Delta Dutch Pledgeco BV
8.75%, 5/1/20 (a)(e)		350		342
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC
5.50%, 4/15/25 (a)		500		444
Mustang Merger Corp.
8.50%, 8/15/21 (a)		331		343
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp.
5.88%, 1/15/24 (a)		450		473
Pinnacle Operating Corp.
9.00%, 11/15/20 (a)		400		347
Quintiles Transnational Corp.
4.88%, 5/15/23 (a)		300		309
Safway Group Holding LLC/Safway Finance Corp.
7.00%, 5/15/18 (a)		998		1,005
Service Corp. International
5.38%, 1/15/22		250		263
Spectrum Brands, Inc.
5.75%, 7/15/25		500		534
Tenet Healthcare Corp.
4.13%, 6/15/20 (a)(f)		450		449
TMS International Corp.
7.63%, 10/15/21 (a)		775		475
TreeHouse Foods, Inc.
6.00%, 2/15/24 (a)		500		532
United Rentals North America, Inc.
5.75%, 11/15/24		750		754
US Foods, Inc.
8.50%, 6/30/19		720		742

	Face Amount (000)		Value (000)
Valeant Pharmaceuticals International, Inc.,
5.88%, 5/15/23 (a)	$	250	$	197
6.13%, 4/15/25 (a)		250		193
Wells Enterprises, Inc.
6.75%, 2/1/20 (a)		500		516
				18,900
Diversified (0.7%)
Argos Merger Sub, Inc.
7.13%, 3/15/23 (a)		500		533
Horizon Pharma Financing, Inc.
6.63%, 5/1/23 (a)		250		222
				755
Energy (9.0%)
Blue Racer Midstream LLC/Blue Racer Finance Corp.
6.13%, 11/15/22 (a)		500		419
Carrizo Oil & Gas, Inc.
6.25%, 4/15/23		800		709
Concho Resources, Inc.
5.50%, 4/1/23		500		492
Crestwood Midstream Partners LP/ Crestwood Midstream Finance Corp.,
6.13%, 3/1/22		130		98
6.25%, 4/1/23 (a)		250		186
CrownRock LP/CrownRock Finance, Inc.
7.75%, 2/15/23 (a)		200		195
DCP Midstream LLC
5.35%, 3/15/20 (a)		400		345
Denbury Resources, Inc.
4.63%, 7/15/23		375		158
Endeavor Energy Resources LP/EER Finance, Inc.
8.13%, 9/15/23 (a)		500		477
Hilcorp Energy I LP/Hilcorp Finance Co.,
5.00%, 12/1/24 (a)		250		212
5.75%, 10/1/25 (a)		250		216
HollyFrontier Corp.
5.88%, 4/1/26		700		698
Laredo Petroleum, Inc.
6.25%, 3/15/23		200		169
Lonestar Resources America, Inc.
8.75%, 4/15/19 (a)		600		357
Matador Resources Co.
6.88%, 4/15/23		225		217
Memorial Resource Development Corp.
5.88%, 7/1/22		300		255
Newfield Exploration Co.
5.38%, 1/1/26		500		457
Northern Oil and Gas, Inc.
8.00%, 6/1/20		300		191
Northern Tier Energy LLC/Northern Tier Finance Corp.
7.13%, 11/15/20		300		296

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Energy (cont'd)
ONEOK, Inc.
4.25%, 2/1/22	$	750	$	626
Pacific Drilling V Ltd.
7.25%, 12/1/17 (a)		450		168
Parsley Energy LLC/Parsley Finance Corp.
7.50%, 2/15/22 (a)		750		750
Rice Energy, Inc.
6.25%, 5/1/22		750		656
Rose Rock Midstream LP/Rose Rock Finance Corp.
5.63%, 11/15/23		450		295
Seven Generations Energy Ltd.
8.25%, 5/15/20 (a)		350		353
SM Energy Co.
5.00%, 1/15/24		500		349
Tesoro Logistics LP/Tesoro Logistics Finance Corp.
5.50%, 10/15/19 (a)		500		500
				9,844
Finance (11.6%)
Ally Financial, Inc.
4.13%, 3/30/20		500		497
Ardagh Finance Holdings SA
8.63%, 6/15/19 (a)(e)		511		496
Baytex Energy Corp.
5.63%, 6/1/24 (a)		350		237
CNO Financial Group, Inc.
4.50%, 5/30/20		500		511
Compiler Finance Sub, Inc.
7.00%, 5/1/21 (a)		500		230
CTR Partnership LP/CareTrust Capital Corp.
5.88%, 6/1/21		500		505
DuPont Fabros Technology LP
5.63%, 6/15/23		750		771
HUB International Ltd.
7.88%, 10/1/21 (a)		700		691
Icahn Enterprises LP/Icahn Enterprises Finance Corp.
6.00%, 8/1/20		750		733
Infinity Acquisition LLC/Infinity Acquisition Finance Corp.
7.25%, 8/1/22 (a)		250		216
Interface Security Systems Holdings, Inc./ Interface Security Systems LLC
9.25%, 1/15/18		500		472
Iron Mountain, Inc.
6.00%, 10/1/20 (a)		500		528
iStar, Inc.,
4.00%, 11/1/17		500		490
6.50%, 7/1/21		500		488
Jefferies Finance LLC/JFIN Co-Issuer Corp.
6.88%, 4/15/22 (a)		450		384
KCG Holdings, Inc.
6.88%, 3/15/20 (a)		750		649

	Face Amount (000)		Value (000)
Kennedy-Wilson, Inc.
5.88%, 4/1/24	$	750	$	735
MPT Operating Partnership LP/MPT Finance Corp.
6.38%, 3/1/24		250		264
NewStar Financial, Inc.
7.25%, 5/1/20		400		362
Oxford Finance LLC/Oxford Finance Co-Issuer, Inc.
7.25%, 1/15/18 (a)		800		796
Provident Funding Associates LP/PFG Finance Corp.
6.75%, 6/15/21 (a)		500		476
Radian Group, Inc.
7.00%, 3/15/21		750		779
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp.
9.50%, 6/15/19 (a)		748		774
Sabra Health Care LP/Sabra Capital Corp.
5.50%, 2/1/21		500		504
Transworld Systems, Inc.
9.50%, 8/15/21 (a)		100		50
				12,638
Industrials (16.4%)
ADS Tactical, Inc.
11.00%, 4/1/18 (a)		800		810
Apex Tool Group LLC
7.00%, 2/1/21 (a)		500		407
Artesyn Embedded Technologies, Inc.
9.75%, 10/15/20 (a)		500		426
Associated Asphalt Partners LLC/Road Holdings III LLC/Associated Asphalt Finance
8.50%, 2/15/18 (a)		517		526
Associated Materials LLC/AMH New Finance, Inc.
9.13%, 11/1/17		200		152
Belden, Inc.
5.25%, 7/15/24 (a)		300		288
BlueLine Rental Finance Corp.
7.00%, 2/1/19 (a)		750		695
CEVA Group PLC
4.00%, 5/1/18 (a)		750		649
Cleaver-Brooks, Inc.
8.75%, 12/15/19 (a)		750		712
Consolidated Container Co., LLC/Consolidated Container Capital, Inc.
10.13%, 7/15/20 (a)		350		289
Coveris Holdings SA
7.88%, 11/1/19 (a)		200		180
CPG Merger Sub LLC
8.00%, 10/1/21 (a)		750		703
CTP Transportation Products LLC/CTP Finance, Inc.
8.25%, 12/15/19 (a)		750		742
DH Services Luxembourg Sarl
7.75%, 12/15/20 (a)		50		50
Emeco Pty Ltd.
9.88%, 3/15/19 (a)		200		97

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
EnPro Industries, Inc.
5.88%, 9/15/22	$	452	$	463
Flexi-Van Leasing, Inc.
7.88%, 8/15/18 (a)		350		348
GCP Applied Technologies, Inc.
9.50%, 2/1/23 (a)		900		979
Gibraltar Industries, Inc.
6.25%, 2/1/21		736		751
Iracore International Holdings, Inc.
9.50%, 6/1/18 (a)		400		242
Jac Holding Corp.
11.50%, 10/1/19 (a)		337		332
JB Poindexter & Co., Inc.
9.00%, 4/1/22 (a)		500		526
Kemet Corp.
10.50%, 5/1/18		450		332
LMI Aerospace, Inc.
7.38%, 7/15/19		500		472
Martin Midstream Partners LP/Martin Midstream Finance Corp.
7.25%, 2/15/21		500		436
MasTec, Inc.
4.88%, 3/15/23		745		643
Michael Baker Holdings LLC/Michael Baker Finance Corp.
8.88%, 4/15/19 (a)(e)		367		235
Michael Baker International LLC/CDL Acquisition Co., Inc.
8.25%, 10/15/18 (a)		450		392
Navios Maritime Holdings, Inc./Navios Maritime Finance II US, Inc.
8.13%, 2/15/19		550		165
OPE KAG Finance Sub, Inc.
7.88%, 7/31/23 (a)		500		501
Plastipak Holdings, Inc.
6.50%, 10/1/21 (a)		500		490
SAExploration Holdings, Inc.
10.00%, 7/15/19		750		424
Standard Industries, Inc.
5.50%, 2/15/23 (a)		550		565
Summit Materials LLC/Summit Materials Finance Corp.
6.13%, 7/15/23		750		716
Syncreon Group BV/Syncreon Global Finance US, Inc.
8.63%, 11/1/21 (a)		450		359
Techniplas LLC
10.00%, 5/1/20 (a)		500		363
Vander Intermediate Holding II Corp.
9.75%, 2/1/19 (a)(e)		100		75
Wise Metals Intermediate Holdings LLC/Wise Holdings Finance Corp.
9.75%, 6/15/19 (a)(e)		450		207

	Face Amount (000)		Value (000)
XPO Logistics, Inc.
7.88%, 9/1/19 (a)	$	400	$	416
Zachry Holdings, Inc.
7.50%, 2/1/20 (a)		750		735
				17,893
Technology (1.7%)
BCP Singapore VI Cayman Financing Co., Ltd.
8.00%, 4/15/21 (a)		450		300
Boxer Parent Co., Inc.
9.00%, 10/15/19 (a)(e)		450		313
First Data Corp.
7.00%, 12/1/23 (a)		500		507
Western Digital Corp.
7.38%, 4/1/23 (a)		750		767
				1,887
Utilities (1.1%)
DPL, Inc.
6.75%, 10/1/19		750		765
LBC Tank Terminals Holding Netherlands BV
6.88%, 5/15/23 (a)		400		374
Sabine Pass LNG LP
6.50%, 11/1/20		50		53
				1,192
				104,186
Sovereign (0.6%)
Government (0.6%)
Select Medical Corp.
6.38%, 6/1/21		350		332
Waterjet Holdings, Inc.
7.63%, 2/1/20 (a)		370		370
				702
Variable Rate Senior Loan Interests (3.7%)
Basic Materials (0.4%)
FMG Resources August 2006 Pty Ltd., Term B
4.25%, 6/30/19		496		420
Consumer, Cyclical (1.0%)
Diamond Resorts Corp., Term Loan
5.50%, 5/9/21		520		507
Graton Economic Development Authority, Term B
4.75%, 9/1/22		285		286
Navistar International Corp., Term B
6.50%, 8/7/20		399		366
				1,159
Energy (0.1%)
Drillships Ocean Ventures, Inc., Term B
5.50%, 7/25/21		271		125

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Industrials (1.9%)
Atkore International, Inc., 2nd Lien Term
7.75%, 10/9/21	$	300	$	278
Builders FirstSource, Inc., Term B
6.00%, 7/31/22		498		496
Commercial Barge Line Co., 1st Lien Term
1.00%, 11/12/20		500		451
Gates Global, Inc., Term B
4.25%, 7/6/21		392		372
Gruden Acquisition, Inc., 1st Lien Term
5.75%, 8/18/22		499		436
				2,033
Technology (0.3%)
TTM Technologies, Inc., 1st Lien Term
6.00%, 5/31/21		367		349
				4,086
Total Fixed Income Securities (Cost $115,115)				108,974
	Shares
Common Stocks (0.1%)
Auto Components (0.0%)
Exide Technologies (d)(g)		592		—	@
Metals & Mining (0.1%)
UC Holdings, Inc. (g)		2,826		72
Total Common Stocks (Cost $71)				72
Participation Note (0.0%)
Metals & Mining (0.0%)
UC Holdings, Inc., Equity Linked Notes, expires 9/23/20 (d)(g) (Cost $—)		2,802		—
Total Investments (100.1%) (Cost $115,186) (h)				109,046
Liabilities in Excess of Other Assets (–0.1%)				(141	)
Net Assets (100.0%)			$	108,905

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

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

(d) At March 31, 2016, the Portfolio held fair valued securities valued at less than $500, representing less than 0.05% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund's Trustees.

(e) Payment-in-kind security.

(f) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 31, 2016.

(g) Non-income producing security.

(h) At March 31, 2016, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,417,000 and the aggregate gross unrealized depreciation is approximately $7,557,000 resulting in net unrealized depreciation of approximately $6,140,000.

@ Value is less than $500.

Portfolio Composition

Classification	Percentage of Total Investments
Consumer, Cyclical		21.1	%
Consumer, Non-Cyclical		17.3
Industrials		16.3
Finance		11.5
Communications		11.5
Energy		9.0
Other*		8.3
Basic Materials		5.0
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.
9

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

High Yield Portfolio

Statement of Assets and Liabilities	March 31, 2016 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $115,186)	$	109,046
Interest Receivable		2,279
Receivable for Investments Sold		1,503
Receivable for Portfolio Shares Sold		151
Receivable from Affiliate		2
Other Assets		84
Total Assets		113,065
Liabilities:
Payable for Investments Purchased		2,620
Payable for Portfolio Shares Redeemed		1,355
Payable for Professional Fees		55
Payable for Advisory Fees		54
Bank Overdraft		23
Payable for Custodian Fees		17
Payable for Shareholder Services Fees — Class A		11
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		2
Payable for Administration Fees		7
Payable for Sub Transfer Agency Fees — Class A		6
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		10
Total Liabilities		4,160
Net Assets	$	108,905
Net Assets Consist Of:
Paid-in-Capital	$	117,193
Accumulated Undistributed Net Investment Income		576
Accumulated Net Realized Loss		(2,724	)
Unrealized Appreciation (Depreciation) on:
Investments		(6,140	)
Net Assets	$	108,905

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

High Yield Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2016 (000)
CLASS I:
Net Assets	$	38,307
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,121,497
Net Asset Value, Offering and Redemption Price Per Share	$	9.29
CLASS A:
Net Assets	$	54,795
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		5,904,199
Net Asset Value, Redemption Price Per Share	$	9.28
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.41
Maximum Offering Price Per Share	$	9.69
CLASS L:
Net Assets	$	601
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		64,751
Net Asset Value, Offering and Redemption Price Per Share	$	9.28
CLASS C:
Net Assets	$	1,987
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		214,257
Net Asset Value, Offering and Redemption Price Per Share	$	9.27
CLASS IS:
Net Assets	$	13,215
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,421,695
Net Asset Value, Offering and Redemption Price Per Share	$	9.30

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

High Yield Portfolio

Statement of Operations	Six Months Ended March 31, 2016 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	3,173
Dividends from Security of Affiliated Issuer (Note G)		4
Total Investment Income		3,177
Expenses:
Advisory Fees (Note B)		244
Shareholder Services Fees — Class A (Note D)		68
Distribution and Shareholder Services Fees — Class L (Note D)		2
Distribution and Shareholder Services Fees — Class C (Note D)		8
Professional Fees		51
Sub Transfer Agency Fees — Class I		3
Sub Transfer Agency Fees — Class A		40
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Administration Fees (Note C)		32
Registration Fees		23
Custodian Fees (Note F)		19
Pricing Fees		15
Shareholder Reporting Fees		6
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Trustees' Fees and Expenses		1
Other Expenses		4
Total Expenses		521
Waiver of Advisory Fees (Note B)		(124	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(5	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		388
Net Investment Income		2,789
Realized Gain (Loss):
Investments Sold		(1,324	)
Swap Agreements		43
Net Realized Loss		(1,281	)
Change in Unrealized Appreciation (Depreciation):
Investments		(1,393	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(2,674	)
Net Increase in Net Assets Resulting from Operations	$	115

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

High Yield Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2016 (unaudited) (000)			Year Ended September 30, 2015 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	2,789		$	3,972
Net Realized Loss		(1,281	)		(1,431	)
Net Change in Unrealized Appreciation (Depreciation)		(1,393	)		(4,386	)
Net Increase (Decrease) in Net Assets Resulting from Operations		115			(1,845	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(761	)		(714	)
Net Realized Gain		—			(65	)
Class A:
Net Investment Income		(1,991	)		(2,818	)
Net Realized Gain		—			(216	)
Class L:
Net Investment Income		(29	)		(71	)
Net Realized Gain		—			(6	)
Class C:
Net Investment Income		(54	)		(24	)
Class IS:
Net Investment Income		(21	)		(16	)
Net Realized Gain		—			(—	@)
Total Distributions		(2,856	)		(3,930	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		29,246			13,941
Distributions Reinvested		761			339
Redeemed		(5,005	)		(13,226	)
Class A:
Subscribed		15,041			33,441
Distributions Reinvested		1,986			3,021
Redeemed		(15,386	)		(16,149	)
Class L:
Subscribed		41			527
Distributions Reinvested		28			71
Redeemed		(533	)		(884	)
Class C:
Subscribed		1,187			2,023	*
Distributions Reinvested		54			23	*
Redeemed		(473	)		(651	)*
Class IS:
Subscribed		13,688			1,828
Redeemed		(1,280	)		(1,224	)
Net Increase in Net Assets Resulting from Capital Share Transactions		39,355			23,080
Total Increase in Net Assets		36,614			17,305
Net Assets:
Beginning of Period		72,291			54,986
End of Period (Including Accumulated Undistributed Net Investment Income of $576 and $643)	$	108,905		$	72,291
(1) Capital Share Transactions:
Class I:
Shares Subscribed		3,229			1,367
Shares Issued on Distributions Reinvested		82			33
Shares Redeemed		(543	)		(1,286	)
Net Increase in Class I Shares Outstanding		2,768			114
Class A:
Shares Subscribed		1,582			3,271
Shares Issued on Distributions Reinvested		212			297
Shares Redeemed		(1,618	)		(1,586	)
Net Increase in Class A Shares Outstanding		176			1,982

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

High Yield Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2016 (unaudited) (000)			Year Ended September 30, 2015 (000)
Class L:
Shares Subscribed		4			52
Shares Issued on Distributions Reinvested		3			7
Shares Redeemed		(56	)		(87	)
Net Decrease in Class L Shares Outstanding		(49	)		(28	)
Class C:
Shares Subscribed		126			197	*
Shares Issued on Distributions Reinvested		6			2	*
Shares Redeemed		(52	)		(65	)*
Net Increase in Class C Shares Outstanding		80			134
Class IS:
Shares Subscribed		1,501			180
Shares Redeemed		(138	)		(122	)
Net Increase in Class IS Shares Outstanding		1,363			58

* For the period April 30, 2015 through September 30, 2015.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

High Yield Portfolio

	Class I
	Six Months Ended March 31, 2016			Year Ended September 30,									Period from February 7, 2012^ to
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	9.80		$	10.73		$	11.00		$	10.71		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.33			0.71			0.75			0.81			0.50
Net Realized and Unrealized Gain (Loss)		(0.48	)		(0.92	)		0.25			0.55			0.59
Total from Investment Operations		(0.15	)		(0.21	)		1.00			1.36			1.09
Distributions from and/or in Excess of:
Net Investment Income		(0.36	)		(0.66	)		(0.77	)		(0.81	)		(0.38	)
Net Realized Gain		—			(0.06	)		(0.50	)		(0.26	)		—
Total Distributions		(0.36	)		(0.72	)		(1.27	)		(1.07	)		(0.38	)
Net Asset Value, End of Period	$	9.29		$	9.80		$	10.73		$	11.00		$	10.71
Total Return++		(1.49	)%#		(2.10	)%		9.48	%		13.38	%		11.07	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	38,307		$	13,255		$	13,300		$	12,678		$	10,975
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.68	%+^^*		0.74	%+		0.75	%+		0.75	%+		0.74	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		7.15	%+^^*		6.88	%+		6.89	%+		7.42	%+		7.53	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.01	%*
Portfolio Turnover Rate		33	%#		62	%		96	%		227	%		192	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.00	%*		1.17	%		1.85	%		3.16	%		3.17	%*
Net Investment Income to Average Net Assets		6.83	%*		6.45	%		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.

^^ Effective January 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.65% for Class I shares. Prior to January 1, 2016, the maximum ratio was 0.75% for Class I shares.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

High Yield Portfolio

	Class A
	Six Months Ended March 31, 2016			Year Ended September 30,									Period from February 7, 2012^ to
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	9.78		$	10.72		$	10.99		$	10.71		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.32			0.66			0.65			0.77			0.48
Net Realized and Unrealized Gain (Loss)		(0.47	)		(0.92	)		0.31			0.55			0.59
Total from Investment Operations		(0.15	)		(0.26	)		0.96			1.32			1.07
Distributions from and/or in Excess of:
Net Investment Income		(0.35	)		(0.62	)		(0.73	)		(0.78	)		(0.36	)
Net Realized Gain		—			(0.06	)		(0.50	)		(0.26	)		—
Total Distributions		(0.35	)		(0.68	)		(1.23	)		(1.04	)		(0.36	)
Net Asset Value, End of Period	$	9.28		$	9.78		$	10.72		$	10.99		$	10.71
Total Return++		(1.67	)%#		(2.43	)%		9.15	%		13.01	%		10.92	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	54,795		$	56,042		$	40,157		$	1,092		$	107
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.05	%+^^^*		1.10	%+		1.02	%+		1.01	%+^^		0.99	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		6.79	%+^^^*		6.49	%+		5.99	%+		7.04	%+^^		7.28	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.01	%		0.00	%§		0.01	%*
Portfolio Turnover Rate		33	%#		62	%		96	%		227	%		192	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.37	%*		1.53	%		2.06	%		4.22	%		3.42	%*
Net Investment Income to Average Net Assets		6.47	%*		6.06	%		4.95	%		3.83	%		4.85	%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

^^ 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.

^^^ Effective January 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class A shares. Prior to January 1, 2016, the maximum ratio was 1.10% for Class A shares.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

High Yield Portfolio

	Class L
	Six Months Ended March 31, 2016			Year Ended September 30,									Period from February 7, 2012^ to
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	9.78		$	10.72		$	10.99		$	10.70		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.31			0.64			0.67			0.75			0.46
Net Realized and Unrealized Gain (Loss)		(0.48	)		(0.93	)		0.27			0.56			0.59
Total from Investment Operations		(0.17	)		(0.29	)		0.94			1.31			1.05
Distributions from and/or in Excess of:
Net Investment Income		(0.33	)		(0.59	)		(0.71	)		(0.76	)		(0.35	)
Net Realized Gain		—			(0.06	)		(0.50	)		(0.26	)		—
Total Distributions		(0.33	)		(0.65	)		(1.21	)		(1.02	)		(0.35	)
Net Asset Value, End of Period	$	9.28		$	9.78		$	10.72		$	10.99		$	10.70
Total Return++		(1.79	)%#		(2.70	)%		8.88	%		12.82	%		10.66	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	601		$	1,111		$	1,519		$	326		$	107
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.31	%+^^^*		1.35	%+		1.35	%+		1.26	%+^^		1.24	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		6.52	%+^^^*		6.25	%+		6.14	%+		6.90	%+^^		7.03	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.01	%*
Portfolio Turnover Rate		33	%#		62	%		96	%		227	%		192	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.78	%*		1.84	%		2.52	%		4.11	%		3.67	%*
Net Investment Income to Average Net Assets		6.05	%*		5.76	%		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.

^^ 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.

^^^ Effective January 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.25% for Class L shares. Prior to January 1, 2016, the maximum ratio was 1.35% for Class L shares.

§ 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

Semi-Annual Report — March 31, 2016

Financial Highlights

High Yield Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	9.78		$	10.39
Income (Loss) from Investment Operations:
Net Investment Income†		0.28			0.24
Net Realized and Unrealized Loss		(0.48	)		(0.62	)
Total from Investment Operations		(0.20	)		(0.38	)
Distributions from and/or in Excess of:
Net Investment Income		(0.31	)		(0.23	)
Net Asset Value, End of Period	$	9.27		$	9.78
Total Return++		(2.03	)%#		(3.75	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,987		$	1,309
Ratios of Expenses to Average Net Assets ⁽¹⁾		1.80	%+^^*		1.84	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		6.02	%+^^*		5.60	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§*
Portfolio Turnover Rate		33	%#		62	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		2.11	%*		2.15	%*
Net Investment Income to Average Net Assets		5.71	%*		5.29	%*

^ Commencement of Offering.

† 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.

^^ Effective January 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.75% for Class C shares. Prior to January 1, 2016, the maximum ratio was 1.85% for Class C 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

Semi-Annual Report — March 31, 2016

Financial Highlights

High Yield Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Year Ended September 30, 2015			Period from March 28, 2014^ to September 30, 2014
Net Asset Value, Beginning of Period	$	9.79		$	10.74		$	10.98
Income (Loss) from Investment Operations:
Net Investment Income†		0.31			0.69			0.37
Net Realized and Unrealized Loss		(0.44	)		(0.92	)		(0.27	)
Total from Investment Operations		(0.13	)		(0.23	)		0.10
Distributions from and/or in Excess of:
Net Investment Income		(0.36	)		(0.66	)		(0.34	)
Net Realized Gain		—			(0.06	)		—
Total Distributions		(0.36	)		(0.72	)		(0.34	)
Net Asset Value, End of Period	$	9.30		$	9.79		$	10.74
Total Return++		(1.47	)%#		(2.17	)%		0.89	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13,215		$	574		$	10
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.63	%+^^*		0.72	%+		0.72	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		6.75	%+^^*		6.75	%+		6.66	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§*
Portfolio Turnover Rate		33	%#		62	%		96	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.03	%*		1.57	%		15.70	%*
Net Investment Income (Loss) to Average Net Assets		6.35	%*		5.90	%		(8.32	)%*

^ Commencement of Offering.

† 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 January 1, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.62% for Class IS shares. Prior to January 1, 2016, the maximum ratio was 0.72% 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

Semi-Annual Report — March 31, 2016

Notes to Financial Statements (unaudited)

The accompanying financial statements relate to the High Yield Portfolio. The Portfolio seeks total return. The Portfolio offers five classes of shares — Class I, Class A, Class L, Class C and Class IS.

On April 30, 2015, the Portfolio suspended offering Class L shares to all investors. Existing Class L shareholders may invest through reinvestment of dividends and distributions.

collateralized loans ("Senior Loans") are valued based on quotations received from an independent pricing service; (6) 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; (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (8) 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

Semi-Annual Report — March 31, 2016

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

and financial instrument dealers, and other market sources to determine fair value.

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 March 31, 2016.

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	$	—	$	104,186	$	—	†	$	104,186	†
Sovereign		—		702		—			702
Variable Rate Senior Loan Interests		—		4,086		—			4,086
Total Fixed Income Securities		—		108,974		—	†		108,974	†
Common Stocks
Auto Components		—		—		—	@		—	@
Metals & Mining		—		72		—			72
Total Common Stocks		—		72		—	@		72
Participation Note		—		—		—	†		—	†
Total Assets	$	—	$	109,046	$	—	@†	$	109,046	†

† Includes one security which is valued at zero.

@ Value is less than $500.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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

Corporate
Bond
(000)

Common
Stock
(000)

Participation
Note
(000)

Beginning Balance

—

Purchases

—

††

Sales

—

Amortization of discount

—

Transfers in

—

†

—

Transfers out

—

Corporate actions

—

Change in unrealized appreciation
(depreciation)

—

Realized gains (losses)

—

Ending Balance

—

†

—

††

Net change in unrealized
appreciation (depreciation)
from investments still held as of
March 31, 2016

—

† Includes one security which is valued at zero.

†† Includes one security which was purchased at zero cost.

@ Value is less than $500.

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

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

Semi-Annual Report — March 31, 2016

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

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.

securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap agreement and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

The following table sets forth by primary risk exposure the Portfolio's realized gains (losses) by type of derivative contract for the six months ended March 31, 2016 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Credit Risk	Swap Agreement	$	43

4. Senior Loans: Senior Loans are typically structured by a syndicate of lenders ("Lenders"), one or more of which administers the Senior Loan on behalf of the Lenders ("Agent"). Lenders may sell interests in Senior Loans to third parties ("Participations") or may assign all or a portion of their interest in a Senior Loan to third parties ("Assignments"). Senior Loans are exempt from

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

registration under the Securities Act of 1933. Presently, Senior Loans are not readily marketable and are often subject to restrictions on resale.

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

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 monthly. Net realized capital gains, if any, are distributed at least annually.

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 and shareholder services, 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 0.75% for Class I shares, 1.10% for Class A shares, 1.35% for Class L shares, 1.85% for Class C shares and 0.72% for Class IS shares. Effective January 4, 2016, the Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses will not exceed 0.65% for Class I shares, 1.00% for Class A shares, 1.25% for Class L shares, 1.75% for Class C shares and 0.62% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

For the six months ended March 31, 2016, approximately $124,000 of advisory fees were waived and approximately $8,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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, Class L and Class C shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2016, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $68,242,000 and $27,114,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2016.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	991			$	45,385			$	46,376			$	4			$	—

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 NAV of the Portfolio.

2015 Distributions Paid From:				2014 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	3,836	$	94	$	1,880	$	81

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.

Permanent differences, primarily due to a nondeductible expense and tax adjustments on bonds sold, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	11			$	(1	)		$	(10	)

At September 30, 2015, 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)
$	668			$	—

Post-October Currency and Specified Ordinary Losses (000)				Post-October Capital Losses (000)
$	—			$	1,419

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

Trustee and Officer Information (unaudited)

Trustees

Officers

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

IFTHYSAN
1482424 EXP. 05.31.17

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Corporate Bond Portfolio

Semi-Annual Report

March 31, 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					11
Statement of Operations					13
Statements of Changes in Net Assets					14
Financial Highlights					15
Notes to Financial Statements					19
U.S. Privacy Policy					29
Trustee and Officer Information					32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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 March 31, 2016 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 10/1/15		Actual Ending Account Value 3/31/16		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	$	1,083.80	$	1,021.50	$	3.65	$	3.54		0.70	%
Corporate Bond Portfolio Class A		1,000.00		1,082.70		1,019.80		5.42		5.25		1.04
Corporate Bond Portfolio Class L		1,000.00		1,081.20		1,018.40		6.87		6.66		1.32
Corporate Bond Portfolio Class C		1,000.00		1,077.90		1,016.00		9.35		9.07		1.80

** Annualized.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (89.9%)
Asset-Backed Securities (0.8%)
CVS Pass-Through Trust,
6.04%, 12/10/28	$	109	$	123
8.35%, 7/10/31 (a)		128		161
				284
Corporate Bonds (87.2%)
Finance (32.8%)
ABN Amro Bank N.V.
4.75%, 7/28/25 (a)		200		202
ACE INA Holdings, Inc.
3.35%, 5/15/24		125		131
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust
3.75%, 5/15/19		150		150
Alexandria Real Estate Equities, Inc.
3.90%, 6/15/23		50		51
Ally Financial, Inc.
4.13%, 3/30/20		100		99
American Campus Communities Operating Partnership LP
3.75%, 4/15/23		100		101
American Express Co.
3.63%, 12/5/24		75		76
American Express Credit Corp.,
MTN
2.38%, 5/26/20		200		203
American International Group, Inc.
4.88%, 6/1/22		100		110
Automatic Data Processing, Inc.
3.38%, 9/15/25		50		53
Bank of America Corp.,
MTN
4.00%, 4/1/24 - 1/22/25		350		360
4.25%, 10/22/26		91		93
4.75%, 4/21/45		50		50
5.00%, 1/21/44		125		138
Bank of New York Mellon Corp. (The),
MTN
3.65%, 2/4/24		60		64
BBVA Bancomer SA
6.50%, 3/10/21 (a)		150		165
Bear Stearns Cos., LLC (The)
5.55%, 1/22/17 (b)		450		464
BNP Paribas SA,
MTN
4.25%, 10/15/24 (b)		200		203
5.00%, 1/15/21		95		106
Boston Properties LP,
3.65%, 2/1/26		100		104
3.80%, 2/1/24		25		26
BPCE SA
5.15%, 7/21/24 (a)		200		205

	Face Amount (000)		Value (000)
Capital One Bank, USA NA
3.38%, 2/15/23	$	342	$	345
Capital One Financial Corp.
2.45%, 4/24/19		50		51
Citigroup, Inc.,
5.50%, 9/13/25		175		192
6.68%, 9/13/43		50		61
8.13%, 7/15/39		100		148
CNA Financial Corp.
5.75%, 8/15/21		75		84
Cooperatieve Rabobank UA
3.95%, 11/9/22		250		256
Credit Suisse AG,
MTN
3.63%, 9/9/24		250		254
6.00%, 2/15/18		61		65
Discover Bank
2.00%, 2/21/18		250		249
Discover Financial Services
3.95%, 11/6/24		75		74
Five Corners Funding Trust
4.42%, 11/15/23 (a)		200		210
GE Capital International Funding Co.,
2.34%, 11/15/20 (a)		200		205
4.42%, 11/15/35 (a)		211		230
Goldman Sachs Group, Inc. (The),
MTN
4.80%, 7/8/44		125		131
6.25%, 2/1/41		75		94
6.75%, 10/1/37		205		246
Goodman Funding Pty Ltd.
6.38%, 4/15/21 (a)		250		290
Hartford Financial Services Group, Inc. (The)
5.50%, 3/30/20		275		305
Healthcare Trust of America Holdings LP
3.70%, 4/15/23		100		99
Hospitality Properties Trust
5.25%, 2/15/26		100		101
HSBC Finance Corp.
6.68%, 1/15/21		135		155
HSBC Holdings PLC
6.50%, 5/2/36		100		117
HSBC USA, Inc.
3.50%, 6/23/24		100		102
ING Bank N.V.
5.80%, 9/25/23 (a)		100		109
Intesa Sanpaolo SpA
5.25%, 1/12/24		200		216
JPMorgan Chase & Co.,
4.95%, 6/1/45		130		138
5.50%, 10/15/40		150		181
LeasePlan Corp. N.V.
2.88%, 1/22/19 (a)		200		199

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Liberty Mutual Group, Inc.
4.85%, 8/1/44 (a)	$	50	$	48
Lincoln National Corp.
7.00%, 6/15/40		75		92
Massachusetts Mutual Life Insurance Co.
4.50%, 4/15/65 (a)		50		46
Metropolitan Life Global Funding I
2.00%, 4/14/20 (a)		200		199
Nationwide Building Society
6.25%, 2/25/20 (a)		260		297
Pacific LifeCorp
6.00%, 2/10/20 (a)		150		168
PNC Financial Services Group, Inc. (The)
3.90%, 4/29/24		80		84
Prudential Financial, Inc.
5.63%, 6/15/43 (c)		170		173
Realty Income Corp.
3.25%, 10/15/22		150		148
Santander UK Group Holdings PLC,
2.88%, 10/16/20		100		100
3.13%, 1/8/21		125		126
Simon Property Group LP
2.50%, 7/15/21		150		153
TD Ameritrade Holding Corp.
3.63%, 4/1/25		100		105
UnitedHealth Group, Inc.,
2.75%, 2/15/23		55		56
2.88%, 3/15/23		255		262
3.75%, 7/15/25		150		162
Visa, Inc.
4.30%, 12/14/45		125		137
Weingarten Realty Investors
3.38%, 10/15/22		150		149
Wells Fargo & Co.,
2.15%, 1/15/19 (b)		60		61
Series M
3.45%, 2/13/23		125		128
MTN
4.10%, 6/3/26		250		263
4.13%, 8/15/23		130		139
				11,157
Industrials (47.0%)
21st Century Fox America, Inc.
4.75%, 9/15/44		125		130
ABB Treasury Center USA, Inc.
4.00%, 6/15/21 (a)		50		53
AbbVie, Inc.
4.70%, 5/14/45		75		80
Actavis Funding SCS,
3.80%, 3/15/25		10		10
4.75%, 3/15/45		130		137
4.85%, 6/15/44		50		53

	Face Amount (000)		Value (000)
Alfa SAB de CV
5.25%, 3/25/24 (a)	$	200	$	210
Alibaba Group Holding Ltd.
2.50%, 11/28/19		200		202
Altria Group, Inc.
5.38%, 1/31/44		55		67
Amazon.com, Inc.,
3.80%, 12/5/24		75		82
4.95%, 12/5/44		50		58
American Airlines Pass-Through Trust
4.00%, 7/15/25		175		180
American Tower Corp.
4.40%, 2/15/26		50		53
Amgen, Inc.
5.15%, 11/15/41		98		109
Anadarko Petroleum Corp.,
5.55%, 3/15/26		25		25
6.45%, 9/15/36		100		100
Anheuser-Busch InBev Finance, Inc.,
3.65%, 2/1/26		125		132
3.70%, 2/1/24 (b)		200		214
4.90%, 2/1/46		175		196
Apple, Inc.,
3.85%, 5/4/43		50		49
4.50%, 2/23/36		125		134
Aramark Services, Inc.
5.75%, 3/15/20		95		98
Ashland, Inc.
6.88%, 5/15/43		50		48
AstraZeneca PLC
6.45%, 9/15/37		125		166
AT&T, Inc.,
5.15%, 3/15/42		75		76
5.65%, 2/15/47		100		111
6.30%, 1/15/38		225		259
Baidu, Inc.
3.25%, 8/6/18		200		205
Barrick Gold Corp.
4.10%, 5/1/23 (b)		100		98
Baxalta, Inc.
5.25%, 6/23/45 (a)		100		106
BHP Billiton Finance USA Ltd.,
3.85%, 9/30/23 (b)		50		52
5.00%, 9/30/43		75		76
Boston Scientific Corp.
3.85%, 5/15/25		100		104
BP Capital Markets PLC
3.51%, 3/17/25 (b)		125		127
Brambles USA, Inc.
4.13%, 10/23/25 (a)		150		156
British Airways Pass-Through Trust
4.63%, 6/20/24 (a)		162		170
Buckeye Partners LP
4.15%, 7/1/23		175		158

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Burlington Northern Santa Fe LLC,
4.40%, 3/15/42	$	75	$	80
4.55%, 9/1/44		50		54
Carrizo Oil & Gas, Inc.
6.25%, 4/15/23		100		89
Caterpillar, Inc.
3.80%, 8/15/42		50		49
CBS Corp.,
4.60%, 1/15/45		25		24
4.90%, 8/15/44		50		49
CCO Safari II LLC,
4.91%, 7/23/25 (a)		75		79
6.48%, 10/23/45 (a)		150		167
Celgene Corp.,
3.88%, 8/15/25 (b)		100		105
5.00%, 8/15/45		50		54
CEVA Group PLC
7.00%, 3/1/21 (a)		75		60
Cimarex Energy Co.
5.88%, 5/1/22		150		155
ConocoPhillips Co.
2.20%, 5/15/20 (b)		100		98
Crown Castle International Corp.
4.45%, 2/15/26		75		78
Daimler Finance North America LLC
8.50%, 1/18/31		161		247
DCP Midstream LLC
5.35%, 3/15/20 (a)		38		33
Deere & Co.
3.90%, 6/9/42		60		60
Delphi Automotive PLC
3.15%, 11/19/20		125		128
Deutsche Telekom International Finance BV
8.75%, 6/15/30		75		113
Eastman Chemical Co.
3.80%, 3/15/25		100		103
eBay, Inc.
2.50%, 3/9/18		100		102
Eldorado Gold Corp.
6.13%, 12/15/20 (a)		105		96
Embraer Netherlands Finance BV
5.05%, 6/15/25		100		88
Endeavor Energy Resources LP/EER Finance, Inc.
7.00%, 8/15/21 (a)		75		70
Ensco PLC
5.75%, 10/1/44		50		25
Enterprise Products Operating LLC
4.45%, 2/15/43		175		157
Exxon Mobil Corp.
4.11%, 3/1/46		75		80
FedEx Corp.
3.20%, 2/1/25 (b)		100		103

	Face Amount (000)		Value (000)
Ford Motor Credit Co., LLC
5.88%, 8/2/21	$	200	$	229
General Motors Co.
6.60%, 4/1/36		125		138
General Motors Financial Co., Inc.,
4.30%, 7/13/25		55		55
4.38%, 9/25/21		125		129
Gilead Sciences, Inc.,
3.65%, 3/1/26		25		27
4.50%, 2/1/45		25		27
4.80%, 4/1/44		50		55
GlaxoSmithKline Capital, Inc.
6.38%, 5/15/38		75		102
Goldcorp, Inc.
5.45%, 6/9/44		50		46
Halliburton Co.
3.38%, 11/15/22		100		102
Harris Corp.
4.85%, 4/27/35		50		52
HCA, Inc.
4.75%, 5/1/23		130		133
Heathrow Funding Ltd.
4.88%, 7/15/21 (a)		190		206
Hewlett Packard Enterprise Co.
4.90%, 10/15/25 (a)		125		129
Hilcorp Energy I LP/Hilcorp Finance Co.
5.75%, 10/1/25 (a)		55		48
Home Depot, Inc.,
3.35%, 9/15/25		25		27
5.88%, 12/16/36		109		142
Hutchison Whampoa International 14 Ltd.
1.63%, 10/31/17 (a)		200		200
Kinder Morgan Energy Partners LP
4.15%, 2/1/24		150		141
Kinder Morgan, Inc.,
4.30%, 6/1/25 (b)		50		48
5.55%, 6/1/45		75		67
Kroger Co. (The)
6.90%, 4/15/38		80		106
Lockheed Martin Corp.
3.55%, 1/15/26		125		133
Lundin Mining Corp.
7.50%, 11/1/20 (a)		97		93
LyondellBasell Industries N.V.
4.63%, 2/26/55		75		67
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC
5.50%, 4/15/25 (a)		100		89
MasTec, Inc.
4.88%, 3/15/23		140		121
McDonald's Corp.,
MTN
4.60%, 5/26/45		100		106

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Mead Johnson Nutrition Co.
3.00%, 11/15/20	$	75	$	77
Medtronic, Inc.
4.63%, 3/15/45		200		224
Merck & Co., Inc.
2.80%, 5/18/23		125		131
Motorola Solutions, Inc.
4.00%, 9/1/24		200		185
MPLX LP
4.00%, 2/15/25		100		86
NBC Universal Media LLC
5.95%, 4/1/41		275		352
NetApp, Inc.
2.00%, 12/15/17		100		100
Netflix, Inc.
5.50%, 2/15/22		95		100
Newell Rubbermaid, Inc.
3.85%, 4/1/23		125		130
Nexen Energy ULC
6.40%, 5/15/37		100		114
Nissan Motor Acceptance Corp.
2.55%, 3/8/21 (a)		150		152
Noble Energy, Inc.
5.05%, 11/15/44		50		43
NOVA Chemicals Corp.
5.25%, 8/1/23 (a)		120		118
Novartis Capital Corp.
4.40%, 5/6/44		75		86
Omnicom Group, Inc.,
3.60%, 4/15/26		50		51
3.63%, 5/1/22		95		100
3.65%, 11/1/24		23		24
Ooredoo International Finance Ltd.
3.25%, 2/21/23 (a)		225		224
Oracle Corp.
4.50%, 7/8/44		150		161
Orange SA
9.00%, 3/1/31		50		76
PepsiCo, Inc.
3.60%, 3/1/24		100		110
Philip Morris International, Inc.
4.50%, 3/20/42		150		162
Phillips 66
5.88%, 5/1/42		25		27
Phillips 66 Partners LP
4.68%, 2/15/45		25		21
Plains All American Pipeline LP/ PAA Finance Corp.
6.70%, 5/15/36		61		57
QUALCOMM, Inc.
4.80%, 5/20/45		70		69
QVC, Inc.
4.38%, 3/15/23		150		147

	Face Amount (000)		Value (000)
Rowan Cos., Inc.
5.85%, 1/15/44	$	75	$	44
RR Donnelley & Sons Co.
7.88%, 3/15/21		75		76
Ryder System, Inc.,
MTN
2.65%, 3/2/20 (b)		50		50
SM Energy Co.
6.13%, 11/15/22		55		40
Southern Copper Corp.
7.50%, 7/27/35		100		105
Spectra Energy Capital LLC
7.50%, 9/15/38		100		104
Telefonica Europe BV
8.25%, 9/15/30		84		118
Telstra Corp., Ltd.
3.13%, 4/7/25 (a)(b)		65		66
Tiffany & Co.
4.90%, 10/1/44		40		38
Time Warner, Inc.
7.70%, 5/1/32		91		117
TransCanada PipeLines Ltd.
7.63%, 1/15/39		75		90
Transurban Finance Co., Pty Ltd.
4.13%, 2/2/26 (a)		95		98
Trinity Industries, Inc.
4.55%, 10/1/24		200		167
Tyco International Finance SA
3.90%, 2/14/26		75		78
Union Pacific Railroad Co., Pass-Through Trust
3.23%, 5/14/26		193		197
United Airlines Pass-Through Trust,
Class A
4.30%, 8/15/25		209		217
United Rentals North America, Inc.
5.75%, 11/15/24		80		80
Vale Overseas Ltd.
6.88%, 11/21/36		75		60
Verizon Communications, Inc.,
4.67%, 3/15/55		278		268
5.01%, 8/21/54		260		262
Viacom, Inc.
5.85%, 9/1/43		50		48
Vodafone Group PLC
4.38%, 2/19/43		50		45
Volkswagen Group of America Finance LLC
2.40%, 5/22/20 (a)		200		196
Wal-Mart Stores, Inc.
5.25%, 9/1/35		75		93
Walgreens Boots Alliance, Inc.
3.80%, 11/18/24		25		26
Whole Foods Market, Inc.
5.20%, 12/3/25 (a)		100		105

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Williams Partners LP/ACMP Finance Corp.
4.88%, 5/15/23	$	125	$	109
WM Wrigley Jr. Co.
2.90%, 10/21/19 (a)		230		236
Zimmer Biomet Holdings, Inc.
5.75%, 11/30/39		50		58
				15,966
Utilities (7.4%)
Alabama Power Co.
3.75%, 3/1/45		125		123
APT Pipelines Ltd.
4.20%, 3/23/25 (a)(b)		200		196
Boston Gas Co.
4.49%, 2/15/42 (a)		125		127
Duke Energy Carolinas LLC
3.75%, 6/1/45		75		74
Enable Midstream Partners LP
3.90%, 5/15/24		125		99
Enel Finance International N.V.
6.00%, 10/7/39 (a)		100		118
Energy Transfer Partners LP,
6.13%, 12/15/45		50		45
6.50%, 2/1/42		125		114
Entergy Arkansas, Inc.
3.50%, 4/1/26 (b)		75		80
Exelon Generation Co., LLC
6.25%, 10/1/39		145		150
Jersey Central Power & Light Co.
4.70%, 4/1/24 (a)		200		215
Nevada Power Co.,
Series N
6.65%, 4/1/36		150		195
Oncor Electric Delivery Co., LLC
2.95%, 4/1/25		75		74
Sempra Energy
6.00%, 10/15/39		125		143
South Carolina Electric & Gas Co.
4.50%, 6/1/64		75		75
TransAlta Corp.
4.50%, 11/15/22		235		175
Virginia Electric & Power Co.
2.95%, 1/15/22		325		338
WEC Energy Group, Inc.
3.55%, 6/15/25		75		78
Xcel Energy, Inc.
3.30%, 6/1/25		75		77
				2,496
				29,619

	Face Amount (000)		Value (000)
Sovereign (0.6%)
Sinopec Group Overseas Development 2015 Ltd.
2.50%, 4/28/20 (a)	$	200		201
U.S. Treasury Security (1.1%)
U.S. Treasury Inflation Indexed Bond
0.25%, 1/15/25		375		378
Variable Rate Senior Loan Interest (0.2%)
Industrial (0.2%)
Diamond Resorts Corp.,
Term Loan
5.50%, 5/9/21		70		68
Total Fixed Income Securities (Cost $30,057)				30,550
	Shares
Short-Term Investments (10.7%)
Securities held as Collateral on Loaned Securities (1.3%)
Investment Company (1.1%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		390,978		391
	Face Amount (000)
Repurchase Agreements (0.2%)
Barclays Capital, Inc., (0.30%, dated 3/31/16, due 4/1/16; proceeds $28; fully collateralized by a U.S. Government obligation; 4.50% due 8/15/39; valued at $29)	$	28		28
Merrill Lynch & Co., Inc., (0.30%, dated 3/31/16, due 4/1/16; proceeds $40; fully collateralized by a U.S. Government agency security; 4.00% due 9/20/45; valued at $41)		40		40
				68
Total Securities held as Collateral on Loaned Securities (Cost $459)				459
	Shares
Investment Company (8.3%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $2,822)		2,821,827		2,822
	Face Amount (000)
U.S. Treasury Security (1.1%)
U.S. Treasury Bill
0.51%, 6/9/16 (d)(e) (Cost $360)	$	360		360
Total Short-Term Investments (Cost $3,641)				3,641
Total Investments (100.6%) (Cost $33,698) Including $552 of Securities Loaned (f)(g)				34,191
Liabilities in Excess of Other Assets (–0.6%)				(206	)
Net Assets (100.0%)			$	33,985

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

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

(b) All or a portion of this security was on loan at March 31, 2016.

(c) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 31, 2016.

(d) Rate shown is the yield to maturity at March 31, 2016.

(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 open futures contracts and swap agreements.

(g) At March 31, 2016, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,158,000 and the aggregate gross unrealized depreciation is approximately $665,000 resulting in net unrealized appreciation of approximately $493,000.

MTN Medium Term Note.

Futures Contracts:

The Portfolio had the following futures contracts open at March 31, 2016:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		22	$	4,812		Jun-16	$	(1	)
U.S. Treasury 5 yr. Note		10		1,212		Jun-16		2
U.S. Treasury Long Bond		2		329		Jun-16		(1	)
Short:
U.S. Treasury 10 yr. Note		19		(2,478	)	Jun-16		5
U.S. Treasury Ultra Bond		4		(690	)	Jun-16		4
U.S. Treasury Ultra Long Bond		16		(2,252	)	Jun-16		(27	)
							$	(18	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 31, 2016:

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†
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	200		1.00	%	3/20/19	$	4		$	(8	)	$	(4	)	BBB+
Morgan Stanley & Co., LLC* CDX.NA.HY.24	Buy		173		5.00		6/20/20		(13	)		4			(9	)	NR
Morgan Stanley & Co., LLC* CDX.NA.IG.24	Buy		550		1.00		6/20/20		(11	)		7			(4	)	NR
		$	923					$	(20	)	$	3		$	(17	)

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

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

NR Not rated.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

Portfolio Composition**

Classification	Percentage of Total Investments
Industrials		47.3	%
Finance		33.1
Short-Term Investments		9.4
Utilities		7.4
Other***		2.8
Total Investments		100.0	%****

** Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2016.

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

**** Does not include open long/short futures contracts with an underlying face amount of approximately $11,773,000 with net unrealized depreciation of approximately $18,000. Does not include open swap agreements with net unrealized appreciation of approximately $3,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Corporate Bond Portfolio

Statement of Assets and Liabilities	March 31, 2016 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $30,485)	$	30,978
Investment in Security of Affiliated Issuer, at Value (Cost $3,213)		3,213
Total Investments in Securities, at Value (Cost $33,698)		34,191
Cash		92
Interest Receivable		325
Receivable for Investments Sold		164
Receivable for Portfolio Shares Sold		24
Due from Adviser		22
Premium Paid on Open Swap Agreements		4
Receivable from Affiliate		1
Other Assets		49
Total Assets		34,872
Liabilities:
Collateral on Securities Loaned, at Value		552
Payable for Portfolio Shares Redeemed		153
Payable for Investments Purchased		50
Payable for Professional Fees		49
Payable for Trustees' Fees and Expenses		23
Payable for Custodian Fees		19
Payable for Variation Margin on Futures Contracts		14
Unrealized Depreciation on Swap Agreements		8
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Administration Fees		2
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		1
Payable for Variation Margin on Swap Agreements		—	@
Other Liabilities		12
Total Liabilities		887
Net Assets	$	33,985
Net Assets Consist Of:
Paid-in-Capital	$	88,067
Accumulated Undistributed Net Investment Income		492
Accumulated Net Realized Loss		(55,052	)
Unrealized Appreciation (Depreciation) on:
Investments		493
Futures Contracts		(18	)
Swap Agreements		3
Net Assets	$	33,985

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Corporate Bond Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2016 (000)
CLASS I:
Net Assets	$	30,476
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		2,644,747
Net Asset Value, Offering and Redemption Price Per Share	$	11.52
CLASS A:
Net Assets	$	1,425
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		123,502
Net Asset Value, Redemption Price Per Share	$	11.54
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.51
Maximum Offering Price Per Share	$	12.05
CLASS L:
Net Assets	$	2,074
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		180,083
Net Asset Value, Offering and Redemption Price Per Share	$	11.52
CLASS C:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		892
Net Asset Value, Offering and Redemption Price Per Share	$	11.49
⁽¹⁾ Including: Securities on Loan, at Value:	$	1,324

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Corporate Bond Portfolio

Statement of Operations	Six Months Ended March 31, 2016 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	688
Income from Securities Loaned — Net		3
Dividends from Security of Affiliated Issuer (Note G)		2
Total Investment Income		693
Expenses:
Advisory Fees (Note B)		61
Professional Fees		48
Custodian Fees (Note F)		21
Registration Fees		20
Pricing Fees		17
Administration Fees (Note C)		13
Sub Transfer Agency Fees — Class I		9
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class L		—	@
Shareholder Reporting Fees		8
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Shareholder Services Fees — Class A (Note D)		1
Distribution and Shareholder Services Fees — Class L (Note D)		5
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Trustees' Fees and Expenses		1
Other Expenses		8
Total Expenses		220
Waiver of Advisory Fees (Note B)		(61	)
Expenses Reimbursed by Adviser (Note B)		(22	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(13	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Waiver of Shareholder Servicing Fees — Class A (Note D)		(—	@)
Net Expenses		122
Net Investment Income		571
Realized Gain (Loss):
Investments Sold		1,370
Futures Contracts		(221	)
Swap Agreements		(50	)
Net Realized Gain		1,099
Change in Unrealized Appreciation (Depreciation):
Investments		892
Futures Contracts		43
Swap Agreements		51
Net Change in Unrealized Appreciation (Depreciation)		986
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		2,085
Net Increase in Net Assets Resulting from Operations	$	2,656

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Corporate Bond Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2016 (unaudited) (000)			Year Ended September 30, 2015 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	571		$	1,248
Net Realized Gain		1,099			734
Net Change in Unrealized Appreciation (Depreciation)		986			(1,938	)
Net Increase in Net Assets Resulting from Operations		2,656			44
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(482	)		(1,021	)
Class A:
Net Investment Income		(8	)		(14	)
Class L:
Net Investment Income		(26	)		(54	)
Class C:
Net Investment Income		(—	@)		(—	@)*
Total Distributions		(516	)		(1,089	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		1,964			2,961
Distributions Reinvested		482			1,021
Redeemed		(5,304	)		(8,193	)
Class A:
Subscribed		994			427
Distributions Reinvested		7			12
Redeemed		(223	)		(281	)
Class L:
Subscribed		9			108
Distributions Reinvested		26			54
Redeemed		(254	)		(338	)
Class C:
Subscribed		—			10	*
Net Decrease in Net Assets Resulting from Capital Share Transactions		(2,299	)		(4,219	)
Total Decrease in Net Assets		(159	)		(5,264	)
Net Assets:
Beginning of Period		34,144			39,408
End of Period (Including Accumulated Undistributed Net Investment Income of $492 and $437)	$	33,985		$	34,144
(1) Capital Share Transactions:
Class I:
Shares Subscribed		185			266
Shares Issued on Distributions Reinvested		45			92
Shares Redeemed		(495	)		(740	)
Net Decrease in Class I Shares Outstanding		(265	)		(382	)
Class A:
Shares Subscribed		93			38
Shares Issued on Distributions Reinvested		1			1
Shares Redeemed		(21	)		(25	)
Net Increase in Class A Shares Outstanding		73			14
Class L:
Shares Subscribed		1			10
Shares Issued on Distributions Reinvested		2			5
Shares Redeemed		(23	)		(31	)
Net Decrease in Class L Shares Outstanding		(20	)		(16	)
Class C:
Shares Subscribed		—			1	*

* For the period April 30, 2015 through September 30, 2015.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Corporate Bond Portfolio

	Class I
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	10.80		$	11.12		$	10.53		$	10.93		$	10.27		$	10.17
Income (Loss) from Investment Operations:
Net Investment Income†		0.19			0.37			0.38			0.32			0.36			0.33
Net Realized and Unrealized Gain (Loss)		0.70			(0.37	)		0.53			(0.40	)		0.73			0.07
Total from Investment Operations		0.89			—			0.91			(0.08	)		1.09			0.40
Distributions from and/or in Excess of:
Net Investment Income		(0.17	)		(0.32	)		(0.32	)		(0.32	)		(0.43	)		(0.30	)
Net Asset Value, End of Period	$	11.52		$	10.80		$	11.12		$	10.53		$	10.93		$	10.27
Total Return++		8.38	%**#		(0.04	)%		8.79	%		(0.77	)%		10.94	%		4.05	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	30,476		$	31,427		$	36,598		$	36,186		$	44,779		$	62,410
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.70	%+*		0.70	%+		0.70	%+		1.18	%+^		1.00	%+		0.80	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		3.55	%+*		3.33	%+		3.47	%+		2.91	%+^		3.41	%+		3.27	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		16	%#		45	%		50	%		63	%		129	%		224	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.30	%*		1.15	%		1.13	%		1.21	%		N/A			N/A
Net Investment Income to Average Net Assets		2.95	%*		2.88	%		3.04	%		2.88	%		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.

** Performance was positively impacted by approximately 5.38% due to the receipt of proceeds from the settlement of a class action suit involving the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had this settlement not occurred, the total return for Class I shares would have been approximately 3.00%.

^ 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Corporate Bond Portfolio

	Class A
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	10.81		$	11.12		$	10.53		$	10.92		$	10.27		$	10.16
Income (Loss) from Investment Operations:
Net Investment Income†		0.17			0.33			0.34			0.30			0.34			0.31
Net Realized and Unrealized Gain (Loss)		0.71			(0.37	)		0.53			(0.39	)		0.73			0.08
Total from Investment Operations		0.88			(0.04	)		0.87			(0.09	)		1.07			0.39
Distributions from and/or in Excess of:
Net Investment Income		(0.15	)		(0.27	)		(0.28	)		(0.30	)		(0.42	)		(0.28	)
Net Asset Value, End of Period	$	11.54		$	10.81		$	11.12		$	10.53		$	10.92		$	10.27
Total Return++		8.27	%**#		(0.37	)%		8.43	%		(0.83	)%		10.69	%		3.99	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,425		$	544		$	405		$	1,194		$	961		$	408
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.04	%+*		1.05	%+		1.05	%+		1.34	%+^		1.15	%+		0.95	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		3.21	%+*		2.98	%+		3.12	%+		2.76	%+^		3.26	%+		3.12	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		16	%#		45	%		50	%		63	%		129	%		224	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.79	%*		1.88	%		1.60	%		1.47	%		1.25	%		1.05	%
Net Investment Income to Average Net Assets		2.46	%*		2.15	%		2.57	%		2.63	%		3.16	%		3.02	%

† 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.

** Performance was positively impacted by approximately 5.37% due to the receipt of proceeds from the settlement of a class action suit involving the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had this settlement not occurred, the total return for Class A shares would have been approximately 2.90%.

^ 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Corporate Bond Portfolio

	Class L
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	10.79		$	11.11		$	10.52		$	10.92		$	10.26		$	10.15
Income (Loss) from Investment Operations:
Net Investment Income†		0.16			0.30			0.31			0.26			0.30			0.28
Net Realized and Unrealized Gain (Loss)		0.70			(0.37	)		0.54			(0.40	)		0.74			0.08
Total from Investment Operations		0.86			(0.07	)		0.85			(0.14	)		1.04			0.36
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.25	)		(0.26	)		(0.26	)		(0.38	)		(0.25	)
Net Asset Value, End of Period	$	11.52		$	10.79		$	11.11		$	10.52		$	10.92		$	10.26
Total Return++		8.12	%**#		(0.65	)%		8.15	%		(1.28	)%		10.38	%		3.51	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,074		$	2,163		$	2,405		$	2,649		$	3,149		$	4,080
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.32	%+*		1.31	%+		1.30	%+		1.69	%+^		1.50	%+		1.30	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.93	%+*		2.72	%+		2.87	%+		2.40	%+^		2.91	%+		2.77	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		16	%#		45	%		50	%		63	%		129	%		224	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.83	%*		1.73	%		1.66	%		1.70	%		N/A			N/A
Net Investment Income to Average Net Assets		2.42	%*		2.30	%		2.51	%		2.39	%		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.

^ 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.

§ 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

Semi-Annual Report — March 31, 2016

Financial Highlights

Corporate Bond Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.77		$	11.21
Income (Loss) from Investment Operations:
Net Investment Income†		0.13			0.10
Net Realized and Unrealized Gain (Loss)		0.70			(0.48	)
Total from Investment Operations		0.83			(0.38	)
Distributions from and/or in Excess of:
Net Investment Income		(0.11	)		(0.06	)
Net Asset Value, End of Period	$	11.49		$	10.77
Total Return++		7.79	%**#		(3.40	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10
Ratios of Expenses to Average Net Assets ⁽¹⁾		1.80	%+*		1.80	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.44	%+*		2.25	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§*
Portfolio Turnover Rate		16	%#		45	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		21.17	%*		38.20	%*
Net Investment Loss to Average Net Assets		(16.93	)%*		(34.15	)%*

^ Commencement of Offering.

† 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.

** Performance was positively impacted by approximately 5.27% due to the receipt of proceeds from the settlement of a class action suit involving the Portfolio's past holdings. This was a one-time settlement, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had this settlement not occurred, the total return for Class C shares would have been approximately 2.52%.

§ 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

Semi-Annual Report — March 31, 2016

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust (''MSIFT" or the "Fund'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Fund is comprised of eight 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 Corporate Bond Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers four classes of shares — Class I, Class A, Class L and Class C.

On April 30, 2015, the Portfolio suspended offering Class L shares to all investors. Existing Class L shareholders may invest through reinvestment of dividends and distributions.

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 ("NAV") 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

Semi-Annual Report — March 31, 2016

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

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 March 31, 2016.

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	$	—	$	284	$	—	$	284
Corporate Bonds		—		29,619		—		29,619
Sovereign		—		201		—		201
U.S. Treasury Security		—		378		—		378
Variable Rate Senior Loan Interest		—		68		—		68
Total Fixed Income Securities		—		30,550		—		30,550
Short-Term Investments
Investment Company		3,213		—		—		3,213
Repurchase Agreements		—		68		—		68
U.S. Treasury Security		—		360		—		360
Total Short-Term Investments		3,213		428		—		3,641

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Futures Contracts	$	11		$	—		$	—	$	11
Credit Default Swap Agreements		—			11			—		11
Total Assets		3,224			30,989			—		34,213
Liabilities:
Futures Contracts		(29	)		—			—		(29	)
Credit Default Swap Agreement		—			(8	)		—		(8	)
Total Liabilities		(29	)		(8	)		—		(37	)
Total	$	3,195		$	30,981		$	—	$	34,176

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.

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

Semi-Annual Report — March 31, 2016

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

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

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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap agreement and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

Upfront payments paid or received 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 March 31, 2016.

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)

Total

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(29

)(a)

Swap Agreement

Unrealized Depreciation on
Swap Agreement

Credit Risk

)

Total

(37

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(221	)
Credit Risk	Swap Agreements		(4	)
Interest Rate Risk	Swap Agreements		(46	)
Total		$	(271	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	43
Credit Risk	Swap Agreements		(6	)
Interest Rate Risk	Swap Agreements		57
Total		$	94

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

At March 31, 2016, 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 Agreement	$	—	$	(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.

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 March 31, 2016.

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	$	8	$	—	$	—	$	8

For the six months ended March 31, 2016, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	15,443,000
Swap Agreements:
Average monthly notional amount	$	1,598,000

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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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

The following table presents financial instruments that are subject to enforceable netting arrangements as of March 31, 2016.

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)
$	1,324	(d)	$	—	$	(1,324	)(e)(f)	$	0

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

(e) The Portfolio received cash collateral of approximately $552,000, of which approximately $459,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of March 31, 2016, there was uninvested cash of approximately $93,000, which is not reflected in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $796,000 in the form of U.S. Government obligations, which the Portfolio cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

	Remaining Contractual Maturity of the Agreements As of March 31, 2016
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Corporate Bonds	$	552	$	—	$	—	$	—	$	552
Total Borrowings	$	552	$	—	$	—	$	—	$	552
Gross amount of recognized liabilities for securities lending transactions									$	552

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 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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 and shareholder services, 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, 1.52% for Class L shares and 1.80% for Class C shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2016, approximately $61,000 of advisory fees were waived and approximately $37,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class A shares. The Distributor has agreed to waive 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 from the date of the Portfolio's prospectus or until such time that the Trustees act to discontinue all or a portion of such waiver when it deems such action is appropriate. For the six months ended March 31, 2016, this waiver amounted to less than $500.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

number of classes, accounts and transactions relating to the Portfolios of the Fund.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2016, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $4,579,000 and $8,112,000, respectively. For the six months ended March 31, 2016, purchases of long-term U.S. Government securities were approximately $371,000 and there were no sales of long-term U.S. Government securities.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 31, 2016, advisory fees paid were reduced by less than $500 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	1,911			$	8,621			$	7,319			$	2			$	3,213

with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Portfolio.

2015 Distributions Paid From: Ordinary Income (000)				2014 Distributions Paid From: Ordinary Income (000)
$	1,089			$	1,158

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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, 2015:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	(188	)		$	188			$	—

At September 30, 2015, 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)
$	453			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	48,099	September 30, 2017
	8,130	September 30, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

Trustee and Officer Information (unaudited)

Trustees

Officers

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

IFTCBSAN
1480224 EXP. 05.31.17

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Multi-Asset Income Portfolio

Semi-Annual Report

March 31, 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					18
Statement of Operations					20
Statements of Changes in Net Assets					21
Financial Highlights					22
Notes to Financial Statements					26
U.S. Privacy Policy					39
Trustee and Officer Information					42

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Semi-Annual report, in which you will learn how your investment in Global Multi-Asset Income Portfolio (the "Portfolio") performed during the latest six-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

April 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Expense Example (unaudited)

Global Multi-Asset Income Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2016 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 10/1/15		Actual Ending Account Value 3/31/16		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Multi-Asset Income Portfolio Class I	$	1,000.00	$	1,042.30	$	1,020.40	$	4.70	$	4.65		0.92	%
Global Multi-Asset Income Portfolio Class A		1,000.00		1,040.90		1,018.65		6.48		6.41		1.27
Global Multi-Asset Income Portfolio Class C		1,000.00		1,035.50		1,014.90		10.28		10.18		2.02
Global Multi-Asset Income Portfolio Class IS		1,000.00		1,042.50		1,020.65		4.44		4.39		0.87

** Annualized.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments

Global Multi-Asset Income Portfolio

	Face Amount (000)			Value (000)
Fixed Income Securities (55.9%)
Agency Fixed Rate Mortgages (5.5%)
United States (5.5%)
Federal Home Loan Mortgage Corporation,
April TBA:
3.00%, 4/1/46 (a)	$	90		$	92
3.50%, 4/1/46 (a)		120			126
Gold Pools:
3.50%, 2/1/45		53			56
Federal National Mortgage Association,
April TBA:
2.50%, 4/1/31 (a)		50			51
3.00%, 4/1/31 (a)		52			54
4.00%, 4/1/46 (a)		245			262
Conventional Pools:
4.50%, 10/1/44 - 11/1/44		62			67
Government National Mortgage Association,
3.50%, 4/20/46 (a)		80			85
					793
Commercial Mortgage-Backed Securities (1.2%)
United States (1.2%)
GS Mortgage Securities Trust,
4.77%, 8/10/46 (b)(c)		70			63
Wells Fargo Commercial Mortgage Trust,
4.10%, 5/15/48 (b)		51			38
WF-RBS Commercial Mortgage Trust,
4.14%, 5/15/45 (b)(c)		40			35
4.48%, 8/15/46 (b)(c)		35			31
					167
Corporate Bonds (15.8%)
Australia (0.6%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	50			65
Transurban Finance Co., Pty Ltd.,
4.13%, 2/2/26 (c)	$	25			26
					91
Belgium (0.2%)
Anheuser-Busch InBev Finance, Inc.,
4.70%, 2/1/36		25			27
France (4.1%)
BNP Paribas SA,
1.00%, 4/18/17(b)		530			531
5.00%, 1/15/21		50			56
					587
Germany (0.3%)
Deutsche Bank AG,
Zero Coupon, 3/17/17 (c)		—	@		51
Italy (0.4%)
UniCredit SpA,
4.25%, 7/29/16	EUR	50			58

	Face Amount (000)		Value (000)
Netherlands (0.9%)
ABN Amro Bank N.V.,
3.63%, 10/6/17	EUR	50	$	60
Cooperatieve Rabobank UA,
3.75%, 11/9/20		50		64
				124
United Kingdom (0.8%)
Barclays Bank PLC,
6.00%, 1/23/18		50		62
Diageo Capital PLC,
1.50%, 5/11/17	$	50		50
				112
United States (8.5%)
Actavis Funding SCS,
3.80%, 3/15/25		50		52
Apple, Inc.,
4.45%, 5/6/44		25		26
AT&T, Inc.,
6.30%, 1/15/38		50		58
Bank of America Corp.,
5.70%, 1/24/22		50		57
Baxalta, Inc.,
4.00%, 6/23/25 (c)		25		25
Boston Properties LP,
3.85%, 2/1/23		50		53
CCO Safari II LLC,
4.91%, 7/23/25 (c)		25		26
Citigroup, Inc.,
5.50%, 9/13/25		50		55
General Motors Financial Co., Inc.,
4.30%, 7/13/25		30		30
Gilead Sciences, Inc.,
3.65%, 3/1/26		25		27
Goldman Sachs Group, Inc. (The),
6.75%, 10/1/37		50		60
Hewlett Packard Enterprise Co.,
3.60%, 10/15/20 (c)		25		26
HSBC USA, Inc.,
3.50%, 6/23/24		100		102
JPMorgan Chase & Co.,
4.63%, 5/10/21		50		55
Kinder Morgan, Inc.,
4.30%, 6/1/25		50		48
McDonald's Corp.,
3.38%, 5/26/25		50		52
Merck & Co., Inc.,
2.80%, 5/18/23		50		52
Monongahela Power Co.,
5.40%, 12/15/43 (c)		50		60
MPLX LP,
4.00%, 2/15/25		50		43

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
NBC Universal Media LLC,
4.38%, 4/1/21	$	50	$	56
Omnicom Group, Inc.,
3.63%, 5/1/22		50		53
Prudential Financial, Inc.,
6.63%, 12/1/37		50		61
UnitedHealth Group, Inc.,
2.88%, 3/15/23		25		26
Verizon Communications, Inc.,
3.50%, 11/1/24		25		26
Visa, Inc.,
3.15%, 12/14/25		25		26
Wal-Mart Stores, Inc.,
2.55%, 4/11/23		25		26
Wells Fargo & Co.,
3.45%, 2/13/23		50		51
				1,232
				2,282
Sovereign (23.5%)
Australia (0.4%)
Australia Government Bond,
3.25%, 4/21/25	AUD	80		65
Austria (0.3%)
Austria Government Bond,
1.20%, 10/20/25 (c)	EUR	30		37
Belgium (0.4%)
Belgium Government Bond,
0.80%, 6/22/25 (c)		50		59
Brazil (0.4%)
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/25	BRL	245		55
Canada (1.8%)
Canadian Government Bond,
1.50%, 6/1/23	CAD	28		23
3.25%, 6/1/21		280		243
				266
France (1.4%)
France Government Bond OAT,
3.25%, 5/25/45	EUR	60		99
5.50%, 4/25/29		60		109
				208
Germany (1.0%)
Bundesrepublik Deutschland,
0.50%, 2/15/25		13		16
1.00%, 8/15/25		60		74
4.25%, 7/4/39		10		20
4.75%, 7/4/34		15		29
				139

	Face Amount (000)		Value (000)
Greece (0.2%)
Hellenic Republic Government Bond,
3.00%, 2/24/23 - 2/24/42 (d)	EUR	40	$	34
Hungary (0.4%)
Hungary Government International Bond,
5.75%, 11/22/23	$	50		57
Ireland (0.1%)
Ireland Government Bond,
5.40%, 3/13/25	EUR	10		16
Italy (1.8%)
Italy Buoni Poliennali Del Tesoro,
1.50%, 6/1/25		15		18
1.65%, 3/1/32 (c)		60		67
2.35%, 9/15/24 (c)		129		171
				256
Japan (6.7%)
Japan Government Ten Year Bond,
0.50%, 9/20/24	JPY	36,000		337
1.70%, 6/20/18		31,000		287
Japan Government Thirty Year Bond,
2.00%, 9/20/40		28,900		344
				968
Mexico (1.6%)
Mexican Bonos,
10.00%, 12/5/24	MXN	2,800		209
Petroleos Mexicanos,
6.38%, 1/23/45	$	25		23
				232
Netherlands (0.4%)
Netherlands Government Bond,
0.25%, 7/15/25 (c)	EUR	50		57
New Zealand (1.2%)
New Zealand Government Bond,
4.50%, 4/15/27	NZD	50		39
5.50%, 4/15/23		160		132
				171
Poland (0.6%)
Poland Government Bond,
2.50%, 7/25/26	PLN	300		78
4.00%, 10/25/23		30		9
				87
Romania (0.4%)
Romania Government Bond,
4.75%, 2/24/25	RON	60		17
5.85%, 4/26/23		130		39
				56
South Africa (0.2%)
South Africa Government Bond,
8.00%, 1/31/30	ZAR	387		23

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Face Amount (000)		Value (000)
Spain (0.9%)
Spain Government Bond,
2.15%, 10/31/25 (c)	EUR	40	$	49
Spain Government Inflation Linked Bond,
1.00%, 11/30/30 (c)		39		45
1.80%, 11/30/24 (c)		30		38
				132
United Kingdom (3.3%)
United Kingdom Gilt,
2.75%, 9/7/24	GBP	130		208
4.25%, 6/7/32 - 9/7/39		135		261
				469
				3,387
U.S. Treasury Securities (9.9%)
United States (9.9%)
U.S. Treasury Bond,
3.50%, 2/15/39	$	165		196
U.S. Treasury Inflation Indexed Bonds,
0.25%, 1/15/25		260		263
0.63%, 1/15/26		395		413
U.S. Treasury Notes,
0.63%, 9/30/17		115		115
1.38%, 1/31/21		70		71
2.13%, 5/15/25		60		62
2.38%, 6/30/18		290		300
				1,420
Total Fixed Income Securities (Cost $7,834)				8,049
	Shares
Common Stocks (27.0%)
Australia (1.8%)
Ansell Ltd.		438		6
APA Group		600		4
ARB Corp., Ltd.		1,214		14
AusNet Services		948		1
Automotive Holdings Group Ltd.		3,381		11
BlueScope Steel Ltd.		3,006		14
BWP Trust REIT		4,859		13
Challenger Ltd.		2,323		15
Downer EDI Ltd.		2,717		8
DUET Group		6,545		11
Evolution Mining Ltd.		192		—	@
Goodman Group REIT		862		4
GPT Group REIT		1,161		4
GrainCorp Ltd.		1,336		8
Invocare Ltd.		930		9
IOOF Holdings Ltd.		3,470		24
JB Hi-Fi Ltd.		645		12
Macquarie Atlas Roads Group		228		1
Newcrest Mining Ltd. (e)		96		1
Northern Star Resources Ltd.		118		—	@
OceanaGold Corp. CDI		18		—	@

	Shares		Value (000)
Oil Search Ltd.		1,443	$	8
Perpetual Ltd.		604		20
Primary Health Care Ltd.		2,099		6
Scentre Group REIT		1,969		7
Shopping Centres Australasia Property Group REIT		8,013		14
Sims Metal Management Ltd.		1,003		7
Spark Infrastructure Group		6,180		10
Stockland REIT		1,343		4
Sydney Airport		595		3
Transurban Group		1,054		9
Westfield Corp. REIT		694		5
				253
Belgium (0.6%)
Anheuser-Busch InBev N.V.		506		63
Cofinimmo SA REIT		43		5
Elia System Operator SA		19		1
KBC Groep N.V.		276		14
				83
Brazil (0.0%)
Cia de Saneamento Basico do Estado de Sao Paulo ADR		200		1
Canada (1.4%)
Agnico-Eagle Mines Ltd.		50		2
Alimentation Couche-Tard, Inc.		100		5
ARC Resources Ltd.		100		2
Bank of Montreal		100		6
Bank of Nova Scotia		200		10
Barrick Gold Corp.		100		1
Barrick Gold Corp.		100		1
Blackberry Ltd. (e)		100		1
Brookfield Asset Management, Inc., Class A		100		4
Cameco Corp.		100		1
Canadian Imperial Bank of Commerce		100		8
Canadian National Railway Co.		100		6
Canadian Natural Resources Ltd.		200		5
Cenovus Energy, Inc.		100		1
Centerra Gold, Inc.		50		—	@
Cominar Real Estate Investment Trust REIT		400		5
Detour Gold Corp. (e)		50		1
Eldorado Gold Corp.		150		1
Enbridge, Inc.		600		23
Encana Corp.		200		1
First Quantum Minerals Ltd.		100		1
Fortis, Inc.		300		9
Goldcorp, Inc.		50		1
Goldcorp, Inc.		200		3
H&R Real Estate Investment Trust REIT		200		3
Husky Energy, Inc.		102		1
Imperial Oil Ltd.		100		3
Inter Pipeline Ltd.		300		6
Keyera Corp.		100		3
Kinross Gold Corp. (e)		250		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Canada (cont'd)
Magna International, Inc.		100	$	4
Manulife Financial Corp.		300		4
New Gold, Inc. (e)		100		—	@
Pan American Silver Corp.		50		1
Pembina Pipeline Corp.		300		8
Potash Corp. of Saskatchewan, Inc.		100		2
Power Corp. of Canada		100		2
RioCan REIT		200		4
Rogers Communications, Inc., Class B		100		4
Royal Bank of Canada		200		12
SEMAFO, Inc. (e)		50		—	@
Shaw Communications, Inc., Class B		100		2
Silver Wheaton Corp.		50		1
Silver Wheaton Corp.		100		2
Sun Life Financial, Inc.		100		3
Suncor Energy, Inc.		200		6
Teck Resources Ltd., Class B		100		1
Toronto-Dominion Bank (The)		100		4
TransCanada Corp.		500		20
Veresen, Inc.		200		1
Yamana Gold, Inc.		150		1
				197
China (0.1%)
Beijing Enterprises Holdings Ltd. (f)		500		3
China Gas Holdings Ltd. (f)		2,000		3
Global Logistic Properties Ltd.		1,700		2
Hanergy Thin Film Power Group Ltd. (e)(f)(g)(h)		2,000		—	@
Hutchison Port Holdings Trust (Units) (i)		3,100		2
Zhaojin Mining Industry Co., Ltd. H Shares (f)		250		—	@
Zijin Mining Group Co., Ltd. H Shares (f)		1,000		—	@
				10
Denmark (0.0%)
Danske Bank A/S		31		1
Novo Nordisk A/S Series B		88		4
Pandora A/S		4		1
Vestas Wind Systems A/S		10		1
				7
Finland (0.4%)
Kone Oyj, Class B		314		15
Nokia Oyj		2,806		17
Sampo Oyj, Class A		428		20
UPM-Kymmene Oyj		574		11
				63
France (5.4%)
Accor SA		272		12
Aeroports de Paris (ADP)		18		2
Air Liquide SA		279		31
Airbus Group SE		408		27
Alcatel-Lucent SA (e)		2,179		8
Atos SE		23		2
AXA SA		1,243		29

	Shares		Value (000)
BNP Paribas SA		711	$	36
Bouygues SA		69		3
Cap Gemini SA		196		18
Carrefour SA		446		12
Cie de Saint-Gobain		467		21
Cie Generale des Etablissements Michelin		159		16
Credit Agricole SA		810		9
Danone SA		413		29
Engie		1,027		16
Essilor International SA		177		22
Eutelsat Communications SA		91		3
Gecina SA REIT		30		4
Groupe Eurotunnel SE		359		4
Kering		59		11
Klepierre REIT		77		4
L'Oreal SA		157		28
Legrand SA		285		16
LVMH Moet Hennessy Louis Vuitton SE		177		30
Orange SA		1,347		24
Pernod Ricard SA		167		19
Publicis Groupe SA		190		13
Renault SA		151		15
Rexel SA		54		1
Safran SA		292		20
Sanofi		756		61
Schneider Electric SE		390		25
SES SA		535		16
Societe Generale SA		520		19
Sodexo SA		162		17
Total SA		1,373		63
Unibail-Rodamco SE REIT		105		29
Valeo SA		80		12
Vinci SA		437		33
Vivendi SA		900		19
				779
Germany (4.9%)
Adidas AG		173		20
Allianz SE (Registered)		296		48
BASF SE		588		44
Bayer AG (Registered)		529		62
Bayerische Motoren Werke AG		210		19
Commerzbank AG (e)		934		8
Continental AG		80		18
Daimler AG (Registered)		587		45
Deutsche Bank AG (Registered)		990		17
Deutsche Boerse AG		242		21
Deutsche Euroshop AG		74		3
Deutsche Post AG (Registered)		714		20
Deutsche Telekom AG (Registered)		2,039		37
Deutsche Wohnen AG		133		4
E.ON SE		1,440		14
Fraport AG Frankfurt Airport Services Worldwide		21		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Germany (cont'd)
Fresenius Medical Care AG & Co., KGaA		170	$	15
Fresenius SE & Co., KGaA		259		19
Hamburger Hafen und Logistik AG		13		—	@
HeidelbergCement AG		160		14
Henkel AG & Co., KGaA		101		10
Henkel AG & Co., KGaA (Preference)		134		15
Infineon Technologies AG		1,093		16
Johnson Electric Holdings Ltd. (f)		1,500		5
Linde AG		131		19
Merck KGaA		154		13
Muenchener Rueckversicherungs AG (Registered)		135		27
Porsche Automobil Holding SE (Preference)		145		7
ProSiebenSat.1 Media SE (Registered)		288		15
RWE AG		401		5
SAP SE		590		48
Siemens AG (Registered)		516		55
ThyssenKrupp AG		487		10
Volkswagen AG (Preference)		102		13
Vonovia SE		416		15
				702
Hong Kong (0.4%)
Beijing Enterprises Water Group Ltd. (e)		2,000		1
Champion REIT		9,000		5
G-Resources Group Ltd.		3,000		—	@
Great Eagle Holdings Ltd.		2,017		7
Hang Lung Group Ltd.		1,000		3
Hang Lung Properties Ltd.		1,000		2
Hong Kong & China Gas Co., Ltd.		4,400		8
Hongkong & Shanghai Hotels Ltd. (The)		3,044		3
Hongkong Land Holdings Ltd.		400		2
Hopewell Holdings Ltd.		1,500		5
Kowloon Development Co., Ltd. REIT		6,000		6
Link REIT		1,000		6
New World Development Co., Ltd.		4,162		4
Stella International Holdings Ltd.		1,500		4
				56
Ireland (0.3%)
Bank of Ireland (e)		20,276		6
CRH PLC		746		21
Kerry Group PLC, Class A		103		10
				37
Italy (1.2%)
Assicurazioni Generali SpA		929		14
Atlantia SpA		808		22
Enel SpA		4,948		22
Eni SpA		1,826		28
Ferrari N.V. (e)		65		3
Intesa Sanpaolo SpA		8,929		25
Luxottica Group SpA		175		10
Mediobanca SpA		295		2
Snam SpA		3,545		22

	Shares		Value (000)
Societa Iniziative Autostradali e Servizi SpA		38	$	—	@
Telecom Italia SpA (e)		9,298		10
Terna Rete Elettrica Nazionale SpA		780		4
UniCredit SpA		3,260		12
				174
Japan (0.2%)
Japan Real Estate Investment Corp. REIT		1		6
Japan Retail Fund Investment Corp. REIT		2		5
Nippon Building Fund, Inc. REIT		1		6
Tokyo Gas Co., Ltd.		1,000		4
United Urban Investment Corp. REIT		2		3
				24
Mexico (0.0%)
Empresas ICA SAB de CV ADR (e)		100		—	@
Primero Mining Corp. (e)		50		—	@
				—
Netherlands (1.7%)
Aegon N.V.		1,561		9
Akzo Nobel N.V.		250		17
ArcelorMittal		944		4
ASML Holding N.V.		218		22
Fiat Chrysler Automobiles N.V.		650		5
Heineken N.V.		196		18
ING Groep N.V. CVA		2,510		30
Koninklijke Ahold N.V.		868		20
Koninklijke KPN N.V.		3,120		13
Koninklijke Philips N.V.		788		22
Koninklijke Vopak N.V.		39		2
Randstad Holding N.V.		45		3
RELX N.V.		1,073		19
Unilever N.V. CVA		970		43
Wolters Kluwer N.V.		439		18
				245
New Zealand (0.0%)
Auckland International Airport Ltd.		523		2
Nicaragua (0.0%)
B2Gold Corp. (e)		200		—	@
Norway (0.0%)
DNB ASA		44		—	@
Statoil ASA		50		1
Telenor ASA		33		1
				2
Peru (0.0%)
Cia de Minas Buenaventura SA ADR (e)		50		—	@
Portugal (0.1%)
EDP - Energias de Portugal SA		3,423		12
Singapore (0.0%)
CapitaLand Ltd.		1,500		4
City Developments Ltd.		500		3
				7

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
South Africa (0.1%)
AngloGold Ashanti Ltd. ADR (e)		100	$	1
Gold Fields Ltd. ADR		200		1
Harmony Gold Mining Co., Ltd. ADR (e)		100		—	@
SABMiller PLC		142		9
				11
Spain (1.6%)
Abertis Infraestructuras SA		217		4
Amadeus IT Holding SA, Class A		418		18
Banco Bilbao Vizcaya Argentaria SA		4,670		31
Banco de Sabadell SA		4,423		8
Banco Santander SA		8,986		40
CaixaBank SA		2,496		7
Enagas SA		120		4
Ferrovial SA		234		5
Iberdrola SA		4,704		31
Industria de Diseno Textil SA		762		26
International Consolidated Airlines Group SA		359		3
Obrascon Huarte Lain SA		21		—	@
Red Electrica Corp., SA		62		5
Repsol SA		1,159		13
Telefonica SA		3,118		35
				230
Sweden (0.1%)
Assa Abloy AB, Class B		44		1
Atlas Copco AB, Class A		31		1
Castellum AB		206		3
Hennes & Mauritz AB, Class B		42		1
Investor AB, Class B		21		1
Nordea Bank AB		136		1
Skandinaviska Enskilda Banken AB, Class A		67		1
Svenska Handelsbanken AB, Class A		67		1
Swedbank AB, Class A		42		1
Telefonaktiebolaget LM Ericsson, Class B		136		1
TeliaSonera AB		117		1
Volvo AB, Class B		69		1
				14
Switzerland (0.3%)
ABB Ltd. (Registered) (e)		98		2
Actelion Ltd. (Registered) (e)		4		1
Adecco SA (Registered) (e)		54		3
Cie Financiere Richemont SA (Registered)		23		1
Credit Suisse Group AG (Registered) (e)		82		1
Flughafen Zuerich AG (Registered)		2		2
Geberit AG (Registered)		2		1
LafargeHolcim Ltd. (Registered) (e)		21		1
LafargeHolcim Ltd. (Registered) (e)		145		7
Novartis AG (Registered)		102		7
Roche Holding AG (Genusschein)		31		8
Swiss Prime Site AG (Registered) (e)		38		3
Swiss Re AG		17		2
Swisscom AG (Registered)		2		1

	Shares		Value (000)
Syngenta AG (Registered)		4	$	2
UBS Group AG (Registered)		165		3
Zurich Insurance Group AG (e)		6		1
				46
Turkey (0.0%)
Alacer Gold Corp. (e)		50		—	@
United Kingdom (2.6%)
ARM Holdings PLC		367		5
AstraZeneca PLC		222		12
Aviva PLC		891		6
BAE Systems PLC		1,074		8
Barclays PLC		3,107		7
BHP Billiton PLC		406		4
BP PLC		3,265		16
British American Tobacco PLC		248		14
British Land Co., PLC REIT		513		5
BT Group PLC		1,652		10
Capital & Counties Properties PLC		569		3
Centrica PLC		228		1
Compass Group PLC		561		10
Diageo PLC		351		9
Experian PLC		44		1
GlaxoSmithKline PLC		851		17
Glencore PLC (e)		2,186		5
Hammerson PLC REIT		564		5
Henderson Group PLC		571		2
HSBC Holdings PLC		3,205		20
HSBC Holdings PLC (f)		1,232		8
Imperial Brands PLC		166		9
ITV PLC		174		1
Land Securities Group PLC REIT		369		6
Legal & General Group PLC		268		1
Lloyds Banking Group PLC		10,445		10
London Stock Exchange Group PLC		15		1
National Grid PLC		3,116		44
Next PLC		53		4
Old Mutual PLC		224		1
Paddy Power Betfair PLC		4		1
Pennon Group PLC		221		2
Prudential PLC		577		11
Reckitt Benckiser Group PLC		103		10
RELX PLC		50		1
Rio Tinto PLC		242		7
Rolls-Royce Holdings PLC (e)		386		4
Royal Dutch Shell PLC, Class A		1,133		27
Royal Dutch Shell PLC, Class B		178		4
Severn Trent PLC		134		4
Shire PLC		110		6
Sky PLC		46		1
Smith & Nephew PLC		40		1
SSE PLC		44		1
Standard Chartered PLC		149		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
Taylor Wimpey PLC		1,417	$	4
Tesco PLC (e)		1,173		3
Unilever PLC		218		10
United Utilities Group PLC		383		5
Vodafone Group PLC		4,636		15
Wolseley PLC		117		7
WPP PLC		438		10
				380
United States (3.8%)
AGL Resources, Inc.		100		7
Alamos Gold, Inc., Class A (e)		50		—	@
Alexandria Real Estate Equities, Inc. REIT		100		9
American Campus Communities, Inc. REIT		100		5
American Tower Corp. REIT		200		20
American Water Works Co., Inc.		100		7
Aqua America, Inc.		100		3
Atmos Energy Corp.		100		7
Bank of America Corp.		1,200		16
BB&T Corp.		100		3
Boston Properties, Inc. REIT		100		13
Care Capital Properties, Inc. REIT		25		1
CenterPoint Energy, Inc.		200		4
Cheniere Energy, Inc. (e)		100		3
Citigroup, Inc.		300		13
Citizens Financial Group, Inc.		100		2
Coeur Mining, Inc. (e)		50		—	@
Columbia Pipeline Group, Inc.		200		5
Consolidated Edison, Inc.		200		15
Crown Castle International Corp. REIT		200		17
DDR Corp. REIT		300		5
Digital Realty Trust, Inc. REIT		100		9
Duke Realty Corp. REIT		200		5
Equity Lifestyle Properties, Inc. REIT		100		7
Equity Residential REIT		100		8
Eversource Energy		200		12
Extra Space Storage, Inc. REIT		100		9
Fifth Third Bancorp		100		2
General Growth Properties, Inc. REIT		200		6
HCP, Inc. REIT		200		7
Hecla Mining Co.		100		—	@
Highwoods Properties, Inc. REIT		100		5
Host Hotels & Resorts, Inc. REIT		300		5
Huntington Bancshares, Inc.		100		1
IAMGOLD Corp. (e)		100		—	@
ITC Holdings Corp.		100		4
JPMorgan Chase & Co.		400		24
KeyCorp		100		1
Kilroy Realty Corp. REIT		100		6
Kimco Realty Corp. REIT		200		6
Kinder Morgan, Inc.		900		16
Liberty Property Trust REIT		100		3

	Shares		Value (000)
Macerich Co. (The) REIT		100	$	8
Mid-America Apartment Communities, Inc. REIT		100		10
National Health Investors, Inc. REIT		100		7
National Retail Properties, Inc. REIT		100		5
New York Community Bancorp, Inc.		100		2
Newmont Mining Corp.		50		1
NiSource, Inc.		200		5
ONEOK, Inc.		100		3
PG&E Corp.		300		18
PNC Financial Services Group, Inc. (The)		100		8
ProLogis, Inc. REIT		200		9
Public Storage REIT		100		28
Realty Income Corp. REIT		100		6
Regency Centers Corp. REIT		100		7
Regions Financial Corp.		200		2
SBA Communications Corp., Class A (e)		100		10
Sempra Energy		100		10
Sibanye Gold Ltd. ADR		50		1
Simon Property Group, Inc. REIT		100		21
Spectra Energy Corp.		400		12
SunTrust Banks, Inc.		100		4
Tahoe Resources, Inc.		50		1
UDR, Inc. REIT		100		4
US Bancorp		200		8
Ventas, Inc. REIT		100		6
VEREIT, Inc. REIT		300		3
Vornado Realty Trust REIT		100		9
Wells Fargo & Co.		600		29
Welltower, Inc. REIT		100		7
Williams Cos., Inc. (The)		400		6
WP Carey, Inc. REIT		100		6
				547
Total Common Stocks (Cost $4,186)				3,882
Investment Companies (9.4%)
United States (9.4%)
Morgan Stanley Institutional Fund Trust — High Yield Portfolio (See Note G)		69,531		646
Morgan Stanley Institutional Fund, Inc. — Emerging Markets Fixed Income Opportunities Portfolio (See Note G)		76,964		703
Total Investment Companies (Cost $1,419)				1,349
	Notional Amount (000)
Call Options Purchased (0.0%)
China (0.0%)
USD/CNH October 2016 @ CNH 6.75, Citibank NA		160		2
USD/CNH October 2016 @ CNH 6.75, Goldman Sachs International		120		2
USD/CNH October 2016 @ CNH 6.75, JPMorgan Chase Bank NA		260		3
Total Call Options Purchased (Cost $10)				7

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Short-Term Investments (10.0%)
Investment Company (7.8%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $1,120)		1,119,937	$	1,120
	Face Amount (000)
U.S. Treasury Security (2.2%)
U.S. Treasury Bill,
0.51%, 6/9/16 (j)(k) (Cost $318)	$	318		318
Total Short-Term Investments (Cost $1,438)				1,438
Total Investments (102.3%) (Cost $14,887) (l)(m)				14,725
Liabilities in Excess of Other Assets (-2.1%)				(290	)
Total Written Options Outstanding (-0.2%) (Premiums received $53)				(34	)
Net Assets (100.0%)			$	14,401

(a) Security is subject to delayed delivery.

(b) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 31, 2016.

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

(d) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2016. Maturity date disclosed is the ultimate maturity date.

(e) Non-income producing security.

(f) Security trades on the Hong Kong exchange.

(g) Security has been deemed illiquid at March 31, 2016.

(h) At March 31, 2016, the Portfolio held a fair valued security valued at less than $500, representing less than 0.05% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund's Trustees.

(i) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.

(j) Rate shown is the yield to maturity at March 31, 2016.

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

(m) At March 31, 2016, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $441,000 and the aggregate gross unrealized depreciation is approximately $603,000 resulting in net unrealized depreciation of approximately $162,000.

@ Value is less than $500.

ADR American Depositary Receipt.

CDI CHESS Depositary Interest.

CVA Certificaten Van Aandelen.

MTN Medium Term Note.

OAT Obligations Assimilables du Trésor (French Treasury Obligation).

REIT Real Estate Investment Trust.

TBA To Be Announced.

Call Options Written:

The Portfolio had the following call options written open at March 31, 2016:

Counterparty	Notional Amount (000)			Description	Strike Price		Expiration Date		Value (000)
Goldman Sachs International		—	@@	Euro Stoxx 50 Index (Premiums received $10)	EUR	3,050.00		Apr-16	$	(4	)
Goldman Sachs International		1		iShares MSCI Emerging Markets Index Fund (Premiums received $13)	$	830.00		Apr-16		(11	)
Goldman Sachs International		3		NIKKEI Index (Premiums received $12)	JPY	17,000.00		Apr-16		(3	)
Goldman Sachs International*		—	@@	S&P 500 Index (Premiums received $12)	$	2,040.00		Apr-16		(13	)
Citibank NA		160		USD/CNH (Premiums received $2)	CNH	7.25		Oct-16		(1	)
Goldman Sachs International		120		USD/CNH (Premiums received $1)		7.25		Oct-16		(1	)
JPMorgan Chase Bank NA		260		USD/CNH (Premiums received $3)		7.25		Oct-16		(1	)
									$	(34	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at March 31, 2016:

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Delivery Date	Unrealized Appreciation (Depreciation) (000)
HSBC Bank PLC	AUD	124		$	89		4/5/16	$	(7	)
HSBC Bank PLC	BRL	70		$	19		4/5/16		(—	@)
HSBC Bank PLC	BRL	52		$	14		4/5/16		(—	@)
HSBC Bank PLC	CAD	47		MXN	635		4/5/16		—	@
HSBC Bank PLC	GBP	44		$	62		4/5/16		(2	)
HSBC Bank PLC	JPY	32,520		$	289		4/5/16		—	@
HSBC Bank PLC	MXN	670		JPY	4,226		4/5/16		(1	)
HSBC Bank PLC	MXN	1,900		$	106		4/5/16		(4	)
HSBC Bank PLC	$	31		AUD	42		4/5/16		1
HSBC Bank PLC	$	88		AUD	115		4/5/16		—	@
HSBC Bank PLC	$	21		DKK	140		4/5/16		—	@
HSBC Bank PLC	$	414		EUR	382		4/5/16		20
HSBC Bank PLC	$	31		SEK	267		4/5/16		2
HSBC Bank PLC	$	4		SEK	35		4/5/16		—	@
HSBC Bank PLC	$	11		SGD	15		4/5/16		—	@
HSBC Bank PLC	$	37		ZAR	545		4/5/16		—	@
JPMorgan Chase Bank NA	CAD	113		$	84		4/5/16		(3	)
JPMorgan Chase Bank NA	GBP	4		EUR	5		4/5/16		—	@
JPMorgan Chase Bank NA	JPY	237		$	2		4/5/16		(—	@)
JPMorgan Chase Bank NA	JPY	2,343		$	21		4/5/16		(—	@)
JPMorgan Chase Bank NA	$	5		GBP	3		4/5/16		—	@
JPMorgan Chase Bank NA	$	3		JPY	379		4/5/16		(—	@)
JPMorgan Chase Bank NA	$	75		KRW	93,150		4/5/16		6
JPMorgan Chase Bank NA	$	19		MYR	79		4/5/16		1
JPMorgan Chase Bank NA	$	18		NOK	150		4/5/16		—	@
JPMorgan Chase Bank NA	$	39		NZD	58		4/5/16		1
JPMorgan Chase Bank NA	$	39		PLN	155		4/5/16		3
JPMorgan Chase Bank NA	$	18		THB	625		4/5/16		—	@
JPMorgan Chase Bank NA	$	2		ZAR	32		4/5/16		—	@
UBS AG	BRL	163		$	42		4/5/16		(3	)
UBS AG	CAD	—	@	$	—	@	4/5/16		(—	@)
UBS AG	KRW	93,150		$	82		4/5/16		—	@
UBS AG	MYR	79		$	20		4/5/16		—	@
UBS AG	NZD	291		$	192		4/5/16		(9	)
UBS AG	PLN	293		$	75		4/5/16		(4	)
UBS AG	$	80		BRL	285		4/5/16		(1	)
UBS AG	$	52		CHF	52		4/5/16		2
UBS AG	$	525		JPY	59,640		4/5/16		5
UBS AG	$	10		NOK	88		4/5/16		—	@
UBS AG	ZAR	39		$	3		4/5/16		(—	@)
UBS AG	ZAR	125		$	8		4/5/16		(—	@)
JPMorgan Chase Bank NA	EUR	32		NOK	300		4/8/16		(—	@)
UBS AG	$	75		EUR	68		4/8/16		2
UBS AG	$	2		EUR	2		4/8/16		—	@
Citibank NA	$	72		BRL	258		4/20/16		(1	)
Citibank NA	$	14		BRL	52		4/20/16		—	@
Citibank NA	$	2		BRL	7		4/20/16		—	@
Bank of America NA	CHF	92		$	94		4/21/16		(2	)
Bank of America NA	EUR	160		$	178		4/21/16		(4	)
Bank of America NA	HKD	47		$	6		4/21/16		(—	@)
Bank of America NA	PLN	63		$	16		4/21/16		(1	)
Bank of America NA	SEK	89		$	11		4/21/16		—	@
Bank of America NA	$	26		CHF	25		4/21/16		(—	@)
Bank of America NA	$	96		EUR	84		4/21/16		(—	@)
Bank of America NA	$	90		GBP	62		4/21/16		(—	@)
Bank of America NA	$	19		ILS	74		4/21/16		1
Bank of America NA	$	61		JPY	6,886		4/21/16		—	@
Bank of America NA	$	128		SEK	1,064		4/21/16		3

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Bank of Montreal	AUD	12	$	9	4/21/16	$	(—	@)
Bank of Montreal	$	81	CAD	105	4/21/16		(—	@)
Bank of Montreal	$	10	TRY	30	4/21/16		—	@
Bank of New York Mellon	CHF	18	$	19	4/21/16		(—	@)
Bank of New York Mellon	$	19	SEK	161	4/21/16		—	@
Barclays Bank PLC	AUD	15	$	12	4/21/16		—	@
Barclays Bank PLC	AUD	73	$	55	4/21/16		(1	)
Barclays Bank PLC	EUR	109	$	123	4/21/16		(2	)
Barclays Bank PLC	EUR	15	$	17	4/21/16		(—	@)
Barclays Bank PLC	$	26	SGD	36	4/21/16		1
BNP Paribas SA	$	26	CLP	18,077	4/21/16		1
Citibank NA	NOK	390	$	47	4/21/16		—	@
Citibank NA	$	13	JPY	1,416	4/21/16		(—	@)
Citibank NA	$	31	KRW	37,606	4/21/16		1
Citibank NA	$	211	MYR	873	4/21/16		12
Credit Suisse International	EUR	301	$	334	4/21/16		(8	)
Credit Suisse International	$	26	ILS	101	4/21/16		1
Credit Suisse International	$	10	THB	339	4/21/16		(—	@)
Goldman Sachs International	EUR	193	$	215	4/21/16		(5	)
Goldman Sachs International	$	9	GBP	6	4/21/16		—	@
Goldman Sachs International	$	57	HKD	446	4/21/16		(—	@)
Goldman Sachs International	$	10	HUF	2,740	4/21/16		—	@
Goldman Sachs International	$	19	JPY	2,117	4/21/16		—	@
JPMorgan Chase Bank NA	CAD	11	$	9	4/21/16		(—	@)
JPMorgan Chase Bank NA	CHF	115	$	117	4/21/16		(3	)
JPMorgan Chase Bank NA	EUR	564	$	628	4/21/16		(15	)
JPMorgan Chase Bank NA	IDR	34,664	$	3	4/21/16		—	@
JPMorgan Chase Bank NA	KRW	229,068	$	190	4/21/16		(10	)
JPMorgan Chase Bank NA	MYR	737	$	177	4/21/16		(11	)
JPMorgan Chase Bank NA	MYR	130	$	31	4/21/16		(2	)
JPMorgan Chase Bank NA	PLN	84	$	22	4/21/16		(1	)
JPMorgan Chase Bank NA	$	41	DKK	274	4/21/16		1
JPMorgan Chase Bank NA	$	11	INR	750	4/21/16		—	@
JPMorgan Chase Bank NA	$	13	INR	876	4/21/16		—	@
JPMorgan Chase Bank NA	$	191	JPY	21,480	4/21/16		—	@
JPMorgan Chase Bank NA	$	11	KRW	12,112	4/21/16		(—	@)
JPMorgan Chase Bank NA	$	179	KRW	213,098	4/21/16		7
JPMorgan Chase Bank NA	$	125	RUB	9,045	4/21/16		9
JPMorgan Chase Bank NA	$	27	RUB	1,953	4/21/16		2
JPMorgan Chase Bank NA	$	159	SEK	1,315	4/21/16		4
JPMorgan Chase Bank NA	$	35	SGD	48	4/21/16		1
JPMorgan Chase Bank NA	$	26	TWD	864	4/21/16		1
State Street Bank and Trust Co.	EUR	25	$	28	4/21/16		(1	)
UBS AG	AUD	28	$	21	4/21/16		(1	)
UBS AG	CHF	13	$	14	4/21/16		(—	@)
UBS AG	DKK	113	$	17	4/21/16		—	@
UBS AG	EUR	59	$	66	4/21/16		(1	)
UBS AG	$	1	MXN	21	4/21/16		—	@
UBS AG	$	9	ZAR	149	4/21/16		1
UBS AG	ZAR	678	$	46	4/21/16		—	@
UBS AG	BRL	285	$	80	5/4/16		1
UBS AG	$	82	KRW	93,150	5/4/16		(—	@)
UBS AG	$	20	MYR	79	5/4/16		(—	@)
Citibank NA	CNY	289	$	46	5/19/16		2
Citibank NA	CNY	847	$	136	5/19/16		5
Citibank NA	$	54	CNY	366	5/19/16		3
Deutsche Bank AG	CNY	565	$	90	5/19/16		3
Deutsche Bank AG	$	197	CNY	1,335	5/19/16		9

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Citibank NA	CNH	1,637	$	246	9/22/16	$	(5	)
JPMorgan Chase Bank NA	CNH	112	$	17	9/22/16		—	@
JPMorgan Chase Bank NA	CNH	1,631	$	245	9/22/16		(5	)
Citibank NA	CNH	1,391	$	211	3/16/17		—	@
						$	(1	)

Futures Contracts:

The Portfolio had the following futures contracts open at March 31, 2016:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
MSCI Emerging Market E Mini (United States)		12	$	500		Jun-16	$	21
NIKKEI 225 Index (United States)		5		373		Jun-16		(3	)
S&P 500 E Mini Index (United States)		32		3,282		Jun-16		68
Sugar No. 11 (United States)		1		17		Jun-16		1
Sugar No. 11 (United States)		1		18		Feb-17		—	@
Sugar No. 11 (United States)		1		17		Apr-16		—	@
Sugar No. 11 (United States)		1		18		Sep-16		—	@
U.S. Treasury 10 yr. Note (United States)		8		1,043		Jun-16		7
U.S. Treasury 2 yr. Note (United States)		2		438		Jun-16		1
U.S. Treasury 5 yr. Note (United States)		2		242		Jun-16		—	@
Short:
Brent Crude Futures (United Kingdom)		1		(40	)	Apr-16		—	@
Euro Stoxx 50 Index (Germany)		34		(1,134	)	Jun-16		13
German Euro Bund (Germany)		5		(929	)	Jun-16		(6	)
SPI 200 Index (Australia)		1		(97	)	Jun-16		1
TOPIX Index (Japan)		1		(120	)	Jun-16		1
U.S. Treasury 10 yr. Note (United States)		8		(1,043	)	Jun-16		2
U.S. Treasury Long Bond (United States)		2		(329	)	Jun-16		2
UK Long Gilt Bond (United Kingdom)		1		(174	)	Jun-16		(—	@)
							$	108

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 31, 2016:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Appreciation (Depreciation) (000)			Value (000)			Credit Rating of Reference Obligation†
JPMorgan Chase Bank NA Russian Federation	Sell	$	110		1.00	%	6/20/21	$	(10	)	$	(—	@)	$	(10	)	BB+
Morgan Stanley & Co., LLC** ITRAXX.XO.23	Sell	EUR	25		5.00		6/20/20		3			(1	)		2		NR
Morgan Stanley & Co., LLC** CDX.NA.HY.24	Sell	$	161		5.00		6/20/20		8			1			9		NR
		$	296					$	1		$	(—	@)	$	1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at March 31, 2016:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Citibank NA	3 Month STIBOR	Receive		1.28	%	10/6/25	SEK	1,000	$	(3	)
Citibank NA	3 Month STIBOR	Receive		1.34		10/12/25		207		(1	)
Citibank NA	3 Month STIBOR	Receive		1.39		10/13/25		250		(1	)
Citibank NA	3 Month STIBOR	Receive		1.37		10/14/25		292		(1	)
Goldman Sachs International	3 Month STIBOR	Receive		1.25		10/6/25		153		(1	)
Goldman Sachs International	3 Month STIBOR	Receive		1.29		10/7/25		147		(1	)
Goldman Sachs International	3 Month STIBOR	Receive		1.34		10/12/25		300		(1	)
Goldman Sachs International	3 Month STIBOR	Receive		1.39		10/13/25		83		—	@
JPMorgan Chase Bank NA	3 Month STIBOR	Receive		1.29		10/7/25		200		(1	)
JPMorgan Chase Bank NA	3 Month STIBOR	Receive		1.33		10/8/25		249		(1	)
JPMorgan Chase Bank NA	3 Month STIBOR	Receive		1.34		10/12/25		47		—	@
JPMorgan Chase Bank NA	3 Month STIBOR	Receive		1.38		10/13/25		505		(2	)
JPMorgan Chase Bank NA	3 Month LIBOR	Receive		1.85		3/21/26	$	147		—	@
Morgan Stanley & Co., LLC**	3 Month LIBOR	Receive		1.29		3/7/21		250		(1	)
Morgan Stanley & Co., LLC**	3 Month LIBOR	Receive		1.73		3/11/26		510		(4	)
Morgan Stanley & Co., LLC**	3 Month LIBOR	Receive		1.80		3/14/26		320		(4	)
Morgan Stanley & Co., LLC**	3 Month LIBOR	Receive		1.68		4/4/26		30		—	@
									$	(22	)

Total Return Swap Agreements:

The Portfolio had the following total return swap agreements open at March 31, 2016:

Swap Counterparty

Index

Notional
Amount
(000)

Floating
Rate

Pay/Receive
Total Return
of Referenced
Index

Maturity
Date

Unrealized
Appreciation
(Depreciation)
(000)

Citibank NA

U.S. Media Index††

141

3 Month USD LIBOR minus
0.10%

Pay

2/8/17

(10

)

Goldman Sachs
International

USD Liquid
High Yield Index

210

3 Month USD LIBOR plus
0.62%

Receive

6/23/16

Goldman Sachs
International

U.S. Consumer Staples
Index††

120

3 Month USD LIBOR minus
0.15%

Pay

3/2/17

)

Goldman Sachs
International

U.S. Consumer Staples
Index††

120

3 Month USD LIBOR minus
0.15%

Pay

3/2/17

)

JPMorgan Chase
Bank NA

EU Consumer Staples
Index††

EUR

110

3 Month EUR EURIBOR minus
0.11%

Pay

3/2/17

)

JPMorgan Chase
Bank NA

EU Consumer Staples
Index††

111

3 Month EUR EURIBOR minus
0.11%

Pay

3/2/17

)

JPMorgan Chase
Bank NA

VIX Short-Term Futures
Total Return Index

3 Month USD LIBOR minus
0.35%

Pay

3/22/17

(17

)

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

The following table represents the equity basket holdings underlying the total return swap with U.S. Media Index as of March 31, 2016.

Security Description	Index Weight
U.S. Media Index
Cablevision Systems Corp.		1.00	%
CBS Corp.		3.71
Charter Communications, Inc.		2.63
Comcast Corp.		22.93
Discovery Communications, Inc.		1.14
Discovery Communications, Inc.		0.66
DISH Network Corp.		1.58
Interpublic Group of Cos, Inc. (The)		1.43
Liberty Global PLC		3.55
Liberty Global PLC		1.49
Liberty Media Corp.		1.18
Liberty Media Corp.		0.54
News Corp.		0.74
Omnicom Group, Inc.		3.08
Scripps Networks Interactive, Inc.		0.75
Sirius XM Holdings, Inc.		1.46
TEGNA, Inc.		0.77
Time Warner Cable, Inc.		8.88
Time Warner, Inc.		9.03
Twenty-First Century Fox, Inc.		5.19
Twenty-First Century Fox, Inc.		1.89
Viacom, Inc.		2.18
Walt Disney Co. (The)		24.19
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with U.S. Consumer Staples Index as of March 31, 2016.

Security Description	Index Weight
U.S. Consumer Staples Index
Altria Group, Inc.		11.92	%
Archer-Daniels-Midland Co.		9.67
Brown-Forman Corp.		8.09
Campbell Soup Co.		7.95
Church & Dwight Co., Inc.		6.54
Clorox Co. (The)		3.39
Coca-Cola Co. (The)		3.37
Coca-Cola Enterprises, Inc.		2.60
Colgate-Palmolive Co.		2.49
ConAgra Foods, Inc.		2.22
Constellation Brands, Inc.		2.01
Costco Wholesale Corp.		1.39
CVS Health Corp.		1.15
Dr. Pepper Snapple Group, Inc.		1.12
Estee Lauder Cos, Inc. (The)		1.06
General Mills, Inc.		1.05
Hershey Co. (The)		1.04
Hormel Foods Corp.		1.03
JM Smucker Co. (The)		0.93
Kellogg Co.		0.90
Kimberly-Clark Corp.		0.87
Kraft Heinz Co. (The)		0.84
Kroger Co. (The)		0.83
McCormick & Co., Inc.		0.70
Mead Johnson Nutrition Co.		0.64
Molson Coors Brewing Co.		0.62

Security Description	Index Weight
Mondelez International, Inc.		0.61	%
Monster Beverage Corp.		0.61
PepsiCo, Inc.		0.56
Philip Morris International, Inc.		0.53
Procter & Gamble Co. (The)		6.11
Reynolds American, Inc.		5.72
Sysco Corp.		3.91
Tyson Foods, Inc.		3.67
Walgreens Boots Alliance, Inc.		1.98
Wal-Mart Stores, Inc.		0.57
Whole Foods Market, Inc.		1.31
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with EU Consumer Staples Index as of March 31, 2016.

Security Description	Index Weight
EU Consumer Staples Index
Anheuser-Busch InBev SA		8.79	%
Aryzta AG		0.32
Associated British Foods PLC		1.51
Barry Callebaut AG		0.21
Beiersdorf AG		0.80
British American Tobacco PLC		9.65
Carlsberg A/S		0.90
Carrefour SA		1.34
Casino Guichard Perrachon SA		0.29
Chocoladefabriken Lindt & Spruengli AG		0.53
Chocoladefabriken Lindt & Spruengli AG		0.67
Coca-Cola HBC AG		0.38
Colruyt SA		0.36
Danone SA		3.69
Diageo PLC		5.99
Distribuidora Internacional de Alimentac		0.28
Heineken Holding N.V.		0.69
Heineken N.V.		1.84
Henkel AG & Co., KGaA		0.90
Henkel AG & Co., KGaA		1.73
ICA Gruppen AB		0.23
Imperial Brands PLC		4.68
J Sainsbury PLC		0.47
Jeronimo Martins SGPS SA		0.36
Kerry Group PLC		1.30
Koninklijke Ahold N.V.		1.65
L'Oreal SA		3.97
METRO AG		0.49
Nestle SA		21.01
Orkla ASA		0.65
Pernod Ricard SA		2.08
Reckitt Benckiser Group PLC		5.45
Remy Cointreau SA		0.16
Svenska Cellulosa AB SCA		1.62
Swedish Match AB		0.59
Tate & Lyle PLC		0.34
Tesco PLC		1.98
Unilever N.V.		6.42
Unilever PLC		5.12
Wm Morrison Supermarkets PLC		0.56
		100.00	%

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

@ Value is less than $500.

@@ Amount is less than 500.

* Cleared option, the broker is Goldman Sachs International.

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

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

EURIBOR Euro Interbank Offered Rate.

LIBOR London Interbank Offered Rate.

STIBOR Stockholm Interbank Offered Rate.

NR Not rated.

AUD — Australian Dollar

BRL — Brazilian Real

CAD — Canadian Dollar

CHF — Swiss Franc

CLP — Chilean Peso

CNH — Chinese Yuan Renminbi

CNY — Chinese Yuan Renminbi

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

RON — Romanian New Leu

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
Other***		31.9	%
Sovereign		24.1
Short-Term Investments		10.2
U.S. Treasury Securities		10.1
Investment Companies		9.6
Banks		8.5
Agency Fixed Rate Mortgages		5.6
Total Investments		100.0	%****

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

**** Does not include open call options written with a value of approximately $34,000. Does not include open long/short futures contracts with an underlying face amount of approximately $9,814,000 with net unrealized appreciation of approximately $108,000. Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $1,000 and does not include open swap agreements with net unrealized depreciation of approximately $39,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Global Multi-Asset Income Portfolio

Statement of Assets and Liabilities	March 31, 2016 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $12,348)	$	12,256
Investment in Securities of Affiliated Issuers, at Value (Cost $2,539)		2,469
Total Investments in Securities, at Value (Cost $14,887)		14,725
Foreign Currency, at Value (Cost $70)		71
Receivable for Variation Margin on Futures Contracts		366
Receivable for Investments Sold		118
Due from Adviser		113
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		112
Interest Receivable		56
Prepaid Offering Costs		13
Dividends Receivable		7
Unrealized Appreciation on Swap Agreements		6
Tax Reclaim Receivable		3
Receivable from Affiliate		1
Other Assets		56
Total Assets		15,647
Liabilities:
Payable for Investments Purchased		850
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		113
Payable for Custodian Fees		64
Payable for Professional Fees		48
Unrealized Depreciation on Swap Agreements		36
Options Written, at Value (Premiums received $53)		34
Payable for Offering Costs		18
Premium Received on Open Swap Agreements		10
Payable for Variation Margin on Swap Agreements		3
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Administration Fees		1
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		67
Total Liabilities		1,246
Net Assets	$	14,401
Net Assets Consist Of:
Paid-in-Capital	$	15,036
Distributions in Excess of Net Investment Income		(71	)
Accumulated Net Realized Loss		(491	)
Unrealized Appreciation (Depreciation) on:
Investments		(92	)
Investments in Affiliates		(70	)
Futures Contracts		108
Options Written		19
Swap Agreements		(39	)
Foreign Currency Forward Exchange Contracts		(1	)
Foreign Currency Translations		2
Net Assets	$	14,401

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Global Multi-Asset Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2016 (000)
CLASS I:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	9.58
CLASS A:
Net Assets	$	46
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,805
Net Asset Value, Redemption Price Per Share	$	9.56
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.53
Maximum Offering Price Per Share	$	10.09
CLASS C:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	9.53
CLASS IS:
Net Assets	$	14,335
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,497,000
Net Asset Value, Offering and Redemption Price Per Share	$	9.58

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Global Multi-Asset Income Portfolio

Statement of Operations	Six Months Ended March 31, 2016 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	60
Dividends from Security of Affiliated Issuers (Note G)		44
Dividends from Securities of Unaffiliated Issuers (Net of $3 of Foreign Taxes Withheld)		43
Total Investment Income		147
Expenses:
Custodian Fees (Note F)		82
Offering Costs		80
Professional Fees		60
Advisory Fees (Note B)		46
Shareholder Reporting Fees		15
Pricing Fees		10
Administration Fees (Note C)		6
Registration Fees		4
Transfer Agency Fees — Class I (Note E)		—	@
Transfer Agency Fees — Class A (Note E)		—	@
Transfer Agency Fees — Class C (Note E)		—	@
Transfer Agency Fees — Class IS (Note E)		1
Trustees' Fees and Expenses		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Sub Transfer Agency Fees — Class A		—	@
Other Expenses		5
Total Expenses		310
Expenses Reimbursed by Adviser (Note B)		(200	)
Waiver of Advisory Fees (Note B)		(46	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class A (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class C (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Net Expenses		61
Net Investment Income		86
Realized Gain (Loss):
Investments Sold		(221	)
Investments in Affiliates		(4	)
Foreign Currency Forward Exchange Contracts		(18	)
Foreign Currency Transactions		(—	@)
Futures Contracts		95
Options Written		(1	)
Swap Agreements		(70	)
Net Realized Loss		(219	)
Change in Unrealized Appreciation (Depreciation):
Investments		636
Investments in Affiliates		2
Foreign Currency Forward Exchange Contracts		(6	)
Foreign Currency Translations		3
Futures Contracts		153
Swap Agreements		(62	)
Options Written		(10	)
Net Change in Unrealized Appreciation (Depreciation)		716
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		497
Net Increase in Net Assets Resulting from Operations	$	583

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Global Multi-Asset Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2016 (unaudited) (000)			Period From April 30, 2015^ to September 30, 2015 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	86		$	108
Net Realized Loss		(219	)		(279	)
Net Change in Unrealized Appreciation (Depreciation)		716			(789	)
Net Increase (Decrease) in Net Assets Resulting from Operations		583			(960	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(—	@)		(—	@)
Class A:
Net Investment Income		(1	)		(—	@)
Class C:
Net Investment Income		(—	@)		(—	@)*
Class IS:
Net Investment Income		(212	)		(45	)
Total Distributions		(213	)		(45	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		—			10
Class A:
Subscribed		—			46
Distributions Reinvested		—	@		—	@
Class C:
Subscribed		—			10	*
Class IS:
Subscribed		—			14,970
Net Increase in Net Assets Resulting from Capital Share Transactions		—	@		15,036
Total Increase in Net Assets		370			14,031
Net Assets:
Beginning of Period		14,031			—
End of Period (Including Distributions in Excess of Net Investment Income and Accumulated Undistributed Net Investment Income of $(71) and $56, respectively)	$	14,401		$	14,031
(1) Capital Share Transactions:
Class I:
Shares Subscribed		—			1
Class A:
Shares Subscribed		—			5
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class A Shares Outstanding		—	@@		5
Class C:
Shares Subscribed		—			1	*
Class IS:
Shares Subscribed		—			1,497

^ Commencement of Operations.

* For the period May 8, 2015 through September 30, 2015.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Global Multi-Asset Income Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	9.33		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.06			0.07
Net Realized and Unrealized Gain (Loss)		0.33			(0.71	)
Total from Investment Operations		0.39			(0.64	)
Distributions from and/or in Excess of:
Net Investment Income		(0.14	)		(0.03	)
Net Asset Value, End of Period	$	9.58		$	9.33
Total Return++		4.23	%#		(6.42	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	9
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.92	%+*		0.93	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.19	%+*		1.72	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.03	%*		0.01	%*
Portfolio Turnover Rate		115	%#		139	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		14.15	%*		20.20	%*
Net Investment Loss to Average Net Assets		(12.04	)%*		(17.55	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Global Multi-Asset Income Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	9.32		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.04			0.04
Net Realized and Unrealized Gain (Loss)		0.33			(0.69	)
Total from Investment Operations		0.37			(0.65	)
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.03	)
Net Asset Value, End of Period	$	9.56		$	9.32
Total Return++		4.09	%#		(6.64	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	46		$	44
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.27	%+*		1.27	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		0.82	%+*		1.02	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.03	%*		0.01	%*
Portfolio Turnover Rate		115	%#		139	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		6.74	%*		12.75	%*
Net Investment Loss to Average Net Assets		(4.65	)%*		(10.46	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Global Multi-Asset Income Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from May 8, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	9.30		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.00	‡		0.02
Net Realized and Unrealized Gain (Loss)		0.33			(0.71	)
Total from Investment Operations		0.33			(0.69	)
Distributions from and/or in Excess of:
Net Investment Income		(0.10	)		(0.01	)
Net Asset Value, End of Period	$	9.53		$	9.30
Total Return++		3.55	%#		(6.86	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	9
Ratios of Expenses to Average Net Assets ⁽¹⁾		2.02	%+*		2.03	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		0.08	%+*		0.56	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.03	%*		0.01	%*
Portfolio Turnover Rate		115	%#		139	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		6.49	%*		21.28	%*
Net Investment Loss to Average Net Assets		(4.39	)%*		(18.68	)%*

^ Commencement of Offering.

† Per share amount is based on average shares outstanding.

‡ Amount is less than $0.005 per share.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Global Multi-Asset Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	9.33		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.06			0.07
Net Realized and Unrealized Gain (Loss)		0.33			(0.71	)
Total from Investment Operations		0.39			(0.64	)
Distributions from and/or in Excess of:
Net Investment Income		(0.14	)		(0.03	)
Net Asset Value, End of Period	$	9.58		$	9.33
Total Return++		4.25	%#		(6.41	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	14,335		$	13,969
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.87	%+*		0.87	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.22	%+*		1.76	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.03	%*		0.01	%*
Portfolio Turnover Rate		115	%#		139	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		4.42	%*		5.97	%*
Net Investment Loss to Average Net Assets		(2.33	)%*		(3.33	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Notes to Financial Statements (unaudited)

The accompanying financial statements relate to the Global Multi-Asset Income Portfolio. The Portfolio seeks to maximize current income and to seek capital appreciation over time. The Portfolio offers four classes of shares — Class I, Class A, Class C and Class IS.

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 Trustees or quotes from a broker or dealer; (7) 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; (8) 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; (9) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (10) 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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

securities will be valued at their fair market value as determined by the Adviser.

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.)

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

The following is a summary of the inputs used to value the Portfolio's investments as of March 31, 2016.

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	$	—	$	793	$	—	$	793
Commercial Mortgage-Backed Securities		—		167		—		167
Corporate Bonds		—		2,282		—		2,282
Sovereign		—		3,387		—		3,387
U.S. Treasury Securities		—		1,420		—		1,420
Total Fixed Income Securities		—		8,049		—		8,049
Common Stocks
Aerospace & Defense		59		—		—		59
Air Freight & Logistics		20		—		—		20
Airlines		3		—		—		3
Auto Components		64		—		—		64
Automobiles		107		—		—		107
Banks		449		—		—		449
Beverages		118		—		—		118
Biotechnology		1		—		—		1
Building Products		23		—		—		23
Capital Markets		69		—		—		69
Chemicals		115		—		—		115
Commercial Services & Supplies		8		—		—		8
Communications Equipment		26		—		—		26
Construction & Engineering		41		—		—		41
Construction Materials		43		—		—		43
Diversified Consumer Services		9		—		—		9
Diversified Financial Services		38		—		—		38
Diversified Telecommunication Services		142		—		—		142
Electric Utilities		112		—		—		112
Electrical Equipment		49		—		—		49
Food & Staples Retailing		40		—		—		40
Food Products		47		—		—		47
Gas Utilities		59		—		—		59
Health Care Equipment & Supplies		29		—		—		29
Health Care Providers & Services		40		—		—		40
Hotels, Restaurants & Leisure		43		—		—		43
Household Durables		4		—		—		4
Household Products		35		—		—		35
Industrial Conglomerates		85		—		—		85
Information Technology Services		38		—		—		38

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)
Insurance	$	178	$	—		$	—		$	178
Machinery		17		—			—			17
Media		118		—			—			118
Metals & Mining		75		—			—			75
Multi-Utilities		143		—			—			143
Multi-line Retail		4		—			—			4
Oil, Gas & Consumable Fuels		288		—			—			288
Paper & Forest Products		11		—			—			11
Personal Products		81		—			—			81
Pharmaceuticals		190		—			—			190
Professional Services		7		—			—			7
Real Estate Investment Trusts (REITs)		434		—			—			434
Real Estate Management & Development		68		—			—			68
Road & Rail		6		—			—			6
Semiconductors & Semiconductor Equipment		43		—			—	@		43
Software		48		—			—			48
Specialty Retail		50		—			—			50
Tech Hardware, Storage & Peripherals		1		—			—			1
Textiles, Apparel & Luxury Goods		77		—			—			77
Thrifts & Mortgage Finance		2		—			—			2
Tobacco		23		—			—			23
Trading Companies & Distributors		8		—			—			8
Transportation Infrastructure		52		—			—			52
Water Utilities		23		—			—			23
Wireless Telecommunication Services		19		—			—			19
Total Common Stocks		3,882		—			—	@		3,882
Investment Companies		1,349		—			—			1,349
Call Options Purchased		—		7			—			7
Short-Term Investments
Investment Company		1,120		—			—			1,120
U.S. Treasury Security		—		318			—			318
Total Short-Term Investments		1,120		318			—			1,438
Foreign Currency Forward Exchange Contracts		—		112			—			112
Futures Contracts		117		—			—			117
Credit Default Swap Agreement		—		1			—			1
Interest Rate Swap Agreements		—		—	@		—			—	@
Total Return Swap Agreements		—		6			—			6
Total Assets		6,468		8,493			—	@		14,961

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Liabilities:
Call Options Written		(13	)		(21	)		—			(34	)
Foreign Currency Forward Exchange Contracts		—			(113	)		—			(113	)
Futures Contracts		(9	)		—			—			(9	)
Credit Default Swap Agreements		—			(1	)		—			(1	)
Interest Rate Swap Agreements		—			(22	)		—			(22	)
Total Return Swap Agreements		—			(23	)		—			(23	)
Total Liabilities		(22	)		(180	)		—			(202	)
Total	$	6,446		$	8,313		$	—	@	$	14,759

@ Value is less than $500.

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

	Common Stock (000)
Beginning Balance	$	—	@
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		(—	@)
Realized gains (losses)		—
Ending Balance	$	—	@
Net change in unrealized appreciation (depreciation) from investments still held as of March 31, 2016		(—	@)

@ Value is less than $500.

– 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

Semi-Annual Report — March 31, 2016

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

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

Semi-Annual Report — March 31, 2016

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

There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with which the Portfolio has open positions in the futures contract.

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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

Upfront payments paid or received 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 may 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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 in Securities" in 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. The Portfolio may write call and put options on stock indexes, futures, securities or currencies it owns or in which it may invest. Writing put options tend to increase the Portfolio's exposure to the underlying instrument. Writing call options tend to decrease the Portfolio's exposure to the underlying instruments. When the Portfolio writes a call or put option, an amount equal to the premium received is recorded as a liability. Any liability recorded is subsequently adjusted to reflect the current value of the options written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the net realized gain or loss. The Portfolio as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. 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.

Transactions in written options for the six months ended March 31, 2016 were as follows:

Written Options	Notional Amount (000)			Premiums Received (000)
Options outstanding at September 30, 2015		3		$	41
Options written		973			248
Options closed		(410	)		(11	)
Options exercised		(7	)		(109	)
Options expired		(15	)		(116	)
Options outstanding at March 31, 2016		544		$	53

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 31, 2016.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Call Options Purchased

Investments, at Value
(Call Options Purchased)

Currency Risk

(a)

Foreign Currency
Forward Exchange
Contracts

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

112

Futures Contracts

Variation Margin on
Futures Contracts

Commodity Risk

(b)

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

104

(b)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(b)

Swap Agreement

Variation Margin on
Swap Agreement

Credit Risk

(b)

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Equity Risk

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Interest Rate Risk

—

Swap Agreement

Variation Margin on
Swap Agreement

Interest Rate Risk

—

@(b)

Total

243

Call Options Written

Options Written, at Value

Currency Risk

)

Call Options Written

Options Written, at Value

Equity Risk

(31

)

Foreign Currency
Forward Exchange
Contracts

Unrealized Depreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

(113

)

Futures Contract

Variation Margin on
Futures Contract

Equity Risk

)(b)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

)(b)

Swap Agreement

Unrealized Depreciation on
Swap Agreement

Credit Risk

(—

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Swap Agreement

Variation Margin on
Swap Agreement

Credit Risk

)(b)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Equity Risk

(23

)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Interest Rate Risk

(13

)

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

)(b)

Total

(202

)

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

@ Amount is less than $500.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Call Options Purchased	$	—	@(c)
Currency Risk	Call Options Written		—	@
Equity Risk	Call Options Written		(1	)
Currency Risk Foreign Currency	Forward Exchange Contracts		(18	)
Commodity Risk	Futures Contracts		(4	)
Equity Risk	Futures Contracts		155
Interest Rate Risk	Futures Contracts		(56	)
Credit Risk	Swap Agreements		8
Equity Risk	Swap Agreements		(61	)
Interest Rate Risk	Swap Agreements		(17	)
	Total	$	6
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Call Options Purchased	$	7	(c)
Currency Risk	Call Options Written		(26	)
Equity Risk	Call Options Written		16
Currency Risk Foreign Currency	Forward Exchange Contracts		(6	)
Commodity Risk	Futures Contracts		8
Equity Risk	Futures Contracts		128
Interest Rate Risk	Futures Contracts		17
Credit Risk	Swap Agreements		(1	)
Equity Risk	Swap Agreements		(41	)
Interest Rate Risk	Swap Agreements		(20	)
	Total	$	82

@ Amount is less than $500.

At March 31, 2016, 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(d)	Assets(e) (000)			Liabilities(e) (000)
Call Options Purchased	$	7	(a)	$	—
Call Options Written		—			(21	)
Foreign Currency Forward Exchange Contracts		112			(113	)
Swap Agreements		6			(36	)
Total	$	125		$	(170	)

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

(d) Excludes exchange traded derivatives.

(e) 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

Semi-Annual Report — March 31, 2016

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

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 March 31, 2016.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received (000)		Net Amount (not less than $0) (000)
Bank of America NA	$	4		$	(4	)	$	—	$	0
Bank of Montreal		—	@		(—	@)		—		0
Bank of New York Mellon		—	@		(—	@)		—		0
Barclays Bank PLC		1			(1	)		—		0
BNP Paribas SA		1			—			—		1
Citibank NA		25			(7	)		—		18
Credit Suisse International		1			(1	)		—		0
Deutsche Bank AG		12			—			—		12
Goldman Sachs International		6			(6	)		—		0
HSBC Bank PLC		23			(14	)		—		9
JPMorgan Chase Bank NA		41			(39	)		—		2
UBS AG		11			(11	)		—		0
Total	$	125		$	(83	)	$	—	$	42
Bank of America NA		7			(4	)		—		3
Bank of Montreal		—	@		(—	@)		—		—	@
Bank of New York Mellon		—	@		(—	@)		—		0
Barclays Bank PLC		3			(1	)		—		2
Citibank NA		23			(7	)		—		16
Credit Suisse International		8			(1	)		—		7
Goldman Sachs International		36			(6	)		—		30
HSBC Bank PLC		14			(14	)		—		0
JPMorgan Chase Bank NA		59			(39	)		—		20
State Street Bank and Trust Co.		1			—			—		1
UBS AG		19			(11	)		—		8
Total	$	170		$	(83	)	$	—	$	87

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

For the six months ended March 31, 2016, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	8,165,000
Futures Contracts:
Average monthly original value	$	12,279,000
Swap Agreements:
Average monthly notional amount	$	3,644,000
Call Options Purchased:
Average monthly notional amount		608,000
Call Options Written:
Average monthly notional amount		612,000

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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 and shareholder services, 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 0.95% for Class I shares, 1.30% for Class A shares, 2.05% for Class C shares and 0.90% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2016, approximately $46,000 of advisory fees were waived and approximately $201,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2016, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $4,617,000 and $4,531,000, respectively. For the six months ended March 31, 2016, purchases and sales of long-term U.S. Government securities were approximately $10,260,000 and $9,808,000, respectively.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	1,742			$	3,539			$	4,161			$	2			$	1,120

The Portfolio invests in Morgan Stanley Institutional Fund, Inc. — Emerging Markets Fixed Income Opportunities Portfolio ("Emerging Markets Fixed Income Opportunities 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 Fixed Income Opportunities Portfolio. For the six months ended March 31, 2016, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Emerging Markets Fixed Income Opportunities Portfolio. The Emerging Markets Fixed Income Opportunities Portfolio has a cost basis of approximately $711,000 at March 31, 2016.

A summary of the Portfolio's transactions in shares of the Emerging Markets Fixed Income Opportunities Portfolio during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Realized Loss (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	417			$	318			$	57			$	(4	)		$	21			$	703

The Portfolio invests in Morgan Stanley Institutional Fund Trust — High Yield Portfolio ("High Yield 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 High Yield Portfolio. For the six months ended March 31, 2016, advisory fees paid were reduced by less than $500 relating to the Portfolio's investment

in the High Yield Portfolio. The High Yield Portfolio has a cost basis of approximately $708,000 at March 31, 2016.

A summary of the Portfolio's transactions in shares of the High Yield Portfolio during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	565			$	—			$	—			$	21			$	646

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. The tax period ended September 30, 2015, remains subject to examination by taxing authorities.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

The tax character of distributions paid may differ from the character of distributions shown in the Statement 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 year 2015 was as follows:

2015 Distributions Paid From: Ordinary Income (000)
$	45

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions and basis adjustments for swap transactions, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Gain (000)				Paid-in- Capital (000)
$	(7	)		$	7			$	—

At September 30, 2015, 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)
$	238			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused short term and long term capital losses of approximately $149,000 and $111,000, respectively, that do not have an expiration date.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

Trustee and Officer Information (unaudited)

Trustees

Officers

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

IFGMAPSAN
1482441 EXP. 05.31.17

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Mid Cap Growth Portfolio

Semi-Annual Report

March 31, 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					7
Statement of Operations					9
Statements of Changes in Net Assets					10
Financial Highlights					12
Notes to Financial Statements					16
U.S. Privacy Policy					26
Trustee and Officer Information					29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Shareholders' Letter (unaudited)

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

April 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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 March 31, 2016 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 10/1/15		Actual Ending Account Value 3/31/16		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	$	931.40	$	1,021.00	$	3.86	$	4.04		0.80	%
Mid Cap Growth Portfolio Class A		1,000.00		930.20		1,019.60		5.21		5.45		1.08
Mid Cap Growth Portfolio Class L		1,000.00		928.00		1,017.10		7.62		7.97		1.58
Mid Cap Growth Portfolio Class IS		1,000.00		932.20		1,021.95		2.95		3.08		0.61

** Annualized.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments

Mid Cap Growth Portfolio

	Shares		Value (000)
Common Stocks (89.2%)
Aerospace & Defense (1.1%)
TransDigm Group, Inc. (a)		128,636	$	28,344
Air Freight & Logistics (0.6%)
XPO Logistics, Inc. (a)(b)		475,448		14,596
Automobiles (4.8%)
Tesla Motors, Inc. (a)(b)		536,816		123,344
Beverages (3.1%)
Monster Beverage Corp. (a)		592,664		79,049
Biotechnology (1.1%)
Alnylam Pharmaceuticals, Inc. (a)		147,788		9,277
Intrexon Corp. (a)(b)		355,312		12,041
Juno Therapeutics, Inc. (a)(b)		166,077		6,326
				27,644
Capital Markets (1.0%)
Affiliated Managers Group, Inc. (a)		158,040		25,666
Communications Equipment (0.9%)
Palo Alto Networks, Inc. (a)		140,001		22,840
Consumer Finance (2.5%)
LendingClub Corp. (a)		7,666,161		63,629
Diversified Financial Services (6.2%)
McGraw Hill Financial, Inc.		918,505		90,914
MSCI, Inc.		914,704		67,761
				158,675
Electrical Equipment (0.3%)
SolarCity Corp. (a)(b)		280,975		6,906
Food Products (3.4%)
Mead Johnson Nutrition Co.		1,011,976		85,987
Health Care Equipment & Supplies (6.1%)
DexCom, Inc. (a)		386,161		26,224
Intuitive Surgical, Inc. (a)		214,356		128,839
				155,063
Health Care Technology (4.6%)
athenahealth, Inc. (a)		841,956		116,847
Hotels, Restaurants & Leisure (5.6%)
Dunkin' Brands Group, Inc.		1,697,587		80,075
Marriott International, Inc., Class A (b)		876,669		62,401
				142,476
Information Technology Services (3.5%)
FleetCor Technologies, Inc. (a)		427,145		63,538
Gartner, Inc. (a)		285,108		25,474
				89,012
Internet & Catalog Retail (1.2%)
TripAdvisor, Inc. (a)		179,346		11,927
Zalando SE (Germany) (a)(c)		573,749		18,835
				30,762

	Shares		Value (000)
Internet Software & Services (13.1%)
Autohome, Inc. ADR (China) (a)		855,424	$	23,901
Dropbox, Inc. (a)(d)(e)(f) (acquisition cost — $33,909; acquired 5/1/12)		3,747,173		41,256
LinkedIn Corp., Class A (a)		527,413		60,310
MercadoLibre, Inc. (Brazil)		272,317		32,093
Pandora Media, Inc. (a)(b)		1,303,161		11,663
Survey Monkey, Inc. (a)(d)(e)(f) (acquisition cost — $28,952; acquired 11/25/14)		1,760,030		21,261
Twitter, Inc. (a)		3,954,628		65,449
Yelp, Inc. (a)		489,909		9,739
Zillow Group, Inc., Class A (a)(b)		923,763		23,602
Zillow Group, Inc., Class C (a)(b)		1,847,524		43,842
				333,116
Life Sciences Tools & Services (4.7%)
Illumina, Inc. (a)		733,290		118,874
Pharmaceuticals (3.3%)
Zoetis, Inc.		1,870,357		82,913
Professional Services (5.5%)
IHS, Inc., Class A (a)		543,245		67,449
Verisk Analytics, Inc. (a)		918,305		73,391
				140,840
Software (10.9%)
Atlassian Corp., PLC, Class A (United Kingdom) (a)		440,150		11,070
FireEye, Inc. (a)(b)		724,920		13,041
Mobileye N.V. (a)(b)		344,274		12,838
NetSuite, Inc. (a)(b)		244,518		16,747
ServiceNow, Inc. (a)		1,060,853		64,903
Splunk, Inc. (a)		1,347,409		65,929
Tableau Software, Inc., Class A (a)		285,056		13,076
Workday, Inc., Class A (a)		1,036,211		79,622
				277,226
Tech Hardware, Storage & Peripherals (0.4%)
3D Systems Corp. (a)(b)		386,295		5,976
Stratasys Ltd. (a)(b)		134,293		3,481
				9,457
Textiles, Apparel & Luxury Goods (4.3%)
Lululemon Athletica, Inc. (Canada) (a)		499,550		33,825
Michael Kors Holdings Ltd. (a)		884,697		50,392
Under Armour, Inc., Class A (a)		291,191		24,702
				108,919
Trading Companies & Distributors (1.0%)
Fastenal Co. (b)		532,536		26,094
Total Common Stocks (Cost $1,932,900)				2,268,279
Convertible Preferred Stock (0.2%)
Internet Software & Services (0.2%)
Dropbox, Inc. Series A (a)(d)(e)(f) (acquisition cost — $3,365; acquired 5/25/12) (Cost $3,365)		371,814		4,094

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

	Shares		Value (000)
Preferred Stocks (6.7%)
Internet & Catalog Retail (5.3%)
Airbnb, Inc. Series D (a)(d)(e)(f) (acquisition cost — $47,799; acquired 4/16/14)		1,174,038	$	86,186
Flipkart Online Services Pvt Ltd. Series D (a)(d)(e)(f) (acquisition cost — $13,007; acquired 10/4/13)		566,827		49,802
				135,988
Software (1.4%)
Palantir Technologies, Inc. Series G (a)(d)(e)(f) (acquisition cost — $11,738; acquired 7/19/12)		3,835,908		22,709
Palantir Technologies, Inc. Series H (a)(d)(e)(f) (acquisition cost — $3,519; acquired 10/25/13)		1,002,564		5,935
Palantir Technologies, Inc. Series H1 (a)(d)(e)(f) (acquisition cost — $3,519; acquired 10/25/13)		1,002,564		5,935
				34,579
Total Preferred Stocks (Cost $79,582)				170,567
	Notional Amount (000)
Call Option Purchased (0.1%)
Foreign Currency Option (0.1%)
USD/CNY June 2016 @ CNY 6.70, Royal Bank of Scotland (Cost $3,123)		802,259		2,802
	Shares
Short-Term Investments (15.3%)
Securities held as Collateral on Loaned Securities (11.0%)
Investment Company (8.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		227,015,986		227,016
	Face Amount (000)
Repurchase Agreements (2.1%)
Barclays Capital, Inc., (0.30%, dated 3/31/16, due 4/1/16; proceeds $5,936; fully collateralized by various U.S. Government agency securities; 2.50% - 6.00% due 11/1/34 - 3/1/46 and U.S. Government obligations; 1.25% - 1.38% due 7/31/18 - 1/31/19; valued at $6,055)	$	5,936		5,936
Barclays Capital, Inc., (0.35%, dated 3/31/16, due 4/1/16; proceeds $10,126; fully collateralized by various U.S. Government agency securities; 2.50% - 6.00% due 11/1/34 - 3/1/46 and U.S. Government obligations; 1.25% - 1.38% due 7/31/18 - 1/31/19; valued at $10,328)		10,126		10,126

	Face Amount (000)		Value (000)
HSBC Securities USA, Inc., (0.27%, dated 3/31/16, due 4/1/16; proceeds $13,967; fully collateralized by various U.S. Government obligations; 0.00% due 11/15/18 - 5/15/22; valued at $14,247)	$	13,967	$	13,967
Merrill Lynch & Co., Inc., (0.30%, dated 3/31/16, due 4/1/16; proceeds $10,475; fully collateralized by a U.S. Government agency security; 4.00% due 9/20/45; valued at $10,685)		10,475		10,475
Merrill Lynch & Co., Inc., (0.30%, dated 3/31/16, due 4/1/16; proceeds $11,872; fully collateralized by a U.S. Government agency security; 4.00% due 9/20/45; valued at $12,109)		11,872		11,872
				52,376
Total Securities held as Collateral on Loaned Securities (Cost $279,392)				279,392
	Shares
Investment Company (4.3%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $110,258)		110,258,313		110,258
Total Short-Term Investments (Cost $389,650)				389,650
Total Investments (111.5%) (Cost $2,408,620) Including $278,451 of Securities Loaned (g)				2,835,392
Liabilities in Excess of Other Assets (-11.5%)				(292,781	)
Net Assets (100.0%)			$	2,542,611

(a) Non-income producing security.

(b) All or a portion of this security was on loan at March 31, 2016.

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

(d) Security has been deemed illiquid at March 31, 2016.

(e) 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 March 31, 2016 amounts to approximately $237,178,000 and represents 9.3% of net assets.

(f) At March 31, 2016, the Portfolio held fair valued securities valued at approximately $237,178,000, representing 9.3% 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.

(g) At March 31, 2016, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $680,814,000 and the aggregate gross unrealized depreciation is approximately $254,042,000 resulting in net unrealized appreciation of approximately $426,772,000.

ADR American Depositary Receipt.

CNY — Chinese Yuan Renminbi

USD — United States Dollar

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		44.7	%
Internet Software & Services		13.2
Software		12.2
Internet & Catalog Retail		6.5
Diversified Financial Services		6.2
Health Care Equipment & Supplies		6.1
Hotels, Restaurants & Leisure		5.6
Professional Services		5.5
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2016.

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Mid Cap Growth Portfolio

Statement of Assets and Liabilities	March 31, 2016 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $2,071,346)	$	2,498,118
Investment in Securities of Affiliated Issuer, at Value (Cost $337,274)		337,274
Total Investments in Securities, at Value (Cost $2,408,620)		2,835,392
Cash		328
Dividends Receivable		2,998
Receivable for Portfolio Shares Sold		1,992
Receivable for Investments Sold		246
Receivable from Affiliate		38
Other Assets		378
Total Assets		2,841,372
Liabilities:
Collateral on Securities Loaned, at Value		280,700
Payable for Portfolio Shares Redeemed		6,683
Due to Broker		3,180
Payable for Advisory Fees		3,379
Payable for Sub Transfer Agency Fees — Class I		1,368
Payable for Sub Transfer Agency Fees — Class A		546
Payable for Sub Transfer Agency Fees — Class L		4
Payable for Investments Purchased		1,741
Payable for Administration Fees		172
Payable for Shareholder Services Fees — Class A		135
Payable for Distribution and Shareholder Services Fees — Class L		6
Payable for Custodian Fees		99
Payable for Professional Fees		68
Payable for Trustees' Fees and Expenses		50
Payable for Transfer Agency Fees — Class I		13
Payable for Transfer Agency Fees — Class A		20
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		596
Total Liabilities		298,761
Net Assets	$	2,542,611
Net Assets Consist Of:
Paid-in-Capital	$	2,140,682
Distributions in Excess of Net Investment Income		(32,427	)
Accumulated Undistributed Net Realized Gain		7,584
Unrealized Appreciation (Depreciation) on:
Investments		426,772
Foreign Currency Translations		(—	@)
Net Assets	$	2,542,611

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Mid Cap Growth Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2016 (000)
CLASS I:
Net Assets	$	1,219,097
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		41,176,225
Net Asset Value, Offering and Redemption Price Per Share	$	29.61
CLASS A:
Net Assets	$	639,008
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		22,989,032
Net Asset Value, Redemption Price Per Share	$	27.80
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.54
Maximum Offering Price Per Share	$	29.34
CLASS L:
Net Assets	$	10,391
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		383,355
Net Asset Value, Offering and Redemption Price Per Share	$	27.11
CLASS IS:
Net Assets	$	674,115
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		22,699,541
Net Asset Value, Offering and Redemption Price Per Share	$	29.70
⁽¹⁾ Including: Securities on Loan, at Value:	$	278,451

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Mid Cap Growth Portfolio

Statement of Operations	Six Months Ended March 31, 2016 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers	$	7,471
Income from Securities Loaned — Net		6,148
Dividends from Security of Affiliated Issuer (Note G)		161
Total Investment Income		13,780
Expenses:
Advisory Fees (Note B)		8,612
Sub Transfer Agency Fees — Class I		1,997
Sub Transfer Agency Fees — Class A		821
Sub Transfer Agency Fees — Class L		10
Administration Fees (Note C)		1,378
Shareholder Services Fees — Class A (Note D)		999
Distribution and Shareholder Services Fees — Class L (Note D)		43
Shareholder Reporting Fees		260
Custodian Fees (Note F)		126
Registration Fees		69
Professional Fees		65
Transfer Agency Fees — Class I (Note E)		23
Transfer Agency Fees — Class A (Note E)		35
Transfer Agency Fees — Class L (Note E)		3
Transfer Agency Fees — Class IS (Note E)		1
Trustees' Fees and Expenses		51
Pricing Fees		3
Other Expenses		18
Total Expenses		14,514
Reimbursement of Class Specific Expenses — Class I (Note B)		(474	)
Rebate from Morgan Stanley Affiliate (Note G)		(45	)
Net Expenses		13,995
Net Investment Loss		(215	)
Realized Gain (Loss):
Investments Sold		78,962
Foreign Currency Transactions		(4	)
Net Realized Gain		78,958
Change in Unrealized Appreciation (Depreciation):
Investments		(329,097	)
Foreign Currency Translations		—	@
Net Change in Unrealized Appreciation (Depreciation)		(329,097	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(250,139	)
Net Decrease in Net Assets Resulting from Operations	$	(250,354	)

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Mid Cap Growth Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2016 (unaudited) (000)			Year Ended September 30, 2015 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(215	)	$	(27,971	)
Net Realized Gain		78,958			462,448
Net Change in Unrealized Appreciation (Depreciation)		(329,097	)		(616,480	)
Net Decrease in Net Assets Resulting from Operations		(250,354	)		(182,003	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		—			(9,202	)
Net Realized Gain		(213,404	)		(622,473	)
Class A:
Net Realized Gain		(107,999	)		(246,534	)
Class L:
Net Realized Gain		(1,556	)		(2,378	)
Class IS:
Net Investment Income		—			(2,208	)
Net Realized Gain		(132,809	)		(89,011	)
Total Distributions		(455,768	)		(971,806	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		70,193			388,442
Distributions Reinvested		195,833			591,126
Redeemed		(880,504	)		(2,845,084	)
Class A:
Subscribed		33,405			96,465
Distributions Reinvested		104,817			243,008
Redeemed		(335,483	)		(908,512	)
Class L:
Subscribed		—			265
Distributions Reinvested		1,516			2,327
Redeemed		(1,337	)		(3,574	)
Class IS:
Subscribed		168,662			840,659
Distributions Reinvested		123,359			90,604
Redeemed		(493,058	)		(327,990	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(1,012,597	)		(1,832,264	)
Total Decrease in Net Assets		(1,718,719	)		(2,986,073	)
Net Assets:
Beginning of Period		4,261,330			7,247,403
End of Period (Including Distributions in Excess of Net Investment Income of $(32,427) and $(32,212))	$	2,542,611		$	4,261,330

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Mid Cap Growth Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2016 (unaudited) (000)			Year Ended September 30, 2015 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		2,216			9,353
Shares Issued on Distributions Reinvested		5,943			15,709
Shares Redeemed		(27,176	)		(70,154	)
Net Decrease in Class I Shares Outstanding		(19,017	)		(45,092	)
Class A:
Shares Subscribed		1,164			2,466
Shares Issued on Distributions Reinvested		3,386			6,803
Shares Redeemed		(10,820	)		(23,545	)
Net Decrease in Class A Shares Outstanding		(6,270	)		(14,276	)
Class L:
Shares Subscribed		—			6
Shares Issued on Distributions Reinvested		50			66
Shares Redeemed		(44	)		(94	)
Net Increase (Decrease) in Class L Shares Outstanding		6			(22	)
Class IS:
Shares Subscribed		5,104			21,050
Shares Issued on Distributions Reinvested		3,735			2,405
Shares Redeemed		(16,329	)		(8,054	)
Net Increase (Decrease) in Class IS Shares Outstanding		(7,490	)		15,401

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Mid Cap Growth Portfolio

	Class I
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	35.96		$	44.73		$	44.24		$	35.34		$	33.65		$	33.58
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		0.00	‡		(0.16	)		0.09			0.10			0.17			0.03
Net Realized and Unrealized Gain (Loss)		(2.03	)		(2.33	)		3.04			10.10			3.35			0.14
Total from Investment Operations		(2.03	)		(2.49	)		3.13			10.20			3.52			0.17
Distributions from and/or in Excess of:
Net Investment Income		—			(0.09	)		—			(0.12	)		—			(0.10	)
Net Realized Gain		(4.32	)		(6.19	)		(2.64	)		(1.18	)		(1.83	)		—
Total Distributions		(4.32	)		(6.28	)		(2.64	)		(1.30	)		(1.83	)		(0.10	)
Net Asset Value, End of Period	$	29.61		$	35.96		$	44.73		$	44.24		$	35.34		$	33.65
Total Return++		(6.86	)%#		(6.18	)%		7.25	%		29.92	%		10.91	%		0.47	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,219,097		$	2,164,565		$	4,708,900		$	5,174,440		$	4,219,528		$	3,797,139
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.80	%+*		0.74	%+		0.75	%+		0.70	%+^		0.71	%+		0.69	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			N/A			0.71	%+^		N/A			N/A
Ratio of Net Investment Income (Loss) to Average Net Assets ⁽¹⁾		0.00	%§+*		(0.39	)%+		0.19	%+		0.27	%+^		0.48	%+		0.07	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.01	%
Portfolio Turnover Rate		14	%#		27	%		45	%		52	%		26	%		35	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.86	%*		N/A			N/A			N/A			N/A			N/A
Net Investment Loss to Average Net Assets		(0.06	)%*		N/A			N/A			N/A			N/A			N/A

† Per share amount is based on average shares outstanding.

‡ Amount is less than $0.005 per share.

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

^ 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Mid Cap Growth Portfolio

	Class A
	Six Months Ended March 31, 2016			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	34.06		$	42.70		$	42.46		$	34.03		$	32.55		$	32.51
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.04	)		(0.26	)		(0.03	)		0.01			0.06			(0.07	)
Net Realized and Unrealized Gain (Loss)		(1.90	)		(2.19	)		2.91			9.70			3.25			0.15
Total from Investment Operations		(1.94	)		(2.45	)		2.88			9.71			3.31			0.08
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.10	)		—			(0.04	)
Net Realized Gain		(4.32	)		(6.19	)		(2.64	)		(1.18	)		(1.83	)		—
Total Distributions		(4.32	)		(6.19	)		(2.64	)		(1.28	)		(1.83	)		(0.04	)
Net Asset Value, End of Period	$	27.80		$	34.06		$	42.70		$	42.46		$	34.03		$	32.55
Total Return++		(6.98	)%#		(6.40	)%		6.95	%		29.60	%		10.62	%		0.22	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	639,008		$	996,553		$	1,859,126		$	2,171,493		$	1,832,003		$	2,595,397
Ratio of Expenses to Average Net Assets		1.08	%+*		1.00	%+		1.00	%+		0.95	%+^		0.96	%+		0.94	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			N/A			0.96	%+^		N/A			N/A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.28	)%+*		(0.65	)%+		(0.07	)%+		0.02	%+^		0.17	%+		(0.18	)%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.01	%
Portfolio Turnover Rate		14	%#		27	%		45	%		52	%		26	%		35	%

† 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.

^ 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%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Mid Cap Growth Portfolio

	Class L
	Six Months Ended March 31, 2016			Year Ended September 30,									Period from June 14, 2012^ to
Selected Per Share Data and Ratios	(unaudited)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	33.39		$	42.20		$	42.20		$	33.97		$	32.87
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.11	)		(0.46	)		(0.26	)		(0.15	)		0.05
Net Realized and Unrealized Gain (Loss)		(1.85	)		(2.16	)		2.90			9.63			1.05
Total from Investment Operations		(1.96	)		(2.62	)		2.64			9.48			1.10
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.07	)		—
Net Realized Gain		(4.32	)		(6.19	)		(2.64	)		(1.18	)		—
Total Distributions		(4.32	)		(6.19	)		(2.64	)		(1.25	)		—
Net Asset Value, End of Period	$	27.11		$	33.39		$	42.20		$	42.20		$	33.97
Total Return++		(7.20	)%#		(6.94	)%		6.40	%		28.92	%		3.35	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10,391		$	12,600		$	16,817		$	17,190		$	10
Ratio of Expenses to Average Net Assets		1.58	%+*		1.55	%+		1.55	%+		1.46	%+^^		1.50	%+*
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			N/A			1.46	%+^^		N/A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.77	)%+*		(1.20	)%+		(0.60	)%+		(0.41	)%+^^		0.46	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.00	%§		0.00	%§*
Portfolio Turnover Rate		14	%#		27	%		45	%		52	%		26	%#

^ Commencement of Offering.

† 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.
14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Mid Cap Growth Portfolio

	Class IS
	Six Months Ended March 31, 2016			Year Ended September 30,						Period from September 13, 2013^ to
Selected Per Share Data and Ratios	(unaudited)			2015			2014			September 30, 2013
Net Asset Value, Beginning of Period	$	36.03		$	44.80		$	44.25		$	43.74
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		0.03			(0.10	)		0.18			(0.00	)‡
Net Realized and Unrealized Gain (Loss)		(2.04	)		(2.33	)		3.01			0.51
Total from Investment Operations		(2.01	)		(2.43	)		3.19			0.51
Distributions from and/or in Excess of:
Net Investment Income		—			(0.15	)		—			—
Net Realized Gain		(4.32	)		(6.19	)		(2.64	)		—
Total Distributions		(4.32	)		(6.34	)		(2.64	)		—
Net Asset Value, End of Period	$	29.70		$	36.03		$	44.80		$	44.25
Total Return++		(6.78	)%#		(6.02	)%		7.39	%		1.17	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	674,115		$	1,087,612		$	662,560		$	10
Ratio of Expenses to Average Net Assets		0.61	%+*		0.61	%+		0.61	%+		0.49	%+^^*
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			N/A			0.58	%+^^*
Ratio of Net Investment Income (Loss) to Average Net Assets		0.19	%+*		(0.25	)%+		0.41	%+		(0.22	)%+^^*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§		0.00	%§		0.01	%*
Portfolio Turnover Rate		14	%#		27	%		45	%		52	%#

^ Commencement of Offering.

† 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.
15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust (''MSIFT" or the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Fund is comprised of eight 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 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.

The Portfolio's Class I, Class A, Class L and Class IS shares are currently closed to new investors with certain exceptions.

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 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 Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported

bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") 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.

The Fund has procedures to determine the fair value of securities and other financial instruments for which

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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.

• 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 March 31, 2016.

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	$	28,344	$	—	$	—	$	28,344
Air Freight & Logistics		14,596		—		—		14,596
Automobiles		123,344		—		—		123,344
Beverages		79,049		—		—		79,049
Biotechnology		27,644		—		—		27,644
Capital Markets		25,666		—		—		25,666
Communications Equipment		22,840		—		—		22,840
Consumer Finance		63,629		—		—		63,629
Diversified Financial Services		158,675		—		—		158,675
Electrical Equipment		6,906		—		—		6,906
Food Products		85,987		—		—		85,987
Health Care Equipment & Supplies		155,063		—		—		155,063
Health Care Technology		116,847		—		—		116,847
Hotels, Restaurants & Leisure		142,476		—		—		142,476
Information Technology Services		89,012		—		—		89,012
Internet & Catalog Retail		30,762		—		—		30,762

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Internet Software & Services	$	270,599	$	—	$	62,517	$	333,116
Life Sciences Tools & Services		118,874		—		—		118,874
Pharmaceuticals		82,913		—		—		82,913
Professional Services		140,840		—		—		140,840
Software		277,226		—		—		277,226
Tech Hardware, Storage & Peripherals		9,457		—		—		9,457
Textiles, Apparel & Luxury Goods		108,919		—		—		108,919
Trading Companies & Distributors		26,094		—		—		26,094
Total Common Stocks		2,205,762		—		62,517		2,268,279
Convertible Preferred Stock		—		—		4,094		4,094
Preferred Stocks		—		—		170,567		170,567
Call Option Purchased		—		2,802		—		2,802
Short-Term Investments
Investment Companies		337,274		—		—		337,274
Repurchase Agreements		—		52,376		—		52,376
Total Short-Term Investments		337,274		52,376		—		389,650
Total Assets	$	2,543,036	$	55,178	$	237,178	$	2,835,392

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes

transfers between the levels as of the end of the period. As of March 31, 2016, securities with a total value of approximately $18,835,000 transferred from Level 2 to Level 1. At September 30, 2015, 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.

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	$	165,222		$	7,132		$	252,754
Purchases		—			—			—
Sales		(60,467	)		—			—
Amortization of discount		—			—			—
Transfers in		—			—			—
Transfers out		—			—			—
Corporate actions		—			(18,817	)		—
Change in unrealized appreciation (depreciation)		(63,893	)		15,779			(82,187	)
Realized gains (losses)		21,655			—			—
Ending Balance	$	62,517		$	4,094		$	170,567
Net change in unrealized appreciation (depreciation) from investments still held as of March 31, 2016	$	(35,745	)	$	(2,792	)	$	(82,187	)

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of March 31, 2016. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance.

	Fair Value at March 31, 2016 (000)		Valuation Technique	Unobservable Input	Range					Selected Value			Impact to Valuation from an increase in input
Internet & Catalog Retail
Preferred Stocks	$	86,186	Discounted Cash Flow	Weighted Average Cost of Capital		17.0	%	19.0	%		18.0	%	Decrease
				Perpetual Growth Rate		3.0	%	4.0	%		3.5	%	Increase
			Market Comparable Companies	Enterprise Value/Revenue		7.4	x	18.4	x		15.9	x	Increase
				Discount for Lack of Marketability		20.0	%	20.0	%		20.0	%	Decrease
	$	49,802	Discounted Cash Flow	Weighted Average Cost of Capital		17.0	%	19.0	%		18.0	%	Decrease
				Perpetual Growth Rate		3.5	%	4.5	%		4.0	%	Increase
			Market Comparable Companies	Enterprise Value/Revenue		3.1	x	5.8	x		3.2	x	Increase
				Discount for Lack of Marketability		20.0	%	20.0	%		20.0	%	Decrease

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

	Fair Value at March 31, 2016 (000)		Valuation Technique	Unobservable Input	Range					Selected Value			Impact to Valuation from an increase in input
Internet Software & Services
Common Stock	$	41,256	Discounted Cash Flow	Weighted Average Cost of Capital		18.0	%	20.0	%		19.0	%	Decrease
Preferred Stock	$	4,094		Perpetual Growth Rate		2.5	%	3.5	%		3.0	%	Increase
			Market Comparable Companies	Enterprise Value/Revenue		6.5	x	16.1	x		8.7	x	Increase
				Discount for Lack of Marketability		20.0	%	20.0	%		20.0	%	Decrease
Common Stock	$	21,261	Discounted Cash Flow	Weighted Average Cost of Capital		17.5	%	19.5	%		18.5	%	Decrease
				Perpetual Growth Rate		3.0	%	4.0	%		3.5	%	Increase
			Market Comparable Companies	Enterprise Value/Revenue		5.5	x	14.4	x		10.0	x	Increase
				Discount for Lack of Marketability		20.0	%	20.0	%		20.0	%	Decrease
Software
Preferred Stocks	$	34,579	Discounted Cash Flow	Weighted Average Cost of Capital		17.0	%	19.0	%		18.0	%	Decrease
				Perpetual Growth Rate		2.5	%	3.5	%		3.0	%	Increase
			Market Comparable Companies	Enterprise Value/Revenue		6.2	x	11.3	x		10.8	x	Increase
				Discount for Lack of Marketability		20.0	%	20.0	%		20.0	%	Decrease

– 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

Semi-Annual Report — March 31, 2016

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

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.

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:

Options: With 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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 in Securities" in 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 March 31, 2016.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Call Option Purchased

Investments, at Value
(Call Option Purchased)

Currency Risk

2,802

(a)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Call Option Purchased)	$	(3,726	)(b)

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

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Call Options Purchased)	$	(6,536	)(c)

At March 31, 2016, 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(d) (000)			Liabilities (000)
Call Option Purchased	$	2,802	(a)	$	—

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

(d) 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

Semi-Annual Report — March 31, 2016

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

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 March 31, 2016.

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(e) (000)			Net Amount (not less than $0) (000)
Royal Bank of Scotland	$	2,802	$	—	$	(2,802	)	$	0

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

For the six months ended March 31, 2016, the approximate average monthly amount outstanding for each derivative type is as follows:

Call Options Purchased:
Average monthly notional amount					991,804,000

value of the loaned securities. The collateral is marked-to-market daily by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

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

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

The following table presents financial instruments that are subject to enforceable netting arrangements as of March 31, 2016.

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)
$	278,451	(f)	$	—	$	(278,451	)(g)(h)	$	0

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

(g) The Portfolio received cash collateral of approximately $280,700,000, of which approximately $279,392,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of March 31, 2016, there was uninvested cash of approximately $1,308,000, which is not reflected in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $423,000 in the form of U.S. Government obligations, which the Portfolio cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

transparency about the types of collateral pledged in securities lending transactions and other similar transactions that are accounted for as secured borrowing.

	Remaining Contractual Maturity of the Agreements As of March 31, 2016
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Common Stocks	$	280,700	$	—	$	—	$	—	$	280,700
Total Borrowings	$	280,700	$	—	$	—	$	—	$	280,700
Gross amount of recognized liabilities for securities lending transactions									$	280,700

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. 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.

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 and shareholder services, 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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2016, approximately $474,000 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 0.50% 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.

G. Security Transactions and Transactions with Affiliates: For the six months ended March 31, 2016, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $473,564,000 and $2,044,211,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2016.

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 six months ended March 31, 2016, advisory fees paid were reduced by approximately $45,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	210,142			$	1,490,342			$	1,363,210			$	161			$	337,274

During the six months ended March 31, 2016, the Portfolio incurred approximately $5,000 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

Semi-Annual Report — March 31, 2016

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

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 NAV of the Portfolio.

2015 Distributions Paid From:				2014 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	69,051	$	902,755	$	70,823	$	369,254

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.

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, nondeductible expenses, distribution redesignation, tax adjustments on partnership investments held and sold by the Portfolio and a net operating loss, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Distributions in Excess of Net Investment Income (000)				Accumulated Undistributed Net Realized Gain (000)				Paid-in- Capital (000)
$	(3,956	)		$	11,318			$	(7,362	)

At September 30, 2015, 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)
$	—			$	415,821

Post-October Currency and Specified Ordinary Losses (000)				Post-October Capital Losses (000)
$	31,975			$	—

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

Trustee and Officer Information (unaudited)

Trustees

Officers

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

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

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

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

IFTMCGSAN
1482434 EXP. 05.31.17

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Strategic Income Portfolio

Semi-Annual Report

March 31, 2016

FSVPRO-00

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					9
Statement of Operations					11
Statements of Changes in Net Assets					12
Financial Highlights					13
Notes to Financial Statements					17
U.S. Privacy Policy					27
Trustee and Officer Information					30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Shareholders' Letter (unaudited)

Dear Shareholders,

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

April 2016

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Expense Example (unaudited)

Strategic Income Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended March 31, 2016 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 10/1/15		Actual Ending Account Value 3/31/16		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Strategic Income Portfolio Class I	$	1,000.00	$	996.40	$	1,020.00	$	4.99	$	5.05		1.00	%
Strategic Income Portfolio Class A		1,000.00		993.60		1,018.35		6.63		6.71		1.33
Strategic Income Portfolio Class C		1,000.00		990.80		1,014.50		10.45		10.58		2.10
Strategic Income Portfolio Class IS		1,000.00		996.70		1,020.30		4.69		4.75		0.94

** Annualized.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (89.9%)
Asset-Backed Securities (13.8%)
AMRESCO Residential Securities Corp.
Mortgage Loan Trust,
0.99%, 9/25/27 (a)	$	17	$	16
Bear Stearns Asset-Backed Securities I Trust,
0.76%, 3/25/37 (a)		89		45
0.79%, 5/25/37 (a)		97		56
BNC Mortgage Loan Trust,
0.59%, 3/25/37 (a)		100		65
Carrington Mortgage Loan Trust,
0.66%, 1/25/37 (a)		100		57
Countrywide Asset-Backed Certificates,
0.81%, 4/25/36 (a)		100		82
0.89%, 3/25/47 (a)(b)		70		51
4.94%, 7/25/36		127		101
CWABS Asset-Backed Certificates Trust,
4.85%, 10/25/46 (a)		86		62
Ellington Loan Acquisition Trust,
1.54%, 5/25/37 (a)(b)		100		84
GSAA Home Equity Trust,
6.00%, 11/25/36		33		21
GSAMP Trust,
0.76%, 3/25/46 (a)		100		74
Lehman ABS Manufactured Housing Contract Trust,
3.70%, 4/15/40		26		26
Nationstar Home Equity Loan Trust,
0.69%, 4/25/37 (a)		100		87
Ownit Mortgage Loan Trust,
0.71%, 3/25/37 (a)		61		46
RAMP Trust,
0.76%, 11/25/35 (a)		68		55
RASC Trust,
0.60%, 11/25/36 (a)		72		61
RMAT LLC,
4.83%, 6/25/35 (b)		84		83
Truman Capital Mortgage Loan Trust,
2.14%, 1/25/34 (a)(b)		78		77
3.21%, 11/25/31 (a)(b)		70		67
VOLT XXXIII LLC,
4.25%, 3/25/55 (b)		99		96
				1,312
Collateralized Mortgage Obligation — Agency Collateral Series (0.2%)
Government National Mortgage Association, IO
0.82%, 8/20/58 (a)		585		19
Commercial Mortgage-Backed Securities (4.8%)
COMM Mortgage Trust,
2.87%, 2/10/48 (b)		100		70
3.94%, 6/11/27 (a)(b)		100		99
GS Mortgage Securities Trust,
4.33%, 2/10/48 (a)(b)		100		74

	Face Amount (000)		Value (000)
HILT Mortgage Trust,
4.19%, 7/15/29 (a)(b)	$	100	$	87
JPMBB Commercial Mortgage Securities Trust,
3.85%, 2/15/48 (a)(b)		100		72
Wells Fargo Commercial Mortgage Trust,
4.10%, 5/15/48 (a)		75		57
				459
Corporate Bonds (37.7%)
Finance (16.4%)
ABN Amro Bank N.V,
6.38%, 4/27/21	EUR	100		136
Ally Financial, Inc.,
4.13%, 3/30/20	$	25		25
Assicurazioni Generali SpA,
7.75%, 12/12/42 (a)	EUR	100		137
Bank of America Corp., MTN
4.25%, 10/22/26	$	50		51
BNP Paribas SA, MTN
4.25%, 10/15/24		200		203
BPCE SA,
5.15%, 7/21/24 (b)		200		205
Citigroup, Inc.,
5.50%, 9/13/25		75		82
Cooperatieve Rabobank UA,
2.50%, 5/26/26 (a)	EUR	100		116
Discover Financial Services,
3.95%, 11/6/24	$	25		25
Goldman Sachs Group, Inc. (The),
0.59%, 10/29/19 (a)	EUR	100		114
Kennedy-Wilson, Inc.,
5.88%, 4/1/24	$	25		24
Lloyds Bank PLC,
6.50%, 3/24/20	EUR	50		67
Muenchener Rueckversicherungs- Gesellschaft AG in Muenchen,
6.00%, 5/26/41 (a)		100		136
Nationwide Building Society,
4.13%, 3/20/23 (a)		100		118
Vonovia Finance BV,
4.00%, 12/17/21 (a)(c)		100		113
				1,552
Industrials (19.8%)
Actavis Funding SCS,
3.80%, 3/15/25	$	15		16
Advanced Micro Devices, Inc.,
6.75%, 3/1/19		25		20
Air Canada,
6.75%, 10/1/19 (b)		50		52
Akamai Technologies, Inc.,
Zero Coupon, 2/15/19		50		49
Aramark Services, Inc.,
5.75%, 3/15/20		25		26

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Argos Merger Sub, Inc.,
7.13%, 3/15/23 (b)	$	25	$	27
AT&T, Inc.,
6.30%, 1/15/38		25		29
Ball Corp.,
4.00%, 11/15/23		25		25
Carrizo Oil & Gas, Inc.,
6.25%, 4/15/23		15		13
CCO Safari II LLC,
4.91%, 7/23/25 (b)		50		53
Citrix Systems, Inc.,
0.50%, 4/15/19		50		56
Cobalt International Energy, Inc.,
2.63%, 12/1/19		50		25
Continental Airlines Pass-Thru Certificates,
6.13%, 4/29/18		25		26
Crown Castle International Corp.,
5.25%, 1/15/23		25		27
CSC Holdings LLC,
5.25%, 6/1/24		25		22
Ctrip.com International Ltd.,
1.25%, 10/15/18		50		64
DISH DBS Corp.,
5.00%, 3/15/23		25		22
Dollar Tree, Inc.,
5.75%, 3/1/23 (b)		25		27
Embraer Netherlands Finance BV,
5.05%, 6/15/25		25		22
First Data Corp.,
5.38%, 8/15/23 (b)		25		26
General Motors Financial Co., Inc.,
4.30%, 7/13/25		50		50
Global Partners LP/GLP Finance Corp.,
7.00%, 6/15/23		25		19
Harland Clarke Holdings Corp.,
9.75%, 8/1/18 (b)		25		25
HCA, Inc.,
4.75%, 5/1/23		25		25
Hilcorp Energy I LP/Hilcorp Finance Co.,
5.75%, 10/1/25 (b)		15		13
Kinder Morgan, Inc.,
5.55%, 6/1/45		25		22
Lamar Media Corp.,
5.00%, 5/1/23		25		26
Lear Corp.,
5.25%, 1/15/25		50		52
Lundin Mining Corp.,
7.50%, 11/1/20 (b)		25		24
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC,
5.50%, 4/15/25 (b)		25		22

	Face Amount (000)		Value (000)
MasTec, Inc.,
4.88%, 3/15/23	$	25	$	22
MGM Resorts International,
6.00%, 3/15/23		25		26
Midcontinent Communications & Midcontinent Finance Corp.,
6.25%, 8/1/21 (b)		25		26
Motorola Solutions, Inc.,
4.00%, 9/1/24		25		23
MPLX LP,
4.00%, 2/15/25		25		22
Netflix, Inc.,
5.50%, 2/15/22		25		26
ON Semiconductor Corp., Series B
2.63%, 12/15/26		50		54
OPE KAG Finance Sub, Inc.,
7.88%, 7/31/23 (b)		25		25
Outfront Media Capital LLC/ Outfront Media Capital Corp.,
5.25%, 2/15/22		25		26
QUALCOMM, Inc.,
4.80%, 5/20/45		5		5
QVC, Inc.,
4.85%, 4/1/24		25		25
RR Donnelley & Sons Co.,
7.88%, 3/15/21		25		25
RSI Home Products, Inc.,
6.50%, 3/15/23 (b)		25		26
Sally Holdings LLC/Sally Capital, Inc,
5.63%, 12/1/25		25		27
Seminole Hard Rock Entertainment, Inc./ Seminole Hard Rock International LLC,
5.88%, 5/15/21 (b)		50		50
SM Energy Co.,
6.13%, 11/15/22		15		11
Standard Industries, Inc,
5.38%, 11/15/24 (b)		50		51
Starwood Property Trust, Inc.,
4.55%, 3/1/18		50		50
Suburban Propane Partners LP/ Suburban Energy Finance Corp.,
5.75%, 3/1/25		25		24
Telefonica Europe BV,
5.88%, 3/31/24 (a)(c)	EUR	100		116
Tesla Motors, Inc.,
0.25%, 3/1/19	$	50		46
Toll Brothers Finance Corp.,
0.50%, 9/15/32		50		49
Tops Holding LLC/Tops Markets II Corp.,
8.00%, 6/15/22 (b)		25		23
United Rentals North America, Inc.,
5.75%, 11/15/24		25		25

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Whole Foods Market, Inc.,
5.20%, 12/3/25 (b)	$	25	$	26
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
5.50%, 3/1/25 (b)		25		24
XPO Logistics, Inc.,
7.88%, 9/1/19 (b)		50		52
Yahoo!, Inc.,
Zero Coupon, 12/1/18		50		50
Zachry Holdings, Inc.,
7.50%, 2/1/20 (b)		25		24
				1,884
Utilities (1.5%)
AES Corp.,
4.88%, 5/15/23		75		72
Energy Transfer Partners LP,
2.50%, 6/15/18		75		73
				145
				3,581
Mortgages — Other (11.0%)
Alternative Loan Trust,
2.89%, 3/25/35 (a)		113		102
PAC
0.89%, 10/25/36 (a)		74		51
Banc of America Alternative Loan Trust,
0.89%, 11/25/36 (a)		64		39
5.71%, 10/25/36 (a)		111		69
Bear Stearns Structured Products, Inc. Trust,
2.70%, 1/26/36 (a)		40		32
Bear Stearns Trust,
0.82%, 5/25/36 (a)		70		57
2.49%, 2/25/36 (a)		61		51
2.63%, 4/25/35 (a)		59		44
2.84%, 3/25/36 (a)		114		86
Citigroup Mortgage Loan Trust,
2.57%, 6/25/36 (a)		45		36
First Horizon Mortgage Pass-Through Trust,
6.25%, 11/25/36		26		25
Grifonas Finance PLC,
0.15%, 8/28/39 (a)	EUR	52		41
HarborView Mortgage Loan Trust,
0.62%, 1/19/38 (a)	$	35		28
IndyMac INDX Mortgage Loan Trust,
2.71%, 12/25/34 (a)		52		49
JP Morgan Mortgage Trust,
2.59%, 6/25/37 (a)		47		41
Lehman Mortgage Trust,
6.00%, 7/25/36 - 6/25/37		151		109
Luminent Mortgage Trust,
0.67%, 5/25/37 (a)		124		91

	Face Amount (000)		Value (000)
Lusitano Mortgages No. 5 PLC,
0.12%, 7/15/59 (a)	EUR	53	$	46
MASTR Alternative Loan Trust,
6.25%, 7/25/36	$	50		43
				1,040
Sovereign (19.4%)
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/25	BRL	330		74
Cyprus Government International Bond,
3.88%, 5/6/22	EUR	40		47
Hungary Government Bond,
6.00%, 11/24/23	HUF	39,000		175
Hungary Government International Bond,
5.38%, 3/25/24	$	100		112
Indonesia Government International Bond,
5.88%, 1/15/24 (b)		200		225
Italy Buoni Poliennali Del Tesoro,
2.35%, 9/15/24 (b)	EUR	89		119
Mexican Bonos,
10.00%, 12/5/24	MXN	4,300		320
New Zealand Government Bond,
4.50%, 4/15/27	NZD	70		55
5.50%, 4/15/23		200		165
Poland Government Bond,
2.50%, 7/25/26	PLN	430		112
Portugal Government International Bond,
5.13%, 10/15/24 (b)	$	50		51
Portugal Obrigacoes do Tesouro OT,
5.65%, 2/15/24 (b)	EUR	110		151
Romania Government Bond,
4.75%, 2/24/25	RON	120		34
5.85%, 4/26/23		240		72
Select Medical Corp.,
6.38%, 6/1/21	$	50		48
South Africa Government Bond,
8.00%, 1/31/30	ZAR	280		17
Spain Government Inflation Linked Bond,
1.80%, 11/30/24 (b)	EUR	49		62
				1,839
U.S. Treasury Securities (3.0%)
U.S. Treasury Bond,
3.50%, 2/15/39	$	50		59
U.S. Treasury Inflation Indexed Bond,
0.25%, 1/15/25		220		222
				281
Total Fixed Income Securities (Cost $8,647)				8,531

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Shares		Value (000)
Short-Term Investment (9.8%)
Investment Company (9.8%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $931)		930,791	$	931
Total Investments (99.7%) (Cost $9,578) (d)(e)				9,462
Other Assets in Excess of Liabilities (0.3%)				30
Net Assets (100.0%)			$	9,492

(a) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 31, 2016.

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

(c) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of March 31, 2016.

(d) Securities are available for collateral in connection with open foreign currency forward exchange contracts, futures contracts and swap agreements.

(e) At March 31, 2016, the aggregate cost for Federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $158,000 and the aggregate gross unrealized depreciation is approximately $274,000 resulting in net unrealized depreciation of approximately $116,000.

IO Interest Only.

MTN Medium Term Note.

PAC Planned Amortization Class.

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at March 31, 2016:

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Delivery Date	Unrealized Appreciation (Depreciation) (000)
HSBC Bank PLC	AUD	158		$	112		4/5/16	$	(8	)
HSBC Bank PLC	BRL	91		$	25		4/5/16		(—	@)
HSBC Bank PLC	BRL	69		$	19		4/5/16		(—	@)
HSBC Bank PLC	CAD	64		MXN	850		4/5/16		—	@
HSBC Bank PLC	EUR	1,282		$	1,391		4/5/16		(67	)
HSBC Bank PLC	MXN	450		JPY	2,838		4/5/16		(1	)
HSBC Bank PLC	MXN	4,713		$	262		4/5/16		(11	)
HSBC Bank PLC	$	46		AUD	63		4/5/16		2
HSBC Bank PLC	$	72		AUD	94		4/5/16		—	@
HSBC Bank PLC	$	—	@	GBP	—	@	4/5/16		—	@
HSBC Bank PLC	$	49		ZAR	730		4/5/16		—	@
JPMorgan Chase Bank NA	HUF	80,216		$	281		4/5/16		(10	)
JPMorgan Chase Bank NA	JPY	159		$	1		4/5/16		(—	@)
JPMorgan Chase Bank NA	PLN	1		$	—	@	4/5/16		(—	@)
JPMorgan Chase Bank NA	$	17		MXN	290		4/5/16		(—	@)
JPMorgan Chase Bank NA	$	54		NZD	81		4/5/16		2
UBS AG	BRL	179		$	49		4/5/16		(1	)
UBS AG	CAD	1		$	—	@	4/5/16		(—	@)
UBS AG	JPY	2,638		$	23		4/5/16		(—	@)
UBS AG	NZD	401		$	264		4/5/16		(13	)
UBS AG	PLN	420		$	107		4/5/16		(6	)
UBS AG	$	95		BRL	339		4/5/16		(1	)
UBS AG	$	131		HUF	36,891		4/5/16		3
UBS AG	$	1		NOK	13		4/5/16		—	@
UBS AG	ZAR	59		$	4		4/5/16		(—	@)
UBS AG	ZAR	188		$	12		4/5/16		(1	)
JPMorgan Chase Bank NA	EUR	43		NOK	405		4/8/16		(—	@)
JPMorgan Chase Bank NA	$	5		EUR	4		4/8/16		—	@
UBS AG	$	1		EUR	1		4/8/16		—	@
UBS AG	$	48		NOK	399		4/8/16		1
UBS AG	BRL	339		$	95		5/4/16		1
								$	(110	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

Futures Contracts:

The Portfolio had the following futures contracts open at March 31, 2016:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Short:
German Euro BOBL (Germany)		5	$	(746	)	Jun-16	$	1
German Euro Bund (Germany)		5		(929	)	Jun-16		(4	)
U.S. Treasury 10 yr. Note (United States)		10		(1,304	)	Jun-16		3
U.S. Treasury 2 yr. Note (United States)		1		(219	)	Jun-16		(1	)
U.S. Treasury 5 yr. Note (United States)		5		(606	)	Jun-16		1
U.S. Treasury Ultra Bond (United States)		1		(172	)	Jun-16		1
U.S. Treasury Ultra Long Bond (United States)		8		(1,126	)	Jun-16		(20	)
							$	(19	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at March 31, 2016:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (000)			Unrealized Depreciation (000)			Value (000)			Credit Rating of Reference Obligation†
Deutsche Bank AG CMBX.NA.BB.60	Sell	$	28		5.00	%	5/11/63	$	—	@	$	(3	)	$	(3	)	NR
Goldman Sachs International CMBX.NA.BB.60	Sell		20		5.00		5/11/63		(—	@)		(2	)		(2	)	NR
		$	48					$	—	@	$	(5	)	$	(5	)

@ Value is less than $500.

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

NR Not rated.

AUD — Australian Dollar

BRL — Brazilian Real

CAD — Canadian Dollar

EUR — Euro

GBP — British Pound

HUF — Hungarian Forint

JPY — Japanese Yen

MXN — Mexican Peso

NOK — Norwegian Krone

NZD — New Zealand Dollar

PLN — Polish Zloty

RON — Romanian New Leu

ZAR — South African Rand

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		19.9	%
Sovereign		19.4
Finance		16.4
Asset-Backed Securities		13.9
Mortgages — Other		11.0
Short-Term Investment		9.8
Other*		9.6
Total Investments		100.0	%**

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

** Does not include open short futures contracts with an underlying face amount of approximately $5,102,000 with net unrealized depreciation of approximately $19,000. Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $110,000 and does not include open swap agreements with total unrealized depreciation of approximately $5,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Strategic Income Portfolio

Statement of Assets and Liabilities	March 31, 2016 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $8,647)	$	8,531
Investment in Security of Affiliated Issuer, at Value (Cost $931)		931
Total Investments in Securities, at Value (Cost $9,578)		9,462
Foreign Currency, at Value (Cost $9)		8
Receivable for Investments Sold		94
Interest Receivable		87
Receivable for Variation Margin on Futures Contracts		54
Due from Adviser		38
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		9
Tax Reclaim Receivable		1
Premium Paid on Open Swap Agreements		—	@
Receivable from Affiliate		—	@
Prepaid Offering Costs		—	@
Other Assets		63
Total Assets		9,816
Liabilities:
Payable for Investments Purchased		122
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		119
Payable for Professional Fees		45
Payable for Custodian Fees		13
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		2
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		2
Unrealized Depreciation on Swap Agreements		5
Payable for Administration Fees		1
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Premium Received on Open Swap Agreements		—	@
Other Liabilities		13
Total Liabilities		324
Net Assets	$	9,492
Net Assets Consist Of:
Paid-in-Capital	$	10,005
Distributions in Excess of Net Investment Income		(16	)
Accumulated Net Realized Loss		(247	)
Unrealized Appreciation (Depreciation) on:
Investments		(116	)
Futures Contracts		(19	)
Swap Agreements		(5	)
Foreign Currency Forward Exchange Contracts		(110	)
Foreign Currency Translations		—	@
Net Assets	$	9,492

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Strategic Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2016 (000)
CLASS I:
Net Assets	$	9
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	9.48
CLASS A:
Net Assets	$	9
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Redemption Price Per Share	$	9.47
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.42
Maximum Offering Price Per Share	$	9.89
CLASS C:
Net Assets	$	9
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		994
Net Asset Value, Offering and Redemption Price Per Share	$	9.45
CLASS IS:
Net Assets	$	9,465
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		998,000
Net Asset Value, Offering and Redemption Price Per Share	$	9.48

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Strategic Income Portfolio

Statement of Operations	Six Months Ended March 31, 2016 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	141
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		142
Expenses:
Professional Fees		60
Offering Costs		41
Advisory Fees (Note B)		19
Custodian Fees (Note F)		18
Registration Fees		14
Shareholder Reporting Fees		7
Pricing Fees		7
Administration Fees (Note C)		4
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Trustees' Fees and Expenses		—	@
Other Expenses		7
Total Expenses		181
Expenses Reimbursed by Adviser (Note B)		(113	)
Waiver of Advisory Fees (Note B)		(19	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		45
Net Investment Income		97
Realized Gain (Loss):
Investments Sold		(68	)
Foreign Currency Forward Exchange Contracts		60
Foreign Currency Transactions		3
Futures Contracts		(157	)
Swap Agreements		1
Net Realized Loss		(161	)
Change in Unrealized Appreciation (Depreciation):
Investments		116
Foreign Currency Forward Exchange Contracts		(132	)
Foreign Currency Translations		1
Futures Contracts		49
Swap Agreements		(3	)
Net Change in Unrealized Appreciation (Depreciation)		31
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(130	)
Net Decrease in Net Assets Resulting from Operations	$	(33	)

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016 (unaudited)

Strategic Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2016 (unaudited) (000)			Period from December 30, 2014^ to September 30, 2015 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	97		$	140
Net Realized Gain (Loss)		(161	)		11
Net Change in Unrealized Appreciation (Depreciation)		31			(281	)
Net Decrease in Net Assets Resulting from Operations		(33	)		(130	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1	)		(—	@)
Class A:
Net Investment Income		(—	@)		(—	@)
Class C:
Net Investment Income		(—	@)		(—	@)*
Class IS:
Net Investment Income		(279	)		(75	)
Total Distributions		(280	)		(75	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		—			10
Class A:
Subscribed		—			10
Class C:
Subscribed		—			10	*
Class IS:
Subscribed		—			9,980
Net Increase in Net Assets Resulting from Capital Share Transactions		—			10,010
Total Increase (Decrease) in Net Assets		(313	)		9,805
Net Assets:
Beginning of Period		9,805			—
End of Period (Including Distributions in Excess of Net Investment Income and Accumulated Undistributed Net Investment Income of $(16) and $167, respectively)	$	9,492		$	9,805
(1) Capital Share Transactions:
Class I:
Shares Subscribed		—			1
Class A:
Shares Subscribed		—			1
Class C:
Shares Subscribed		—			1	*
Class IS:
Shares Subscribed		—			998

^ Commencement of Operations.

* For the period April 30, 2015 through September 30, 2015.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Strategic Income Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from December 30, 2014^ to September 30, 2015
Net Asset Value, Beginning of Period	$	9.79		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.09			0.14
Net Realized and Unrealized Loss		(0.12	)		(0.28	)
Total from Investment Operations		(0.03	)		(0.14	)
Distributions from and/or in Excess of:
Net Investment Income		(0.28	)		(0.07	)
Net Asset Value, End of Period	$	9.48		$	9.79
Total Return++		(0.36	)%#		(1.39	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9		$	10
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.00	%+*		0.98	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.93	%+*		1.81	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.02	%*
Portfolio Turnover Rate		17	%#		39	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		20.67	%*		17.80	%*
Net Investment Loss to Average Net Assets		(17.74	)%*		(15.01	)%*

^ 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.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Strategic Income Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from December 30, 2014^ to September 30, 2015
Net Asset Value, Beginning of Period	$	9.79		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.08			0.11
Net Realized and Unrealized Loss		(0.14	)		(0.27	)
Total from Investment Operations		(0.06	)		(0.16	)
Distributions from and/or in Excess of:
Net Investment Income		(0.26	)		(0.05	)
Net Asset Value, End of Period	$	9.47		$	9.79
Total Return++		(0.64	)%#		(1.56	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9		$	10
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.33	%+*		1.33	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.58	%+*		1.46	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%*		0.02	%*
Portfolio Turnover Rate		17	%#		39	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		20.95	%*		18.06	%*
Net Investment Loss to Average Net Assets		(18.04	)%*		(15.27	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Strategic Income Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	9.76		$	10.06
Income (Loss) from Investment Operations:
Net Investment Income†		0.04			0.05
Net Realized and Unrealized Loss		(0.13	)		(0.32	)
Total from Investment Operations		(0.09	)		(0.27	)
Distributions from and/or in Excess of:
Net Investment Income		(0.22	)		(0.03	)
Net Asset Value, End of Period	$	9.45		$	9.76
Total Return++		(0.92	)%#		(2.71	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9		$	10
Ratios of Expenses to Average Net Assets ⁽¹⁾		2.10	%+*		2.10	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		0.82	%+*		1.13	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*		0.00	%§*
Portfolio Turnover Rate		17	%#		39	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		24.42	%*		19.28	%*
Net Investment Loss to Average Net Assets		(21.50	)%*		(16.05	)%*

^ Commencement of Offering.

† 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.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Financial Highlights

Strategic Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2016 (unaudited)			Period from December 30, 2014^ to September 30, 2015
Net Asset Value, Beginning of Period	$	9.79		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.10			0.14
Net Realized and Unrealized Loss		(0.13	)		(0.27	)
Total from Investment Operations		(0.03	)		(0.13	)
Distributions from and/or in Excess of:
Net Investment Income		(0.28	)		(0.08	)
Net Asset Value, End of Period	$	9.48		$	9.79
Total Return++		(0.33	)%#		(1.37	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9,465		$	9,775
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.94	%+*		0.93	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.02	%+*		1.88	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*		0.02	%*
Portfolio Turnover Rate		17	%#		39	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation
Expenses to Average Net Assets		3.72	%*		4.04	%*
Net Investment Loss to Average Net Assets		(0.76	)%*		(1.23	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("MSIFT" or the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Fund is comprised of eight 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 Strategic Income Portfolio. The Portfolio's adviser, Morgan Stanley Investment Management Inc. (the "Adviser") and sub-adviser, Morgan Stanley Investment Management Limited ("MSIM Limited") (the "Sub-Adviser"), seek a total return comprised of income and capital appreciation. The Portfolio offers four classes of shares — Class I, Class A, Class C and Class IS.

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 the Adviser or Sub-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 ("NAV") 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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value 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.)

The following is a summary of the inputs used to value the Portfolio's investments as of March 31, 2016.

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	$	—	$	1,312	$	—	$	1,312
Collateralized Mortgage Obligation — Agency Collateral Series		—		19		—		19
Commercial Mortgage-Backed Securities		—		459		—		459
Corporate Bonds		—		3,581		—		3,581
Mortgages — Other		—		1,040		—		1,040
Sovereign		—		1,839		—		1,839
U.S. Treasury Securities		—		281		—		281
Total Fixed Income Securities		—		8,531		—		8,531
Short-Term Investment
Investment Company		931		—		—		931
Foreign Currency Forward Exchange Contracts		—		9		—		9
Futures Contracts		6		—		—		6
Total Assets		937		8,540		—		9,477

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Liabilities:
Foreign Currency Forward Exchange Contracts	$	—		$	(119	)	$	—	$	(119	)
Futures Contracts		(25	)		—			—		(25	)
Credit Default Swap Agreements		—			(5	)		—		(5	)
Total Liabilities		(25	)		(124	)		—		(149	)
Total	$	912		$	8,416		$	—	$	9,328

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.

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 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) in 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.

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.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 and/or Sub-Adviser seek 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:

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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.

(i) receive from the seller of protection an amount equal to the notional amount of the swap agreement and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 may 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.

Portfolio uses derivative instruments, how these derivative instruments are accounted for and their effects on the Portfolio's financial position and results of operations.

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of March 31, 2016.

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

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(a)

Total

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

(119

)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(25

)(a)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Credit Risk

)

Total

(149

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	60
Interest Rate Risk	Futures Contracts		(157	)
Credit Risk	Swap Agreements		1
Total		$	(96	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(132	)
Interest Rate Risk	Futures Contracts		49
Credit Risk	Swap Agreements		(3	)
Total		$	(86	)

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

At March 31, 2016, 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	$	9	$	(119	)
Swap Agreements		—		(5	)
Total	$	9	$	(124	)

(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 March 31, 2016.

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)
HSBC Bank PLC	$	2	$	(2	)	$	—	$	0
JPMorgan Chase Bank NA		2		(2	)		—		0
UBS AG		5		(5	)		—		0
Total	$	9	$	(9	)	$	—	$	0
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)
Deutsche Bank AG	$	3	$	—		$	—	$	3
Goldman Sachs International		2		—			—		2
HSBC Bank PLC		87		(2	)		—		85
JPMorgan Chase Bank NA		10		(2	)		—		8
UBS AG		22		(5	)		—		17
Total	$	124	$	(9	)	$	—	$	115

For the six months ended March 31, 2016, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	3,905,000
Futures Contracts:
Average monthly original value	$	6,688,000
Swap Agreements:
Average monthly notional amount	$	48,000

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 quarterly. Net realized capital gains, if any, are distributed at least annually.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

7. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services and 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/Sub-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 $500 million				Over $500 million
	0.40	%			0.35	%

For the six months ended March 31, 2016, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.00% of the Portfolio's average 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 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time as the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended March 31, 2016, approximately $19,000 of advisory fees were waived and approximately $117,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has entered into a Sub-Advisory Agreement with the Sub-Adviser, a wholly-owned subsidiary of Morgan Stanley. The Sub-Adviser provides the Portfolio with advisory services subject to the overall supervision of the Adviser and the Fund's Officers and Trustees. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Portfolio.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser and Sub-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.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

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 six months ended March 31, 2016, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $1,404,000 and $1,919,000, respectively. For the six months ended March 31, 2016, purchases and sales of long-term U.S. Government securities were approximately $57,000 and $453,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds – Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the six months ended March 31, 2016, advisory fees paid were reduced by less than $500 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the six months ended March 31, 2016 is as follows:

Value September 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value March 31, 2016 (000)
$	65			$	2,606			$	1,740			$	1			$	931

with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV 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.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. The tax period ended September 30, 2015, remains subject to examination by taxing authorities.

2015 Distributions Paid From:
Ordinary Income (000)
$	75

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, basis adjustments for swap transactions, paydown adjustments and nondeductible expenses, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	102			$	(97	)		$	(5	)

At September 30, 2015, 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)
$	322			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused short term and long term capital losses of approximately $85,000 and $55,000, respectively, that do not have an expiration date.

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

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

Semi-Annual Report — March 31, 2016

Trustee and Officer Information (unaudited)

Trustees

Officers

John H. Gernon
President and Principal Executive Officer

Stefanie V. Chang Yu
Chief Compliance Officer

Joseph C. Benedetti
Vice President

Mary E. Mullin
Secretary

Francis J. Smith
Treasurer and Principal Financial Officer

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management Limited
25 Cabot Square, Canary Wharf
London, E14 4QA, England

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

IFTSIPSAN
1481269 EXP. 05.31.17

Item 2. Code of Ethics.

Not applicable for semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semiannual reports.

Item 4. Principal Accountant Fees and Services

Not applicable for semiannual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semiannual reports.

Item 6.

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable for semiannual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to annual reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable to reports filed by closed-end funds.

Item 10. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 11. Controls and Procedures

(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no changes in the registrant’s internal control over financial reporting that

occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a) Code of Ethics — Not applicable for semiannual reports.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto as part of EX-99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Institutional Fund Trust

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
May 19, 2016

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
May 19, 2016

/s/ Francis Smith
Francis Smith
Principal Financial Officer
May 19, 2016

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