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 29, 2018

Item 1 - Report to Shareholders

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Semi-Annual Report

March 29, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	15
Statement of Operations	17
Statements of Changes in Net Assets	18
Financial Highlights	19
Notes to Financial Statements	23
Privacy Notice	35
Trustee and Officer Information	38

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 fund 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 29, 2018

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 2018

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018 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 10/1/17		Actual Ending Account Value 3/29/18		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	$	997.20	$	1,022.94	$	1.99	$	2.02		0.40	%
Core Plus Fixed Income Portfolio Class A		1,000.00		995.60		1,021.19		3.73		3.78		0.75
Core Plus Fixed Income Portfolio Class L		1,000.00		994.20		1,019.95		4.97		5.04		1.00
Core Plus Fixed Income Portfolio Class C		1,000.00		992.20		1,017.45		7.45		7.54		1.50

*  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 29, 2018R (unaudited)

Portfolio of Investments

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.7%)
Agency Adjustable Rate Mortgage (0.1%)
Federal Home Loan Mortgage Corporation, Conventional Pool: 12 Month USD LIBOR + 1.62%, 2.50%, 7/1/45	$	166	$	167
Agency Fixed Rate Mortgages (18.8%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
3.00%, 3/1/47		2,611		2,550
3.50%, 1/1/44 - 2/1/45		1,990		2,002
4.00%, 6/1/44 - 10/1/44		917		946
5.41%, 7/1/37 - 8/1/37		22		24
5.44%, 1/1/37 - 6/1/38		77		85
5.46%, 5/1/37 - 1/1/38		92		99
5.48%, 8/1/37 - 10/1/37		50		54
5.50%, 8/1/37 - 4/1/38		87		95
5.52%, 9/1/37 - 1/1/38		28		30
5.62%, 12/1/36 - 12/1/37		88		96
6.00%, 10/1/36 - 8/1/38		150		168
6.50%, 12/1/25 - 8/1/33		137		155
7.00%, 6/1/28 - 11/1/31		50		51
Federal National Mortgage Association,
April TBA:
3.00%, 4/1/33 (a)		2,260		2,257
3.50%, 4/1/48 (a)		17,709		17,747
4.00%, 4/1/48 (a)		6,370		6,537
4.50%, 4/1/48 (a)		2,870		3,006
Conventional Pools:
3.00%, 5/1/30 - 11/1/46		5,336		5,223
3.50%, 8/1/45 - 1/1/48		3,132		3,139
4.00%, 11/1/41 - 8/1/46		5,491		5,670
4.50%, 3/1/41 - 11/1/44		1,950		2,069
5.00%, 3/1/41		285		309
5.50%, 6/1/35 - 1/1/37		77		85
5.62%, 12/1/36		33		35
6.50%, 4/1/24 - 1/1/34		1,085		1,211
7.00%, 11/1/22 - 12/1/33		212		222
9.50%, 4/1/30		132		150
Government National Mortgage Association,
April TBA:
3.50%, 4/20/48 (a)		680		687
Various Pools:
3.50%, 11/20/40 - 7/20/46		2,933		2,966
4.00%, 8/20/41 - 3/20/43		659		689
5.48%, 9/20/37		9		10
6.50%, 5/15/40		715		819
				59,186
Asset-Backed Securities (10.6%)
Accredited Mortgage Loan Trust,
1 Month USD LIBOR + 0.60%, 2.47%, 4/25/34 (b)		1,086		1,051

	Face Amount (000)		Value (000)
American Homes 4 Rent Trust,
6.07%, 10/17/45 (c)	$	601	$	671
AMSR Trust,
1 Month USD LIBOR + 1.40%, 3.21%, 11/17/33 (b)(c)		1,000		1,005
Bayview Koitere Fund Trust,
3.62%, 3/28/33 (c)		800		800
Bayview Opportunity Master Fund IIIa Trust,
3.35%, 11/28/32 (c)		987		987
Blackbird Capital Aircraft Lease Securitization Ltd.,
5.68%, 12/16/41 (c)		695		693
ContiMortgage Home Equity Loan Trust,
8.10%, 8/15/25		24		16
CVS Pass-Through Trust,
6.04%, 12/10/28		637		689
Finance of America Structured Securities Trust,
6.00%, 11/25/27 (b)(c)		1,380		1,341
GMAT Trust,
4.25%, 9/25/20 (c)		515		519
Invitation Homes Trust,
1 Month USD LIBOR + 4.75%, 6.50%, 8/17/32 (b)(c)		1,100		1,113
Labrador Aviation Finance Ltd.,
5.68%, 1/15/42 (c)		537		531
METAL LLC,
4.58%, 10/15/42 (c)		1,059		1,060
MFA Trust,
3.35%, 11/25/47 (c)		1,156		1,151
Nationstar HECM Loan Trust,
3.97%, 9/25/27 (b)(c)		1,000		1,000
4.70%, 5/25/27 (c)		800		798
NRZ Excess Spread-Collateralized Notes,
4.37%, 1/25/23 (c)		566		563
4.59%, 2/25/23 (c)		1,155		1,152
Oak Hill Advisors Residential Loan Trust,
3.00%, 7/25/57 (c)		951		946
OnDeck Asset Securitization Trust II LLC,
4.21%, 5/17/20 (c)		450		451
PNMAC GMSR Issuer Trust,
5.87%, 8/25/23 (b)(c)		400		401
Pretium Mortgage Credit Partners I LLC,
3.25%, 8/27/32 - 3/28/57 (c)		2,693		2,682
3.33%, 12/30/32 (b)(c)		1,097		1,098
3.50%, 4/29/32 (c)		928		929
Prosper Marketplace Issuance Trust,
3.36%, 11/15/23 (c)		900		894
4.87%, 6/17/24 (c)		450		450
RCO Mortgage LLC,
3.38%, 8/25/22 (c)		1,101		1,100
S-Jets Ltd.,
7.02%, 8/15/42 (c)		1,391		1,389

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Asset-Backed Securities (cont'd)
Tricon American Homes Trust,
5.10%, 1/17/36 (c)	$	700	$	716
5.15%, 9/17/34 (c)		450		459
5.77%, 11/17/33 (c)		630		657
U.S. Residential Opportunity Fund IV Trust,
3.35%, 11/27/37 (c)		1,038		1,038
Vantage Data Centers Issuer LLC,
4.07%, 2/16/43 (c)		400		404
VOLT LIV LLC,
3.50%, 2/25/47 (c)		210		210
VOLT LIX LLC,
3.25%, 5/25/47 (c)		418		417
VOLT LXIII LLC,
3.00%, 10/25/47 (c)		1,159		1,151
VOLT LXIV LLC,
3.38%, 10/25/47 (c)		1,093		1,092
VOLT NPL X LLC,
4.75%, 10/26/54 (c)		41		41
VOLT XL LLC,
4.38%, 11/27/45 (c)		264		265
VOLT XXV LLC,
3.50%, 6/26/45 (c)		1,212		1,215
				33,145
Collateralized Mortgage Obligations — Agency Collateral Series (1.3%)
Federal Home Loan Mortgage Corporation,
3.95%, 10/25/48 (b)(c)		750		726
1 Month USD LIBOR + 4.35%, 6.02%, 12/25/26 (b)(c)		277		280
1 Month USD LIBOR + 5.05%, 6.72%, 7/25/23 (b)		309		323
1 Month USD LIBOR + 5.25%, 6.92%, 7/25/26 (b)(c)		242		254
IO
0.33%, 11/25/27 (b)		23,957		684
0.44%, 8/25/27 (b)		14,930		529
IO REMIC
6.00% - 1 Month USD LIBOR, 4.22%, 11/15/43 (b)		1,229		162
6.05% - 1 Month USD LIBOR, 4.27%, 4/15/39 (b)		1,016		74
IO STRIPS
7.50%, 12/15/29		33		9
Federal National Mortgage Association,
IO
6.39% - 1 Month USD LIBOR, 4.52%, 9/25/20 (b)		4,044		277
IO PAC REMIC
8.00%, 9/18/27		125		26
IO REMIC
6.00%, 7/25/33		82		15
IO STRIPS
6.50%, 9/25/29 - 12/25/29		482		79
8.00%, 4/25/24		107		14

	Face Amount (000)			Value (000)
8.50%, 10/25/25	$	41		$	8
9.00%, 11/25/26		38			7
REMIC
7.00%, 9/25/32		241			274
64.60% - 6.33 x 1 Month USD LIBOR, 52.75%, 9/25/20 (d)		—	@		—	@
Government National Mortgage Association,
IO
6.10% - 1 Month USD LIBOR, 4.31%, 7/16/33 (b)		1,318			41
5.00%, 2/16/41		281			66
IO PAC
6.15% - 1 Month USD LIBOR, 4.33%, 10/20/41 (b)		1,788			125
					3,973
Commercial Mortgage-Backed Securities (5.3%)
BAMLL Commercial Mortgage Securities Trust,
1 Month USD LIBOR + 4.00%, 4.57%, 12/15/31 (b)(c)		1,000			986
BBCMS Trust,
4.29%, 9/10/28 (b)(c)		1,037			998
BXP Trust,
4.78%, 11/15/34 (b)(c)		1,150			1,151
CGDB Commercial Mortgage Trust,
1 Month USD LIBOR + 2.50%, 4.28%, 5/15/30 (b)(c)		290			292
Citigroup Commercial Mortgage Trust,
1 Month USD LIBOR + 2.94%, 4.72%, 9/15/27 (b)(c)		650			642
IO
0.89%, 11/10/48 (b)		2,796			126
0.96%, 9/10/58 (b)		9,719			537
COMM Mortgage Trust,
5.09%, 8/10/46 (b)(c)		800			780
IO
0.15%, 7/10/45 (b)		14,202			74
0.94%, 10/10/47 (b)		4,538			154
1.21%, 7/15/47 (b)		4,084			179
Commercial Mortgage Pass-Through Certificates,
4.59%, 2/10/47 (b)(c)		575			548
CSMC Trust,
1 Month USD LIBOR + 4.75%, 6.53%, 4/15/29 (b)(c)		1,000			1,003
GS Mortgage Securities Trust,
4.76%, 8/10/46 (b)(c)		500			482
IO
0.83%, 9/10/47 (b)		5,771			218
1.27%, 10/10/49 (b)		8,120			631
1.35%, 10/10/48 (b)		5,354			400
HMH Trust,
6.29%, 7/5/31 (c)		450			438
InTown Hotel Portfolio Trust,
3.83%, 1/15/33 (b)(c)		579			581

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (cont'd)
JP Morgan Chase Commercial Mortgage Securities Trust,
IO
0.54%, 4/15/46 (b)	$	6,956	$	171
0.81%, 12/15/49 (b)		4,574		197
1.09%, 7/15/47 (b)		10,311		376
JPMBB Commercial Mortgage Securities Trust,
4.66%, 4/15/47 (b)(c)		775		691
IO
1.06%, 8/15/47 (b)		4,447		223
UBS Commercial Mortgage Trust,
IO
1.08%, 12/15/50 (b)		10,479		794
Wells Fargo Commercial Mortgage Trust,
3.94%, 8/15/50 (c)		310		256
IO
1.03%, 12/15/49 (b)		6,799		359
1.24%, 11/15/50 (b)		12,958		1,166
1.65%, 11/15/49 (b)		6,890		642
WFRBS Commercial Mortgage Trust,
3.50%, 8/15/47 (c)		1,400		1,116
4.15%, 5/15/45 (b)(c)		425		391
				16,602
Corporate Bonds (35.6%)
Finance (15.7%)
AerCap Ireland Capital DAC/AerCap Global Aviation Trust,
3.75%, 5/15/19		380		382
Alexandria Real Estate Equities, Inc.,
3.95%, 1/15/27		175		172
American International Group, Inc.,
4.50%, 7/16/44		550		545
4.88%, 6/1/22		375		396
AvalonBay Communities, Inc.,
Series G
2.95%, 5/11/26		375		355
Banco Santander SA,
5.18%, 11/19/25		600		627
Bank of America Corp.,
4.24%, 4/24/38		225		230
6.11%, 1/29/37		250		302
MTN
4.00%, 1/22/25		1,055		1,054
4.25%, 10/22/26		1,088		1,097
Bank of Montreal,
3.80%, 12/15/32		800		759
Bank of New York Mellon Corp. (The),
MTN
3.65%, 2/4/24		525		532
BNP Paribas SA,
3.80%, 1/10/24 (c)		500		499
5.00%, 1/15/21		175		184

	Face Amount (000)		Value (000)
Boston Properties LP,
3.80%, 2/1/24	$	700	$	705
BPCE SA,
5.15%, 7/21/24 (c)		1,075		1,123
Brighthouse Financial, Inc.,
3.70%, 6/22/27 (c)		1,175		1,092
Brookfield Finance LLC,
4.00%, 4/1/24		775		782
Capital One Bank USA NA,
3.38%, 2/15/23		1,625		1,585
Cigna Corp.,
3.88%, 10/15/47		500		448
Citigroup, Inc.,
3.89%, 1/10/28		1,500		1,494
6.68%, 9/13/43		120		156
8.13%, 7/15/39		350		532
Citizens Bank NA,
MTN
2.55%, 5/13/21		250		244
Colony NorthStar, Inc.,
5.00%, 4/15/23		375		351
Cooperatieve Rabobank UA,
3.95%, 11/9/22		650		658
Credit Agricole SA,
3.88%, 4/15/24 (c)		500		508
Credit Suisse Group AG,
3.57%, 1/9/23 (c)		250		249
Credit Suisse Group Funding Guernsey Ltd.,
4.55%, 4/17/26		1,150		1,177
Deutsche Bank AG,
2.70%, 7/13/20		625		612
3.95%, 2/27/23 (e)		850		849
Discover Bank,
7.00%, 4/15/20		250		267
Discover Financial Services,
3.95%, 11/6/24		750		743
Extra Space Storage LP,
3.13%, 10/1/35 (c)		250		279
Federal Realty Investment Trust,
3.63%, 8/1/46		250		222
Five Corners Funding Trust,
4.42%, 11/15/23 (c)		500		523
GE Capital International Funding Co., Unlimited Co.,
4.42%, 11/15/35		615		602
Goldman Sachs Group, Inc. (The),
6.75%, 10/1/37		615		772
MTN
4.80%, 7/8/44		350		378
Guardian Life Insurance Co. of America (The),
4.85%, 1/24/77 (c)		475		491
Hartford Financial Services Group, Inc. (The),
5.50%, 3/30/20		295		309

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
HBOS PLC,
Series G
6.75%, 5/21/18 (c)	$	813	$	817
Healthcare Trust of America Holdings LP,
3.70%, 4/15/23		350		350
HSBC Holdings PLC,
4.25%, 3/14/24		1,900		1,912
HSBC USA, Inc.,
3.50%, 6/23/24		225		224
Humana, Inc.,
3.95%, 3/15/27		350		349
ING Bank N.V.,
5.80%, 9/25/23 (c)		770		833
ING Groep N.V.,
6.00%, 4/16/20 (e)(f)		200		205
Intesa Sanpaolo SpA,
5.25%, 1/12/24		610		644
iStar, Inc.,
5.25%, 9/15/22		300		291
Jefferies Finance LLC/JFIN Co-Issuer Corp.,
7.38%, 4/1/20 (c)		380		386
JPMorgan Chase & Co.,
3.78%, 2/1/28		1,525		1,518
4.13%, 12/15/26		1,075		1,082
LeasePlan Corp. N.V.,
2.88%, 1/22/19 (c)		475		474
Liberty Mutual Group, Inc.,
4.85%, 8/1/44 (c)		150		156
Macquarie Bank Ltd.,
6.63%, 4/7/21 (c)		490		531
MetLife, Inc.,
5.70%, 6/15/35		175		209
Mizuho Financial Group, Inc.,
2.63%, 4/12/21 (c)		600		588
MPT Operating Partnership LP/ MPT Finance Corp.,
5.00%, 10/15/27		300		295
Nationwide Building Society,
3.90%, 7/21/25 (c)		400		405
4.30%, 3/8/29 (c)		600		599
New York Life Global Funding,
1.70%, 9/14/21 (c)		600		571
PNC Bank NA,
3.10%, 10/25/27		975		931
PNC Financial Services Group, Inc. (The),
3.90%, 4/29/24		360		364
Realty Income Corp.,
3.25%, 10/15/22		400		397
3.65%, 1/15/28		650		632
Royal Bank of Scotland Group PLC,
3.88%, 9/12/23		875		865

	Face Amount (000)		Value (000)
Santander UK Group Holdings PLC,
3.57%, 1/10/23	$	1,125	$	1,114
Skandinaviska Enskilda Banken AB,
2.63%, 11/17/20 (c)		500		494
Spirit Realty Capital, Inc.,
3.75%, 5/15/21 (e)		375		381
Standard Chartered PLC,
3.05%, 1/15/21 (c)		325		322
Swedbank AB,
2.38%, 2/27/19 (c)		525		524
Synchrony Bank,
3.00%, 6/15/22		625		605
TD Ameritrade Holding Corp.,
3.63%, 4/1/25		500		504
Toronto-Dominion Bank (The),
3.63%, 9/15/31		725		696
Travelers Cos., Inc. (The),
3.75%, 5/15/46		275		263
UBS Group Funding Switzerland AG,
2.95%, 9/24/20 (c)		525		521
UnitedHealth Group, Inc.,
2.88%, 3/15/23		1,025		1,009
3.75%, 7/15/25		475		482
WEA Finance LLC/Westfield UK & Europe Finance PLC,
3.25%, 10/5/20 (c)		450		451
Wells Fargo & Co.,
3.00%, 10/23/26		1,950		1,828
5.61%, 1/15/44		250		287
				49,394
Industrials (18.2%)
Abbott Laboratories,
3.75%, 11/30/26		1,025		1,021
Air Liquide Finance SA,
1.75%, 9/27/21 (c)		450		430
Amazon.com, Inc.,
2.80%, 8/22/24 (c)		1,625		1,579
Anadarko Petroleum Corp.,
5.55%, 3/15/26		600		656
Anheuser-Busch InBev Finance, Inc.,
3.65%, 2/1/26		475		473
4.90%, 2/1/46		575		623
Apple, Inc.,
2.45%, 8/4/26		400		371
3.85%, 8/4/46		50		49
4.45%, 5/6/44		750		807
AT&T, Inc.,
4.25%, 3/1/27		1,250		1,266
4.50%, 3/9/48		450		420
4.90%, 8/14/37		300		303
5.15%, 2/14/50		400		406
Baidu, Inc.,
2.75%, 6/9/19		650		648

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Becton Dickinson and Co.,
2.89%, 6/6/22	$	600	$	583
BHP Billiton Finance USA Ltd.,
5.00%, 9/30/43		250		289
Biogen, Inc.,
5.20%, 9/15/45		475		521
Booking Holdings, Inc.,
0.90%, 9/15/21 (e)		275		344
BP Capital Markets PLC,
3.12%, 5/4/26		825		799
3.25%, 5/6/22		625		626
Charter Communications Operating LLC/ Charter Communications Operating Capital,
4.91%, 7/23/25		425		435
6.48%, 10/23/45		450		496
CNH Industrial Capital LLC,
4.38%, 11/6/20		625		640
CNOOC Finance 2013 Ltd.,
3.00%, 5/9/23		540		520
Coca-Cola Co. (The),
3.20%, 11/1/23		375		377
Comcast Corp.,
4.00%, 8/15/47 (e)		350		331
4.60%, 8/15/45		380		395
ConocoPhillips Co.,
4.95%, 3/15/26 (e)		600		656
Crown Castle International Corp.,
3.80%, 2/15/28		1,000		964
CSC Holdings LLC,
5.50%, 4/15/27 (c)		475		456
CVS Health Corp.,
4.30%, 3/25/28		1,050		1,057
Daimler Finance North America LLC,
2.25%, 7/31/19 (c)		700		694
Darden Restaurants, Inc.,
3.85%, 5/1/27 (e)		450		446
Dell International LLC/EMC Corp.,
6.02%, 6/15/26 (c)		325		351
Delta Air Lines, Inc.,
2.88%, 3/13/20		475		472
Deutsche Telekom International Finance BV,
3.60%, 1/19/27 (c)		750		738
Discovery Communications LLC,
3.95%, 3/20/28 (e)		425		408
Dollar General Corp.,
1.88%, 4/15/18		550		550
3.25%, 4/15/23		400		397
Eldorado Gold Corp.,
6.13%, 12/15/20 (c)		305		290
Enable Midstream Partners LP,
3.90%, 5/15/24		425		415

	Face Amount (000)		Value (000)
Express Scripts Holding Co.,
4.50%, 2/25/26 (e)	$	500	$	510
4.80%, 7/15/46 (e)		325		331
Exxon Mobil Corp.,
4.11%, 3/1/46		775		816
Ford Motor Credit Co., LLC,
3.20%, 1/15/21		400		397
General Motors Co.,
6.60%, 4/1/36		200		230
GlaxoSmithKline Capital, Inc.,
6.38%, 5/15/38		175		231
Goldcorp, Inc.,
3.70%, 3/15/23		293		292
Halliburton Co.,
5.00%, 11/15/45		500		546
HCA, Inc.,
4.75%, 5/1/23		295		299
Heathrow Funding Ltd.,
4.88%, 7/15/21 (c)		525		555
Home Depot, Inc. (The),
5.88%, 12/16/36		625		805
Illumina, Inc.,
0.00%, 6/15/19		328		364
International Paper Co.,
3.00%, 2/15/27		925		857
J Sainsbury PLC,
Series SBRY
1.25%, 11/21/19	GBP	300		422
Jaguar Land Rover Automotive PLC,
4.50%, 10/1/27 (c)	$	700		662
Johnson Controls International PLC,
3.90%, 2/14/26		500		502
Kinder Morgan Energy Partners LP,
3.95%, 9/1/22		1,175		1,185
Kraft Heinz Foods Co.,
4.38%, 6/1/46		675		621
Lockheed Martin Corp.,
3.10%, 1/15/23		725		721
LyondellBasell Industries N.V.,
4.63%, 2/26/55		450		441
McDonald's Corp.,
MTN
4.60%, 5/26/45		400		423
Medtronic, Inc.,
4.63%, 3/15/45		325		357
Microsoft Corp.,
3.13%, 11/3/25		325		320
4.45%, 11/3/45		750		832
MPLX LP,
4.88%, 6/1/25		250		261
5.20%, 3/1/47		350		367
Newcastle Coal Infrastructure Group Pty Ltd.,
4.40%, 9/29/27 (c)		825		795

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
NOVA Chemicals Corp.,
5.25%, 8/1/23 (c)	$	463	$	468
Novartis Capital Corp.,
4.40%, 5/6/44		375		411
Nuance Communications, Inc.,
1.00%, 12/15/35		425		405
Nvent Finance Sarl,
3.95%, 4/15/23 (c)		775		778
Ooredoo International Finance Ltd.,
3.25%, 2/21/23 (c)		450		435
Oracle Corp.,
2.95%, 5/15/25		381		369
PepsiCo, Inc.,
3.60%, 3/1/24		625		640
Philip Morris International, Inc.,
2.50%, 8/22/22		270		261
Phillips 66 Partners LP,
4.68%, 2/15/45		150		147
QUALCOMM, Inc.,
2.10%, 5/20/20		575		569
Rockies Express Pipeline LLC,
6.88%, 4/15/40 (c)		275		319
Shell International Finance BV,
3.25%, 5/11/25		400		397
Siemens Financieringsmaatschappij N.V.,
2.35%, 10/15/26 (c)		800		732
SK Telecom Co., Ltd.,
2.13%, 5/1/18 (c)		200		200
Southern Copper Corp.,
5.25%, 11/8/42		600		629
Sprint Spectrum Co., LLC/Sprint Spectrum Co., II LLC/Sprint Spectrum Co., III LLC,
3.36%, 3/20/23 (c)		1,257		1,253
Telefonica Emisiones SAU,
4.10%, 3/8/27		850		851
Telenor East Holding II AS,
Series VIP
0.25%, 9/20/19		600		584
Teva Pharmaceutical Finance Netherlands III BV,
2.80%, 7/21/23 (e)		75		64
6.75%, 3/1/28 (c)(e)		425		421
Thermo Fisher Scientific, Inc.,
2.95%, 9/19/26		900		842
Time Warner, Inc.,
3.80%, 2/15/27		400		387
Total Capital International SA,
2.88%, 2/17/22		500		497
Transurban Finance Co., Pty Ltd.,
3.38%, 3/22/27 (c)		550		519
Tyson Foods, Inc.,
4.88%, 8/15/34		375		398

	Face Amount (000)		Value (000)
United Airlines Pass-Through Trust,
Series A
4.00%, 10/11/27	$	581	$	588
United Technologies Corp.,
4.50%, 6/1/42		165		168
Verint Systems, Inc.,
1.50%, 6/1/21		325		318
Verizon Communications, Inc.,
4.13%, 3/16/27		650		660
4.67%, 3/15/55		575		549
Viavi Solutions, Inc.,
0.63%, 8/15/33		375		385
Visa, Inc.,
3.15%, 12/14/25		1,125		1,104
Volkswagen Group of America Finance LLC,
2.40%, 5/22/20 (c)		800		789
Walmart, Inc.,
3.63%, 12/15/47		525		515
Woodside Finance Ltd.,
3.70%, 9/15/26 (c)		675		666
Wyndham Worldwide Corp.,
4.15%, 4/1/24		850		849
Zillow Group, Inc.,
2.00%, 12/1/21		425		516
				57,127
Utilities (1.7%)
Duke Energy Carolinas LLC,
3.75%, 6/1/45		650		631
Duke Energy Corp.,
2.65%, 9/1/26		760		695
Enel Finance International N.V.,
3.63%, 5/25/27 (c)		350		334
Entergy Louisiana LLC,
3.05%, 6/1/31		525		492
ITC Holdings Corp.,
3.35%, 11/15/27 (c)		775		742
Mississippi Power Co.,
3.95%, 3/30/28 (e)		825		832
NRG Energy, Inc.,
6.63%, 1/15/27		300		308
Southern Power Co.,
Series D
1.95%, 12/15/19		550		540
Trans-Allegheny Interstate Line Co.,
3.85%, 6/1/25 (c)		775		781
				5,355
				111,876

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Mortgages — Other (8.8%)
Adjustable Rate Mortgage Trust,
3.81%, 6/25/35 (b)	$	407	$	404
Alternative Loan Trust,
1 Month USD LIBOR + 0.18%, 2.05%, 5/25/47 (b)		158		155
Banc of America Alternative Loan Trust,
1 Month USD LIBOR + 0.65%, 2.52%, 7/25/46 (b)		241		184
5.86%, 10/25/36		624		382
6.00%, 4/25/36		90		90
Banc of America Funding Trust,
5.25%, 7/25/37		291		289
ChaseFlex Trust,
6.00%, 2/25/37		877		702
Eurosail PLC,
3 Month GBP LIBOR + 0.95%, 1.55%, 6/13/45 (b)	GBP	574		775
Farringdon Mortgages No. 2 PLC,
3 Month GBP LIBOR + 1.50%, 2.02%, 7/15/47 (b)		254		352
Federal Home Loan Mortgage Corporation,
3.00%, 7/25/46 - 5/25/47	$	1,701		1,643
3.50%, 5/25/45 - 5/25/47		2,980		2,944
3.88%, 5/25/45 (b)(c)		178		174
4.00%, 5/25/45		101		102
4.22%, 4/25/30 (b)		1,300		1,318
1 Month USD LIBOR + 3.30%, 5.17%, 10/25/27 (b)		400		446
1 Month USD LIBOR + 3.75%, 5.62%, 9/25/24 (b)		602		696
1 Month USD LIBOR + 4.00%, 5.87%, 8/25/24 (b)		278		303
1 Month USD LIBOR + 5.15%, 7.02%, 10/25/29 (b)		300		339
Grifonas Finance PLC,
6 Month EURIBOR + 0.28%, 0.01%, 8/28/39 (b)	EUR	457		503
HarborView Mortgage Loan Trust,
1 Month USD LIBOR + 0.19%, 2.00%, 1/19/38 (b)	$	569		560
IM Pastor 3 FTH,
3 Month EURIBOR + 0.14%, 0.00%, 3/22/43 (b)	EUR	463		503
JP Morgan Mortgage Trust,
3.69%, 6/25/37 (b)	$	185		175
6.00%, 6/25/37		178		178
Lehman Mortgage Trust,
5.50%, 11/25/35 - 2/25/36		865		895
6.50%, 9/25/37		977		739
Paragon Mortgages No. 13 PLC,
3 Month GBP LIBOR + 0.40%, 0.92%, 1/15/39 (b)	GBP	300		398

	Face Amount (000)		Value (000)
Paragon Mortgages No. 15 PLC,
3 Month EURIBOR + 0.54%, 0.21%, 12/15/39 (b)	EUR	800	$	910
PNMAC GMSR Issuer Trust,
4.72%, 2/25/23 (b)(c)	$	300		302
RALI Trust,
5.50%, 12/25/34		652		636
6.00%, 11/25/36		252		226
Seasoned Credit Risk Transfer Trust,
3.00%, 5/25/57		1,690		1,639
3.50%, 6/25/57		1,161		1,159
4.00%, 7/25/56 - 8/25/56 (b)(c)		1,050		996
4.50%, 6/25/57		3,210		3,358
4.75%, 7/25/56 - 6/25/57 (b)(c)		1,008		1,003
Structured Asset Securities Corp. Reverse Mortgage Loan Trust,
1 Month USD LIBOR + 1.85%, 3.72%, 5/25/47 (b)(c)		1,329		1,140
TDA 27 FTA,
3 Month EURIBOR + 0.19%, 0.00%, 12/28/50 (b)	EUR	1,000		1,063
				27,681
Municipal Bonds (0.8%)
Chicago O'Hare International Airport, IL, O'Hare International Airport Revenue
6.40%, 1/1/40	$	255		346
City of New York, NY,
Series G-1
5.97%, 3/1/36		270		344
Illinois State Toll Highway Authority, IL, Highway Revenue, Build America Bonds
6.18%, 1/1/34		477		604
Municipal Electric Authority of Georgia, GA,
6.64%, 4/1/57		283		352
6.66%, 4/1/57		319		392
New York City Transitional Finance Authority Future Tax Secured Revenue, NY,
Transitional Finance Authority Future Tax Secured Revenue
5.27%, 5/1/27		320		364
				2,402
Sovereign (11.1%)
Argentine Republic Government International Bond,
7.50%, 4/22/26		1,181		1,263
Australia Government Bond,
2.75%, 11/21/27	AUD	2,400		1,868
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/23	BRL	10,700		3,388
Cyprus Government International Bond,
3.88%, 5/6/22	EUR	1,525		2,108
Indonesia Government International Bond,
3.85%, 7/18/27	$	2,025		1,988

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Sovereign (cont'd)
Indonesia Treasury Bond,
8.25%, 7/15/21	IDR	29,773,000	$	2,308
Italy Buoni Poliennali Del Tesoro,
1.45%, 9/15/22	EUR	2,900		3,717
Malaysia Government Bond,
3.96%, 9/15/25	MYR	6,300		1,629
Mexican Bonos,
Series M
7.50%, 6/3/27	MXN	27,000		1,505
Mexico Government International Bond,
3.60%, 1/30/25	$	704		696
New Zealand Government Bond,
4.50%, 4/15/27	NZD	2,550		2,105
Petroleos Mexicanos,
6.38%, 1/23/45	$	839		818
Portugal Obrigacoes do Tesouro OT,
5.65%, 2/15/24 (c)	EUR	1,951		3,084
Russian Federal Bond — OFZ,
7.00%, 8/16/23	RUB	130,000		2,324
South Africa Government Bond,
8.00%, 1/31/30	ZAR	26,100		2,147
Spain Government Bond,
1.40%, 4/30/28 (c)	EUR	590		743
4.40%, 10/31/23 (c)		1,225		1,849
Ukraine Government International Bond,
7.75%, 9/1/26	$	1,261		1,294
				34,834
U.S. Agency Security (0.6%)
Federal Home Loan Bank,
0.88%, 10/1/18		2,070		2,058
U.S. Treasury Securities (5.7%)
U.S. Treasury Bond,
3.75%, 11/15/43		2,025		2,314
U.S. Treasury Notes,
0.38%, 1/15/27		3,770		3,676
1.13%, 2/28/21 (e)		8,000		7,716
1.75%, 9/30/19 (e)		4,100		4,071
				17,777
Total Fixed Income Securities (Cost $310,613)				309,701
	Shares
Short-Term Investments (11.1%)
Securities held as Collateral on Loaned Securities (1.0%)
Investment Company (1.0%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $3,054)		3,053,625		3,054

	Shares		Value (000)
Investment Company (9.6%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $30,020)		30,019,816	$	30,020
	Face Amount (000)
U.S. Treasury Security (0.5%)
U.S. Treasury Bill
1.80%, 8/9/18 (g)(h) (Cost $1,662)	$	1,673		1,662
Total Short-Term Investments (Cost $34,736)				34,736
Total Investments (109.8%) (Cost $345,349) Including $17,328 of Securities Loaned (i)(j)				344,437
Liabilities in Excess of Other Assets (–9.8%)				(30,666	)
Net Assets (100.0%)			$	313,771

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(a)  Security is subject to delayed delivery.

(b)  Floating or Variable rate securities: The rates disclosed are as of March 29, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

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

(d)  Inverse Floating Rate Security — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at March 29, 2018.

(e)  All or a portion of this security was on loan at March 29, 2018.

(f)  Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of March 29, 2018.

(g)  Rate shown is the yield to maturity at March 29, 2018.

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

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

(j)  At March 29, 2018, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $8,438,000 and the aggregate gross unrealized depreciation is approximately $7,670,000, resulting in net unrealized depreciation of approximately $768,000.

@  Value is less than $500.

EURIBOR  Euro Interbank Offered Rate.

IO  Interest Only.

LIBOR  London Interbank Offered Rate.

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.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at March 29, 2018:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Australia and New Zealand Banking Group	CHF	747	$	802	4/26/18	$	20
Australia and New Zealand Banking Group	PLN	3,217	$	942	4/26/18		2
Bank of America NA	AUD	4,194	$	3,292	4/26/18		71
Bank of America NA	SEK	53	$	7	4/26/18		—	@
Bank of America NA	$	1,662	NOK	12,991	4/26/18		(3	)
Barclays Bank PLC	MYR	2,940	$	755	4/26/18		(5	)
BNP Paribas SA	BRL	8,080	$	2,527	4/26/18		84
BNP Paribas SA	$	776	ARS	15,710	4/26/18		(5	)
BNP Paribas SA	$	157	ZAR	1,839	4/26/18		(2	)
BNP Paribas SA	ZAR	6,325	$	523	4/26/18		(10	)
BNP Paribas SA	ZAR	8,453	$	723	4/26/18		11
Citibank NA	MXN	73,889	$	3,896	4/26/18		(154	)
JPMorgan Chase Bank NA	AUD	2,421	$	1,891	4/26/18		31
JPMorgan Chase Bank NA	EUR	10,380	$	12,880	4/26/18		88
JPMorgan Chase Bank NA	EUR	1,468	$	1,828	4/26/18		19
JPMorgan Chase Bank NA	IDR	21,283,033	$	1,582	4/26/18		39
JPMorgan Chase Bank NA	MXN	27,430	$	1,465	4/26/18		(38	)
JPMorgan Chase Bank NA	NZD	2,915	$	2,111	4/26/18		4
JPMorgan Chase Bank NA	PEN	487	$	151	4/26/18		—	@
JPMorgan Chase Bank NA	RUB	82,391	$	1,457	4/26/18		23
JPMorgan Chase Bank NA	$	26	EUR	21	4/26/18		(—	@)
JPMorgan Chase Bank NA	$	19	GBP	13	4/26/18		—	@
Royal Bank of Canada	GBP	1,330	$	1,848	4/26/18		(19	)
Royal Bank of Canada	$	138	EUR	110	4/26/18		(2	)
Royal Bank of Canada	$	3,904	MXN	73,547	4/26/18		128
State Street Bank and Trust Co.	MYR	3,507	$	891	4/26/18		(15	)
UBS AG	CHF	820	$	879	4/26/18		20
UBS AG	$	3	JPY	334	4/26/18		—	@
UBS AG	$	1,751	PLN	5,905	4/26/18		(26	)
						$	261

Futures Contracts:

The Fund had the following futures contracts open at March 29, 2018:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Long:
Australian 10 yr. Bond		21	Jun-18	$	2,100		$	2,091		$	36
U.S. Treasury 2 yr. Note		186	Jun-18		37,200			39,545			21
U.S. Treasury 30 yr. Bond		28	Jun-18		2,800			4,105			92
U.S. Treasury 5 yr. Note		138	Jun-18		13,800			15,796			75
U.S. Treasury Ultra Bond		168	Jun-18		16,800			26,959			946
Short:
German Euro OAT		31	Jun-18		(3,100	)		(5,897	)		(106	)
U.S. Treasury 10 yr. Note		115	Jun-18		(11,500	)		(13,931	)		(159	)
U.S. Treasury 10 yr. Ultra Long Bond		44	Jun-18		(4,400	)		(5,714	)		(68	)
										$	837

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Credit Default Swap Agreements:

The Fund had the following credit default swap agreements open at March 29, 2018:

Swap Counterparty and Reference Obligation	Credit Rating of Reference Obligation†	Buy/Sell Protection	Pay/Receive Fixed Rate			Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (Received) (000)			Unrealized Depreciation (000)
Barclays Bank PLC Quest Diagnostics, Inc.	BBB+	Buy		1.00	%	Quarterly	3/20/19	$	995	$	(10	)	$	19		$	(29	)
Deutsche Bank AG CMBX.NA.BB.60	NR	Sell		5.00		Monthly	5/11/63		230		(55	)		1			(56	)
Goldman Sachs International CMBX.NA.BB.60	NR	Sell		5.00		Monthly	5/11/63		286		(68	)		(41	)		(27	)
										$	(133	)	$	(21	)	$	(112	)

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 29, 2018:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)		Upfront Payment Paid (000)		Unrealized Appreciation (000)
Morgan Stanley &  3 Month  Semi-Annual/  Co., LLC*	LIBOR	Receive		2.26	%	Quarterly	12/7/26	$	3,656	$	130	$	—	$	130
Morgan Stanley &  3 Month  Semi-Annual/  Co., LLC*	LIBOR	Receive		2.48		Quarterly	12/21/26		3,683		67		—		67
Morgan Stanley &  3 Month  Semi-Annual/  Co., LLC*	LIBOR	Receive		2.48		Quarterly	5/23/47		3,237		242		—		242
Morgan Stanley &  3 Month  Semi-Annual/  Co., LLC*	LIBOR	Receive		2.56		Quarterly	11/9/47		4,500		255		—		255
										$	694	$	—	$	694

@    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.

OAT  —  Obligations Assimilables du Trésor (French Treasury Obligation).

ARS  —  Argentine Peso

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CHF  —  Swiss Franc

EUR  —  Euro

GBP  —  British Pound

IDR  —  Indonesian Rupiah

JPY  —  Japanese Yen

MXN  —  Mexican Peso

MYR  —  Malaysian Ringgit

NOK  —  Norwegian Krone

NZD  —  New Zealand Dollar

OAT  —  Obligations Assimilables du Trésor (French Treasury Obligation).

PEN  —  Peruvian Nuevo Sol

PLN  —  Polish Zloty

RUB  —  Russian Ruble

SEK  —  Swedish Krona

USD  —  United States Dollar

ZAR  —  South African Rand

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Portfolio Composition**

Classification	Percentage of Total Investments
Agency Fixed Rate Mortgages		17.3	%
Industrials		16.7
Finance		14.5
Sovereign		10.2
Asset-Backed Securities		9.7
Short-Term Investments		9.3
Other***		9.0
Mortgages — Other		8.1
U.S. Treasury Securities		5.2
Total Investments		100.0	%****

**  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 29, 2018.

***  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 $114,038,000 with net unrealized appreciation of approximately $837,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $261,000 and does not include open swap agreements with net unrealized appreciation of approximately $582,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities	March 29, 2018 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $312,275)	$	311,363
Investment in Security of Affiliated Issuer, at Value (Cost $33,074)		33,074
Total Investments in Securities, at Value (Cost $345,349)		344,437
Foreign Currency, at Value (Cost $18)		18
Cash		136
Interest and Paydown Receivable		2,031
Receivable for Variation Margin on Futures Contracts		852
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		540
Receivable for Fund Shares Sold		218
Receivable from Affiliate		36
Upfront Payment Paid on Open Swap Agreements		20
Receivable for Investments Sold		13
Receivable from Securities Lending Income		3
Receivable for Variation Margin on Swap Agreements		1
Other Assets		95
Total Assets		348,400
Liabilities:
Payable for Investments Purchased		30,081
Collateral on Securities Loaned, at Value		3,054
Payable for Fund Shares Redeemed		509
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		279
Payable for Trustees' Fees and Expenses		179
Unrealized Depreciation on Swap Agreements		112
Payable for Advisory Fees		66
Payable for Professional Fees		64
Payable for Custodian Fees		42
Payable for Sub Transfer Agency Fees — Class I		36
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		—	@
Upfront Payment Received on Open Swap Agreements		41
Deferred Capital Gain Country Tax		39
Payable for Administration Fees		21
Payable for Shareholder Services Fees — Class A		11
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		5
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		2
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		1
Other Liabilities		79
Total Liabilities		34,629
Net Assets	$	313,771
Net Assets Consist Of:
Paid-in-Capital	$	515,456
Accumulated Undistributed Net Investment Income		1,906
Accumulated Net Realized Loss		(204,324	)
Unrealized Appreciation (Depreciation) on:
Investments (Net of $39 of Deferred Capital Gain Country Tax)		(951	)
Futures Contracts		837
Swap Agreements		582
Foreign Currency Forward Exchange Contracts		261
Foreign Currency Translations		4
Net Assets	$	313,771

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 29, 2018 (000)
CLASS I:
Net Assets	$	258,417
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		23,512,916
Net Asset Value, Offering and Redemption Price Per Share	$	10.99
CLASS A:
Net Assets	$	48,498
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,408,078
Net Asset Value, Redemption Price Per Share	$	11.00
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.49
Maximum Offering Price Per Share	$	11.49
CLASS L:
Net Assets	$	467
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		42,504
Net Asset Value, Offering and Redemption Price Per Share	$	10.99
CLASS C:
Net Assets	$	6,389
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		584,870
Net Asset Value, Offering and Redemption Price Per Share	$	10.92
(1) Including: Securities on Loan, at Value:	$	17,328

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  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 29, 2018R (unaudited)

Core Plus Fixed Income Portfolio

Statement of Operations	Six Months Ended March 29, 2018 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $13 of Foreign Taxes Withheld)	$	5,282
Dividends from Security of Affiliated Issuer (Note G)		219
Income from Securities Loaned — Net		24
Total Investment Income		5,525
Expenses:
Advisory Fees (Note B)		611
Sub Transfer Agency Fees — Class I		122
Sub Transfer Agency Fees — Class A		37
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		1
Administration Fees (Note C)		130
Shareholder Services Fees — Class A (Note D)		70
Distribution and Shareholder Services Fees — Class L (Note D)		3
Distribution and Shareholder Services Fees — Class C (Note D)		29
Professional Fees		73
Registration Fees		32
Custodian Fees (Note F)		31
Pricing Fees		31
Shareholder Reporting Fees		23
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		5
Other Expenses		28
Total Expenses		1,233
Waiver of Advisory Fees (Note B)		(279	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(124	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(11	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(33	)
Net Expenses		785
Net Investment Income		4,740
Realized Loss:
Investments Sold		(869	)
Foreign Currency Forward Exchange Contracts		(557	)
Foreign Currency Transactions		(4	)
Futures Contracts		(1,954	)
Swap Agreements		(27	)
Net Realized Loss		(3,411	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $29)		(4,594	)
Foreign Currency Forward Exchange Contracts		143
Foreign Currency Translations		1
Futures Contracts		1,387
Swap Agreements		767
Net Change in Unrealized Appreciation (Depreciation)		(2,296	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(5,707	)
Net Decrease in Net Assets Resulting from Operations	$	(967	)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Core Plus Fixed Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	4,740		$	8,063
Net Realized Loss		(3,411	)		(466	)
Net Change in Unrealized Appreciation (Depreciation)		(2,296	)		(368	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(967	)		7,229
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(3,595	)		(6,968	)
Class A:
Net Investment Income		(717	)		(1,021	)
Class L:
Net Investment Income		(12	)		(26	)
Class C:
Net Investment Income		(47	)		(89	)
Total Distributions		(4,371	)		(8,104	)
Capital Share Transactions:(1)
Class I:
Subscribed		56,578			145,610
Distributions Reinvested		3,508			6,832
Redeemed		(63,373	)		(79,520	)
Class A:
Subscribed		16,289			68,634
Distributions Reinvested		717			1,021
Redeemed		(28,414	)		(32,914	)
Class L:
Exchanged		99			329
Distributions Reinvested		12			26
Redeemed		(761	)		(62	)
Class C:
Subscribed		2,290			2,739
Distributions Reinvested		46			87
Redeemed		(742	)		(1,463	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(13,751	)		111,319
Total Increase (Decrease) in Net Assets		(19,089	)		110,444
Net Assets:
Beginning of Period		332,860			222,416
End of Period (Including Accumulated Undistributed Net Investment Income of $1,906 and $1,537)	$	313,771		$	332,860
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		5,126			13,189
Shares Issued on Distributions Reinvested		316			627
Shares Redeemed		(5,746	)		(7,289	)
Net Increase (Decrease) in Class I Shares Outstanding		(304	)		6,527
Class A:
Shares Subscribed		1,470			6,217
Shares Issued on Distributions Reinvested		65			94
Shares Redeemed		(2,572	)		(3,009	)
Net Increase (Decrease) in Class A Shares Outstanding		(1,037	)		3,302
Class L:
Shares Exchanged		9			30
Shares Issued on Distributions Reinvested		1			2
Shares Redeemed		(69	)		(5	)
Net Increase (Decrease) in Class L Shares Outstanding		(59	)		27
Class C:
Shares Subscribed		208			250
Shares Issued on Distributions Reinvested		4			8
Shares Redeemed		(68	)		(134	)
Net Increase in Class C Shares Outstanding		144			124

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Core Plus Fixed Income Portfolio

	Class I
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	11.17		$	11.22		$	10.18		$	10.36		$	9.91		$	10.48
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.16			0.32			0.34			0.33			0.31			0.32
Net Realized and Unrealized Gain (Loss)		(0.19	)		(0.02	)		1.11			(0.20	)		0.45			(0.36	)
Total from Investment Operations		(0.03	)		0.30			1.45			0.13			0.76			(0.04	)
Distributions from and/or in Excess of:
Net Investment Income		(0.15	)		(0.35	)		(0.41	)		(0.31	)		(0.31	)		(0.53	)
Net Asset Value, End of Period	$	10.99		$	11.17		$	11.22		$	10.18		$	10.36		$	9.91
Total Return(3)		(0.28	)%(10)		2.79	%(4)		14.80	%(5)		1.15	%		7.82	%		(0.42	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	258,417		$	265,958		$	193,976		$	197,057		$	192,868		$	187,014
Ratio of Expenses to Average Net Assets(12)		0.40	%(6)(11)		0.40	%(6)		0.43	%(6)(7)		0.51	%(6)(8)		0.61	%(6)		0.71	%(6)(9)
Ratio of Net Investment Income to Average Net Assets(12)		2.99	%(6)(11)		2.94	%(6)		3.31	%(6)(7)		3.24	%(6)(8)		3.02	%(6)		3.14	%(6)(9)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(11)		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		116	%(10)		350	%		262	%		348	%		296	%		226	%
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.69	%(11)		0.73	%		0.74	%		0.73	%		0.81	%		0.73	%
Net Investment Income to Average Net Assets		2.70	%(11)		2.61	%		3.00	%		3.02	%		2.82	%		3.12	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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 0.46% 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 2.33%.

(5)  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%.

(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 0.42% for Class I shares. Prior to January 4, 2016, the maximum ratio was 0.52% for Class I 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 0.52% for Class I shares. Prior to October 6, 2014, the maximum ratio was 0.62% for Class I 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 0.62% for Class I shares.

(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 29, 2018

Financial Highlights

Core Plus Fixed Income Portfolio

	Class A
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	11.18		$	11.23		$	10.19		$	10.37		$	9.93		$	10.50
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.15			0.28			0.30			0.30			0.27			0.29
Net Realized and Unrealized Gain (Loss)		(0.20	)		(0.02	)		1.12			(0.21	)		0.45			(0.36	)
Total from Investment Operations		(0.05	)		0.26			1.42			0.09			0.72			(0.07	)
Distributions from and/or in Excess of:
Net Investment Income		(0.13	)		(0.31	)		(0.38	)		(0.27	)		(0.28	)		(0.50	)
Net Asset Value, End of Period	$	11.00		$	11.18		$	11.23		$	10.19		$	10.37		$	9.93	��
Total Return(3)		(0.44	)%(10)		2.43	%(4)		14.31	%(5)		0.90	%		7.35	%		(0.68	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	48,498		$	60,874		$	24,071		$	3,553		$	2,941		$	3,152
Ratio of Expenses to Average Net Assets(12)		0.75	%(6)(11)		0.75	%(6)		0.76	%(6)(7)		0.86	%(6)(8)		0.96	%(6)		0.96	%(6)(9)
Ratio of Net Investment Income to Average Net Assets(12)		2.65	%(6)(11)		2.58	%(6)		2.82	%(6)(7)		2.87	%(6)(8)		2.67	%(6)		2.89	%(6)(9)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(11)		0.02	%		0.02	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		116	%(10)		350	%		262	%		348	%		296	%		226	%
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.98	%(11)		1.02	%		1.15	%		1.07	%		1.11	%		0.98	%
Net Investment Income to Average Net Assets		2.42	%(11)		2.31	%		2.43	%		2.66	%		2.52	%		2.87	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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 0.46% 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 1.97%.

(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 A shares would have been approximately 6.55%.

(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 0.77% for Class A shares. Prior to January 4, 2016, the maximum ratio was 0.87% for Class A 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 0.87% for Class A shares. Prior to October 6, 2014, the maximum ratio was 0.97% for Class A 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 0.97% for Class A 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 29, 2018

Financial Highlights

Core Plus Fixed Income Portfolio

	Class L
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	11.17		$	11.23		$	10.18		$	10.37		$	9.92		$	10.49
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.13			0.26			0.28			0.27			0.25			0.27
Net Realized and Unrealized Gain (Loss)		(0.19	)		(0.03	)		1.12			(0.21	)		0.45			(0.36	)
Total from Investment Operations		(0.06	)		0.23			1.40			0.06			0.70			(0.09	)
Distributions from and/or in Excess of:
Net Investment Income		(0.12	)		(0.29	)		(0.35	)		(0.25	)		(0.25	)		(0.48	)
Net Asset Value, End of Period	$	10.99		$	11.17		$	11.23		$	10.18		$	10.37		$	9.92
Total Return(3)		(0.58	)%(10)		2.16	%(4)		14.10	%(5)		0.59	%		7.19	%		(0.95	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	467		$	1,138		$	841		$	333		$	108		$	88
Ratio of Expenses to Average Net Assets(12)		1.00	%(6)(11)		1.00	%(6)		1.03	%(6)(7)		1.11	%(6)(8)		1.21	%(6)		1.21	%(6)(9)
Ratio of Net Investment Income to Average Net Assets(12)		2.40	%(6)(11)		2.37	%(6)		2.65	%(6)(7)		2.65	%(6)(8)		2.42	%(6)		2.64	%(6)(9)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(11)		0.02	%		0.01	%		0.02	%		0.01	%		0.01	%
Portfolio Turnover Rate		116	%(10)		350	%		262	%		348	%		296	%		226	%
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.29	%(11)		1.35	%		1.82	%		1.76	%		3.10	%		1.27	%
Net Investment Income to Average Net Assets		2.11	%(11)		2.02	%		1.86	%		2.00	%		0.53	%		2.58	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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)  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 0.46% 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 1.70%.

(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.
21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Core Plus Fixed Income Portfolio

	Class C
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from April 30, 2015(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			September 30, 2015
Net Asset Value, Beginning of Period	$	11.10		$	11.17		$	10.16		$	10.44
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.10			0.20			0.22			0.10
Net Realized and Unrealized Gain (Loss)		(0.19	)		(0.03	)		1.12			(0.31	)
Total from Investment Operations		(0.09	)		0.17			1.34			(0.21	)
Distributions from and/or in Excess of:
Net Investment Income		(0.09	)		(0.24	)		(0.33	)		(0.07	)
Net Asset Value, End of Period	$	10.92		$	11.10		$	11.17		$	10.16
Total Return(4)		(0.78	)%(9)		1.57	%(5)		13.52	%(6)		(2.02	)%(9)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	6,389		$	4,890		$	3,528		$	49
Ratio of Expenses to Average Net Assets(11)		1.50	%(7)(10)		1.50	%(7)		1.51	%(7)(8)		1.61	%(7)(10)
Ratio of Net Investment Income to Average Net Assets(11)		1.90	%(7)(10)		1.86	%(7)		2.04	%(7)(8)		2.23	%(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(10)		0.02	%		0.02	%		0.01	%(10)
Portfolio Turnover Rate		116	%(9)		350	%		262	%		348	%(9)
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.69	%(10)		1.74	%		2.00	%		14.06	%(10)
Net Investment Income (Loss) to Average Net Assets		1.71	%(10)		1.62	%		1.55	%		(10.22	)%(10)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 0.46% 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 1.11%.

(6)  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%.

(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 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.

(9)  Not Annualized.

(10)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

The Fund has suspended offering Class L shares for sale to all investors. Class L shareholders of the Fund do not have the option to purchasing additional Class L shares. However, existing Class L shareholders may invest in additional Class L shares 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.

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018:

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	$	—	$	167	$	—	$	167
Agency Fixed Rate Mortgages		—		59,186		—		59,186
Asset-Backed Securities		—		33,145		—		33,145
Collateralized Mortgage Obligations — Agency Collateral Series		—		3,973		—		3,973
Commercial Mortgage- Backed Securities		—		16,602		—		16,602
Corporate Bonds		—		111,876		—		111,876
Mortgages — Other		—		27,681		—		27,681
Municipal Bonds		—		2,402		—		2,402
Sovereign		—		34,834		—		34,834
U.S. Agency Securities		—		2,058		—		2,058

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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	$	—		$	17,777		$	—	$	17,777
Total Fixed Income Securities		—			309,701			—		309,701
Short-Term Investments
Investment Company		33,074			—			—		33,074
U.S. Treasury Securities		—			1,662			—		1,662
Total Short-Term Investments		33,074			1,662			—		34,736
Foreign Currency Forward Exchange Contracts		—			540			—		540
Futures Contracts		1,170			—			—		1,170
Interest Rate Swap Agreements		—			694			—		694
Total Assets		34,244			312,597			—		346,841
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(279	)		—		(279	)
Futures Contracts		(333	)		—			—		(333	)
Credit Default Swap Agreements		—			(112	)		—		(112	)
Total Liabilities		(333	)		(391	)		—		(724	)
Total	$	33,911		$	312,206		$	—	$	346,117

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 29, 2018, 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, an additional class of shares (identified as "Foreign" in

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 ("SEC") 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

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 (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.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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.

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 29, 2018:

	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	$	540
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		1,170	(a)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		694	(a)
Total			$	2,404
	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	$	(279	)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		(333	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(112	)
Total			$	(724	)

(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

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

contract for the six months ended March 29, 2018 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(557	)
Interest Rate Risk	Futures Contracts		(1,954	)
Credit Risk	Swap Agreements		8
Interest Rate Risk	Swap Agreements		(35	)
	Total	$	(2,538	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	143
Interest Rate Risk	Futures Contracts		1,387
Credit Risk	Swap Agreements		6
Interest Rate Risk	Swap Agreements		761
	Total	$	2,297

At March 29, 2018, 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	$	540	$	(279	)
Swap Agreements		—		(112	)
Total	$	540	$	(391	)

(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 29, 2018:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the 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	$	22	$	—		$	—	$	22
Bank of America NA		71		(3	)		—		68
BNP Paribas SA		95		(17	)		—		78
JPMorgan Chase Bank NA		204		(38	)		—		166
Royal Bank of Canada		128		(21	)		—		107
UBS AG		20		(20	)		—		0
Total	$	540	$	(99	)	$	—	$	441
Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Bank of America NA	$	3	$	(3	)	$	—	$	0
Barclays Bank PLC		34		—			—		34
BNP Paribas SA		17		(17	)		—		0
Citibank NA		154		—			—		154
Deutsche Bank AG		56		—			—		56
Goldman Sachs International		27		—			—		27
JPMorgan Chase Bank NA		38		(38	)		—		0
Royal Bank of Canada		21		(21	)		—		0
State Street Bank and Trust Co.		15		—			—		15
UBS AG		26		(20	)		—		6
Total	$	391	$	(99	)	$	—	$	292

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

For the six months ended March 29, 2018, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	39,650,000
Futures Contracts:
Average monthly original value	$	112,591,000
Swap Agreements:
Average monthly notional amount	$	15,837,000

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 securities 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 29, 2018:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	17,328	(d)	$	—	$	(17,328	)(e)(f)	$	0

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

(e) The Fund received cash collateral of approximately $3,054,000, 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 $14,641,000 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 ASC 860, "Transfers & Servicing: 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 29, 2018:

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	$	3,054	$	—	$	—	$	—	$	3,054
Total Borrowings	$	3,054	$	—	$	—	$	—	$	3,054
Gross amount of recognized liabilities for securities lending transactions									$	3,054

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

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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: Dividends 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 29, 2018, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.19% 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 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 29, 2018, approximately $279,000 of advisory fees were waived and approximately $136,000 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

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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. Effective January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

F. Custodian Fees: State Street (the "Custodian") also 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 29, 2018, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $70,012,000 and $39,967,000, respectively. For the six months ended March 29, 2018, purchases and sales of long-term U.S. Government

securities were approximately $309,330,000 and $321,820,000, 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 29, 2018, advisory fees paid were reduced by approximately $33,000 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 29, 2018 is as follows:

Affiliated Investment Company	Value September 30, 2017 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	66,270	$	86,654	$	119,850	$	219

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 29, 2018 (000)
Liquidity Funds	$	—	$	—	$	33,074

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 29, 2018, 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.

32

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 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. Each of the tax years in the four-year period ended September 30, 2017, 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 2017 and 2016 was as follows:

2017 Distributions Paid From: Ordinary Income (000)		2016 Distributions Paid From: Ordinary Income (000)
$	8,104	$	7,663

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

and an expired capital loss carryforward, resulted in the following reclassifications among the components of net assets at September 30, 2017:

Accumulated Undistributed Net Investment Income (000)			Accumulated Net Realized Loss (000)		Paid-in- Capital (000)
$	(1,068	)	$	245,871	$	(244,803	)

At September 30, 2017, 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)
$	1,532	$	—

At September 30, 2017, the Fund had available for federal income tax purposes unused capital losses which will expire on the indicated dates:

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

Capital loss carryforwards of approximately $244,803,000 expired during the year ended September 30, 2017.

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, 2017, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $188,000.

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 1 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 29, 2018, the Fund did not have any borrowings under the Facility.

J. Other: At March 29, 2018, 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 54.7%.

33

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

K. Accounting Pronouncement: In March 2017, FASB issued an Accounting Standard Update, ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the "ASU") which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

34

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

35

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 non-affiliated 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:

  DST Asset Manager Solutions, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

36

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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:

DST Asset Manager Solutions, 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 non-affiliated 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.

37

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

Michael J. Key
Vice President

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

DST Asset Manager Solutions, 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 to the SEC's Public Reference Section, Washington, D.C. 20549-1520.

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.

38

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

© 2018 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTCPFISAN
2100454 EXP 05.31.19

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Corporate Bond Portfolio

Semi-Annual Report

March 29, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 fund 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 29, 2018

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 2018

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018 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 10/1/17		Actual Ending Account Value 3/29/18		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	$	984.90	$	1,021.44	$	3.46	$	3.53		0.70	%
Corporate Bond Portfolio Class A		1,000.00		984.10		1,019.90		5.00		5.09		1.01
Corporate Bond Portfolio Class L		1,000.00		982.40		1,018.20		6.67		6.79		1.35
Corporate Bond Portfolio Class C		1,000.00		979.30		1,015.96		8.88		9.05		1.80

*  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 29, 2018R (unaudited)

Portfolio of Investments

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.1%)
Asset-Backed Securities (0.5%)
CVS Pass-Through Trust,
6.04%, 12/10/28	$	97	$	105
8.35%, 7/10/31 (a)		119		146
				251
Corporate Bonds (97.6%)
Finance (36.4%)
ABN Amro Bank N.V.
4.75%, 7/28/25 (a)		200		205
AerCap Ireland Capital DAC/AerCap Global Aviation Trust
3.75%, 5/15/19		150		151
Air Lease Corp.,
2.50%, 3/1/21		250		245
2.63%, 7/1/22		150		145
3.38%, 6/1/21		75		75
Alexandria Real Estate Equities, Inc.
3.95%, 1/15/27		75		73
American International Group, Inc.
4.50%, 7/16/44		150		149
Assurant, Inc.
4.20%, 9/27/23		125		126
AvalonBay Communities, Inc.,
Series G
2.95%, 5/11/26		100		95
Bank of America Corp.,
MTN
4.00%, 1/22/25		180		180
4.24%, 4/24/38		275		281
MTN
4.25%, 10/22/26		475		479
Bank of New York Mellon Corp. (The),
MTN
3.65%, 2/4/24		60		61
BNP Paribas SA
3.80%, 1/10/24 (a)		250		250
Boston Properties LP,
3.65%, 2/1/26		100		98
3.80%, 2/1/24		25		25
BPCE SA
5.15%, 7/21/24 (a)		200		209
Brighthouse Financial, Inc.
3.70%, 6/22/27 (a)		200		186
Brixmor Operating Partnership LP
4.13%, 6/15/26		225		221
Brookfield Finance, Inc.
4.25%, 6/2/26		150		151
Capital One Financial Corp.,
3.20%, 2/5/25		275		264
3.30%, 10/30/24		75		72
3.75%, 3/9/27		125		121

	Face Amount (000)		Value (000)
Chubb INA Holdings, Inc.
3.35%, 5/15/24	$	125	$	125
Cigna Corp.
3.88%, 10/15/47		100		90
Citigroup, Inc.,
3.89%, 1/10/28		425		423
4.45%, 9/29/27		225		228
6.68%, 9/13/43		50		65
8.13%, 7/15/39		100		152
Citizens Bank NA,
MTN
2.55%, 5/13/21		250		244
CNA Financial Corp.
5.75%, 8/15/21		75		81
Commerzbank AG
8.13%, 9/19/23 (a)		200		233
Credit Agricole SA
4.13%, 1/10/27 (a)		250		250
Credit Suisse AG,
MTN
3.63%, 9/9/24		250		249
Credit Suisse Group AG
3.87%, 1/12/29 (a)		250		243
CubeSmart LP
3.13%, 9/1/26		50		47
Deutsche Bank AG,
2.70%, 7/13/20		200		196
3.15%, 1/22/21		150		148
3.95%, 2/27/23 (b)		100		100
Digital Realty Trust LP
3.70%, 8/15/27		150		145
Discover Financial Services
3.95%, 11/6/24		250		248
ERP Operating LP
3.50%, 3/1/28		175		172
Extra Space Storage LP
3.13%, 10/1/35 (a)		100		111
Federal Realty Investment Trust
3.63%, 8/1/46		75		67
Five Corners Funding Trust
4.42%, 11/15/23 (a)		200		209
GE Capital International Funding Co., Unlimited Co.
4.42%, 11/15/35		211		207
Goldman Sachs Group, Inc. (The),
2.91%, 6/5/23		125		122
MTN
4.80%, 7/8/44		225		243
6.25%, 2/1/41		75		95
6.75%, 10/1/37		230		289
Guardian Life Insurance Co. of America (The)
4.85%, 1/24/77 (a)		100		103
Hartford Financial Services Group, Inc. (The)
5.50%, 3/30/20		275		288

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Healthcare Trust of America Holdings LP
3.70%, 4/15/23	$	100	$	100
High Street Funding Trust I
4.11%, 2/15/28 (a)		200		202
HSBC Holdings PLC
4.38%, 11/23/26		450		449
HSBC USA, Inc.
3.50%, 6/23/24		100		100
Humana, Inc.
4.80%, 3/15/47		100		104
ING Bank N.V.
5.80%, 9/25/23 (a)		100		108
iStar, Inc.
5.25%, 9/15/22		125		121
Jackson National Life Global Funding
2.20%, 1/30/20 (a)		300		297
JPMorgan Chase & Co.,
3.78%, 2/1/28		350		348
4.13%, 12/15/26		650		654
LeasePlan Corp. N.V.
2.88%, 1/22/19 (a)		200		199
Liberty Mutual Group, Inc.
4.85%, 8/1/44 (a)		50		52
Lincoln National Corp.
7.00%, 6/15/40		75		99
Lloyds Banking Group PLC,
3.10%, 7/6/21		200		199
4.38%, 3/22/28		200		202
Macquarie Group Ltd.
4.15%, 3/27/24 (a)		250		251
Massachusetts Mutual Life Insurance Co.
4.50%, 4/15/65 (a)		50		48
Metropolitan Life Global Funding I
2.00%, 4/14/20 (a)		200		196
MPT Operating Partnership LP/MPT Finance Corp.
5.00%, 10/15/27		125		123
Nationwide Building Society
4.30%, 3/8/29 (a)		200		200
New York Life Global Funding
2.90%, 1/17/24 (a)		225		222
Northern Trust Corp.
3.38%, 5/8/32		125		120
PNC Bank NA
3.10%, 10/25/27		325		310
PNC Financial Services Group, Inc. (The)
3.90%, 4/29/24		80		81
Realty Income Corp.,
3.25%, 10/15/22		150		149
3.65%, 1/15/28		75		73
Royal Bank of Scotland Group PLC
3.88%, 9/12/23		200		198

	Face Amount (000)		Value (000)
Santander UK Group Holdings PLC
3.57%, 1/10/23	$	200	$	198
Santander UK PLC
5.00%, 11/7/23 (a)		200		207
Skandinaviska Enskilda Banken AB
2.63%, 11/17/20 (a)		200		198
Spirit Realty Capital, Inc.
3.75%, 5/15/21 (b)		125		127
Standard Chartered PLC
2.10%, 8/19/19 (a)		225		222
Synchrony Bank
3.00%, 6/15/22		250		242
Synchrony Financial
3.95%, 12/1/27		125		118
TD Ameritrade Holding Corp.,
3.30%, 4/1/27		75		73
3.63%, 4/1/25		100		101
Toronto-Dominion Bank (The)
3.63%, 9/15/31		175		168
Travelers Cos., Inc. (The)
3.75%, 5/15/46		50		48
UBS Group Funding Switzerland AG
3.49%, 5/23/23 (a)		425		420
UnitedHealth Group, Inc.,
2.75%, 2/15/23		55		54
3.75%, 7/15/25		250		253
Wells Fargo & Co.,
3.00%, 10/23/26		725		680
MTN
4.10%, 6/3/26		100		99
Westpac Banking Corp.
2.85%, 5/13/26		150		141
				17,589
Industrials (52.7%)
21st Century Fox America, Inc.
4.75%, 9/15/44		100		108
ABB Treasury Center USA, Inc.
4.00%, 6/15/21 (a)		50		52
Abbott Laboratories,
3.40%, 11/30/23		250		248
4.90%, 11/30/46		100		110
AbbVie, Inc.,
3.20%, 5/14/26		50		48
4.70%, 5/14/45		75		78
Alfa SAB de CV
5.25%, 3/25/24 (a)(b)		200		208
Alibaba Group Holding Ltd.
2.80%, 6/6/23		200		194
Alimentation Couche-Tard, Inc.
3.55%, 7/26/27 (a)		150		144
Allergan Funding SCS
4.75%, 3/15/45 (b)		94		93

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Altria Group, Inc.
5.38%, 1/31/44	$	55	$	63
Amazon.com, Inc.,
4.25%, 8/22/57 (a)		125		125
4.95%, 12/5/44		50		57
American Airlines Pass-Through Trust
4.00%, 1/15/27		155		156
Amgen, Inc.
4.66%, 6/15/51		134		139
Anadarko Petroleum Corp.
5.55%, 3/15/26		250		273
Andeavor
4.75%, 12/15/23		225		234
Anheuser-Busch InBev Finance, Inc.,
3.65%, 2/1/26		275		274
4.90%, 2/1/46		225		244
Anheuser-Busch InBev Worldwide, Inc.
3.50%, 1/12/24 (c)		50		50
Apple, Inc.,
3.35%, 2/9/27		200		198
3.85%, 5/4/43 - 8/4/46		225		221
4.50%, 2/23/36		125		137
APT Pipelines Ltd.
4.20%, 3/23/25 (a)		200		203
Ashtead Capital, Inc.
4.13%, 8/15/25 (a)		200		192
AstraZeneca PLC
6.45%, 9/15/37		125		162
AT&T, Inc.,
4.25%, 3/1/27		300		304
4.50%, 3/9/48		137		128
4.90%, 8/14/37		250		252
5.15%, 2/14/50		250		254
Baidu, Inc.,
2.88%, 7/6/22		200		194
3.25%, 8/6/18		200		200
Becton Dickinson and Co.,
2.89%, 6/6/22		100		97
4.69%, 12/15/44		75		76
BHP Billiton Finance USA Ltd.
5.00%, 9/30/43		75		87
Biogen, Inc.
5.20%, 9/15/45		100		110
BMW US Capital LLC
2.70%, 4/6/22 (a)		250		246
Booking Holdings, Inc.
0.90%, 9/15/21 (b)		100		125
BP Capital Markets PLC,
3.02%, 1/16/27		100		95
3.12%, 5/4/26		125		121
Brambles USA, Inc.
4.13%, 10/23/25 (a)		150		152

	Face Amount (000)		Value (000)
British Airways Pass-Through Trust
4.63%, 12/20/25 (a)	$	144	$	150
Broadcom Corp./Broadcom Cayman Finance Ltd.
2.20%, 1/15/21		250		243
Buckeye Partners LP
4.13%, 12/1/27 (b)		175		168
Burlington Northern Santa Fe LLC,
4.40%, 3/15/42		75		79
4.55%, 9/1/44		50		54
Carlisle Cos., Inc.
3.50%, 12/1/24		100		98
Caterpillar, Inc.
3.80%, 8/15/42		50		50
Celgene Corp.
4.55%, 2/20/48		75		74
Charter Communications Operating LLC/ Charter Communications Operating Capital,
4.20%, 3/15/28		150		144
4.91%, 7/23/25		75		77
6.48%, 10/23/45		150		165
Cimarex Energy Co.
3.90%, 5/15/27		225		222
Comcast Corp.
3.15%, 2/15/28		575		548
Concho Resources, Inc.
3.75%, 10/1/27		200		196
ConocoPhillips Co.
4.95%, 3/15/26 (b)		200		219
Crown Castle International Corp.,
3.40%, 2/15/21		100		100
3.80%, 2/15/28		100		96
4.45%, 2/15/26		75		76
CSC Holdings LLC
5.50%, 4/15/27 (a)		200		192
CSX Corp.
2.60%, 11/1/26		125		114
Ctrip.com International Ltd.
1.25%, 9/15/22		125		130
CVS Health Corp.,
2.13%, 6/1/21		75		72
4.30%, 3/25/28		225		226
4.78%, 3/25/38		225		229
Darden Restaurants, Inc.
3.85%, 5/1/27 (b)		150		149
Dell International LLC/EMC Corp.
8.10%, 7/15/36 (a)		125		152
Delta Air Lines, Inc.
3.63%, 3/15/22		200		200
Deutsche Telekom International Finance BV
8.75%, 6/15/30		75		106
Discovery Communications LLC
3.95%, 3/20/28 (b)		150		144

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Dollar General Corp.
3.25%, 4/15/23	$	175	$	174
Eastman Chemical Co.
3.80%, 3/15/25		100		101
eBay, Inc.
2.15%, 6/5/20		125		123
Eldorado Gold Corp.
6.13%, 12/15/20 (a)		105		100
Embraer Netherlands Finance BV
5.40%, 2/1/27		65		69
Enable Midstream Partners LP,
3.90%, 5/15/24		125		122
4.40%, 3/15/27		100		98
Energy Transfer Partners LP
6.50%, 2/1/42		125		135
Enterprise Products Operating LLC
4.45%, 2/15/43		125		125
Express Scripts Holding Co.,
4.50%, 2/25/26 (b)		100		102
4.80%, 7/15/46 (b)		50		51
Exxon Mobil Corp.
4.11%, 3/1/46		100		105
FedEx Corp.
3.20%, 2/1/25		100		98
Finisar Corp.
0.50%, 12/15/36 (b)		125		113
Ford Motor Credit Co., LLC
3.10%, 5/4/23		200		192
General Electric Co.,
4.50%, 3/11/44 (b)		100		99
Series D
5.00%, 1/21/21 (d)		125		124
General Motors Co.,
6.60%, 4/1/36		25		29
6.75%, 4/1/46		25		29
General Motors Financial Co., Inc.,
3.95%, 4/13/24		100		99
4.20%, 3/1/21		150		153
Gilead Sciences, Inc.,
4.50%, 2/1/45		25		26
4.80%, 4/1/44		50		54
GlaxoSmithKline Capital, Inc.
6.38%, 5/15/38		75		99
Glencore Funding LLC
3.88%, 10/27/27 (a)(b)		125		119
Goldcorp, Inc.
5.45%, 6/9/44		100		112
Halliburton Co.
5.00%, 11/15/45		125		137
Harris Corp.
4.85%, 4/27/35		75		80

	Face Amount (000)		Value (000)
Heathrow Funding Ltd.
4.88%, 7/15/21 (a)	$	190	$	201
Hewlett Packard Enterprise Co.
2.10%, 10/4/19 (a)		150		148
Home Depot, Inc. (The),
2.13%, 9/15/26		50		45
3.35%, 9/15/25		25		25
5.88%, 12/16/36		159		205
Illumina, Inc.
0.00%, 6/15/19		100		111
International Paper Co.
3.00%, 2/15/27		250		232
Johnson Controls International PLC
3.90%, 2/14/26		75		75
Kinder Morgan Energy Partners LP,
3.95%, 9/1/22		75		76
5.00%, 8/15/42		125		121
Kinder Morgan, Inc.
5.55%, 6/1/45		50		53
Kohl's Corp.
5.55%, 7/17/45		75		73
Kraft Heinz Foods Co.
4.38%, 6/1/46		175		161
Kroger Co. (The)
6.90%, 4/15/38		80		99
Lockheed Martin Corp.
3.55%, 1/15/26		125		124
Lowe's Cos., Inc.
2.50%, 4/15/26		175		162
LyondellBasell Industries N.V.
4.63%, 2/26/55		125		123
Macy's Retail Holdings, Inc.
2.88%, 2/15/23 (b)		150		142
McDonald's Corp.,
MTN
4.60%, 5/26/45		100		106
Medtronic, Inc.
4.63%, 3/15/45		125		137
Microsoft Corp.,
3.13%, 11/3/25		50		49
4.45%, 11/3/45		325		361
Molson Coors Brewing Co.
2.25%, 3/15/20		175		173
MPLX LP,
4.00%, 2/15/25		100		100
4.88%, 6/1/25		25		26
5.20%, 3/1/47		100		105
Newcastle Coal Infrastructure Group Pty Ltd.
4.40%, 9/29/27 (a)		250		241
Nissan Motor Acceptance Corp.
2.55%, 3/8/21 (a)		150		148
Noble Energy, Inc.
5.05%, 11/15/44		50		52

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
NOVA Chemicals Corp.
5.25%, 8/1/23 (a)	$	120	$	121
Nuance Communications, Inc.
1.00%, 12/15/35		45		43
Nvent Finance Sarl
3.95%, 4/15/23 (a)		250		251
Omnicom Group, Inc.
3.63%, 5/1/22		95		96
Ooredoo International Finance Ltd.
3.25%, 2/21/23 (a)		225		217
Oracle Corp.,
3.80%, 11/15/37		150		149
4.50%, 7/8/44		150		160
Patterson-UTI Energy, Inc.
3.95%, 2/1/28 (a)		100		96
Pfizer, Inc.
3.00%, 12/15/26		100		97
Philip Morris International, Inc.
4.50%, 3/20/42		75		78
Phillips 66
5.88%, 5/1/42		25		30
Phillips 66 Partners LP
4.68%, 2/15/45		25		24
Plains All American Pipeline LP/PAA Finance Corp.
4.50%, 12/15/26		75		74
QUALCOMM, Inc.
2.60%, 1/30/23		250		240
Reckitt Benckiser Treasury Services PLC
2.38%, 6/24/22 (a)		350		336
Rockies Express Pipeline LLC
6.88%, 4/15/40 (a)		100		116
Rockwell Collins, Inc.
2.80%, 3/15/22		125		122
Sabine Pass Liquefaction LLC
4.20%, 3/15/28		225		222
Shell International Finance BV
4.38%, 5/11/45		225		240
Sherwin-Williams Co. (The)
2.75%, 6/1/22		250		244
Smithfield Foods, Inc.
2.65%, 10/3/21 (a)		100		96
Southern Copper Corp.
7.50%, 7/27/35		100		130
Sprint Spectrum Co., LLC/ Sprint Spectrum Co., II LLC/ Sprint Spectrum Co., III LLC,
3.36%, 3/20/23 (a)		175		174
4.74%, 3/20/25 (a)		200		201
Starbucks Corp.
3.10%, 3/1/23		250		250
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp.
5.50%, 1/15/28 (a)		125		126

	Face Amount (000)		Value (000)
Telefonica Emisiones SAU
4.10%, 3/8/27	$	150	$	150
Telefonica Europe BV
8.25%, 9/15/30		84		114
Telenor East Holding II AS,
Series VIP
0.25%, 9/20/19		200		195
Tencent Holdings Ltd.
3.60%, 1/19/28 (a)		200		193
Teva Pharmaceutical Finance Netherlands III BV,
2.80%, 7/21/23 (b)		50		42
6.75%, 3/1/28 (a)(b)		200		198
Thermo Fisher Scientific, Inc.
2.95%, 9/19/26		175		164
Time Warner, Inc.
3.80%, 2/15/27		225		218
Transurban Finance Co., Pty Ltd.,
3.38%, 3/22/27 (a)		75		71
4.13%, 2/2/26 (a)		95		96
Tyco Electronics Group SA
3.13%, 8/15/27		50		48
Tyson Foods, Inc.
4.88%, 8/15/34		75		80
United Airlines Pass-Through Trust,
Class A
4.30%, 2/15/27		186		192
Vale Overseas Ltd.
6.88%, 11/21/36		75		89
Verint Systems, Inc.
1.50%, 6/1/21		125		122
Verizon Communications, Inc.,
4.13%, 3/16/27		250		254
4.27%, 1/15/36		200		192
4.67%, 3/15/55		228		218
Viacom, Inc.
5.85%, 9/1/43		50		54
Viavi Solutions, Inc.
0.63%, 8/15/33		125		128
Visa, Inc.
4.30%, 12/14/45		100		108
Vodafone Group PLC
4.38%, 2/19/43		125		119
Volkswagen Group of America Finance LLC
2.40%, 5/22/20 (a)		200		197
Walgreens Boots Alliance, Inc.,
3.45%, 6/1/26		50		47
3.80%, 11/18/24		25		25
Walmart, Inc.
3.63%, 12/15/47		175		172
Wolverine World Wide, Inc.
5.00%, 9/1/26 (a)		125		122
Woodside Finance Ltd.
3.70%, 9/15/26 (a)		150		148

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Wyndham Worldwide Corp.
4.15%, 4/1/24	$	150	$	150
Zillow Group, Inc.
2.00%, 12/1/21		100		121
				25,427
Utilities (8.5%)
Abu Dhabi National Energy Co., PJSC
4.38%, 6/22/26 (a)		200		200
Alabama Power Co.
3.75%, 3/1/45		125		121
American Electric Power Co., Inc.
3.20%, 11/13/27		200		191
Baltimore Gas & Electric Co.
2.40%, 8/15/26		75		69
Black Hills Corp.
3.15%, 1/15/27		75		71
Boston Gas Co.
4.49%, 2/15/42 (a)		125		135
CenterPoint Energy Houston Electric LLC,
Series AA
3.00%, 2/1/27		225		217
CMS Energy Corp.
6.25%, 2/1/20		200		211
DTE Energy Co.,
1.50%, 10/1/19		100		98
3.80%, 3/15/27		125		124
Duke Energy Carolinas LLC
3.75%, 6/1/45		150		145
Duke Energy Corp.
2.65%, 9/1/26		150		137
Emera US Finance LP
3.55%, 6/15/26		225		215
Enel Finance International N.V.
6.00%, 10/7/39 (a)		100		118
Entergy Arkansas, Inc.
3.50%, 4/1/26		133		133
Entergy Louisiana LLC
3.05%, 6/1/31		75		70
Fortis, Inc.,
Series WI
2.10%, 10/4/21		100		96
ITC Holdings Corp.
3.35%, 11/15/27 (a)		125		120
Mississippi Power Co.
3.95%, 3/30/28		175		176
Nevada Power Co.,
Series N
6.65%, 4/1/36		150		201
NextEra Energy Capital Holdings, Inc.
3.55%, 5/1/27		200		195

	Face Amount (000)		Value (000)
Oncor Electric Delivery Co., LLC
2.95%, 4/1/25	$	75	$	72
Public Service Electric & Gas Co.,
MTN
2.25%, 9/15/26		150		137
Public Service Enterprise Group, Inc.
1.60%, 11/15/19		75		73
Sempra Energy
6.00%, 10/15/39		125		153
South Carolina Electric & Gas Co.
4.50%, 6/1/64		75		73
Southern Power Co.,
Series D
1.95%, 12/15/19		50		49
Trans-Allegheny Interstate Line Co.
3.85%, 6/1/25 (a)		200		201
TransAlta Corp.
4.50%, 11/15/22		213		216
Xcel Energy, Inc.
3.30%, 6/1/25		75		74
				4,091
				47,107
Total Fixed Income Securities (Cost $47,716)				47,358
	Shares
Short-Term Investments (3.8%)
Securities held as Collateral on Loaned Securities (2.5%)
Investment Company (2.5%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $1,222)		1,221,665		1,222
Investment Company (0.5%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $241)		240,982		241
	Face Amount (000)
U.S. Treasury Security (0.8%)
U.S. Treasury Bill
1.80%, 8/9/18 (e)(f) (Cost $358)	$	360		357
Total Short-Term Investments (Cost $1,821)				1,820
Total Investments (101.9%) (Cost $49,537) Including $2,136 of Securities Loaned (g)(h)				49,178
Liabilities in Excess of Other Assets (–1.9%)				(923	)
Net Assets (100.0%)			$	48,255

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

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

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

(b)  All or a portion of this security was on loan at March 29, 2018.

(c)  When-issued security.

(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 29, 2018.

(e)  Rate shown is the yield to maturity at March 29, 2018.

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

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

(h)  At March 29, 2018, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $779,000 and the aggregate gross unrealized depreciation is approximately $1,018,000, resulting in net unrealized depreciation of approximately $239,000.

MTN  Medium Term Note.

PJSC  Public Joint Stock Company.

Futures Contracts:

The Fund had the following futures contracts open at March 29, 2018:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		36	Jun-18		7,200		$	7,654		$	4
U.S. Treasury 30 yr. Bond		10	Jun-18		1,000			1,466			34
U.S. Treasury Ultra Bond		16	Jun-18		1,600			2,568			94
Short:
U.S. Treasury 10 yr. Note		20	Jun-18		(2,000	)		(2,423	)		(25	)
U.S. Treasury 10 yr. Ultra Long Bond		36	Jun-18		(3,600	)		(4,675	)		(69	)
U.S. Treasury 5 yr. Note		8	Jun-18		(800	)		(916	)		(4	)
										$	34

Credit Default Swap Agreement:

The Fund had the following credit default swap agreement open at March 29, 2018:

Swap Counterparty and Reference Obligation	Credit Rating of Reference Obligation†	Buy/Sell Protection	Pay/Receive Fixed Rate			Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Depreciation (000)
Barclays Bank PLC Quest Diagnostics, Inc.	BBB+	Buy		1.00	%	Quarterly	3/20/19	$	200	$	(2	)	$	4	$	(6	)

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 29, 2018:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Payment Frequency Paid/ Received	Maturity Date		Notional Amount (000)		Value (000)		Upfront Payment Paid (000)		Unrealized Appreciation (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.48	%	Semi-Annual/ Quarterly		12/21/26	$	680	$	12	$	—	$	12
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.33		Semi-Annual/ Quarterly	11/9/27			1,000		34		—		34
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.56		Semi-Annual/ Quarterly	11/9/47			800		46		—		46
											$	92	$	—	$	92

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

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

LIBOR  London Interbank Offered Rate.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

Portfolio Composition**

Classification	Percentage of Total Investments
Industrials		53.0	%
Finance		36.7
Utilities		8.5
Short-Term Investments		1.3
Other***		0.5
Total Investments		100.0	%****

**  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 29, 2018.

***  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 $19,702,000 with net unrealized appreciation of approximately $34,000. Does not include open swap agreements with net unrealized appreciation of approximately $86,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Corporate Bond Portfolio

Statement of Assets and Liabilities	March 29, 2018 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $48,074)	$	47,715
Investment in Security of Affiliated Issuer, at Value (Cost $1,463)		1,463
Total Investments in Securities, at Value (Cost $49,537)		49,178
Cash		9
Interest Receivable		422
Receivable for Fund Shares Sold		145
Due from Adviser		9
Upfront Payment Paid on Open Swap Agreements		4
Receivable from Affiliate		1
Receivable from Securities Lending Income		1
Receivable for Variation Margin on Futures Contracts		—	@
Receivable for Variation Margin on Swap Agreements		—	@
Other Assets		57
Total Assets		49,826
Liabilities:
Collateral on Securities Loaned, at Value		1,222
Payable for Investments Purchased		125
Payable for Professional Fees		57
Payable for Fund Shares Redeemed		33
Payable for Trustees' Fees and Expenses		29
Payable for Sub Transfer Agency Fees — Class I		16
Payable for Sub Transfer Agency Fees — Class A		2
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Custodian Fees		13
Payable for Transfer Agency Fees — Class I		4
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		1
Unrealized Depreciation on Swap Agreements		6
Deferred Capital Gain Country Tax		4
Payable for Administration Fees		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		1
Other Liabilities		51
Total Liabilities		1,571
Net Assets	$	48,255
Net Assets Consist Of:
Paid-in-Capital	$	56,133
Accumulated Undistributed Net Investment Income		446
Accumulated Net Realized Loss		(8,081	)
Unrealized Appreciation (Depreciation) on:
Investments (Net of $4 of Deferred Capital Gain Country Tax)		(363	)
Futures Contracts		34
Swap Agreements		86
Net Assets	$	48,255

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Corporate Bond Portfolio

Statement of Assets and Liabilities (cont'd)	March 29, 2018 (000)
CLASS I:
Net Assets	$	37,949
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		3,173,334
Net Asset Value, Offering and Redemption Price Per Share	$	11.96
CLASS A:
Net Assets	$	7,415
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		619,653
Net Asset Value, Redemption Price Per Share	$	11.97
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.53
Maximum Offering Price Per Share	$	12.50
CLASS L:
Net Assets	$	1,693
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		141,663
Net Asset Value, Offering and Redemption Price Per Share	$	11.95
CLASS C:
Net Assets	$	1,198
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		100,807
Net Asset Value, Offering and Redemption Price Per Share	$	11.88
(1) Including: Securities on Loan, at Value:	$	2,136

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Corporate Bond Portfolio

Statement of Operations	Six Months Ended March 29, 2018 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	875
Income from Securities Loaned — Net		5
Dividends from Security of Affiliated Issuer (Note G)		4
Total Investment Income		884
Expenses:
Advisory Fees (Note B)		91
Professional Fees		66
Registration Fees		24
Pricing Fees		22
Shareholder Services Fees — Class A (Note D)		10
Distribution and Shareholder Services Fees — Class L (Note D)		4
Distribution and Shareholder Services Fees — Class C (Note D)		6
Sub Transfer Agency Fees — Class I		14
Sub Transfer Agency Fees — Class A		5
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Administration Fees (Note C)		19
Custodian Fees (Note F)		11
Shareholder Reporting Fees		11
Transfer Agency Fees — Class I (Note E)		5
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		13
Total Expenses		306
Waiver of Advisory Fees (Note B)		(87	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(19	)
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		194
Net Investment Income		690
Realized Gain:
Investments Sold		61
Futures Contracts		2
Swap Agreements		2
Net Realized Gain		65
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $4)		(1,649	)
Futures Contracts		28
Swap Agreements		109
Net Change in Unrealized Appreciation (Depreciation)		(1,512	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(1,447	)
Net Decrease in Net Assets Resulting from Operations	$	(757	)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Corporate Bond Portfolio

Statements of Changes in Net Assets	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	690		$	1,200
Net Realized Gain		65			738
Net Change in Unrealized Appreciation (Depreciation)		(1,512	)		(609	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(757	)		1,329
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(544	)		(987	)
Class A:
Net Investment Income		(103	)		(198	)
Class L:
Net Investment Income		(19	)		(46	)
Class C:
Net Investment Income		(11	)		(6	)
Total Distributions		(677	)		(1,237	)
Capital Share Transactions:(1)
Class I:
Subscribed		6,777			11,336
Distributions Reinvested		543			981
Redeemed		(6,251	)		(6,291	)
Class A:
Subscribed		1,353			5,810
Distributions Reinvested		103			198
Redeemed		(1,715	)		(5,019	)
Class L:
Distributions Reinvested		19			46
Redeemed		(25	)		(432	)
Class C:
Subscribed		320			971
Distributions Reinvested		11			5
Redeemed		(183	)		(26	)
Net Increase in Net Assets Resulting from Capital Share Transactions		952			7,579
Total Increase (Decrease) in Net Assets		(482	)		7,671
Net Assets:
Beginning of Period		48,737			41,066
End of Period (Including Accumulated Undistributed Net Investment Income of $446 and $433)	$	48,255		$	48,737
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		559			941
Shares Issued on Distributions Reinvested		44			82
Shares Redeemed		(514	)		(524	)
Net Increase in Class I Shares Outstanding		89			499
Class A:
Shares Subscribed		111			483
Shares Issued on Distributions Reinvested		8			16
Shares Redeemed		(141	)		(418	)
Net Increase (Decrease) in Class A Shares Outstanding		(22	)		81
Class L:
Shares Issued on Distributions Reinvested		2			4
Shares Redeemed		(2	)		(36	)
Net Decrease in Class L Shares Outstanding		(—	@@)		(32	)
Class C:
Shares Subscribed		26			80
Shares Issued on Distributions Reinvested		1			—	@@
Shares Redeemed		(15	)		(2	)
Net Increase in Class C Shares Outstanding		12			78

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@@  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 29, 2018

Financial Highlights

Corporate Bond Portfolio

	Class I
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	12.32		$	12.33		$	10.80		$	11.12		$	10.53		$	10.93
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.18			0.34			0.37			0.37			0.38			0.32
Net Realized and Unrealized Gain (Loss)		(0.36	)		0.01			1.51			(0.37	)		0.53			(0.40	)
Total from Investment Operations		(0.18	)		0.35			1.88			—			0.91			(0.08	)
Distributions from and/or in Excess of:
Net Investment Income		(0.18	)		(0.36	)		(0.35	)		(0.32	)		(0.32	)		(0.32	)
Net Asset Value, End of Period	$	11.96		$	12.32		$	12.33		$	10.80		$	11.12		$	10.53
Total Return(3)		(1.51	)%(9)		2.95	%(4)		17.79	%(5)		(0.04	)%		8.79	%		(0.77	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	37,949		$	37,993		$	31,873		$	31,427		$	36,598		$	36,186
Ratio of Expenses to Average Net Assets(11)		0.70	%(6)(10)		0.70	%(6)		0.69	%(6)		0.70	%(6)		0.70	%(6)		1.18	%(6)(7)
Ratio of Net Investment Income to Average Net Assets(11)		2.95	%(6)(10)		2.85	%(6)		3.28	%(6)		3.33	%(6)		3.47	%(6)		2.91	%(6)(7)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(8)(10)		0.00	%(8)		0.01	%		0.00	%(8)		0.00	%(8)		0.00	%(8)
Portfolio Turnover Rate		28	%(9)		33	%		41	%		45	%		50	%		63	%
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.16	%(10)		1.26	%		1.28	%		1.15	%		1.13	%		1.21	%
Net Investment Income to Average Net Assets		2.49	%(10)		2.29	%		2.69	%		2.88	%		3.04	%		2.88	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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 0.85% 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 I shares would have been approximately 2.10%.

(5)  Performance was positively impacted by approximately 9.01% 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 8.78%.

(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 29, 2018

Financial Highlights

Corporate Bond Portfolio

	Class A
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	12.32		$	12.34		$	10.81		$	11.12		$	10.53		$	10.92
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.16			0.30			0.32			0.33			0.34			0.30
Net Realized and Unrealized Gain (Loss)		(0.35	)		(0.00	)(3)		1.53			(0.37	)		0.53			(0.39	)
Total from Investment Operations		(0.19	)		0.30			1.85			(0.04	)		0.87			(0.09	)
Distributions from and/or in Excess of:
Net Investment Income		(0.16	)		(0.32	)		(0.32	)		(0.27	)		(0.28	)		(0.30	)
Net Asset Value, End of Period	$	11.97		$	12.32		$	12.34		$	10.81		$	11.12		$	10.53
Total Return(4)		(1.59	)%(10)		2.54	%(5)		17.41	%(6)		(0.37	)%		8.43	%		(0.83	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	7,415		$	7,911		$	6,916		$	544		$	405		$	1,194
Ratio of Expenses to Average Net Assets(12)		1.01	%(7)(11)		1.05	%(7)		0.99	%(7)		1.05	%(7)		1.05	%(7)		1.34	%(7)(8)
Ratio of Net Investment Income to Average Net Assets(12)		2.64	%(7)(11)		2.50	%(7)		2.78	%(7)		2.98	%(7)		3.12	%(7)		2.76	%(7)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(9)(11)		0.00	%(9)		0.01	%		0.00	%(9)		0.00	%(9)		0.00	%(9)
Portfolio Turnover Rate		28	%(10)		33	%		41	%		45	%		50	%		63	%
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.47	%(11)		1.62	%		1.51	%		1.88	%		1.60	%		1.47	%
Net Investment Income to Average Net Assets		2.18	%(11)		1.93	%		2.26	%		2.15	%		2.57	%		2.63	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 expense waivers/reimbursements with no impact to net expenses or net investment income.

(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 which does not reflect sales charges, if applicable, as of the last business day of the period.

(5)  Performance was positively impacted by approximately 0.85% 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 A shares would have been approximately 1.69%.

(6)  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%.

(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 1.05% 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 29, 2018

Financial Highlights

Corporate Bond Portfolio

	Class L
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	12.30		$	12.32		$	10.79		$	11.11		$	10.52		$	10.92
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.14			0.26			0.30			0.30			0.31			0.26
Net Realized and Unrealized Gain (Loss)		(0.35	)		(0.00	)(3)		1.51			(0.37	)		0.54			(0.40	)
Total from Investment Operations		(0.21	)		0.26			1.81			(0.07	)		0.85			(0.14	)
Distributions from and/or in Excess of:
Net Investment Income		(0.14	)		(0.28	)		(0.28	)		(0.25	)		(0.26	)		(0.26	)
Net Asset Value, End of Period	$	11.95		$	12.30		$	12.32		$	10.79		$	11.11		$	10.52
Total Return(4)		(1.76	)%(10)		2.20	%(5)		17.06	%(6)		(0.65	)%		8.15	%		(1.28	)%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,693		$	1,749		$	2,151		$	2,163		$	2,405		$	2,649
Ratio of Expenses to Average Net Assets(12)		1.35	%(7)(11)		1.34	%(7)		1.33	%(7)		1.31	%(7)		1.30	%(7)		1.69	%(7)(8)
Ratio of Net Investment Income to Average Net Assets(12)		2.30	%(7)(11)		2.20	%(7)		2.64	%(7)		2.72	%(7)		2.87	%(7)		2.40	%(7)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(9)(11)		0.01	%		0.01	%		0.00	%(9)		0.00	%(9)		0.00	%(9)
Portfolio Turnover Rate		28	%(10)		33	%		41	%		45	%		50	%		63	%
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.71	%(11)		1.80	%		1.75	%		1.73	%		1.66	%		1.70	%
Net Investment Income to Average Net Assets		1.94	%(11)		1.74	%		2.22	%		2.30	%		2.51	%		2.39	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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)  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)  Performance was positively impacted by approximately 0.84% 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 1.36%.

(6)  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%.

(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 1.52% for Class L shares.

(9)  Amount is less than 0.005%.

(10)  Not Annualized.

(11)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Corporate Bond Portfolio

	Class C
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from April 30, 2015(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			September 30, 2015
Net Asset Value, Beginning of Period	$	12.25		$	12.27		$	10.77		$	11.21
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.11			0.21			0.22			0.10
Net Realized and Unrealized Gain (Loss)		(0.36	)		0.00	(4)		1.53			(0.48	)
Total from Investment Operations		(0.25	)		0.21			1.75			(0.38	)
Distributions from and/or in Excess of:
Net Investment Income		(0.12	)		(0.23	)		(0.25	)		(0.06	)
Net Asset Value, End of Period	$	11.88		$	12.25		$	12.27		$	10.77
Total Return(5)		(2.07	)%(10)		1.81	%(6)		16.47	%(7)		(3.40	)%(10)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,198		$	1,084		$	126		$	10
Ratio of Expenses to Average Net Assets(12)		1.80	%(11)		1.80	%(8)		1.79	%(8)		1.80	%(8)(11)
Ratio of Net Investment Income to Average Net Assets(12)		1.84	%(11)		1.71	%(8)		1.90	%(8)		2.25	%(8)(11)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(9)(11)		0.00	%(9)		0.01	%		0.00	%(9)(11)
Portfolio Turnover Rate		28	%(10)		33	%		41	%		45	%(10)
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.29	%(11)		2.82	%		4.45	%		38.20	%(11)
Net Investment Income (Loss) to Average Net Assets		1.35	%(11)		0.69	%		(0.76	)%		(34.15	)%(11)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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)  Amount is less than $0.005 per share.

(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 0.85% 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 0.96%.

(7)  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%.

(8)  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."

(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 29, 2018

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.

The Fund has suspended offering Class L shares for sale to all investors. Class L shareholders of the Fund do not have the option to purchasing additional Class L shares. However, existing Class L shareholders may invest in additional Class L shares 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

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018:

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	$	—		$	251		$	—	$	251
Corporate Bonds		—			47,107			—		47,107
Total Fixed Income Securities		—			47,358			—		47,358
Short-Term Investments
Investment Company		1,463			—			—		1,463
U.S. Treasury Security		—			357			—		357
Total Short-Term Investments		1,463			357			—		1,820
Futures Contracts		132			—			—		132
Interest Rate Swap Agreements		—			92			—		92
Total Assets		1,595			47,807			—		49,402
Liabilities:
Futures Contracts		(98	)		—			—		(98	)
Credit Default Swap Agreement		—			(6	)		—		(6	)
Total Liabilities		(98	)		(6	)		—		(104	)
Total	$	1,497		$	47,801		$	—	$	49,298

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018, 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 ("SEC") 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 29, 2018

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

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018:

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk	$	132	(a)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		92	(a)
Total			$	224
	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk	$	(98	)(a)
Swap Agreement	Unrealized Depreciation on Swap Agreements	Credit Risk		(6	)
Total			$	(104	)

(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 29, 2018 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	2
Credit Risk	Swap Agreement		(1	)
Interest Rate Risk	Swap Agreements		3
Total		$	4
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	28
Credit Risk	Swap Agreement		1
Interest Rate Risk	Swap Agreements		108
Total		$	137

At March 29, 2018, 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	$	—	$	(6	)

(b) Excludes exchange traded derivatives.

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

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	6	$	—	$	—	$	6

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

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of March 29, 2018:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	6	$	—	$	—	$	6

For the six months ended March 29, 2018, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	19,461,000
Swap Agreements:
Average monthly notional amount	$	2,380,000

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 securities 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 29, 2018:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	2,136	(d)	$	—	$	(2,136	)(e)(f)	$	0

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

(e) The Fund received cash collateral of approximately $1,222,000, 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 $951,000 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 ASC 860, "Transfers & Servicing: 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 29, 2018:

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	$	1,222	$	—	$	—	$	—	$	1,222
Total Borrowings	$	1,222	$	—	$	—	$	—	$	1,222
Gross amount of recognized liabilities for securities lending transactions									$	1,222

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

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

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: Dividends 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.

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. 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 29, 2018, approximately $87,000 of advisory fees were waived and approximately $20,000 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. The Distributor has agreed to waive the 12b-1 fees on Class A shares of the Portfolio to the extent it exceeds 0.15% of the average daily net assets of such shares on an annualized basis. For the six months ended March 29, 2018, this waiver amounted to approximately $4,000.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 0.25% 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. Effective January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

F. Custodian Fees: State Street (the "Custodian") also 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 29, 2018, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $14,879,000 and $13,250,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended March 29, 2018.

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 29, 2018, 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 29, 2018 is as follows:

Affiliated Investment Company	Value September 30, 2017 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	1,286	$	10,889	$	10,712	$	4

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 29, 2018 (000)
Liquidity Funds	$	—	$	—	$	1,463

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 29, 2018, 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

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 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. Each of the tax years in the four-year period ended September 30, 2017, 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 2017 and 2016 was as follows:

2017 Distributions Paid From: Ordinary Income (000)		2016 Distributions Paid From: Ordinary Income (000)
$	1,237	$	1,065

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

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

Permanent differences, primarily due to basis adjustments for swap transactions and an expired capital loss carryforward,

resulted in the following reclassifications among the components of net assets at September 30, 2017:

Accumulated Undistributed Net Investment Income (000)			Accumulated Net Realized Gain (000)		Paid-in- Capital (000)
$	(16	)	$	44,938	$	(44,922	)

At September 30, 2017, 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)
$	433	$	—

At September 30, 2017, the Fund had available for federal income tax purposes unused capital losses which will expire on the indicated dates:

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

Capital loss carryforwards of approximately $44,922,000 expired during the year ended September 30, 2017.

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, 2017, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $448,000.

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 1 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 29, 2018, the Fund did not have any borrowings under the Facility.

J. Other: At March 29, 2018, 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 60.6%.

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

K. Accounting Pronouncement: In March 2017, FASB issued an Accounting Standard Update, ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the "ASU") which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 non-affiliated 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:

  DST Asset Manager Solutions, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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:

DST Asset Manager Solutions, 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 non-affiliated 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 29, 2018

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

Michael J. Key
Vice President

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

DST Asset Manager Solutions, 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 to the SEC's Public Reference Section, Washington, D.C. 20549-1520.

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

© 2018 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTCBSAN
2100450 EXP 05.31.19

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Multi-Asset Income Portfolio

Semi-Annual Report

March 29, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Table of Contents

Shareholders' Letter	2
Consolidated Expense Example	3
Consolidated Portfolio of Investments	4
Consolidated Statement of Assets and Liabilities	29
Consolidated Statement of Operations	31
Consolidated Statements of Changes in Net Assets	32
Consolidated Financial Highlights	33
Notes to Consolidated Financial Statements	37
Privacy Notice	50
Trustee and Officer Information	53

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 fund 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 29, 2018

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 2018

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018 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 10/1/17		Actual Ending Account Value 3/29/18		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Multi-Asset Income Portfolio Class I	$	1,000.00	$	1,020.80	$	1,020.24	$	4.74	$	4.73		0.94	%
Global Multi-Asset Income Portfolio Class A		1,000.00		1,020.00		1,018.55		6.45		6.44		1.28
Global Multi-Asset Income Portfolio Class C		1,000.00		1,015.70		1,014.76		10.25		10.25		2.04
Global Multi-Asset Income Portfolio Class IS		1,000.00		1,021.00		1,020.54		4.43		4.43		0.88

*  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 29, 2018R (unaudited)

Consolidated Portfolio of Investments

Global Multi-Asset Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (56.9%)
Agency Fixed Rate Mortgages (3.5%)
United States (3.5%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
3.50%, 2/1/45	$	43	$	43
Federal National Mortgage Association,
April TBA:
3.00%, 4/1/33 (a)		62		62
3.50%, 4/1/48 (a)		204		204
4.00%, 4/1/48 (a)		140		144
4.50%, 4/1/48 (a)		60		63
Conventional Pools:
4.50%, 10/1/44 - 11/1/44		39		40
				556
Commercial Mortgage-Backed Securities (1.4%)
United States (1.4%)
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		46
WFCG Commercial Mortgage Trust,
1 Month USD LIBOR + 3.14%,
4.92%, 11/15/29 (b)(c)		40		40
WFRBS Commercial Mortgage Trust,
4.15%, 5/15/45 (b)(c)		40		37
5.03%, 9/15/46 (b)(c)		25		24
				214
Corporate Bonds (8.9%)
Australia (0.9%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	50		66
Commonwealth Bank of Australia,
1.75%, 11/7/19 (c)	$	25		25
Macquarie Group Ltd.,
4.15%, 3/27/24 (c)		25		25
Transurban Finance Co., Pty Ltd.,
4.13%, 2/2/26 (c)		25		25
				141
Belgium (0.2%)
Anheuser-Busch InBev Finance, Inc.,
4.70%, 2/1/36		25		26
Canada (0.2%)
Royal Bank of Canada,
2.75%, 2/1/22		25		25
France (0.3%)
BNP Paribas SA,
5.00%, 1/15/21		50		53
Germany (0.1%)
Deutsche Bank AG,
2.70%, 7/13/20		25		24

	Face Amount (000)		Value (000)
Israel (0.1%)
Teva Pharmaceutical Finance Netherlands III BV,
2.20%, 7/21/21	$	10	$	9
Netherlands (0.4%)
Cooperatieve Rabobank UA,
3.75%, 11/9/20	EUR	50		67
United States (6.7%)
Abbott Laboratories,
3.40%, 11/30/23	$	25		25
Air Lease Corp.,
2.13%, 1/15/20		25		25
Amazon.com, Inc.,
2.80%, 8/22/24 (c)		25		24
American Express Credit Corp.,
1.88%, 5/3/19		10		10
Apple, Inc.,
2.50%, 2/9/22		50		49
AT&T, Inc.,
4.25%, 3/1/27		75		76
Bank of America Corp.,
MTN
4.25%, 10/22/26		25		25
Boston Properties LP,
3.85%, 2/1/23		50		51
Charter Communications Operating LLC/ Charter Communications Operating Capital,
4.91%, 7/23/25		25		26
Citigroup, Inc.,
5.50%, 9/13/25		50		54
CVS Health Corp.,
3.70%, 3/9/23		25		25
Discovery Communications LLC,
2.95%, 3/20/23		25		24
General Motors Financial Co., Inc.,
4.30%, 7/13/25		5		5
Goldman Sachs Group, Inc. (The),
6.75%, 10/1/37		50		63
HSBC USA, Inc.,
3.50%, 6/23/24		100		100
JPMorgan Chase & Co.,
3.78%, 2/1/28		25		25
McDonald's Corp.,
MTN
3.38%, 5/26/25		50		49
Merck & Co., Inc.,
2.80%, 5/18/23		50		49
Microsoft Corp.,
1.55%, 8/8/21		25		24
MPLX LP,
4.00%, 2/15/25		50		50
NBC Universal Media LLC,
4.38%, 4/1/21		50		52

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
Omnicom Group, Inc.,
3.63%, 5/1/22	$	50	$	50
PepsiCo, Inc.,
1.70%, 10/6/21		25		24
UnitedHealth Group, Inc.,
2.88%, 3/15/23		25		25
Verizon Communications, Inc.,
4.13%, 3/16/27		25		25
Visa, Inc.,
3.15%, 12/14/25		25		25
Walmart, Inc.,
2.55%, 4/11/23		25		24
Wells Fargo & Co.,
3.00%, 10/23/26		50		47
				1,051
				1,396
Sovereign (32.1%)
Australia (1.0%)
Australia Government Bond,
2.75%, 11/21/27	AUD	120		93
3.00%, 3/21/47		3		2
3.25%, 4/21/25		80		65
				160
Austria (0.6%)
Republic of Austria Government Bond,
1.20%, 10/20/25 (c)	EUR	70		91
Belgium (1.5%)
Kingdom of Belgium Government Bond,
0.80%, 6/22/25 (c)		185		235
Brazil (3.9%)
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/21	BRL	1,906		607
Canada (1.4%)
Canadian Government Bond,
0.50%, 3/1/22	CAD	95		70
1.50%, 6/1/26		210		156
2.75%, 12/1/48		2		1
				227
Denmark (0.1%)
Denmark Government Bond,
0.50%, 11/15/27	DKK	100		16
France (1.0%)
French Republic Government Bond OAT,
0.50%, 5/25/25	EUR	75		94
1.00%, 5/25/27		19		24
2.00%, 5/25/48 (c)		3		4
3.25%, 5/25/45		25		43
				165
Germany (4.0%)
Bundesrepublik Deutschland Bundesanleihe,
0.00%, 8/15/26		50		60

	Face Amount (000)		Value (000)
1.00%, 8/15/25	$	60	$	78
1.25%, 8/15/48		4		5
1.50%, 9/4/22		70		93
2.50%, 1/4/21		200		267
4.25%, 7/4/39		45		90
4.75%, 7/4/34		15		30
				623
Greece (0.6%)
Hellenic Republic Government Bond,
3.75%, 1/30/28		78		92
Hungary (0.1%)
Hungary Government International Bond,
5.75%, 11/22/23	$	20		22
Ireland (0.1%)
Ireland Government Bond,
5.40%, 3/13/25	EUR	15		25
Italy (2.2%)
Italy Buoni Poliennali Del Tesoro,
1.45%, 9/15/22		100		128
2.20%, 6/1/27		60		77
2.35%, 9/15/24 (c)		82		117
5.00%, 9/1/40		14		24
				346
Japan (7.2%)
Japan Government Ten Year Bond,
0.10%, 6/20/26	JPY	5,000		47
0.50%, 9/20/24		45,000		439
1.10%, 6/20/21		24,600		240
Japan Government Thirty Year Bond,
0.30%, 6/20/46		5,600		47
0.80%, 9/20/47		800		8
1.70%, 6/20/33		14,300		163
2.00%, 9/20/40		15,000		183
				1,127
Malaysia (0.1%)
Malaysia Government Bond,
3.96%, 9/15/25	MYR	80		21
Mexico (0.9%)
Mexican Bonos,
Series M
5.75%, 3/5/26	MXN	800		40
6.50%, 6/10/21		1,200		65
Petroleos Mexicanos,
4.88%, 1/18/24	$	20		20
6.38%, 1/23/45		10		10
				135
Netherlands (0.5%)
Netherlands Government Bond,
0.25%, 7/15/25 (c)	EUR	70		86
New Zealand (0.3%)
New Zealand Government Bond,
3.00%, 4/20/29	NZD	60		44

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Face Amount (000)		Value (000)
Norway (0.1%)
Norway Government Bond,
2.00%, 5/24/23 (c)	NOK	100	$	13
Poland (0.1%)
Republic of Poland Government Bond,
4.00%, 10/25/23	PLN	40		12
Portugal (2.0%)
Portugal Obrigacoes do Tesouro OT,
2.13%, 10/17/28 (c)	EUR	16		21
2.88%, 7/21/26 (c)		87		120
4.13%, 4/14/27 (c)		93		141
5.65%, 2/15/24 (c)		17		27
				309
Russia (0.5%)
Russian Federal Bond - OFZ,
7.00%, 8/16/23	RUB	4,200		75
Spain (1.6%)
Spain Government Bond,
0.40%, 4/30/22	EUR	110		138
1.40%, 4/30/28 (c)		33		42
1.95%, 7/30/30 (c)		10		13
4.40%, 10/31/23 (c)		20		30
Spain Government Inflation Linked Bond,
1.00%, 11/30/30 (c)		25		35
				258
Sweden (0.1%)
Sweden Government Bond,
1.00%, 11/12/26	SEK	70		9
United Kingdom (2.2%)
United Kingdom Gilt,
1.25%, 7/22/27	GBP	71		99
1.50%, 1/22/21 - 7/22/47		33		47
3.50%, 1/22/45		60		116
4.25%, 6/7/32 - 9/7/39		44		86
				348
				5,046
U.S. Treasury Securities (11.0%)
United States (11.0%)
U.S. Treasury Bonds,
2.50%, 2/15/45	$	344		314
2.75%, 11/15/47		28		27
3.50%, 2/15/39		100		110
U.S. Treasury Notes,
0.38%, 1/15/27		36		35
0.50%, 1/15/28		776		762
1.38%, 1/31/21		130		127
1.75%, 4/30/22		80		78
2.13%, 5/15/25		100		96
2.25%, 2/15/27		180		173
				1,722
Total Fixed Income Securities (Cost $8,571)				8,934

	Shares		Value (000)
Common Stocks (25.4%)
Australia (1.2%)
AGL Energy Ltd.		70	$	1
Alumina Ltd.		246		—	@
Amcor Ltd.		118		1
AMP Ltd.		295		1
APA Group		1,260		8
Aristocrat Leisure Ltd.		55		1
ASX Ltd.		19		1
Aurizon Holdings Ltd.		207		1
AusNet Services		1,918		3
Australia & New Zealand Banking Group Ltd.		313		7
Bank of Queensland Ltd.		40		—	@
Bendigo & Adelaide Bank Ltd.		49		—	@
BHP Billiton Ltd.		315		7
Boral Ltd.		118		1
Brambles Ltd.		161		1
BWP Trust REIT		325		1
Caltex Australia Ltd.		27		1
Challenger Ltd.		57		1
Charter Hall Retail REIT		226		1
CIMIC Group Ltd.		10		—	@
Coca-Cola Amatil Ltd.		57		—	@
Cochlear Ltd.		6		1
Commonwealth Bank of Australia		176		10
Computershare Ltd.		47		1
Cromwell Property Group REIT		990		1
Crown Resorts Ltd.		36		—	@
CSL Ltd.		45		5
Dexus REIT		746		5
Domino's Pizza Enterprises Ltd.		7		—	@
Flight Centre Travel Group Ltd.		6		—	@
Fortescue Metals Group Ltd.		152		1
Goodman Group REIT		1,373		9
GPT Group (The) REIT		1,383		5
Harvey Norman Holdings Ltd.		55		—	@
Healthscope Ltd.		169		—	@
Incitec Pivot Ltd.		169		—	@
Insurance Australia Group Ltd.		244		1
Investa Office Fund REIT		378		1
James Hardie Industries PLC CDI		45		1
Lend Lease Group REIT		55		1
Macquarie Atlas Roads Group		462		2
Macquarie Group Ltd.		31		2
Medibank Pvt Ltd.		277		1
Mirvac Group REIT		2,850		5
National Australia Bank Ltd.		286		6
Newcrest Mining Ltd.		75		1
Oil Search Ltd.		136		1
Orica Ltd.		38		1
Origin Energy Ltd. (d)		176		1
Qantas Airways Ltd.		49		—	@
QBE Insurance Group Ltd.		144		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Australia (cont'd)
Ramsay Health Care Ltd.		14	$	1
REA Group Ltd.		6		—	@
Rio Tinto Ltd.		41		2
Santos Ltd. (d)		181		1
Scentre Group REIT		3,957		12
Seek Ltd.		33		—	@
Shopping Centres Australasia Property Group REIT		763		1
Sonic Healthcare Ltd.		40		1
South32 Ltd.		523		1
Spark Infrastructure Group		1,725		3
Stockland REIT		1,937		6
Suncorp Group Ltd.		129		1
Sydney Airport		1,250		6
Tabcorp Holdings Ltd.		199		1
Telstra Corp., Ltd.		427		1
TPG Telecom Ltd.		34		—	@
Transurban Group		2,263		20
Treasury Wine Estates Ltd.		74		1
Vicinity Centres REIT		2,538		5
Vocus Group Ltd.		53		—	@
Wesfarmers Ltd.		113		4
Westfield Corp. REIT		1,503		10
Westpac Banking Corp.		346		8
Woodside Petroleum Ltd.		76		2
Woolworths Group Ltd.		130		3
				190
Austria (0.1%)
BUWOG AG (d)		62		2
CA Immobilien Anlagen AG		48		2
Erste Group Bank AG		68		3
Raiffeisen Bank International AG (d)		28		1
				8
Belgium (0.2%)
Aedifica SA REIT		9		1
Anheuser-Busch InBev SA N.V.		122		14
Befimmo SA REIT		13		1
Cofinimmo SA REIT		14		2
Elia System Operator SA		30		2
Intervest Offices & Warehouses N.V. REIT		10		—	@
KBC Group N.V.		126		11
Leasinvest Real Estate SCA REIT		1		—	@
Warehouses De Pauw CVA REIT		11		1
Wereldhave Belgium N.V. REIT		1		—	@
				32
Brazil (0.0%)
Cia de Saneamento Basico do Estado de Sao Paulo ADR		300		3
Canada (1.8%)
Alimentation Couche-Tard, Inc., Class B		92		4
ARC Resources Ltd.		92		1

	Shares		Value (000)
Artis Real Estate Investment Trust REIT		100	$	1
Bank of Montreal		92		7
Bank of Nova Scotia (The)		184		11
Barrick Gold Corp.		92		1
Blackberry Ltd. (d)		92		1
Brookfield Asset Management, Inc., Class A		92		4
Brookfield Business Partners LP		2		—	@
Cameco Corp.		92		1
Canadian Apartment Properties REIT		100		3
Canadian Imperial Bank of Commerce		92		8
Canadian National Railway Co.		92		7
Canadian Natural Resources Ltd.		184		6
Cenovus Energy, Inc.		92		1
Chartwell Retirement Residences REIT (Units) (e)		100		1
Cominar Real Estate Investment Trust REIT		100		1
Dream Global Real Estate Investment Trust REIT		100		1
Dream Office Real Estate Investment Trust REIT		100		2
Enbridge Income Fund Holdings, Inc.		100		2
Enbridge, Inc.		992		31
Enbridge, Inc.		690		22
Encana Corp.		184		2
First Capital Realty, Inc.		100		2
First Quantum Minerals Ltd.		92		1
Fortis, Inc.		492		17
Goldcorp, Inc.		184		3
H&R Real Estate Investment Trust REIT		200		3
Husky Energy, Inc.		94		1
Hydro One Ltd. (c)		100		2
Imperial Oil Ltd.		92		2
Inter Pipeline Ltd.		392		7
Keyera Corp.		200		5
Magna International, Inc.		92		5
Manulife Financial Corp.		276		5
Nutrien Ltd.		39		2
Pembina Pipeline Corp.		620		19
Power Corp. of Canada		92		2
PrairieSky Royalty Ltd.		96		2
Pure Industrial Real Estate Trust REIT		100		1
RioCan Real Estate Investment Trust REIT		200		4
Rogers Communications, Inc., Class B		92		4
Royal Bank of Canada		184		14
Shaw Communications, Inc., Class B		92		2
SmartCentres Real Estate Investment Trust REIT		100		2
Sun Life Financial, Inc.		92		4
Suncor Energy, Inc.		184		6
Teck Resources Ltd., Class B		92		2
Toronto-Dominion Bank (The)		92		5
TransCanada Corp.		992		41
Westshore Terminals Investment Corp.		100		2
Wheaton Precious Metals Corp.		92		2
				285

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
China (0.1%)
Beijing Capital International Airport Co., Ltd. H Shares (f)		2,000	$	3
Beijing Enterprises Holdings Ltd. (f)		500		2
Beijing Enterprises Water Group Ltd. (f)		4,000		2
China Gas Holdings Ltd. (f)		2,400		9
China Merchants Port Holdings Co., Ltd. (f)		21		—	@
Hopewell Highway Infrastructure Ltd. (f)		1,000		1
Jiangsu Expressway Co., Ltd. H Shares (f)		2,000		3
Towngas China Co., Ltd. (d)(f)		1,000		1
Zhejiang Expressway Co., Ltd. (f)		2,000		2
				23
Denmark (0.4%)
AP Moller - Maersk A/S Series B		1		2
Carlsberg A/S Series B		12		2
Chr Hansen Holding A/S		11		1
Coloplast A/S Series B		13		1
Danske Bank A/S		76		3
DSV A/S		282		22
Genmab A/S (d)		6		1
ISS A/S		281		10
Novo Nordisk A/S Series B		212		10
Novozymes A/S Series B		26		1
Orsted A/S (c)		16		1
Pandora A/S		13		1
TDC A/S (d)		90		1
Tryg A/S		12		—	@
Vestas Wind Systems A/S		25		2
William Demant Holding A/S (d)		13		1
				59
Finland (0.1%)
Citycon Oyj		264		1
Kone Oyj, Class B		72		4
Nokia Oyj		607		3
Sampo Oyj, Class A		97		5
Technopolis Oyj		95		1
UPM-Kymmene Oyj		137		5
				19
France (3.9%)
Accor SA		754		41
Aeroports de Paris (ADP)		62		14
Affine SA REIT		5		—	@
Air Liquide SA		53		6
Airbus SE		71		8
ANF Immobilier REIT		5		—	@
ArcelorMittal (d)		60		2
Atos SE		207		28
AXA SA		221		6
BNP Paribas SA		385		29
Bouygues SA		560		28
Capgemini SE		409		51
Carrefour SA		86		2

	Shares		Value (000)
Cie de Saint-Gobain		602	$	32
Cie Generale des Etablissements Michelin SCA		29		4
Credit Agricole SA		413		7
Danone SA		80		6
Engie SA		183		3
Essilor International Cie Generale d'Optique SA		32		4
Eutelsat Communications SA		178		4
Fonciere Des Regions REIT		24		3
Gecina SA REIT		27		5
Getlink SE		1,219		17
ICADE REIT		24		2
Kering SA		11		5
Klepierre SA REIT		139		6
L'Oreal SA		29		7
Legrand SA		52		4
LVMH Moet Hennessy Louis Vuitton SE		32		10
Mercialys SA REIT		28		1
Natixis SA		230		2
Orange SA		241		4
Pernod Ricard SA		32		5
Peugeot SA		2,657		64
Publicis Groupe SA		34		2
Renault SA		29		4
Rexel SA		615		10
Safran SA		52		6
Sanofi		135		11
Schneider Electric SE		69		6
SES SA		445		6
Societe Generale SA		282		15
Sodexo SA		32		3
TOTAL SA		244		14
Unibail-Rodamco SE REIT		80		18
Valeo SA		45		3
Vinci SA		966		95
Vivendi SA		160		4
				607
Germany (1.6%)
Adidas AG		31		8
ADLER Real Estate AG (d)		18		—	@
ADO Properties SA (c)		20		1
Allianz SE (Registered)		50		11
Alstria Office AG REIT		88		1
BASF SE		100		10
Bayer AG (Registered)		91		10
Bayerische Motoren Werke AG		36		4
Commerzbank AG (d)		432		6
Continental AG		14		4
Daimler AG (Registered)		100		9
Deutsche Bank AG (Registered)		172		2
Deutsche Boerse AG		360		49
Deutsche EuroShop AG		30		1
Deutsche Post AG (Registered)		122		5

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Germany (cont'd)
Deutsche Telekom AG (Registered)		350	$	6
Deutsche Wohnen SE		224		11
DIC Asset AG		29		—	@
E.ON SE		250		3
Fraport AG Frankfurt Airport Services Worldwide		121		12
Fresenius Medical Care AG & Co., KGaA		31		3
Fresenius SE & Co., KGaA		44		3
Grand City Properties SA		67		2
Hamborner AG REIT		52		1
HeidelbergCement AG		31		3
Henkel AG & Co., KGaA		19		2
Henkel AG & Co., KGaA (Preference)		25		3
Infineon Technologies AG		192		5
LEG Immobilien AG		43		5
Linde AG (d)		22		5
Merck KGaA		28		3
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Registered)		22		5
Porsche Automobil Holding SE (Preference)		28		2
ProSiebenSat.1 Media SE (Registered)		44		2
RWE AG (d)		75		2
SAP SE		100		11
Siemens AG (Registered)		89		11
TAG Immobilien AG		96		2
thyssenKrupp AG		89		2
TLG Immobilien AG		47		1
Uniper SE		25		1
Volkswagen AG (Preference)		17		3
Vonovia SE		365		18
				248
Hong Kong (1.0%)
Champion REIT		12,000		9
CK Asset Holdings Ltd.		2,000		17
Great Eagle Holdings Ltd.		2,017		10
Hanergy Thin Film Power Group Ltd. (d)(g)(h)		2,000		—	@
Hang Lung Group Ltd.		1,000		3
Hang Lung Properties Ltd.		1,000		2
Henderson Land Development Co., Ltd.		1,100		7
Hong Kong & China Gas Co., Ltd.		8,524		18
Hongkong & Shanghai Hotels Ltd. (The)		4,172		6
Hongkong Land Holdings Ltd.		700		5
Hopewell Holdings Ltd.		2,000		8
I-CABLE Communications Ltd. (d)		766		—	@
Johnson Electric Holdings Ltd.		1,500		6
Kerry Properties Ltd.		500		2
Kowloon Development Co., Ltd. REIT		7,000		8
Link REIT		1,000		9
New World Development Co., Ltd.		3,547		5
Sino Land Co., Ltd.		2,078		3
Stella International Holdings Ltd.		2,000		3
Sun Hung Kai Properties Ltd.		1,000		16
Swire Properties Ltd.		600		2

	Shares		Value (000)
Wharf Holdings Ltd. (The)		1,000	$	3
Wharf Real Estate Investment Co., Ltd. (d)		1,000		7
				149
Ireland (0.1%)
Bank of Ireland Group PLC (d)		423		4
CRH PLC		301		10
Green REIT PLC		457		1
Hibernia REIT PLC		461		1
Irish Residential Properties PLC REIT		238		—	@
Kerry Group PLC, Class A		30		3
				19
Italy (1.2%)
ACEA SpA		46		1
Assicurazioni Generali SpA		178		3
Atlantia SpA		1,767		55
Beni Stabili SpA SIIQ REIT		707		1
Ei Towers SpA		17		1
Enel SpA		941		6
Eni SpA		348		6
Ferrari N.V.		14		2
Fiat Chrysler Automobiles N.V. (d)		132		3
Immobiliare Grande Distribuzione SIIQ SpA REIT		24		—	@
Infrastrutture Wireless Italiane SpA (c)		246		2
Intesa Sanpaolo SpA		228		1
Intesa Sanpaolo SpA		4,789		17
Italgas SpA		597		4
Luxottica Group SpA		37		2
Mediobanca Banca di Credito Finanziario SpA		3,989		47
Rizzoli Corriere Della Sera Mediagroup SpA (d)		11		—	@
Snam SpA		2,931		13
Societa Iniziative Autostradali e Servizi SpA		69		1
Telecom Italia SpA (d)		1,781		2
Terna Rete Elettrica Nazionale SpA		1,447		8
UniCredit SpA (d)		660		14
Unione di Banche Italiane SpA		216		1
				190
Japan (0.7%)
Advance Residence Investment Corp. REIT		1		3
AEON Investment Corp. REIT		1		1
Aeon Mall Co., Ltd.		100		2
Daiwa House Investment Corp. REIT		1		2
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.		1,300		22
Mitsui Fudosan Co., Ltd.		1,300		31

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Japan (cont'd)
Mori Hills Investment Corp. REIT		1	$	1
Mori Trust Sogo Reit, Inc.		1		2
Nippon Building Fund, Inc. REIT		1		6
Nippon Prologis, Inc. REIT		1		2
Nomura Real Estate Holdings, Inc.		100		2
Nomura Real Estate Master Fund, Inc. REIT		3		4
NTT Urban Development Corp.		100		1
Orix, Inc. J-REIT		1		2
Premier Investment Corp. REIT		1		1
Sekisui House Residential Investment Corp. REIT		1		1
Tokyo Gas Co., Ltd.		400		11
Tokyo Tatemono Co., Ltd.		100		2
United Urban Investment Corp. REIT		2		3
				117
Netherlands (0.7%)
ABN AMRO Group N.V. CVA (c)		58		2
Aegon N.V.		318		2
Akzo Nobel N.V.		49		5
ASML Holding N.V.		39		8
Eurocommercial Properties N.V. CVA REIT		29		1
Heineken N.V.		39		4
ING Groep N.V.		1,419		24
Koninklijke Ahold Delhaize N.V.		165		4
Koninklijke KPN N.V.		606		2
Koninklijke Philips N.V.		150		6
Koninklijke Vopak N.V.		68		3
Randstad Holding N.V.		501		33
RELX N.V.		211		4
Unilever N.V. CVA		196		11
Vastned Retail N.V. REIT		13		1
Wereldhave N.V. REIT		27		1
Wolters Kluwer N.V.		85		4
				115
New Zealand (0.1%)
Auckland International Airport Ltd.		1,063		5
Contact Energy Ltd.		93		—	@
Fletcher Building Ltd.		88		1
Kiwi Property Group Ltd.		864		1
Mercury NZ Ltd.		90		—	@
Meridian Energy Ltd.		167		—	@
Ryman Healthcare Ltd.		49		—	@
Spark New Zealand Ltd.		232		1
				8
Norway (0.0%)
Entra ASA (c)		63		1
Norwegian Property ASA		110		—	@
				1
Portugal (0.0%)
EDP - Energias de Portugal SA		816		3
Singapore (0.3%)
Ascendas Real Estate Investment Trust REIT		1,800		4
CapitaLand Commercial Trust REIT		1,600		2

	Shares		Value (000)
CapitaLand Ltd.		2,100	$	6
CapitaLand Mall Trust REIT		2,100		3
CDL Hospitality Trusts REIT		300		—	@
City Developments Ltd.		400		4
ComfortDelGro Corp., Ltd.		200		—	@
DBS Group Holdings Ltd.		200		4
Fortune Real Estate Investment Trust REIT (f)		1,000		1
Genting Singapore PLC		700		1
Golden Agri-Resources Ltd.		800		—	@
Hutchison Port Holdings Trust (Units) (e)		5,900		2
Keppel REIT		1,300		1
Keppel Corp., Ltd.		200		1
Mapletree Commercial Trust REIT		1,300		2
Mapletree Industrial Trust REIT		900		1
Mapletree Logistics Trust REIT		1,000		1
Oversea-Chinese Banking Corp., Ltd.		400		4
SATS Ltd.		100		—	@
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 Real Estate Investment Trust REIT		1,900		3
United Overseas Bank Ltd.		100		2
UOL Group Ltd.		400		3
Wilmar International Ltd.		200		1
Yangzijiang Shipbuilding Holdings Ltd.		200		—	@
				51
Spain (1.0%)
Abertis Infraestructuras SA		604		14
Aena SME SA (c)		76		15
Amadeus IT Group SA, Class A		85		6
Banco Bilbao Vizcaya Argentaria SA		2,504		20
Banco de Sabadell SA		2,234		5
Banco Santander SA		5,261		34
Bankia SA		281		1
Bankinter SA		164		2
CaixaBank SA		1,170		6
Cellnex Telecom SA (c)		159		4
Enagas SA		233		6
Ferrovial SA		556		12
Hispania Activos Inmobiliarios SOCIMI SA REIT		61		1
Iberdrola SA		931		7
Industria de Diseno Textil SA		148		5
Inmobiliaria Colonial Socimi SA REIT		157		2
Lar Espana Real Estate Socimi SA REIT		58		1
Merlin Properties Socimi SA REIT		220		3
Red Electrica Corp., SA		444		9
Repsol SA		233		4
Telefonica SA		610		6
				163

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Sweden (0.1%)
Castellum AB		178	$	3
D Carnegie & Co., AB (d)		30		—	@
Dios Fastigheter AB		32		—	@
Fabege AB		90		2
Fastighets AB Balder (d)		63		2
Hemfosa Fastigheter AB		63		1
Hufvudstaden AB, Class A		75		1
Klovern AB, Class B		373		—	@
Kungsleden AB		106		1
Pandox AB		35		1
Wallenstam AB, Class B		133		1
Wihlborgs Fastigheter AB		44		1
				13
Switzerland (1.1%)
ABB Ltd. (Registered)		189		5
Adecco Group AG (Registered)		644		46
Allreal Holding AG (Registered)		6		1
Aryzta AG (d)		7		—	@
Baloise Holding AG (Registered)		6		1
Cie Financiere Richemont SA (Registered)		53		5
Credit Suisse Group AG (Registered) (d)		196		3
Dufry AG (Registered) (d)		5		1
EMS-Chemie Holding AG (Registered)		1		1
Flughafen Zurich AG (Registered)		20		4
Geberit AG (Registered)		4		2
Givaudan SA (Registered)		1		2
Idorsia Ltd. (d)		9		—	@
Julius Baer Group Ltd. (d)		22		1
Kuehne + Nagel International AG (Registered)		6		1
LafargeHolcim Ltd. (Registered) (d)		46		3
Lonza Group AG (Registered) (d)		7		2
Mobimo Holding AG (Registered) (d)		3		1
Nestle SA (Registered)		313		25
Novartis AG (Registered)		224		18
Pargesa Holding SA		4		—	@
Partners Group Holding AG		2		1
PSP Swiss Property AG (Registered)		27		3
Roche Holding AG (Genusschein)		70		16
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		2
Swatch Group AG (The) (Registered)		6		1
Swiss Life Holding AG (Registered) (d)		4		1
Swiss Prime Site AG (Registered) (d)		50		5
Swiss Re AG		33		3
Swisscom AG (Registered)		3		1
UBS Group AG (Registered) (d)		369		7
Zurich Insurance Group AG (d)		15		5
				171

	Shares		Value (000)
United Kingdom (2.4%)
Assura PLC REIT		1,108	$	1
AstraZeneca PLC		166		11
Aviva PLC		707		5
BAE Systems PLC		932		8
Barclays PLC		2,356		7
BHP Billiton PLC		312		6
Big Yellow Group PLC REIT		96		1
BP PLC		2,445		17
British American Tobacco PLC		248		14
British Land Co., PLC (The) REIT		692		6
BT Group PLC		1,276		4
Capital & Counties Properties PLC		500		2
Capital & Regional PLC REIT		358		—	@
Compass Group PLC		469		10
Daejan Holdings PLC		3		—	@
Derwent London PLC REIT		67		3
Diageo PLC		351		12
Empiric Student Property PLC REIT		340		—	@
Ferguson PLC		107		8
GlaxoSmithKline PLC		633		12
Glencore PLC (d)		1,632		8
Grainger PLC		277		1
Great Portland Estates PLC REIT		190		2
Hammerson PLC REIT		538		4
Hansteen Holdings PLC REIT		500		1
Helical PLC		67		—	@
HSBC Holdings PLC		2,327		22
Imperial Brands PLC		166		6
Intu Properties PLC REIT		590		2
Land Securities Group PLC REIT		496		7
Lloyds Banking Group PLC		7,870		7
LondonMetric Property PLC REIT		393		1
National Grid PLC		4,441		50
NewRiver PLC REIT		157		1
Next PLC		47		3
Pennon Group PLC		421		4
Primary Health Properties PLC (d)		22		—	@
Primary Health Properties PLC REIT		380		1
Prudential PLC		462		12
RDI REIT PLC		801		—	@
Reckitt Benckiser Group PLC		103		9
Regional Ltd. REIT (c)		152		—	@
Rio Tinto PLC		186		9
Rolls-Royce Holdings PLC (d)		304		4
Royal Dutch Shell PLC, Class A		957		30
Safestore Holdings PLC REIT		139		1
Schroder Real Estate Investment Trust Ltd. REIT		349		—	@
Segro PLC REIT		558		5
Severn Trent PLC		244		6
Shaftesbury PLC REIT		160		2
Shire PLC		83		4
Target Healthcare Ltd. REIT		162		—	@

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
Taylor Wimpey PLC		1,417	$	4
Tesco PLC		1,173		3
Tritax Big Box PLC REIT		738		2
Unilever PLC		218		12
UNITE Group PLC (The) REIT		149		2
United Utilities Group PLC		701		7
Vodafone Group PLC		3,442		9
Workspace Group PLC REIT		80		1
WPP PLC		379		6
				375
United States (7.3%)
American Campus Communities, Inc. REIT		100		4
American Homes 4 Rent, Class A REIT		100		2
American Tower Corp. REIT		400		58
American Water Works Co., Inc.		200		16
Apartment Investment & Management Co., Class A REIT		100		4
Apple Hospitality, Inc. REIT		100		2
Aqua America, Inc.		200		7
Atmos Energy Corp.		100		8
AvalonBay Communities, Inc. REIT		100		16
Boston Properties, Inc. REIT		100		12
Brandywine Realty Trust REIT		100		2
Brixmor Property Group, Inc. REIT		200		3
Capital One Financial Corp.		1,560		149
CenterPoint Energy, Inc.		400		11
Cheniere Energy, Inc. (d)		200		11
Columbia Property Trust, Inc. REIT		100		2
Consolidated Edison, Inc.		300		23
Corporate Office Properties Trust REIT		100		3
Cousins Properties, Inc. REIT		200		2
Crown Castle International Corp. REIT		300		33
CubeSmart REIT		100		3
DDR Corp. REIT		200		1
DiamondRock Hospitality Co. REIT		100		1
Digital Realty Trust, Inc. REIT		100		10
Discover Financial Services		2,165		156
Douglas Emmett, Inc. REIT		100		4
Duke Realty Corp. REIT		200		5
Edison International		300		19
Empire State Realty Trust, Inc., Class A REIT		100		2
Enbridge Energy Management LLC (d)		112		1
EnLink Midstream LLC		100		1
Equity Commonwealth REIT (d)		100		3
Equity Residential REIT		200		12
Eversource Energy		300		18
Extra Space Storage, Inc. REIT		100		9
First Industrial Realty Trust, Inc. REIT		100		3
Forest City Realty Trust, Inc. REIT		100		2
Franklin Street Properties Corp. REIT		100		1
Gaming & Leisure Properties, Inc. REIT		100		3
GGP, Inc. REIT		300		6

	Shares		Value (000)
Gramercy Property Trust REIT		66	$	1
HCP, Inc. REIT		200		5
Healthcare Realty Trust, Inc. REIT		100		3
Healthcare Trust of America, Inc., Class A REIT		100		3
Highwoods Properties, Inc. REIT		100		4
Hospitality Properties Trust REIT		100		2
Host Hotels & Resorts, Inc. REIT		500		9
Hudson Pacific Properties, Inc. REIT		100		3
Investors Real Estate Trust REIT		100		1
JBG SMITH Properties REIT		50		2
Kilroy Realty Corp. REIT		100		7
Kimco Realty Corp. REIT		200		3
Kinder Morgan, Inc.		2,000		30
LaSalle Hotel Properties REIT		100		3
Lexington Realty Trust REIT		100		1
Liberty Property Trust REIT		100		4
Macerich Co. (The) REIT		100		6
Medical Properties Trust, Inc. REIT		200		3
Mid-America Apartment Communities, Inc. REIT		100		9
National Retail Properties, Inc. REIT		100		4
New Jersey Resources Corp.		100		4
New York REIT, Inc. REIT (d)		10		—	@
NiSource, Inc.		300		7
Omega Healthcare Investors, Inc. REIT		100		3
ONEOK, Inc.		200		11
Paramount Group, Inc. REIT		100		1
PG&E Corp.		400		18
Physicians Realty Trust REIT		100		2
Piedmont Office Realty Trust, Inc., Class A REIT		100		2
ProLogis, Inc. REIT		300		19
Public Storage REIT		100		20
Quality Care Properties, Inc. REIT (d)		40		1
Realty Income Corp. REIT		100		5
Regency Centers Corp. REIT		100		6
Retail Opportunity Investments Corp. REIT		100		2
Retail Properties of America, Inc., Class A REIT		100		1
RLJ Lodging Trust REIT		136		3
Sabra Health Care, Inc. REIT		28		—	@
SBA Communications Corp. REIT (d)		100		17
Sempra Energy		200		22
Senior Housing Properties Trust REIT		100		2
Simon Property Group, Inc. REIT		200		31
SL Green Realty Corp. REIT		100		10
Spirit Realty Capital, Inc. REIT		200		1
STORE Capital Corp. REIT		100		2
Sunstone Hotel Investors, Inc. REIT		100		1
Synchrony Financial		4,571		153
Tanger Factory Outlet Centers, Inc. REIT		100		2
Targa Resources Corp.		200		9
UDR, Inc. REIT		100		4
Ventas, Inc. REIT		200		10
VEREIT, Inc. REIT		600		4
Vornado Realty Trust REIT		100		7

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
United States (cont'd)
Washington Prime Group, Inc. REIT		100	$	1
Weingarten Realty Investors REIT		100		3
Welltower, Inc. REIT		200		11
Williams Cos., Inc. (The)		600		15
Xenia Hotels & Resorts, Inc. REIT		100		2
				1,143
Total Common Stocks (Cost $3,470)				3,992
Investment Companies (8.3%)
Guernsey (0.0%)
Picton Property Income Ltd. (The) REIT (Guernsey)		289		—	@
United Kingdom (0.0%)
HICL Infrastructure Co., Ltd. (United Kingdom)		1,498		3
United States (8.3%)
Morgan Stanley Institutional Fund Trust — High Yield Portfolio (See Note G)		54,303		540
Morgan Stanley Institutional Fund, Inc. — Emerging Markets Fixed Income Opportunities Portfolio (See Note G)		76,964		754
				1,294
Total Investment Companies (Cost $1,265)				1,297
	No. of Right
Right (0.0%)
Italy (0.0%)
Immobiliare Grande Distribuzione SIIQ SpA (d) (Cost $—)		24		—	@
	Shares
Short-Term Investments (11.0%)
Investment Company (8.6%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $1,347)		1,346,851		1,347
	Face Amount (000)
U.S. Treasury Security (2.4%)
U.S. Treasury Bill,
1.80%, 8/9/18 (i)(j) (Cost $380)	$	382		379
Total Short-Term Investments (Cost $1,727)				1,726
Total Investments (101.6%) (Cost $15,033) (k)(l)(m)				15,949
Liabilities in Excess of Other Assets (–1.6%)				(244	)
Net Assets (100.0%)			$	15,705

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.

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(a)  Security is subject to delayed delivery.

(b)  Floating or Variable rate securities: The rates disclosed are as of March 29, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Consolidated Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Consolidated Portfolio of Investments.

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

(d)  Non-income producing security.

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

(f)  Security trades on the Hong Kong exchange.

(g)  At March 29, 2018, 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.

(h)  Security has been deemed illiquid at March 29, 2018.

(i)  Rate shown is the yield to maturity at March 29, 2018.

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

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

(l)  The approximate fair value and percentage of net assets, $2,564,000 and 16.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to Consolidated Financial Statements.

(m)  At March 29, 2018, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,376,000 and the aggregate gross unrealized depreciation is approximately $362,000, resulting in net unrealized appreciation of approximately $1,014,000.

@  Value is less than $500.

ADR  American Depositary Receipt.

CDI  CHESS Depositary Interest.

CVA  Certificaten Van Aandelen.

LIBOR  London Interbank Offered Rate.

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.
13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (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 29, 2018:

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Delivery Date	Unrealized Appreciation (Depreciation) (000)
Australia and New Zealand Banking Group	PLN	67		$	20		4/26/18	$	—	@
Bank of America NA	AUD	125		$	98		4/26/18		2
Bank of America NA	$	75		NOK	589		4/26/18		(—	@)
Bank of America NA	$	10		NZD	14		4/26/18		(—	@)
Bank of America NA	$	24		SEK	190		4/26/18		(1	)
Barclays Bank PLC	RUB	2,603		$	46		4/26/18		1
Barclays Bank PLC	$	—	@	CAD	—	@	4/26/18		—	@
Barclays Bank PLC	$	247		JPY	26,075		4/26/18		(2	)
Barclays Bank PLC	$	2		JPY	263		4/26/18		(—	@)
Barclays Bank PLC	$	11		JPY	1,200		4/26/18		(—	@)
Barclays Bank PLC	$	11		SGD	15		4/26/18		—	@
Citibank NA	MXN	1,947		$	103		4/26/18		(4	)
JPMorgan Chase Bank NA	EUR	22		$	27		4/26/18		—	@
JPMorgan Chase Bank NA	EUR	20		$	25		4/26/18		—	@
JPMorgan Chase Bank NA	MXN	369		$	20		4/26/18		(1	)
JPMorgan Chase Bank NA	NZD	60		$	44		4/26/18		1
JPMorgan Chase Bank NA	$	13		EUR	10		4/26/18		(—	@)
JPMorgan Chase Bank NA	$	195		GBP	141		4/26/18		2
JPMorgan Chase Bank NA	$	1		GBP	—	@	4/26/18		—	@
JPMorgan Chase Bank NA	$	87		KRW	93,150		4/26/18		—	@
JPMorgan Chase Bank NA	$	1		MXN	23		4/26/18		—	@
Royal Bank of Canada	GBP	39		$	54		4/26/18		(1	)
Royal Bank of Canada	$	42		MXN	786		4/26/18		1
UBS AG	CAD	37		$	29		4/26/18		1
UBS AG	JPY	8,662		$	80		4/26/18		(2	)
UBS AG	$	18		CHF	17		4/26/18		(—	@)
UBS AG	$	7		DKK	40		4/26/18		(—	@)
UBS AG	$	44		PLN	150		4/26/18		(1	)
UBS AG	$	20		THB	625		4/26/18		—	@
Bank of America NA	CNH	89		$	14		6/21/18		(—	@)
Bank of America NA	EUR	72		$	90		6/21/18		(—	@)
Bank of America NA	PLN	275		$	80		6/21/18		(1	)
Bank of Montreal	HUF	4,287		$	17		6/21/18		—	@
Barclays Bank PLC	AUD	57		$	44		6/21/18		—	@
Barclays Bank PLC	CHF	6		$	7		6/21/18		—	@
Barclays Bank PLC	EUR	567		$	701		6/21/18		(1	)
Barclays Bank PLC	SGD	16		$	13		6/21/18		(—	@)
Barclays Bank PLC	$	394		GBP	280		6/21/18		—	@
Citibank NA	AUD	54		$	41		6/21/18		—	@
Citibank NA	CZK	459		$	22		6/21/18		(—	@)
Citibank NA	EUR	175		$	216		6/21/18		(—	@)
Citibank NA	THB	762		$	25		6/21/18		—	@
Citibank NA	TRY	125		$	31		6/21/18		—	@
Citibank NA	$	15		CZK	299		6/21/18		(—	@)
Citibank NA	$	126		GBP	89		6/21/18		—	@
Citibank NA	$	3		ILS	9		6/21/18		(—	@)
Commonwealth Bank of Australia	EUR	105		$	130		6/21/18		(—	@)
Commonwealth Bank of Australia	$	79		GBP	56		6/21/18		—	@
Credit Suisse International	$	5		GBP	3		6/21/18		—	@
Goldman Sachs International	AUD	252		$	194		6/21/18		—	@
Goldman Sachs International	EUR	19		$	24		6/21/18		(—	@)
Goldman Sachs International	HKD	88		$	11		6/21/18		—	@
Goldman Sachs International	HUF	811		$	3		6/21/18		—	@
Goldman Sachs International	JPY	4,234		$	40		6/21/18		—	@
Goldman Sachs International	$	1		GBP	1		6/21/18		—	@
Goldman Sachs International	ZAR	806		$	67		6/21/18		(1	)
JPMorgan Chase Bank NA	AUD	55		$	43		6/21/18		—	@
JPMorgan Chase Bank NA	EUR	9		$	11		6/21/18		—	@

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (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	INR	811	$	12	6/21/18	$	—	@
JPMorgan Chase Bank NA	JPY	2,116	$	20	6/21/18		—	@
JPMorgan Chase Bank NA	JPY	4,486	$	42	6/21/18		(—	@)
JPMorgan Chase Bank NA	RUB	3,241	$	56	6/21/18		(—	@)
JPMorgan Chase Bank NA	$	18	CAD	24	6/21/18		—	@
JPMorgan Chase Bank NA	$	8	CNY	52	6/21/18		—	@
JPMorgan Chase Bank NA	$	83	JPY	8,600	6/21/18		(1	)
JPMorgan Chase Bank NA	$	20	JPY	2,146	6/21/18		—	@
JPMorgan Chase Bank NA	$	111	MXN	2,102	6/21/18		4
JPMorgan Chase Bank NA	ZAR	41	$	3	6/21/18		(—	@)
JPMorgan Chase Bank NA	ZAR	129	$	11	6/21/18		—	@
State Street Bank and Trust Co.	ARS	315	$	15	6/21/18		(—	@)
State Street Bank and Trust Co.	AUD	116	$	89	6/21/18		—	@
State Street Bank and Trust Co.	BRL	2,289	$	692	6/21/18		3
State Street Bank and Trust Co.	BRL	44	$	13	6/21/18		(—	@)
State Street Bank and Trust Co.	CLP	8,425	$	14	6/21/18		(—	@)
State Street Bank and Trust Co.	COP	57,924	$	20	6/21/18		(—	@)
State Street Bank and Trust Co.	IDR	629,105	$	45	6/21/18		—	@
State Street Bank and Trust Co.	TWD	373	$	13	6/21/18		—	@
State Street Bank and Trust Co.	$	2	GBP	2	6/21/18		—	@
State Street Bank and Trust Co.	$	1	KRW	642	6/21/18		—	@
State Street Bank and Trust Co.	$	71	MXN	1,349	6/21/18		2
UBS AG	AUD	236	$	181	6/21/18		—	@
UBS AG	DKK	165	$	27	6/21/18		(—	@)
UBS AG	EUR	31	$	39	6/21/18		(—	@)
UBS AG	NOK	532	$	69	6/21/18		1
UBS AG	$	11	CHF	10	6/21/18		—	@
UBS AG	$	41	SEK	338	6/21/18		(1	)
UBS AG	ZAR	43	$	4	6/21/18		(—	@)
Citibank NA	CZK	753	$	37	9/20/18		1
Citibank NA	CZK	195	$	10	9/20/18		—	@
Citibank NA	EUR	678	$	841	9/20/18		(3	)
Citibank NA	$	843	CZK	17,338	9/20/18		5
Citibank NA	$	24	EUR	19	9/20/18		(—	@)
Citibank NA	$	8	EUR	6	9/20/18		—	@
Citibank NA	$	6	EUR	5	9/20/18		—	@
						$	4

Futures Contracts:

The Fund had the following futures contracts open at March 29, 2018:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)		Unrealized Appreciation (Depreciation) (000)
Long:
Euro Stoxx 50 (Germany)		1	Jun-18		—	@	$	40	$	(1	)
German Euro BOBL (Germany)		1	Jun-18		100			162		1
NIKKEI 225 Index (Japan)		1	Jun-18		1			101		2
OMXS 30 (Sweden)		2	Apr-18		—	@		37		(1	)
S&P 500 E Mini Index (United States)		12	Jun-18		1			1,586		(31	)
TOPIX Index (Japan)		1	Jun-18		10			161		1
U.S. Treasury 10 yr. Note (United States)		7	Jun-18		700			848		9
U.S. Treasury 10 yr. Ultra Long Bond (United States)		11	Jun-18		1,100			1,428		24
U.S. Treasury 2 yr. Note (United States)		3	Jun-18		600			638		—	@
U.S. Treasury Ultra Bond (United States)		2	Jun-18		200			321		11

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Futures Contracts: (cont'd)

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Short:
Copper Future (United States)		3	May-18		(75	)	$	(227	)	$	18
German Euro Bund (Germany)		2	Jun-18		(200	)		(393	)		(3	)
Hang Seng China Enterprises Index (Hong Kong)		5	Apr-18		(—	@)		(384	)		5
U.S. Treasury 10 yr. Note (United States)		1	Jun-18		(100	)		(121	)		(1	)
UK Long Gilt Bond (United Kingdom)		1	Jun-18		(100	)		(172	)		(3	)
										$	31

Credit Default Swap Agreements:

The Fund had the following credit default swap agreements open at March 29, 2018:

Swap Counterparty and Reference Obligation	Credit Rating of Reference Obligation†	Buy/Sell Protection	Pay/Receive Fixed Rate			Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)		Upfront Payment Paid (000)		Unrealized Appreciation (000)
Morgan Stanley & Co., LLC* CDX.NA.HY.27	NR	Sell		5.00	%	Quarterly	12/20/21	$	36	$	3	$	1	$	2
Morgan Stanley & Co., LLC* ITRAXX.XO.27	NR	Sell		5.00		Quarterly	6/20/22	EUR	138		20		14		6
										$	23	$	15	$	8

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 29, 2018:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate	Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	3 Month KORIBOR	Pay	1.83%	Quarterly/ Quarterly	6/14/27	$	73,000	$	(3	)	$	—	$	(3	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	7.32	Monthly/ Monthly	10/21/19	MXN	3,955		(1	)		—		(1	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	7.32	Monthly/ Monthly	10/21/19		4,127		(1	)		—		(1	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	7.32	Monthly/ Monthly	10/21/19		3,968		(1	)		—		(1	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	7.63	Monthly/ Monthly	12/5/19		4,141		(—	@)		—		(—	@)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	7.63	Monthly/ Monthly	12/5/19		4,279		(—	@)		—		(—	@)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	7.64	Monthly/ Monthly	12/5/19		2,457		(—	@)		—		(—	@)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	8.04	Monthly/ Monthly	12/19/19		6,582		2			—		2
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	8.04	Monthly/ Monthly	12/19/19		5,358		2			—		2
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	8.06	Monthly/ Monthly	12/20/19		4,360		2			—		2
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	8.08	Monthly/ Monthly	12/20/19		4,247		2			—		2
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	8.07	Monthly/ Monthly	12/25/19		5,529		2			—		2
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	8.09	Monthly/ Monthly	12/26/19		5,529		2			—		2
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	8.10	Monthly/ Monthly	12/26/19		5,529		2			—		2

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Interest Rate Swap Agreements: (cont'd)

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate	Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay	8.06%	Monthly/ Monthly	12/27/19	MXN	5,936	$	2		$	—	$	2
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.11	Annual/ Semi-Annual	8/7/22	CZK	737		1			—		1
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.12	Annual/ Semi-Annual	8/7/22		5,802		4			—		4
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.06	Annual/ Semi-Annual	8/8/22		1,788		2			—		2
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.07	Annual/ Semi-Annual	8/14/22		1,781		1			—		1
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.07	Annual/ Semi-Annual	8/14/22		1,781		1			—		1
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.06	Annual/ Semi-Annual	8/15/22		1,140		1			—		1
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.09	Annual/ Semi-Annual	8/15/22		3,671		3			—		3
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.12	Annual/ Semi-Annual	8/22/22		899		1			—		1
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.10	Annual/ Semi-Annual	8/23/22		1,798		1			—		1
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.10	Annual/ Semi-Annual	8/23/22		1,798		1			—		1
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.10	Annual/ Semi-Annual	8/23/22		1,798		1			—		1
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.12	Annual/ Semi-Annual	8/24/22		815		1			—		1
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.12	Annual/ Semi-Annual	8/24/22		1,798		1			—		1
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive	1.67	Annual/ Semi-Annual	11/28/22		474		(—	@)		—		(—	@)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.28	Semi-Annual/ Quarterly	12/8/26	$	116		4			—		4
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.48	Semi-Annual/ Quarterly	12/21/26		77		1			—		1
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive	7.94	Monthly/ Monthly	12/9/27	MXN	1,490		(2	)		—		(2	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive	7.95	Monthly/ Monthly	12/9/27		1,292		(2	)		—		(2	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive	8.00	Monthly/ Monthly	12/10/27		1,734		(2	)		—		(2	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive	8.01	Monthly/ Monthly	12/10/27		4,186		(6	)		—		(6	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive	8.02	Monthly/ Monthly	12/10/27		1,735		(2	)		—		(2	)
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay	8.51	Quarterly/ Quarterly	12/13/27	ZAR	1,809		10			—		10
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay	8.51	Quarterly/ Quarterly	12/13/27		994		5			—		5
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive	8.12	Monthly/ Monthly	12/15/27	MXN	1,734		(3	)		—		(3	)
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay	8.37	Quarterly/ Quarterly	12/15/27	ZAR	2,219		10			—		10
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive	8.12	Monthly/ Monthly	12/16/27	MXN	1,735		(3	)		—		(3	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Interest Rate Swap Agreements: (cont'd)

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate	Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive	8.14%	Monthly/ Monthly	12/16/27	$	1,734	$	(3	)	$	—	$	(3	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive	8.11	Monthly/ Monthly	12/17/27	MXN	1,439		(3	)		—		(3	)
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay	7.88	Quarterly/ Quarterly	1/4/28	ZAR	1,309		2			—		2
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay	7.83	Quarterly/ Quarterly	1/19/28		1,594		2			—		2
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay	7.83	Quarterly/ Quarterly	1/19/28		542		1			—		1
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay	7.81	Quarterly/ Quarterly	1/24/28		1,250		2			—		2
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.59	Semi-Annual/ Quarterly	12/8/46	$	16		1			—		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.74	Semi-Annual/ Quarterly	12/21/46		32		1			—		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.48	Semi-Annual/ Quarterly	5/23/47		30		2			—		2
								$	44		$	—	$	44

Total Return Swap Agreements:

The Fund had the following total return swap agreements open at March 29, 2018:

Swap Counterparty	Index	Pay/Receive Total Return of Referenced Index		Floating Rate	Payment Frequency		Maturity Date		Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††		Receive	3 Month USD LIBOR plus 0.65%		Quarterly		11/20/18	$	157	$	(6	)	$	—	$	(6	)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††		Receive	3 Month USD LIBOR plus 0.55%		Quarterly		11/20/18		107		(4	)		—		(4	)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††		Receive	3 Month USD LIBOR plus 0.55%		Quarterly		11/20/18		115		(5	)		—		(5	)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††		Receive	3 Month USD LIBOR plus 0.42%		Quarterly		11/20/18		112		(4	)		—		(4	)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††		Receive	3 Month USD LIBOR plus 0.42%		Quarterly		11/20/18		114		(4	)		—		(4	)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††		Receive	3 Month USD LIBOR plus 0.55%		Quarterly		11/20/18		32		(1	)		—		(1	)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††		Receive	3 Month USD LIBOR plus 0.55%		Quarterly		11/20/18		25		1			—		1
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††		Receive	3 Month USD LIBOR plus 0.55%		Quarterly		11/20/18		110		(3	)		—		(3	)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††		Receive	3 Month USD LIBOR plus 0.65%		Quarterly		11/20/18		165		(6	)		—		(6	)
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††		Pay	3 Month USD LIBOR plus 0.50%		Quarterly		11/20/18		133		5			—		5
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††		Pay	3 Month USD LIBOR plus 0.40%		Quarterly		11/20/18		114		5			—		5
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††		Pay	3 Month USD LIBOR plus 0.40%		Quarterly		11/20/18		107		4			—		4
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††		Pay	3 Month USD LIBOR plus 0.33%		Quarterly		11/20/18		119		5			—		5
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††		Pay	3 Month USD LIBOR plus 0.40%		Quarterly		11/20/18		120		6			—		6

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Total Return Swap Agreements: (cont'd)

Swap Counterparty	Index	Pay/Receive Total Return of Referenced Index		Floating Rate	Payment Frequency		Maturity Date		Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††		Pay	3 Month USD LIBOR plus 0.40%		Quarterly		11/20/18	$	35	$	(—	@)	$	—	$	(—	@)
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††		Pay	3 Month USD LIBOR plus 0.33%		Quarterly		11/20/18		120		5			—		5
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††		Pay	3 Month USD LIBOR plus 0.50%		Quarterly		11/20/18		180		7			—		7
JPMorgan Chase Bank NA	JPM Custom Short U.S. Machinery Index††		Pay	3 Month USD LIBOR plus 0.10%		Quarterly		11/21/18		24		1			—		1
JPMorgan Chase Bank NA	JPM Custom Short U.S. Machinery Index††		Pay	3 Month USD LIBOR plus 0.10%		Quarterly		11/21/18		29		1			—		1
JPMorgan Chase Bank NA	JPM Custom Short U.S. Machinery Index††		Pay	3 Month USD LIBOR plus 0.10%		Quarterly		11/21/18		75		3			—		3
JPMorgan Chase Bank NA	JPM Custom Short Non-U.S. Machinery Index††		Pay	3 Month USD LIBOR plus 0.20%		Quarterly		11/23/18		36		1			—		1
JPMorgan Chase Bank NA	JPM Custom Short Non-U.S. Machinery Index††		Pay	3 Month USD LIBOR plus 0.20%		Quarterly		11/23/18		38		3			—		3
JPMorgan Chase Bank NA	JPM Custom Short Non-U.S. Machinery Index††		Pay	3 Month USD LIBOR plus 0.20%		Quarterly		11/23/18		115		9			—		9
JPMorgan Chase Bank NA	MSCI Emerging Market Index		Receive	3 Month USD LIBOR plus 0.62%		Quarterly		1/24/19		540		(29	)		—		(29	)
JPMorgan Chase Bank NA	MSCI Japan Net Total Return Index		Receive	3 Month USD LIBOR plus 0.25%		Quarterly		2/8/19		383		2			—		2
JPMorgan Chase Bank NA	JPM Custom Short China Autos Index††		Pay	3 Month USD LIBOR plus 0.40%		Quarterly		3/6/19		50		6			—		6
JPMorgan Chase Bank NA	JPM Custom Short Elevators Index††		Pay	3 Month USD LIBOR plus 0.15%		Quarterly		3/6/19		33		1			—		1
JPMorgan Chase Bank NA	JPM Custom China Tier 2 Banks Index††		Pay	3 Month USD LIBOR plus 0.10%		Quarterly		3/15/19		97		7			—		7
JPMorgan Chase Bank NA	JPM Custom Short Metals & Mining Index††		Pay	3 Month USD LIBOR plus 0.30%		Quarterly		3/29/19		80		1			—		1
											$	11		$	—	$	11

††  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 JPM Custom Long U.S. Defensives Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom Long U.S. Defensives Index
Abbott Laboratories		1,407	$	84		0.86	%
AbbVie, Inc.		1,291		122		1.24
AES Corp.		2,315		26		0.27
Aetna, Inc.		269		45		0.46
Agilent Technologies, Inc.		260		17		0.18
Alexion Pharmaceuticals, Inc.		181		20		0.20
Align Technology, Inc.		58		15		0.15
Allergan PLC		271		46		0.46
Alliant Energy Corp.		810		33		0.34
Altria Group, Inc.		2,694		168		1.70
Ameren Corp.		851		48		0.49
American Electric Power Co., Inc.		1,724		118		1.20
American Water Works Co., Inc.		625		51		0.52
AmerisourceBergen Corp.		131		11		0.11
Amgen, Inc.		591		101		1.02
Anthem, Inc.		213		47		0.47
Archer-Daniels-Midland Co.		790		34		0.35

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Long U.S. Defensives Index (cont'd)
AT&T, Inc.		38,194	$	1,362		13.82	%
Baxter International, Inc.		406		26		0.27
Becton Dickinson & Co.		214		46		0.47
Biogen, Inc.		171		47		0.48
Boston Scientific Corp.		1,111		30		0.31
Bristol-Myers Squibb Co.		1,328		84		0.85
Brown-Forman Corp.		344		19		0.19
Campbell Soup Co.		272		12		0.12
Cardinal Health, Inc.		256		16		0.16
Celgene Corp.		634		57		0.57
Centene Corp.		140		15		0.15
CenterPoint Energy, Inc.		1,511		41		0.42
CenturyLink, Inc.		6,044		99		1.01
Cerner Corp.		255		15		0.15
Church & Dwight Co., Inc.		350		18		0.18
Cigna Corp.		204		34		0.35
Clorox Co. (The)		181		24		0.24
CMS Energy Corp.		989		45		0.45
Coca-Cola Co. (The)		5,391		234		2.38
Colgate-Palmolive Co.		1,237		89		0.90
Conagra Brands, Inc.		584		22		0.22
Consolidated Edison, Inc.		1,086		85		0.86
Constellation Brands, Inc.		241		55		0.56
Cooper Cos., Inc. (The)		40		9		0.09
Costco Wholesale Corp.		616		116		1.18
Coty, Inc.		662		12		0.12
CVS Health Corp.		1,428		89		0.90
Danaher Corp.		495		48		0.49
DaVita, Inc.		124		8		0.08
DENTSPLY SIRONA, Inc.		186		9		0.09
Dominion Energy, Inc.		2,253		152		1.54
Dr. Pepper Snapple Group, Inc.		255		30		0.31
DTE Energy Co.		629		66		0.67
Duke Energy Corp.		2,454		190		1.93
Edison International		1,142		73		0.74
Edwards Lifesciences Corp.		171		24		0.24
Eli Lilly & Co.		785		61		0.62
Entergy Corp.		629		50		0.50
Envision Healthcare Corp.		98		4		0.04
Estee Lauder Cos., Inc. (The)		314		47		0.48
Eversource Energy		1,111		65		0.66
Exelon Corp.		3,366		131		1.33
Express Scripts Holding Co.		468		32		0.33
FirstEnergy Corp.		1,558		53		0.54
General Mills, Inc.		810		36		0.37
Gilead Sciences, Inc.		1,058		80		0.81
HCA Healthcare, Inc.		234		23		0.23
Henry Schein, Inc.		129		9		0.09
Hershey Co. (The)		198		20		0.20
Hologic, Inc.		227		8		0.09
Hormel Foods Corp.		379		13		0.13
Humana, Inc.		117		31		0.32
IDEXX Laboratories, Inc.		71		14		0.14
Illumina, Inc.		118		28		0.28
Incyte Corp.		138		11		0.12
Intuitive Surgical, Inc.		91		38		0.38
IQVIA Holdings, Inc.		123		12		0.12
JM Smucker Co. (The)		160		20		0.20
Johnson & Johnson		2,174		279		2.83
Kellogg Co.		349		23		0.23
Kimberly-Clark Corp.		496		55		0.55
Kraft Heinz Co. (The)		838		52		0.53

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Long U.S. Defensives Index (cont'd)
Kroger Co. (The)		1,260	$	30		0.31	%
Laboratory Corp. of America Holdings		82		13		0.13
McCormick & Co., Inc.		167		18		0.18
McKesson Corp.		170		24		0.24
Medtronic PLC		1,097		88		0.89
Merck & Co., Inc.		2,215		121		1.22
Mettler-Toledo International, Inc.		21		12		0.12
Molson Coors Brewing Co.		259		20		0.20
Mondelez International, Inc.		2,117		88		0.90
Monster Beverage Corp.		582		33		0.34
Mylan N.V.		434		18		0.18
NextEra Energy, Inc.		1,641		268		2.72
NiSource, Inc.		1,143		27		0.28
NRG Energy, Inc.		1,054		32		0.33
Patterson Cos., Inc.		67		1		0.02
PepsiCo, Inc.		2,006		219		2.22
PerkinElmer, Inc.		89		7		0.07
Perrigo Co., PLC		107		9		0.09
Pfizer, Inc.		4,834		172		1.74
PG&E Corp.		1,798		79		0.80
Philip Morris International, Inc.		2,181		217		2.20
Pinnacle West Capital Corp.		391		31		0.32
PPL Corp.		2,395		68		0.69
Procter & Gamble Co. (The)		3,581		284		2.88
Public Service Enterprise Group, Inc.		1,774		89		0.90
Quest Diagnostics, Inc.		110		11		0.11
Regeneron Pharmaceuticals, Inc.		62		21		0.22
ResMed, Inc.		115		11		0.11
SCANA Corp.		501		19		0.19
Sempra Energy		880		98		0.99
Southern Co. (The)		3,504		156		1.59
Stryker Corp.		261		42		0.43
Sysco Corp.		682		41		0.41
Thermo Fisher Scientific, Inc.		324		67		0.68
Tyson Foods, Inc.		406		30		0.30
UnitedHealth Group, Inc.		783		168		1.70
Universal Health Services, Inc.		72		9		0.09
Varian Medical Systems, Inc.		74		9		0.09
Verizon Communications, Inc.		25,376		1,213		12.31
Vertex Pharmaceuticals, Inc.		204		33		0.34
Walgreens Boots Alliance, Inc.		1,219		80		0.81
Walmart, Inc.		2,056		183		1.86
Waters Corp.		65		13		0.13
WEC Energy Group, Inc.		1,106		69		0.70
Xcel Energy, Inc.		1,780		81		0.82
Zimmer Biomet Holdings, Inc.		164		18		0.18
Zoetis, Inc.		398		33		0.34
Total			$	9,855		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Custom Short U.S. Cyclicals Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short U.S. Cyclicals Index
3M Co.		696	$	153		1.46	%
Accenture PLC		286		44		0.42
Activision Blizzard, Inc.		350		24		0.22
Acuity Brands, Inc.		49		7		0.07
Adobe Systems, Inc.		229		49		0.47
Advance Auto Parts, Inc.		72		9		0.08
Advanced Micro Devices, Inc.		373		4		0.04

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short U.S. Cyclicals Index (cont'd)
Air Products & Chemicals, Inc.		897	$	143		1.36	%
Akamai Technologies, Inc.		79		6		0.05
Alaska Air Group, Inc.		144		9		0.09
Albemarle Corp.		455		42		0.40
Allegion PLC		111		9		0.09
Alliance Data Systems Corp.		22		5		0.04
Alphabet, Inc.		140		144		1.38
Alphabet, Inc.		138		143		1.37
Amazon.com, Inc.		390		564		5.40
American Airlines Group, Inc.		506		26		0.25
AMETEK, Inc.		269		20		0.20
Amphenol Corp.		141		12		0.12
Analog Devices, Inc.		170		15		0.15
ANSYS, Inc.		39		6		0.06
AO Smith Corp.		171		11		0.10
Apple, Inc.		2,392		401		3.84
Applied Materials, Inc.		494		27		0.26
Aptiv PLC		261		22		0.21
Arconic, Inc.		493		11		0.11
Autodesk, Inc.		102		13		0.12
Automatic Data Processing, Inc.		206		23		0.22
AutoZone, Inc.		27		18		0.17
Avery Dennison Corp.		364		39		0.37
Ball Corp.		1,448		58		0.55
Best Buy Co., Inc.		260		18		0.17
Boeing Co. (The)		648		212		2.03
Booking Holdings, Inc.		48		100		0.95
BorgWarner, Inc.		194		10		0.09
Broadcom, Inc.		188		44		0.42
CA, Inc.		146		5		0.05
Cadence Design Systems, Inc.		130		5		0.05
CarMax, Inc.		179		11		0.11
Carnival Corp.		399		26		0.25
Caterpillar, Inc.		690		102		0.97
CBS Corp.		356		18		0.17
CF Industries Holdings, Inc.		960		36		0.35
CH Robinson Worldwide, Inc.		164		15		0.15
Charter Communications, Inc.		197		61		0.59
Chipotle Mexican Grill, Inc.		25		8		0.08
Cintas Corp.		100		17		0.16
Cisco Systems, Inc.		2,316		99		0.95
Citrix Systems, Inc.		67		6		0.06
Cognizant Technology Solutions Corp.		274		22		0.21
Comcast Corp.		4,605		157		1.50
Corning, Inc.		418		12		0.11
CSRA, Inc.		76		3		0.03
CSX Corp.		1,066		59		0.57
Cummins, Inc.		184		30		0.29
Darden Restaurants, Inc.		123		10		0.10
Deere & Co.		373		58		0.55
Delphi Technologies PLC		87		4		0.04
Delta Air Lines, Inc.		777		43		0.41
Discovery, Inc.		199		4		0.04
Discovery, Inc.		151		3		0.03
DISH Network Corp.		223		8		0.08
Dollar General Corp.		255		24		0.23
Dollar Tree, Inc.		232		22		0.21
Dover Corp.		182		18		0.17
DowDuPont, Inc.		9,605		612		5.85
DR Horton, Inc.		333		15		0.14
DXC Technology Co.		132		13		0.13
Eastman Chemical Co.		596		63		0.60

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short U.S. Cyclicals Index (cont'd)
Eaton Corp PLC		519	$	41		0.40	%
eBay, Inc.		461		19		0.18
Ecolab, Inc.		1,072		147		1.40
Electronic Arts, Inc.		143		17		0.17
Emerson Electric Co.		747		51		0.49
Equifax, Inc.		140		16		0.16
Expedia Group, Inc.		120		13		0.13
Expeditors International of Washington I		211		13		0.13
F5 Networks, Inc.		29		4		0.04
Facebook, Inc.		1,098		175		1.68
Fastenal Co.		336		18		0.18
FedEx Corp.		288		69		0.66
Fidelity National Information Services I		154		15		0.14
Fiserv, Inc.		194		14		0.13
FLIR Systems, Inc.		64		3		0.03
Flowserve Corp.		152		7		0.06
Fluor Corp.		163		9		0.09
FMC Corp.		552		42		0.40
Foot Locker, Inc.		121		6		0.05
Ford Motor Co.		3,829		42		0.41
Fortive Corp.		356		28		0.26
Fortune Brands Home & Security, Inc.		180		11		0.10
Freeport-McMoRan, Inc.		5,539		97		0.93
Gap, Inc. (The)		215		7		0.06
Garmin Ltd.		109		6		0.06
Gartner, Inc.		42		5		0.05
General Dynamics Corp.		325		72		0.69
General Electric Co.		10,102		136		1.30
General Motors Co.		1,284		47		0.45
Genuine Parts Co.		144		13		0.12
Global Payments, Inc.		71		8		0.08
Goodyear Tire & Rubber Co. (The)		246		7		0.06
H&R Block, Inc.		205		5		0.05
Hanesbrands, Inc.		357		7		0.06
Harley-Davidson, Inc.		167		7		0.07
Harris Corp.		55		9		0.08
Hasbro, Inc.		111		9		0.09
Hewlett Packard Enterprise Co.		761		13		0.13
Hilton Worldwide Holdings, Inc.		200		16		0.15
Home Depot, Inc. (The)		1,154		206		1.97
Honeywell International, Inc.		889		128		1.23
HP, Inc.		774		17		0.16
IHS Markit Ltd.		424		20		0.20
Illinois Tool Works, Inc.		361		57		0.54
Ingersoll-Rand PLC		296		25		0.24
Intel Corp.		2,176		113		1.08
International Business Machines Corp.		401		62		0.59
International Flavors & Fragrances, Inc.		325		44		0.43
International Paper Co.		1,700		91		0.87
Interpublic Group of Cos., Inc. (The)		385		9		0.08
Intuit, Inc.		113		20		0.19
Jacobs Engineering Group, Inc.		140		8		0.08
JB Hunt Transport Services, Inc.		100		12		0.11
Johnson Controls International PLC		1,088		38		0.37
Juniper Networks, Inc.		176		4		0.04
Kansas City Southern		123		14		0.13
KLA-Tencor Corp.		73		8		0.08
Kohl's Corp.		165		11		0.10
L Brands, Inc.		244		9		0.09
L3 Technologies, Inc.		91		19		0.18
Lam Research Corp.		75		15		0.15

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Security Description	Shares		Value (000)			Index Weight
JPM Custom Short U.S. Cyclicals Index (cont'd)
Leggett & Platt, Inc.		130	$	6			0.06	%
Lennar Corp.		199		12			0.11
Lennar Corp.		4		—	@@		—	@@@
LKQ Corp.		302		11			0.11
Lockheed Martin Corp.		292		99			0.94
Lowe's Cos., Inc.		827		73			0.69
LyondellBasell Industries N.V.		1,336		141			1.35
Macy's, Inc.		298		9			0.08
Marriott International, Inc.		306		42			0.40
Martin Marietta Materials, Inc.		259		54			0.51
Masco Corp.		372		15			0.14
Mastercard, Inc.		432		76			0.72
Mattel, Inc.		336		4			0.04
McDonald's Corp.		793		124			1.19
MGM Resorts International		507		18			0.17
Michael Kors Holdings Ltd.		148		9			0.09
Microchip Technology, Inc.		108		10			0.09
Micron Technology, Inc.		516		27			0.26
Microsoft Corp.		3,567		326			3.11
Mohawk Industries, Inc.		62		14			0.14
Monsanto Co.		1,809		211			2.02
Mosaic Co. (The)		1,445		35			0.34
Motorola Solutions, Inc.		75		8			0.08
NetApp, Inc.		125		8			0.07
Netflix, Inc.		423		125			1.19
Newell Brands, Inc.		480		12			0.12
Newmont Mining Corp.		2,195		86			0.82
News Corp.		374		6			0.06
News Corp.		119		2			0.02
Nielsen Holdings PLC		392		12			0.12
NIKE, Inc.		1,286		85			0.82
Nordstrom, Inc.		114		6			0.05
Norfolk Southern Corp.		336		46			0.44
Northrop Grumman Corp.		203		71			0.68
Norwegian Cruise Line Holdings Ltd.		174		9			0.09
Nucor Corp.		1,315		80			0.77
NVIDIA Corp.		278		64			0.62
Omnicom Group, Inc.		226		16			0.16
Oracle Corp.		1,399		64			0.61
O'Reilly Automotive, Inc.		86		21			0.20
PACCAR, Inc.		410		27			0.26
Packaging Corp. of America		388		44			0.42
Parker-Hannifin Corp.		155		27			0.25
Paychex, Inc.		148		9			0.09
PayPal Holdings, Inc.		523		40			0.38
Pentair PLC		193		13			0.13
PPG Industries, Inc.		1,056		118			1.13
PulteGroup, Inc.		272		8			0.08
PVH Corp.		76		12			0.11
Qorvo, Inc.		59		4			0.04
QUALCOMM, Inc.		684		38			0.36
Quanta Services, Inc.		176		6			0.06
Ralph Lauren Corp.		54		6			0.06
Raytheon Co.		339		73			0.70
Red Hat, Inc.		82		12			0.12
Republic Services, Inc.		267		18			0.17
Robert Half International, Inc.		147		9			0.08
Rockwell Automation, Inc.		150		26			0.25
Roper Technologies, Inc.		119		33			0.32
Ross Stores, Inc.		381		30			0.28
Royal Caribbean Cruises Ltd.		168		20			0.19

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short U.S. Cyclicals Index (cont'd)
salesforce.com, Inc.		316	$	37		0.35	%
Seagate Technology PLC		133		8		0.07
Sealed Air Corp.		782		33		0.32
Sherwin-Williams Co. (The)		338		133		1.27
Signet Jewelers Ltd.		59		2		0.02
Skyworks Solutions, Inc.		85		9		0.08
Snap-on, Inc.		67		10		0.09
Southwest Airlines Co.		642		37		0.35
Stanley Black & Decker, Inc.		179		27		0.26
Starbucks Corp.		1,414		82		0.78
Stericycle, Inc.		100		6		0.06
Symantec Corp.		285		7		0.07
Synopsys, Inc.		70		6		0.06
Tapestry, Inc.		277		15		0.14
Target Corp.		535		37		0.36
TE Connectivity Ltd.		164		16		0.16
Texas Instruments, Inc.		459		48		0.46
Textron, Inc.		309		18		0.17
Tiffany & Co.		100		10		0.09
TJX Cos., Inc. (The)		623		51		0.49
Total System Services, Inc.		78		7		0.06
Tractor Supply Co.		124		8		0.07
TransDigm Group, Inc.		56		17		0.16
TripAdvisor, Inc.		106		4		0.04
Twenty-First Century Fox, Inc.		1,030		38		0.36
Twenty-First Century Fox, Inc.		430		16		0.15
Ulta Beauty, Inc.		57		12		0.11
Under Armour, Inc.		181		3		0.03
Under Armour, Inc.		182		3		0.02
Union Pacific Corp.		934		126		1.20
United Continental Holdings, Inc.		302		21		0.20
United Parcel Service, Inc.		804		84		0.80
United Rentals, Inc.		99		17		0.16
United Technologies Corp.		867		109		1.04
VeriSign, Inc.		40		5		0.05
Verisk Analytics, Inc.		181		19		0.18
VF Corp.		320		24		0.23
Viacom, Inc.		345		11		0.10
Visa, Inc.		847		101		0.97
Vulcan Materials Co.		545		62		0.59
Walt Disney Co. (The)		1,511		152		1.45
Waste Management, Inc.		472		40		0.38
Western Digital Corp.		137		13		0.12
Western Union Co. (The)		215		4		0.04
WestRock Co.		1,046		67		0.64
Whirlpool Corp.		71		11		0.10
WW Grainger, Inc.		61		17		0.16
Wyndham Worldwide Corp.		101		12		0.11
Wynn Resorts Ltd.		78		14		0.14
Xerox Corp.		99		3		0.03
Xilinx, Inc.		115		8		0.08
Xylem, Inc.		210		16		0.15
Yum! Brands, Inc.		338		29		0.28
Total			$	10,459		100.00	%

@@  Value is less than $500.

@@@  Index weight is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (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 Custom Short U.S. Machinery Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short U.S. Machinery Index
AGCO Corp.		2,437	$	158		1.52	%
Caterpillar, Inc.		18,170		2,678		25.78
Cummins, Inc.		4,889		792		7.63
Deere & Co.		9,912		1,540		14.82
Dover Corp.		4,757		467		4.50
Flowserve Corp.		4,020		174		1.68
Illinois Tool Works, Inc.		10,439		1,635		15.74
Ingersoll-Rand PLC		7,598		650		6.26
PACCAR, Inc.		10,473		693		6.67
Parker-Hannifin Corp.		4,071		696		6.70
Pentair PLC		5,562		379		3.65
SPX Corp.		1,295		42		0.41
SPX FLOW, Inc.		1,273		63		0.60
Xylem, Inc.		5,454		420		4.04
Total			$	10,387		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Custom Short Non-U.S. Machinery Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short Non-U.S. Machinery Index
Alfa Laval AB		87,513	$	2,065		2.20	%
Atlas Copco AB		250,477		10,826		11.54
CNH Industrial N.V.		288,152		3,552		3.79
CRRC Corp., Ltd.		9,893,077		8,433		8.99
Doosan Infracore Co., Ltd.		42,344		388		0.41
GEA Group AG		40,470		1,719		1.83
Hino Motors Ltd.		121,416		1,558		1.66
Hitachi Construction Machinery Co., Ltd.		45,141		1,722		1.84
Hiwin Technologies Corp.		58,134		828		0.88
Hyundai Heavy Industries Co., Ltd.		12,340		1,598		1.70
Hyundai Mipo Dockyard Co., Ltd.		4,206		393		0.42
IMI PLC		57,785		875		0.93
JTEKT Corp.		71,869		1,039		1.11
Kawasaki Heavy Industries Ltd.		34,910		1,110		1.18
Komatsu Ltd.		203,712		6,709		7.15
Kone Oyj		110,583		5,509		5.87
Kubota Corp.		260,260		4,512		4.81
MAN SE		30,927		3,602		3.84
Melrose Industries PLC		411,049		1,331		1.42
Metso Oyj		31,792		1,001		1.07
NGK Insulators Ltd.		68,591		1,170		1.25
Samsung Heavy Industries Co., Ltd.		90,857		674		0.72
Sandvik AB		264,537		4,826		5.14
Schindler Holding AG		22,296		4,799		5.11
SMC Corp.		14,169		5,670		6.04
Sulzer AG		7,149		937		1.00
Sumitomo Heavy Industries Ltd.		25,949		975		1.04
Volvo AB		449,451		8,188		8.73
Wartsila Oyj Abp		124,953		2,757		2.94
Weichai Power Co., Ltd.		1,842,715		2,066		2.20
Weir Group PLC (The)		47,501		1,328		1.42
Yangzijiang Shipbuilding Holdings Ltd.		826,877		763		0.81
Zoomlion Co., Ltd.		2,358,918		902		0.96
Total			$	93,825		100.00	%

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (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 Custom Short China Autos Index as of March 29, 2018:  

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short China Autos Index
Brilliance China Automotive Holdings Ltd.		8,529,002	$	17,800		20.81	%
Dongfeng Motor Group Co., Ltd.		7,422,636		8,615		10.07
Geely Automobile Holdings Ltd.		13,781,205		39,683		46.39
Great Wall Motor Co., Ltd.		8,636,737		8,660		10.12
Guangzhou Automobile Group Co., Ltd.		5,853,383		10,784		12.61
Total			$	85,542		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Custom Short Elevators Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short Elevators Index
Fujitec Co., Ltd.		17,516	$	231		2.41	%
Kone Oyj		99,151		4,939		51.46
Schindler Holding AG		19,910		4,285		44.64
Yungtay Engineering Co., Ltd.		75,811		143		1.49
Total			$	9,598		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Custom China Tier 2 Banks Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom China Tier 2 Banks Index
Bank of Communications Co., Ltd.		230,551	$	181		12.25	%
China CITIC Bank Corp., Ltd.		743,160		508		34.41
China Everbright Bank Co., Ltd.		57,105		27		1.86
China Merchants Bank Co., Ltd.		131,691		539		36.57
China Minsheng Banking Corp., Ltd.		165,248		161		10.89
Chongqing Rural Commercial Bank Co., Ltd.		77,532		59		4.02
Total			$	1,475		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Custom Short Metals & Mining Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short Metals & Mining Index
Alumina Ltd.		47,757	$	87		0.87	%
Anglo American PLC		25,890		603		6.06
Antofagasta PLC		7,672		99		1.00
ArcelorMittal		13,070		413		4.15
BHP Billiton Ltd.		62,864		1,361		13.68
BHP Billiton PLC		41,424		815		8.19
BlueScope Steel Ltd.		11,040		128		1.29
Boliden AB		5,332		187		1.88
First Quantum Minerals Ltd.		12,872		180		1.81
Fortescue Metals Group Ltd.		30,649		102		1.02
Freeport-McMoRan, Inc.		26,423		464		4.67
Glencore PLC		241,247		1,196		12.03
Hitachi Metals Ltd.		4,213		49		0.49
JFE Holdings, Inc.		10,216		203		2.04
Kobe Steel Ltd.		6,063		59		0.60
Lundin Mining Corp.		12,867		84		0.85
Maruichi Steel Tube Ltd.		1,104		33		0.34
Mitsubishi Materials Corp.		2,205		65		0.65
Nippon Steel & Sumitomo Metal Corp.		14,862		322		3.24
Norsk Hydro ASA		26,297		154		1.55

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short Metals & Mining Index (cont'd)
Nucor Corp.		6,056	$	370		3.72	%
Rio Tinto Ltd.		8,044		449		4.51
Rio Tinto PLC		23,678		1,198		12.05
South32 Ltd.		101,820		252		2.53
Steel Dynamics, Inc.		4,479		198		1.99
Sumitomo Metal Mining Co., Ltd.		4,798		195		1.96
Teck Resources Ltd.		10,992		283		2.84
thyssenkrupp AG		8,456		220		2.21
Turquoise Hill Resources Ltd.		19,964		61		0.61
voestalpine AG		2,217		116		1.17
Total			$	9,946		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.

JIBAR    Johannesburg Interbank Agreed Rate.

KORIBOR  Korea Interbank Offered Rate.

LIBOR    London Interbank Offered Rate.

PRIBOR    Prague Interbank Offered Rate.

TIIE    Interbank Equilibrium Interest Rate.

ARS  —  Argentine Peso

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

CLP  —  Chilean Peso

CNH  —  Chinese Yuan Renminbi Offshore

CNY  —  Chinese Yuan Renminbi

COP  —  Colombian Peso

CZK  —  Czech Koruna

DKK  —  Danish Krone

EUR  —  Euro

GBP  —  British Pound

HKD  —  Hong Kong Dollar

HUF  —  Hungarian Forint

IDR  —  Indonesian Rupiah

ILS  —  Israeli Shekel

INR  —  Indian Rupee

JPY  —  Japanese Yen

KRW  —  South Korean Won

MXN  —  Mexican Peso

MYR  —  Malaysian Ringgit

NOK  —  Norwegian Krone

NZD  —  New Zealand Dollar

PLN  —  Polish Zloty

RUB  —  Russian Ruble

SEK  —  Swedish Krona

SGD  —  Singapore Dollar

THB  —  Thai Baht

TRY  —  Turkish Lira

TWD  —  Taiwan Dollar

USD  —  United States Dollar

ZAR  —  South African Rand

Portfolio Composition

Classification	Percentage of Total Investments
Sovereign		31.6	%
Other**		31.5
Short-Term Investments		13.2
U.S. Treasury Securities		10.8
Investment Companies		7.1
Banks		5.8
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 $6,619,000 with net unrealized appreciation of approximately $31,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $4,000 and does not include open swap agreements with net unrealized appreciation of approximately $63,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Global Multi-Asset Income Portfolio

Consolidated Statement of Assets and Liabilities	March 29, 2018 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $12,425)	$	13,308
Investment in Securities of Affiliated Issuers, at Value (Cost $2,608)		2,641
Total Investments in Securities, at Value (Cost $15,033)		15,949
Foreign Currency, at Value (Cost $66)		65
Receivable for Variation Margin on Futures Contracts		212
Receivable for Investments Sold		114
Due from Adviser		113
Unrealized Appreciation on Swap Agreements		73
Interest Receivable		60
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		24
Receivable for Variation Margin on Swap Agreements		24
Dividends Receivable		8
Tax Reclaim Receivable		5
Receivable from Affiliates		2
Other Assets		74
Total Assets		16,723
Liabilities:
Payable for Investments Purchased		616
Payable for Custodian Fees		116
Payable for Professional Fees		80
Unrealized Depreciation on Swap Agreements		65
Bank Overdraft		26
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		20
Deferred Capital Gain Country Tax		5
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 Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Other Liabilities		85
Total Liabilities		1,018
Net Assets	$	15,705
Net Assets Consist Of:
Paid-in-Capital	$	15,029
Distributions in Excess of Net Investment Income		(137	)
Accumulated Net Realized Loss		(196	)
Unrealized Appreciation (Depreciation) on:
Investments (Net of $5 of Deferred Capital Gain Country Tax)		878
Investments in Affiliates		33
Futures Contracts		31
Swap Agreements		63
Foreign Currency Forward Exchange Contracts		4
Foreign Currency Translations		—	@
Net Assets	$	15,705

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Global Multi-Asset Income Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	March 29, 2018 (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	$	10.44
CLASS A:
Net Assets	$	51
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,880
Net Asset Value, Redemption Price Per Share	$	10.42
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.58
Maximum Offering Price Per Share	$	11.00
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	$	10.35
CLASS IS:
Net Assets	$	15,634
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	$	10.44

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Global Multi-Asset Income Portfolio

Consolidated Statement of Operations	Six Months Ended March 29, 2018 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	114
Dividends from Securities of Affiliated Issuers (Note G)		57
Dividends from Securities of Unaffiliated Issuers (Net of $4 of Foreign Taxes Withheld)		52
Total Investment Income		223
Expenses:
Professional Fees		95
Custodian Fees (Note F)		92
Advisory Fees (Note B)		51
Pricing Fees		46
Registration Fees		19
Shareholder Reporting Fees		12
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
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		7
Total Expenses		334
Expenses Reimbursed by Adviser (Note B)		(209	)
Waiver of Advisory Fees (Note B)		(51	)
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 Affiliates (Note G)		(2	)
Net Expenses		68
Net Investment Income		155
Realized Gain (Loss):
Investments Sold (Net of $2 of Capital Gain Country Tax)		160
Foreign Currency Forward Exchange Contracts		20
Foreign Currency Transactions		(—	@)
Futures Contracts		139
Swap Agreements		(97	)
Net Realized Gain		222
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $5)		(21	)
Investments in Affiliates		(19	)
Foreign Currency Forward Exchange Contracts		(24	)
Foreign Currency Translations		(1	)
Futures Contracts		(31	)
Swap Agreements		52
Net Change in Unrealized Appreciation (Depreciation)		(44	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		178
Net Increase in Net Assets Resulting from Operations	$	333

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  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 29, 2018

Global Multi-Asset Income Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	155		$	294
Net Realized Gain (Loss)		222			(186	)
Net Change in Unrealized Appreciation (Depreciation)		(44	)		677
Net Increase in Net Assets Resulting from Operations		333			785
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(—	@)		(—	@)
Class A:
Net Investment Income		(—	@)		(1	)
Class C:
Net Investment Income		—			(—	@)
Class IS:
Net Investment Income		(52	)		(246	)
Total Distributions		(52	)		(247	)
Capital Share Transactions:(1)
Class A:
Subscribed		—			—
Distributions Reinvested		—	@		—	@
Redeemed		(27	)		—
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(27	)		—	@
Total Increase in Net Assets		254			538
Net Assets:
Beginning of Period		15,451			14,913
End of Period (Including Distributions in Excess of Net Investment Income of $(137) and $(240))	$	15,705		$	15,451
(1)   Capital Share Transactions:
Class A:
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(3	)		—
Net Increase (Decrease) in Class A Shares Outstanding		(3	)		—	@@

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Consolidated Financial Highlights

Global Multi-Asset Income Portfolio

	��	Class I
		Six Months Ended March 29, 2018R			Year Ended September 30,						Period from April 30, 2015(2) to
Selected Per Share Data and Ratios		(unaudited)			2017			2016(1)(3)			September 30, 2015(3)
Net Asset Value, Beginning of Period		$	10.25		$	9.90		$	9.33		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(4)			0.10			0.19			0.15			0.07
Net Realized and Unrealized Gain (Loss)			0.12			0.32			0.62			(0.71	)
Total from Investment Operations			0.22			0.51			0.77			(0.64	)
Distributions from and/or in Excess of:
Net Investment Income			(0.03	)		(0.16	)		(0.20	)		(0.03	)
Net Asset Value, End of Period		$	10.44		$	10.25		$	9.90		$	9.33
Total Return(5)			2.08	%(7)		5.24	%		8.39	%		(6.42	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)		$	10		$	10		$	10		$	9
Ratio of Expenses to Average Net Assets(9)			0.94	%(6)(8)		0.93	%(6)		0.92	%(6)		0.93	%(6)(8)
Ratio of Net Investment Income to Average Net Assets(9)			1.90	%(6)(8)		1.92	%(6)		1.62	%(6)		1.72	%(6)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets			0.02	%(8)		0.02	%		0.03	%		0.01	%(8)
Portfolio Turnover Rate			62	%(7)		218	%		236	%		139	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets			24.77	%(8)		28.13	%		6.73	%		20.20	%(8)
Net Investment Loss to Average Net Assets			(21.93	)%(8)		(25.28	)%		(4.19	)%		(17.55	)%(8)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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.
33

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Consolidated Financial Highlights

Global Multi-Asset Income Portfolio

	Class A
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from April 30, 2015(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)(3)			September 30, 2015(3)
Net Asset Value, Beginning of Period	$	10.23		$	9.88		$	9.32		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(4)		0.08			0.16			0.12			0.04
Net Realized and Unrealized Gain (Loss)		0.12			0.32			0.61			(0.69	)
Total from Investment Operations		0.20			0.48			0.73			(0.65	)
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)		(0.13	)		(0.17	)		(0.03	)
Net Asset Value, End of Period	$	10.42		$	10.23		$	9.88		$	9.32
Total Return(5)		2.00	%(7)		4.89	%		8.10	%		(6.64	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	51		$	77		$	73		$	44
Ratio of Expenses to Average Net Assets(9)		1.28	%(6)(8)		1.27	%(6)		1.26	%(6)		1.27	%(6)(8)
Ratio of Net Investment Income to Average Net Assets(9)		1.58	%(6)(8)		1.59	%(6)		1.27	%(6)		1.02	%(6)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(8)		0.03	%		0.04	%		0.01	%(8)
Portfolio Turnover Rate		62	%(7)		218	%		236	%		139	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		7.38	%(8)		8.12	%		4.74	%		12.75	%(8)
Net Investment Loss to Average Net Assets		(4.52	)%(8)		(5.26	)%		(2.21	)%		(10.46	)%(8)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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.
34

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Consolidated Financial Highlights

Global Multi-Asset Income Portfolio

	Class C
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from May 8, 2015(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)(3)			September 30, 2015(3)
Net Asset Value, Beginning of Period	$	10.19		$	9.84		$	9.30		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(4)		0.04			0.08			0.04			0.02
Net Realized and Unrealized Gain (Loss)		0.12			0.33			0.61			(0.71	)
Total from Investment Operations		0.16			0.41			0.65			(0.69	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.06	)		(0.11	)		(0.01	)
Net Asset Value, End of Period	$	10.35		$	10.19		$	9.84		$	9.30
Total Return(5)		1.57	%(7)		4.21	%		7.11	%		(6.86	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10		$	10		$	9
Ratio of Expenses to Average Net Assets(9)		2.04	%(6)(8)		2.03	%(6)		2.02	%(6)		2.03	%(6)(8)
Ratio of Net Investment Income to Average Net Assets(9)		0.79	%(6)(8)		0.80	%(6)		0.41	%(6)		0.56	%(6)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(8)		0.02	%		0.03	%		0.01	%(8)
Portfolio Turnover Rate		62	%(7)		218	%		236	%		139	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		24.21	%(8)		26.46	%		14.16	%		21.28	%(8)
Net Investment Loss to Average Net Assets		(21.38	)%(8)		(23.63	)%		(11.73	)%		(18.68	)%(8)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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)  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.
35

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Consolidated Financial Highlights

Global Multi-Asset Income Portfolio

	Class IS
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from April 30, 2015(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)(3)			September 30, 2015(3)
Net Asset Value, Beginning of Period	$	10.26		$	9.90		$	9.33		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(4)		0.10			0.20			0.16			0.07
Net Realized and Unrealized Gain (Loss)		0.12			0.32			0.61			(0.71	)
Total from Investment Operations		0.22			0.52			0.77			(0.64	)
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.16	)		(0.20	)		(0.03	)
Net Asset Value, End of Period	$	10.44		$	10.26		$	9.90		$	9.33
Total Return(5)		2.10	%(7)		5.40	%		8.44	%		(6.41	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15,634		$	15,354		$	14,820		$	13,969
Ratio of Expenses to Average Net Assets(9)		0.88	%(6)(8)		0.87	%(6)		0.86	%(6)		0.87	%(6)(8)
Ratio of Net Investment Income to Average Net Assets(9)		1.97	%(6)(8)		2.00	%(6)		1.68	%(6)		1.76	%(6)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(8)		0.03	%		0.04	%		0.01	%(8)
Portfolio Turnover Rate		62	%(7)		218	%		236	%		139	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		4.24	%(8)		4.70	%		3.99	%		5.97	%(8)
Net Investment Loss to Average Net Assets		(1.39	)%(8)		(1.83	)%		(1.45	)%		(3.34	)%(8)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 reimbursement of 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.
36

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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, Global 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 29, 2018, the Subsidiary represented approximately $1,396,000 or approximately 8.89% 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. 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. 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) 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

37

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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. 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; (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) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (7) 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 (8) 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

38

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018:

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	$	—		$	556	$	—	$	556
Commercial Mortgage-Backed Securities		—			214		—		214
Corporate Bonds		—			1,396		—		1,396
Sovereign		—			5,046		—		5,046
U.S. Treasury Securities		—			1,722		—		1,722
Total Fixed Income Securities		—			8,934		—		8,934
Common Stocks
Aerospace & Defense		—			27		—		27
Air Freight & Logistics		—			5		—		5
Airlines		—			1		—		1
Auto Components		5			11		—		16
Automobiles		—			91		—		91
Banks		45			330		—		375
Beverages		—			38		—		38
Biotechnology		—			10		—		10
Building Products		—			34		—		34
Capital Markets		4			69		—		73
Chemicals		2			32		—		34
Commercial Services & Supplies		—			11		—		11
Communications Equipment		—			3		—		3
Construction & Engineering		—	@		135		—		135
Construction Materials		—			19		—		19
Consumer Finance		458			—		—		458
Containers & Packaging		—			1		—		1
Diversified Financial Services		—			2		—		2
Diversified Telecommunication Services		—			37		—		37
Electric Utilities		74			42		—		116
Electrical Equipment		—			23		—		23
Equity Real Estate Investment Trusts (REITs)		469			233		—		702
Food & Staples Retailing		4			16		—		20
Food Products		—			35		—		35
Gas Utilities		12			51		—		63
Health Care Equipment & Supplies		—			14		—		14
Health Care Providers & Services		1			8		—		9
Hotels, Restaurants & Leisure		—			64		—		64
Household Durables		—			4		—		4
Household Products		—			14		—		14
Independent Power & Renewable Electricity Producers		—			1		—		1

39

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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)
Industrial Conglomerates	$	—		$	22		$	—		$	22
Information Technology Services		—			86			—			86
Insurance		11			63			—			74
Internet Software & Services		—			—	@		—			—	@
Life Sciences Tools & Services		—			2			—			2
Machinery		—			5			—			5
Marine		—			3			—			3
Media		2			24			—			26
Metals & Mining		9			39			—			48
Multi-Line Retail		—			3			—			3
Multi-Utilities		63			60			—			123
Oil, Gas & Consumable Fuels		227			99			—			326
Paper & Forest Products		—			5			—			5
Personal Products		—			30			—			30
Pharmaceuticals		—			91			—			91
Professional Services		—			89			—			89
Real Estate Management & Development		5			243			—			248
Road & Rail		7			23			—			30
Semiconductors & Semiconductor Equipment		—			13			—	@		13
Software		1			11			—			12
Specialty Retail		—			6			—			6
Textiles, Apparel & Luxury Goods		—			37			—			37
Tobacco		—			20			—			20
Trading Companies & Distributors		—			18			—			18
Transportation Infrastructure		2			180			—			182
Water Utilities		26			19			—			45
Wireless Telecommunication Services		4			9			—			13
Total Common Stocks		1,431			2,561			—	@		3,992
Investment Companies		1,294			3			—			1,297
Right		—	@		—			—			—	@
Short-Term Investments
Investment Company		1,347			—			—			1,347
U.S. Treasury Security		—			379			—			379
Total Short-Term Investments		1,347			379			—			1,726
Foreign Currency Forward Exchange Contracts		—			24			—			24
Futures Contracts		71			—			—			71
Credit Default Swap Agreements		—			8			—			8
Interest Rate Swap Agreements		—			76			—			76
Total Return Swap Agreements		—			73			—			73
Total Assets		4,143			12,058			—			16,201

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Liabilities:
Foreign Currency Forward Exchange Contracts	$	—		$	(20	)	$	—		$	(20	)
Futures Contracts		(40	)		—			—			(40	)
Interest Rate Swap Agreements		—			(32	)		—			(32	)
Total Return Swap Agreements		—			(62	)		—			(62	)
Total Liabilities		(40	)		(114	)		—			(154	)
Total	$	4,103		$	11,944		$	—	@	$	16,047

@  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 29, 2018, securities with a total value of approximately $2,550,000 transferred from Level 1 to Level 2. Securities that were valued using unadjusted quoted prices at September 30, 2017, were valued using other significant observable inputs at March 29, 2018. At March 29, 2018, the fair value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

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

	Common 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 29, 2018	$	(—	@)

@  Value is less than $500.

40

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

41

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 ("SEC") 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

42

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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.

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

43

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018:

	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	$	24
Futures Contract	Variation Margin on Futures Contract	Commodity Risk		18	(a)
Futures Contracts	Variation Margin on Futures Contracts	Equity Risk		8	(a)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		45	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Equity Risk		73
Swap Agreements	Variation Margin on Swap Agreements	Credit Risk		8	(a)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		76	(a)
Total			$	252
	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	$	(20	)
Futures Contracts	Variation Margin on Futures Contracts	Equity Risk		(33	)(a)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		(7	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Equity Risk		(62	)
Swap Agreement	Unrealized Depreciation on Swap Agreement	Interest Rate Risk		(3	)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		(29	)(a)
Total			$	(154	)

(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

44

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

contract for the six months ended March 29, 2018 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk Foreign Currency Forward	Exchange Contracts	$	20
Commodity Risk	Futures Contracts		(20	)
Equity Risk	Futures Contracts		239
Interest Rate Risk	Futures Contracts		(80	)
Credit Risk	Swap Agreements		5
Equity Risk	Swap Agreements		(3	)
Interest Rate Risk	Swap Agreements		(99	)
Total		$	62
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk Foreign Currency Forward	Exchange Contracts	$	(24	)
Commodity Risk	Futures Contracts		17
Equity Risk	Futures Contracts		(77	)
Interest Rate Risk	Futures Contracts		29
Equity Risk	Swap Agreements		3
Credit Risk	Swap Agreements		(1	)
Interest Rate Risk	Swap Agreements		50
Total		$	(3	)

At March 29, 2018, 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(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	24	$	(20	)
Swap Agreements		73		(65	)
Total	$	97	$	(85	)

(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 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 29, 2018:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the 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	$	—	@	$	—		$	—	$	—	@
Bank of America NA		2			(2	)		—		0
Bank of Montreal		—	@		—			—		—	@
Barclays Bank PLC		1			(1	)		—		0
Citibank NA		6			(6	)		—		0
Commonwealth Bank of Australia		—	@		(—	@)		—		0
Credit Suisse International		—	@		—			—		—	@
Goldman Sachs International		—	@		(—	@)		—		0
JPMorgan Chase Bank NA		80			(67	)		—		13
Royal Bank of Canada		1			(1	)		—		0
State Street Bank and Trust Co.		5			(—	@)		—		5
UBS AG		2			(2	)		—		0
Total	$	97		$	(79	)	$	—	$	18

45

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Bank of America NA	$	2		$	(2	)	$	—	$	0
Barclays Bank PLC		3			(1	)		—		2
Citibank NA		7			(6	)		—		1
Commonwealth Bank of Australia		—	@		(—	@)		—		0
Goldman Sachs International		1			(—	@)		—		1
JPMorgan Chase Bank NA		67			(67	)		—		0
Royal Bank of Canada		1			(1	)		—		0
State Street Bank and Trust Co.		—	@		(—	@)		—		0
UBS AG		4			(2	)		—		2
Total	$	85		$	(79	)	$	—	$	6

@ Amount is less than $500.

For the six months ended March 29, 2018, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	9,889,000
Futures Contracts:
Average monthly original value	$	8,366,000
Swap Agreements:
Average monthly notional amount	$	6,651,000

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: Dividends 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

46

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018, approximately $51,000 of advisory fees were waived and approximately $213,000 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 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. Effective January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

F. Custodian Fees: State Street (the "Custodian") also 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 29, 2018, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $9,035,000 and $8,468,000, respectively. For the six months ended March 29, 2018, purchases and sales of long-term U.S. Government securities were approximately $296,000 and $50,000, 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 29, 2018, advisory fees paid were reduced by approximately $2,000 relating to the Fund's investment in the Liquidity Funds.

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

47

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018, 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 29, 2018.

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 29, 2018, advisory fees paid were reduced by less than $500 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 29, 2018.

A summary of the Fund's transactions in share of the affiliated investments companies during the six months ended March 29, 2018 are as follows:

Affiliated Investment Company	Value September 30, 2017 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	1,909	$	4,030	$	4,592	$	9
Emerging Markets Fixed Income Opportunities Portfolio		762		—		—		28
High Yield Portfolio		551		—		—		20
	$	3,222	$	4,030	$	4,592	$	57

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)			Value March 29, 2018 (000)
Liquidity Funds	$	—	$	—		$	1,347
Emerging Markets Fixed Income Opportunities Portfolio		—		(8	)		754
High Yield Portfolio		—		(11	)		540
	$	—	$	(19	)	$	2,641

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 provi-

sions of the Rule. For the six months ended March 29, 2018, 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 consolidated 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, 2017, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Consolidated Statements of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax

48

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

character of distributions paid during fiscal years 2017 and 2016 was as follows:

2017 Distributions Paid From:		2016 Distributions Paid From:
Ordinary Income (000)		Ordinary Income (000)
$	247	$	308

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, nondeductible expenses, and tax adjustments on passive foreign investment companies sold by the Fund, resulted in the following reclassifications among the components of net assets at September 30, 2017:

Distributions in Excess of Net Investment Income (000)			Accumulated Net Realized Loss (000)		Paid-in- Capital (000)
$	(258	)	$	264	$	(6	)

At September 30, 2017, the Fund had no distributable earnings on a tax basis.

At September 30, 2017, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $300,000 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. During the year ended September 30, 2017, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $86,000.

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are

deemed to arise on the first day of the Fund's next taxable year. These also include non-specified ordinary losses incurred after December 31 but within the same taxable year. For the year ended September 30, 2017, the Fund deferred to October 1, 2017 for U.S. federal income tax purposes the following losses:

Qualified Late Year Ordinary Losses (000)		Post-October Capital Losses (000)
$	68	$	—

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 1 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 29, 2018, the Fund did not have any borrowings under the Facility.

J. Other: At March 29, 2018, the Fund did not have record owners of 10% or greater.

K. Accounting Pronouncement: In March 2017, FASB issued an Accounting Standard Update, ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the "ASU") which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the consolidated financial statements.

49

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

50

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 non-affiliated 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:

  DST Asset Manager Solutions, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

51

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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:

DST Asset Manager Solutions, 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 non-affiliated 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.

52

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

Michael J. Key
Vice President

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

DST Asset Manager Solutions, 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 to the SEC's Public Reference Section, Washington, D.C. 20549-1520.

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.

53

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

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

© 2018 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFGMAPSAN
2100480 EXP 05.31.19

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Strategist Portfolio

Semi-Annual Report

March 29, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Table of Contents

Shareholders' Letter	2
Consolidated Expense Example	3
Consolidated Portfolio of Investments	4
Consolidated Statement of Assets and Liabilities	37
Consolidated Statement of Operations	39
Consolidated Statements of Changes in Net Assets	40
Consolidated Financial Highlights	42
Notes to Consolidated Financial Statements	47
Privacy Notice	60
Trustee and Officer Information	63

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 fund 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 29, 2018

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 2018

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018 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 10/1/17		Actual Ending Account Value 3/29/18		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	$	1,038.80	$	1,021.29	$	3.71	$	3.68		0.73	%
Global Strategist Portfolio Class A		1,000.00		1,037.50		1,019.70		5.33		5.29		1.05
Global Strategist Portfolio Class L		1,000.00		1,034.40		1,017.35		7.71		7.64		1.52
Global Strategist Portfolio Class C		1,000.00		1,033.20		1,015.81		9.28		9.20		1.83
Global Strategist Portfolio Class IS		1,000.00		1,038.50		1,021.44		3.56		3.53		0.70

*  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 29, 2018R (unaudited)

Consolidated Portfolio of Investments

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (54.1%)
Agency Adjustable Rate Mortgage (0.1%)
United States (0.1%)
Federal Home Loan Mortgage Corporation, Conventional Pool:
12 Month USD LIBOR + 1.62%, 2.50%, 7/1/45	$	211	$	213
Agency Fixed Rate Mortgages (2.6%)
United States (2.6%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
3.50%, 1/1/44 - 6/1/45		1,293		1,300
6.50%, 5/1/32 - 7/1/32		46		52
7.50%, 5/1/35		5		6
Federal National Mortgage Association,
April TBA:
3.00%, 4/1/33 (a)		250		250
3.50%, 4/1/48 (a)		1,654		1,658
4.00%, 4/1/48 (a)		1,134		1,164
4.50%, 4/1/48 (a)		500		524
Conventional Pools:
3.00%, 3/1/30 - 5/1/30		304		304
3.50%, 3/1/47		204		204
4.00%, 4/1/45 - 9/1/45		1,238		1,275
4.50%, 3/1/41 - 11/1/44		299		314
5.00%, 1/1/41 - 3/1/41		756		818
6.00%, 1/1/38		6		7
6.50%, 12/1/29		15		17
7.00%, 2/1/31		75		77
7.50%, 8/1/37		10		12
Government National Mortgage Association,
Various Pools:
4.00%, 8/20/41 - 11/20/42		421		439
5.50%, 8/15/39		43		46
				8,467
Asset-Backed Securities (0.1%)
United States (0.1%)
CVS Pass-Through Trust,
6.04%, 12/10/28		304		328
Collateralized Mortgage Obligations — Agency Collateral Series (0.1%)
United States (0.1%)
Federal Home Loan Mortgage Corporation,
2.79%, 1/25/22		75		75
2.97%, 10/25/21		90		90
IO REMIC
6.05% - 1 Month USD LIBOR, 4.27%, 4/15/39 (b)		64		5
				170
Commercial Mortgage-Backed Securities (0.8%)
United States (0.8%)
CGDB Commercial Mortgage Trust,
1 Month USD LIBOR + 2.50%, 4.28%, 5/15/30 (b)(c)		100		101

	Face Amount (000)		Value (000)
COMM Mortgage Trust,
2.87%, 2/10/48 (c)	$	450	$	375
3.28%, 1/10/46		305		304
4.73%, 7/15/47 (b)(c)		152		134
JP Morgan Chase Commercial Mortgage Securities Trust,
4.39%, 7/15/46 (c)		100		103
JPMBB Commercial Mortgage Securities Trust,
3.96%, 9/15/47 (b)(c)		105		90
4.56%, 9/15/47 (b)(c)		263		220
4.66%, 8/15/47 (b)(c)		214		184
UBS-Barclays Commercial Mortgage Trust,
3.53%, 5/10/63		255		259
WFCG Commercial Mortgage Trust,
1 Month USD LIBOR + 3.14%, 4.92%, 11/15/29 (b)(c)		321		322
WFRBS Commercial Mortgage Trust,
3.99%, 10/15/57 (b)(c)		362		291
5.03%, 9/15/46 (b)(c)		375		355
				2,738
Corporate Bonds (11.7%)
Australia (0.4%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	400		528
Commonwealth Bank of Australia,
1.75%, 11/7/19 (c)	$	350		344
Macquarie Bank Ltd.,
6.63%, 4/7/21 (c)		270		292
Macquarie Group Ltd.,
4.15%, 3/27/24 (c)		125		126
Transurban Finance Co., Pty Ltd.,
4.13%, 2/2/26 (c)		170		171
				1,461
Belgium (0.1%)
Anheuser-Busch InBev Finance, Inc.,
3.65%, 2/1/26		250		249
Canada (0.7%)
Goldcorp, Inc.,
3.70%, 3/15/23		198		197
Province of Alberta Canada,
1.75%, 8/26/20		700		684
Province of British Columbia Canada,
2.00%, 10/23/22		700		675
Royal Bank of Canada,
2.75%, 2/1/22		625		617
				2,173
Chile (0.1%)
Banco del Estado de Chile,
2.67%, 1/8/21 (c)		300		294

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
China (0.1%)
Baidu, Inc.,
2.88%, 7/6/22	$	200	$	194
3.25%, 8/6/18		225		226
				420
Colombia (0.2%)
Ecopetrol SA,
5.88%, 9/18/23		630		676
France (0.9%)
Air Liquide Finance SA,
1.75%, 9/27/21 (c)		200		191
Banque Federative du Credit Mutuel SA,
2.00%, 9/19/19	EUR	500		635
BNP Paribas SA,
3.80%, 1/10/24 (c)	$	525		524
5.00%, 1/15/21		95		100
BPCE SA,
5.15%, 7/21/24 (c)		450		470
Danone SA,
1.69%, 10/30/19 (c)		475		466
Electricite de France SA,
5.00%, 1/22/26 (d)	EUR	300		396
TOTAL SA,
2.71%, 5/5/23 (d)		100		129
3.88%, 5/18/22 (d)		100		135
				3,046
Germany (0.7%)
BMW US Capital LLC,
2.15%, 4/6/20 (c)	$	525		517
Daimler Finance North America LLC,
1.50%, 7/5/19 (c)		300		295
Deutsche Bank AG,
2.70%, 7/13/20		625		612
Deutsche Telekom International Finance BV,
3.60%, 1/19/27 (c)		150		148
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen,
6.00%, 5/26/41	EUR	400		573
Siemens Financieringsmaatschappij N.V.,
1.30%, 9/13/19 (c)	$	250		245
				2,390
Hong Kong (0.1%)
CK Hutchison International 16 Ltd.,
1.88%, 10/3/21 (c)		200		191
India (0.1%)
ONGC Videsh Vankorneft Pte Ltd.,
3.75%, 7/27/26		200		191
Israel (0.1%)
Teva Pharmaceutical Finance Netherlands III BV,
2.20%, 7/21/21		315		284

	Face Amount (000)		Value (000)
Italy (0.1%)
FCA Bank SpA,
1.38%, 4/17/20	EUR	250	$	316
Telecom Italia Finance SA,
7.75%, 1/24/33		80		147
				463
Korea, Republic of (0.1%)
SK Telecom Co., Ltd.,
2.13%, 5/1/18 (c)	$	200		200
Malaysia (0.2%)
Petronas Capital Ltd.,
3.50%, 3/18/25 (c)		675		668
Netherlands (0.4%)
ABN AMRO Bank N.V.,
2.88%, 6/30/25	EUR	250		323
Cooperatieve Rabobank UA,
3.95%, 11/9/22	$	250		253
Series G
3.75%, 11/9/20	EUR	300		402
ING Bank N.V.,
5.80%, 9/25/23 (c)	$	240		260
				1,238
Spain (0.3%)
Banco Santander SA,
5.18%, 11/19/25		600		627
Telefonica Emisiones SAU,
4.71%, 1/20/20	EUR	300		401
				1,028
Sweden (0.1%)
Skandinaviska Enskilda Banken AB,
2.30%, 3/11/20	$	525		518
Switzerland (0.5%)
Credit Suisse AG,
0.63%, 11/20/18	EUR	550		681
Credit Suisse Group AG,
3.57%, 1/9/23 (c)	$	325		323
UBS Group Funding Switzerland AG,
3.49%, 5/23/23 (c)		500		495
				1,499
United Arab Emirates (0.1%)
ADCB Finance Cayman Ltd.,
4.00%, 3/29/23 (c)		200		200
United Kingdom (0.8%)
BP Capital Markets PLC,
2.50%, 11/6/22		275		266
GlaxoSmithKline Capital, Inc.,
6.38%, 5/15/38		100		132
Lloyds Bank PLC,
6.50%, 3/24/20	EUR	450		622
Nationwide Building Society,
3.77%, 3/8/24 (c)	$	300		299
3.90%, 7/21/25 (c)		200		202

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United Kingdom (cont'd)
NGG Finance PLC,
5.63%, 6/18/73	GBP	200	$	312
Royal Bank of Scotland Group PLC,
3.88%, 9/12/23	$	550		544
Standard Chartered PLC,
2.10%, 8/19/19 (c)		300		296
				2,673
United States (5.6%)
Abbott Laboratories,
3.40%, 11/30/23		325		322
Air Lease Corp.,
2.13%, 1/15/20		400		393
Amazon.com, Inc.,
2.80%, 8/22/24 (c)		375		364
American Express Credit Corp.,
MTN
2.20%, 3/3/20		375		370
3.30%, 5/3/27		350		340
Apple, Inc.,
2.50%, 2/9/22		500		493
AT&T, Inc.,
4.25%, 3/1/27		450		456
4.50%, 3/9/48		91		85
5.15%, 2/14/50		100		101
Bank of America Corp.,
4.24%, 4/24/38		325		333
MTN
4.00%, 1/22/25		375		375
Becton Dickinson and Co.,
2.89%, 6/6/22		375		364
Burlington Northern Santa Fe LLC,
4.55%, 9/1/44		195		211
Capital One Financial Corp.,
2.50%, 5/12/20		250		246
3.30%, 10/30/24		325		314
Capital One NA,
1.85%, 9/13/19		400		393
Charter Communications Operating LLC/ Charter Communications Operating Capital,
4.91%, 7/23/25		100		102
6.48%, 10/23/45		150		165
Citigroup, Inc.,
5.50%, 9/13/25		250		271
8.13%, 7/15/39		175		266
Coca-Cola Co. (The),
3.20%, 11/1/23		250		252
Comcast Corp.,
4.60%, 8/15/45		130		135
ConocoPhillips Co.,
4.95%, 3/15/26		200		219
CVS Health Corp.,
3.70%, 3/9/23		950		956

	Face Amount (000)		Value (000)
Discover Bank,
3.10%, 6/4/20	$	525	$	523
Discovery Communications LLC,
2.95%, 3/20/23		250		241
Duke Energy Corp.,
1.80%, 9/1/21		275		262
Five Corners Funding Trust,
4.42%, 11/15/23 (c)		350		366
Ford Motor Credit Co., LLC,
2.68%, 1/9/20		300		298
GE Capital International Funding Co., Unlimited Co.,
4.42%, 11/15/35		250		245
General Motors Financial Co., Inc.,
2.35%, 10/4/19		200		198
Goldman Sachs Group, Inc. (The),
2.30%, 12/13/19		340		337
MTN
4.80%, 7/8/44		275		297
Home Depot, Inc. (The),
5.88%, 12/16/36		100		129
HSBC USA, Inc.,
3.50%, 6/23/24		100		100
Johnson Controls International PLC,
3.90%, 2/14/26		175		176
JPMorgan Chase & Co.,
2.25%, 1/23/20		900		889
3.78%, 2/1/28		325		323
Liberty Mutual Group, Inc.,
4.85%, 8/1/44 (c)		100		104
Lockheed Martin Corp.,
3.55%, 1/15/26		250		248
McDonald's Corp.,
MTN
3.38%, 5/26/25		275		272
Medtronic, Inc.,
3.63%, 3/15/24		250		253
Merck & Co., Inc.,
2.80%, 5/18/23		250		247
Metropolitan Life Global Funding I,
2.40%, 1/8/21 (c)		525		516
Microsoft Corp.,
1.55%, 8/8/21		525		504
NBC Universal Media LLC,
4.38%, 4/1/21		175		182
NextEra Energy Capital Holdings, Inc.,
3.55%, 5/1/27		350		341
Oracle Corp.,
3.40%, 7/8/24		175		175
PepsiCo, Inc.,
3.60%, 3/1/24		250		256
PNC Bank NA,
3.10%, 10/25/27		425		406
QUALCOMM, Inc.,
2.60%, 1/30/23		275		264

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
Rockwell Collins, Inc.,
1.95%, 7/15/19	$	525	$	519
Thermo Fisher Scientific, Inc.,
2.95%, 9/19/26		275		257
UnitedHealth Group, Inc.,
2.88%, 3/15/23		250		246
4.25%, 3/15/43		150		154
Verizon Communications, Inc.,
4.67%, 3/15/55		231		221
Visa, Inc.,
3.15%, 12/14/25		200		196
Walmart, Inc.,
2.55%, 4/11/23		200		196
Wells Fargo & Co.,
3.00%, 10/23/26		850		797
				18,264
				38,126
Mortgages — Other (0.4%)
United States (0.4%)
Banc of America Alternative Loan Trust,
5.86%, 10/25/36		35		21
6.00%, 4/25/36		7		8
ChaseFlex Trust,
6.00%, 2/25/37		30		24
Federal Home Loan Mortgage Corporation,
3.00%, 9/25/45 - 7/25/46		517		496
3.50%, 5/25/45 - 7/25/46		653		644
4.00%, 5/25/45		61		61
GSR Mortgage Loan Trust,
5.75%, 1/25/37		20		18
Lehman Mortgage Trust,
5.50%, 11/25/35		7		7
6.50%, 9/25/37		27		20
				1,299
Sovereign (28.3%)
Australia (0.9%)
Australia Government Bond,
2.75%, 11/21/27	AUD	2,590		2,016
3.00%, 3/21/47		63		47
3.25%, 4/21/25		1,140		918
				2,981
Austria (0.5%)
Republic of Austria Government Bond,
1.20%, 10/20/25 (c)	EUR	1,360		1,776
Belgium (1.3%)
Kingdom of Belgium Government Bond,
0.80%, 6/22/25 (c)		3,440		4,363
Bermuda (0.1%)
Bermuda Government International Bond,
4.85%, 2/6/24 (c)	$	390		412

	Face Amount (000)		Value (000)
Brazil (3.9%)
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/21	BRL	39,995	$	12,734
Canada (1.3%)
Canadian Government Bond,
0.50%, 3/1/22	CAD	1,802		1,323
1.50%, 6/1/26		4,010		2,980
2.75%, 12/1/48		52		45
				4,348
China (0.3%)
Sinopec Group Overseas Development 2013 Ltd.,
2.63%, 10/17/20	EUR	300		391
Sinopec Group Overseas Development 2015 Ltd.,
2.50%, 4/28/20 (c)	$	575		566
				957
Denmark (0.1%)
Denmark Government Bond,
0.50%, 11/15/27	DKK	1,820		300
France (1.1%)
French Republic Government Bond OAT,
1.00%, 5/25/27	EUR	480		612
1.75%, 5/25/23		1,590		2,133
2.00%, 5/25/48 (c)		63		85
3.25%, 5/25/45		440		757
				3,587
Germany (0.8%)
Bundesrepublik Deutschland Bundesanleihe,
0.00%, 8/15/26		200		240
1.25%, 8/15/48		96		120
4.25%, 7/4/39		820		1,645
4.75%, 7/4/34		240		472
				2,477
Greece (0.6%)
Hellenic Republic Government Bond,
3.75%, 1/30/28		1,630		1,922
Hungary (0.1%)
Hungary Government International Bond,
5.75%, 11/22/23	$	360		398
Indonesia (0.1%)
Indonesia Government International Bond,
5.88%, 1/15/24		360		397
Ireland (0.1%)
Ireland Government Bond,
5.40%, 3/13/25	EUR	210		346
Italy (2.0%)
Italy Buoni Poliennali Del Tesoro,
1.45%, 9/15/22		1,780		2,282
2.20%, 6/1/27		1,020		1,313
2.35%, 9/15/24 (c)		1,468		2,109
5.00%, 9/1/40		380		649
				6,353

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Japan (7.2%)
Japan Finance Organization for Municipalities,
1.90%, 6/22/18	JPY	60,000	$	566
Japan Government Five Year Bond,
0.20%, 3/20/19		142,000		1,339
Japan Government Ten Year Bond,
0.10%, 6/20/26		378,000		3,591
0.50%, 9/20/24		428,000		4,174
1.10%, 3/20/21 - 6/20/21		616,900		6,021
Japan Government Thirty Year Bond,
0.30%, 6/20/46		126,600		1,066
0.80%, 9/20/47		17,850		171
1.70%, 6/20/33		288,000		3,281
2.00%, 9/20/40		256,000		3,116
				23,325
Malaysia (0.1%)
Malaysia Government Bond,
3.96%, 9/15/25	MYR	1,600		414
Mexico (0.8%)
Mexican Bonos,
Series M
5.75%, 3/5/26	MXN	8,000		400
6.50%, 6/10/21		22,000		1,186
7.50%, 6/3/27		6,000		334
Petroleos Mexicanos,
4.88%, 1/18/24	$	530		539
6.38%, 1/23/45		140		137
				2,596
Netherlands (0.5%)
Netherlands Government Bond,
0.25%, 7/15/25 (c)	EUR	1,260		1,547
New Zealand (0.2%)
New Zealand Government Bond,
3.00%, 4/20/29	NZD	1,060		771
Norway (0.1%)
Norway Government Bond,
2.00%, 5/24/23 (c)	NOK	2,000		262
Poland (0.1%)
Republic of Poland Government Bond,
4.00%, 10/25/23	PLN	860		271
Portugal (1.9%)
Portugal Obrigacoes do Tesouro OT,
2.13%, 10/17/28 (c)	EUR	290		375
2.88%, 7/21/26 (c)		1,708		2,362
4.13%, 4/14/27 (c)		1,904		2,876
5.65%, 2/15/24 (c)		330		522
				6,135
Russia (0.4%)
Russian Federal Bond — OFZ,
7.00%, 8/16/23	RUB	79,090		1,414

	Face Amount (000)		Value (000)
Spain (1.7%)
Spain Government Bond,
0.40%, 4/30/22	EUR	2,560	$	3,208
1.40%, 4/30/28 (c)		530		667
4.40%, 10/31/23 (c)		560		845
Spain Government Inflation Linked Bond,
1.00%, 11/30/30 (c)		466		646
				5,366
Sweden (0.1%)
Sweden Government Bond,
1.00%, 11/12/26	SEK	1,270		159
United Kingdom (2.0%)
United Kingdom Gilt,
1.25%, 7/22/27	GBP	1,180		1,636
1.50%, 1/22/21 - 7/22/47		585		828
3.50%, 1/22/45		1,150		2,223
4.25%, 6/7/32 - 9/7/39		860		1,683
				6,370
				91,981
U.S. Treasury Securities (10.0%)
United States (10.0%)
U.S. Treasury Bonds,
2.50%, 2/15/45	$	5,080		4,640
2.75%, 11/15/47		615		588
3.50%, 2/15/39		2,590		2,847
U.S. Treasury Notes,
0.38%, 1/15/27		872		850
0.50%, 1/15/28		16,266		15,981
1.38%, 1/31/21		1,900		1,847
1.75%, 5/15/23		3,500		3,362
2.25%, 2/15/27		2,640		2,538
				32,653
Total Fixed Income Securities (Cost $169,816)				175,975
	Shares
Common Stocks (39.2%)
Australia (1.3%)
ACN 004 410 833 Ltd. (e)(f)		14,100		—
AGL Energy Ltd.		2,914		49
Alumina Ltd.		10,352		19
Amcor Ltd.		4,942		54
AMP Ltd.		12,464		48
APA Group		4,697		29
Aristocrat Leisure Ltd.		2,271		42
ASX Ltd.		815		35
Aurizon Holdings Ltd.		8,714		29
AusNet Services		7,529		10
Australia & New Zealand Banking Group Ltd.		13,249		275
Bank of Queensland Ltd.		1,678		14
Bendigo & Adelaide Bank Ltd.		2,141		16
BHP Billiton Ltd.		13,259		293
Boral Ltd.		4,953		28

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Australia (cont'd)
Brambles Ltd.		6,774	$	52
Caltex Australia Ltd.		1,135		28
Challenger Ltd.		2,417		22
CIMIC Group Ltd.		413		14
Coca-Cola Amatil Ltd.		2,427		16
Cochlear Ltd.		241		34
Commonwealth Bank of Australia		7,461		417
Computershare Ltd.		1,983		27
Crown Resorts Ltd.		1,521		15
CSL Ltd.		1,915		230
Dexus REIT		4,112		30
Domino's Pizza Enterprises Ltd.		261		8
Flight Centre Travel Group Ltd.		245		11
Fortescue Metals Group Ltd.		6,417		21
Goodman Group REIT		7,660		50
GPT Group (The) REIT		7,637		28
Harvey Norman Holdings Ltd.		2,321		7
Healthscope Ltd.		7,144		11
Incitec Pivot Ltd.		7,134		19
Insurance Australia Group Ltd.		10,264		59
James Hardie Industries PLC CDI		1,900		34
Lend Lease Group REIT		2,339		31
Macquarie Group Ltd.		1,299		104
Medibank Pvt Ltd.		11,660		26
Mirvac Group REIT		15,799		26
National Australia Bank Ltd.		12,106		266
Newcrest Mining Ltd.		3,174		48
Oil Search Ltd.		5,761		32
Orica Ltd.		1,585		22
Origin Energy Ltd. (e)		7,407		50
Qantas Airways Ltd.		2,040		9
QBE Insurance Group Ltd.		6,116		45
Ramsay Health Care Ltd.		589		28
REA Group Ltd.		223		14
Rio Tinto Ltd.		1,767		99
Santos Ltd. (e)		7,625		30
Scentre Group REIT		22,654		67
Seek Ltd.		1,414		20
Shopping Centres Australasia Property Group REIT		59		—	@
Sonic Healthcare Ltd.		1,757		31
South32 Ltd.		22,055		55
Stockland REIT		11,191		35
Suncorp Group Ltd.		5,441		56
Sydney Airport		4,663		24
Tabcorp Holdings Ltd.		8,407		29
Telstra Corp., Ltd.		18,032		44
TPG Telecom Ltd.		1,437		6
Transurban Group		8,629		76
Treasury Wine Estates Ltd.		3,103		41
Vicinity Centres REIT		14,112		26
Vocus Group Ltd.		2,251		4

	Shares		Value (000)
Wesfarmers Ltd.		4,751	$	152
Westfield Corp. REIT		8,374		55
Westpac Banking Corp.		14,646		324
Woodside Petroleum Ltd.		3,235		73
Woolworths Group Ltd.		5,528		112
				4,134
Austria (0.1%)
BUWOG AG (e)		172		6
Erste Group Bank AG		1,437		72
IMMOFINANZ AG		3,441		9
Raiffeisen Bank International AG (e)		600		23
voestalpine AG		1,248		66
				176
Belgium (0.2%)
Ageas		778		40
Anheuser-Busch InBev SA N.V.		3,184		350
Colruyt SA		247		14
Groupe Bruxelles Lambert SA		331		38
KBC Group N.V.		2,330		203
Proximus SADP		628		19
Solvay SA		307		43
Telenet Group Holding N.V. (e)		220		15
UCB SA		517		42
Umicore SA		773		41
				805
Canada (1.7%)
Agnico Eagle Mines Ltd.		900		38
Alimentation Couche-Tard, Inc., Class B		1,831		82
AltaGas Ltd.		800		15
ARC Resources Ltd.		1,445		16
Atco Ltd., Class I		400		13
Bank of Montreal		2,698		204
Bank of Nova Scotia (The)		5,011		309
Barrick Gold Corp.		4,625		58
BCE, Inc.		800		34
Blackberry Ltd. (e)		2,120		24
Bombardier, Inc. (e)		7,998		23
Brookfield Asset Management, Inc., Class A		3,613		141
CAE, Inc.		1,000		19
Cameco Corp.		1,734		16
Canadian Imperial Bank of Commerce		1,638		145
Canadian National Railway Co.		3,276		239
Canadian Natural Resources Ltd.		4,529		142
Canadian Pacific Railway Ltd.		800		141
Canadian Tire Corp., Ltd., Class A		400		53
Canadian Utilities Ltd., Class A		700		19
CCL Industries, Inc., Class B		900		45
Cenovus Energy, Inc.		3,469		30
CGI Group, Inc., Class A (e)		1,000		58
CI Financial Corp.		1,000		21
Constellation Software, Inc.		100		68
Crescent Point Energy Corp.		2,313		16

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Canada (cont'd)
Dollarama, Inc.		600	$	73
Eldorado Gold Corp. (e)		2,794		2
Element Fleet Management Corp.		1,638		5
Emera, Inc.		300		9
Empire Co., Ltd., Class A		800		16
Enbridge, Inc.		4,047		127
Encana Corp.		4,047		44
Fairfax Financial Holdings Ltd.		100		51
Finning International, Inc.		800		19
First Capital Realty, Inc.		700		11
First Quantum Minerals Ltd.		2,794		39
Fortis, Inc.		1,734		58
Franco-Nevada Corp.		800		55
George Weston Ltd.		300		24
Gildan Activewear, Inc.		900		26
Goldcorp, Inc.		3,373		47
Great-West Lifeco, Inc.		1,200		31
H&R Real Estate Investment Trust REIT		800		13
Husky Energy, Inc.		1,498		21
Hydro One Ltd. (c)		900		15
IGM Financial, Inc.		500		15
Imperial Oil Ltd.		1,156		31
Industrial Alliance Insurance & Financial Services, Inc.		600		25
Intact Financial Corp.		700		53
Inter Pipeline Ltd.		1,445		25
Jean Coutu Group PJC, Inc. (The), Class A		400		8
Keyera Corp.		900		23
Kinross Gold Corp. (e)		4,914		19
Linamar Corp.		300		16
Loblaw Cos., Ltd.		973		49
Magna International, Inc.		1,638		92
Manulife Financial Corp.		8,383		156
Methanex Corp.		500		30
Metro, Inc.		1,000		32
National Bank of Canada		1,300		61
Nutrien Ltd.		2,969		140
Onex Corp.		500		36
Open Text Corp.		1,000		35
Pembina Pipeline Corp.		2,258		70
Peyto Exploration & Development Corp.		800		7
Power Corp. of Canada		1,542		35
Power Financial Corp.		1,100		28
PrairieSky Royalty Ltd.		777		17
Restaurant Brands International, Inc.		1,000		57
RioCan Real Estate Investment Trust REIT		800		15
Rogers Communications, Inc., Class B		1,542		69
Royal Bank of Canada		6,167		476
Saputo, Inc.		1,100		35
Seven Generations Energy Ltd., Class A (e)		1,100		14
Shaw Communications, Inc., Class B		1,734		33
SmartCentres Real Estate Investment Trust REIT		400		9

	Shares		Value (000)
SNC-Lavalin Group, Inc.		800	$	35
Sun Life Financial, Inc.		2,505		103
Suncor Energy, Inc.		7,088		245
Teck Resources Ltd., Class B		2,409		62
TELUS Corp.		900		32
Thomson Reuters Corp.		1,300		50
Toronto-Dominion Bank (The)		7,709		437
Tourmaline Oil Corp.		900		15
TransCanada Corp.		3,662		151
Trisura Group Ltd. (e)		27		1
Turquoise Hill Resources Ltd. (e)		4,240		13
Valeant Pharmaceuticals International, Inc. (e)		1,300		21
Vermilion Energy, Inc.		600		19
West Fraser Timber Co., Ltd.		400		27
Wheaton Precious Metals Corp.		1,831		37
Yamana Gold, Inc.		3,662		10
				5,624
China (0.0%)
Yum China Holdings, Inc.		536		22
Denmark (0.5%)
AP Moller - Maersk A/S Series A		16		24
AP Moller - Maersk A/S Series B		31		48
Carlsberg A/S Series B		55		7
Coloplast A/S Series B		67		6
Danske Bank A/S		3,389		127
DSV A/S		7,330		578
ISS A/S		5,446		202
Novo Nordisk A/S Series B		10,917		537
Novozymes A/S Series B		1,553		80
TDC A/S (e)		301		2
Vestas Wind Systems A/S		1,954		140
				1,751
Finland (0.2%)
Elisa Oyj		622		28
Fortum Oyj		1,901		41
Kone Oyj, Class B		1,466		73
Metso Oyj		490		15
Neste Oyj		568		40
Nokia Oyj		25,458		141
Nokian Renkaat Oyj		503		23
Orion Oyj, Class B		455		14
Sampo Oyj, Class A		1,940		108
Stora Enso Oyj, Class R		2,428		45
UPM-Kymmene Oyj		2,325		86
Wartsila Oyj Abp		1,947		43
				657
France (4.6%)
Accor SA		15,566		841
Aeroports de Paris (ADP)		727		158
Air Liquide SA		1,822		223
Airbus SE		2,498		289
Alstom SA		653		29

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
France (cont'd)
Amundi SA (c)		254	$	20
ArcelorMittal (e)		2,814		89
Arkema SA		289		38
Atos SE		4,686		642
AXA SA		8,252		220
BioMerieux		178		15
BNP Paribas SA		10,223		758
Bollore SA		3,690		20
Bouygues SA		12,485		626
Bureau Veritas SA		1,127		29
Capgemini SE		8,557		1,067
Carrefour SA		2,421		50
Casino Guichard Perrachon SA		234		11
Cie de Saint-Gobain		13,151		695
Cie Generale des Etablissements Michelin SCA		727		107
CNP Assurances		719		18
Credit Agricole SA		10,252		167
Danone SA		2,579		209
Dassault Aviation SA		11		21
Dassault Systemes SE		556		76
Edenred		948		33
Eiffage SA		312		36
Electricite de France SA		2,431		35
Engie SA		7,847		131
Essilor International Cie Generale d'Optique SA		881		119
Eurazeo SA		183		17
Eurofins Scientific		48		25
Eutelsat Communications SA		748		15
Faurecia SA		318		26
Fonciere Des Regions REIT		142		16
Gecina SA REIT		202		35
Getlink SE		15,448		221
Hermes International		135		80
ICADE REIT		142		14
Iliad SA		111		23
Imerys SA		153		15
Ingenico Group SA		252		21
Ipsen SA		161		25
JCDecaux SA		315		11
Kering SA		324		155
Klepierre SA REIT		934		38
L'Oreal SA		1,077		243
Lagardere SCA		507		14
Legrand SA		1,126		88
LVMH Moet Hennessy Louis Vuitton SE		1,195		369
Natixis SA		8,845		73
Orange SA		8,468		144
Pernod Ricard SA		918		153
Peugeot SA		57,538		1,386
Publicis Groupe SA		884		62

	Shares		Value (000)
Remy Cointreau SA		98	$	14
Renault SA		815		99
Rexel SA		14,020		237
Safran SA		1,417		150
Sanofi		4,747		381
Schneider Electric SE		2,415		212
SCOR SE		731		30
SEB SA		97		19
SES SA		1,554		21
Societe BIC SA		121		12
Societe Generale SA		7,184		391
Sodexo SA		391		39
STMicroelectronics N.V.		2,874		64
Suez		1,869		27
Teleperformance		248		38
Thales SA		455		55
TOTAL SA		10,018		569
Ubisoft Entertainment SA (e)		269		23
Unibail-Rodamco SE REIT		423		97
Valeo SA		1,017		67
Veolia Environnement SA		2,104		50
Vinci SA		20,707		2,039
Vivendi SA		4,390		114
Wendel SA		119		19
				14,808
Germany (2.2%)
1&1 Drillisch AG		229		15
Adidas AG		796		193
Allianz SE (Registered)		1,905		431
Axel Springer SE		209		18
BASF SE		3,917		398
Bayer AG (Registered)		3,534		400
Bayerische Motoren Werke AG		1,410		153
Bayerische Motoren Werke AG (Preference)		235		22
Beiersdorf AG		431		49
Brenntag AG		662		39
Commerzbank AG (e)		9,990		130
Continental AG		466		129
Covestro AG (c)		686		68
Daimler AG (Registered)		4,076		346
Deutsche Bank AG (Registered)		8,716		122
Deutsche Boerse AG		7,513		1,023
Deutsche Lufthansa AG (Registered)		1,009		32
Deutsche Post AG (Registered)		4,123		180
Deutsche Telekom AG (Registered)		14,179		231
Deutsche Wohnen SE		1,505		70
E.ON SE		9,573		106
Evonik Industries AG		692		24
Fraport AG Frankfurt Airport Services Worldwide		1,923		190
Fresenius Medical Care AG & Co., KGaA		920		94
Fresenius SE & Co., KGaA		1,772		135
Fuchs Petrolub SE (Preference)		297		16

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Germany (cont'd)
GEA Group AG		747	$	32
Hannover Rueck SE (Registered)		254		35
HeidelbergCement AG		645		63
Henkel AG & Co., KGaA		444		56
Henkel AG & Co., KGaA (Preference)		764		100
Hochtief AG		82		15
Hugo Boss AG		273		24
Infineon Technologies AG		4,979		133
Innogy SE (c)		610		29
K+S AG (Registered)		808		23
KION Group AG		304		28
LANXESS AG		390		30
Linde AG (e)		799		168
MAN SE		149		17
Merck KGaA		550		53
METRO AG		762		14
MTU Aero Engines AG		221		37
Muenchener Rueckversicherungs- Gesellschaft AG in Muenchen (Registered)		659		153
OSRAM Licht AG		422		31
Porsche Automobil Holding SE (Preference)		654		54
ProSiebenSat.1 Media SE (Registered)		1,002		35
QIAGEN N.V. (e)		928		30
RTL Group SA		165		14
RWE AG (e)		2,264		56
SAP SE		4,174		437
Schaeffler AG (Preference)		1,000		15
Siemens AG (Registered)		3,283		419
Symrise AG		530		43
Telefonica Deutschland Holding AG		3,188		15
thyssenKrupp AG		1,850		48
Uniper SE		858		26
United Internet AG (Registered)		521		33
Volkswagen AG		138		28
Volkswagen AG (Preference)		797		159
Vonovia SE		2,087		104
Wirecard AG		514		61
Zalando SE (c)(e)		481		26
				7,258
Greece (0.0%)
National Bank of Greece SA (e)		95		—	@
Hong Kong (0.7%)
AIA Group Ltd.		54,000		461
ASM Pacific Technology Ltd.		1,000		14
Bank of East Asia Ltd. (The)		5,597		22
BOC Hong Kong Holdings Ltd.		17,000		83
Cathay Pacific Airways Ltd. (e)		5,000		9
CK Asset Holdings Ltd.		11,864		100
CK Hutchison Holdings Ltd.		11,864		143
CK Infrastructure Holdings Ltd.		3,500		29
CLP Holdings Ltd.		7,500		77
First Pacific Co., Ltd.		10,000		5
Galaxy Entertainment Group Ltd.		10,000		92

	Shares		Value (000)
Hanergy Thin Film Power Group Ltd. (e)(f)(g)		42,000	$	—	@
Hang Lung Group Ltd.		4,000		13
Hang Lung Properties Ltd.		10,000		23
Hang Seng Bank Ltd.		3,500		82
Henderson Land Development Co., Ltd.		5,491		36
HK Electric Investments & HK Electric Investments Ltd. (c)		12,000		12
HKT Trust & HKT Ltd.		11,000		14
Hong Kong & China Gas Co., Ltd.		37,951		78
Hong Kong Exchanges & Clearing Ltd.		5,257		173
Hongkong Land Holdings Ltd.		5,200		36
Hysan Development Co., Ltd.		3,000		16
I-CABLE Communications Ltd. (e)		7,559		—	@
Jardine Matheson Holdings Ltd.		1,000		62
Kerry Properties Ltd.		3,000		14
Li & Fung Ltd.		26,000		13
Link REIT		10,033		86
Melco Resorts & Entertainment Ltd. ADR		800		23
MGM China Holdings Ltd.		4,000		10
MTR Corp., Ltd.		6,819		37
New World Development Co., Ltd.		27,998		40
NWS Holdings Ltd.		7,000		13
PCCW Ltd.		19,000		11
Power Assets Holdings Ltd.		6,000		54
Sands China Ltd.		10,800		59
Shangri-La Asia Ltd.		6,000		12
Sino Land Co., Ltd.		13,696		22
SJM Holdings Ltd.		9,000		8
Sun Hung Kai Properties Ltd.		6,504		104
Swire Pacific Ltd., Class A		2,500		25
Swire Properties Ltd.		5,150		18
Techtronic Industries Co., Ltd.		6,000		35
WH Group Ltd. (c)		36,000		39
Wharf Holdings Ltd. (The)		6,200		21
Wharf Real Estate Investment Co., Ltd. (e)		6,200		41
Wheelock & Co., Ltd.		4,000		29
Wynn Macau Ltd.		7,200		26
Yue Yuen Industrial Holdings Ltd.		3,500		14
				2,334
Ireland (0.2%)
AIB Group PLC		3,434		21
Bank of Ireland Group PLC (e)		8,693		76
CRH PLC		9,771		332
Kerry Group PLC, Class A		668		68
Paddy Power Betfair PLC		339		35
				532
Italy (1.2%)
Assicurazioni Generali SpA		5,238		101
Atlantia SpA		26,617		825
CNH Industrial N.V.		4,426		55
Davide Campari-Milano SpA		2,512		19
Enel SpA		34,836		213
Eni SpA		10,807		190
EXOR N.V.		460		33

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Italy (cont'd)
Ferrari N.V.		529	$	64
Fiat Chrysler Automobiles N.V. (e)		4,587		94
Intesa Sanpaolo SpA		127,824		467
Leonardo SpA		1,745		20
Luxottica Group SpA		728		45
Mediobanca Banca di Credito Finanziario SpA		85,050		1,001
Poste Italiane SpA (c)		2,227		20
Prysmian SpA		882		28
Recordati SpA		449		17
Snam SpA		9,785		45
Telecom Italia SpA (e)		48,672		46
Telecom Italia SpA		25,645		21
Tenaris SA		2,020		35
Terna Rete Elettrica Nazionale SpA		6,075		36
UniCredit SpA (e)		17,852		375
Unione di Banche Italiane SpA		4,533		21
UnipolSai Assicurazioni SpA		4,206		10
				3,781
Netherlands (1.0%)
ABN AMRO Group N.V. CVA (c)		3,026		91
Aegon N.V.		7,530		51
AerCap Holdings N.V. (e)		600		30
Akzo Nobel N.V.		1,076		102
Altice N.V., Class A (e)		2,318		19
ASML Holding N.V.		1,687		334
Boskalis Westminster		386		11
Coca-Cola European Partners PLC		1,351		56
Heineken Holding N.V.		492		51
Heineken N.V.		1,108		119
ING Groep N.V.		36,538		617
Koninklijke Ahold Delhaize N.V.		5,613		133
Koninklijke DSM N.V.		772		77
Koninklijke KPN N.V.		14,633		44
Koninklijke Philips N.V.		4,006		154
Koninklijke Vopak N.V.		298		15
NN Group		1,295		58
NXP Semiconductors (e)		1,500		176
Randstad Holding N.V.		10,851		715
RELX N.V.		4,124		86
Unilever N.V. CVA		6,959		393
Wolters Kluwer N.V.		1,286		68
				3,400
New Zealand (0.0%)
Auckland International Airport Ltd.		4,487		20
Contact Energy Ltd.		3,355		13
Fletcher Building Ltd.		3,166		14
Mercury NZ Ltd.		3,250		7
Meridian Energy Ltd.		6,024		12
Ryman Healthcare Ltd.		1,773		14
Spark New Zealand Ltd.		8,402		20
				100

	Shares		Value (000)
Norway (0.4%)
Akastor ASA (e)		1,833	$	3
Aker Solutions ASA (e)		1,833		10
DNB ASA		11,838		231
Kvaerner ASA (e)		1,677		3
Norsk Hydro ASA		13,781		81
Orkla ASA		10,248		110
REC Silicon ASA (e)		6,482		1
Seadrill Ltd. (e)		328		—	@
Statoil ASA		13,168		312
Subsea 7 SA		3,127		40
Telenor ASA		16,272		370
Yara International ASA		2,039		87
				1,248
Poland (0.0%)
Jeronimo Martins SGPS SA		2,885		53
Portugal (0.0%)
Galp Energia SGPS SA		2,692		51
Pharol SGPS SA (Registered) (e)		11,120		3
				54
Spain (0.9%)
Abertis Infraestructuras SA		2,939		66
ACS Actividades de Construccion y Servicios SA		1,046		41
Aena SME SA (c)		287		58
Amadeus IT Group SA, Class A		1,871		138
Banco Bilbao Vizcaya Argentaria SA		61,692		488
Banco de Sabadell SA		50,012		102
Banco Santander SA		142,890		932
Bankia SA		10,174		46
Bankinter SA		6,336		65
CaixaBank SA		29,070		139
Enagas SA		972		27
Endesa SA		1,354		30
Ferrovial SA		2,106		44
Gas Natural SDG SA		1,504		36
Grifols SA		1,272		36
Iberdrola SA		24,544		180
Industria de Diseno Textil SA		4,624		145
International Consolidated Airlines Group SA		2,656		23
Mapfre SA		4,603		15
Red Electrica Corp., SA		1,857		38
Repsol SA		5,312		94
Siemens Gamesa Renewable Energy SA		1,036		17
Telefonica SA		19,332		192
				2,952
Sweden (0.5%)
Alfa Laval AB		1,300		31
Assa Abloy AB, Class B		4,433		96
Atlas Copco AB, Class A		2,942		127
Atlas Copco AB, Class B		1,714		67
Boliden AB		1,187		42

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Sweden (cont'd)
Electrolux AB, Class B		1,052	$	33
Essity AB, Class B (e)		2,703		75
Getinge AB, Class B		992		11
Hennes & Mauritz AB, Class B		4,087		61
Hexagon AB, Class B		1,132		68
Husqvarna AB, Class B		1,834		18
ICA Gruppen AB		349		12
Industrivarden AB, Class C		745		17
Investor AB, Class B		2,044		91
Kinnevik AB, Class B		1,053		38
L E Lundbergforetagen AB, Class B		170		12
Lundin Petroleum AB (e)		820		21
Millicom International Cellular SA SDR		294		20
Nordea Bank AB		13,312		142
Sandvik AB		4,880		90
Securitas AB, Class B		1,371		23
Skandinaviska Enskilda Banken AB, Class A		6,697		70
Skanska AB, Class B		1,490		30
SKF AB, Class B		1,669		34
Svenska Handelsbanken AB, Class A		6,613		83
Swedbank AB, Class A		3,958		89
Swedish Match AB		793		36
Tele2 AB, Class B		1,568		19
Telefonaktiebolaget LM Ericsson, Class B		13,867		88
Telia Co., AB		11,358		54
Volvo AB, Class B		6,825		125
				1,723
Switzerland (1.8%)
ABB Ltd. (Registered)		15,395		367
Adecco Group AG (Registered)		13,543		965
Cie Financiere Richemont SA (Registered)		2,189		197
Credit Suisse Group AG (Registered) (e)		6,709		113
Geberit AG (Registered)		368		163
Givaudan SA (Registered)		41		93
Idorsia Ltd. (e)		434		10
Julius Baer Group Ltd. (e)		948		58
Kuehne + Nagel International AG (Registered)		301		47
LafargeHolcim Ltd. (Registered) (e)		140		8
LafargeHolcim Ltd. (Registered) (e)		1,737		95
Lonza Group AG (Registered) (e)		214		50
Nestle SA (Registered)		15,648		1,239
Novartis AG (Registered)		9,684		783
Roche Holding AG (Genusschein)		2,636		605
SGS SA (Registered)		24		59
Sonova Holding AG (Registered)		392		62
Swatch Group AG (The)		144		64
Swiss Re AG		549		56
Swisscom AG (Registered)		306		152
Transocean Ltd. (e)		1,334		13
UBS Group AG (Registered) (e)		12,506		220
Zurich Insurance Group AG (e)		1,038		341
				5,760

	Shares		Value (000)
United Kingdom (3.4%)
3i Group PLC		4,140	$	50
Admiral Group PLC		860		22
Anglo American PLC		5,774		135
Antofagasta PLC		1,709		22
Ashtead Group PLC		2,146		58
Associated British Foods PLC		1,520		53
AstraZeneca PLC		5,492		378
Auto Trader Group PLC (c)		4,260		21
Aviva PLC		17,454		122
Babcock International Group PLC		1,072		10
BAE Systems PLC		13,566		111
Barclays PLC		73,599		215
Barratt Developments PLC		4,284		32
Berkeley Group Holdings PLC		553		29
BHP Billiton PLC		9,147		180
BP PLC		84,636		570
British American Tobacco PLC		9,748		566
British American Tobacco PLC ADR		702		40
British Land Co., PLC (The) REIT		4,193		38
BT Group PLC		36,401		116
Bunzl PLC		1,445		42
Burberry Group PLC		1,881		45
Capita PLC		2,838		6
Carnival PLC		842		54
Centrica PLC		23,520		47
Cobham PLC (e)		10,338		18
Coca-Cola HBC AG (e)		788		29
Compass Group PLC		6,795		139
ConvaTec Group PLC (c)		5,953		17
Croda International PLC		566		36
DCC PLC		386		36
Diageo PLC		10,771		364
Direct Line Insurance Group PLC		5,938		32
Dixons Carphone PLC		4,138		11
easyJet PLC		676		15
Experian PLC		4,053		88
Ferguson PLC		1,113		84
Fresnillo PLC		959		17
G4S PLC		6,701		23
GKN PLC		7,278		47
GlaxoSmithKline PLC		21,269		413
Glencore PLC (e)		53,082		264
Hammerson PLC REIT		3,399		26
Hargreaves Lansdown PLC		1,118		26
Hikma Pharmaceuticals PLC		611		10
HSBC Holdings PLC		86,893		812
IMI PLC		1,180		18
Imperial Brands PLC		4,009		137
Inmarsat PLC		1,969		10
InterContinental Hotels Group PLC		785		47
International Game Technology PLC		210		6
Intertek Group PLC		699		46

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
Intu Properties PLC REIT		3,776	$	11
Investec PLC		2,867		22
ITV PLC		15,241		31
J Sainsbury PLC		7,046		24
Johnson Matthey PLC		822		35
Kingfisher PLC		9,464		39
Land Securities Group PLC REIT		3,192		42
Legal & General Group PLC		25,648		93
Lloyds Banking Group PLC		309,994		282
London Stock Exchange Group PLC		1,340		78
Marks & Spencer Group PLC		6,960		26
Mediclinic International PLC		1,583		13
Meggitt PLC		3,368		20
Merlin Entertainments PLC (c)		3,094		15
Micro Focus International PLC		1,887		26
Micro Focus International PLC ADR		410		6
Mondi PLC		1,581		43
National Grid PLC		14,653		165
Next PLC		618		41
Old Mutual PLC		21,313		72
Paragon Offshore PLC (e)(g)		303		—
Pearson PLC		3,588		38
Persimmon PLC		1,312		47
Provident Financial PLC		653		6
Prudential PLC		11,160		279
Randgold Resources Ltd.		401		33
Reckitt Benckiser Group PLC		2,907		246
RELX PLC	��	4,609		95
Rio Tinto PLC		5,311		270
Rolls-Royce Holdings PLC (e)		7,194		88
Royal Bank of Scotland Group PLC (e)		15,337		56
Royal Dutch Shell PLC, Class A		19,362		608
Royal Dutch Shell PLC, Class B		16,217		523
Royal Mail PLC		3,833		29
RSA Insurance Group PLC		4,414		39
Sage Group PLC (The)		4,674		42
Schroders PLC		537		24
Segro PLC REIT		4,278		36
Severn Trent PLC		1,006		26
Shire PLC		3,901		194
Shire PLC ADR		235		35
Sky PLC		4,394		80
Smith & Nephew PLC		3,778		71
Smiths Group PLC		1,707		36
SSE PLC		4,325		77
St. James's Place PLC		2,278		35
Standard Chartered PLC		14,263		143
Standard Life Aberdeen PLC		11,545		58
Tate & Lyle PLC		1,989		15
Taylor Wimpey PLC		13,982		36
Tesco PLC		35,031		101
Travis Perkins PLC		1,081		19

	Shares		Value (000)
TUI AG		1,902	$	41
Unilever PLC		5,487		305
United Utilities Group PLC		2,907		29
Vodafone Group PLC		115,327		316
Weir Group PLC (The)		951		27
Whitbread PLC		786		41
Wm Morrison Supermarkets PLC		9,355		28
WPP PLC		5,508		88
				11,077
United States (18.3%)
3M Co.		679		149
Abbott Laboratories		2,841		170
AbbVie, Inc.		2,055		194
Abercrombie & Fitch Co., Class A		272		7
Accenture PLC, Class A		1,386		213
ACCO Brands Corp.		268		3
Adient PLC		251		15
Adobe Systems, Inc. (e)		1,410		305
Adtalem Global Education, Inc. (e)		25		1
Advance Auto Parts, Inc.		336		40
Advanced Micro Devices, Inc. (e)		1,139		11
AdvanSix, Inc. (e)		259		9
AES Corp.		373		4
Aetna, Inc.		917		155
Aflac, Inc.		554		24
Agilent Technologies, Inc.		896		60
Air Products & Chemicals, Inc.		358		57
Akamai Technologies, Inc. (e)		572		41
Alcoa Corp. (e)		317		14
Alexion Pharmaceuticals, Inc. (e)		563		63
Allegheny Technologies, Inc. (e)		374		9
Allegion PLC		337		29
Allergan PLC		336		57
Allstate Corp. (The)		311		29
Alphabet, Inc., Class A (e)		596		618
Alphabet, Inc., Class C (e)		701		723
Altria Group, Inc.		3,213		200
Amazon.com, Inc. (e)		695		1,006
AMC Networks, Inc., Class A (e)		25		1
Ameren Corp.		983		56
American Electric Power Co., Inc.		1,503		103
American Express Co.		1,443		135
American Tower Corp. REIT		1,417		206
Ameriprise Financial, Inc.		886		131
AmerisourceBergen Corp.		1,115		96
AMETEK, Inc.		375		28
Amgen, Inc.		1,839		313
Amphenol Corp., Class A		286		25
Anadarko Petroleum Corp.		897		54
Analog Devices, Inc.		1,529		139
Annaly Capital Management, Inc. REIT		960		10
Anthem, Inc.		701		154

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Aon PLC		311	$	44
Apache Corp.		959		37
Apple, Inc.		17,877		2,999
Applied Materials, Inc.		2,411		134
Archer-Daniels-Midland Co.		900		39
Arconic, Inc.		556		13
AT&T, Inc.		14,692		524
Automatic Data Processing, Inc.		695		79
AutoZone, Inc. (e)		341		221
AvalonBay Communities, Inc. REIT		609		100
Avery Dennison Corp.		676		72
Avon Products, Inc. (e)		2,449		7
Baker Hughes a GE Co.		1,445		40
Ball Corp.		653		26
Bank of America Corp.		26,009		780
Bank of New York Mellon Corp. (The)		3,503		180
Baxter International, Inc.		1,450		94
BB&T Corp.		2,169		113
Becton Dickinson & Co.		936		203
Bed Bath & Beyond, Inc.		621		13
Berkshire Hathaway, Inc., Class B (e)		321		64
Best Buy Co., Inc.		591		41
Biogen, Inc. (e)		657		180
Blackhawk Network Holdings, Inc. (e)		63		3
BlackRock, Inc.		332		180
Boeing Co. (The)		1,070		351
Booking Holdings, Inc. (e)		369		768
Boston Properties, Inc. REIT		575		71
Boston Scientific Corp. (e)		3,589		98
Brighthouse Financial, Inc. (e)		25		1
Bristol-Myers Squibb Co.		2,654		168
Broadcom Ltd.		694		164
Brown-Forman Corp., Class B		69		4
Bunge Ltd.		315		23
CA, Inc.		665		23
California Resources Corp. (e)		261		4
Campbell Soup Co.		328		14
Capital One Financial Corp.		34,988		3,353
Cardinal Health, Inc.		962		60
CarMax, Inc. (e)		358		22
Carnival Corp.		694		45
Cars.com, Inc. (e)		235		7
Caterpillar, Inc.		1,471		217
CBRE Group, Inc., Class A (e)		1,816		86
CBS Corp., Class B		2,044		105
CDK Global, Inc.		369		23
Celanese Corp. Series A		327		33
Celgene Corp. (e)		1,769		158
CenterPoint Energy, Inc.		1,461		40
CenturyLink, Inc.		1,232		20
Cerner Corp. (e)		923		54
CF Industries Holdings, Inc.		828		31

	Shares		Value (000)
CH Robinson Worldwide, Inc.		364	$	34
Charles Schwab Corp. (The)		2,112		110
Charter Communications, Inc., Class A (e)		601		187
Chemours Co. (The)		348		17
Chesapeake Energy Corp. (e)		1,464		4
Chevron Corp.		3,154		360
Chipotle Mexican Grill, Inc. (e)		331		107
Chubb Ltd.		275		38
Cigna Corp.		969		163
Cintas Corp.		565		96
Cisco Systems, Inc.		14,425		619
CIT Group, Inc.		683		35
Citigroup, Inc.		5,297		358
Citrix Systems, Inc. (e)		593		55
Cleveland-Cliffs, Inc. (e)		256		2
Clorox Co. (The)		391		52
CME Group, Inc.		321		52
CNX Resources Corp. (e)		865		13
Coca-Cola Co. (The)		9,683		421
Cognizant Technology Solutions Corp., Class A		1,764		142
Colgate-Palmolive Co.		2,909		209
Comcast Corp., Class A		10,862		371
Comerica, Inc.		328		31
Conagra Brands, Inc.		1,016		37
Concho Resources, Inc. (e)		343		52
Conduent, Inc. (e)		315		6
ConocoPhillips		2,349		139
CONSOL Energy, Inc. (e)		72		2
Consolidated Edison, Inc.		900		70
Constellation Brands, Inc., Class A		337		77
Corning, Inc.		1,469		41
Costco Wholesale Corp.		2,012		379
Crimson Wine Group Ltd. (e)		358		4
Crown Castle International Corp. REIT		876		96
Crown Holdings, Inc. (e)		275		14
CSX Corp.		2,345		131
Cummins, Inc.		637		103
CVS Health Corp.		621		39
Danaher Corp.		290		28
Darden Restaurants, Inc.		296		25
DaVita, Inc. (e)		563		37
Deere & Co.		996		155
Dell Technologies, Inc., Class V (e)		629		46
Denbury Resources, Inc. (e)		360		1
Devon Energy Corp.		705		22
Diamond Offshore Drilling, Inc. (e)		51		1
Discover Financial Services		45,794		3,294
Discovery Communications, Inc., Class A (e)		673		14
Discovery Communications, Inc., Class C (e)		1,390		27
Dollar General Corp.		299		28
Dollar Tree, Inc. (e)		321		30
Dominion Energy, Inc.		1,845		124

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Donnelley Financial Solutions, Inc. (e)		363	$	6
Dover Corp.		332		33
DowDuPont, Inc.		1,780		113
Dr Pepper Snapple Group, Inc.		352		42
DTE Energy Co.		629		66
Duke Energy Corp.		1,696		131
Dun & Bradstreet Corp. (The)		362		42
DXC Technology Co.		299		30
Eastman Chemical Co.		362		38
Eaton Corp., PLC		954		76
eBay, Inc. (e)		2,545		102
Ecolab, Inc.		611		84
Edison International		1,390		88
Edwards Lifesciences Corp. (e)		327		46
Eli Lilly & Co.		1,508		117
Emerson Electric Co.		1,697		116
Engility Holdings, Inc. (e)		21		1
Entergy Corp.		562		44
EOG Resources, Inc.		1,476		155
EQT Corp.		310		15
Equifax, Inc.		605		71
Equity Residential REIT		1,007		62
ESC Seventy Seven (e)(g)		275		—
Estee Lauder Cos., Inc. (The), Class A		1,012		151
Exelon Corp.		2,403		94
Expedia Group, Inc.		337		37
Expeditors International of Washington, Inc.		323		20
Express Scripts Holding Co. (e)		2,132		147
Exxon Mobil Corp.		7,693		574
Fastenal Co.		696		38
FedEx Corp.		631		151
Fidelity National Information Services, Inc.		237		23
Fifth Third Bancorp		2,872		91
First Solar, Inc. (e)		326		23
FirstEnergy Corp.		992		34
Fiserv, Inc. (e)		1,066		76
Flowserve Corp.		360		16
Fluor Corp.		297		17
FMC Corp.		327		25
Ford Motor Co.		3,207		36
Fortive Corp.		310		24
Four Corners Property Trust, Inc. REIT		325		7
Franklin Resources, Inc.		1,070		37
Freeport-McMoRan, Inc. (e)		847		15
Frontier Communications Corp.		370		3
GameStop Corp., Class A		374		5
Gannett Co., Inc.		281		3
Gap, Inc. (The)		633		20
General Dynamics Corp.		378		83
General Electric Co.		7,136		96
General Mills, Inc.		1,536		69
Genuine Parts Co.		237		21

	Shares		Value (000)
GGP, Inc. REIT		383	$	8
Gilead Sciences, Inc.		2,872		217
Goldman Sachs Group, Inc. (The)		1,544		389
H&R Block, Inc.		1,087		28
Halliburton Co.		2,117		99
Halyard Health, Inc. (e)		253		12
Harris Corp.		19		3
Hartford Financial Services Group, Inc. (The)		336		17
Hasbro, Inc.		290		24
HCP, Inc. REIT		607		14
Helmerich & Payne, Inc.		326		22
Henry Schein, Inc. (e)		865		58
Hershey Co. (The)		316		31
Hess Corp.		586		30
Hewlett Packard Enterprise Co.		3,598		63
Hologic, Inc. (e)		633		24
Home Depot, Inc. (The)		369		66
Honeywell International, Inc.		1,499		217
Host Hotels & Resorts, Inc. REIT		2,681		50
HP, Inc.		3,598		79
Humana, Inc.		279		75
Huntington Bancshares, Inc.		275		4
Huntington Ingalls Industries, Inc.		51		13
IHS Markit Ltd. (e)		985		47
ILG, Inc.		379		12
Illinois Tool Works, Inc.		967		151
Illumina, Inc. (e)		311		74
Ingersoll-Rand PLC		284		24
Ingevity Corp. (e)		36		3
Intel Corp.		6,228		324
Intercontinental Exchange, Inc.		1,391		101
International Business Machines Corp.		2,548		391
International Flavors & Fragrances, Inc.		337		46
International Paper Co.		301		16
Interpublic Group of Cos., Inc. (The)		1,701		39
Intuit, Inc.		983		170
Intuitive Surgical, Inc. (e)		917		379
Invesco Ltd.		1,433		46
Iron Mountain, Inc. REIT		960		32
ITT, Inc.		260		13
Jabil, Inc.		263		8
Jacobs Engineering Group, Inc.		301		18
Janus Henderson Group PLC		52		2
JB Hunt Transport Services, Inc.		336		39
JBG SMITH Properties REIT		232		8
JC Penney Co., Inc. (e)		120		—	@
JM Smucker Co. (The)		342		42
Johnson & Johnson		4,724		605
Johnson Controls International PLC		892		31
JPMorgan Chase & Co.		13,013		1,431
Juniper Networks, Inc.		1,851		45
KBR, Inc.		311		5
Kellogg Co.		637		41

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
KeyCorp		3,522	$	69
Keysight Technologies, Inc. (e)		270		14
Kimberly-Clark Corp.		1,406		155
Kimco Realty Corp. REIT		929		13
KLA-Tencor Corp.		627		68
Knowles Corp. (e)		277		3
Kohl's Corp.		659		43
Kraft Heinz Co. (The)		911		57
Kroger Co. (The)		4,144		99
L Brands, Inc.		855		33
L3 Technologies, Inc.		237		49
Laboratory Corp. of America Holdings (e)		317		51
Lam Research Corp.		311		63
Lamb Weston Holdings, Inc.		373		22
Las Vegas Sands Corp.		632		45
Legg Mason, Inc.		858		35
Leucadia National Corp.		923		21
Liberty Global PLC, Class A (e)		948		30
Liberty Global PLC Series C (e)		1,645		50
Liberty Latin America Ltd., Class A (e)		297		6
Liberty Latin America Ltd., Class C (e)		248		5
Liberty Property Trust REIT		300		12
Lockheed Martin Corp.		328		111
Loews Corp.		348		17
LogMeIn, Inc.		268		31
Lowe's Cos., Inc.		2,323		204
LSC Communications, Inc.		363		6
LyondellBasell Industries N.V., Class A		305		32
M&T Bank Corp.		286		53
Macerich Co. (The) REIT		367		21
Macy's, Inc.		289		9
Mallinckrodt PLC (e)		331		5
ManpowerGroup, Inc.		586		67
Marathon Oil Corp.		1,228		20
Marathon Petroleum Corp.		1,438		105
Marriott International, Inc., Class A		927		126
Marriott Vacations Worldwide Corp.		374		50
Marsh & McLennan Cos., Inc.		348		29
Marvell Technology Group Ltd.		1,005		21
Mastercard, Inc., Class A		3,175		556
Mattel, Inc.		607		8
Maxim Integrated Products, Inc.		595		36
McDonald's Corp.		1,762		276
McKesson Corp.		654		92
Medtronic PLC		2,841		228
Merck & Co., Inc.		5,302		289
MetLife, Inc.		317		15
MGM Resorts International		941		33
Microchip Technology, Inc.		279		25
Micron Technology, Inc. (e)		1,745		91
Microsoft Corp.		12,671		1,156
Molson Coors Brewing Co., Class B		559		42

	Shares		Value (000)
Mondelez International, Inc., Class A		2,654	$	111
Monsanto Co.		869		101
Moody's Corp.		389		63
Mosaic Co. (The)		643		16
Motorola Solutions, Inc.		560		59
Murphy Oil Corp.		373		10
Murphy USA, Inc. (e)		270		20
Mylan N.V. (e)		865		36
Nasdaq, Inc.		873		75
National Oilwell Varco, Inc.		1,432		53
Navient Corp.		1,700		22
NetApp, Inc.		1,069		66
Netflix, Inc. (e)		700		207
NetScout Systems, Inc. (e)		2,328		61
New York Community Bancorp, Inc.		1,484		19
Newfield Exploration Co. (e)		306		7
Newmont Mining Corp.		964		38
News Corp., Class A		1,443		23
News Corp., Class B		360		6
NextEra Energy, Inc.		953		156
NIKE, Inc., Class B		2,163		144
NiSource, Inc.		53		1
Noble Corp., PLC (e)		248		1
Noble Energy, Inc.		910		28
Nordstrom, Inc.		320		15
Norfolk Southern Corp.		1,391		189
Northern Trust Corp.		27		3
Northrop Grumman Corp.		300		105
NOW, Inc. (e)		363		4
Nucor Corp.		315		19
NVIDIA Corp.		1,202		278
O'Reilly Automotive, Inc. (e)		287		71
Occidental Petroleum Corp.		2,392		155
Omnicom Group, Inc.		881		64
ONE Gas, Inc.		380		25
ONEOK, Inc.		955		54
Oracle Corp.		7,706		353
Owens-Illinois, Inc. (e)		286		6
PACCAR, Inc.		901		60
Patterson Cos., Inc.		290		6
Paychex, Inc.		680		42
PayPal Holdings, Inc. (e)		2,545		193
Pentair PLC		301		20
People's United Financial, Inc.		332		6
PepsiCo, Inc.		2,326		254
Perrigo Co., PLC		327		27
Pfizer, Inc.		9,755		346
PG&E Corp.		960		42
Philip Morris International, Inc.		2,680		266
Phillips 66		1,444		138
Pioneer Natural Resources Co.		277		48
Pitney Bowes, Inc.		899		10
PNC Financial Services Group, Inc. (The)		1,490		225

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
PPG Industries, Inc.		312	$	35
PPL Corp.		1,485		42
Praxair, Inc.		660		95
Procter & Gamble Co. (The)		6,496		515
Progressive Corp. (The)		343		21
ProLogis, Inc. REIT		1,440		91
Prudential Financial, Inc.		311		32
Public Service Enterprise Group, Inc.		1,503		75
Public Storage REIT		951		191
QEP Resources, Inc. (e)		358		3
QUALCOMM, Inc.		4,050		224
Quality Care Properties, Inc. REIT (e)		291		6
Quest Diagnostics, Inc.		317		32
Ralph Lauren Corp.		38		4
Range Resources Corp.		559		8
Rayonier Advanced Materials, Inc.		351		8
Rayonier, Inc. REIT		360		13
Raytheon Co.		321		69
Regency Centers Corp. REIT		337		20
Regions Financial Corp.		5,025		93
Republic Services, Inc.		911		60
Robert Half International, Inc.		686		40
Rockwell Automation, Inc.		689		120
Rockwell Collins, Inc.		295		40
Roper Technologies, Inc.		341		96
Ross Stores, Inc.		971		76
Royal Caribbean Cruises Ltd.		701		83
RR Donnelley & Sons Co.		353		3
S&P Global, Inc.		875		167
Sabra Health Care, Inc. REIT		358		6
salesforce.com, Inc. (e)		1,505		175
Schlumberger Ltd.		4,062		263
Sealed Air Corp.		367		16
Sempra Energy		915		102
Sherwin-Williams Co. (The)		51		20
Simon Property Group, Inc. REIT		1,506		232
SLM Corp. (e)		1,518		17
Southern Co. (The)		2,108		94
Southwest Airlines Co.		341		20
Southwestern Energy Co. (e)		922		4
Sprint Corp. (e)		7,600		37
Stanley Black & Decker, Inc.		342		52
Starbucks Corp.		2,875		166
State Street Corp.		918		92
Stericycle, Inc. (e)		290		17
Stryker Corp.		918		148
SunTrust Banks, Inc.		1,707		116
Symantec Corp.		2,163		56
Synchrony Financial		91,868		3,080
Sysco Corp.		2,322		139
T Rowe Price Group, Inc.		988		107
T-Mobile US, Inc. (e)		242		15

	Shares		Value (000)
Tapestry, Inc.		680	$	36
Target Corp.		795		55
TE Connectivity Ltd.		980		98
TechnipFMC PLC		881		26
TEGNA, Inc.		275		3
Tenet Healthcare Corp. (e)		299		7
Texas Instruments, Inc.		3,596		374
Textron, Inc.		638		38
Thermo Fisher Scientific, Inc.		983		203
Tiffany & Co.		344		34
Time Warner, Inc.		2,345		222
TJX Cos., Inc. (The)		1,468		120
Travelers Cos., Inc. (The)		300		42
TripAdvisor, Inc. (e)		337		14
Twenty-First Century Fox, Inc., Class A		5,240		192
Twenty-First Century Fox, Inc., Class B		947		34
Tyson Foods, Inc., Class A		954		70
Union Pacific Corp.		1,492		201
United Parcel Service, Inc., Class B		1,155		121
United States Steel Corp.		380		13
United Technologies Corp.		959		121
UnitedHealth Group, Inc.		1,712		366
Urban Edge Properties REIT		326		7
Urban Outfitters, Inc. (e)		363		13
US Bancorp		4,936		249
Valero Energy Corp.		1,215		113
Varex Imaging Corp. (e)		284		10
Varian Medical Systems, Inc. (e)		290		36
Vectrus, Inc. (e)		15		1
Ventas, Inc. REIT		316		16
Verisk Analytics, Inc. (e)		855		89
Veritiv Corp. (e)		17		1
Verizon Communications, Inc.		20,546		982
Versum Materials, Inc.		296		11
Vertex Pharmaceuticals, Inc. (e)		311		51
VF Corp.		998		74
Viacom, Inc., Class B		1,420		44
Visa, Inc., Class A		4,103		491
Vornado Realty Trust REIT		317		21
Walgreens Boots Alliance, Inc.		3,507		230
Walmart, Inc.		7,128		634
Walt Disney Co. (The)		3,295		331
Washington Prime Group, Inc. REIT		891		6
Waste Management, Inc.		1,391		117
Waters Corp. (e)		327		65
Weatherford International PLC (e)		1,461		3
WEC Energy Group, Inc.		921		58
Wells Fargo & Co.		13,315		698
Welltower, Inc. REIT		290		16
Western Digital Corp.		358		33
Western Union Co. (The)		1,800		35
WestRock Co.		294		19
Weyerhaeuser Co. REIT		1,105		39

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Williams Cos., Inc. (The)		2,598	$	65
Worldpay, Inc., Class A (e)		590		48
WPX Energy, Inc. (e)		1,398		21
WW Grainger, Inc.		368		104
Wyndham Worldwide Corp.		317		36
Wynn Resorts Ltd.		311		57
Xcel Energy, Inc.		1,447		66
Xerox Corp.		591		17
Xilinx, Inc.		625		45
Xylem, Inc.		651		50
Yum! Brands, Inc.		911		78
Zimmer Biomet Holdings, Inc.		649		71
Zions Bancorporation		328		17
Zoetis, Inc.		2,925		244
				59,466
Total Common Stocks (Cost $100,038)				127,715
	No. of Rights
Right (0.0%)
United Kingdom (0.0%)
Provident Financial PLC (e) (Cost $8)		451		2
	No. of Warrants
Warrant (0.0%)
France (0.0%)
CGG SA, expires 2/21/22 (e) (Cost $—)		59		—	@
	Shares
Short-Term Investments (7.3%)
Investment Company (5.2%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $16,979)		16,979,162		16,979
	Face Amount (000)
U.S. Treasury Security (2.1%)
U.S. Treasury Bill,
1.80%, 8/9/18 (h)(i) (Cost $6,832)	$	6,876		6,831
Total Short-Term Investments (Cost $23,811)				23,810
Total Investments (100.6%) (Cost $293,673) (j)(k)(l)				327,502
Liabilities in Excess of Other Assets (–0.6%)				(1,893	)
Net Assets (100.0%)			$	325,609

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.

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(a)  Security is subject to delayed delivery.

(b)  Floating or Variable rate securities: The rates disclosed are as of March 29, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Consolidated Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Consolidated Portfolio of Investments.

(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 29, 2018.

(e)  Non-income producing security.

(f)  Security has been deemed illiquid at March 29, 2018.

(g)  At March 29, 2018, 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.

(h)  Rate shown is the yield to maturity at March 29, 2018.

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

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

(k)  The approximate fair value and percentage of net assets, $62,279,000 and 19.1%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to Consolidated Financial Statements.

(l)  At March 29, 2018, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $43,833,000 and the aggregate gross unrealized depreciation is approximately $8,675,000, resulting in net unrealized appreciation of approximately $35,158,000.

@  Value is less than $500.

ADR  American Depositary Receipt.

CDI  CHESS Depositary Interest.

CVA  Certificaten Van Aandelen.

IO  Interest Only.

LIBOR  London Interbank Offered Rate.

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.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at March 29, 2018:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Australia and New Zealand Banking Group	PLN	1,241	$	363	4/26/18	$	1
Bank of America NA	AUD	2,260	$	1,774	4/26/18		38
Bank of America NA	$	1,423	NOK	11,121	4/26/18		(3	)
Bank of America NA	$	164	NZD	224	4/26/18		(2	)
Bank of America NA	$	465	SEK	3,694	4/26/18		(22	)
Barclays Bank PLC	MYR	21	$	5	4/26/18		(—	@)
Barclays Bank PLC	$	3	CAD	5	4/26/18		—	@
Barclays Bank PLC	$	217	JPY	23,000	4/26/18		(1	)
Barclays Bank PLC	$	901	JPY	95,006	4/26/18		(7	)
Barclays Bank PLC	$	45	JPY	4,718	4/26/18		(—	@)
Barclays Bank PLC	$	258	SGD	340	4/26/18		2
BNP Paribas SA	$	415	EUR	332	4/26/18		(5	)
Citibank NA	MXN	47,046	$	2,481	4/26/18		(98	)
JPMorgan Chase Bank NA	EUR	480	$	598	4/26/18		6
JPMorgan Chase Bank NA	MXN	6,096	$	326	4/26/18		(8	)
JPMorgan Chase Bank NA	NZD	1,059	$	777	4/26/18		11
JPMorgan Chase Bank NA	RUB	48,383	$	856	4/26/18		13
JPMorgan Chase Bank NA	$	6,396	EUR	5,155	4/26/18		(43	)
JPMorgan Chase Bank NA	$	51	EUR	42	4/26/18		(—	@)
JPMorgan Chase Bank NA	$	3,767	GBP	2,714	4/26/18		45
JPMorgan Chase Bank NA	$	12	GBP	9	4/26/18		—	@
JPMorgan Chase Bank NA	$	1,786	KRW	1,911,008	4/26/18		8
JPMorgan Chase Bank NA	$	12	MXN	233	4/26/18		—	@
Royal Bank of Canada	EUR	687	$	856	4/26/18		9
Royal Bank of Canada	GBP	767	$	1,066	4/26/18		(11	)
Royal Bank of Canada	$	1,355	MXN	25,530	4/26/18		44
UBS AG	CAD	722	$	576	4/26/18		16
UBS AG	$	196	CHF	183	4/26/18		(4	)
UBS AG	$	113	DKK	680	4/26/18		(1	)
UBS AG	$	542	JPY	59,008	4/26/18		14
UBS AG	$	816	PLN	2,751	4/26/18		(12	)
UBS AG	$	399	THB	12,474	4/26/18		—	@
Bank of America NA	CNH	2,059	$	324	6/21/18		(3	)
Bank of America NA	EUR	1,980	$	2,446	6/21/18		(4	)
Bank of America NA	PLN	3,696	$	1,074	6/21/18		(7	)
Bank of America NA	$	1	CHF	1	6/21/18		(—	@)
Bank of Montreal	AUD	58	$	44	6/21/18		—	@
Bank of Montreal	HUF	42,609	$	169	6/21/18		—	@
Bank of Montreal	JPY	105,640	$	999	6/21/18		1
Barclays Bank PLC	AUD	742	$	571	6/21/18		1
Barclays Bank PLC	EUR	7,871	$	9,726	6/21/18		(15	)
Barclays Bank PLC	GBP	209	$	295	6/21/18		—	@
Barclays Bank PLC	GBP	428	$	603	6/21/18		—	@
Barclays Bank PLC	$	8,651	GBP	6,149	6/21/18		4
Barclays Bank PLC	$	610	SGD	803	6/21/18		3
BNP Paribas SA	CAD	404	$	310	6/21/18		(5	)
BNP Paribas SA	JPY	79,514	$	752	6/21/18		1
BNP Paribas SA	RUB	32,619	$	563	6/21/18		(1	)
Citibank NA	AUD	741	$	570	6/21/18		1
Citibank NA	CLP	178,592	$	295	6/21/18		(—	@)
Citibank NA	CZK	7,777	$	377	6/21/18		(1	)
Citibank NA	EUR	5,230	$	6,462	6/21/18		(10	)
Citibank NA	EUR	282	$	349	6/21/18		(—	@)
Citibank NA	JPY	102,549	$	970	6/21/18		1
Citibank NA	KRW	370,755	$	348	6/21/18		(1	)
Citibank NA	THB	9,674	$	311	6/21/18		1
Citibank NA	TRY	1,086	$	269	6/21/18		—	@
Citibank NA	$	2,745	GBP	1,951	6/21/18		1

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (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)
Citibank NA	$	55	ILS	191	6/21/18	$	(—	@)
Commonwealth Bank of Australia	EUR	2,906	$	3,591	6/21/18		(6	)
Commonwealth Bank of Australia	NZD	19	$	13	6/21/18		(—	@)
Commonwealth Bank of Australia	$	63	GBP	45	6/21/18		—	@
Credit Suisse International	EUR	2,018	$	2,493	6/21/18		(4	)
Goldman Sachs International	AUD	5,672	$	4,364	6/21/18		6
Goldman Sachs International	BRL	43,492	$	13,147	6/21/18		62
Goldman Sachs International	BRL	747	$	224	6/21/18		(—	@)
Goldman Sachs International	EUR	5,150	$	6,363	6/21/18		(10	)
Goldman Sachs International	HKD	460	$	59	6/21/18		—	@
Goldman Sachs International	IDR	4,181,766	$	302	6/21/18		(—	@)
Goldman Sachs International	JPY	46,658	$	445	6/21/18		4
Goldman Sachs International	$	8	CHF	8	6/21/18		(—	@)
Goldman Sachs International	$	767	GBP	545	6/21/18		—	@
Goldman Sachs International	ZAR	12,317	$	1,017	6/21/18		(12	)
JPMorgan Chase Bank NA	AUD	290	$	223	6/21/18		—	@
JPMorgan Chase Bank NA	EUR	51	$	63	6/21/18		1
JPMorgan Chase Bank NA	INR	15,292	$	233	6/21/18		1
JPMorgan Chase Bank NA	JPY	83,848	$	793	6/21/18		1
JPMorgan Chase Bank NA	JPY	4,008	$	38	6/21/18		—	@
JPMorgan Chase Bank NA	JPY	94,091	$	885	6/21/18		(4	)
JPMorgan Chase Bank NA	NOK	18,881	$	2,450	6/21/18		36
JPMorgan Chase Bank NA	TWD	9,650	$	335	6/21/18		2
JPMorgan Chase Bank NA	$	1,720	JPY	179,336	6/21/18		(26	)
JPMorgan Chase Bank NA	$	4,320	MXN	82,156	6/21/18		144
JPMorgan Chase Bank NA	$	132	TWD	3,797	6/21/18		(1	)
JPMorgan Chase Bank NA	ZAR	2,014	$	169	6/21/18		—	@
State Street Bank and Trust Co.	AUD	2,479	$	1,907	6/21/18		3
State Street Bank and Trust Co.	DKK	435	$	72	6/21/18		(—	@)
State Street Bank and Trust Co.	EUR	146	$	180	6/21/18		(—	@)
UBS AG	AUD	6,231	$	4,794	6/21/18		7
UBS AG	DKK	2,800	$	464	6/21/18		(—	@)
UBS AG	SEK	2,717	$	333	6/21/18		6
Citibank NA	CZK	8,752	$	428	9/20/18		—	@
Citibank NA	CZK	18,068	$	896	9/20/18		13
Citibank NA	EUR	14,427	$	17,909	9/20/18		(76	)
Citibank NA	$	17,948	CZK	369,164	9/20/18		96
Citibank NA	$	397	EUR	318	9/20/18		—	@
Citibank NA	$	589	EUR	467	9/20/18		(6	)
Citibank NA	$	303	EUR	244	9/20/18		2
						$	196

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Futures Contracts:

The Fund had the following futures contracts open at March 29, 2018:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Long:
Euro Stoxx 50 (Germany)		33	Jun-18	$	—	@	$	1,332		$	(13	)
German Euro BOBL (Germany)		25	Jun-18		2,500			4,038			28
MSCI Singapore Free Index (Singapore)		28	Apr-18		3			842			22
NIKKEI 225 Index (Japan)		26	Jun-18		13			2,624			30
S&P 500 E Mini Index (United States)		235	Jun-18		12			31,055			(606	)
TOPIX Index (Japan)		26	Jun-18		260			4,194			27
U.S. Treasury 10 yr. Ultra Long Bond (United States)		243	Jun-18		24,300			31,556			531
U.S. Treasury 2 yr. Note (United States)		39	Jun-18		7,800			8,292			4
U.S. Treasury Ultra Bond (United States)		39	Jun-18		3,900			6,258			202
Short:
Copper Future (United States)		72	May-18		(1,800	)		(5,446	)		407
German Euro Bund (Germany)		2	Jun-18		(200	)		(392	)		(—	@)
Hang Seng China Enterprises Index (Hong Kong)		103	Apr-18		(5	)		(7,905	)		101
MSCI Emerging Market E Mini (United States)		2	Jun-18		(—	@)		(119	)		2
U.S. Treasury 10 yr. Note (United States)		99	Jun-18		(9,900	)		(11,993	)		(13	)
U.S. Treasury 5 yr. Note (United States)		51	Jun-18		(5,100	)		(5,838	)		(27	)
UK Long Gilt Bond (United Kingdom)		14	Jun-18		(1,400	)		(2,412	)		(39	)
										$	656

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 29, 2018:

Swap Counterparty	Floating Rate Index	Pay/ Receive Floating Rate	Fixed Rate			Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	3 Month KORIBOR	Pay		1.83	%	Quarterly/Quarterly	6/14/27	$	1,400,000	$	(51	)	$	—	$	(51	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		7.32		Monthly/Monthly	10/21/19	MXN	86,921		(27	)		—		(27	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		7.32		Monthly/Monthly	10/21/19		90,721		(28	)		—		(28	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		7.32		Monthly/Monthly	10/21/19		87,231		(27	)		—		(27	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		7.63		Monthly/Monthly	12/5/19		87,188		(2	)		—		(2	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		7.63		Monthly/Monthly	12/5/19		90,094		(2	)		—		(2	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		7.64		Monthly/Monthly	12/5/19		85,437		(1	)		—		(1	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		8.04		Monthly/Monthly	12/19/19		139,558		52			—		52
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		8.04		Monthly/Monthly	12/19/19		113,614		42			—		42
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		8.06		Monthly/Monthly	12/20/19		88,430		34			—		34
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		8.08		Monthly/Monthly	12/20/19		75,802		31			—		31
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		8.07		Monthly/Monthly	12/25/19		67,319		27			—		27
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		8.09		Monthly/Monthly	12/26/19		117,228		50			—		50

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Interest Rate Swap Agreements: (cont'd)

Swap Counterparty	Floating Rate Index	Pay/ Receive Floating Rate	Fixed Rate			Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)			Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		8.10	%	Monthly/Monthly	12/26/19	$	117,229	$	51		$	—		$	51
Morgan Stanley & Co., LLC*	1 Month TIIE	Pay		8.06		Monthly/Monthly	12/27/19		125,871		50			—			50
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.11		Annual/Semi-Annual	8/7/22	CZK	16,265		12			—			12
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.12		Annual/Semi-Annual	8/7/22		119,689		83			—			83
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.06		Annual/Semi-Annual	8/8/22		39,466		33			—			33
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.07		Annual/Semi-Annual	8/14/22		18,802		15			—			15
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.07		Annual/Semi-Annual	8/14/22		39,076		31			—			31
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.06		Annual/Semi-Annual	8/15/22		39,075		32			—			32
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.09		Annual/Semi-Annual	8/15/22		80,491		62			—			62
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.12		Annual/Semi-Annual	8/22/22		19,734		14			—			14
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.10		Annual/Semi-Annual	8/23/22		39,469		30			—			30
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.10		Annual/Semi-Annual	8/23/22		39,469		31			—			31
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.10		Annual/Semi-Annual	8/23/22		39,469		29			—			29
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.12		Annual/Semi-Annual	8/24/22		17,896		13			—			13
Morgan Stanley & Co., LLC*	6 Month PRIBOR	Receive		1.12		Annual/Semi-Annual	8/24/22		39,469		28			—			28
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.45		Semi-Annual/Quarterly	7/17/25	$	3,400		67			—	@		67
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive		7.94		Monthly/Monthly	12/9/27	MXN	35,907		(41	)		—			(41	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive		7.95		Monthly/Monthly	12/9/27		32,125		(37	)		—			(37	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive		8.00		Monthly/Monthly	12/10/27		20,421		(28	)		—			(28	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive		8.01		Monthly/Monthly	12/10/27		89,222		(130	)		—			(130	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive		8.02		Monthly/Monthly	12/10/27		36,977		(52	)		—			(52	)
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay		8.51		Quarterly/Quarterly	12/13/27	ZAR	80,005		421			—			421
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay		8.51		Quarterly/Quarterly	12/13/27		21,345		113			—			113
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive		8.12		Monthly/Monthly	12/15/27	MXN	36,977		(67	)		—			(67	)
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay		8.37		Quarterly/Quarterly	12/15/27	ZAR	6,208		27			—			27
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive		8.12		Monthly/Monthly	12/16/27	MXN	36,977		(72	)		—			(72	)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive		8.14		Monthly/Monthly	12/16/27		36,977		(70	)		—			(70	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Interest Rate Swap Agreements: (cont'd)

Swap Counterparty	Floating Rate Index	Pay/ Receive Floating Rate	Fixed Rate			Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)			Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co., LLC*	1 Month TIIE	Receive		8.11	%	Monthly/Monthly	12/17/27	$	29,501	$	(52	)	$	—		$	(52	)
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay		7.88		Quarterly/Quarterly	1/4/28	ZAR	28,171		48			—			48
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay		7.83		Quarterly/Quarterly	1/19/28		35,025		48			—			48
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay		7.83		Quarterly/Quarterly	1/19/28		11,904		17			—			17
Morgan Stanley & Co., LLC*	3 Month JIBAR	Pay		7.81		Quarterly/Quarterly	1/24/28		21,849		27			—			27
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.74		Semi-Annual/Quarterly	12/21/46	$	640		13			—			13
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.48		Semi-Annual/Quarterly	5/23/47		730		55			—			55
										$	899		$	—	@	$	899

Total Return Swap Agreements:

The Fund had the following total return swap agreements open at March 29, 2018:

Swap Counterparty	Index	Pay/ Receive Total Return of Referenced Index	Floating Rate	Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
Barclays Bank PLC	Barclays Custom Short Elevators Index††	Pay	3 Month USD LIBOR plus 0.25%	Quarterly	3/6/19	$	688	$	22		$	—	$	22
BNP Paribas SA	BNP Custom Short U.S. Machinery Index††	Pay	3 Month USD LIBOR plus 0.25%	Quarterly	11/21/18		621		26			—		26
BNP Paribas SA	BNP Custom Short U.S. Machinery Index††	Pay	3 Month USD LIBOR plus 0.25%	Quarterly	11/21/18		1,546		66			—		66
BNP Paribas SA	BNP Custom Short U.S. Machinery Index††	Pay	3 Month USD LIBOR plus 0.25%	Quarterly	11/21/18		440		13			—		13
BNP Paribas SA	MSCI Emerging Market Index	Receive	3 Month USD LIBOR plus 0.62%	Quarterly	1/24/19		23,650		(1,250	)		—		(1,250	)
Goldman Sachs International	GS Custom Short Non-U.S. Machinery Index††	Pay	3 Month USD LIBOR plus 0.13%	Quarterly	11/23/18		894		62			—		62
Goldman Sachs International	GS Custom Short Non-U.S. Machinery Index††	Pay	3 Month USD LIBOR plus 0.13%	Quarterly	11/23/18		2,398		166			—		166
Goldman Sachs International	GS Custom Short Non-U.S. Machinery Index††	Pay	3 Month USD LIBOR plus 0.13%	Quarterly	11/23/18		660		19			—		19
Goldman Sachs International	GS Custom Short Metals & Mining Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	3/29/19		1,570		23			—		23
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††	Receive	3 Month USD LIBOR plus 0.55%	Quarterly	11/20/18		2,341		(53	)		—		(53	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Total Return Swap Agreements: (cont'd)

Swap Counterparty	Index	Pay/ Receive Total Return of Referenced Index	Floating Rate	Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††	Receive	3 Month USD LIBOR plus 0.42%	Quarterly	11/20/18	$	2,423	$	(93	)	$	—	$	(93	)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††	Receive	3 Month USD LIBOR plus 0.42%	Quarterly	11/20/18		2,432		(93	)		—		(93	)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††	Receive	3 Month USD LIBOR plus 0.65%	Quarterly	11/20/18		3,465		(134	)		—		(134	)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††	Receive	3 Month USD LIBOR plus 0.65%	Quarterly	11/20/18		3,344		(130)			—		(130)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††	Receive	3 Month USD LIBOR plus 0.55%	Quarterly	11/20/18		2,239		(86)			—		(86)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††	Receive	3 Month USD LIBOR plus 0.55%	Quarterly	11/20/18		2,427		(94)			—		(94)
JPMorgan Chase Bank NA	JPM Custom Long U.S. Defensives Index††	Receive	3 Month USD LIBOR plus 0.55%	Quarterly	11/20/18		543		(11)			—		(11)
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††	Pay	3 Month USD LIBOR plus 0.33%	Quarterly	11/20/18		2,570		104			—		104
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††	Pay	3 Month USD LIBOR plus 0.33%	Quarterly	11/20/18		2,582		105			—		105
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††	Pay	3 Month USD LIBOR plus 0.50%	Quarterly	11/20/18		3,778		154			—		154
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††	Pay	3 Month USD LIBOR plus 0.50%	Quarterly	11/20/18		2,818		115			—		115
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††	Pay	3 Month USD LIBOR plus 0.40%	Quarterly	11/20/18		2,410		98			—		98
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††	Pay	3 Month USD LIBOR plus 0.40%	Quarterly	11/20/18		2,304		94			—		94
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††	Pay	3 Month USD LIBOR plus 0.40%	Quarterly	11/20/18		2,357		119			—		119
JPMorgan Chase Bank NA	JPM Custom Short U.S. Cyclicals Index††	Pay	3 Month USD LIBOR plus 0.40%	Quarterly	11/20/18		480		(4)			—		(4)
JPMorgan Chase Bank NA	MSCI Japan Net Total Return Index	Receive	3 Month USD LIBOR plus 0.25%	Quarterly	2/8/19		15,537		73			—		73

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Total Return Swap Agreements: (cont'd)

Swap Counterparty	Index	Pay/ Receive Total Return of Referenced Index	Floating Rate	Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	JPM Custom Short China Autos Index††	Pay	3 Month USD LIBOR plus 0.40%	Quarterly	3/6/19	$	1,000	$	122		$	—	$	122
JPMorgan Chase Bank NA	JPM Custom China Tier 2 Banks Index††	Pay	3 Month USD LIBOR plus 0.10%	Quarterly	3/15/19		2,076		145			—		145
								$	(422	)	$	—	$	(422	)

††  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 Custom Short Elevators Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
Barclays Custom Short Elevators Index
Fujitec Co., Ltd.		27,700	$	365		2.40	%
Kone Oyj		157,078		7,825		51.45
Schindler Holding AG		31,545		6,790		44.64
Yungtay Engineering Co., Ltd.		121,000		229		1.51
Total			$	15,209		100.00	%

The following table represents the equity basket holdings underlying the total return swap with BNP Custom Short U.S. Machinery Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
BNP Custom Short U.S. Machinery Index
AGCO Corp.		3,061	$	198		1.52	%
Caterpillar, Inc.		22,821		3,363		25.78
Cummins, Inc.		6,140		995		7.63
Deere & Co.		12,450		1,934		14.82
Dover Corp.		5,975		587		4.50
Flowserve Corp.		5,050		219		1.68
Illinois Tool Works, Inc.		13,111		2,054		15.75
Ingersoll-Rand PLC		9,543		816		6.26
PACCAR, Inc.		13,155		870		6.67
Parker-Hannifin Corp.		5,113		874		6.70
Pentair PLC		6,986		476		3.65
SPX Corp.		1,626		53		0.40
SPX FLOW, Inc.		1,599		79		0.60
Xylem, Inc.		6,850		527		4.04
Total			$	13,045		100.00	%

The following table represents the equity basket holdings underlying the total return swap with GS Custom Short Non-U.S. Machinery Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
GS Custom Short Non-U.S. Machinery Index
Alfa Laval AB		915	$	22		2.19	%
Atlas Copco AB		2,617		113		11.48
CNH Industrial N.V.		3,009		37		3.77
CRRC Corp., Ltd.		103,323		88		8.94
Doosan Infracore Co., Ltd.		447		4		0.42
GEA Group AG		423		18		1.82
Hino Motors Ltd.		1,266		16		1.65
Hitachi Construction Machinery Co., Ltd.		470		18		1.82

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
GS Custom Short Non-U.S. Machinery Index (cont'd)
Hiwin Technologies Corp.		608	$	9		0.88	%
Hyundai Heavy Industries Co., Ltd.		146		19		1.92
Hyundai Mipo Dockyard Co., Ltd.		44		4		0.42
IMI PLC		602		9		0.93
JTEKT Corp.		753		11		1.10
Kawasaki Heavy Industries Ltd.		365		12		1.18
Komatsu Ltd.		2,129		70		7.12
Kone Oyj		1,156		58		5.85
Kubota Corp.		2,719		47		4.79
MAN SE		323		38		3.82
Melrose Industries PLC		4,303		14		1.41
Metso Oyj		332		10		1.06
NGK Insulators Ltd.		719		12		1.24
Samsung Heavy Industries Co., Ltd.		1,298		10		0.98
Sandvik AB		2,767		50		5.12
Schindler Holding AG		233		50		5.09
SMC Corp.		148		59		6.01
Sulzer AG		75		10		0.99
Sumitomo Heavy Industries Ltd.		271		10		1.03
Volvo AB		4,695		86		8.68
Wartsila Oyj Abp		1,307		29		2.93
Weichai Power Co., Ltd.		19,266		22		2.19
Weir Group PLC (The)		496		14		1.41
Yangzijiang Shipbuilding Holdings Ltd.		8,648		8		0.81
Zoomlion Co., Ltd.		24,564		9		0.95
Total			$	986		100.00	%

The following table represents the equity basket holdings underlying the total return swap with GS Custom Short Metals & Mining Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
GS Custom Short Metals & Mining Index
Alumina Ltd.		47,763	$	87		0.87	%
Anglo American PLC		25,893		603		6.06
Antofagasta PLC		7,672		99		1.00
ArcelorMittal		13,071		413		4.15
BHP Billiton Ltd.		62,873		1,361		13.68
BHP Billiton PLC		41,430		815		8.19
BlueScope Steel Ltd.		11,040		128		1.29
Boliden AB		5,331		187		1.88
First Quantum Minerals Ltd.		12,872		180		1.81
Fortescue Metals Group Ltd.		30,653		102		1.02
Freeport-McMoRan, Inc.		26,425		464		4.67
Glencore PLC		241,284		1,197		12.03
Hitachi Metals Ltd.		4,212		49		0.49
JFE Holdings, Inc.		10,217		203		2.04
Kobe Steel Ltd.		6,062		59		0.60
Lundin Mining Corp.		12,868		84		0.85
Maruichi Steel Tube Ltd.		1,104		33		0.34
Mitsubishi Materials Corp.		2,204		65		0.65
Nippon Steel & Sumitomo Metal Corp.		14,863		322		3.24
Norsk Hydro ASA		26,300		154		1.55
Nucor Corp.		6,056		370		3.72
Rio Tinto Ltd.		8,045		449		4.51
Rio Tinto PLC		23,680		1,199		12.05
South32 Ltd.		101,834		252		2.53
Steel Dynamics, Inc.		4,478		198		1.99
Sumitomo Metal Mining Co., Ltdx		4,798		195		1.96
Teck Resources Ltd.		10,992		283		2.84
thyssenkrupp AG		8,457		220		2.21
Turquoise Hill Resources Ltd.		19,966		61		0.61
voestalpine AG		2,216		116		1.17
Total			$	9,948		100.00	%

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

The following table represents the equity basket holdings underlying the total return swap with JPM Custom Long U.S. Defensives Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom Long U.S. Defensives Index
Abbott Laboratories		1,407	$	84		0.86	%
AbbVie, Inc.		1,291		122		1.24
AES Corp.		2,315		26		0.27
Aetna, Inc.		269		45		0.46
Agilent Technologies, Inc.		260		17		0.18
Alexion Pharmaceuticals, Inc.		181		20		0.20
Align Technology, Inc.		58		15		0.15
Allergan PLC		271		46		0.46
Alliant Energy Corp.		810		33		0.34
Altria Group, Inc.		2,694		168		1.70
Ameren Corp.		851		48		0.49
American Electric Power Co., Inc.		1,724		118		1.20
American Water Works Co., Inc.		625		51		0.52
AmerisourceBergen Corp.		131		11		0.11
Amgen, Inc.		591		101		1.02
Anthem, Inc.		213		47		0.47
Archer-Daniels-Midland Co.		790		34		0.35
AT&T, Inc.		38,194		1,362		13.82
Baxter International, Inc.		406		26		0.27
Becton Dickinson & Co.		214		46		0.47
Biogen, Inc.		171		47		0.48
Boston Scientific Corp.		1,111		30		0.31
Bristol-Myers Squibb Co.		1,328		84		0.85
Brown-Forman Corp.		344		19		0.19
Campbell Soup Co.		272		12		0.12
Cardinal Health, Inc.		256		16		0.16
Celgene Corp.		634		57		0.57
Centene Corp.		140		15		0.15
CenterPoint Energy, Inc.		1,511		41		0.42
CenturyLink, Inc.		6,044		99		1.01
Cerner Corp.		255		15		0.15
Church & Dwight Co., Inc.		350		18		0.18
Cigna Corp.		204		34		0.35
Clorox Co. (The)		181		24		0.24
CMS Energy Corp.		989		45		0.45
Coca-Cola Co. (The)		5,391		234		2.38
Colgate-Palmolive Co.		1,237		89		0.90
Conagra Brands, Inc.		584		22		0.22
Consolidated Edison, Inc.		1,086		85		0.86
Constellation Brands, Inc.		241		55		0.56
Cooper Cos., Inc. (The)		40		9		0.09
Costco Wholesale Corp.		616		116		1.18
Coty, Inc.		662		12		0.12
CVS Health Corp.		1,428		89		0.90
Danaher Corp.		495		48		0.49
DaVita, Inc.		124		8		0.08
DENTSPLY SIRONA, Inc.		186		9		0.09
Dominion Energy, Inc.		2,253		152		1.54
Dr. Pepper Snapple Group, Inc.		255		30		0.31
DTE Energy Co.		629		66		0.67
Duke Energy Corp.		2,454		190		1.93
Edison International		1,142		73		0.74
Edwards Lifesciences Corp.		171		24		0.24	��
Eli Lilly & Co.		785		61		0.62
Entergy Corp.		629		50		0.50
Envision Healthcare Corp.		98		4		0.04
Estee Lauder Cos., Inc. (The)		314		47		0.48
Eversource Energy		1,111		65		0.66

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Long U.S. Defensives Index (cont'd)
Exelon Corp.		3,366	$	131		1.33	%
Express Scripts Holding Co.		468		32		0.33
FirstEnergy Corp.		1,558		53		0.54
General Mills, Inc.		810		36		0.37
Gilead Sciences, Inc.		1,058		80		0.81
HCA Healthcare, Inc.		234		23		0.23
Henry Schein, Inc.		129		9		0.09
Hershey Co. (The)		198		20		0.20
Hologic, Inc.		227		8		0.09
Hormel Foods Corp.		379		13		0.13
Humana, Inc.		117		31		0.32
IDEXX Laboratories, Inc.		71		14		0.14
Illumina, Inc.		118		28		0.28
Incyte Corp.		138		11		0.12
Intuitive Surgical, Inc.		91		38		0.38
IQVIA Holdings, Inc.		123		12		0.12
JM Smucker Co. (The)		160		20		0.20
Johnson & Johnson		2,174		279		2.83
Kellogg Co.		349		23		0.23
Kimberly-Clark Corp.		496		55		0.55
Kraft Heinz Co. (The)		838		52		0.53
Kroger Co. (The)		1,260		30		0.31
Laboratory Corp. of America Holdings		82		13		0.13
McCormick & Co., Inc.		167		18		0.18
McKesson Corp.		170		24		0.24
Medtronic PLC		1,097		88		0.89
Merck & Co., Inc.		2,215		121		1.22
Mettler-Toledo International, Inc.		21		12		0.12
Molson Coors Brewing Co.		259		20		0.20
Mondelez International, Inc.		2,117		88		0.90
Monster Beverage Corp.		582		33		0.34
Mylan N.V.		434		18		0.18
NextEra Energy, Inc.		1,641		268		2.72
NiSource, Inc.		1,143		27		0.28
NRG Energy, Inc.		1,054		32		0.33
Patterson Cos., Inc.		67		1		0.02
PepsiCo, Inc.		2,006		219		2.22
PerkinElmer, Inc.		89		7		0.07
Perrigo Co., PLC		107		9		0.09
Pfizer, Inc.		4,834		172		1.74
PG&E Corp.		1,798		79		0.80
Philip Morris International, Inc.		2,181		217		2.20
Pinnacle West Capital Corp.		391		31		0.32
PPL Corp.		2,395		68		0.69
Procter & Gamble Co. (The)		3,581		284		2.88
Public Service Enterprise Group, Inc.		1,774		89		0.90
Quest Diagnostics, Inc.		110		11		0.11
Regeneron Pharmaceuticals, Inc.		62		21		0.22
ResMed, Inc.		115		11		0.11
SCANA Corp.		501		19		0.19
Sempra Energy		880		98		0.99
Southern Co. (The)		3,504		156		1.59
Stryker Corp.		261		42		0.43
Sysco Corp.		682		41		0.41
Thermo Fisher Scientific, Inc.		324		67		0.68
Tyson Foods, Inc.		406		30		0.30
UnitedHealth Group, Inc.		783		168		1.70
Universal Health Services, Inc.		72		9		0.09
Varian Medical Systems, Inc.		74		9		0.09
Verizon Communications, Inc.		25,376		1,213		12.31
Vertex Pharmaceuticals, Inc.		204		33		0.34

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Long U.S. Defensives Index (cont'd)
Walgreens Boots Alliance, Inc.		1,219	$	80		0.81	%
Walmart, Inc.		2,056		183		1.86
Waters Corp.		65		13		0.13
WEC Energy Group, Inc.		1,106		69		0.70
Xcel Energy, Inc.		1,780		81		0.82
Zimmer Biomet Holdings, Inc.		164		18		0.18
Zoetis, Inc.		398		33		0.34
Total			$	9,855		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Custom Short U.S. Cyclicals Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short U.S. Cyclicals Index
3M Co.		696	$	153		1.46	%
Accenture PLC		286		44		0.42
Activision Blizzard, Inc.		350		24		0.22
Acuity Brands, Inc.		49		7		0.07
Adobe Systems, Inc.		229		49		0.47
Advance Auto Parts, Inc.		72		9		0.08
Advanced Micro Devices, Inc.		373		4		0.04
Air Products & Chemicals, Inc.		897		143		1.36
Akamai Technologies, Inc.		79		6		0.05
Alaska Air Group, Inc.		144		9		0.09
Albemarle Corp.		455		42		0.40
Allegion PLC		111		9		0.09
Alliance Data Systems Corp.		22		5		0.04
Alphabet, Inc.		140		144		1.38
Alphabet, Inc.		138		143		1.37
Amazon.com, Inc.		390		564		5.40
American Airlines Group, Inc.		506		26		0.25
AMETEK, Inc.		269		20		0.20
Amphenol Corp.		141		12		0.12
Analog Devices, Inc.		170		15		0.15
ANSYS, Inc.		39		6		0.06
AO Smith Corp.		171		11		0.10
Apple, Inc.		2,392		401		3.84
Applied Materials, Inc.		494		27		0.26
Aptiv PLC		261		22		0.21
Arconic, Inc.		493		11		0.11
Autodesk, Inc.		102		13		0.12
Automatic Data Processing, Inc.		206		23		0.22
AutoZone, Inc.		27		18		0.17
Avery Dennison Corp.		364		39		0.37
Ball Corp.		1,448		58		0.55
Best Buy Co., Inc.		260		18		0.17
Boeing Co. (The)		648		212		2.03
Booking Holdings, Inc.		48		100		0.95
BorgWarner, Inc.		194		10		0.09
Broadcom, Inc.		188		44		0.42
CA, Inc.		146		5		0.05
Cadence Design Systems, Inc.		130		5		0.05
CarMax, Inc.		179		11		0.11
Carnival Corp.		399		26		0.25
Caterpillar, Inc.		690		102		0.97
CBS Corp.		356		18		0.17
CF Industries Holdings, Inc.		960		36		0.35
CH Robinson Worldwide, Inc.		164		15		0.15
Charter Communications, Inc.		197		61		0.59
Chipotle Mexican Grill, Inc.		25		8		0.08

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short U.S. Cyclicals Index (cont'd)
Cintas Corp.		100	$	17		0.16	%
Cisco Systems, Inc.		2,316		99		0.95
Citrix Systems, Inc.		67		6		0.06
Cognizant Technology Solutions Corp.		274		22		0.21
Comcast Corp.		4,605		157		1.50
Corning, Inc.		418		12		0.11
CSRA, Inc.		76		3		0.03
CSX Corp.		1,066		59		0.57
Cummins, Inc.		184		30		0.29
Darden Restaurants, Inc.		123		10		0.10
Deere & Co.		373		58		0.55
Delphi Technologies PLC		87		4		0.04
Delta Air Lines, Inc.		777		43		0.41
Discovery, Inc.		199		4		0.04
Discovery, Inc.	��	151		3		0.03
DISH Network Corp.		223		8		0.08
Dollar General Corp.		255		24		0.23
Dollar Tree, Inc.		232		22		0.21
Dover Corp.		182		18		0.17
DowDuPont, Inc.		9,605		612		5.85
DR Horton, Inc.		333		15		0.14
DXC Technology Co.		132		13		0.13
Eastman Chemical Co.		596		63		0.60
Eaton Corp PLC		519		41		0.40
eBay, Inc.		461		19		0.18
Ecolab, Inc.		1,072		147		1.40
Electronic Arts, Inc.		143		17		0.17
Emerson Electric Co.		747		51		0.49
Equifax, Inc.		140		16		0.16
Expedia Group, Inc.		120		13		0.13
Expeditors International of Washington I		211		13		0.13
F5 Networks, Inc.		29		4		0.04
Facebook, Inc.		1,098		175		1.68
Fastenal Co.		336		18		0.18
FedEx Corp.		288		69		0.66
Fidelity National Information Services I		154		15		0.14
Fiserv, Inc.		194		14		0.13
FLIR Systems, Inc.		64		3		0.03
Flowserve Corp.		152		7		0.06
Fluor Corp.		163		9		0.09
FMC Corp.		552		42		0.40
Foot Locker, Inc.		121		6		0.05
Ford Motor Co.		3,829		42		0.41
Fortive Corp.		356		28		0.26
Fortune Brands Home & Security, Inc.		180		11		0.10
Freeport-McMoRan, Inc.		5,539		97		0.93
Gap, Inc. (The)		215		7		0.06
Garmin Ltd.		109		6		0.06
Gartner, Inc.		42		5		0.05
General Dynamics Corp.		325		72		0.69
General Electric Co.		10,102		136		1.30
General Motors Co.		1,284		47		0.45
Genuine Parts Co.		144		13		0.12
Global Payments, Inc.		71		8		0.08
Goodyear Tire & Rubber Co. (The)		246		7		0.06
H&R Block, Inc.		205		5		0.05
Hanesbrands, Inc.		357		7		0.06
Harley-Davidson, Inc.		167		7		0.07
Harris Corp.		55		9		0.08
Hasbro, Inc.		111		9		0.09
Hewlett Packard Enterprise Co.		761		13		0.13

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)			Index Weight
JPM Custom Short U.S. Cyclicals Index (cont'd)
Hilton Worldwide Holdings, Inc.		200	$	16			0.15	%
Home Depot, Inc. (The)		1,154		206			1.97
Honeywell International, Inc.		889		128			1.23
HP, Inc.		774		17			0.16
IHS Markit Ltd.		424		20			0.20
Illinois Tool Works, Inc.		361		57			0.54
Ingersoll-Rand PLC		296		25			0.24
Intel Corp.		2,176		113			1.08
International Business Machines Corp.		401		62			0.59
International Flavors & Fragrances, Inc.		325		44			0.43
International Paper Co.		1,700		91			0.87
Interpublic Group of Cos., Inc. (The)		385		9			0.08
Intuit, Inc.		113		20			0.19
Jacobs Engineering Group, Inc.		140		8			0.08
JB Hunt Transport Services, Inc.		100		12			0.11
Johnson Controls International PLC		1,088		38			0.37
Juniper Networks, Inc.		176		4			0.04
Kansas City Southern		123		14			0.13
KLA-Tencor Corp.		73		8			0.08
Kohl's Corp.		165		11			0.10
L Brands, Inc.		244		9			0.09
L3 Technologies, Inc.		91		19			0.18
Lam Research Corp.		75		15			0.15
Leggett & Platt, Inc.		130		6			0.06
Lennar Corp.		199		12			0.11
Lennar Corp.		4		—	@@		—	@@@
LKQ Corp.		302		11			0.11
Lockheed Martin Corp.		292		99			0.94
Lowe's Cos., Inc.		827		73			0.69
LyondellBasell Industries N.V.		1,336		141			1.35
Macy's, Inc.		298		9			0.08
Marriott International, Inc.		306		42			0.40
Martin Marietta Materials, Inc.		259		54			0.51
Masco Corp.		372		15			0.14
Mastercard, Inc.		432		76			0.72
Mattel, Inc.		336		4			0.04
McDonald's Corp.		793		124			1.19
MGM Resorts International		507		18			0.17
Michael Kors Holdings Ltd.		148		9			0.09
Microchip Technology, Inc.		108		10			0.09
Micron Technology, Inc.		516		27			0.26
Microsoft Corp.		3,567		326			3.11
Mohawk Industries, Inc.		62		14			0.14
Monsanto Co.		1,809		211			2.02
Mosaic Co. (The)		1,445		35			0.34
Motorola Solutions, Inc.		75		8			0.08
NetApp, Inc.		125		8			0.07
Netflix, Inc.		423		125			1.19
Newell Brands, Inc.		480		12			0.12
Newmont Mining Corp.		2,195		86			0.82
News Corp.		374		6			0.06
News Corp.		119		2			0.02
Nielsen Holdings PLC		392		12			0.12
NIKE, Inc.		1,286		85			0.82
Nordstrom, Inc.		114		6			0.05
Norfolk Southern Corp.		336		46			0.44
Northrop Grumman Corp.		203		71			0.68
Norwegian Cruise Line Holdings Ltd.		174		9			0.09
Nucor Corp.		1,315		80			0.77
NVIDIA Corp.		278		64			0.62
Omnicom Group, Inc.		226		16			0.16

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short U.S. Cyclicals Index (cont'd)
Oracle Corp.		1,399	$	64		0.61	%
O'Reilly Automotive, Inc.		86		21		0.20
PACCAR, Inc.		410		27		0.26
Packaging Corp. of America		388		44		0.42
Parker-Hannifin Corp.		155		27		0.25
Paychex, Inc.		148		9		0.09
PayPal Holdings, Inc.		523		40		0.38
Pentair PLC		193		13		0.13
PPG Industries, Inc.		1,056		118		1.13
PulteGroup, Inc.		272		8		0.08
PVH Corp.		76		12		0.11
Qorvo, Inc.		59		4		0.04
QUALCOMM, Inc.		684		38		0.36
Quanta Services, Inc.		176		6		0.06
Ralph Lauren Corp.		54		6		0.06
Raytheon Co.		339		73		0.70
Red Hat, Inc.		82		12		0.12
Republic Services, Inc.		267		18		0.17
Robert Half International, Inc.		147		9		0.08
Rockwell Automation, Inc.		150		26		0.25
Roper Technologies, Inc.		119		33		0.32
Ross Stores, Inc.		381		30		0.28
Royal Caribbean Cruises Ltd.		168		20		0.19
salesforce.com, Inc.		316		37		0.35
Seagate Technology PLC		133		8		0.07
Sealed Air Corp.		782		33		0.32
Sherwin-Williams Co. (The)		338		133		1.27
Signet Jewelers Ltd.		59		2		0.02
Skyworks Solutions, Inc.		85		9		0.08
Snap-on, Inc.		67		10		0.09
Southwest Airlines Co.		642		37		0.35
Stanley Black & Decker, Inc.		179		27		0.26
Starbucks Corp.		1,414		82		0.78
Stericycle, Inc.		100		6		0.06
Symantec Corp.		285		7		0.07
Synopsys, Inc.		70		6		0.06
Tapestry, Inc.		277		15		0.14
Target Corp.		535		37		0.36
TE Connectivity Ltd.		164		16		0.16
Texas Instruments, Inc.		459		48		0.46
Textron, Inc.		309		18		0.17
Tiffany & Co.		100		10		0.09
TJX Cos., Inc. (The)		623		51		0.49
Total System Services, Inc.		78		7		0.06
Tractor Supply Co.		124		8		0.07
TransDigm Group, Inc.		56		17		0.16
TripAdvisor, Inc.		106		4		0.04
Twenty-First Century Fox, Inc.		1,030		38		0.36
Twenty-First Century Fox, Inc.		430		16		0.15
Ulta Beauty, Inc.		57		12		0.11
Under Armour, Inc.		181		3		0.03
Under Armour, Inc.		182		3		0.02
Union Pacific Corp.		934		126		1.20
United Continental Holdings, Inc.		302		21		0.20
United Parcel Service, Inc.		804		84		0.80
United Rentals, Inc.		99		17		0.16
United Technologies Corp.		867		109		1.04
VeriSign, Inc.		40		5		0.05
Verisk Analytics, Inc.		181		19		0.18
VF Corp.		320		24		0.23
Viacom, Inc.		345		11		0.10
Visa, Inc.		847		101		0.97
Vulcan Materials Co.		545		62		0.59
Walt Disney Co. (The)		1,511		152		1.45
Waste Management, Inc.		472		40		0.38

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short U.S. Cyclicals Index (cont'd)
Western Digital Corp.		137	$	13		0.12	%
Western Union Co. (The)		215		4		0.04
WestRock Co.		1,046		67		0.64
Whirlpool Corp.		71		11		0.10
WW Grainger, Inc.		61		17		0.16
Wyndham Worldwide Corp.		101		12		0.11
Wynn Resorts Ltd.		78		14		0.14
Xerox Corp.		99		3		0.03
Xilinx, Inc.		115		8		0.08
Xylem, Inc.		210		16		0.15
Yum! Brands, Inc.		338		29		0.28
Total			$	10,459		100.00	%

@@  Value is less than $500.

@@@  Index weight is less than 0.005%.

The following table represents the equity basket holdings underlying the total return swap with JPM Custom Short China Autos Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom Short China Autos Index
Brilliance China Automotive Holdings Ltd.		8,529,002	$	139,705		20.81	%
Dongfeng Motor Group Co., Ltd.		7,422,636		67,620		10.07
Geely Automobile Holdings Ltd.		13,781,205		311,455		46.39
Great Wall Motor Co., Ltd.		8,636,737		67,971		10.12
Guangzhou Automobile Group Co., Ltd.		5,853,383		84,640		12.61
Total			$	671,391		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Custom China Tier 2 Banks Index as of March 29, 2018:

Security Description	Shares		Value (000)		Index Weight
JPM Custom China Tier 2 Banks Index
Bank of Communications Co., Ltd.		230,551	$	1,418		12.25	%
China CITIC Bank Corp., Ltd.		743,160		3,983		34.41
China Everbright Bank Co., Ltd.		57,105		215		1.86
China Merchants Bank Co., Ltd.		131,691		4,234		36.57
China Minsheng Banking Corp., Ltd.		165,248		1,261		10.89
Chongqing Rural Commercial Bank Co., Ltd.		77,532		466		4.02
Total			$	11,577		100.00	%

@    Value is less than $500.

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

JIBAR  —  Johannesburg Interbank Agreed Rate.

KORIBOR  —  Korea Interbank Offered Rate.

LIBOR  —  London Interbank Offered Rate.

PRIBOR  —  Prague Interbank Offered Rate.

TIIE  —  Interbank Equilibrium Interest Rate.

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CAD  —  Canadian Dollar

CHF  —  Swiss Franc

CLP  —  Chilean Peso

CNH  —  Chinese Yuan Renminbi Offshore

CZK  —  Czech Koruna

DKK  —  Danish Krone

EUR  —  Euro

GBP  —  British Pound

HKD  —  Hong Kong Dollar

HUF  —  Hungarian Forint

IDR  —  Indonesian Rupiah

ILS  —  Israeli Shekel

INR  —  Indian Rupee

JPY  —  Japanese Yen

KRW  —  South Korean Won

MXN  —  Mexican Peso

MYR  —  Malaysian Ringgit

NOK  —  Norwegian Krone

NZD  —  New Zealand Dollar

PLN  —  Polish Zloty

RUB  —  Russian Ruble

SEK  —  Swedish Krona

SGD  —  Singapore Dollar

THB  —  Thai Baht

TRY  —  Turkish Lira

TWD  —  Taiwan Dollar

USD  —  United States Dollar

ZAR  —  South African Rand

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Strategist Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Fixed Income Securities		53.7	%
Common Stocks		39.0
Short-Term Investments		7.3
Total Investments		100.0	%**

**  Does not include open long/short futures contracts with an underlying face amount of approximately $124,296,000 with net unrealized appreciation of approximately $656,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $196,000 and does not include open swap agreements with net unrealized appreciation of approximately $477,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Global Strategist Portfolio

Consolidated Statement of Assets and Liabilities	March 29, 2018 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $276,694)	$	310,523
Investment in Security of Affiliated Issuer, at Value (Cost $16,979)		16,979
Total Investments in Securities, at Value (Cost $293,673)		327,502
Foreign Currency, at Value (Cost $840)		841
Cash		391
Receivable for Variation Margin on Futures Contracts		3,110
Receivable for Investments Sold		2,193
Unrealized Appreciation on Swap Agreements		1,526
Interest and Paydown Receivable		1,244
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		605
Tax Reclaim Receivable		253
Dividends Receivable		195
Receivable for Variation Margin on Swap Agreements		82
Receivable for Swap Agreements Termination		30
Receivable from Affiliate		26
Receivable for Fund Shares Sold		8
Other Assets		92
Total Assets		338,098
Liabilities:
Payable for Investments Purchased		7,010
Unrealized Depreciation on Swap Agreements		1,999
Payable for Fund Shares Redeemed		1,122
Due to Broker		757
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		409
Payable for Advisory Fees		311
Payable for Custodian Fees		142
Payable for Sub Transfer Agency Fees — Class I		7
Payable for Sub Transfer Agency Fees — Class A		119
Payable for Sub Transfer Agency Fees — Class L		10
Payable for Sub Transfer Agency Fees — Class C		1
Payable for Trustees' Fees and Expenses		134
Deferred Capital Gain Country Tax		113
Payable for Professional Fees		84
Payable for Shareholder Services Fees — Class A		51
Payable for Distribution and Shareholder Services Fees — Class L		12
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Transfer Agency Fees — Class I		5
Payable for Transfer Agency Fees — Class A		16
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 Administration Fees		22
Other Liabilities		160
Total Liabilities		12,489
Net Assets	$	325,609
Net Assets Consist Of:
Paid-in-Capital	$	268,607
Distributions in Excess of Net Investment Income		(385	)
Accumulated Net Realized Gain		22,319
Unrealized Appreciation (Depreciation) on:
Investments (Net of $113 of Deferred Capital Gain Country Tax)		33,716
Futures Contracts		656
Swap Agreements		477
Foreign Currency Forward Exchange Contracts		196
Foreign Currency Translations		23
Net Assets	$	325,609

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Global Strategist Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	March 29, 2018 (000)
CLASS I:
Net Assets	$	68,266
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,006,983
Net Asset Value, Offering and Redemption Price Per Share	$	17.04
CLASS A:
Net Assets	$	236,371
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		13,981,576
Net Asset Value, Redemption Price Per Share	$	16.91
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.94
Maximum Offering Price Per Share	$	17.85
CLASS L:
Net Assets	$	19,414
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,156,917
Net Asset Value, Offering and Redemption Price Per Share	$	16.78
CLASS C:
Net Assets	$	1,392
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		83,201
Net Asset Value, Offering and Redemption Price Per Share	$	16.73
CLASS IS:
Net Assets	$	166
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		9,731
Net Asset Value, Offering and Redemption Price Per Share	$	17.04

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Global Strategist Portfolio

Consolidated Statement of Operations	Six Months Ended March 29, 2018 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $42 of Foreign Taxes Withheld)	$	2,502
Dividends from Securities of Unaffiliated Issuers (Net of $95 of Foreign Taxes Withheld)		1,291
Dividends from Security of Affiliated Issuer (Note G)		173
Total Investment Income		3,966
Expenses:
Advisory Fees (Note B)		758
Shareholder Services Fees — Class A (Note D)		304
Distribution and Shareholder Services Fees — Class L (Note D)		76
Distribution and Shareholder Services Fees — Class C (Note D)		7
Sub Transfer Agency Fees — Class I		26
Sub Transfer Agency Fees — Class A		110
Sub Transfer Agency Fees — Class L		6
Sub Transfer Agency Fees — Class C		1
Administration Fees (Note C)		134
Custodian Fees (Note F)		118
Professional Fees		89
Pricing Fees		65
Registration Fees		32
Shareholder Reporting Fees		30
Transfer Agency Fees — Class I (Note E)		5
Transfer Agency Fees — Class A (Note E)		17
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Trustees' Fees and Expenses		7
Other Expenses		21
Total Expenses		1,810
Waiver of Advisory Fees (Note B)		(58	)
Rebate from Morgan Stanley Affiliate (Note G)		(25	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(20	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Net Expenses		1,705
Net Investment Income		2,261
Realized Gain (Loss):
Investments Sold (Net of $53 of Capital Gain Country Tax)		22,593
Foreign Currency Forward Exchange Contracts		336
Foreign Currency Transactions		(626	)
Futures Contracts		5,239
Swap Agreements		(2,392	)
Net Realized Gain		25,150
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $113)		(14,996	)
Foreign Currency Forward Exchange Contracts		(376	)
Foreign Currency Translations		10
Futures Contracts		(85	)
Swap Agreements		395
Net Change in Unrealized Appreciation (Depreciation)		(15,052	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		10,098
Net Increase in Net Assets Resulting from Operations	$	12,359

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Global Strategist Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	2,261		$	5,362
Net Realized Gain		25,150			22,118
Net Change in Unrealized Appreciation (Depreciation)		(15,052	)		10,072
Net Increase in Net Assets Resulting from Operations		12,359			37,552
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(810	)		(830	)
Net Realized Gain		(3,472	)		—
Class A:
Net Investment Income		(2,086	)		(1,982	)
Net Realized Gain		(12,398	)		—
Class L:
Net Investment Income		(62	)		(40	)
Net Realized Gain		(1,025	)		—
Class C:
Net Investment Income		(1	)		—
Net Realized Gain		(71	)		—
Class IS:
Net Investment Income		(2	)		(2	)
Net Realized Gain		(8	)		—
Total Distributions		(19,935	)		(2,854	)
Capital Share Transactions:(1)
Class I:
Subscribed		3,126			5,495
Distributions Reinvested		4,265			828
Redeemed		(6,499	)		(19,136	)
Class A:
Subscribed		2,889			3,085
Distributions Reinvested		14,203			1,946
Redeemed		(22,683	)		(42,334	)
Class L:
Exchanged		107			843
Distributions Reinvested		1,063			40
Redeemed		(1,980	)		(5,417	)
Class C:
Subscribed		27			92
Distributions Reinvested		72			—
Redeemed		(66	)		(456	)
Class IS:
Subscribed		24			—	@
Distributions Reinvested		9			1
Redeemed		—			(21	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(5,443	)		(55,034	)
Total Decrease in Net Assets		(13,019	)		(20,336	)
Net Assets:
Beginning of Period		338,628			358,964
End of Period (Including Distributions in Excess of Net Investment Income and Accumulated Undistributed Net Investment Income of $(385) and $315, respectively)	$	325,609		$	338,628

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Global Strategist Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		181			342
Shares Issued on Distributions Reinvested		253			54
Shares Redeemed		(375	)		(1,145	)
Net Increase (Decrease) in Class I Shares Outstanding		59			(749	)
Class A:
Shares Subscribed		168			191
Shares Issued on Distributions Reinvested		849			126
Shares Redeemed		(1,321	)		(2,651	)
Net Decrease in Class A Shares Outstanding		(304	)		(2,334	)
Class L:
Shares Exchanged		6			55
Shares Issued on Distributions Reinvested		64			3
Shares Redeemed		(115	)		(346	)
Net Decrease in Class L Shares Outstanding		(45	)		(288	)
Class C:
Shares Subscribed		2			6
Shares Issued on Distributions Reinvested		4			—
Shares Redeemed		(4	)		(29	)
Net Increase (Decrease) in Class C Shares Outstanding		2			(23	)
Class IS:
Shares Subscribed		1			—	@@
Shares Issued on Distributions Reinvested		1			—	@@
Shares Redeemed		—			(1	)
Net Increase (Decrease) in Class IS Shares Outstanding		2			(1	)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Consolidated Financial Highlights

Global Strategist Portfolio

	Class I
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)(2)			2015(2)			2014(2)			2013(2)
Net Asset Value, Beginning of Period	$	17.48		$	15.79		$	14.58		$	16.99		$	16.96		$	15.22
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.14			0.30			0.28			0.28			0.34			0.35
Net Realized and Unrealized Gain (Loss)		0.53			1.57			0.95			(1.73	)		1.15			1.44
Total from Investment Operations		0.67			1.87			1.23			(1.45	)		1.49			1.79
Distributions from and/or in Excess of:
Net Investment Income		(0.21	)		(0.18	)		—			(0.35	)		(0.23	)		(0.05	)
Net Realized Gain		(0.90	)		—			(0.02	)		(0.61	)		(1.23	)		—
Total Distributions		(1.11	)		(0.18	)		(0.02	)		(0.96	)		(1.46	)		(0.05	)
Net Asset Value, End of Period	$	17.04		$	17.48		$	15.79		$	14.58		$	16.99		$	16.96
Total Return(4)		3.88	%(7)		11.98	%		8.42	%(5)		(8.87	)%		9.37	%		11.79	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	68,266		$	69,017		$	74,158		$	83,930		$	72,952		$	52,170
Ratio of Expenses to Average Net Assets(9)		0.73	%(6)(8)		0.72	%(6)		0.68	%(6)		0.73	%(6)		0.72	%(6)		0.69	%(6)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			N/A			N/A			N/A			0.76	%(6)
Ratio of Net Investment Income to Average Net Assets(9)		1.64	%(6)(8)		1.87	%(6)		1.84	%(6)		1.78	%(6)		1.99	%(6)		2.18	%(6)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(8)		0.02	%		0.01	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		76	%(7)		176	%		103	%		98	%		62	%		107	%
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.83	%(8)		0.85	%		0.81	%		0.83	%		0.83	%		0.82	%
Net Investment Income to Average Net Assets		1.54	%(8)		1.74	%		1.71	%		1.68	%		1.88	%		2.05	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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.
42

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Consolidated Financial Highlights

Global Strategist Portfolio

	Class A
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)(2)			2015(2)			2014(2)			2013(2)
Net Asset Value, Beginning of Period	$	17.32		$	15.64		$	14.50		$	16.88		$	16.88		$	15.18
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.11			0.25			0.23			0.23			0.27			0.42
Net Realized and Unrealized Gain (Loss)		0.53			1.56			0.93			(1.71	)		1.15			1.32
Total from Investment Operations		0.64			1.81			1.16			(1.48	)		1.42			1.74
Distributions from and/or in Excess of:
Net Investment Income		(0.15	)		(0.13	)		—			(0.29	)		(0.19	)		(0.04	)
Net Realized Gain		(0.90	)		—			(0.02	)		(0.61	)		(1.23	)		—
Total Distributions		(1.05	)		(0.13	)		(0.02	)		(0.90	)		(1.42	)		(0.04	)
Net Asset Value, End of Period	$	16.91		$	17.32		$	15.64		$	14.50		$	16.88		$	16.88
Total Return(4)		3.75	%(8)		11.64	%		7.98	%(5)		(9.16	)%		9.02	%		11.49	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	236,371		$	247,483		$	259,999		$	287,438		$	365,642		$	373,559
Ratio of Expenses to Average Net Assets(10)		1.05	%(6)(9)		1.05	%(6)		0.99	%(6)		1.05	%(6)		1.07	%(6)		0.47	%(6)(7)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			N/A			N/A			N/A			1.03	%(6)(7)
Ratio of Net Investment Income to Average Net Assets(10)		1.32	%(6)(9)		1.52	%(6)		1.56	%(6)		1.44	%(6)		1.64	%(6)		2.60	%(6)(7)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(9)		0.02	%		0.01	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		76	%(8)		176	%		103	%		98	%		62	%		107	%
(10) Supplemental Information on the Ratios to Average Net Assets:

Ratios Before Expense Limitation:

Expenses to Average Net Assets	1.10	%(9)	1.12	%	1.11	%	1.11	%	1.14	%	1.11	%
Net Investment Income to Average Net Assets	1.27	%(9)	1.45	%	1.44	%	1.38	%	1.57	%	1.96	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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.
43

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Consolidated Financial Highlights

Global Strategist Portfolio

	Class L
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)(2)			2015(2)			2014(2)			2013(2)
Net Asset Value, Beginning of Period	$	17.15		$	15.47		$	14.41		$	16.79		$	16.78		$	15.15
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.07			0.16			0.15			0.15			0.19			0.23
Net Realized and Unrealized Gain (Loss)		0.51			1.55			0.93			(1.72	)		1.15			1.42
Total from Investment Operations		0.58			1.71			1.08			(1.57	)		1.34			1.65
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		(0.03	)		—			(0.20	)		(0.10	)		(0.02	)
Net Realized Gain		(0.90	)		—			(0.02	)		(0.61	)		(1.23	)		—
Total Distributions		(0.95	)		(0.03	)		(0.02	)		(0.81	)		(1.33	)		(0.02	)
Net Asset Value, End of Period	$	16.78		$	17.15		$	15.47		$	14.41		$	16.79		$	16.78
Total Return(4)		3.44	%(8)		11.07	%		7.47	%(5)		(9.66	)%		8.49	%		10.91	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	19,414		$	20,605		$	23,051		$	24,544		$	28,032		$	29,025
Ratio of Expenses to Average Net Assets(10)		1.52	%(6)(9)		1.57	%(6)		1.52	%(6)		1.58	%(6)		1.57	%(6)		1.42	%(6)(7)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			N/A			N/A			N/A			1.49	%(6)(7)
Ratio of Net Investment Income to Average Net Assets(10)		0.84	%(6)(9)		1.00	%(6)		1.03	%(6)		0.93	%(6)		1.14	%(6)		1.44	%(6)(7)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(9)		0.02	%		0.01	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		76	%(8)		176	%		103	%		98	%		62	%		107	%
(10) Supplemental Information on the Ratios to Average Net Assets:

Ratios Before Expense Limitation:

Expenses to Average Net Assets	1.57	%(9)	1.66	%	1.64	%	1.69	%	1.70	%	1.54	%
Net Investment Income to Average Net Assets	0.79	%(9)	0.91	%	0.91	%	0.82	%	1.01	%	1.32	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 to Average Net Assets would have been 0.06% 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 0.20% 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%.

(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 1.59% for Class L shares. Prior to September 16, 2013, the maximum ratio was 1.49% for Class L shares.

(8)  Not annualized.

(9)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Consolidated Financial Highlights

Global Strategist Portfolio

	Class C
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from April 30, 2015(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)(3)			September 30, 2015(3)
Net Asset Value, Beginning of Period	$	17.08		$	15.42		$	14.41		$	16.03
Income (Loss) from Investment Operations:
Net Investment Income(4)		0.04			0.11			0.10			0.03
Net Realized and Unrealized Gain (Loss)		0.52			1.55			0.93			(1.65	)
Total from Investment Operations		0.56			1.66			1.03			(1.62	)
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)		—			—			—
Net Realized Gain		(0.90	)		—			(0.02	)		—
Total Distributions		(0.91	)		—			(0.02	)		—
Net Asset Value, End of Period	$	16.73		$	17.08		$	15.42		$	14.41
Total Return(5)		3.32	%(8)		10.77	%		7.13	%(6)		(10.11	)%(8)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,392		$	1,386		$	1,613		$	1,363
Ratio of Expenses to Average Net Assets(10)		1.83	%(7)(9)		1.82	%(7)		1.81	%(7)		1.83	%(7)(9)
Ratio of Net Investment Income to Average Net Assets(10)		0.52	%(7)(9)		0.72	%(7)		0.71	%(7)		0.54	%(7)(9)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%(9)		0.02	%		0.01	%		0.01	%(9)
Portfolio Turnover Rate		76	%(8)		176	%		103	%		98	%(8)
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.97	%(9)		2.02	%		1.94	%		2.28	%(9)
Net Investment Income to Average Net Assets		0.38	%(9)		0.52	%		0.58	%		0.09	%(9)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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.
45

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Consolidated Financial Highlights

Global Strategist Portfolio

	Class IS
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from May 29, 2015(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)(3)			September 30, 2015(3)
Net Asset Value, Beginning of Period	$	17.49		$	15.79		$	14.59		$	15.97
Income (Loss) from Investment Operations:
Net Investment Income(4)		0.15			0.31			0.26			0.09
Net Realized and Unrealized Gain (Loss)		0.51			1.57			0.96			(1.47	)
Total from Investment Operations		0.66			1.88			1.22			(1.38	)
Distributions from and/or in Excess of:
Net Investment Income		(0.21	)		(0.18	)		—			—
Net Realized Gain		(0.90	)		—			(0.02	)		—
Total Distributions		(1.11	)		(0.18	)		(0.02	)		—
Net Asset Value, End of Period	$	17.04		$	17.49		$	15.79		$	14.59
Total Return(5)		3.85	%(9)		12.08	%		8.42	%(6)		(8.70	)%(9)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	166		$	137		$	143		$	9
Ratio of Expenses to Average Net Assets(11)		0.70	%(7)(10)		0.69	%(7)		0.70	%(7)		0.71	%(7)(10)
Ratio of Net Investment Income to Average Net Assets(11)		1.69	%(7)(10)		1.88	%(7)		1.68	%(7)		1.66	%(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(10)		0.02	%		0.01	%		0.00	%(8)(10)
Portfolio Turnover Rate		76	%(9)		176	%		103	%		98	%(9)
(11) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.79	%(10)		2.17	%		5.44	%		16.27	%(10)
Net Investment Income (Loss) to Average Net Assets		0.60	%(10)		0.40	%		(3.06	)%		(13.90	)%(10)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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)  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.
46

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

The Fund has suspended offering Class L shares for sale to all investors. Class L shareholders of the Fund do not have the option to purchasing additional Class L shares. However, existing Class L shareholders may invest in additional Class L shares 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 29, 2018, the Subsidiary represented approximately $31,647,000 or approximately 9.72% 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. 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. 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) 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

47

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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. 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; (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) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (7) 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 (8) 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"),

48

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018:

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	$	—	$	213	$	—		$	213
Agency Fixed Rate Mortgages		—		8,467		—			8,467
Asset-Backed Securities		—		328		—			328
Collateralized Mortgage Obligations — Agency Collateral Series		—		170		—			170
Commercial Mortgage- Backed Securities		—		2,738		—			2,738
Corporate Bonds		—		38,126		—			38,126
Mortgages — Other		—		1,299		—			1,299
Sovereign		—		91,981		—			91,981
U.S. Treasury Securities		—		32,653		—			32,653
Total Fixed Income Securities		—		175,975		—			175,975
Common Stocks
Aerospace & Defense		1,040		809		—			1,849
Air Freight & Logistics		326		229		—			555
Airlines		20		88		—			108
Auto Components		123		414		—			537
Automobiles		36		2,405		—			2,441
Banks		6,001		9,934		—			15,935
Beverages		900		1,163		—			2,063
Biotechnology		1,211		470		—			1,681
Building Products		60		954		—			1,014
Capital Markets		2,003		2,176		—			4,179
Chemicals		933		1,666		—			2,599
Commercial Services & Supplies		312		355		—			667
Communications Equipment		784		229		—			1,013
Construction & Engineering		75		2,856		—			2,931
Construction Materials		—		589		—			589
Consumer Finance		9,901		6		—			9,907
Containers & Packaging		214		54		—			268
Distributors		21		—		—			21
Diversified Consumer Services		29		—		—			29
Diversified Financial Services		126		398		—			524
Diversified Telecommunication Services		1,595		1,569		—			3,164
Electric Utilities		976		852		—			1,828
Electrical Equipment		340		883		—			1,223
Electronic Equipment, Instruments & Components		189		89		—			278
Energy Equipment & Services		508		104		—	†		612	†
Equity Real Estate Investment Trusts (REITs)		1,411		756		—			2,167

49

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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)
Food & Staples Retailing	$	1,731	$	704		$	—		$	2,435
Food Products		591		1,733			—			2,324
Gas Utilities		25		143			—			168
Health Care Equipment & Supplies		1,547		489			—			2,036
Health Care Providers & Services		1,499		326			—			1,825
Health Care Technology		54		—			—			54
Hotels, Restaurants & Leisure		1,247		1,564			—			2,811
Household Durables		—		249			—			249
Household Products		931		477			—			1,408
Independent Power & Renewable Electricity Producers		4		38			—			42
Industrial Conglomerates		558		709			—			1,267
Information Technology Services		2,338		1,983			—			4,321
Insurance		792		2,993			—			3,785
Internet & Direct Marketing Retail		2,032		26			—			2,058
Internet Software & Services		1,522		68			—			1,590
Leisure Products		32		—			—			32
Life Sciences Tools & Services		402		105			—			507
Machinery		918		811			—			1,729
Marine		—		119			—			119
Media		1,790		575			—			2,365
Metals & Mining		490		1,782	†		—			2,272	†
Multi-Line Retail		306		74			—			380
Multi-Utilities		624		660			—			1,284
Oil, Gas & Consumable Fuels		3,285		3,278			—			6,563
Paper & Forest Products		27		174			—			201
Personal Products		158		990			—			1,148
Pharmaceuticals		1,915		3,658			—			5,573
Professional Services		356		2,215			—			2,571
Real Estate Management & Development		97		758			—			855
Road & Rail		940		644			—			1,584
Semiconductors & Semiconductor Equipment		2,207		546			—	@		2,753
Software		2,495		604			—			3,099
Specialty Retail		1,006		256			—			1,262
Tech Hardware, Storage & Peripherals		3,257		—			—			3,257
Textiles, Apparel & Luxury Goods		284		1,199			—			1,483
Thrifts & Mortgage Finance		19		—			—			19
Tobacco		506		739			—			1,245
Trading Companies & Distributors		196		479			—			675
Transportation Infrastructure		—		1,638			—			1,638

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Water Utilities	$	—		$	55		$	—		$	55
Wireless Telecommunication Services		121			370			—			491
Total Common Stocks		65,436			62,279	†		—	@†		127,715	†
Right		2			—			—			2
Warrant		—	@		—			—			—	@
Short-Term Investments
Investment Company		16,979			—			—			16,979
U.S. Treasury Security		—			6,831			—			6,831
Total Short-Term Investments		16,979			6,831			—			23,810
Foreign Currency Forward Exchange Contracts		—			605			—			605
Futures Contracts		1,354			—			—			1,354
Interest Rate Swap Agreements		—			1,586			—			1,586
Total Return Swap Agreements		—			1,526			—			1,526
Total Assets		83,771			248,802	†		—	@†		332,573	†
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(409	)		—			(409	)
Futures Contracts		(698	)		—			—			(698	)
Interest Rate Swap Agreements		—			(687	)		—			(687	)
Total Return Swap Agreements		—			(1,948	)		—			(1,948	)
Total Liabilities		(698	)		(3,044	)		—			(3,742	)
Total	$	83,073		$	245,758	†	$	—	@†	$	328,831	†

@  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 29, 2018, securities with a total value of approximately $58,283,000 transferred from Level 1 to Level 2. Securities that were valued using unadjusted quoted prices at September 30, 2017, were valued using other significant observable inputs at March 29, 2018. At March 29, 2018, the fair value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

50

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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

	Common Stocks (000)
Beginning Balance	$	—	@†
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		30
Realized gains (losses)		(30	)
Ending Balance	$	—	@†
Net change in unrealized appreciation (depreciation) from investments still held as of March 29, 2018	$	(—	@)

@ 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 hedging, risk management, portfolio management or to

51

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 ("SEC") 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

52

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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.

53

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

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 29, 2018:

	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	$	605
Futures Contract	Variation Margin on Futures Contracts	Commodity Risk		407	(a)
Futures Contracts	Variation Margin on Futures Contracts	Equity Risk		182	(a)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		765	(a)
Swap Agreements	Unrealized Appreciation on Swap Agreements	Equity Risk		1,526
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		1,586	(a)
Total			$	5,071
	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	$	(409	)
Futures Contracts	Variation Margin on Futures Contracts	Equity Risk		(619	)(a)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		(79	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Equity Risk		(1,948	)
Swap Agreement	Unrealized Depreciation on Swap Agreement	Interest Rate Risk		(51	)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		(636	)(a)
Total			$	(3,742	)

(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.

54

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	336
Commodity Risk	Futures Contracts		(511	)
Equity Risk	Futures Contracts		6,496
Interest Rate Risk	Futures Contracts		(746	)
Equity Risk	Swap Agreements		(2,527	)
Interest Rate Risk	Swap Agreements		135
Total		$	3,183
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(376	)
Commodity Risk	Futures Contracts		383
Equity Risk	Futures Contracts		(965	)
Interest Rate Risk	Futures Contracts		497
Equity Risk	Swap Agreements		(296	)
Interest Rate Risk	Swap Agreements		691
Total		$	(66	)

At March 29, 2018, 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(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	605	$	(409	)
Swap Agreements		1,526		(1,999	)
Total	$	2,131	$	(2,408	)

(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 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 29, 2018:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received(d) (000)			Net Amount (not less than $0) (000)
Australia and New Zealand Banking Group	$	1		$	—		$	—		$	1
Bank of America NA		38			(38	)		—			0
Bank of Montreal		1			—			—			1
Barclays Bank PLC		32			(10	)		—			22
BNP Paribas SA		106			(106	)		—			0
Citibank NA		115			(115	)		—			0
Commonwealth Bank of Australia		—	@		(—	@)		—			0
Goldman Sachs International		342			(22	)		(320	)		0
JPMorgan Chase Bank NA		1,397			(831	)		(437	)		129
Royal Bank of Canada		53			(11	)		—			42
State Street Bank and Trust Co.		3			(—	@)		—			3
UBS AG		43			(17	)		—			26
Total	$	2,131		$	(1,150	)	$	(757	)	$	224

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

55

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Bank of America NA	$	41		$	(38	)	$	—	$	3
Barclays Bank PLC		23			(10	)		—		13
BNP Paribas SA		1,261			(106	)		—		1,155
Citibank NA		192			(115	)		—		77
Commonwealth Bank of Australia		6			(—	@)		—		6
Credit Suisse International		4			—			—		4
Goldman Sachs International		22			(22	)		—		0
JPMorgan Chase Bank NA		831			(831	)		—		0
Royal Bank of Canada		11			(11	)				0
State Street Bank and Trust Co.		—	@		(—	@)		—		0
UBS AG		17			(17	)		—		0
Total	$	2,408		$	(1,150	)	$	—	$	1,258

@ Amount is less than $500.

For the six months ended March 29, 2018, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	237,122,000
Futures Contracts:
Average monthly original value	$	195,583,000
Swap Agreements:
Average monthly notional amount	$	142,646,000

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 in-

crease 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: Dividends 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.

56

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018, approximately $58,000 of advisory fees were waived and approximately $22,000 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 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 Trust pays BFDS a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust. Effective January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

F. Custodian Fees: State Street (the "Custodian") also 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 29, 2018, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $162,748,000 and $164,757,000, respectively. For the six months ended March 29, 2018, purchases and sales of long-term U.S. Government securities were approximately $9,986,000 and $4,340,000, respectively.

57

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018, 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 share of the affiliated investments companies during the six months ended March 29, 2018 are as follows:

Affiliated Investment Company	Value September 30, 2017 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	39,976	$	98,052	$	121,049	$	173

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 29, 2018 (000)
Liquidity Funds	$	—	$	—	$	16,979

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 29, 2018, 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 consolidated 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, 2017, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Consolidated 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 2017 and 2016 was as follows:

2017 Distributions Paid From:				2016 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	2,854	$	—	$	—	$	425

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

58

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

adjustments for swap transactions, tax adjustments on passive foreign investment companies sold by the Fund and tax adjustments related to the Subsidiary, resulted in the following reclassifications among the components of net assets at September 30, 2017:

Accumulated Undistributed Net Investment Income (000)			Accumulated Undistributed Net Realized Gain (000)		Paid-in- Capital (000)
$	(3,407	)	$	3,407	$	—

At September 30, 2017, 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)
$	2,961	$	16,271

During the year ended September 30, 2017, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $8,100.000.

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 1 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 29, 2018, the Fund did not have any borrowings under the Facility.

J. Other: At March 29, 2018, 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 50.0%.

K. Accounting Pronouncement: In March 2017, FASB issued an Accounting Standard Update, ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the "ASU") which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2018. At this time, management is evaluating the implications of these changes on the consolidated financial statements.

59

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 non-affiliated 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:

  DST Asset Manager Solutions, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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:

DST Asset Manager Solutions, 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 non-affiliated 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.

62

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

Michael J. Key
Vice President

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

DST Asset Manager Solutions, 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 to the SEC's Public Reference Section, Washington, D.C. 20549-1520.

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.

63

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

© 2018 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTGSSAN
2100473 EXP 05.31.19

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

High Yield Portfolio

Semi-Annual Report

March 29, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 fund 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 29, 2018

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 2018

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018 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 10/1/17		Actual Ending Account Value 3/29/18		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	$	1,016.20	$	1,021.69	$	3.27	$	3.28		0.65	%
High Yield Portfolio Class A		1,000.00		1,015.40		1,019.95		5.02		5.04		1.00
High Yield Portfolio Class L		1,000.00		1,014.10		1,018.70		6.28		6.29		1.25
High Yield Portfolio Class C		1,000.00		1,011.90		1,016.40		8.58		8.60		1.71
High Yield Portfolio Class IS		1,000.00		1,016.30		1,021.84		3.12		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 Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments

High Yield Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.6%)
Corporate Bonds (89.7%)
Basic Materials (4.0%)
American Gilsonite Co. 17.00% Cash, 3.41% PIK, 12/31/21 (a)(b)(c)	$	201	$	230
Eldorado Gold Corp. 6.13%, 12/15/20 (a)		500		476
First Quantum Minerals Ltd. 7.50%, 4/1/25 (a)		600		593
Hexion, Inc. 10.00%, 4/15/20		1,000		972
Hudbay Minerals, Inc. 7.25%, 1/15/23 (a)		500		521
IAMGOLD Corp. 7.00%, 4/15/25 (a)		500		513
International Wire Group, Inc. 10.75%, 8/1/21 (a)		750		712
Mercer International, Inc. 5.50%, 1/15/26 (a)		425		423
MSCI, Inc. 4.75%, 8/1/26 (a)		150		149
PQ Corp. 5.75%, 12/15/25 (a)		225		223
Signode Industrial Group Lux SA/ Signode Industrial Group US, Inc. 6.38%, 5/1/22 (a)		650		671
Valvoline, Inc. 5.50%, 7/15/24		200		206
Versum Materials, Inc. 5.50%, 9/30/24 (a)		250		259
				5,948
Communications (6.1%)
Altice France SA 7.38%, 5/1/26 (a)		825		789
Altice Luxembourg SA 7.63%, 2/15/25 (a)		400		344
Block Communications, Inc. 6.88%, 2/15/25 (a)		750		758
Cable One, Inc. 5.75%, 6/15/22 (a)		350		358
CCO Holdings LLC/ CCO Holdings Capital Corp. 5.00%, 2/1/28 (a)		750		707
CommScope Technologies LLC 5.00%, 3/15/27 (a)		400		381
CSC Holdings LLC 5.25%, 6/1/24		500		477
DISH DBS Corp. 7.75%, 7/1/26		250		235
EW Scripps Co. (The) 5.13%, 5/15/25 (a)		700		653
Gray Television, Inc. 5.88%, 7/15/26 (a)		700		682
Intelsat Jackson Holdings SA 8.00%, 2/15/24 (a)		500		527
Lamar Media Corp. 5.75%, 2/1/26		300		312

	Face Amount (000)		Value (000)
MDC Partners, Inc. 6.50%, 5/1/24 (a)	$	664	$	649
Midcontinent Communications/ Midcontinent Finance Corp. 6.88%, 8/15/23 (a)		500		528
Sprint Communications, Inc. 6.00%, 11/15/22		750		738
T-Mobile USA, Inc. 5.38%, 4/15/27		375		379
Virgin Media Secured Finance PLC 5.50%, 8/15/26 (a)		450		438
				8,955
Consumer, Cyclical (17.3%)
Air Canada 7.75%, 4/15/21 (a)		500		549
American Greetings Corp. 7.88%, 2/15/25 (a)		500		506
Aramark Services, Inc. 4.75%, 6/1/26		250		243
Aston Martin Capital Holdings Ltd. 6.50%, 4/15/22 (a)		400		418
AV Homes, Inc. 6.63%, 5/15/22		500		511
Beacon Roofing Supply, Inc. 6.38%, 10/1/23		350		369
Beazer Homes USA, Inc., 5.88%, 10/15/27		425		396
8.75%, 3/15/22		500		540
Boyne USA, Inc. 7.25%, 5/1/25 (a)(d)		680		701
Carrols Restaurant Group, Inc. 8.00%, 5/1/22		525		549
CCM Merger, Inc. 6.00%, 3/15/22 (a)		500		506
Century Communities, Inc. 5.88%, 7/15/25		675		645
Cumberland Farms, Inc. 6.75%, 5/1/25 (a)		550		573
Downstream Development Authority of the Quapaw Tribe of Oklahoma 10.50%, 2/15/23 (a)		500		515
Eldorado Resorts, Inc. 6.00%, 4/1/25		500		510
EMI Music Publishing Group North America Holdings, Inc. 7.63%, 6/15/24 (a)		550		597
FelCor Lodging LP 6.00%, 6/1/25		250		259
Ferrellgas LP/Ferrellgas Finance Corp. 6.75%, 1/15/22		500		476
Gibson Brands, Inc. 8.88%, 8/1/18 (a)		900		720
Global Partners LP/GLP Finance Corp., 6.25%, 7/15/22		750		750
7.00%, 6/15/23		115		116
Golden Nugget, Inc. 8.75%, 10/1/25 (a)		600		624

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (cont'd)
Hanesbrands, Inc. 4.88%, 5/15/26 (a)	$	250	$	244
IRB Holding Corp. 6.75%, 2/15/26 (a)		445		437
JC Penney Corp., Inc.
5.65%, 6/1/20		4		4
KFC Holding Co./Pizza Hut Holdings LLC/ Taco Bell of America LLC 5.00%, 6/1/24 (a)		250		249
Lions Gate Entertainment Corp. 5.88%, 11/1/24 (a)		400		418
Mattamy Group Corp. 6.88%, 12/15/23 (a)		400		413
Meritor, Inc. 6.25%, 2/15/24		500		522
Nathan's Famous, Inc. 6.63%, 11/1/25 (a)		900		909
National CineMedia LLC 5.75%, 8/15/26		750		681
Navistar International Corp. 6.63%, 11/1/25 (a)		625		627
Neiman Marcus Group Ltd., LLC 8.75% Cash, 9.50% PIK, 10/15/21 (a)(b)		367		236
New Home Co., Inc. (The) 7.25%, 4/1/22		500		521
Party City Holdings, Inc. 6.13%, 8/15/23 (a)		500		512
Rite Aid Corp. 6.13%, 4/1/23 (a)		750		758
Rivers Pittsburgh Borrower LP/ Rivers Pittsburgh Finance Corp. 6.13%, 8/15/21 (a)		850		822
Sally Holdings LLC/Sally Capital, Inc. 5.63%, 12/1/25		500		497
Silversea Cruise Finance Ltd. 7.25%, 2/1/25 (a)		750		797
Sonic Automotive, Inc. 5.00%, 5/15/23		500		478
Speedway Motorsports, Inc. 5.13%, 2/1/23		350		350
Sugarhouse HSP Gaming Prop Mezz LP/ Sugarhouse HSP Gaming Finance Corp. 5.88%, 5/15/25 (a)		800		764
Tempur Sealy International, Inc. 5.50%, 6/15/26		500		482
Titan International, Inc. 6.50%, 11/30/23 (a)		750		774
Tops Holding II Corp. 8.75%, 6/15/18 (e)(f)		175		130
VistaJet Malta Finance PLC/ VistaJet Co., Finance LLC 7.75%, 6/1/20 (a)		950		924
William Lyon Homes, Inc. 6.00%, 9/1/23 (a)		650		651
Williams Scotsman International, Inc. 7.88%, 12/15/22 (a)		800		829

	Face Amount (000)		Value (000)
Wolverine World Wide, Inc. 5.00%, 9/1/26 (a)	$	500	$	489
				25,591
Consumer, Non-Cyclical (14.8%)
Acadia Healthcare Co., Inc., 5.13%, 7/1/22		250		251
5.63%, 2/15/23		250		254
ACCO Brands Corp. 5.25%, 12/15/24 (a)		500		504
Ahern Rentals, Inc. 7.38%, 5/15/23 (a)		750		731
Albertsons Cos., LLC/Safeway, Inc./ New Albertson's, Inc./Albertson's LLC 5.75%, 3/15/25		450		386
APTIM Corp 7.75%, 6/15/25 (a)		750		653
APX Group, Inc. 7.63%, 9/1/23		500		523
Beverages & More, Inc. 11.50%, 6/15/22 (a)		750		692
Central Garden & Pet Co. 5.13%, 2/1/28		350		333
Chobani LLC/Chobani Finance Corp., Inc. 7.50%, 4/15/25 (a)		525		543
Clearwater Seafoods, Inc. 6.88%, 5/1/25 (a)		300		288
Eagle Holding Co., II LLC 7.63% Cash, 8.34% PIK, 5/15/22 (a)(b)		200		202
Emeco Pty Ltd., Series B 9.25%, 3/31/22		837		905
Endo Dac/Endo Finance LLC/ Endo Finco, Inc. 6.00%, 7/15/23 (a)		950		722
Envision Healthcare Corp. 5.63%, 7/15/22		400		404
FAGE International SA/ FAGE USA Dairy Industry, Inc. 5.63%, 8/15/26 (a)		500		466
First Quality Finance Co., Inc. 5.00%, 7/1/25 (a)		730		701
Flexi-Van Leasing, Inc. 10.00%, 2/15/23 (a)		640		637
Great Lakes Dredge & Dock Corp. 8.00%, 5/15/22		750		771
HCA, Inc. 5.25%, 6/15/26		250		254
Hertz Corp. (The), 5.88%, 10/15/20		350		349
7.63%, 6/1/22 (a)		250		254
Jaguar Holding Co. II/ Pharmaceutical Product Development LLC 6.38%, 8/1/23 (a)		500		507
Lamb Weston Holdings, Inc. 4.88%, 11/1/26 (a)		300		298
Live Nation Entertainment, Inc. 4.88%, 11/1/24 (a)		350		342

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Non-Cyclical (cont'd)
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC 5.50%, 4/15/25 (a)	$	750	$	586
Michael Baker International LLC 8.75%, 3/1/23 (a)		800		772
MPH Acquisition Holdings LLC 7.13%, 6/1/24 (a)		150		155
NVA Holdings, Inc. 6.88%, 4/1/26 (a)		500		505
Pinnacle Foods Finance LLC/ Pinnacle Foods Finance Corp. 5.88%, 1/15/24		450		467
Pinnacle Operating Corp. 9.00%, 11/15/20 (a)		740		640
Polaris Intermediate Corp. 8.50% Cash, 8.50% PIK, 12/1/22 (a)(b)		375		383
Quintiles IMS, Inc. 4.88%, 5/15/23 (a)		250		256
Select Medical Corp. 6.38%, 6/1/21		500		509
Service Corp. International 4.63%, 12/15/27		500		484
Simmons Foods, Inc. 5.75%, 11/1/24 (a)		600		545
Spectrum Brands, Inc. 5.75%, 7/15/25		250		256
Surgery Center Holdings, Inc. 6.75%, 7/1/25 (a)		750		731
Team Health Holdings, Inc. 6.38%, 2/1/25 (a)		750		647
Teleflex, Inc. 4.88%, 6/1/26		200		199
Tenet Healthcare Corp. 7.00%, 8/1/25 (a)		300		296
TMS International Corp. 7.25%, 8/15/25 (a)		700		731
TreeHouse Foods, Inc. 6.00%, 2/15/24 (a)		250		253
United Rentals North America, Inc. 5.75%, 11/15/24		350		366
Valeant Pharmaceuticals International, Inc., 5.88%, 5/15/23 (a)		750		665
6.13%, 4/15/25 (a)		250		217
9.00%, 12/15/25 (a)		275		274
				21,907
Diversified (0.6%)
PetSmart, Inc. 7.13%, 3/15/23 (a)		750		429
Trident Merger Sub, Inc. 6.63%, 11/1/25 (a)		500		489
				918
Energy (14.6%)
Alta Mesa Holdings LP/ Alta Mesa Finance Services Corp. 7.88%, 12/15/24		500		523

	Face Amount (000)		Value (000)
American Midstream Partners LP/ American Midstream Finance Corp. 8.50%, 12/15/21 (a)	$	750	$	759
Blue Racer Midstream LLC/ Blue Racer Finance Corp. 6.13%, 11/15/22 (a)		550		562
Callon Petroleum Co. 6.13%, 10/1/24		650		668
Carrizo Oil & Gas, Inc. 6.25%, 4/15/23		800		804
Crestwood Midstream Partners LP/ Crestwood Midstream Finance Corp. 6.25%, 4/1/23		250		253
CrownRock LP/CrownRock Finance, Inc. 5.63%, 10/15/25 (a)		425		422
Denbury Resources, Inc. 5.50%, 5/1/22		1,150		917
Endeavor Energy Resources LP/ EER Finance, Inc. 5.75%, 1/30/28 (a)		750		750
Energy Ventures Gom LLC/ EnVen Finance Corp. 11.00%, 2/15/23 (a)		500		508
Gulfport Energy Corp. 6.38%, 1/15/26		600		572
Halcon Resources Corp., Series WI 6.75%, 2/15/25		500		494
Hilcorp Energy I LP/Hilcorp Finance Co., 5.00%, 12/1/24 (a)		500		495
5.75%, 10/1/25 (a)		250		249
Laredo Petroleum, Inc., 5.63%, 1/15/22		250		249
6.25%, 3/15/23		450		453
Lonestar Resources America, Inc. 11.25%, 1/1/23 (a)		900		902
Matador Resources Co. 6.88%, 4/15/23		300		313
Moss Creek Resources Holdings, Inc. 7.50%, 1/15/26 (a)		900		911
Murphy Oil Corp. 5.75%, 8/15/25		500		494
Murphy Oil USA, Inc. 5.63%, 5/1/27		500		503
Newfield Exploration Co. 5.38%, 1/1/26		500		519
Northern Oil and Gas, Inc. 8.00%, 6/1/20		1,000		940
Oceaneering International, Inc. 6.00%, 2/1/28		500		495
Parkland Fuel Corp. 6.00%, 4/1/26 (a)		900		907
Parsley Energy LLC/Parsley Finance Corp. 5.38%, 1/15/25 (a)		500		501
PDC Energy, Inc. 6.13%, 9/15/24		500		513
Rockies Express Pipeline LLC 6.88%, 4/15/40 (a)		400		463

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Energy (cont'd)
Rowan Cos., Inc. 7.38%, 6/15/25	$	600	$	566
RSP Permian, Inc., 5.25%, 1/15/25		250		260
6.63%, 10/1/22		500		524
SemGroup Corp. 7.25%, 3/15/26		500		501
SemGroup Corp./Rose Rock Finance Corp. 5.63%, 11/15/23		385		366
Seven Generations Energy Ltd. 5.38%, 9/30/25 (a)		425		407
Southwestern Energy Co. 5.80%, 1/23/20		750		760
Sunoco LP/Sunoco Finance Corp. 5.88%, 3/15/28 (a)		250		242
Tallgrass Energy Partners LP/ Tallgrass Energy Finance Corp. 5.50%, 9/15/24 (a)		250		256
TransMontaigne Partners LP/ TLP Finance Corp. 6.13%, 2/15/26		500		504
Vermilion Energy, Inc. 5.63%, 3/15/25 (a)		500		491
Whiting Petroleum Corp., 5.75%, 3/15/21		350		354
6.63%, 1/15/26 (a)		250		252
				21,622
Finance (8.5%)
Baytex Energy Corp. 5.63%, 6/1/24 (a)		750		664
CIT Group, Inc. 6.13%, 3/9/28		350		364
CNO Financial Group, Inc. 4.50%, 5/30/20		250		253
CTR Partnership LP/ CareTrust Capital Corp. 5.25%, 6/1/25		578		580
Exela Intermediate LLC/ Exela Finance, Inc. 10.00%, 7/15/23 (a)		750		762
Fly Leasing Ltd. 5.25%, 10/15/24		425		412
HUB International Ltd. 7.88%, 10/1/21 (a)		550		570
Hunt Cos., Inc. 6.25%, 2/15/26 (a)		750		726
Icahn Enterprises LP/ Icahn Enterprises Finance Corp. 6.75%, 2/1/24		800		817
Infinity Acquisition LLC/ Infinity Acquisition Finance Corp. 7.25%, 8/1/22 (a)		650		648
iStar, Inc. 6.50%, 7/1/21		750		768
Jack Ohio Finance LLC/ Jack Ohio Finance 1 Corp. 10.25%, 11/15/22 (a)		750		819

	Face Amount (000)		Value (000)
Jefferies Finance LLC/JFIN Co-Issuer Corp. 7.25%, 8/15/24 (a)	$	625	$	620
Kennedy-Wilson, Inc. 5.88%, 4/1/24		750		747
MGIC Investment Corp. 5.75%, 8/15/23		400		421
MPT Operating Partnership LP/ MPT Finance Corp. 5.00%, 10/15/27		500		491
Oxford Finance LLC/ Oxford Finance Co-Issuer II, Inc. 6.38%, 12/15/22 (a)		750		769
Post Holdings, Inc. 5.00%, 8/15/26 (a)		200		191
Provident Funding Associates LP/ PFG Finance Corp. 6.38%, 6/15/25 (a)		500		503
Radian Group, Inc. 4.50%, 10/1/24		350		343
Starwood Property Trust, Inc. 4.75%, 3/15/25 (a)		450		440
USIS Merger Sub, Inc. 6.88%, 5/1/25 (a)		575		576
				12,484
Industrials (18.4%)
Airxcel, Inc. 8.50%, 2/15/22 (a)		400		435
American Woodmark Corp. 4.88%, 3/15/26 (a)		175		171
Apex Tool Group LLC/ BC Mountain Finance, Inc. 9.00%, 2/15/23 (a)		750		750
ARD Finance SA 7.13% Cash, 7.88% PIK, 9/15/23 (b)		600		623
ARD Securities Finance SARL 8.75% Cash, 8.75% PIK, 1/31/23 (a)(b)		350		368
Artesyn Embedded Technologies, Inc. 9.75%, 10/15/20 (a)		603		591
BlueLine Rental Finance Corp./ BlueLine Rental LLC 9.25%, 3/15/24 (a)		750		806
Builders FirstSource, Inc. 5.63%, 9/1/24 (a)		425		429
BWAY Holding Co. 7.25%, 4/15/25 (a)		900		920
CEVA Group PLC, 4.00%, 5/1/18 (a)		750		750
6.00% Cash, 3.00% PIK, 9/1/20 (a)(b)		690		712
Cleaver-Brooks, Inc. 7.88%, 3/1/23 (a)		800		833
Core & Main LP 6.13%, 8/15/25 (a)		500		490
Coveris Holdings SA 7.88%, 11/1/19 (a)		650		655
CPG Merger Sub LLC 8.00%, 10/1/21 (a)		979		992

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
CTP Transportation Products LLC/ CTP Finance, Inc. 8.25%, 12/15/19 (a)	$	1,100	$	1,114
EnPro Industries, Inc. 5.88%, 9/15/22		552		573
Flex Acquisition Co., Inc. 6.88%, 1/15/25 (a)		750		744
FXI Holdings, Inc. 7.88%, 11/1/24 (a)		950		933
GCP Applied Technologies, Inc. 9.50%, 2/1/23 (a)		500		552
Gibraltar Industries, Inc. 6.25%, 2/1/21		461		467
Grinding Media, Inc./ Moly-Cop AltaSteel Ltd. 7.38%, 12/15/23 (a)		650		684
Itron, Inc. 5.00%, 1/15/26 (a)		400		395
JB Poindexter & Co., Inc. 9.00%, 4/1/22 (a)		501		517
JPW Industries Holding Corp. 9.00%, 10/1/24 (a)		1,050		1,104
Kenan Advantage Group, Inc. (The) 7.88%, 7/31/23 (a)		750		772
Koppers, Inc. 6.00%, 2/15/25 (a)		500		512
Kratos Defense & Security Solutions, Inc. 6.50%, 11/30/25 (a)		500		518
Martin Midstream Partners LP/ Martin Midstream Finance Corp. 7.25%, 2/15/21		750		754
Multi-Color Corp. 4.88%, 11/1/25 (a)		500		469
New Enterprise Stone & Lime Co., Inc. 6.25%, 3/15/26 (a)		700		703
Novelis Corp. 5.88%, 9/30/26 (a)		325		319
Park Aerospace Holdings Ltd. 5.25%, 8/15/22 (a)		500		492
Pisces Midco, Inc. 8.00%, 4/15/26 (a)(d)		450		450
SAExploration Holdings, Inc. 10.00% Cash, 11.00% PIK, 4/14/19 (a)(b)		579		370
SBA Communications Corp. 4.88%, 9/1/24		300		295
Standard Industries, Inc. 5.00%, 2/15/27 (a)		500		487
Summit Materials LLC/ Summit Materials Finance Corp. 6.13%, 7/15/23		500		512
syncreon Group BV/ syncreon Global Finance US, Inc. 8.63%, 11/1/21 (a)		450		371
Techniplas LLC 10.00%, 5/1/20 (a)		755		646
TriMas Corp. 4.88%, 10/15/25 (a)		500		485

	Face Amount (000)		Value (000)
TTM Technologies, Inc. 5.63%, 10/1/25 (a)	$	450	$	449
Tutor Perini Corp. 6.88%, 5/1/25 (a)		400		413
US Concrete, Inc. 6.38%, 6/1/24		400		417
XPO Logistics, Inc. 6.13%, 9/1/23 (a)		350		363
Zachry Holdings, Inc. 7.50%, 2/1/20 (a)		750		759
				27,164
Technology (3.2%)
BCP Singapore VI Cayman Financing Co., Ltd. 8.00%, 4/15/21 (a)		600		576
Boxer Parent Co., Inc. 9.00% Cash, 9.75% PIK, 10/15/19 (a)(b)		586		587
Change Healthcare Holdings LLC/ Change Healthcare Finance, Inc. 5.75%, 3/1/25 (a)		800		796
DynCorp International, Inc. 10.38% Cash, 1.50% PIK, 11/30/20 (b)		814		854
First Data Corp. 7.00%, 12/1/23 (a)		350		368
Harland Clarke Holdings Corp. 6.88%, 3/1/20 (a)		500		508
j2 Cloud Services LLC/ j2 Global Co-Obligor, Inc. 6.00%, 7/15/25 (a)		500		514
RP Crown Parent LLC 7.38%, 10/15/24 (a)		550		571
				4,774
Utilities (2.2%)
Calpine Corp. 5.75%, 1/15/25		750		688
Dynegy, Inc. 7.38%, 11/1/22		500		528
LBC Tank Terminals Holding Netherlands BV 6.88%, 5/15/23 (a)		800		826
NGL Energy Partners LP/ NGL Energy Finance Corp. 6.13%, 3/1/25		750		718
NRG Energy, Inc. 6.63%, 1/15/27		400		411
				3,171
				132,534
Sovereign (0.6%)
Shape Technologies Group, Inc. 7.63%, 2/1/20 (a)		770		788
Variable Rate Senior Loan Interests (8.3%)
Communications (0.2%)
Windstream Services LLC, Term B6 1 Month USD LIBOR + 4.00%, 1.00%, 3/30/21 (g)		274		265

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (3.7%)
BJ's Wholesale Club, Inc., 2nd Lien Term 1 Month USD LIBOR + 7.50%, 9.19%, 1/27/25	$	1,000	$	1,006
Chassix Holdings, Inc., Term B 6 Month USD LIBOR + 5.50%, 9.25%, 11/15/23		723		728
Commercial Vehicle Group, Inc., Term B 1 Month USD LIBOR + 6.00%, 7.88%, 4/12/23		638		642
Neiman Marcus Group Ltd., LLC, Term Loan 1 Month USD LIBOR + 3.25%, 4.94%, 10/25/20		492		427
Office Depot, Inc., Term B 3 Month USD LIBOR + 7.00%, 9.12%, 11/8/22		975		995
Playa Resorts Holding B.V., Term B 2 Month USD LIBOR + 3.25%, 5.00%, 4/27/24		647		651
Sesac Holdco II LLC, 2nd Lien Term 1 Month USD LIBOR + 7.25%, 9.13%, 2/24/25		1,000		1,001
				5,450
Consumer, Non-Cyclical (0.6%)
Monitronics International, Inc., Term B2 3 Month USD LIBOR + 5.50%, 1.00%, 9/30/22 (g)		150		146
Wells Enterprises, Inc., Term B 3 Month USD LIBOR + 2.75% 1.00%, 3/21/25 (g)		725		734
				880
Energy (0.7%)
Gavilan Resources LLC, 2nd Lien Term 1 Month USD LIBOR + 6.00%, 7.79%, 3/1/24		1,000		1,005
Industrials (3.1%)
Associated Asphalt Partners LLC, Term B 1 Month USD LIBOR + 5.25%, 7.13%, 4/5/24		992		956
Coveris Holdings S.A., Term B 3 Month USD LIBOR + 4.25%, 6.55%, 6/26/22		295		297
Gruden Acquisition, Inc., 1st Lien Term 3 Month USD LIBOR + 5.50%, 7.80%, 8/18/22		489		495

	Face Amount (000)		Value (000)
Kemet Electronic Corp., Term B 1 Month USD LIBOR + 6.00%, 7.88%, 4/28/24	$	963	$	982
Michael Baker International LLC, Term B 1 Month USD LIBOR + 4.50%, 6.34%, 11/21/22		500		501
SAExploration Holdings, Inc., Term Loan 11.50%, 6/28/23 (c)		500		470
syncreon Global Finance, Inc., Term B 3 Month USD LIBOR + 4.25%, 6.02%, 10/28/20		496		466
Titan Acquisition Ltd., Term B 1 Month USD LIBOR + 3.00%, 1.00%, 3/28/25 (g)		525		525
				4,692
				12,292
Total Fixed Income Securities (Cost $146,346)				145,614
	Shares
Common Stocks (0.3%)
Auto Components (0.0%)
Exide Technologies (h)		592		1
Energy Equipment & Services (0.0%)
SAExploration Holdings, Inc.		12,646		16
Equity Real Estate Investment Trusts (REITs) (0.2%)
American Gilsonite Co. (c)(h)		500		253
Machinery (0.0%)
Iracore International Holdings, Inc., Class A (h)(i)		470		43
Semiconductors & Semiconductor Equipment (0.0%)
UC Holdings, Inc. (c)(h)		2,826		59
Trading Companies & Distributors (0.1%)
Emeco Holdings Ltd. (Australia) (h)		430,643		97
Total Common Stocks (Cost $203)				469
Preferred Stocks (0.2%)
Energy Equipment & Services (0.2%)
SAExploration Holdings, Inc. Series A		235		117
SAExploration Holdings, Inc. Series B		6,343		177
Total Preferred Stocks (Cost $373)				294
Participation Notes (0.1%)
Energy Equipment & Services (0.1%)
SAExploration Holdings, Inc. Equity Linked Notes, expires 7/27/21 (h)		54,840		70
Semiconductors & Semiconductor Equipment (0.0%)
UC Holdings, Inc. Equity Linked Notes, expires 9/23/20 (c)(h)		2,802		9
Total Participation Notes (Cost $104)				79

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

High Yield Portfolio

	Shares		Value (000)
Short-Term Investment (0.8%)
Investment Company (0.8%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $1,208)		1,207,593	$	1,208
Total Investments (100.0%) (Cost $148,234) (j)				147,664
Other Assets in Excess of Liabilities (0.0%) (k)				53
Net Assets (100.0%)			$	147,717

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

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

(b)  PIK: Payment-in-kind security for which part of the income earned may be paid as additional principal.

(c)  Security has been deemed illiquid at March 29, 2018.

(d)  When-issued security.

(e)  Issuer in bankruptcy.

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

(g)  Unsettled Position. The contract rate does not take effect until settlement date.

(h)  Non-income producing security.

(i)  At March 29, 2018, the Fund held a fair valued security valued at $43,000 representing 0.03% 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)  At March 29, 2018, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $2,722,000 and the aggregate gross unrealized depreciation is approximately $3,292,000, resulting in net unrealized depreciation of approximately $570,000.

(k)  Amount is less than 0.05%.

LIBOR  London Interbank Offered Rate.

USD  United States Dollar.

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		18.5	%
Consumer, Cyclical		17.4
Consumer, Non-Cyclical		14.9
Energy		14.7
Other*		11.6
Finance		8.5
Variable Rate Senior Loan Interests		8.3
Communications		6.1
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 Trust

Semi-Annual Report — March 29, 2018R (unaudited)

High Yield Portfolio

Statement of Assets and Liabilities	March 29, 2018 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $147,026)	$	146,456
Investment in Security of Affiliated Issuer, at Value (Cost $1,208)		1,208
Total Investments in Securities, at Value (Cost $148,234)		147,664
Cash		29
Interest Receivable		2,659
Receivable for Investments Sold		672
Receivable for Fund Shares Sold		375
Receivable from Affiliate		2
Other Assets		88
Total Assets		151,489
Liabilities:
Payable for Investments Purchased		3,179
Payable for Fund Shares Redeemed		320
Payable for Advisory Fees		105
Payable for Professional Fees		57
Payable for Sub Transfer Agency Fees — Class I		11
Payable for Sub Transfer Agency Fees — Class A		9
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		1
Payable for Shareholder Services Fees — Class A		15
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		4
Payable for Administration Fees		10
Payable for Custodian Fees		9
Payable for Transfer Agency Fees — Class I		4
Payable for Transfer Agency Fees — Class A		2
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class IS		1
Other Liabilities		43
Total Liabilities		3,772
Net Assets	$	147,717
Net Assets Consist of:
Paid-in-Capital	$	148,226
Accumulated Undistributed Net Investment Income		887
Accumulated Net Realized Loss		(826	)
Unrealized Appreciation (Depreciation) on:
Investments		(570	)
Net Assets	$	147,717

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

High Yield Portfolio

Statement of Assets and Liabilities (cont'd)	March 29, 2018 (000)
CLASS I:
Net Assets	$	71,713
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		7,203,640
Net Asset Value, Offering and Redemption Price Per Share	$	9.96
CLASS A:
Net Assets	$	70,298
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		7,073,214
Net Asset Value, Redemption Price Per Share	$	9.94
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.44
Maximum Offering Price Per Share	$	10.38
CLASS L:
Net Assets	$	452
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		45,449
Net Asset Value, Offering and Redemption Price Per Share	$	9.94
CLASS C:
Net Assets	$	4,425
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		445,809
Net Asset Value, Offering and Redemption Price Per Share	$	9.93
CLASS IS:
Net Assets	$	829
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		83,325
Net Asset Value, Offering and Redemption Price Per Share	$	9.95

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

High Yield Portfolio

Statement of Operations	Six Months Ended March 29, 2018 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	5,090
Dividends from Securities of Unaffiliated Issuers		30
Dividends from Security of Affiliated Issuer (Note G)		9
Total Investment Income		5,129
Expenses:
Advisory Fees (Note B)		427
Shareholder Services Fees — Class A (Note D)		87
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		21
Sub Transfer Agency Fees — Class I		27
Sub Transfer Agency Fees — Class A		49
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		1
Professional Fees		65
Administration Fees (Note C)		57
Registration Fees		28
Pricing Fees		18
Shareholder Reporting Fees		12
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
Custodian Fees (Note F)		7
Trustees' Fees and Expenses		3
Other Expenses		11
Expenses Before Non Operating Expenses		823
Bank Overdraft Expense		3
Total Expenses		826
Waiver of Advisory Fees (Note B)		(187	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(22	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(5	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		609
Net Investment Income		4,520
Realized Gain:
Investments Sold		99
Change in Unrealized Appreciation (Depreciation):
Investments		(2,372	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(2,273	)
Net Increase in Net Assets Resulting from Operations	$	2,247

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

High Yield Portfolio

Statements of Changes in Net Assets	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	4,520		$	8,578
Net Realized Gain		99			1,665
Net Change in Unrealized Appreciation (Depreciation)		(2,372	)		668
Net Increase in Net Assets Resulting from Operations		2,247			10,911
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(2,420	)		(3,652	)
Class A:
Net Investment Income		(2,378	)		(4,011	)
Class L:
Net Investment Income		(16	)		(34	)
Class C:
Net Investment Income		(128	)		(176	)
Class IS:
Net Investment Income		(27	)		(290	)
Total Distributions		(4,969	)		(8,163	)
Capital Share Transactions:(1)
Class I:
Subscribed		29,907			27,882
Distributions Reinvested		2,417			3,649
Redeemed		(23,330	)		(18,735	)
Class A:
Subscribed		11,071			22,224
Distributions Reinvested		2,357			3,981
Redeemed		(10,682	)		(17,894	)
Class L:
Distributions Reinvested		16			34
Redeemed		(57	)		(172	)
Class C:
Subscribed		1,159			1,040
Distributions Reinvested		126			173
Redeemed		(362	)		(605	)
Class IS:
Subscribed		382			3,090
Distributions Reinvested		7			—
Redeemed		(104	)		(16,337	)
Net Increase in Net Assets Resulting from Capital Share Transactions		12,907			8,330
Total Increase in Net Assets		10,185			11,078
Net Assets:
Beginning of Period		137,532			126,454
End of Period (Including Accumulated Undistributed Net Investment Income of $887 and $1,336)	$	147,717		$	137,532
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		2,974			2,777
Shares Issued on Distributions Reinvested		240			365
Shares Redeemed		(2,318	)		(1,874	)
Net Increase in Class I Shares Outstanding		896			1,268
Class A:
Shares Subscribed		1,102			2,219
Shares Issued on Distributions Reinvested		235			399
Shares Redeemed		(1,062	)		(1,791	)
Net Increase in Class A Shares Outstanding		275			827

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

High Yield Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
Class L:
Shares Issued on Distributions Reinvested	$	2		$	3
Shares Redeemed		(6	)		(17	)
Net Decrease in Class L Shares Outstanding		(4	)		(14	)
Class C:
Shares Subscribed		115			103
Shares Issued on Distributions Reinvested		13			17
Shares Redeemed		(36	)		(60	)
Net Increase in Class C Shares Outstanding		92			60
Class IS:
Shares Subscribed		37			310
Shares Issued on Distributions Reinvested		1			—
Shares Redeemed		(10	)		(1,645	)
Net Increase (Decrease) in Class IS Shares Outstanding		28			(1,335	)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

High Yield Portfolio

	Class I
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	10.15		$	9.92		$	9.80		$	10.73		$	11.00		$	10.71
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.33			0.70			0.67			0.71			0.75			0.81
Net Realized and Unrealized Gain (Loss)		(0.16	)		0.20			0.13			(0.92	)		0.25			0.55
Total from Investment Operations		0.17			0.90			0.80			(0.21	)		1.00			1.36
Distributions from and/or in Excess of:
Net Investment Income		(0.36	)		(0.67	)		(0.68	)		(0.66	)		(0.77	)		(0.81	)
Net Realized Gain		—			—			—			(0.06	)		(0.50	)		(0.26	)
Total Distributions		(0.36	)		(0.67	)		(0.68	)		(0.72	)		(1.27	)		(1.07	)
Net Asset Value, End of Period	$	9.96		$	10.15		$	9.92		$	9.80		$	10.73		$	11.00
Total Return(3)		1.62	%(7)		9.40	%		8.72	%		(2.10	)%		9.48	%		13.38	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	71,713		$	64,007		$	49,990		$	13,255		$	13,300		$	12,678
Ratio of Expenses to Average Net Assets(9)		0.65	%(4)(8)		0.66	%(4)		0.66	%(4)(5)		0.74	%(4)		0.75	%(4)		0.75	%(4)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		0.65	%(4)(8)		0.65	%(4)		N/A			N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets(9)		6.56	%(4)(8)		7.01	%(4)		7.09	%(4)(5)		6.88	%(4)		6.89	%(4)		7.42	%(4)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(6)(8)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		27	%(7)		73	%		74	%		62	%		96	%		227	%
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.98	%(8)		1.06	%		1.02	%		1.17	%		1.85	%		3.16	%
Net Investment Income to Average Net Assets		6.23	%(8)		6.61	%		6.73	%		6.45	%		5.79	%		5.01	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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)  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."

(5)  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.

(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 29, 2018

Financial Highlights

High Yield Portfolio

	Class A
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	10.13		$	9.90		$	9.78		$	10.72		$	10.99		$	10.71
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.31			0.67			0.64			0.66			0.65			0.77
Net Realized and Unrealized Gain (Loss)		(0.15	)		0.20			0.12			(0.92	)		0.31			0.55
Total from Investment Operations		0.16			0.87			0.76			(0.26	)		0.96			1.32
Distributions from and/or in Excess of:
Net Investment Income		(0.35	)		(0.64	)		(0.64	)		(0.62	)		(0.73	)		(0.78	)
Net Realized Gain		—			—			—			(0.06	)		(0.50	)		(0.26	)
Total Distributions		(0.35	)		(0.64	)		(0.64	)		(0.68	)		(1.23	)		(1.04	)
Net Asset Value, End of Period	$	9.94		$	10.13		$	9.90		$	9.78		$	10.72		$	10.99
Total Return(3)		1.54	%(8)		9.04	%		8.24	%		(2.43	)%		9.15	%		13.01	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	70,298		$	68,878		$	59,139		$	56,042		$	40,157		$	1,092
Ratio of Expenses to Average Net Assets(10)		1.00	%(4)(9)		1.01	%(4)		1.02	%(4)(6)		1.10	%(4)		1.02	%(4)		1.01	%(4)(5)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.00	%(4)(9)		1.00	%(4)		N/A			N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets(10)		6.21	%(4)(9)		6.65	%(4)		6.76	%(4)(6)		6.49	%(4)		5.99	%(4)		7.04	%(4)(5)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(7)(9)		0.00	%(7)		0.00	%(7)		0.00	%(7)		0.01	%		0.00	%(7)
Portfolio Turnover Rate		27	%(8)		73	%		74	%		62	%		96	%		227	%
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.28	%(9)		1.34	%		1.33	%		1.53	%		2.06	%		4.22	%
Net Investment Income to Average Net Assets		5.93	%(9)		6.32	%		6.45	%		6.06	%		4.95	%		3.83	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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)  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."

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

(6)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class A shares. Prior to January 4, 2016, the maximum ratio was 1.10% for Class A shares.

(7)  Amount is less than 0.005%.

(8)  Not annualized.

(9)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

High Yield Portfolio

	Class L
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	10.13		$	9.91		$	9.78		$	10.72		$	10.99		$	10.70
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.30			0.64			0.62			0.64			0.67			0.75
Net Realized and Unrealized Gain (Loss)		(0.16	)		0.19			0.13			(0.93	)		0.27			0.56
Total from Investment Operations		0.14			0.83			0.75			(0.29	)		0.94			1.31
Distributions from and/or in Excess of:
Net Investment Income		(0.33	)		(0.61	)		(0.62	)		(0.59	)		(0.71	)		(0.76	)
Net Realized Gain		—			—			—			(0.06	)		(0.50	)		(0.26	)
Total Distributions		(0.33	)		(0.61	)		(0.62	)		(0.65	)		(1.21	)		(1.02	)
Net Asset Value, End of Period	$	9.94		$	10.13		$	9.91		$	9.78		$	10.72		$	10.99
Total Return(3)		1.41	%(8)		8.75	%		7.95	%		(2.70	)%		8.88	%		12.82	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	452		$	502		$	628		$	1,111		$	1,519		$	326
Ratio of Expenses to Average Net Assets(10)		1.25	%(4)(9)		1.26	%(4)		1.28	%(4)(6)		1.35	%(4)		1.35	%(4)		1.26	%(4)(5)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.25	%(4)(9)		1.25	%(4)		N/A			N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets(10)		5.96	%(4)(9)		6.40	%(4)		6.51	%(4)(6)		6.25	%(4)		6.14	%(4)		6.90	%(4)(5)
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)		0.00	%(7)
Portfolio Turnover Rate		27	%(8)		73	%		74	%		62	%		96	%		227	%
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.85	%(9)		1.90	%		1.83	%		1.84	%		2.52	%		4.11	%
Net Investment Income to Average Net Assets		5.36	%(9)		5.76	%		5.96	%		5.76	%		4.97	%		4.05	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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)  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 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 1.35% for Class L shares. Prior to September 16, 2013, the maximum ratio was 1.25% for Class L shares.

(6)  Effective January 4, 2016, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.25% for Class L shares. Prior to January 4, 2016, the maximum ratio was 1.35% 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.
18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

High Yield Portfolio

	Class C
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from April 30, 2015(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			September 30, 2015
Net Asset Value, Beginning of Period	$	10.12		$	9.89		$	9.78		$	10.39
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.27			0.59			0.57			0.24
Net Realized and Unrealized Gain (Loss)		(0.15	)		0.20			0.12			(0.62	)
Total from Investment Operations		0.12			0.79			0.69			(0.38	)
Distributions from and/or in Excess of:
Net Investment Income		(0.31	)		(0.56	)		(0.58	)		(0.23	)
Net Asset Value, End of Period	$	9.93		$	10.12		$	9.89		$	9.78
Total Return(4)		1.19	%(8)		8.24	%		7.47	%		(3.75	)%(8)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,425		$	3,585		$	2,908		$	1,309
Ratio of Expenses to Average Net Assets(10)		1.71	%(5)(9)		1.76	%(5)		1.77	%(5)(6)		1.84	%(5)(9)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.71	%(5)(9)		1.75	%(5)		N/A			N/A
Ratio of Net Investment Income to Average Net Assets(10)		5.49	%(5)(9)		5.90	%(5)		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)		0.00	%(7)(9)
Portfolio Turnover Rate		27	%(8)		73	%		74	%		62	%(8)
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.97	%(9)		2.09	%		2.12	%		2.15	%(9)
Net Investment Income to Average Net Assets		5.23	%(9)		5.57	%		5.65	%		5.29	%(9)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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)  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 Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

High Yield Portfolio

	Class IS
	Six Months Ended March 29, 2018R			Year Ended September 30,									Period from March 28, 2014(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			September 30, 2014
Net Asset Value, Beginning of Period	$	10.15		$	9.92		$	9.79		$	10.74		$	10.98
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.33			0.69			0.67			0.69			0.37
Net Realized and Unrealized Gain (Loss)		(0.17	)		0.21			0.14			(0.92	)		(0.27	)
Total from Investment Operations		0.16			0.90			0.81			(0.23	)		0.10
Distributions from and/or in Excess of:
Net Investment Income		(0.36	)		(0.67	)		(0.68	)		(0.66	)		(0.34	)
Net Realized Gain		—			—			—			(0.06	)		—
Total Distributions		(0.36	)		(0.67	)		(0.68	)		(0.72	)		(0.34	)
Net Asset Value, End of Period	$	9.95		$	10.15		$	9.92		$	9.79		$	10.74
Total Return(4)		1.63	%(8)		9.43	%		8.75	%		(2.17	)%		0.89	%(8)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	829		$	560		$	13,789		$	574		$	10
Ratio of Expenses to Average Net Assets(10)		0.62	%(5)(9)		0.62	%(5)		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)		0.62	%(5)		N/A			N/A			N/A
Ratio of Net Investment Income to Average Net Assets(10)		6.59	%(5)(9)		6.93	%(5)		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)		0.00	%(7)(9)
Portfolio Turnover Rate		27	%(8)		73	%		74	%		62	%		96	%(8)
(10) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.12	%(9)		0.99	%		0.93	%		1.57	%		15.70	%(9)
Net Investment Income (Loss) to Average Net Assets		6.09	%(9)		6.56	%		6.74	%		5.90	%		(8.32	)%(9)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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)  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 Trust

Semi-Annual Report — March 29, 2018

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.

The Fund has suspended offering Class L shares for sale to all investors. Class L shareholders of the Fund do not have the option to purchasing additional Class L shares. However, existing Class L shareholders may invest in additional Class L shares 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. 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. 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) 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. 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; (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

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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

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

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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

The following is a summary of the inputs used to value the Fund's investments as of March 29, 2018:

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	$	—	$	132,534	$	—	$	132,534
Sovereign		—		788		—		788
Variable Rate Senior Loan Interests		—		12,292		—		12,292
Total Fixed Income Securities		—		145,614		—		145,614
Common Stocks
Auto Components		—		1		—		1
Energy Equipment & Services		—		16		—		16
Equity Real Estate Investment Trusts (REITs)		—		253		—		253
Machinery		—		—		43		43
Semiconductors & Semiconductor Equipment		—		59		—		59
Trading Companies & Distributors		—		97		—		97
Total Common Stocks		—		426		43		469
Preferred Stocks
Energy Equipment & Services		—		294		—		294
Participation Notes		—		79		—		79
Short-Term Investment
Investment Company		1,208		—		—		1,208
Total Assets	$	1,208	$	146,413	$	43	$	147,664

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an in-

vestment's valuation changes. The Fund recognizes transfers between the levels as of the end of the period. As of March 29, 2018, securities with a total value of approximately $98,000 transferred from Level 1 to Level 2. Securities that were valued using unadjusted quoted prices at September 30, 2017 were valued using other significant observable inputs at March 29, 2018. At March 29, 2018, the fair value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification. As of March 29, 2018, securities with a total value of approximately $43,000 transferred from Level 2 to Level 3. Securities that were valued using other significant observable inputs at September 30, 2017, were valued using significant unobservable inputs at March 29, 2018.

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		43
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	43
Net change in unrealized appreciation (depreciation) from investments still held as of March 29, 2018	$	—

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 29, 2018:

	Fair Value at March 29, 2018 (000)		Valuation Technique	Unobservable Input	Range					Selected Value			Impact to Valuation from an Increase in Input
Machinery
Common Stock	$	43	Market Comparable Companies	Enterprise Value/EBITDA		4.2	x	6.1	x		5.0	x	Increase
				Discount for Lack of Marketability		20.0	%	20.0	%		20.0	%	Decrease

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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.

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: Dividends 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. 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 Fund 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

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 0.60% 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 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 29, 2018, approximately $187,000 of advisory fees were waived and approximately $29,000 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 Share-

holder 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. Effective January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

F. Custodian Fees: State Street (the "Custodian") also 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 29, 2018, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $51,021,000 and $37,978,000,

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 29, 2018.

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 29, 2018, 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 29, 2018 is as follows:

Affiliated Investment Company	Value September 30, 2017 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	1,425	$	31,695	$	31,912	$	9

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 29, 2018 (000)
Liquidity Funds	$	—	$	—	$	1,208

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 29, 2018, 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 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. Each of the tax years in the four-year period ended September 30, 2017, 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 2017 and 2016 was as follows:

2017 Distributions Paid From:				2016 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	8,163	$	—	$	6,619	$	—

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.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

Permanent differences, primarily due to paydown adjustments and adjustments on defaulted bonds sold, resulted in the following reclassifications among the components of net assets at September 30, 2017:

Accumulated Undistributed Net Investment Income (000)		Accumulated Net Realized Loss (000)			Paid-in- Capital (000)
$	3	$	(3	)	$	—

At September 30, 2017, 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)
$	1,336	$	—

At September 30, 2017, the Fund had available for federal income tax purposes unused long term capital losses of approximately $863,000 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. During the year ended September 30, 2017, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $1,555,000.

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 1 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 29, 2018, the Fund did not have any borrowings under the Facility.

J. Other: At March 29, 2018, 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 73.3%.

K. Accounting Pronouncement: In March 2017, FASB issued an Accounting Standard Update, ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased

Callable Debt Securities (the "ASU") which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018

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 non-affiliated 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:

  DST Asset Manager Solutions, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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:

DST Asset Manager Solutions, 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 non-affiliated 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 29, 2018

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

Michael J. Key
Vice President

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

DST Asset Manager Solutions, 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 to the SEC's Public Reference Section, Washington, D.C. 20549-1520.

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

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

© 2018 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTHYSAN
2100439 EXP 05.31.19

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Mid Cap Growth Portfolio

Semi-Annual Report

March 29, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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	10
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 fund 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 29, 2018

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 2018

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018 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 10/1/17		Actual Ending Account Value 3/29/18		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	$	1,157.40	$	1,021.39	$	3.82	$	3.58		0.71	%
Mid Cap Growth Portfolio Class A		1,000.00		1,155.10		1,019.80		5.53		5.19		1.03
Mid Cap Growth Portfolio Class L		1,000.00		1,152.70		1,017.00		8.53		8.00		1.59
Mid Cap Growth Portfolio Class C		1,000.00		1,150.10		1,015.46		10.18		9.55		1.90
Mid Cap Growth Portfolio Class IS		1,000.00		1,157.30		1,021.64		3.55		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 29, 2018R (unaudited)

Portfolio of Investments

Mid Cap Growth Portfolio

	Shares		Value (000)
Common Stocks (94.4%)
Aerospace & Defense (1.0%)
HEICO Corp., Class A		85,433	$	6,062
Biotechnology (1.9%)
Alnylam Pharmaceuticals, Inc. (a)		47,135		5,614
Bluebird Bio, Inc. (a)		7,075		1,208
Editas Medicine, Inc. (a)		42,561		1,411
Intellia Therapeutics, Inc. (a)		56,320		1,188
Intrexon Corp. (a)(b)		91,166		1,397
				10,818
Commercial Services & Supplies (4.9%)
Copart, Inc. (a)		441,784		22,500
Rollins, Inc.		117,640		6,003
				28,503
Construction Materials (3.1%)
Martin Marietta Materials, Inc.		44,708		9,268
Vulcan Materials Co.		79,384		9,063
				18,331
Electronic Equipment, Instruments & Components (1.5%)
Cognex Corp.		172,172		8,951
Health Care Equipment & Supplies (5.2%)
DexCom, Inc. (a)		262,126		19,439
Penumbra, Inc. (a)		92,587		10,708
				30,147
Health Care Providers & Services (4.9%)
HealthEquity, Inc. (a)		469,958		28,451
Health Care Technology (12.7%)
athenahealth, Inc. (a)		249,194		35,642
Veeva Systems, Inc., Class A (a)		523,355		38,216
				73,858
Hotels, Restaurants & Leisure (2.8%)
Shake Shack, Inc., Class A (a)		389,227		16,204
Information Technology Services (0.7%)
Broadridge Financial Solutions, Inc.		36,770		4,033
Internet & Direct Marketing Retail (3.6%)
Overstock.com, Inc. (a)(b)		251,979		9,135
TripAdvisor, Inc. (a)		149,626		6,118
Wayfair, Inc., Class A (a)		84,839		5,729
				20,982
Internet Software & Services (24.6%)
Angi Homeservices, Inc., Class A (a)(b)		1,488,422		20,213
Coupa Software, Inc. (a)		230,042		10,495
GrubHub, Inc. (a)		64,643		6,559
Match Group, Inc. (a)(b)		154,846		6,881
MercadoLibre, Inc.		30,791		10,974
Shopify, Inc., Class A (Canada) (a)		64,929		8,090
Survey Monkey, Inc. (c)(d)(e) (acquisition cost — $28,952; acquired 11/25/14)		1,760,030		11,458
Twitter, Inc. (a)		1,154,816		33,501
Zillow Group, Inc., Class C (a)		650,455		34,994
				143,165

	Shares		Value (000)
Life Sciences Tools & Services (5.1%)
Illumina, Inc. (a)		125,582	$	29,690
Machinery (2.6%)
Fortive Corp.		197,191		15,286
Pharmaceuticals (0.3%)
Nektar Therapeutics (a)		14,450		1,535
Software (19.3%)
Atlassian Corp., PLC, Class A (United Kingdom) (a)		112,431		6,062
Autodesk, Inc. (a)		51,811		6,506
Constellation Software, Inc. (Canada)		13,577		9,212
Guidewire Software, Inc. (a)		73,436		5,936
ServiceNow, Inc. (a)		127,566		21,106
Snap, Inc., Class A (a)		564,846		8,964
Splunk, Inc. (a)		56,453		5,554
Take-Two Interactive Software, Inc. (a)		291,680		28,521
Workday, Inc., Class A (a)		164,226		20,875
				112,736
Trading Companies & Distributors (0.2%)
Watsco, Inc.		6,840		1,238
Total Common Stocks (Cost $469,203)				549,990
Short-Term Investments (12.9%)
Securities held as Collateral on Loaned Securities (6.4%)
Investment Company (5.3%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		31,015,853		31,016
	Face Amount (000)
Repurchase Agreements (1.1%)
Barclays Capital, Inc., (1.77%, dated 3/29/18, due 4/2/18; proceeds $3,124; fully collateralized by a U.S. Government agency security; 4.00% due 1/1/48; valued at $3,186)	$	3,123		3,123
HSBC Securities USA, Inc., (1.77%, dated 3/29/18, due 4/2/18; proceeds $2,603; fully collateralized by a U.S. Government obligation; 0.00% due 11/15/22; valued at $2,656)		2,603		2,603
Merrill Lynch & Co., Inc., (1.81%, dated 3/29/18, due 4/2/18; proceeds $781; fully collateralized by U.S. Government agency securities; 3.69% - 3.73% due 10/20/63 - 11/20/63; valued at $796)		781		781
				6,507
Total Securities held as Collateral on Loaned Securities (Cost $37,523)				37,523

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

	Shares		Value (000)
Investment Company (6.5%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $37,841)		37,840,961	$	37,841
Total Short-Term Investments (Cost $75,364)				75,364
Total Investments Excluding Purchased Options (107.3%) (Cost $544,567)				625,354
Total Purchased Options Outstanding (0.1%) (Cost $1,796)				283
Total Investments (107.4%) (Cost $546,363) Including $36,859 of Securities Loaned (f)				625,637
Liabilities in Excess of Other Assets (–7.4%)				(42,842	)
Net Assets (100.0%)			$	582,795

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(a)  Non-income producing security.

(b)  All or a portion of this security was on loan at March 29, 2018.

(c)  Security has been deemed illiquid at March 29, 2018.

(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 29, 2018, amounts to approximately $11,458,000 and represents 2.0% of net assets.

(e)  At March 29, 2018, the Fund held a fair valued security valued at approximately $11,458,000, representing 2.0% 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 29, 2018, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $107,961,000 and the aggregate gross unrealized depreciation is approximately $28,687,000, resulting in net unrealized appreciation of approximately $79,274,000.

Call Options Purchased:

The Fund had the following call options purchased open at March 29, 2018:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
Royal Bank of Scotland	USD/CNH	CNH	7.16	Jan-19		133,395,944		133,396	$	224	$	579	$	(355	)
Royal Bank of Scotland	USD/CNH	CNH	7.52	Nov-18		147,087,283		147,087		49		609		(560	)
Royal Bank of Scotland	USD/CNH	CNH	7.55	Aug-18		114,738,765		114,739		10		608		(598	)
									$	283	$	1,796	$	(1,513	)

CNH  —  Chinese Yuan Renminbi Offshore

USD  —  United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		27.3	%
Internet Software & Services		24.4
Software		19.2
Health Care Technology		12.6
Short-Term Investments		6.4
Health Care Equipment & Supplies		5.1
Life Sciences Tools & Services		5.0
Total Investments		100.0	%

*  Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of March 29, 2018.

**  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 29, 2018R (unaudited)

Mid Cap Growth Portfolio

Statement of Assets and Liabilities	March 29, 2018 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $477,506)	$	556,780
Investment in Security of Affiliated Issuer, at Value (Cost $68,857)		68,857
Total Investments in Securities, at Value (Cost $546,363)		625,637
Receivable for Investments Sold		1,491
Receivable from Securities Lending Income		107
Receivable for Fund Shares Sold		87
Receivable from Affiliate		40
Dividends Receivable		12
Other Assets		181
Total Assets		627,555
Liabilities:
Collateral on Securities Loaned, at Value		37,523
Payable for Fund Shares Redeemed		2,755
Payable for Investments Purchased		2,664
Payable for Advisory Fees		711
Due to Broker		470
Payable for Sub Transfer Agency Fees — Class I		56
Payable for Sub Transfer Agency Fees — Class A		83
Payable for Sub Transfer Agency Fees — Class L		8
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Trustees' Fees and Expenses		112
Payable for Professional Fees		76
Payable for Shareholder Services Fees — Class A		55
Payable for Distribution and Shareholder Services Fees — Class L		5
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Administration Fees		41
Payable for Transfer Agency Fees — Class I		11
Payable for Transfer Agency Fees — Class A		15
Payable for Transfer Agency Fees — Class L		2
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		3
Payable for Custodian Fees		17
Other Liabilities		153
Total Liabilities		44,760
Net Assets	$	582,795
Net Assets Consist of:
Paid-in-Capital	$	405,385
Accumulated Net Investment Loss		(4,702	)
Accumulated Undistributed Net Realized Gain		102,838
Unrealized Appreciation (Depreciation) on:
Investments		79,274
Net Assets	$	582,795

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Mid Cap Growth Portfolio

Statement of Assets and Liabilities (cont'd)	March 29, 2018 (000)
CLASS I:
Net Assets	$	261,470
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		14,337,718
Net Asset Value, Offering and Redemption Price Per Share	$	18.24
CLASS A:
Net Assets	$	249,705
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		16,161,728
Net Asset Value, Redemption Price Per Share	$	15.45
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.86
Maximum Offering Price Per Share	$	16.31
CLASS L:
Net Assets	$	8,068
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		571,941
Net Asset Value, Offering and Redemption Price Per Share	$	14.11
CLASS C:
Net Assets	$	25
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,649
Net Asset Value, Offering and Redemption Price Per Share	$	15.29
CLASS IS:
Net Assets	$	63,527
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		3,454,681
Net Asset Value, Offering and Redemption Price Per Share	$	18.39
(1) Including: Securities on Loan, at Value:	$	36,859

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Mid Cap Growth Portfolio

Statement of Operations	Six Months Ended March 29, 2018 (000)
Investment Income:
Income from Securities Loaned — Net	$	674
Dividends from Securities of Unaffiliated Issuers		463
Dividends from Security of Affiliated Issuer (Note G)		100
Total Investment Income		1,237
Expenses:
Advisory Fees (Note B)		1,484
Shareholder Services Fees — Class A (Note D)		341
Distribution and Shareholder Services Fees — Class L (Note D)		30
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Administration Fees (Note C)		237
Sub Transfer Agency Fees — Class I		61
Sub Transfer Agency Fees — Class A		154
Sub Transfer Agency Fees — Class L		6
Professional Fees		98
Registration Fees		42
Transfer Agency Fees — Class I (Note E)		11
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)		4
Shareholder Reporting Fees		29
Custodian Fees (Note F)		11
Trustees' Fees and Expenses		11
Pricing Fees		1
Other Expenses		26
Expenses Before Non Operating Expenses		2,569
Bank Overdraft Expense		1
Total Expenses		2,570
Rebate from Morgan Stanley Affiliate (Note G)		(16	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Net Expenses		2,553
Net Investment Loss		(1,316	)
Realized Gain:
Investments Sold		96,573
Foreign Currency Transactions		—	@
Net Realized Gain		96,573
Change in Unrealized Appreciation (Depreciation):
Investments		(9,843	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		86,730
Net Increase in Net Assets Resulting from Operations	$	85,414

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Mid Cap Growth Portfolio

Statements of Changes in Net Assets	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	(1,316	)	$	199
Net Realized Gain		96,573			311,807
Net Change in Unrealized Appreciation (Depreciation)		(9,843	)		(249,571	)
Net Increase in Net Assets Resulting from Operations		85,414			62,435
Distributions from and/or in Excess of:
Class I:
Net Realized Gain		(76,997	)		(158,083	)
Class A:
Net Realized Gain		(91,767	)		(165,422	)
Class L:
Net Realized Gain		(2,865	)		(3,634	)
Class C:
Net Realized Gain		(4	)		—
Class IS:
Net Realized Gain		(20,114	)		(24,994	)
Total Distributions		(191,747	)		(352,133	)
Capital Share Transactions:(1)
Class I:
Subscribed		73,072			37,850
Distributions Reinvested		76,163			151,514
Redeemed		(87,455	)		(373,738	)
Class A:
Subscribed		13,070			28,273
Distributions Reinvested		91,096			163,817
Redeemed		(91,486	)		(250,783	)
Class L:
Distributions Reinvested		2,827			3,515
Redeemed		(1,125	)		(2,689	)
Class C:
Subscribed		17			10	*
Class IS:
Subscribed		9,251			38,668
Distributions Reinvested		20,109			24,876
Redeemed		(19,000	)		(202,040	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		86,539			(380,727	)
Total Decrease in Net Assets		(19,794	)		(670,425	)
Net Assets:
Beginning of Period		602,589			1,273,014
End of Period (Including Accumulated Net Investment Loss of $(4,702) and $(3,386))	$	582,795		$	602,589
(1) Capital Share Transactions:
Class I:
Shares Subscribed		3,726			1,827
Shares Issued on Distributions Reinvested		4,569			8,618
Shares Redeemed		(4,814	)		(17,277	)
Net Increase (Decrease) in Class I Shares Outstanding		3,481			(6,832	)
Class A:
Shares Subscribed		788			1,503
Shares Issued on Distributions Reinvested		6,442			10,408
Shares Redeemed		(5,584	)		(13,489	)
Net Increase (Decrease) in Class A Shares Outstanding		1,646			(1,578	)
Class L:
Shares Issued on Distributions Reinvested		219			235
Shares Redeemed		(77	)		(145	)
Net Increase in Class L Shares Outstanding		142			90
Class C:
Shares Subscribed		1			1	*
Class IS:
Shares Subscribed		455			1,742
Shares Issued on Distributions Reinvested		1,196			1,407
Shares Redeemed		(1,015	)		(7,194	)
Net Increase (Decrease) in Class IS Shares Outstanding		636			(4,045	)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

*  For the period May 31, 2017 through September 30, 2017.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Mid Cap Growth Portfolio

	Class I
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	22.30		$	31.85		$	35.96		$	44.73		$	44.24		$	35.34
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		(0.03	)		0.05			0.03			(0.16	)		0.09			0.10
Net Realized and Unrealized Gain (Loss)		2.89			1.99			0.18			(2.33	)		3.04			10.10
Total from Investment Operations		2.86			2.04			0.21			(2.49	)		3.13			10.20
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.09	)		—			(0.12	)
Net Realized Gain		(6.92	)		(11.59	)		(4.32	)		(6.19	)		(2.64	)		(1.18	)
Total Distributions		(6.92	)		(11.59	)		(4.32	)		(6.28	)		(2.64	)		(1.30	)
Net Asset Value, End of Period	$	18.24		$	22.30		$	31.85		$	35.96		$	44.73		$	44.24
Total Return(3)		15.74	%(7)		16.16	%		0.19	%		(6.18	)%		7.25	%		29.92	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	261,470		$	242,140		$	563,397		$	2,164,565		$	4,708,900		$	5,174,440
Ratio of Expenses to Average Net Assets(9)		0.71	%(4)(8)		0.72	%(4)		0.73	%(4)		0.74	%(4)		0.75	%(4)		0.70	%(4)(5)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		0.71	%(4)(8)		0.71	%(4)		N/A			N/A			N/A			0.71	%(4)(5)
Ratio of Net Investment Income (Loss) to Average Net Assets(9)		(0.29	)%(4)(8)		0.21	%(4)		0.09	%(4)		(0.39	)%(4)		0.19	%(4)		0.27	%(4)(5)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(8)		0.01	%		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		52	%(7)		59	%		23	%		27	%		45	%		52	%
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.71	%(8)		0.72	%		0.74	%		N/A			N/A			N/A
Net Investment Income (Loss) to Average Net Assets		(0.29	)%(8)		0.21	%		0.08	%		N/A			N/A			N/A

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Mid Cap Growth Portfolio

	Class A
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	19.92		$	29.86		$	34.06		$	42.70		$	42.46		$	34.03
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(2)		(0.05	)		(0.03	)		(0.05	)		(0.26	)		(0.03	)		0.01
Net Realized and Unrealized Gain (Loss)		2.50			1.68			0.17			(2.19	)		2.91			9.70
Total from Investment Operations		2.45			1.65			0.12			(2.45	)		2.88			9.71
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.10	)
Net Realized Gain		(6.92	)		(11.59	)		(4.32	)		(6.19	)		(2.64	)		(1.18	)
Total Distributions		(6.92	)		(11.59	)		(4.32	)		(6.19	)		(2.64	)		(1.28	)
Net Asset Value, End of Period	$	15.45		$	19.92		$	29.86		$	34.06		$	42.70		$	42.46
Total Return(3)		15.51	%(7)		15.85	%		(0.12	)%		(6.40	)%		6.95	%		29.60	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	249,705		$	289,123		$	480,488		$	996,553		$	1,859,126		$	2,171,493
Ratio of Expenses to Average Net Assets(9)		1.03	%(4)(8)		1.01	%(4)		0.99	%(4)		1.00	%(4)		1.00	%(4)		0.95	%(4)(5)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.03	%(4)(8)		1.00	%(4)		N/A			N/A			N/A			0.96	%(4)(5)
Ratio of Net Investment Income (Loss) to Average Net Assets(9)		(0.61	)%(4)(8)		(0.17	)%(4)		(0.17	)%(4)		(0.65	)%(4)		(0.07	)%(4)		0.02	%(4)(5)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(8)		0.01	%		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		52	%(7)		59	%		23	%		27	%		45	%		52	%
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.03	%(8)		1.01	%		1.00	%		N/A			N/A			N/A
Net Investment Loss to Average Net Assets		(0.61	)%(8)		(0.16	)%		(0.18	)%		N/A			N/A			N/A

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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.
11

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Mid Cap Growth Portfolio

	Class L
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	18.79		$	29.01		$	33.39		$	42.20		$	42.20		$	33.97
Income (Loss) from Investment Operations:
Net Investment Loss(2)		(0.09	)		(0.16	)		(0.22	)		(0.46	)		(0.26	)		(0.15	)
Net Realized and Unrealized Gain (Loss)		2.33			1.53			0.16			(2.16	)		2.90			9.63
Total from Investment Operations		2.24			1.37			(0.06	)		(2.62	)		2.64			9.48
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.07	)
Net Realized Gain		(6.92	)		(11.59	)		(4.32	)		(6.19	)		(2.64	)		(1.18	)
Total Distributions		(6.92	)		(11.59	)		(4.32	)		(6.19	)		(2.64	)		(1.25	)
Net Asset Value, End of Period	$	14.11		$	18.79		$	29.01		$	33.39		$	42.20		$	42.20
Total Return(3)		15.27	%(7)		15.07	%		(0.73	)%		(6.94	)%		6.40	%		28.92	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	8,068		$	8,091		$	9,874		$	12,600		$	16,817		$	17,190
Ratio of Expenses to Average Net Assets(9)		1.59	%(4)(8)		1.63	%(4)		1.60	%(4)		1.55	%(4)		1.55	%(4)		1.46	%(4)(5)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.59	%(4)(8)		1.63	%(4)		N/A			N/A			N/A			1.46	%(4)(5)
Ratio of Net Investment Loss to Average Net Assets(9)		(1.17	)%(4)(8)		(0.85	)%(4)		(0.76	)%(4)		(1.20	)%(4)		(0.60	)%(4)		(0.41	)%(4)(5)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(8)		0.01	%		0.00	%(6)		0.00	%(6)		0.00	%(6)		0.00	%(6)
Portfolio Turnover Rate		52	%(7)		59	%		23	%		27	%		45	%		52	%
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.60	%(8)		1.64	%		1.61	%		N/A			N/A			N/A
Net Investment Loss to Average Net Assets		(1.18	)%(8)		(0.86	)%		(0.77	)%		N/A			N/A			N/A

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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 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 1.65% for Class L 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 29, 2018

Financial Highlights

Mid Cap Growth Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended March 29, 2018R (unaudited)			Period from May 31, 2017(1) to September 30, 2017
Net Asset Value, Beginning of Period	$	19.85		$	19.34
Income (Loss) from Investment Operations:
Net Investment Loss(2)		(0.12	)		(0.09	)
Net Realized and Unrealized Gain		2.48			0.60
Total from Investment Operations		2.36			0.51
Distributions from and/or in Excess of:
Net Realized Gain		(6.92	)		—
Net Asset Value, End of Period	$	15.29		$	19.85
Total Return(3)		15.01	%(6)		2.64	%(6)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	25		$	10
Ratio of Expenses to Average Net Assets(8)		1.90	%(4)(7)		1.90	%(4)(7)
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		1.90	%(4)(7)		1.90	%(4)(7)
Ratio of Net Investment Loss to Average Net Assets(8)		(1.49	)%(4)(7)		(1.34	)%(4)(7)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(7)		0.00	%(5)(7)
Portfolio Turnover Rate		52	%(6)		59	%(6)
(8) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		13.56	%(7)		15.31	%(7)
Net Investment Loss to Average Net Assets		(13.15	)%(7)		(14.75	)%(7)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(1)  Commencement of Offering.

(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 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)  Amount is less than 0.005%.

(6)  Not annualized.

(7)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Mid Cap Growth Portfolio

	Class IS
	Six Months Ended March 29, 2018R			Year Ended September 30,												Period from September 13, 2013(2)
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			to September 30, 2013
Net Asset Value, Beginning of Period	$	22.43		$	31.94		$	36.03		$	44.80		$	44.25		$	43.74
Income (Loss) from Investment Operations:
Net Investment Income (Loss)(3)		(0.02	)		0.04			0.07			(0.10	)		0.18			(0.00	)(4)
Net Realized and Unrealized Gain (Loss)		2.90			2.04			0.16			(2.33	)		3.01			0.51
Total from Investment Operations		2.88			2.08			0.23			(2.43	)		3.19			0.51
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.15	)		—			—
Net Realized Gain		(6.92	)		(11.59	)		(4.32	)		(6.19	)		(2.64	)		—
Total Distributions		(6.92	)		11.59			(4.32	)		(6.34	)		(2.64	)		—
Net Asset Value, End of Period	$	18.39		$	22.43		$	31.94		$	36.03		$	44.80		$	44.25
Total Return(5)		15.73	%(9)		16.24	%		0.25	%		(6.02	)%		7.39	%		1.17	%(9)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	63,527		$	63,225		$	219,255		$	1,087,612		$	662,560		$	10
Ratio of Expenses to Average Net Assets(11)		0.66	%(6)(10)		0.65	%(6)		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)		0.65	%(6)		N/A			N/A			N/A			0.58	%(6)(7)(10)
Ratio of Net Investment Income (Loss) to Average Net Assets(11)		(0.24	)%(6)(10)		0.18	%(6)		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)		0.01	%		0.00	%(8)		0.00	%(8)		0.00	%(8)		0.01	%(10)
Portfolio Turnover Rate		52	%(9)		59	%		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)		0.65	%		0.62	%		N/A			N/A			N/A
Net Investment Income (Loss) to Average Net Assets		(0.24	)%(10)		0.18	%		0.21	%		N/A			N/A			N/A

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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 29, 2018

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

The Fund has suspended offering of Class L shares for sale to all investors. Class L shareholders of the Fund do not have the option of purchasing additional Class L shares. However, existing Class L shareholders may invest in additional Class L shares 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) 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. 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. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (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. 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; (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

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Semi-Annual Report — March 29, 2018

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

periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (6) 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 in-

vestments. 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

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018:

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	$	6,062	$	—	$	—	$	6,062
Biotechnology		10,818		—		—		10,818
Commercial Services & Supplies		28,503		—		—		28,503
Construction Materials		18,331		—		—		18,331
Electronic Equipment, Instruments & Components		8,951		—		—		8,951
Health Care Equipment & Supplies		30,147		—		—		30,147
Health Care Providers & Services		28,451		—		—		28,451
Health Care Technology		73,858		—		—		73,858
Hotels, Restaurants & Leisure		16,204		—		—		16,204
Information Technology Services		4,033		—		—		4,033
Internet & Direct Marketing Retail		20,981		—		—		20,981
Internet Software & Services		131,707		—		11,458		143,165
Life Sciences Tools & Services		29,690		—		—		29,690
Machinery		15,286		—		—		15,286
Pharmaceuticals		1,536		—		—		1,536
Software		112,736		—		—		112,736

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)
Trading Companies & Distributors	$	1,238	$	—	$	—	$	1,238
Total Common Stocks		538,532		—		11,458		549,990
Short-Term Investments
Investment Company		68,857		—		—		68,857
Repurchase Agreements		—		6,507		—		6,507
Total Short-Term Investments		68,857		6,507		—		75,364
Call Options purchased		—		283		—		283
Total Assets	$	607,389	$	6,790	$	11,458	$	625,637

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 29, 2018, 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	$	11,528
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		(70	)
Realized gains (losses)		—
Ending Balance	$	11,458
Net change in unrealized appreciation (depreciation) from investments still held as of March 29, 2018	$	(70	)

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance:

	Fair Value at March 29, 2018 (000)		Valuation Technique	Unobservable Input	Range					Selected Value			Impact to Valuation from an Increase in Input
Internet Software & Services
Common Stock	$	11,458	Discounted Cash Flow	Weighted Average Cost of Capital		15.5	%	17.5	%		16.5	%	Decrease
				Perpetual Growth Rate		3.0	%	4.0	%		3.5	%	Increase
			Market Comparable Companies	Enterprise Value/ Revenue		3.7	x	15.3	x		4.6	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

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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.

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 ("SEC") 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.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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. 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 29, 2018:

	Asset Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Options Purchased	Investments, at Value (Options Purchased)	Currency Risk	$	283	(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 29, 2018 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Options Purchased)	$	(320	)(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 (Options Purchased)	$	(844	)(c)

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

At March 29, 2018, 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)
Options Purchased	$	283	(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

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 table presents derivative financial instruments that are subject to enforceable netting arrangements as of March 29, 2018:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Received(e) (000)			Net Amount (not less than $0) (000)
Royal Bank of Scotland	$	283	$	—	$	(283	)	$	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 29, 2018, the approximate average monthly amount outstanding for each derivative type is as follows:

Options Purchased:
Average monthly notional amount	319,899,000

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 securities 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 29, 2018:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	36,859	(f)	$	—	$	(36,859	)(g)(h)	$	0

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

(g) The Fund received cash collateral of approximately $37,523,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $285,000 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 ASC 860, "Transfers & Servicing: 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 29, 2018:

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	$	37,523	$	—	$	—	$	—	$	37,523
Total Borrowings	$	37,523	$	—	$	—	$	—	$	37,523
Gross amount of recognized liabilities for securities lending transactions									$	37,523

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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: Dividends 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 rela-

tive 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, 1.90% for Class C 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 29, 2018, 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.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 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. Effective January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

F. Custodian Fees: State Street (the "Custodian") also 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 29, 2018, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $298,989,000 and $425,953,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended March 29, 2018.

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 29, 2018, advisory fees paid were reduced by approximately $16,000 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 29, 2018 is as follows:

Affiliated Investment Company	Value September 30, 2017 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	44,741	$	262,497	$	238,381	$	100

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 29, 2018 (000)
Liquidity Funds	$	—	$	—	$	68,857

During the six months ended March 29, 2018, 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 29, 2018, 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

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 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. Each of the tax years in the four-year period ended September 30, 2017, 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 2017 and 2016 was as follows:

2017 Distributions Paid From:				2016 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	352,133	$	—	$	455,768

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, and a net operating loss, resulted in the following reclassifications among the components of net assets at September 30, 2017:

Accumulated Net Investment Loss (000)		Accumulated Undistributed Net Realized Gain (000)			Paid-in- Capital (000)
$	19,958	$	(16,053	)	$	(3,905	)

At September 30, 2017, 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)
$	—	$	221,500

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on the first day of the Fund's next taxable year. These also include non-specified ordinary losses incurred after December 31 but within the same taxable year. For the year ended September 30, 2017, the Fund deferred to October 1, 2017 for U.S. federal income tax purposes the following losses:

Qualified Late Year Ordinary Losses (000)		Post-October Capital Losses (000)
$	3,111	$	—

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 1 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 29, 2018, the Fund did not have any borrowings under the Facility.

J. Other: At March 29, 2018, 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 70.2%.

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018

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 non-affiliated 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:

  DST Asset Manager Solutions, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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:

DST Asset Manager Solutions, 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 non-affiliated 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 29, 2018

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

Michael J. Key
Vice President

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

DST Asset Manager Solutions, 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 to the SEC's Public Reference Section, Washington, D.C. 20549-1520.

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

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

© 2018 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTMCGSAN
2100494 EXP 05.31.19

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Short Duration Income Portfolio

Semi-Annual Report

March 29, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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	17
Notes to Financial Statements	22
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 fund 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 29, 2018

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 2018

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018 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 10/1/17		Actual Ending Account Value 3/29/18		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	$	1,003.80	$	1,023.49	$	1.45	$	1.46		0.29	%
Short Duration Income Portfolio Class A		1,000.00		1,002.60		1,022.19		2.75		2.77		0.55
Short Duration Income Portfolio Class L		1,000.00		1,001.30		1,020.94		3.99		4.03		0.80
Short Duration Income Portfolio Class C		1,000.00		998.90		1,018.45		6.48		6.54		1.30
Short Duration Income Portfolio Class IS		1,000.00		1,004.10		1,023.73		1.20		1.21		0.24

*  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 29, 2018R (unaudited)

Portfolio of Investments

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (83.8%)
Agency Adjustable Rate Mortgages (0.9%)
Federal Home Loan Mortgage Corporation,
Conventional Pools:
3.14%, 6/1/38 (a)	$	305	$	320
3.44%, 1/1/36 (a)		420		444
3.49%, 3/1/37 (a)		568		599
3.49%, 7/1/38 (a)		434		456
				1,819
Agency Bond — Consumer Discretionary (U.S. Government Guaranteed) (0.2%)
Safina Ltd.
2.00%, 12/30/23		500		490
Agency Fixed Rate Mortgages (1.2%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
4.50%, 12/1/24		411		427
6.50%, 9/1/19 - 4/1/24		1		1
7.50%, 11/1/19 - 5/1/35		30		34
8.00%, 8/1/32		17		20
8.50%, 8/1/31		17		20
Federal National Mortgage Association,
Conventional Pools:
4.50%, 6/1/24 - 7/1/24		622		648
5.00%, 12/1/23 - 12/1/24		320		336
6.00%, 9/1/37		91		102
6.50%, 2/1/28 - 10/1/32		237		267
7.00%, 7/1/29 - 3/1/37		264		292
7.50%, 8/1/37		40		47
8.00%, 4/1/33		73		86
8.50%, 10/1/32		33		40
Government National Mortgage Association,
Various Pools:
6.00%, 11/15/38		127		141
8.50%, 7/15/30		71		79
				2,540
Asset-Backed Securities (18.3%)
Ally Auto Receivables Trust,
1.47%, 4/15/20		317		316
1.75%, 12/15/21		730		721
AMSR Trust
1 Month USD LIBOR + 1.40%, 3.21%, 11/17/33 (a)(b)		600		603
AVANT Loans Funding Trust
7.80%, 9/15/20 (b)		123		124
Bayview Koitere Fund Trust
3.62%, 3/28/33 (b)		500		500
Bayview Opportunity Master Fund IIIa Trust,
3.10%, 9/28/32 (b)		265		264
3.35%, 11/28/32 (b)		553		552
Bayview Opportunity Master Fund IVb Trust
3.50%, 1/28/55 (a)(b)		337		340

	Face Amount (000)		Value (000)
BMW Vehicle Lease Trust,
1.98%, 5/20/20	$	775	$	770
2.07%, 10/20/20		210		208
CAM Mortgage Trust
3.25%, 6/15/57 (b)		297		300
CLUB Credit Trust,
2.39%, 4/17/23 (b)		39		39
2.42%, 9/15/23 (b)		304		304
3.67%, 5/15/24 (b)		350		350
Colony American Homes
1 Month USD LIBOR + 3.00%, 4.72%, 7/17/32 (a)(b)		600		603
Conn Funding II LP
2.73%, 7/15/19 (b)		26		26
Consumer Loan Underlying Bond Credit Trust
3.50%, 1/16/24 (b)		250		250
Finance of America Structured Securities Trust
3.62%, 11/25/27 (a)(b)		700		699
Ford Credit Auto Owner Trust
2.26%, 11/15/25 (b)		1,165		1,161
Foundation Finance Trust
3.30%, 7/15/33 (b)		631		623
GCAT LLC,
3.23%, 5/25/22 (b)		242		241
3.35%, 4/25/47 (b)		421		420
GMAT Trust
4.25%, 9/25/20 (b)		225		227
Hyundai Auto Receivables Trust
1.77%, 1/18/22		700		689
Invitation Homes Trust,
1 Month USD LIBOR + 1.35%, 3.16%, 6/17/32 (a)(b)		387		387
1 Month USD LIBOR + 2.75%, 4.50%, 8/17/32 (a)(b)		666		669
1 Month USD LIBOR + 3.15%, 4.96%, 6/17/32 (a)(b)		600		602
Mariner Finance Issuance Trust
3.62%, 2/20/29 (b)		550		553
Marlette Funding Trust
2.83%, 3/15/24 (b)		223		223
Mercedes-Benz Auto Lease Trust
1.35%, 8/15/19		621		618
MFA Trust
3.35%, 11/25/47 (b)		674		672
Nationstar HECM Loan Trust,
2.82%, 9/25/27 (a)(b)		250		250
2.94%, 5/25/27 (b)		600		596
Nissan Auto Lease Trust
1.91%, 4/15/20		670		664
Nissan Auto Receivables Owner Trust
1.75%, 10/15/21		780		768
North Carolina State Education Assistance Authority
3 Month USD LIBOR + 0.80%, 2.55%, 7/25/25 (a)		301		302

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Asset-Backed Securities (cont'd)
NRZ Excess Spread-Collateralized Notes,
4.37%, 1/25/23 (b)	$	377	$	375
4.59%, 2/25/23 (b)		674		672
Oak Hill Advisors Residential Loan Trust,
3.00%, 6/25/57 - 7/25/57 (b)		804		801
Ocwen Master Advance Receivables Trust,
2.50%, 9/15/48 (b)		700		700
2.72%, 8/16/49 (b)		600		591
Option One Mortgage Loan Trust Asset-Backed Certificates
1 Month USD LIBOR + 0.50%, 2.32%, 8/20/30 (a)		139		138
OSCAR US Funding Trust VII LLC
2.39%, 11/10/20 (a)(b)		220		220
OSCAR US Funding Trust VIII LLC
2.91%, 4/12/21 (b)		240		241
Panhandle-Plains Higher Education Authority, Inc.
3 Month USD LIBOR + 0.95%, 2.64%, 7/1/24 (a)		65		65
PFS Financing Corp.,
2.57%, 7/15/22 (b)		460		453
2.74%, 10/17/22 (b)		440		434
2.89%, 2/15/23 (b)		275		274
Pretium Mortgage Credit Partners I LLC,
3.25%, 8/27/32 - 3/28/57(b)		913		910
3.33%, 12/30/32 (a)(b)		640		640
3.50%, 4/29/32 (b)		630		631
Prosper Marketplace Issuance Trust,
3.36%, 11/15/23 (b)		525		522
3.90%, 6/17/24 (b)		700		700
RCO Mortgage LLC
3.38%, 8/25/22 (b)		678		677
SBA Small Business Investment Cos.
2.25%, 9/10/22		490		482
Skopos Auto Receivables Trust
5.43%, 12/15/23 (b)		395		396
Sofi Consumer Loan Program Trust
3.14%, 2/25/27 (b)		400		398
SPS Servicer Advance Receivables Trust Advance Receivables Backed Notes
2.53%, 11/16/48 (b)		700		699
Stanwich Mortgage Loan Co., LLC
3.60%, 3/16/22 (b)		231		231
Sunset Mortgage Loan Co., LLC
3.50%, 6/15/47 (b)		461		458
TLF National Tax Lien Trust
3.09%, 12/15/29 (b)		539		538
Towd Point Mortgage Trust,
2.47%, 2/25/57 (a)(b)		623		627
2.75%, 4/25/57 (a)(b)		164		163
U.S. Residential Opportunity Fund IV Trust
3.35%, 11/27/37 (b)		613		613

	Face Amount (000)		Value (000)
Velocity Commercial Capital Loan Trust
1 Month USD LIBOR + 1.80%, 3.67%, 10/25/46 (a)	$	247	$	251
Verizon Owner Trust,
1.68%, 5/20/21 (b)		610		603
2.06%, 9/20/21 (b)		375		371
2.09%, 4/20/22 (a)(b)		190		190
VOLT LIV LLC
3.50%, 2/25/47 (b)		210		210
VOLT LIX LLC
3.25%, 5/25/47 (b)		257		256
VOLT LV LLC
3.50%, 3/25/47 (b)		644		644
VOLT LVI LLC
3.50%, 3/25/47 (b)		464		465
VOLT LX LLC
3.25%, 6/25/47 (b)		312		311
VOLT LXI LLC
3.13%, 6/25/47 (b)		371		370
VOLT LXII LLC
3.13%, 9/25/47 (b)		443		442
VOLT LXIII LLC
3.00%, 10/25/47 (b)		650		645
VOLT LXIV LLC
3.38%, 10/25/47 (b)		637		637
VOLT NPL X LLC
4.75%, 10/26/54 (b)		23		23
VOLT XL LLC
4.38%, 11/27/45 (b)		154		155
VOLT XXV LLC
3.50%, 6/26/45 (b)		646		648
World Omni Auto Receivables Trust
1.49%, 12/15/20		1,158		1,153
				37,657
Collateralized Mortgage Obligations — Agency Collateral Series (2.1%)
Federal Home Loan Mortgage Corporation,
1.44%, 1/25/19		3		3
1.56%, 10/25/18		40		40
1.62%, 9/25/18		98		97
1.78%, 10/25/20		277		275
1.88%, 5/25/19		843		838
2.06%, 10/25/20		349		346
2.09%, 3/25/19		265		264
2.26%, 10/25/20		137		136
2.30%, 9/25/18		320		319
2.32%, 10/25/18		276		276
3.03%, 10/25/20 (a)		483		486
REMIC
7.50%, 9/15/29		567		641

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligations — Agency Collateral Series (cont'd)
Federal National Mortgage Association,
1 Month USD LIBOR + 0.22%, 1.81%, 6/25/18 (a)	$	1	$	1
1.55%, 4/25/18		5		5
2.17%, 9/25/19 (a)		526		523
				4,250
Commercial Mortgage-Backed Security (0.1%)
Hudsons Bay Simon JV Trust
1 Month USD LIBOR + 1.58%, 3.27%, 8/5/34 (a)(b)		185		186
Corporate Bonds (57.6%)
Finance (27.7%)
ABN Amro Bank N.V.
2.10%, 1/18/19 (b)		1,175		1,170
ABN Amro Bank N.V.
2.50%, 10/30/18 (b)		630		630
American Express Credit Corp.,
Series G
1.80%, 7/31/18		425		424
2.25%, 8/15/19		675		671
ANZ New Zealand Int'l Ltd.
2.20%, 7/17/20 (b)		680		667
Bank of America Corp.,
MTN
2.63%, 10/19/20		780		775
Bank of Montreal,
2.32%, 9/11/19 (a)		945		946
MTN
1.50%, 7/18/19		375		369
Bank of New York Mellon Corp. (The),
MTN
2.45%, 11/27/20		525		517
Bank of Nova Scotia (The),
1.95%, 1/15/19		725		721
2.15%, 7/14/20		430		422
BB&T Corp.,
MTN
2.25%, 2/1/19		580		577
Berkshire Hathaway Finance Corp.
1.70%, 3/15/19		500		497
BNZ International Funding Ltd.
2.35%, 3/4/19 (b)		650		647
BPCE SA,
MTN
2.25%, 1/27/20		600		592
Branch Banking & Trust Co.
2.10%, 1/15/20		1,000		986
Canadian Imperial Bank of Commerce,
Series BKTN
2.10%, 10/5/20		840		821
Capital One Financial Corp.
2.40%, 10/30/20		940		922

	Face Amount (000)		Value (000)
Citibank NA
2.10%, 6/12/20	$	830	$	814
Citigroup, Inc.,
2.05%, 6/7/19		1,100		1,090
2.45%, 1/10/20		475		471
Commonwealth Bank of Australia,
2.25%, 3/10/20 (b)		1,350		1,331
2.50%, 9/20/18		600		600
Credit Agricole SA
2.13%, 4/17/18 (b)		775		775
Credit Suisse AG,
Series G
2.30%, 5/28/19		650		646
Danske Bank A/S
1.65%, 9/6/19 (b)		1,700		1,675
DBS Group Holdings Ltd.
2.25%, 7/16/19 (b)		650		647
Deutsche Bank AG
2.70%, 7/13/20		750		734
DNB Bank ASA
2.13%, 10/2/20 (b)		700		685
ERP Operating LP
2.38%, 7/1/19		550		548
Fifth Third Bank
2.20%, 10/30/20		850		830
Goldman Sachs Group, Inc. (The),
2.30%, 12/13/19		860		851
2.63%, 1/31/19		790		790
HSBC USA, Inc.
2.25%, 6/23/19		659		654
ING Bank N.V.
2.05%, 8/17/18 (b)		1,075		1,073
Jackson National Life Global Funding,
1.88%, 10/15/18 (b)		275		274
2.20%, 1/30/20 (b)		550		544
JPMorgan Chase & Co.,
1.85%, 3/22/19		1,170		1,161
2.20%, 10/22/19		325		322
KeyBank NA
1.60%, 8/22/19		300		295
LeasePlan Corp. N.V.
2.88%, 1/22/19 (b)		500		499
Macquarie Bank Ltd.,
2.35%, 1/15/19 (b)		725		723
2.60%, 6/24/19 (b)		605		603
Manufacturers & Traders Trust Co.
2.10%, 2/6/20		560		551
MassMutual Global Funding II,
1.55%, 10/11/19 (b)		1,140		1,118
1.95%, 9/22/20 (b)		560		546
Metropolitan Life Global Funding I,
1.35%, 9/14/18 (b)		1,120		1,114
2.00%, 4/14/20 (b)		550		539

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
National Australia Bank Ltd.
1.38%, 7/12/19	$	1,220	$	1,200
National Bank of Canada
2.15%, 6/12/20		1,230		1,210
New York Life Global Funding
1.55%, 11/2/18 (b)		375		373
Nordea Bank AB,
1.63%, 9/30/19 (b)		900		887
1.88%, 9/17/18 (b)		800		798
PNC Bank NA,
1.95%, 3/4/19		875		870
2.50%, 1/22/21		960		946
Principal Life Global Funding II
2.15%, 1/10/20 (b)		1,425		1,400
Protective Life Global Funding,
1.72%, 4/15/19 (b)		700		693
2.70%, 11/25/20 (b)		525		520
Royal Bank of Canada
2.15%, 10/26/20		900		881
Santander Holdings USA, Inc.
2.70%, 5/24/19		365		364
Santander UK Group Holdings PLC
2.88%, 10/16/20		200		198
Santander UK PLC
2.00%, 8/24/18		925		923
Skandinaviska Enskilda Banken AB
2.30%, 3/11/20		530		523
Sumitomo Mitsui Banking Corp.,
1.76%, 10/19/18		400		398
2.45%, 1/10/19		630		628
Sumitomo Mitsui Trust Bank Ltd.
1.95%, 9/19/19 (b)		275		270
Suncorp-Metway Ltd.,
2.10%, 5/3/19 (b)		275		273
2.38%, 11/9/20 (b)		670		656
Svenska Handelsbanken AB
1.95%, 9/8/20		990		965
Synchrony Financial
3.00%, 8/15/19		800		798
Toronto-Dominion Bank (The),
MTN
1.95%, 1/22/19		575		572
UBS AG,
2.45%, 12/1/20 (b)		600		590
MTN
2.38%, 8/14/19		925		918
UnitedHealth Group, Inc.
2.70%, 7/15/20		500		498
US Bank NA
2.00%, 1/24/20		500		493
WEA Finance LLC/Westfield UK & Europe Finance PLC
2.70%, 9/17/19 (b)		600		597

	Face Amount (000)		Value (000)
Wells Fargo & Co.
2.15%, 1/15/19	$	1,960	$	1,952
Westpac Banking Corp.
1.65%, 5/13/19		625		618
				56,869
Industrials (28.0%)
Abbott Laboratories
2.35%, 11/22/19		542		538
AbbVie, Inc.,
1.80%, 5/14/18		1,150		1,150
2.50%, 5/14/20		575		568
Alimentation Couche-Tard, Inc.
2.35%, 12/13/19 (b)		660		653
Allergan Funding SCS
3.00%, 3/12/20		835		831
Amazon.com, Inc.
1.90%, 8/21/20 (b)		900		882
American Honda Finance Corp.,
1.95%, 7/20/20		250		245
MTN
1.20%, 7/12/19		530		520
2.45%, 9/24/20		550		546
Amgen, Inc.
2.20%, 5/22/19		790		785
Analog Devices, Inc.
2.85%, 3/12/20		230		230
Anheuser-Busch InBev Finance, Inc.
1.90%, 2/1/19		775		773
AstraZeneca PLC
1.75%, 11/16/18		1,495		1,487
AT&T, Inc.
2.45%, 6/30/20		1,225		1,212
AutoZone, Inc.
1.63%, 4/21/19		740		731
Baidu, Inc.
3.25%, 8/6/18		225		225
BAT International Finance PLC
2.75%, 6/15/20 (b)		450		446
Baxalta, Inc.
2.88%, 6/23/20		550		546
Bayer US Finance LLC
2.38%, 10/8/19 (b)		600		595
Becton Dickinson and Co.
2.68%, 12/15/19		300		298
Biogen, Inc.
2.90%, 9/15/20		525		522
BMW US Capital LLC,
1.50%, 4/11/19 (b)		700		692
2.15%, 4/6/20 (b)		400		394
BP Capital Markets PLC
2.32%, 2/13/20		400		396

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Cardinal Health, Inc.
1.95%, 6/14/19	$	725	$	717
Caterpillar Financial Services Corp.,
MTN
1.35%, 5/18/19		790		779
1.80%, 11/13/18		300		299
CBS Corp.
2.30%, 8/15/19		625		620
Celgene Corp.
2.88%, 8/15/20		525		523
Chevron Corp.
1.99%, 3/3/20		1,260		1,246
CVS Health Corp.,
1.90%, 7/20/18		550		549
3.13%, 3/9/20		960		961
Daimler Finance North America LLC,
1.50%, 7/5/19 (b)		500		492
2.30%, 1/6/20 (b)		325		321
2.38%, 8/1/18 (b)		750		750
Danone SA
1.69%, 10/30/19 (b)		875		858
Dell International LLC/EMC Corp.
3.48%, 6/1/19 (b)		900		904
Delta Air Lines, Inc.
2.88%, 3/13/20		575		571
Deutsche Telekom International Finance BV
6.00%, 7/8/19		650		676
Discovery Communications LLC
2.20%, 9/20/19		975		965
Dominion Energy Gas Holdings LLC
2.50%, 12/15/19		825		818
DR Horton, Inc.
2.55%, 12/1/20		480		473
EI du Pont de Nemours & Co.
2.20%, 5/1/20		700		690
EMD Finance LLC
2.40%, 3/19/20 (b)		575		569
Energy Transfer Partners LP
2.50%, 6/15/18		575		575
Enterprise Products Operating LLC,
2.55%, 10/15/19		325		323
2.80%, 2/15/21		780		772
Ford Motor Credit Co., LLC,
2.26%, 3/28/19		450		447
2.68%, 1/9/20		725		719
5.00%, 5/15/18		395		396
General Motors Co.
3 Month USD LIBOR + 0.80%, 2.59%, 8/7/20 (a)		950		951
General Motors Financial Co., Inc.
3.15%, 1/15/20		600		600

	Face Amount (000)		Value (000)
Gilead Sciences, Inc.,
1.85%, 9/20/19	$	445	$	440
2.55%, 9/1/20		500		496
Hewlett Packard Enterprise Co.
2.10%, 10/4/19 (b)		800		790
Hyundai Capital America,
2.50%, 3/18/19 (b)		775		770
2.55%, 4/3/20 (b)		175		172
2.60%, 3/19/20 (b)		325		321
JM Smucker Co. (The)
2.50%, 3/15/20		225		223
Kinder Morgan, Inc.
3.05%, 12/1/19		650		649
Kroger Co. (The)
2.00%, 1/15/19		750		745
Lockheed Martin Corp.,
1.85%, 11/23/18		555		553
2.50%, 11/23/20		225		223
McDonald's Corp.,
MTN
2.20%, 5/26/20		550		543
McKesson Corp.
2.28%, 3/15/19		790		786
Mead Johnson Nutrition Co.
3.00%, 11/15/20		175		174
Medtronic, Inc.
2.50%, 3/15/20		550		547
Microsoft Corp.
1.85%, 2/6/20		775		767
Molson Coors Brewing Co.
1.45%, 7/15/19		775		761
Nissan Motor Acceptance Corp.,
2.00%, 3/8/19 (b)		575		571
2.35%, 3/4/19 (b)		570		569
2.65%, 9/26/18 (b)		220		220
3.15%, 3/15/21 (b)		590		590
Northrop Grumman Corp.
2.08%, 10/15/20		580		568
Novartis Capital Corp.
1.80%, 2/14/20		475		468
Orange SA
2.75%, 2/6/19		625		625
Reynolds American, Inc.
2.30%, 6/12/18		525		525
Rockwell Collins, Inc.
1.95%, 7/15/19		800		792
Ryder System, Inc.,
MTN
2.65%, 3/2/20		125		124
Schlumberger Finance Canada Ltd.
2.20%, 11/20/20 (b)		410		405
Scripps Networks Interactive, Inc.
2.75%, 11/15/19		575		571

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Shell International Finance BV
1.38%, 9/12/19	$	700	$	688
Sherwin-Williams Co. (The)
2.25%, 5/15/20		925		910
Siemens Financieringsmaatschappij N.V.,
1.30%, 9/13/19 (b)		900		881
2.15%, 5/27/20 (b)		550		541
Southwest Airlines Co.
2.75%, 11/6/19		600		599
Time Warner Cable LLC
6.75%, 7/1/18		400		404
Toyota Motor Credit Corp.,
2.10%, 1/17/19		500		498
MTN
1.40%, 5/20/19		625		617
TSMC Global Ltd.
1.63%, 4/3/18 (b)		800		800
Tyson Foods, Inc.
2.65%, 8/15/19		600		597
Union Pacific Corp.
2.25%, 6/19/20		550		545
United Technologies Corp.
1.90%, 5/4/20		800		784
Verizon Communications, Inc.
2.63%, 2/21/20		250		249
Volkswagen Group of America Finance LLC
2.40%, 5/22/20 (b)		550		543
				57,473
Utilities (1.9%)
Berkshire Hathaway Energy Co.
2.38%, 1/15/21 (b)		375		369
Dominion Energy, Inc.,
Series B
1.60%, 8/15/19		225		221
DTE Energy Co.
1.50%, 10/1/19		425		416
Eversource Energy
1.45%, 5/1/18		525		525
Origin Energy Finance Ltd.
3.50%, 10/9/18 (b)		200		200
Public Service Enterprise Group, Inc.
1.60%, 11/15/19		250		244
Sempra Energy
2.40%, 3/15/20		600		592
Southern Co. (The)
2.15%, 9/1/19		725		716
Southern Power Co.,
Series D
1.95%, 12/15/19		675		664
				3,947
				118,289

	Face Amount (000)		Value (000)
Mortgages — Other (2.1%)
CHL Mortgage Pass-Through Trust
5.50%, 5/25/34	$	163	$	166
CIM Trust
3.00%, 4/25/57 (a)(b)		715		711
Federal Home Loan Mortgage Corporation,
2.42%, 4/25/30 (a)		240		240
1 Month USD LIBOR + 0.90%, 2.77%, 10/25/27 (a)		17		17
1 Month USD LIBOR + 1.10%, 2.97%, 12/25/28 (a)		93		93
1 Month USD LIBOR + 1.20%, 3.07%, 10/25/29 (a)		285		288
1 Month USD LIBOR + 1.45%, 3.32%, 7/25/28 (a)		10		10
1 Month USD LIBOR + 1.75%, 3.62%, 9/25/28 (a)		8		8
Federal National Mortgage Association,
1 Month USD LIBOR + 1.30%, 3.17%, 4/25/29 - 7/25/29 (a)		1,043		1,052
1 Month USD LIBOR + 1.45%, 3.32%, 1/25/29 (a)		190		192
1 Month USD LIBOR + 2.20%, 4.07%, 10/25/28 (a)		123		124
Galton Funding Mortgage Trust
3.50%, 11/25/57 (a)(b)		736		740
New Residential Mortgage Loan Trust,
3.75%, 5/28/52 - 8/25/55 (a)(b)		422		428
Sequoia Mortgage Trust
1 Month USD LIBOR + 0.62%, 2.44%, 8/20/34 (a)		295		288
				4,357
Sovereign (0.2%)
Korea Development Bank (The)
3 Month USD LIBOR + 0.45%, 2.41%, 2/27/20 (a)		320		319
U.S. Agency Security (1.1%)
Private Export Funding Corp.
1.45%, 8/15/19		2,300		2,270
Total Fixed Income Securities (Cost $173,452)				172,177
	Shares
Short-Term Investments (11.2%)
Investment Company (0.9%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $1,771)		1,770,562		1,771
	Face Amount (000)
U.S. Treasury Security (0.7%)
U.S. Treasury Bill
1.80%, 8/9/18 (c)(d) (Cost $1,341)	$	1,350		1,341

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

	Face Amount (000)		Value (000)
Certificates of Deposit (1.0%)
International Banks (1.0%)
Credit Agricole Corporate and Investment Bank
1 Month USD LIBOR + 0.25%, 2.12%, 9/25/18 (a)	$	1,130	$	1,129
Sumitomo Mitsui Banking Corp.
1 Month USD LIBOR + 0.22%, 2.03%, 5/18/18 (a)		930		930
Total Certificates of Deposit (Cost $2,060)				2,059
Commercial Paper (8.6%)
Computer Technology (0.5%)
HP, Inc.
2.46%, 4/25/18 (e)		980		978
Diversified Financial Services (0.9%)
Lam Research Corp.,
2.37%, 4/12/18 (e)		975		974
2.73%, 6/15/18 (b)(e)		970		970
				1,944
Domestic Bank (0.4%)
JP Morgan Securities LLC
1.66%, 6/22/18 (e)		950		945
Energy (2.9%)
CenterPoint Energy, Inc.
2.61%, 6/8/18 (e)		975		970
Duke Energy Corp.
2.11%, 4/9/18 (e)		1,950		1,949
NextEra Energy, Inc.
1.87%, 4/6/18 (e)		2,000		2,000
Sempra Energy
2.65%, 6/12/18 (e)		980		975
				5,894
Hospitality (0.5%)
Marriott International, Inc.
2.65%, 6/25/18 (e)		1,000		994
International Banks (1.1%)
HSBC Bank PLC
2.49%, 2/21/19 (e)		1,330		1,298
Skandinaviska Enskilda Banken AB
1.61%, 7/23/18 (e)		960		953
				2,251
Multi-Media (1.0%)
Walt Disney Co. (The)
1.67%, 4/13/18 (e)		2,000		1,999

	Face Amount (000)		Value (000)
Transportation (0.5%)
Ryder System, Inc.
2.44%, 4/23/18 (e)	$	980	$	979
Wireless Telecom Services (0.8%)
Time Warner Cable, Inc.
2.54%, 5/21/18 (e)		980		976
Vodafone Group PLC
1.83%, 10/4/18 (e)		650		641
				1,617
Total Commercial Paper (Cost $17,606)				17,601
Total Short-Term Investments (Cost $22,778)				22,772
Total Investments (95.0%) (Cost $196,230) (f)(g)				194,949
Other Assets in Excess of Liabilities (5.0%)				10,330
Net Assets (100.0%)			$	205,279

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(a)  Floating or Variable rate securities: The rates disclosed are as of March 29, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

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

(c)  Rate shown is the yield to maturity at March 29, 2018.

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

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

(f)  Securities are available for collateral in connection with open futures contracts.

(g)  At March 29, 2018, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $159,000 and the aggregate gross unrealized depreciation is approximately $1,460,000, resulting in net unrealized depreciation of approximately $1,301,000.

LIBOR  London Interbank Offered Rate.

MTN  Medium Term Note.

REMIC  Real Estate Mortgage Investment Conduit.

USD  United States Dollar.

Futures Contracts:

The Fund had the following futures contracts open at March 29, 2018:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Depreciation (000)
Short:
U.S. Treasury 2 yr. Note		128	Jun-18		(25,600	)	$	(27,214	)	$	(14	)
U.S. Treasury 5 yr. Note		10	Jun-18		(1,000	)		(1,145	)		(6	)
										$	(20	)

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Short Duration Income Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		29.5	%
Finance		29.2
Asset-Backed Securities		19.3
Short-Term Investments		11.7
Other*		10.3
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 $28,359,000 with total unrealized depreciation of approximately $20,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Short Duration Income Portfolio

Statement of Assets and Liabilities	March 29, 2018 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $194,459)	$	193,178
Investment in Security of Affiliated Issuer, at Value (Cost $1,771)		1,771
Total Investments in Securities, at Value (Cost $196,230)		194,949
Cash		25
Receivable for Fund Shares Sold		10,092
Interest and Paydown Receivable		728
Receivable from Affiliate		2
Receivable for Variation Margin on Futures Contracts		—	@
Other Assets		78
Total Assets		205,874
Liabilities:
Payable for Fund Shares Redeemed		328
Payable for Professional Fees		65
Payable for Trustees' Fees and Expenses		56
Payable for Sub Transfer Agency Fees — Class I		23
Payable for Sub Transfer Agency Fees — Class A		18
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Shareholder Services Fees — Class A		20
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Administration Fees		13
Payable for Custodian Fees		11
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		2
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Advisory Fees		1
Other Liabilities		54
Total Liabilities		595
Net Assets	$	205,279
Net Assets Consist of:
Paid-in-Capital	$	243,736
Accumulated Undistributed Net Investment Income		546
Accumulated Net Realized Loss		(37,702	)
Unrealized Appreciation (Depreciation) on:
Investments		(1,281	)
Futures Contracts		(20	)
Foreign Currency Translations		—	@
Net Assets	$	205,279

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Short Duration Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 29, 2018 (000)
CLASS I:
Net Assets	$	113,117
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		13,960,335
Net Asset Value, Offering and Redemption Price Per Share	$	8.10
CLASS A:
Net Assets	$	91,685
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		11,289,008
Net Asset Value, Offering and Redemption Price Per Share	$	8.12
CLASS L:
Net Assets	$	414
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		51,055
Net Asset Value, Offering and Redemption Price Per Share	$	8.10
CLASS C:
Net Assets	$	52
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		6,390
Net Asset Value, Offering and Redemption Price Per Share	$	8.08
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	$	8.10

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Short Duration Income Portfolio

Statement of Operations	Six Months Ended March 29, 2018 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	2,198
Dividends from Security of Affiliated Issuer (Note G)		22
Total Investment Income		2,220
Expenses:
Advisory Fees (Note B)		193
Shareholder Services Fees — Class A (Note D)		112
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Administration Fees (Note C)		77
Professional Fees		70
Sub Transfer Agency Fees — Class I		20
Sub Transfer Agency Fees — Class A		21
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Registration Fees		29
Shareholder Reporting Fees		20
Pricing Fees		16
Custodian Fees (Note F)		8
Transfer Agency Fees — Class I (Note E)		2
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
Trustees' Fees and Expenses		5
Other Expenses		12
Total Expenses		592
Waiver of Advisory Fees (Note B)		(187	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(3	)
Net Expenses		398
Net Investment Income		1,822
Realized Gain:
Investments Sold		352
Futures Contracts		551
Net Realized Gain		903
Change in Unrealized Appreciation (Depreciation):
Investments		(1,930	)
Foreign Currency Translations		(—	@)
Futures Contracts		(136	)
Net Change in Unrealized Appreciation (Depreciation)		(2,066	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(1,163	)
Net Increase in Net Assets Resulting from Operations	$	659

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Short Duration Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,822		$	3,048
Net Realized Gain		903			1,488
Net Change in Unrealized Appreciation (Depreciation)		(2,066	)		(858	)
Net Increase in Net Assets Resulting from Operations		659			3,678
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1,034	)		(1,867	)
Class A:
Net Investment Income		(780	)		(1,107	)
Class L:
Net Investment Income		(3	)		(6	)
Class C:
Net Investment Income		(—	@)		(1	)
Class IS:
Net Investment Income		(—	@)		(—	@)
Total Distributions		(1,817	)		(2,981	)
Capital Share Transactions:(1)
Class I:
Subscribed		25,314			31,538
Distributions Reinvested		1,032			1,865
Redeemed		(15,739	)		(29,309	)
Class A:
Subscribed		30,318			51,478
Distributions Reinvested		773			1,088
Redeemed		(21,027	)		(37,490	)
Class L:
Exchanged		28			56
Distributions Reinvested		2			4
Redeemed		(25	)		(55	)
Class C:
Distributions Reinvested		—	@		—	@
Redeemed		(—	@)		(44	)
Net Increase in Net Assets Resulting from Capital Share Transactions		20,676			19,131
Total Increase in Net Assets		19,518			19,828
Net Assets:
Beginning of Period		185,761			165,933
End of Period (Including Accumulated Undistributed Net Investment Income of $546 and $541)	$	205,279		$	185,761

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Short Duration Income Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
(1)   Capital Share Transactions:
Class I:
Shares Subscribed		3,120			3,881
Shares Issued on Distributions Reinvested		128			230
Shares Redeemed		(1,939	)		(3,609	)
Net Increase in Class I Shares Outstanding		1,309			502
Class A:
Shares Subscribed		3,722			6,314
Shares Issued on Distributions Reinvested		95			133
Shares Redeemed		(2,583	)		(4,608	)
Net Increase in Class A Shares Outstanding		1,234			1,839
Class L:
Shares Exchanged		4			7
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(3	)		(6	)
Net Increase in Class L Shares Outstanding		1			1
Class C:
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(—	@@)		(5	)
Net Increase (Decrease) in Class C Shares Outstanding		—	@@		(5	)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Short Duration Income Portfolio

	Class I
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	8.15		$	8.12		$	7.71		$	7.81		$	7.76		$	7.80
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.08			0.16			0.15			0.13			0.12			0.11
Net Realized and Unrealized Gain (Loss)		(0.05	)		0.02			0.41			(0.12	)		0.04			(0.03	)
Total from Investment Operations		0.03			0.18			0.56			0.01			0.16			0.08
Distributions from and/or in Excess of:
Net Investment Income		(0.08	)		(0.15	)		(0.15	)		(0.11	)		(0.11	)		(0.12	)
Net Asset Value, End of Period	$	8.10		$	8.15		$	8.12		$	7.71		$	7.81		$	7.76
Total Return(3)		0.38	%(4)(11)		2.29	%(5)		7.43	%(6)		0.06	%		2.06	%		1.09	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	113,117		$	103,131		$	98,603		$	102,808		$	119,059		$	122,958
Ratio of Expenses to Average Net Assets(13)		0.29	%(7)(12)		0.30	%(7)		0.36	%(7)(9)		0.53	%(7)		0.53	%(7)		0.71	%(7)(8)
Ratio of Net Investment Income to Average Net Assets(13)		2.00	%(7)(12)		1.92	%(7)		1.97	%(7)(9)		1.72	%(7)		1.49	%(7)		1.45	%(7)(8)
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)
Portfolio Turnover Rate		17	%(11)		43	%		66	%		41	%		60	%		66	%
(13) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.49	%(12)		0.53	%		0.65	%		0.63	%		0.78	%		0.72	%
Net Investment Income to Average Net Assets		1.80	%(12)		1.68	%		1.68	%		1.62	%		1.24	%		1.44	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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 0.12% due to the receipt of proceeds from a 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 0.26%.

(5)  Performance was positively impacted by approximately 0.51% due to the receipt of proceeds from a 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 1.78%.

(6)  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%.

(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 0.53% for Class I 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 0.30% for Class I shares. Prior to January 11, 2016, the maximum ratio was 0.53% for Class I shares.

(10)  Amount is less than 0.005%.

(11)  Not annualized.

(12)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Short Duration Income Portfolio

	Class A
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	8.17		$	8.13		$	7.72		$	7.83		$	7.77		$	7.80
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.07			0.14			0.14			0.11			0.09			0.09
Net Realized and Unrealized Gain (Loss)		(0.05	)		0.03			0.40			(0.14	)		0.05			(0.01	)
Total from Investment Operations		0.02			0.17			0.54			(0.03	)		0.14			0.08
Distributions from and/or in Excess of:
Net Investment Income		(0.07	)		(0.13	)		(0.13	)		(0.08	)		(0.08	)		(0.11	)
Net Asset Value, End of Period	$	8.12		$	8.17		$	8.13		$	7.72		$	7.83		$	7.77
Total Return(3)		0.26	%(4)(11)		2.15	%(5)		7.15	%(6)		(0.41	)%		1.78	%		0.84	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	91,685		$	82,157		$	66,821		$	1,761		$	940		$	749
Ratio of Expenses to Average Net Assets(13)		0.55	%(7)(12)		0.55	%(7)		0.52	%(7)(9)		0.88	%(7)		0.88	%(7)		0.97	%(7)(8)
Ratio of Net Investment Income to Average Net Assets(13)		1.75	%(7)(12)		1.66	%(7)		1.83	%(7)(9)		1.40	%(7)		1.14	%(7)		1.15	%(7)(8)
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)
Portfolio Turnover Rate		17	%(11)		43	%		66	%		41	%		60	%		66	%
(13) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.75	%(12)		0.80	%		0.80	%		1.22	%		1.10	%		1.00	%
Net Investment Income to Average Net Assets		1.55	%(12)		1.41	%		1.55	%		1.06	%		0.92	%		1.12	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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 0.12% due to the receipt of proceeds from a 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 A shares would have been approximate 0.14%.

(5)  Performance was positively impacted by approximately 0.50% due to the receipt of proceeds from a 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 A shares would have been approximately 1.65%.

(6)  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%.

(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 0.88% for Class A 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 0.55% for Class A shares. Prior to January 11, 2016, the maximum ratio was 0.88% for Class A 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 29, 2018

Financial Highlights

Short Duration Income Portfolio

	Class L
	Six Months Ended March 29, 2018R			Year Ended September 30,
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			2015			2014			2013
Net Asset Value, Beginning of Period	$	8.15		$	8.11		$	7.70		$	7.80		$	7.75		$	7.80
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.06			0.11			0.11			0.08			0.06			0.07
Net Realized and Unrealized Gain (Loss)		(0.05	)		0.04			0.41			(0.13	)		0.05			(0.03	)
Total from Investment Operations		0.01			0.15			0.52			(0.05	)		0.11			0.04
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.11	)		(0.11	)		(0.05	)		(0.06	)		(0.09	)
Net Asset Value, End of Period	$	8.10		$	8.15		$	8.11		$	7.70		$	7.80		$	7.75
Total Return(3)		0.13	%(4)(11)		1.90	%(5)		6.79	%(6)		(0.68	)%		1.38	%		0.48	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	414		$	410		$	403		$	439		$	200		$	95
Ratio of Expenses to Average Net Assets(13)		0.80	%(7)(12)		0.80	%(7)		0.92	%(7)(9)		1.23	%(7)		1.23	%(7)		1.24	%(7)(8)
Ratio of Net Investment Income to Average Net Assets(13)		1.50	%(7)(12)		1.41	%(7)		1.42	%(7)(9)		1.05	%(7)		0.79	%(7)		0.85	%(7)(8)
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)
Portfolio Turnover Rate		17	%(11)		43	%		66	%		41	%		60	%		66	%
(13) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.49	%(12)		1.70	%		1.83	%		1.80	%		3.48	%		1.34	%
Net Investment Income (Loss) to Average Net Assets		0.81	%(12)		0.51	%		0.51	%		0.48	%		(1.46	)%		0.75	%

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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)  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 0.12% due to the receipt of proceeds from a 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 L shares would have been approximate 0.01%.

(5)  Performance was positively impacted by approximately 0.51% due to the receipt of proceeds from a 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 L shares would have been approximately 1.39%.

(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 was1.23% 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.
19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Short Duration Income Portfolio

	Class C
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from April 30, 2015(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			September 30, 2015
Net Asset Value, Beginning of Period	$	8.13		$	8.09		$	7.69		$	7.78
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.04			0.07			0.07			0.02
Net Realized and Unrealized Gain (Loss)		(0.05	)		0.04			0.41			(0.09	)
Total from Investment Operations		(0.01	)		0.11			0.48			(0.07	)
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.07	)		(0.08	)		(0.02	)
Net Asset Value, End of Period	$	8.08		$	8.13		$	8.09		$	7.69
Total Return(4)		(0.11	)%(5)(11)		1.34	%(6)		6.24	%(7)		(0.92	)%(11)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	52		$	52		$	95		$	71
Ratio of Expenses to Average Net Assets(13)		1.30	%(8)(12)		1.30	%(8)		1.39	%(8)(9)		1.63	%(8)(12)
Ratio of Net Investment Income to Average Net Assets(13)		1.00	%(8)(12)		0.85	%(8)		0.93	%(8)(9)		0.73	%(8)(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)(12)
Portfolio Turnover Rate		17	%(11)		43	%		66	%		41	%(11)
(13) Supplemental Information on the Ratios to Average Net Assets:

Ratios Before Expense Limitation:

Expenses to Average Net Assets	5.17	%(12)	4.92	%	3.95	%	6.73	%(12)
Net Investment Loss to Average Net Assets	(2.87	)%(12)	(2.77	)%	(1.63	)%	(4.37	)%(12)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 0.12% due to the receipt of proceeds from a 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 C shares would have been approximate (0.23)%.

(6)  Performance was positively impacted by approximately 0.50% due to the receipt of proceeds from a 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 C shares would have been approximately 0.84%.

(7)  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%.

(8)  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."

(9)  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.

(10)  Amount is less than 0.005%.

(11)  Not annualized.

(12)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Short Duration Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Six Months Ended March 29, 2018R(unaudited)			Year Ended September 30, 2017			Period from January 11, 2016(2) to September 30, 2016(1)
Net Asset Value, Beginning of Period	$	8.15		$	8.11		$	7.65
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.08			0.16			0.17
Net Realized and Unrealized Gain (Loss)		(0.05	)		0.04			0.39
Total from Investment Operations		0.03			0.20			0.56
Distributions from and/or in Excess of:
Net Investment Income		(0.08	)		(0.16	)		(0.10	)
Net Asset Value, End of Period	$	8.10		$	8.15		$	8.11
Total Return(4)		0.41	%(5)(10)		2.46	%(6)		7.42	%(7)(10)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	11		$	11		$	11
Ratio of Expenses to Average Net Assets(12)		0.24	%(8)(11)		0.25	%(8)		0.25	%(8)(11)
Ratio of Net Investment Income to Average Net Assets(12)		2.05	%(8)(11)		1.96	%(8)		2.20	%(8)(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		17	%(10)		43	%		66	%(10)
(12) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		16.27	%(11)		16.24	%		17.12	%(11)
Net Investment Loss to Average Net Assets		(13.98	)%(11)		(14.03	)%		(14.67	)%(11)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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 0.12% due to the receipt of proceeds from a 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 IS shares would have been approximate 0.29%.

(6)  Performance was positively impacted by approximately 0.51% due to the receipt of proceeds from a 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 IS shares would have been approximately 1.95%.

(7)  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%.

(8)  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."

(9)  Amount is less than 0.005%.

(10)  Not annualized.

(11)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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. 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 in additional Class L and Class C shares 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) 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

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgages	$	—	$	1,819	$	—	$	1,819
Agency Bonds — Consumer Discretionary (U.S. Government Guaranteed)		—		490		—		490
Agency Fixed Rate Mortgages		—		2,540		—		2,540
Asset-Backed Securities		—		37,657		—		37,657
Collateralized Mortgage Obligations — Agency Collateral Series		—		4,250		—		4,250
Commercial Mortgage-Backed Securities		—		186		—		186

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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)
Corporate Bonds	$	—		$	118,289	$	—	$	118,289
Mortgages — Other		—			4,357		—		4,357
Sovereign		—			319		—		319
U.S. Agency Security		—			2,270		—		2,270
Total Fixed Income Securities		—			172,177		—		172,177
Short-Term Investments
Investment Company		1,771			—		—		1,771
U.S. Treasury Security		—			1,341		—		1,341
Certificates of Deposit		—			2,059		—		2,059
Commercial Paper		—			17,601		—		17,601
Total Short-Term Investments		1,771			21,001		—		22,772
Total Assets		1,771			193,178		—		194,949
Liabilities:
Futures Contracts		(20	)		—		—		(20	)
Total Liabilities		(20	)		—		—		(20	)
Total	$	1,751		$	193,178	$	—	$	194,929

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 29, 2018, 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

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 ("SEC") 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.

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of March 29, 2018:

	Liability Derivatives Statement of Assets and Liabilities Location	Primary Risk Exposure	Value (000)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk	$	(20	)(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 29, 2018 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	551
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(136	)

For the six months ended March 29, 2018, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	28,356,000

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

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

may be recorded as soon as the 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 a one-time settlement of class action lawsuit involving the Fund's past holdings of approximately $522,000, of which the impact 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 one year 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 29, 2018, approximately $187,000 of advisory fees were waived and approximately $4,000 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

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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/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. Effective January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

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") also 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 29, 2018, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $30,539,000 and $27,966,000, respectively. For the six months ended March 29, 2018, purchases and sales of long-term U.S. Government securities were approximately $250,000 and $2,104,000, 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 29, 2018, advisory fees paid were reduced by approximately $3,000 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 29, 2018 is as follows:

Affiliated Investment Company	Value September 30, 2017 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	3,863	$	52,392	$	54,484	$	22

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 29, 2018 (000)
Liquidity Funds	$	—	$	—	$	1,771

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 29, 2018, the Fund did not engage in any cross-trade transactions.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 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. Each of the tax years in the four-year period ended September 30, 2017, 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 2017 and 2016 was as follows:

2017 Distributions Paid From: Ordinary Income (000)		2016 Distributions Paid From: Ordinary Income (000)
$	2,981	$	2,550

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 an expired capital loss carryforward, resulted in the following reclassifications among the components of net assets at September 30, 2017:

Accumulated Undistributed Net Investment Income (000)			Accumulated Net Realized Loss (000)		Paid-in- Capital (000)
$	(—	@)	$	200,321	$	(200,321	)

@ Amount is less than 500

At September 30, 2017, 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)
$	595	$	—

At September 30, 2017, the Fund had available for federal income tax purposes unused short term and long term capital losses, of approximately $1,096,000*, of which $3,349,000*, respectively, that do not have an expiration date.

In addition, at September 30, 2017, the Fund had available for federal income tax purposes unused capital losses which will expire on the indicated dates:

Amount (000)*		Expiration
$	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.

Capital loss carryforwards of approximately $200,321,000 expired during the year ended September 30, 2017.

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, 2017, the Fund utilized

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

capital loss carryforwards for U.S. federal income tax purposes of approximately $1,608,000.

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 1 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 29, 2018, the Fund did not have any borrowings under the Facility.

J. Other: At March 29, 2018, 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 78.7%.

K. Accounting Pronouncement: In March 2017, FASB issued an Accounting Standard Update, ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the "ASU") which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 non-affiliated 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:

  DST Asset Manager Solutions, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

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Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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:

DST Asset Manager Solutions, 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 non-affiliated 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 29, 2018

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

Michael J. Key
Vice President

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

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Co-Transfer Agent

Morgan Stanley Services Company, Inc.
522 Fifth Avenue
New York, New York 10036

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 to the SEC's Public Reference Section, Washington, D.C. 20549-1520.

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

© 2018 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTLDSAN
2100490 EXP 05.31.19

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Strategic Income Portfolio

Semi-Annual Report

March 29, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Table of Contents

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

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 fund 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 29, 2018

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 2018

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018 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 10/1/17		Actual Ending Account Value 3/29/18		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	$	1,023.40	$	1,019.95	$	5.04	$	5.04		1.00	%
Strategic Income Portfolio Class A		1,000.00		1,021.60		1,018.25		6.75		6.74		1.34
Strategic Income Portfolio Class C		1,000.00		1,018.10		1,014.51		10.52		10.50		2.09
Strategic Income Portfolio Class IS		1,000.00		1,023.70		1,020.24		4.74		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 29, 2018R (unaudited)

Portfolio of Investments

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (93.9%)
Asset-Backed Securities (11.7%)
BNC Mortgage Loan Trust,
1 Month USD LIBOR + 0.16%, 2.03%, 3/25/37 (a)	$	100	$	97
Carrington Mortgage Loan Trust,
1 Month USD LIBOR + 0.22%, 2.09%, 1/25/37 (a)		100		73
CLUB Credit Trust,
5.13%, 4/17/23 (b)		100		101
Conn's Receivables Funding LLC,
7.40%, 10/15/21 (b)		100		102
Credit Suisse First Boston Mortgage Securities Corp.,
1 Month USD LIBOR + 0.62%, 2.49%, 1/25/32 (a)		51		50
Ellington Loan Acquisition Trust,
1 Month USD LIBOR + 1.10%, 2.97%, 5/25/37 (a)(b)		100		100
EquiFirst Mortgage Loan Trust,
1 Month USD LIBOR + 2.18%, 4.05%, 10/25/34 (a)		44		45
GSAA Home Equity Trust,
6.00%, 11/25/36		28		19
GSAMP Trust,
1 Month USD LIBOR + 0.32%, 2.19%, 3/25/46 (a)		100		97
1 Month USD LIBOR + 1.05%, 2.92%, 10/25/33 (a)		32		32
Invitation Homes Trust,
1 Month USD LIBOR + 4.30%, 6.05%, 3/17/32 (a)(b)		100		101
Lehman ABS Manufactured Housing Contract Trust,
3.70%, 4/15/40		8		8
MASTR Asset-Backed Securities Trust,
1 Month USD LIBOR + 0.24%, 2.11%, 8/25/36 (a)		67		36
Nationstar Home Equity Loan Trust,
1 Month USD LIBOR + 0.25%, 2.12%, 4/25/37 (a)		87		87
Ownit Mortgage Loan Trust,
1 Month USD LIBOR + 0.27%, 2.14%, 3/25/37 (a)		61		57
RAMP Trust,
1 Month USD LIBOR + 0.32%, 2.19%, 11/25/35 (a)		50		47
Truman Capital Mortgage Loan Trust,
1 Month USD LIBOR + 1.70%, 3.57%, 1/25/34 (a)(b)		56		56
1 Month USD LIBOR + 2.78%, 4.65%, 11/25/31 (a)(b)		54		54
VOLT XL LLC,
4.38%, 11/27/45 (b)		22		22
VOLT XXV LLC,
3.50%, 6/26/45 (b)		40		41
				1,225

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligation — Agency Collateral Series (0.1%)
Government National Mortgage Association,
IO
0.80%, 8/20/58 (a)	$	448	$	11
Commercial Mortgage-Backed Securities (5.3%)
BAMLL Commercial Mortgage Securities Trust,
1 Month USD LIBOR + 5.50%, 3.57%, 12/15/31 (a)(b)		100		96
COMM Mortgage Trust,
2.87%, 2/10/48 (b)		100		84
CSMC Trust,
1 Month USD LIBOR + 4.00%, 5.78%, 4/15/29 (a)(b)		100		100
GS Mortgage Securities Trust,
4.33%, 2/10/48 (a)(b)		100		80
4.65%, 6/10/47 (a)		50		50
JPMBB Commercial Mortgage Securities Trust,
3.84%, 2/15/48 (a)(b)		100		80
Wells Fargo Commercial Mortgage Trust,
4.10%, 5/15/48 (a)		75		67
				557
Corporate Bonds (36.3%)
Finance (16.5%)
ABN Amro Bank N.V.,
6.38%, 4/27/21	EUR	100		144
Banco Santander SA,
6.25%, 3/12/19 (c)		100		128
Bank of America Corp.,
2.74%, 1/23/22	$	25		25
MTN
4.25%, 10/22/26		50		50
BNP Paribas SA,
3.80%, 1/10/24 (b)		250		250
BPCE SA,
5.15%, 7/21/24 (b)		200		209
Capital One Financial Corp.,
2.50%, 5/12/20		25		25
Citigroup, Inc.,
3.14%, 1/24/23		25		25
5.50%, 9/13/25		75		81
Colony NorthStar, Inc.,
5.00%, 4/15/23		25		23
Commonwealth Bank of Australia,
1.75%, 11/7/19 (b)		25		25
Cooperatieve Rabobank UA,
2.50%, 5/26/26	EUR	100		130
Deutsche Bank AG,
2.70%, 7/13/20	$	25		25
3.15%, 1/22/21		100		99
Discover Financial Services,
3.95%, 11/6/24		25		25
Kennedy-Wilson, Inc.,
5.88%, 4/1/24		25		25

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Lloyds Bank PLC,
6.50%, 3/24/20	EUR	50	$	69
Macquarie Group Ltd.,
4.15%, 3/27/24 (b)	$	25		25
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen,
6.00%, 5/26/41	EUR	100		143
Oxford Finance LLC/Oxford Finance Co-Issuer II, Inc.,
6.38%, 12/15/22 (b)	$	10		10
Spirit Realty Capital, Inc.,
3.75%, 5/15/21		25		25
Synchrony Financial,
2.60%, 1/15/19		25		25
Vonovia Finance BV,
4.00%, 12/17/21 (c)	EUR	100		133
				1,719
Industrials (19.8%)
Akamai Technologies, Inc.,
0.00%, 2/15/19	$	50		51
Albertsons Cos., LLC/Safeway, Inc./ New Albertson's, Inc./Albertson's LLC,
5.75%, 3/15/25		25		21
Allscripts Healthcare Solutions, Inc.,
1.25%, 7/1/20		50		50
AT&T, Inc.,
4.50%, 3/9/48		6		6
Avis Budget Car Rental LLC/Avis Budget Finance, Inc.,
5.50%, 4/1/23		25		25
Becton Dickinson and Co.,
2.89%, 6/6/22		25		24
Charter Communications Operating LLC/ Charter Communications Operating Capital,
4.91%, 7/23/25		50		51
Continental Airlines Pass-Through Trust,
6.13%, 4/29/18		25		25
Crown Castle International Corp.,
5.25%, 1/15/23		25		27
CSC Holdings LLC,
5.25%, 6/1/24		25		24
Ctrip.com International Ltd.,
1.25%, 9/15/22		25		26
CVS Health Corp.,
3.70%, 3/9/23		75		76
Dell International LLC/EMC Corp.,
3.48%, 6/1/19 (b)		50		50
Delta Air Lines, Inc.,
2.88%, 3/13/20		25		25
DexCom, Inc.,
0.75%, 5/15/22 (b)		25		26
Dollar Tree, Inc.,
5.75%, 3/1/23		25		26

	Face Amount (000)		Value (000)
Eldorado Gold Corp.,
6.13%, 12/15/20 (b)	$	25	$	24
Electronics For Imaging, Inc.,
0.75%, 9/1/19		25		24
Finisar Corp.,
0.50%, 12/15/36		25		23
First Data Corp.,
5.38%, 8/15/23 (b)		25		26
General Electric Co.,
Series D
5.00%, 1/21/21 (c)		25		25
General Motors Financial Co., Inc.,
4.30%, 7/13/25		50		50
Glencore Funding LLC,
3.88%, 10/27/27 (b)		25		24
Global Partners LP/GLP Finance Corp.,
7.00%, 6/15/23		25		25
Gray Television, Inc.,
5.13%, 10/15/24 (b)		25		24
Hanesbrands, Inc.,
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		25
Intercept Pharmaceuticals, Inc.,
3.25%, 7/1/23		25		20
Ionis Pharmaceuticals, Inc.,
1.00%, 11/15/21		25		25
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp.,
6.75%, 11/15/21 (b)		25		26
Kenan Advantage Group, Inc. (The),
7.88%, 7/31/23 (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		25
Lamb Weston Holdings, Inc.,
4.88%, 11/1/26 (b)		25		25
Lear Corp.,
5.25%, 1/15/25		50		53
Lions Gate Entertainment Corp.,
5.88%, 11/1/24 (b)		25		26
Mallinckrodt International Finance SA/Mallinckrodt CB LLC,
4.88%, 4/15/20 (b)		25		24
MDC Partners, Inc.,
6.50%, 5/1/24 (b)		25		24
MGM Resorts International,
6.00%, 3/15/23		25		26
MPLX LP,
4.00%, 2/15/25		25		25

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Neurocrine Biosciences, Inc.,
2.25%, 5/15/24 (b)	$	25	$	33
Nuance Communications, Inc.,
1.00%, 12/15/35		25		24
Petrobras Global Finance BV,
6.13%, 1/17/22		50		54
PetSmart, Inc.,
7.13%, 3/15/23 (b)		25		14
Post Holdings, Inc.,
5.00%, 8/15/26 (b)		25		24
QUALCOMM, Inc.,
1.85%, 5/20/19		25		25
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp.,
6.13%, 8/15/21 (b)		25		24
SBA Communications Corp.,
4.88%, 9/1/24		25		25
ServiceNow, Inc.,
0.00%, 6/1/22 (b)		25		33
Shell International Finance BV,
1.38%, 9/12/19		50		49
Solvay Finance SA,
5.12%, 6/2/21 (c)	EUR	100		137
Sprint Capital Corp.,
6.88%, 11/15/28	$	25		23
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		26
Telefonica Europe BV,
5.88%, 3/31/24 (c)	EUR	100		140
Tenet Healthcare Corp.,
5.13%, 5/1/25 (b)	$	25		24
Teva Pharmaceutical Finance Netherlands III BV,
2.20%, 7/21/21		50		45
Transurban Finance Co., Pty Ltd.,
3.38%, 3/22/27 (b)		25		24
Verint Systems, Inc.,
1.50%, 6/1/21		25		24
Viavi Solutions, Inc.,
0.63%, 8/15/33		25		26
Wolverine World Wide, Inc.,
5.00%, 9/1/26 (b)		25		24
Zillow Group, Inc.,
2.00%, 12/1/21		25		30
				2,073
				3,792
Mortgages — Other (11.2%)
Alternative Loan Trust,
3.77%, 3/25/35 (a)		54		52
5.75%, 3/25/34		51		53

	Face Amount (000)		Value (000)
PAC
1 Month USD LIBOR + 0.45%, 2.32%, 10/25/36 (a)	$	53	$	36
Banc of America Alternative Loan Trust,
5.71%, 10/25/36 (a)		88		54
Banc of America Mortgage Trust,
4.33%, 3/25/33 (a)		28		28
Bear Stearns ARM Trust,
3.55%, 2/25/36 (a)		63		64
Bear Stearns Structured Products, Inc. Trust,
3.63%, 1/26/36 (a)		27		24
Bear Stearns Trust,
3.45%, 4/25/35 (a)		42		39
3.48%, 2/25/36 (a)		38		36
3.77%, 3/25/36 (a)		124		108
Citigroup Mortgage Loan Trust,
3.45%, 6/25/36 (a)		29		23
GC Pastor Hipotecario 5 FTA,
3 Month EURIBOR + 0.17%, 0.00%, 6/21/46 (a)	EUR	45		50
Grifonas Finance PLC,
6 Month EURIBOR + 0.28%, 0.01%, 8/28/39 (a)		42		46
GSR Mortgage Loan Trust,
3.87%, 12/25/34 (a)	$	74		73
HarborView Mortgage Loan Trust,
1 Month USD LIBOR + 0.19%, 2.00%, 1/19/38 (a)		27		27
3.87%, 2/25/36 (a)		58		44
IndyMac INDX Mortgage Loan Trust,
3.49%, 12/25/34 (a)		37		36
JP Morgan Mortgage Trust,
3.56%, 6/25/37 (a)		31		31
Lehman Mortgage Trust,
6.00%, 7/25/36		78		62
Luminent Mortgage Trust,
1 Month USD LIBOR + 0.23%, 2.10%, 5/25/37 (a)		88		82
Lusitano Mortgages No. 5 PLC,
3 Month EURIBOR + 0.26%, 0.00%, 7/15/59 (a)	EUR	43		50
MASTR Alternative Loan Trust,
6.25%, 7/25/36	$	38		34
Reperforming Loan REMIC Trust,
8.50%, 6/25/35 (b)		82		88
STARM Mortgage Loan Trust,
3.80%, 1/25/37 (a)		35		35
				1,175
Sovereign (24.1%)
Argentina POM Politica Monetaria,
27.25%, 6/21/20 (a)	ARS	1,800		95
Argentine Republic Government International Bond,
6.88%, 1/11/48	$	20		18

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Sovereign (cont'd)
Australia Government Bond,
2.75%, 11/21/27	AUD	150	$	117
3.25%, 4/21/25		90		73
Brazil Notas do Tesouro Nacional, Series F,
10.00%, 1/1/27	BRL	550		172
Cyprus Government International Bond,
3.88%, 5/6/22	EUR	70		97
4.25%, 11/4/25		10		14
Dominican Republic International Bond,
5.50%, 1/27/25	$	100		103
Hellenic Republic Government Bond,
3.90%, 1/30/33	EUR	35		40
4.38%, 8/1/22 (b)		90		116
Hungary Government Bond,
5.50%, 6/24/25	HUF	11,150		54
Hungary Government International Bond,
5.38%, 3/25/24	$	80		87
Indonesia Treasury Bond,
9.00%, 3/15/29	IDR	1,697,000		143
Italy Buoni Poliennali Del Tesoro,
0.95%, 3/15/23	EUR	85		106
Malaysia Government Bond,
3.96%, 9/15/25	MYR	320		83
Mexican Bonos,
Series M
7.50%, 6/3/27	MXN	3,000		167
New Zealand Government Bond,
3.00%, 4/20/29	NZD	80		58
4.50%, 4/15/27		80		66
Petroleos Mexicanos,
6.50%, 3/13/27	$	60		64
Portugal Obrigacoes do Tesouro OT,
2.13%, 10/17/28 (b)	EUR	30		39
4.13%, 4/14/27 (b)		165		249
Republic of South Africa Government Bond,
9.00%, 1/31/40	ZAR	400		34
Russian Federal Bond - OFZ,
7.00%, 8/16/23	RUB	10,300		184
7.05%, 1/19/28		3,600		63
South Africa Government Bond,
8.00%, 1/31/30	ZAR	2,000		165
Spain Government Bond,
4.40%, 10/31/23 (b)	EUR	70		106
				2,513
U.S. Treasury Securities (5.2%)
U.S. Treasury Bond,
2.50%, 2/15/45	$	200		183
U.S. Treasury Notes,
0.38%, 1/15/27		236		230
2.13%, 5/15/25		130		125
				538
Total Fixed Income Securities (Cost $9,410)				9,811

	Shares		Value (000)
Short-Term Investments (3.9%)
Investment Company (3.5%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $365)		365,009	$	365
	Face Amount (000)
U.S. Treasury Security (0.4%)
U.S. Treasury Bill
1.80%, 8/9/18 (d)(e) (Cost $38)	$	38		38
Total Short-Term Investments (Cost $403)				403
Total Investments (97.8%) (Cost $9,813) (f)(g)				10,214
Other Assets in Excess of Liabilities (2.2%)				232
Net Assets (100.0%)			$	10,446

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(a)  Floating or Variable rate securities: The rates disclosed are as of March 29, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(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 29, 2018.

(d)  Rate shown is the yield to maturity at March 29, 2018.

(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 29, 2018, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $580,000 and the aggregate gross unrealized depreciation is approximately $227,000, resulting in net unrealized appreciation of approximately $353,000.

EURIBOR  Euro Interbank Offered Rate.

IO  Interest Only.

LIBOR  London Interbank Offered Rate.

MTN  Medium Term Note.

OAT  Obligations Assimilables du Trésor (French Treasury Obligation).

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

PAC  Planned Amortization Class.

REMIC  Real Estate Mortgage Investment Conduit.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at March 29, 2018:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)			Delivery Date	Unrealized Appreciation (Depreciation) (000)
Australia and New Zealand Banking Group	PLN	190	$	56		4/26/18	$	—	@
Bank of America NA	AUD	365	$	287		4/26/18		6
Bank of America NA	$	18	EUR	15		4/26/18		(—	@)
Bank of America NA	$	102	NOK	795		4/26/18		(—	@)
Barclays Bank PLC	$	5	EUR	4		4/26/18		—	@
BNP Paribas SA	ZAR	205	$	18		4/26/18		—	@
Citibank NA	MXN	4,401	$	232		4/26/18		(9	)
Commonwealth Bank of Australia	AUD	75	$	57		4/26/18		(—	@)
HSBC Bank PLC	$	8	HUF	2,021		4/26/18		—	@
HSBC Bank PLC	$	53	ZAR	630		4/26/18		(—	@)
JPMorgan Chase Bank NA	ARS	870	$	43		4/26/18		—	@
JPMorgan Chase Bank NA	AUD	81	$	63		4/26/18		1
JPMorgan Chase Bank NA	BRL	384	$	120		4/26/18		4
JPMorgan Chase Bank NA	EUR	1,628	$	2,020		4/26/18		14
JPMorgan Chase Bank NA	IDR	1,535,821	$	114		4/26/18		3
JPMorgan Chase Bank NA	IDR	1,075,347	$	80		4/26/18		2
JPMorgan Chase Bank NA	IDR	708,921	$	52		4/26/18		—	@
JPMorgan Chase Bank NA	INR	3,318	$	51		4/26/18		(—	@)
JPMorgan Chase Bank NA	MXN	2,337	$	125		4/26/18		(3	)
JPMorgan Chase Bank NA	NOK	415	$	52		4/26/18		(1	)
JPMorgan Chase Bank NA	NZD	80	$	59		4/26/18		1
JPMorgan Chase Bank NA	NZD	92	$	66		4/26/18		—	@
JPMorgan Chase Bank NA	PEN	48	$	15		4/26/18		—	@
JPMorgan Chase Bank NA	RUB	4,341	$	77		4/26/18		1
JPMorgan Chase Bank NA	RUB	4,300	$	75		4/26/18		1
JPMorgan Chase Bank NA	$	19	BRL	62		4/26/18		(—	@)
JPMorgan Chase Bank NA	$	29	BRL	94		4/26/18		(—	@)
JPMorgan Chase Bank NA	$	2	EUR	2		4/26/18		(—	@)
JPMorgan Chase Bank NA	$	22	EUR	18		4/26/18		(—	@)
JPMorgan Chase Bank NA	$	12	HUF	3,129		4/26/18		(—	@)
JPMorgan Chase Bank NA	$	8	HUF	2,071		4/26/18		(—	@)
JPMorgan Chase Bank NA	$	12	HUF	3,149		4/26/18		—	@
JPMorgan Chase Bank NA	$	98	IDR	1,335,897		4/26/18		(1	)
JPMorgan Chase Bank NA	$	54	IDR	738,185		4/26/18		(1	)
JPMorgan Chase Bank NA	$	51	INR	3,318		4/26/18		(1	)
Royal Bank of Canada	EUR	133	$	165		4/26/18		2
Royal Bank of Canada	MXN	710	$	38		4/26/18		(1	)
Royal Bank of Canada	$	9	HUF	2,178		4/26/18		(—	@)
Royal Bank of Canada	$	229	MXN	4,315		4/26/18		8
State Street Bank and Trust Co.	MYR	400	$	102		4/26/18		(2	)
State Street Bank and Trust Co.	MYR	113	$	29		4/26/18		(—	@)
State Street Bank and Trust Co.	$	50	MYR	196		4/26/18		—	@
State Street Bank and Trust Co.	$	15	PEN	48		4/26/18		—	@
UBS AG	CHF	52	$	56		4/26/18		1
UBS AG	CHF	50	$	54		4/26/18		1
UBS AG	HUF	29,284	$	119		4/26/18		4
UBS AG	JPY	48	$	—	@	4/26/18		(—	@)
UBS AG	$	12	HUF	3,145		4/26/18		(—	@)
UBS AG	$	57	NOK	440		4/26/18		(1	)
UBS AG	$	110	PLN	372		4/26/18		(1	)
UBS AG	ZAR	710	$	59		4/26/18		(1	)
UBS AG	ZAR	195	$	16		4/26/18		—	@
UBS AG	ZAR	1,050	$	86		4/26/18		(2	)
Westpac Banking Corp.	EUR	28	$	35		4/26/18		—	@
							$	25

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

Futures Contracts:

The Fund had the following futures contracts open at March 29, 2018:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Depreciation (000)
Short:
German Euro BOBL (Germany)		4	Jun-18		(400	)	$	(646	)	$	(4	)
German Euro Bund (Germany)		2	Jun-18		(200	)		(392	)		(6	)
German Euro OAT (Germany)		2	Jun-18		(200	)		(380	)		(7	)
U.S. Treasury 10 yr. Note (United States)		5	Jun-18		(500	)		(606	)		(7	)
U.S. Treasury 10 yr. Ultra Long Bond (United States)		8	Jun-18		(800	)		(1,039	)		(18	)
U.S. Treasury 2 yr. Note (United States)		3	Jun-18		(600	)		(638	)		(—	@)
U.S. Treasury 5 yr. Note (United States)		10	Jun-18		(1,000	)		(1,145	)		(6	)
										$	(48	)

Credit Default Swap Agreements:

The Fund had the following credit default swap agreements open at March 29, 2018:

Swap Counterparty and Reference Obligation	Credit Rating of Reference Obligation†	Buy/Sell Protection	Pay/Receive Fixed Rate			Payment Frequency	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (Received) (000)			Unrealized Appreciation (Depreciation) (000)
Deutsche Bank AG CMBX.NA.BB.60	NR	Sell		5.00	%	Monthly	5/11/63	$	13	$	(3	)	$	—	@	$	(3	)
Goldman Sachs International CMBX.NA.BB.60	NR	Sell		5.00		Monthly	5/11/63		20		(5	)		(—	@)		(5	)
Goldman Sachs International CMBX.NA.BBB.60	NR	Sell		3.00		Monthly	5/11/63		200		(30	)		(13	)		(17	)
Goldman Sachs International CMBX.NA.BBB.60	NR	Sell		3.00		Monthly	5/11/63		27		(4	)		(1	)		(3	)
Goldman Sachs International CMBX.NA.BBB.60	NR	Sell		3.00		Monthly	5/11/63		64		(9	)		(2	)		(7	)
Goldman Sachs International CMBX.NA.BBB.60	NR	Sell		3.00		Monthly	5/11/63		109		(16	)		(5	)		(11	)
Morgan Stanley & Co., LLC* CDX.NA.HY.29	NR	Buy		5.00		Quarterly	12/20/22		175		(11	)		(13	)		2
										$	(78	)	$	(34	)	$	(44	)

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at March 29, 2018:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate	Payment Frequency Paid/ Received	Maturity Date	Notional Amount (000)		Value (000)		Upfront Payment Paid (000)		Unrealized Appreciation (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.28%	Semi-Annual/ Quarterly	12/8/26	$	160	$	5	$	—	$	5
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.48	Semi-Annual/ Quarterly	12/21/26		110		2		—		2
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.59	Semi-Annual/ Quarterly	12/8/46		22		1		—		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.74	Semi-Annual/ Quarterly	12/21/46		50		1		—		1
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.48	Semi-Annual/ Quarterly	5/23/47		40		3		—		3
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive	2.56	Semi-Annual/ Quarterly	11/9/47		120		7		—		7
								$	19	$	—	$	19

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Strategic Income Portfolio

@    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.

ARS  —  Argentine Peso

AUD  —  Australian Dollar

BRL  —  Brazilian Real

CHF  —  Swiss Franc

EUR  —  Euro

HUF  —  Hungarian Forint

IDR  —  Indonesian Rupiah

INR  —  Indian Rupee

JPY  —  Japanese Yen

MXN  —  Mexican Peso

MYR  —  Malaysian Ringgit

NOK  —  Norwegian Krone

NZD  —  New Zealand Dollar

PEN  —  Peruvian Nuevo Sol

PLN  —  Polish Zloty

RUB  —  Russian Ruble

USD  —  United States Dollar

ZAR  —  South African Rand

Portfolio Composition

Classification	Percentage of Total Investments
Sovereign		24.6	%
Industrials		20.3
Finance		16.8
Asset-Backed Securities		12.0
Mortgages — Other		11.5
Commercial Mortgage-Backed Securities		5.5
U.S. Treasury Securities		5.3
Short-Term Investments		3.9
Other**		0.1
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 $4,846,000 with total unrealized depreciation of approximately $48,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $25,000 and does not include open swap agreements with net unrealized depreciation of approximately $25,000.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Strategic Income Portfolio

Statement of Assets and Liabilities	March 29, 2018 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $9,448)	$	9,849
Investment in Security of Affiliated Issuer, at Value (Cost $365)		365
Total Investments in Securities, at Value (Cost $9,813)		10,214
Foreign Currency, at Value (Cost $141)		142
Interest Receivable		105
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		49
Due from Adviser		42
Receivable for Variation Margin on Futures Contracts		37
Receivable for Investments Sold		36
Tax Reclaim Receivable		4
Receivable from Affiliate		1
Upfront Payment Paid on Open Swap Agreements		—	@
Other Assets		61
Total Assets		10,691
Liabilities:
Payable for Professional Fees		69
Unrealized Depreciation on Swap Agreements		46
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		24
Payable for Investments Purchased		25
Payable for Custodian Fees		23
Upfront Payment Received on Open Swap Agreements		21
Bank Overdraft		8
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 Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Variation Margin on Swap Agreements		—	@
Other Liabilities		24
Total Liabilities		245
Net Assets	$	10,446
Net Assets Consist Of:
Paid-in-Capital	$	10,085
Distributions in Excess of Net Investment Income		(61	)
Accumulated Net Realized Gain		66
Unrealized Appreciation (Depreciation) on:
Investments		401
Futures Contracts		(48	)
Swap Agreements		(25	)
Foreign Currency Forward Exchange Contracts		25
Foreign Currency Translations		3
Net Assets	$	10,446

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Strategic Income Portfolio

Statement of Assets and Liabilities (cont'd)	March 29, 2018 (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	$	10.34
CLASS A:
Net Assets	$	90
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		8,688
Net Asset Value, Redemption Price Per Share	$	10.33
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.46
Maximum Offering Price Per Share	$	10.79
CLASS C:
Net Assets	$	21
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		2,042
Net Asset Value, Offering and Redemption Price Per Share	$	10.29
CLASS IS:
Net Assets	$	10,325
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	$	10.35

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Strategic Income Portfolio

Statement of Operations	Six Months Ended March 29, 2018 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $1 of Foreign Taxes Withheld)	$	204
Dividends from Security of Affiliated Issuer (Note G)		3
Total Investment Income		207
Expenses:
Professional Fees		67
Advisory Fees (Note B)		21
Registration Fees		21
Custodian Fees (Note F)		15
Pricing Fees		10
Shareholder Reporting Fees		8
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		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Other Expenses		9
Total Expenses		160
Expenses Reimbursed by Adviser (Note B)		(86	)
Waiver of Advisory Fees (Note B)		(21	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		49
Net Investment Income		158
Realized Gain (Loss):
Investments Sold		111
Foreign Currency Forward Exchange Contracts		(52	)
Foreign Currency Transactions		(1	)
Futures Contracts		152
Swap Agreements		—	@
Net Realized Gain		210
Change in Unrealized Appreciation (Depreciation):
Investments		(65	)
Foreign Currency Forward Exchange Contracts		(3	)
Foreign Currency Translations		2
Futures Contracts		(92	)
Swap Agreements		29
Net Change in Unrealized Appreciation (Depreciation)		(129	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		81
Net Increase in Net Assets Resulting from Operations	$	239

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Strategic Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	158		$	267
Net Realized Gain		210			53
Net Change in Unrealized Appreciation (Depreciation)		(129	)		426
Net Increase in Net Assets Resulting from Operations		239			746
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(—	@)		(—	@)
Class A:
Net Investment Income		(—	@)		(1	)
Class C:
Net Investment Income		(—	@)		(—	@)
Class IS:
Net Investment Income		(110	)		(215	)
Total Distributions		(110	)		(216	)
Capital Share Transactions:(1)
Class A:
Subscribed		79			—
Distributions Reinvested		—			—	@
Redeemed		—			(31	)
Class C:
Subscribed		—			13
Distributions Reinvested		—	@		—	@
Redeemed		(1	)		(27	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		78			(45	)
Total Increase in Net Assets		207			485
Net Assets:
Beginning of Period		10,239			9,754
End of Period (Including Distributions in Excess of Net Investment Income of $(61) and $(109))	$	10,446		$	10,239
(1)   Capital Share Transactions:
Class A:
Shares Subscribed		8			—
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		—			(3	)
Net Increase (Decrease) in Class A Shares Outstanding		8			(3	)
Class C:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(—	@@)		(2	)
Net Decrease in Class C Shares Outstanding		(—	@@)		(1	)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

@  Amount is less than $500.

@@  Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Strategic Income Portfolio

	Class I
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from December 30, 2014(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			September 30, 2015
Net Asset Value, Beginning of Period	$	10.21		$	9.69		$	9.79		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.15			0.26			0.22			0.14
Net Realized and Unrealized Gain (Loss)		0.09			0.47			0.06			(0.28	)
Total from Investment Operations		0.24			0.73			0.28			(0.14	)
Distributions from and/or in Excess of:
Net Investment Income		(0.11	)		(0.21	)		(0.38	)		(0.07	)
Net Asset Value, End of Period	$	10.34		$	10.21		$	9.69		$	9.79
Total Return(4)		2.34	%(7)		7.64	%		2.91	%		(1.39	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	10		$	10		$	10
Ratio of Expenses to Average Net Assets(9)		1.00	%(5)(8)		0.99	%(5)		0.99	%(5)		0.98	%(5)(8)
Ratio of Net Investment Income to Average Net Assets(9)		3.00	%(5)(8)		2.63	%(5)		2.25	%(5)		1.81	%(5)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%(6)(8)		0.01	%		0.01	%		0.02	%(8)
Portfolio Turnover Rate		33	%(7)		64	%		47	%		39	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		22.21	%(8)		21.19	%		7.28	%		17.80	%(8)
Net Investment Loss to Average Net Assets		(18.21	)%(8)		(17.57	)%		(4.04	)%		(15.01	)%(8)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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)  Amount is less than 0.005%.

(7)  Not annualized.

(8)  Annualized.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Strategic Income Portfolio

	Class A
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from December 30, 2014(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			September 30, 2015
Net Asset Value, Beginning of Period	$	10.20		$	9.69		$	9.79		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.14			0.20			0.18			0.11
Net Realized and Unrealized Gain (Loss)		0.08			0.49			0.06			(0.27	)
Total from Investment Operations		0.22			0.69			0.24			(0.16	)
Distributions from and/or in Excess of:
Net Investment Income		(0.09	)		(0.18	)		(0.34	)		(0.05	)
Net Asset Value, End of Period	$	10.33		$	10.20		$	9.69		$	9.79
Total Return(4)		2.16	%(6)		7.18	%		2.51	%		(1.56	)%(6)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	90		$	10		$	40		$	10
Ratio of Expenses to Average Net Assets(8)		1.34	%(5)(7)		1.33	%(5)		1.34	%(5)		1.33	%(5)(7)
Ratio of Net Investment Income to Average Net Assets(8)		2.80	%(5)(7)		2.08	%(5)		1.86	%(5)		1.46	%(5)(7)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(7)		0.02	%		0.01	%		0.02	%(7)
Portfolio Turnover Rate		33	%(6)		64	%		47	%		39	%(6)
(8) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		9.98	%(7)		9.96	%		6.73	%		18.06	%(7)
Net Investment Loss to Average Net Assets		(5.84	)%(7)		(6.55	)%		(3.53	)%		(15.27	)%(7)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 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.
16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Strategic Income Portfolio

	Class C
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from April 30, 2015(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			September 30, 2015
Net Asset Value, Beginning of Period	$	10.17		$	9.66		$	9.76		$	10.06
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.10			0.13			0.11			0.05
Net Realized and Unrealized Gain (Loss)		0.08			0.49			0.06			(0.32	)
Total from Investment Operations		0.18			0.62			0.17			(0.27	)
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.11	)		(0.27	)		(0.03	)
Net Asset Value, End of Period	$	10.29		$	10.17		$	9.66		$	9.76
Total Return(4)		1.81	%(7)		6.46	%		1.77	%		(2.71	)%(7)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	21		$	22		$	35		$	10
Ratio of Expenses to Average Net Assets(9)		2.09	%(5)(8)		2.09	%(5)		2.09	%(5)		2.10	%(5)(8)
Ratio of Net Investment Income to Average Net Assets(9)		1.94	%(5)(8)		1.33	%(5)		1.14	%(5)		1.13	%(5)(8)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(8)		0.01	%		0.01	%		0.00	%(6)(8)
Portfolio Turnover Rate		33	%(7)		64	%		47	%		39	%(7)
(9) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		12.83	%(8)		13.41	%		28.93	%		19.28	%(8)
Net Investment Loss to Average Net Assets		(8.80	)%(8)		(9.99	)%		(25.70	)%		(16.05	)%(8)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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.
17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Strategic Income Portfolio

	Class IS
	Six Months Ended March 29, 2018R			Year Ended September 30,						Period from December 30, 2014(2) to
Selected Per Share Data and Ratios	(unaudited)			2017			2016(1)			September 30, 2015
Net Asset Value, Beginning of Period	$	10.22		$	9.69		$	9.79		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(3)		0.16			0.27			0.23			0.14
Net Realized and Unrealized Gain (Loss)		0.08			0.48			0.05			(0.27	)
Total from Investment Operations		0.24			0.75			0.28			(0.13	)
Distributions from and/or in Excess of:
Net Investment Income		(0.11	)		(0.22	)		(0.38	)		(0.08	)
Net Asset Value, End of Period	$	10.35		$	10.22		$	9.69		$	9.79
Total Return(4)		2.37	%(6)		7.80	%		2.96	%		(1.37	)%(6)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10,325		$	10,197		$	9,669		$	9,775
Ratio of Expenses to Average Net Assets(8)		0.94	%(5)(7)		0.94	%(5)		0.94	%(5)		0.93	%(5)(7)
Ratio of Net Investment Income to Average Net Assets(8)		3.08	%(5)(7)		2.68	%(5)		2.35	%(5)		1.88	%(5)(7)
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%(7)		0.01	%		0.01	%		0.02	%(7)
Portfolio Turnover Rate		33	%(6)		64	%		47	%		39	%(6)
(8) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		3.04	%(7)		3.79	%		3.45	%		4.04	%(7)
Net Investment Income (Loss) to Average Net Assets		0.98	%(7)		(0.17	)%		(0.16	)%		(1.23	)%(7)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 reimbursement of 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.
18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 seeks 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 market prices are not readily available. Under these

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018:

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	$	—	$	1,225	$	—	$	1,225
Collateralized Mortgage Obligations — Agency Collateral Series		—		11		—		11
Commercial Mortgage-Backed Securities		—		557		—		557
Corporate Bonds		—		3,792		—		3,792
Mortgages — Other		—		1,175		—		1,175
Sovereign		—		2,513		—		2,513
U.S. Treasury Securities		—		538		—		538
Total Fixed Income Securities		—		9,811		—		9,811
Short-Term Investments
Investment Company		365		—		—		365
U.S. Treasury Security		—		38		—		38
Total Short-Term Investments		365		38		—		403

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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	$	—		$	49		$	—	$	49
Credit Default Swap Agreement		—			2			—		2
Interest Rate Swap Agreements		—			19			—		19
Total Assets		365			9,919			—		10,284
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(24	)		—		(24	)
Futures Contracts		(48	)		—			—		(48	)
Credit Default Swap Agreements		—			(46	)		—		(46	)
Total Liabilities		(48	)		(70	)		—		(118	)
Total	$	317		$	9,849		$	—	$	10,166

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 29, 2018, 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.

4.  Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including

21

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Notes to 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 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 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

22

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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.

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

23

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018:

	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	$	49
Swap Agreement	Variation Margin on Swap Agreement	Credit Risk		2	(a)
Swap Agreements	Variation Margin on Swap Agreements	Interest Rate Risk		19	(a)
Total			$	70
	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	$	(24	)
Futures Contracts	Variation Margin on Futures Contracts	Interest Rate Risk		(48	)(a)
Swap Agreements	Unrealized Depreciation on Swap Agreements	Credit Risk		(46	)
Total			$	(118	)

(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 29, 2018 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(52	)
Interest Rate Risk	Futures Contracts		152
Credit Risk	Swap Agreements		1
Interest Rate Risk	Swap Agreements		(1	)
Total		$	100
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(3	)
Interest Rate Risk	Futures Contracts		(92	)
Credit Risk	Swap Agreements		4
Interest Rate Risk	Swap Agreements		25
Total		$	(66	)

24

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

At March 29, 2018, 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	$	49	$	(24	)
Swap Agreements		—		(46	)
Total	$	49	$	(70	)

(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 29, 2018:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the 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	$	—	@	$	—		$	—	$	—	@
Bank of America NA		6			(—	@)		—		6
Barclays Bank PLC		—	@		—			—		—	@
BNP Paribas SA		—	@		—			—		—	@
HSBC Bank PLC		—	@		(—	@)		—		0
JPMorgan Chase Bank NA		27			(7	)		—		20
Royal Bank of Canada		10			(1	)		—		9
State Street Bank and Trust Co.		—	@		(—	@)		—		0
UBS AG		6			(5	)		—		1
Westpac Banking Corp.		—	@		—			—		—	@
Total	$	49		$	(13	)	$	—	$	36
Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Bank of America NA	$	—	@	$	(—	@)	$	—	$	0
Citibank NA		9			—			—		9
Commonwealth Bank of Australia		—	@		—			—		—	@
Goldman Sachs International		43			—			—		43
Deutsche Bank AG		3			—			—		3
HSBC Bank PLC		—	@		(—	@)		—		0
JPMorgan Chase Bank NA		7			(7	)		—		0
Royal Bank of Canada		1			(1	)		—		0
State Street Bank and Trust Co.		2			(—	@)		—		2
UBS AG		5			(5	)		—		0
Total	$	70		$	(13	)	$	—	$	57

@ Amount is less than $500.

For the six months ended March 29, 2018, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	4,201,000
Futures Contracts:
Average monthly original value	$	3,497,000
Swap Agreements:
Average monthly notional amount	$	1,103,000

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.

25

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

6.  Dividends and Distributions to Shareholders: Dividends 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 29, 2018, 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 29, 2018, approximately $21,000 of advisory fees were waived and approximately $90,000 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 Fund's Officers and Trustees. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the 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 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.

26

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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. Effective January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

F. Custodian Fees: State Street (the "Custodian") also 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 29, 2018, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments, were approximately $3,928,000 and $2,664,000, respectively. For the six months ended March 29, 2018, there were no purchases of long-term U.S. Government securities and sales of long-term U.S. Government securities were approximately $484,000.

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. 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 29, 2018, 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 29, 2018 is as follows:

Affiliated Investment Company	Value September 30, 2017 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	976	$	2,341	$	2,952	$	3

Affiliated Investment Company (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)		Value March 29, 2018 (000)
Liquidity Funds	$	—	$	—	$	365

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 29, 2018, 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 three-year period ended September 30, 2017, remains subject to examination by taxing authorities.

27

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2017 and 2016 was as follows:

2017 Distributions Paid From: Ordinary Income (000)		2016 Distributions Paid From: Ordinary Income (000)
$	216	$	379

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, 2017:

Distributions in Excess of Net Investment Income (000)			Accumulated Net Realized Loss (000)		Paid-in- Capital (000)
$	(131	)	$	135	$	(4	)

At September 30, 2017, the Fund had no distributable earnings on a tax basis.

At September 30, 2017, the Fund had available for federal income tax purposes unused short term capital losses, of approximately $95,000 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. During the year ended September 30, 2017, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $237,000.

Qualified late year losses are capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year that, if elected, are deemed to arise on

the first day of the Fund's next taxable year. These also include non-specified ordinary losses incurred after December 31 but within the same taxable year. For the year ended September 30, 2017, the Fund deferred to October 1, 2017 for U.S. federal income tax purposes the following losses:

Qualified Late Year Ordinary Losses (000)		Post-October Capital Losses (000)
$	11	$	—

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 1 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 29, 2018, the Fund did not have any borrowings under the Facility.

J. Other: At March 29, 2018, the Fund did not have record owners of 10% or greater.

K. Accounting Pronouncement: In March 2017, FASB issued an Accounting Standard Update, ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities (the "ASU") which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. At this time, management is evaluating the implications of these changes on the financial statements.

28

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

29

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 non-affiliated 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:

  DST Asset Manager Solutions, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

30

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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:

DST Asset Manager Solutions, 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 non-affiliated 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.

31

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

Michael J. Key
Vice President

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

DST Asset Manager Solutions, 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 to the SEC's Public Reference Section, Washington, D.C. 20549-1520.

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.

32

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

© 2018 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTSIPSAN
2100488 EXP 05.31.19

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Ultra-Short Income Portfolio

Semi-Annual Report

March 29, 2018

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Table of Contents

Shareholders' Letter	2
Expense Example	3
Portfolio of Investments	4
Statement of Assets and Liabilities	7
Statement of Operations	8
Statements of Changes in Net Assets	9
Financial Highlights	10
Notes to Financial Statements	13
Privacy Notice	18
Trustee and Officer Information	21

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 fund 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 29, 2018

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 2018

2

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 29, 2018 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 10/1/17		Actual Ending Account Value 3/29/18		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	$	1,007.60	$	1,023.92	$	1.16	$	1.17		0.23	%
Ultra-Short Income Portfolio Institutional Class		1,000.00		1,006.30		1,023.66		1.41		1.42		0.28
Ultra-Short Income Portfolio Class A		1,000.00		1,005.30		1,022.66		2.41		2.43		0.48

*  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 183/365 (to reflect the most recent one-half year period).

**  Annualized.

3

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
Commercial Paper (a) (10.4%)
Automobiles (1.5%)
Toyota Credit Canada, Inc.,
1.86%, 5/31/18	$	50,000	$	49,825
1.87%, 6/14/18		50,000		49,771
				99,596
Computer Technology (1.0%)
HP, Inc.
2.72%, 6/14/18		65,000		64,722
Diversified Financial Services (1.9%)
Fortive Corp.,
2.46%, 6/12/18		37,000		36,812
2.57%, 6/13/18		30,000		29,846
Lam Research Corp.
2.70%, 6/15/18 (b)		65,000		64,665
				131,323
Hospitality (1.0%)
Marriott International, Inc.
2.51%, 6/8/18		67,000		66,681
Insurance (0.9%)
Marsh & McLennan Cos., Inc.
2.61%, 6/14/18 (d)		65,000		64,660
International Banks (4.1%)
Macquarie Bank Ltd.
2.01%, 6/14/18		75,000		74,655
National Australia Bank Ltd.
1.87%, 6/14/18		85,000		84,608
Sumitomo Mitsui Banking Corp.,
2.40%, 7/23/18		15,935		15,817
Sumitomo Mitsui Trust Bank Ltd.
2.31%, 6/14/18		25,000		24,884
Suncorp-Metway Ltd.
2.53%, 9/25/18		30,000		29,627
United Overseas Bank Ltd.
2.35%, 9/10/18		45,000		44,510
				274,101
Total Commercial Paper (Cost $701,205)				701,083
Corporate Bonds (0.3%)
International Banks (0.3%)
Sumitomo Mitsui Banking Corp.,
1.95%, 7/23/18		11,575		11,561
2.50%, 7/19/18		5,950		5,948
Total Corporate Bonds (Cost $17,522)				17,509
Floating Rate Notes (c) (69.4%)
Diversified Financial Services (1.5%)
Collateralized Commercial Paper Co. LLC,
1 Month USD LIBOR + 0.22%, 2.04%, 7/18/18		40,000		39,998
1 Month USD LIBOR + 0.22%, 2.08%, 5/23/18		10,000		10,003

	Face Amount (000)		Value (000)
Collateralized Commercial Paper II Co. LLC, 1 Month USD LIBOR + 0.25%,
2.12%, 10/24/18 (b)	$	50,000	$	49,963
				99,964
Domestic Banks (1.9%)
HSBC Bank USA NA, 1 Month USD LIBOR + 0.20%,
2.07%, 7/25/18		25,000		24,996
Mizuho Securities USA LLC,
3 Month USD LIBOR + 0.35%, 2.26%, 3/20/19 (b)		35,000		35,008
3 Month USD LIBOR + 0.34%, 2.56%, 9/21/18 (b)		35,000		35,004
3 Month USD LIBOR + 0.34%, 2.63%, 12/24/18		35,000		35,003
				130,011
International Banks (66.0%)
ANZ New Zealand International Ltd., 3 Month USD LIBOR + 0.15%,
2.37%, 6/21/18 (b)		125,000		125,048
ASB Finance Ltd. London,
1 Month USD LIBOR + 0.22%, 2.10%, 8/28/18 (b)		110,000		109,953
1 Month USD LIBOR + 0.26%, 2.12%, 1/23/19 (b)		100,000		99,882
3 Month USD LIBOR + 0.27%, 2.54%, 3/22/19 (b)		75,000		74,998
Australia & New Zealand Bank
3 Month USD LIBOR + 0.19%, 2.48%, 12/21/18 (b)		50,000		50,002
Bank of Montreal,
1 Month USD LIBOR + 0.22%, 1.92%, 8/7/18		68,500		68,473
3 Month USD LIBOR + 0.12%, 2.41%, 6/26/18		50,000		49,995
3 Month USD LIBOR + 0.28%, 2.53%, 3/22/19		125,000		125,006
Bank of Nova Scotia, 3 Month USD LIBOR + 0.21%,
2.51%, 12/21/18 (b)		20,000		20,000
Bank of Nova Scotia,
3 Month USD LIBOR + 0.16%, 2.22%, 12/21/18		50,000		50,038
3 Month USD LIBOR + 0.14%, 2.34%, 9/20/18 (b)		30,000		30,023
Barclays Bank PLC, 1 Month USD LIBOR + 0.36%,
2.23%, 12/24/18		50,000		49,973
BNZ International Funding Ltd.,
3 Month USD LIBOR + 0.15%, 2.26%, 6/14/18 (b)		80,000		80,046
3 Month USD LIBOR + 0.15%, 2.44%, 9/24/18 (b)		35,000		35,036
3 Month USD LIBOR + 0.27%, 2.52%, 3/21/19 (b)		50,000		50,002
Canadian Imperial Bank of Commerce,
1 Month USD LIBOR + 0.26%, 2.01%, 11/13/18		75,000		74,937
1 Month USD LIBOR + 0.23%, 2.05%, 10/18/18 (b)		75,000		74,883

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
International Banks (cont'd)
1 Month USD LIBOR + 0.29%, 2.16%, 11/26/18 (b)	$	50,000	$	49,926
3 Month USD LIBOR + 0.25%, 2.34%, 9/13/18		13,000		13,005
Commonwealth Bank of Australia, 1 Month USD LIBOR + 0.26%,
2.11%, 12/21/18 (b)		50,000		49,950
Credit Agricole,
1 Month USD LIBOR + 0.23%, 2.04%, 8/17/18		140,000		139,955
1 Month USD LIBOR + 0.25%, 2.12%, 9/25/18		120,000		119,932
Credit Suisse AG,
1 Month USD LIBOR + 0.26%, 2.13%, 10/24/18		130,000		129,937
1 Month USD LIBOR + 0.35%, 2.22%, 1/24/19 - 1/25/19		205,000		204,859
HSBC Bank PLC,
1 Month USD LIBOR + 0.26%, 2.13%, 1/25/19 (b)		40,000		39,951
1 Month USD LIBOR + 0.35%, 2.22%, 2/26/19 (b)		100,000		99,893
3 Month USD LIBOR + 0.14%, 2.43%, 6/25/18 (b)		60,000		60,055
Lloyds Bank PLC, 3 Month USD LIBOR + 0.18%,
2.47%, 6/25/18		75,000		75,083
Mizuho Bank Ltd.,
1 Month USD LIBOR + 0.23%, 2.04%, 6/18/18		130,000		129,989
1 Month USD LIBOR + 0.30%, 2.15%, 8/21/18		30,000		29,993
3 Month USD LIBOR + 0.50%, 2.79%, 9/24/18		54,203		54,246
Natixis NY,
1 Month USD LIBOR + 0.25%, 2.06%, 7/31/18		75,000		74,990
1 Month USD LIBOR + 0.25%, 2.12%, 9/24/18		125,000		124,930
3 Month USD LIBOR + 0.31%, 2.20%, 5/18/18		75,000		75,065
Nordea Bank Finland PLC
3 Month USD LIBOR + 0.20%, 2.35%, 3/22/19		90,000		90,004
Oversea-Chinese Banking Corp.
1 Month USD LIBOR + 0.30%, 2.17%, 11/23/18 (b)		100,000		99,944
Royal Bank of Canada,
1 Month USD LIBOR + 0.20%, 2.07%, 7/24/18		75,000		74,985
3 Month USD LIBOR + 0.14%, 2.43%, 9/24/18		100,000		100,096
3 Month USD LIBOR + 0.15%, 2.44%, 12/24/18		90,000		90,112
Sumitomo Mitsui Banking Corp.,
1 Month USD LIBOR + 0.28%, 1.93%, 7/30/18		15,000		15,000
1 Month USD LIBOR + 0.22%, 2.03%, 6/18/18		145,000		144,977
1 Month USD LIBOR + 0.25%, 2.06%, 7/18/18		125,000		124,984
1 Month USD LIBOR + 0.22%, 2.07%, 6/22/18		20,000		19,997
Sumitomo Mitsui Trust Bank Ltd.,
1 Month USD LIBOR + 0.22%, 2.03%, 6/18/18		130,000		129,981
1 Month USD LIBOR + 0.22%, 2.06%, 6/21/18		90,325		90,313
3 Month USD LIBOR + 0.20%, 2.49%, 9/25/18		52,000		52,058
Svenska Handelsbanken AB
3 Month USD LIBOR + 0.20%, 2.32%, 3/22/19		90,000		89,989

	Face Amount (000)		Value (000)
Toronto Dominion Bank,
1 Month USD LIBOR + 0.20%, 2.04%, 8/21/18 (b)	$	50,000	$	49,977
3 Month USD LIBOR + 0.14%, 2.43%, 12/24/18 (b)		125,000		125,128
3 Month USD LIBOR + 0.27%, 2.54%, 3/26/19 (b)		100,000		99,995
UBS AG,
1 Month USD LIBOR + 0.30%, 2.04%, 10/12/18 (b)		100,000		99,957
1 Month USD LIBOR + 0.30%, 2.11%, 11/16/18 (b)		120,000		119,930
3 Month USD LIBOR + 0.23%, 2.52%, 12/24/18 (b)		80,000		80,147
Westpac Banking Corp.,
1 Month USD LIBOR + 0.22%, 2.09%, 10/24/18 (b)		110,000		109,903
				4,447,531
Total Floating Rate Notes (Cost $4,678,118)				4,677,506
Repurchase Agreements (21.1%)
BNP Paribas Prime Brokerage, Inc., (1.91%, dated 3/29/18, due 4/2/18; proceeds $280,059; fully collateralized by various Corporate Bonds; 3.95% - 13.00% due 4/1/18 - 4/1/45 (e); valued at $296,846)		280,000		280,000
BNP Paribas Prime Brokerage, Inc., (2.44% (c), dated 1/25/18, due 10/25/18; proceeds $50,924; fully collateralized by various Corporate Bonds; 3.65% - 11.00% due 8/1/18 - 10/1/44; valued at $53,744) (Demand 4/26/18)		50,000		50,000
JP Morgan Securities LLC, (2.32% (c), dated 10/17/17, due 7/16/18; proceeds $178,065; fully collateralized by various Corporate Bonds; 5.75% - 13.75% due 1/15/19 - 10/1/40; valued at $185,668) (Demand 4/16/18)		175,000		175,000
JP Morgan Securities LLC, (2.33% (c), dated 2/1/18, due 7/16/18; proceeds $20,214; fully collateralized by various Corporate Bonds; 6.13% - 10.00% due 4/1/22 - 4/15/25; valued at $21,294) (Demand 4/16/18)		20,000		20,000
Merrill Lynch Pierce Fenner & Smith, (2.57% (c), dated 3/22/18, due 12/21/18; proceeds $254,892; fully collateralized by various Common Stocks and various Preferred Stocks; valued at $262,500) (Demand 6/21/18)		250,000		250,000
Pershing LLC, (1.89%, dated 3/29/18, due 4/2/18; proceeds $250,053; fully collateralized by various Corporate Bonds; 1.20% - 11.50% due 4/9/18 - 10/1/97 (e); valued at $263,999)		250,000		250,000
RBC Capital Markets LLC, (2.54%, dated 3/22/18, due 7/13/18; proceeds $50,399; fully collateralized by various Corporate Bonds; 1.70% - 10.75% due 6/15/18 - 2/28/57 (e); valued at $53,010)		50,000		50,000

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Portfolio of Investments (cont'd)

Ultra-Short Income Portfolio

	Face Amount (000)		Value (000)
Repurchase Agreements (cont'd)
Scotia Capital USA, Inc., (1.88%, dated 3/29/18, due 4/2/18; proceeds $225,047; fully collateralized by various Corporate Bonds; 3.75% - 8.75% due 6/15/18 - 9/15/24; valued at $238,413)	$	225,000	$	225,000
Wells Fargo Securities LLC, (2.67%, dated 3/21/18, due 6/13/18; proceeds $60,374; fully collateralized by various Corporate Bonds; 1.65% - 5.38% due 8/19/20 - 12/15/47; valued at $63,063)		60,000		60,000
Wells Fargo Securities LLC, (2.69%, dated 3/22/18, due 6/14/18; proceeds $60,377; fully collateralized by various Corporate Bonds; 1.20% - 4.50% due 5/18/19 - 6/14/46; valued at $63,062)		60,000		60,000
Total Repurchase Agreements (Cost $1,420,000)				1,420,000
Total Investments (101.2%) (Cost $6,816,845) (f)(g)				6,816,098
Liabilities in Excess of Other Assets (–1.2%)				(81,684	)
Net Assets (100.0%)			$	6,734,414

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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)  Floating or Variable rate securities: The rates disclosed are as of March 29, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description in the Portfolio of Investments. Certain variable rate securities may not be based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description in the Portfolio of Investments.

(d)  Security is subject to delayed delivery.

(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 29, 2018.

(f)  Securities are available for collateral in connection with securities purchased on a forward commitment basis.

(g)  At March 29, 2018, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,070,000 and the aggregate gross unrealized depreciation is approximately $1,817,000, resulting in net unrealized depreciation of approximately $747,000.

LIBOR  London Interbank Offered Rate.

USD  United States Dollar.

Portfolio Composition

Classification	Percentage of Total Investments
Floating Rate Notes		68.6	%
Repurchase Agreements		20.8
Commercial Paper		10.3
Other*		0.3
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.
6

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Ultra-Short Income Portfolio

Statement of Assets and Liabilities	March 29, 2018 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $6,816,845, including value of repurchases agreements of $1,420,000)	$	6,816,098
Cash		825
Interest Receivable		4,111
Receivable for Fund Shares Sold		987
Other Assets		836
Total Assets		6,822,857
Liabilities:
Payable for Investments Purchased		64,657
Payable for Fund Shares Redeemed		10,369
Dividends Payable		9,605
Payable for Advisory Fees		2,210
Payable for Shareholder Services Fees — Institutional Class		85
Payable for Shareholder Services Fees — Class A		787
Payable for Administration Fees		472
Payable for Professional Fees		66
Payable for Custodian Fees		50
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		139
Total Liabilities		88,443
Net Assets	$	6,734,414
Net Assets Consist Of:
Paid-in-Capital	$	6,734,834
Undistributed Net Investment Income		3
Accumulated Undistributed Net Realized Gain		324
Unrealized Appreciation (Depreciation) on:
Investments		(747	)
Net Assets	$	6,734,414
CLASS IR:
Net Assets	$	1,164,837
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		116,382,765
Net Asset Value, Offering and Redemption Price Per Share	$	10.01
Institutional Class:
Net Assets	$	1,922,669
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		192,182,213
Net Asset Value, Offering and Redemption Price Per Share	$	10.00
CLASS A:
Net Assets	$	3,646,908
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		364,555,466
Net Asset Value, Offering and Redemption Price Per Share	$	10.00

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018R (unaudited)

Ultra-Short Income Portfolio

Statement of Operations	Six Months Ended March 29, 2018 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	55,976
Expenses:
Advisory Fees (Note B)		6,408
Shareholder Services Fees — Institutional Class (Note D)		457
Shareholder Services Fees — Class A (Note D)		3,909
Administration Fees (Note C)		2,563
Registration Fees		309
Trustees' Fees and Expenses		72
Professional Fees		66
Custodian Fees (Note F)		46
Shareholder Reporting Fees		27
Pricing Fees		7
Transfer Agency Fees — Class IR (Note E)		2
Transfer Agency Fees — Institutional Class (Note E)		1
Transfer Agency Fees — Class A (Note E)		2
Other Expenses		65
Total Expenses		13,934
Waiver of Advisory Fees (Note B)		(2,194	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Reimbursement of Class Specific Expenses — Institutional Class (Note B)		(1	)
Net Expenses		11,738
Net Investment Income		44,238
Realized Gain:
Investments Sold		461
Change in Unrealized Appreciation (Depreciation):
Investments		(2,596	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(2,135	)
Net Increase in Net Assets Resulting from Operations	$	42,103

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Ultra-Short Income Portfolio

Statements of Changes in Net Assets	Six Months Ended March 29, 2018R (unaudited) (000)			Year Ended September 30, 2017 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	44,238		$	31,934
Net Realized Gain		461			344
Net Change in Unrealized Appreciation (Depreciation)		(2,596	)		1,700
Net Increase in Net Assets Resulting from Operations		42,103			33,978
Distributions from and/or in Excess of:
Class IR:
Net Investment Income		(10,925	)		(7,247	)
Net Realized Gain		(100	)		(6	)
Institutional Class:
Net Investment Income		(13,311	)		(12,198	)
Net Realized Gain		(137	)		(22	)
Class A:
Net Investment Income		(19,828	)		(12,636	)
Net Realized Gain		(228	)		(24	)
Total Distributions		(44,529	)		(32,133	)
Capital Share Transactions:(1)
Class IR:
Subscribed		1,575,803			1,819,409
Distributions Reinvested		7,410			5,461
Redeemed		(1,540,410	)		(979,149	)
Institutional Class:
Subscribed		1,071,875			3,111,830
Distributions Reinvested		10,577			12,171
Redeemed		(854,684	)		(1,625,188	)
Class A:
Subscribed		2,835,601			4,070,183
Distributions Reinvested		15,328			12,590
Redeemed		(1,784,180	)		(1,666,600	)
Net Increase in Net Assets Resulting from Capital Share Transactions		1,337,320			4,760,707
Total Increase in Net Assets		1,334,894			4,762,552
Net Assets:
Beginning of Period		5,399,520			636,968
End of Period (Including Undistributed Net Investment Income and Distributions in Excess of Net Investment Income of $3 and $(171), respectively)	$	6,734,414		$	5,399,520
(1)   Capital Share Transactions:
Class IR:
Shares Subscribed		157,423			181,762
Shares Issued on Distributions Reinvested		740			545
Shares Redeemed		(153,887	)		(97,824	)
Net Increase in Class IR Shares Outstanding		4,276			84,483
Institutional Class:
Shares Subscribed		107,081			311,017
Shares Issued on Distributions Reinvested		1,057			1,216
Shares Redeemed		(85,386	)		(162,409	)
Net Increase in Institutional Class Shares Outstanding		22,752			149,824
Class A:
Shares Subscribed		283,295			406,818
Shares Issued on Distributions Reinvested		1,532			1,258
Shares Redeemed		(178,253	)		(166,547	)
Net Increase in Class A Shares Outstanding		106,574			241,529

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

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

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Ultra-Short Income Portfolio

	Class IR
Selected Per Share Data and Ratios	Six Months Ended March 29, 2018R (unaudited)			Year Ended September 30, 2017			Period from April 28, 2016(1) to September 30, 2016
Net Asset Value, Beginning of Period	$	10.01		$	10.00		$	10.00
Income from Investment Operations:
Net Investment Income(2)		0.08			0.12			0.03
Net Realized and Unrealized Gain		0.00	(3)		0.00	(3)		0.00	(3)
Total from Investment Operations		0.08			0.12			0.03
Distributions from and/or in Excess of:
Net Investment Income		(0.08	)		(0.11	)		(0.03	)
Net Realized Gain		(0.00	)(3)		(0.00	)(3)		—
Total Distributions		(0.08	)		(0.11	)		(0.03	)
Net Asset Value, End of Period	$	10.01		$	10.01		$	10.00
Total Return(4)		0.76	%(5)		1.18	%		0.26	%(5)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,164,837		$	1,122,452		$	276,348
Ratio of Expenses to Average Net Assets(7)		0.23	%(6)		0.22	%		0.18	%(6)
Ratio of Net Investment Income to Average Net Assets(7)		1.51	%(6)		1.16	%		0.61	%(6)
Portfolio Turnover Rate		0	%(5)		0	%		0	%(5)
(7) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.30	%(6)		0.30	%		0.42	%(6)
Net Investment Income to Average Net Assets		1.44	%(6)		1.08	%		0.37	%(6)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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.
10

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

Financial Highlights

Ultra-Short Income Portfolio

	Institutional Class
Selected Per Share Data and Ratios	Six Months Ended March 29, 2018R(unaudited)			Year Ended September 30, 2017			Period from April 28, 2016(1) to September 30, 2016
Net Asset Value, Beginning of Period	$	10.01		$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.07			0.11			0.02
Net Realized and Unrealized Gain (Loss)		(0.01	)		0.00	(3)		0.00	(3)
Total from Investment Operations		0.06			0.11			0.02
Distributions from and/or in Excess of:
Net Investment Income		(0.07	)		(0.10	)		(0.02	)
Net Realized Gain		(0.00	)(3)		(0.00	)(3)		—
Total Distributions		(0.07	)		(0.10	)		(0.02	)
Net Asset Value, End of Period	$	10.00		$	10.01		$	10.00
Total Return(4)		0.63	%(5)		1.13	%		0.24	%(5)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,922,669		$	1,695,589		$	196,092
Ratio of Expenses to Average Net Assets(7)		0.28	%(6)		0.27	%		0.23	%(6)
Ratio of Net Investment Income to Average Net Assets(7)		1.46	%(6)		1.09	%		0.65	%(6)
Portfolio Turnover Rate		0	%(5)		0	%		0	%(5)
(7) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.35	%(6)		0.35	%		0.48	%(6)
Net Investment Income to Average Net Assets		1.39	%(6)		1.01	%		0.40	%(6)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 29, 2018

Financial Highlights

Ultra-Short Income Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended March 29, 2018R(unaudited)			Year Ended September 30, 2017			Period from April 28, 2016(1) to September 30, 2016
Net Asset Value, Beginning of Period	$	10.01		$	10.00		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income(2)		0.06			0.09			0.01
Net Realized and Unrealized Gain (Loss)		(0.01	)		0.00	(3)		0.00	(3)
Total from Investment Operations		0.05			0.09			0.01
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)		(0.08	)		(0.01	)
Net Realized Gain		(0.00	)(3)		(0.00	)(3)		—
Total Distributions		(0.06	)		(0.08	)		(0.01	)
Net Asset Value, End of Period	$	10.00		$	10.01		$	10.00
Total Return(4)		0.53	%(5)		0.92	%		0.14	%(5)
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,646,908		$	2,581,479		$	164,528
Ratio of Expenses to Average Net Assets(7)		0.48	%(6)		0.47	%		0.44	%(6)
Ratio of Net Investment Income to Average Net Assets(7)		1.27	%(6)		0.91	%		0.48	%(6)
Portfolio Turnover Rate		0	%(5)		0	%		0	%(5)
(7) Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.55	%(6)		0.55	%		0.68	%(6)
Net Investment Income to Average Net Assets		1.20	%(6)		0.83	%		0.24	%(6)

R  March 29, 2018 represents the last business day of the Fund's semi-annual period.

(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 29, 2018

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 or

13

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

2.  Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value 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 29, 2018:

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
Commercial Paper	$	—	$	701,083	$	—	$	701,083
Corporate Bonds		—		17,509		—		17,509
Floating Rate Notes		—		4,677,506		—		4,677,506
Repurchase Agreements		—		1,420,000		—		1,420,000
Total Short-Term Investments		—		6,816,098		—		6,816,098
Total Assets	$	—	$	6,816,098	$	—	$	6,816,098

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 29, 2018, 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

14

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 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 Fund'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 Fund, 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.  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.

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: Dividends and distributions to shareholders are recorded on the close of each business day. Dividends from net investment income are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually.

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

15

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 29, 2018, approximately $2,194,000 of advisory fees were waived and approximately $2,000 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. 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 Dis-

tributor 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.

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. Effective January 1, 2018, BFDS changed its name to DST Asset Manager Solutions, Inc.

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") also 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 ("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 29, 2018, 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

16

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

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 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. Each of the tax years in the two-year period ended September 30, 2017, 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 2017 and 2016 was as follows:

2017 Distributions Paid From: Ordinary Income (000)		2016 Distributions Paid From: Ordinary Income (000)
$	32,133	$	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.

Permanent differences, primarily due to basis adjustment for swap transactions and nondeductible expenses, resulted in the following reclassifications among the components of net assets at September 30, 2017:

Distributions in Excess of Net Investment Income (000)		Accumulated Undistributed Net Realized Gain (000)			Paid-in- Capital (000)
$	1	$	—	@	$	(1	)

@ Amount is less than 500

At September 30, 2017, 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)
$	473	$	1

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 1 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 29, 2018, the Fund did not have any borrowings under the Facility.

J. Other: At March 29, 2018, 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 91.3%.

17

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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.

18

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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 non-affiliated 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:

  DST Asset Manager Solutions, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

19

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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:

DST Asset Manager Solutions, 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 non-affiliated 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.

20

Morgan Stanley Institutional Fund Trust

Semi-Annual Report — March 29, 2018

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

Michael J. Key
Vice President

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

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Co-Transfer Agent

Morgan Stanley Services Company, Inc.
522 Fifth Avenue
New York, New York 10036

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 to the SEC's Public Reference Section, Washington, D.C. 20549-1520.

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.

21

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

© 2018 Morgan Stanley. Morgan Stanley Distribution, Inc.

IFTUSISAN
2100509 EXP 05.31.19

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 registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the registrant 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 17, 2018

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 17, 2018

/s/ Francis Smith

Francis Smith

Principal Financial Officer

May 17, 2018