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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-03980
Morgan Stanley Institutional Fund Trust
(Exact name of registrant as specified in charter)
522 Fifth Avenue, New York, New York					10036
(Address of principal executive offices)					(Zip code)
John H. Gernon 522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)
Registrant’s telephone number, including area code:				212-296-0289
Date of fiscal year end:	September 30,
Date of reporting period:		March 31, 2017

Item 1 - Report to Shareholders

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Semi-Annual Report

March 31, 2017

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	14
Statement of Operations	16
Statements of Changes in Net Assets	17
Financial Highlights	18
Notes to Financial Statements	22
Privacy Notice	34
Trustee and Officer Information	37

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund 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 Fund'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 Fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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 "Fund") 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 2017

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Expense Example (unaudited)

Core Plus Fixed Income Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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, 2017 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund'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 Fund 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 10/1/16		Actual Ending Account Value 3/31/17		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	$	988.10	$	1,022.94	$	1.98	$	2.02		0.40	%
Core Plus Fixed Income Portfolio Class A		1,000.00		986.50		1,021.19		3.71		3.78		0.75
Core Plus Fixed Income Portfolio Class L		1,000.00		984.80		1,019.95		4.95		5.04		1.00
Core Plus Fixed Income Portfolio Class C		1,000.00		982.20		1,017.50		7.36		7.49		1.49

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.0%)
Agency Adjustable Rate Mortgage (0.1%)
Federal Home Loan Mortgage Corporation, Conventional Pool: 2.53%, 7/1/45	$	205	$	209
Agency Fixed Rate Mortgages (21.9%)
Federal Home Loan Mortgage Corporation, April TBA:
3.00%, 4/1/47 (a)		6,778		6,716
Gold Pools:
3.50%, 1/1/44 - 2/1/45		2,182		2,241
4.00%, 6/1/44 - 10/1/44		1,166		1,224
5.41%, 7/1/37 - 8/1/37		33		37
5.44%, 1/1/37 - 6/1/38		107		118
5.46%, 5/1/37 - 1/1/38		104		115
5.48%, 8/1/37 - 10/1/37		62		69
5.50%, 8/1/37 - 4/1/38		111		123
5.52%, 9/1/37 - 1/1/38		28		31
5.62%, 12/1/36 - 12/1/37		91		101
6.00%, 10/1/36 - 8/1/38		267		302
6.50%, 12/1/25 - 8/1/33		168		188
7.00%, 6/1/28 - 11/1/31		55		58
Federal National Mortgage Association, April TBA:
3.00%, 4/1/32 (a)		2,260		2,317
3.50%, 4/1/47 (a)		16,109		16,479
4.00%, 4/1/47 (a)		7,540		7,909
Conventional Pools:
3.00%, 5/1/30 - 4/1/45		1,620		1,627
3.50%, 8/1/45 - 3/1/47		2,293		2,351
4.00%, 11/1/41 - 8/1/46		6,498		6,845
4.50%, 3/1/41 - 11/1/44		2,270		2,461
5.00%, 3/1/41		329		362
5.50%, 6/1/35 - 1/1/37		95		107
5.62%, 12/1/36		34		37
6.50%, 4/1/24 - 1/1/34		1,350		1,512
7.00%, 11/1/17 - 12/1/33		253		267
9.50%, 4/1/30		184		213
Government National Mortgage Association, April TBA:
3.50%, 4/20/47 (a)		680		705
Various Pools:
3.50%, 11/20/40 - 7/20/46		3,470		3,602
4.00%, 8/20/41 - 3/20/43		814		864
5.48%, 9/20/37		9		10
6.50%, 5/15/40		877		1,038
				60,029
Asset-Backed Securities (7.3%)
American Homes 4 Rent,
6.07%, 10/17/45 (b)		601		652
AMSR Trust,
2.34%, 11/17/33 (b)(c)		1,000		1,010

	Face Amount (000)		Value (000)
Bayview Opportunity Master Fund IIIb Trust,
3.47%, 7/28/18 (b)	$	373	$	372
Blackbird Capital Aircraft Lease Securitization Ltd.,
5.68%, 12/16/41 (b)		742		751
ContiMortgage Home Equity Loan Trust,
8.10%, 8/15/25		25		18
CVS Pass-Through Trust,
6.04%, 12/10/28		678		764
GMAT Trust,
4.25%, 9/25/20 (b)		822		824
Green Tree Agency Advance Funding Trust I,
2.38%, 10/15/48 (b)		800		795
Invitation Homes Trust,
4.94%, 9/17/31 (b)(c)		1,000		1,003
5.69%, 8/17/32 (b)(c)		997		1,018
Labrador Aviation Finance Ltd.,
5.68%, 1/15/42 (b)		573		583
Nationstar HECM Loan Trust,
4.36%, 2/25/26 (b)		650		650
5.68%, 8/25/26 (b)		475		482
6.54%, 6/25/26 (b)		450		473
NRZ Excess Spread-Collateralized Notes,
5.68%, 7/25/21 (b)		794		794
OnDeck Asset Securitization Trust II LLC,
4.21%, 5/17/20 (b)		450		450
PennyMac 2015-NPL1 LLC,
4.00%, 3/25/55 (b)		895		902
PNMAC GMSR Issuer Trust,
5.73%, 2/25/50 (b)(c)		900		902
Pretium Mortgage Credit Partners LLC,
1.00%, 4/29/31 (b)		1,016		1,016
3.50%, 10/27/31 (b)		516		519
PRPM LLC,
4.00%, 9/27/21 (b)		468		467
RMAT LLC,
4.83%, 6/25/35 (b)		504		500
Silver Bay Realty Trust,
4.49%, 9/17/31 (b)(c)		700		701
Skopos Auto Receivables Trust,
3.10%, 12/15/23 (b)		62		62
3.55%, 2/15/20 (b)		212		213
Tricon American Homes Trust,
5.77%, 11/17/33 (b)		630		630
U-Haul S Fleet LLC,
4.90%, 10/25/23 (b)		630		634
VOLT LIV LLC,
3.63%, 2/25/47 (b)		586		585
VOLT NPL X LLC,
4.75%, 10/26/54 (b)		493		492
VOLT XIX LLC,
5.00%, 4/25/55 (b)		300		300
VOLT XXII LLC,
4.25%, 2/25/55 (b)		299		294

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)			Value (000)
Asset-Backed Securities (cont'd)
VOLT XXXI LLC,
4.50%, 2/25/55 (b)	$	399		$	398
VOLT XXXIII LLC,
4.25%, 3/25/55 (b)		694			685
					19,939
Collateralized Mortgage Obligations — Agency Collateral Series (1.9%)
Federal Home Loan Mortgage Corporation,
3.60%, 6/25/48 (b)(c)		483			426
3.95%, 10/25/48 (b)(c)		750			666
5.13%, 12/25/26 (b)(c)		300			303
5.83%, 7/25/23 (c)		437			441
6.03%, 7/25/26 (b)(c)		280			285
IO REMIC
5.09%, 11/15/43 (c)		1,554			238
5.14%, 4/15/39 (c)		1,404			138
IO STRIPS
7.50%, 12/15/29		38			11
PAC REMIC
9.50%, 4/15/20		—	@		—	@
Federal National Mortgage Association, IO
5.41%, 9/25/20 (c)		4,543			526
IO PAC REMIC
8.00%, 9/18/27		158			34
IO REMIC
6.00%, 7/25/33		102			23
IO STRIPS
6.50%, 9/25/29 - 12/25/29		607			111
8.00%, 4/25/24		146			25
8.50%, 10/25/25		54			12
9.00%, 11/25/26		49			10
REMIC
7.00%, 9/25/32		290			339
58.38%, 9/25/20 (d)		—	@		—	@
Government National Mortgage Association, IO
3.50%, 5/20/43		1,690			363
5.00%, 2/16/41		343			76
5.12%, 11/16/40 (c)		2,078			378
5.17%, 7/16/33 (c)		2,165			144
5.25%, 3/20/43 (c)		760			133
5.52%, 5/20/40 (c)		925			182
IO PAC
5.17%, 10/20/41 (c)		2,570			271
					5,135
Commercial Mortgage-Backed Securities (7.3%)
BBCMS Trust,
4.28%, 9/10/28 (b)(c)		1,037			992
Citigroup Commercial Mortgage Trust,
3.86%, 9/15/27 (b)(c)		800			759
IO
0.90%, 11/10/48 (c)		2,817			147
0.97%, 9/10/58 (c)		9,797			595

	Face Amount (000)		Value (000)
COMM Mortgage Trust,
5.04%, 8/10/46 (b)(c)	$	800	$	768
IO
0.21%, 7/10/45 (c)		15,052		104
0.98%, 10/10/47 (c)		4,611		195
1.25%, 7/15/47 (c)		4,150		229
Commercial Mortgage Pass-Through Certificates,
4.60%, 2/10/47 (b)(c)		575		522
Cosmopolitan Hotel Trust,
4.41%, 11/15/33 (b)(c)		400		408
CSMC Trust,
5.06%, 3/15/28 (b)(c)		200		201
5.37%, 11/15/33 (b)(c)		777		781
5.66%, 4/15/29 (b)(c)		1,000		1,003
EQTY Mortgage Trust,
4.30%, 5/8/31 (b)(c)		1,000		996
GS Mortgage Securities Trust,
4.76%, 8/10/46 (b)(c)		500		479
IO
0.86%, 9/10/47 (c)		5,847		263
1.28%, 10/10/49 (c)		8,164		720
1.37%, 10/10/48 (c)		5,397		453
HILT Mortgage Trust,
2.77%, 7/15/29 (b)(c)		600		576
JP Morgan Chase Commercial Mortgage Securities Trust,
4.57%, 7/15/47 (b)(c)		1,135		899
5.46%, 12/12/43		35		35
IO
0.61%, 4/15/46 (c)		6,956		206
0.82%, 12/15/49 (c)		4,608		231
1.13%, 7/15/47 (c)		10,493		475
JPMBB Commercial Mortgage Securities Trust,
3.96%, 9/15/47 (b)(c)		1,105		901
4.67%, 4/15/47 (b)(c)		775		689
IO
1.09%, 8/15/47 (c)		4,503		261
LB-UBS Commercial Mortgage Trust,
6.25%, 9/15/45 (c)		550		561
Wells Fargo Commercial Mortgage Trust,
3.94%, 8/15/50 (b)		945		783
4.50%, 9/15/58 (b)(c)		471		401
IO
1.05%, 12/15/49 (c)		6,874		423
1.66%, 11/15/49 (c)		6,956		739
WF-RBS Commercial Mortgage Trust,
3.50%, 8/15/47 (b)		1,400		1,059
3.80%, 11/15/47 (b)(c)		950		691
3.99%, 5/15/47 (b)		580		442
4.14%, 5/15/45 (b)(c)		425		387
4.98%, 9/15/46 (b)(c)		805		770
				20,144

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Corporate Bonds (34.1%)
Finance (14.4%)
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust,
3.75%, 5/15/19	$	380	$	390
Alexandria Real Estate Equities, Inc.,
3.95%, 1/15/27		175		175
Ally Financial, Inc.,
3.25%, 2/13/18		10		10
4.25%, 4/15/21		525		537
American Campus Communities Operating Partnership LP,
3.75%, 4/15/23		250		256
American International Group, Inc.,
4.88%, 6/1/22		375		406
AvalonBay Communities, Inc.,
Series G
2.95%, 5/11/26		375		360
Bank of America Corp., MTN
4.00%, 1/22/25		830		831
4.20%, 8/26/24		225		229
4.25%, 10/22/26		1,088		1,107
5.00%, 1/21/44		180		197
Bank of New York Mellon Corp. (The), MTN
3.65%, 2/4/24		525		545
BNP Paribas SA,
3.80%, 1/10/24 (b)		500		498
5.00%, 1/15/21		175		190
Boston Properties LP,
3.80%, 2/1/24		175		179
BPCE SA,
5.15%, 7/21/24 (b)		800		823
Brookfield Asset Management, Inc.,
5.80%, 4/25/17		235		236
Brookfield Finance LLC,
4.00%, 4/1/24		775		781
Capital One Bank USA NA,
3.38%, 2/15/23		1,075		1,074
Citigroup, Inc.,
3.89%, 1/10/28 (c)		625		629
6.68%, 9/13/43		120		153
8.13%, 7/15/39		350		515
Citizens Bank NA, MTN
2.55%, 5/13/21		250		249
Colony NorthStar, Inc.,
5.00%, 4/15/23		375		378
Cooperatieve Rabobank UA,
3.95%, 11/9/22		650		668
Credit Agricole SA,
3.88%, 4/15/24 (b)		500		517
Credit Suisse Group AG,
3.57%, 1/9/23 (b)		250		250

	Face Amount (000)		Value (000)
Credit Suisse Group Funding Guernsey Ltd.,
4.55%, 4/17/26	$	575	$	595
Discover Bank,
7.00%, 4/15/20		250		279
Discover Financial Services,
3.95%, 11/6/24		750		752
Extra Space Storage LP,
3.13%, 10/1/35 (b)		250		259
Federal Realty Investment Trust,
3.63%, 8/1/46		250		220
Five Corners Funding Trust,
4.42%, 11/15/23 (b)		500		532
GE Capital International Funding Co.,
4.42%, 11/15/35		415		439
Goldman Sachs Group, Inc. (The),
6.75%, 10/1/37		615		761
MTN
4.80%, 7/8/44		350		371
Goodman Funding Pty Ltd.,
6.38%, 4/15/21 (b)		425		478
Guardian Life Insurance Co. of America (The),
4.85%, 1/24/77 (b)		475		465
Hartford Financial Services Group, Inc. (The),
5.50%, 3/30/20		295		321
HBOS PLC, Series G
6.75%, 5/21/18 (b)		813		852
Healthcare Trust of America Holdings LP,
3.70%, 4/15/23		350		351
HSBC Finance Corp.,
6.68%, 1/15/21		820		928
HSBC Holdings PLC,
4.25%, 3/14/24		800		813
HSBC USA, Inc.,
3.50%, 6/23/24		225		229
Humana, Inc.,
3.95%, 3/15/27		350		359
ING Bank N.V.,
5.80%, 9/25/23 (b)		770		858
ING Groep N.V.,
6.00%, 4/16/20 (c)(e)		200		200
Intesa Sanpaolo SpA,
5.25%, 1/12/24		410		432
Jefferies Finance LLC/JFIN Co-Issuer Corp.,
7.38%, 4/1/20 (b)		380		386
JPMorgan Chase & Co.,
3.20%, 6/15/26		550		535
4.13%, 12/15/26		1,075		1,097
LeasePlan Corp. N.V.,
2.88%, 1/22/19 (b)		475		477
Liberty Mutual Group, Inc.,
4.85%, 8/1/44 (b)		150		153

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Macquarie Bank Ltd.,
6.63%, 4/7/21 (b)	$	490	$	553
MetLife, Inc.,
5.70%, 6/15/35		175		210
Mizuho Financial Group, Inc.,
2.63%, 4/12/21 (b)		600		596
Nationwide Building Society,
3.90%, 7/21/25 (b)		400		416
6.25%, 2/25/20 (b)		645		714
New York Life Global Funding,
1.70%, 9/14/21 (b)		600		583
PNC Financial Services Group, Inc. (The),
3.90%, 4/29/24		360		374
Realty Income Corp.,
3.25%, 10/15/22		400		404
Royal Bank of Scotland Group PLC,
3.88%, 9/12/23		875		864
Santander Issuances SAU,
5.18%, 11/19/25		200		208
Santander UK Group Holdings PLC,
3.57%, 1/10/23		1,125		1,126
Shutterfly, Inc.,
0.25%, 5/15/18 (f)		400		401
Skandinaviska Enskilda Banken AB,
2.63%, 11/17/20 (b)		500		504
Spirit Realty Capital, Inc.,
3.75%, 5/15/21		375		385
Standard Chartered PLC,
3.05%, 1/15/21 (b)		325		326
Swedbank AB,
2.38%, 2/27/19 (b)		525		529
TD Ameritrade Holding Corp.,
3.63%, 4/1/25		500		513
Toronto-Dominion Bank (The),
3.63%, 9/15/31 (c)		725		711
Travelers Cos., Inc. (The),
3.75%, 5/15/46		275		261
UBS Group Funding Co.,
2.95%, 9/24/20 (b)		525		529
UnitedHealth Group, Inc.,
2.88%, 3/15/23		1,025		1,029
3.75%, 7/15/25		475		497
WEA Finance LLC/Westfield UK & Europe Finance PLC,
3.25%, 10/5/20 (b)		450		459
Wells Fargo & Co.,
3.00%, 10/23/26		1,950		1,869
				39,386
Industrials (18.8%)
21st Century Fox America, Inc.,
4.75%, 9/15/44		375		380

	Face Amount (000)		Value (000)
Abbott Laboratories,
3.75%, 11/30/26	$	850	$	851
Air Liquide Finance SA,
1.75%, 9/27/21 (b)		450		435
Akamai Technologies, Inc.,
0.00%, 2/15/19		375		372
Albea Beauty Holdings SA,
8.38%, 11/1/19 (b)		250		262
Amazon.com, Inc.,
3.80%, 12/5/24		600		636
Anadarko Petroleum Corp.,
5.55%, 3/15/26 (f)		600		667
6.45%, 9/15/36		250		296
Anheuser-Busch InBev Finance, Inc.,
3.70%, 2/1/24 (f)		575		595
4.90%, 2/1/46		575		624
Apple, Inc.,
2.45%, 8/4/26		400		379
4.45%, 5/6/44		475		492
AT&T, Inc.,
4.25%, 3/1/27		350		355
4.50%, 3/9/48		1,025		915
Baidu, Inc.,
2.75%, 6/9/19		650		658
Barrick Gold Corp.,
4.10%, 5/1/23 (f)		255		274
BHP Billiton Finance USA Ltd.,
5.00%, 9/30/43		250		281
Boston Scientific Corp.,
3.85%, 5/15/25		625		636
BP Capital Markets PLC,
3.12%, 5/4/26		500		490
3.25%, 5/6/22		625		639
CBS Corp.,
4.60%, 1/15/45		175		171
Charter Communications Operating LLC/Charter Communications Operating Capital,
4.91%, 7/23/25		425		450
6.48%, 10/23/45		450		520
Citrix Systems, Inc.,
0.50%, 4/15/19		200		251
CNH Industrial Capital LLC,
4.38%, 11/6/20		625		648
CNOOC Finance 2013 Ltd.,
3.00%, 5/9/23		540		528
Coca-Cola Co.,
3.20%, 11/1/23		375		387
Comcast Corp.,
4.60%, 8/15/45		380		394
Daimler Finance North America LLC,
2.25%, 7/31/19 (b)		700		704
DCP Midstream Operating LP,
5.35%, 3/15/20 (b)		169		176

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Delta Air Lines, Inc.,
2.88%, 3/13/20	$	475	$	479
Deutsche Telekom International Finance BV,
3.60%, 1/19/27 (b)		425		424
DISH DBS Corp.,
5.88%, 11/15/24		525		553
Dollar General Corp.,
1.88%, 4/15/18		550		551
3.25%, 4/15/23		400		400
Eldorado Gold Corp.,
6.13%, 12/15/20 (b)(f)	��	380		391
Enable Midstream Partners LP,
3.90%, 5/15/24		425		415
Experian Finance PLC,
2.38%, 6/15/17 (b)		635		636
Express Scripts Holding Co.,
4.50%, 2/25/26		500		514
Exxon Mobil Corp.,
4.11%, 3/1/46		475		490
Ford Motor Credit Co., LLC,
3.20%, 1/15/21		400		405
General Motors Co.,
6.60%, 4/1/36		200		231
GlaxoSmithKline Capital, Inc.,
6.38%, 5/15/38		175		230
Goldcorp, Inc.,
3.70%, 3/15/23		293		299
HCA, Inc.,
4.75%, 5/1/23		645		674
Heathrow Funding Ltd.,
4.88%, 7/15/21 (b)		525		563
Home Depot, Inc.,
5.88%, 12/16/36		400		507
Illumina, Inc.,
0.00%, 6/15/19		328		332
International Paper Co.,
3.00%, 2/15/27		675		632
J Sainsbury PLC, Series SBRY
1.25%, 11/21/19	GBP	300		393
Johnson Controls International PLC,
3.90%, 2/14/26	$	500		520
Kinder Morgan Energy Partners LP,
3.95%, 9/1/22		1,175		1,202
Kraft Heinz Foods Co.,
4.38%, 6/1/46		425		400
Live Nation Entertainment, Inc.,
2.50%, 5/15/19		375		408
Lockheed Martin Corp.,
3.10%, 1/15/23		725		736

	Face Amount (000)		Value (000)
LVMH Moet Hennessy Louis Vuitton SE, Series MCFP
0.00%, 2/16/21	$	150	$	406
LyondellBasell Industries N.V.,
4.63%, 2/26/55		450		424
MasTec, Inc.,
4.88%, 3/15/23		540		536
McDonald's Corp., MTN
4.60%, 5/26/45		325		332
Medtronic, Inc.,
4.63%, 3/15/45		325		350
Microsoft Corp.,
2.88%, 2/6/24		400		403
4.45%, 11/3/45		525		555
MPLX LP,
4.88%, 6/1/25		250		262
5.20%, 3/1/47		350		353
Mylan N.V.,
3.95%, 6/15/26		425		417
NBC Universal Media LLC,
5.95%, 4/1/41		325		397
NetApp, Inc.,
2.00%, 12/15/17		200		200
Netflix, Inc.,
4.38%, 11/15/26 (b)		325		320
Noble Energy, Inc.,
3.90%, 11/15/24		225		228
5.05%, 11/15/44		200		205
NOVA Chemicals Corp.,
5.25%, 8/1/23 (b)		463		475
Novartis Capital Corp.,
4.40%, 5/6/44		375		399
Nuance Communications, Inc.,
2.75%, 11/1/31 (f)		286		288
Omnicom Group, Inc.,
3.65%, 11/1/24		230		233
ON Semiconductor Corp.,
1.00%, 12/1/20		400		439
Ooredoo International Finance Ltd.,
3.25%, 2/21/23 (b)		450		446
Oracle Corp.,
2.95%, 5/15/25		381		376
PepsiCo, Inc.,
3.60%, 3/1/24		625		657
Philip Morris International, Inc.,
2.50%, 8/22/22		270		267
Phillips 66 Partners LP,
4.68%, 2/15/45		150		139
Priceline Group, Inc. (The),
0.90%, 9/15/21		275		310
Shell International Finance BV,
3.25%, 5/11/25		400		404

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Siemens Financieringsmaatschappij N.V.,
2.35%, 10/15/26 (b)	$	800	$	744
SK Telecom Co., Ltd.,
2.13%, 5/1/18 (b)		200		200
Southern Copper Corp.,
5.25%, 11/8/42		600		591
Spectra Energy Capital LLC,
3.30%, 3/15/23		475		470
Sprint Corp.,
7.13%, 6/15/24		500		535
Sprint Spectrum Co., LLC/Sprint Spectrum Co., II LLC/ Sprint Spectrum Co., III LLC,
3.36%, 3/20/23 (b)		1,437		1,437
Telefonica Emisiones SAU,
4.10%, 3/8/27		850		858
Teva Pharmaceutical Finance Netherlands III BV,
3.15%, 10/1/26 (f)		800		739
Thermo Fisher Scientific, Inc.,
2.95%, 9/19/26		550		525
Time Warner, Inc.,
3.80%, 2/15/27		950		942
Total Capital International SA,
2.88%, 2/17/22		500		505
Transurban Finance Co., Pty Ltd.,
3.38%, 3/22/27 (b)		550		533
Tyson Foods, Inc.,
4.88%, 8/15/34		375		385
United Airlines Pass-Through Trust, Series A
4.00%, 4/11/26		618		641
United Technologies Corp.,
4.50%, 6/1/42		165		175
Verizon Communications, Inc.,
4.67%, 3/15/55		1,025		919
Viavi Solutions, Inc.,
0.63%, 8/15/33		375		419
Visa, Inc.,
3.15%, 12/14/25		775		779
Volkswagen Group of America Finance LLC,
2.40%, 5/22/20 (b)		800		797
Wal-Mart Stores, Inc.,
5.25%, 9/1/35		615		728
Whole Foods Market, Inc.,
5.20%, 12/3/25		375		399
Williams Partners LP/ACMP Finance Corp.,
4.88%, 5/15/23		175		181
Woodside Finance Ltd.,
3.70%, 9/15/26 (b)(f)		675		661
Yahoo!, Inc.,
0.00%, 12/1/18		300		312
ZF North America Capital, Inc.,
4.50%, 4/29/22 (b)		250		261
				51,408

	Face Amount (000)		Value (000)
Utilities (0.9%)
Duke Energy Corp.,
2.65%, 9/1/26	$	760	$	710
Entergy Louisiana LLC,
3.05%, 6/1/31		525		498
Southern Power Co., Series D
1.95%, 12/15/19		550		546
Trans-Allegheny Interstate Line Co.,
3.85%, 6/1/25 (b)		775		795
				2,549
				93,343
Mortgages — Other (7.3%)
Adjustable Rate Mortgage Trust,
3.55%, 6/25/35 (c)		594		573
Alternative Loan Trust,
1.16%, 5/25/47 (c)		179		153
Banc of America Alternative Loan Trust,
1.63%, 7/25/46 (c)		284		202
5.50%, 10/25/35		1,193		1,165
5.86%, 10/25/36		690		414
6.00%, 4/25/36		141		143
Banc of America Funding Trust,
5.25%, 7/25/37		399		400
ChaseFlex Trust,
6.00%, 2/25/37		1,047		781
Eurosail PLC,
1.29%, 6/13/45 (c)	GBP	600		701
Fannie Mae Connecticut Avenue Securities,
4.98%, 5/25/25 (c)	$	628		662
5.88%, 11/25/24 (c)		698		784
5.98%, 7/25/25 (c)		500		550
Farringdon Mortgages No. 2 PLC,
1.86%, 7/15/47 (c)	GBP	286		339
First Horizon Alternative Mortgage Securities Trust,
6.25%, 8/25/36	$	514		412
Freddie Mac Structured Agency Credit Risk Debt Notes,
4.28%, 10/25/27 (c)		400		429
4.73%, 9/25/24 (c)		602		641
4.98%, 8/25/24 (c)		312		334
5.23%, 11/25/23 (c)		700		760
Freddie Mac Whole Loan Securities Trust,
3.00%, 7/25/46 - 10/25/46		1,231		1,210
3.50%, 5/25/45 - 12/25/46		3,201		3,224
3.88%, 5/25/45 (b)(c)		232		232
4.00%, 5/25/45		115		118
Grifonas Finance PLC,
0.04%, 8/28/39 (c)	EUR	519		435
HarborView Mortgage Loan Trust,
1.17%, 1/19/38 (c)	$	489		427
IM Pastor 3 FTH,
0.00%, 3/22/43 (c)	EUR	523		452

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (cont'd)
Impac CMB Trust,
1.72%, 4/25/35 (c)	$	253	$	199
JP Morgan Mortgage Trust,
3.24%, 6/25/37 (c)		239		222
6.00%, 6/25/37		161		158
Lehman Mortgage Trust,
5.50%, 11/25/35 - 2/25/36		986		919
6.50%, 9/25/37		1,187		880
Paragon Mortgages No. 13 PLC,
0.76%, 1/15/39 (c)	GBP	300		330
Paragon Mortgages No. 15 PLC,
0.21%, 12/15/39 (c)	EUR	800		708
RALI Trust,
5.50%, 12/25/34	$	797		785
6.00%, 11/25/36		293		240
				19,982
Municipal Bonds (0.8%)
City of Chicago, IL, O'Hare International Airport Revenue
6.40%, 1/1/40		255		336
City of New York, NY, Series G-1
5.97%, 3/1/36		270		340
Illinois State Toll Highway Authority, Highway Revenue, Build America Bonds
6.18%, 1/1/34		477		603
Municipal Electric Authority of Georgia,
6.64%, 4/1/57		283		323
6.66%, 4/1/57		320		361
New York City, NY, Transitional Finance Authority Future Tax Secured Revenue
5.27%, 5/1/27		320		368
				2,331
Sovereign (9.1%)
Argentine Republic Government International Bond,
7.50%, 4/22/26 (b)		1,181		1,258
Australia Government Bond,
2.75%, 11/21/27	AUD	1,316		1,005
3.25%, 4/21/25		2,410		1,931
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/21	BRL	8,500		2,736
Canadian Government Bond,
0.50%, 3/1/22	CAD	3,700		2,699
Cyprus Government International Bond,
3.88%, 5/6/22	EUR	1,525		1,729
Hungary Government International Bond,
5.75%, 11/22/23	$	2,046		2,316
Indonesia Treasury Bond,
8.25%, 7/15/21	IDR	29,773,000		2,352

	Face Amount (000)		Value (000)
Mexican Bonos,
6.50%, 6/10/21	MXN	46,600	$	2,460
Mexico Government International Bond,
3.60%, 1/30/25	$	704		704
Petroleos de Venezuela SA,
6.00%, 11/15/26		550		194
Petroleos Mexicanos,
6.38%, 1/23/45		329		323
6.88%, 8/4/26		150		167
Portugal Obrigacoes do Tesouro OT,
5.65%, 2/15/24 (b)	EUR	1,951		2,399
Russian Federal Bond — OFZ,
7.00%, 8/16/23	RUB	97,620		1,663
South Africa Government Bond,
8.00%, 1/31/30	ZAR	15,064		1,020
				24,956
U.S. Agency Security (0.7%)
Federal Home Loan Bank,
0.88%, 10/1/18	$	2,070		2,058
U.S. Treasury Securities (7.5%)
U.S. Treasury Notes,
1.13%, 2/28/21		12,200		11,904
1.50%, 5/31/19 - 8/15/26		8,825		8,542
				20,446
Total Fixed Income Securities (Cost $269,202)				268,572
	Shares
Short-Term Investments (15.6%)
Securities held as Collateral on Loaned Securities (0.9%)
Investment Company (0.9%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $2,358)		2,357,915		2,358
Investment Company (10.2%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $27,881)		27,881,180		27,881
	Face Amount (000)
U.S. Treasury Securities (3.8%)
U.S. Treasury Bills,
0.64%, 7/27/17 (g)(h)	$	680		678
0.81%, 7/27/17 (g)(h)		7		7
U.S. Treasury Note
0.88%, 4/30/17 (f)		9,700		9,703
Total U.S. Treasury Securities (Cost $10,388)				10,388

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Certificates of Deposit (0.7%)
International Bank (0.7%)
Bank of Montreal,
1.23%, 5/3/17 (i) (Cost $2,010)	$	2,010	$	2,010
Total Short-Term Investments (Cost $42,637)				42,637
Total Investments (113.6%) (Cost $311,839) Including $5,643 of Securities Loaned (j)(k)				311,209
Liabilities in Excess of Other Assets (–13.6%)				(37,358	)
Net Assets (100.0%)			$	273,851

(a)  Security is subject to delayed delivery.

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

(c)  Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on March 31, 2017.

(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, 2017.

(e)  Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of March 31, 2017.

(f)  All or a portion of this security was on loan at March 31, 2017.

(g)  Rate shown is the yield to maturity at March 31, 2017.

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

(i)  The rates shown are the effective yields at the date of purchase.

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

(k)  At March 31, 2017, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $4,654,000 and the aggregate gross unrealized depreciation is approximately $5,284,000 resulting in net unrealized depreciation of approximately $630,000.

@  Value is less than $500.

IO  Interest Only.

MTN  Medium Term Note.

OFZ  Obilgatsyi Federal'novo Zaima (Russian Federal Loan Obligation)

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 Fund had the following foreign currency forward exchange contracts open at March 31, 2017:

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Delivery Date	Unrealized Appreciation (Depreciation) (000)
Australia and New Zealand Banking Group	AUD	3,430		$	2,641		4/5/17	$	21
Australia and New Zealand Banking Group	CAD	3,571		$	2,716		4/5/17		30
Australia and New Zealand Banking Group	EUR	4,896		$	5,185		4/5/17		(39	)
Australia and New Zealand Banking Group	NZD	2,650		EUR	1,807		4/5/17		70
Australia and New Zealand Banking Group	$	1,920		NZD	2,657		4/5/17		(58	)
Barclays Bank PLC	AUD	1,310		$	1,008		4/5/17		8
Barclays Bank PLC	$	705		JPY	78,151		4/5/17		(3	)
Barclays Bank PLC	$	51		ZAR	667		4/5/17		(2	)
Goldman Sachs International	$	1,405		EUR	1,326		4/5/17		9
Goldman Sachs International	$	976		ZAR	12,475		4/5/17		(46	)
HSBC Bank PLC	GBP	2,470		$	3,081		4/5/17		(13	)
HSBC Bank PLC	JPY	153,033		$	1,360		4/5/17		(14	)
HSBC Bank PLC	MXN	31,895		$	1,607		4/5/17		(96	)
HSBC Bank PLC	NOK	27		$	3		4/5/17		—	@
HSBC Bank PLC	PLN	4,936		$	1,214		4/5/17		(31	)
HSBC Bank PLC	TRY	60		$	17		4/5/17		—	@
HSBC Bank PLC	$	6		CAD	7		4/5/17		(—	@)
HSBC Bank PLC	$	18		EUR	16		4/5/17		(—	@)
HSBC Bank PLC	$	1,141		PLN	4,636		4/5/17		28
HSBC Bank PLC	$	83		RON	354		4/5/17		(—	@)
HSBC Bank PLC	ZAR	14,312		$	1,135		4/5/17		68
JPMorgan Chase Bank NA	INR	64,105		$	990		4/5/17		3
JPMorgan Chase Bank NA	INR	64,105		$	989		4/5/17		2
JPMorgan Chase Bank NA	RUB	19,819		$	353		4/5/17		1
JPMorgan Chase Bank NA	$	—	@	EUR	—	@	4/5/17		(—	@)
JPMorgan Chase Bank NA	$	2		GBP	2		4/5/17		—	@
JPMorgan Chase Bank NA	$	985		IDR	13,095,908		4/5/17		(2	)
JPMorgan Chase Bank NA	$	1,397		IDR	18,576,092		4/5/17		(3	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income 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	$	979		INR	64,105	4/5/17	$	8
JPMorgan Chase Bank NA	$	989		INR	64,105	4/5/17		(2	)
JPMorgan Chase Bank NA	$	237		MXN	4,628	4/5/17		10
UBS AG	EUR	1,359		SEK	12,925	4/5/17		(7	)
UBS AG	EUR	20		$	21	4/5/17		(—	@)
UBS AG	EUR	2,193		$	2,307	4/5/17		(33	)
UBS AG	IDR	31,672,000		$	2,373	4/5/17		(3	)
UBS AG	$	—	@	HUF	5	4/5/17		—	@
UBS AG	$	342		RUB	19,819	4/5/17		10
UBS AG	$	554		SEK	4,971	4/5/17		1
HSBC Bank PLC	RUB	56,287		$	955	5/5/17		(38	)
JPMorgan Chase Bank NA	BRL	5,882		$	1,886	5/5/17		20
JPMorgan Chase Bank NA	IDR	18,576,092		$	1,393	5/5/17		4
JPMorgan Chase Bank NA	RUB	56,287		$	963	5/5/17		(30	)
JPMorgan Chase Bank NA	$	987		INR	64,105	5/5/17		(4	)
JPMorgan Chase Bank NA	$	351		RUB	19,819	5/5/17		(1	)
UBS AG	$	687		GBP	548	5/8/17		1
							$	(131	)

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2017:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		113	$	24,459		Jun-17	$	(2	)
U.S. Treasury 30 yr. Bond		11		1,660		Jun-17		(—	@)
U.S. Treasury 5 yr. Note		299		35,200		Jun-17		39
U.S. Treasury Ultra Bond		109		17,508		Jun-17		81
Short:
U.S. Treasury 10 yr. Note		65		(8,097	)	Jun-17		(26	)
U.S. Treasury 10 yr. Ultra Long Bond		54		(7,230	)	Jun-17		(31	)
German Euro Bund		9		(1,550	)	Jun-17		(7	)
							$	54

Credit Default Swap Agreements:

The Fund had the following credit default swap agreements open at March 31, 2017:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Depreciation (000)			Value (000)			Credit Rating of Reference Obligation†
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	995		1.00	%	3/20/19	$	19		$	(37	)	$	(18	)	BBB+
Deutsche Bank AG CMBX.NA.BB.60	Sell		230		5.00		5/11/63		1			(48	)		(47	)	NR
Goldman Sachs International CMBX.NA.BB.60	Sell		286		5.00		5/11/63		(41	)		(17	)		(58	)	NR
		$	1,511					$	(21	)	$	(102	)	$	(123	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 31, 2017:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.84	%	12/7/21	$	6,949	$	26
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.07		12/21/21		6,888		(48	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.26		12/7/26		3,656		22
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.48		12/21/26		3,683		(51	)
									$	(51	)

@    Value is less than $500.

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

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

LIBOR    London Interbank Offered Rate.

NR    Not rated.

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CAD  —  Canadian Dollar

EUR  —  Euro

GBP  —  British Pound

HUF  —  Hungarian Forint

IDR  —  Indonesian Rupiah

INR  —  Indian Rupee

JPY  —  Japanese Yen

MXN  —  Mexican Peso

NOK  —  Norwegian Krone

NZD  —  New Zealand Dollar

PLN  —  Polish Zloty

RON  —  Romanian New Leu

RUB  —  Russian Ruble

SEK  —  Swedish Krona

TRY  —  Turkish Lira

ZAR  —  South African Rand

Portfolio Composition**

Classification	Percentage of Total Investments
Agency Fixed Rate Mortgages		19.4	%
Industrials		16.6
Short-Term Investments		13.0
Finance		12.8
Sovereign		8.1
U.S. Treasury Securities		6.6
Commercial Mortgage-Backed Securities		6.5
Mortgages — Other		6.5
Asset-Backed Securities		6.5
Other***		4.0
Total Investments		100.0	%****

**  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2017.

***  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 $95,704,000 with net unrealized appreciation of approximately $54,000. Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $131,000 and does not include open swap agreements with net unrealized depreciation of approximately $153,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities	March 31, 2017 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $281,600)	$	280,970
Investment in Security of Affiliated Issuer, at Value (Cost $30,239)		30,239
Total Investments in Securities, at Value (Cost $311,839)		311,209
Receivable for Investments Sold		6,432
Interest and Paydown Receivable		1,799
Receivable for Variation Margin on Futures Contracts		907
Receivable for Fund Shares Sold		328
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		294
Premium Paid on Open Swap Agreements		20
Receivable from Affiliate		16
Tax Reclaim Receivable		4
Other Assets		109
Total Assets		321,118
Liabilities:
Payable for Investments Purchased		43,784
Collateral on Securities Loaned, at Value		2,358
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		425
Payable for Fund Shares Redeemed		159
Payable for Trustees' Fees and Expenses		141
Unrealized Depreciation on Swap Agreements		102
Payable for Advisory Fees		76
Premium Received on Open Swap Agreements		41
Payable for Professional Fees		39
Payable for Variation Margin on Swap Agreements		27
Payable for Custodian Fees		24
Payable for Administration Fees		19
Payable for Shareholder Services Fees — Class A		9
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		4
Payable for Sub Transfer Agency Fees — Class I		7
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		1
Deferred Capital Gain Country Tax		2
Other Liabilities		45
Total Liabilities		47,267
Net Assets	$	273,851
Net Assets Consist of:
Paid-in-Capital	$	721,443
Accumulated Undistributed Net Investment Income		2,616
Accumulated Net Realized Loss		(449,352	)
Unrealized Appreciation (Depreciation) on:
Investments (Net of $2 of Deferred Capital Gain Country Tax)		(632	)
Futures Contracts		54
Swap Agreements		(153	)
Foreign Currency Forward Exchange Contracts		(131	)
Foreign Currency Translations		6
Net Assets	$	273,851

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2017 (000)
CLASS I:
Net Assets	$	226,881
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		20,793,857
Net Asset Value, Offering and Redemption Price Per Share	$	10.91
CLASS A:
Net Assets	$	41,180
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		3,770,305
Net Asset Value, Redemption Price Per Share	$	10.92
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.48
Maximum Offering Price Per Share	$	11.40
CLASS L:
Net Assets	$	1,104
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		101,131
Net Asset Value, Offering and Redemption Price Per Share	$	10.91
CLASS C:
Net Assets	$	4,686
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		431,791
Net Asset Value, Offering and Redemption Price Per Share	$	10.85
(1) Including: Securities on Loan, at Value:	$	5,643

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Core Plus Fixed Income Portfolio

Statement of Operations	Six Months Ended March 31, 2017 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $8 of Foreign Taxes Withheld)	$	4,333
Dividends from Security of Affiliated Issuer (Note G)		70
Income from Securities Loaned — Net		17
Total Investment Income		4,420
Expenses:
Advisory Fees (Note B)		511
Sub Transfer Agency Fees — Class I		100
Sub Transfer Agency Fees — Class A		19
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		1
Administration Fees (Note C)		109
Shareholder Services Fees — Class A (Note D)		51
Distribution and Shareholder Services Fees — Class L (Note D)		2
Distribution and Shareholder Services Fees — Class C (Note D)		20
Professional Fees		60
Custodian Fees (Note F)		28
Pricing Fees		25
Registration Fees		25
Shareholder Reporting Fees		17
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		4
Other Expenses		14
Total Expenses		993
Waiver of Advisory Fees (Note B)		(219	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(103	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(27	)
Net Expenses		643
Net Investment Income		3,777
Realized Gain (Loss):
Investments Sold		(2,814	)
Foreign Currency Forward Exchange Contracts		560
Foreign Currency Transactions		(100	)
Futures Contracts		(695	)
Swap Agreements		15
Net Realized Loss		(3,034	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $2)		(4,276	)
Foreign Currency Forward Exchange Contracts		(226	)
Foreign Currency Translations		12
Futures Contracts		257
Swap Agreements		(20	)
Net Change in Unrealized Appreciation (Depreciation)		(4,253	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(7,287	)
Net Decrease in Net Assets Resulting from Operations	$	(3,510	)

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Core Plus Fixed Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	3,777		$	6,334
Net Realized Gain (Loss)		(3,034	)		14,178
Net Change in Unrealized Appreciation (Depreciation)		(4,253	)		5,082
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,510	)		25,594
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(3,309	)		(7,381	)
Class A:
Net Investment Income		(446	)		(245	)
Class L:
Net Investment Income		(11	)		(12	)
Class C:
Net Investment Income		(41	)		(25	)
Total Distributions		(3,807	)		(7,663	)
Capital Share Transactions:(1)
Class I:
Subscribed		89,239			49,744
Distributions Reinvested		3,267			7,372
Redeemed		(53,393	)		(76,546	)
Class A:
Subscribed		39,383			26,992
Distributions Reinvested		446			245
Redeemed		(21,734	)		(8,071	)
Class L:
Exchanged		275			517
Distributions Reinvested		11			11
Redeemed		(1	)		(70	)
Class C:
Subscribed		1,686			3,299
Distributions Reinvested		40			24
Redeemed		(467	)		(24	)
Net Increase in Net Assets Resulting from Capital Share Transactions		58,752			3,493
Total Increase in Net Assets		51,435			21,424
Net Assets:
Beginning of Period		222,416			200,992
End of Period (Including Accumulated Undistributed Net Investment Income of $2,616 and $2,646)	$	273,851		$	222,416
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		8,123			4,712
Shares Issued on Distributions Reinvested		301			721
Shares Redeemed		(4,920	)		(7,510	)
Net Increase (Decrease) in Class I Shares Outstanding		3,504			(2,077	)
Class A:
Shares Subscribed		3,580			2,520
Shares Issued on Distributions Reinvested		41			23
Shares Redeemed		(1,994	)		(749	)
Net Increase in Class A Shares Outstanding		1,627			1,794
Class L:
Shares Exchanged		25			48
Shares Issued on Distributions Reinvested		1			1
Shares Redeemed		(—	@@)		(7	)
Net Increase in Class L Shares Outstanding		26			42
Class C:
Shares Subscribed		155			311
Shares Issued on Distributions Reinvested		4			2
Shares Redeemed		(43	)		(2	)
Net Increase in Class C Shares Outstanding		116			311

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Core Plus Fixed Income Portfolio

	Class I
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			2012
Net Asset Value, Beginning of Period	$	11.22		$	10.18		$	10.36		$	9.91		$	10.48		$	9.92
Income (Loss) from Investment Operations:
Net Investment Income (2)		0.15			0.34			0.33			0.31			0.32			0.39
Net Realized and Unrealized Gain (Loss)		(0.28	)		1.11			(0.20	)		0.45			(0.36	)		0.63
Total from Investment Operations		(0.13	)		1.45			0.13			0.76			(0.04	)		1.02
Distributions from and/or in Excess of:
Net Investment Income		(0.18	)		(0.41	)		(0.31	)		(0.31	)		(0.53	)		(0.46	)
Net Asset Value, End of Period	$	10.91		$	11.22		$	10.18		$	10.36		$	9.91		$	10.48
Total Return (3)		(1.19	)%(9)		14.80	%(4)		1.15	%		7.82	%		(0.42	)%		10.62	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	226,881		$	193,976		$	197,057		$	192,868		$	187,014		$	227,331
Ratio of Expenses to Average Net Assets (11)		0.40	%(5)(10)		0.43	%(5)(6)		0.51	%(5)(7)		0.61	%(5)		0.71	%(5)(8)		0.62	%(5)
Ratio of Net Investment Income to Average Net Assets (11)		2.84	%(5)(10)		3.31	%(5)(6)		3.24	%(5)(7)		3.02	%(5)		3.14	%(5)(8)		3.88	%(5)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(10)		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		197	%(9)		262	%		348	%		296	%		226	%		189	%
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.67	%(10)		0.74	%		0.73	%		0.81	%		0.73	%		N/A
Net Investment Income to Average Net Assets		2.57	%(10)		3.00	%		3.02	%		2.82	%		3.12	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  Performance was positively impacted by approximately 7.72% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 7.08%.

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  Effective January 4, 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 4, 2016, the maximum ratio was 0.52% for Class I shares.

(7)  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.

(8)  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.

(9)  Not Annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Core Plus Fixed Income Portfolio

	Class A
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			2012
Net Asset Value, Beginning of Period	$	11.23		$	10.19		$	10.37		$	9.93		$	10.50		$	9.94
Income (Loss) from Investment Operations:
Net Investment Income (2)		0.14			0.30			0.30			0.27			0.29			0.37
Net Realized and Unrealized Gain (Loss)		(0.29	)		1.12			(0.21	)		0.45			(0.36	)		0.62
Total from Investment Operations		(0.15	)		1.42			0.09			0.72			(0.07	)		0.99
Distributions from and/or in Excess of:
Net Investment Income		(0.16	)		(0.38	)		(0.27	)		(0.28	)		(0.50	)		(0.43	)
Net Asset Value, End of Period	$	10.92		$	11.23		$	10.19		$	10.37		$	9.93		$	10.50
Total Return (3)		(1.35	)%(9)		14.31	%(4)		0.90	%		7.35	%		(0.68	)%		10.31	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	41,180		$	24,071		$	3,553		$	2,941		$	3,152		$	3,673
Ratio of Expenses to Average Net Assets (11)		0.75	%(5)(10)		0.76	%(5)(6)		0.86	%(5)(7)		0.96	%(5)		0.96	%(5)(8)		0.87	%(5)
Ratio of Net Investment Income to Average Net Assets (11)		2.50	%(5)(10)		2.82	%(5)(6)		2.87	%(5)(7)		2.67	%(5)		2.89	%(5)(8)		3.63	%(5)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(10)		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		197	%(9)		262	%		348	%		296	%		226	%		189	%
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.93	%(10)		1.15	%		1.07	%		1.11	%		0.98	%		N/A
Net Investment Income to Average Net Assets		2.32	%(10)		2.43	%		2.66	%		2.52	%		2.87	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

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

(4)  Performance was positively impacted by approximately 7.76% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 6.55%.

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  Effective January 4, 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 4, 2016, the maximum ratio was 0.87% for Class A shares.

(7)  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.

(8)  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.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Core Plus Fixed Income Portfolio

	Class L
	Six Months Ended March 31, 2017			Year Ended September 30,												Period from April 27, 2012(2) to
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	11.23		$	10.18		$	10.37		$	9.92		$	10.49		$	10.14
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.12			0.28			0.27			0.25			0.27			0.11
Net Realized and Unrealized Gain (Loss)		(0.29	)		1.12			(0.21	)		0.45			(0.36	)		0.35
Total from Investment Operations		(0.17	)		1.40			0.06			0.70			(0.09	)		0.46
Distributions from and/or in Excess of:
Net Investment Income		(0.15	)		(0.35	)		(0.25	)		(0.25	)		(0.48	)		(0.11	)
Net Asset Value, End of Period	$	10.91		$	11.23		$	10.18		$	10.37		$	9.92		$	10.49
Total Return (4)		(1.52	)%(10)		14.10	%(5)		0.59	%		7.19	%		(0.95	)%		4.59	%(10)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,104		$	841		$	333		$	108		$	88		$	130
Ratio of Expenses to Average Net Assets (12)		1.00	%(6)(11)		1.03	%(6)(7)		1.11	%(6)(8)		1.21	%(6)		1.21	%(6)(9)		1.16	%(6)(11)
Ratio of Net Investment Income to Average Net Assets (12)		2.26	%(6)(11)		2.65	%(6)(7)		2.65	%(6)(8)		2.42	%(6)		2.64	%(6)(9)		2.60	%(6)(11)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(11)		0.01	%		0.02	%		0.01	%		0.01	%		0.01	%(11)
Portfolio Turnover Rate		197	%(10)		262	%		348	%		296	%		226	%		189	%(10)
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.31	%(11)		1.82	%		1.76	%		3.10	%		1.27	%		N/A
Net Investment Income to Average Net Assets		1.95	%(11)		1.86	%		2.00	%		0.53	%		2.58	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Performance was positively impacted by approximately 7.76% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 6.34%.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  Effective January 4, 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 4, 2016, the maximum ratio was 1.12% for Class L shares.

(8)  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.

(9)  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.

(10)  Not annualized.

(11)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Core Plus Fixed Income Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)			Period from April 30, 2015(2) to September 30, 2015
Net Asset Value, Beginning of Period	$	11.17		$	10.16		$	10.44
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.10			0.22			0.10
Net Realized and Unrealized Gain		(0.30	)		1.12			(0.31	)
Total from Investment Operations		(0.20	)		1.34			(0.21	)
Distributions from and/or in Excess of:
Net Investment Income		(0.12	)		(0.33	)		(0.07	)
Net Asset Value, End of Period	$	10.85		$	11.17		$	10.16
Total Return (4)		(1.78	)%(8)		13.52	%(5)		(2.02	)%(8)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,686		$	3,528		$	49
Ratio of Expenses to Average Net Assets (10)		1.49	%(6)(9)		1.51	%(6)(7)		1.61	%(6)(9)
Ratio of Net Investment Income to Average Net Assets (10)		1.78	%(6)(9)		2.04	%(6)(7)		2.23	%(6)(9)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(9)		0.02	%		0.01	%(9)
Portfolio Turnover Rate		197	%(8)		262	%		348	%(8)
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		1.67	%(9)		2.00	%		14.06	%(9)
Net Investment Income (Loss) to Average Net Assets		1.60	%(9)		1.55	%		(10.22	)%(9)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

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

(5)  Performance was positively impacted by approximately 7.75% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 5.77%.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  Effective January 4, 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 4, 2016, the maximum ratio was 1.62% for Class C shares.

(8)  Not annualized.

(9)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Trust is comprised of nine separate, active funds (individually referred to as a "Fund", collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

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

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

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 Trust 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/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads, and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges; (2) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (3) over-the-counter ("OTC") swaps may be valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may

be valued using the closing price provided by the clearinghouse or exchange; (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; and (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.

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

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value 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 Fund's investments as of March 31, 2017.

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	$	—	$	209	$	—	$	209
Agency Fixed Rate Mortgages		—		60,029		—		60,029
Asset-Backed Securities		—		19,939		—		19,939
Collateralized Mortgage Obligations — Agency Collateral Series		—		5,135		—		5,135
Commercial Mortgage- Backed Securities		—		20,144		—		20,144
Corporate Bonds		—		93,343		—		93,343
Mortgages — Other		—		19,982		—		19,982
Municipal Bonds		—		2,331		—		2,331
Sovereign		—		24,956		—		24,956
U.S. Agency Security		—		2,058		—		2,058

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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)
Fixed Income Securities (cont'd)
U.S. Treasury Securities	$	—		$	20,446		$	—	$	20,446
Total Fixed Income Securities		—			268,572			—		268,572
Short-Term Investments
Investment Company		30,239			—			—		30,239
U.S. Treasury Securities		—			10,388			—		10,388
Certificates of Deposit		—			2,010			—		2,010
Total Short-Term Investments		30,239			12,398			—		42,637
Foreign Currency Forward Exchange Contracts		—			294			—		294
Futures Contracts		120			—			—		120
Interest Rate Swap Agreements		—			48			—		48
Total Assets		30,359			281,312			—		311,671
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(425	)		—		(425	)
Futures Contracts		(66	)		—			—		(66	)
Credit Default Swap Agreements		—			(102	)		—		(102	)
Interest Rate Swap Agreements		—			(99	)		—		(99	)
Total Liabilities		(66	)		(626	)		—		(692	)
Total	$	30,293		$	280,686		$	—	$	310,979

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of March 31, 2017, the Fund did not have any investments transfer between investment levels.

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

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

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

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from

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

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency 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 Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) 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,

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

an additional class of shares (identified as "Foreign" in the Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

4.  Derivatives: The Fund 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 Fund'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 Fund 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 Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund'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 Fund used during the period and their associated risks:

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Fund'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 Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

Swaps: The Fund 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 Fund'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

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

may help reduce counterparty credit risk. In a cleared swap, the Fund'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 Fund 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 Fund'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 Fund may be either the buyer or seller in a credit default swap. Where the Fund 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 Fund 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 Fund 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 Fund if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 Fund'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.

When the Fund has an unrealized loss on a swap agreement, the Fund 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

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

if and when the swap valuations fluctuate. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

Upfront payments paid or received by the Fund 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 Fund 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 Fund may use cross currency hedging or proxy hedging with respect to currencies in which the Fund 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 Fund's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Fund 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 Fund as unrealized gain or loss. The Fund records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

FASB ASC 815, "Derivatives and Hedging" ("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 Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2017.

	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	$	294
Futures Contracts	Variation Margin on
	Futures Contracts	Interest Rate Risk		120	(a)
Swap Agreements	Variation Margin on
	Swap Agreements	Interest Rate Risk		48	(a)
Total			$	462
	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	$	(425	)
Futures Contracts	Variation Margin on
	Futures Contracts	Interest Rate Risk		(66	)(a)
Swap Agreements	Unrealized Depreciation on
	Swap Agreements	Credit Risk		(102	)
Swap Agreements	Variation Margin on
	Swap Agreements	Interest Rate Risk		(99	)(a)
Total			$	(692	)

(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 Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

contract for the six months ended March 31, 2017 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	560
Interest Rate Risk	Futures Contracts		(695	)
Credit Risk	Swap Agreements		(36	)
Interest Rate Risk	Swap Agreements		51
	Total	$	(120	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(226	)
Interest Rate Risk	Futures Contracts		257
Credit Risk	Swap Agreements		31
Interest Rate Risk	Swap Agreements		(51	)
	Total	$	11

At March 31, 2017, the Fund'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	$	294	$	(425	)
Swap Agreements		—		(102	)
Total	$	294	$	(527	)

(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 Fund 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 Fund 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 Fund 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 Fund 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 Fund'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, 2017.

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)
Australia and New Zealand Banking Group	$	121	$	(97	)	$	—	$	24
Barclays Bank PLC		8		(8	)		—		0
Goldman Sachs International		9		(9	)		—		0
HSBC Bank PLC		96		(96	)		—		0
JPMorgan Chase Bank NA		48		(42	)		—		6
UBS AG		12		(12	)		—		0
Total	$	294	$	(264	)	$	—	$	30
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)
Australia and New Zealand Banking Group	$	97	$	(97	)	$	—	$	0
Barclays Bank PLC		42		(8	)		—		34
Deutsche Bank AG		48		—			—		48
Goldman Sachs International		63		(9	)		—		54
HSBC Bank PLC		192		(96	)		—		96
JPMorgan Chase Bank NA		42		(42	)		—		0
UBS AG		43		(12	)		—		31
Total	$	527	$	(264	)	$	—	$	263

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

For the six months ended March 31, 2017, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	60,644,000
Futures Contracts:
Average monthly original value	$	111,751,000
Swap Agreements:
Average monthly notional amount	$	15,628,000

5.  Securities Lending: The Fund 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 Fund. The Fund would receive cash or securities as collateral in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Fund'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 Fund 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, 2017.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	5,643	(d)	$	—	$	(5,643	)(e)(f)	$	0

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

(e) The Fund received cash collateral of approximately $2,358,000, which was subsequently invested in Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $3,395,000 in the form of U.S. Government agency securities and U.S. Government obligations, which the Fund 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.

FASB Accounting Standards Update No. 2014-11 ("ASU No. 2014-11"), "Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures", 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.

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, 2017.

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Corporate Bonds	$	2,358	$	—	$	—	$	—	$	2,358
Total Borrowings	$	2,358	$	—	$	—	$	—	$	2,358
Gross amount of recognized liabilities for securities lending transactions									$	2,358

6.  When-Issued/Delayed Delivery Securities: The Fund 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 Fund on such securities prior to

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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 Fund 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 Fund'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 Fund.

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

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

9.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund 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 Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds 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 Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at the annual rate based on the average daily net assets as follows:

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

For the six months ended March 31, 2017, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.20% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), 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 Fund'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, 2017, approximately $219,000 of advisory fees were waived and approximately $104,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust 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 Fund pays the

30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

The Trust 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 Fund 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 Fund's average daily net assets attributable to Class L shares.

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

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Trust 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, 2017, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $93,857,000 and $39,661,000, respectively. For the six months ended March 31, 2017, purchases

and sales of long-term U.S. Government securities were approximately $478,695,000 and $461,842,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government 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 Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2017, advisory fees paid were reduced by approximately $27,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of the Liquidity Funds during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2017 (000)
$	28,592	$	134,323	$	132,676	$	70	$	30,239

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2017, the Fund did not engage in any cross-trade transactions.

The Fund 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 Fund.

H. Federal Income Taxes: It is the Fund'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.

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

The Fund 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 Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund 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, 2016, 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 2016 and 2015 was as follows:

2016 Distributions Paid From: Ordinary Income (000)		2015 Distributions Paid From: Ordinary Income (000)
$	7,663	$	6,119

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

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

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

resulted in the following reclassifications among the components of net assets at September 30, 2016:

Accumulated Undistributed Net Investment Income (000)			Accumulated Net Realized Loss (000)		Paid-in- Capital (000)
$	(507	)	$	507	$	—

At September 30, 2016, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	2,731	$	—

At September 30, 2016, the Fund had available for federal income tax purposes unused capital losses which will expire on the indicated dates:

Amount (000)		Expiration
$	244,990	September 30, 2017
	201,462	September 30, 2018

To the extent that capital loss carryforwards are used to offset any future capital gains realized during the carryover period as provided by U.S. federal income tax regulations, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders. During the year ended September 30, 2016, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $14,610,000.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $150,000,000 committed, unsecured revolving line of credit facility (the "facility") with State Street. This facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or one month libor rate plus a spread. The facility also has a commitment fee of 0.25% per annum based on the unused portion of the facility. During the six months ended March 31, 2017, the Fund did not have any borrowings under the facility.

J. Other: At March 31, 2017, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 56.3%.

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

K. Accounting Pronouncement: In October 2016, the Securities and Exchange Commission ("SEC") issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the Fund's net assets or results of operations. Although still evaluating the potential impacts of the Investment Company Reporting Modernization to the Fund, management expects that the impact of the Fund's adoption will be limited to additional financial statement disclosures.

33

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited)

MORGAN STANLEY INVESTMENT MANAGEMENT INC.
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

We are required by federal law to provide you with a copy of our privacy policy annually. This policy applies to current and former individual investors in funds managed or sponsored by Morgan Stanley Investment Management Inc. ("MSIM") as well as current and former individual clients of MSIM. This policy is not applicable to partnerships, corporations, trusts or other non-individual clients or investors. Please note that we may amend this policy at any time, and will inform you of any changes as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Notice describes what non-public personal information we collect about you, why 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 to affiliated companies in the Morgan Stanley family of companies ("other Morgan Stanley companies"). It also discloses how you may limit use of certain shared information for marketing purposes by other Morgan Stanley branded companies. Throughout this policy, we refer to the non-public information that personally identifies you or your accounts as "personal information.''

1.  WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?

We obtain personal information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources.

For example:

•  We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through subscription documents, 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.

•  If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies." Please consult the Terms of Use of these sites for more details.

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

We may disclose personal information we collect about you to other Morgan Stanley companies and to non-affiliated third parties.

a. Information We Disclose to Other Morgan Stanley Companies.

We may disclose personal information to other Morgan Stanley companies for a variety of reasons, including to manage your account(s) effectively, to service and process your transactions, to let you know about products and services offered by us and other Morgan Stanley companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from other Morgan Stanley companies are developed under conditions designed to safeguard your personal information.

34

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

b. Information We Disclose to Non-affiliated Third Parties.

We do not disclose personal information that we collect about you to non-affiliated third parties except to those who provide marketing services on our behalf, to financial institutions with whom we have joint marketing agreements, and as otherwise required or permitted by law. For example, we may disclose personal information to nonaffiliated third parties for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with a non-affiliated third party, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information 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 to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information.

4.  HOW CAN YOU LIMIT THE SHARING OF CERTAIN TYPES OF PERSONAL INFORMATION WITH OTHER MORGAN STANLEY COMPANIES?

We offer you choices as to whether we share with other Morgan Stanley companies the personal information that was collected to determine your eligibility for products and services you request ("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 other Morgan Stanley companies ("opt-out"), we may still share personal information, including eligibility information, with those companies in circumstances excluded from the opt-out under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN TYPES OF PERSONAL INFORMATION BY OTHER MORGAN STANLEY COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit other Morgan Stanley branded 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 Other Morgan Stanley Companies from using personal information about you that we may share with them for marketing their products and services to you, Other Morgan Stanley Companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the Other Morgan Stanley Company has its own relationship with you.

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

If you wish to limit our sharing of eligibility information about you with other Morgan Stanley companies or other Morgan Stanley 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

35

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

Your written 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 if 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.

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 have a joint account, your direction for us not to share this information with other Morgan Stanley companies and for those other Morgan Stanley companies not to use your personal information for marketing will be applied to all account holders on that 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 Morgan Stanley products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

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

If, at any time in the future, an affiliated company becomes a non-affiliated 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 non-affiliated 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 non-affiliated 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 affiliated companies and non-affiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with non-affiliated third parties or other Morgan Stanley companies unless you provide us with your written consent to share such information ("opt-in").

If you wish to receive offers for investment products and services offered by or through other Morgan Stanley companies, please notify us in writing at the following address:

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

Your authorization should include your name, address, telephone number and account number(s) to which the opt-in applies and should not be sent with any other correspondence. In order to process your authorization, we require that the authorization be provided by you directly and not through a third party.

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 information with our affiliates to comply with California privacy laws that apply to us.

36

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Trustee and Officer Information (unaudited)

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

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

Perkins Coie LLP
30 Rockefeller Plaza
New York, New York 10112

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, 100 F Street, NE, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust 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 or summary prospectus of the applicable Fund of Morgan Stanley Institutional Fund Trust, which describes in detail the Fund'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 Fund, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

37

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

© 2017 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTCPFISAN
1784076 EXP 05.31.18

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Corporate Bond Portfolio

Semi-Annual Report

March 31, 2017

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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
Privacy Notice	30
Trustee and Officer Information	33

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund 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 Fund'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 Fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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 "Fund") 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 2017

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Expense Example (unaudited)

Corporate Bond Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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, 2017 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund'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 Fund 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 10/1/16		Actual Ending Account Value 3/31/17		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	$	988.00	$	1,021.49	$	3.42	$	3.48		0.69	%
Corporate Bond Portfolio Class A		1,000.00		986.70		1,019.80		5.10		5.19		1.03
Corporate Bond Portfolio Class L		1,000.00		984.70		1,018.35		6.53		6.64		1.32
Corporate Bond Portfolio Class C		1,000.00		982.60		1,016.01		8.85		9.00		1.79

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (96.7%)
Asset-Backed Securities (0.6%)
CVS Pass-Through Trust,
6.04%, 12/10/28	$	103	$	116
8.35%, 7/10/31 (a)		123		159
				275
Corporate Bonds (95.7%)
Finance (37.4%)
ABN Amro Bank N.V.
4.75%, 7/28/25 (a)		200		206
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust
3.75%, 5/15/19		150		154
Air Lease Corp.
3.38%, 6/1/21		75		77
Alexandria Real Estate Equities, Inc.
3.95%, 1/15/27		75		75
Ally Financial, Inc.
4.25%, 4/15/21		75		77
American Campus Communities Operating Partnership LP
3.75%, 4/15/23		100		102
American Express Credit Corp.,
MTN
2.38%, 5/26/20		200		201
2.70%, 3/3/22		125		125
American International Group, Inc.
4.88%, 6/1/22		175		190
AvalonBay Communities, Inc.,
Series G
2.95%, 5/11/26		100		96
Bank of America Corp.,
MTN
2.15%, 11/9/20		75		74
Series G
3.50%, 4/19/26		275		272
MTN
4.00%, 4/1/24 - 1/22/25		350		357
5.00%, 1/21/44		125		137
Bank of New York Mellon Corp. (The),
MTN
3.65%, 2/4/24		60		62
BBVA Bancomer SA
6.50%, 3/10/21 (a)		150		165
BNP Paribas SA,
3.80%, 1/10/24 (a)		250		249
5.00%, 1/15/21		95		103
Boston Properties LP,
3.65%, 2/1/26		100		100
3.80%, 2/1/24		25		26
BPCE SA
5.15%, 7/21/24 (a)		200		206
Branch Banking & Trust Co.
2.10%, 1/15/20		275		275

	Face Amount (000)		Value (000)
Brixmor Operating Partnership LP
4.13%, 6/15/26	$	150	$	151
Brookfield Finance, Inc.
4.25%, 6/2/26		150		151
Capital One Bank USA NA
3.38%, 2/15/23		342		342
Capital One Financial Corp.,
2.45%, 4/24/19		50		50
3.75%, 3/9/27		25		25
Chubb INA Holdings, Inc.
3.35%, 5/15/24		125		128
Citigroup, Inc.,
3.89%, 1/10/28 (b)		225		226
6.68%, 9/13/43		50		64
8.13%, 7/15/39		100		147
Citizens Bank NA,
MTN
2.55%, 5/13/21		250		249
CNA Financial Corp.
5.75%, 8/15/21		75		84
Cooperatieve Rabobank UA
3.95%, 11/9/22		250		257
Credit Suisse AG,
MTN
3.63%, 9/9/24		250		254
6.00%, 2/15/18		61		63
CubeSmart LP
3.13%, 9/1/26		50		47
Discover Bank
2.00%, 2/21/18		250		250
Discover Financial Services
3.95%, 11/6/24		75		75
Federal Realty Investment Trust
3.63%, 8/1/46		75		66
Five Corners Funding Trust
4.42%, 11/15/23 (a)		200		213
GE Capital International Funding Co.,
2.34%, 11/15/20		200		201
4.42%, 11/15/35		211		223
Goldman Sachs Group, Inc. (The),
2.35%, 11/15/21		175		172
MTN
4.80%, 7/8/44		125		133
6.25%, 2/1/41		75		95
6.75%, 10/1/37		230		285
Goodman Funding Pty Ltd.
6.38%, 4/15/21 (a)		250		281
Guardian Life Insurance Co. of America (The)
4.85%, 1/24/77 (a)		100		98
Hartford Financial Services Group, Inc. (The)
5.50%, 3/30/20		275		299
Healthcare Trust of America Holdings LP
3.70%, 4/15/23		100		100

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
HSBC Finance Corp.
6.68%, 1/15/21	$	235	$	266
HSBC Holdings PLC,
2.65%, 1/5/22		200		198
4.38%, 11/23/26		200		202
HSBC USA, Inc.
3.50%, 6/23/24		100		102
Humana, Inc.
4.80%, 3/15/47		100		105
ING Bank N.V.
5.80%, 9/25/23 (a)		100		111
Intesa Sanpaolo SpA
3.88%, 1/16/18		200		203
Jackson National Life Global Funding
2.20%, 1/30/20 (a)		300		300
JPMorgan Chase & Co.,
MTN
2.30%, 8/15/21 (c)		100		99
4.13%, 12/15/26		400		408
KeyBank NA
1.60%, 8/22/19		250		247
LeasePlan Corp. N.V.
2.88%, 1/22/19 (a)		200		201
Liberty Mutual Group, Inc.
4.85%, 8/1/44 (a)		50		51
Lincoln National Corp.
7.00%, 6/15/40		75		97
Lloyds Banking Group PLC
3.10%, 7/6/21		200		202
Massachusetts Mutual Life Insurance Co.
4.50%, 4/15/65 (a)		50		49
Metropolitan Life Global Funding I
2.00%, 4/14/20 (a)		200		199
Mizuho Financial Group, Inc.
2.63%, 4/12/21 (a)		225		223
Nationwide Building Society
6.25%, 2/25/20 (a)		260		288
New York Life Global Funding
2.90%, 1/17/24 (a)		225		226
Pacific LifeCorp
6.00%, 2/10/20 (a)		150		163
PNC Financial Services Group, Inc. (The)
3.90%, 4/29/24		80		83
Prudential Financial, Inc.,
MTN
4.60%, 5/15/44		75		79
5.63%, 6/15/43 (b)		170		182
Realty Income Corp.
3.25%, 10/15/22		150		152
Royal Bank of Scotland Group PLC
3.88%, 9/12/23		200		197

	Face Amount (000)		Value (000)
Santander UK Group Holdings PLC
3.57%, 1/10/23	$	200	$	200
Santander UK PLC
5.00%, 11/7/23 (a)		200		209
Simon Property Group LP
2.50%, 7/15/21		125		125
Skandinaviska Enskilda Banken AB
2.63%, 11/17/20 (a)		200		201
Standard Chartered PLC
2.10%, 8/19/19 (a)		225		223
State Street Corp.
1.95%, 5/19/21		175		172
Swedbank AB
2.80%, 3/14/22 (a)(c)		300		301
Synchrony Financial
3.00%, 8/15/19		200		203
TD Ameritrade Holding Corp.
3.63%, 4/1/25		100		103
Toronto-Dominion Bank (The)
3.63%, 9/15/31 (b)		175		172
Travelers Cos., Inc. (The)
3.75%, 5/15/46		50		47
UBS Group Funding Switzerland AG
3.49%, 5/23/23 (a)		225		227
UnitedHealth Group, Inc.,
2.75%, 2/15/23		55		55
2.88%, 3/15/23		255		256
3.75%, 7/15/25		150		157
Weingarten Realty Investors
3.38%, 10/15/22		150		151
Wells Fargo & Co.,
2.15%, 1/15/19		60		60
3.00%, 10/23/26		375		359
3.07%, 1/24/23		200		201
MTN
4.10%, 6/3/26		100		102
Westpac Banking Corp.
2.85%, 5/13/26		150		145
				16,360
Industrials (49.7%)
21st Century Fox America, Inc.
4.75%, 9/15/44		125		127
ABB Treasury Center USA, Inc.
4.00%, 6/15/21 (a)		50		53
Abbott Laboratories,
3.40%, 11/30/23		250		253
4.90%, 11/30/46		50		52
AbbVie, Inc.,
3.20%, 5/14/26		50		48
4.70%, 5/14/45		75		75
Actavis Funding SCS,
4.75%, 3/15/45		130		131
4.85%, 6/15/44		50		51

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Air Liquide Finance SA
2.25%, 9/27/23 (a)(c)	$	200	$	191
Alfa SAB de CV
5.25%, 3/25/24 (a)		200		211
Alibaba Group Holding Ltd.
2.50%, 11/28/19		200		201
Altria Group, Inc.
5.38%, 1/31/44		55		63
Amazon.com, Inc.,
3.80%, 12/5/24		75		80
4.95%, 12/5/44		50		57
American Airlines Pass-Through Trust
4.00%, 7/15/25		165		171
Amgen, Inc.,
2.60%, 8/19/26		125		116
4.66%, 6/15/51		109		110
Anadarko Petroleum Corp.,
5.55%, 3/15/26 (c)		25		28
6.45%, 9/15/36		125		148
Anheuser-Busch InBev Finance, Inc.,
3.65%, 2/1/26		125		127
3.70%, 2/1/24 (c)		200		207
4.90%, 2/1/46		175		190
Apple, Inc.,
2.45%, 8/4/26		150		142
3.35%, 2/9/27		200		203
3.85%, 5/4/43		50		48
4.50%, 2/23/36		125		135
Applied Materials, Inc.
3.30%, 4/1/27		150		151
APT Pipelines Ltd.
4.20%, 3/23/25 (a)		200		205
Aramark Services, Inc.
4.75%, 6/1/26		100		101
AstraZeneca PLC
6.45%, 9/15/37		125		164
AT&T, Inc.,
4.25%, 3/1/27		125		127
4.50%, 3/9/48		287		256
4.55%, 3/9/49		75		67
5.15%, 3/15/42		75		75
Automatic Data Processing, Inc.
3.38%, 9/15/25		50		52
Baidu, Inc.
3.25%, 8/6/18		200		203
Barrick Gold Corp.
4.10%, 5/1/23 (c)		100		107
Baxalta, Inc.
5.25%, 6/23/45 (c)		50		55
BHP Billiton Finance USA Ltd.,
3.85%, 9/30/23 (c)		50		53
5.00%, 9/30/43		75		84

	Face Amount (000)		Value (000)
BMW US Capital LLC
2.70%, 4/6/22 (a)	$	250	$	251
Boston Scientific Corp.
3.85%, 5/15/25		100		102
BP Capital Markets PLC,
3.02%, 1/16/27		100		96
3.12%, 5/4/26		125		122
Brambles USA, Inc.
4.13%, 10/23/25 (a)		150		154
British Airways Pass-Through Trust
4.63%, 6/20/24 (a)		153		163
Buckeye Partners LP
4.15%, 7/1/23		175		179
Burlington Northern Santa Fe LLC,
4.40%, 3/15/42		75		77
4.55%, 9/1/44		50		53
Caterpillar, Inc.
3.80%, 8/15/42		50		48
CBS Corp.,
4.60%, 1/15/45		25		24
4.90%, 8/15/44		50		51
Charter Communications Operating LLC/ Charter Communications Operating Capital,
4.91%, 7/23/25		75		79
6.48%, 10/23/45		150		173
Cimarex Energy Co.
5.88%, 5/1/22		150		155
Cisco Systems, Inc.
1.85%, 9/20/21		275		270
Coca-Cola Co.
1.38%, 5/30/19		175		174
ConocoPhillips Co.
2.20%, 5/15/20		100		100
Crown Castle International Corp.,
3.40%, 2/15/21		100		102
4.45%, 2/15/26		75		78
CSX Corp.
2.60%, 11/1/26		125		117
CVS Health Corp.
2.13%, 6/1/21		75		74
Danone SA
1.69%, 10/30/19 (a)		200		197
Darden Restaurants, Inc.
6.80%, 10/15/37		50		60
DCP Midstream Operating LP
5.35%, 3/15/20 (a)		38		40
Delphi Automotive PLC
3.15%, 11/19/20		125		128
Delta Air Lines, Inc.
3.63%, 3/15/22		200		204
Deutsche Telekom International Finance BV
8.75%, 6/15/30		75		110

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Diamond 1 Finance Corp./ Diamond 2 Finance Corp.
8.10%, 7/15/36 (a)	$	75	$	94
DISH DBS Corp.
5.88%, 11/15/24		75		79
Dollar General Corp.,
1.88%, 4/15/18		100		100
3.25%, 4/15/23		125		125
Eastman Chemical Co.
3.80%, 3/15/25		100		102
eBay, Inc.
2.50%, 3/9/18		100		101
Eldorado Gold Corp.
6.13%, 12/15/20 (a)(c)		105		108
Embraer Netherlands Finance BV
5.40%, 2/1/27		65		67
Enable Midstream Partners LP,
3.90%, 5/15/24		125		122
4.40%, 3/15/27		25		25
Endeavor Energy Resources LP/EER Finance, Inc.
7.00%, 8/15/21 (a)		75		79
Energy Transfer Partners LP
6.50%, 2/1/42		125		135
Enterprise Products Operating LLC
4.45%, 2/15/43		125		119
Express Scripts Holding Co.
4.50%, 2/25/26		100		103
Exxon Mobil Corp.
4.11%, 3/1/46		75		77
FedEx Corp.
3.20%, 2/1/25		100		100
Ford Motor Credit Co., LLC,
3.10%, 5/4/23		200		195
5.88%, 8/2/21		200		223
General Motors Co.,
6.60%, 4/1/36		25		29
6.75%, 4/1/46		25		29
General Motors Financial Co., Inc.
4.38%, 9/25/21		125		132
Gilead Sciences, Inc.,
4.50%, 2/1/45		25		25
4.80%, 4/1/44		50		52
GlaxoSmithKline Capital, Inc.
6.38%, 5/15/38		75		98
Goldcorp, Inc.
5.45%, 6/9/44		50		53
Hanesbrands, Inc.,
4.63%, 5/15/24 (a)		40		40
4.88%, 5/15/26 (a)		60		59
Harris Corp.
4.85%, 4/27/35		75		80

	Face Amount (000)		Value (000)
HCA, Inc.
4.75%, 5/1/23	$	130	$	136
Heathrow Funding Ltd.
4.88%, 7/15/21 (a)		190		204
Hess Corp.
6.00%, 1/15/40		40		41
Hilcorp Energy I LP/Hilcorp Finance Co.
5.75%, 10/1/25 (a)		55		53
Home Depot, Inc.,
2.13%, 9/15/26		50		46
3.35%, 9/15/25		25		26
5.88%, 12/16/36		109		138
Hutchison Whampoa International 14 Ltd.
1.63%, 10/31/17 (a)		200		200
International Paper Co.
3.00%, 2/15/27		150		141
John Deere Capital Corp.,
MTN
1.25%, 10/9/19		225		222
Johnson Controls International PLC
3.90%, 2/14/26		75		78
KFC Holding Co./Pizza Hut Holdings LLC/ Taco Bell of America LLC
5.25%, 6/1/26 (a)		100		102
Kinder Morgan Energy Partners LP,
3.95%, 9/1/22		75		77
4.15%, 2/1/24		150		152
Kinder Morgan, Inc.
5.55%, 6/1/45		50		51
Kraft Heinz Foods Co.
4.38%, 6/1/46		175		165
Kroger Co. (The)
6.90%, 4/15/38		80		105
Lockheed Martin Corp.
3.55%, 1/15/26		125		127
Lowe's Cos., Inc.
2.50%, 4/15/26		175		166
LyondellBasell Industries N.V.
4.63%, 2/26/55		75		71
Macy's Retail Holdings, Inc.
2.88%, 2/15/23		150		140
MasTec, Inc.
4.88%, 3/15/23		90		89
McDonald's Corp.,
MTN
4.60%, 5/26/45		100		102
Mead Johnson Nutrition Co.
3.00%, 11/15/20		75		77
Medtronic, Inc.
4.63%, 3/15/45		200		215
Merck & Co., Inc.
2.80%, 5/18/23		125		126

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Microsoft Corp.,
1.55%, 8/8/21	$	175	$	171
2.88%, 2/6/24		325		327
4.45%, 11/3/45		125		132
Molson Coors Brewing Co.
2.25%, 3/15/20 (a)		175		175
MPLX LP
4.00%, 2/15/25		100		99
4.88%, 6/1/25		25		26
5.20%, 3/1/47		50		51	��
Mylan N.V.
3.95%, 6/15/26		75		74
NBC Universal Media LLC
5.95%, 4/1/41		275		336
NetApp, Inc.
2.00%, 12/15/17		100		100
Netflix, Inc.
4.38%, 11/15/26 (a)		50		49
Nissan Motor Acceptance Corp.
2.55%, 3/8/21 (a)		150		150
Noble Energy, Inc.
5.05%, 11/15/44		50		51
NOVA Chemicals Corp.
5.25%, 8/1/23 (a)		120		123
Novartis Capital Corp.
4.40%, 5/6/44		75		80
Omnicom Group, Inc.,
3.60%, 4/15/26		50		50
3.63%, 5/1/22		95		98
3.65%, 11/1/24		23		23
Ooredoo International Finance Ltd.
3.25%, 2/21/23 (a)		225		223
Oracle Corp.
4.50%, 7/8/44		150		155
Orange SA
9.00%, 3/1/31		50		74
PepsiCo, Inc.,
1.70%, 10/6/21		200		195
3.60%, 3/1/24		100		105
Pfizer, Inc.
3.00%, 12/15/26		100		99
Philip Morris International, Inc.,
2.00%, 2/21/20		125		125
4.50%, 3/20/42		75		77
Phillips 66
5.88%, 5/1/42		25		29
Phillips 66 Partners LP
4.68%, 2/15/45		25		23
Rockwell Collins, Inc.
2.80%, 3/15/22 (d)		125		125

	Face Amount (000)		Value (000)
Ryder System, Inc.,
MTN
2.65%, 3/2/20 (c)	$	50	$	50
Sabine Pass Liquefaction LLC
4.20%, 3/15/28 (a)		225		223
Shell International Finance BV
1.38%, 9/12/19		175		173
Southern Copper Corp.
7.50%, 7/27/35 (c)		100		122
Spectra Energy Capital LLC
7.50%, 9/15/38		100		120
Sprint Corp.
7.13%, 6/15/24		75		80
Sprint Spectrum Co., LLC/ Sprint Spectrum Co., II LLC/ Sprint Spectrum Co., III LLC
3.36%, 3/20/23 (a)		200		200
Telefonica Emisiones SAU
4.10%, 3/8/27		150		151
Telefonica Europe BV
8.25%, 9/15/30		84		114
Tesoro Corp.
4.75%, 12/15/23 (a)		175		182
Teva Pharmaceutical Finance Netherlands III BV
3.15%, 10/1/26 (c)		225		208
Thermo Fisher Scientific, Inc.
2.95%, 9/19/26		125		119
Time Warner, Inc.
3.80%, 2/15/27		300		297
TransCanada PipeLines Ltd.
7.63%, 1/15/39		75		105
Transurban Finance Co., Pty Ltd.,
3.38%, 3/22/27 (a)		75		73
4.13%, 2/2/26 (a)		95		98
Tyson Foods, Inc.
4.88%, 8/15/34		50		51
Under Armour, Inc.
3.25%, 6/15/26		100		92
United Airlines Pass-Through Trust,
Class A
4.30%, 8/15/25		197		206
Vale Overseas Ltd.
6.88%, 11/21/36 (c)		75		81
Verizon Communications, Inc.,
4.67%, 3/15/55		278		249
5.01%, 8/21/54		210		201
Viacom, Inc.
5.85%, 9/1/43		50		53
Visa, Inc.
4.30%, 12/14/45		125		132
Vodafone Group PLC
4.38%, 2/19/43		50		46

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Volkswagen Group of America Finance LLC
2.40%, 5/22/20 (a)	$	200	$	199
Wal-Mart Stores, Inc.,
3.30%, 4/22/24 (c)		150		156
5.25%, 9/1/35		75		89
Walgreens Boots Alliance, Inc.,
3.45%, 6/1/26		50		49
3.80%, 11/18/24		25		26
Whole Foods Market, Inc.
5.20%, 12/3/25		50		53
Williams Partners LP/ACMP Finance Corp.
4.88%, 5/15/23		125		129
WM Wrigley Jr. Co.
2.90%, 10/21/19 (a)		230		234
Woodside Finance Ltd.
3.70%, 9/15/26 (a)(c)		150		147
				21,753
Utilities (8.6%)
Alabama Power Co.
3.75%, 3/1/45		125		118
Baltimore Gas & Electric Co.
2.40%, 8/15/26		75		70
Black Hills Corp.
3.15%, 1/15/27		75		72
Boston Gas Co.
4.49%, 2/15/42 (a)		125		130
CenterPoint Energy Houston Electric LLC,
1.85%, 6/1/21		150		147
Series AA
3.00%, 2/1/27		225		222
CMS Energy Corp.
6.25%, 2/1/20		200		221
Consolidated Edison, Inc.,
Series A
2.00%, 3/15/20		75		75
DTE Energy Co.,
1.50%, 10/1/19		100		98
3.80%, 3/15/27		125		127
Duke Energy Carolinas LLC
3.75%, 6/1/45		75		72
Duke Energy Corp.
2.65%, 9/1/26		150		140
Emera US Finance LP
3.55%, 6/15/26		225		222
Enel Finance International N.V.
6.00%, 10/7/39 (a)		100		114
Entergy Arkansas, Inc.
3.50%, 4/1/26		75		77
Entergy Louisiana LLC
3.05%, 6/1/31		75		71

	Face Amount (000)		Value (000)
Fortis, Inc.
2.10%, 10/4/21 (a)	$	100	$	97
Nevada Power Co.,
Series N
6.65%, 4/1/36		150		198
Oncor Electric Delivery Co., LLC
2.95%, 4/1/25		75		74
Public Service Electric & Gas Co.,
MTN
2.25%, 9/15/26		150		140
Public Service Enterprise Group, Inc.
1.60%, 11/15/19		75		74
Sempra Energy
6.00%, 10/15/39		125		149
South Carolina Electric & Gas Co.
4.50%, 6/1/64		75		73
Southern Power Co.,
Series D
1.95%, 12/15/19		50		50
Trans-Allegheny Interstate Line Co.
3.85%, 6/1/25 (a)		200		205
TransAlta Corp.
4.50%, 11/15/22		213		214
Virginia Electric & Power Co.
2.95%, 1/15/22		325		331
WEC Energy Group, Inc.
3.55%, 6/15/25		75		77
Xcel Energy, Inc.
3.30%, 6/1/25		75		75
				3,733
				41,846
Sovereign (0.4%)
Sinopec Group Overseas Development 2015 Ltd.
2.50%, 4/28/20 (a)		200		199
Total Fixed Income Securities (Cost $41,836)				42,320
	Shares
Short-Term Investments (5.3%)
Securities held as Collateral on Loaned Securities (1.4%)
Investment Company (1.4%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $620)		619,605		620
Investment Company (3.1%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $1,342)		1,342,038		1,342

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
U.S. Treasury Security (0.8%)
U.S. Treasury Bill
0.64%, 7/27/17 (e)(f) (Cost $359)	$	360	$	359
Total Short-Term Investments (Cost $2,321)				2,321
Total Investments (102.0%) (Cost $44,157) Including $1,593 of Securities Loaned (g)(h)				44,641
Liabilities in Excess of Other Assets (–2.0%)				(896	)
Net Assets (100.0%)			$	43,745

(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, 2017.

(c)  All or a portion of this security was on loan at March 31, 2017.

(d)  When-issued security.

(e)  Rate shown is the yield to maturity at March 31, 2017.

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

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

(h)  At March 31, 2017, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $921,000 and the aggregate gross unrealized depreciation is approximately $437,000 resulting in net unrealized appreciation of approximately $484,000.

MTN  Medium Term Note.

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2017:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		16	$	3,463		Jun-17	$	—	@
U.S. Treasury 30 yr. Bond		11		1,659		Jun-17		(—	@)
U.S. Treasury 5 yr. Note		2		235		Jun-17		—	@
U.S. Treasury Ultra Bond		6		964		Jun-17		5
Short:
U.S. Treasury 10 yr. Note		17		(2,117	)	Jun-17		(7	)
U.S. Treasury 10 yr. Ultra Long Bond		12		(1,607	)	Jun-17		(6	)
							$	(8	)

Credit Default Swap Agreement:

The Fund had the following credit default swap agreement open at March 31, 2017:

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†
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	200		1.00	%	3/20/19	$	4	$	(7	)	$	(3	)	BBB+

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 31, 2017:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.86	%	12/8/21	$	1,025	$	3
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.28		12/8/26		550		2
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.48		12/21/26		680		(10	)
									$	(5	)

@  Value is less than $500.

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

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

LIBOR  London Interbank Offered Rate.

Portfolio Composition**

Classification	Percentage of Total Investments
Industrials		49.4	%
Finance		37.1
Utilities		8.5
Short-Term Investments		3.9
Other***		1.1
Total Investments		100.0	%****

**  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2017.

***  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 $10,045,000 with net unrealized depreciation of approximately $8,000. Does not include open swap agreements with net unrealized depreciation of approximately $12,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Corporate Bond Portfolio

Statement of Assets and Liabilities	March 31, 2017 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $42,195)	$	42,679
Investment in Security of Affiliated Issuer, at Value (Cost $1,962)		1,962
Total Investments in Securities, at Value (Cost $44,157)		44,641
Interest Receivable		379
Receivable for Investments Sold		222
Receivable for Fund Shares Sold		36
Premium Paid on Open Swap Agreements		4
Due from Adviser		2
Receivable from Affiliate		1
Other Assets		63
Total Assets		45,348
Liabilities:
Payable for Investments Purchased		794
Collateral on Securities Loaned, at Value		620
Payable for Fund Shares Redeemed		68
Payable for Professional Fees		38
Payable for Trustees' Fees and Expenses		23
Unrealized Depreciation on Swap Agreements		7
Payable for Custodian Fees		6
Payable for Sub Transfer Agency Fees — Class I		5
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class I		3
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		1
Payable for Administration Fees		3
Payable for Variation Margin on Swap Agreements		3
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Variation Margin on Futures Contracts		1
Other Liabilities		27
Total Liabilities		1,603
Net Assets	$	43,745
Net Assets Consist of:
Paid-in-Capital	$	96,289
Accumulated Undistributed Net Investment Income		467
Accumulated Net Realized Loss		(53,475	)
Unrealized Appreciation (Depreciation) on:
Investments		484
Futures Contracts		(8	)
Swap Agreements		(12	)
Net Assets	$	43,745

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Corporate Bond Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2017 (000)
CLASS I:
Net Assets	$	33,609
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		2,800,573
Net Asset Value, Offering and Redemption Price Per Share	$	12.00
CLASS A:
Net Assets	$	8,049
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		670,322
Net Asset Value, Redemption Price Per Share	$	12.01
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.53
Maximum Offering Price Per Share	$	12.54
CLASS L:
Net Assets	$	1,876
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		156,457
Net Asset Value, Offering and Redemption Price Per Share	$	11.99
CLASS C:
Net Assets	$	211
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		17,637
Net Asset Value, Offering and Redemption Price Per Share	$	11.95
(1) Including: Securities on Loan, at Value:	$	1,593

@  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, 2017 (unaudited)

Corporate Bond Portfolio

Statement of Operations	Six Months Ended March 31, 2017 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	729
Dividends from Security of Affiliated Issuer (Note G)		3
Income from Securities Loaned — Net		3
Total Investment Income		735
Expenses:
Advisory Fees (Note B)		77
Professional Fees		53
Registration Fees		19
Sub Transfer Agency Fees — Class I		12
Sub Transfer Agency Fees — Class A		6
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Pricing Fees		18
Administration Fees (Note C)		16
Shareholder Services Fees — Class A (Note D)		9
Distribution and Shareholder Services Fees — Class L (Note D)		5
Distribution and Shareholder Services Fees — Class C (Note D)		1
Custodian Fees (Note F)		8
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
Trustees' Fees and Expenses		2
Other Expenses		8
Total Expenses		249
Waiver of Advisory Fees (Note B)		(64	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(16	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Waiver of Shareholder Servicing Fees — Class A (Note D)		(4	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		163
Net Investment Income		572
Realized Gain:
Investments Sold		237
Futures Contracts		107
Swap Agreements		3
Net Realized Gain		347
Change in Unrealized Appreciation (Depreciation):
Investments		(1,410	)
Futures Contracts		(1	)
Swap Agreements		(3	)
Net Change in Unrealized Appreciation (Depreciation)		(1,414	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(1,067	)
Net Decrease in Net Assets Resulting from Operations	$	(495	)

@  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, 2017

Corporate Bond Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	572		$	1,129
Net Realized Gain		347			2,314
Net Change in Unrealized Appreciation (Depreciation)		(1,414	)		2,386
Net Increase (Decrease) in Net Assets Resulting from Operations		(495	)		5,829
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(468	)		(954	)
Class A:
Net Investment Income		(97	)		(59	)
Class L:
Net Investment Income		(25	)		(51	)
Class C:
Net Investment Income		(1	)		(1	)
Total Distributions		(591	)		(1,065	)
Capital Share Transactions:(1)
Class I:
Subscribed		6,052			3,997
Distributions Reinvested		465			952
Redeemed		(3,951	)		(8,505	)
Class A:
Subscribed		4,002			6,507
Distributions Reinvested		97			57
Redeemed		(2,774	)		(676	)
Class L:
Exchanged		—			12
Distributions Reinvested		25			51
Redeemed		(239	)		(345	)
Class C:
Subscribed		93			211
Distributions Reinvested		1			1
Redeemed		(6	)		(104	)
Net Increase in Net Assets Resulting from Capital Share Transactions		3,765			2,158
Total Increase in Net Assets		2,679			6,922
Net Assets:
Beginning of Period		41,066			34,144
End of Period (Including Accumulated Undistributed Net Investment Income of $467 and $486)	$	43,745		$	41,066
(1) Capital Share Transactions:
Class I:
Shares Subscribed		507			357
Shares Issued on Distributions Reinvested		39			86
Shares Redeemed		(331	)		(767	)
Net Increase (Decrease) in Class I Shares Outstanding		215			(324	)
Class A:
Shares Subscribed		335			564
Shares Issued on Distributions Reinvested		8			5
Shares Redeemed		(233	)		(59	)
Net Increase in Class A Shares Outstanding		110			510
Class L:
Shares Exchanged		—			1
Shares Issued on Distributions Reinvested		2			5
Shares Redeemed		(20	)		(32	)
Net Decrease in Class L Shares Outstanding		(18	)		(26	)
Class C:
Shares Subscribed		8			18
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(1	)		(9	)
Net Increase in Class C Shares Outstanding		7			9

@@  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, 2017

Financial Highlights

Corporate Bond Portfolio

	Class I
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			2012
Net Asset Value, Beginning of Period	$	12.33		$	10.80		$	11.12		$	10.53		$	10.93		$	10.27
Income (Loss) from Investment Operations:
Net Investment Income (2)		0.17			0.37			0.37			0.38			0.32			0.36
Net Realized and Unrealized Gain (Loss)		(0.32	)		1.51			(0.37	)		0.53			(0.40	)		0.73
Total from Investment Operations		(0.15	)		1.88			—			0.91			(0.08	)		1.09
Distributions from and/or in Excess of:
Net Investment Income		(0.18	)		(0.35	)		(0.32	)		(0.32	)		(0.32	)		(0.43	)
Net Asset Value, End of Period	$	12.00		$	12.33		$	10.80		$	11.12		$	10.53		$	10.93
Total Return (3)		(1.20	)%(4)(9)		17.79	%(5)		(0.04	)%		8.79	%		(0.77	)%		10.94	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	33,609		$	31,873		$	31,427		$	36,598		$	36,186		$	44,779
Ratio of Expenses to Average Net Assets (11)		0.69	%(6)(10)		0.69	%(6)		0.70	%(6)		0.70	%(6)		1.18	%(6)(7)		1.00	%(6)
Ratio of Net Investment Income to Average Net Assets (11)		2.88	%(6)(10)		3.28	%(6)		3.33	%(6)		3.47	%(6)		2.91	%(6)(7)		3.41	%(6)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(10)		0.01	%		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.00	%(8)
Portfolio Turnover Rate		17	%(9)		41	%		45	%		50	%		63	%		129	%
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.12	%(10)		1.28	%		1.15	%		1.13	%		1.21	%		N/A
Net Investment Income to Average Net Assets		2.45	%(10)		2.69	%		2.88	%		3.04	%		2.88	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  Performance was positively impacted by approximately 0.41% due to the receipt of proceeds from the settlement of class action suit involving the Fund'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 (1.61)%.

(5)  Performance was positively impacted by approximately 9.01% due to the receipt of proceeds from the settlement of a class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 8.78%.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  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.

(8)  Amount is less than 0.005%.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Corporate Bond Portfolio

	Class A
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			2012
Net Asset Value, Beginning of Period	$	12.34		$	10.81		$	11.12		$	10.53		$	10.92		$	10.27
Income (Loss) from Investment Operations:
Net Investment Income (2)		0.15			0.32			0.33			0.34			0.30			0.34
Net Realized and Unrealized Gain (Loss)		(0.32	)		1.53			(0.37	)		0.53			(0.39	)		0.73
Total from Investment Operations		(0.17	)		1.85			(0.04	)		0.87			(0.09	)		1.07
Distributions from and/or in Excess of:
Net Investment Income		(0.16	)		(0.32	)		(0.27	)		(0.28	)		(0.30	)		(0.42	)
Net Asset Value, End of Period	$	12.01		$	12.34		$	10.81		$	11.12		$	10.53		$	10.92
Total Return (3)		(1.33	)%(4)(9)		17.41	%(5)		(0.37	)%		8.43	%		(0.83	)%		10.69	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	8,049		$	6,916		$	544		$	405		$	1,194		$	961
Ratio of Expenses to Average Net Assets (11)		1.03	%(6)(10)		0.99	%(6)		1.05	%(6)		1.05	%(6)		1.34	%(6)(7)		1.15	%(6)
Ratio of Net Investment Income to Average Net Assets (11)		2.54	%(6)(10)		2.78	%(6)		2.98	%(6)		3.12	%(6)		2.76	%(6)(7)		3.26	%(6)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(10)		0.01	%		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.00	%(8)
Portfolio Turnover Rate		17	%(9)		41	%		45	%		50	%		63	%		129	%
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.45	%(10)		1.51	%		1.88	%		1.60	%		1.47	%		1.25	%
Net Investment Income to Average Net Assets		2.12	%(10)		2.26	%		2.15	%		2.57	%		2.63	%		3.16	%

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

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

(4)  Performance was positively impacted by approximately 0.41% due to the receipt of proceeds from the settlement of a class action suit involving the Fund'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 (1.74)%.

(5)  Performance was positively impacted by approximately 8.97% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 8.44%.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  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.

(8)  Amount is less than 0.005%.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Corporate Bond Portfolio

	Class L
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			2012
Net Asset Value, Beginning of Period	$	12.32		$	10.79		$	11.11		$	10.52		$	10.92		$	10.26
Income (Loss) from Investment Operations:
Net Investment Income (2)		0.13			0.30			0.30			0.31			0.26			0.30
Net Realized and Unrealized Gain (Loss)		(0.32	)		1.51			(0.37	)		0.54			(0.40	)		0.74
Total from Investment Operations		(0.19	)		1.81			(0.07	)		0.85			(0.14	)		1.04
Distributions from and/or in Excess of:
Net Investment Income		(0.14	)		(0.28	)		(0.25	)		(0.26	)		(0.26	)		(0.38	)
Net Asset Value, End of Period	$	11.99		$	12.32		$	10.79		$	11.11		$	10.52		$	10.92
Total Return (3)		(1.53	)%(4)(9)		17.06	%(5)		(0.65	)%		8.15	%		(1.28	)%		10.38	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,876		$	2,151		$	2,163		$	2,405		$	2,649		$	3,149
Ratio of Expenses to Average Net Assets (11)		1.32	%(6)(10)		1.33	%(6)		1.31	%(6)		1.30	%(6)		1.69	%(6)(7)		1.50	%(6)
Ratio of Net Investment Income to Average Net Assets (11)		2.24	%(6)(10)		2.64	%(6)		2.72	%(6)		2.87	%(6)		2.40	%(6)(7)		2.91	%(6)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(10)		0.01	%		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.00	%(8)
Portfolio Turnover Rate		17	%(9)		41	%		45	%		50	%		63	%		129	%
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.64	%(10)		1.75	%		1.73	%		1.66	%		1.70	%		N/A
Net Investment Income to Average Net Assets		1.92	%(10)		2.22	%		2.30	%		2.51	%		2.39	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  Performance was positively impacted by approximately 0.41% due to the receipt of proceeds from the settlement of a class action suit involving the Fund'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 L shares would have been approximately (1.94)%.

(5)  Performance was positively impacted by approximately 9.05% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 8.01%.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  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.

(8)  Amount is less than 0.005%.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Corporate Bond Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)			Period from April 30, 2015(2) to September 30, 2015
Net Asset Value, Beginning of Period	$	12.27		$	10.77		$	11.21
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.11			0.22			0.10
Net Realized and Unrealized Gain (Loss)		(0.32	)		1.53			(0.48	)
Total from Investment Operations		(0.21	)		1.75			(0.38	)
Distributions from and/or in Excess of:
Net Investment Income		(0.11	)		(0.25	)		(0.06	)
Net Asset Value, End of Period	$	11.95		$	12.27		$	10.77
Total Return (4)		(1.74	)%(5)(9)		16.47	%(6)		(3.40	)%(9)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	211		$	126		$	10
Ratio of Expenses to Average Net Assets (11)		1.79	%(7)(10)		1.79	%(7)		1.80	%(7)(10)
Ratio of Net Investment Income to Average Net Assets (11)		1.77	%(7)(10)		1.90	%(7)		2.25	%(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(10)		0.01	%		0.00	%(8)(10)
Portfolio Turnover Rate		17	%(9)		41	%		45	%(9)
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		3.17	%(10)		4.45	%		38.20	%(10)
Net Investment Income (Loss) to Average Net Assets		0.39	%(10)		(0.76	)%		(34.15	)%(10)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

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

(5)  Performance was positively impacted by approximately 0.41% due to the receipt of proceeds from the settlement of a class action suit involving the Fund'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 (2.15)%.

(6)  Performance was positively impacted by approximately 8.85% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 7.62%.

(7)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(8)  Amount is less than 0.005%.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Trust is comprised of nine separate, active funds (individually referred to as a "Fund", collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

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

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

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 Trust 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/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads, and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges; (2) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (3) over-the-counter ("OTC") swaps may be valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may

be valued using the closing price provided by the clearinghouse or exchange; (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; and (5) 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.

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

The Trust 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

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value 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 Fund's investments as of March 31, 2017.

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	$	—		$	275		$	—	$	275
Corporate Bonds		—			41,846			—		41,846
Sovereign		—			199			—		199
Total Fixed Income Securities		—			42,320			—		42,320
Short-Term Investments
Investment Company		1,962			—			—		1,962
U.S. Treasury Security		—			359			—		359
Total Short-Term Investments		1,962			359			—		2,321
Futures Contracts		5			—			—		5
Interest Rate Swap Agreements		—			5			—		5
Total Assets		1,967			42,684			—		44,651
Liabilities:
Futures Contracts		(13	)		—			—		(13	)
Credit Default Swap Agreement		—			(7	)		—		(7	)
Interest Rate Swap Agreement		—			(10	)		—		(10	)
Total Liabilities		(13	)		(17	)		—		(30	)
Total	$	1,954		$	42,667		$	—	$	44,621

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of March 31, 2017, the Fund did not have any investments transfer between investment levels.

3.  Derivatives: The Fund 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 Fund'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 Fund 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 Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund'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 Fund used during the period and their associated risks:

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Fund'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 Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

Swaps: The Fund 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 Fund'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

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

may help reduce counterparty credit risk. In a cleared swap, the Fund'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 Fund 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 Fund'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 Fund may be either the buyer or seller in a credit default swap. Where the Fund 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 Fund 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 Fund 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 Fund if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 Fund'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.

When the Fund has an unrealized loss on a swap agreement, the Fund 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,

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

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

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

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2017.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contract	Variation Margin on Futures Contracts	Interest Rate Risk	$	5	(a)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		5	(a)
Total			$	10
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk	$	(13	)(a)
Swap Agreement	Unrealized Depreciation on Swap Agreement	Credit Risk		(7	)
Swap Agreement	Variation Margin on Swap Agreement	Interest Rate Risk		(10	)(a)
Total			$	(30	)

(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 Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 31, 2017 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	107
Credit Risk	Swap Agreements		(2	)
Interest Rate Risk	Swap Agreements		5
Total		$	110

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(1	)
Credit Risk	Swap Agreements		2
Interest Rate Risk	Swap Agreements		(5	)
Total		$	(4	)

At March 31, 2017, the Fund'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	$	—	$	(7	)

(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 Fund 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 Fund 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 Fund 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 Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

defined in the Master Agreement, the return of collateral with market value in excess of the Fund'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, 2017.

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	$	7	$	—	$	—	$	7

For the six months ended March 31, 2017, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	11,675,000
Swap Agreements:
Average monthly notional amount	$	1,704,000

4.  Securities Lending: The Fund 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 Fund. The Fund would receive cash or securities as collateral in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Fund'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 Fund 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, 2017.

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)
$	1,593	(d)	$	—	$	(1,593	)(e)(f)	$	0

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

(e) The Fund received cash collateral of approximately $620,000, which was subsequently invested in Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $1,004,000 in the form of U.S. Government obligations, which the Fund 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.

FASB Accounting Standards Update No. 2014-11 ("ASU No. 2014-11"), "Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures", 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.

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, 2017.

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Corporate Bonds	$	620	$	—	$	—	$	—	$	620
Total Borrowings	$	620	$	—	$	—	$	—	$	620
Gross amount of recognized liabilities for securities lending transactions									$	620

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

5.  When-Issued/Delayed Delivery Securities: The Fund 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 Fund 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 Fund 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 Fund'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 Fund.

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

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

8.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund 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 Trust can be directly attributed to a

particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds 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. Included in Realized Gain (Loss) on Investments Sold are proceeds from the one-time settlements of class action lawsuits involving the Fund's past holdings of approximately $187,000, the impact of which on the Fund's performance is disclosed in the Financial Highlights.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.375% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund 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 Fund'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, 2017, approximately $64,000 of advisory fees were waived and approximately $17,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

Distributor of Fund shares pursuant to a Distribution Agreement. The Trust 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 Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund'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 Fund to the extent it exceeds 0.15% of the average daily net assets of such shares on an annualized basis. For the six months ended March 31, 2017, this waiver amounted to approximately $4,000.

The Trust 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 Fund 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 Fund's average daily net assets attributable to Class L shares.

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

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Trust 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, 2017, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $11,701,000 and $6,438,000, respectively. For the six months ended March 31, 2017, there were no purchases of long-term U.S. Government securities and sales of long-term U.S. Government securities were approximately $370,000.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government 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 Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2017, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of the Liquidity Funds during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2017 (000)
$	3,066	$	9,090	$	10,194	$	3	$	1,962

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2017, the Fund did not engage in any cross-trade transactions.

The Fund 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

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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 Fund.

H. Federal Income Taxes: It is the Fund'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 Fund 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 Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund 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, 2016, 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 2016 and 2015 was as follows:

2016 Distributions Paid From: Ordinary Income (000)		2015 Distributions Paid From: Ordinary Income (000)
$	1,065	$	1,089

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

Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains

(losses) on certain investment transactions and the timing of the deductibility of certain expenses.

Permanent differences, primarily due to basis adjustments, resulted in the following reclassifications among the components of net assets at September 30, 2016:

Accumulated Undistributed Net Investment Income (000)			Accumulated Net Realized Loss (000)		Paid-in- Capital (000)
$	(15	)	$	15	$	—

At September 30, 2016, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	483	$	—

At September 30, 2016, the Fund had available for federal income tax purposes unused capital losses which will expire on the indicated dates:

Amount (000)		Expiration
$	45,370	September 30, 2017
	8,130	September 30, 2018

To the extent that capital loss carryforwards are used to offset any future capital gains realized during the carryover period as provided by U.S. federal income tax regulations, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders. During the year ended September 30, 2016, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $2,729,000.

Capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year are deemed to arise on the first day of the Fund's next taxable year. For the year ended September 30, 2016, the Fund deferred to October 1, 2016 for U.S. federal income tax purposes the following losses:

Post-October Currency and Specified Ordinary Losses (000)		Post-October Capital Losses (000)
$	—	$	333

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $150,000,000 committed, unsecured revolving line of credit facility (the "facility") with State Street. This facility is to be used for temporary emergency purposes or

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or one month libor rate plus a spread. The facility also has a commitment fee of 0.25% per annum based on the unused portion of the facility. During the six months ended March 31, 2017, the Fund did not have any borrowings under the facility.

J. Other: At March 31, 2017, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 62.1%.

K. Accounting Pronouncement: In October 2016, the Securities and Exchange Commission ("SEC") issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the Fund's net assets or results of operations. Although still evaluating the potential impacts of the Investment Company Reporting Modernization to the Fund, management expects that the impact of the Fund's adoption will be limited to additional financial statement disclosures.

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited)

MORGAN STANLEY INVESTMENT MANAGEMENT INC.
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

We are required by federal law to provide you with a copy of our privacy policy annually. This policy applies to current and former individual investors in funds managed or sponsored by Morgan Stanley Investment Management Inc. ("MSIM") as well as current and former individual clients of MSIM. This policy is not applicable to partnerships, corporations, trusts or other non-individual clients or investors. Please note that we may amend this policy at any time, and will inform you of any changes as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Notice describes what non-public personal information we collect about you, why 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 to affiliated companies in the Morgan Stanley family of companies ("other Morgan Stanley companies"). It also discloses how you may limit use of certain shared information for marketing purposes by other Morgan Stanley branded companies. Throughout this policy, we refer to the non-public information that personally identifies you or your accounts as "personal information.''

1.  WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?

We obtain personal information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources.

For example:

•  We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through subscription documents, 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.

•  If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies." Please consult the Terms of Use of these sites for more details.

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

We may disclose personal information we collect about you to other Morgan Stanley companies and to non-affiliated third parties.

a. Information We Disclose to Other Morgan Stanley Companies.

We may disclose personal information to other Morgan Stanley companies for a variety of reasons, including to manage your account(s) effectively, to service and process your transactions, to let you know about products and services offered by us and other Morgan Stanley companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from other Morgan Stanley companies are developed under conditions designed to safeguard your personal information.

30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

b. Information We Disclose to Non-affiliated Third Parties.

We do not disclose personal information that we collect about you to non-affiliated third parties except to those who provide marketing services on our behalf, to financial institutions with whom we have joint marketing agreements, and as otherwise required or permitted by law. For example, we may disclose personal information to nonaffiliated third parties for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with a non-affiliated third party, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information 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 to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information.

4.  HOW CAN YOU LIMIT THE SHARING OF CERTAIN TYPES OF PERSONAL INFORMATION WITH OTHER MORGAN STANLEY COMPANIES?

We offer you choices as to whether we share with other Morgan Stanley companies the personal information that was collected to determine your eligibility for products and services you request ("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 other Morgan Stanley companies ("opt-out"), we may still share personal information, including eligibility information, with those companies in circumstances excluded from the opt-out under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN TYPES OF PERSONAL INFORMATION BY OTHER MORGAN STANLEY COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit other Morgan Stanley branded 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 Other Morgan Stanley Companies from using personal information about you that we may share with them for marketing their products and services to you, Other Morgan Stanley Companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the Other Morgan Stanley Company has its own relationship with you.

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

If you wish to limit our sharing of eligibility information about you with other Morgan Stanley companies or other Morgan Stanley 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

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

Your written 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 if 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.

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 have a joint account, your direction for us not to share this information with other Morgan Stanley companies and for those other Morgan Stanley companies not to use your personal information for marketing will be applied to all account holders on that 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 Morgan Stanley products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

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

If, at any time in the future, an affiliated company becomes a non-affiliated 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 non-affiliated 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 non-affiliated 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 affiliated companies and non-affiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with non-affiliated third parties or other Morgan Stanley companies unless you provide us with your written consent to share such information ("opt-in").

If you wish to receive offers for investment products and services offered by or through other Morgan Stanley companies, please notify us in writing at the following address:

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

Your authorization should include your name, address, telephone number and account number(s) to which the opt-in applies and should not be sent with any other correspondence. In order to process your authorization, we require that the authorization be provided by you directly and not through a third party.

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 information with our affiliates to comply with California privacy laws that apply to us.

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Trustee and Officer Information (unaudited)

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

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

Perkins Coie LLP
30 Rockefeller Plaza
New York, New York 10112

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, 100 F Street, NE, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust 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 or summary prospectus of the applicable Fund of Morgan Stanley Institutional Fund Trust, which describes in detail the Fund'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 Fund, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

33

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

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

© 2017 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTCBSAN
1784090 EXP 05.31.18

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Multi-Asset Income Portfolio

Semi-Annual Report

March 31, 2017

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Table of Contents

Shareholders' Letter	2
Consolidated Expense Example	3
Consolidated Portfolio of Investments	4
Consolidated Statement of Assets and Liabilities	24
Consolidated Statement of Operations	26
Consolidated Statements of Changes in Net Assets	27
Consolidated Financial Highlights	28
Notes to Consolidated Financial Statements	32
Privacy Notice	46
Trustee and Officer Information	49

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund 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 Fund'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 Fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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 "Fund") 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 2017

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Expense Example (unaudited)

Global Multi-Asset Income Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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, 2017 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund'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 Fund 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 10/1/16		Actual Ending Account Value 3/31/17		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	$	991.40	$	1,020.29	$	4.62	$	4.68		0.93	%
Global Multi-Asset Income Portfolio Class A		1,000.00		990.60		1,018.60		6.30		6.39		1.27
Global Multi-Asset Income Portfolio Class C		1,000.00		986.70		1,014.81		10.05		10.20		2.03
Global Multi-Asset Income Portfolio Class IS		1,000.00		992.70		1,020.59		4.32		4.38		0.87

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments

Global Multi-Asset Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (48.7%)
Agency Fixed Rate Mortgages (3.7%)
United States (3.7%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
3.50%, 2/1/45	$	45	$	47
Federal National Mortgage Association,
April TBA:
3.00%, 4/1/32 (a)		62		63
3.50%, 4/1/47 (a)		204		209
4.00%, 4/1/47 (a)		160		168
Conventional Pools:
4.50%, 10/1/44 - 11/1/44		50		53
				540
Commercial Mortgage-Backed Securities (1.2%)
United States (1.2%)
GS Mortgage Securities Trust,
4.76%, 8/10/46 (b)(c)		70		67
Wells Fargo Commercial Mortgage Trust,
4.10%, 5/15/48 (b)		51		43
WF-RBS Commercial Mortgage Trust,
4.14%, 5/15/45 (b)(c)		40		36
4.48%, 8/15/46 (b)(c)		35		31
				177
Corporate Bonds (10.8%)
Australia (0.7%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	50		60
Commonwealth Bank of Australia,
1.75%, 11/7/19 (c)	$	25		24
Transurban Finance Co., Pty Ltd.,
4.13%, 2/2/26 (c)		25		26
				110
Belgium (0.2%)
Anheuser-Busch InBev Finance, Inc.,
4.70%, 2/1/36		25		27
Canada (0.2%)
Royal Bank of Canada,
2.75%, 2/1/22		25		25
France (0.4%)
BNP Paribas SA,
5.00%, 1/15/21		50		54
Israel (0.1%)
Teva Pharmaceutical Finance Netherlands III BV,
2.20%, 7/21/21		10		10
Netherlands (0.8%)
ABN Amro Bank N.V.,
3.63%, 10/6/17	EUR	50		54
Cooperatieve Rabobank UA,
3.75%, 11/9/20		50		60
				114

	Face Amount (000)		Value (000)
United Kingdom (0.7%)
Barclays Bank PLC,
6.00%, 1/23/18	EUR	50	$	56
Diageo Capital PLC,
1.50%, 5/11/17	$	50		50
				106
United States (7.7%)
Abbott Laboratories,
3.40%, 11/30/23		25		25
Air Lease Corp.,
2.13%, 1/15/20		25		25
Apple, Inc.,
2.50%, 2/9/22		50		50
4.45%, 5/6/44		25		26
AT&T, Inc.,
4.13%, 2/17/26		50		51
Bank of America Corp.,
Series G
3.50%, 4/19/26		25		25
Boston Properties LP,
3.85%, 2/1/23		50		52
Charter Communications Operating LLC/Charter Communications Operating Capital,
4.91%, 7/23/25		25		26
Citigroup, Inc.,
5.50%, 9/13/25		50		55
General Motors Financial Co., Inc.,
4.30%, 7/13/25		5		5
Goldman Sachs Group, Inc. (The),
6.75%, 10/1/37		50		62
HSBC USA, Inc.,
3.50%, 6/23/24		100		102
JPMorgan Chase & Co.,
3.20%, 6/15/26		25		24
McDonald's Corp.,
MTN
3.38%, 5/26/25		50		51
Merck & Co., Inc.,
2.80%, 5/18/23		50		50
Microsoft Corp.,
1.55%, 8/8/21		25		24
Monongahela Power Co.,
5.40%, 12/15/43 (c)		50		59
MPLX LP,
4.00%, 2/15/25		50		50
NBC Universal Media LLC,
4.38%, 4/1/21		50		54
Omnicom Group, Inc.,
3.63%, 5/1/22		50		52
PepsiCo, Inc.,
1.70%, 10/6/21		25		24

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
Prudential Financial, Inc.,
MTN
6.63%, 12/1/37	$	50	$	65
Time Warner, Inc.,
3.88%, 1/15/26		25		25
UnitedHealth Group, Inc.,
2.88%, 3/15/23		25		25
Verizon Communications, Inc.,
3.50%, 11/1/24		25		25
Visa, Inc.,
3.15%, 12/14/25		25		25
Wal-Mart Stores, Inc.,
2.55%, 4/11/23		25		25
Wells Fargo & Co.,
3.00%, 10/23/26		50		48
				1,130
				1,576
Sovereign (28.1%)
Australia (1.5%)
Australia Government Bond,
2.75%, 11/21/27	AUD	50		38
3.25%, 4/21/25		225		180
				218
Austria (0.2%)
Austria Government Bond,
1.20%, 10/20/25 (c)	EUR	30		34
Belgium (1.4%)
Belgium Government Bond,
0.80%, 6/22/25 (c)		185		202
Brazil (0.6%)
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/21 - 1/1/23	BRL	295		95
Canada (2.5%)
Canadian Government Bond,
0.50%, 3/1/22	CAD	95		69
1.50%, 6/1/23		85		65
3.25%, 6/1/21		280		229
				363
France (0.7%)
France Government Bond OAT,
0.50%, 5/25/25	EUR	70		74
3.25%, 5/25/45		25		34
				108
Germany (2.9%)
Bundesrepublik Deutschland,
1.00%, 8/15/25		74		85
2.50%, 1/4/21		200		238
4.25%, 7/4/39		45		80
4.75%, 7/4/34		15		27
				430

	Face Amount (000)		Value (000)
Greece (0.2%)
Hellenic Republic Government Bond,
3.00%, 2/24/23 - 2/24/42 (d)	EUR	48	$	37
Hungary (0.2%)
Hungary Government International Bond,
5.75%, 11/22/23	$	30		34
Ireland (0.1%)
Ireland Government Bond,
5.40%, 3/13/25	EUR	10		14
Italy (1.7%)
Italy Buoni Poliennali Del Tesoro,
0.65%, 11/1/20		100		107
1.50%, 6/1/25		30		31
2.35%, 9/15/24 (c)		81		95
5.00%, 9/1/40		10		14
				247
Japan (8.2%)
Japan Government Ten Year Bond,
0.50%, 9/20/24	JPY	36,000		336
1.10%, 6/20/21		21,000		199
1.70%, 6/20/18		31,000		285
Japan Government Thirty Year Bond,
1.70%, 6/20/33 - 3/20/44		19,400		210
2.00%, 9/20/40		15,000		172
				1,202
Mexico (1.9%)
Mexican Bonos,
5.75%, 3/5/26	MXN	2,200		108
6.50%, 6/10/21		2,600		137
Petroleos Mexicanos,
4.88%, 1/18/24	$	20		20
6.38%, 1/23/45		10		10
				275
Netherlands (0.4%)
Netherlands Government Bond,
0.25%, 7/15/25 (c)	EUR	50		53
Poland (0.1%)
Poland Government Bond,
4.00%, 10/25/23	PLN	40		11
Portugal (0.8%)
Portugal Obrigacoes do Tesouro OT,
2.88%, 7/21/26 (c)	EUR	56		56
4.13%, 4/14/27 (c)		53		58
				114
Russia (0.5%)
Russian Federal Bond - OFZ,
7.00%, 8/16/23	RUB	4,200		72
South Africa (0.4%)
South Africa Government Bond,
8.00%, 1/31/30	ZAR	930		63

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Face Amount (000)		Value (000)
Spain (1.2%)
Spain Government Bond,
0.75%, 7/30/21	EUR	50	$	55
1.30%, 10/31/26 (c)		5		5
1.95%, 7/30/30 (c)		60		63
Spain Government Inflation Linked Bond,
1.00%, 11/30/30 (c)		40		44
1.80%, 11/30/24 (c)		10		12
				179
United Kingdom (2.6%)
United Kingdom Gilt,
1.50%, 1/22/21	GBP	30		39
2.75%, 9/7/24		95		136
4.25%, 6/7/32 - 9/7/39		112		199
				374
				4,125
U.S. Treasury Securities (4.9%)
United States (4.9%)
U.S. Treasury Bonds,
2.50%, 2/15/45	$	170		153
3.50%, 2/15/39		8		9
3.88%, 8/15/40		12		14
U.S. Treasury Notes,
1.38%, 1/31/21		160		158
2.13%, 5/15/25		315		310
2.38%, 6/30/18		70		71
				715
Total Fixed Income Securities (Cost $7,193)				7,133
	Shares
Common Stocks (34.9%)
Australia (1.3%)
AGL Energy Ltd.		77		1
Alumina Ltd.		272		—	@
Amcor Ltd.		130		1
AMP Ltd.		328		1
APA Group		1,120		8
Aristocrat Leisure Ltd.		60		1
ASX Ltd.		21		1
Aurizon Holdings Ltd.		229		1
AusNet Services		1,706		2
Australia & New Zealand Banking Group Ltd.		329		8
Bank of Queensland Ltd.		43		—	@
Bendigo and Adelaide Bank Ltd.		52		—	@
BHP Billiton Ltd.		349		6
Boral Ltd.		130		1
Brambles Ltd.		178		1
BWP Trust REIT		257		1
Caltex Australia Ltd.		30		1
Challenger Ltd.		64		1
Charter Hall Retail REIT		179		1
CIMIC Group Ltd.		11		—	@

	Shares		Value (000)
Coca-Cola Amatil Ltd.		64	$	1
Cochlear Ltd.		6		1
Commonwealth Bank of Australia		190		12
Computershare Ltd.		52		1
Cromwell Property Group		784		1
Crown Resorts Ltd.		40		—	@
CSL Ltd.		50		5
Dexus Property Group REIT		621		5
Domino's Pizza Enterprises Ltd.		7		—	@
DUET Group		2,706		6
Flight Centre Travel Group Ltd.		6		—	@
Fortescue Metals Group Ltd.		169		1
Goodman Group REIT		1,144		7
GPT Group REIT		1,152		4
Harvey Norman Holdings Ltd.		61		—	@
Healthscope Ltd.		188		—	@
Incitec Pivot Ltd.		188		1
Insurance Australia Group Ltd.		270		1
Investa Office Fund REIT		299		1
James Hardie Industries PLC CDI		50		1
Lend Lease Group REIT		62		1
Macquarie Atlas Roads Group		401		2
Macquarie Group Ltd.		34		2
Medibank Pvt Ltd.		307		1
Mirvac Group REIT		2,374		4
National Australia Bank Ltd.		298		8
Newcrest Mining Ltd.		83		1
Oil Search Ltd.		151		1
Orica Ltd.		42		1
Origin Energy Ltd.		195		1
Qantas Airways Ltd.		54		—	@
QBE Insurance Group Ltd.		154		1
Ramsay Health Care Ltd.		16		1
REA Group Ltd.		6		—	@
Rio Tinto Ltd.		46		2
Santos Ltd.		200		1
Scentre Group REIT		3,303		11
Seek Ltd.		37		—	@
Shopping Centres Australasia Property Group REIT		636		1
Sonic Healthcare Ltd.		45		1
South32 Ltd.		580		1
Spark Infrastructure Group		1,496		3
Stockland REIT		1,564		5
Suncorp Group Ltd.		143		1
Sydney Airport		1,111		6
Tabcorp Holdings Ltd.		92		—	@
Tatts Group Ltd.		161		1
Telstra Corp., Ltd.		474		2
TPG Telecom Ltd.		38		—	@
Transurban Group		2,012		18
Treasury Wine Estates Ltd.		82		1
Vicinity Centres REIT		2,115		5
Vocus Group Ltd.		58		—	@

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Australia (cont'd)
Wesfarmers Ltd.		125	$	4
Westfield Corp. REIT		1,252		8
Westpac Banking Corp.		373		10
Woodside Petroleum Ltd.		85		2
Woolworths Ltd.		141		3
				194
Austria (0.1%)
BUWOG AG (e)		49		1
CA Immobilien Anlagen AG (e)		38		1
Conwert Immobilien Invest SE (e)		39		1
Erste Group Bank AG		119		4
Raiffeisen Bank International AG (e)		50		1
				8
Belgium (0.2%)
Aedifica SA REIT		7		1
Anheuser-Busch InBev N.V.		147		16
Befimmo SA REIT		10		1
Cofinimmo SA REIT		11		1
Elia System Operator SA		26		1
Intervest Offices & Warehouses REIT		8		—	@
KBC Group N.V.		185		12
Leasinvest Real Estate SCA		1		—	@
Warehouses De Pauw CVA		9		1
Wereldhave Belgium		1		—	@
				33
Brazil (0.0%)
Cia de Saneamento Basico do Estado de Sao Paulo ADR		300		3
Canada (2.1%)
Alimentation Couche-Tard, Inc., Class B		100		5
ARC Resources Ltd.		100		1
Artis Real Estate Investment Trust REIT		100		1
Bank of Montreal		100		7
Bank of Nova Scotia		200		12
Barrick Gold Corp.		100		2
Blackberry Ltd. (e)		100		1
Brookfield Asset Management, Inc., Class A		100		4
Brookfield Business Partners LP		2		—	@
Cameco Corp.		100		1
Canadian Apartment Properties REIT		100		3
Canadian Imperial Bank of Commerce		100		9
Canadian National Railway Co.		100		7
Canadian Natural Resources Ltd.		200		7
Cenovus Energy, Inc.		100		1
Chartwell Retirement Residences REIT (Units) (f)		100		1
Cominar Real Estate Investment Trust REIT		100		1
Dream Office Real Estate Investment Trust REIT		100		1
Enbridge Income Fund Holdings, Inc.		100		3
Enbridge, Inc.		590		25
Enbridge, Inc.		900		38
Encana Corp.		200		2

	Shares		Value (000)
First Capital Realty, Inc.		100	$	2
First Quantum Minerals Ltd.		100		1
Fortis, Inc.		500		17
Goldcorp, Inc.		200		3
H&R Real Estate Investment Trust REIT		200		3
Husky Energy, Inc. (e)		102		1
Hydro One Ltd. (c)		100		2
Imperial Oil Ltd.		100		3
Inter Pipeline Ltd.		400		8
Keyera Corp.		200		6
Magna International, Inc.		100		4
Manulife Financial Corp.		300		5
Pembina Pipeline Corp.		500		16
Potash Corp. of Saskatchewan, Inc.		100		2
Power Corp. of Canada		100		2
PrairieSky Royalty Ltd.		104		2
Pure Industrial Real Estate Trust		100		—	@
RioCan Real Estate Investment Trust REIT		200		4
Rogers Communications, Inc., Class B		100		4
Royal Bank of Canada		200		15
Shaw Communications, Inc., Class B		100		2
Silver Wheaton Corp.		100		2
Smart Real Estate Investment Trust REIT		100		2
Sun Life Financial, Inc.		100		4
Suncor Energy, Inc.		200		6
Teck Resources Ltd., Class B		100		2
Toronto-Dominion Bank (The)		100		5
TransCanada Corp.		900		42
Veresen, Inc.		300		3
Westshore Terminals Investment Corp.		100		2
				302
China (0.1%)
Beijing Capital International Airport Co., Ltd. H Shares (g)		2,000		2
Beijing Enterprises Holdings Ltd. (g)		500		3
China Gas Holdings Ltd. (g)		2,000		3
China Merchants Port Holdings Co., Ltd. (g)		20		—	@
Hanergy Thin Film Power Group Ltd. (e)(g)(h)(i)		2,000		—	@
Hopewell Highway Infrastructure Ltd. (g)		1,000		1
Hutchison Port Holdings Trust (Units) (f)		5,200		2
Jiangsu Expressway Co., Ltd. H Shares (g)		2,000		3
Yangzijiang Shipbuilding Holdings Ltd.		200		—	@
Zhejiang Expressway Co., Ltd. (g)		2,000		3
				17
Denmark (0.3%)
AP Moeller - Maersk A/S Series B		1		2
Carlsberg A/S Series B		12		1
Chr Hansen Holding A/S		11		1
Coloplast A/S Series B		13		1
Danske Bank A/S		76		3
DONG Energy A/S (c)		16		1
DSV A/S		289		15
Genmab A/S (e)		6		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Denmark (cont'd)
ISS A/S		289	$	11
Novo Nordisk A/S Series B		212		7
Novozymes A/S Series B		26		1
Pandora A/S		13		1
TDC A/S		90		—	@
Tryg A/S		12		—	@
Vestas Wind Systems A/S		25		2
William Demant Holding A/S (e)		13		—	@
				47
Finland (0.1%)
Citycon Oyj		209		—	@
Kone Oyj, Class B		87		4
Nokia Oyj		733		4
Sampo Oyj, Class A		117		5
Sponda Oyj		131		1
Technopolis Oyj		75		—	@
UPM-Kymmene Oyj		165		4
				18
France (4.5%)
Accor SA		796		33
Aeroports de Paris (ADP)		59		7
Affine SA REIT		4		—	@
Air Liquide SA		74		8
Airbus SE		108		8
ANF Immobilier REIT		4		—	@
Atos SE		213		26
AXA SA		334		9
BNP Paribas SA		644		43
Bouygues SA		577		23
Cap Gemini SA		436		40
Carrefour SA		130		3
Cie de Saint-Gobain		1,340		69
Cie Generale des Etablissements Michelin		43		5
Credit Agricole SA		685		9
Danone SA		121		8
Engie SA		278		4
Essilor International SA		48		6
Eutelsat Communications SA		154		3
Fonciere Des Regions REIT		19		2
Gecina SA REIT		21		3
Groupe Eurotunnel SE		1,164		12
ICADE REIT		19		1
Kering		17		4
Klepierre REIT		110		4
L'Oreal SA		43		8
Legrand SA		78		5
LVMH Moet Hennessy Louis Vuitton SE		48		11
Mercialys SA REIT		22		—	@
Metropole Television SA		100		2
Natixis SA		401		2
Orange SA		364		6

	Shares		Value (000)
Pernod Ricard SA		48	$	6
Peugeot SA (e)		3,111		63
Publicis Groupe SA		52		4
Renault SA		43		4
Rexel SA		635		12
Safran SA		78		6
Sanofi		204		18
Schneider Electric SE		104		8
SES SA		419		10
Societe Generale SA		471		24
Sodexo SA		48		6
TechnipFMC PLC (e)		27		1
Television Francaise 1		352		4
Total SA		369		19
Unibail-Rodamco SE REIT		74		17
Valeo SA		69		5
Vinci SA		1,029		82
Vivendi SA		243		5
				658
Germany (2.0%)
Adidas AG		48		9
ADLER Real Estate AG (e)		13		—	@
ADO Properties SA (c)		16		1
Allianz SE (Registered)		78		14
Alstria Office AG REIT (e)		70		1
BASF SE		156		15
Bayer AG (Registered)		143		16
Bayerische Motoren Werke AG		56		5
Commerzbank AG		725		7
Continental AG		22		5
Daimler AG (Registered)		156		12
Deutsche Bank AG (Registered) (e)		269		5
Deutsche Boerse AG (e)		391		36
Deutsche Euroshop AG		24		1
Deutsche Post AG (Registered)		191		7
Deutsche Telekom AG (Registered)		547		10
Deutsche Wohnen AG		177		6
DIC Asset AG		23		—	@
Dream Global Real Estate Investment Trust REIT		100		1
E.ON SE		390		3
Fraport AG Frankfurt Airport Services Worldwide		120		8
Fresenius Medical Care AG & Co., KGaA		48		4
Fresenius SE & Co., KGaA		69		6
Grand City Properties SA		53		1
Hamborner REIT AG		41		—	@
HeidelbergCement AG		48		4
Henkel AG & Co., KGaA		30		3
Henkel AG & Co., KGaA (Preference)		39		5
Infineon Technologies AG		299		6
Johnson Electric Holdings Ltd. (g)		1,500		4
LEG Immobilien AG (e)		34		3
Linde AG		35		6
Merck KGaA		43		5

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Germany (cont'd)
Muenchener Rueckversicherungs AG (Registered)		35	$	7
Porsche Automobil Holding SE (Preference)		43		2
ProSiebenSat.1 Media SE (Registered)		436		19
RWE AG (e)		117		2
SAP SE		156		15
Siemens AG (Registered)		139		19
Stroeer SE & Co. KGaA		64		4
TAG Immobilien AG		76		1
ThyssenKrupp AG		139		3
TLG Immobilien AG		29		1
Uniper SE (e)		39		1
Volkswagen AG (Preference)		26		4
Vonovia SE		329		12
WCM Beteiligungs & Grundbesitz-AG (e)		47		—	@
				299
Guernsey (0.0%)
Regional REIT Ltd. (c)		120		—	@
Hong Kong (0.8%)
Beijing Enterprises Water Group Ltd.		4,000		3
Champion REIT		10,000		6
Cheung Kong Property Holdings Ltd.		1,500		10
Fortune Real Estate Investment Trust REIT		1,000		1
Great Eagle Holdings Ltd.		2,017		9
Hang Lung Group Ltd.		1,000		4
Hang Lung Properties Ltd.		1,000		3
Henderson Land Development Co., Ltd.		1,000		6
Hong Kong & China Gas Co., Ltd.		6,840		14
Hongkong & Shanghai Hotels Ltd. (The)		3,113		4
Hongkong Land Holdings Ltd.		600		5
Hopewell Holdings Ltd.		1,500		6
Kerry Properties Ltd.		500		2
Kowloon Development Co., Ltd. REIT		6,000		6
Link REIT		1,000		7
New World Development Co., Ltd.		3,394		4
Sino Land Co., Ltd.		2,000		3
Stella International Holdings Ltd.		1,500		2
Sun Hung Kai Properties Ltd.		1,000		15
Swire Properties Ltd.		600		2
Towngas China Co. Ltd. (e)		1,000		1
Wharf Holdings Ltd. (The)		1,000		8
				121
Indonesia (0.0%)
Golden Agri-Resources Ltd.		800		—	@
Ireland (0.2%)
Bank of Ireland (e)		17,791		4
CRH PLC		697		25
Green REIT PLC		362		1
Hibernia REIT PLC		365		1
Irish Residential Properties REIT PLC		188		—	@
Kerry Group PLC, Class A		30		2
				33

	Shares		Value (000)
Italy (1.3%)
ACEA SpA		40	$	1
Assicurazioni Generali SpA		252		4
Atlantia SpA		1,779		46
Beni Stabili SpA REIT		560		—	@
Ei Towers SpA		15		1
Enel SpA		1,336		6
Eni SpA		494		8
Ferrari N.V.		17		1
Immobiliare Grande Distribuzione SIIQ SpA		193		—	@
Infrastrutture Wireless Italiane SpA (c)		213		1
Intesa Sanpaolo SpA		398		1
Intesa Sanpaolo SpA		7,816		21
Italgas SpA (e)		567		3
Luxottica Group SpA		52		3
Mediaset SpA		2,834		12
Mediobanca SpA		4,214		38
Rizzoli Corriere Della Sera Mediagroup SpA (e)		13		—	@
Snam SpA		2,793		12
Societa Iniziative Autostradali e Servizi SpA		60		1
Telecom Italia SpA (e)		2,529		2
Terna Rete Elettrica Nazionale SpA		1,255		6
UniCredit SpA		1,082		17
Unione di Banche Italiane SpA		377		1
				185
Japan (0.7%)
Advance Residence Investment Corp. REIT		1		3
Aeon Mall Co., Ltd.		100		2
AEON REIT Investment Corp.		1		1
Daiwahouse Residential Investment Corp. REIT		1		3
GLP J-REIT		1		1
Hulic Co., Ltd.		200		2
Invincible Investment Corp. REIT		2		1
Japan Airport Terminal Co., Ltd.		100		4
Japan Excellent, Inc. REIT		1		1
Japan Hotel REIT Investment Corp.		2		1
Japan Real Estate Investment Corp. REIT		1		5
Japan Rental Housing Investments, Inc. REIT		1		1
Japan Retail Fund Investment Corp. REIT		1		2
Mitsubishi Estate Co., Ltd.		1,000		18
Mitsui Fudosan Co., Ltd.		1,000		21
Mori Hills Investment Corp. REIT		1		1
Mori Trust Sogo REIT, Inc.		1		2
Nippon Building Fund, Inc. REIT		1		5
Nippon Prologis, Inc. REIT		1		2
Nomura Real Estate Holdings, Inc.		100		2
Nomura Real Estate Master Fund, Inc.		2		3
NTT Urban Development Corp.		100		1
Orix, Inc. J-REIT		1		2
Premier Investment Corp. REIT		1		1
Sekisui House SI Residential Investment Corp. REIT		1		1
Tokyo Gas Co., Ltd.		2,000		9

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Japan (cont'd)
Tokyo Tatemono Co., Ltd.		100	$	1
United Urban Investment Corp. REIT		2		3
				99
Netherlands (0.9%)
ABN AMRO Group N.V. CVA (c)		101		2
Aegon N.V.		451		2
Akzo Nobel N.V.		69		6
ArcelorMittal (e)		273		2
ASML Holding N.V.		56		7
Eurocommercial Properties N.V. CVA REIT		23		1
Fiat Chrysler Automobiles N.V. (e)		187		2
Heineken N.V.		56		5
ING Groep N.V.		2,324		35
Koninklijke KPN N.V.		859		3
Koninklijke Philips N.V.		213		7
Koninklijke Vopak N.V.		59		3
Priceline Group, Inc. (The) (e)		2		4
Randstad Holding N.V.		515		30
RELX N.V.		299		5
Unilever N.V. CVA		278		14
Vastned Retail N.V. REIT		10		—	@
Wereldhave N.V. REIT		21		1
Wolters Kluwer N.V.		121		5
				134
New Zealand (0.1%)
Auckland International Airport Ltd.		938		4
Contact Energy Ltd.		93		—	@
Fletcher Building Ltd.		88		1
Kiwi Property Group Ltd.		684		1
Mercury NZ Ltd.		90		—	@
Meridian Energy Ltd.		167		—	@
Ryman Healthcare Ltd.		49		—	@
Spark New Zealand Ltd.		232		1
				7
Norway (0.0%)
Entra ASA (c)		50		1
Norwegian Property ASA		87		—	@
				1
Portugal (0.0%)
EDP - Energias de Portugal SA		985		3
Singapore (0.2%)
Ascendas Real Estate Investment Trust REIT		1,500		3
CapitaLand Commercial Trust Ltd. REIT		1,300		1
CapitaLand Ltd.		1,700		4
CapitaLand Mall Trust REIT		1,700		2
CDL Hospitality Trusts REIT		300		—	@
City Developments Ltd.		300		2
ComfortDelGro Corp., Ltd.		200		—	@
DBS Group Holdings Ltd.		200		3
Genting Singapore PLC		700		1
Keppel Corp., Ltd.		200		1

	Shares		Value (000)
Keppel REIT		1,000	$	1
Mapletree Commercial Trust REIT		1,000		1
Mapletree Industrial Trust REIT		700		1
Mapletree Logistics Trust REIT		800		1
Oversea-Chinese Banking Corp., Ltd.		400		3
SATS Ltd.		100		—	@
Seagate Technology PLC		13		1
SembCorp Industries Ltd.		100		—	@
Singapore Airlines Ltd.		100		1
Singapore Exchange Ltd.		100		1
Singapore Technologies Engineering Ltd.		200		1
Singapore Telecommunications Ltd.		900		2
StarHub Ltd.		100		—	@
Suntec REIT		1,600		2
United Overseas Bank Ltd.		100		1
UOL Group Ltd.		400		2
Wilmar International Ltd.		200		1
				36
Spain (1.4%)
Abertis Infraestructuras SA		524		8
Aena SA (c)		66		11
Amadeus IT Holding SA, Class A		117		6
Axiare Patrimonio SOCIMI SA REIT		31		1
Banco Bilbao Vizcaya Argentaria SA		4,041		31
Banco de Sabadell SA		3,561		7
Banco Popular Espanol SA		1,424		1
Banco Santander SA		8,559		53
Bankia SA		1,963		2
Bankinter SA		286		2
CaixaBank SA		1,856		8
Cellnex Telecom SA (c)		138		2
Enagas SA		202		5
Ferrovial SA		482		10
Hispania Activos Inmobiliarios SAU REIT		48		1
Iberdrola SA		1,284		9
Industria de Diseno Textil SA		204		7
Inmobiliaria Colonial SA		124		1
Lar Espana Real Estate Socimi SA		46		—	@
Mediaset Espana Comunicacion SA		896		12
Merlin Properties Socimi SA REIT		174		2
Red Electrica Corp., SA		385		7
Repsol SA		321		5
Telefonica SA		841		9
				200
Sweden (0.1%)
Castellum AB		141		2
D Carnegie & Co. AB (e)		24		—	@
Dios Fastigheter AB		25		—	@
Fabege AB		71		1
Fastighets AB Balder (e)		50		1
Hemfosa Fastigheter AB		50		1
Hufvudstaden AB, Class A		59		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Sweden (cont'd)
Klovern AB, Class B		295	$	—	@
Kungsleden AB		84		1
Pandox AB		28		—	@
Wallenstam AB, Class B		105		1
Wihlborgs Fastigheter AB		35		1
				9
Switzerland (1.2%)
ABB Ltd. (Registered)		217		5
Adecco Group AG (Registered)		666		47
Allreal Holding AG (Registered) (e)		5		1
Aryzta AG (e)		9		—	@
Baloise Holding AG (Registered)		6		1
Cie Financiere Richemont SA (Registered)		60		5
Credit Suisse Group AG (Registered) (e)		225		3
Dufry AG (Registered) (e)		5		1
EMS-Chemie Holding AG (Registered)		1		1
Flughafen Zuerich AG (Registered)		17		4
Geberit AG (Registered)		4		2
Givaudan SA (Registered)		1		2
Julius Baer Group Ltd. (e)		26		1
Kuehne & Nagel International AG (Registered)		6		1
LafargeHolcim Ltd. (Registered) (e)		53		3
Lonza Group AG (Registered) (e)		7		1
Mobimo Holding AG (Registered) (e)		3		1
Nestle SA (Registered)		359		28
Novartis AG (Registered)		257		19
Pargesa Holding SA		4		—	@
Partners Group Holding AG		2		1
PSP Swiss Property AG (Registered)		21		2
Roche Holding AG (Genusschein)		81		21
Schindler Holding AG		5		1
Schindler Holding AG (Registered)		2		—	@
SGS SA (Registered)		1		2
Sonova Holding AG (Registered)		6		1
Swatch Group AG (The)		4		1
Swatch Group AG (The) (Registered)		6		—	@
Swiss Life Holding AG (Registered) (e)		4		1
Swiss Prime Site AG (Registered) (e)		42		4
Swiss Re AG		38		3
Swisscom AG (Registered)		3		1
Syngenta AG (Registered)		11		5
UBS Group AG (Registered)		423		7
Zurich Insurance Group AG		17		5
				181
United Kingdom (2.7%)
Assura PLC REIT		877		1
AstraZeneca PLC		166		10
Aviva PLC		707		5
BAE Systems PLC		932		7
Barclays PLC		2,356		7
BHP Billiton PLC		312		5

	Shares		Value (000)
Big Yellow Group PLC REIT		76	$	1
BP PLC		2,445		14
British American Tobacco PLC		248		16
British Land Co., PLC REIT		548		4
BT Group PLC		1,276		5
Capital & Counties Properties PLC		396		1
Capital & Regional PLC		283		—	@
Compass Group PLC		488		9
Daejan Holdings PLC		3		—	@
Derwent London PLC REIT		53		2
Diageo PLC		351		10
Empiric Student Property PLC REIT		269		—	@
GlaxoSmithKline PLC		633		13
Glencore PLC (e)		1,632		6
Grainger PLC		219		1
Great Portland Estates PLC REIT		184		1
Hammerson PLC REIT		426		3
Hansteen Holdings PLC		396		1
Helical PLC		53		—	@
HSBC Holdings PLC		2,327		19
HSBC Holdings PLC (g)		1,249		10
Imperial Brands PLC		166		8
International Consolidated Airlines Group SA		4,421		29
Intu Properties PLC REIT		467		2
Kennedy Wilson Europe Real Estate PLC		53		1
Land Securities Group PLC REIT		420		6
Lloyds Banking Group PLC		7,870		7
Londonmetric Property PLC REIT		311		1
National Grid PLC		4,305		55
NewRiver REIT PLC		124		1
Next PLC		47		3
Pennon Group PLC		365		4
Primary Health Properties PLC REIT		301		—	@
Prudential PLC		462		10
Reckitt Benckiser Group PLC		103		9
Redefine International PLC		634		—	@
Rio Tinto PLC		186		7
Rolls-Royce Holdings PLC (e)		304		3
Royal Dutch Shell PLC, Class A		957		25
Safestore Holdings PLC REIT		110		1
Schroder Real Estate Investment Trust Ltd. REIT		276		—	@
Segro PLC REIT		442		3
Severn Trent PLC		212		6
Shaftesbury PLC REIT		127		1
Shire PLC		83		5
Target Healthcare REIT Ltd.		128		—	@
Taylor Wimpey PLC		1,417		3
Tesco PLC (e)		1,173		3
Tritax Big Box REIT PLC		584		1
Unilever PLC		218		11
Unite Group PLC		118		1
United Utilities Group PLC		608		8
Vodafone Group PLC		3,442		9

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
Wolseley PLC		107	$	7
Workspace Group PLC REIT		63		1
WPP PLC		379		8
				390
United States (14.6%)
3M Co.		21		4
Abbott Laboratories		346		15
AbbVie, Inc.		336		22
Accenture PLC, Class A		23		3
Actelion Ltd. (e)		11		3
Activision Blizzard, Inc.		26		1
Adobe Systems, Inc. (e)		20		3
Advanced Micro Devices, Inc. (e)		37		1
AES Corp.		27		—	@
Aetna, Inc.		28		4
Aflac, Inc.		22		2
Agilent Technologies, Inc.		35		2
Air Products & Chemicals, Inc.		10		1
Akamai Technologies, Inc. (e)		10		1
Alexion Pharmaceuticals, Inc. (e)		19		2
Allergan PLC		29		7
Alliance Data Systems Corp.		3		1
Alliant Energy Corp.		10		—	@
Allstate Corp. (The)		18		1
Alphabet, Inc., Class A (e)		11		9
Alphabet, Inc., Class C (e)		10		8
Altria Group, Inc.		360		26
Amazon.com, Inc. (e)		14		12
Ameren Corp.		11		1
American Campus Communities, Inc. REIT		100		5
American Electric Power Co., Inc.		46		3
American Express Co.		30		2
American Homes 4 Rent, Class A REIT		100		2
American International Group, Inc.		40		3
American Tower Corp. REIT		418		51
American Water Works Co., Inc.		207		16
Ameriprise Financial, Inc.		8		1
AmerisourceBergen Corp.		7		1
Amgen, Inc.		56		9
Amphenol Corp., Class A		22		2
Anadarko Petroleum Corp.		22		1
Analog Devices, Inc.		18		1
Anthem, Inc.		21		3
Aon PLC		13		2
Apache Corp.		18		1
Apartment Investment & Management Co., Class A REIT		100		4
Apple Hospitality REIT, Inc.		100		2
Apple, Inc.		187		27
Applied Materials, Inc.		44		2
Aqua America, Inc.		200		6
Archer-Daniels-Midland Co.		48		2

	Shares		Value (000)
Arconic, Inc.		22	$	1
AT&T, Inc.		1,429		59
Atmos Energy Corp.		100		8
Autodesk, Inc. (e)		11		1
Automatic Data Processing, Inc.		19		2
AutoZone, Inc. (e)		2		1
AvalonBay Communities, Inc. REIT		108		20
Baker Hughes, Inc.		17		1
Ball Corp.		14		1
Bank of America Corp.		353		8
Bank of New York Mellon Corp. (The)		44		2
Baxter International, Inc.		45		2
BB&T Corp.		42		2
Becton Dickinson and Co.		18		3
Berkshire Hathaway, Inc., Class B (e)		42		7
Best Buy Co., Inc.		17		1
Biogen, Inc. (e)		17		5
BioMarin Pharmaceutical, Inc. (e)		9		1
BlackRock, Inc.		5		2
Boeing Co. (The)		21		4
Boston Properties, Inc. REIT		111		15
Boston Scientific Corp. (e)		332		8
Brandywine Realty Trust REIT		100		2
Bristol-Myers Squibb Co.		341		19
Brixmor Property Group, Inc. REIT		200		4
Broadcom Ltd.		14		3
Brown-Forman Corp., Class B		7		—	@
Cabot Oil & Gas Corp.		26		1
Campbell Soup Co.		9		1
Capital One Financial Corp.		22		2
Cardinal Health, Inc.		29		2
Care Capital Properties, Inc. REIT		25		1
CarMax, Inc. (e)		13		1
Carnival Corp.		16		1
Caterpillar, Inc.		24		2
CBS Corp., Class B		19		1
Celgene Corp. (e)		59		7
Centene Corp. (e)		16		1
CenterPoint Energy, Inc.		418		12
CenturyLink, Inc.		56		1
Cerner Corp. (e)		29		2
Charles Schwab Corp. (The)		47		2
Charter Communications, Inc., Class A (e)		8		3
Cheniere Energy, Inc. (e)		200		9
Chevron Corp.		64		7
Chipotle Mexican Grill, Inc. (e)		2		1
Chubb Ltd.		17		2
Church & Dwight Co., Inc.		11		1
Cigna Corp.		21		3
Cisco Systems, Inc.		174		6
Citigroup, Inc.		101		6
Citizens Financial Group, Inc.		30		1
Citrix Systems, Inc. (e)		14		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
United States (cont'd)
Clorox Co. (The)		14	$	2
CME Group, Inc.		13		2
CMS Energy Corp.		12		1
Coca-Cola Co.		838		36
Cognizant Technology Solutions Corp., Class A (e)		26		2
Colgate-Palmolive Co.		68		5
Columbia Property Trust, Inc. REIT		100		2
Comcast Corp., Class A		165		6
Conagra Brands, Inc.		45		2
Concho Resources, Inc. (e)		8		1
ConocoPhillips		46		2
Consolidated Edison, Inc.		332		26
Constellation Brands, Inc., Class A		16		3
Cooper Cos., Inc. (The)		2		—	@
Corning, Inc.		49		1
Corporate Office Properties Trust REIT		100		3
Costco Wholesale Corp.		34		6
Coty, Inc., Class A		21		—	@
Cousins Properties, Inc. REIT		200		2
CR Bard, Inc.		8		2
Crown Castle International Corp. REIT		318		30
CSX Corp.		38		2
CubeSmart REIT		100		3
Cummins, Inc.		8		1
CVS Health Corp.		296		23
D.R. Horton, Inc.		27		1
Danaher Corp.		50		4
DaVita, Inc. (e)		6		—	@
DDR Corp. REIT		200		3
Deere & Co.		12		1
Delphi Automotive PLC		14		1
Delta Air Lines, Inc.		19		1
DENTSPLY SIRONA, Inc.		9		1
Devon Energy Corp.		22		1
DiamondRock Hospitality Co. REIT		100		1
Digital Realty Trust, Inc. REIT		110		12
Discover Financial Services		20		1
DISH Network Corp. (e)		13		1
Dollar General Corp.		14		1
Dollar Tree, Inc. (e)		13		1
Dominion Resources, Inc.		53		4
Douglas Emmett, Inc. REIT		100		4
Dow Chemical Co. (The)		40		3
Dr. Pepper Snapple Group, Inc.		7		1
DTE Energy Co.		7		1
Duke Energy Corp.		57		5
Duke Realty Corp. REIT		200		5
Eaton Corp., PLC		21		2
eBay, Inc. (e)		46		2
Ecolab, Inc.		14		2
Edison International		333		27
Edwards Lifesciences Corp. (e)		19		2

	Shares		Value (000)
EI du Pont de Nemours & Co.		31	$	2
Electronic Arts, Inc. (e)		13		1
Eli Lilly & Co.		76		6
Emerson Electric Co.		28		2
Empire State Realty Trust, Inc., Class A REIT		100		2
Enbridge Energy Management LLC (e)		104		2
Endo International PLC (e)		7		—	@
EnLink Midstream LLC		100		2
Entergy Corp.		7		1
Envision Healthcare Corp. (e)		5		—	@
EOG Resources, Inc.		22		2
Equifax, Inc.		8		1
Equinix, Inc. REIT		4		2
Equity Commonwealth REIT (e)		100		3
Equity Residential REIT		221		14
Estee Lauder Cos., Inc. (The), Class A		22		2
Eversource Energy		314		18
Exelon Corp.		79		3
Expedia, Inc.		6		1
Express Scripts Holding Co. (e)		51		3
Extra Space Storage, Inc. REIT		100		7
Exxon Mobil Corp.		143		12
Facebook, Inc., Class A (e)		83		12
Fastenal Co.		17		1
FedEx Corp.		11		2
FelCor Lodging Trust, Inc. REIT		100		1
Fidelity National Information Services, Inc.		17		1
Fifth Third Bancorp		47		1
First Industrial Realty Trust, Inc. REIT		100		3
FirstEnergy Corp.		18		1
Fiserv, Inc. (e)		13		2
FleetCor Technologies, Inc. (e)		6		1
Ford Motor Co.		158		2
Forest City Realty Trust, Inc. REIT		100		2
Fortive Corp.		18		1
Franklin Street Properties Corp. REIT		100		1
Freeport-McMoRan, Inc. (e)		51		1
Frontier Communications Corp.		263		1
Gaming and Leisure Properties, Inc. REIT		100		3
General Dynamics Corp.		10		2
General Electric Co.		305		9
General Mills, Inc.		56		3
General Motors Co.		59		2
GGP, Inc. REIT		300		7
Gilead Sciences, Inc.		314		21
Global Payments, Inc.		10		1
Goldman Sachs Group, Inc. (The)		13		3
Gramercy Property Trust REIT		66		2
Halliburton Co.		34		2
Harris Corp.		9		1
Hartford Financial Services Group, Inc. (The)		26		1
HCA Holdings, Inc. (e)		26		2
HCP, Inc. REIT		228		7

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
United States (cont'd)
Healthcare Realty Trust, Inc. REIT		100	$	3
Healthcare Trust of America, Inc., Class A REIT		100		3
Henry Schein, Inc. (e)		3		1
Hershey Co. (The)		5		1
Hess Corp.		16		1
Hewlett Packard Enterprise Co.		66		2
Highwoods Properties, Inc. REIT		100		5
Hologic, Inc. (e)		12		1
Home Depot, Inc.		41		6
Honeywell International, Inc.		26		3
Hormel Foods Corp.		11		—	@
Hospitality Properties Trust REIT		100		3
Host Hotels & Resorts, Inc. REIT		400		7
HP, Inc.		71		1
Hudson Pacific Properties, Inc. REIT		100		3
Humana, Inc.		12		2
Huntington Bancshares, Inc.		78		1
IDEXX Laboratories, Inc. (e)		8		1
Illinois Tool Works, Inc.		15		2
Illumina, Inc. (e)		12		2
Incyte Corp. (e)		7		1
Ingersoll-Rand PLC		17		1
Intel Corp.		164		6
Intercontinental Exchange, Inc.		26		2
International Business Machines Corp.		31		5
International Paper Co.		21		1
Intuit, Inc.		13		2
Intuitive Surgical, Inc. (e)		3		2
Investors Real Estate Trust REIT		100		1
JM Smucker Co. (The)		13		2
Johnson & Johnson		629		78
Johnson Controls International PLC		40		2
JPMorgan Chase & Co.		123		11
Kellogg Co.		11		1
KeyCorp		63		1
Kilroy Realty Corp. REIT		100		7
Kimberly-Clark Corp.		29		4
Kimco Realty Corp. REIT		200		4
Kinder Morgan, Inc.		1,772		39
Koninklijke Ahold Delhaize N.V.		234		5
Kraft Heinz Co. (The)		47		4
Kroger Co. (The)		79		2
L Brands, Inc.		15		1
Laboratory Corp. of America Holdings (e)		4		1
Lam Research Corp.		10		1
Las Vegas Sands Corp.		18		1
LaSalle Hotel Properties REIT		100		3
Lennar Corp., Class A		21		1
Level 3 Communications, Inc. (e)		29		2
Lexington Realty Trust REIT		100		1
Liberty Global PLC, Class A (e)		34		1
Liberty Property Trust REIT		100		4

	Shares		Value (000)
Lincoln National Corp.		14	$	1
Lockheed Martin Corp.		10		3
Lowe's Cos., Inc.		33		3
LyondellBasell Industries N.V., Class A		16		1
Macerich Co. (The) REIT		100		6
Macy's, Inc.		18		1
Mallinckrodt PLC (e)		4		—	@
Marathon Oil Corp.		45		1
Marathon Petroleum Corp.		22		1
Marriott International, Inc., Class A		15		1
Marsh & McLennan Cos., Inc.		25		2
Martin Marietta Materials, Inc.		4		1
Mastercard, Inc., Class A		34		4
McCormick & Co., Inc.		4		—	@
McDonald's Corp.		29		4
McKesson Corp.		18		3
Mead Johnson Nutrition Co.		19		2
Medical Properties Trust, Inc. REIT		200		3
Medtronic PLC		319		26
Merck & Co., Inc.		635		40
MetLife, Inc.		36		2
Mettler-Toledo International, Inc. (e)		1		—	@
MGM Resorts International		31		1
Microchip Technology, Inc.		16		1
Micron Technology, Inc. (e)		43		1
Microsoft Corp.		258		17
Mid-America Apartment Communities, Inc. REIT		100		10
Mohawk Industries, Inc. (e)		5		1
Molson Coors Brewing Co., Class B		19		2
Mondelez International, Inc., Class A		334		14
Monogram Residential Trust, Inc. REIT		100		1
Monsanto Co.		17		2
Monster Beverage Corp. (e)		36		2
Moody's Corp.		10		1
Motorola Solutions, Inc.		12		1
Mylan N.V. (e)		40		2
National Oilwell Varco, Inc.		19		1
National Retail Properties, Inc. REIT		100		4
Netflix, Inc. (e)		16		2
New Jersey Resources Corp.		100		4
New York REIT, Inc.		100		1
Newell Brands, Inc.		22		1
Newmont Mining Corp.		23		1
NextEra Energy, Inc.		37		5
Nielsen Holdings PLC		26		1
NIKE, Inc., Class B		51		3
NiSource, Inc.		314		7
Noble Energy, Inc.		23		1
Norfolk Southern Corp.		12		1
Northern Trust Corp.		13		1
Northrop Grumman Corp.		7		2
NRG Energy, Inc.		13		—	@
Nucor Corp.		14		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
United States (cont'd)
NVIDIA Corp.		20	$	2
O'Reilly Automotive, Inc. (e)		5		1
Occidental Petroleum Corp.		30		2
Omega Healthcare Investors, Inc. REIT		100		3
Omnicom Group, Inc.		18		2
ONEOK, Inc.		211		12
Oracle Corp.		105		5
PACCAR, Inc.		20		1
Palo Alto Networks, Inc. (e)		5		1
Paramount Group, Inc. REIT		100		2
Parker Hannifin Corp.		8		1
Patterson Cos., Inc.		3		—	@
Paychex, Inc.		20		1
PayPal Holdings, Inc. (e)		42		2
PepsiCo, Inc.		320		36
PerkinElmer, Inc.		4		—	@
Perrigo Co., PLC		13		1
Pfizer, Inc.		1,203		41
PG&E Corp.		447		30
Philip Morris International, Inc.		330		37
Phillips 66		20		2
Physicians Realty Trust REIT		100		2
Piedmont Office Realty Trust, Inc., Class A REIT		100		2
Pinnacle West Capital Corp.		4		—	@
Pioneer Natural Resources Co.		7		1
PNC Financial Services Group, Inc. (The)		19		2
PPG Industries, Inc.		15		2
PPL Corp.		65		2
Praxair, Inc.		14		2
Principal Financial Group, Inc.		20		1
Procter & Gamble Co. (The)		624		56
Progressive Corp. (The)		31		1
ProLogis, Inc. REIT		328		17
Prudential Financial, Inc.		18		2
Public Service Enterprise Group, Inc.		55		2
Public Storage REIT		107		23
QUALCOMM, Inc.		53		3
Quality Care Properties, Inc. REIT (e)		40		1
Quest Diagnostics, Inc.		5		—	@
Raytheon Co.		12		2
Realty Income Corp. REIT		119		7
Red Hat, Inc. (e)		12		1
Regency Centers Corp. REIT		100		7
Regeneron Pharmaceuticals, Inc. (e)		6		2
Regions Financial Corp.		78		1
Retail Opportunity Investments Corp. REIT		100		2
Retail Properties of America, Inc., Class A REIT		100		1
Reynolds American, Inc.		64		4
RLJ Lodging Trust REIT		100		2
Rockwell Automation, Inc.		9		1
Roper Technologies, Inc.		7		1
Ross Stores, Inc.		21		1

	Shares		Value (000)
Royal Caribbean Cruises Ltd.		8	$	1
S&P Global, Inc.		12		2
Salesforce.com, Inc. (e)		26		2
SBA Communications Corp. REIT (e)		108		13
SCANA Corp.		6		—	@
Schlumberger Ltd.		47		4
Sempra Energy		224		25
Senior Housing Properties Trust REIT		100		2
ServiceNow, Inc. (e)		8		1
Sherwin-Williams Co. (The)		4		1
Simon Property Group, Inc. REIT		214		37
Skyworks Solutions, Inc.		9		1
SL Green Realty Corp. REIT		100		11
Southern Co. (The)		298		15
Spirit Realty Capital, Inc. REIT		200		2
Stanley Black & Decker, Inc.		11		1
Starbucks Corp.		54		3
State Street Corp.		18		1
STORE Capital Corp. REIT		100		2
Stryker Corp.		26		3
Sunstone Hotel Investors, Inc. REIT		100		2
SunTrust Banks, Inc.		27		2
Symantec Corp.		29		1
Synchrony Financial		37		1
Sysco Corp.		46		2
T. Rowe Price Group, Inc.		17		1
Tanger Factory Outlet Centers, Inc. REIT		100		3
Targa Resources Corp.		208		12
Target Corp.		24		1
TE Connectivity Ltd.		18		1
Tesla, Inc. (e)		5		1
Texas Instruments, Inc.		36		3
Thermo Fisher Scientific, Inc.		31		5
Time Warner, Inc.		28		3
TJX Cos., Inc. (The)		29		2
TransDigm Group, Inc.		3		1
Travelers Cos., Inc. (The)		13		2
Twenty-First Century Fox, Inc., Class A		61		2
Tyson Foods, Inc., Class A		26		2
UDR, Inc. REIT		100		4
Ulta Salon Cosmetics & Fragrance, Inc. (e)		3		1
Union Pacific Corp.		30		3
United Parcel Service, Inc., Class B		26		3
United Rentals, Inc. (e)		5		1
United Technologies Corp.		28		3
UnitedHealth Group, Inc.		71		12
Universal Health Services, Inc., Class B		3		—	@
US Bancorp		61		3
Valero Energy Corp.		19		1
Varian Medical Systems, Inc. (e)		4		—	@
Ventas, Inc. REIT		220		14
VEREIT, Inc. REIT		500		4
Verizon Communications, Inc.		845		41

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
United States (cont'd)
Vertex Pharmaceuticals, Inc. (e)		22	$	2
VF Corp.		22		1
Viacom, Inc., Class B		17		1
Visa, Inc., Class A		64		6
Vornado Realty Trust REIT		100		10
Vulcan Materials Co.		7		1
Wal-Mart Stores, Inc.		327		24
Walgreens Boots Alliance, Inc.		68		6
Walt Disney Co. (The)		53		6
Washington Prime Group, Inc. REIT		100		1
Waste Connections, Inc.		11		1
Waste Management, Inc.		22		2
Waters Corp. (e)		10		2
WEC Energy Group, Inc.		39		2
Weingarten Realty Investors REIT		100		3
Wells Fargo & Co.		165		9
Welltower, Inc. REIT		218		15
Western Digital Corp.		12		1
Weyerhaeuser Co. REIT		36		1
Whirlpool Corp.		5		1
Whole Foods Market, Inc.		13		—	@
Williams Cos., Inc. (The)		633		19
Willis Towers Watson PLC		9		1
Xcel Energy, Inc.		21		1
Xenia Hotels & Resorts, Inc. REIT		100		2
Yahoo!, Inc. (e)		39		2
Yum! Brands, Inc.		21		1
Zimmer Biomet Holdings, Inc.		19		2
Zoetis, Inc.		44		2
				2,134
Total Common Stocks (Cost $4,738)				5,112
Investment Companies (8.7%)
United Kingdom (0.0%)
HICL Infrastructure Co., Ltd. (United Kingdom)		1,299		3
Picton Property Income Ltd. REIT (United Kingdom)		289		—	@
				3
United States (8.7%)
Morgan Stanley Institutional Fund Trust — High Yield Portfolio (See Note G)		54,303		546
Morgan Stanley Institutional Fund, Inc. — Emerging Markets Fixed Income Opportunities Portfolio (See Note G)		76,964		733
				1,279
Total Investment Companies (Cost $1,264)				1,282
Short-Term Investments (8.3%)
Investment Company (5.7%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $830)		829,906		830

	Face Amount (000)		Value (000)
U.S. Treasury Security (2.6%)
U.S. Treasury Bill,
0.64%, 7/27/17 (j)(k) (Cost $381)	$	382	$	381
Total Short-Term Investments (Cost $1,211)				1,211
Total Investments (100.6%) (Cost $14,406) (l)(m)				14,738
Liabilities in Excess of Other Assets (–0.6%)				(85	)
Net Assets (100.0%)			$	14,653

Country assignments and aggregations are based generally on third party vendor classifications and information, and may be different from the assignments and aggregations under the policies set forth in the Fund's prospectus and/or statement of additional information relating to geographic classifications.

(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, 2017.

(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, 2017. Maturity date disclosed is the ultimate maturity date.

(e)  Non-income producing security.

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

(g)  Security trades on the Hong Kong exchange.

(h)  Security has been deemed illiquid at March 31, 2017.

(i)  At March 31, 2017, the Fund 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 Trust's Trustees.

(j)  Rate shown is the yield to maturity at March 31, 2017.

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

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

(m)  At March 31, 2017, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $597,000 and the aggregate gross unrealized depreciation is approximately $265,000 resulting in net unrealized appreciation of approximately $332,000.

@  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).

OFZ  Obilgatsyi Federal'novo Zaima (Russian Federal Loan Obligation)

REIT  Real Estate Investment Trust.

TBA  To Be Announced.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at March 31, 2017:

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Delivery Date	Unrealized Appreciation (Depreciation) (000)
Australia and New Zealand Banking Group	AUD	86		$	66		4/5/17	$	1
Australia and New Zealand Banking Group	CAD	259		$	197		4/5/17		2
Australia and New Zealand Banking Group	NZD	105		EUR	72		4/5/17		3
Australia and New Zealand Banking Group	$	52		EUR	49		4/5/17		—	@
Australia and New Zealand Banking Group	$	86		NZD	119		4/5/17		(2	)
Barclays Bank PLC	AUD	50		$	38		4/5/17		—	@
Barclays Bank PLC	JPY	6,457		$	58		4/5/17		—	@
Barclays Bank PLC	$	2		JPY	240		4/5/17		—	@
Barclays Bank PLC	$	2		ZAR	32		4/5/17		(—	@)
Citibank NA	AUD	10		$	8		4/5/17		(—	@)
Citibank NA	$	2		EUR	1		4/5/17		(—	@)
HSBC Bank PLC	GBP	28		EUR	33		4/5/17		—	@
HSBC Bank PLC	GBP	32		$	39		4/5/17		(—	@)
HSBC Bank PLC	JPY	883		$	8		4/5/17		(—	@)
HSBC Bank PLC	PLN	297		$	73		4/5/17		(2	)
HSBC Bank PLC	$	—	@	CAD	—	@	4/5/17		(—	@)
HSBC Bank PLC	$	27		EUR	25		4/5/17		—	@
HSBC Bank PLC	$	50		HUF	14,160		4/5/17		(1	)
HSBC Bank PLC	$	15		MXN	289		4/5/17		1
HSBC Bank PLC	$	8		NOK	69		4/5/17		(—	@)
HSBC Bank PLC	$	86		PLN	348		4/5/17		2
HSBC Bank PLC	$	11		SGD	15		4/5/17		—	@
HSBC Bank PLC	$	18		THB	625		4/5/17		—	@
JPMorgan Chase Bank NA	CAD	42		MXN	635		4/5/17		2
JPMorgan Chase Bank NA	EUR	19		$	19		4/5/17		(—	@)
JPMorgan Chase Bank NA	GBP	4		EUR	5		4/5/17		—	@
JPMorgan Chase Bank NA	MXN	670		JPY	3,798		4/5/17		(2	)
JPMorgan Chase Bank NA	$	3		GBP	2		4/5/17		—	@
JPMorgan Chase Bank NA	$	1		HUF	420		4/5/17		(—	@)
JPMorgan Chase Bank NA	$	42		JPY	4,650		4/5/17		(—	@)
UBS AG	AUD	68		$	51		4/5/17		(1	)
UBS AG	EUR	35		SEK	330		4/5/17		(—	@)
UBS AG	EUR	1		$	1		4/5/17		(—	@)
UBS AG	HUF	14,580		$	50		4/5/17		(—	@)
UBS AG	JPY	185		$	2		4/5/17		(—	@)
UBS AG	SEK	—	@	$	—	@	4/5/17		—	@
UBS AG	$	2		CAD	2		4/5/17		(—	@)
UBS AG	$	52		CHF	52		4/5/17		—	@
UBS AG	$	20		DKK	140		4/5/17		—	@
UBS AG	$	98		SEK	876		4/5/17		—	@
Bank of America NA	EUR	14		$	15		4/20/17		—	@
Bank of America NA	PLN	108		$	27		4/20/17		—	@
Bank of America NA	$	11		ILS	40		4/20/17		—	@
Bank of Montreal	$	14		JPY	1,533		4/20/17		—	@
Barclays Bank PLC	AUD	46		$	36		4/20/17		—	@
Barclays Bank PLC	AUD	14		$	11		4/20/17		—	@
Barclays Bank PLC	CHF	39		$	39		4/20/17		—	@
Barclays Bank PLC	EUR	300		$	325		4/20/17		5
Barclays Bank PLC	$	19		GBP	15		4/20/17		—	@
Barclays Bank PLC	$	170		JPY	19,035		4/20/17		1
BNP Paribas SA	EUR	35		$	38		4/20/17		1
BNP Paribas SA	$	15		CAD	21		4/20/17		—	@
BNP Paribas SA	$	70		EUR	65		4/20/17		(1	)
BNP Paribas SA	$	40		JPY	4,520		4/20/17		—	@
Citibank NA	AUD	15		$	11		4/20/17		—	@
Citibank NA	EUR	239		$	259		4/20/17		4
Citibank NA	THB	509		$	15		4/20/17		(—	@)
Citibank NA	$	20		CAD	27		4/20/17		—	@

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated 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	$	69	JPY	7,699	4/20/17	$	—	@
Citibank NA	$	176	TRY	642	4/20/17		(—	@)
Commonwealth Bank of Australia	AUD	31	$	24	4/20/17		—	@
Commonwealth Bank of Australia	EUR	121	$	131	4/20/17		2
Commonwealth Bank of Australia	$	233	GBP	187	4/20/17		1
Commonwealth Bank of Australia	$	19	JPY	2,073	4/20/17		—	@
Credit Suisse International	$	11	GBP	9	4/20/17		—	@
Credit Suisse International	$	6	ILS	23	4/20/17		—	@
Goldman Sachs International	AUD	21	$	16	4/20/17		—	@
Goldman Sachs International	EUR	69	$	74	4/20/17		1
Goldman Sachs International	EUR	25	$	27	4/20/17		—	@
Goldman Sachs International	HUF	3,679	$	13	4/20/17		—	@
Goldman Sachs International	$	4	GBP	3	4/20/17		—	@
Goldman Sachs International	$	93	JPY	10,348	4/20/17		—	@
Goldman Sachs International	$	21	JPY	2,342	4/20/17		(—	@)
Goldman Sachs International	ZAR	249	$	20	4/20/17		1
Goldman Sachs International	ZAR	715	$	53	4/20/17		(—	@)
JPMorgan Chase Bank NA	AUD	22	$	17	4/20/17		—	@
JPMorgan Chase Bank NA	JPY	54,486	$	490	4/20/17		1
JPMorgan Chase Bank NA	JPY	2,489	$	22	4/20/17		(—	@)
JPMorgan Chase Bank NA	MXN	572	$	30	4/20/17		(—	@)
JPMorgan Chase Bank NA	SEK	553	$	63	4/20/17		1
JPMorgan Chase Bank NA	$	35	JPY	3,944	4/20/17		—	@
JPMorgan Chase Bank NA	$	65	MXN	1,252	4/20/17		2
JPMorgan Chase Bank NA	$	15	SGD	21	4/20/17		(—	@)
JPMorgan Chase Bank NA	ZAR	127	$	10	4/20/17		1
State Street Bank and Trust Co.	EUR	10	$	11	4/20/17		—	@
UBS AG	AUD	152	$	117	4/20/17		1
UBS AG	CHF	13	$	13	4/20/17		—	@
UBS AG	DKK	117	$	17	4/20/17		—	@
UBS AG	EUR	84	$	91	4/20/17		1
UBS AG	EUR	18	$	19	4/20/17		—	@
UBS AG	GBP	13	$	17	4/20/17		—	@
UBS AG	HKD	28	$	4	4/20/17		—	@
UBS AG	$	19	CAD	25	4/20/17		—	@
UBS AG	$	25	GBP	20	4/20/17		—	@
UBS AG	$	11	JPY	1,201	4/20/17		—	@
UBS AG	$	9	NOK	77	4/20/17		(—	@)
UBS AG	ZAR	43	$	3	4/20/17		—	@
Australia and New Zealand Banking Group	BRL	245	$	79	5/5/17		1
Australia and New Zealand Banking Group	$	18	MYR	79	5/5/17		—	@
Australia and New Zealand Banking Group	$	16	RUB	965	5/5/17		1
JPMorgan Chase Bank NA	RUB	2,555	$	44	5/5/17		(1	)
Australia and New Zealand Banking Group	$	82	KRW	93,150	5/8/17		2
HSBC Bank PLC	MXN	997	$	52	5/8/17		(1	)
HSBC Bank PLC	$	35	ZAR	448	5/8/17		(2	)
HSBC Bank PLC	$	26	ZAR	325	5/8/17		(2	)
HSBC Bank PLC	ZAR	598	$	47	5/8/17		3
JPMorgan Chase Bank NA	MXN	994	$	51	5/8/17		(1	)
JPMorgan Chase Bank NA	$	13	MXN	256	5/8/17		—	@
JPMorgan Chase Bank NA	ZAR	205	$	15	5/8/17		—	@
UBS AG	$	35	GBP	28	5/8/17		—	@
Citibank NA	CNH	2,923	$	436	5/11/17		12
Citibank NA	CNH	952	$	140	5/11/17		2
Citibank NA	CNH	955	$	141	5/11/17		2
Citibank NA	CNH	168	$	25	5/11/17		—	@
Citibank NA	CNH	391	$	58	5/11/17		1
Citibank NA	$	216	CNH	1,471	5/11/17		(3	)
Citibank NA	$	287	CNH	1,942	5/11/17		(5	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated 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)
JPMorgan Chase Bank NA	CNH	952	$	141	5/11/17	$	3
JPMorgan Chase Bank NA	CNH	1,472	$	217	5/11/17		4
JPMorgan Chase Bank NA	CNH	1,472	$	216	5/11/17		3
JPMorgan Chase Bank NA	CNH	116	$	17	5/11/17		—	@
JPMorgan Chase Bank NA	CNH	362	$	53	5/11/17		1
JPMorgan Chase Bank NA	$	154	CNH	1,046	5/11/17		(3	)
JPMorgan Chase Bank NA	$	367	CNH	2,586	5/11/17		8
JPMorgan Chase Bank NA	$	20	CNH	140	5/11/17		—	@
JPMorgan Chase Bank NA	$	374	CNH	2,577	5/11/17		(—	@)
JPMorgan Chase Bank NA	$	7	CNY	52	5/18/17		—	@
State Street Bank and Trust Co.	BRL	132	$	42	5/18/17		—	@
State Street Bank and Trust Co.	IDR	337,778	$	25	5/18/17		(—	@)
State Street Bank and Trust Co.	IDR	132,841	$	10	5/18/17		—	@
State Street Bank and Trust Co.	MYR	60	$	13	5/18/17		(—	@)
State Street Bank and Trust Co.	RUB	3,735	$	63	5/18/17		(3	)
State Street Bank and Trust Co.	RUB	1,887	$	32	5/18/17		(1	)
State Street Bank and Trust Co.	$	8	KRW	9,545	5/18/17		—	@
State Street Bank and Trust Co.	$	48	RUB	2,740	5/18/17		—	@
Citibank NA	EUR	118	$	128	2/1/18		1
Citibank NA	EUR	135	$	147	2/1/18		1
Citibank NA	$	130	CZK	3,185	2/1/18		(1	)
Citibank NA	$	148	CZK	3,641	2/1/18		(—	@)
						$	47

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2017:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
German Euro BOBL (Germany)		1	$	140		Jun-17	$	—	@
MSCI Emerging Market E Mini (United States)		11		529		Jun-17		12
NIKKEI 225 Index (United States)		5		426		Jun-17		(7	)
OMXS 30 Index (Sweden)		2		35		Apr-17		—	@
S&P 500 E Mini Index (United States)		6		708		Jun-17		(3	)
TOPIX Index (Japan)		2		272		Jun-17		(5	)
U.S. Treasury 10 yr. Note (United States)		5		623		Jun-17		3
U.S. Treasury 10 yr. Ultra Long Bond (United States)		9		1,205		Jun-17		3
U.S. Treasury 2 yr. Note (United States)		4		866		Jun-17		2
U.S. Treasury 5 yr. Note (United States)		1		118		Jun-17		—	@
Short:
Brent Crude Futures (United Kingdom)		2		(107	)	Apr-17		(3	)
Copper Future (United States)		3		(199	)	May-17		2
Euro Stoxx 50 Index (Germany)		8		(292	)	Jun-17		(9	)
German Euro BTP (Germany)		1		(140	)	Jun-17		(—	@)
German Euro Bund (Germany)		6		(1,033	)	Jun-17		(2	)
U.S. Treasury 10 yr. Note (United States)		3		(374	)	Jun-17		(1	)
							$	(8	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Credit Default Swap Agreements:

The Fund had the following credit default swap agreements open at March 31, 2017:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Appreciation (000)		Value (000)			Credit Rating of Reference Obligation†
JPMorgan Chase Bank NA Russian Federation	Sell	$	100		1.00	%	6/20/21	$	(9	)	$	8	$	(1	)	BB+
Morgan Stanley & Co., LLC* CDX.NA.HY.27	Sell		157		5.00		12/20/21		6			7		13		NR
		$	257					$	(3	)	$	15	$	12

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 31, 2017:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	3 Month KORIBOR	Pay		1.47	%	10/18/26	KRW	36,000	$	(1	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.86		12/8/21	$	73		—	@
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.07		12/21/21		70		(—	@)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.28		12/8/26		116		—	@
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.48		12/21/26		77		(1	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.59		12/8/46		16		—	@
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.74		12/21/46		32		(1	)
									$	(3	)

Total Return Swap Agreements:

The Fund had the following total return swap agreements open at March 31, 2017:

Swap Counterparty	Index	Notional Amount (000)		Floating Rate	Pay/Receive Total Return of Referenced Index	Maturity Date	Upfront Payment Paid (Received) (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	JPM Short Iron Ore Miners Index††	$	60	3 Month USD LIBOR minus 0.17%	Pay	11/16/17	$	—	$	6
JPMorgan Chase Bank NA	JPM Short Iron Ore Miners Index††		23	3 Month USD LIBOR minus 0.17%	Pay	11/16/17		—		3
JPMorgan Chase Bank NA	JPM Short Iron Ore Miners Index††		90	3 Month USD LIBOR minus 0.17%	Pay	11/16/17		—		—	@
JPMorgan Chase Bank NA	Short Global Elevators Index††		41	3 Month USD LIBOR minus 0.30%	Pay	12/14/17		—		(1	)
JPMorgan Chase Bank NA	Short U.S. Cyclicals Index††		220	3 Month USD LIBOR minus 0.08%	Pay	2/20/18		—		(5	)
JPMorgan Chase Bank NA	Short U.S. Cyclicals Index††		210	3 Month USD LIBOR minus 0.08%	Pay	2/20/18		—		(3	)
JPMorgan Chase Bank NA	Short U.S. Cyclicals Index††		60	3 Month USD LIBOR minus 0.08%	Pay	2/20/18		—		(1	)
JPMorgan Chase Bank NA	Short U.S. Capital Goods Index		170	3 Month USD LIBOR plus 0.19%	Pay	3/8/18		—		1
JPMorgan Chase Bank NA	Short China Banks Index††		100	3 Month USD LIBOR plus 0.10%	Pay	3/15/18		—		2
									$	2

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

The following table represents the equity basket holdings underlying the total

return swap with JPM Short Iron Ore Miners Index as of March 31, 2017.

Security Description	Index Weight
JPM Short Iron Ore Miners Index
African Rainbow Minerals Ltd.		1.10	%
Assore Ltd.		0.28
BHP Billiton PLC		24.74
Ferrexpo PLC		0.88
Fortescue Metals Group Ltd.		10.52
Rio Tinto PLC		39.35
Vale SA		23.13
		100.00	%

The following table represents the equity basket holdings underlying the total

return swap with Short Global Elevators Index as of March 31, 2017.

Security Description	Index Weight
Short Global Elevators Index
Kone OYJ		54.06	%
Schindler Holding AG		45.94
		100.00	%

The following table represents the equity basket holdings underlying the total

return swap with Short U.S. Cyclicals Index as of March 31, 2017.

Security Description	Index Weight
Short U.S. Cyclicals Index
3M Co.		1.19	%
Accenture PLC		0.76
Activision Blizzard, Inc.		0.31
Acuity Brands, Inc.		0.09
Adobe Systems, Inc.		0.67
Advance Auto Parts, Inc.		0.11
Air Products & Chemicals, Inc.		0.31
Akamai Technologies, Inc.		0.11
Alaska Air Group, Inc.		0.12
Albemarle Corp.		0.13
Allegion PLC		0.07
Alliance Data Systems Corp.		0.15
Alphabet, Inc.		5.19
Amazon.com, Inc.		3.62
American Airlines Group, Inc.		0.22
AMETEK, Inc.		0.13
Amphenol Corp.		0.23
Analog Devices, Inc.		0.26
Apple, Inc.		8.03
Applied Materials, Inc.		0.45
Arconic, Inc.		0.11
Autodesk, Inc.		0.18
Automatic Data Processing, Inc.		0.48
AutoNation, Inc.		0.03
AutoZone, Inc.		0.22
Avery Dennison Corp.		0.07
Ball Corp.		0.14
Bed Bath & Beyond, Inc.		0.06
Best Buy Co., Inc.		0.14
Boeing Co. (The)		1.05
BorgWarner, Inc.		0.09
Broadcom Ltd.		0.92

Security Description	Index Weight
CA, Inc.		0.10	%
CarMax, Inc.		0.12
Carnival Corp.		0.26
Caterpillar, Inc.		0.54
CBS Corp.		0.28
CF Industries Holdings, Inc.		0.07
CH Robinson Worldwide, Inc.		0.11
Charter Communications, Inc.		0.76
Chipotle Mexican Grill, Inc.		0.13
Cintas Corp.		0.11
Cisco Systems, Inc.		1.76
Citrix Systems, Inc.		0.14
Coach, Inc.		0.12
Cognizant Technology Solutions Corp.		0.37
Comcast Corp.		1.87
Corning, Inc.		0.27
CSRA, Inc.		0.05
CSX Corp.		0.46
Cummins, Inc.		0.24
Darden Restaurants, Inc.		0.11
Deere & Co.		0.33
Delphi Automotive PLC		0.22
Delta Air Lines, Inc.		0.34
Discovery Communications, Inc.		0.11
Dollar General Corp.		0.19
Dollar Tree, Inc.		0.19
Dover Corp.		0.13
Dow Chemical Co. (The)		0.73
DR Horton, Inc.		0.12
Dun & Bradstreet Corp. (The)		0.05
Eastman Chemical Co.		0.12
Eaton Corp. PLC		0.34
eBay, Inc.		0.36
Ecolab, Inc.		0.34
EI du Pont de Nemours & Co.		0.72
Electronic Arts, Inc.		0.27
Emerson Electric Co.		0.40
Equifax, Inc.		0.16
Expedia, Inc.		0.17
Expeditors International of Washington		0.10
F5 Networks, Inc.		0.10
Facebook, Inc.		3.52
Fastenal Co.		0.16
FedEx Corp.		0.49
Fidelity National Information Services		0.27
First Solar, Inc.		0.02
Fiserv, Inc.		0.26
FLIR Systems, Inc.		0.05
Flowserve Corp.		0.07
Fluor Corp.		0.07
FMC Corp.		0.10
Foot Locker, Inc.		0.11
Ford Motor Co.		0.47
Fortive Corp.		0.19
Fortune Brands Home & Security, Inc.		0.10
Freeport-McMoRan, Inc.		0.18
Gap, Inc. (The)		0.06
Garmin Ltd.		0.06
General Dynamics Corp.		0.56
General Electric Co.		2.73

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Security Description	Index Weight
General Motors Co.		0.51	%
Genuine Parts Co.		0.14
Global Payments, Inc.		0.13
Goodyear Tire & Rubber Co. (The)		0.09
H&R Block, Inc.		0.05
Hanesbrands, Inc.		0.08
Harley-Davidson, Inc.		0.11
Harris Corp.		0.14
Hasbro, Inc.		0.12
Hewlett Packard Enterprise Co.		0.41
Home Depot, Inc. (The)		1.86
Honeywell International, Inc.		0.98
HP, Inc.		0.31
Illinois Tool Works, Inc.		0.43
Ingersoll-Rand PLC		0.22
Intel Corp.		1.84
International Business Machines Corp.		1.57
International Flavors & Fragrances, Inc.		0.11
International Paper Co.		0.22
Interpublic Group of Cos., Inc. (The)		0.10
Intuit, Inc.		0.29
Jacobs Engineering Group, Inc.		0.07
JB Hunt Transport Services, Inc.		0.08
Johnson Controls International PLC		0.41
Juniper Networks, Inc.		0.11
Kansas City Southern		0.10
KLA-Tencor Corp.		0.16
Kohl's Corp.		0.07
L Brands, Inc.		0.12
L3 Technologies, Inc.		0.13
Lam Research Corp.		0.22
Leggett & Platt, Inc.		0.07
Lennar Corp.		0.10
LKQ Corp.		0.09
Lockheed Martin Corp.		0.70
Lowe's Cos., Inc.		0.74
LyondellBasell Industries N.V.		0.32
Macy's, Inc.		0.09
Marriott International, Inc.		0.32
Martin Marietta Materials, Inc.		0.14
Masco Corp.		0.12
Mastercard, Inc.		1.12
Mattel, Inc.		0.09
McDonald's Corp.		1.13
Michael Kors Holdings Ltd.		0.07
Microchip Technology, Inc.		0.18
Micron Technology, Inc.		0.32
Microsoft Corp.		5.30
Mohawk Industries, Inc.		0.15
Monsanto Co.		0.52
Mosaic Co. (The)		0.10
Motorola Solutions, Inc.		0.15
NetApp, Inc.		0.12
Netflix, Inc.		0.68
Newell Brands, Inc.		0.24
Newmont Mining Corp.		0.19
News Corp.		0.06
Nielsen Holdings PLC		0.14
NIKE, Inc.		0.76
Nordstrom, Inc.		0.06

Security Description	Index Weight
Norfolk Southern Corp.		0.34	%
Northrop Grumman Corp.		0.43
Nucor Corp.		0.18
NVIDIA Corp.		0.68
Omnicom Group, Inc.		0.21
Oracle Corp.		1.38
O'Reilly Automotive, Inc.		0.27
PACCAR, Inc.		0.24
Parker-Hannifin Corp.		0.22
Paychex, Inc.		0.20
PayPal Holdings, Inc.		0.51
Pentair PLC		0.11
Pitney Bowes, Inc.		0.03
PPG Industries, Inc.		0.29
Praxair, Inc.		0.36
Priceline Group, Inc. (The)		0.91
PulteGroup, Inc.		0.07
PVH Corp.		0.09
Qorvo, Inc.		0.09
QUALCOMM, Inc.		0.86
Quanta Services, Inc.		0.06
Ralph Lauren Corp.		0.05
Raytheon Co.		0.46
Red Hat, Inc.		0.16
Republic Services, Inc.		0.15
Robert Half International, Inc.		0.06
Rockwell Automation, Inc.		0.21
Rockwell Collins, Inc.		0.13
Roper Technologies, Inc.		0.21
Ross Stores, Inc.		0.27
Royal Caribbean Cruises Ltd.		0.17
Ryder System, Inc.		0.04
salesforce.com, Inc.		0.55
Scripps Networks Interactive, Inc.		0.08
Seagate Technology PLC		0.14
Sealed Air Corp.		0.10
Sherwin-Williams Co. (The)		0.26
Signet Jewelers Ltd.		0.05
Skyworks Solutions, Inc.		0.19
Snap-on, Inc.		0.10
Southwest Airlines Co.		0.33
Stanley Black & Decker, Inc.		0.20
Staples, Inc.		0.06
Starbucks Corp.		0.88
Stericycle, Inc.		0.07
Symantec Corp.		0.20
Target Corp.		0.33
TE Connectivity Ltd.		0.28
TEGNA, Inc.		0.06
Teradata Corp.		0.04
Texas Instruments, Inc.		0.86
Textron, Inc.		0.13
Tiffany & Co.		0.10
Time Warner, Inc.		0.80
TJX Cos., Inc. (The)		0.54
Total System Services, Inc.		0.09
Tractor Supply Co		0.10
TransDigm Group, Inc.		0.11
TripAdvisor, Inc.		0.05
Twenty-First Century Fox, Inc.		0.53

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Security Description	Index Weight
Ulta Beauty, Inc.		0.18	%
Under Armour, Inc.		0.07
Union Pacific Corp.		0.92
United Continental Holdings, Inc.		0.21
United Parcel Service, Inc.		0.77
United Rentals, Inc.		0.11
United Technologies Corp.		0.90
Urban Outfitters, Inc.		0.02
VeriSign, Inc.		0.08
Verisk Analytics, Inc.		0.13
VF Corp.		0.19
Viacom, Inc.		0.17
Visa, Inc.		1.73
Vulcan Materials Co.		0.17
Walt Disney Co. (The)		1.75
Waste Management, Inc.		0.31
Western Digital Corp.		0.24
Western Union Co. (The)		0.11
WestRock Co.		0.14
Whirlpool Corp.		0.13
WW Grainger, Inc.		0.13
Wyndham Worldwide Corp.		0.09
Wynn Resorts Ltd.		0.09
Xerox Corp.		0.07
Xilinx, Inc.		0.15
Xylem, Inc.		0.09
Yahoo!, Inc.		0.43
Yum! Brands, Inc.		0.23
		100.00	%

The following table represents the equity basket holdings underlying the total

return swap with Short China Banks Index as of March 31, 2017.

Security Description	Index Weight
Short China Banks Index
Bank of Communications Co., Ltd.		14.04	%
China CITIC Bank Corp., Ltd.		38.57
China Everbright Bank Co., Ltd.		2.19
China Merchants Bank Co., Ltd.		27.28
China Minsheng Banking Corp., Ltd.		13.82
Chongqing Rural Commercial Bank Co., Ltd.		4.10
		100.00	%

@  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.

KORIBOR  Korea Interbank Offered Rate.

LIBOR  London Interbank Offered Rate.

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

CNH  —  Chinese Yuan Renminbi

CNY  —  Chinese Yuan Renminbi

CZK  —  Czech Koruna

DKK  —  Danish Krone

EUR  —  Euro

GBP  —  British Pound

HKD  —  Hong Kong Dollar

HUF  —  Hungarian Forint

IDR  —  Indonesian Rupiah

ILS  —  Israeli Shekel

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

ZAR  —  South African Rand

Portfolio Composition

Classification	Percentage of Total Investments
Other**		36.2	%
Sovereign		29.0
Investment Companies		9.0
Short-Term Investments		8.5
Banks		7.1
Equity Real Estate Investment Trusts (REITs)		5.2
U.S. Treasury Securities		5.0
Total Investments		100.0	%***

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

***  Does not include open long/short futures contracts with an underlying face amount of approximately $7,067,000 with net unrealized depreciation of approximately $8,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $47,000 and does not include open swap agreements with net unrealized appreciation of approximately $14,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Global Multi-Asset Income Portfolio

Consolidated Statement of Assets and Liabilities	March 31, 2017 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $12,315)	$	12,629
Investment in Security of Affiliated Issuer, at Value (Cost $2,091)		2,109
Total Investments in Securities, at Value (Cost $14,406)		14,738
Foreign Currency, at Value (Cost $4)		4
Receivable for Investments Sold		303
Receivable for Variation Margin on Futures Contracts		198
Due from Adviser		111
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		79
Interest Receivable		50
Unrealized Appreciation on Swap Agreements		20
Dividends Receivable		10
Tax Reclaim Receivable		4
Receivable from Affiliate		—	@
Other Assets		83
Total Assets		15,600
Liabilities:
Payable for Investments Purchased		683
Payable for Custodian Fees		120
Payable for Professional Fees		48
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		32
Unrealized Depreciation on Swap Agreements		11
Premium Received on Open Swap Agreements		9
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class IS		1
Payable for Variation Margin on Swap Agreements		2
Payable for Administration Fees		1
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Organization Costs for Subsidiary		—	@
Other Liabilities		37
Total Liabilities		947
Net Assets	$	14,653
Net Assets Consist Of:
Paid-in-Capital	$	15,062
Distributions in Excess of Net Investment Income		(66	)
Accumulated Net Realized Loss		(728	)
Unrealized Appreciation (Depreciation) on:
Investments		314
Investments in Affiliates		18
Futures Contracts		(8	)
Swap Agreements		14
Foreign Currency Forward Exchange Contracts		47
Foreign Currency Translations		—	@
Net Assets	$	14,653

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Global Multi-Asset Income Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	March 31, 2017 (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	$	9.72
CLASS A:
Net Assets	$	72
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		7,458
Net Asset Value, Redemption Price Per Share	$	9.71
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.54
Maximum Offering Price Per Share	$	10.25
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	$	9.67
CLASS IS:
Net Assets	$	14,561
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	$	9.73

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Global Multi-Asset Income Portfolio

Consolidated Statement of Operations	Six Months Ended March 31, 2017 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	61
Dividends from Securities of Unaffiliated Issuers (Net of $3 of Foreign Taxes Withheld)		57
Dividends from Securities of Affiliated Issuer (Note G)		51
Total Investment Income		169
Expenses:
Custodian Fees (Note F)		129
Professional Fees		73
Advisory Fees (Note B)		47
Pricing Fees		29
Registration Fees		15
Shareholder Reporting Fees		8
Administration Fees (Note C)		6
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
Organization Costs for Subsidiary		3
Trustees' Fees and Expenses		2
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Sub Transfer Agency Fees — Class A		—	@
Other Expenses		4
Total Expenses		320
Expenses Reimbursed by Adviser (Note B)		(205	)
Waiver of Advisory Fees (Note B)		(47	)
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)		(2	)
Net Expenses		62
Net Investment Income		107
Realized Gain (Loss):
Investments Sold		(138	)
Investments in Affiliates		(8	)
Foreign Currency Forward Exchange Contracts		(62	)
Foreign Currency Transactions		(4	)
Futures Contracts		213
Options Written		(194	)
Swap Agreements		(39	)
Net Realized Loss		(232	)
Change in Unrealized Appreciation (Depreciation):
Investments		11
Investments in Affiliates		1
Foreign Currency Forward Exchange Contracts		37
Foreign Currency Translations		—	@
Futures Contracts		(22	)
Swap Agreements		(22	)
Options Written		4
Net Change in Unrealized Appreciation (Depreciation)		9
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(223	)
Net Decrease in Net Assets Resulting from Operations	$	(116	)

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Global Multi-Asset Income Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	107		$	240
Net Realized Loss		(232	)		(241	)
Net Change in Unrealized Appreciation (Depreciation)		9			1,165
Net Increase (Decrease) in Net Assets Resulting from Operations		(116	)		1,164
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(—	@)		(—	@)
Class A:
Net Investment Income		(1	)		(1	)
Class C:
Net Investment Income		(—	@)		(—	@)
Class IS:
Net Investment Income		(143	)		(307	)
Total Distributions		(144	)		(308	)
Capital Share Transactions:(1)
Class A:
Subscribed		—			25
Distributions Reinvested		—	@		1
Net Increase in Net Assets Resulting from Capital Share Transactions		—	@		26
Total Increase (Decrease) in Net Assets		(260	)		882
Net Assets:
Beginning of Period		14,913			14,031
End of Period (Including Distributions in Excess of Net Investment Income of $(66) and $(29))	$	14,653		$	14,913
(1)   Capital Share Transactions:
Class A:
Shares Subscribed		—			3
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class A Shares Outstanding		—	@@		3

*  Not consolidated.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Financial Highlights

Global Multi-Asset Income Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)(3)			Period from April 30, 2015(2) to September 30, 2015(3)
Net Asset Value, Beginning of Period	$	9.90		$	9.33		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (4)		0.07			0.15			0.07
Net Realized and Unrealized Gain (Loss)		(0.16	)		0.62			(0.71	)
Total from Investment Operations		(0.09	)		0.77			(0.64	)
Distributions from and/or in Excess of:
Net Investment Income		(0.09	)		(0.20	)		(0.03	)
Net Asset Value, End of Period	$	9.72		$	9.90		$	9.33
Total Return (5)		(0.86	)%(7)		8.39	%		(6.42	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10		$	9
Ratio of Expenses to Average Net Assets (9)		0.93	%(6)(8)		0.92	%(6)		0.93	%(6)(8)
Ratio of Net Investment Income to Average Net Assets (9)		1.40	%(6)(8)		1.62	%(6)		1.72	%(6)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(8)		0.03	%		0.02	%(8)
Portfolio Turnover Rate		137	%(7)		236	%		139	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		23.00	%(8)		6.73	%		20.20	%(8)
Net Investment Loss to Average Net Assets		(20.67	)%(8)		(4.19	)%		(17.55	)%(8)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Operations.

(3)  Not consolidated.

(4)  Per share amount is based on average shares outstanding.

(5)  Calculated based on the net asset value as of the last business day of the period.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Financial Highlights

Global Multi-Asset Income Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)(3)			Period from April 30, 2015(2) to September 30, 2015(3)
Net Asset Value, Beginning of Period	$	9.88		$	9.32		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (4)		0.05			0.12			0.04
Net Realized and Unrealized Gain (Loss)		(0.14	)		0.61			(0.69	)
Total from Investment Operations		(0.09	)		0.73			(0.65	)
Distributions from and/or in Excess of:
Net Investment Income		(0.08	)		(0.17	)		(0.03	)
Net Asset Value, End of Period	$	9.71		$	9.88		$	9.32
Total Return (5)		(0.94	)%(7)		8.10	%		(6.64	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	72		$	73		$	44
Ratio of Expenses to Average Net Assets (9)		1.27	%(6)(8)		1.26	%(6)		1.27	%(6)(8)
Ratio of Net Investment Income to Average Net Assets (9)		1.09	%(6)(8)		1.27	%(6)		1.02	%(6)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.03	%(8)		0.04	%		0.01	%(8)
Portfolio Turnover Rate		137	%(7)		236	%		139	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		7.54	%(8)		4.74	%		12.75	%(8)
Net Investment Loss to Average Net Assets		(5.18	)%(8)		(2.21	)%		(10.46	)%(8)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Operations.

(3)  Not consolidated.

(4)  Per share amount is based on average shares outstanding.

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

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Financial Highlights

Global Multi-Asset Income Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)(3)			Period from May 8, 2015(2) to September 30, 2015(3)
Net Asset Value, Beginning of Period	$	9.84		$	9.30		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (4)		0.01			0.04			0.02
Net Realized and Unrealized Gain		(0.14	)		0.61			(0.71	)
Total from Investment Operations		(0.13	)		0.65			(0.69	)
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.11	)		(0.01	)
Net Asset Value, End of Period	$	9.67		$	9.84		$	9.30
Total Return (5)		(1.33	)%(7)		7.11	%		(6.86	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10		$	9
Ratio of Expenses to Average Net Assets (9)		2.03	%(6)(8)		2.02	%(6)		2.03	%(6)(8)
Ratio of Net Investment Income to Average Net Assets (9)		0.27	%(6)(8)		0.41	%(6)		0.56	%(6)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(8)		0.03	%		0.01	%(8)
Portfolio Turnover Rate		137	%(7)		236	%		139	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		23.17	%(8)		14.16	%		21.28	%(8)
Net Investment Loss to Average Net Assets		(20.87	)%(8)		(11.73	)%		(18.68	)%(8)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Not consolidated.

(4)  Per share amount is based on average shares outstanding.

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

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  Not Annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Financial Highlights

Global Multi-Asset Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)(3)			Period from April 30, 2015(2) to September 30, 2015(3)
Net Asset Value, Beginning of Period	$	9.90		$	9.33		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (4)		0.07			0.16			0.07
Net Realized and Unrealized Gain (Loss)		(0.15	)		0.61			(0.71	)
Total from Investment Operations		(0.08	)		0.77			(0.64	)
Distributions from and/or in Excess of:
Net Investment Income		(0.09	)		(0.20	)		(0.03	)
Net Asset Value, End of Period	$	9.73		$	9.90		$	9.33
Total Return (5)		(0.73	)%(7)		8.44	%		(6.41	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	14,561		$	14,820		$	13,969
Ratio of Expenses to Average Net Assets (9)		0.87	%(6)(8)		0.86	%(6)		0.87	%(6)(8)
Ratio of Net Investment Income to Average Net Assets (9)		1.48	%(6)(8)		1.68	%(6)		1.76	%(6)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.03	%(8)		0.04	%		0.01	%(8)
Portfolio Turnover Rate		137	%(7)		236	%		139	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		4.42	%(8)		3.99	%		5.97	%(8)
Net Investment Loss to Average Net Assets		(2.07	)%(8)		(1.45	)%		(3.34	)%(8)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Operations.

(3)  Not consolidated.

(4)  Per share amount is based on average shares outstanding.

(5)  Calculated based on the net asset value as of the last business day of the period.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Notes to Consolidated Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("Trust'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Trust is comprised of nine separate, active funds (individually referred to as a "Fund", collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

The accompanying consolidated financial statements relate to the Global Multi-Asset Income Portfolio. The Fund seeks to maximize current income and to seek capital appreciation over time. The Fund 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 Trust in the preparation of its consolidated financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results may differ from those estimates.

Effective October 3, 2016, the Fund may, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Multi-Asset Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest, directly or indirectly through the use of derivatives, in securities, commodities, commodity-related instruments and other investments, primarily futures, swaps and notes. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of March 31, 2017, the Subsidiary represented approximately $440,000 or approximately 3.00% of the total assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to the commodity markets within the limitations of Subchapter M of the Code and recent Internal Revenue Service ("IRS") revenue rulings, which require that a mutual fund receive no more than ten percent of its gross income from such investments in order to receive favorable tax

treatment as a regulated investment company ("RIC"). Tax treatment of the income received from the Subsidiary may potentially be affected by changes in legislation, regulations or other legally binding authority, which could affect the character, timing and amount of the Fund's taxable income and distributions. If such changes occur, the Fund may need to significantly change its investment strategy and recognize unrealized gains in order to remain qualified for taxation as a RIC, which could adversely affect the Fund.

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads, and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges; (3) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

reputable brokers or dealers. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (5) OTC swaps may be valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange; (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 its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (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; and

(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.

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

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

33

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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 Fund's investments as of March 31, 2017.

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	$	—	$	540	$	—	$	540
Commercial Mortgage-Backed Securities		—		177		—		177
Corporate Bonds		—		1,576		—		1,576
Sovereign		—		4,125		—		4,125
U.S. Treasury Securities		—		715		—		715
Total Fixed Income Securities		—		7,133		—		7,133
Common Stocks
Aerospace & Defense		43		—		—		43
Air Freight & Logistics		12		—		—		12
Airlines		31		—		—		31
Auto Components		20		—		—		20
Automobiles		98		—		—		98
Banks		512		—		—		512
Beverages		120		—		—		120
Biotechnology		86		—		—		86
Building Products		73		—		—		73
Capital Markets		81		—		—		81
Chemicals		65		—		—		65
Commercial Services & Supplies		15		—		—		15
Communications Equipment		13		—		—		13
Construction & Engineering		115		—		—		115
Construction Materials		37		—		—		37
Consumer Finance		6		—		—		6
Containers & Packaging		3		—		—		3
Diversified Financial Services		9		—		—		9
Diversified Telecommunication Services		149		—		—		149
Electric Utilities		168		—		—		168
Electrical Equipment		29		—		—		29
Electronic Equipment, Instruments & Components		4		—		—		4
Energy Equipment & Services		9		—		—		9
Equity Real Estate Investment Trusts (REITs)		692		—		—		692
Food & Staples Retailing		86		—		—		86
Food Products		73		—		—		73
Gas Utilities		50		—		—		50
Health Care Equipment & Supplies		81		—		—		81

34

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Notes to Consolidated 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)
Health Care Providers & Services	$	50	$	—	$	—		$	50
Health Care Technology		2		—		—			2
Hotels, Restaurants & Leisure		69		—		—			69
Household Durables		8		—		—			8
Household Products		85		—		—			85
Independent Power and Renewable Electricity Producers		1		—		—			1
Industrial Conglomerates		53		—		—			53
Information Technology Services		104		—		—			104
Insurance		104		—		—			104
Internet & Direct Marketing Retail		19		—		—			19
Internet Software & Services		34		—		—			34
Life Sciences Tools & Services		12		—		—			12
Machinery		16		—		—			16
Marine		3		—		—			3
Media		111		—		—			111
Metals & Mining		47		—		—			47
Multi-Utilities		153		—		—			153
Multi-Line Retail		7		—		—			7
Oil, Gas & Consumable Fuels		395		—		—			395
Paper & Forest Products		4		—		—			4
Personal Products		35		—		—			35
Pharmaceuticals		305		—		—			305
Professional Services		91		—		—			91
Real Estate Management & Development		192		—		—			192
Road & Rail		29		—		—			29
Semiconductors & Semiconductor Equipment		38		—		—	@		38
Software		51		—		—			51
Specialty Retail		26		—		—			26
Tech Hardware, Storage & Peripherals		33		—		—			33
Textiles, Apparel & Luxury Goods		40		—		—			40
Tobacco		91		—		—			91
Trading Companies & Distributors		21		—		—			21
Transportation Infrastructure		144		—		—			144
Water Utilities		46		—		—			46
Wireless Telecommunication Services		13		—		—			13
Total Common Stocks		5,112		—		—	@		5,112
Investment Companies		1,282		—		—			1,282
Short-Term Investments
Investment Company		830		—		—			830
U.S. Treasury Security		—		381		—			381
Total Short-Term Investments		830		381		—			1,211

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Foreign Currency Forward Exchange Contracts	$	—		$	79		$	—		$	79
Futures Contracts		22			—			—			22
Credit Default Swap Agreements		—			15			—			15
Interest Rate Swap Agreements		—			—	@		—			—	@
Total Return Swap Agreements		—			12			—			12
Total Assets		7,246			7,620			—	@		14,866
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(32	)		—			(32	)
Futures Contracts		(30	)		—			—			(30	)
Interest Rate Swap Agreements		—			(3	)		—			(3	)
Total Return Swap Agreements		—			(10	)		—			(10	)
Total Liabilities		(30	)		(45	)		—			(75	)
Total	$	7,216		$	7,575		$	—	@	$	14,791

@  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 Fund recognizes transfers between the levels as of the end of the period. As of March 31, 2017, the Fund did not have any investments transfer between investment levels.

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

	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, 2017	$	(—	@)

@  Value is less than $500.

35

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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

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

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

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

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency 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 Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) in the Consolidated Statement of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations for

the period is reflected in the Consolidated 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 Consolidated Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

4.  Derivatives: The Fund 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

36

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

analyses different from those associated with other portfolio investments. All of the Fund'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 Fund 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 Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund'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 Fund used during the period and their associated risks:

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Fund'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 Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

Swaps: The Fund 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 Fund'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 Fund'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 Fund 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 Fund'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 Fund may be either the buyer or seller in a credit default swap. Where the Fund is the buyer of a credit default swap contract, it would typically be entitled to receive the par

37

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

(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 Fund 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 Fund 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 Fund if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 Fund'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 Consolidated Portfolio of Investments and serves as an indicator of the current status of the payment/performance risk of the credit derivative. Alternatively, for credit default swaps on an index of credits, the quoted market prices and current values serve as an indicator of the current status of the payment/performance risk of the credit derivative. Generally, lower credit ratings and increasing market values, in absolute terms, represent a deterioration of the credit and a greater likelihood of an adverse credit event of the issuer.

When the Fund has an unrealized loss on a swap agreement, the Fund 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 Consolidated Statement of Assets and Liabilities.

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

Foreign Currency Forward Exchange Contracts: In connection with its investments in foreign securities, the Fund 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 Fund may use cross currency hedging or proxy hedging with respect to currencies in which the Fund has or expects to have portfolio or currency exposure. Cross currency hedges involve the sale of one currency against the positive exposure to

38

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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 Fund's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Fund 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 Fund as unrealized gain or loss. The Fund 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 Fund is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. The Fund may purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of

interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund 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 Consolidated Statement of Assets and Liabilities. Premium paid for purchasing options which expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. The Fund 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 Fund's exposure to the underlying instrument. Writing call options tend to decrease the Fund's exposure to the underlying instruments. When the Fund 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 Fund 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 Fund 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 Fund 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.

39

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

As of March 31, 2017, the Fund did not have any outstanding purchased or written options.

Transactions in written options for the six months ended March 31, 2017 were as follows:

Written Options	Notional Amount (000)			Premiums Received (000)
Options outstanding at September 30, 2016		9		$	112
Options written		33			360
Options closed		—	@@		(21	)
Options exercised		(33	)		(358	)
Options expired		(9	)		(93	)
Options outstanding at March 31, 2017		—		$	—

@@ Amount is less than 500.

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 Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2017.

	Asset Derivatives Consolidated 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	$	79
Futures Contract	Variation Margin on Futures Contracts	Commodity Risk		2	(a)
Futures Contracts	Variation Margin on Futures Contracts	Equity Risk		12	(a)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		8	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Equity Risk		12
Swap Agreement	Unrealized Appreciation on Swap Agreements	Credit Risk		8
Swap Agreement	Variation Margin on Swap Agreements	Credit Risk		7	(a)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		—	@(a)
Total			$	128

	Liability Derivatives Consolidated Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency	Unrealized Depreciation on
Forward Exchange	Foreign Currency Forward
Contracts	Exchange Contracts	Currency Risk	$	(32	)
Futures Contract	Variation Margin on Futures Contracts	Commodity Risk		(3	)(a)
Futures Contracts	Variation Margin on Futures Contracts	Equity Risk		(24	)(a)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		(3	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Equity Risk		(10	)
Swap Agreement	Unrealized Depreciation on Swap Agreements	Interest Rate Risk		(1	)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		(2	)(a)
Total			$	(75	)

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

@ Amount is less than $500.

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 31, 2017 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Options Purchased	$	2	(b)
Equity Risk	Options Written		(194	)
Currency Risk	Foreign Currency Forward Exchange Contracts		(62	)
Commodity Risk	Futures Contracts		(4	)
Equity Risk	Futures Contracts		187
Interest Rate Risk	Futures Contracts		30
Credit Risk	Swap Agreements		15
Equity Risk	Swap Agreements		(46	)
Interest Rate Risk	Swap Agreements		(8	)
Total		$	(80	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Options Written	$	4
Currency Risk	Foreign Currency Forward Exchange Contracts		37
Commodity Risk	Futures Contracts		(7	)
Equity Risk	Futures Contracts		(22	)
Interest Rate Risk	Futures Contracts		7
Equity Risk	Swap Agreements		(7	)
Credit Risk	Swap Agreements		6
Interest Rate Risk	Swap Agreements		(21	)
Total		$	(3	)

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

40

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

At March 31, 2017, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives(c)	Assets(d) (000)		Liabilities(d) (000)
Foreign Currency Forward Exchange Contracts	$	79	$	(32	)
Swap Agreements		20		(11	)
Total	$	99	$	(43	)

(c) Excludes exchange traded derivatives.

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

The Fund 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 Fund 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 Fund 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 Fund 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 Fund'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, 2017.

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received (000)		Net Amount (not less than $0) (000)
Australia and New Zealand Banking Group	$	10		$	(2	)	$	—	$	8
Bank of America NA		—	@		—			—		-—	@
Bank of Montreal		—	@		—			—		—	@
Barclays Bank PLC		6			(—	@)		—		6
BNP Paribas SA		1			(1	)		—		0
Citibank NA		23			(9	)		—		14
Commonwealth Bank of Australia		3			—			—		3
Credit Suisse International		—	@		—			—		—	@
Goldman Sachs International		2			(—	@)		—		2
HSBC Bank PLC		6			(6	)		—		0
JPMorgan Chase Bank NA		46			(18	)		—		28
State Street Bank and Trust Co.		—	@		(—	@)		—		0
UBS AG		2			(1	)		—		1
Total	$	99		$	(37	)	$	—	$	62
Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Australia and New Zealand Banking Group	$	2		$	(2	)	$	—	$	0
Barclays Bank PLC		—	@		(—	@)		—		0
BNP Paribas SA		1			(1	)		—		0
Citibank NA		9			(9	)		—		0
Goldman Sachs International		—	@		(—	@)		—		0
HSBC Bank PLC		8			(6	)		—		2
JPMorgan Chase Bank NA		18			(18	)		—		0
State Street Bank and Trust Co.		4			(—	@)		—		4
UBS AG		1			(1	)		—		0
Total	$	43		$	(37	)	$	—	$	6

@ Amount is less than $500.

For the six months ended March 31, 2017, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	9,559,000
Futures Contracts:
Average monthly original value	$	9,884,000
Swap Agreements:
Average monthly notional amount	$	2,699,000
Options Purchased:
Average monthly notional amount		—	@@
Options Written:
Average monthly notional amount		2,000

@@ Amount is less than 500.

41

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

5.  When-Issued/Delayed Delivery Securities: The Fund 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 Fund 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 Fund 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 Fund'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 Fund.

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

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

8.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund 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 Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds 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 Fund owns shares of real estate investment trusts ("REITs") which report information on the source of their distributions annually in the following calendar year. A portion of distributions received from REITs during the year is estimated to be a return of capital and is recorded as a reduction of their cost.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.65% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund 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 Fund'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, 2017, approximately $47,000 of advisory fees were waived and approximately $209,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser provides investment advisory services to the Subsidiary pursuant to the Subsidiary Investment Management Agreement (the "Agreement"). Under the Agreement, the Subsidiary will pay the Adviser at the end of each fiscal quarter, calculated by applying a quarterly rate, based on the annual rate of 0.05%, to the average daily net assets of the Subsidiary.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's

42

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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 Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust 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 Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

The Trust 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 Fund 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 Fund'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 and Class C shares.

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

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Trust 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, 2017, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $8,291,000 and $8,015,000, respectively. For the six months ended March 31, 2017, purchases and sales of long-term U.S. Government securities were approximately $9,033,000 and $9,292,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2017, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of the Liquidity Funds during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2017 (000)
$	1,103	$	5,525	$	5,798	$	3	$	830

The Fund 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 Fund 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, 2017, advisory fees paid were reduced by less than $500 relating to the Fund'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, 2017.

A summary of the Fund's transactions in shares of the Emerging Markets Fixed Income Opportunities Portfolio during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2017 (000)
$	747	$	—	$	—	$	27	$	733

43

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

The Fund 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 Fund 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, 2017, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the High Yield Portfolio. The High Yield Portfolio has a cost basis of approximately $550,000 at March 31, 2017.

A summary of the Fund's transactions in shares of the High Yield Portfolio during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Realized Loss (000)			Value March 31, 2017 (000)
$	690	$	—	$	150	$	21	$	(8	)	$	546

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2017, the Fund did not engage in any cross-trade transactions.

The Fund 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 Fund.

H. Federal Income Taxes: It is the Fund'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 Fund 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 consolidated financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded that there are no significant uncertain tax positions that would require recognition in the consolidated financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Consolidated Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended September 30, 2016, 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 2016 and 2015 was as follows:

2016 Distributions Paid From:		2015 Distributions Paid From:
Ordinary Income (000)		Ordinary Income (000)
$	308	$	45

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 tax adjustments on passive foreign investment companies sold by

44

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

the Fund, resulted in the following reclassifications among the components of net assets at September 30, 2016:

Distributions in Excess of Net Investment Income (000)			Accumulated Net Realized Loss (000)		Paid-in- Capital (000)
$	(17	)	$	17	$	—

At September 30, 2016, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	148	$	—

At September 30, 2016, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $390,000 that do not have an expiration date.

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 Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $150,000,000 committed, unsecured revolving line of credit facility (the "facility") with State Street. This facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or one month libor rate plus a spread. The facility also has a commitment fee of 0.25% per annum based on the unused portion of the facility. During the six months ended March 31, 2017, the Fund did not have any borrowings under the facility.

J. Other: At March 31, 2017, the Fund did not have record owners of 10% or greater.

K. Accounting Pronouncement: In October 2016, the Securities and Exchange Commission ("SEC") issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the Fund's net assets or results of operations. Although still evaluating the potential impacts of the Investment Company Reporting Modernization to the Fund, management

expects that the impact of the Fund's adoption will be limited to additional financial statement disclosures.

45

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited)

MORGAN STANLEY INVESTMENT MANAGEMENT INC.
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

We are required by federal law to provide you with a copy of our privacy policy annually. This policy applies to current and former individual investors in funds managed or sponsored by Morgan Stanley Investment Management Inc. ("MSIM") as well as current and former individual clients of MSIM. This policy is not applicable to partnerships, corporations, trusts or other non-individual clients or investors. Please note that we may amend this policy at any time, and will inform you of any changes as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Notice describes what non-public personal information we collect about you, why 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 to affiliated companies in the Morgan Stanley family of companies ("other Morgan Stanley companies"). It also discloses how you may limit use of certain shared information for marketing purposes by other Morgan Stanley branded companies. Throughout this policy, we refer to the non-public information that personally identifies you or your accounts as "personal information.''

1.  WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?

We obtain personal information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources.

For example:

•  We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through subscription documents, 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.

•  If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies." Please consult the Terms of Use of these sites for more details.

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

We may disclose personal information we collect about you to other Morgan Stanley companies and to non-affiliated third parties.

a. Information We Disclose to Other Morgan Stanley Companies.

We may disclose personal information to other Morgan Stanley companies for a variety of reasons, including to manage your account(s) effectively, to service and process your transactions, to let you know about products and services offered by us and other Morgan Stanley companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from other Morgan Stanley companies are developed under conditions designed to safeguard your personal information.

46

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

b. Information We Disclose to Non-affiliated Third Parties.

We do not disclose personal information that we collect about you to non-affiliated third parties except to those who provide marketing services on our behalf, to financial institutions with whom we have joint marketing agreements, and as otherwise required or permitted by law. For example, we may disclose personal information to nonaffiliated third parties for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with a non-affiliated third party, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information 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 to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information.

4.  HOW CAN YOU LIMIT THE SHARING OF CERTAIN TYPES OF PERSONAL INFORMATION WITH OTHER MORGAN STANLEY COMPANIES?

We offer you choices as to whether we share with other Morgan Stanley companies the personal information that was collected to determine your eligibility for products and services you request ("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 other Morgan Stanley companies ("opt-out"), we may still share personal information, including eligibility information, with those companies in circumstances excluded from the opt-out under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN TYPES OF PERSONAL INFORMATION BY OTHER MORGAN STANLEY COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit other Morgan Stanley branded 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 Other Morgan Stanley Companies from using personal information about you that we may share with them for marketing their products and services to you, Other Morgan Stanley Companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the Other Morgan Stanley Company has its own relationship with you.

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

If you wish to limit our sharing of eligibility information about you with other Morgan Stanley companies or other Morgan Stanley 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

47

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

Your written 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 if 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.

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 have a joint account, your direction for us not to share this information with other Morgan Stanley companies and for those other Morgan Stanley companies not to use your personal information for marketing will be applied to all account holders on that 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 Morgan Stanley products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

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

If, at any time in the future, an affiliated company becomes a non-affiliated 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 non-affiliated 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 non-affiliated 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 affiliated companies and non-affiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with non-affiliated third parties or other Morgan Stanley companies unless you provide us with your written consent to share such information ("opt-in").

If you wish to receive offers for investment products and services offered by or through other Morgan Stanley companies, please notify us in writing at the following address:

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

Your authorization should include your name, address, telephone number and account number(s) to which the opt-in applies and should not be sent with any other correspondence. In order to process your authorization, we require that the authorization be provided by you directly and not through a third party.

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 information with our affiliates to comply with California privacy laws that apply to us.

48

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Trustee and Officer Information (unaudited)

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

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

Perkins Coie LLP
30 Rockefeller Plaza
New York, New York 10112

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, 100 F Street, NE, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust 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 or summary prospectus of the applicable Fund of Morgan Stanley Institutional Fund Trust, which describes in detail the Fund'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 Fund, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

49

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

© 2017 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFGMAPSAN
1784136 EXP 05.31.18

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Strategist Portfolio

Semi-Annual Report

March 31, 2017

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Table of Contents

Shareholders' Letter	2
Consolidated Expense Example	3
Consolidated Portfolio of Investments	4
Consolidated Statement of Assets and Liabilities	30
Consolidated Statement of Operations	32
Consolidated Statements of Changes in Net Assets	33
Consolidated Financial Highlights	35
Notes to Consolidated Financial Statements	40
Privacy Notice	54
Trustee and Officer Information	57

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund 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 Fund'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 Fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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 "Fund") 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 2017

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Expense Example (unaudited)

Global Strategist Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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, 2017 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund'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 Fund 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 10/1/16		Actual Ending Account Value 3/31/17		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	$	1,038.40	$	1,021.34	$	3.66	$	3.63		0.72	%
Global Strategist Portfolio Class A		1,000.00		1,037.10		1,019.65		5.38		5.34		1.06
Global Strategist Portfolio Class L		1,000.00		1,034.30		1,017.10		7.96		7.90		1.57
Global Strategist Portfolio Class C		1,000.00		1,032.40		1,015.86		9.22		9.15		1.82
Global Strategist Portfolio Class IS		1,000.00		1,038.70		1,021.49		3.51		3.48		0.69

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (29.9%)
Agency Adjustable Rate Mortgage (0.1%)
United States (0.1%)
Federal Home Loan Mortgage Corporation, Conventional Pool:
2.53%, 7/1/45	$	261	$	266
Agency Fixed Rate Mortgages (2.1%)
United States (2.1%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
3.50%, 1/1/44 - 6/1/45		1,414		1,453
6.50%, 5/1/32 - 7/1/32		57		63
7.50%, 5/1/35		6		7
Federal National Mortgage Association,
April TBA:
3.00%, 4/1/32 (a)		250		256
3.50%, 4/1/47 (a)		654		669
4.00%, 4/1/47 (a)		134		141
Conventional Pools:
3.00%, 3/1/30 - 5/1/30		355		365
3.50%, 3/1/47		220		225
4.00%, 4/1/45 - 9/1/45		1,529		1,609
4.50%, 3/1/41 - 11/1/44		376		407
5.00%, 1/1/41 - 3/1/41		886		978
6.00%, 1/1/38		10		11
6.50%, 12/1/29		20		22
7.00%, 12/1/17 - 2/1/31		231		255
7.50%, 8/1/37		12		15
Government National Mortgage Association,
Various Pools:
4.00%, 8/20/41 - 11/20/42		517		550
5.50%, 8/15/39		56		63
				7,089
Asset-Backed Securities (0.1%)
United States (0.1%)
CVS Pass-Through Trust,
6.04%, 12/10/28		323		364
Collateralized Mortgage Obligations — Agency Collateral Series (0.1%)
United States (0.1%)
Federal Home Loan Mortgage Corporation,
2.79%, 1/25/22		75		77
2.97%, 10/25/21		90		93
IO REMIC
5.14%, 4/15/39 (b)		88		8
				178
Commercial Mortgage-Backed Securities (0.7%)
United States (0.7%)
COMM Mortgage Trust,
3.28%, 1/10/46		305		309
4.74%, 7/15/47 (b)(c)		152		133

	Face Amount (000)		Value (000)
JP Morgan Chase Commercial Mortgage Securities Trust,
4.39%, 7/15/46 (c)	$	100	$	107
4.57%, 7/15/47 (b)(c)		745		590
JPMBB Commercial Mortgage Securities Trust,
3.96%, 9/15/47 (b)(c)		205		167
4.56%, 9/15/47 (b)(c)		263		214
4.66%, 8/15/47 (b)(c)		361		300
UBS-Barclays Commercial Mortgage Trust,
3.53%, 5/10/63		255		266
WF-RBS Commercial Mortgage Trust,
3.99%, 10/15/57 (b)(c)		362		284
				2,370
Corporate Bonds (8.8%)
Australia (0.5%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	400		479
BHP Billiton Finance USA Ltd.,
3.85%, 9/30/23	$	170		181
Commonwealth Bank of Australia,
1.75%, 11/7/19 (c)		350		347
Macquarie Bank Ltd.,
6.63%, 4/7/21 (c)		270		305
Origin Energy Finance Ltd.,
3.50%, 10/9/18 (c)		200		203
QBE Insurance Group Ltd.,
2.40%, 5/1/18 (c)		200		200
Transurban Finance Co., Pty Ltd.,
4.13%, 2/2/26 (c)		170		175
				1,890
Belgium (0.1%)
Anheuser-Busch InBev Finance, Inc.,
3.70%, 2/1/24		300		310
Canada (0.3%)
Brookfield Asset Management, Inc.,
5.80%, 4/25/17		295		296
Goldcorp, Inc.,
3.70%, 3/15/23		198		202
Royal Bank of Canada,
2.75%, 2/1/22		625		631
				1,129
Chile (0.1%)
Empresa Nacional de Telecomunicaciones SA,
4.75%, 8/1/26 (c)		250		257
China (0.1%)
Baidu, Inc.,
3.25%, 8/6/18		225		229
Want Want China Finance Ltd.,
1.88%, 5/14/18 (c)		200		199
				428

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Colombia (0.1%)
Ecopetrol SA,
5.88%, 9/18/23	$	460	$	500
France (1.1%)
Air Liquide Finance SA,
1.75%, 9/27/21 (c)		200		193
AXA SA,
3.94%, 11/7/24 (b)(d)	EUR	500		559
Banque Federative du Credit Mutuel SA,
2.00%, 9/19/19		500		559
BNP Paribas SA,
3.80%, 1/10/24 (c)	$	250		249
5.00%, 1/15/21		95		103
BPCE SA,
5.15%, 7/21/24 (c)		450		463
Credit Agricole Assurances SA,
4.25%, 1/13/25 (b)(d)	EUR	500		541
Danone SA,
1.69%, 10/30/19 (c)	$	475		469
Electricite de France SA,
5.00%, 1/22/26 (b)(d)	EUR	300		322
TOTAL SA,
2.25%, 2/26/21 (b)(d)		200		214
				3,672
Germany (0.5%)
Bayer AG,
3.75%, 7/1/74 (b)		300		333
Daimler Finance North America LLC,
1.50%, 7/5/19 (c)	$	300		296
Deutsche Telekom International Finance BV,
3.60%, 1/19/27 (c)		150		150
Muenchener Rueckversicherungs- Gesellschaft AG in Muenchen,
6.00%, 5/26/41 (b)	EUR	400		508
Siemens Financieringsmaatschappij N.V.,
1.30%, 9/13/19 (c)	$	250		246
Vier Gas Transport GmbH,
3.13%, 7/10/23	EUR	100		123
				1,656
Hong Kong (0.1%)
CK Hutchison International 16 Ltd.,
1.88%, 10/3/21 (c)	$	200		193
Israel (0.1%)
Teva Pharmaceutical Finance Netherlands III BV,
2.20%, 7/21/21		315		304
Italy (0.3%)
Assicurazioni Generali SpA,
10.13%, 7/10/42 (b)	EUR	400		562
FCA Capital Ireland PLC,
1.38%, 4/17/20		250		272

	Face Amount (000)		Value (000)
Telecom Italia Finance SA,
7.75%, 1/24/33 EUR		80	$	113
				947
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		382
Netherlands (0.6%)
ABN Amro Bank N.V.,
2.50%, 10/30/18 (c)		300		303
2.88%, 6/30/25 (b)	EUR	250		281
ASR Nederland N.V.,
5.00%, 9/30/24 (b)(d)		500		579
Cooperatieve Rabobank UA,
3.95%, 11/9/22	$	250		257
Series G
3.75%, 11/9/20	EUR	300		358
ING Bank N.V.,
5.80%, 9/25/23 (c)	$	240		267
				2,045
Spain (0.3%)
Santander Issuances SAU,
5.18%, 11/19/25		600		623
Telefonica Emisiones SAU,
4.71%, 1/20/20	EUR	300		361
				984
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 (0.6%)
Aquarius and Investments PLC for Zurich Insurance Co., Ltd.,
4.25%, 10/2/43 (b)	EUR	450		543
Credit Suisse AG,
0.63%, 11/20/18		550		593
6.00%, 2/15/18	$	90		93
Credit Suisse Group AG,
3.57%, 1/9/23 (c)		325		325
UBS Group Funding Switzerland AG,
3.49%, 5/23/23 (c)		500		504
				2,058
United Kingdom (0.8%)
Diageo Capital PLC,
1.50%, 5/11/17		215		215
Experian Finance PLC,
2.38%, 6/15/17 (c)		400		400

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United Kingdom (cont'd)
GlaxoSmithKline Capital, Inc.,
6.38%, 5/15/38	$	100	$	131
Heathrow Funding Ltd.,
4.60%, 2/15/18	EUR	300		333
Lloyds Bank PLC,
6.50%, 3/24/20		450		562
Nationwide Building Society,
3.90%, 7/21/25 (c)	$	200		208
6.25%, 2/25/20 (c)		300		332
NGG Finance PLC,
5.63%, 6/18/73 (b)	GBP	200		278
Standard Chartered PLC,
2.10%, 8/19/19 (c)	$	300		298
				2,757
United States (2.9%)
Abbott Laboratories,
3.40%, 11/30/23		325		329
Air Lease Corp.,
2.13%, 1/15/20		400		397
Apple, Inc.,
2.50%, 2/9/22		500		503
AT&T, Inc.,
4.25%, 3/1/27		150		152
4.50%, 3/9/48		191		171
Bank of America Corp.,
MTN
4.20%, 8/26/24		100		102
5.00%, 1/21/44		250		273
Burlington Northern Santa Fe LLC,
4.55%, 9/1/44		195		206
Capital One NA,
1.85%, 9/13/19		400		397
Charter Communications Operating LLC/ Charter Communications Operating Capital,
6.48%, 10/23/45		150		173
Citigroup, Inc.,
5.50%, 9/13/25		250		274
8.13%, 7/15/39		175		258
Coca-Cola Co.,
3.20%, 11/1/23		250		258
Comcast Corp.,
4.60%, 8/15/45		130		135
Discover Bank,
2.00%, 2/21/18		345		345
Enterprise Products Operating LLC,
3.35%, 3/15/23		275		278
Five Corners Funding Trust,
4.42%, 11/15/23 (c)		350		373
Ford Motor Credit Co. LLC,
2.68%, 1/9/20		300		302

	Face Amount (000)		Value (000)
General Motors Financial Co., Inc.,
2.35%, 10/4/19	$	200	$	200
Goldman Sachs Group, Inc. (The),
2.30%, 12/13/19		340		340
MTN
4.80%, 7/8/44		275		291
Home Depot, Inc.,
5.88%, 12/16/36		100		127
HSBC USA, Inc.,
3.50%, 6/23/24		100		102
Johnson Controls International PLC,
3.90%, 2/14/26		175		182
JPMorgan Chase & Co.,
3.20%, 6/15/26		250		243
Liberty Mutual Group, Inc.,
4.85%, 8/1/44 (c)		100		102
McDonald's Corp.,
MTN
3.38%, 5/26/25		275		278
Medtronic, Inc.,
3.63%, 3/15/24		250		260
Merck & Co., Inc.,
2.80%, 5/18/23		250		251
Microsoft Corp.,
1.55%, 8/8/21		300		292
Monongahela Power Co.,
5.40%, 12/15/43 (c)		100		118
NBC Universal Media LLC,
4.38%, 4/1/21		175		188
Oracle Corp.,
3.40%, 7/8/24		175		180
PepsiCo, Inc.,
3.60%, 3/1/24		250		263
Time Warner, Inc.,
3.88%, 1/15/26		325		326
UnitedHealth Group, Inc.,
4.25%, 3/15/43		150		153
Verizon Communications, Inc.,
4.67%, 3/15/55		231		207
Visa, Inc.,
3.15%, 12/14/25		200		201
Wal-Mart Stores, Inc.,
2.55%, 4/11/23		200		200
Wells Fargo & Co.,
3.00%, 10/23/26		525		503
				9,933
				30,116
Mortgages — Other (0.6%)
United Kingdom (0.1%)
Holmes Master Issuer PLC,
1.91%, 10/15/54 (b)(c)	GBP	362		456

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United States (0.5%)
Banc of America Alternative Loan Trust,
5.86%, 10/25/36	$	38	$	23
6.00%, 4/25/36		12		12
ChaseFlex Trust,
6.00%, 2/25/37		36		27
First Horizon Alternative Mortgage Securities Trust,
6.25%, 8/25/36		16		13
Freddie Mac Whole Loan Securities Trust,
3.00%, 9/25/45 - 7/25/46		577		560
3.50%, 5/25/45 - 7/25/46		799		803
4.00%, 5/25/45		69		70
GSR Mortgage Loan Trust,
5.75%, 1/25/37		24		23
Lehman Mortgage Trust,
5.50%, 11/25/35		9		8
6.50%, 9/25/37		32		24
				1,563
				2,019
Sovereign (16.7%)
Australia (0.9%)
Australia Government Bond,
2.75%, 11/21/27	AUD	750		573
3.25%, 4/21/25		3,190		2,556
				3,129
Austria (0.1%)
Austria Government Bond,
1.20%, 10/20/25 (c)	EUR	400		458
Belgium (0.8%)
Belgium Government Bond,
0.80%, 6/22/25 (c)		2,640		2,883
Bermuda (0.1%)
Bermuda Government International Bond,
4.85%, 2/6/24 (c)	$	390		413
Brazil (0.4%)
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/21 - 1/1/23	BRL	4,500		1,446
Canada (1.4%)
Canadian Government Bond,
0.50%, 3/1/22	CAD	1,382		1,008
1.50%, 6/1/23		2,691		2,045
3.25%, 6/1/21		2,127		1,743
				4,796
China (0.2%)
Sinopec Group Overseas Development 2013 Ltd.,
2.63%, 10/17/20	EUR	300		344
Sinopec Group Overseas Development 2015 Ltd.,
2.50%, 4/28/20 (c)	$	375		373
				717

	Face Amount (000)		Value (000)
France (0.5%)
France Government Bond OAT,
1.75%, 5/25/23	EUR	1,210	$	1,404
3.25%, 5/25/45		340		463
				1,867
Germany (0.5%)
Bundesrepublik Deutschland,
1.00%, 8/15/25		240		276
4.25%, 7/4/39		630		1,124
4.75%, 7/4/34		180		318
				1,718
Greece (0.3%)
Hellenic Republic Government Bond,
3.00%, 2/24/23 - 2/24/42 (e)		1,279		976
Hungary (0.2%)
Hungary Government International Bond,
5.75%, 11/22/23	$	580		657
Indonesia (0.2%)
Indonesia Government International Bond,
5.88%, 1/15/24 (c)		500		568
Ireland (0.1%)
Ireland Government Bond,
5.40%, 3/13/25	EUR	160		232
Italy (1.0%)
Italy Buoni Poliennali Del Tesoro,
0.65%, 11/1/20		1,470		1,578
1.50%, 6/1/25		270		280
2.35%, 9/15/24 (c)		1,108		1,311
5.00%, 9/1/40		200		276
				3,445
Japan (4.9%)
Japan Finance Organization for Municipalities,
1.90%, 6/22/18	JPY	60,000		551
Japan Government Ten Year Bond,
0.10%, 6/20/26		219,000		1,979
0.50%, 9/20/24		267,000		2,493
1.10%, 3/20/21 - 6/20/21		414,000		3,911
1.70%, 6/20/18		225,000		2,069
Japan Government Thirty Year Bond,
1.70%, 6/20/33 - 3/20/44		304,000		3,291
2.00%, 9/20/40		196,000		2,246
				16,540
Mexico (1.2%)
Mexican Bonos,
5.75%, 3/5/26	MXN	32,000		1,566
6.50%, 6/10/21		37,000		1,954
Petroleos Mexicanos,
4.88%, 1/18/24	$	410		415
6.38%, 1/23/45		140		137
				4,072

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Netherlands (0.2%)
Netherlands Government Bond,
0.25%, 7/15/25 (c)	EUR	650	$	691
Poland (0.1%)
Poland Government Bond,
4.00%, 10/25/23	PLN	650		173
Portugal (0.8%)
Portugal Obrigacoes do Tesouro OT,
2.88%, 7/21/26 (c)	EUR	1,314		1,319
4.13%, 4/14/27 (c)		1,238		1,339
				2,658
Russia (0.3%)
Russian Federal Bond - OFZ,
7.00%, 8/16/23	RUB	60,860		1,037
South Africa (0.2%)
South Africa Government Bond,
8.00%, 1/31/30	ZAR	12,370		837
Spain (0.7%)
Spain Government Bond,
0.75%, 7/30/21	EUR	790		862
1.95%, 7/30/30 (c)		920		973
Spain Government Inflation Linked Bond,
1.00%, 11/30/30 (c)		641		700
				2,535
United Kingdom (1.6%)
United Kingdom Gilt,
1.50%, 1/22/21	GBP	400		524
2.75%, 9/7/24		1,570		2,245
4.25%, 6/7/32 - 9/7/39		1,410		2,546
				5,315
				57,163
U.S. Treasury Securities (0.7%)
United States (0.7%)
U.S. Treasury Bonds,
2.50%, 2/15/45	$	970		872
3.50%, 2/15/39		428		471
3.88%, 8/15/40		841		973
				2,316
Total Fixed Income Securities (Cost $102,202)				101,881
	Shares
Common Stocks (48.9%)
Australia (1.6%)
AGL Energy Ltd.		3,690		74
Alumina Ltd.		13,108		18
Amcor Ltd.		6,258		72
AMP Ltd.		15,783		62
APA Group		5,948		41
Aristocrat Leisure Ltd.		2,875		40
Arrium Ltd. (f)(g)		14,100		—	@
ASX Ltd.		1,032		40

	Shares		Value (000)
Aurizon Holdings Ltd.		11,035	$	44
AusNet Services		9,534		12
Australia & New Zealand Banking Group Ltd.		15,858		386
Bank of Queensland Ltd.		2,059		19
Bendigo and Adelaide Bank Ltd.		2,550		24
BHP Billiton Ltd.		16,790		308
Boral Ltd.		6,272		28
Brambles Ltd.		8,578		61
Caltex Australia Ltd.		1,437		32
Challenger Ltd.		3,060		29
CIMIC Group Ltd.		523		14
Coca-Cola Amatil Ltd.		3,074		25
Cochlear Ltd.		304		31
Commonwealth Bank of Australia		9,171		602
Computershare Ltd.		2,512		27
Crown Resorts Ltd.		1,926		17
CSL Ltd.		2,424		232
Dexus Property Group REIT		5,206		39
Domino's Pizza Enterprises Ltd.		331		15
DUET Group		12,954		28
Flight Centre Travel Group Ltd.		298		7
Fortescue Metals Group Ltd.		8,125		39
Goodman Group REIT		9,701		57
GPT Group REIT		9,670		38
Harvey Norman Holdings Ltd.		2,939		10
Healthscope Ltd.		9,046		16
Incitec Pivot Ltd.		9,035		26
Insurance Australia Group Ltd.		12,999		60
James Hardie Industries PLC CDI		2,405		38
Lend Lease Group REIT		2,963		35
Macquarie Group Ltd.		1,645		113
Medibank Pvt Ltd.		14,765		32
Mirvac Group REIT		20,007		34
National Australia Bank Ltd.		14,337		365
Newcrest Mining Ltd.		4,019		68
Oil Search Ltd.		7,295		40
Orica Ltd.		2,007		27
Origin Energy Ltd.		9,380		51
Qantas Airways Ltd.		2,583		8
QBE Insurance Group Ltd.		7,393		73
Ramsay Health Care Ltd.		747		40
REA Group Ltd.		283		13
Rio Tinto Ltd.		2,237		103
Santos Ltd.		9,655		28
Scentre Group REIT		28,687		94
Seek Ltd.		1,790		22
Shopping Centres Australasia Property Group REIT		72		—	@
Sonic Healthcare Ltd.		2,146		36
South32 Ltd.		27,929		59
Stockland REIT		13,734		49
Suncorp Group Ltd.		6,891		70
Sydney Airport		5,904		31
Tabcorp Holdings Ltd.		4,444		16

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Australia (cont'd)
Tatts Group Ltd.		7,750	$	26
Telstra Corp., Ltd.		22,834		81
TPG Telecom Ltd.		1,811		10
Transurban Group		10,927		97
Treasury Wine Estates Ltd.		3,929		37
Vicinity Centres REIT		17,871		39
Vocus Group Ltd.		2,805		9
Wesfarmers Ltd.		6,016		207
Westfield Corp. REIT		10,603		72
Westpac Banking Corp.		17,942		481
Woodside Petroleum Ltd.		4,095		100
Woolworths Ltd.		6,774		137
				5,314
Austria (0.1%)
BUWOG AG (f)		172		4
Erste Group Bank AG		2,803		91
Immofinanz AG (f)		3,441		7
Raiffeisen Bank International AG (f)		1,173		27
Voestalpine AG		1,248		49
				178
Belgium (0.4%)
Ageas		2,822		110
Anheuser-Busch InBev N.V.		6,337		696
Colruyt SA		850		42
Groupe Bruxelles Lambert SA		1,368		124
KBC Group N.V.		5,358		355
Umicore SA		1,472		84
				1,411
Canada (2.0%)
Agnico-Eagle Mines Ltd.		1,200		51
Agrium, Inc.		700		67
Alimentation Couche-Tard, Inc., Class B		2,300		104
AltaGas Ltd.		900		21
ARC Resources Ltd.		1,900		27
Atco Ltd., Class I		400		16
Bank of Montreal		3,500		261
Bank of Nova Scotia		6,500		380
Barrick Gold Corp.		6,100		116
BCE, Inc.		800		35
Blackberry Ltd. (f)		2,700		21
Bombardier, Inc. (f)		10,300		16
Brookfield Asset Management, Inc., Class A		4,650		169
CAE, Inc.		1,400		21
Cameco Corp.		2,200		24
Canadian Imperial Bank of Commerce		2,100		181
Canadian National Railway Co.		4,200		310
Canadian Natural Resources Ltd.		5,900		193
Canadian Pacific Railway Ltd.		800		117
Canadian Tire Corp. Ltd., Class A		400		48
Canadian Utilities Ltd., Class A		700		20
CCL Industries, Inc., Class B		200		44

	Shares		Value (000)
Cenovus Energy, Inc.		4,500	$	51
CGI Group, Inc., Class A (f)		1,200		57
CI Financial Corp.		1,300		26
Constellation Software, Inc.		100		49
Crescent Point Energy Corp.		2,900		31
Dollarama, Inc.		600		50
Eldorado Gold Corp.		3,700		13
Element Fleet Management Corp.		2,100		19
Emera, Inc.		300		11
Empire Co. Ltd., Class A		900		14
Enbridge, Inc.		1,418		59
Enbridge, Inc.		5,100		214
Encana Corp.		5,200		61
Fairfax Financial Holdings Ltd.		100		45
Finning International, Inc.		900		17
First Capital Realty, Inc.		700		11
First Quantum Minerals Ltd.		3,700		39
Fortis, Inc.		2,200		73
Franco-Nevada Corp.		900		59
George Weston Ltd.		300		26
Gildan Activewear, Inc.		1,200		32
Goldcorp, Inc.		4,400		64
Great-West Lifeco, Inc.		1,600		44
H&R Real Estate Investment Trust REIT		800		14
Husky Energy, Inc. (f)		1,955		22
Hydro One Ltd. (c)		1,000		18
IGM Financial, Inc.		500		15
Imperial Oil Ltd.		1,600		49
Industrial Alliance Insurance & Financial Services, Inc.		600		26
Intact Financial Corp.		700		50
Inter Pipeline Ltd.		1,900		40
Jean Coutu Group PJC, Inc. (The), Class A		400		6
Keyera Corp.		1,000		29
Kinross Gold Corp. (f)		6,400		23
Lightstream Resources Ltd. (f)(g)		1,136		—
Linamar Corp.		300		14
Loblaw Cos., Ltd.		1,173		64
Magna International, Inc.		2,100		91
Manulife Financial Corp.		10,800		192
Methanex Corp.		500		23
Metro, Inc.		1,300		40
National Bank of Canada		1,800		76
Onex Corp.		500		36
Open Text Corp.		1,400		48
Pembina Pipeline Corp.		2,100		67
Peyto Exploration & Development Corp.		900		18
Potash Corp. of Saskatchewan, Inc.		4,500		77
Power Corp. of Canada		2,000		47
Power Financial Corp.		1,400		37
PrairieSky Royalty Ltd.		1,106		23
Restaurant Brands International, Inc.		1,200		67
RioCan Real Estate Investment Trust REIT		900		18
Rogers Communications, Inc., Class B		2,000		88

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Canada (cont'd)
Royal Bank of Canada		8,000	$	583
Saputo, Inc.		1,400		48
Seven Generations Energy Ltd., Class A (f)		1,300		24
Shaw Communications, Inc., Class B		2,200		46
Silver Wheaton Corp.		2,300		48
Smart Real Estate Investment Trust REIT		400		10
SNC-Lavalin Group, Inc.		800		31
Sun Life Financial, Inc.		3,300		120
Suncor Energy, Inc.		9,056		278
Teck Resources Ltd., Class B		3,000		66
TELUS Corp.		1,100		36
Thomson Reuters Corp.		1,800		78
Toronto-Dominion Bank (The)		10,000		501
Tourmaline Oil Corp. (f)		1,100		25
TransCanada Corp.		4,700		217
Turquoise Hill Resources Ltd. (f)		5,400		16
Valeant Pharmaceuticals International, Inc. (f)		1,800		20
Veresen, Inc.		1,700		19
Vermilion Energy, Inc.		600		22
West Fraser Timber Co. Ltd.		400		17
Yamana Gold, Inc.		4,700		13
				6,843
Chile (0.0%)
Antofagasta PLC		2,484		26
China (0.0%)
ASM Pacific Technology Ltd. (h)		1,300		18
Hanergy Thin Film Power Group Ltd. (f)(g)(h)(i)		42,000		—	@
WH Group Ltd. (c)(h)		43,500		37
Wynn Macau Ltd. (h)		8,400		17
Yum China Holdings, Inc. (f)		1,059		29
				101
Colombia (0.0%)
Millicom International Cellular SA SDR		1,326		74
Denmark (0.5%)
AP Moeller - Maersk A/S Series A		20		32
AP Moeller - Maersk A/S Series B		37		62
Carlsberg A/S Series B		66		6
Coloplast A/S Series B		81		6
Danske Bank A/S		4,086		139
DSV A/S		8,704		451
ISS A/S		6,431		243
Novo Nordisk A/S Series B		13,165		452
Novozymes A/S Series B		1,873		74
TDC A/S		363		2
Vestas Wind Systems A/S		2,356		192
				1,659
Finland (0.3%)
Fortum Oyj		5,723		91
Kone Oyj, Class B		4,765		209
Nokia Oyj		32,678		175
Nokian Renkaat Oyj		1,316		55

	Shares		Value (000)
Sampo Oyj, Class A		3,364	$	160
UPM-Kymmene Oyj		10,953		257
				947
France (5.6%)
Accor SA		18,768		782
Aeroports de Paris (ADP)		1,160		143
Air Liquide SA		2,883		329
Alstom SA (f)		3,867		116
Atos SE		5,054		625
AXA SA		15,856		410
BNP Paribas SA		20,002		1,332
Bouygues SA		16,211		660
Bureau Veritas SA		2,183		46
Cap Gemini SA		11,102		1,025
Carrefour SA		5,203		123
CGG SA (f)		59		—	@
Christian Dior SE		667		155
Cie de Saint-Gobain		31,426		1,614
Cie Generale des Etablissements Michelin		1,742		212
Credit Agricole SA		18,199		247
Danone SA		6,265		426
Edenred		1,712		40
Electricite de France SA		3,973		33
Engie SA		11,492		163
Essilor International SA		1,435		174
Eutelsat Communications SA		750		17
Groupe Eurotunnel SE		23,019		232
Hermes International		141		67
ICADE REIT		81		6
JCDecaux SA		611		21
Kering		1,274		330
L'Oreal SA		2,260		434
LVMH Moet Hennessy Louis Vuitton SE		2,157		474
Metropole Television SA		2,362		53
Natixis SA		9,419		58
Orange SA		18,237		283
Pernod Ricard SA		1,742		206
Peugeot SA (f)		74,877		1,508
Publicis Groupe SA		983		69
Renault SA		1,782		155
Rexel SA		15,056		273
Sanofi		10,884		983
SES SA		2,269		53
Societe Generale SA		14,173		719
Sodexo SA		1,149		135
Suez		3,938		62
TechnipFMC PLC (f)		1,752		57
TechnipFMC PLC (f)		781		25
Television Francaise 1		9,474		113
Thales SA		1,185		115
Total SA		19,681		995
Unibail-Rodamco SE REIT		1,518		355

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
France (cont'd)
Vallourec SA (f)		2,270	$	15
Veolia Environnement SA		5,271		99
Vinci SA		26,413		2,094
Vivendi SA		15,248		296
				18,957
Germany (3.0%)
Adidas AG		1,632		310
Allianz SE (Registered)		3,812		706
Axel Springer SE		158		9
BASF SE		9,651		957
Bayer AG (Registered)		6,343		731
Bayerische Motoren Werke AG		2,629		240
Beiersdorf AG		799		76
Commerzbank AG		14,318		129
Continental AG		501		110
Daimler AG (Registered)		5,812		429
Deutsche Bank AG (Registered) (f)		11,045		190
Deutsche Boerse AG (f)		9,061		830
Deutsche Lufthansa AG (Registered)		3,055		50
Deutsche Post AG (Registered)		4,704		161
Deutsche Telekom AG (Registered)		24,414		428
E.ON SE		15,003		119
Fraport AG Frankfurt Airport Services Worldwide		2,314		164
Fresenius Medical Care AG & Co., KGaA		1,462		123
Fresenius SE & Co., KGaA		2,950		237
Henkel AG & Co., KGaA		1,334		148
Henkel AG & Co., KGaA (Preference)		1,920		246
Infineon Technologies AG		10,042		205
K&S AG (Registered)		1,227		29
Lanxess AG		777		52
Linde AG		1,276		212
Merck KGaA		984		112
Metro AG		997		32
Muenchener Rueckversicherungs AG (Registered)		1,614		316
Osram Licht AG		718		45
Porsche Automobil Holding SE (Preference)		732		40
ProSiebenSat.1 Media SE (Registered)		9,214		408
RWE AG (f)		3,195		53
SAP SE		8,658		850
Siemens AG (Registered)		7,184		984
Stroeer SE & Co. KGaA		1,540		86
Suedzucker AG		385		10
ThyssenKrupp AG		4,602		113
TUI AG		3,051		42
Uniper SE (f)		1,597		27
Volkswagen AG		272		40
Volkswagen AG (Preference)		1,362		198
				10,247
Greece (0.0%)
National Bank of Greece SA (f)		95		—	@

	Shares		Value (000)
Hong Kong (0.6%)
AIA Group Ltd.		65,600	$	414
Bank of East Asia Ltd. (The)		6,677		28
BOC Hong Kong Holdings Ltd.		20,500		84
Cathay Pacific Airways Ltd.		6,000		9
Cheung Kong Infrastructure Holdings Ltd.		4,000		31
Cheung Kong Property Holdings Ltd.		14,864		100
CK Hutchison Holdings Ltd.		14,864		183
CLP Holdings Ltd.		9,000		94
First Pacific Co., Ltd.		12,000		9
Galaxy Entertainment Group Ltd.		13,000		71
Hang Lung Group Ltd.		5,000		21
Hang Lung Properties Ltd.		12,000		31
Hang Seng Bank Ltd.		4,200		85
Henderson Land Development Co., Ltd.		5,901		37
HK Electric Investments & HK Electric Investments Ltd. (c)		14,500		13
HKT Trust & HKT Ltd.		14,000		18
Hong Kong & China Gas Co., Ltd.		41,774		83
Hong Kong Exchanges and Clearing Ltd.		6,221		157
Hongkong Land Holdings Ltd.		6,300		48
Hysan Development Co., Ltd.		3,000		14
Kerry Properties Ltd.		3,500		12
Link REIT		12,033		84
MGM China Holdings Ltd.		5,200		11
MTR Corp., Ltd.		8,128		46
New World Development Co., Ltd.		32,641		40
NWS Holdings Ltd.		8,000		15
PCCW Ltd.		23,000		13
Power Assets Holdings Ltd.		7,500		65
Sands China Ltd.		13,200		61
Shangri-La Asia Ltd.		6,000		9
Sino Land Co., Ltd.		17,078		30
SJM Holdings Ltd.		11,000		9
Sun Hung Kai Properties Ltd.		7,504		110
Swire Pacific Ltd., Class A		3,000		30
Swire Properties Ltd.		6,350		20
Techtronic Industries Co., Ltd.		7,500		30
Wharf Holdings Ltd. (The)		7,200		62
Wheelock & Co., Ltd.		4,000		32
Yue Yuen Industrial Holdings Ltd.		4,000		16
				2,225
Ireland (0.2%)
Bank of Ireland (f)		280,514		70
CRH PLC		16,531		583
DCC PLC		548		48
				701
Italy (1.3%)
Assicurazioni Generali SpA		10,900		173
Atlantia SpA		32,159		830
Banco BPM SpA		1,913		6
Enel SpA		59,837		282

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Italy (cont'd)
Eni SpA		20,963	$	343
Ferrari N.V.		938		70
Intesa Sanpaolo SpA		218,729		593
Italgas SpA (f)		3,902		17
Leonardo-Finmeccanica SpA (f)		1,132		16
Luxottica Group SpA		1,055		58
Mediaset SpA		67,196		278
Mediobanca SpA		99,831		900
Prysmian SpA		1,136		30
Rizzoli Corriere Della Sera Mediagroup SpA (f)		636		1
Saipem SpA (f)		2,023		1
Snam SpA		19,513		84
Telecom Italia SpA (f)		85,439		77
Telecom Italia SpA		60,436		44
Terna Rete Elettrica Nazionale SpA		8,893		44
UniCredit SpA		28,043		432
Unione di Banche Italiane SpA		13,725		53
				4,332
Japan (5.4%)
Advantest Corp.		1,200		22
Aeon Co., Ltd.		6,300		92
Aisin Seiki Co., Ltd.		2,100		103
Ajinomoto Co., Inc.		8,300		164
Asahi Glass Co., Ltd.		9,000		73
Asahi Group Holdings Ltd.		2,800		106
Asahi Kasei Corp.		14,000		136
Astellas Pharma, Inc.		14,400		190
Bridgestone Corp.		5,000		202
Canon, Inc.		7,900		246
Central Japan Railway Co.		1,300		212
Chiba Bank Ltd. (The)		8,000		51
Chubu Electric Power Co., Inc.		4,400		59
Chugai Pharmaceutical Co., Ltd.		2,600		89
Chugoku Electric Power Co., Inc. (The)		2,000		22
Concordia Financial Group Ltd.		11,300		52
Dai Nippon Printing Co., Ltd.		6,000		65
Dai-ichi Life Holdings, Inc.		800		14
Daiichi Sankyo Co., Ltd.		5,100		115
Daikin Industries Ltd.		2,100		211
Daito Trust Construction Co., Ltd.		800		110
Daiwa House Industry Co., Ltd.		6,000		172
Daiwa Securities Group, Inc.		16,000		97
Denso Corp.		4,600		202
Dentsu, Inc.		1,700		92
East Japan Railway Co.		2,700		235
Eisai Co., Ltd.		2,100		109
Electric Power Development Co., Ltd.		1,400		33
FANUC Corp.		1,400		287
Fast Retailing Co., Ltd.		400		125
FUJIFILM Holdings Corp.		4,300		168
Fujitsu Ltd.		14,000		86

	Shares		Value (000)
Hankyu Hanshin Holdings, Inc.		3,600	$	117
Hitachi Ltd.		36,000		195
Hokkaido Electric Power Co., Inc.		2,200		17
Hokuriku Electric Power Co.		2,000		19
Honda Motor Co., Ltd.		800		24
Honda Motor Co., Ltd. ADR		10,395		315
Hoya Corp.		3,200		154
Ibiden Co., Ltd.		1,100		17
Inpex Corp.		3,200		31
Isetan Mitsukoshi Holdings Ltd.		2,800		31
Isuzu Motors Ltd.		400		5
ITOCHU Corp.		11,700		166
Japan Real Estate Investment Corp. REIT		9		48
Japan Steel Works Ltd. (The)		400		6
Japan Tobacco, Inc.		8,700		283
JFE Holdings, Inc.		3,500		60
JGC Corp.		2,000		35
JSR Corp.		1,600		27
JX Holdings, Inc.		2,100		10
Kansai Electric Power Co., Inc. (The)		3,700		45
Kao Corp.		4,500		247
Kawasaki Heavy Industries Ltd.		20,000		61
KDDI Corp.		17,000		446
Keikyu Corp.		5,000		55
Keio Corp.		5,000		40
Keyence Corp.		800		320
Kintetsu Group Holdings Co., Ltd.		22,000		79
Kirin Holdings Co., Ltd.		7,600		143
Kobe Steel Ltd. (f)		3,700		34
Komatsu Ltd.		7,400		193
Konica Minolta, Inc.		2,600		23
Kubota Corp.		9,800		147
Kuraray Co., Ltd.		2,600		39
Kyocera Corp.		2,400		134
Kyushu Electric Power Co., Inc.		2,000		21
LIXIL Group Corp.		2,900		74
Makita Corp.		1,600		56
Marubeni Corp.		15,900		98
Mazda Motor Corp.		2,600		37
Mitsubishi Chemical Holdings Corp.		11,700		91
Mitsubishi Corp.		9,700		210
Mitsubishi Electric Corp.		14,000		201
Mitsubishi Estate Co., Ltd.		9,000		164
Mitsubishi Heavy Industries Ltd.		28,000		112
Mitsubishi Motors Corp.		4,800		29
Mitsui & Co., Ltd.		14,600		211
Mitsui Fudosan Co., Ltd.		7,000		149
Mitsui OSK Lines Ltd.		9,000		28
Mizuho Financial Group, Inc.		109,300		200
MS&AD Insurance Group Holdings, Inc.		3,000		95
Murata Manufacturing Co., Ltd.		1,700		242
NGK Insulators Ltd.		2,000		45
Nidec Corp.		1,700		162

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Japan (cont'd)
Nikon Corp.		2,600	$	38
Nintendo Co., Ltd.		800		186
Nippon Building Fund, Inc. REIT		9		49
Nippon Electric Glass Co., Ltd.		3,000		18
Nippon Express Co., Ltd.		11,000		57
Nippon Steel Sumitomo Metal Corp.		6,000		138
Nippon Telegraph & Telephone Corp.		8,500		363
Nippon Yusen KK (f)		18,000		38
Nissan Motor Co., Ltd.		18,100		175
Nitto Denko Corp.		1,300		100
Nomura Holdings, Inc.		27,300		170
NSK Ltd.		5,300		76
NTT Data Corp.		1,600		76
NTT DoCoMo, Inc.		11,100		258
Odakyu Electric Railway Co., Ltd.		4,500		88
Oji Holdings Corp.		7,000		33
Olympus Corp.		1,800		69
Omron Corp.		1,400		61
Ono Pharmaceutical Co., Ltd.		3,800		79
Oriental Land Co., Ltd.		300		17
ORIX Corp.		7,900		117
Osaka Gas Co., Ltd.		22,000		84
Otsuka Holdings Co., Ltd.		300		14
Panasonic Corp.		14,100		159
Rakuten, Inc.		7,600		76
Resona Holdings, Inc.		5,500		30
Ricoh Co., Ltd.		6,000		49
Rohm Co., Ltd.		600		40
Secom Co., Ltd.		1,600		115
Sekisui House Ltd.		6,000		99
Seven & I Holdings Co., Ltd.		6,300		247
Sharp Corp. (f)		8,000		34
Shikoku Electric Power Co., Inc.		2,900		32
Shin-Etsu Chemical Co., Ltd.		2,500		217
Shionogi & Co., Ltd.		3,300		170
Shiseido Co., Ltd.		3,400		89
Shizuoka Bank Ltd. (The)		8,000		65
SMC Corp.		500		148
SoftBank Group Corp.		5,600		395
Sompo Holdings, Inc.		300		11
Sony Corp.		700		24
Sony Corp. ADR		6,835		231
Sumitomo Chemical Co., Ltd.		11,000		61
Sumitomo Corp.		8,800		118
Sumitomo Electric Industries Ltd.		12,500		207
Sumitomo Metal Mining Co., Ltd.		5,000		71
Sumitomo Mitsui Financial Group, Inc.		9,800		356
Sumitomo Mitsui Trust Holdings, Inc.		2,300		80
Sumitomo Realty & Development Co., Ltd.		5,000		130
Suzuki Motor Corp.		3,200		133
T&D Holdings, Inc.		4,400		64
Takeda Pharmaceutical Co., Ltd.		5,600		263

	Shares		Value (000)
TDK Corp.		800	$	51
Terumo Corp.		3,500		122
Tobu Railway Co., Ltd.		17,000		86
Tohoku Electric Power Co., Inc.		3,500		47
Tokio Marine Holdings, Inc.		3,700		156
Tokyo Electric Power Co. Holdings Inc, (f)		7,200		28
Tokyo Electron Ltd.		1,100		120
Tokyo Gas Co., Ltd.		20,000		91
Tokyu Corp.		9,000		64
Toppan Printing Co., Ltd.		6,000		61
Toray Industries, Inc.		14,000		124
Toshiba Corp. (f)		32,000		69
Toyota Industries Corp.		1,900		94
Toyota Motor Corp.		20,600		1,118
Trend Micro, Inc.		900		40
Unicharm Corp.		4,100		98
West Japan Railway Co.		1,700		111
Yahoo! Japan Corp.		14,400		67
Yamada Denki Co., Ltd.		7,200		36
Yamato Holdings Co., Ltd.		5,000		105
				18,437
Macau (0.0%)
Melco Crown Entertainment Ltd. ADR		1,000		19
Mexico (0.0%)
Fresnillo PLC		1,382		27
Netherlands (1.4%)
ABN AMRO Group N.V. CVA (c)		2,360		57
Akzo Nobel N.V.		3,884		322
ArcelorMittal (f)		11,436		96
ASML Holding N.V.		2,235		297
CNH Industrial N.V.		6,254		60
Fiat Chrysler Automobiles N.V. (f)		9,388		103
Fugro N.V. CVA (f)		617		10
Heineken N.V.		3,302		281
ING Groep N.V.		81,713		1,235
Koninklijke DSM N.V.		2,992		202
Koninklijke KPN N.V.		5,801		17
Koninklijke Philips N.V.		10,727		345
Koninklijke Vopak N.V.		945		41
PostNL N.V. (f)		4,371		21
Priceline Group, Inc. (The) (f)		238		424
Randstad Holding N.V.		13,358		771
Unilever N.V. CVA		13,508		671
				4,953
New Zealand (0.0%)
Auckland International Airport Ltd.		4,487		21
Contact Energy Ltd.		3,355		12
Fletcher Building Ltd.		3,166		19
Mercury NZ Ltd.		3,250		7
Meridian Energy Ltd.		6,024		12
Ryman Healthcare Ltd.		1,773		10
Spark New Zealand Ltd.		8,402		21
				102

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Norway (0.3%)
Akastor ASA (f)		1,833	$	3
Aker Solutions ASA (f)		1,833		11
DNB ASA		11,838		187
Kvaerner ASA (f)		1,677		2
Norsk Hydro ASA		13,781		80
Orkla ASA		10,248		92
REC Silicon ASA (f)		6,482		1
Seadrill Ltd. (f)		328		1
Statoil ASA		13,168		225
Subsea 7 SA (f)		3,127		48
Telenor ASA		16,272		271
Yara International ASA		2,039		78
				999
Poland (0.0%)
Jeronimo Martins SGPS SA		2,885		52
Portugal (0.0%)
Banco Espirito Santo SA (Registered) (f)(g)(i)		192,146		—
Galp Energia SGPS SA		2,692		41
Pharol SGPS SA (Registered)		11,120		4
				45
Singapore (0.0%)
Jardine Matheson Holdings Ltd.		1,300		84
South Africa (0.0%)
Mondi PLC		2,267		55
Spain (1.3%)
Abertis Infraestructuras SA		4,351		70
ACS Actividades de Construccion y Servicios SA		1,236		42
Amadeus IT Holding SA, Class A		1,901		96
Banco Bilbao Vizcaya Argentaria SA		111,769		867
Banco de Sabadell SA		70,186		128
Banco Popular Espanol SA		36,022		35
Banco Santander SA		229,621		1,407
Bankia SA		46,139		52
Bankinter SA		6,758		57
CaixaBank SA		36,117		155
Distribuidora Internacional de Alimentacion SA		6,513		38
Enagas SA		1,570		41
Ferrovial SA		2,422		48
Gas Natural SDG SA		2,094		46
Grifols SA		1,782		44
Iberdrola SA		36,309		260
Industria de Diseno Textil SA		9,727		343
Mediaset Espana Comunicacion SA		21,231		274
Red Electrica Corp., SA		4,530		87
Repsol SA		5,825		90
Telefonica SA		25,110		281
				4,461
Sweden (1.1%)
Assa Abloy AB, Class B		9,837		202
Atlas Copco AB, Class A		9,926		350
Atlas Copco AB, Class B		7,174		228

	Shares		Value (000)
Electrolux AB, Class B		2,950	$	82
Hennes & Mauritz AB, Class B		10,362		265
Husqvarna AB, Class B		5,449		48
Investor AB, Class B		11,790		496
Modern Times Group MTG AB, Class B		443		15
Nordea Bank AB		26,050		297
Sandvik AB		15,296		229
Skandinaviska Enskilda Banken AB, Class A		14,182		158
Skanska AB, Class B		3,281		77
SKF AB, Class B		6,298		125
Svenska Cellulosa AB SCA, Class B		8,585		277
Svenska Handelsbanken AB, Class A		16,437		225
Swedbank AB, Class A		4,898		114
Swedish Match AB		4,201		137
Telefonaktiebolaget LM Ericsson, Class B		25,830		172
Telia Co AB		31,426		132
Volvo AB, Class B		8,272		122
				3,751
Switzerland (2.1%)
ABB Ltd. (Registered)		18,729		438
Adecco Group AG (Registered)		16,009		1,137
Cie Financiere Richemont SA (Registered)		2,664		211
Coca-Cola HBC AG (f)		1,136		29
Credit Suisse Group AG (Registered) (f)		8,162		121
Geberit AG (Registered)		447		193
Givaudan SA (Registered)		49		88
Julius Baer Group Ltd. (f)		1,154		58
Kuehne & Nagel International AG (Registered)		366		52
LafargeHolcim Ltd. (Registered) (f)		2,113		125
LafargeHolcim Ltd. (Registered) (f)		171		10
Lonza Group AG (Registered) (f)		261		49
Nestle SA (Registered)		19,036		1,461
Novartis AG (Registered)		11,781		874
Roche Holding AG (Genusschein)		3,206		819
SGS SA (Registered)		30		64
Sonova Holding AG (Registered)		478		66
Swatch Group AG (The)		176		63
Swiss Re AG		668		60
Swisscom AG (Registered)		372		172
Syngenta AG (Registered)		914		403
Transocean Ltd. (f)		1,622		20
UBS Group AG (Registered)		15,215		244
Zurich Insurance Group AG		1,263		337
				7,094
United Arab Emirates (0.0%)
Mediclinic International PLC		2,256		20
United Kingdom (4.4%)
3i Group PLC		5,910		56
Aberdeen Asset Management PLC		5,530		18
Admiral Group PLC		1,303		33
Aggreko PLC		1,584		18
Anglo American PLC (f)		8,504		130

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
Ashtead Group PLC		3,127	$	65
Associated British Foods PLC		2,284		75
AstraZeneca PLC		7,819		481
Auto Trader Group PLC (c)		6,244		31
Aviva PLC		24,622		164
Babcock International Group PLC		1,542		17
BAE Systems PLC		19,375		156
Barclays PLC		103,082		291
Barratt Developments PLC		6,174		42
Berkeley Group Holdings PLC		799		32
BHP Billiton PLC		12,962		200
BP PLC		114,221		655
British American Tobacco PLC		11,552		767
British Land Co., PLC REIT		6,046		46
BT Group PLC		52,122		208
Bunzl PLC		2,063		60
Burberry Group PLC		2,739		59
Capita PLC		4,106		29
Carnival PLC		1,180		68
Centrica PLC		33,666		92
Cobham PLC		10,431		17
Compass Group PLC		10,247		193
Croda International PLC		814		36
Diageo PLC		15,437		442
Direct Line Insurance Group PLC		8,358		36
Dixons Carphone PLC		6,003		24
easyJet PLC		989		13
Experian PLC		5,973		122
G4S PLC		9,585		37
GKN PLC		10,593		48
GlaxoSmithKline PLC		30,162		627
Glencore PLC (f)		73,910		290
Hammerson PLC REIT		4,859		35
Hargreaves Lansdown PLC		1,560		25
Hikma Pharmaceuticals PLC		884		22
HSBC Holdings PLC		120,820		985
Imperial Brands PLC		6,007		291
Inmarsat PLC		2,806		30
InterContinental Hotels Group PLC		1,160		57
International Consolidated Airlines Group SA		4,904		32
International Consolidated Airlines Group SA		104,772		694
Intertek Group PLC		1,003		49
Intu Properties PLC REIT		5,786		20
Investec PLC		3,807		26
ITV PLC		22,190		61
J Sainsbury PLC		8,399		28
Johnson Matthey PLC		1,189		46
Kingfisher PLC		14,172		58
Land Securities Group PLC REIT		4,898		65
Legal & General Group PLC		36,205		112
Liberty Global PLC LiLAC, Class A (f)		251		6
Liberty Global PLC LiLAC Series C (f)		330		8

	Shares		Value (000)
Lloyds Banking Group PLC		397,262	$	330
London Stock Exchange Group PLC		1,917		76
Marks & Spencer Group PLC		10,173		43
Meggitt PLC		4,791		27
Merlin Entertainments PLC (c)		4,353		26
National Grid PLC		23,220		295
NEX Group PLC		1,940		14
Next PLC		890		48
Old Mutual PLC		29,605		74
Pearson PLC		5,042		43
Persimmon PLC		1,880		49
Petrofac Ltd.		1,629		19
Provident Financial PLC		884		33
Prudential PLC		15,774		333
Randgold Resources Ltd.		589		51
Reckitt Benckiser Group PLC		3,954		361
RELX PLC		6,883		135
Rio Tinto PLC		7,533		303
Rolls-Royce Holdings PLC (f)		11,289		107
Royal Bank of Scotland Group PLC (f)		21,188		64
Royal Dutch Shell PLC, Class A		26,097		685
Royal Dutch Shell PLC, Class B		23,234		636
Royal Mail PLC		5,509		29
RSA Insurance Group PLC		6,182		45
Sage Group PLC (The)		6,619		52
Schroders PLC		828		31
Segro PLC REIT		4,725		27
Severn Trent PLC		1,454		43
Shire PLC		5,483		320
Shire PLC ADR		320		56
Sky PLC		6,356		78
Smith & Nephew PLC		5,518		84
Smiths Group PLC		2,488		51
SSE PLC		6,284		116
St. James's Place PLC		3,179		42
Standard Chartered PLC (f)		19,817		190
Standard Life PLC		11,912		53
Tate & Lyle PLC		2,921		28
Taylor Wimpey PLC		19,983		48
Tesco PLC (f)		49,850		116
TP ICAP PLC		1,585		9
Travis Perkins PLC		1,534		29
Unilever PLC		7,963		393
United Utilities Group PLC		4,213		53
Vodafone Group PLC		163,272		426
Weir Group PLC (The)		1,326		32
Whitbread PLC		1,145		57
William Hill PLC		5,408		20
WM Morrison Supermarkets PLC		13,647		41
Wolseley PLC		1,589		100
Worldpay Group PLC (c)		8,630		32
WPP PLC		7,968		175
				14,856

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares			Value (000)
United States (17.3%)
3M Co.		711		$	136
Abbott Laboratories		7,168			318
AbbVie, Inc.		6,379			416
Abercrombie & Fitch Co., Class A		229			3
Accenture PLC, Class A		1,285			154
ACCO Brands Corp. (f)		104	��		1
Actelion Ltd. (f)		528			149
Adient plc		91			7
Adobe Systems, Inc. (f)		1,313			171
Advance Auto Parts, Inc.		229			34
Advanced Micro Devices, Inc. (f)		1,160			17
AdvanSix, Inc. (f)		97			3
AES Corp.		2,032			23
Aetna, Inc.		1,826			233
Aflac, Inc.		281			20
Agilent Technologies, Inc.		1,679			89
Air Products & Chemicals, Inc.		257			35
Akamai Technologies, Inc. (f)		462			28
Alcoa Corp.		147			5
Alexion Pharmaceuticals, Inc. (f)		1,037			126
Allegheny Technologies, Inc.		315			6
Allegion PLC		232			18
Allergan PLC		1,229			294
Alliant Energy Corp.		586			23
Allstate Corp. (The)		323			26
Alphabet, Inc., Class A (f)		613			520
Alphabet, Inc., Class C (f)		617			512
Altria Group, Inc.		8,443			603
Amazon.com, Inc. (f)		610			541
AMC Networks, Inc., Class A (f)		21			1
Ameren Corp.		1,488			81
American Electric Power Co., Inc.		2,597			174
American Express Co.		1,351			107
American Tower Corp. REIT		1,320			160
American Water Works Co., Inc.		586			46
Ameriprise Financial, Inc.		789			102
AmerisourceBergen Corp.		1,717			152
AMETEK, Inc.		276			15
Amgen, Inc.		3,950			648
Amphenol Corp., Class A		292			21
Anadarko Petroleum Corp.		921			57
Analog Devices, Inc.		1,455			119
Annaly Capital Management, Inc. REIT		878			10
Anthem, Inc.		1,203			199
Aon PLC		200			24
Apache Corp.		874			45
Apple, Inc.		17,573			2,525
Applied Materials, Inc.		2,359			92
Archer-Daniels-Midland Co.		2,389			110
Arconic, Inc.		443			12
AT&T, Inc.		30,982			1,287
Automatic Data Processing, Inc.		610			62

	Shares		Value (000)
AutoZone, Inc. (f)		237	$	171
AvalonBay Communities, Inc. REIT		507		93
Avery Dennison Corp.		588		47
Avon Products, Inc. (f)		2,395		11
Baker Hughes, Inc.		1,355		81
Ball Corp.		279		21
Bank of America Corp.		28,880		681
Bank of New York Mellon Corp. (The)		3,464		164
Baxter International, Inc.		2,533		131
BB&T Corp.		2,120		95
Becton Dickinson and Co.		1,328		244
Bed Bath & Beyond, Inc.		520		21
Berkshire Hathaway, Inc., Class B (f)		334		56
Best Buy Co., Inc.		486		24
Biogen, Inc. (f)		1,150		314
Bioverativ, Inc. (f)		282		15
Blackhawk Network Holdings, Inc. (f)		53		2
BlackRock, Inc.		347		133
Boeing Co. (The)		1,079		191
Boston Properties, Inc. REIT		466		62
Boston Scientific Corp. (f)		7,085		176
Bristol-Myers Squibb Co.		7,116		387
Broadcom Ltd.		609		133
Brown-Forman Corp., Class B		648		30
Bunge Ltd.		326		26
C.H. Robinson Worldwide, Inc.		387		30
CA, Inc.		695		22
California Resources Corp. (f)		221		3
Campbell Soup Co.		808		46
Capital One Financial Corp.		1,237		107
Cardinal Health, Inc.		1,881		153
Care Capital Properties, Inc. REIT		161		4
CarMax, Inc. (f)		257		15
Carnival Corp.		729		43
Caterpillar, Inc.		1,507		140
CBRE Group, Inc., Class A (f)		1,869		65
CBS Corp., Class B		1,971		137
CDK Global, Inc.		270		18
Celanese Corp. Series A		220		20
Celgene Corp. (f)		3,865		481
Centene Corp. (f)		586		42
CenterPoint Energy, Inc.		2,669		74
CenturyLink, Inc.		2,736		64
Cerner Corp. (f)		1,712		101
CF Industries Holdings, Inc.		960		28
Charles Schwab Corp. (The)		2,173		89
Charter Communications, Inc., Class A (f)		496		162
Chemours Co. (The)		294		11
Chesapeake Energy Corp. (f)		1,564		9
Chevron Corp.		3,095		332
Chipotle Mexican Grill, Inc. (f)		223		99
Chubb Ltd.		158		22
Church & Dwight Co., Inc.		586		29

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Cigna Corp.		1,472	$	216
Cintas Corp.		454		57
Cisco Systems, Inc.		14,172		479
CIT Group, Inc.		595		26
Citigroup, Inc.		5,062		303
Citrix Systems, Inc. (f)		609		51
Cliffs Natural Resources, Inc. (f)		337		3
Clorox Co. (The)		737		99
CME Group, Inc.		211		25
CMS Energy Corp.		880		39
Coach, Inc.		593		25
Coca-Cola Co.		20,106		853
Coca-Cola European Partners PLC		745		28
Cognizant Technology Solutions Corp., Class A (f)		1,808		108
Colgate-Palmolive Co.		5,200		381
Comcast Corp., Class A		10,638		400
Comerica, Inc.		222		15
Conagra Brands, Inc.		2,116		85
Concho Resources, Inc. (f)		360		46
Conduent, Inc. (f)		387		6
ConocoPhillips		2,285		114
CONSOL Energy, Inc.		609		10
Consolidated Edison, Inc.		1,686		131
Constellation Brands, Inc., Class A		819		133
Corning, Inc.		1,504		41
Costco Wholesale Corp.		3,104		521
Coty, Inc., Class A		1,466		27
CR Bard, Inc.		649		161
Crimson Wine Group Ltd. (f)		181		2
Crown Castle International Corp. REIT		896		85
Crown Holdings, Inc. (f)		280		15
CST Brands, Inc.		219		11
CSX Corp.		2,158		100
Cummins, Inc.		661		100
CVS Health Corp.		3,159		248
Danaher Corp.		1,763		151
Darden Restaurants, Inc.		304		25
DaVita, Inc. (f)		746		51
Deere & Co.		918		100
Dell Technologies, Inc. - VMware, Inc., Class V (f)		652		42
Denbury Resources, Inc. (f)		304		1
DENTSPLY SIRONA, Inc.		586		37
Devon Energy Corp.		742		31
DeVry Education Group, Inc.		21		1
Diamond Offshore Drilling, Inc. (f)		43		1
Discover Financial Services		1,039		71
Discovery Communications, Inc., Class A (f)		582		17
Discovery Communications, Inc., Class C (f)		1,288		36
Dollar General Corp.		186		13
Dollar Tree, Inc. (f)		333		26
Dominion Resources, Inc.		3,662		284
Donnelley Financial Solutions, Inc. (f)		186		4

	Shares		Value (000)
Dover Corp.		226	$	18
Dow Chemical Co. (The)		800		51
Dr. Pepper Snapple Group, Inc.		957		94
DTE Energy Co.		1,116		114
Duke Energy Corp.		3,241		266
Dun & Bradstreet Corp. (The)		306		33
Eastman Chemical Co.		262		21
Eaton Corp., PLC		868		64
eBay, Inc. (f)		2,467		83
Ecolab, Inc.		508		64
Edison International		2,167		173
Edwards Lifesciences Corp. (f)		928		87
EI du Pont de Nemours & Co.		612		49
Eli Lilly & Co.		4,191		353
Emerson Electric Co.		1,485		89
Endo International PLC (f)		586		7
Engility Holdings, Inc. (f)		18		1
Entergy Corp.		1,036		79
Envision Healthcare Corp. (f)		318		20
EOG Resources, Inc.		1,392		136
EQT Corp.		319		19
Equifax, Inc.		501		69
Equity Residential REIT		933		58
ESC Seventy Seven (f)(i)		275		—
Estee Lauder Cos., Inc. (The), Class A		1,525		129
Eversource Energy		880		52
Exelon Corp.		4,696		169
Expedia, Inc.		232		29
Expeditors International of Washington, Inc.		336		19
Express Scripts Holding Co. (f)		3,542		233
Exxon Mobil Corp.		7,766		637
Fastenal Co.		611		31
FedEx Corp.		654		128
Fidelity National Information Services, Inc.		111		9
Fifth Third Bancorp		2,931		74
First Solar, Inc. (f)		275		7
FirstEnergy Corp.		2,209		70
Fiserv, Inc. (f)		476		55
Flowserve Corp.		260		13
Fluor Corp.		306		16
FMC Corp.		342		24
Ford Motor Co.		3,159		37
Fortive Corp.		198		12
Four Corners Property Trust, Inc. REIT		274		6
Franklin Resources, Inc.		1,078		45
Freeport-McMoRan, Inc. (f)		860		11
Frontier Communications Corp.		6,112		13
GameStop Corp., Class A		316		7
Gannett Co., Inc.		116		1
Gap, Inc. (The)		536		13
General Dynamics Corp.		401		75
General Electric Co.		6,958		207
General Mills, Inc.		3,050		180

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Genuine Parts Co.		111	$	10
GGP, Inc. REIT		406		9
Gilead Sciences, Inc.		6,448		438
Goldman Sachs Group, Inc. (The)		1,472		338
Grifols SA, (Preference) Class B		252		5
H&R Block, Inc.		1,097		26
Halliburton Co.		2,178		107
Halyard Health, Inc. (f)		335		13
Harris Corp.		23		3
Hartford Financial Services Group, Inc. (The)		228		11
Hasbro, Inc.		176		18
HCA Holdings, Inc. (f)		880		78
HCP, Inc. REIT		626		20
Helmerich & Payne, Inc.		340		23
Henry Schein, Inc. (f)		578		98
Hershey Co. (The)		646		71
Hess Corp.		479		23
Hewlett Packard Enterprise Co.		3,576		85
Hologic, Inc. (f)		1,416		60
Home Depot, Inc.		391		57
Honeywell International, Inc.		1,540		192
Hormel Foods Corp.		586		20
Host Hotels & Resorts, Inc. REIT		2,751		51
HP, Inc.		3,576		64
Humana, Inc.		602		124
Huntington Bancshares, Inc.		280		4
Huntington Ingalls Industries, Inc.		59		12
IDEXX Laboratories, Inc. (f)		318		49
IHS Markit Ltd. (f)		907		38
ILG, Inc.		199		4
Illinois Tool Works, Inc.		884		117
Illumina, Inc. (f)		640		109
IMI PLC		1,678		25
Ingersoll-Rand PLC		287		23
Ingevity Corp. (f)		30		2
Intel Corp.		6,146		222
Intercontinental Exchange, Inc.		1,290		77
International Business Machines Corp.		2,471		430
International Flavors & Fragrances, Inc.		233		31
International Game Technology PLC		299		7
International Paper Co.		310		16
Interpublic Group of Cos., Inc. (The)		1,611		40
Intuit, Inc.		902		105
Intuitive Surgical, Inc. (f)		315		241
Invesco Ltd.		1,341		41
Iron Mountain, Inc. REIT		878		31
ITT, Inc.		219		9
Jabil Circuit, Inc.		222		6
Jacobs Engineering Group, Inc.		311		17
Janus Capital Group, Inc.		111		1
JB Hunt Transport Services, Inc.		228		21
JC Penney Co., Inc. (f)		222		1

	Shares		Value (000)
JM Smucker Co. (The)		677	$	89
Johnson & Johnson		11,635		1,449
Johnson Controls International PLC		916		39
Joy Global, Inc.		231		7
JPMorgan Chase & Co.		12,857		1,129
Juniper Networks, Inc.		1,911		53
KBR, Inc.		262		4
Kellogg Co.		1,246		90
KeyCorp		3,485		62
Keysight Technologies, Inc. (f)		349		13
Kimberly-Clark Corp.		2,187		288
Kimco Realty Corp. REIT		839		19
KLA-Tencor Corp.		649		62
Knowles Corp. (f)		113		2
Kohl's Corp.		689		27
Koninklijke Ahold Delhaize N.V.		23,895		511
Kraft Heinz Co. (The)		2,401		218
Kroger Co. (The)		6,888		203
L Brands, Inc.		751		35
L3 Technologies, Inc.		111		18
Laboratory Corp. of America Holdings (f)		647		93
Lam Research Corp.		322		41
Lamb Weston Holdings, Inc.		314		13
Las Vegas Sands Corp.		655		37
Legg Mason, Inc.		604		22
Leucadia National Corp.		832		22
Level 3 Communications, Inc. (f)		880		50
Li & Fung Ltd. (h)		32,000		14
Liberty Global PLC, Class A (f)		861		31
Liberty Global PLC Series C (f)		1,889		66
Liberty Property Trust REIT		309		12
Lockheed Martin Corp.		343		92
Loews Corp.		366		17
LogMeIn, Inc.		104		10
Lowe's Cos., Inc.		2,133		175
LSC Communications, Inc.		186		5
LyondellBasell Industries N.V., Class A		314		29
M&T Bank Corp.		292		45
Macerich Co. (The) REIT		267		17
Macy's, Inc.		173		5
Mallinckrodt PLC (f)		542		24
Manpowergroup, Inc.		479		49
Marathon Oil Corp.		1,265		20
Marathon Petroleum Corp.		1,346		68
Marriott International, Inc., Class A		836		79
Marriott Vacations Worldwide Corp.		194		19
Marsh & McLennan Cos., Inc.		366		27
Marvell Technology Group Ltd.		929		14
Mastercard, Inc., Class A		3,120		351
Mattel, Inc.		505		13
Maxim Integrated Products, Inc.		610		27
McCormick & Co., Inc.		318		31
McDonald's Corp.		1,682		218

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
McKesson Corp.		1,267	$	188
Mead Johnson Nutrition Co.		1,159		103
Medtronic PLC		6,410		516
Merck & Co., Inc.		12,398		788
MetLife, Inc.		330		17
MGM Resorts International		854		23
Microchip Technology, Inc.		283		21
Micron Technology, Inc. (f)		1,786		52
Microsoft Corp.		12,620		831
Molson Coors Brewing Co., Class B		1,033		99
Mondelez International, Inc., Class A		6,823		294
Monsanto Co.		886		100
Monster Beverage Corp. (f)		1,173		54
Moody's Corp.		415		46
Mosaic Co. (The)		548		16
Motorola Solutions, Inc.		449		39
Murphy Oil Corp.		274		8
Murphy USA, Inc. (f)		228		17
Mylan N.V. (f)		1,814		71
NASDAQ, Inc.		892		62
National Oilwell Varco, Inc.		1,339		54
Navient Corp.		1,730		26
NetApp, Inc.		1,076		45
Netflix, Inc. (f)		615		91
NetScout Systems, Inc. (f)		2,293		87
New York Community Bancorp, Inc.		1,401		20
Newfield Exploration Co. (f)		316		12
Newmont Mining Corp.		881		29
News Corp., Class A		1,351		18
News Corp., Class B		305		4
NextEra Energy, Inc.		2,040		262
NIKE, Inc., Class B		2,112		118
NiSource, Inc.		944		22
Noble Corp., PLC		331		2
Noble Energy, Inc.		890		31
Nordstrom, Inc.		210		10
Norfolk Southern Corp.		1,290		144
Northern Trust Corp.		33		3
Northrop Grumman Corp.		309		73
NOW, Inc. (f)		307		5
NRG Energy, Inc.		880		16
Nucor Corp.		326		19
NVIDIA Corp.		1,116		122
O'Reilly Automotive, Inc. (f)		293		79
Occidental Petroleum Corp.		2,337		148
Omnicom Group, Inc.		781		67
ONE Gas, Inc.		322		22
ONEOK, Inc.		870		48
Oracle Corp.		7,781		347
Owens-Illinois, Inc. (f)		242		5
PACCAR, Inc.		926		62
Paragon Offshore PLC (f)		303		—	@

	Shares		Value (000)
Patterson Cos., Inc.		494	$	22
Paychex, Inc.		593		35
PayPal Holdings, Inc. (f)		2,467		106
Peabody Energy Corp. (f)		168		—	@
Pentair PLC		189		12
People's United Financial, Inc.		347		6
PepsiCo, Inc.		6,068		679
PerkinElmer, Inc.		318		18
Perrigo Co., PLC		539		36
Pfizer, Inc.		25,590		875
PG&E Corp.		2,463		163
Philip Morris International, Inc.		6,855		774
Phillips 66		1,353		107
Pinnacle West Capital Corp.		318		27
Pioneer Natural Resources Co.		282		53
Pitney Bowes, Inc.		881		12
PNC Financial Services Group, Inc. (The)		1,409		169
PPG Industries, Inc.		324		34
PPL Corp.		3,161		118
Praxair, Inc.		569		67
Procter & Gamble Co. (The)		13,575		1,220
Progressive Corp. (The)		239		9
ProLogis, Inc. REIT		1,349		70
Prudential Financial, Inc.		200		21
Public Service Enterprise Group, Inc.		2,890		128
Public Storage REIT		866		190
QEP Resources, Inc. (f)		423		5
QIAGEN N.V. (f)		2,273		66
QUALCOMM, Inc.		4,136		237
Quality Care Properties, Inc. REIT (f)		125		2
Quest Diagnostics, Inc.		648		64
Ralph Lauren Corp.		47		4
Range Resources Corp.		447		13
Rayonier Advanced Materials, Inc.		175		2
Rayonier, Inc. REIT		305		9
Raytheon Co.		334		51
Regency Centers Corp. REIT		231		15
Regeneron Pharmaceuticals, Inc. (f)		318		123
Regions Financial Corp.		4,909		71
Republic Services, Inc.		938		59
Reynolds American, Inc.		4,345		274
Robert Half International, Inc.		600		29
Rockwell Automation, Inc.		602		94
Rockwell Collins, Inc.		302		29
Roper Technologies, Inc.		236		49
Ross Stores, Inc.		890		59
Royal Caribbean Cruises Ltd.		618		61
RR Donnelley & Sons Co.		298		4
S&P Global, Inc.		895		117
Salesforce.com, Inc. (f)		1,426		118
SCANA Corp.		294		19
Schlumberger Ltd.		3,909		305
Scripps Networks Interactive, Inc., Class A		261		20

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Sealed Air Corp.		267	$	12
Sempra Energy		1,409		156
Sherwin-Williams Co. (The)		61		19
Simon Property Group, Inc. REIT		1,548		266
SLM Corp. (f)		1,730		21
Southern Co. (The)		4,808		239
Southwest Airlines Co.		358		19
Southwestern Energy Co. (f)		1,022		8
Sprint Corp. (f)		7,534		65
Stanley Black & Decker, Inc.		238		32
Staples, Inc.		1,918		17
Starbucks Corp.		2,934		171
State Street Corp.		948		75
Stericycle, Inc. (f)		297		25
Stryker Corp.		1,827		241
SunTrust Banks, Inc.		1,617		89
Symantec Corp.		2,112		65
Sysco Corp.		3,425		178
T-Mobile US, Inc. (f)		116		7
T. Rowe Price Group, Inc.		911		62
Target Corp.		798		44
TE Connectivity Ltd.		900		67
TEGNA, Inc.		233		6
Tenaris SA		3,918		67
Tenet Healthcare Corp. (f)		131		2
Texas Instruments, Inc.		3,575		288
Textron, Inc.		662		32
Thermo Fisher Scientific, Inc.		1,784		274
Tiffany & Co.		241		23
Time Warner, Inc.		2,159		211
Time, Inc.		331		6
TJX Cos., Inc. (The)		1,380		109
Travelers Cos., Inc. (The)		308		37
TripAdvisor, Inc. (f)		232		10
Twenty-First Century Fox, Inc., Class A		4,995		162
Twenty-First Century Fox, Inc., Class B		982		31
Tyson Foods, Inc., Class A		1,748		108
Union Pacific Corp.		1,410		149
United Parcel Service, Inc., Class B		1,180		127
United States Steel Corp.		321		11
United Technologies Corp.		873		98
UnitedHealth Group, Inc.		3,968		651
Universal Health Services, Inc., Class B		318		40
Urban Edge Properties REIT		154		4
Urban Outfitters, Inc. (f)		186		4
US Bancorp		4,803		247
Valero Energy Corp.		1,231		82
Varex Imaging Corp. (f)		118		4
Varian Medical Systems, Inc. (f)		615		56
Vectrus, Inc. (f)		12		—	@
Ventas, Inc. REIT		327		21
Verisk Analytics, Inc. (f)		628		51

	Shares		Value (000)
Veritiv Corp. (f)		15	$	1
Verizon Communications, Inc.		31,248		1,523
Versum Materials, Inc. (f)		128		4
Vertex Pharmaceuticals, Inc. (f)		908		99
VF Corp.		922		51
Viacom, Inc., Class B		1,323		62
Visa, Inc., Class A		3,958		352
Vornado Realty Trust REIT		209		21
Wal-Mart Stores, Inc.		11,056		797
Walgreens Boots Alliance, Inc.		5,814		483
Walt Disney Co. (The)		3,384		384
Washington Prime Group, Inc. REIT		874		8
Waste Management, Inc.		1,289		94
Waters Corp. (f)		539		84
Weatherford International PLC (f)		1,496		10
WEC Energy Group, Inc.		1,830		111
Wells Fargo & Co.		13,167		733
Welltower, Inc. REIT		297		21
Western Digital Corp.		257		21
Western Union Co. (The)		1,849		38
WestRock Co.		180		9
Weyerhaeuser Co. REIT		1,119		38
Whole Foods Market, Inc.		2,266		67
Williams Cos., Inc. (The)		2,531		75
WPX Energy, Inc. (f)		1,265		17
WW Grainger, Inc.		268		62
Wyndham Worldwide Corp.		208		18
Wynn Resorts Ltd.		320		37
Xcel Energy, Inc.		2,822		125
Xerox Corp.		1,936		14
Xilinx, Inc.		648		38
Xylem, Inc.		678		34
Yahoo!, Inc. (f)		2,149		100
Yum! Brands, Inc.		1,059		68
Zimmer Biomet Holdings, Inc.		1,263		154
Zions Bancorporation		222		9
Zoetis, Inc.		4,460		238
				58,952
Total Common Stocks (Cost $129,269)				166,922
	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
Warrants (0.0%)
France (0.0%)
Peugeot SA, expires 4/29/17 (f)		1,147		5

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	No. of Warrants		Value (000)
United States (0.0%)
Seventy Seven Energy, Inc., expires 8/1/21 (f)(i)		13	$	—
Seventy Seven Energy, Inc., expires 8/1/23 (f)(i)		15		—
				—
Total Warrants (Cost $2)				5
	Shares
Short-Term Investments (19.3%)
Investment Company (18.6%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $63,403)		63,403,306		63,403
	Face Amount (000)
U.S. Treasury Security (0.7%)
U.S. Treasury Bill,
0.64%, 7/27/17 (j)(k) (Cost $2,598)	$	2,603		2,596
Total Short-Term Investments (Cost $66,001)				65,999
Total Investments (98.1%) (Cost $297,475) (l)(m)				334,808
Other Assets in Excess of Liabilities (1.9%)				6,342
Net Assets (100.0%)			$	341,150

Country assignments and aggregations are based generally on third party vendor classifications and information, and may be different from the assignments and aggregations under the policies set forth in the Fund's prospectus and/or statement of additional information relating to geographic classifications.

(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, 2017.

(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, 2017.

(e)  Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of March 31, 2017. Maturity date disclosed is the ultimate maturity date.

(f)  Non-income producing security.

(g)  Security has been deemed illiquid at March 31, 2017.

(h)  Security trades on the Hong Kong exchange.

(i)  At March 31, 2017, the Fund 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 Trust's Trustees.

(j)  Rate shown is the yield to maturity at March 31, 2017.

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

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

(m)  At March 31, 2017, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $47,322,000 and the aggregate gross unrealized depreciation is approximately $9,989,000 resulting in net unrealized appreciation of approximately $37,333,000.

@  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).

OFZ  Obilgatsyi Federal'novo Zaima (Russian Federal Loan Obligation)

REIT  Real Estate Investment Trust.

REMIC  Real Estate Mortgage Investment Conduit.

SDR  Swedish Depositary Receipt.

TBA  To Be Announced.

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at March 31, 2017:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Australia and New Zealand Banking Group	AUD	1,543	$	1,188	4/5/17	$	9
Australia and New Zealand Banking Group	CAD	3,818	$	2,904	4/5/17		33
Australia and New Zealand Banking Group	EUR	6,263	$	6,636	4/5/17		(46	)
Australia and New Zealand Banking Group	NZD	1,900	EUR	1,295	4/5/17		50
Australia and New Zealand Banking Group	$	3,192	EUR	3,014	4/5/17		24
Australia and New Zealand Banking Group	$	1,277	EUR	1,199	4/5/17		2
Australia and New Zealand Banking Group	$	32	EUR	29	4/5/17		(—	@)
Australia and New Zealand Banking Group	$	204	GBP	167	4/5/17		6
Australia and New Zealand Banking Group	$	810	JPY	93,261	4/5/17		28
Australia and New Zealand Banking Group	$	1,542	NZD	2,134	4/5/17		(46	)
Barclays Bank PLC	AUD	746	$	575	4/5/17		5
Barclays Bank PLC	JPY	97,749	$	880	4/5/17		2
Barclays Bank PLC	$	30	JPY	3,354	4/5/17		—	@

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated 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)
Barclays Bank PLC	$	144		ZAR	1,870		4/5/17	$	(5	)
Citibank NA	AUD	94		$	71		4/5/17		(1	)
Citibank NA	$	14		EUR	13		4/5/17		(—	@)
HSBC Bank PLC	EUR	611		NOK	5,400		4/5/17		(23	)
HSBC Bank PLC	EUR	603		PLN	2,600		4/5/17		13
HSBC Bank PLC	GBP	910		EUR	1,072		4/5/17		4
HSBC Bank PLC	GBP	486		$	607		4/5/17		(3	)
HSBC Bank PLC	MXN	14,503		$	758		4/5/17		(16	)
HSBC Bank PLC	NOK	5,300		SEK	5,704		4/5/17		19
HSBC Bank PLC	PLN	7,947		$	1,954		4/5/17		(50	)
HSBC Bank PLC	$	3		CAD	3		4/5/17		(—	@)
HSBC Bank PLC	$	550		EUR	519		4/5/17		4
HSBC Bank PLC	$	729		HUF	207,671		4/5/17		(12	)
HSBC Bank PLC	$	1,158		JPY	130,320		4/5/17		12
HSBC Bank PLC	$	313		MXN	6,220		4/5/17		19
HSBC Bank PLC	$	—	@	NOK	—	@	4/5/17		(4	)
HSBC Bank PLC	$	1,242		PLN	5,047		4/5/17		31
HSBC Bank PLC	$	242		SGD	340		4/5/17		1
HSBC Bank PLC	$	375		THB	13,100		4/5/17		7
HSBC Bank PLC	$	514		ZAR	6,560		4/5/17		(25	)
HSBC Bank PLC	ZAR	8,740		$	693		4/5/17		42
JPMorgan Chase Bank NA	AUD	165		$	124		4/5/17		(2	)
JPMorgan Chase Bank NA	CAD	739		MXN	11,200		4/5/17		42
JPMorgan Chase Bank NA	CAD	588		$	436		4/5/17		(7	)
JPMorgan Chase Bank NA	CHF	316		$	313		4/5/17		(2	)
JPMorgan Chase Bank NA	EUR	316		$	333		4/5/17		(4	)
JPMorgan Chase Bank NA	GBP	93		EUR	109		4/5/17		—	@
JPMorgan Chase Bank NA	GBP	1,025		$	1,250		4/5/17		(34	)
JPMorgan Chase Bank NA	MXN	11,800		JPY	66,892		4/5/17		(29	)
JPMorgan Chase Bank NA	MXN	9,770		$	492		4/5/17		(30	)
JPMorgan Chase Bank NA	MXN	14,451		$	752		4/5/17		(20	)
JPMorgan Chase Bank NA	PLN	509		$	125		4/5/17		(4	)
JPMorgan Chase Bank NA	SEK	3,379		$	375		4/5/17		(2	)
JPMorgan Chase Bank NA	THB	4,404		$	124		4/5/17		(4	)
JPMorgan Chase Bank NA	$	396		AUD	525		4/5/17		6
JPMorgan Chase Bank NA	$	1,055		CAD	1,423		4/5/17		15
JPMorgan Chase Bank NA	$	9		EUR	9		4/5/17		—	@
JPMorgan Chase Bank NA	$	3,173		EUR	3,005		4/5/17		33
JPMorgan Chase Bank NA	$	1,202		GBP	988		4/5/17		36
JPMorgan Chase Bank NA	$	154		HUF	45,401		4/5/17		3
JPMorgan Chase Bank NA	$	26		HUF	7,287		4/5/17		(—	@)
JPMorgan Chase Bank NA	$	3,402		JPY	389,216		4/5/17		94
JPMorgan Chase Bank NA	$	582		JPY	64,500		4/5/17		(2	)
JPMorgan Chase Bank NA	$	403		MXN	7,946		4/5/17		21
JPMorgan Chase Bank NA	$	248		MXN	4,750		4/5/17		6
JPMorgan Chase Bank NA	$	317		PLN	1,294		4/5/17		9
JPMorgan Chase Bank NA	$	45		ZAR	595		4/5/17		(1	)
JPMorgan Chase Bank NA	ZAR	1,631		$	122		4/5/17		—	@
UBS AG	AUD	961		$	726		4/5/17		(9	)
UBS AG	EUR	675		CHF	720		4/5/17		(2	)
UBS AG	EUR	315		SEK	3,000		4/5/17		(2	)
UBS AG	EUR	9		$	10		4/5/17		(—	@)
UBS AG	GBP	1		$	1		4/5/17		(—	@)
UBS AG	HUF	260,359		$	895		4/5/17		(5	)
UBS AG	JPY	3,252		$	29		4/5/17		(—	@)
UBS AG	JPY	514,884		$	4,489		4/5/17		(136	)
UBS AG	SEK	88		$	10		4/5/17		(—	@)
UBS AG	$	30		CAD	40		4/5/17		(—	@)
UBS AG	$	212		CHF	214		4/5/17		1
UBS AG	$	356		DKK	2,500		4/5/17		2

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated 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)
UBS AG	$	1,446	SEK	12,977	4/5/17	$	2
UBS AG	$	439	ZAR	5,480	4/5/17		(31	)
Bank of America NA	CHF	276	$	278	4/20/17		3
Bank of America NA	EUR	414	$	448	4/20/17		6
Bank of America NA	PLN	27	$	7	4/20/17		—	@
Bank of Montreal	AUD	60	$	47	4/20/17		—	@
Bank of Montreal	JPY	213,061	$	1,907	4/20/17		(8	)
Bank of Montreal	$	49	ILS	179	4/20/17		—	@
Bank of New York Mellon	CHF	41	$	41	4/20/17		—	@
Barclays Bank PLC	AUD	1,333	$	1,028	4/20/17		10
Barclays Bank PLC	CAD	101	$	76	4/20/17		(—	@)
Barclays Bank PLC	EUR	2,918	$	3,159	4/20/17		44
BNP Paribas SA	CHF	81	$	81	4/20/17		1
BNP Paribas SA	EUR	896	$	970	4/20/17		13
BNP Paribas SA	JPY	33,058	$	296	4/20/17		(1	)
BNP Paribas SA	$	1,551	EUR	1,432	4/20/17		(22	)
BNP Paribas SA	$	48	ILS	175	4/20/17		—	@
Citibank NA	AUD	378	$	292	4/20/17		3
Citibank NA	CHF	88	$	89	4/20/17		1
Citibank NA	EUR	8,011	$	8,674	4/20/17		122
Citibank NA	JPY	206,827	$	1,851	4/20/17		(8	)
Citibank NA	SEK	21,041	$	2,398	4/20/17		48
Citibank NA	THB	704	$	20	4/20/17		(—	@)
Citibank NA	$	316	SEK	2,826	4/20/17		(1	)
Citibank NA	$	4,579	TRY	16,678	4/20/17		(12	)
Commonwealth Bank of Australia	AUD	1,318	$	1,016	4/20/17		10
Commonwealth Bank of Australia	EUR	4,011	$	4,342	4/20/17		60
Commonwealth Bank of Australia	NZD	19	$	13	4/20/17		—	@
Commonwealth Bank of Australia	$	1,562	GBP	1,250	4/20/17		5
Credit Suisse International	CHF	44	$	44	4/20/17		—	@
Credit Suisse International	EUR	3,293	$	3,565	4/20/17		50
Credit Suisse International	$	192	ILS	699	4/20/17		1
Goldman Sachs International	AUD	486	$	375	4/20/17		4
Goldman Sachs International	CHF	44	$	44	4/20/17		—	@
Goldman Sachs International	EUR	6,253	$	6,769	4/20/17		94
Goldman Sachs International	EUR	560	$	604	4/20/17		6
Goldman Sachs International	HUF	4,523	$	16	4/20/17		—	@
Goldman Sachs International	$	79	GBP	63	4/20/17		—	@
Goldman Sachs International	$	131	GBP	104	4/20/17		(—	@)
Goldman Sachs International	ZAR	2,571	$	203	4/20/17		12
Goldman Sachs International	ZAR	8,928	$	663	4/20/17		(1	)
JPMorgan Chase Bank NA	AUD	304	$	234	4/20/17		2
JPMorgan Chase Bank NA	CAD	43	$	32	4/20/17		(—	@)
JPMorgan Chase Bank NA	CHF	139	$	141	4/20/17		1
JPMorgan Chase Bank NA	JPY	1,270,959	$	11,436	4/20/17		13
JPMorgan Chase Bank NA	NOK	5,069	$	599	4/20/17		9
JPMorgan Chase Bank NA	SEK	12,943	$	1,475	4/20/17		29
JPMorgan Chase Bank NA	$	3,281	JPY	365,329	4/20/17		2
JPMorgan Chase Bank NA	$	2,964	MXN	56,860	4/20/17		65
Northern Trust Company	$	275	SGD	385	4/20/17		(—	@)
State Street Bank and Trust Co.	DKK	435	$	63	4/20/17		1
State Street Bank and Trust Co.	EUR	744	$	805	4/20/17		11
UBS AG	AUD	3,867	$	2,983	4/20/17		29
UBS AG	CHF	206	$	207	4/20/17		2
UBS AG	DKK	3,568	$	519	4/20/17		7
UBS AG	EUR	5,217	$	5,648	4/20/17		78
UBS AG	HKD	1,326	$	171	4/20/17		—	@
UBS AG	$	4,298	EUR	4,020	4/20/17		(6	)
UBS AG	$	872	GBP	695	4/20/17		(—	@)
UBS AG	$	563	SGD	786	4/20/17		(—	@)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated 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)
HSBC Bank PLC	$	291	RUB	17,145	5/5/17	$	12
JPMorgan Chase Bank NA	BRL	4,641	$	1,488	5/5/17		16
JPMorgan Chase Bank NA	RUB	17,145	$	285	5/5/17		(17	)
JPMorgan Chase Bank NA	RUB	22,751	$	393	5/5/17		(8	)
JPMorgan Chase Bank NA	$	366	BRL	1,180	5/5/17		8
JPMorgan Chase Bank NA	ZAR	3,000	$	223	5/5/17		1
UBS AG	$	357	MYR	1,600	5/5/17		4
HSBC Bank PLC	$	1,457	KRW	1,658,797	5/8/17		27
JPMorgan Chase Bank NA	KRW	214,329	$	185	5/8/17		(7	)
UBS AG	$	520	GBP	415	5/8/17		—	@
Citibank NA	CNH	76,741	$	11,444	5/11/17		310
Citibank NA	CNH	23,577	$	3,473	5/11/17		53
Citibank NA	CNH	23,648	$	3,482	5/11/17		51
Citibank NA	CNH	9,493	$	1,398	5/11/17		20
Citibank NA	$	397	CNH	2,674	5/11/17		(9	)
Citibank NA	$	5,405	CNH	36,773	5/11/17		(70	)
Citibank NA	$	7,010	CNH	47,472	5/11/17		(122	)
JPMorgan Chase Bank NA	CNH	23,577	$	3,491	5/11/17		70
JPMorgan Chase Bank NA	CNH	36,228	$	5,343	5/11/17		87
JPMorgan Chase Bank NA	CNH	36,228	$	5,328	5/11/17		72
JPMorgan Chase Bank NA	CNH	4,921	$	732	5/11/17		18
JPMorgan Chase Bank NA	CNH	8,728	$	1,284	5/11/17		18
JPMorgan Chase Bank NA	CNH	2,013	$	282	5/11/17		(11	)
JPMorgan Chase Bank NA	$	3,775	CNH	25,562	5/11/17		(66	)
JPMorgan Chase Bank NA	$	467	CNH	3,150	5/11/17		(10	)
JPMorgan Chase Bank NA	$	271	CNH	1,865	5/11/17		(1	)
JPMorgan Chase Bank NA	$	8,890	CNH	62,583	5/11/17		190
JPMorgan Chase Bank NA	$	395	CNH	2,735	5/11/17		1
JPMorgan Chase Bank NA	$	9,054	CNH	62,342	5/11/17		(9	)
Goldman Sachs International	BRL	779	$	247	5/18/17		—	@
State Street Bank and Trust Co.	RUB	48,702	$	822	5/18/17		(35	)
State Street Bank and Trust Co.	RUB	35,295	$	593	5/18/17		(27	)
State Street Bank and Trust Co.	$	963	RUB	54,819	5/18/17		1
Citibank NA	EUR	2,785	$	3,036	2/1/18		17
Citibank NA	EUR	3,184	$	3,464	2/1/18		12
Citibank NA	$	3,071	CZK	75,235	2/1/18		(17	)
Citibank NA	$	3,504	CZK	86,013	2/1/18		(13	)
						$	1,273

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2017:

	Number of Contracts		Value (000)		Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
Amsterdam Index (Netherlands)		3	$	330	Apr-17	$	5
CAC 40 Index (France)		7		382	Apr-17		11
German Euro BOBL (Germany)		23		3,234	Jun-17		1
MSCI Emerging Market E Mini (United States)		485		23,314	Jun-17		576
MSCI Singapore Free Index (Singapore)		37		924	Apr-17		(—	@)
S&P 500 E Mini Index (United States)		372		43,881	Jun-17		(185	)
TOPIX Index (Japan)		50		6,793	Jun-17		(129	)
U.S. Treasury 10 yr. Note (United States)		23		2,865	Jun-17		39
U.S. Treasury 10 yr. Ultra Long Bond (United States)		210		28,117	Jun-17		86
U.S. Treasury 2 yr. Note (United States)		97		20,996	Jun-17		29
U.S. Treasury 30 yr. Bond (United States)		5		754	Jun-17		12
U.S. Treasury Ultra Bond (United States)		3		482	Jun-17		9

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Futures Contracts: (cont'd)

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Short:
Brent Crude Futures (United Kingdom)		36	$	(1,927	)	Apr-17	$	(75	)
Copper Future (United States)		67		(4,443	)	May-17		37
Euro Stoxx 50 Index (Germany)		333		(12,171	)	Jun-17		(350	)
FTSE 100 Index (United Kingdom)		27		(2,461	)	Jun-17		4
German Euro BTP (Germany)		20		(2,789	)	Jun-17		(5	)
German Euro Bund (Germany)		21		(3,616	)	Jun-17		(25	)
NIKKEI 225 Index (United States)		18		(1,533	)	Jun-17		38
OMXS 30 Index (Sweden)		96		(1,695	)	Apr-17		(17	)
U.S. Treasury 5 yr. Note (United States)		3		(353	)	Jun-17		(3	)
							$	58

Credit Default Swap Agreement:

The Fund had the following credit default swap agreement open at March 31, 2017:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment (Received) (000)			Unrealized Appreciation (000)		Value (000)			Credit Rating of Reference Obligation†
Barclays Bank PLC Russian Federation	Sell	$	2,370		1.00	%	6/20/21	$	(199	)	$	172	$	(27	)	BB+

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 31, 2017:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	3 Month KORIBOR	Pay		1.47	%	10/18/26	KRW	639,000	$	(21	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.71		3/19/20	$	7,400		19
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.45		7/17/25		3,400		(43	)
Morgan Stanley & Co., LLC*	6 Month EURIBOR	Receive		0.46		6/14/26	EUR	7,303		316
Morgan Stanley & Co., LLC*	6 Month EURIBOR	Receive		0.40		10/26/26		505		15
Morgan Stanley & Co., LLC*	6 Month EURIBOR	Receive		0.64		11/24/26		1,039		7
Morgan Stanley & Co., LLC*	6 Month EURIBOR	Receive		0.73		12/9/26		7,660		(14	)
Morgan Stanley & Co., LLC*	6 Month EURIBOR	Receive		0.73		12/9/26		7,660		(6	)
Morgan Stanley & Co., LLC*	6 Month EURIBOR	Receive		0.81		1/30/27		1,220		(10	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.74		12/21/46	$	640		(11	)
									$	252

Total Return Swap Agreements:

The Fund had the following total return swap agreements open at March 31, 2017:

Swap Counterparty	Index	Notional Amount (000)		Floating Rate	Pay/Receive Total Return of Referenced Index	Maturity Date	Upfront Payment Paid (Received) (000)		Unrealized Appreciation (Depreciation) (000)
Barclays Bank PLC	Barclays Short Elevators Index††	$	981	3 Month USD LIBOR plus 0.12%	Pay	9/8/17	$	—	$	(26	)
BNP Paribas SA	Short Iron Ore Miners Index††		1,197	3 Month USD LIBOR minus 0.04%	Pay	11/16/17		—		127
BNP Paribas SA	Short Iron Ore Miners Index††		584	3 Month USD LIBOR minus 0.04%	Pay	11/16/17		—		74
BNP Paribas SA	Short Iron Ore Miners Index††		2,158	3 Month USD LIBOR minus 0.12%	Pay	11/16/17		—		2

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Total Return Swap Agreements: (cont'd)

Swap Counterparty	Index	Notional Amount (000)		Floating Rate	Pay/Receive Total Return of Referenced Index	Maturity Date	Upfront Payment Paid (Received) (000)		Unrealized Appreciation (Depreciation) (000)
Citibank NA	Short U.S. Cyclicals Index††	$	5,109	3 Month USD LIBOR plus 0.12%	Pay	2/20/18	$	—	$	(116	)
Citibank NA	Short U.S. Cyclicals Index††		5,079	3 Month USD LIBOR plus 0.12%	Pay	2/20/18		—		(76	)
Citibank NA	Short U.S. Cyclicals Index††		1,220	3 Month USD LIBOR plus 0.12%	Pay	2/20/18		—		(11	)
JPMorgan Chase Bank NA	Short U.S. Capital Goods Index		4,089	3 Month USD LIBOR plus 0.19%	Pay	3/8/18		—		27
JPMorgan Chase Bank NA	Short China Banks Index††		2,287	3 Month USD LIBOR plus 0.10%	Pay	3/15/18		—		40
									$	41

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

The following table represents the equity basket holdings underlying the total return swap with Barclays Short Elevators Index as of March 31, 2017.

Security Description	Index Weight
Barclays Short Elevators Index
Fujitec Co., Ltd.		1.31	%
Kone OYJ		52.52
Schindler Holding AG		45.55
Yungtay Engineering Co., Ltd.		0.62
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Short Iron Ore Miners Index as of March 31, 2017.

Security Description	Index Weight
Short Iron Ore Miners Index
African Rainbow Minerals Ltd.		1.15	%
Assore Ltd.		0.28
BHP Billiton PLC		25.33
Ferrexpo PLC		0.83
Fortescue Metals Group Ltd.		9.53
Rio Tinto PLC		38.99
Vale SA		23.89
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Short U.S. Cyclicals Index as of March 31, 2017.

Security Description	Index Weight
Short U.S. Cyclicals Index
3M Co.		1.20	%
Accenture PLC		0.77
Activision Blizzard, Inc.		0.31
Acuity Brands, Inc.		0.09
Adobe Systems, Inc.		0.68
Advance Auto Parts, Inc.		0.12
Air Products & Chemicals, Inc.		0.31

Security Description	Index Weight
Akamai Technologies, Inc.		0.11	%
Alaska Air Group, Inc.		0.12
Albemarle Corp.		0.13
Allegion PLC		0.07
Alliance Data Systems Corp.		0.15
Alphabet, Inc.		5.24
Amazon.com, Inc.		3.66
American Airlines Group, Inc.		0.22
AMETEK, Inc.		0.13
Amphenol Corp.		0.23
Analog Devices, Inc.		0.43
Apple, Inc.		8.10
Applied Materials, Inc.		0.45
Arconic, Inc.		0.11
Autodesk, Inc.		0.18
Automatic Data Processing, Inc.		0.48
AutoNation, Inc.		0.03
AutoZone, Inc.		0.22
Avery Dennison Corp.		0.08
Ball Corp.		0.14
Bed Bath & Beyond, Inc.		0.06
Best Buy Co., Inc.		0.14
Boeing Co. (The)		1.06
BorgWarner, Inc.		0.09
Broadcom Ltd.		0.93
CA, Inc.		0.10
CarMax, Inc.		0.12
Carnival Corp.		0.26
Caterpillar, Inc.		0.55
CBS Corp.		0.28
CF Industries Holdings, Inc.		0.07
CH Robinson Worldwide, Inc.		0.12
Charter Communications, Inc.		0.76
Chipotle Mexican Grill, Inc.		0.13
Cintas Corp.		0.11
Cisco Systems, Inc.		1.77

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Index Weight
Citrix Systems, Inc.		0.14	%
Coach, Inc.		0.12
Cognizant Technology Solutions Corp.		0.38
Comcast Corp.		1.89
Corning, Inc.		0.27
CSRA, Inc.		0.05
CSX Corp.		0.47
Cummins, Inc.		0.24
Darden Restaurants, Inc.		0.11
Deere & Co.		0.33
Delphi Automotive PLC		0.23
Delta Air Lines, Inc.		0.35
Discovery Communications, Inc.		0.11
Dollar General Corp.		0.19
Dollar Tree, Inc.		0.19
Dover Corp.		0.13
Dow Chemical Co. (The)		0.74
DR Horton, Inc.		0.12
Dun & Bradstreet Corp. (The)		0.05
Eastman Chemical Co.		0.12
Eaton Corp. PLC		0.35
eBay, Inc.		0.37
Ecolab, Inc.		0.35
EI du Pont de Nemours & Co.		0.73
Electronic Arts, Inc.		0.27
Emerson Electric Co.		0.40
Equifax, Inc.		0.16
Expedia, Inc.		0.17
Expeditors International of Washington		0.11
F5 Networks, Inc.		0.10
Facebook, Inc.		3.55
Fastenal Co.		0.16
FedEx Corp.		0.50
Fidelity National Information Services		0.28
First Solar, Inc.		0.02
Fiserv, Inc.		0.26
FLIR Systems, Inc.		0.05
Flowserve Corp.		0.07
Fluor Corp.		0.08
FMC Corp.		0.10
Foot Locker, Inc.		0.11
Ford Motor Co.		0.48
Fortive Corp.		0.19
Fortune Brands Home & Security, Inc.		0.10
Freeport-McMoRan, Inc.		0.18
Gap, Inc. (The)		0.06
Garmin Ltd.		0.06
General Dynamics Corp.		0.56
General Electric Co.		2.76
General Motors Co		0.52
Genuine Parts Co.		0.15
Global Payments, Inc.		0.13
Goodyear Tire & Rubber Co. (The)		0.09
H&R Block, Inc.		0.05
Hanesbrands, Inc.		0.08
Harley-Davidson, Inc.		0.11
Harris Corp.		0.15
Hasbro, Inc.		0.12
Hewlett Packard Enterprise Co.		0.41
Home Depot, Inc. (The)		1.88

Security Description	Index Weight
Honeywell International, Inc.		0.98	%
HP, Inc.		0.32
Illinois Tool Works, Inc.		0.44
Ingersoll-Rand PLC		0.22
Intel Corp.		1.85
International Business Machines Corp.		1.58
International Flavors & Fragrances, Inc.		0.11
International Paper Co.		0.22
Interpublic Group of Cos., Inc. (The)		0.10
Intuit, Inc.		0.30
Jacobs Engineering Group, Inc.		0.07
JB Hunt Transport Services, Inc.		0.08
Johnson Controls International PLC		0.41
Juniper Networks, Inc.		0.11
Kansas City Southern		0.10
KLA-Tencor Corp.		0.16
Kohl's Corp.		0.07
L Brands, Inc.		0.12
L3 Technologies, Inc.		0.13
Lam Research Corp.		0.22
Leggett & Platt, Inc.		0.07
Lennar Corp.		0.10
LKQ Corp.		0.09
Lockheed Martin Corp.		0.70
Lowe's Cos., Inc.		0.75
LyondellBasell Industries N.V.		0.32
Macy's, Inc.		0.10
Marriott International, Inc.		0.32
Martin Marietta Materials, Inc.		0.14
Masco Corp.		0.12
Mattel, Inc.		0.09
McDonald's Corp.		1.14
Michael Kors Holdings Ltd.		0.07
Microchip Technology, Inc.		0.18
Micron Technology, Inc.		0.32
Microsoft Corp.		5.35
Mohawk Industries, Inc.		0.15
Monsanto Co.		0.53
Mosaic Co. (The)		0.10
Motorola Solutions, Inc.		0.15
NetApp, Inc.		0.12
Netflix, Inc.		0.68
Newell Brands, Inc.		0.24
Newmont Mining Corp.		0.19
News Corp.		0.07
Nielsen Holdings PLC		0.14
NIKE, Inc.		0.76
Nordstrom, Inc.		0.06
Norfolk Southern Corp.		0.35
Northrop Grumman Corp.		0.44
Nucor Corp.		0.19
NVIDIA Corp.		0.69
Omnicom Group, Inc.		0.22
Oracle Corp.		1.39
O'Reilly Automotive, Inc.		0.28
PACCAR, Inc.		0.24
Parker-Hannifin Corp.		0.22
Paychex, Inc.		0.20
PayPal Holdings, Inc.		0.51
Pentair PLC		0.11

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Index Weight
Pitney Bowes, Inc.		0.03	%
PPG Industries, Inc.		0.29
Praxair, Inc.		0.36
Priceline Group, Inc. (The)		0.91
PulteGroup, Inc.		0.07
PVH Corp.		0.09
Qorvo, Inc.		0.09
QUALCOMM, Inc.		0.87
Quanta Services, Inc.		0.06
Ralph Lauren Corp.		0.05
Raytheon Co.		0.47
Red Hat, Inc.		0.16
Republic Services, Inc.		0.15
Robert Half International, Inc.		0.07
Rockwell Automation, Inc.		0.21
Rockwell Collins, Inc.		0.13
Roper Technologies, Inc.		0.21
Ross Stores, Inc.		0.28
Royal Caribbean Cruises Ltd.		0.17
Ryder System, Inc.		0.04
salesforce.com, Inc.		0.56
Scripps Networks Interactive, Inc.		0.08
Seagate Technology PLC		0.14
Sealed Air Corp.		0.10
Sherwin-Williams Co. (The)		0.26
Signet Jewelers Ltd.		0.05
Skyworks Solutions, Inc.		0.19
Snap-on, Inc.		0.10
Southwest Airlines Co.		0.34
Stanley Black & Decker, Inc.		0.21
Staples, Inc.		0.06
Starbucks Corp.		0.89
Stericycle, Inc.		0.07
Symantec Corp.		0.20
Target Corp.		0.33
TE Connectivity Ltd.		0.28
TEGNA, Inc.		0.06
Teradata Corp.		0.04
Texas Instruments, Inc.		0.87
Textron, Inc.		0.13
Tiffany & Co.		0.11
Time Warner, Inc.		0.81
TJX Cos., Inc. (The)		0.54
Total System Services, Inc.		0.09
Tractor Supply Co.		0.10
TransDigm Group, Inc.		0.12
TripAdvisor, Inc.		0.05
Twenty-First Century Fox, Inc.		0.54
Ulta Beauty, Inc.		0.18
Under Armour, Inc.		0.07
Union Pacific Corp.		0.92
United Continental Holdings, Inc.		0.21
United Parcel Service, Inc.		0.77
United Rentals, Inc.		0.11
United Technologies Corp.		0.90
Urban Outfitters, Inc.		0.02
VeriSign, Inc.		0.08
Verisk Analytics, Inc.		0.13
VF Corp.		0.19
Viacom, Inc.		0.17

Security Description	Index Weight
Visa, Inc.		1.74	%
Vulcan Materials Co.		0.17
Walt Disney Co. (The)		1.76
Waste Management, Inc.		0.31
Western Digital Corp.		0.25
Western Union Co. (The)		0.11
WestRock Co.		0.14
Whirlpool Corp.		0.14
WW Grainger, Inc.		0.14
Wyndham Worldwide Corp.		0.10
Wynn Resorts Ltd.		0.10
Xerox Corp.		0.07
Xilinx, Inc.		0.15
Xylem, Inc.		0.09
Yahoo!, Inc.		0.43
Yum! Brands, Inc.		0.23
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with Short China Banks Index as of March 31, 2017.

Security Description	Index Weight
Short China Banks Index
Bank of Communications Co., Ltd.		14.04	%
China CITIC Bank Corp., Ltd.		38.57
China Everbright Bank Co., Ltd.		2.19
China Merchants Bank Co., Ltd.		27.28
China Minsheng Banking Corp., Ltd.		13.82
Chongqing Rural Commercial Bank Co., Ltd.		4.10
		100.00	%

@    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.

KORIBOR  Korea Interbank Offered Rate.

LIBOR    London Interbank Offered Rate.

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

CNH  —  Chinese Yuan Renminbi

CZK  —  Czech Koruna

DKK  —  Danish Krone

EUR  —  Euro

GBP  —  British Pound

HKD  —  Hong Kong Dollar

HUF  —  Hungarian Forint

ILS  —  Israeli Shekel

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

ZAR  —  South African Rand

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Common Stocks		49.9	%
Fixed Income Securities		30.4
Short-Term Investments		19.7
Other**		0.0	***
Total Investments		100.0	%****

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

***   Amount is less than 0.05%.

****  Does not include open long/short futures contracts with an underlying face amount of approximately $163,060,000 with net unrealized appreciation of approximately $58,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $1,273,000 and does not include open swap agreements with net unrealized appreciation of approximately $465,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Global Strategist Portfolio

Consolidated Statement of Assets and Liabilities	March 31, 2017 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $234,072)	$	271,405
Investment in Security of Affiliated Issuer, at Value (Cost $63,403)		63,403
Total Investments in Securities, at Value (Cost $297,475)		334,808
Foreign Currency, at Value (Cost $410)		413
Receivable for Variation Margin on Futures Contracts		5,447
Receivable for Investments Sold		2,453
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		2,311
Interest Receivable		764
Dividends Receivable		451
Unrealized Appreciation on Swap Agreements		442
Tax Reclaim Receivable		181
Receivable for Fund Shares Sold		32
Receivable from Affiliate		24
Receivable for Swap Agreements Termination		2
Other Assets		114
Total Assets		347,442
Liabilities:
Payable for Investments Purchased		2,461
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		1,038
Due to Broker		731
Payable for Fund Shares Redeemed	��	657
Payable for Advisory Fees		322
Unrealized Depreciation on Swap Agreements		250
Premium Received on Open Swap Agreements		199
Payable for Custodian Fees		150
Payable for Trustees' Fees and Expenses		133
Payable for Shareholder Services Fees — Class A		52
Payable for Distribution and Shareholder Services Fees — Class L		13
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Sub Transfer Agency Fees — Class A		54
Payable for Sub Transfer Agency Fees — Class L		8
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Professional Fees		47
Bank Overdraft		29
Payable for Administration Fees		23
Payable for Transfer Agency Fees — Class I		4
Payable for Transfer Agency Fees — Class A		14
Payable for Transfer Agency Fees — Class L		2
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class IS		1
Payable for Variation Margin on Swap Agreements		8
Payable for Organization Costs for Subsidiary		—	@
Other Liabilities		94
Total Liabilities		6,292
Net Assets	$	341,150
Net Assets Consist Of:
Paid-in-Capital	$	302,058
Distributions in Excess of Net Investment Income		(41	)
Accumulated Net Realized Gain		1
Unrealized Appreciation (Depreciation) on:
Investments		37,333
Futures Contracts		58
Swap Agreements		465
Foreign Currency Forward Exchange Contracts		1,273
Foreign Currency Translations		3
Net Assets	$	341,150

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Global Strategist Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	March 31, 2017 (000)
CLASS I:
Net Assets	$	75,356
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,650,071
Net Asset Value, Offering and Redemption Price Per Share	$	16.21
CLASS A:
Net Assets	$	243,819
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		15,156,397
Net Asset Value, Redemption Price Per Share	$	16.09
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.89
Maximum Offering Price Per Share	$	16.98
CLASS L:
Net Assets	$	20,475
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,282,429
Net Asset Value, Offering and Redemption Price Per Share	$	15.97
CLASS C:
Net Assets	$	1,372
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		86,177
Net Asset Value, Offering and Redemption Price Per Share	$	15.92
CLASS IS:
Net Assets	$	128
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		7,888
Net Asset Value, Offering and Redemption Price Per Share	$	16.21

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Global Strategist Portfolio

Consolidated Statement of Operations	Six Months Ended March 31, 2017 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $114 of Foreign Taxes Withheld)	$	1,780
Interest from Securities of Unaffiliated Issuers		1,482
Dividends from Security of Affiliated Issuer (Note G)		86
Total Investment Income		3,348
Expenses:
Advisory Fees (Note B)		773
Shareholder Services Fees — Class A (Note D)		307
Distribution and Shareholder Services Fees — Class L (Note D)		79
Distribution and Shareholder Services Fees — Class C (Note D)		7
Sub Transfer Agency Fees — Class I		15
Sub Transfer Agency Fees — Class A		125
Sub Transfer Agency Fees — Class L		15
Sub Transfer Agency Fees — Class C		1
Custodian Fees (Note F)		140
Administration Fees (Note C)		137
Professional Fees		73
Pricing Fees		65
Organization Costs for Subsidiary		50
Transfer Agency Fees — Class I (Note E)		6
Transfer Agency Fees — Class A (Note E)		20
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Shareholder Reporting Fees		29
Registration Fees		25
Trustees' Fees and Expenses		3
Other Expenses		10
Expenses Before Non Operating Expenses		1,884
Bank Overdraft Expense		—	@
Total Expenses		1,884
Waiver of Advisory Fees (Note B)		(88	)
Rebate from Morgan Stanley Affiliate (Note G)		(31	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(10	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(4	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Net Expenses		1,749
Net Investment Income		1,599
Realized Gain (Loss):
Investments Sold		4,336
Investments in Affiliates		(18	)
Foreign Currency Forward Exchange Contracts		1,070
Foreign Currency Transactions		487
Futures Contracts		6,285
Swap Agreements		(777	)
Net Realized Gain		11,383
Change in Unrealized Appreciation (Depreciation):
Investments		(2,068	)
Investments in Affiliates		20
Foreign Currency Forward Exchange Contracts		1,113
Foreign Currency Translations		11
Futures Contracts		(476	)
Swap Agreements		484
Net Change in Unrealized Appreciation (Depreciation)		(916	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		10,467
Net Increase in Net Assets Resulting from Operations	$	12,066

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Global Strategist Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016* (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,599		$	5,899
Net Realized Gain		11,383			5,469
Net Change in Unrealized Appreciation (Depreciation)		(916	)		17,291
Net Increase in Net Assets Resulting from Operations		12,066			28,659
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(830	)		—
Net Realized Gain		—			(87	)
Class A:
Net Investment Income		(1,982	)		—
Net Realized Gain		—			(309	)
Class L:
Net Investment Income		(40	)		—
Net Realized Gain		—			(27	)
Class C:
Net Realized Gain		—			(2	)
Class IS:
Net Investment Income		(2	)		—
Net Realized Gain		—			(—	@)
Total Distributions		(2,854	)		(425	)
Capital Share Transactions:(1)
Class I:
Subscribed		3,281			9,802
Distributions Reinvested		828			86
Redeemed		(4,872	)		(25,460	)
Class A:
Subscribed		1,639			3,171
Distributions Reinvested		1,946			304
Redeemed		(26,345	)		(51,527	)
Class L:
Exchanged		752			2,564
Distributions Reinvested		40			27
Redeemed		(3,992	)		(5,770	)
Class C:
Subscribed		83			800
Distributions Reinvested		—			2
Redeemed		(367	)		(681	)
Class IS:
Subscribed		—	@		128
Distributions Reinvested		1			—
Redeemed		(20	)		—
Net Decrease in Net Assets Resulting from Capital Share Transactions		(27,026	)		(66,554	)
Total Decrease in Net Assets		(17,814	)		(38,320	)
Net Assets:
Beginning of Period		358,964			397,284
End of Period (Including Distributions in Excess of Net Investment Income and Accumulated Undistributed Net Investment Income of $(41) and $1,214, respectively)	$	341,150		$	358,964

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Global Strategist Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016* (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		210			648
Shares Issued on Distributions Reinvested		53			6
Shares Redeemed		(311	)		(1,711	)
Net Decrease in Class I Shares Outstanding		(48	)		(1,057	)
Class A:
Shares Subscribed		104			211
Shares Issued on Distributions Reinvested		127			21
Shares Redeemed		(1,694	)		(3,439	)
Net Decrease in Class A Shares Outstanding		(1,463	)		(3,207	)
Class L:
Shares Exchanged		48			174
Shares Issued on Distributions Reinvested		3			2
Shares Redeemed		(259	)		(389	)
Net Decrease in Class L Shares Outstanding		(208	)		(213	)
Class C:
Shares Subscribed		6			55
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(24	)		(45	)
Net Increase (Decrease) in Class C Shares Outstanding		(18	)		10
Class IS:
Shares Subscribed		—	@@		8
Shares Issued on Distributions Reinvested		—	@@		—
Shares Redeemed		(1	)		—
Net Increase (Decrease) in Class IS Shares Outstanding		(1	)		8

*  Not consolidated.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Financial Highlights

Global Strategist Portfolio

	Class I
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)(2)			2015(2)			2014(2)			2013(2)			2012(2)
Net Asset Value, Beginning of Period	$	15.79		$	14.58		$	16.99		$	16.96		$	15.22		$	12.50
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.10			0.28			0.28			0.34			0.35			0.14
Net Realized and Unrealized Gain (Loss)		0.50			0.95			(1.73	)		1.15			1.44			2.79
Total from Investment Operations		0.60			1.23			(1.45	)		1.49			1.79			2.93
Distributions from and/or in Excess of:
Net Investment Income		(0.18	)		—			(0.35	)		(0.23	)		(0.05	)		(0.21	)
Net Realized Gain		—			(0.02	)		(0.61	)		(1.23	)		—			—
Total Distributions		(0.18	)		(0.02	)		(0.96	)		(1.46	)		(0.05	)		(0.21	)
Net Asset Value, End of Period	$	16.21		$	15.79		$	14.58		$	16.99		$	16.96		$	15.22
Total Return (4)		3.84	%(7)		8.42	%(5)		(8.87	)%		9.37	%		11.79	%		23.66	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	75,356		$	74,158		$	83,930		$	72,952		$	52,170		$	23,756
Ratio of Expenses to Average Net Assets (9)		0.72	%(6)		0.68	%(6)		0.73	%(6)		0.72	%(6)		0.69	%(6)		1.37	%(6)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		0.72	%(6)(8)		N/A			N/A			N/A			0.76	%(6)		N/A
Ratio of Net Investment Income to Average Net Assets (9)		1.24	%(6)(8)		1.84	%(6)		1.78	%(6)		1.99	%(6)		2.18	%(6)		1.01	%(6)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(8)		0.01	%		0.01	%		0.02	%		0.01	%		0.02	%
Portfolio Turnover Rate		108	%(7)		103	%		98	%		62	%		107	%		168	%
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.82	%(8)		0.81	%		0.83	%		0.83	%		0.82	%		N/A
Net Investment Income to Average Net Assets		1.14	%(8)		1.71	%		1.68	%		1.88	%		2.05	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses to Average Net Assets would have been 0.05% higher and the Ratio of Net Investment Income to Average Net Assets would have been 0.05% lower had the custodian not reimbursed the Fund.

(2)  Not consolidated.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Performance was positively impacted by approximately 0.21% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 8.21%.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  Not Annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Financial Highlights

Global Strategist Portfolio

	Class A
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)(2)			2015(2)			2014(2)			2013(2)			2012(2)
Net Asset Value, Beginning of Period	$	15.64		$	14.50		$	16.88		$	16.88		$	15.18		$	12.47
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.07			0.23			0.23			0.27			0.42			0.10
Net Realized and Unrealized Gain (Loss)		0.51			0.93			(1.71	)		1.15			1.32			2.79
Total from Investment Operations		0.58			1.16			(1.48	)		1.42			1.74			2.89
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		—			(0.29	)		(0.19	)		(0.04	)		(0.18	)
Net Realized Gain		—			(0.02	)		(0.61	)		(1.23	)		—			—
Total Distributions		(0.13	)		(0.02	)		(0.90	)		(1.42	)		(0.04	)		(0.18	)
Net Asset Value, End of Period	$	16.09		$	15.64		$	14.50		$	16.88		$	16.88		$	15.18
Total Return (4)		3.71	%(8)		7.98	%(5)		(9.16	)%		9.02	%		11.49	%		23.33	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	243,819		$	259,999		$	287,438		$	365,642		$	373,559		$	20,487
Ratio of Expenses to Average Net Assets (10)		1.06	%(6)(9)		0.99	%(6)		1.05	%(6)		1.07	%(6)		0.47	%(6)(7)		1.64	%(6)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.06	%(6)(9)		N/A			N/A			N/A			1.03	%(6)(7)		N/A
Ratio of Net Investment Income to Average Net Assets (10)		0.90	%(6)(9)		1.56	%(6)		1.44	%(6)		1.64	%(6)		2.60	%(6)(7)		0.69	%(6)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(9)		0.01	%		0.01	%		0.02	%		0.01	%		0.02	%
Portfolio Turnover Rate		108	%(8)		103	%		98	%		62	%		107	%		168	%
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.13	%(9)		1.11	%		1.11	%		1.14	%		1.11	%		N/A
Net Investment Income to Average Net Assets		0.83	%(9)		1.44	%		1.38	%		1.57	%		1.96	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses to Average Net Assets would have been 0.07% higher and the Ratio of Net Investment Income to Average Net Assets would have been 0.07% lower had the custodian not reimbursed the Fund.

(2)  Not consolidated.

(3)  Per share amount is based on average shares outstanding.

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

(5)  Performance was positively impacted by approximately 0.27% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 7.71%.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  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.

(8) ��Not Annualized.

(9)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Financial Highlights

Global Strategist Portfolio

	Class L
	Six Months Ended March 31, 2017			Year Ended September 30,												Period from April 27, 2012(3) to
Selected Per Share Data and Ratios	(unaudited)			2016(1)(2)			2015(2)			2014(2)			2013(2)			September 30, 2012(2)
Net Asset Value, Beginning of Period	$	15.47		$	14.41		$	16.79		$	16.78		$	15.15		$	14.42
Income (Loss) from Investment Operations:
Net Investment Income (Loss) (4)		0.03			0.15			0.15			0.19			0.23			(0.02	)
Net Realized and Unrealized Gain (Loss)		0.50			0.93			(1.72	)		1.15			1.42			0.78
Total from Investment Operations		0.53			1.08			(1.57	)		1.34			1.65			0.76
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		—			(0.20	)		(0.10	)		(0.02	)		(0.03	)
Net Realized Gain		—			(0.02	)		(0.61	)		(1.23	)		—			—
Total Distributions		(0.03	)		(0.02	)		(0.81	)		(1.33	)		(0.02	)		(0.03	)
Net Asset Value, End of Period	$	15.97		$	15.47		$	14.41		$	16.79		$	16.78		$	15.15
Total Return (5)		3.43	%(9)		7.47	%(6)		(9.66	)%		8.49	%		10.91	%		5.30	%(9)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	20,475		$	23,051		$	24,544		$	28,032		$	29,025		$	11
Ratio of Expenses to Average Net Assets (11)		1.57	%(7)(10)		1.52	%(7)		1.58	%(7)		1.57	%(7)		1.42	%(7)(8)		2.39	%(7)(10)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.57	%(7)(10)		N/A			N/A			N/A			1.49	%(7)(8)		N/A
Ratio of Net Investment Income (Loss) to Average Net Assets (11)		0.38	%(7)(10)		1.03	%(7)		0.93	%(7)		1.14	%(7)		1.44	%(7)(8)		(0.29	)%(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(10)		0.01	%		0.01	%		0.02	%		0.01	%		0.03	%(10)
Portfolio Turnover Rate		108	%(9)		103	%		98	%		62	%		107	%		168	%(9)
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.67	%(10)		1.64	%		1.69	%(10)		1.70	%		1.54	%		N/A
Net Investment Income to Average Net Assets		0.28	%(10)		0.91	%		0.82	%(10)		1.01	%		1.32	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses to Average Net Assets would have been 0.06% higher and the Ratio of Net Investment Income (Loss) to Average Net Assets would have been 0.06% lower had the custodian not reimbursed the Fund.

(2)  Not consolidated.

(3)  Commencement of Offering.

(4)  Per share amount is based on average shares outstanding.

(5)  Calculated based on the net asset value as of the last business day of the period.

(6)  Performance was positively impacted by approximately 0.20% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 7.27%.

(7)  The Ratios of Expenses and Net Investment Income (Loss) reflect the rebate of certain Fund 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."

(8)  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.

(9)  Not Annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Financial Highlights

Global Strategist Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)(3)			Period from April 30, 2015(2) to September 30, 2015(3)
Net Asset Value, Beginning of Period	$	15.42		$	14.41		$	16.03
Income (Loss) from Investment Operations:
Net Investment Income (4)		0.01			0.10			0.03
Net Realized and Unrealized Gain (Loss)		0.49			0.93			(1.65	)
Total from Investment Operations		0.50			1.03			(1.62	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.02	)		—
Net Asset Value, End of Period	$	15.92		$	15.42		$	14.41
Total Return (5)		3.24	%(8)		7.13	%(6)		(10.11	)%(8)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,372		$	1,613		$	1,363
Ratio of Expenses to Average Net Assets (10)		1.82	%(7)(9)		1.81	%(7)		1.83	%(7)(9)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.82	%(7)(9)		N/A			N/A
Ratio of Net Investment Income to Average Net Assets (10)		0.12	%(7)(9)		0.71	%(7)		0.54	%(7)(9)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(9)		0.01	%		0.01	%(9)
Portfolio Turnover Rate		108	%(8)		103	%		98	%(8)
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		2.01	%(9)		1.94	%		2.28	%(9)
Net Investment Income (Loss) to Average Net Assets		(0.07	)%(9)		0.58	%		0.09	%(9)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses to Average Net Assets would have been 0.02% higher and the Ratio of Net Investment Income to Average Net Assets would have been 0.02% lower had the custodian not reimbursed the Fund.

(2)  Commencement of Offering.

(3)  Not consolidated.

(4)  Per share amount is based on average shares outstanding.

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

(6)  Performance was positively impacted by approximately 0.21% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 6.92%.

(7)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(8)  Not Annualized.

(9)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Consolidated Financial Highlights

Global Strategist Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)(3)			Period from May 29, 2015(2) to September 30, 2015(3)
Net Asset Value, Beginning of Period	$	15.79		$	14.59		$	15.97
Income (Loss) from Investment Operations:
Net Investment Income (4)		0.10			0.26			0.09
Net Realized and Unrealized Gain (Loss)		0.50			0.96			(1.47	)
Total from Investment Operations		0.60			1.22			(1.38	)
Distributions from and/or in Excess of:
Net Investment Income		(0.18	)		—			—
Net Realized Gain		—			(0.02	)		—
Total Distributions		(0.18	)		(0.02	)		—
Net Asset Value, End of Period	$	16.21		$	15.79		$	14.59
Total Return (5)		3.87	%(9)		8.42	%(6)		(8.70	)%(9)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	128		$	143		$	9
Ratio of Expenses to Average Net Assets (11)		0.69	%(7)(10)		0.70	%(7)		0.71	%(7)(10)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		0.69	%(7)(10)		N/A			N/A
Ratio of Net Investment Income to Average Net Assets (11)		1.27	%(7)(10)		1.68	%(7)		1.66	%(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(10)		0.01	%		0.00	%(8)(10)
Portfolio Turnover Rate		108	%(9)		103	%		98	%(9)
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.02	%(10)		5.44	%		16.27	%(10)
Net Investment Loss to Average Net Assets		(0.06	)%(10)		(3.06	)%		(13.90	)%(10)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Not consolidated.

(4)  Per share amount is based on average shares outstanding.

(5)  Calculated based on the net asset value as of the last business day of the period.

(6)  Performance was positively impacted by approximately 0.35% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class IS shares would have been approximately 8.07%.

(7)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(8)  Amount is less than 0.005%.

(9)  Not Annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Notes to Consolidated Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Trust is comprised of nine separate, active funds (individually referred to as a "Fund", collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

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

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

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 Trust in the preparation of its consolidated financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. Actual results may differ from those estimates.

Effective October 3, 2016, the Fund may, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Global Strategist Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest, directly or indirectly through the use of derivatives, in securities, commodities, commodity-related instruments and other investments, primarily futures, swaps and notes. The Fund is the sole shareholder of the Subsidiary, and it is not currently expected that shares of the Subsidiary will be sold or offered to other investors. The consolidated portfolio of investments and consolidated financial statements include the positions and accounts of the Fund and the Subsidiary. All intercompany accounts and transactions of the Fund and the Subsidiary have been eliminated in consolidation. As of March 31, 2017, the Subsidiary represented approximately $14,980,000 or approximately 4.39% of the total assets of the Fund.

Investments in the Subsidiary are expected to provide the Fund with exposure to the commodity markets within the

limitations of Subchapter M of the Code and recent Internal Revenue Service ("IRS") revenue rulings, which require that a mutual fund receive no more than ten percent of its gross income from such investments in order to receive favorable tax treatment as a regulated investment company ("RIC"). Tax treatment of the income received from the Subsidiary may potentially be affected by changes in legislation, regulations or other legally binding authority, which could affect the character, timing and amount of the Fund's taxable income and distributions. If such changes occur, the Fund may need to significantly change its investment strategy and recognize unrealized gains in order to remain qualified for taxation as a RIC, which could adversely affect the Fund.

1.  Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads, and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges; (3) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant

40

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

markets. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (5) OTC swaps may be valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange; (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 its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (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; and (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.

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

The Trust 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

41

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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

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

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

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

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

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

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2017.

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	$	—	$	266	$	—		$	266
Agency Fixed Rate Mortgages		—		7,089		—			7,089
Asset-Backed Securities		—		364		—			364
Collateralized Mortgage Obligations — Agency Collateral Series		—		178		—			178
Commercial Mortgage- Backed Securities		—		2,370		—			2,370
Corporate Bonds		—		30,116		—			30,116
Mortgages — Other		—		2,019		—			2,019
Sovereign		—		57,163		—			57,163
U.S. Treasury Securities		—		2,316		—			2,316
Total Fixed Income Securities		—		101,881		—			101,881
Common Stocks
Aerospace & Defense		1,159		—		—			1,159
Air Freight & Logistics		620		—		—			620
Airlines		825		—		—			825
Auto Components		1,345		—		—			1,345
Automobiles		4,656		—		—			4,656
Banks		20,633		—		—	†		20,633	†
Beverages		3,943		—		—			3,943
Biotechnology		3,466		—		—			3,466
Building Products		2,424		—		—			2,424
Capital Markets		3,969		—		—			3,969
Chemicals		4,533		—		—			4,533
Commercial Services & Supplies		914		—		—			914
Communications Equipment		1,008		—		—			1,008
Construction & Engineering		3,038		—		—			3,038
Construction Materials		803		—		—			803
Consumer Finance		365		—		—			365
Containers & Packaging		241		—		—			241
Distributors		10		—		—			10
Diversified Consumer Services		27		—		—			27
Diversified Financial Services		970		—		—			970

42

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Notes to Consolidated 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)
Diversified Telecommunication Services	$	4,696	$	776		$	—		$	5,472
Electric Utilities		3,479		—			—			3,479
Electrical Equipment		1,330		—			—			1,330
Electronic Equipment, Instruments & Components		1,188		—			—			1,188
Energy Equipment & Services		862		—			—	†		862	†
Equity Real Estate Investment Trusts (REITs)		2,501		—			—			2,501
Food & Staples Retailing		4,417		—			—			4,417
Food Products		3,825		—			—			3,825
Gas Utilities		384		—			—			384
Health Care Equipment & Supplies		3,345		—			—			3,345
Health Care Providers & Services		3,141		—			—			3,141
Health Care Technology		101		—			—			101
Hotels, Restaurants & Leisure		2,720		—			—			2,720
Household Durables		916		—			—			916
Household Products		3,147		—			—			3,147
Independent Power and Renewable Electricity Producers		111		—			—			111
Industrial Conglomerates		2,363		—			—			2,363
Information Technology Services		3,732		—			—			3,732
Insurance		4,945		—			—			4,945
Internet & Direct Marketing Retail		1,171		—			—			1,171
Internet Software & Services		1,351		—			—			1,351
Leisure Products		31		—		��	—			31
Life Sciences Tools & Services		689		—			—			689
Machinery		3,306		—			—			3,306
Marine		212		—			—			212
Media		4,077		—			—			4,077
Metals & Mining		2,855		—	@		—			2,855
Multi-Utilities		2,180		—			—			2,180
Multi-Line Retail		356		—			—			356
Oil, Gas & Consumable Fuels		7,800		—	†		—			7,800	†
Paper & Forest Products		362		—			—			362
Personal Products		2,077		—			—			2,077
Pharmaceuticals		10,672		—			—			10,672
Professional Services		2,644		—			—			2,644
Real Estate Management & Development		1,434		—			—			1,434
Road & Rail		2,526		—			—			2,526
Semiconductors & Semiconductor Equipment		2,199		—			—	@		2,199
Software		2,995		—			—			2,995
Specialty Retail		1,725		—			—			1,725

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Tech Hardware, Storage & Peripherals	$	3,261		$	—		$	—		$	3,261
Textiles, Apparel & Luxury Goods		1,987			—			—			1,987
Thrifts & Mortgage Finance		20			—			—			20
Tobacco		3,129			—			—			3,129
Trading Companies & Distributors		1,446			—			—			1,446
Transportation Infrastructure		1,588			—			—			1,588
Water Utilities		142			—			—			142
Wireless Telecommunication Services		1,759			—			—			1,759
Total Common Stocks		166,146			776	†		—	@†		166,922	†
Rights		—			1			—			1
Warrants		5			—			—	†		5	†
Short-Term Investments
Investment Company		63,403			—			—			63,403
U.S. Treasury Securities		—			2,596			—			2,596
Total Short-Term Investments		63,403			2,596			—			65,999
Foreign Currency Forward Exchange Contracts		—			2,311			—			2,311
Futures Contracts		847			—			—			847
Credit Default Swap Agreement		—			172			—			172
Interest Rate Swap Agreements		—			357			—			357
Total Return Swap Agreements		—			270			—			270
Total Assets		230,401			108,364	†		—	@†		338,765	†
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(1,038	)		—			(1,038	)
Futures Contracts		(789	)		—			—			(789	)
Interest Rate Swap Agreements		—			(105	)		—			(105	)
Total Return Swap Agreements		—			(229	)		—			(229	)
Total Liabilities		(789	)		(1,372	)		—			(2,161	)
Total	$	229,612		$	106,992	†	$	—	@†	$	336,604	†

@  Value is less than $500.

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

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of March 31, 2017, securities with a total value of approximately $776,000 transferred from Level 1 to Level 2. Securities that were valued using unadjusted

43

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

quoted prices at September 30, 2016 were valued using other significant observable inputs at March 31, 2017.

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

	Common Stocks (000)			Warrants (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, 2017	$	—	@	$	—

@  Value is less than $500.

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

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

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

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

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

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

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency 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 Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) in the Consolidated Statement of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations for the period is reflected in the Consolidated 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 Consolidated Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

4.  Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including

44

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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 Fund'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 Fund 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 Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund'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 Fund used during the period and their associated risks:

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with

the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Fund'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 Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

Swaps: The Fund 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 Fund'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 Fund'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

45

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Fund 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 Fund'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 Fund may be either the buyer or seller in a credit default swap. Where the Fund 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 Fund 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 Fund 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 Fund if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 Fund is a buyer of protection

and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 Fund'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 Consolidated Portfolio of Investments and serves as an indicator of the current status of the payment/performance risk of the credit derivative. Alternatively, for credit default swaps on an index of credits, the quoted market prices and current values serve as an indicator of the current status of the payment/performance risk of the credit derivative. Generally, lower credit ratings and increasing market values, in absolute terms, represent a deterioration of the credit and a greater likelihood of an adverse credit event of the issuer.

When the Fund has an unrealized loss on a swap agreement, the Fund 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 Consolidated Statement of Assets and Liabilities.

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

46

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

Foreign Currency Forward Exchange Contracts: In connection with its investments in foreign securities, the Fund 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 Fund may use cross currency hedging or proxy hedging with respect to currencies in which the Fund 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 Fund's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Fund 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 Fund as unrealized gain or loss. The Fund 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 Fund is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. The Fund may purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund 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 Consolidated Statement of Assets and Liabilities. Premium paid for purchasing options which expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. The Fund 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 Fund's exposure to the underlying instrument. Writing call options tend to decrease the Fund's exposure to the underlying instruments. When the Fund 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

47

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

transaction to determine the net realized gain or loss. The Fund 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 Fund 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 Fund 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.

As of March 31, 2017, the Fund did not have any outstanding purchased options.

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 Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2017.

	Asset Derivatives Consolidated 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	$	2,311
Futures Contract	Variation Margin on Futures Contracts	Commodity Risk		37	(a)
Futures Contracts	Variation Margin on Futures Contracts	Equity Risk		634	(a)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		176	(a)
Swap Agreement	Unrealized Appreciation on Swap Agreements	Credit Risk		172
Swap Agreements	Unrealized Appreciation on Swap Agreements	Equity Risk		270
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		357	(a)
Total			$	3,957

	Liability Derivatives Consolidated Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Foreign Currency Forward Exchange Contracts	Unrealized Depreciation on Foreign Currency Forward Exchange Contracts	Currency Risk	$	(1,038	)
Futures Contract	Variation Margin on Futures Contracts	Commodity Risk		(75	)(a)
Futures Contracts	Variation Margin on Futures Contracts	Equity Risk		(681	)(a)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		(33	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Equity Risk		(229	)
Swap Agreement	Unrealized Depreciation on Swap Agreements	Interest Rate Risk		(21	)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		(84	)(a)
Total			$	(2,161	)

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

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 31, 2017 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Options Purchased	$	11	(b)
Currency Risk	Foreign Currency Forward Exchange Contracts		1,070
Commodity Risk	Futures Contracts		(171	)
Equity Risk	Futures Contracts		4,463
Interest Rate Risk	Futures Contracts		1,993
Credit Risk	Swap Agreements		142
Equity Risk	Swap Agreements		923
Interest Rate Risk	Swap Agreements		(1,842	)
Total		$	6,589
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Options Purchased	$	(73	)(b)
Currency Risk	Foreign Currency Forward Exchange Contracts		1,113
Commodity Risk	Futures Contracts		(38	)
Equity Risk	Futures Contracts		(550	)
Interest Rate Risk	Futures Contracts		112
Equity Risk	Swap Agreements		(472	)
Credit Risk	Swap Agreements		64
Interest Rate Risk	Swap Agreements		892
Total		$	1,048

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

48

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

At March 31, 2017, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives(c)	Assets(d) (000)		Liabilities(d) (000)
Foreign Currency Forward Exchange Contracts	$	2,311	$	(1,038	)
Swap Agreements		442		(250	)
Total	$	2,753	$	(1,288	)

(c) Excludes exchange traded derivatives.

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

The Fund 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 Fund 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 Fund 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 Fund 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 Fund'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, 2017.

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received (000)			Net Amount (not less than $0) (000)
Australia and New Zealand Banking Group	$	152		$	(92	)	$	—		$	60
Bank of America NA		9			—			—			9
Bank of Montreal		—	@		(—	@)		—			0
Bank of New York Mellon		—	@		—			—			—	@
Barclays Bank PLC		233			(26	)		—			207
BNP Paribas SA		217			(14	)		—			203
Citibank NA		637			(253	)		(201	)		183
Commonwealth Bank of Australia		75			—			—			75
Credit Suisse International		51			—			—			51
Goldman Sachs International		116			(1	)		—			115
HSBC Bank PLC		191			(133	)		—			58
JPMorgan Chase Bank NA		934			(291	)		(530	)		113
State Street Bank and Trust Co.		13			(13	)		—			0
UBS AG		125			(125	)		—			0
Total	$	2,753		$	(948	)	$	(731	)	$	1,074
Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)			Net Amount (not less than $0) (000)
Australia and New Zealand Banking Group	$	92		$	(92	)	$	—		$	0
Bank of Montreal		8			(—	@)		—			8
Barclays Bank PLC		31			(26	)		—			5
BNP Paribas SA		23			(14	)		—			9
Citibank NA		456			(253	)		—			203
Goldman Sachs International		1			(1	)		—			0
HSBC Bank PLC		133			(133	)		—			0
JPMorgan Chase Bank NA		291			(291	)		—			0
Northern Trust Company		—	@		—			—			—	@
State Street Bank and Trust Co.		62			(13	)		—			49
UBS AG		191			(125	)		—			66
Total	$	1,288		$	(948	)	$	—		$	340

@ Amount is less than $500.

49

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

For the six months ended March 31, 2017, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	243,441,000
Futures Contracts:
Average monthly original value	$	253,641,000
Swap Agreements:
Average monthly notional amount	$	102,713,000
Options Purchased:
Average monthly notional amount		186,000

5.  When-Issued/Delayed Delivery Securities: The Fund 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 Fund 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 Fund 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 Fund'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 Fund.

6.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown. However, the Trust 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 Fund 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 Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds 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 Fund owns shares of real estate investment trusts ("REITs") which report information on the source of their distributions annually in the following calendar year. A portion of distributions received from REITs during the year is estimated to be a return of capital and is recorded as a reduction of their cost.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.45% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund 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 Fund'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, 2017, approximately $88,000 of advisory fees were waived and approximately $16,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser provides investment advisory services to the Subsidiary pursuant to the Subsidiary Investment Management

50

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

Agreement (the "Agreement"). Under the Agreement, the Subsidiary will pay the Adviser at the end of each fiscal quarter, calculated by applying a quarterly rate, based on the annual rate of 0.05%, to the average daily net assets of the Subsidiary.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund'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 Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust 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 Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

The Trust 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 Fund 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 Fund's average daily net assets attributable to Class L shares.

The Trust 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 Fund 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 Fund'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 Trust'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 Funds of the Trust.

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Trust 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, 2017, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $159,872,000 and $117,667,000, respectively. For the six months ended March 31, 2017, purchases and sales of long-term U.S. Government securities were approximately $38,859,000 and $129,689,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2017, advisory fees paid were reduced by approximately $31,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of the Liquidity Funds during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2017 (000)
$	5,955	$	160,495	$	103,047	$	86	$	63,403

51

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

The Fund 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 Fund 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, 2017, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Emerging Markets Portfolio.

A summary of the Fund's transactions in shares of the Emerging Markets Portfolio during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Realized Loss (000)			Value March 31, 2017 (000)
$	113	$	—	$	114	$	—	$	(18	)	$	—

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2017, the Fund did not engage in any cross-trade transactions.

The Fund 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 Fund.

H. Federal Income Taxes: It is the Fund'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 Fund 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 consolidated financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded that there are no significant uncertain tax positions that would require recognition in the consolidated financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Consolidated Statement of Operations. The Fund 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, 2016, 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 2016 and 2015 was as follows:

2016 Distributions Paid From:				2015 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	425	$	17,981	$	6,726

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, distribution redesignations and tax adjustments on passive foreign investment companies sold by the Fund, resulted in the

52

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

following reclassifications among the components of net assets at September 30, 2016:

Accumulated Undistributed Net Investment Income (000)			Accumulated Net Realized Loss (000)		Paid-in- Capital (000)
$	(3,764	)	$	3,764	$	—

At September 30, 2016, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	2,855	$	—

At September 30, 2016, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $8,160,000 that do not have an expiration date.

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 Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $150,000,000 committed, unsecured revolving line of credit facility (the "facility") with State Street. This facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or one month libor rate plus a spread. The facility also has a commitment fee of 0.25% per annum based on the unused portion of the facility. During the six months ended March 31, 2017, the Fund did not have any borrowings under the facility.

J. Other: At March 31, 2017, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 49.5%.

K. Accounting Pronouncement: In October 2016, the Securities and Exchange Commission ("SEC") issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the Fund's net assets or results of operations.

Although still evaluating the potential impacts of the Investment Company Reporting Modernization to the Fund, management expects that the impact of the Fund's adoption will be limited to additional financial statement disclosures.

53

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited)

MORGAN STANLEY INVESTMENT MANAGEMENT INC.
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

We are required by federal law to provide you with a copy of our privacy policy annually. This policy applies to current and former individual investors in funds managed or sponsored by Morgan Stanley Investment Management Inc. ("MSIM") as well as current and former individual clients of MSIM. This policy is not applicable to partnerships, corporations, trusts or other non-individual clients or investors. Please note that we may amend this policy at any time, and will inform you of any changes as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Notice describes what non-public personal information we collect about you, why 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 to affiliated companies in the Morgan Stanley family of companies ("other Morgan Stanley companies"). It also discloses how you may limit use of certain shared information for marketing purposes by other Morgan Stanley branded companies. Throughout this policy, we refer to the non-public information that personally identifies you or your accounts as "personal information.''

1.  WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?

We obtain personal information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources.

For example:

•  We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through subscription documents, 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.

•  If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies." Please consult the Terms of Use of these sites for more details.

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

We may disclose personal information we collect about you to other Morgan Stanley companies and to non-affiliated third parties.

a. Information We Disclose to Other Morgan Stanley Companies.

We may disclose personal information to other Morgan Stanley companies for a variety of reasons, including to manage your account(s) effectively, to service and process your transactions, to let you know about products and services offered by us and other Morgan Stanley companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from other Morgan Stanley companies are developed under conditions designed to safeguard your personal information.

54

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

b. Information We Disclose to Non-affiliated Third Parties.

We do not disclose personal information that we collect about you to non-affiliated third parties except to those who provide marketing services on our behalf, to financial institutions with whom we have joint marketing agreements, and as otherwise required or permitted by law. For example, we may disclose personal information to nonaffiliated third parties for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with a non-affiliated third party, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information 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 to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information.

4.  HOW CAN YOU LIMIT THE SHARING OF CERTAIN TYPES OF PERSONAL INFORMATION WITH OTHER MORGAN STANLEY COMPANIES?

We offer you choices as to whether we share with other Morgan Stanley companies the personal information that was collected to determine your eligibility for products and services you request ("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 other Morgan Stanley companies ("opt-out"), we may still share personal information, including eligibility information, with those companies in circumstances excluded from the opt-out under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN TYPES OF PERSONAL INFORMATION BY OTHER MORGAN STANLEY COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit other Morgan Stanley branded 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 Other Morgan Stanley Companies from using personal information about you that we may share with them for marketing their products and services to you, Other Morgan Stanley Companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the Other Morgan Stanley Company has its own relationship with you.

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

If you wish to limit our sharing of eligibility information about you with other Morgan Stanley companies or other Morgan Stanley 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

55

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

Your written 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 if 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.

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 have a joint account, your direction for us not to share this information with other Morgan Stanley companies and for those other Morgan Stanley companies not to use your personal information for marketing will be applied to all account holders on that 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 Morgan Stanley products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

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

If, at any time in the future, an affiliated company becomes a non-affiliated 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 non-affiliated 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 non-affiliated 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 affiliated companies and non-affiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with non-affiliated third parties or other Morgan Stanley companies unless you provide us with your written consent to share such information ("opt-in").

If you wish to receive offers for investment products and services offered by or through other Morgan Stanley companies, please notify us in writing at the following address:

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

Your authorization should include your name, address, telephone number and account number(s) to which the opt-in applies and should not be sent with any other correspondence. In order to process your authorization, we require that the authorization be provided by you directly and not through a third party.

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 information with our affiliates to comply with California privacy laws that apply to us.

56

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Trustee and Officer Information (unaudited)

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

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

Perkins Coie LLP
30 Rockefeller Plaza
New York, New York 10112

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, 100 F Street, NE, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust 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 or summary prospectus of the applicable Fund of Morgan Stanley Institutional Fund Trust, which describes in detail the Fund'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 Fund, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

57

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

© 2017 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTGSSAN
1784105 EXP 05.31.18

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund, Inc.

High Yield Portfolio

Semi-Annual Report

March 31, 2017

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

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	16
Notes to Financial Statements	21
Privacy Notice	28
Trustee and Officer Information	31

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund 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 Fund'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 Fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

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 "Fund") 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 2017

2

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Expense Example (unaudited)

High Yield Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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, 2017 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund'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 Fund 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 10/1/16		Actual Ending Account Value 3/31/17		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
High Yield Portfolio Class I	$	1,000.00	$	1,051.00	$	1,021.69	$	3.33	$	3.28		0.65	%
High Yield Portfolio Class A		1,000.00		1,049.20		1,019.95		5.11		5.04		1.00
High Yield Portfolio Class L		1,000.00		1,047.90		1,018.70		6.38		6.29		1.25
High Yield Portfolio Class C		1,000.00		1,045.40		1,016.21		8.92		8.80		1.75
High Yield Portfolio Class IS		1,000.00		1,051.10		1,021.84		3.17		3.13		0.62

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments

High Yield Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.2%)
Corporate Bonds (89.4%)
Basic Materials (4.3%)
American Gilsonite Co. 17.00%, 12/31/21 (a)(b)(c)(d)	$	185	$	192
Chemtura Corp. 5.75%, 7/15/21		375		388
Eco Services Operations LLC/ Eco Finance Corp. 8.50%, 11/1/22 (a)		500		529
Hexion, Inc. 10.00%, 4/15/20		250		251
HudBay Minerals, Inc. 7.25%, 1/15/23 (a)		500		532
IAMGOLD Corp. 7.00%, 4/15/25 (a)		450		447
International Wire Group, Inc. 10.75%, 8/1/21 (a)		750		731
Lundin Mining Corp. 7.50%, 11/1/20 (a)		250		266
MSCI, Inc. 4.75%, 8/1/26 (a)		250		253
Prince Mineral Holding Corp. 11.50%, 12/15/19 (a)		800		816
Signode Industrial Group Lux SA/ Signode Industrial Group US, Inc. 6.38%, 5/1/22 (a)		500		515
Versum Materials, Inc. 5.50%, 9/30/24 (a)		225		233
				5,153
Communications (6.8%)
Bankrate, Inc. 6.13%, 8/15/18 (a)		250		252
Block Communications, Inc. 6.88%, 2/15/25 (a)		400		425
Cable One, Inc. 5.75%, 6/15/22 (a)		350		365
CCO Holdings LLC/ CCO Holdings Capital Corp. 5.75%, 1/15/24		350		365
Columbus Cable Barbados Ltd. 7.38%, 3/30/21 (a)		300		321
CommScope Technologies LLC 5.00%, 3/15/27 (a)		400		401
CSC Holdings LLC 5.25%, 6/1/24		500		499
DISH DBS Corp. 7.75%, 7/1/26		250		291
GCI, Inc. 6.75%, 6/1/21		250		258
Gray Television, Inc. 5.88%, 7/15/26 (a)		550		561
Intelsat Jackson Holdings SA 8.00%, 2/15/24 (a)		500		531
Lamar Media Corp. 5.75%, 2/1/26		300		322
MDC Partners, Inc. 6.50%, 5/1/24 (a)		564		541

	Face Amount (000)		Value (000)
Midcontinent Communications & Midcontinent Finance Corp. 6.88%, 8/15/23 (a)	$	350	$	374
Netflix, Inc. 5.88%, 2/15/25		250		269
Outfront Media Capital LLC/ Outfront Media Capital Corp. 5.63%, 2/15/24		350		367
SFR Group SA 6.00%, 5/15/22 (a)		500		520
Sinclair Television Group, Inc. 5.88%, 3/15/26 (a)		250		257
Sprint Communications, Inc. 6.00%, 11/15/22		500		513
T-Mobile USA, Inc. 5.38%, 4/15/27		375		388
Virgin Media Secured Finance PLC 5.50%, 8/15/26 (a)		250		254
				8,074
Consumer, Cyclical (17.9%)
Air Canada 7.75%, 4/15/21 (a)		500		565
Algeco Scotsman Global Finance PLC 8.50%, 10/15/18 (a)		200		191
American Airlines Group, Inc. 5.50%, 10/1/19 (a)		500		522
American Builders & Contractors Supply Co., Inc. 5.63%, 4/15/21 (a)		140		144
American Greetings Corp. 7.88%, 2/15/25 (a)		400		422
Aramark Services, Inc. 4.75%, 6/1/26		250		252
Aston Martin Capital Holdings, Ltd. 6.50%, 4/15/22 (a)		200		201
AV Homes, Inc. 8.50%, 7/1/19		500		522
Beacon Roofing Supply, Inc. 6.38%, 10/1/23		350		375
Beazer Homes USA, Inc. 8.75%, 3/15/22 (a)		500		549
Carrols Restaurant Group, Inc. 8.00%, 5/1/22		500		536
CCM Merger, Inc. 6.00%, 3/15/22 (a)		500		511
Century Communities, Inc. 6.88%, 5/15/22		500		523
Chester Downs & Marina LLC/ Chester Downs Finance Corp. 9.25%, 2/1/20 (a)		700		719
Churchill Downs, Inc. 5.38%, 12/15/21		300		314
Downstream Development Authority of the Quapaw Tribe of Oklahoma 10.50%, 7/1/19 (a)		717		703
Eagle II Acquisition Co. LLC 6.00%, 4/1/25 (a)		350		362

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (cont'd)
Eldorado Resorts, Inc. 7.00%, 8/1/23	$	400	$	431
EMI Music Publishing Group North America Holdings, Inc. 7.63%, 6/15/24 (a)		550		602
Exide Technologies 8.63%, 2/1/18 (c)(e)(f)		100		—
FelCor Lodging LP 6.00%, 6/1/25		250		263
Gibson Brands, Inc. 8.88%, 8/1/18 (a)		900		810
Global Partners LP/GLP Finance Corp. 6.25%, 7/15/22		750		739
Golden Nugget, Inc. 8.50%, 12/1/21 (a)		350		373
Greektown Holdings LLC/ Greektown Mothership Corp. 8.88%, 3/15/19 (a)		350		368
Guitar Center, Inc. 6.50%, 4/15/19 (a)		500		423
Hanesbrands, Inc. 4.88%, 5/15/26 (a)		250		247
JC Penney Corp., Inc. 8.13%, 10/1/19		250		271
KFC Holding Co/Pizza Hut Holdings LLC/ Taco Bell of America LLC 5.00%, 6/1/24 (a)		250		256
Lions Gate Entertainment Corp. 5.88%, 11/1/24 (a)		400		417
Mattamy Group Corp. 6.88%, 12/15/23 (a)		400		417
Meritor, Inc. 6.25%, 2/15/24		500		515
National CineMedia LLC 5.75%, 8/15/26		300		305
Neiman Marcus Group Ltd., LLC 8.75%, 10/15/21 (a)(b)		350		199
New Home Co., Inc. (The) 7.25%, 4/1/22 (a)		500		506
Oshkosh Corp. 5.38%, 3/1/22		250		260
Party City Holdings, Inc. 6.13%, 8/15/23 (a)		250		254
Playa Resorts Holding BV 8.00%, 8/15/20 (a)		378		399
Rite Aid Corp., 6.13%, 4/1/23 (a)		250		249
6.75%, 6/15/21		500		505
Rivers Pittsburgh Borrower LP/ Rivers Pittsburgh Finance Corp. 6.13%, 8/15/21 (a)		500		510
RSI Home Products, Inc. 6.50%, 3/15/23 (a)		350		362
Sally Holdings LLC/Sally Capital, Inc. 5.63%, 12/1/25		500		502
Silversea Cruise Finance Ltd. 7.25%, 2/1/25 (a)		500		527

	Face Amount (000)		Value (000)
Sonic Automotive, Inc. 5.00%, 5/15/23	$	500	$	488
Speedway Motorsports, Inc. 5.13%, 2/1/23		350		355
Sugarhouse HSP Gaming Prop Mezz LP/ Sugarhouse HSP Gaming Finance Corp. 6.38%, 6/1/21 (a)		594		601
Tempur Sealy International, Inc. 5.50%, 6/15/26		500		494
Tops Holding LLC/Tops Markets II Corp. 8.00%, 6/15/22 (a)		750		619
VistaJet Malta Finance PLC/ VistaJet Co., Finance LLC 7.75%, 6/1/20 (a)		500		405
Wolverine World Wide, Inc. 5.00%, 9/1/26 (a)		250		236
				21,319
Consumer, Non-Cyclical (13.9%)
Acadia Healthcare Co., Inc., 5.13%, 7/1/22		250		254
5.63%, 2/15/23		250		260
ACCO Brands Corp. 5.25%, 12/15/24 (a)		500		504
Ahern Rentals, Inc. 7.38%, 5/15/23 (a)		400		346
Alere, Inc., 6.38%, 7/1/23 (a)		200		204
7.25%, 7/1/18		300		304
APX Group, Inc. 6.38%, 12/1/19		404		418
Beverages & More, Inc. 10.00%, 11/15/18 (a)		739		709
Brand Energy & Infrastructure Services, Inc. 8.50%, 12/1/21 (a)		750		793
Bumble Bee Holdco SCA 9.63%, 3/15/18 (a)(b)		715		696
Bumble Bee Holdings, Inc. 9.00%, 12/15/17 (a)		500		489
Central Garden & Pet Co. 6.13%, 11/15/23		350		371
Cenveo Corp. 6.00%, 8/1/19 (a)		750		622
Chobani LLC/Chobani Finance Corp., Inc. 7.50%, 4/15/25 (a)(g)		525		539
Concordia International Corp. 7.00%, 4/15/23 (a)		250		49
DPx Holdings BV 7.50%, 2/1/22 (a)		100		106
DS Services of America, Inc. 10.00%, 9/1/21 (a)		304		328
Endo Ltd./Endo Finance LLC/ Endo Finco, Inc. 6.00%, 7/15/23 (a)		750		660
Envision Healthcare Corp., 5.63%, 7/15/22		400		412
6.25%, 12/1/24 (a)		250		263

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Non-Cyclical (cont'd)
FAGE International SA/ FAGE USA Dairy Industry, Inc. 5.63%, 8/15/26 (a)	$	250	$	251
Great Lakes Dredge & Dock Corp. 7.38%, 2/1/19		500		498
HCA, Inc. 5.25%, 6/15/26		250		264
Jaguar Holding Co. II/ Pharmaceutical Product Development LLC 6.38%, 8/1/23 (a)		500		522
Lamb Weston Holdings, Inc. 4.88%, 11/1/26 (a)		300		307
Live Nation Entertainment, Inc. 4.88%, 11/1/24 (a)		350		351
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC 5.50%, 4/15/25 (a)		500		463
MPH Acquisition Holdings LLC 7.13%, 6/1/24 (a)		150		162
Pinnacle Foods Finance LLC/ Pinnacle Foods Finance Corp. 5.88%, 1/15/24		450		471
Pinnacle Operating Corp. 9.00%, 11/15/20 (a)		400		309
Quintiles IMS, Inc. 4.88%, 5/15/23 (a)		300		306
Ritchie Bros Auctioneers, Inc. 5.38%, 1/15/25 (a)		375		384
Service Corp. International 5.38%, 1/15/22		250		259
Spectrum Brands, Inc. 5.75%, 7/15/25		250		266
Team Health Holdings, Inc. 6.38%, 2/1/25 (a)		250		246
Teleflex, Inc. 4.88%, 6/1/26		200		202
Tenet Healthcare Corp. 4.63%, 6/15/20 (h)		525		530
TMS International Corp. 7.63%, 10/15/21 (a)		975		987
TreeHouse Foods, Inc. 6.00%, 2/15/24 (a)		250		263
United Rentals North America, Inc. 5.75%, 11/15/24		350		366
Valeant Pharmaceuticals International, Inc., 5.88%, 5/15/23 (a)		250		195
6.13%, 4/15/25 (a)		250		193
Wells Enterprises, Inc. 6.75%, 2/1/20 (a)		350		361
				16,483
Diversified (0.8%)
Horizon Pharma, Inc. 6.63%, 5/1/23		450		443
PetSmart, Inc. 7.13%, 3/15/23 (a)		500		477
				920

	Face Amount (000)		Value (000)
Energy (14.4%)
Alta Mesa Holdings LP/ Alta Mesa Finance Services Corp. 7.88%, 12/15/24 (a)	$	500	$	524
American Midstream Partners LP/ American Midstream Finance Corp. 8.50%, 12/15/21 (a)		500		512
Blue Racer Midstream LLC/ Blue Racer Finance Corp. 6.13%, 11/15/22 (a)		500		509
Callon Petroleum Co. 6.13%, 10/1/24 (a)		400		418
Carrizo Oil & Gas, Inc. 6.25%, 4/15/23		800		806
Continental Resources, Inc. 5.00%, 9/15/22		500		507
Crestwood Midstream Partners LP/ Crestwood Midstream Finance Corp. 6.25%, 4/1/23		250		261
Denbury Resources, Inc. 5.50%, 5/1/22		1,000		785
Endeavor Energy Resources LP/ EER Finance, Inc., 7.00%, 8/15/21 (a)		250		262
8.13%, 9/15/23 (a)		500		534
Ensco PLC 4.50%, 10/1/24		750		636
Halcon Resources Corp. 6.75%, 2/15/25 (a)		250		247
Hilcorp Energy I LP/Hilcorp Finance Co., 5.00%, 12/1/24 (a)		500		471
5.75%, 10/1/25 (a)		250		243
Holly Energy Partners LP/ Holly Energy Finance Corp. 6.00%, 8/1/24 (a)		200		211
Laredo Petroleum, Inc., 5.63%, 1/15/22		250		251
6.25%, 3/15/23		450		459
Lonestar Resources America, Inc. 8.75%, 4/15/19 (a)		800		680
Matador Resources Co., 6.88%, 4/15/23		225		236
6.88%, 4/15/23 (a)		75		79
Murphy Oil Corp. 6.88%, 8/15/24		400		425
Newfield Exploration Co. 5.38%, 1/1/26		500		525
Northern Oil and Gas, Inc. 8.00%, 6/1/20		750		656
Northern Tier Energy LLC/ Northern Tier Finance Corp. 7.13%, 11/15/20		300		313
Pacific Drilling V Ltd. 7.25%, 12/1/17 (a)		600		330
Parsley Energy LLC/Parsley Finance Corp. 5.38%, 1/15/25 (a)		500		509
PDC Energy, Inc. 6.13%, 9/15/24 (a)		500		515

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Energy (cont'd)
Peabody Securities Finance Corp. 6.38%, 3/31/25 (a)	$	500	$	499
Rice Energy, Inc. 6.25%, 5/1/22		550		569
Rose Rock Midstream LP/ Rose Rock Finance Corp. 5.63%, 11/15/23		600		591
RSP Permian, Inc., 5.25%, 1/15/25 (a)		250		253
6.63%, 10/1/22		500		529
Seven Generations Energy Ltd. 8.25%, 5/15/20 (a)		350		367
SM Energy Co., 5.00%, 1/15/24		620		589
6.75%, 9/15/26		255		258
Tallgrass Energy Partners LP/ Tallgrass Energy Finance Corp. 5.50%, 9/15/24 (a)		250		253
Tesoro Logistics LP/ Tesoro Logistics Finance Corp. 6.38%, 5/1/24		350		381
Vermilion Energy, Inc. 5.63%, 3/15/25 (a)		500		497
Whiting Petroleum Corp. 5.75%, 3/15/21		500		497
				17,187
Finance (8.7%)
Baytex Energy Corp. 5.63%, 6/1/24 (a)		750		664
CNO Financial Group, Inc. 4.50%, 5/30/20		250		259
Compiler Finance Sub, Inc. 7.00%, 5/1/21 (a)		500		253
CTR Partnership LP/ CareTrust Capital Corp. 5.88%, 6/1/21		500		515
DuPont Fabros Technology LP 5.63%, 6/15/23		350		365
Equinix, Inc. 5.38%, 5/15/27		200		207
HUB International Ltd. 7.88%, 10/1/21 (a)		500		522
Icahn Enterprises LP/ Icahn Enterprises Finance Corp. 6.75%, 2/1/24 (a)		550		569
Infinity Acquisition LLC/ Infinity Acquisition Finance Corp. 7.25%, 8/1/22 (a)		250		230
Interface Security Systems Holdings, Inc./ Interface Security Systems LLC 9.25%, 1/15/18		500		502
Iron Mountain, Inc. 6.00%, 10/1/20 (a)		250		263
iStar, Inc. 6.50%, 7/1/21		500		515
Jack Ohio Finance LLC/ Jack Ohio Finance 1 Corp. 10.25%, 11/15/22 (a)		750		806

	Face Amount (000)		Value (000)
Jefferies Finance LLC/JFIN Co-Issuer Corp. 6.88%, 4/15/22 (a)	$	650	$	624
KCG Holdings, Inc. 6.88%, 3/15/20 (a)		750		772
Kennedy-Wilson, Inc. 5.88%, 4/1/24		250		257
MGIC Investment Corp. 5.75%, 8/15/23		400		423
MPT Operating Partnership LP/ MPT Finance Corp. 6.38%, 3/1/24		250		270
NewStar Financial, Inc. 7.25%, 5/1/20		400		409
Post Holdings, Inc. 5.00%, 8/15/26 (a)		200		192
Provident Funding Associates LP/ PFG Finance Corp. 6.75%, 6/15/21 (a)		500		512
Radian Group, Inc. 7.00%, 3/15/21		375		416
Sabra Health Care LP/Sabra Capital Corp. 5.50%, 2/1/21		350		361
Starwood Property Trust, Inc. 5.00%, 12/15/21 (a)		250		260
Valvoline, Inc. 5.50%, 7/15/24 (a)		200		211
				10,377
Industrials (18.5%)
Apex Tool Group LLC 7.00%, 2/1/21 (a)		500		455
ARD Finance SA 7.13%, 9/15/23 (a)(b)		600		619
Artesyn Embedded Technologies, Inc. 9.75%, 10/15/20 (a)		753		740
Belden, Inc. 5.25%, 7/15/24 (a)		500		501
BlueLine Rental Finance Corp./ BlueLine Rental LLC 9.25%, 3/15/24 (a)		500		513
Builders FirstSource, Inc. 5.63%, 9/1/24 (a)		250		255
BWAY Holding Co. 7.25%, 4/15/25 (a)(g)		200		201
CEVA Group PLC 4.00%, 5/1/18 (a)		750		727
Cleaver-Brooks, Inc. 8.75%, 12/15/19 (a)		750		773
Consolidated Container Co., LLC/ Consolidated Container Capital, Inc. 10.13%, 7/15/20 (a)		600		621
Coveris Holdings SA 7.88%, 11/1/19 (a)		450		446
CPG Merger Sub LLC 8.00%, 10/1/21 (a)		750		789
CTP Transportation Products LLC/ CTP Finance, Inc. 8.25%, 12/15/19 (a)		750		664

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Dollar Tree, Inc. 5.75%, 3/1/23	$	350	$	375
Eagle Materials, Inc. 4.50%, 8/1/26		250		250
Emeco Pty Ltd. 9.88%, 3/15/19 (a)		200		181
EnPro Industries, Inc., 5.88%, 9/15/22		352		366
5.88%, 9/15/22 (a)		200		208
Flex Acquisition Co., Inc. 6.88%, 1/15/25 (a)		250		256
Flexi-Van Leasing, Inc. 7.88%, 8/15/18 (a)		550		501
GCP Applied Technologies, Inc. 9.50%, 2/1/23 (a)		500		569
Gibraltar Industries, Inc. 6.25%, 2/1/21		361		372
Grinding Media, Inc./ MC Grinding Media Canada, Inc. 7.38%, 12/15/23 (a)		600		631
Iracore International Holdings, Inc. 9.50%, 6/1/18 (a)(c)(e)		400		202
JB Poindexter & Co., Inc. 9.00%, 4/1/22 (a)		350		368
Kemet Corp. 10.50%, 5/1/18		450		452
Koppers, Inc. 6.00%, 2/15/25 (a)		500		517
Kratos Defense & Security Solutions, Inc. 7.00%, 5/15/19		500		503
LMI Aerospace, Inc. 7.38%, 7/15/19		500		521
Martin Midstream Partners LP/ Martin Midstream Finance Corp. 7.25%, 2/15/21		500		508
MasTec, Inc. 4.88%, 3/15/23		500		496
Michael Baker Holdings LLC/ Michael Baker Finance Corp. 8.88%, 4/15/19 (a)(b)		534		526
Michael Baker International LLC/ CDL Acquisition Co., Inc. 8.25%, 10/15/18 (a)		350		354
Novelis Corp. 5.88%, 9/30/26 (a)		225		230
OPE KAG Finance Sub, Inc. 7.88%, 7/31/23 (a)		500		514
Park Aerospace Holdings Ltd. 5.25%, 8/15/22 (a)		250		261
Plastipak Holdings, Inc. 6.50%, 10/1/21 (a)		350		361
SAExploration Holdings, Inc. 10.00%, 4/14/19 (a)(b)		953		767
SBA Communications Corp. 4.88%, 9/1/24 (a)		300		297
Select Medical Corp. 6.38%, 6/1/21		350		355

	Face Amount (000)		Value (000)
Standard Industries, Inc. 5.00%, 2/15/27 (a)	$	500	$	491
Summit Materials LLC/ Summit Materials Finance Corp. 6.13%, 7/15/23		500		513
Syncreon Group BV/ Syncreon Global Finance US, Inc. 8.63%, 11/1/21 (a)		450		331
Techniplas LLC 10.00%, 5/1/20 (a)		585		563
US Concrete, Inc., 6.38%, 6/1/24		400		416
6.38%, 6/1/24 (a)		350		364
XPO Logistics, Inc. 6.13%, 9/1/23 (a)		350		365
Zachry Holdings, Inc. 7.50%, 2/1/20 (a)		750		776
				22,064
Technology (3.4%)
BCP Singapore VI Cayman Financing Co., Ltd. 8.00%, 4/15/21 (a)		450		455
Boxer Parent Co., Inc. 9.00%, 10/15/19 (a)(b)		500		501
Change Healthcare Holdings LLC/ Change Healthcare Finance, Inc. 5.75%, 3/1/25 (a)		200		206
DynCorp International, Inc. 11.88%, 11/30/20 (b)		753		723
First Data Corp. 7.00%, 12/1/23 (a)		350		376
Harland Clarke Holdings Corp. 6.88%, 3/1/20 (a)		700		712
RP Crown Parent LLC 7.38%, 10/15/24 (a)		500		523
Western Digital Corp. 7.38%, 4/1/23 (a)		500		549
				4,045
Utilities (0.7%)
DPL, Inc. 6.75%, 10/1/19		250		264
LBC Tank Terminals Holding Netherlands BV 6.88%, 5/15/23 (a)		500		521
				785
				106,407
Sovereign (0.7%)
Government (0.7%)
Shape Technologies Group, Inc. 7.63%, 2/1/20 (a)		770		793
Variable Rate Senior Loan Interests (8.1%)
Consumer, Cyclical (2.5%)
BJ's Wholesale Club, Inc., 2nd Lien Term 8.50%, 1/26/25		1,000		979

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (cont'd)
Commercial Vehicle Group, Inc., Term Loan B 1.00%, 3/15/24 (i)	$	650	$	637
Neiman Marcus Group, Inc., Term Loan 4.25%, 10/25/20		497		401
Sesac Holdco II, LLC, 2nd Lien Term 8.30%, 2/10/25		1,000		1,004
				3,021
Energy (0.8%)
Gavilan Resources, LLC, 2nd Lien Term 7.00%, 2/24/24		1,000		992
Industrials (3.7%)
American Bath Group LLC, Term Loan 6.40%, 9/30/23 (d)		903		912
6.40%, 9/30/23		94		95
Associated Asphalt Partners, Term Loan B 6.40%, 3/21/24		1,000		1,007
Commercial Barge Line Co., 1st Lien Term 9.75%, 11/6/20		475		441
Coveris Holdings SA, Term B 4.65%, 5/8/19		298		298
Gruden Acquisition, Inc., 1st Lien Term 5.90%, 7/20/22		494		481
Harsco Corp., Term B 6.00%, 10/21/23		399		405
SAExploration Holdings, Inc., Term Loan 10.00%, 6/28/23		750		743
				4,382
Technology (1.1%)
Solera, LLC, Term B 4.25%, 3/3/23		748		753
Xerox Business Services LLC, Term B 6.33%, 11/18/23		499		505
				1,258
				9,653
Total Fixed Income Securities (Cost $115,195)				116,853
	Shares
Common Stocks (0.2%)
Auto Components (0.0%)
Exide Technologies (d)(j)(k) (acquisition cost — $—; acquired 6/1/15)		592		1

	Shares		Value (000)
Mining (0.1%)
American Gilsonite Co. (d)(j)(k) (acquisition cost — $—; acquired 3/30/17)		500	$	178
Semiconductors & Semiconductor Equipment (0.1%)
UC Holdings, Inc. (d)(j)		2,826		74
Total Common Stocks (Cost $71)				253
Participation Note (0.0%)
Semiconductors & Semiconductor Equipment (0.0%)
UC Holdings, Inc., Equity Linked Notes, expires 9/23/20 (d)(j) (Cost $—)		2,802		17
Short-Term Investment (1.2%)
Investment Company (1.2%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $1,462)		1,461,937		1,462
Total Investments (99.6%) (Cost $116,728) (l)				118,585
Other Assets in Excess of Liabilities (0.4%)				463
Net Assets (100.0%)			$	119,048

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

(b)  Payment-in-kind security.

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

(d)  Security has been deemed illiquid at March 31, 2017.

(e)  Issuer in bankruptcy.

(f)  At March 31, 2017, the Fund held a fair valued security valued at $0, representing 0.00% 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 Trust's Trustees.

(g)  When-issued security.

(h)  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, 2017.

(i)  Unsettled Position. The contract rate does not take effect until settlement date.

(j)  Non-income producing security.

(k)  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 Fund 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, 2017, amounts to approximately $179,000 and represents 0.2% of net assets.

(l)  At March 31, 2017, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $4,261,000 and the aggregate gross unrealized depreciation is approximately $2,404,000 resulting in net unrealized appreciation of approximately $1,857,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		22.3	%
Consumer, Cyclical		20.5
Energy		15.3
Consumer, Non-Cyclical		13.9
Other*		12.4
Finance		8.8
Communications		6.8
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.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017 (unaudited)

High Yield Portfolio

Statement of Assets and Liabilities	March 31, 2017 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $115,266)	$	117,123
Investment in Security of Affiliated Issuer, at Value (Cost $1,462)		1,462
Total Investments in Securities, at Value (Cost $116,728)		118,585
Cash		31
Interest Receivable		2,054
Receivable for Investments Sold		1,073
Receivable for Fund Shares Sold		40
Receivable from Affiliate		—	@
Other Assets		95
Total Assets		121,878
Liabilities:
Payable for Investments Purchased		2,632
Payable for Advisory Fees		85
Payable for Professional Fees		37
Payable for Shareholder Services Fees — Class A		13
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		3
Payable for Fund Shares Redeemed		13
Payable for Sub Transfer Agency Fees — Class I		3
Payable for Sub Transfer Agency Fees — Class A		5
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Administration Fees		8
Payable for Transfer Agency Fees — Class I		3
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class IS		1
Payable for Custodian Fees		4
Other Liabilities		20
Total Liabilities		2,830
Net Assets	$	119,048
Net Assets Consist of:
Paid-in-Capital	$	118,003
Accumulated Undistributed Net Investment Income		788
Accumulated Net Realized Loss		(1,600	)
Unrealized Appreciation (Depreciation) on:
Investments		1,857
Net Assets	$	119,048

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017 (unaudited)

High Yield Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2017 (000)
CLASS I:
Net Assets	$	54,265
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		5,394,662
Net Asset Value, Offering and Redemption Price Per Share	$	10.06
CLASS A:
Net Assets	$	60,447
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		6,018,436
Net Asset Value, Redemption Price Per Share	$	10.04
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.45
Maximum Offering Price Per Share	$	10.49
CLASS L:
Net Assets	$	533
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		53,076
Net Asset Value, Offering and Redemption Price Per Share	$	10.04
CLASS C:
Net Assets	$	3,248
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		323,719
Net Asset Value, Offering and Redemption Price Per Share	$	10.03
CLASS IS:
Net Assets	$	555
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		55,214
Net Asset Value, Offering and Redemption Price Per Share	$	10.06

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017 (unaudited)

High Yield Portfolio

Statement of Operations	Six Months Ended March 31, 2017 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	4,640
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		4,641
Expenses:
Advisory Fees (Note B)		363
Shareholder Services Fees — Class A (Note D)		75
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		15
Sub Transfer Agency Fees — Class I		21
Sub Transfer Agency Fees — Class A		40
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		1
Professional Fees		53
Administration Fees (Note C)		48
Registration Fees		22
Pricing Fees		16
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Shareholder Reporting Fees		8
Custodian Fees (Note F)		2
Trustees' Fees and Expenses		3
Other Expenses		7
Expenses Before Non Operating Expenses		684
Bank Overdraft Expense		10
Total Expenses		694
Waiver of Advisory Fees (Note B)		(148	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(17	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(3	)
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)		(—	@)
Net Expenses		524
Net Investment Income		4,117
Realized Gain:
Investments Sold		987
Change in Unrealized Appreciation (Depreciation):
Investments		723
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		1,710
Net Increase in Net Assets Resulting from Operations	$	5,827

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

High Yield Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	4,117		$	6,893
Net Realized Gain (Loss)		987			(1,143	)
Net Change in Unrealized Appreciation (Depreciation)		723			5,881
Net Increase in Net Assets Resulting from Operations		5,827			11,631
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1,830	)		(2,238	)
Class A:
Net Investment Income		(2,035	)		(3,747	)
Class L:
Net Investment Income		(20	)		(47	)
Class C:
Net Investment Income		(89	)		(123	)
Class IS:
Net Investment Income		(273	)		(464	)
Total Distributions		(4,247	)		(6,619	)
Capital Share Transactions:(1)
Class I:
Subscribed		10,290			41,355
Distributions Reinvested		1,831			2,236
Redeemed		(8,535	)		(9,900	)
Class A:
Subscribed		7,954			20,138
Distributions Reinvested		2,024			3,727
Redeemed		(9,501	)		(21,559	)
Class L:
Exchanged		—			99
Distributions Reinvested		19			47
Redeemed		(121	)		(624	)
Class C:
Subscribed		477			2,155
Distributions Reinvested		86			121
Redeemed		(263	)		(752	)
Class IS:
Subscribed		3,090			13,688
Redeemed		(16,337	)		(1,580	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(8,986	)		49,151
Total Increase (Decrease) in Net Assets		(7,406	)		54,163
Net Assets:
Beginning of Period		126,454			72,291
End of Period (Including Accumulated Undistributed Net Investment Income of $788 and $918)	$	119,048		$	126,454
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		1,032			4,503
Shares Issued on Distributions Reinvested		184			237
Shares Redeemed		(861	)		(1,053	)
Net Increase in Class I Shares Outstanding		355			3,687
Class A:
Shares Subscribed		799			2,115
Shares Issued on Distributions Reinvested		204			395
Shares Redeemed		(956	)		(2,267	)
Net Increase in Class A Shares Outstanding		47			243

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

High Yield Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016 (000)
Class L:
Shares Exchanged		—			10
Shares Issued on Distributions Reinvested		2			5
Shares Redeemed		(12	)		(65	)
Net Decrease in Class L Shares Outstanding		(10	)		(50	)
Class C:
Shares Subscribed		48			228
Shares Issued on Distributions Reinvested		9			13
Shares Redeemed		(27	)		(81	)
Net Increase in Class C Shares Outstanding		30			160
Class IS:
Shares Subscribed		310			1,500
Shares Redeemed		(1,645	)		(169	)
Net Increase (Decrease) in Class IS Shares Outstanding		(1,335	)		1,331

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Financial Highlights

High Yield Portfolio

	Class I
	Six Months Ended March 31, 2017			Year Ended September 30,												Period from February 7, 2012(2) to
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	9.92		$	9.80		$	10.73		$	11.00		$	10.71		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.35			0.67			0.71			0.75			0.81			0.50
Net Realized and Unrealized Gain (Loss)		0.15			0.13			(0.92	)		0.25			0.55			0.59
Total from Investment Operations		0.50			0.80			(0.21	)		1.00			1.36			1.09
Distributions from and/or in Excess of:
Net Investment Income		(0.36	)		(0.68	)		(0.66	)		(0.77	)		(0.81	)		(0.38	)
Net Realized Gain		—			—			(0.06	)		(0.50	)		(0.26	)		—
Total Distributions		(0.36	)		(0.68	)		(0.72	)		(1.27	)		(1.07	)		(0.38	)
Net Asset Value, End of Period	$	10.06		$	9.92		$	9.80		$	10.73		$	11.00		$	10.71
Total Return (4)		5.10	%(8)		8.72	%		(2.10	)%		9.48	%		13.38	%		11.07	%(8)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	54,265		$	49,990		$	13,255		$	13,300		$	12,678		$	10,975
Ratio of Expenses to Average Net Assets (10)		0.67	%(5)(9)		0.66	%(5)(6)		0.74	%(5)		0.75	%(5)		0.75	%(5)		0.74	%(5)(9)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		0.65	%(5)(9)		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets (10)		7.01	%(5)(9)		7.09	%(5)(6)		6.88	%(5)		6.89	%(5)		7.42	%(5)		7.53	%(5)(9)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(7)(9)		0.00	%(7)		0.00	%(7)		0.00	%(7)		0.00	%(7)		0.01	%(9)
Portfolio Turnover Rate		37	%(8)		74	%		62	%		96	%		227	%		192	%(8)
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.98	%(9)		1.02	%		1.17	%		1.85	%		3.16	%		3.17	%(9)
Net Investment Income to Average Net Assets		6.70	%(9)		6.73	%		6.45	%		5.79	%		5.01	%		5.10	%(9)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Operations.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  Effective January 4, 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 4, 2016, the maximum ratio was 0.75% for Class I shares.

(7)  Amount is less than 0.005%.

(8)  Not annualized.

(9)  Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Financial Highlights

High Yield Portfolio

	Class A
	Six Months Ended March 31, 2017			Year Ended September 30,												Period from February 7, 2012(2) to
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	9.90		$	9.78		$	10.72		$	10.99		$	10.71		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.33			0.64			0.66			0.65			0.77			0.48
Net Realized and Unrealized Gain (Loss)		0.15			0.12			(0.92	)		0.31			0.55			0.59
Total from Investment Operations		0.48			0.76			(0.26	)		0.96			1.32			1.07
Distributions from and/or in Excess of:
Net Investment Income		(0.34	)		(0.64	)		(0.62	)		(0.73	)		(0.78	)		(0.36	)
Net Realized Gain		—			—			(0.06	)		(0.50	)		(0.26	)		—
Total Distributions		(0.34	)		(0.64	)		(0.68	)		(1.23	)		(1.04	)		(0.36	)
Net Asset Value, End of Period	$	10.04		$	9.90		$	9.78		$	10.72		$	10.99		$	10.71
Total Return (4)		4.92	%(9)		8.24	%		(2.43	)%		9.15	%		13.01	%		10.92	%(9)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	60,447		$	59,139		$	56,042		$	40,157		$	1,092		$	107
Ratio of Expenses to Average Net Assets (11)		1.02	%(5)(10)		1.02	%(5)(7)		1.10	%(5)		1.02	%(5)		1.01	%(5)(6)		0.99	%(5)(10)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.00	%(5)(10)		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets (11)		6.66	%(5)(10)		6.76	%(5)(7)		6.49	%(5)		5.99	%(5)		7.04	%(5)(6)		7.28	%(5)(10)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(8)(10)		0.00	%(8)		0.00	%(8)		0.01	%		0.00	%(8)		0.01	%(10)
Portfolio Turnover Rate		37	%(9)		74	%		62	%		96	%		227	%		192	%(9)
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.27	%(10)		1.33	%		1.53	%		2.06	%		4.22	%		3.42	%(10)
Net Investment Income to Average Net Assets		6.41	%(10)		6.45	%		6.06	%		4.95	%		3.83	%		4.85	%(10)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Operations.

(3)  Per share amount is based on average shares outstanding.

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

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  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.

(7)  Effective January 4, 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 4, 2016, the maximum ratio was 1.10% for Class A shares.

(8)  Amount is less than 0.005%.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Financial Highlights

High Yield Portfolio

	Class L
	Six Months Ended March 31, 2017			Year Ended September 30,												Period from February 7, 2012(2) to
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	9.91		$	9.78		$	10.72		$	10.99		$	10.70		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.32			0.62			0.64			0.67			0.75			0.46
Net Realized and Unrealized Gain (Loss)		0.14			0.13			(0.93	)		0.27			0.56			0.59
Total from Investment Operations		0.46			0.75			(0.29	)		0.94			1.31			1.05
Distributions from and/or in Excess of:
Net Investment Income		(0.33	)		(0.62	)		(0.59	)		(0.71	)		(0.76	)		(0.35	)
Net Realized Gain		—			—			(0.06	)		(0.50	)		(0.26	)		—
Total Distributions		(0.33	)		(0.62	)		(0.65	)		(1.21	)		(1.02	)		(0.35	)
Net Asset Value, End of Period	$	10.04		$	9.91		$	9.78		$	10.72		$	10.99		$	10.70
Total Return (4)		4.79	%(9)		7.95	%		(2.70	)%		8.88	%		12.82	%		10.66	%(9)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	533		$	628		$	1,111		$	1,519		$	326		$	107
Ratio of Expenses to Average Net Assets (11)		1.27	%(5)(10)		1.28	%(5)(7)		1.35	%(5)		1.35	%(5)		1.26	%(5)(6)		1.24	%(5)(10)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.25	%(5)(10)		N/A			N/A			N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets (11)		6.40	%(5)(10)		6.51	%(5)(7)		6.25	%(5)		6.14	%(5)		6.90	%(5)(6)		7.03	%(5)(10)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(8)(10)		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.01	%(10)
Portfolio Turnover Rate		37	%(9)		74	%		62	%		96	%		227	%		192	%(9)
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.78	%(10)		1.83	%		1.84	%		2.52	%		4.11	%		3.67	%(10)
Net Investment Income to Average Net Assets		5.89	%(10)		5.96	%		5.76	%		4.97	%		4.05	%		4.60	%(10)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Operations.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  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.

(7)  Effective January 4, 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 4, 2016, the maximum ratio was 1.35% for Class L shares.

(8)  Amount is less than 0.005%.

(9)  Not Annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Financial Highlights

High Yield Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30,2016(1)			Period from April 30, 2015(2) to September 30, 2015
Net Asset Value, Beginning of Period	$	9.89		$	9.78		$	10.39
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.29			0.57			0.24
Net Realized and Unrealized Gain(Loss)		0.15			0.12			(0.62	)
Total from Investment Operations		0.44			0.69			(0.38	)
Distributions from and/or in Excess of:
Net Investment Income		(0.30	)		(0.58	)		(0.23	)
Net Asset Value, End of Period	$	10.03		$	9.89		$	9.78
Total Return (4)		4.54	%(8)		7.47	%		(3.75	)%(8)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,248		$	2,908		$	1,309
Ratio of Expenses to Average Net Assets (10)		1.77	%(5)(9)		1.77	%(5)(6)		1.84	%(5)(9)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.75	%(5)(9)		N/A			N/A
Ratio of Net Investment Income to Average Net Assets (10)		5.91	%(5)(9)		6.00	%(5)(6)		5.60	%(5)(9)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(7)(9)		0.00	%(7)		0.00	%(7)(9)
Portfolio Turnover Rate		37	%(8)		74	%		62	%(8)
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		2.02	%(9)		2.12	%		2.15	%(9)
Net Investment Income to Average Net Assets		5.66	%(9)		5.65	%		5.29	%(9)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

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

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  Effective January 4, 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 4, 2016, the maximum ratio was 1.85% for Class C shares.

(7)  Amount is less than 0.005%.

(8)  Not annualized.

(9)  Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Financial Highlights

High Yield Portfolio

	Class IS
	Six Months Ended March 31, 2017			Year Ended September 30,						Period from March 28, 2014(2) to
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			September 30, 2014
Net Asset Value, Beginning of Period	$	9.92		$	9.79		$	10.74		$	10.98
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.34			0.67			0.69			0.37
Net Realized and Unrealized Gain (Loss)		0.16			0.14			(0.92	)		(0.27	)
Total from Investment Operations		0.50			0.81			(0.23	)		0.10
Distributions from and/or in Excess of:
Net Investment Income		(0.36	)		(0.68	)		(0.66	)		(0.34	)
Net Realized Gain		—			—			(0.06	)		—
Total Distributions		(0.36	)		(0.68	)		(0.72	)		(0.34	)
Net Asset Value, End of Period	$	10.06		$	9.92		$	9.79		$	10.74
Total Return (4)		5.11	%(8)		8.75	%		(2.17	)%		0.89	%(8)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	555		$	13,789		$	574		$	10
Ratio of Expenses to Average Net Assets (10)		0.62	%(5)(9)		0.62	%(5)(6)		0.72	%(5)		0.72	%(5)(9)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		0.62	%(5)(9)		N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets (10)		6.91	%(5)(9)		7.05	%(5)(6)		6.75	%(5)		6.66	%(5)(9)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(7)(9)		0.00	%(7)		0.00	%(7)		0.00	%(7)(9)
Portfolio Turnover Rate		37	%(8)		74	%		62	%		96	%(8)
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.89	%(9)		0.93	%		1.57	%		15.70	%(9)
Net Investment Income (Loss) to Average Net Assets		6.64	%(9)		6.74	%		5.90	%		(8.32	)%(9)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  Effective January 4, 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 4, 2016, the maximum ratio was 0.72% for Class IS shares.

(7)  Amount is less than 0.005%.

(8)  Not annualized.

(9)  Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Trust is comprised of nine separate, active funds (individually referred to as a "Fund", collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

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

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

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 Trust 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/vendor approved by the Trust's Board of Trustees (the" Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads, and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are

available on the relevant exchanges; (3) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) certain senior collateralized loans ("Senior Loans") are valued based on quotations received from an independent pricing service; (5) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; and (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.

21

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

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

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

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

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards CodificationTM ("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.

22

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

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

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2017.

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	$	—	$	106,407	$	—	†	$	106,407	†
Sovereign		—		793		—			793
Variable Rate Senior Loan Interests		—		9,653		—			9,653
Total Fixed Income Securities		—		116,853		—	†		116,853	†
Common Stocks
Auto Components		—		1		—			1
Metals & Mining		—		178		—			178
Semiconductors & Semiconductor Equipment		—		74		—			74
Total Common Stocks		—		253		—			253
Participation Note		—		17		—			17
Short-Term Investment
Investment Company		1,462		—		—			1,462
Total Assets	$	1,462	$	117,123	$	—	†	$	118,585	†

†  Includes one security which is valued at zero.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of March 31, 2017, securities with a total value of approximately $1,000 transferred from Level 1 to Level 2. Securities that were valued using unadjusted quoted prices at September 30, 2016 were valued using other significant observable inputs at March 31, 2017. As of March 31, 2017, securities with a total value of approximately $17,000 transferred from Level 3 to Level 2. Securities that were valued using significant unobservable inputs at September 30, 2016 were valued using other significant observable inputs at March 31, 2017.

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

	Corporate Bond (000)			Participation Note (000)
Beginning Balance	$	—	†	$	—	†
Purchases		—			—
Sales		—			—
Amortization of discount		—			—
Transfers in		—			—

	Corporate Bond (000)			Participation Note (000)
Transfers out	$	—		$	(17	)
Corporate actions		—			—
Change in unrealized appreciation (depreciation)		—			17
Realized gains (losses)		—			—
Ending Balance	$	—	†	$	—
Net change in unrealized appreciation (depreciation) from investments still held as of March 31, 2017	$	—		$	17

†  Includes one security which is valued at zero.

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

4.  Structured Investments: The Fund 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 Fund 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 Fund 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 Fund's illiquidity to the extent that the Fund, at a particular time, may be unable to find qualified buyers for these securities.

23

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

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

5.  When-Issued/Delayed Delivery Securities: The Fund 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 Fund 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 Fund 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 Fund'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 Fund.

6.  Restricted Securities: The Fund 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 Fund 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 Fund, 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 Fund can 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 the acquirer of the securities. The Fund would, in either case, bear market risks during that period. Restricted securities are identified in the Portfolio of Investments.

7.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown. However, the Trust 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 monthly. 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 Fund 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 Fund accrues the commitment fee over the expected term of the loan. When the Fund sells an 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 Fund 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 Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds 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 Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.60% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), 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

24

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

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

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 Fund'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, 2017, approximately $148,000 of advisory fees were waived and approximately $22,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund'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 Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust 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 Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

The Trust 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 Fund 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 Fund's average daily net assets attributable to Class L shares.

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

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Trust 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, 2017, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $45,096,000 and $56,416,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2017.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2017, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of the Liquidity Funds during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2017 (000)
$	399	$	17,693	$	16,630	$	1	$	1,462

25

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

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

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2017, the Fund did not engage in any cross-trade transactions.

The Fund 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 Fund.

H. Federal Income Taxes: It is the Fund'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 Fund 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 Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund 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, 2016, 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 2016 and 2015 was as follows:

2016 Distributions Paid From:				2015 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	6,619	$	—	$	3,836	$	94

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

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

Permanent differences, primarily due to basis adjustments for swap transactions, paydown adjustments and adjustments on bonds sold, resulted in the following reclassifications among the components of net assets at September 30, 2016:

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

At September 30, 2016, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	1,007	$	—

At September 30, 2016, the Fund had available for federal income tax purposes unused short term and long term capital losses of approximately $204,000 and $2,214,000, respectively, that do not have an expiration date.

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 Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $150,000,000 committed, unsecured

26

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

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

revolving line of credit facility (the "facility") with State Street. This facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or one month libor rate plus a spread. The facility also has a commitment fee of 0.25% per annum based on the unused portion of the facility. During the six months ended March 31, 2017, the Fund did not have any borrowings under the facility.

J. Other: At March 31, 2017, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 77.3%.

K. Accounting Pronouncement: In October 2016, the Securities and Exchange Commission ("SEC") issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the Fund's net assets or results of operations. Although still evaluating the potential impacts of the Investment Company Reporting Modernization to the Fund, management expects that the impact of the Fund's adoption will be limited to additional financial statement disclosures.

27

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited)

MORGAN STANLEY INVESTMENT MANAGEMENT INC.
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

We are required by federal law to provide you with a copy of our privacy policy annually. This policy applies to current and former individual investors in funds managed or sponsored by Morgan Stanley Investment Management Inc. ("MSIM") as well as current and former individual clients of MSIM. This policy is not applicable to partnerships, corporations, trusts or other non-individual clients or investors. Please note that we may amend this policy at any time, and will inform you of any changes as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Notice describes what non-public personal information we collect about you, why 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 to affiliated companies in the Morgan Stanley family of companies ("other Morgan Stanley companies"). It also discloses how you may limit use of certain shared information for marketing purposes by other Morgan Stanley branded companies. Throughout this policy, we refer to the non-public information that personally identifies you or your accounts as "personal information.''

1.  WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?

We obtain personal information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources.

For example:

•  We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through subscription documents, 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.

•  If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies." Please consult the Terms of Use of these sites for more details.

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

We may disclose personal information we collect about you to other Morgan Stanley companies and to non-affiliated third parties.

a. Information We Disclose to Other Morgan Stanley Companies. We may disclose personal information to other Morgan Stanley companies for a variety of reasons, including to manage your account(s) effectively, to service and process your transactions, to let you know about products and services offered by us and other Morgan Stanley companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from other Morgan Stanley companies are developed under conditions designed to safeguard your personal information.

b. Information We Disclose to Non-affiliated Third Parties. We do not disclose personal information that we collect about you to non-affiliated third parties except to those who provide marketing services on our behalf, to financial institutions with whom we have joint marketing agreements, and as otherwise required or permitted by law. For example, we may disclose personal information to nonaffiliated third parties for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with a non-affiliated third party, they are required to limit their use of personal information to the

28

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

particular purpose for which it was shared and they are not allowed to share personal information 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 to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information.

4.  HOW CAN YOU LIMIT THE SHARING OF CERTAIN TYPES OF PERSONAL INFORMATION WITH OTHER MORGAN STANLEY COMPANIES?

We offer you choices as to whether we share with other Morgan Stanley companies the personal information that was collected to determine your eligibility for products and services you request ("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 other Morgan Stanley companies ("opt-out"), we may still share personal information, including eligibility information, with those companies in circumstances excluded from the opt-out under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN TYPES OF PERSONAL INFORMATION BY OTHER MORGAN STANLEY COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit other Morgan Stanley branded 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 Other Morgan Stanley Companies from using personal information about you that we may share with them for marketing their products and services to you, Other Morgan Stanley Companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the Other Morgan Stanley Company has its own relationship with you.

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

If you wish to limit our sharing of eligibility information about you with other Morgan Stanley companies or other Morgan Stanley 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

Your written 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 if 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.

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 have a joint account, your direction for us not to share this information with other Morgan Stanley companies and for those other Morgan Stanley companies not to use your personal information for marketing will be applied to all account holders on that

29

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

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 Morgan Stanley products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

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

If, at any time in the future, an affiliated company becomes a non-affiliated 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 non-affiliated 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 non-affiliated 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 affiliated companies and non-affiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with non-affiliated third parties or other Morgan Stanley companies unless you provide us with your written consent to share such information ("opt-in").

If you wish to receive offers for investment products and services offered by or through other Morgan Stanley companies, please notify us in writing at the following address:

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

Your authorization should include your name, address, telephone number and account number(s) to which the opt-in applies and should not be sent with any other correspondence. In order to process your authorization, we require that the authorization be provided by you directly and not through a third party.

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 information with our affiliates to comply with California privacy laws that apply to us.

30

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — March 31, 2017

Trustee and Officer Information (unaudited)

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

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

Perkins Coie LLP
30 Rockefeller Plaza
New York, New York 10112

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, 100 F Street, NE, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust 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 or summary prospectus of the applicable Fund of Morgan Stanley Institutional Fund Trust, which describes in detail the Fund'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 Fund, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

31

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

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

© 2017 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTHYSAN
1784111 EXP 05.31.18

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Mid Cap Growth Portfolio

Semi-Annual Report

March 31, 2017

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	6
Statement of Operations	8
Statements of Changes in Net Assets	9
Financial Highlights	11
Notes to Financial Statements	15
Privacy Notice	25
Trustee and Officer Information	28

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund 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 Fund'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 Fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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 "Fund") 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 2017

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Expense Example (unaudited)

Mid Cap Growth Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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, 2017 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund'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 Fund 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.

Portfolio	Beginning Account Value 10/1/16		Actual Ending Account Value 3/31/17		Hypothetical Ending Account Value		Actual Expenses Paid During Period		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Mid Cap Growth Portfolio Class I	$	1,000.00	$	1,001.60	$	1,020.99	$	3.94	$	3.98		0.79	%
Mid Cap Growth Portfolio Class A		1,000.00		1,000.30		1,019.55		5.39		5.44		1.08
Mid Cap Growth Portfolio Class L		1,000.00		997.00		1,016.70		8.22		8.30		1.65
Mid Cap Growth Portfolio Class IS		1,000.00		1,002.30		1,021.64		3.29		3.33		0.66

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments

Mid Cap Growth Portfolio

	Shares		Value (000)
Common Stocks (93.3%)
Aerospace & Defense (3.0%)
TransDigm Group, Inc.		86,100	$	18,956
Automobiles (6.2%)
Tesla, Inc. (a)(b)		143,497		39,935
Biotechnology (1.2%)
Alnylam Pharmaceuticals, Inc. (a)		36,523		1,872
Bioverativ, Inc. (a)		65,074		3,544
Intrexon Corp. (a)(b)		82,754		1,640
Juno Therapeutics, Inc. (a)(b)		37,996		843
				7,899
Capital Markets (7.2%)
MSCI, Inc.		243,609		23,676
S&P Global, Inc.		171,720		22,451
				46,127
Construction Materials (0.9%)
Martin Marietta Materials, Inc.		26,915		5,874
Consumer Finance (0.9%)
LendingClub Corp. (a)		1,048,567		5,757
Electronic Equipment, Instruments & Components (0.5%)
Cognex Corp.		39,326		3,301
Health Care Equipment & Supplies (6.8%)
DexCom, Inc. (a)		121,532		10,297
Intuitive Surgical, Inc. (a)		43,680		33,480
				43,777
Health Care Technology (10.1%)
athenahealth, Inc. (a)		300,755		33,892
Veeva Systems, Inc., Class A (a)		594,094		30,465
				64,357
Hotels, Restaurants & Leisure (6.1%)
Dunkin' Brands Group, Inc.		274,250		14,996
Marriott International, Inc., Class A		256,855		24,191
				39,187
Information Technology Services (3.6%)
Gartner, Inc. (a)		212,320		22,928
Internet Software & Services (10.9%)
MercadoLibre, Inc. (Brazil)		77,051		16,294
Survey Monkey, Inc. (a)(c)(d)(e) (acquisition cost — $28,952; acquired 11/25/14)		1,760,030		11,282
Twitter, Inc. (a)		1,437,939		21,497
Zillow Group, Inc., Class C (a)(b)		606,354		20,416
				69,489
Life Sciences Tools & Services (5.8%)
Illumina, Inc. (a)		219,518		37,459
Multi-line Retail (2.4%)
Dollar Tree, Inc. (a)		192,420		15,097

	Shares		Value (000)
Professional Services (7.1%)
IHS Markit Ltd. (a)		555,658	$	23,310
Verisk Analytics, Inc. (a)		272,517		22,112
				45,422
Semiconductors & Semiconductor Equipment (3.5%)
NVIDIA Corp.		203,804		22,200
Software (16.2%)
Atlassian Corp., PLC, Class A (United Kingdom) (a)		218,993		6,559
Mobileye N.V. (a)		80,650		4,952
ServiceNow, Inc. (a)		252,420		22,079
Snap, Inc., Class A (a)(b)		141,080		3,179
Splunk, Inc. (a)		347,969		21,675
Take-Two Interactive Software, Inc. (a)		111,481		6,607
Workday, Inc., Class A (a)		461,406		38,426
				103,477
Textiles, Apparel & Luxury Goods (0.9%)
Under Armour, Inc., Class C (a)328,416				6,010
Total Common Stocks (Cost $468,698)				597,252
	Notional Amount (000)
Call Option Purchased (0.0%)
Foreign Currency Option (0.0%)
USD/CNY May 2017 @ CNY 7.90, Royal Bank of Scotland (Cost $502)		122,669		1
	Shares
Short-Term Investments (8.7%)
Securities held as Collateral on Loaned Securities (8.2%)
Investment Company (7.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		45,801,857		45,802
	Face Amount (000)
Repurchase Agreements (1.0%)
Barclays Capital, Inc., (0.78%, dated 3/31/17, due 4/3/17; proceeds $4,197; fully collateralized by U.S. Government obligations; 1.00% - 1.50% due 12/15/17 - 3/31/23; valued at $4,281)	$	4,197		4,197
Merrill Lynch & Co., Inc., (0.83%, dated 3/31/17, due 4/3/17; proceeds $2,416; fully collateralized by a U.S. Government agency security; 3.50% due 2/20/47; valued at $2,465)		2,416		2,416
				6,613
Total Securities held as Collateral on Loaned Securities (Cost $52,415)				52,415

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

	Shares		Value (000)
Investment Company (0.5%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $3,108)		3,108,180	$	3,108
Total Short-Term Investments (Cost $55,523)				55,523
Total Investments (102.0%) (Cost $524,723) Including $60,940 of Securities Loaned (f)				652,776
Liabilities in Excess of Other Assets (–2.0%)				(12,805	)
Net Assets (100.0%)			$	639,971

(a)  Non-income producing security.

(b)  All or a portion of this security was on loan at March 31, 2017.

(c)  Security has been deemed illiquid at March 31, 2017.

(d)  Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund 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, 2017, amounts to approximately $11,282,000 and represents 1.8% of net assets.

(e)  At March 31, 2017, the Fund held a fair valued security valued at approximately $11,282,000, representing 1.8% 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 Trust's Trustees.

(f)  At March 31, 2017, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $175,920,000 and the aggregate gross unrealized depreciation is approximately $47,867,000 resulting in net unrealized appreciation of approximately $128,053,000.

CNY  —  Chinese Yuan Renminbi

USD  —  United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		18.5	%
Software		17.2
Internet Software & Services		11.6
Health Care Technology		10.7
Capital Markets		7.7
Professional Services		7.6
Health Care Equipment & Supplies		7.3
Automobiles		6.7
Hotels, Restaurants & Leisure		6.5
Life Sciences Tools & Services		6.2
Total Investments		100.0	%

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 31, 2017.

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Mid Cap Growth Portfolio

Statement of Assets and Liabilities	March 31, 2017 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $475,813)	$	603,866
Investment in Security of Affiliated Issuer, at Value (Cost $48,910)		48,910
Total Investments in Securities, at Value (Cost $524,723)		652,776
Cash		3,539
Receivable for Investments Sold		59,874
Dividends Receivable		2,524
Receivable for Fund Shares Sold		336
Receivable from Affiliate		15
Other Assets		306
Total Assets		719,370
Liabilities:
Collateral on Securities Loaned, at Value		55,958
Payable for Fund Shares Redeemed		21,022
Payable for Advisory Fees		1,067
Payable for Sub Transfer Agency Fees — Class I		256
Payable for Sub Transfer Agency Fees — Class A		211
Payable for Sub Transfer Agency Fees — Class L		5
Due to Broker		140
Payable for Trustees' Fees and Expenses		98
Payable for Shareholder Services Fees — Class A		67
Payable for Distribution and Shareholder Services Fees — Class L		5
Payable for Professional Fees		49
Payable for Administration Fees		47
Payable for Transfer Agency Fees — Class I		14
Payable for Transfer Agency Fees — Class A		23
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class IS		2
Payable for Custodian Fees		25
Other Liabilities		409
Total Liabilities		79,399
Net Assets	$	639,971
Net Assets Consist Of:
Paid-in-Capital	$	452,126
Accumulated Net Investment Loss		(22,277	)
Accumulated Net Realized Gain		82,069
Unrealized Appreciation (Depreciation) on:
Investments		128,053
Net Assets	$	639,971

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Mid Cap Growth Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2017 (000)
CLASS I:
Net Assets	$	246,187
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		12,805,466
Net Asset Value, Offering and Redemption Price Per Share	$	19.23
CLASS A:
Net Assets	$	314,358
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		18,278,908
Net Asset Value, Redemption Price Per Share	$	17.20
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.95
Maximum Offering Price Per Share	$	18.15
CLASS L:
Net Assets	$	7,909
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		485,661
Net Asset Value, Offering and Redemption Price Per Share	$	16.28
CLASS IS:
Net Assets	$	71,517
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		3,698,277
Net Asset Value, Offering and Redemption Price Per Share	$	19.34
(1) Including: Securities on Loan, at Value:	$	60,940

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Mid Cap Growth Portfolio

Statement of Operations	Six Months Ended March 31, 2017 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers	$	4,123
Income from Securities Loaned — Net		983
Dividends from Security of Affiliated Issuer (Note G)		48
Total Investment Income		5,154
Expenses:
Advisory Fees (Note B)		2,137
Sub Transfer Agency Fees — Class I		271
Sub Transfer Agency Fees — Class A		306
Sub Transfer Agency Fees — Class L		10
Shareholder Services Fees — Class A (Note D)		462
Distribution and Shareholder Services Fees — Class L (Note D)		32
Administration Fees (Note C)		342
Shareholder Reporting Fees		86
Registration Fees		71
Transfer Agency Fees — Class I (Note E)		17
Transfer Agency Fees — Class A (Note E)		32
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class IS (Note E)		5
Professional Fees		55
Custodian Fees (Note F)		26
Trustees' Fees and Expenses		12
Pricing Fees		2
Other Expenses		15
Expenses Before Non Operating Expenses		3,883
Bank Overdraft Expense		31
Total Expenses		3,914
Rebate from Morgan Stanley Affiliate (Note G)		(25	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Net Expenses		3,888
Net Investment Income		1,266
Realized Gain:
Investments Sold		179,796
Foreign Currency Transactions		15
Net Realized Gain		179,811
Change in Unrealized Appreciation (Depreciation):
Investments		(210,635	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(30,824	)
Net Decrease in Net Assets Resulting from Operations	$	(29,558	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Mid Cap Growth Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,266		$	1,385
Net Realized Gain		179,811			298,773
Net Change in Unrealized Appreciation (Depreciation)		(210,635	)		(417,181	)
Net Decrease in Net Assets Resulting from Operations		(29,558	)		(117,023	)
Distributions from and/or in Excess of:
Class I:
Net Realized Gain		(158,083	)		(213,404	)
Class A:
Net Realized Gain		(165,422	)		(107,999	)
Class L:
Net Realized Gain		(3,634	)		(1,556	)
Class IS:
Net Realized Gain		(24,994	)		(132,809	)
Total Distributions		(352,133	)		(455,768	)
Capital Share Transactions:(1)
Class I:
Subscribed		19,863			99,014
Distributions Reinvested		151,514			195,833
Redeemed		(316,319	)		(1,632,976	)
Class A:
Subscribed		14,062			46,654
Distributions Reinvested		163,817			104,817
Redeemed		(166,914	)		(546,761	)
Class L:
Distributions Reinvested		3,515			1,516
Redeemed		(1,707	)		(2,529	)
Class IS:
Subscribed		30,981			206,340
Distributions Reinvested		24,876			123,359
Redeemed		(175,040	)		(1,010,792	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(251,352	)		(2,415,525	)
Total Decrease in Net Assets		(633,043	)		(2,988,316	)
Net Assets:
Beginning of Period		1,273,014			4,261,330
End of Period (Including Accumulated Net Investment Loss of $(22,277) and $(23,543))	$	639,971		$	1,273,014

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Mid Cap Growth Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		988			3,169
Shares Issued on Distributions Reinvested		8,619			5,943
Shares Redeemed		(14,491	)		(51,617	)
Net Decrease in Class I Shares Outstanding		(4,884	)		(42,505	)
Class A:
Shares Subscribed		753			1,631
Shares Issued on Distributions Reinvested		10,408			3,386
Shares Redeemed		(8,975	)		(18,183	)
Net Increase (Decrease) in Class A Shares Outstanding		2,186			(13,166	)
Class L:
Shares Issued on Distributions Reinvested		235			50
Shares Redeemed		(90	)		(87	)
Net Increase (Decrease) in Class L Shares Outstanding		145			(37	)
Class IS:
Shares Subscribed		1,381			6,353
Shares Issued on Distributions Reinvested		1,407			3,735
Shares Redeemed		(5,954	)		(33,413	)
Net Decrease in Class IS Shares Outstanding		(3,166	)		(23,325	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Mid Cap Growth Portfolio

	Class I
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			2012
Net Asset Value, Beginning of Period	$	31.85		$	35.96		$	44.73		$	44.24		$	35.34		$	33.65
Income (Loss) from Investment Operations:
Net Investment Income (Loss) (2)		0.05			0.03			(0.16	)		0.09			0.10			0.17
Net Realized and Unrealized Gain (Loss)		(1.08	)		0.18			(2.33	)		3.04			10.10			3.35
Total from Investment Operations		(1.03	)		0.21			(2.49	)		3.13			10.20			3.52
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.09	)		—			(0.12	)		—
Net Realized Gain		(11.59	)		(4.32	)		(6.19	)		(2.64	)		(1.18	)		(1.83	)
Total Distributions		(11.59	)		(4.32	)		(6.28	)		(2.64	)		(1.30	)		(1.83	)
Net Asset Value, End of Period	$	19.23		$	31.85		$	35.96		$	44.73		$	44.24		$	35.34
Total Return (3)		0.16	%(7)		0.19	%		(6.18	)%		7.25	%		29.92	%		10.91	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	246,187		$	563,397		$	2,164,565		$	4,708,900		$	5,174,440		$	4,219,528
Ratio of Expenses to Average Net Assets (9)		0.79	%(4)(8)		0.73	%(4)		0.74	%(4)		0.75	%(4)		0.70	%(4)(5)		0.71	%(4)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		0.78	%(4)(8)		N/A			N/A			N/A			0.71	%(4)(5)		N/A
Ratio of Net Investment Income (Loss) to Average Net Assets (9)		0.44	%(4)(8)		0.09	%(4)		(0.39	)%(4)		0.19	%(4)		0.27	%(4)(5)		0.48	%(4)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(8)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		29	%(7)		23	%		27	%		45	%		52	%		26	%
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.79	%(8)		0.74	%		N/A			N/A			N/A			N/A
Net Investment Income to Average Net Assets		0.44	%(8)		0.08	%		N/A			N/A			N/A			N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses to Average Net Assets would have been less than 0.005% higher and the Ratio of Net Investment Income (Loss) to Average Net Assets would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  The Ratios of Expenses and Net Investment Income (Loss) reflect the rebate of certain Fund 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."

(5)  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.

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Mid Cap Growth Portfolio

	Class A
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			2012
Net Asset Value, Beginning of Period	$	29.86		$	34.06		$	42.70		$	42.46		$	34.03		$	32.55
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		0.01			(0.05	)		(0.26	)		(0.03	)		0.01			0.06
Net Realized and Unrealized Gain (Loss)		(1.08	)		0.17			(2.19	)		2.91			9.70			3.25
Total from Investment Operations		(1.07	)		0.12			(2.45	)		2.88			9.71			3.31
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.10	)		—
Net Realized Gain		(11.59	)		(4.32	)		(6.19	)		(2.64	)		(1.18	)		(1.83	)
Total Distributions		(11.59	)		(4.32	)		(6.19	)		(2.64	)		(1.28	)		(1.83	)
Net Asset Value, End of Period	$	17.20		$	29.86		$	34.06		$	42.70		$	42.46		$	34.03
Total Return (3)		0.03	%(7)		(0.12	)%		(6.40	)%		6.95	%		29.60	%		10.62	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	314,358		$	480,488		$	996,553		$	1,859,126		$	2,171,493		$	1,832,003
Ratio of Expenses to Average Net Assets (9)		1.08	%(4)(8)		0.99	%(4)		1.00	%(4)		1.00	%(4)		0.95	%(4)(5)		0.96	%(4)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.07	%(4)(8)		N/A			N/A			N/A			0.96	%(4)(5)		N/A
Ratio of Net Investment Income (Loss) to Average Net Assets (9)		0.11	%(4)(8)		(0.17	)%(4)		(0.65	)%(4)		(0.07	)%(4)		0.02	%(4)(5)		0.17	%(4)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(8)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		29	%(7)		23	%		27	%		45	%		52	%		26	%
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.08	%(8)		1.00	%		N/A			N/A			N/A			N/A
Net Investment Income (Loss) to Average Net Assets		0.11	%(8)		(0.18	)%		N/A			N/A			N/A			N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses to Average Net Assets would have been less than 0.005% higher and the Ratio of Net Investment Income (Loss) to Average Net Assets would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2)  Per share amount is based on average shares outstanding.

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

(4)  The Ratios of Expenses and Net Investment Income (Loss) reflect the rebate of certain Fund 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."

(5)  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.

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Mid Cap Growth Portfolio

	Class L
	Six Months Ended March 31, 2017			Year Ended September 30,												Period from June 14, 2012(2) to
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	29.01		$	33.39		$	42.20		$	42.20		$	33.97		$	32.87
Income (Loss) from Investment Operations:
Net Investment Income (Loss) (3)		(0.05	)		(0.22	)		(0.46	)		(0.26	)		(0.15	)		0.05
Net Realized and Unrealized Gain (Loss)		(1.09	)		0.16			(2.16	)		2.90			9.63			1.05
Total from Investment Operations		(1.14	)		(0.06	)		(2.62	)		2.64			9.48			1.10
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.07	)		—
Net Realized Gain		(11.59	)		(4.32	)		(6.19	)		(2.64	)		(1.18	)		—
Total Distributions		(11.59	)		(4.32	)		(6.19	)		(2.64	)		(1.25	)		—
Net Asset Value, End of Period	$	16.28		$	29.01		$	33.39		$	42.20		$	42.20		$	33.97
Total Return (4)		(0.30	)%(8)		(0.73	)%		(6.94	)%		6.40	%		28.92	%		3.35	%(8)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	7,909		$	9,874		$	12,600		$	16,817		$	17,190		$	10
Ratio of Expenses to Average Net Assets (10)		1.65	%(5)(9)		1.60	%(5)		1.55	%(5)		1.55	%(5)		1.46	%(5)(6)		1.50	%(5)(9)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.64	%(5)(9)		N/A			N/A			N/A			1.46	%(5)(6)		N/A
Ratio of Net Investment Income (Loss) to Average Net Assets (10)		(0.54	)%(5)(9)		(0.76	)%(5)		(1.20	)%(5)		(0.60	)%(5)		(0.41	)%(5)(6)		0.46	%(5)(9)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(9)		0.00	%(7)		0.00	%(7)		0.00	%(7)		0.00	%(7)		0.00	%(7)(9)
Portfolio Turnover Rate		29	%(8)		23	%		27	%		45	%		52	%		26	%(8)
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.68	%(9)		1.61	%		N/A			N/A			N/A			N/A
Net Investment Loss to Average Net Assets		(0.57	)%(9)		(0.77	)%		N/A			N/A			N/A			N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses to Average Net Assets would have been less than 0.005% higher and the Ratio of Net Investment Income (Loss) to Average Net Assets would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  The Ratios of Expenses and Net Investment Income (Loss) reflect the rebate of certain Fund 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."

(6)  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.

(7)  Amount is less than 0.005%.

(8)  Not annualized.

(9)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Mid Cap Growth Portfolio

	Class IS
	Six Months Ended March 31, 2017			Year Ended September 30,									Period from September 13, 2013(2) to
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			September 30, 2013
Net Asset Value, Beginning of Period	$	31.94		$	36.03		$	44.80		$	44.25		$	43.74
Income (Loss) from Investment Operations:
Net Investment Income (Loss) (3)		0.06			0.07			(0.10	)		0.18			(0.00	)(4)
Net Realized and Unrealized Gain (Loss)		(1.07	)		0.16			(2.33	)		3.01			0.51
Total from Investment Operations		(1.01	)		0.23			(2.43	)		3.19			0.51
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.15	)		—			—
Net Realized Gain		(11.59	)		(4.32	)		(6.19	)		(2.64	)		—
Total Distributions		(11.59	)		(4.32	)		(6.34	)		(2.64	)		—
Net Asset Value, End of Period	$	19.34		$	31.94		$	36.03		$	44.80		$	44.25
Total Return (5)		0.23	%(9)		0.25	%		(6.02	)%		7.39	%		1.17	%(9)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	71,517		$	219,255		$	1,087,612		$	662,560		$	10
Ratio of Expenses to Average Net Assets (11)		0.66	%(6)(10)		0.61	%(6)		0.61	%(6)		0.61	%(6)		0.49	%(6)(7)(10)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		0.66	%(6)(10)		N/A			N/A			N/A			0.58	%(6)(7)(10)
Ratio of Net Investment Income (Loss) to Average Net Assets(11)		0.54	%(6)(10)		0.22	%(6)		(0.25	)%(6)		0.41	%(6)		(0.22	)%(6)(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(10)		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.01	%(10)
Portfolio Turnover Rate		29	%(9)		23	%		27	%		45	%		52	%(9)
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.66	%(10)		0.62	%		N/A			N/A			N/A
Net Investment Income to Average Net Assets		0.54	%(10)		0.21	%		N/A			N/A			N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses to Average Net Assets would have been less than 0.005% higher and the Ratio of Net Investment Income (Loss) to Average Net Assets would have been less than 0.005% lower had the custodian not reimbursed the Fund.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

(4)  Amount is less than $0.005 per share.

(5)  Calculated based on the net asset value as of the last business day of the period.

(6)  The Ratios of Expenses and Net Investment Income (Loss) reflect the rebate of certain Fund 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."

(7)  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.

(8)  Amount is less than 0.005%.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust is comprised of nine separate, active funds (individually referred to as a "Fund", collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

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

The Fund's Class I, Class A, Class L and Class IS shares are currently closed to new investors with certain exceptions.

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 Trust in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

1.  Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. An unlisted equity security that does not trade on the valuation date and for

which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. 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 its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads, and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges; (5) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of

15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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) 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; and (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.

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

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

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

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

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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 Fund's investments as of March 31, 2017.

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	$	18,956	$	—	$	—	$	18,956
Automobiles		39,935		—		—		39,935
Biotechnology		7,899		—		—		7,899
Capital Markets		46,127		—		—		46,127
Construction Materials		5,874		—		—		5,874
Consumer Finance		5,757		—		—		5,757
Electronic Equipment, Instruments & Components		3,301		—		—		3,301
Health Care Equipment & Supplies		43,777		—		—		43,777
Health Care Technology		64,357		—		—		64,357
Hotels, Restaurants & Leisure		39,187		—		—		39,187
Information Technology Services		22,928		—		—		22,928
Internet Software & Services		58,207		—		11,282		69,489
Life Sciences Tools & Services		37,459		—		—		37,459
Multi-line Retail		15,097		—		—		15,097
Professional Services		45,422		—		—		45,422
Semiconductors & Semiconductor Equipment		22,200		—		—		22,200
Software		103,477		—		—		103,477
Textiles, Apparel & Luxury Goods		6,010		—		—		6,010
Total Common Stocks		585,970		—		11,282		597,252

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Call Option Purchased	$	—	$	1	$	—	$	1
Short-Term Investments
Investment Company		48,910		—		—		48,910
Repurchase Agreements		—		6,613		—		6,613
Total Short-Term Investments		48,910		6,613		—		55,523
Total Assets	$	634,880	$	6,614	$	11,282	$	652,776

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of March 31, 2017, the Fund did not have any investments transfer between investment levels.

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

	Common Stocks (000)			Convertible Preferred Stock (000)			Preferred Stocks (000)
Beginning Balance	$	68,563		$	5,031		$	29,549
Purchases		—			—			—
Sales		(31,491	)		(3,030	)		(34,924	)
Amortization of discount		—			—			—
Transfers in		—			—			—
Transfers out		—			—			—
Corporate actions		—			—			—
Change in unrealized appreciation (depreciation)		(23,373	)		(1,666	)		(16,542	)
Realized gains (losses)		(2,417	)		(335	)		21,917
Ending Balance	$	11,282		$	—		$	—
Net change in unrealized appreciation (depreciation) from investments still held as of March 31, 2017	$	(6,583	)	$	—		$	—

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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, 2017. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance.

	Fair Value at March 31, 2017 (000)		Valuation Technique	Unobservable Input	Range					Selected Value			Impact to Valuation from an Increase in Input
Internet Software & Services
Common Stock	$	11,282	Discounted Cash Flow	Weighted Average Cost of Capital		16.5	%	18.5	%		17.5	%	Decrease
				Perpetual Growth Rate		3.0	%	4.0	%		3.5	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		4.9	x	8.4	x		4.9	x	Increase
				Discount for Lack of Marketability		20.0	%	20.0	%		20.0	%	Decrease

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

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency 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 Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. The change in unrealized currency gains (losses)

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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

5.  Derivatives: The Fund 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 Fund'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 Fund 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 Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund'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 Fund used during the period and their associated risks:

Options: With respect to options, the Fund is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. The Fund may purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund 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 Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased OTC, the Fund 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 Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

FASB ASC 815, "Derivatives and Hedging" ("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 Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2017.

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Option Purchased	Investments, at Value (Option Purchased)	Currency Risk	$	1	(a)

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

The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 31, 2017 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Option Purchased)	$	(1,044	)(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 (Option Purchased)	$	533	(c)

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

At March 31, 2017, the Fund'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(d) (000)
Option Purchased	$	1	(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.

The Fund 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 Fund 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 Fund 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 Fund 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 Fund's net liability may be delayed or denied.

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of March 31, 2017.

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	$	1	$	—	$	(1	)	$	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, 2017, the approximate average monthly amount outstanding for each derivative type is as follows:

Options Purchased:
Average monthly notional amount	177,510,000

6.  Securities Lending: The Fund 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 Fund. The Fund would receive cash or securities as collateral in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Fund'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 Fund 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, 2017.

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)
$	60,940	(f)	$	—	$	(60,940	)(g)(h)	$	0

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

(g) The Fund received cash collateral of approximately $55,958,000, of which approximately $52,415,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Fund of Investments. As of March 31, 2017, there was uninvested cash of approximately $3,543,000, which is not reflected in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $5,912,000 in the form of U.S. Government obligations, which the Fund 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.

FASB Accounting Standards Update No. 2014-11 ("ASU No. 2014-11"), "Transfers & Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures", 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.

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, 2017.

Remaining Contractual Maturity of the Agreements
	Overnight and Continuous (000)		<30 days (000)		Between 30 & 90 days (000)		>90 days (000)		Total (000)
Securities Lending Transactions
Common Stocks	$	55,958	$	—	$	—	$	—	$	55,958
Total Borrowings	$	55,958	$	—	$	—	$	—	$	55,958
Gross amount of recognized liabilities for securities lending transactions									$	55,958

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

7.  Restricted Securities: The Fund 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 Fund 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 Fund, 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 Fund can 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 the acquirer of the securities. The Fund would, in either case, bear market risks during that period. Restricted securities are identified in the Portfolio of Investments.

8.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown. However, the Trust 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 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 Fund 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 Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among

the Funds 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 Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.50% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.80% for Class I shares, 1.15% for Class A shares, 1.65% for Class L shares and 0.73% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund'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, 2017, approximately $1,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust 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 Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

The Trust 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 Fund 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 Fund's average daily net assets attributable to Class L shares.

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

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

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Trust 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, 2017, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $238,276,000 and $841,151,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 31, 2017.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities 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 Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended March 31, 2017, advisory fees paid were reduced by approximately $25,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of the Liquidity Funds during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2017 (000)
$	83,604	$	408,016	$	442,710	$	48	$	48,910

During the six months ended March 31, 2017, the Fund incurred approximately $1,000 in brokerage commissions with Morgan Stanley & Co., LLC, an affiliate of the Adviser/Administrator and Distributor, for portfolio transactions executed on behalf of the Fund.

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2017, the Fund did not engage in any cross-trade transactions.

The Fund 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 Fund.

H. Federal Income Taxes: It is the Fund'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 Fund 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.

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund 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, 2016, 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 2016 and 2015 was as follows:

2016 Distributions Paid From:				2015 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	455,768	$	69,051	$	902,755

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, nondeductible expenses, distribution redesignation, tax adjustments on partnership investments held and sold by the Fund and a net operating loss, resulted in the following reclassifications among the components of net assets at September 30, 2016:

Accumulated Net Investment Loss (000)		Accumulated Undistributed Net Realized Gain (000)		Paid-in- Capital (000)
$	7,284	$	26,992	$	(34,276	)

At September 30, 2016, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	—	$	302,213

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 Fund's next taxable year. For the year ended September 30, 2016, the Fund deferred to October 1, 2016 for U.S. Federal income tax purposes the following losses:

Post-October Currency and Specified Ordinary Losses (000)		Post-October Capital Losses (000)
$	23,275	$	—

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $150,000,000 committed, unsecured revolving line of credit facility (the "facility") with State Street. This facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or one month libor rate plus a spread. The facility also has a commitment fee of 0.25% per annum based on the unused portion of the facility. During the six months ended March 31, 2017, the Fund did not have any borrowings under the facility.

J. Other: At March 31, 2017, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 56.7%.

K. Accounting Pronouncement: In October 2016, the Securities and Exchange Commission ("SEC") issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the Fund's net assets or results of operations. Although still evaluating the potential impacts of the Investment Company Reporting Modernization to the Fund, management expects that the impact of the Fund's adoption will be limited to additional financial statement disclosures.

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited)

MORGAN STANLEY INVESTMENT MANAGEMENT INC.
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

We are required by federal law to provide you with a copy of our privacy policy annually. This policy applies to current and former individual investors in funds managed or sponsored by Morgan Stanley Investment Management Inc. ("MSIM") as well as current and former individual clients of MSIM. This policy is not applicable to partnerships, corporations, trusts or other non-individual clients or investors. Please note that we may amend this policy at any time, and will inform you of any changes as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Notice describes what non-public personal information we collect about you, why 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 to affiliated companies in the Morgan Stanley family of companies ("other Morgan Stanley companies"). It also discloses how you may limit use of certain shared information for marketing purposes by other Morgan Stanley branded companies. Throughout this policy, we refer to the non-public information that personally identifies you or your accounts as "personal information."

1.  WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?

We obtain personal information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources.

For example:

•  We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through subscription documents, 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.

•  If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies." Please consult the Terms of Use of these sites for more details.

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

We may disclose personal information we collect about you to other Morgan Stanley companies and to non-affiliated third parties.

a. Information We Disclose to Other Morgan Stanley Companies.

We may disclose personal information to other Morgan Stanley companies for a variety of reasons, including to manage your account(s) effectively, to service and process your transactions, to let you know about products and services offered by us and other Morgan Stanley companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from other Morgan Stanley companies are developed under conditions designed to safeguard your personal information.

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

b. Information We Disclose to Non-affiliated Third Parties.

We do not disclose personal information that we collect about you to non-affiliated third parties except to those who provide marketing services on our behalf, to financial institutions with whom we have joint marketing agreements, and as otherwise required or permitted by law. For example, we may disclose personal information to nonaffiliated third parties for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with a non-affiliated third party, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information 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 to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information.

4.  HOW CAN YOU LIMIT THE SHARING OF CERTAIN TYPES OF PERSONAL INFORMATION WITH OTHER MORGAN STANLEY COMPANIES?

We offer you choices as to whether we share with other Morgan Stanley companies the personal information that was collected to determine your eligibility for products and services you request ("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 other Morgan Stanley companies ("opt-out"), we may still share personal information, including eligibility information, with those companies in circumstances excluded from the opt-out under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN TYPES OF PERSONAL INFORMATION BY OTHER MORGAN STANLEY COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit other Morgan Stanley branded 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 Other Morgan Stanley Companies from using personal information about you that we may share with them for marketing their products and services to you, Other Morgan Stanley Companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the Other Morgan Stanley Company has its own relationship with you.

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

If you wish to limit our sharing of eligibility information about you with other Morgan Stanley companies or other Morgan Stanley 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

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

Your written 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 if 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.

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 have a joint account, your direction for us not to share this information with other Morgan Stanley companies and for those other Morgan Stanley companies not to use your personal information for marketing will be applied to all account holders on that 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 Morgan Stanley products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

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

If, at any time in the future, an affiliated company becomes a non-affiliated 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 non-affiliated 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 non-affiliated 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 affiliated companies and non-affiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with non-affiliated third parties or other Morgan Stanley companies unless you provide us with your written consent to share such information ("opt-in").

If you wish to receive offers for investment products and services offered by or through other Morgan Stanley companies, please notify us in writing at the following address:

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

Your authorization should include your name, address, telephone number and account number(s) to which the opt-in applies and should not be sent with any other correspondence. In order to process your authorization, we require that the authorization be provided by you directly and not through a third party.

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 information with our affiliates to comply with California privacy laws that apply to us.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Trustee and Officer Information (unaudited)

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

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

Perkins Coie LLP
30 Rockefeller Plaza
New York, New York 10112

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, 100 F Street, NE, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust 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 or summary prospectus of the applicable Fund of Morgan Stanley Institutional Fund Trust, which describes in detail the Fund'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 Fund, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

28

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

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

© 2017 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTMCGSAN
1784114 EXP 05.31.18

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Short Duration Income Portfolio

Semi-Annual Report

March 31, 2017

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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	16
Notes to Financial Statements	21
Privacy Notice	30
Trustee and Officer Information	33

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund 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 Fund'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 Fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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 "Fund") 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 2017

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Expense Example (unaudited)

Short Duration Income Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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, 2017 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund'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 Fund 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 10/1/16		Actual Ending Account Value 3/31/17		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	$	1,011.00	$	1,023.49	$	1.45	$	1.46		0.29	%
Short Duration Income Portfolio Class A		1,000.00		1,010.90		1,022.19		2.76		2.77		0.55
Short Duration Income Portfolio Class L		1,000.00		1,009.70		1,020.94		4.01		4.03		0.80
Short Duration Income Portfolio Class C		1,000.00		1,006.70		1,018.45		6.50		6.54		1.30
Short Duration Income Portfolio Class IS		1,000.00		1,012.40		1,023.68		1.25		1.26		0.25

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (95.2%)
Agency Adjustable Rate Mortgages (1.4%)
Federal Home Loan Mortgage Corporation,
Conventional Pools:
2.75%, 6/1/38	$	423	$	447
2.88%, 7/1/38		566		599
2.89%, 1/1/36 - 3/1/37		1,269		1,343
				2,389
Agency Bond — Consumer Discretionary (U.S. Government Guaranteed) (0.3%)
Safina Ltd.
2.00%, 12/30/23		581		574
Agency Fixed Rate Mortgages (2.1%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
4.50%, 12/1/24		530		564
6.50%, 9/1/19 - 4/1/24		2		2
7.50%, 11/1/19 - 5/1/35		36		42
8.00%, 8/1/32		21		25
8.50%, 8/1/31		21		26
Federal National Mortgage Association,
Conventional Pools:
4.50%, 6/1/24 - 7/1/24		802		848
5.00%, 12/1/23 - 12/1/24		456		482
6.00%, 2/1/37 - 9/1/37		363		411
6.50%, 2/1/28 - 10/1/32		265		295
7.00%, 7/1/29 - 3/1/37		329		374
7.50%, 8/1/37		48		58
8.00%, 4/1/33		89		108
8.50%, 10/1/32		38		47
Government National Mortgage Association,
Various Pools:
6.00%, 11/15/38		166		188
8.50%, 7/15/30		94		106
				3,576
Asset-Backed Securities (12.3%)
Ally Auto Receivables Trust
1.47%, 4/15/20		650		650
AMSR Trust
2.34%, 11/17/33 (a)(b)		600		606
Bayview Opportunity Master Fund IVb Trust 2017-NPL1
3.60%, 1/28/32 (a)		680		680
BMW Vehicle Lease Trust
1.98%, 5/20/20		775		778
Colony American Homes,
2.09%, 5/17/31 (a)(b)		392		392
3.94%, 7/17/32 (a)(b)		600		601
4.18%, 7/17/31 (a)(b)		550		551
Ford Credit Auto Owner Trust
2.26%, 11/15/25 (a)		1,165		1,175
GMAT Trust
4.25%, 9/25/20 (a)		360		360

	Face Amount (000)		Value (000)
Green Tree Agency Advance Funding Trust I,
2.38%, 10/15/48 (a)	$	600	$	596
3.09%, 10/15/48 (a)		578		578
Invitation Homes Trust,
2.29%, 6/17/32 (a)(b)		391		392
3.69%, 8/17/32 (a)(b)		666		670
4.09%, 6/17/32 (a)(b)		600		606
Mariner Finance Issuance Trust
3.62%, 2/20/29 (a)		550		554
Marlette Funding Trust
2.83%, 3/15/24 (a)		550		551
Nationstar HECM Loan Trust,
2.24%, 6/25/26 (a)		260		262
2.88%, 11/25/25 (a)		106		106
2.98%, 2/25/26 (a)		230		230
4.11%, 11/25/25 (a)		500		501
North Carolina State Education Assistance Authority
1.84%, 7/25/25 (b)		425		426
NRZ Excess Spread-Collateralized Notes
5.68%, 7/25/21 (a)		573		573
Panhandle-Plains Higher Education Authority, Inc.
1.95%, 7/1/24 (b)		112		112
PennyMac 2015-NPL1 LLC
4.00%, 3/25/55 (a)		554		559
Pretium Mortgage Credit Partners LLC,
1.00%, 4/29/31 (a)		610		610
3.50%, 10/27/31 (a)		302		304
PRPM LLC
4.00%, 9/27/21 (a)		328		327
RMAT LLC
4.83%, 6/25/35 (a)		264		262
SBA Small Business Investment Cos.
2.25%, 9/10/22		535		533
SPS Servicer Advance Receivables Trust,
2.53%, 11/16/48 (a)		700		699
2.92%, 7/15/47 (a)		600		601
Sunset Mortgage Loan Co., LLC
3.72%, 11/16/44 (a)		67		67
Vericrest Opportunity Loan Trust
4.25%, 3/26/46 (a)		542		546
Verizon Owner Trust,
1.68%, 5/20/21 (a)		610		608
2.06%, 9/20/21 (a)		375		376
Volkswagen Credit Auto Master Trust
1.40%, 7/22/19 (a)		398		398
VOLT LIV LLC
3.63%, 2/25/47 (a)		345		344
VOLT LV LLC
3.50%, 3/25/47 (a)		600		602
VOLT NPL X LLC
4.75%, 10/26/54 (a)		282		281
VOLT XIX LLC
5.00%, 4/25/55 (a)		200		200

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Asset-Backed Securities (cont'd)
VOLT XLIV LLC
4.25%, 4/25/46 (a)	$	527	$	533
VOLT XXII LLC
4.25%, 2/25/55 (a)		199		196
VOLT XXXI LLC
4.50%, 2/25/55 (a)		200		199
VOLT XXXIII LLC
4.25%, 3/25/55 (a)		347		342
VOLT XXXV LLC
3.50%, 6/26/45 (a)		103		103
				20,640
Collateralized Mortgage Obligations — Agency Collateral Series (3.6%)
Federal Home Loan Mortgage Corporation,
1.44%, 1/25/19		277		277
1.56%, 10/25/18		119		119
1.62%, 9/25/18		290		291
1.78%, 10/25/20		393		393
1.88%, 5/25/19		843		845
2.06%, 10/25/20		473		474
2.09%, 3/25/19		265		267
2.26%, 10/25/20		233		234
2.30%, 9/25/18		320		323
2.32%, 10/25/18		283		286
3.03%, 10/25/20 (b)		483		499
REMIC
7.50%, 9/15/29		687		799
Federal National Mortgage Association,
0.99%, 6/25/18 (b)		179		179
1.55%, 4/25/18		250		250
1.63%, 2/25/18		225		226
2.17%, 9/25/19 (b)		587		592
				6,054
Commercial Mortgage-Backed Securities (1.8%)
BLCP Hotel Trust
1.86%, 8/15/29 (a)(b)		581		582
CDGJ Commercial Mortgage Trust
2.31%, 12/15/27 (a)(b)		375		376
Citigroup Commercial Mortgage Trust
2.11%, 1/12/30 (a)		159		159
Cosmopolitan Hotel Trust
2.31%, 11/15/33 (a)(b)		533		538
Hudsons Bay Simon JV Trust
2.41%, 8/5/34 (a)(b)		185		185
JP Morgan Chase Commercial Mortgage Securities Trust
1.89%, 7/15/31 (a)(b)		177		178
TRU Trust
3.16%, 11/15/30 (a)(b)		578		581
Velocity Commercial Capital Loan Trust
2.58%, 10/25/46 (b)		334		334
				2,933

	Face Amount (000)		Value (000)
Corporate Bonds (66.1%)
Finance (30.2%)
ABN Amro Bank N.V.
2.50%, 10/30/18 (a)	$	630	$	635
American Express Credit Corp.,
Series G
1.80%, 7/31/18		425		426
2.25%, 8/15/19		675		680
Bank of America Corp.,
MTN
2.63%, 10/19/20		780		785
Bank of Montreal,
MTN
1.50%, 7/18/19		375		371
Bank of New York Mellon Corp. (The),
MTN
2.45%, 11/27/20		525		528
Bank of Nova Scotia (The)
1.95%, 1/15/19		725		728
BB&T Corp.,
MTN
2.25%, 2/1/19		580		584
Berkshire Hathaway Finance Corp.
1.70%, 3/15/19		500		501
BNP Paribas SA,
MTN
2.70%, 8/20/18		1,560		1,577
BNZ International Funding Ltd.
2.35%, 3/4/19 (a)		650		653
BPCE SA,
MTN
2.25%, 1/27/20		600		596
Branch Banking & Trust Co.
2.10%, 1/15/20		1,000		1,002
Capital One Financial Corp.
2.45%, 4/24/19		1,005		1,011
Citigroup, Inc.,
2.05%, 6/7/19		1,100		1,100
2.45%, 1/10/20		475		477
Commonwealth Bank of Australia,
1.38%, 9/6/18 (a)		900		896
2.50%, 9/20/18		600		606
Compass Bank
1.85%, 9/29/17		600		600
Credit Agricole SA
2.13%, 4/17/18 (a)		775		777
Credit Suisse AG,
Series G
2.30%, 5/28/19		650		653
Danske Bank A/S
1.65%, 9/6/19 (a)		1,700		1,679
DBS Group Holdings Ltd.
2.25%, 7/16/19 (a)		650		652

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Discover Bank
2.00%, 2/21/18	$	665	$	666
DNB Bank ASA
3.20%, 4/3/17 (a)		610		610
ERP Operating LP
2.38%, 7/1/19		550		554
Goldman Sachs Group, Inc. (The),
2.30%, 12/13/19		860		861
2.63%, 1/31/19		790		799
HSBC USA, Inc.,
1.63%, 1/16/18		725		725
2.25%, 6/23/19		659		662
ING Bank N.V.
2.05%, 8/17/18 (a)		1,075		1,077
Intesa Sanpaolo SpA
3.88%, 1/16/18		355		360
Jackson National Life Global Funding,
1.88%, 10/15/18 (a)		275		276
2.20%, 1/30/20 (a)		550		549
JPMorgan Chase & Co.,
1.85%, 3/22/19		1,170		1,171
2.20%, 10/22/19		325		327
KeyBank NA
1.60%, 8/22/19		300		297
LeasePlan Corp. N.V.
2.88%, 1/22/19 (a)		500		502
Macquarie Bank Ltd.,
2.35%, 1/15/19 (a)		725		728
2.60%, 6/24/19 (a)		605		611
Manufacturers & Traders Trust Co.
2.10%, 2/6/20		560		559
MassMutual Global Funding II
1.55%, 10/11/19 (a)		1,140		1,127
Metropolitan Life Global Funding I,
1.35%, 9/14/18 (a)		1,120		1,116
2.00%, 4/14/20 (a)		550		547
Mizuho Bank Ltd.
1.85%, 3/21/18 (a)		645		645
National Australia Bank Ltd.
1.38%, 7/12/19		1,220		1,203
New York Life Global Funding
1.55%, 11/2/18 (a)		375		374
Nordea Bank AB,
1.63%, 9/30/19 (a)		900		891
1.88%, 9/17/18 (a)		800		800
PNC Bank NA
1.95%, 3/4/19		875		877
Principal Life Global Funding II
2.15%, 1/10/20 (a)		1,425		1,425
Protective Life Global Funding,
1.72%, 4/15/19 (a)		700		693
2.70%, 11/25/20 (a)		525		529

	Face Amount (000)		Value (000)
QBE Insurance Group Ltd.
2.40%, 5/1/18 (a)	$	200	$	200
Santander Holdings USA, Inc.
2.70%, 5/24/19		675		678
Santander UK Group Holdings PLC
2.88%, 10/16/20		200		201
Skandinaviska Enskilda Banken AB,
1.75%, 3/19/18 (a)		380		380
2.30%, 3/11/20		530		532
Standard Chartered PLC
1.50%, 9/8/17 (a)		900		899
Sumitomo Mitsui Banking Corp.,
1.76%, 10/19/18		400		399
2.45%, 1/10/19		630		635
Suncorp-Metway Ltd.
2.10%, 5/3/19 (a)		275		274
Swedbank AB
1.75%, 3/12/18 (a)		305		305
Synchrony Financial
3.00%, 8/15/19		800		813
Toronto-Dominion Bank (The),
MTN
1.95%, 1/22/19		1,450		1,457
UBS AG,
MTN
2.38%, 8/14/19		925		931
UnitedHealth Group, Inc.
2.70%, 7/15/20		500		510
US Bank NA
2.00%, 1/24/20		500		502
WEA Finance LLC/Westfield UK & Europe Finance PLC
2.70%, 9/17/19 (a)		600		606
Wells Fargo & Co.
2.15%, 1/15/19		360		362
Wells Fargo Bank NA,
MTN
1.80%, 11/28/18		800		801
Westpac Banking Corp.,
1.65%, 5/13/19		625		621
1.95%, 11/23/18		375		376
				50,560
Industrials (33.2%)
Abbott Laboratories
2.35%, 11/22/19		860		864
AbbVie, Inc.
2.50%, 5/14/20		575		579
Actavis Funding SCS
3.00%, 3/12/20		835		850
American Honda Finance Corp.,
MTN
1.20%, 7/12/19		530		523
2.45%, 9/24/20		550		556

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Amgen, Inc.
2.20%, 5/22/19	$	790	$	796
Anheuser-Busch InBev Finance, Inc.
1.90%, 2/1/19		775		777
AstraZeneca PLC
1.75%, 11/16/18		1,495		1,496
AT&T, Inc.
2.45%, 6/30/20		1,225		1,226
AutoZone, Inc.
1.63%, 4/21/19		740		733
Baidu, Inc.
3.25%, 8/6/18		225		229
BAT International Finance PLC
2.75%, 6/15/20 (a)		450		454
Baxalta, Inc.
2.88%, 6/23/20		550		558
Bayer US Finance LLC
2.38%, 10/8/19 (a)		600		604
Becton Dickinson and Co.,
1.80%, 12/15/17		815		816
2.68%, 12/15/19		300		305
Biogen, Inc.
2.90%, 9/15/20		525		535
BMW US Capital LLC,
1.50%, 4/11/19 (a)		700		695
2.15%, 4/6/20 (a)		400		400
Boston Scientific Corp.
2.65%, 10/1/18		570		576
BP Capital Markets PLC
2.32%, 2/13/20		400		404
Caterpillar Financial Services Corp.,
MTN
1.35%, 5/18/19		790		781
1.80%, 11/13/18		300		300
CBS Corp.
2.30%, 8/15/19		625		628
Celgene Corp.,
2.13%, 8/15/18		755		758
2.88%, 8/15/20		525		534
Chevron Corp.
1.99%, 3/3/20		1,260		1,262
CVS Health Corp.
1.90%, 7/20/18		550		551
Daimler Finance North America LLC,
1.50%, 7/5/19 (a)		500		493
2.30%, 1/6/20 (a)		325		326
2.38%, 8/1/18 (a)		750		756
Danone SA
1.69%, 10/30/19 (a)		875		864
Delta Air Lines, Inc.
2.88%, 3/13/20		575		580

	Face Amount (000)		Value (000)
Deutsche Telekom International Finance BV
6.00%, 7/8/19	$	650	$	705
Dominion Gas Holdings LLC
2.50%, 12/15/19		825		835
EMD Finance LLC
2.40%, 3/19/20 (a)		575		575
Enbridge, Inc.
1.51%, 6/2/17 (b)		175		175
Energy Transfer Partners LP
2.50%, 6/15/18		575		578
Enterprise Products Operating LLC
2.55%, 10/15/19		325		328
Experian Finance PLC
2.38%, 6/15/17 (a)		600		601
Ford Motor Credit Co., LLC,
2.26%, 3/28/19		450		451
2.68%, 1/9/20		725		731
5.00%, 5/15/18		395		408
General Motors Financial Co., Inc.
3.15%, 1/15/20		600		611
Gilead Sciences, Inc.
2.55%, 9/1/20		500		506
Goldcorp, Inc.
2.13%, 3/15/18		520		521
Hutchison Whampoa International 14 Ltd.
1.63%, 10/31/17 (a)		240		240
Hyundai Capital America,
2.00%, 3/19/18 (a)		350		350
2.50%, 3/18/19 (a)		775		778
2.55%, 4/3/20 (a)(c)		175		175
2.60%, 3/19/20 (a)		325		325
Ingersoll-Rand Global Holding Co., Ltd.
2.88%, 1/15/19		335		341
JM Smucker Co. (The)
2.50%, 3/15/20		225		227
John Deere Capital Corp.,
MTN
1.95%, 1/8/19		1,590		1,599
Kinder Morgan, Inc.
3.05%, 12/1/19		650		661
Kroger Co. (The)
2.00%, 1/15/19		750		752
Lockheed Martin Corp.,
1.85%, 11/23/18		555		557
2.50%, 11/23/20		225		227
LVMH Moet Hennessy Louis Vuitton SE
1.63%, 6/29/17 (a)		525		525
Marathon Petroleum Corp.
2.70%, 12/14/18		725		732
McDonald's Corp.,
MTN
2.20%, 5/26/20		550		551

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
McKesson Corp.
2.28%, 3/15/19	$	790	$	796
Mead Johnson Nutrition Co.
3.00%, 11/15/20		175		179
Medtronic, Inc.
2.50%, 3/15/20		550		558
Microsoft Corp.
1.85%, 2/6/20		775		778
Molson Coors Brewing Co.
1.45%, 7/15/19		775		765
Nissan Motor Acceptance Corp.,
2.00%, 3/8/19 (a)		575		575
2.35%, 3/4/19 (a)		570		574
2.65%, 9/26/18 (a)		720		727
Novartis Capital Corp.
1.80%, 2/14/20		475		476
Orange SA
2.75%, 2/6/19		625		633
Reynolds American, Inc.
2.30%, 6/12/18		525		528
Rockwell Collins, Inc.
1.95%, 7/15/19 (c)		800		801
Ryder System, Inc.,
MTN
2.65%, 3/2/20		125		126
Scripps Networks Interactive, Inc.
2.75%, 11/15/19		575		582
Shell International Finance BV
1.38%, 9/12/19		700		692
Siemens Financieringsmaatschappij N.V.,
1.30%, 9/13/19 (a)		900		885
2.15%, 5/27/20 (a)		550		550
Southwest Airlines Co.
2.75%, 11/6/19		600		610
Teva Pharmaceutical Finance Netherlands III BV
1.40%, 7/20/18		810		806
Thomson Reuters Corp.
1.65%, 9/29/17		150		150
Time Warner Cable, Inc.
6.75%, 7/1/18		400		423
Toyota Motor Credit Corp.,
MTN
1.40%, 5/20/19		625		620
1.70%, 2/19/19		725		726
TSMC Global Ltd.
1.63%, 4/3/18 (a)		800		798
Tyson Foods, Inc.
2.65%, 8/15/19		600		607
Union Pacific Corp.
2.25%, 6/19/20		550		553
Verizon Communications, Inc.
2.55%, 6/17/19		1,250		1,265

	Face Amount (000)		Value (000)
Vodafone Group PLC
1.50%, 2/19/18	$	750	$	749
Volkswagen Group of America Finance LLC
2.40%, 5/22/20 (a)		550		548
Walgreens Boots Alliance, Inc.
1.75%, 5/30/18		790		791
				55,745
Utilities (2.7%)
Dominion Resources, Inc.,
Series B
1.60%, 8/15/19		225		222
DTE Energy Co.
1.50%, 10/1/19		425		418
Engie SA
1.63%, 10/10/17 (a)		650		650
Eversource Energy
1.45%, 5/1/18		525		523
Origin Energy Finance Ltd.
3.50%, 10/9/18 (a)		200		203
Public Service Enterprise Group, Inc.
1.60%, 11/15/19		250		248
Sempra Energy
2.40%, 3/15/20		600		603
Southern Co. (The)
2.15%, 9/1/19		725		725
Southern Power Co.,
Series D
1.95%, 12/15/19		675		670
Xcel Energy, Inc.
1.20%, 6/1/17		275		275
				4,537
				110,842
Mortgages — Other (2.7%)
CHL Mortgage Pass-Through Trust
5.50%, 5/25/34		199		203
Fannie Mae Connecticut Avenue Securities,
2.28%, 4/25/29 - 7/25/29 (b)		1,314		1,323
2.43%, 1/25/29 (b)		288		292
3.18%, 10/25/28 (b)		343		347
Freddie Mac Structured Agency Credit Risk Debt Notes,
1.88%, 10/25/27 (b)		119		120
1.98%, 2/25/24 (b)		23		23
2.08%, 12/25/28 (b)		614		617
2.23%, 10/25/28 (b)		130		131
2.43%, 7/25/28 (b)		278		279
2.73%, 9/25/28 (b)		226		227
New Residential Mortgage Loan Trust,
3.75%, 5/28/52 - 8/25/55 (a)(b)		542		556
Sequoia Mortgage Trust
1.60%, 8/20/34 (b)		418		396
				4,514

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Sovereign (0.6%)
Korea Development Bank (The),
1.50%, 1/22/18	$	690	$	689
1.50%, 2/27/20 (b)		320		320
				1,009
U.S. Agency Security (1.4%)
Private Export Funding Corp.
1.45%, 8/15/19		2,300		2,293
U.S. Treasury Security (2.9%)
U.S. Treasury Note
1.25%, 12/31/18		4,846		4,849
Total Fixed Income Securities (Cost $159,245)				159,673
	Shares
Short-Term Investments (5.7%)
Investment Company (2.2%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $3,761)		3,761,492		3,761
	Face Amount (000)
U.S. Treasury Security (0.8%)
U.S. Treasury Bill
0.64%, 7/27/17 (d)(e) (Cost $1,347)	$	1,350		1,347

	Face Amount (000)		Value (000)
Certificates of Deposit (1.7%)
International Banks (1.7%)
Bank of Montreal
1.23%, 5/3/17	$	450	$	450
Credit Suisse AG
1.92%, 9/12/17		760		762
Skandinaviska Enskilda Banken AB
1.26%, 5/26/17		820		820
Sumitomo Mitsui Trust Bank Ltd.
1.50%, 7/20/17		825		826
Total Certificates of Deposit (Cost $2,855)				2,858
Commercial Paper (1.0%)
Insurance (0.5%)
Marsh & McLennan Cos., Inc.
1.22%, 4/13/17 (f)		835		835
International Bank (0.5%)
BPCE SA
1.20%, 7/3/17 (f)		800		797
Total Commercial Paper (Cost $1,632)				1,632
Total Short-Term Investments (Cost $9,595)				9,598
Total Investments (100.9%) (Cost $168,840) (g)(h)				169,271
Liabilities in Excess of Other Assets (–0.9%)				(1,543	)
Net Assets (100.0%)			$	167,728

(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, 2017.

(c)  When-issued security.

(d)  Rate shown is the yield to maturity at March 31, 2017.

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

(f)  The rates shown are the effective yields at the date of purchase.

(g)  Securities are available for collateral in connection with open futures contracts.

(h)  At March 31, 2017, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $780,000 and the aggregate gross unrealized depreciation is approximately $349,000 resulting in net unrealized appreciation of approximately $431,000.

MTN  Medium Term Note.

REMIC  Real Estate Mortgage Investment Conduit.

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2017:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Depreciation (000)
Short:
U.S. Treasury 2 yr. Note		33	$	(7,143	)	Jun-17	$	(1	)
U.S. Treasury 5 yr. Note		223		(26,253	)	Jun-17		(34	)
							$	(35	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		32.9	%
Finance		29.9
Other*		19.3
Asset-Backed Securities		12.2
Short-Term Investments		5.7
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 $33,396,000 with total unrealized depreciation of approximately $35,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Short Duration Income Portfolio

Statement of Assets and Liabilities	March 31, 2017 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $165,079)	$	165,510
Investment in Security of Affiliated Issuer, at Value (Cost $3,761)		3,761
Total Investments in Securities, at Value (Cost $168,840)		169,271
Cash		29
Interest and Paydown Receivable		692
Receivable for Fund Shares Sold		565
Receivable for Investments Sold		175
Due from Adviser		18
Receivable from Affiliate		2
Tax Reclaim Receivable		—	@
Other Assets		84
Total Assets		170,836
Liabilities:
Payable for Investments Purchased		2,541
Payable for Fund Shares Redeemed		263
Payable for Professional Fees		66
Payable for Trustees' Fees and Expenses		54
Payable for Reorganization Expense		49
Payable for Variation Margin on Futures Contracts		39
Payable for Shareholder Services Fees — Class A		14
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Sub Transfer Agency Fees — Class I		7
Payable for Sub Transfer Agency Fees — Class A		5
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Administration Fees		11
Payable for Custodian Fees		6
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		50
Total Liabilities		3,108
Net Assets	$	167,728
Net Assets Consist Of:
Paid-in-Capital	$	405,717
Accumulated Undistributed Net Investment Income		439
Accumulated Net Realized Loss		(238,824	)
Unrealized Appreciation (Depreciation) on:
Investments		431
Futures Contracts		(35	)
Foreign Currency Translations		—	@
Net Assets	$	167,728

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Short Duration Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2017 (000)
CLASS I:
Net Assets	$	97,567
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		11,994,199
Net Asset Value, Offering and Redemption Price Per Share	$	8.13
CLASS A:
Net Assets	$	69,680
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		8,546,810
Net Asset Value, Offering and Redemption Price Per Share	$	8.15
CLASS L:
Net Assets	$	418
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		51,464
Net Asset Value, Offering and Redemption Price Per Share	$	8.13
CLASS C:
Net Assets	$	52
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		6,372
Net Asset Value, Offering and Redemption Price Per Share	$	8.11
CLASS IS:
Net Assets	$	11
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	$	8.13

@  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, 2017 (unaudited)

Short Duration Income Portfolio

Statement of Operations	Six Months Ended March 31, 2017 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	1,777
Dividends from Security of Affiliated Issuer (Note G)		7
Total Investment Income		1,784
Expenses:
Advisory Fees (Note B)		163
Shareholder Services Fees — Class A (Note D)		81
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Professional Fees		77
Administration Fees (Note C)		65
Sub Transfer Agency Fees — Class I		18
Sub Transfer Agency Fees — Class A		13
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Shareholder Reporting Fees		28
Registration Fees		26
Pricing Fees		17
Transfer Agency Fees — Class I (Note E)		3
Transfer Agency Fees — Class A (Note E)		3
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Custodian Fees (Note F)		8
Other Expenses		11
Total Expenses		517
Waiver of Advisory Fees (Note B)		(163	)
Expenses Reimbursed by Adviser (Note B)		(28	)
Rebate from Morgan Stanley Affiliate (Note G)		(3	)
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)		(1	)
Net Expenses		320
Net Investment Income		1,464
Realized Gain:
Investments Sold		677
Futures Contracts		913
Net Realized Gain		1,590
Change in Unrealized Appreciation (Depreciation):
Investments		(1,195	)
Futures Contracts		(32	)
Net Change in Unrealized Appreciation (Depreciation)		(1,227	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		363
Net Increase in Net Assets Resulting from Operations	$	1,827

@  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, 2017 (unaudited)

Short Duration Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,464		$	2,629
Net Realized Gain		1,590			7,127
Net Change in Unrealized Appreciation (Depreciation)		(1,227	)		1,093
Net Increase in Net Assets Resulting from Operations		1,827			10,849
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(951	)		(1,953	)
Class A:
Net Investment Income		(545	)		(590	)
Class L:
Net Investment Income		(3	)		(6	)
Class C:
Net Investment Income		(—	@)		(1	)
Class IS:
Net Investment Income		(—	@)		(—	@)*
Total Distributions		(1,499	)		(2,550	)
Capital Share Transactions:(1)
Class I:
Subscribed		13,983			8,502
Issued due to a tax-free reorganization		—			604
Distributions Reinvested		949			1,951
Redeemed		(16,189	)		(20,237	)
Class A:
Subscribed		21,392			23,263
Issued due to a tax-free reorganization		—			47,269
Distributions Reinvested		535			585
Redeemed		(19,174	)		(9,355	)
Class L:
Exchanged		24			167
Issued due to a tax-free reorganization		—			112
Distributions Reinvested		2			3
Redeemed		(11	)		(339	)
Class C:
Exchanged		—			32
Distributions Reinvested		—	@		1
Redeemed		(44	)		(13	)
Class IS:
Subscribed		—			10	*
Net Increase in Net Assets Resulting from Capital Share Transactions		1,467			52,555
Total Increase in Net Assets		1,795			60,854
Net Assets:
Beginning of Period		165,933			105,079
End of Period (Including Accumulated Undistributed Net Investment Income of $439 and $474)	$	167,728		$	165,933

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Short Duration Income Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		1,724			1,090
Shares Issued due to a tax-free reorganization		—			79
Shares Issued on Distributions Reinvested		117			252
Shares Redeemed		(1,996	)		(2,604	)
Net Decrease in Class I Shares Outstanding		(155	)		(1,183	)
Class A:
Shares Subscribed		2,629			2,949
Shares Issued due to a tax-free reorganization		—			6,163
Shares Issued on Distributions Reinvested		66			75
Shares Redeemed		(2,364	)		(1,199	)
Net Increase in Class A Shares Outstanding		331			7,988
Class L:
Shares Exchanged		3			22
Shares Issued due to a tax-free reorganization		—			15
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(1	)		(44	)
Net Increase (Decrease) in Class L Shares Outstanding		2			(7	)
Class C:
Shares Exchanged		—			5
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(5	)		(2	)
Net Increase (Decrease) in Class C Shares Outstanding		(5	)		3
Class IS:
Shares Subscribed		—			1	*

@  Amount is less than $500.

@@  Amount is less than 500 shares.

*  For the period January 11, 2016 through September 30, 2016.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Short Duration Income Portfolio

	Class I
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			2012
Net Asset Value, Beginning of Period	$	8.12		$	7.71		$	7.81		$	7.76		$	7.80		$	7.71
Income (Loss) from Investment Operations:
Net Investment Income (2)		0.08			0.15			0.13			0.12			0.11			0.15
Net Realized and Unrealized Gain (Loss)		0.01			0.41			(0.12	)		0.04			(0.03	)		0.11
Total from Investment Operations		0.09			0.56			0.01			0.16			0.08			0.26
Distributions from and/or in Excess of:
Net Investment Income		(0.08	)		(0.15	)		(0.11	)		(0.11	)		(0.12	)		(0.17	)
Net Asset Value, End of Period	$	8.13		$	8.12		$	7.71		$	7.81		$	7.76		$	7.80
Total Return (3)		1.10	%(4)(10)		7.43	%(5)		0.06	%		2.06	%		1.09	%		3.35	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	97,567		$	98,603		$	102,808		$	119,059		$	122,958		$	145,387
Ratio of Expenses to Average Net Assets (12)		0.29	%(6)(11)		0.36	%(6)(8)		0.53	%(6)		0.53	%(6)		0.71	%(6)(7)		0.63	%(6)
Ratio of Net Investment Income to Average Net Assets (12)		1.90	%(6)(11)		1.97	%(6)(8)		1.72	%(6)		1.49	%(6)		1.45	%(6)(7)		1.92	%(6)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(9)(11)		0.00	%(9)		0.00	%(9)		0.00	(9)		0.00	%(9)		0.00	%(9)
Portfolio Turnover Rate		23	%(10)		66	%		41	%		60	%		66	%		51	%
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.53	%(11)		0.65	%		0.63	%		0.78	%		0.72	%		N/A
Net Investment Income to Average Net Assets		1.66	%(11)		1.68	%		1.62	%		1.24	%		1.44	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the reimbursement of custodian fees was offset against waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  Performance was positively impacted by approximately 0.50% due to the receipt of proceeds from the settlement of a class action suit involving the Fund'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 0.60%.

(5)  Performance was positively impacted by approximately 5.97% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class I shares would have been approximately 1.46%.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  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.

(8)  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.

(9)  Amount is less than 0.005%.

(10)  Not annualized.

(11)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Short Duration Income Portfolio

	Class A
	Six Months Ended March 31, 2017			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			2012
Net Asset Value, Beginning of Period	$	8.13		$	7.72		$	7.83		$	7.77		$	7.80		$	7.71
Income (Loss) from Investment Operations:
Net Investment Income (2)		0.07			0.14			0.11			0.09			0.09			0.13
Net Realized and Unrealized Gain (Loss)		0.02			0.40			(0.14	)		0.05			(0.01	)		0.11
Total from Investment Operations		0.09			0.54			(0.03	)		0.14			0.08			0.24
Distributions from and/or in Excess of:
Net Investment Income		(0.07	)		(0.13	)		(0.08	)		(0.08	)		(0.11	)		(0.15	)
Net Asset Value, End of Period	$	8.15		$	8.13		$	7.72		$	7.83		$	7.77		$	7.80
Total Return (3)		1.09	%(4)(10)		7.15	%(5)		(0.41	)%		1.78	%		0.84	%		3.22	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	69,680		$	66,821		$	1,761		$	940		$	749		$	145
Ratio of Expenses to Average Net Assets (12)		0.55	%(6)(11)		0.52	%(6)(8)		0.88	%(6)		0.88	%(6)		0.97	%(6)(7)		0.88	%(6)
Ratio of Net Investment Income to Average Net Assets (12)		1.64	%(6)(11)		1.83	%(6)(8)		1.40	%(6)		1.14	%(6)		1.15	%(6)(7)		1.70	%(6)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(9)(11)		0.00	%(9)		0.00	%(9)		0.00	%(9)		0.00	%(9)		0.00	%(9)
Portfolio Turnover Rate		23	%(10)		66	%		41	%		60	%		66	%		51	%
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.78	%(11)		0.80	%		1.22	%		1.10	%		1.00	%		N/A
Net Investment Income to Average Net Assets		1.41	%(11)		1.55	%		1.06	%		0.92	%		1.12	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Per share amount is based on average shares outstanding.

(3)  Calculated based on the net asset value as of the last business day of the period.

(4)  Performance was positively impacted by approximately 0.49% due to the receipt of proceeds from the settlement of a class action suit involving the Fund'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 0.60%.

(5)  Performance was positively impacted by approximately 5.94% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class A shares would have been approximately 1.21%.

(6)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(7)  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.

(8)  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.

(9)  Amount is less than 0.005%.

(10)  Not annualized.

(11)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Short Duration Income Portfolio

	Class L
	Six Months Ended March 31, 2017			Year Ended September 30,												Period from April 27, 2012(2) to
Selected Per Share Data and Ratios	(unaudited)			2016(1)			2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	8.11		$	7.70		$	7.80		$	7.75		$	7.80		$	7.76
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.06			0.11			0.08			0.06			0.07			0.04
Net Realized and Unrealized Gain (Loss)		0.02			0.41			(0.13	)		0.05			(0.03	)		0.04
Total from Investment Operations		0.08			0.52			(0.05	)		0.11			0.04			0.08
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.11	)		(0.05	)		(0.06	)		(0.09	)		(0.04	)
Net Asset Value, End of Period	$	8.13		$	8.11		$	7.70		$	7.80		$	7.75		$	7.80
Total Return (4)		0.97	%(5)(11)		6.79	%(6)		(0.68	)%		1.38	%		0.48	%		1.06	%(11)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	418		$	403		$	439		$	200		$	95		$	10
Ratio of Expenses to Average Net Assets (13)		0.80	%(7)(12)		0.92	%(7)(9)		1.23	%(7)		1.23	%(7)		1.24	%(7)(8)		1.21	%(7)(12)
Ratio of Net Investment Income to Average Net Assets (13)		1.39	%(7)(12)		1.42	%(7)(9)		1.05	%(7)		0.79	%(7)		0.85	%(7)(8)		1.14	%(7)(12)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(10)(12)		0.00	%(10)		0.00	%(10)		0.00	%(10)		0.00	%(10)		0.00	%(10)(12)
Portfolio Turnover Rate		23	%(11)		66	%		41	%		60	%		66	%		51	%(11)
(13) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.57	%(12)		1.83	%		1.80	%		3.48	%		1.34	%		N/A
Net Investment Income (Loss) to Average Net Assets		0.62	%(12)		0.51	%		0.48	%		(1.46	)%		0.75	%		N/A

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class L shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Performance was positively impacted by approximately 0.50% due to the receipt of proceeds from the settlement of a class action suit involving the Fund'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 L shares would have been approximately 0.47%.

(6)  Performance was positively impacted by approximately 5.92% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class L shares would have been approximately 0.87%.

(7)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(8)  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.

(9)  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.

(10)  Amount is less than 0.005%.

(11)  Not Annualized.

(12)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Short Duration Income Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)			Period from April 30, 2015(2) to September 30, 2015
Net Asset Value, Beginning of Period	$	8.09		$	7.69		$	7.78
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.03			0.07			0.02
Net Realized and Unrealized Gain (Loss)		0.02			0.41			(0.09	)
Total from Investment Operations		0.05			0.48			(0.07	)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.08	)		(0.02	)
Net Asset Value, End of Period	$	8.11		$	8.09		$	7.69
Total Return (4)		0.67	%(5)(10)		6.24	%(6)		(0.92	)%(10)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	52		$	95		$	71
Ratio of Expenses to Average Net Assets (12)		1.30	%(7)(11)		1.39	%(7)(8)		1.63	%(7)(11)
Ratio of Net Investment Income to Average Net Assets (12)		0.85	%(7)(11)		0.93	%(7)(8)		0.73	%(7)(11)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(9)(11)		0.00	%(9)		0.00	%(9)(11)
Portfolio Turnover Rate		23	%(10)		66	%		41	%(10)
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		4.06	%(11)		3.95	%		6.73	%(11)
Net Investment Loss to Average Net Assets		(1.91	)%(11)		(1.63	)%		(4.37	)%(11)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

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

(5)  Performance was positively impacted by approximately 0.50% due to the receipt of proceeds from the settlement of a class action suit involving the Fund'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 0.17%.

(6)  Performance was positively impacted by approximately 5.77% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class C shares would have been approximately 0.47%.

(7)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(8)  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.

(9)�� Amount is less than 0.005%.

(10)  Not annualized.

(11)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Short Duration Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Period from January 11, 2016(2) to September 30, 2016(1)
Net Asset Value, Beginning of Period	$	8.11		$	7.65
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.08			0.17
Net Realized and Unrealized Gain		0.02			0.39
Total from Investment Operations		0.10			0.56
Distributions from and/or in Excess of:
Net Investment Income		(0.08	)		(0.10	)
Net Asset Value, End of Period	$	8.13		$	8.11
Total Return (4)		1.24	%(5)(9)		7.42	%(6)(9)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	11		$	11
Ratio of Expenses to Average Net Assets (11)		0.25	%(7)(10)		0.25	%(7)(10)
Ratio of Net Investment Income to Average Net Assets (11)		1.94	%(7)(10)		2.20	%(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(8)(10)		0.00	%(8)(10)
Portfolio Turnover Rate		23	%(9)		66	%(9)
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		15.81	%(10)		17.12	%(10)
Net Investment Loss to Average Net Assets		(13.62	)%(10)		(14.67	)%(10)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Performance was positively impacted by approximately 0.50% due to the receipt of proceeds from the settlement of a class action suit involving the Fund'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 IS shares would have been approximately 0.74%.

(6)  Performance was positively impacted by approximately 5.96% due to the receipt of proceeds from the settlement of class action suits involving the Fund's past holdings. These were one-time settlements, and as a result, the impact on the NAV and consequently the performance will not likely be repeated in the future. Had these settlements not occurred, the total return for Class IS shares would have been approximately 1.46%.

(7)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(8)  Amount is less than 0.005%.

(9)  Not annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust is comprised of nine separate, active funds (individually referred to as a "Fund", collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds 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 Fund seeks above-average total return over a market cycle of three to five years. The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class IS.

The Fund has suspended offering Class L and Class C shares to all investors. Class L and Class C shareholders of the Fund 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 Fund commenced offering Class IS shares.

On January 11, 2016, the Fund 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 Fund 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 Fund at a net asset value of $7.65 for 460 Advisor Class shares of Limited Duration U.S. Government Trust; 6,162,897 Class A shares of the Fund at a net asset value of $7.67 for 5,378,737 Advisor Class shares of Limited Duration U.S. Government Trust; and 14,702 Class L shares of the Fund at a net asset value of $7.65 for 12,798 Advisor Class 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 Fund. For financial reporting purposes, assets received and shares issued by the Fund 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 Fund'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 Fund were approximately $100,541,000. Immediately after the Reorganization, the net assets of the Fund were approximately $148,527,000.

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

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

Assuming the acquisition had been completed on October 1, 2015, the beginning of the annual reporting period of the Fund, the Fund's pro forma results of operations for the period ended September 30, 2016, are as follows:

Net investment income(1)	$	4,042,000
Net realized gain and unrealized gain(2)	$	7,755,000
Net increase in net assets resulting from operations	$	11,797,000

(1) Approximately $2,629,000 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 $8,220,000 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 Fund'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 Trust in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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/vendor approved by the Trust's Board of Trustees (the" Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads, and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges; (2) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (3) 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. (4) 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; and (5) 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.

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

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

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

("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 Fund's investments as of March 31, 2017.

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	$	—		$	2,389	$	—	$	2,389
Agency Bonds — Consumer Discretionary (U.S. Government Guaranteed)		—			574		—		574
Agency Fixed Rate Mortgages		—			3,576		—		3,576
Asset-Backed Securities		—			20,640		—		20,640
Collateralized Mortgage Obligations — Agency Collateral Series		—			6,054		—		6,054
Commercial Mortgage-Backed Securities		—			2,933		—		2,933
Corporate Bonds		—			110,842		—		110,842
Mortgages — Other		—			4,514		—		4,514
Sovereign		—			1,009		—		1,009
U.S. Agency Security		—			2,293		—		2,293
U.S. Treasury Security		—			4,849		—		4,849
Total Fixed Income Securities		—			159,673		—		159,673
Short-Term Investments
Investment Company		3,761			—		—		3,761
U.S. Treasury Security		—			1,347		—		1,347
Certificates of Deposit		—			2,858		—		2,858
Commercial Paper		—			1,632		—		1,632
Total Short-Term Investments		3,761			5,837		—		9,598
Total Assets		3,761			165,510		—		169,271
Liabilities:
Futures Contracts		(35	)		—		—		(35	)
Total	$	3,726		$	165,510	$	—	$	169,236

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of March 31, 2017, the Fund did not have any investments transfer between investment levels.

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

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

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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

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

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) 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 Fund values the foreign shares at the closing exchange price of the local shares.

4.  Derivatives: The Fund 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 Fund'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 Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission rules and regulations, or may cause the Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund'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 Fund used during the period and their associated risks:

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Fund'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 Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

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 Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2017.

	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk	$	(35	)(a)

(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 Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended March 31, 2017 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	913
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(32	)

For the six months ended March 31, 2017, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	33,824,000

5.  When-Issued/Delayed Delivery Securities: The Fund 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 Fund 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 Fund 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 Fund'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

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

increase the impact that gains (losses) may have on the Fund.

6.  Indemnifications: The Trust enters into contracts that contain a variety of indemnifications. The Trust's maximum exposure under these arrangements is unknown. However, the Trust 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 monthly. 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 Fund 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 Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds 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. Included in Realized Gain (Loss) on Investments Sold are proceeds from the one-time settlements of class action lawsuits involving the Fund's past holdings of approximately $786,000, the impact of which is on the Fund's performance is disclosed in the Financial Highlights.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.20% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), 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, 2017, approximately $163,000 of advisory fees were waived and approximately $31,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund'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 Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust 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 Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

The Trust 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 Fund 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 Fund's average daily net assets attributable to Class L shares.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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

Morgan Stanley Services Company Inc. serves as Co-Transfer Agent and provides certain transfer agency services to the Fund with respect to certain direct transactions with the Fund.

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Trust 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, 2017, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $36,291,000 and $25,304,000, respectively. For the six months ended March 31, 2017, purchases and sales of long-term U.S. Government securities were approximately $6,786,000 and $10,637,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due

to its investment in the Liquidity Funds. For the six months ended March 31, 2017, advisory fees paid were reduced by approximately $3,000 relating to the Fund's investment in the Government Portfolio.

A summary of the Fund's transactions in shares of the Liquidity Funds during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2017 (000)
$	5,928	$	31,158	$	33,325	$	7	$	3,761

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2017, the Fund did not engage in any cross-trade transactions.

The Fund 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 Fund.

H. Federal Income Taxes: It is the Fund'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 Fund 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.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund 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, 2016, 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 2016 and 2015 was as follows:

2016 Distributions Paid From: Ordinary Income (000)		2015 Distributions Paid From: Ordinary Income (000)
$	2,550	$	1,494

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, 2016:

Accumulated Undistributed Net Investment Income (000)			Accumulated Net Realized Loss (000)			Paid-in- Capital (000)
$	(111	)	$	(12,199	)	$	12,310

At September 30, 2016, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	533	$	—

At September 30, 2016, the Fund had available for federal income tax purposes unused capital losses, of approximately $1,410,000*, of which $4,307,000* will not expire.

In addition, at September 30, 2016, the Fund had available for federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)*		Expiration
$	200,657	September 30, 2017
	34,040	September 30, 2018

* These amounts include capital losses acquired from Limited Duration U.S. Government Trust that may be subject to limitation under IRC Section 382 in future years.

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 Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders. During the year ended September 30, 2016, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $7,362,000.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $150,000,000 committed, unsecured revolving line of credit facility (the "facility") with State Street. This facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or one month libor rate plus a spread. The facility also has a commitment fee of 0.25% per annum based on the unused portion of the facility. During the six months ended March 31, 2017, the Fund did not have any borrowings under the facility.

J. Other: At March 31, 2017, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 84.3%.

K. Accounting Pronouncement: In October 2016, the Securities and Exchange Commission ("SEC") issued a new

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the Fund's net assets or results of operations. Although still evaluating the potential impacts of the Investment Company Reporting Modernization to the Fund, management expects that the impact of the Fund's adoption will be limited to additional financial statement disclosures.

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited)

MORGAN STANLEY INVESTMENT MANAGEMENT INC.
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

We are required by federal law to provide you with a copy of our privacy policy annually. This policy applies to current and former individual investors in funds managed or sponsored by Morgan Stanley Investment Management Inc. ("MSIM") as well as current and former individual clients of MSIM. This policy is not applicable to partnerships, corporations, trusts or other non-individual clients or investors. Please note that we may amend this policy at any time, and will inform you of any changes as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Notice describes what non-public personal information we collect about you, why 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 to affiliated companies in the Morgan Stanley family of companies ("other Morgan Stanley companies"). It also discloses how you may limit use of certain shared information for marketing purposes by other Morgan Stanley branded companies. Throughout this policy, we refer to the non-public information that personally identifies you or your accounts as "personal information."

1.  WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?

We obtain personal information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources.

For example:

•  We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through subscription documents, 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.

•  If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies." Please consult the Terms of Use of these sites for more details.

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

We may disclose personal information we collect about you to other Morgan Stanley companies and to non-affiliated third parties.

a. Information We Disclose to Other Morgan Stanley Companies.

We may disclose personal information to other Morgan Stanley companies for a variety of reasons, including to manage your account(s) effectively, to service and process your transactions, to let you know about products and services offered by us and other Morgan Stanley companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from other Morgan Stanley companies are developed under conditions designed to safeguard your personal information.

30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

b. Information We Disclose to Non-affiliated Third Parties.

We do not disclose personal information that we collect about you to non-affiliated third parties except to those who provide marketing services on our behalf, to financial institutions with whom we have joint marketing agreements, and as otherwise required or permitted by law. For example, we may disclose personal information to nonaffiliated third parties for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with a non-affiliated third party, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information 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 to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information.

4.  HOW CAN YOU LIMIT THE SHARING OF CERTAIN TYPES OF PERSONAL INFORMATION WITH OTHER MORGAN STANLEY COMPANIES?

We offer you choices as to whether we share with other Morgan Stanley companies the personal information that was collected to determine your eligibility for products and services you request ("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 other Morgan Stanley companies ("opt-out"), we may still share personal information, including eligibility information, with those companies in circumstances excluded from the opt-out under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN TYPES OF PERSONAL INFORMATION BY OTHER MORGAN STANLEY COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit other Morgan Stanley branded 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 Other Morgan Stanley Companies from using personal information about you that we may share with them for marketing their products and services to you, Other Morgan Stanley Companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the Other Morgan Stanley Company has its own relationship with you.

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

If you wish to limit our sharing of eligibility information about you with other Morgan Stanley companies or other Morgan Stanley 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

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

Your written 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 if 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.

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 have a joint account, your direction for us not to share this information with other Morgan Stanley companies and for those other Morgan Stanley companies not to use your personal information for marketing will be applied to all account holders on that 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 Morgan Stanley products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

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

If, at any time in the future, an affiliated company becomes a non-affiliated 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 non-affiliated 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 non-affiliated 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 affiliated companies and non-affiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with non-affiliated third parties or other Morgan Stanley companies unless you provide us with your written consent to share such information ("opt-in").

If you wish to receive offers for investment products and services offered by or through other Morgan Stanley companies, please notify us in writing at the following address:

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

Your authorization should include your name, address, telephone number and account number(s) to which the opt-in applies and should not be sent with any other correspondence. In order to process your authorization, we require that the authorization be provided by you directly and not through a third party.

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 information with our affiliates to comply with California privacy laws that apply to us.

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Trustee and Officer Information (unaudited)

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

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

Perkins Coie LLP
30 Rockefeller Plaza
New York, New York 10112

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, 100 F Street, NE, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust 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 or summary prospectus of the applicable Fund of Morgan Stanley Institutional Fund Trust, which describes in detail the Fund'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 Fund, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

33

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

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

© 2017 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTLDSAN
1784122 EXP 05.31.18

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Strategic Income Portfolio

Semi-Annual Report

March 31, 2017

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	10
Statement of Operations	12
Statements of Changes in Net Assets	13
Financial Highlights	14
Notes to Financial Statements	18
Privacy Notice	28
Trustee and Officer Information	31

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund 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 Fund'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 Fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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 "Fund") 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 2017

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Expense Example (unaudited)

Strategic Income Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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, 2017 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund'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 Fund 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 10/1/16		Actual Ending Account Value 3/31/17		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	$	1,033.60	$	1,020.00	$	5.02	$	4.99		0.99	%
Strategic Income Portfolio Class A		1,000.00		1,031.30		1,018.30		6.74		6.69		1.33
Strategic Income Portfolio Class C		1,000.00		1,028.00		1,014.51		10.57		10.50		2.09
Strategic Income Portfolio Class IS		1,000.00		1,033.80		1,020.24		4.77		4.73		0.94

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (89.9%)
Asset-Backed Securities (12.4%)
Bear Stearns Asset-Backed Securities I Trust,
1.30%, 3/25/37 (a)	$	86	$	54
1.33%, 5/25/37 (a)		97		62
BNC Mortgage Loan Trust,
1.14%, 3/25/37 (a)		100		78
Carrington Mortgage Loan Trust,
1.20%, 1/25/37 (a)		100		69
Countrywide Asset-Backed Certificates,
4.82%, 7/25/36		127		106
Credit Suisse First Boston Mortgage Securities Corp.,
1.60%, 1/25/32 (a)		56		50
CWABS Asset-Backed Certificates Trust,
4.63%, 10/25/46 (a)		92		65
Ellington Loan Acquisition Trust,
2.08%, 5/25/37 (a)(b)		100		94
GSAA Home Equity Trust,
6.00%, 11/25/36		31		19
GSAMP Trust,
1.30%, 3/25/46 (a)		100		88
Lehman ABS Manufactured Housing Contract Trust,
3.70%, 4/15/40		16		16
Mastr Asset Backed Securities Trust,
1.03%, 8/25/36 (a)		68		33
1.22%, 8/25/36 (a)		70		35
Nationstar Home Equity Loan Trust,
1.23%, 4/25/37 (a)		100		97
Ownit Mortgage Loan Trust,
1.25%, 3/25/37 (a)		61		51
RAMP Trust,
1.30%, 11/25/35 (a)		59		51
RMAT LLC,
4.83%, 6/25/35 (b)		48		47
Truman Capital Mortgage Loan Trust,
2.48%, 1/25/34 (a)(b)		66		66
3.55%, 11/25/31 (a)(b)		59		58
VOLT XXXIII LLC,
4.25%, 3/25/55 (b)		99		98
				1,237
Collateralized Mortgage Obligation — Agency Collateral Series (0.1%)
Government National Mortgage Association,
IO
0.81%, 8/20/58 (a)		504		14
Commercial Mortgage-Backed Securities (4.0%)
COMM Mortgage Trust,
2.87%, 2/10/48 (b)		100		78
GS Mortgage Securities Trust,
4.33%, 2/10/48 (a)(b)		100		78
HILT Mortgage Trust,
2.77%, 7/15/29 (a)(b)		100		96

	Face Amount (000)		Value (000)
JPMBB Commercial Mortgage Securities Trust,
3.84%, 2/15/48 (a)(b)	$	100	$	79
Wells Fargo Commercial Mortgage Trust,
4.10%, 5/15/48 (a)		75		63
				394
Corporate Bonds (41.0%)
Finance (17.9%)
ABN Amro Bank N.V.,
6.38%, 4/27/21	EUR	100		130
Ally Financial, Inc.,
4.13%, 3/30/20	$	25		25
Assicurazioni Generali SpA,
7.75%, 12/12/42 (a)	EUR	100		129
Banco Santander SA,
6.25%, 3/12/19 (a)(c)		100		106
Bank of America Corp.,
MTN
4.25%, 10/22/26	$	50		51
BNP Paribas SA,
3.80%, 1/10/24 (b)		250		249
BPCE SA,
5.15%, 7/21/24 (b)		200		206
Citigroup, Inc.,
5.50%, 9/13/25		75		82
Colony NorthStar, Inc.,
5.00%, 4/15/23		25		25
Commonwealth Bank of Australia,
1.75%, 11/7/19 (b)		25		25
Cooperatieve Rabobank UA,
2.50%, 5/26/26 (a)	EUR	100		112
CTR Partnership LP/CareTrust Capital Corp.,
5.88%, 6/1/21	$	25		26
Discover Financial Services,
3.95%, 11/6/24		25		25
KCG Holdings, Inc.,
6.88%, 3/15/20 (b)		25		26
Kennedy-Wilson, Inc.,
5.88%, 4/1/24		25		26
Lloyds Bank PLC,
6.50%, 3/24/20	EUR	50		62
Muenchener Rueckversicherungs- Gesellschaft AG in Muenchen,
6.00%, 5/26/41 (a)		100		127
Nationwide Building Society,
4.13%, 3/20/23 (a)		100		110
Shutterfly, Inc.,
0.25%, 5/15/18	$	25		25
Spirit Realty Capital, Inc.,
3.75%, 5/15/21		25		26
Starwood Property Trust, Inc.,
4.55%, 3/1/18		50		55
Synchrony Financial,
2.60%, 1/15/19		25		25

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Vonovia Finance BV,
4.00%, 12/17/21 (a)(c)	EUR	100	$	112
				1,785
Industrials (23.1%)
Acadia Healthcare Co., Inc.,
5.13%, 7/1/22	$	5		5
Akamai Technologies, Inc.,
0.00%, 2/15/19		50		50
Apex Tool Group LLC,
7.00%, 2/1/21 (b)		25		23
Aramark Services, Inc.,
4.75%, 6/1/26		25		25
AT&T, Inc.,
4.50%, 3/9/48		6		5
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.,
5.50%, 4/1/23		25		24
Ball Corp.,
4.00%, 11/15/23		25		25
CalAtlantic Group, Inc.,
0.25%, 6/1/19		50		47
Charter Communications Operating LLC/ Charter Communications Operating Capital,
4.91%, 7/23/25		50		53
Citrix Systems, Inc.,
0.50%, 4/15/19		50		63
Constellium N.V.,
4.63%, 5/15/21	EUR	100		105
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		25
Ctrip.com International Ltd.,
1.25%, 10/15/18		25		33
Delta Air Lines, Inc.,
2.88%, 3/13/20		25		25
DISH DBS Corp.,
5.00%, 3/15/23		25		25
Dollar Tree, Inc.,
5.75%, 3/1/23		25		27
Energy Transfer Partners LP,
2.50%, 6/15/18		75		75
First Data Corp.,
5.38%, 8/15/23 (b)		25		26
General Motors Financial Co., Inc.,
4.30%, 7/13/25		50		51
Global Partners LP/GLP Finance Corp.,
7.00%, 6/15/23		25		25
Gray Television, Inc.,
5.13%, 10/15/24 (b)		25		25

	Face Amount (000)		Value (000)
Hanesbrands, Inc.,
4.63%, 5/15/24 (b)	$	9	$	9
4.88%, 5/15/26 (b)		16		16
Harland Clarke Holdings Corp.,
6.88%, 3/1/20 (b)		25		25
HCA, Inc.,
4.75%, 5/1/23		25		26
Hilcorp Energy I LP/Hilcorp Finance Co.,
5.75%, 10/1/25 (b)		15		15
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp.,
6.75%, 11/15/21 (b)		25		26
KFC Holding Co./Pizza Hut Holdings LLC/ Taco Bell of America LLC,
5.25%, 6/1/26 (b)		25		25
Lamar Media Corp.,
5.00%, 5/1/23		25		26
Lamb Weston Holdings, Inc.,
4.88%, 11/1/26 (b)		25		26
Lear Corp.,
5.25%, 1/15/25		50		53
Lions Gate Entertainment Corp.,
5.88%, 11/1/24 (b)		25		26
Live Nation Entertainment, Inc.,
2.50%, 5/15/19		25		27
Lundin Mining Corp.,
7.50%, 11/1/20 (b)		25		27
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC,
5.50%, 4/15/25 (b)		25		23
MasTec, Inc.,
4.88%, 3/15/23		25		25
MDC Partners, Inc.,
6.50%, 5/1/24 (b)		25		24
MGM Resorts International,
6.00%, 3/15/23		25		27
Michael Baker International LLC/CDL Acquisition Co., Inc.,
8.25%, 10/15/18 (b)		25		25
Midcontinent Communications & Midcontinent Finance Corp.,
6.25%, 8/1/21 (b)		25		26
MPLX LP,
4.00%, 2/15/25		25		25
MSCI, Inc.,
4.75%, 8/1/26 (b)		9		9
ON Semiconductor Corp.,
1.00%, 12/1/20		50		55
OPE KAG Finance Sub, Inc.,
7.88%, 7/31/23 (b)		25		26
PetSmart, Inc.,
7.13%, 3/15/23 (b)		25		24
Playa Resorts Holding BV,
8.00%, 8/15/20 (b)		5		5

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Post Holdings, Inc.,
5.00%, 8/15/26 (b)	$	25	$	24
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp.,
6.13%, 8/15/21 (b)		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		25
SBA Communications Corp.,
4.88%, 9/1/24 (b)		25		25
Select Medical Corp.,
6.38%, 6/1/21		50		51
Shell International Finance BV,
1.38%, 9/12/19		50		49
Solvay Finance SA,
5.12%, 6/2/21 (a)(c)	EUR	100		117
Sprint Communications, Inc.,
6.00%, 11/15/22	$	25		26
Standard Industries, Inc.,
5.38%, 11/15/24 (b)		50		51
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.,
5.50%, 9/15/24 (b)		25		25
Telefonica Europe BV,
5.88%, 3/31/24 (a)(c)	EUR	100		117
Tenet Healthcare Corp.,
6.00%, 10/1/20	$	25		26
Tesla, Inc.,
0.25%, 3/1/19		50		50
Teva Pharmaceutical Finance Netherlands III BV,
2.20%, 7/21/21		25		24
3.15%, 10/1/26		25		23
TMS International Corp.,
7.63%, 10/15/21 (b)		10		10
Tops Holding LLC/Tops Markets II Corp.,
8.00%, 6/15/22 (b)		25		21
Transurban Finance Co., Pty Ltd.,
3.38%, 3/22/27 (b)		25		24
Viavi Solutions, Inc.,
0.63%, 8/15/33		25		28
Whole Foods Market, Inc.,
5.20%, 12/3/25		25		27
Wolverine World Wide, Inc.,
5.00%, 9/1/26 (b)		25		24
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
5.50%, 3/1/25 (b)		25		25
Zachry Holdings, Inc.,
7.50%, 2/1/20 (b)		25		26
				2,305
				4,090

	Face Amount (000)		Value (000)
Mortgages — Other (9.7%)
Alternative Loan Trust,
3.53%, 3/25/35 (a)	$	79	$	73
PAC
1.43%, 10/25/36 (a)		64		37
Banc of America Alternative Loan Trust,
1.43%, 11/25/36 (a)		53		37
5.71%, 10/25/36 (a)		98		58
Bear Stearns Structured Products, Inc. Trust,
3.50%, 1/26/36 (a)		34		29
Bear Stearns Trust,
3.02%, 2/25/36 (a)		50		42
3.20%, 4/25/35 (a)		49		41
3.39%, 3/25/36 (a)		146		112
Citigroup Mortgage Loan Trust,
3.23%, 6/25/36 (a)		37		29
First Horizon Mortgage Pass-Through Trust,
6.25%, 11/25/36		20		19
Grifonas Finance PLC,
0.04%, 8/28/39 (a)	EUR	47		40
GSR Mortgage Loan Trust,
3.86%, 12/25/34 (a)	$	91		88
HarborView Mortgage Loan Trust,
1.17%, 1/19/38 (a)		31		27
IndyMac INDX Mortgage Loan Trust,
3.02%, 12/25/34 (a)		43		40
JP Morgan Mortgage Trust,
3.15%, 6/25/37 (a)		40		35
Lehman Mortgage Trust,
6.00%, 7/25/36 - 6/25/37		134		102
Luminent Mortgage Trust,
1.21%, 5/25/37 (a)		105		85
Lusitano Mortgages No. 5 PLC,
0.00%, 7/15/59 (a)	EUR	48		42
MASTR Alternative Loan Trust,
6.25%, 7/25/36	$	42		36
				972
Sovereign (16.3%)
Australia Government Bond,
2.75%, 11/21/27	AUD	70		53
3.25%, 4/21/25		180		144
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/21 - 1/1/25	BRL	821		264
Cyprus Government International Bond,
3.88%, 5/6/22	EUR	40		45
Hungary Government International Bond,
5.38%, 3/25/24	$	80		89
Italy Buoni Poliennali Del Tesoro,
0.65%, 11/1/20	EUR	85		91
Mexican Bonos,
5.75%, 3/5/26	MXN	4,000		196
Series M
6.50%, 6/10/21		3,500		185

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Sovereign (cont'd)
Petroleos Mexicanos,
6.50%, 3/13/27 (b)	$	60	$	65
Portugal Obrigacoes do Tesouro OT,
2.88%, 7/21/26 (b)	EUR	25		26
4.13%, 4/14/27 (b)		60		65
5.65%, 2/15/24 (b)		40		49
Russian Federal Bond - OFZ,
7.00%, 8/16/23	RUB	5,900		100
South Africa Government Bond,
8.00%, 1/31/30	ZAR	900		61
Spain Government Bond,
0.75%, 7/30/21	EUR	175		191
				1,624
U.S. Treasury Securities (6.4%)
U.S. Treasury Bond,
2.50%, 2/15/45	$	142		128
U.S. Treasury Note,
2.13%, 5/15/25		520		512
				640
Total Fixed Income Securities (Cost $8,880)				8,971
	Shares
Short-Term Investments (9.0%)
Investment Company (5.1%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $509)		509,340		509

	Face Amount (000)		Value (000)
U.S. Treasury Securities (3.9%)
U.S. Treasury Bill
0.64%, 7/27/17 (d)(e)	$	38	$	38
U.S. Treasury Note
0.88%, 5/15/17		350		350
Total U.S. Treasury Securities (Cost $388)				388
Total Short-Term Investments (Cost $897)				897
Total Investments (98.9%) (Cost $9,777) (f)(g)				9,868
Other Assets in Excess of Liabilities (1.1%)				108
Net Assets (100.0%)			$	9,976

(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, 2017.

(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, 2017.

(d)  Rate shown is the yield to maturity at March 31, 2017.

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

(f)  Securities are available for collateral in connection with open foreign currency forward exchange contracts, futures contracts and swap agreements.

(g)  At March 31, 2017, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $274,000 and the aggregate gross unrealized depreciation is approximately $183,000 resulting in net unrealized appreciation of approximately $91,000.

IO  Interest Only.

MTN  Medium Term Note.

OFZ  Obilgatsyi Federal'novo Zaima (Russian Federal Loan Obligation)

PAC  Planned Amortization Class.

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at March 31, 2017:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Australia and New Zealand Banking Group	AUD	162	$	125	4/5/17	$	1
Australia and New Zealand Banking Group	CAD	60	$	46	4/5/17		—	@
Australia and New Zealand Banking Group	EUR	1,885	$	1,996	4/5/17		(15	)
Australia and New Zealand Banking Group	$	4	EUR	3	4/5/17		(—	@)
Australia and New Zealand Banking Group	$	121	EUR	111	4/5/17		(2	)
Barclays Bank PLC	AUD	70	$	54	4/5/17		—	@
Barclays Bank PLC	$	4	EUR	4	4/5/17		(—	@)
HSBC Bank PLC	GBP	39	EUR	46	4/5/17		—	@
HSBC Bank PLC	GBP	39	$	49	4/5/17		(—	@)
HSBC Bank PLC	JPY	11,048	$	98	4/5/17		(1	)
HSBC Bank PLC	PLN	551	$	136	4/5/17		(3	)
HSBC Bank PLC	$	113	EUR	107	4/5/17		1
HSBC Bank PLC	$	49	EUR	46	4/5/17		—	@
HSBC Bank PLC	$	75	HUF	21,418	4/5/17		(1	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

Foreign Currency Forward Exchange Contracts (cont'd):

Counterparty	Contracts to Deliver (000)		In Exchange For (000)			Delivery Date	Unrealized Appreciation (Depreciation) (000)
HSBC Bank PLC	$	7	MXN	141		4/5/17	$	—	@
HSBC Bank PLC	$	148	PLN	600		4/5/17		4
JPMorgan Chase Bank NA	BRL	296	$	96		4/5/17		1
JPMorgan Chase Bank NA	HUF	1,339	$	5		4/5/17		—	@
JPMorgan Chase Bank NA	$	95	BRL	296		4/5/17		(—	@)
JPMorgan Chase Bank NA	$	109	EUR	103		4/5/17		1
JPMorgan Chase Bank NA	$	50	JPY	5,500		4/5/17		(—	@)
UBS AG	AUD	94	$	71		4/5/17		(1	)
UBS AG	EUR	46	SEK	440		4/5/17		(—	@)
UBS AG	EUR	1	$	1		4/5/17		(—	@)
UBS AG	EUR	103	$	108		4/5/17		(2	)
UBS AG	HUF	20,079	$	69		4/5/17		(—	@)
UBS AG	SEK	1	$	—	@	4/5/17		—	@
UBS AG	$	99	SEK	888		4/5/17		—	@
UBS AG	$	49	SEK	440		4/5/17		—	@
Australia and New Zealand Banking Group	BRL	182	$	58		5/5/17		1
JPMorgan Chase Bank NA	BRL	296	$	94		5/5/17		—	@
JPMorgan Chase Bank NA	RUB	2,803	$	48		5/5/17		(1	)
JPMorgan Chase Bank NA	$	100	INR	6,500		5/5/17		—	@
Australia and New Zealand Banking Group	MXN	734	$	39		5/8/17		(—	@)
HSBC Bank PLC	MXN	1,450	$	75		5/8/17		(2	)
HSBC Bank PLC	$	49	ZAR	633		5/8/17		(2	)
HSBC Bank PLC	$	48	ZAR	600		5/8/17		(3	)
HSBC Bank PLC	ZAR	854	$	67		5/8/17		4
JPMorgan Chase Bank NA	MXN	1,445	$	75		5/8/17		(2	)
JPMorgan Chase Bank NA	$	9	MXN	172		5/8/17		—	@
JPMorgan Chase Bank NA	ZAR	285	$	21		5/8/17		—	@
UBS AG	$	50	GBP	40		5/8/17		—	@
							$	(22	)

Futures Contracts:

The Fund had the following futures contracts open at March 31, 2017:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Depreciation (000)
Short:
German Euro BOBL (Germany)		4	$	(562	)	Jun-17	$	(—	@)
German Euro Bund (Germany)		4		(689	)	Jun-17		(3	)
U.S. Treasury 10 yr. Note (United States)		6		(747	)	Jun-17		(2	)
U.S. Treasury 10 yr. Ultra Long Bond (United States)		8		(1,071	)	Jun-17		(5	)
U.S. Treasury 2 yr. Note (United States)		2		(433	)	Jun-17		(—	@)
U.S. Treasury 5 yr. Note (United States)		8		(942	)	Jun-17		(2	)
U.S. Treasury Ultra Bond (United States)		1		(161	)	Jun-17		(1	)
							$	(13	)

Credit Default Swap Agreements:

The Fund had the following credit default swap agreements open at March 31, 2017:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Depreciation (000)			Value (000)			Credit Rating of Reference Obligation†
Deutsche Bank AG CMBX.NA.BB.60	Sell	$	13		5.00	%	5/11/63	$	—	@	$	(3	)	$	(3	)	NR
Goldman Sachs International CMBX.NA.BB.60	Sell		20		5.00		5/11/63		(—	@)		(4	)		(4	)	NR

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

Credit Default Swap Agreements (cont'd):

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Depreciation (000)			Value (000)			Credit Rating of Reference Obligation†
Goldman Sachs International CMBX.NA.BBB.60	Sell	$	200		3.00	%	5/11/63	$	(13	)	$	(13	)	$	(26	)	NR
Goldman Sachs International CMBX.NA.BBB.60	Sell		27		3.00		5/11/63		(1	)		(2	)		(3	)	NR
Goldman Sachs International CMBX.NA.BBB.60	Sell		64		3.00		5/11/63		(2	)		(6	)		(8	)	NR
Goldman Sachs International CMBX.NA.BBB.60	Sell		109		3.00		5/11/63		(5	)		(9	)		(14	)	NR
Morgan Stanley & Co., LLC* CDX.NA.HY.26	Buy		198		5.00		6/20/21		(9	)		(8	)		(17	)	NR
		$	631					$	(30	)	$	(45	)	$	(75	)

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 31, 2017:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.86	%	12/8/21	$	100	$	—	@
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.07		12/21/21		100		(1	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.28		12/8/26		160		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.48		12/21/26		110		(1	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.59		12/8/46		22		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.74		12/21/46		50		(1	)
									$	(1	)

@    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.

LIBOR  London Interbank Offered Rate.

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CAD  —  Canadian Dollar

EUR  —  Euro

GBP  —  British Pound

HUF  —  Hungarian Forint

INR  —  Indian Rupee

JPY  —  Japanese Yen

MXN  —  Mexican Peso

PLN  —  Polish Zloty

RUB  —  Russian Ruble

SEK  —  Swedish Krona

ZAR  —  South African Rand

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		23.4	%
Finance		18.1
Sovereign		16.4
Asset-Backed Securities		12.5
Mortgages — Other		9.9
Short-Term Investments		9.1
U.S. Treasury Securities		6.5
Other**		4.1
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 $4,605,000 with total unrealized depreciation of approximately $13,000. Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $22,000 and does not include open swap agreements with net unrealized depreciation of approximately $46,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Strategic Income Portfolio

Statement of Assets and Liabilities	March 31, 2017 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $9,268)	$	9,359
Investment in Security of Affiliated Issuer, at Value (Cost $509)		509
Total Investments in Securities, at Value (Cost $9,777)		9,868
Foreign Currency, at Value (Cost $6)		6
Interest and Paydown Receivable		87
Receivable for Variation Margin on Futures Contracts		55
Due from Adviser		46
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		13
Tax Reclaim Receivable		1
Premium Paid on Open Swap Agreements		—	@
Receivable from Affiliate		—	@
Other Assets		70
Total Assets		10,146
Liabilities:
Unrealized Depreciation on Swap Agreements		37
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		35
Payable for Professional Fees		35
Premium Received on Open Swap Agreements		21
Payable for Custodian Fees		18
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class IS		1
Payable for Administration Fees		1
Payable for Variation Margin on Swap Agreements		1
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		18
Total Liabilities		170
Net Assets	$	9,976
Net Assets Consist Of:
Paid-in-Capital	$	10,056
Accumulated Net Investment Loss		(23	)
Accumulated Net Realized Loss		(67	)
Unrealized Appreciation (Depreciation) on:
Investments		91
Futures Contracts		(13	)
Swap Agreements		(46	)
Foreign Currency Forward Exchange Contracts		(22	)
Foreign Currency Translations		(—	@)
Net Assets	$	9,976

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Strategic Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 31, 2017 (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	$	9.91
CLASS A:
Net Assets	$	41
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,132
Net Asset Value, Redemption Price Per Share	$	9.90
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.44
Maximum Offering Price Per Share	$	10.34
CLASS C:
Net Assets	$	36
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		3,641
Net Asset Value, Offering and Redemption Price Per Share	$	9.86
CLASS IS:
Net Assets	$	9,889
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	$	9.91

@  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, 2017 (unaudited)

Strategic Income Portfolio

Statement of Operations	Six Months Ended March 31, 2017 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	156
Dividends from Security of Affiliated Issuer (Note G)		2
Total Investment Income		158
Expenses:
Professional Fees		56
Custodian Fees (Note F)		24
Advisory Fees (Note B)		20
Registration Fees		17
Pricing Fees		11
Shareholder Reporting Fees		5
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
Trustees' Fees and Expenses		2
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Sub Transfer Agency Fees — Class A		—	@
Sub Transfer Agency Fees — Class C		—	@
Other Expenses		8
Total Expenses		151
Expenses Reimbursed by Adviser (Note B)		(79	)
Waiver of Advisory Fees (Note B)		(20	)
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)		(1	)
Net Expenses		47
Net Investment Income		111
Realized Gain (Loss):
Investments Sold		(128	)
Foreign Currency Forward Exchange Contracts		207
Foreign Currency Transactions		(3	)
Futures Contracts		187
Swap Agreements		2
Net Realized Gain		265
Change in Unrealized Appreciation (Depreciation):
Investments		19
Foreign Currency Forward Exchange Contracts		(34	)
Foreign Currency Translations		2
Futures Contracts		(14	)
Swap Agreements		(22	)
Net Change in Unrealized Appreciation (Depreciation)		(49	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		216
Net Increase in Net Assets Resulting from Operations	$	327

@  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, 2017

Strategic Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2017 (unaudited) (000)			Year Ended September 30, 2016 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	111		$	220
Net Realized Gain (Loss)		265			(287	)
Net Change in Unrealized Appreciation (Depreciation)		(49	)		340
Net Increase in Net Assets Resulting from Operations		327			273
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(—	@)		(—	@)
Class A:
Net Investment Income		(—	@)		(—	@)
Class C:
Net Investment Income		(—	@)		(—	@)
Class IS:
Net Investment Income		(105	)		(379	)
Total Distributions		(105	)		(379	)
Capital Share Transactions:(1)
Class A:
Subscribed		—			37
Distributions Reinvested		—	@		—
Redeemed		—			(7	)
Class C:
Subscribed		—			25
Distributions Reinvested		—	@		—
Net Increase in Net Assets Resulting from Capital Share Transactions		—	@		55
Total Increase (Decrease) in Net Assets		222			(51	)
Net Assets:
Beginning of Period		9,754			9,805
End of Period (Including Accumulated Net Investment Loss of $(23) and $(29))	$	9,976		$	9,754
(1)   Capital Share Transactions:
Class A:
Shares Subscribed		—			4
Shares Issued on Distributions Reinvested		—	@@		—
Shares Redeemed		—			(1	)
Net Increase in Class A Shares Outstanding		—	@@		3
Class C:
Shares Subscribed		—			3
Shares Issued on Distributions Reinvested		—	@@		—
Net Increase in Class C Shares Outstanding		—	@@		3

@  Amount is less than $500.

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Strategic Income Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)			Period from December 30, 2014(2) to September 30, 2015
Net Asset Value, Beginning of Period	$	9.69		$	9.79		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.11			0.22			0.14
Net Realized and Unrealized Gain (Loss)		0.21			0.06			(0.28	)
Total from Investment Operations		0.32			0.28			(0.14	)
Distributions from and/or in Excess of:
Net Investment Income		(0.10	)		(0.38	)		(0.07	)
Net Asset Value, End of Period	$	9.91		$	9.69		$	9.79
Total Return (4)		3.36	%(6)		2.91	%		(1.39	)%(6)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10		$	10
Ratio of Expenses to Average Net Assets (8)		0.99	%(5)(7)		0.99	%(5)		0.98	%(5)(7)
Ratio of Net Investment Income to Average Net Assets (8)		2.22	%(5)(7)		2.25	%(5)		1.81	%(5)(7)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(7)		0.01	%		0.02	%(7)
Portfolio Turnover Rate		41	%(6)		47	%		39	%(6)
(8) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		19.08	%(7)		7.28	%		17.80	%(7)
Net Investment Loss to Average Net Assets		(15.87	)%(7)		(4.04	)%		(15.01	)%(7)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class I shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the reimbursement of custodian fees was offset against waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Operations.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Strategic Income Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)			Period from December 30, 2014(2) to September 30, 2015
Net Asset Value, Beginning of Period	$	9.69		$	9.79		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.10			0.18			0.11
Net Realized and Unrealized Gain (Loss)		0.20			0.06			(0.27	)
Total from Investment Operations		0.30			0.24			(0.16	)
Distributions from and/or in Excess of:
Net Investment Income		(0.09	)		(0.34	)		(0.05	)
Net Asset Value, End of Period	$	9.90		$	9.69		$	9.79
Total Return (4)		3.13	%(6)		2.51	%		(1.56	)%(6)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	41		$	40		$	10
Ratio of Expenses to Average Net Assets (8)		1.33	%(5)(7)		1.34	%(5)		1.33	%(5)(7)
Ratio of Net Investment Income to Average Net Assets (8)		1.98	%(5)(7)		1.86	%(5)		1.46	%(5)(7)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(7)		0.01	%		0.02	%(7)
Portfolio Turnover Rate		41	%(6)		47	%		39	%(6)
(8) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		7.11	%(7)		6.73	%		18.06	%(7)
Net Investment Loss to Average Net Assets		(3.80	)%(7)		(3.53	)%		(15.27	)%(7)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class A shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the reimbursement of custodian fees was offset against current period expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Operations.

(3)  Per share amount is based on average shares outstanding.

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

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Strategic Income Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)			Period from April 30, 2015(2) to September 30, 2015
Net Asset Value, Beginning of Period	$	9.66		$	9.76		$	10.06
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.06			0.11			0.05
Net Realized and Unrealized Gain (Loss)		0.21			0.06			(0.32	)
Total from Investment Operations		0.27			0.17			(0.27	)
Distributions from and/or in Excess of:
Net Investment Income		(0.07	)		(0.27	)		(0.03	)
Net Asset Value, End of Period	$	9.86		$	9.66		$	9.76
Total Return (4)		2.80	%(7)		1.77	%		(2.71	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	36		$	35		$	10
Ratio of Expenses to Average Net Assets (9)		2.09	%(5)(8)		2.09	%(5)		2.10	%(5)(8)
Ratio of Net Investment Income to Average Net Assets (9)		1.23	%(5)(8)		1.14	%(5)		1.13	%(5)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(8)		0.01	%		0.00	%(6)(8)
Portfolio Turnover Rate		41	%(7)		47	%		39	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		9.44	%(8)		28.93	%		19.28	%(8)
Net Investment Loss to Average Net Assets		(6.12	)%(8)		(25.70	)%		(16.05	)%(8)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class C shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the reimbursement of custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Offering.

(3)  Per share amount is based on average shares outstanding.

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

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Strategic Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Year Ended September 30, 2016(1)			Period from December 30, 2014(2) to September 30, 2015
Net Asset Value, Beginning of Period	$	9.69		$	9.79		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (3)		0.11			0.23			0.14
Net Realized and Unrealized Gain (Loss)		0.22			0.05			(0.27	)
Total from Investment Operations		0.33			0.28			(0.13	)
Distributions from and/or in Excess of:
Net Investment Income		(0.11	)		(0.38	)		(0.08	)
Net Asset Value, End of Period	$	9.91		$	9.69		$	9.79
Total Return (4)		3.38	%(6)		2.96	%		(1.37	)%(6)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9,889		$	9,669		$	9,775
Ratio of Expenses to Average Net Assets (8)		0.94	%(5)(7)		0.94	%(5)		0.93	%(5)(7)
Ratio of Net Investment Income to Average Net Assets (8)		2.28	%(5)(7)		2.35	%(5)		1.88	%(5)(7)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(7)		0.01	%		0.02	%(7)
Portfolio Turnover Rate		41	%(6)		47	%		39	%(6)
(8) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.97	%(7)		3.45	%		4.04	%(7)
Net Investment Income (Loss) to Average Net Assets		0.25	%(7)		(0.16	)%		(1.23	)%(7)

(1)  Reflects prior period custodian out-of-pocket expenses that were reimbursed in September 2016. The amount of the reimbursement was immaterial on a per share basis and did not impact the total return of Class IS shares. The Ratio of Expenses to Average Net Assets and the Ratio of Net Investment Income to Average Net Assets would be unchanged as the change to custodian fees was offset against expense waivers/reimbursements with no impact to net expenses or net investment income.

(2)  Commencement of Operations.

(3)  Per share amount is based on average shares outstanding.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  The Ratios of Expenses and Net Investment Income reflect the rebate of certain Fund 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."

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Trust is comprised of nine separate, active funds (individually referred to as a "Fund", collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Strategic Income Portfolio. The Fund seek a total return comprised of income and capital appreciation. The Fund 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 Trust 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/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads, and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges; (2) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (3) over-the-counter ("OTC") swaps may be valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange; (4) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment

Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited") (the "Sub-Adviser"), a wholly owned subsidiary of Morgan Stanley, 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; and (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.

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

The Trust has procedures to determine the fair value of securities and other financial instruments for which

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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.

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 Fund's investments as of March 31, 2017.

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	$	—	$	1,237	$	—	$	1,237
Collateralized Mortgage Obligations — Agency Collateral Series		—		14		—		14
Commercial Mortgage-Backed Securities		—		394		—		394
Corporate Bonds		—		4,090		—		4,090
Mortgages — Other		—		972		—		972
Sovereign		—		1,624		—		1,624
U.S. Treasury Securities		—		640		—		640
Total Fixed Income Securities		—		8,971		—		8,971
Short-Term Investments
Investment Company		509		—		—		509
U.S. Treasury Securities		—		388		—		388
Total Short-Term Investments		509		388		—		897

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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)
Foreign Currency Forward Exchange Contracts	$	—		$	13		$	—	$	13
Interest Rate Swap Agreements		—			2			—		2
Total Assets		509			9,374			—		9,883
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(35	)		—		(35	)
Futures Contracts		(13	)		—			—		(13	)
Credit Default Swap Agreements		—			(45	)		—		(45	)
Interest Rate Swap Agreements		—			(3	)		—		(3	)
Total Liabilities		(13	)		(83	)		—		(96	)
Total	$	496		$	9,291		$	—	$	9,787

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of March 31, 2017, the Fund did not have any investments transfer between investment levels.

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

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

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

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

federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. federal income tax purposes.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) 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 Fund values the foreign shares at the closing exchange price of the local shares.

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

4.  Derivatives: The Fund 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 Fund'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 Fund 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 Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser and/or Sub-Adviser seek to use derivatives to further the Fund'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 Fund used during the period and their associated risks:

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific

price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Fund'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 Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

Swaps: The Fund 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 Fund'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 Fund'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

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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 Fund 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 Fund'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 Fund may be either the buyer or seller in a credit default swap. Where the Fund 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 Fund 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 Fund 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 Fund if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund 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 Fund'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.

When the Fund has an unrealized loss on a swap agreement, the Fund has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

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

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

Foreign Currency Forward Exchange Contracts: In connection with its investments in foreign securities, the Fund 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 Fund may use cross currency hedging or proxy hedging with respect to currencies in which the Fund 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 Fund's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Fund 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 Fund as unrealized gain or loss. The Fund

records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

FASB ASC 815, "Derivatives and Hedging" ("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 Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 31, 2017.

	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	$	13
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		2	(a)
Total			$	15
	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	$	(35	)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		(13	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(37	)
Swap Agreement	Variation Margin on Swap Agreements	Credit Risk		(8	)(a)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		(3	)(a)
Total			$	(96	)

(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 Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

contract for the six months ended March 31, 2017 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	207
Interest Rate Risk	Futures Contracts		187
Credit Risk	Swap Agreements		1
Interest Rate Risk	Swap Agreements		1
Total		$	396
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(34	)
Interest Rate Risk	Futures Contracts		(14	)
Credit Risk	Swap Agreements		(21	)
Interest Rate Risk	Swap Agreements		(1	)
Total		$	(70	)

At March 31, 2017, the Fund'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	$	13	$	(35	)
Swap Agreements		—		(37	)
Total	$	13	$	(72	)

(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 Fund 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 Fund 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 Fund 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 Fund 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 Fund'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, 2017.

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)
Australia and New Zealand Banking Group	$	2		$	(2	)	$	—	$	0
Barclays Bank PLC		—	@		(—	@)		—		0
HSBC Bank PLC		9			(9	)		—		0
JPMorgan Chase Bank NA		2			(2	)		—		0
UBS AG		—	@		(—	@)		—		0
Total	$	13		$	(13	)	$	—	$	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)
Australia and New Zealand Banking Group	$	17		$	(2	)	$	—	$	15
Barclays Bank PLC		—	@		(—	@)		—		0
Deutsche Bank AG		3			—			—		3
Goldman Sachs International		34			—			—		34
HSBC Bank PLC		12			(9	)		—		3
JPMorgan Chase Bank NA		3			(2	)		—		1
UBS AG		3			(—	@)		—		3
Total	$	72		$	(13	)	$	—	$	59

@ Amount is less than $500.

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

For the six months ended March 31, 2017, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	7,566,000
Futures Contracts:
Average monthly original value	$	4,124,000
Swap Agreements:
Average monthly notional amount	$	994,000

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

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 Fund 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 Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds 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/Sub-Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory

Agreement, paid quarterly, at the annual rate based on the daily net assets as follows:

First $500 million			Over $500 million
	0.40	%		0.35	%

For the six months ended March 31, 2017, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund 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 Fund'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, 2017, approximately $20,000 of advisory fees were waived and approximately $83,000 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 Fund with advisory services subject to the overall supervision of the Adviser and the Trust'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 Fund.

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund'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 Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser and Sub-Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to Class A shares pursuant to

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

The Trust 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 Fund 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 Fund'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 and Class C shares.

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

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Trust 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, 2017, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $3,948,000 and $3,168,000, respectively. For the six months ended March 31, 2017, purchases and sales of long-term U.S. Government securities were approximately $637,000 and $258,000, respectively.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Goverment Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of

the advisory and administration fees paid by the Fund due to its investments in the Liquidity Funds. For the six months ended March 31, 2017, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of the Liquidity Funds during the six months ended March 31, 2017 is as follows:

Value September 30, 2016 (000)		Purchases at Cost (000)		Sales (000)		Dividend Income (000)		Value March 31, 2017 (000)
$	1,725	$	3,164	$	4,380	$	2	$	509

The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2017, the Fund did not engage in any cross-trade transactions.

The Fund 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 Fund.

H. Federal Income Taxes: It is the Fund'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 Fund 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.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the two-year period ended September 30, 2016, 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 2016 and 2015 was as follows:

2016 Distributions Paid From: Ordinary Income (000)		2015 Distributions Paid From: Ordinary Income (000)
$	379	$	75

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 nondeductible expenses, resulted in the following reclassifications among the components of net assets at September 30, 2016:

Accumulated Net Investment Loss (000)			Accumulated Net Realized Loss (000)		Paid-in- Capital (000)
$	(37	)	$	41	$	(4	)

At September 30, 2016, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	85	$	—

At September 30, 2016, the Fund had available for Federal income tax purposes unused short term and long term capital losses of approximately $178,000, and $153,000, respectively, that do not have an expiration date.

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 Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.

I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $150,000,000 committed, unsecured revolving line of credit facility (the "facility") with State Street. This facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or one month libor rate plus a spread. The facility also has a commitment fee of 0.25% per annum based on the unused portion of the facility. During the six months ended March 31, 2017, the Fund did not have any borrowings under the facility.

J. Other: At March 31, 2017, the Fund did not have record owners of 10% or greater.

K. Accounting Pronouncement: In October 2016, the Securities and Exchange Commission ("SEC") issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the Fund's net assets or results of operations. Although still evaluating the potential impacts of the Investment Company Reporting Modernization to the Fund, management expects that the impact of the Fund's adoption will be limited to additional financial statement disclosures.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited)

MORGAN STANLEY INVESTMENT MANAGEMENT INC.
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

We are required by federal law to provide you with a copy of our privacy policy annually. This policy applies to current and former individual investors in funds managed or sponsored by Morgan Stanley Investment Management Inc. ("MSIM") as well as current and former individual clients of MSIM. This policy is not applicable to partnerships, corporations, trusts or other non-individual clients or investors. Please note that we may amend this policy at any time, and will inform you of any changes as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Notice describes what non-public personal information we collect about you, why 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 to affiliated companies in the Morgan Stanley family of companies ("other Morgan Stanley companies"). It also discloses how you may limit use of certain shared information for marketing purposes by other Morgan Stanley branded companies. Throughout this policy, we refer to the non-public information that personally identifies you or your accounts as "personal information.''

1.  WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?

We obtain personal information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources.

For example:

•  We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through subscription documents, 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.

•  If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies.'' Please consult the Terms of Use of these sites for more details.

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

We may disclose personal information we collect about you to other Morgan Stanley companies and to non-affiliated third parties.

a. Information We Disclose to Other Morgan Stanley Companies.

We may disclose personal information to other Morgan Stanley companies for a variety of reasons, including to manage your account(s) effectively, to service and process your transactions, to let you know about products and services offered by us and other Morgan Stanley companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from other Morgan Stanley companies are developed under conditions designed to safeguard your personal information.

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

b. Information We Disclose to Non-affiliated Third Parties.

We do not disclose personal information that we collect about you to non-affiliated third parties except to those who provide marketing services on our behalf, to financial institutions with whom we have joint marketing agreements, and as otherwise required or permitted by law. For example, we may disclose personal information to nonaffiliated third parties for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with a non-affiliated third party, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information 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 to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information.

4.  HOW CAN YOU LIMIT THE SHARING OF CERTAIN TYPES OF PERSONAL INFORMATION WITH OTHER MORGAN STANLEY COMPANIES?

We offer you choices as to whether we share with other Morgan Stanley companies the personal information that was collected to determine your eligibility for products and services you request ("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 other Morgan Stanley companies ("opt-out"), we may still share personal information, including eligibility information, with those companies in circumstances excluded from the opt-out under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN TYPES OF PERSONAL INFORMATION BY OTHER MORGAN STANLEY COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit other Morgan Stanley branded 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 Other Morgan Stanley Companies from using personal information about you that we may share with them for marketing their products and services to you, Other Morgan Stanley Companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the Other Morgan Stanley Company has its own relationship with you.

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

If you wish to limit our sharing of eligibility information about you with other Morgan Stanley companies or other Morgan Stanley 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

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

Your written 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 if 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.

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 have a joint account, your direction for us not to share this information with other Morgan Stanley companies and for those other Morgan Stanley companies not to use your personal information for marketing will be applied to all account holders on that 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 Morgan Stanley products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

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

If, at any time in the future, an affiliated company becomes a non-affiliated 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 non-affiliated 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 non-affiliated 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 affiliated companies and non-affiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with non-affiliated third parties or other Morgan Stanley companies unless you provide us with your written consent to share such information ("opt-in").

If you wish to receive offers for investment products and services offered by or through other Morgan Stanley companies, please notify us in writing at the following address:

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

Your authorization should include your name, address, telephone number and account number(s) to which the opt-in applies and should not be sent with any other correspondence. In order to process your authorization, we require that the authorization be provided by you directly and not through a third party.

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 information with our affiliates to comply with California privacy laws that apply to us.

30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Trustee and Officer Information (unaudited)

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

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

Perkins Coie LLP
30 Rockefeller Plaza
New York, New York 10112

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, 100 F Street, NE,Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust 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 or summary prospect of the applicable Fund of Morgan Stanley Institutional Fund Trust, which describes in detail the Fund'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 Fund, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

31

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

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

© 2017 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTSIPSAN
1784129 EXP 05.31.18

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Ultra-Short Income Portfolio

Semi-Annual Report

March 31, 2017

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	8
Statement of Operations	9
Statements of Changes in Net Assets	10
Financial Highlights	11
Notes to Financial Statements	14
Privacy Notice	19
Trustee and Officer Information	22

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable Fund 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 Fund'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 Fund will achieve its investment objective. Funds are subject to market risk, which is the possibility that market values of securities owned by the Fund will decline and, therefore, the value of the Fund's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Fund. Please see the prospectus for more complete information on investment risks.

1

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Semi-Annual report, in which you will learn how your investment in Ultra-Short Income Portfolio (the "Fund") 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 2017

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Expense Example (unaudited)

Ultra-Short Income Portfolio

As a shareholder of the Fund, you may incur two types of costs: (1) transactional costs, including sales charge (loads) on purchase payments; and (2) ongoing costs, which may include advisory fees, administration fees, distribution and shareholder services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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, 2017 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund'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 Fund 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 10/1/16		Actual Ending Account Value 3/31/17		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Ultra-Short Income Portfolio Class IR	$	1,000.00	$	1,005.60	$	1,023.93	$	1.00	$	1.01		0.20	%
Ultra-Short Income Portfolio Institutional Class		1,000.00		1,005.40		1,023.64		1.30		1.31		0.26
Ultra-Short Income Portfolio Class A		1,000.00		1,003.40		1,022.64		2.30		2.32		0.46

*  Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 182/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
Certificates of Deposit (4.6%)
Domestic Banks (1.4%)
Citibank NA,
1.25%, 6/12/17	$	20,000	$	20,011
1.30%, 6/15/17		30,000		30,021
				50,032
International Banks (3.2%)
DZ Bank AG
1.20%, 4/24/17		10,000		10,001
KBC Bank NV
1.18%, 6/16/17		75,000		74,825
Oversea Chinese Banking
1.14%, 6/20/17		29,000		29,002
				113,828
Total Certificates of Deposit (Cost $163,819)				163,860
Commercial Paper (a) (11.0%)
Computer Technology (0.8%)
HP, Inc.,
1.21%, 4/17/17		30,000		29,988
Domestic Banks (1.7%)
ABN Amro Funding USA LLC,
1.24%, 4/19/17		20,000		19,989
1.30%, 7/5/17		15,000		14,951
1.31%, 6/13/17 - 6/20/17		15,000		14,961
1.36%, 6/21/17		10,000		9,973
				59,874
Hospitality (0.8%)
Marriott International, Inc.,
1.23%, 4/19/17		7,000		6,996
1.24%, 5/10/17		20,000		19,972
				26,968
Insurance (0.6%)
Marsh & McLennan Cos., Inc.
1.22%, 4/13/17		20,000		19,992
International Banks (7.1%)
Banque et Caisse Epargne
1.21%, 6/15/17		10,000		9,980
Banque Federative du Credit Mutuel SA
1.25%, 7/10/17		20,000		19,938
BPCE SA
1.20%, 5/4/17		30,000		29,974
Danske Corp.
1.33%, 8/14/17		25,000		24,871
Nationwide Building Society,
1.18%, 6/15/17		25,000		24,938
1.24%, 7/28/17		24,350		24,247
1.37%, 7/24/17		18,800		18,724
Suncorp-Metway Ltd.,
1.25%, 6/7/17		10,000		9,977
1.32%, 8/8/17		23,600		23,484
1.35%, 7/24/17		7,000		6,970

	Face Amount (000)		Value (000)
1.36%, 7/18/17 - 8/15/17	$	20,000	$	19,909
1.37%, 7/19/17 - 7/31/17		8,000		7,966
1.37%, 8/23/17 (b)		17,500		17,403
1.39%, 8/1/17		5,000		4,977
1.46%, 9/6/17		10,000		9,938
				253,296
Total Commercial Paper (Cost $390,123)				390,118
Corporate Bonds (0.6%)
International Banks (0.6%)
Mizuho Bank Ltd.
1.70%, 9/25/17 (b)		5,525		5,529
Sumitomo Mitsui Banking Corp.
1.80%, 7/18/17		17,000		17,024
Total Corporate Bonds (Cost $22,537)				22,553
Floating Rate Notes (50.2%)
Automobiles (1.7%)
Toyota Motor Credit Corp.,
1.33%, 7/28/17		10,000		10,012
1.35%, 12/5/17		25,000		25,028
1.52%, 6/19/17		25,000		25,025
				60,065
Domestic Banks (4.0%)
Bank of America NA,
1.22%, 11/17/17		25,000		25,000
1.32%, 10/16/17		15,000		15,000
1.55%, 6/5/17		8,250		8,256
HSBC Bank USA NA,
1.36%, 2/1/18		10,000		10,011
1.37%, 10/11/17		25,000		25,033
1.47%, 5/12/17		6,100		6,104
1.58%, 8/4/17		13,214		13,237
ING US Funding LLC
1.32%, 8/7/17		15,000		15,016
Wells Fargo Bank NA,
1.39%, 11/16/17		10,000		10,013
1.52%, 1/24/18		15,000		15,028
				142,698
International Banks (44.5%)
ANZ New Zealand International Ltd.
1.38%, 7/14/17 (b)		5,000		5,004
ASB Finance Ltd. London,
1.31%, 9/6/17 (b)		6,500		6,508
1.37%, 2/15/18 (b)		25,000		25,025
1.38%, 7/17/17 (b)		10,000		10,009
Banco del Estado de Chile
1.24%, 9/25/17		25,000		25,003
Bank of Montreal,
1.42%, 1/11/18		15,000		15,027
1.67%, 12/11/17		16,600		16,648

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
International Banks (cont'd)
Bank of Nova Scotia,
1.27%, 8/1/17 (b)	$	15,000	$	15,014
1.42%, 4/12/17		8,000		8,001
1.45%, 5/12/17		3,500		3,502
1.49%, 12/19/17		25,000		25,042
1.58%, 10/26/17		9,250		9,273
Barclays Bank PLC,
1.40%, 7/31/17		20,000		20,024
1.91%, 9/8/17		11,000		11,025
BNP Paribas SA
1.44%, 3/27/18		50,000		50,037
BNZ International Funding Ltd.
1.46%, 8/23/17 (b)		5,000		5,006
BPCE SA
1.77%, 6/23/17		11,145		11,155
Canadian Imperial Bank of Commerce,
1.28%, 2/2/18 (b)		25,000		25,032
1.42%, 5/23/17		31,411		31,430
1.43%, 7/20/17 (b)		15,000		15,013
1.46%, 10/6/17		42,100		42,187
Commonwealth Bank of Australia,
1.33%, 11/3/17 (b)		4,536		4,542
1.35%, 2/23/18 (b)		20,000		20,003
1.38%, 9/8/17 (b)		6,050		6,054
1.42%, 10/12/17 (b)		10,000		10,018
1.46%, 1/12/18 (b)		39,700		39,764
1.47%, 12/8/17 (b)		17,000		17,026
1.52%, 3/12/18 (b)		1,550		1,552
1.58%, 7/18/17 (b)		10,000		10,013
Credit Suisse AG,
1.59%, 7/10/17		15,000		15,019
1.68%, 4/24/17		15,200		15,207
1.83%, 8/24/17		15,000		15,028
1.92%, 9/12/17		73,500		73,675
DNB Bank ASA
1.43%, 4/26/17 (b)		6,100		6,102
DZ Bank AG
1.28%, 7/11/17 (b)		15,000		15,011
Erste Abwicklungsanstalt
1.20%, 10/27/17 (b)		37,000		36,997
HSBC Bank PLC,
1.31%, 3/20/18 (b)		25,000		24,984
1.36%, 2/9/18 (b)		25,000		25,030
1.38%, 7/5/17 (b)		8,500		8,509
Mizuho Bank Ltd.,
1.23%, 9/7/17		20,000		20,004
1.49%, 7/13/17		30,000		30,025
1.58%, 5/17/17		5,000		5,004
1.59%, 4/11/17		4,000		4,001
1.87%, 10/12/17		40,000		40,127

	Face Amount (000)		Value (000)
National Australia Bank Ltd.,
1.16%, 3/1/18 (b)	$	50,000	$	50,006
1.28%, 3/27/18 (b)		30,000		29,986
1.34%, 1/4/18 (b)		10,000		10,016
1.38%, 2/21/18 (b)		20,000		20,012
1.42%, 4/27/17		4,850		4,852
1.43%, 6/30/17 (b)		23,300		23,316
1.49%, 11/17/17 (b)		10,000		10,015
Nordea Bank AB
1.36%, 4/4/17 (b)		2,250		2,250
Nordea Bank Finland PLC
1.31%, 7/28/17		20,000		20,015
Oversea-Chinese Banking Corp.
1.28%, 4/7/17 (b)		5,000		5,000
Royal Bank of Canada,
1.28%, 10/13/17		11,900		11,910
1.30%, 3/20/18		30,000		29,977
1.38%, 6/16/17		12,770		12,773
1.44%, 10/24/17		9,000		9,011
Skandinaviska Enskilda Banken AB,
1.34%, 7/3/17		10,000		10,008
1.44%, 5/26/17		25,000		25,016
Sumitomo Mitsui Banking Corp.,
1.34%, 7/11/17		10,340		10,345
1.43%, 7/5/17		25,000		25,023
1.45%, 5/9/17		10,000		10,006
1.59%, 4/12/17		10,000		10,002
Sumitomo Mitsui Trust Bank Ltd.
1.85%, 9/20/17		25,595		25,662
Svenska Handelsbanken AB,
1.23%, 8/7/17		25,000		25,020
1.29%, 8/1/17		12,824		12,834
Toronto Dominion Bank,
1.17%, 3/5/18		20,000		19,997
1.24%, 11/6/17		20,000		20,019
1.30%, 3/20/18		25,000		24,991
1.33%, 1/10/18		5,000		5,006
1.38%, 1/10/18 - 2/21/18		40,000		40,035
1.42%, 10/17/17		10,000		10,018
1.46%, 5/1/17		3,000		3,001
1.50%, 11/20/17		25,000		25,040
1.54%, 8/15/17		6,770		6,782
UBS AG,
1.33%, 11/6/17		40,000		40,023
1.42%, 8/14/17		6,860		6,866
1.54%, 5/25/17		7,000		7,005
1.62%, 6/1/17		6,848		6,853

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
International Banks (cont'd)
Westpac Banking Corp.,
1.29%, 2/9/18 (b)	$	20,000	$	20,018
1.30%, 3/15/18 (b)		30,000		29,994
1.34%, 2/16/18 (b)		10,000		10,006
1.37%, 1/8/18 (b)		15,000		15,027
1.37%, 11/2/17 (b)		7,000		7,012
1.43%, 12/1/17		15,774		15,805
1.45%, 1/26/18 (b)		23,000		23,027
1.58%, 9/28/17		28,000		28,053
Westpac Securities NZ Ltd.
1.34%, 7/31/17 (b)		10,000		10,009
				1,586,302
Total Floating Rate Notes (Cost $1,788,031)				1,789,065
Repurchase Agreements (32.3%)
ABN Amro Securities LLC, (1.01%, dated 3/31/17, due 4/3/17; proceeds $1,000; fully collateralized by various Corporate Bonds; 2.50% - 6.10% due 11/1/18 - 8/1/36; valued at $1,050)		1,000		1,000
Bank of Montreal, (1.01%, dated 3/31/17, due 4/3/17; proceeds $79,007; fully collateralized by various Corporate Bonds; 1.10% - 3.75% due 7/14/17 - 3/30/27; valued at $82,940)		79,000		79,000
Citigroup Global Markets, Inc., (1.06%, dated 3/31/17, due 4/3/17; proceeds $30,003; fully collateralized by various Common Stocks; valued at $31,500)		30,000		30,000
HSBC Securities USA, Inc., (1.11%, dated 3/31/17, due 4/3/17; proceeds $52,005; fully collateralized by various Corporate Bonds; 5.13% - 12.50% due 8/15/18 - 1/15/27; valued at $55,123)		52,000		52,000
ING Financial Markets LLC, (1.01%, dated 3/31/17, due 4/3/17; proceeds $79,007; fully collateralized by various Corporate Bonds; 1.40% - 7.95% due 9/20/19 - 1/15/47; valued at $82,953)		79,000		79,000
ING Financial Markets LLC, (1.16%, dated 3/27/17, due 4/3/17; proceeds $40,009; fully collateralized by various Corporate Bonds; 5.25% - 11.25% due 4/1/19 - 8/15/39; valued at $42,405)		40,000		40,000
JP Morgan Securities LLC, (1.54%, dated 10/20/16, due 7/20/17; proceeds $30,349; fully collateralized by various Corporate Bonds; 3.88% - 11.50% due 2/1/18 - 11/1/43; valued at $33,573) (Demand 4/20/17)		30,000		30,000

	Face Amount (000)		Value (000)
JP Morgan Securities LLC, (1.54%, dated 2/6/17, due 7/20/17; proceeds $20,140; fully collateralized by various Corporate Bonds; 5.88% - 8.13% due 3/15/20 - 1/15/24; valued at $20,473) (Demand 4/20/17)	$	20,000	$	20,000
JP Morgan Securities LLC, (1.54%, dated 11/4/16, due 7/20/17; proceeds $15,165; fully collateralized by various Corporate Bonds; 5.25% - 10.50% due 11/15/19 - 6/15/24; valued at $15,425) (Demand 4/20/17)		15,000		15,000
JP Morgan Securities LLC, (1.54%, dated 12/19/16, due 7/20/17; proceeds $10,091; fully collateralized by various Corporate Bonds; 5.38% - 8.75% due 8/15/18 - 12/1/21; valued at $10,297) (Demand 4/20/17)		10,000		10,000
JP Morgan Securities LLC, (1.54%, dated 1/5/17, due 7/20/17; proceeds $10,084; fully collateralized by various Corporate Bonds; 4.25% - 10.75% due 8/15/17 - 3/15/27; valued at $10,291) (Demand 4/20/17)		10,000		10,000
JP Morgan Securities LLC, (1.54%, dated 1/13/17, due 7/20/17; proceeds $10,080; fully collateralized by various Corporate Bonds; 3.88% - 12.50% due 9/15/17 - 11/15/66; valued at $10,229) (Demand 4/20/17)		10,000		10,000
JP Morgan Securities LLC, (1.54%, dated 1/18/17, due 7/20/17; proceeds $10,078; fully collateralized by various Corporate Bonds; 7.50% - 7.63% due 7/15/21 - 2/15/25; valued at $10,206) (Demand 4/20/17)		10,000		10,000
JP Morgan Securities LLC, (1.54%, dated 2/28/17, due 7/20/17; proceeds $20,121; fully collateralized by various Corporate Bonds; 5.25% - 9.88% due 6/30/17 - 6/15/37; valued at $20,461) (Demand 4/20/17)		20,000		20,000
JP Morgan Securities LLC, (1.54%, dated 3/20/17, due 7/20/17; proceeds $35,182; fully collateralized by various Corporate Bonds; 3.95% - 13.75% due 5/15/19 - 8/1/24; valued at $38,646) (Demand 4/20/17)		35,000		35,000
Merrill Lynch Pierce Fenner & Smith, (1.39%, dated 3/14/17, due 6/14/17; proceeds $10,036; fully collateralized by various Common Stocks, a Convertible Bond, 0.50% due 9/15/32 and Preferred Stocks; valued at $10,228) (Demand 4/14/17)		10,000		10,000
Merrill Lynch Pierce Fenner & Smith, (1.39%, dated 3/14/17, due 6/14/17; proceeds $10,036; fully collateralized by various Common Stocks and a Preferred Stock; valued at $10,255) (Demand 4/14/17)		10,000		10,000

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
Repurchase Agreements (cont'd)
Merrill Lynch Pierce Fenner & Smith, (1.39%, dated 3/14/17, due 6/14/17; proceeds $30,107; fully collateralized by various Common Stocks, a Convertible Bond, 3.88% due 6/1/36 and Preferred Stocks; valued at $32,552) (Demand 4/14/17)	$	30,000	$	30,000
Merrill Lynch Pierce Fenner & Smith, (1.41%, dated 3/14/17, due 6/14/17; proceeds $40,144; fully collateralized by various Common Stocks, Preferred Stocks and a U.S. Government obligation, 3.00% due 11/15/44; valued at $41,318) (Demand 4/14/17)		40,000		40,000
Merrill Lynch Pierce Fenner & Smith, (1.43%, dated 3/14/17, due 6/14/17; proceeds $15,055; fully collateralized by various Common Stocks and a Preferred Stock; valued at $15,321) (Demand 4/14/17)		15,000		15,000
Mizuho Securities USA, Inc., (1.01%, dated 3/31/17, due 4/3/17; proceeds $68,006; fully collateralized by various Common Stocks and a Preferred Stock; valued at $71,400)		68,000		68,000
Pershing LLC, (1.12%, dated 3/31/17, due 4/3/17; proceeds $163,015; fully collateralized by various Corporate Bonds; 1.00% - 11.00% due 4/1/17 - 1/1/49; valued at $171,605) (c)		163,000		163,000
RBC Capital Markets LLC, (1.13%, dated 1/26/17, due 4/26/17; proceeds $55,155; fully collateralized by various Corporate Bonds; 1.10% - 9.50% due 7/31/17 - 11/1/46; valued at $57,750) (c)		55,000		55,000
RBC Capital Markets LLC, (1.20%, dated 3/24/17, due 5/3/17; proceeds $25,033; fully collateralized by various Corporate Bonds; 1.13% - 6.88% due 6/15/17 - 1/1/49; valued at $26,250) (c)		25,000		25,000
Scotia Capital USA, Inc., (1.11%, dated 3/31/17, due 4/3/17; proceeds $112,010; fully collateralized by various Corporate Bonds; 4.25% - 12.25% due 5/15/17 - 3/9/48; valued at $118,589)		112,000		112,000
SG Americas Securities, (1.13%, dated 3/31/17, due 4/3/17; proceeds $32,003; fully collateralized by various Corporate Bonds; 1.40% - 11.50% due 3/15/18 - 8/1/47; valued at $33,738)		32,000		32,000
Wells Fargo Securities LLC, (1.01%, dated 3/31/17, due 4/3/17; proceeds $9,001; fully collateralized by various Corporate Bonds; 1.33% - 1.34% due 5/24/17 - 9/22/17 and a Money Market Security; 0.00% due 6/23/17; valued at $9,450)		9,000		9,000

	Face Amount (000)		Value (000)
Wells Fargo Securities LLC, (1.06%, dated 3/31/17, due 4/3/17; proceeds $64,006; fully collateralized by various Common Stocks and Preferred Stocks; valued at $67,200)	$	64,000	$	64,000
Wells Fargo Securities LLC, (1.29%, dated 1/25/17, due 4/25/17; proceeds $45,145; fully collateralized by various Corporate Bonds; 4.50% - 10.50% due 3/1/18 - 1/15/23; valued at $47,673)		45,000		45,000
Wells Fargo Securities LLC, (1.55%, dated 3/27/17, due 6/23/17; proceeds $30,114; fully collateralized by various Corporate Bonds; 4.50% - 7.88% due 1/5/18 - 1/15/23; valued at $31,795)		30,000		30,000
Total Repurchase Agreements (Cost $1,149,000)				1,149,000
Total Investments (98.7%) (Cost $3,513,510) (d)				3,514,596
Other Assets in Excess of Liabilities (1.3%)				46,048
Net Assets (100.0%)			$	3,560,644

(a)  The rates shown are the effective yields at the date of purchase.

(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, 2017.

(d)  At March 31, 2017, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,213,000 and the aggregate gross unrealized depreciation is approximately $127,000 resulting in net unrealized appreciation of approximately $1,086,000.

Portfolio Composition

Classification	Percentage of Total Investments
Floating Rate Notes		50.9	%
Repurchase Agreements		32.7
Commercial Paper		11.1
Other*		5.3
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Ultra-Short Income Portfolio

Statement of Assets and Liabilities	March 31, 2017 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $3,513,510, including value of repurchase agreements of $1,149,000)	$	3,514,596
Cash		11,358
Receivable for Fund Shares Sold		108,648
Interest Receivable		2,560
Prepaid Offering Costs		12
Other Assets		169
Total Assets		3,637,343
Liabilities:
Payable for Fund Shares Redeemed		64,002
Payable for Investments Purchased		11,162
Payable for Advisory Fees		689
Payable for Shareholder Services Fees — Institutional Class		54
Payable for Shareholder Services Fees — Class A		277
Dividends Payable		238
Payable for Administration Fees		210
Payable for Professional Fees		32
Payable for Offering Costs		13
Payable for Custodian Fees		9
Payable for Transfer Agency Fees — Class IR		1
Payable for Transfer Agency Fees — Institutional Class		1
Payable for Transfer Agency Fees — Class A		1
Other Liabilities		10
Total Liabilities		76,699
Net Assets	$	3,560,644
Net Assets Consist of:
Paid-in-Capital	$	3,559,600
Distributions in Excess of Net Investment Income		(184	)
Accumulated Net Realized Gain		142
Unrealized Appreciation (Depreciation) on:
Investments		1,086
Net Assets	$	3,560,644
CLASS IR:
Net Assets	$	681,930
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		68,118,725
Net Asset Value, Offering and Redemption Price Per Share	$	10.01
Institutional Class:
Net Assets	$	1,388,672
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		138,801,837
Net Asset Value, Offering and Redemption Price Per Share	$	10.00
CLASS A:
Net Assets	$	1,490,042
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		148,966,706
Net Asset Value, Offering and Redemption Price Per Share	$	10.00

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017 (unaudited)

Ultra-Short Income Portfolio

Statement of Operations	Six Months Ended March 31, 2017 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	9,630
Expenses:
Advisory Fees (Note B)		1,661
Shareholder Services Fees — Institutional Class (Note D)		173
Shareholder Services Fees — Class A (Note D)		865
Administration Fees (Note C)		664
Offering Costs		75
Professional Fees		25
Registration Fees		22
Custodian Fees (Note F)		9
Trustees' Fees and Expenses		5
Transfer Agency Fees — Class IR (Note E)		2
Transfer Agency Fees — Institutional Class (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Pricing Fees		2
Shareholder Reporting Fees		1
Other Expenses		10
Total Expenses		3,516
Waiver of Advisory Fees (Note B)		(775	)
Reimbursement of Class Specific Expenses — Institutional Class (Note B)		(2	)
Net Expenses		2,739
Net Investment Income		6,891
Realized Gain:
Investments Sold		158
Change in Unrealized Appreciation (Depreciation):
Investments		937
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		1,095
Net Increase in Net Assets Resulting from Operations	$	7,986

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Ultra-Short Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 31, 2017 (unaudited) (000)			Period from April 28, 2016^ to September 30, 2016 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	6,891		$	903
Net Realized Gain		158			36
Net Change in Unrealized Appreciation (Depreciation)		937			149
Net Increase in Net Assets Resulting from Operations		7,986			1,088
Distributions from and/or in Excess of:
Class IR:
Net Investment Income		(1,319	)		(676	)
Net Realized Gain		(6	)		—
Institutional Class:
Net Investment Income		(3,222	)		(185	)
Net Realized Gain		(22	)		—
Class A:
Net Investment Income		(2,509	)		(67	)
Net Realized Gain		(24	)		—
Total Distributions		(7,102	)		(928	)
Capital Share Transactions:(1)
Class IR:
Subscribed		812,775			302,012
Distributions Reinvested		966			55
Redeemed		(408,339	)		(25,833	)
Institutional Class:
Subscribed		1,822,894			229,457
Distributions Reinvested		3,172			154
Redeemed		(633,839	)		(33,552	)
Class A:
Subscribed		1,706,540			180,915
Distributions Reinvested		2,471			61
Redeemed		(383,848	)		(16,461	)
Net Increase in Net Assets Resulting from Capital Share Transactions		2,922,792			636,808
Total Increase in Net Assets		2,923,676			636,968
Net Assets:
Beginning of Period		636,968			—
End of Period (Including Distributions in Excess of Net Investment Income of $(184) and $(25))	$	3,560,644		$	636,968
(1)   Capital Share Transactions:
Class IR:
Shares Subscribed		81,199			30,201
Shares Issued on Distributions Reinvested		96			5
Shares Redeemed		(40,800	)		(2,583	)
Net Increase in Class IR Shares Outstanding		40,495			27,623
Institutional Class:
Shares Subscribed		182,252			22,946
Shares Issued on Distributions Reinvested		317			15
Shares Redeemed		(63,373	)		(3,355	)
Net Increase in Institutional Class Shares Outstanding		119,196			19,606
Class A:
Shares Subscribed		170,653			18,092
Shares Issued on Distributions Reinvested		247			6
Shares Redeemed		(38,385	)		(1,646	)
Net Increase in Class A Shares Outstanding		132,515			16,452

^  Commencement of Operations.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Ultra-Short Income Portfolio

	Class IR
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Period from April 28, 2016(1) to September 30, 2016
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income from Investment Operations:
Net Investment Income (2)		0.05			0.03
Net Realized and Unrealized Gain		0.01			0.00	(3)
Total from Investment Operations		0.06			0.03
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		(0.03	)
Net Realized Gain		(0.00	)(3)		—
Total Distributions		(0.05	)		(0.03	)
Net Asset Value, End of Period	$	10.01		$	10.00
Total Return (4)		0.56	%(5)		0.26	%(5)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	681,930		$	276,348
Ratio of Expenses to Average Net Assets (7)		0.20	%(6)		0.18	%(6)
Ratio of Net Investment Income to Average Net Assets (7)		0.94	%(6)		0.61	%(6)
(7) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.30	%(6)		0.42	%(6)
Net Investment Income to Average Net Assets		0.84	%(6)		0.37	%(6)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Amount is less than $0.005 per share.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Ultra-Short Income Portfolio

	Institutional Class
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Period from April 28, 2016(1) to September 30, 2016
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (2)		0.05			0.02
Net Realized and Unrealized Gain (Loss)		(0.01	)		0.00	(3)
Total from Investment Operations		0.04			0.02
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.02	)
Net Realized Gain		(0.00	)(3)		—
Total Distributions		(0.04	)		(0.02	)
Net Asset Value, End of Period	$	10.00		$	10.00
Total Return (4)		0.54	%(5)		0.24	%(5)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,388,672		$	196,092
Ratio of Expenses to Average Net Assets (7)		0.26	%(6)		0.23	%(6)
Ratio of Net Investment Income to Average Net Assets (7)		0.90	%(6)		0.65	%(6)
(7) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.35	%(6)		0.48	%(6)
Net Investment Income to Average Net Assets		0.81	%(6)		0.40	%(6)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Amount is less than $0.005 per share.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Financial Highlights

Ultra-Short Income Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 31, 2017 (unaudited)			Period from April 28, 2016(1) to September 30, 2016
Net Asset Value, Beginning of Period	$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (2)		0.04			0.01
Net Realized and Unrealized Gain (Loss)		(0.01	)		0.00	(3)
Total from Investment Operations		0.03			0.01
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.01	)
Net Realized Gain		(0.00	)(3)		—
Total Distributions		(0.03	)		(0.01	)
Net Asset Value, End of Period	$	10.00		$	10.00
Total Return (4)		0.34	%(5)		0.14	%(5)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,490,042		$	164,528
Ratio of Expenses to Average Net Assets (7)		0.46	%(6)		0.44	%(6)
Ratio of Net Investment Income to Average Net Assets (7)		0.71	%(6)		0.48	%(6)
(7) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.55	%(6)		0.68	%(6)
Net Investment Income to Average Net Assets		0.62	%(6)		0.24	%(6)

(1)  Commencement of Operations.

(2)  Per share amount is based on average shares outstanding.

(3)  Amount is less than $0.005 per share.

(4)  Calculated based on the net asset value as of the last business day of the period.

(5)  Not annualized.

(6)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Notes to Financial Statements (unaudited)

Morgan Stanley Institutional Fund Trust ("Trust") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust is comprised of nine separate, active funds (individually referred to as a "Fund", collectively as the "Funds"). The Trust applies investment company accounting and reporting guidance. All Funds are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Ultra-Short Income Portfolio. The Fund seeks current income with capital preservation while maintaining liquidity. The Fund offers three classes of shares — Class IR, Institutional Class and Class A.

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 Trust 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/vendor approved by the Trust's Board of Trustees (the "Trustees"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads, and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges; (2) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the 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; and (3) 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.

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

The Trust 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

14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

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

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

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

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

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

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

The following is a summary of the inputs used to value the Fund's investments as of March 31, 2017.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Short-Term Investments
Certificates of Deposit	$	—	$	163,860	$	—	$	163,860
Commercial Paper		—		390,118		—		390,118
Corporate Bonds		—		22,553		—		22,553
Floating Rate Notes		—		1,789,065		—		1,789,065
Repurchase Agreements		—		1,149,000		—		1,149,000
Total Short-Term Investments		—		3,514,596		—		3,514,596
Total Assets	$	—	$	3,514,596	$	—	$	3,514,596

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of March 31, 2017, the Fund did not have any investments transfer between investment levels.

3.  Repurchase Agreements: The Fund may enter into repurchase agreements under which the Fund 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 Fund 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

15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

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 Fund 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 and/or retention of the collateral or proceeds may be subject to legal proceedings. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into repurchase agreements.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian for investment companies advised by the Trust's Adviser. The Fund will participate on a pro rata basis with the other investment companies in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Repurchase agreements are subject to Master Repurchase Agreements which are agreements between the Fund and its counterparties that typically include provisions which provide for the net settlement of all transactions and collateral with the Trust, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amounts but gross. As indicated on the Portfolio of Investments, the cash or securities to be repurchased exceeds the repurchase price to be paid under the repurchase agreement reducing the net settlement amount to zero.

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

5.  Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the close of each business day. Dividends from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually.

6.  Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund 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 Trust can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds 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 Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.20% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.25% for Class IR shares, 0.30% for Institutional Class shares and 0.55% for Class A shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Fund'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. In addition, the Adviser may make additional voluntary fee waivers and/or expense reimbursements. The ratios of expenses to average net assets disclosed in the Fund's Financial Highlights may be lower than the maximum expense ratios due to these additional fee waivers and/or expense reimbursements. The Adviser may also waive additional advisory fees and/or reimburse expenses to enable the Fund to maintain a minimum level of daily net investment income. For the six months ended March 31, 2017, approximately $775,000 of advisory fees were waived and approximately $2,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund'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 Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

D. 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 Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to the Institutional Class shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.05% of the Fund's average daily net assets attributable to the Institutional Class shares.

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

The 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 Institutional Class and Class A shares.

The Distributor has agreed to reduce its distribution fees to enable the Fund to maintain a minimum level of daily net investment income.

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

Morgan Stanley Services Company Inc. serves as Co-Transfer Agent and provides certain transfer agency services to the Fund with respect to certain direct transactions with the Fund.

F. Custodian Fees: State Street (the "Custodian") serves as Custodian for the Trust in accordance with a Custodian Agreement. The Custodian holds cash, securities, and other assets of the Trust 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: The Fund is permitted to purchase and sell securities ("crosstrade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended March 31, 2017, the Fund did not engage in any cross-trade transactions.

The Fund 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 Fund.

H. Federal Income Taxes: It is the Fund'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 Fund 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

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

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

return. Management has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. The tax period ended September 30, 2016, remains subject to examination by taxing authorities.

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 2016 was as follows:

2016 Distributions Paid From: Ordinary Income (000)
$	928

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.

At September 30, 2016, the components of distributable earnings for the Fund on a tax basis were as follows:

Undistributed Ordinary Income (000)		Undistributed Long-Term Capital Gain (000)
$	245	$	—

H. Credit Facility: The Trust and other Morgan Stanley funds participated in a $150,000,000 committed, unsecured revolving line of credit facility (the "facility") with State Street. This facility is to be used for temporary emergency purposes or funding of shareholder redemption requests. The interest rate on borrowings is based on the federal funds rate or one month libor rate plus a spread. The facility also has a commitment fee of 0.25% per annum based on the unused portion of the facility. During the six months ended March 31, 2017, the Fund did not have any borrowings under the facility.

I. Other: At March 31, 2017, the Fund had record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Fund. The aggregate percentage of such owners was 91.0%.

J. Accounting Pronouncement: In October 2016, the Securities and Exchange Commission ("SEC") issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the Fund's net assets or results of operations. Although still evaluating the potential impacts of the Investment Company Reporting Modernization to the Fund, management expects that the impact of the Fund's adoption will be limited to additional financial statement disclosures.

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited)

MORGAN STANLEY INVESTMENT MANAGEMENT INC.
AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

We are required by federal law to provide you with a copy of our privacy policy annually. This policy applies to current and former individual investors in funds managed or sponsored by Morgan Stanley Investment Management Inc. ("MSIM") as well as current and former individual clients of MSIM. This policy is not applicable to partnerships, corporations, trusts or other non-individual clients or investors. Please note that we may amend this policy at any time, and will inform you of any changes as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information. We strive to maintain the privacy of such information while we help you achieve your financial objectives. This Notice describes what non-public personal information we collect about you, why 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 to affiliated companies in the Morgan Stanley family of companies ("other Morgan Stanley companies"). It also discloses how you may limit use of certain shared information for marketing purposes by other Morgan Stanley branded companies. Throughout this policy, we refer to the non-public information that personally identifies you or your accounts as "personal information."

1.  WHAT PERSONAL INFORMATION DO WE COLLECT ABOUT YOU?

We obtain personal information from applications and other forms you submit to us, from your dealings with us, from consumer reporting agencies, from our Web sites and from third parties and other sources.

For example:

•  We may collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through subscription documents, 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.

•  If you interact with us through our public and private Web sites, we may collect information that you provide directly through online communications (such as an e-mail address). We may also collect information about your Internet service provider, your domain name, your computer's operating system and Web browser, your use of our Web sites and your product and service preferences, through the use of "cookies." Please consult the Terms of Use of these sites for more details.

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

We may disclose personal information we collect about you to other Morgan Stanley companies and to non-affiliated third parties.

a. Information We Disclose to Other Morgan Stanley Companies.

We may disclose personal information to other Morgan Stanley companies for a variety of reasons, including to manage your account(s) effectively, to service and process your transactions, to let you know about products and services offered by us and other Morgan Stanley companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from other Morgan Stanley companies are developed under conditions designed to safeguard your personal information.

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

b. Information We Disclose to Non-affiliated Third Parties.

We do not disclose personal information that we collect about you to non-affiliated third parties except to those who provide marketing services on our behalf, to financial institutions with whom we have joint marketing agreements, and as otherwise required or permitted by law. For example, we may disclose personal information to nonaffiliated third parties for servicing and processing transactions, to offer our own products and services, to protect against fraud, for institutional risk control, to respond to judicial process or to perform services on our behalf. When we share personal information with a non-affiliated third party, they are required to limit their use of personal information to the particular purpose for which it was shared and they are not allowed to share personal information 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 to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information. Third parties that provide support or marketing services on our behalf may also receive personal information, and we require them to adhere to confidentiality standards with respect to such information.

4.  HOW CAN YOU LIMIT THE SHARING OF CERTAIN TYPES OF PERSONAL INFORMATION WITH OTHER MORGAN STANLEY COMPANIES?

We offer you choices as to whether we share with other Morgan Stanley companies the personal information that was collected to determine your eligibility for products and services you request ("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 other Morgan Stanley companies ("opt-out"), we may still share personal information, including eligibility information, with those companies in circumstances excluded from the opt-out under applicable law, such as to process transactions or to service your account.

5.  HOW CAN YOU LIMIT THE USE OF CERTAIN TYPES OF PERSONAL INFORMATION BY OTHER MORGAN STANLEY COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit other Morgan Stanley branded 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 Other Morgan Stanley Companies from using personal information about you that we may share with them for marketing their products and services to you, Other Morgan Stanley Companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the Other Morgan Stanley Company has its own relationship with you.

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

If you wish to limit our sharing of eligibility information about you with other Morgan Stanley companies or other Morgan Stanley 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

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Privacy Notice (unaudited) (cont'd)

Your written 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 if 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.

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 have a joint account, your direction for us not to share this information with other Morgan Stanley companies and for those other Morgan Stanley companies not to use your personal information for marketing will be applied to all account holders on that 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 Morgan Stanley products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

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

If, at any time in the future, an affiliated company becomes a non-affiliated 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 non-affiliated 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 non-affiliated 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 affiliated companies and non-affiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with non-affiliated third parties or other Morgan Stanley companies unless you provide us with your written consent to share such information ("opt-in").

If you wish to receive offers for investment products and services offered by or through other Morgan Stanley companies, please notify us in writing at the following address:

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

Your authorization should include your name, address, telephone number and account number(s) to which the opt-in applies and should not be sent with any other correspondence. In order to process your authorization, we require that the authorization be provided by you directly and not through a third party.

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 information with our affiliates to comply with California privacy laws that apply to us.

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 31, 2017

Trustee and Officer Information (unaudited)

Trustees

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

Officers

John H. Gernon
President and Principal Executive Officer

Timothy J. Knierim
Chief Compliance Officer

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

Perkins Coie LLP
30 Rockefeller Plaza
New York, New York 10112

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, 100 F Street, NE, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Trust's Proxy Voting Policy and Procedures and information regarding how the Trust 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 or summary prospectus of the applicable Fund of Morgan Stanley Institutional Fund Trust, which describes in detail the Fund'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 Fund, please visit our website at www.morganstanley.com/im or call toll free 1 (800) 548-7786.

22

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

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

© 2017 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTUSISAN
1784204 EXP 05.31.18

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 18, 2017

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 18, 2017

/s/ Francis Smith

Francis Smith

Principal Financial Officer

May 18, 2017