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)
1585 Broadway, New York, New York 10036
(Address of Principal Executive Offices)
John H. Gernon
1585 Broadway, New York, New York 10036
(Name and Address of Agent for Services)
(212) 762-1886
(Registrant’s Telephone Number)
September 30,
Date of Fiscal Year End
September 30, 2024
Date of Reporting Period
Item 1. Reports to Stockholders
(a)
TABLE OF CONTENTS
0000741375morganstanley:BloombergUSUniversalIndexUSD21107BroadBasedIndexMember2024-07-310000741375morganstanley:MSCIAllCountryWorldIndexUSD21046BroadBasedIndexMember2021-11-30
Morgan Stanley Institutional Fund Trust - Corporate Bond Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Corporate Bond Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $48 | 0.45% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Bloomberg U.S. Corporate Index:
↑ The portfolio’s overall investment grade credit positioning, which benefited from spreads tightening to historical levels.
↑ Overweight to high yield corporate bonds benefited as spreads tightened, particularly the overweight to financial institutions and industrials.
↑ Overweight to investment grade financial institutions, specifically banking and insurance.
↑ Overweight to certain subsectors and security selection within investment grade industrials, specifically energy and consumer cyclical.
↑ Overweight to investment grade utilities, specifically the electric sector.
↑ The portfolio’s duration exposure contributed slightly as interest rates fell during the period despite the volatility.
↓ Underweight to investment grade communications, as spreads tightened.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class A with maximum sales charge | Bloomberg U.S. Universal Index | Bloomberg U.S. Corporate Index |
|---|
| 9/14 | $9,678 | $10,000 | $10,000 |
| 10/14 | $9,749 | $10,098 | $10,102 |
| 11/14 | $9,801 | $10,152 | $10,170 |
| 12/14 | $9,828 | $10,134 | $10,177 |
| 1/15 | $10,066 | $10,327 | $10,485 |
| 2/15 | $10,013 | $10,267 | $10,379 |
| 3/15 | $10,022 | $10,309 | $10,412 |
| 4/15 | $9,952 | $10,297 | $10,339 |
| 5/15 | $9,881 | $10,279 | $10,272 |
| 6/15 | $9,712 | $10,164 | $10,083 |
| 7/15 | $9,731 | $10,224 | $10,151 |
| 8/15 | $9,642 | $10,194 | $10,091 |
| 9/15 | $9,642 | $10,233 | $10,166 |
| 10/15 | $9,749 | $10,266 | $10,209 |
| 11/15 | $9,713 | $10,229 | $10,186 |
| 12/15 | $9,589 | $10,178 | $10,107 |
| 1/16 | $9,525 | $10,290 | $10,143 |
| 2/16 | $9,580 | $10,363 | $10,225 |
| 3/16 | $10,439 | $10,490 | $10,508 |
| 4/16 | $10,622 | $10,562 | $10,652 |
| 5/16 | $10,613 | $10,570 | $10,644 |
| 6/16 | $10,823 | $10,756 | $10,884 |
| 7/16 | $11,000 | $10,844 | $11,043 |
| 8/16 | $11,046 | $10,856 | $11,064 |
| 9/16 | $11,321 | $10,859 | $11,037 |
| 10/16 | $11,231 | $10,787 | $10,947 |
| 11/16 | $10,935 | $10,544 | $10,653 |
| 12/16 | $11,003 | $10,576 | $10,725 |
| 1/17 | $11,077 | $10,613 | $10,758 |
| 2/17 | $11,198 | $10,695 | $10,881 |
| 3/17 | $11,170 | $10,691 | $10,856 |
| 4/17 | $11,281 | $10,780 | $10,972 |
| 5/17 | $11,403 | $10,863 | $11,098 |
| 6/17 | $11,459 | $10,854 | $11,132 |
| 7/17 | $11,552 | $10,908 | $11,213 |
| 8/17 | $11,627 | $11,002 | $11,300 |
| 9/17 | $11,608 | $10,963 | $11,281 |
| 10/17 | $11,646 | $10,976 | $11,326 |
| 11/17 | $11,617 | $10,960 | $11,310 |
| 12/17 | $11,720 | $11,008 | $11,413 |
| 1/18 | $11,625 | $10,902 | $11,304 |
| 2/18 | $11,415 | $10,799 | $11,120 |
| 3/18 | $11,424 | $10,853 | $11,148 |
| 4/18 | $11,307 | $10,781 | $11,045 |
| 5/18 | $11,355 | $10,840 | $11,104 |
| 6/18 | $11,268 | $10,824 | $11,040 |
| 7/18 | $11,391 | $10,847 | $11,132 |
| 8/18 | $11,420 | $10,900 | $11,186 |
| 9/18 | $11,391 | $10,853 | $11,147 |
| 10/18 | $11,199 | $10,763 | $10,984 |
| 11/18 | $11,131 | $10,811 | $10,966 |
| 12/18 | $11,228 | $10,980 | $11,127 |
| 1/19 | $11,522 | $11,132 | $11,388 |
| 2/19 | $11,581 | $11,144 | $11,413 |
| 3/19 | $11,865 | $11,345 | $11,699 |
| 4/19 | $11,965 | $11,361 | $11,763 |
| 5/19 | $12,104 | $11,535 | $11,931 |
| 6/19 | $12,420 | $11,698 | $12,223 |
| 7/19 | $12,511 | $11,733 | $12,291 |
| 8/19 | $12,880 | $11,998 | $12,678 |
| 9/19 | $12,787 | $11,946 | $12,595 |
| 10/19 | $12,864 | $11,985 | $12,672 |
| 11/19 | $12,901 | $11,982 | $12,704 |
| 12/19 | $12,957 | $12,000 | $12,744 |
| 1/20 | $13,249 | $12,216 | $13,043 |
| 2/20 | $13,378 | $12,399 | $13,218 |
| 3/20 | $12,343 | $12,156 | $12,281 |
| 4/20 | $13,006 | $12,400 | $12,925 |
| 5/20 | $13,262 | $12,516 | $13,127 |
| 6/20 | $13,570 | $12,620 | $13,385 |
| 7/20 | $14,010 | $12,842 | $13,820 |
| 8/20 | $13,836 | $12,768 | $13,629 |
| 9/20 | $13,795 | $12,745 | $13,590 |
| 10/20 | $13,763 | $12,699 | $13,566 |
| 11/20 | $14,182 | $12,865 | $13,944 |
| 12/20 | $14,253 | $12,909 | $14,004 |
| 1/21 | $14,050 | $12,828 | $13,825 |
| 2/21 | $13,805 | $12,663 | $13,587 |
| 3/21 | $13,558 | $12,515 | $13,353 |
| 4/21 | $13,675 | $12,621 | $13,501 |
| 5/21 | $13,749 | $12,669 | $13,605 |
| 6/21 | $14,005 | $12,761 | $13,827 |
| 7/21 | $14,175 | $12,889 | $14,016 |
| 8/21 | $14,118 | $12,881 | $13,974 |
| 9/21 | $13,963 | $12,771 | $13,827 |
| 10/21 | $14,002 | $12,760 | $13,861 |
| 11/21 | $13,967 | $12,776 | $13,870 |
| 12/21 | $13,947 | $12,767 | $13,858 |
| 1/22 | $13,502 | $12,487 | $13,392 |
| 2/22 | $13,209 | $12,317 | $13,124 |
| 3/22 | $12,886 | $11,986 | $12,793 |
| 4/22 | $12,170 | $11,539 | $12,094 |
| 5/22 | $12,226 | $11,603 | $12,207 |
| 6/22 | $11,836 | $11,371 | $11,865 |
| 7/22 | $12,231 | $11,657 | $12,249 |
| 8/22 | $11,873 | $11,354 | $11,890 |
| 9/22 | $11,247 | $10,865 | $11,265 |
| 10/22 | $11,107 | $10,745 | $11,148 |
| 11/22 | $11,663 | $11,146 | $11,726 |
| 12/22 | $11,643 | $11,108 | $11,674 |
| 1/23 | $12,134 | $11,453 | $12,142 |
| 2/23 | $11,791 | $11,171 | $11,756 |
| 3/23 | $12,072 | $11,434 | $12,083 |
| 4/23 | $12,170 | $11,503 | $12,176 |
| 5/23 | $12,014 | $11,384 | $11,999 |
| 6/23 | $12,091 | $11,366 | $12,049 |
| 7/23 | $12,146 | $11,378 | $12,090 |
| 8/23 | $12,050 | $11,309 | $11,996 |
| 9/23 | $11,718 | $11,040 | $11,676 |
| 10/23 | $11,479 | $10,874 | $11,457 |
| 11/23 | $12,176 | $11,363 | $12,142 |
| 12/23 | $12,771 | $11,794 | $12,669 |
| 1/24 | $12,771 | $11,766 | $12,647 |
| 2/24 | $12,601 | $11,625 | $12,457 |
| 3/24 | $12,779 | $11,739 | $12,618 |
| 4/24 | $12,463 | $11,465 | $12,297 |
| 5/24 | $12,704 | $11,655 | $12,527 |
| 6/24 | $12,799 | $11,761 | $12,607 |
| 7/24 | $13,091 | $12,028 | $12,907 |
| 8/24 | $13,303 | $12,205 | $13,110 |
| 9/24 | $13,515 | $12,373 | $13,343 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class A | 15.34% | 1.11% | 3.40% |
| Class A with maximum 3.25% sales charge | 11.54% | 0.45% | 3.06% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 2.15% |
| Bloomberg U.S. Corporate Index | 14.28% | 1.16% | 2.93% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $124,472,852 |
| # of Portfolio Holdings | 242 |
| Portfolio Turnover Rate | 183% |
| Total Advisory Fees Paid | $113,800 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Sovereign | 0.2% |
| Commercial Mortgage-Backed Securities | 1.1% |
| Investment Companies | 1.3% |
| Short-Term Investments | 5.4% |
| Corporate Bonds | 92.0% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 3.3% |
| Not Rated | 1.3% |
| B | 0.5% |
| BB | 1.3% |
| BBB | 45.4% |
| A | 34.8% |
| AA | 10.3% |
| AAA | 3.1% |
| Footnote | Description |
Footnotea | Security ratings disclosed with the exception for those labeled "Not Rated" is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Corporate Bond Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Corporate Bond Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $140 | 1.31% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Bloomberg U.S. Corporate Index:
↑ The portfolio’s overall investment grade credit positioning, which benefited from spreads tightening to historical levels.
↑ Overweight to high yield corporate bonds benefited as spreads tightened, particularly the overweight to financial institutions and industrials.
↑ Overweight to investment grade financial institutions, specifically banking and insurance.
↑ Overweight to certain subsectors and security selection within investment grade industrials, specifically energy and consumer cyclical.
↑ Overweight to investment grade utilities, specifically the electric sector.
↑ The portfolio’s duration exposure contributed slightly as interest rates fell during the period despite the volatility.
↓ Underweight to investment grade communications, as spreads tightened.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class C | Bloomberg U.S. Universal Index | Bloomberg U.S. Corporate Index |
|---|
| 4/15 | $10,000 | $10,000 | $10,000 |
| 5/15 | $9,929 | $10,000 | $10,000 |
| 6/15 | $9,750 | $9,871 | $9,752 |
| 7/15 | $9,768 | $9,929 | $9,818 |
| 8/15 | $9,669 | $9,899 | $9,760 |
| 9/15 | $9,660 | $9,938 | $9,833 |
| 10/15 | $9,759 | $9,970 | $9,874 |
| 11/15 | $9,714 | $9,933 | $9,852 |
| 12/15 | $9,588 | $9,884 | $9,775 |
| 1/16 | $9,516 | $9,993 | $9,810 |
| 2/16 | $9,570 | $10,064 | $9,889 |
| 3/16 | $10,413 | $10,187 | $10,163 |
| 4/16 | $10,596 | $10,257 | $10,303 |
| 5/16 | $10,578 | $10,265 | $10,295 |
| 6/16 | $10,778 | $10,445 | $10,526 |
| 7/16 | $10,958 | $10,531 | $10,680 |
| 8/16 | $10,985 | $10,543 | $10,701 |
| 9/16 | $11,251 | $10,545 | $10,675 |
| 10/16 | $11,155 | $10,475 | $10,588 |
| 11/16 | $10,851 | $10,240 | $10,304 |
| 12/16 | $10,907 | $10,270 | $10,373 |
| 1/17 | $10,981 | $10,307 | $10,405 |
| 2/17 | $11,101 | $10,386 | $10,524 |
| 3/17 | $11,055 | $10,383 | $10,500 |
| 4/17 | $11,157 | $10,469 | $10,612 |
| 5/17 | $11,268 | $10,550 | $10,734 |
| 6/17 | $11,324 | $10,541 | $10,767 |
| 7/17 | $11,408 | $10,593 | $10,845 |
| 8/17 | $11,473 | $10,684 | $10,929 |
| 9/17 | $11,454 | $10,647 | $10,911 |
| 10/17 | $11,477 | $10,660 | $10,955 |
| 11/17 | $11,439 | $10,644 | $10,939 |
| 12/17 | $11,539 | $10,690 | $11,038 |
| 1/18 | $11,435 | $10,588 | $10,933 |
| 2/18 | $11,227 | $10,487 | $10,755 |
| 3/18 | $11,217 | $10,540 | $10,783 |
| 4/18 | $11,110 | $10,470 | $10,683 |
| 5/18 | $11,139 | $10,527 | $10,740 |
| 6/18 | $11,053 | $10,512 | $10,677 |
| 7/18 | $11,171 | $10,534 | $10,766 |
| 8/18 | $11,190 | $10,585 | $10,819 |
| 9/18 | $11,152 | $10,540 | $10,781 |
| 10/18 | $10,952 | $10,452 | $10,623 |
| 11/18 | $10,885 | $10,499 | $10,606 |
| 12/18 | $10,963 | $10,663 | $10,762 |
| 1/19 | $11,252 | $10,810 | $11,015 |
| 2/19 | $11,290 | $10,822 | $11,039 |
| 3/19 | $11,560 | $11,017 | $11,315 |
| 4/19 | $11,656 | $11,033 | $11,377 |
| 5/19 | $11,782 | $11,202 | $11,540 |
| 6/19 | $12,083 | $11,360 | $11,822 |
| 7/19 | $12,164 | $11,394 | $11,888 |
| 8/19 | $12,516 | $11,652 | $12,262 |
| 9/19 | $12,417 | $11,601 | $12,182 |
| 10/19 | $12,482 | $11,639 | $12,256 |
| 11/19 | $12,510 | $11,637 | $12,287 |
| 12/19 | $12,557 | $11,654 | $12,326 |
| 1/20 | $12,832 | $11,863 | $12,615 |
| 2/20 | $12,949 | $12,041 | $12,784 |
| 3/20 | $11,933 | $11,806 | $11,878 |
| 4/20 | $12,571 | $12,042 | $12,501 |
| 5/20 | $12,813 | $12,155 | $12,697 |
| 6/20 | $13,104 | $12,256 | $12,945 |
| 7/20 | $13,513 | $12,471 | $13,366 |
| 8/20 | $13,336 | $12,399 | $13,182 |
| 9/20 | $13,297 | $12,377 | $13,144 |
| 10/20 | $13,250 | $12,333 | $13,121 |
| 11/20 | $13,647 | $12,494 | $13,486 |
| 12/20 | $13,705 | $12,537 | $13,545 |
| 1/21 | $13,488 | $12,458 | $13,371 |
| 2/21 | $13,250 | $12,297 | $13,141 |
| 3/21 | $13,003 | $12,154 | $12,915 |
| 4/21 | $13,105 | $12,256 | $13,058 |
| 5/21 | $13,167 | $12,303 | $13,159 |
| 6/21 | $13,394 | $12,393 | $13,373 |
| 7/21 | $13,558 | $12,517 | $13,556 |
| 8/21 | $13,493 | $12,509 | $13,515 |
| 9/21 | $13,334 | $12,402 | $13,373 |
| 10/21 | $13,352 | $12,392 | $13,406 |
| 11/21 | $13,318 | $12,407 | $13,414 |
| 12/21 | $13,288 | $12,399 | $13,404 |
| 1/22 | $12,861 | $12,127 | $12,952 |
| 2/22 | $12,571 | $11,961 | $12,693 |
| 3/22 | $12,253 | $11,640 | $12,373 |
| 4/22 | $11,558 | $11,206 | $11,697 |
| 5/22 | $11,604 | $11,268 | $11,806 |
| 6/22 | $11,233 | $11,043 | $11,475 |
| 7/22 | $11,594 | $11,320 | $11,847 |
| 8/22 | $11,255 | $11,026 | $11,499 |
| 9/22 | $10,661 | $10,551 | $10,895 |
| 10/22 | $10,511 | $10,435 | $10,782 |
| 11/22 | $11,034 | $10,824 | $11,341 |
| 12/22 | $11,000 | $10,788 | $11,291 |
| 1/23 | $11,468 | $11,122 | $11,743 |
| 2/23 | $11,134 | $10,849 | $11,370 |
| 3/23 | $11,394 | $11,104 | $11,686 |
| 4/23 | $11,479 | $11,171 | $11,776 |
| 5/23 | $11,312 | $11,056 | $11,605 |
| 6/23 | $11,377 | $11,038 | $11,653 |
| 7/23 | $11,433 | $11,049 | $11,693 |
| 8/23 | $11,333 | $10,983 | $11,603 |
| 9/23 | $11,011 | $10,721 | $11,293 |
| 10/23 | $10,778 | $10,560 | $11,081 |
| 11/23 | $11,431 | $11,035 | $11,744 |
| 12/23 | $11,978 | $11,454 | $12,253 |
| 1/24 | $11,967 | $11,426 | $12,232 |
| 2/24 | $11,809 | $11,289 | $12,048 |
| 3/24 | $11,957 | $11,400 | $12,204 |
| 4/24 | $11,650 | $11,134 | $11,893 |
| 5/24 | $11,868 | $11,318 | $12,116 |
| 6/24 | $11,948 | $11,422 | $12,193 |
| 7/24 | $12,214 | $11,681 | $12,484 |
| 8/24 | $12,393 | $11,853 | $12,680 |
| 9/24 | $12,596 | $12,015 | $12,905 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | Since 4/30/15 (Inception) |
|---|
| Class C | 14.39% | 0.29% | 2.48% |
| Class C with maximum deferred sales charge | 13.39% | 0.29% | 2.48% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 2.75% |
| Bloomberg U.S. Corporate Index | 14.28% | 1.16% | 2.48% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $124,472,852 |
| # of Portfolio Holdings | 242 |
| Portfolio Turnover Rate | 183% |
| Total Advisory Fees Paid | $113,800 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Sovereign | 0.2% |
| Commercial Mortgage-Backed Securities | 1.1% |
| Investment Companies | 1.3% |
| Short-Term Investments | 5.4% |
| Corporate Bonds | 92.0% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 3.3% |
| Not Rated | 1.3% |
| B | 0.5% |
| BB | 1.3% |
| BBB | 45.4% |
| A | 34.8% |
| AA | 10.3% |
| AAA | 3.1% |
| Footnote | Description |
Footnotea | Security ratings disclosed with the exception for those labeled "Not Rated" is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Corporate Bond Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Corporate Bond Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class I | $22 | 0.20% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Bloomberg U.S. Corporate Index:
↑ The portfolio’s overall investment grade credit positioning, which benefited from spreads tightening to historical levels.
↑ Overweight to high yield corporate bonds benefited as spreads tightened, particularly the overweight to financial institutions and industrials.
↑ Overweight to investment grade financial institutions, specifically banking and insurance.
↑ Overweight to certain subsectors and security selection within investment grade industrials, specifically energy and consumer cyclical.
↑ Overweight to investment grade utilities, specifically the electric sector.
↑ The portfolio’s duration exposure contributed slightly as interest rates fell during the period despite the volatility.
↓ Underweight to investment grade communications, as spreads tightened.
Comparison of the change in value of a $1,000,000 investment for the period indicated.
| Class I | Bloomberg U.S. Universal Index | Bloomberg U.S. Corporate Index |
|---|
| 9/14 | $1,000,000 | $1,000,000 | $1,000,000 |
| 10/14 | $1,007,220 | $1,009,792 | $1,010,237 |
| 11/14 | $1,012,655 | $1,015,242 | $1,017,043 |
| 12/14 | $1,016,317 | $1,013,408 | $1,017,662 |
| 1/15 | $1,040,950 | $1,032,698 | $1,048,535 |
| 2/15 | $1,036,388 | $1,026,679 | $1,037,910 |
| 3/15 | $1,037,300 | $1,030,917 | $1,041,222 |
| 4/15 | $1,029,937 | $1,029,721 | $1,033,931 |
| 5/15 | $1,023,506 | $1,027,919 | $1,027,182 |
| 6/15 | $1,006,049 | $1,016,447 | $1,008,303 |
| 7/15 | $1,008,840 | $1,022,366 | $1,015,109 |
| 8/15 | $999,584 | $1,019,354 | $1,009,101 |
| 9/15 | $999,584 | $1,023,344 | $1,016,622 |
| 10/15 | $1,010,760 | $1,026,615 | $1,020,872 |
| 11/15 | $1,007,030 | $1,022,871 | $1,018,639 |
| 12/15 | $994,908 | $1,017,761 | $1,010,697 |
| 1/16 | $988,326 | $1,028,996 | $1,014,281 |
| 2/16 | $994,908 | $1,036,306 | $1,022,471 |
| 3/16 | $1,083,303 | $1,049,006 | $1,050,834 |
| 4/16 | $1,104,131 | $1,056,153 | $1,065,222 |
| 5/16 | $1,102,236 | $1,056,978 | $1,064,398 |
| 6/16 | $1,124,982 | $1,075,586 | $1,088,358 |
| 7/16 | $1,143,994 | $1,084,449 | $1,104,261 |
| 8/16 | $1,147,814 | $1,085,619 | $1,106,423 |
| 9/16 | $1,177,416 | $1,085,877 | $1,103,682 |
| 10/16 | $1,167,825 | $1,078,673 | $1,094,703 |
| 11/16 | $1,138,004 | $1,054,427 | $1,065,336 |
| 12/16 | $1,144,841 | $1,057,560 | $1,072,465 |
| 1/17 | $1,153,566 | $1,061,291 | $1,075,769 |
| 2/17 | $1,166,168 | $1,069,479 | $1,088,108 |
| 3/17 | $1,163,260 | $1,069,121 | $1,085,577 |
| 4/17 | $1,174,958 | $1,077,992 | $1,097,178 |
| 5/17 | $1,188,632 | $1,086,309 | $1,109,793 |
| 6/17 | $1,194,492 | $1,085,388 | $1,113,186 |
| 7/17 | $1,204,331 | $1,090,794 | $1,121,326 |
| 8/17 | $1,213,187 | $1,100,205 | $1,130,033 |
| 9/17 | $1,212,203 | $1,096,333 | $1,128,073 |
| 10/17 | $1,215,162 | $1,097,650 | $1,132,627 |
| 11/17 | $1,213,179 | $1,095,989 | $1,130,977 |
| 12/17 | $1,223,877 | $1,100,820 | $1,141,296 |
| 1/18 | $1,213,894 | $1,090,227 | $1,130,383 |
| 2/18 | $1,192,931 | $1,079,889 | $1,112,034 |
| 3/18 | $1,193,929 | $1,085,336 | $1,114,850 |
| 4/18 | $1,182,639 | $1,078,094 | $1,104,507 |
| 5/18 | $1,187,668 | $1,083,973 | $1,110,424 |
| 6/18 | $1,179,622 | $1,082,401 | $1,103,972 |
| 7/18 | $1,192,753 | $1,084,667 | $1,113,151 |
| 8/18 | $1,195,785 | $1,090,010 | $1,118,648 |
| 9/18 | $1,192,753 | $1,085,340 | $1,114,658 |
| 10/18 | $1,172,355 | $1,076,261 | $1,098,382 |
| 11/18 | $1,166,239 | $1,081,101 | $1,096,552 |
| 12/18 | $1,176,478 | $1,098,015 | $1,112,679 |
| 1/19 | $1,208,358 | $1,113,155 | $1,138,850 |
| 2/19 | $1,213,500 | $1,114,368 | $1,141,319 |
| 3/19 | $1,244,351 | $1,134,491 | $1,169,909 |
| 4/19 | $1,255,784 | $1,136,079 | $1,176,259 |
| 5/19 | $1,269,265 | $1,153,482 | $1,193,115 |
| 6/19 | $1,303,485 | $1,169,797 | $1,222,295 |
| 7/19 | $1,313,905 | $1,173,279 | $1,229,132 |
| 8/19 | $1,351,871 | $1,199,827 | $1,267,786 |
| 9/19 | $1,343,461 | $1,194,629 | $1,259,540 |
| 10/19 | $1,350,826 | $1,198,489 | $1,267,184 |
| 11/19 | $1,355,059 | $1,198,249 | $1,270,375 |
| 12/19 | $1,361,394 | $1,200,035 | $1,274,439 |
| 1/20 | $1,392,142 | $1,221,573 | $1,304,324 |
| 2/20 | $1,407,035 | $1,239,864 | $1,321,775 |
| 3/20 | $1,297,307 | $1,215,645 | $1,228,122 |
| 4/20 | $1,367,499 | $1,239,996 | $1,292,515 |
| 5/20 | $1,394,896 | $1,251,577 | $1,312,733 |
| 6/20 | $1,427,688 | $1,262,020 | $1,338,468 |
| 7/20 | $1,474,383 | $1,284,189 | $1,381,978 |
| 8/20 | $1,456,411 | $1,276,784 | $1,362,922 |
| 9/20 | $1,453,481 | $1,274,483 | $1,359,022 |
| 10/20 | $1,450,568 | $1,269,928 | $1,356,576 |
| 11/20 | $1,494,995 | $1,286,499 | $1,394,370 |
| 12/20 | $1,501,780 | $1,290,942 | $1,400,442 |
| 1/21 | $1,480,439 | $1,282,828 | $1,382,473 |
| 2/21 | $1,454,677 | $1,266,275 | $1,358,655 |
| 3/21 | $1,428,877 | $1,251,539 | $1,335,342 |
| 4/21 | $1,441,394 | $1,262,063 | $1,350,134 |
| 5/21 | $1,449,416 | $1,266,877 | $1,360,507 |
| 6/21 | $1,476,704 | $1,276,113 | $1,382,701 |
| 7/21 | $1,494,961 | $1,288,927 | $1,401,627 |
| 8/21 | $1,489,276 | $1,288,066 | $1,397,386 |
| 9/21 | $1,474,479 | $1,277,067 | $1,382,677 |
| 10/21 | $1,477,892 | $1,276,023 | $1,386,105 |
| 11/21 | $1,474,469 | $1,277,564 | $1,386,959 |
| 12/21 | $1,472,808 | $1,276,703 | $1,385,848 |
| 1/22 | $1,426,930 | $1,248,712 | $1,339,198 |
| 2/22 | $1,396,288 | $1,231,687 | $1,312,412 |
| 3/22 | $1,362,372 | $1,198,643 | $1,279,318 |
| 4/22 | $1,285,782 | $1,153,936 | $1,209,366 |
| 5/22 | $1,292,015 | $1,160,286 | $1,220,656 |
| 6/22 | $1,252,219 | $1,137,100 | $1,186,479 |
| 7/22 | $1,293,280 | $1,165,689 | $1,224,887 |
| 8/22 | $1,256,889 | $1,135,386 | $1,188,969 |
| 9/22 | $1,190,952 | $1,086,469 | $1,126,482 |
| 10/22 | $1,176,489 | $1,074,548 | $1,114,833 |
| 11/22 | $1,235,800 | $1,114,614 | $1,172,562 |
| 12/22 | $1,233,002 | $1,110,828 | $1,167,417 |
| 1/23 | $1,286,347 | $1,145,286 | $1,214,193 |
| 2/23 | $1,250,302 | $1,117,145 | $1,175,570 |
| 3/23 | $1,280,427 | $1,143,352 | $1,208,301 |
| 4/23 | $1,291,107 | $1,150,337 | $1,217,552 |
| 5/23 | $1,273,603 | $1,138,410 | $1,199,919 |
| 6/23 | $1,282,056 | $1,136,641 | $1,204,856 |
| 7/23 | $1,289,513 | $1,137,771 | $1,209,012 |
| 8/23 | $1,279,622 | $1,130,920 | $1,199,619 |
| 9/23 | $1,244,719 | $1,103,953 | $1,167,596 |
| 10/23 | $1,219,735 | $1,087,351 | $1,145,732 |
| 11/23 | $1,292,972 | $1,136,287 | $1,214,225 |
| 12/23 | $1,356,973 | $1,179,403 | $1,266,867 |
| 1/24 | $1,358,242 | $1,176,580 | $1,264,712 |
| 2/24 | $1,340,411 | $1,162,474 | $1,245,701 |
| 3/24 | $1,358,333 | $1,173,887 | $1,261,807 |
| 4/24 | $1,324,917 | $1,146,456 | $1,229,697 |
| 5/24 | $1,350,744 | $1,165,459 | $1,252,731 |
| 6/24 | $1,361,076 | $1,176,114 | $1,260,698 |
| 7/24 | $1,392,438 | $1,202,809 | $1,290,748 |
| 8/24 | $1,415,319 | $1,220,515 | $1,311,047 |
| 9/24 | $1,439,634 | $1,237,255 | $1,334,291 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 15.66% | 1.39% | 3.71% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 2.15% |
| Bloomberg U.S. Corporate Index | 14.28% | 1.16% | 2.93% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $124,472,852 |
| # of Portfolio Holdings | 242 |
| Portfolio Turnover Rate | 183% |
| Total Advisory Fees Paid | $113,800 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Sovereign | 0.2% |
| Commercial Mortgage-Backed Securities | 1.1% |
| Investment Companies | 1.3% |
| Short-Term Investments | 5.4% |
| Corporate Bonds | 92.0% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 3.3% |
| Not Rated | 1.3% |
| B | 0.5% |
| BB | 1.3% |
| BBB | 45.4% |
| A | 34.8% |
| AA | 10.3% |
| AAA | 3.1% |
| Footnote | Description |
Footnotea | Security ratings disclosed with the exception for those labeled "Not Rated" is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Corporate Bond Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Corporate Bond Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class L | $100 | 0.93% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Bloomberg U.S. Corporate Index:
↑ The portfolio’s overall investment grade credit positioning, which benefited from spreads tightening to historical levels.
↑ Overweight to high yield corporate bonds benefited as spreads tightened, particularly the overweight to financial institutions and industrials.
↑ Overweight to investment grade financial institutions, specifically banking and insurance.
↑ Overweight to certain subsectors and security selection within investment grade industrials, specifically energy and consumer cyclical.
↑ Overweight to investment grade utilities, specifically the electric sector.
↑ The portfolio’s duration exposure contributed slightly as interest rates fell during the period despite the volatility.
↓ Underweight to investment grade communications, as spreads tightened.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class L | Bloomberg U.S. Universal Index | Bloomberg U.S. Corporate Index |
|---|
| 9/14 | $10,000 | $10,000 | $10,000 |
| 10/14 | $10,066 | $10,098 | $10,102 |
| 11/14 | $10,120 | $10,152 | $10,170 |
| 12/14 | $10,141 | $10,134 | $10,177 |
| 1/15 | $10,387 | $10,327 | $10,485 |
| 2/15 | $10,332 | $10,267 | $10,379 |
| 3/15 | $10,341 | $10,309 | $10,412 |
| 4/15 | $10,262 | $10,297 | $10,339 |
| 5/15 | $10,198 | $10,279 | $10,272 |
| 6/15 | $10,015 | $10,164 | $10,083 |
| 7/15 | $10,037 | $10,224 | $10,151 |
| 8/15 | $9,935 | $10,194 | $10,091 |
| 9/15 | $9,935 | $10,233 | $10,166 |
| 10/15 | $10,048 | $10,266 | $10,209 |
| 11/15 | $10,001 | $10,229 | $10,186 |
| 12/15 | $9,874 | $10,178 | $10,107 |
| 1/16 | $9,800 | $10,290 | $10,143 |
| 2/16 | $9,856 | $10,363 | $10,225 |
| 3/16 | $10,742 | $10,490 | $10,508 |
| 4/16 | $10,932 | $10,562 | $10,652 |
| 5/16 | $10,914 | $10,570 | $10,644 |
| 6/16 | $11,129 | $10,756 | $10,884 |
| 7/16 | $11,309 | $10,844 | $11,043 |
| 8/16 | $11,347 | $10,856 | $11,064 |
| 9/16 | $11,630 | $10,859 | $11,037 |
| 10/16 | $11,526 | $10,787 | $10,947 |
| 11/16 | $11,222 | $10,544 | $10,653 |
| 12/16 | $11,290 | $10,576 | $10,725 |
| 1/17 | $11,367 | $10,613 | $10,758 |
| 2/17 | $11,491 | $10,695 | $10,881 |
| 3/17 | $11,453 | $10,691 | $10,856 |
| 4/17 | $11,569 | $10,780 | $10,972 |
| 5/17 | $11,684 | $10,863 | $11,098 |
| 6/17 | $11,742 | $10,854 | $11,132 |
| 7/17 | $11,829 | $10,908 | $11,213 |
| 8/17 | $11,906 | $11,002 | $11,300 |
| 9/17 | $11,887 | $10,963 | $11,281 |
| 10/17 | $11,914 | $10,976 | $11,326 |
| 11/17 | $11,885 | $10,960 | $11,310 |
| 12/17 | $11,990 | $11,008 | $11,413 |
| 1/18 | $11,882 | $10,902 | $11,304 |
| 2/18 | $11,677 | $10,799 | $11,120 |
| 3/18 | $11,677 | $10,853 | $11,148 |
| 4/18 | $11,557 | $10,781 | $11,045 |
| 5/18 | $11,597 | $10,840 | $11,104 |
| 6/18 | $11,508 | $10,824 | $11,040 |
| 7/18 | $11,636 | $10,847 | $11,132 |
| 8/18 | $11,655 | $10,900 | $11,186 |
| 9/18 | $11,626 | $10,853 | $11,147 |
| 10/18 | $11,414 | $10,763 | $10,984 |
| 11/18 | $11,354 | $10,811 | $10,966 |
| 12/18 | $11,444 | $10,980 | $11,127 |
| 1/19 | $11,744 | $11,132 | $11,388 |
| 2/19 | $11,793 | $11,144 | $11,413 |
| 3/19 | $12,083 | $11,345 | $11,699 |
| 4/19 | $12,185 | $11,361 | $11,763 |
| 5/19 | $12,315 | $11,535 | $11,931 |
| 6/19 | $12,637 | $11,698 | $12,223 |
| 7/19 | $12,729 | $11,733 | $12,291 |
| 8/19 | $13,099 | $11,998 | $12,678 |
| 9/19 | $13,000 | $11,946 | $12,595 |
| 10/19 | $13,073 | $11,985 | $12,672 |
| 11/19 | $13,107 | $11,982 | $12,704 |
| 12/19 | $13,155 | $12,000 | $12,744 |
| 1/20 | $13,442 | $12,216 | $13,043 |
| 2/20 | $13,579 | $12,399 | $13,218 |
| 3/20 | $12,513 | $12,156 | $12,281 |
| 4/20 | $13,192 | $12,400 | $12,925 |
| 5/20 | $13,448 | $12,516 | $13,127 |
| 6/20 | $13,757 | $12,620 | $13,385 |
| 7/20 | $14,188 | $12,842 | $13,820 |
| 8/20 | $14,007 | $12,768 | $13,629 |
| 9/20 | $13,970 | $12,745 | $13,590 |
| 10/20 | $13,933 | $12,699 | $13,566 |
| 11/20 | $14,353 | $12,865 | $13,944 |
| 12/20 | $14,413 | $12,909 | $14,004 |
| 1/21 | $14,198 | $12,828 | $13,825 |
| 2/21 | $13,944 | $12,663 | $13,587 |
| 3/21 | $13,690 | $12,515 | $13,353 |
| 4/21 | $13,814 | $12,621 | $13,501 |
| 5/21 | $13,873 | $12,669 | $13,605 |
| 6/21 | $14,126 | $12,761 | $13,827 |
| 7/21 | $14,304 | $12,889 | $14,016 |
| 8/21 | $14,242 | $12,881 | $13,974 |
| 9/21 | $14,081 | $12,771 | $13,827 |
| 10/21 | $14,104 | $12,760 | $13,861 |
| 11/21 | $14,074 | $12,776 | $13,870 |
| 12/21 | $14,043 | $12,767 | $13,858 |
| 1/22 | $13,595 | $12,487 | $13,392 |
| 2/22 | $13,295 | $12,317 | $13,124 |
| 3/22 | $12,965 | $11,986 | $12,793 |
| 4/22 | $12,239 | $11,539 | $12,094 |
| 5/22 | $12,291 | $11,603 | $12,207 |
| 6/22 | $11,894 | $11,371 | $11,865 |
| 7/22 | $12,276 | $11,657 | $12,249 |
| 8/22 | $11,922 | $11,354 | $11,890 |
| 9/22 | $11,289 | $10,865 | $11,265 |
| 10/22 | $11,143 | $10,745 | $11,148 |
| 11/22 | $11,697 | $11,146 | $11,726 |
| 12/22 | $11,667 | $11,108 | $11,674 |
| 1/23 | $12,160 | $11,453 | $12,142 |
| 2/23 | $11,812 | $11,171 | $11,756 |
| 3/23 | $12,089 | $11,434 | $12,083 |
| 4/23 | $12,182 | $11,503 | $12,176 |
| 5/23 | $12,020 | $11,384 | $11,999 |
| 6/23 | $12,081 | $11,366 | $12,049 |
| 7/23 | $12,143 | $11,378 | $12,090 |
| 8/23 | $12,041 | $11,309 | $11,996 |
| 9/23 | $11,704 | $11,040 | $11,676 |
| 10/23 | $11,461 | $10,874 | $11,457 |
| 11/23 | $12,153 | $11,363 | $12,142 |
| 12/23 | $12,737 | $11,794 | $12,669 |
| 1/24 | $12,737 | $11,766 | $12,647 |
| 2/24 | $12,561 | $11,625 | $12,457 |
| 3/24 | $12,733 | $11,739 | $12,618 |
| 4/24 | $12,400 | $11,465 | $12,297 |
| 5/24 | $12,633 | $11,655 | $12,527 |
| 6/24 | $12,733 | $11,761 | $12,607 |
| 7/24 | $13,018 | $12,028 | $12,907 |
| 8/24 | $13,210 | $12,205 | $13,110 |
| 9/24 | $13,427 | $12,373 | $13,343 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class L | 14.71% | 0.65% | 2.99% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 2.15% |
| Bloomberg U.S. Corporate Index | 14.28% | 1.16% | 2.93% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $124,472,852 |
| # of Portfolio Holdings | 242 |
| Portfolio Turnover Rate | 183% |
| Total Advisory Fees Paid | $113,800 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Sovereign | 0.2% |
| Commercial Mortgage-Backed Securities | 1.1% |
| Investment Companies | 1.3% |
| Short-Term Investments | 5.4% |
| Corporate Bonds | 92.0% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 3.3% |
| Not Rated | 1.3% |
| B | 0.5% |
| BB | 1.3% |
| BBB | 45.4% |
| A | 34.8% |
| AA | 10.3% |
| AAA | 3.1% |
| Footnote | Description |
Footnotea | Security ratings disclosed with the exception for those labeled "Not Rated" is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Discovery Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Discovery Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $118 | 0.98% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Russell Midcap® Growth Index:
↑ Stock selection in consumer discretionary, led by a position in a leading seller of used cars online in the United States, which was the largest positive contributor in the portfolio.
↑ Stock selection in financials, led by a position in a payments technology services platform.
↑ Stock selection and an average overweight in communication services, led by a holding in a video game platform.
↓ Stock selection in health care, where a position in an underperforming health care services provider was the largest detractor across the portfolio.
↓ Stock selection and an average underweight in industrials, where exposure to the operator of a Southeast Asian super app (an integrated app platform combining multiple services) was the main detractor; the position was sold during the period.
↓ No exposure to utilities.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class A with maximum sales charge | Russell 3000® Index | Russell Midcap® Growth Index |
|---|
| 9/14 | $9,474 | $10,000 | $10,000 |
| 10/14 | $9,871 | $10,275 | $10,276 |
| 11/14 | $9,909 | $10,524 | $10,614 |
| 12/14 | $9,721 | $10,524 | $10,584 |
| 1/15 | $9,612 | $10,231 | $10,405 |
| 2/15 | $10,213 | $10,824 | $11,122 |
| 3/15 | $10,003 | $10,713 | $11,153 |
| 4/15 | $10,065 | $10,762 | $11,075 |
| 5/15 | $9,979 | $10,911 | $11,206 |
| 6/15 | $9,945 | $10,728 | $11,026 |
| 7/15 | $10,052 | $10,908 | $11,204 |
| 8/15 | $9,281 | $10,249 | $10,553 |
| 9/15 | $8,867 | $9,951 | $10,145 |
| 10/15 | $8,904 | $10,736 | $10,783 |
| 11/15 | $9,154 | $10,796 | $10,807 |
| 12/15 | $9,126 | $10,574 | $10,563 |
| 1/16 | $8,079 | $9,978 | $9,763 |
| 2/16 | $7,729 | $9,975 | $9,916 |
| 3/16 | $8,248 | $10,677 | $10,624 |
| 4/16 | $8,272 | $10,743 | $10,617 |
| 5/16 | $8,346 | $10,935 | $10,791 |
| 6/16 | $8,429 | $10,958 | $10,790 |
| 7/16 | $8,963 | $11,393 | $11,324 |
| 8/16 | $8,966 | $11,422 | $11,291 |
| 9/16 | $8,856 | $11,440 | $11,285 |
| 10/16 | $8,328 | $11,192 | $10,827 |
| 11/16 | $8,189 | $11,693 | $11,297 |
| 12/16 | $7,881 | $11,921 | $11,337 |
| 1/17 | $8,499 | $12,145 | $11,715 |
| 2/17 | $8,612 | $12,597 | $12,052 |
| 3/17 | $8,859 | $12,606 | $12,118 |
| 4/17 | $9,246 | $12,739 | $12,298 |
| 5/17 | $9,962 | $12,870 | $12,592 |
| 6/17 | $10,023 | $12,986 | $12,629 |
| 7/17 | $10,096 | $13,231 | $12,840 |
| 8/17 | $10,363 | $13,256 | $12,931 |
| 9/17 | $10,260 | $13,579 | $13,296 |
| 10/17 | $10,564 | $13,876 | $13,668 |
| 11/17 | $10,940 | $14,297 | $14,125 |
| 12/17 | $10,946 | $14,440 | $14,201 |
| 1/18 | $11,760 | $15,201 | $15,005 |
| 2/18 | $11,905 | $14,641 | $14,534 |
| 3/18 | $11,852 | $14,347 | $14,510 |
| 4/18 | $11,698 | $14,402 | $14,373 |
| 5/18 | $12,979 | $14,808 | $14,911 |
| 6/18 | $13,378 | $14,905 | $14,968 |
| 7/18 | $13,079 | $15,400 | $15,289 |
| 8/18 | $14,889 | $15,940 | $16,171 |
| 9/18 | $15,119 | $15,967 | $16,102 |
| 10/18 | $13,417 | $14,791 | $14,507 |
| 11/18 | $13,547 | $15,087 | $14,877 |
| 12/18 | $12,238 | $13,683 | $13,527 |
| 1/19 | $14,031 | $14,858 | $15,081 |
| 2/19 | $15,236 | $15,380 | $15,965 |
| 3/19 | $15,471 | $15,605 | $16,181 |
| 4/19 | $16,373 | $16,228 | $16,908 |
| 5/19 | $16,324 | $15,178 | $15,936 |
| 6/19 | $17,441 | $16,244 | $17,055 |
| 7/19 | $18,185 | $16,485 | $17,453 |
| 8/19 | $17,695 | $16,149 | $17,135 |
| 9/19 | $15,785 | $16,433 | $16,940 |
| 10/19 | $15,814 | $16,786 | $17,254 |
| 11/19 | $17,392 | $17,424 | $18,112 |
| 12/19 | $17,072 | $17,928 | $18,324 |
| 1/20 | $18,296 | $17,908 | $18,496 |
| 2/20 | $18,138 | $16,442 | $17,220 |
| 3/20 | $16,006 | $14,181 | $14,652 |
| 4/20 | $19,815 | $16,059 | $16,947 |
| 5/20 | $23,885 | $16,918 | $18,649 |
| 6/20 | $27,161 | $17,304 | $19,086 |
| 7/20 | $30,766 | $18,287 | $20,611 |
| 8/20 | $32,614 | $19,612 | $21,172 |
| 9/20 | $33,917 | $18,898 | $20,875 |
| 10/20 | $33,464 | $18,490 | $20,901 |
| 11/20 | $39,823 | $20,739 | $23,708 |
| 12/20 | $41,290 | $21,672 | $24,845 |
| 1/21 | $44,842 | $21,576 | $24,763 |
| 2/21 | $45,901 | $22,250 | $25,185 |
| 3/21 | $40,367 | $23,048 | $24,705 |
| 4/21 | $41,501 | $24,236 | $26,093 |
| 5/21 | $39,246 | $24,346 | $25,694 |
| 6/21 | $44,293 | $24,947 | $27,440 |
| 7/21 | $41,863 | $25,369 | $27,723 |
| 8/21 | $42,199 | $26,092 | $28,618 |
| 9/21 | $40,031 | $24,921 | $27,232 |
| 10/21 | $44,517 | $26,607 | $29,141 |
| 11/21 | $41,352 | $26,202 | $27,910 |
| 12/21 | $36,256 | $27,234 | $28,008 |
| 1/22 | $27,965 | $25,631 | $24,394 |
| 2/22 | $27,437 | $24,986 | $24,097 |
| 3/22 | $25,967 | $25,796 | $24,484 |
| 4/22 | $20,031 | $23,481 | $21,727 |
| 5/22 | $16,357 | $23,450 | $20,886 |
| 6/22 | $15,132 | $21,488 | $19,325 |
| 7/22 | $17,318 | $23,504 | $21,690 |
| 8/22 | $17,450 | $22,627 | $20,980 |
| 9/22 | $15,471 | $20,528 | $19,199 |
| 10/22 | $15,584 | $22,212 | $20,708 |
| 11/22 | $14,679 | $23,371 | $21,834 |
| 12/22 | $13,228 | $22,003 | $20,524 |
| 1/23 | $15,509 | $23,518 | $22,315 |
| 2/23 | $14,924 | $22,968 | $22,095 |
| 3/23 | $15,452 | $23,583 | $22,399 |
| 4/23 | $14,397 | $23,834 | $22,074 |
| 5/23 | $15,622 | $23,927 | $22,088 |
| 6/23 | $17,167 | $25,560 | $23,795 |
| 7/23 | $18,674 | $26,477 | $24,515 |
| 8/23 | $16,752 | $25,966 | $23,707 |
| 9/23 | $15,848 | $24,729 | $22,552 |
| 10/23 | $14,435 | $24,073 | $21,401 |
| 11/23 | $16,526 | $26,318 | $24,012 |
| 12/23 | $19,353 | $27,714 | $25,833 |
| 1/24 | $17,732 | $28,021 | $25,694 |
| 2/24 | $20,088 | $29,538 | $27,625 |
| 3/24 | $20,841 | $30,491 | $28,286 |
| 4/24 | $18,693 | $29,149 | $26,643 |
| 5/24 | $18,750 | $30,526 | $26,927 |
| 6/24 | $19,428 | $31,471 | $27,377 |
| 7/24 | $19,843 | $32,056 | $27,543 |
| 8/24 | $21,124 | $32,754 | $28,227 |
| 9/24 | $22,368 | $33,432 | $29,168 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class A | 41.14% | 7.22% | 8.97% |
| Class A with maximum 5.25% sales charge | 33.67% | 6.07% | 8.38% |
Russell 3000®IndexFootnote Reference1 | 35.19% | 15.26% | 12.83% |
Russell Midcap® Growth Index | 29.34% | 11.48% | 11.30% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $898,865,646 |
| # of Portfolio Holdings | 41 |
| Portfolio Turnover Rate | 46% |
| Total Advisory Fees Paid | $4,544,247 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Sector Allocation (% of total investments)
| Value | Value |
|---|
| Industrials | 0.2% |
| Consumer Staples | 1.5% |
| Short-Term Investments | 1.9% |
| Communication Services | 12.9% |
| Health Care | 12.9% |
| Financials | 13.2% |
| Consumer Discretionary | 21.5% |
| Information Technology | 35.9% |
Top Ten Holdings (% of total investments)Footnote Referencea
| DoorDash, Inc., Class A | 8.5% |
| Cloudflare, Inc., Class A | 7.5% |
| Trade Desk, Inc., Class A | 7.4% |
| Affirm Holdings, Inc. | 6.8% |
| Samsara, Inc., Class A | 6.8% |
| ROBLOX Corp., Class A | 5.5% |
| Global-e Online Ltd. | 5.3% |
| Carvana Co. | 4.9% |
| Royalty Pharma PLC, Class A | 4.5% |
| MicroStrategy, Inc., Class A | 4.3% |
| Total | 61.5% |
| Footnote | Description |
Footnotea | Excluding cash equivalents |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Discovery Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Discovery Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $211 | 1.76% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Russell Midcap® Growth Index:
↑ Stock selection in consumer discretionary, led by a position in a leading seller of used cars online in the United States, which was the largest positive contributor in the portfolio.
↑ Stock selection in financials, led by a position in a payments technology services platform.
↑ Stock selection and an average overweight in communication services, led by a holding in a video game platform.
↓ Stock selection in health care, where a position in an underperforming health care services provider was the largest detractor across the portfolio.
↓ Stock selection and an average underweight in industrials, where exposure to the operator of a Southeast Asian super app (an integrated app platform combining multiple services) was the main detractor; the position was sold during the period.
↓ No exposure to utilities.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class C | Russell 3000® Index | Russell Midcap® Growth Index |
|---|
| 5/17 | $10,000 | $10,000 | $10,000 |
| 6/17 | $10,052 | $10,000 | $10,000 |
| 7/17 | $10,114 | $10,280 | $10,197 |
| 8/17 | $10,377 | $10,300 | $10,269 |
| 9/17 | $10,264 | $10,552 | $10,560 |
| 10/17 | $10,558 | $10,782 | $10,855 |
| 11/17 | $10,931 | $11,109 | $11,218 |
| 12/17 | $10,924 | $11,220 | $11,278 |
| 1/18 | $11,727 | $11,812 | $11,916 |
| 2/18 | $11,858 | $11,376 | $11,542 |
| 3/18 | $11,804 | $11,148 | $11,523 |
| 4/18 | $11,642 | $11,190 | $11,415 |
| 5/18 | $12,908 | $11,506 | $11,842 |
| 6/18 | $13,287 | $11,581 | $11,887 |
| 7/18 | $12,986 | $11,966 | $12,142 |
| 8/18 | $14,769 | $12,386 | $12,842 |
| 9/18 | $14,993 | $12,406 | $12,788 |
| 10/18 | $13,287 | $11,493 | $11,521 |
| 11/18 | $13,410 | $11,723 | $11,815 |
| 12/18 | $12,107 | $10,632 | $10,742 |
| 1/19 | $13,870 | $11,545 | $11,977 |
| 2/19 | $15,049 | $11,951 | $12,679 |
| 3/19 | $15,267 | $12,125 | $12,850 |
| 4/19 | $16,149 | $12,609 | $13,428 |
| 5/19 | $16,090 | $11,793 | $12,656 |
| 6/19 | $17,179 | $12,622 | $13,544 |
| 7/19 | $17,903 | $12,809 | $13,861 |
| 8/19 | $17,407 | $12,548 | $13,608 |
| 9/19 | $15,525 | $12,768 | $13,453 |
| 10/19 | $15,535 | $13,043 | $13,703 |
| 11/19 | $17,070 | $13,539 | $14,384 |
| 12/19 | $16,746 | $13,930 | $14,553 |
| 1/20 | $17,944 | $13,915 | $14,689 |
| 2/20 | $17,771 | $12,776 | $13,676 |
| 3/20 | $15,675 | $11,019 | $11,636 |
| 4/20 | $19,395 | $12,478 | $13,459 |
| 5/20 | $23,368 | $13,145 | $14,811 |
| 6/20 | $26,547 | $13,446 | $15,158 |
| 7/20 | $30,060 | $14,209 | $16,369 |
| 8/20 | $31,845 | $15,239 | $16,814 |
| 9/20 | $33,100 | $14,684 | $16,578 |
| 10/20 | $32,639 | $14,367 | $16,599 |
| 11/20 | $38,813 | $16,115 | $18,828 |
| 12/20 | $40,220 | $16,840 | $19,732 |
| 1/21 | $43,653 | $16,765 | $19,666 |
| 2/21 | $44,658 | $17,289 | $20,002 |
| 3/21 | $39,254 | $17,908 | $19,620 |
| 4/21 | $40,335 | $18,832 | $20,722 |
| 5/21 | $38,122 | $18,918 | $20,406 |
| 6/21 | $42,992 | $19,384 | $21,792 |
| 7/21 | $40,614 | $19,712 | $22,017 |
| 8/21 | $40,920 | $20,274 | $22,728 |
| 9/21 | $38,796 | $19,364 | $21,627 |
| 10/21 | $43,119 | $20,674 | $23,143 |
| 11/21 | $40,029 | $20,359 | $22,165 |
| 12/21 | $35,085 | $21,161 | $22,243 |
| 1/22 | $27,036 | $19,916 | $19,373 |
| 2/22 | $26,521 | $19,414 | $19,138 |
| 3/22 | $25,078 | $20,044 | $19,445 |
| 4/22 | $19,322 | $18,245 | $17,255 |
| 5/22 | $15,782 | $18,221 | $16,587 |
| 6/22 | $14,576 | $16,696 | $15,347 |
| 7/22 | $16,672 | $18,263 | $17,226 |
| 8/22 | $16,791 | $17,581 | $16,661 |
| 9/22 | $14,873 | $15,951 | $15,247 |
| 10/22 | $14,971 | $17,259 | $16,446 |
| 11/22 | $14,101 | $18,160 | $17,340 |
| 12/22 | $12,697 | $17,097 | $16,300 |
| 1/23 | $14,873 | $18,274 | $17,722 |
| 2/23 | $14,299 | $17,847 | $17,547 |
| 3/23 | $14,793 | $18,324 | $17,789 |
| 4/23 | $13,785 | $18,519 | $17,531 |
| 5/23 | $14,952 | $18,591 | $17,542 |
| 6/23 | $16,415 | $19,861 | $18,898 |
| 7/23 | $17,839 | $20,573 | $19,469 |
| 8/23 | $15,980 | $20,176 | $18,828 |
| 9/23 | $15,130 | $19,215 | $17,910 |
| 10/23 | $13,765 | $18,705 | $16,996 |
| 11/23 | $15,743 | $20,450 | $19,070 |
| 12/23 | $18,432 | $21,534 | $20,516 |
| 1/24 | $16,870 | $21,773 | $20,405 |
| 2/24 | $19,105 | $22,952 | $21,939 |
| 3/24 | $19,797 | $23,692 | $22,464 |
| 4/24 | $17,740 | $22,649 | $21,159 |
| 5/24 | $17,800 | $23,720 | $21,385 |
| 6/24 | $18,432 | $24,454 | $21,742 |
| 7/24 | $18,808 | $24,908 | $21,874 |
| 8/24 | $20,015 | $25,451 | $22,417 |
| 9/24 | $21,182 | $25,977 | $23,164 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | Since 5/31/17 (Inception) |
|---|
| Class C | 40.00% | 6.41% | 10.78% |
| Class C with maximum deferred sales charge | 39.00% | 6.41% | 10.78% |
Russell 3000®IndexFootnote Reference1 | 35.19% | 15.26% | 13.90% |
Russell Midcap® Growth Index | 29.34% | 11.48% | 12.14% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $898,865,646 |
| # of Portfolio Holdings | 41 |
| Portfolio Turnover Rate | 46% |
| Total Advisory Fees Paid | $4,544,247 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Sector Allocation (% of total investments)
| Value | Value |
|---|
| Industrials | 0.2% |
| Consumer Staples | 1.5% |
| Short-Term Investments | 1.9% |
| Communication Services | 12.9% |
| Health Care | 12.9% |
| Financials | 13.2% |
| Consumer Discretionary | 21.5% |
| Information Technology | 35.9% |
Top Ten Holdings (% of total investments)Footnote Referencea
| DoorDash, Inc., Class A | 8.5% |
| Cloudflare, Inc., Class A | 7.5% |
| Trade Desk, Inc., Class A | 7.4% |
| Affirm Holdings, Inc. | 6.8% |
| Samsara, Inc., Class A | 6.8% |
| ROBLOX Corp., Class A | 5.5% |
| Global-e Online Ltd. | 5.3% |
| Carvana Co. | 4.9% |
| Royalty Pharma PLC, Class A | 4.5% |
| MicroStrategy, Inc., Class A | 4.3% |
| Total | 61.5% |
| Footnote | Description |
Footnotea | Excluding cash equivalents |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Discovery Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Discovery Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class I | $87 | 0.72% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Russell Midcap® Growth Index:
↑ Stock selection in consumer discretionary, led by a position in a leading seller of used cars online in the United States, which was the largest positive contributor in the portfolio.
↑ Stock selection in financials, led by a position in a payments technology services platform.
↑ Stock selection and an average overweight in communication services, led by a holding in a video game platform.
↓ Stock selection in health care, where a position in an underperforming health care services provider was the largest detractor across the portfolio.
↓ Stock selection and an average underweight in industrials, where exposure to the operator of a Southeast Asian super app (an integrated app platform combining multiple services) was the main detractor; the position was sold during the period.
↓ No exposure to utilities.
Comparison of the change in value of a $1,000,000 investment for the period indicated.
| Class I | Russell 3000® Index | Russell Midcap® Growth Index |
|---|
| 9/14 | $1,000,000 | $1,000,000 | $1,000,000 |
| 10/14 | $1,041,806 | $1,027,513 | $1,027,611 |
| 11/14 | $1,046,054 | $1,052,414 | $1,061,386 |
| 12/14 | $1,026,390 | $1,052,402 | $1,058,378 |
| 1/15 | $1,015,432 | $1,023,112 | $1,040,546 |
| 2/15 | $1,079,092 | $1,082,351 | $1,112,164 |
| 3/15 | $1,056,916 | $1,071,348 | $1,115,298 |
| 4/15 | $1,063,960 | $1,076,194 | $1,107,469 |
| 5/15 | $1,055,089 | $1,091,079 | $1,120,621 |
| 6/15 | $1,051,697 | $1,072,825 | $1,102,573 |
| 7/15 | $1,063,177 | $1,090,768 | $1,120,440 |
| 8/15 | $981,776 | $1,024,919 | $1,055,252 |
| 9/15 | $938,205 | $995,053 | $1,014,483 |
| 10/15 | $942,118 | $1,073,648 | $1,078,333 |
| 11/15 | $968,731 | $1,079,600 | $1,080,688 |
| 12/15 | $966,264 | $1,057,440 | $1,056,261 |
| 1/16 | $855,589 | $997,774 | $976,302 |
| 2/16 | $818,993 | $997,453 | $991,603 |
| 3/16 | $873,887 | $1,067,679 | $1,062,378 |
| 4/16 | $876,544 | $1,074,296 | $1,061,733 |
| 5/16 | $884,512 | $1,093,516 | $1,079,145 |
| 6/16 | $893,366 | $1,095,764 | $1,078,979 |
| 7/16 | $950,622 | $1,139,252 | $1,132,416 |
| 8/16 | $951,212 | $1,142,158 | $1,129,090 |
| 9/16 | $939,997 | $1,143,953 | $1,128,525 |
| 10/16 | $883,922 | $1,119,203 | $1,082,677 |
| 11/16 | $869,460 | $1,169,290 | $1,129,745 |
| 12/16 | $836,763 | $1,192,107 | $1,133,669 |
| 1/17 | $902,862 | $1,214,544 | $1,171,466 |
| 2/17 | $915,102 | $1,259,715 | $1,205,152 |
| 3/17 | $941,542 | $1,260,572 | $1,211,830 |
| 4/17 | $983,160 | $1,273,934 | $1,229,807 |
| 5/17 | $1,059,541 | $1,286,971 | $1,259,172 |
| 6/17 | $1,065,906 | $1,298,586 | $1,262,907 |
| 7/17 | $1,073,740 | $1,323,070 | $1,284,006 |
| 8/17 | $1,102,627 | $1,325,620 | $1,293,066 |
| 9/17 | $1,091,856 | $1,357,949 | $1,329,627 |
| 10/17 | $1,124,660 | $1,387,582 | $1,366,833 |
| 11/17 | $1,165,299 | $1,429,716 | $1,412,518 |
| 12/17 | $1,166,026 | $1,444,006 | $1,420,125 |
| 1/18 | $1,253,322 | $1,520,120 | $1,500,473 |
| 2/18 | $1,268,564 | $1,464,089 | $1,453,375 |
| 3/18 | $1,263,714 | $1,434,699 | $1,451,004 |
| 4/18 | $1,247,779 | $1,440,152 | $1,437,300 |
| 5/18 | $1,384,266 | $1,480,808 | $1,491,058 |
| 6/18 | $1,427,221 | $1,490,492 | $1,496,818 |
| 7/18 | $1,396,044 | $1,539,955 | $1,528,948 |
| 8/18 | $1,588,649 | $1,594,035 | $1,617,075 |
| 9/18 | $1,614,284 | $1,596,674 | $1,610,196 |
| 10/18 | $1,432,763 | $1,479,106 | $1,450,749 |
| 11/18 | $1,446,620 | $1,508,731 | $1,487,651 |
| 12/18 | $1,307,635 | $1,368,314 | $1,352,660 |
| 1/19 | $1,499,410 | $1,485,762 | $1,508,096 |
| 2/19 | $1,628,391 | $1,538,015 | $1,596,525 |
| 3/19 | $1,653,848 | $1,560,473 | $1,618,065 |
| 4/19 | $1,751,433 | $1,622,785 | $1,690,829 |
| 5/19 | $1,746,342 | $1,517,772 | $1,593,556 |
| 6/19 | $1,865,140 | $1,624,375 | $1,705,470 |
| 7/19 | $1,946,602 | $1,648,522 | $1,745,289 |
| 8/19 | $1,893,143 | $1,614,916 | $1,713,499 |
| 9/19 | $1,690,336 | $1,643,259 | $1,693,984 |
| 10/19 | $1,693,731 | $1,678,633 | $1,725,387 |
| 11/19 | $1,861,746 | $1,742,441 | $1,811,227 |
| 12/19 | $1,828,099 | $1,792,752 | $1,832,444 |
| 1/20 | $1,960,584 | $1,790,794 | $1,849,591 |
| 2/20 | $1,943,428 | $1,644,176 | $1,722,049 |
| 3/20 | $1,715,630 | $1,418,072 | $1,465,223 |
| 4/20 | $2,124,522 | $1,605,882 | $1,694,665 |
| 5/20 | $2,562,008 | $1,691,762 | $1,864,902 |
| 6/20 | $2,912,759 | $1,730,439 | $1,908,613 |
| 7/20 | $3,300,682 | $1,828,699 | $2,061,093 |
| 8/20 | $3,499,886 | $1,961,178 | $2,117,165 |
| 9/20 | $3,639,996 | $1,889,770 | $2,087,518 |
| 10/20 | $3,592,339 | $1,848,982 | $2,090,077 |
| 11/20 | $4,275,732 | $2,073,917 | $2,370,814 |
| 12/20 | $4,434,285 | $2,167,218 | $2,484,547 |
| 1/21 | $4,816,887 | $2,157,579 | $2,476,250 |
| 2/21 | $4,931,770 | $2,225,019 | $2,518,539 |
| 3/21 | $4,337,865 | $2,304,770 | $2,470,503 |
| 4/21 | $4,461,980 | $2,423,579 | $2,609,313 |
| 5/21 | $4,219,905 | $2,434,642 | $2,569,438 |
| 6/21 | $4,762,523 | $2,494,678 | $2,744,040 |
| 7/21 | $4,503,010 | $2,536,865 | $2,772,303 |
| 8/21 | $4,540,962 | $2,609,210 | $2,861,787 |
| 9/21 | $4,308,119 | $2,492,141 | $2,723,187 |
| 10/21 | $4,792,269 | $2,660,670 | $2,914,123 |
| 11/21 | $4,452,748 | $2,620,172 | $2,790,996 |
| 12/21 | $3,905,574 | $2,723,350 | $2,800,785 |
| 1/22 | $3,012,911 | $2,563,119 | $2,439,360 |
| 2/22 | $2,956,168 | $2,498,556 | $2,409,748 |
| 3/22 | $2,799,779 | $2,579,600 | $2,448,437 |
| 4/22 | $2,158,999 | $2,348,100 | $2,172,744 |
| 5/22 | $1,763,183 | $2,344,952 | $2,088,640 |
| 6/22 | $1,631,705 | $2,148,777 | $1,932,509 |
| 7/22 | $1,866,981 | $2,350,370 | $2,169,002 |
| 8/22 | $1,882,204 | $2,262,656 | $2,097,957 |
| 9/22 | $1,669,072 | $2,052,842 | $1,919,889 |
| 10/22 | $1,681,528 | $2,221,188 | $2,070,778 |
| 11/22 | $1,584,650 | $2,337,125 | $2,183,435 |
| 12/22 | $1,429,645 | $2,200,278 | $2,052,389 |
| 1/23 | $1,674,608 | $2,351,818 | $2,231,486 |
| 2/23 | $1,612,329 | $2,296,849 | $2,209,455 |
| 3/23 | $1,669,072 | $2,358,265 | $2,239,893 |
| 4/23 | $1,555,586 | $2,383,391 | $2,207,448 |
| 5/23 | $1,689,832 | $2,392,664 | $2,208,812 |
| 6/23 | $1,855,909 | $2,556,048 | $2,379,534 |
| 7/23 | $2,019,218 | $2,647,674 | $2,451,536 |
| 8/23 | $1,811,622 | $2,596,564 | $2,370,712 |
| 9/23 | $1,714,743 | $2,472,879 | $2,255,228 |
| 10/23 | $1,561,122 | $2,407,326 | $2,140,147 |
| 11/23 | $1,788,094 | $2,631,805 | $2,401,241 |
| 12/23 | $2,096,720 | $2,771,401 | $2,583,277 |
| 1/24 | $1,920,956 | $2,802,116 | $2,569,360 |
| 2/24 | $2,175,607 | $2,953,796 | $2,762,542 |
| 3/24 | $2,257,261 | $3,049,077 | $2,828,599 |
| 4/24 | $2,024,754 | $2,914,913 | $2,664,326 |
| 5/24 | $2,033,057 | $3,052,634 | $2,692,727 |
| 6/24 | $2,106,408 | $3,147,135 | $2,737,707 |
| 7/24 | $2,152,079 | $3,205,637 | $2,754,299 |
| 8/24 | $2,290,477 | $3,275,420 | $2,822,729 |
| 9/24 | $2,427,490 | $3,343,175 | $2,916,789 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 41.57% | 7.51% | 9.27% |
Russell 3000®IndexFootnote Reference1 | 35.19% | 15.26% | 12.83% |
Russell Midcap® Growth Index | 29.34% | 11.48% | 11.30% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $898,865,646 |
| # of Portfolio Holdings | 41 |
| Portfolio Turnover Rate | 46% |
| Total Advisory Fees Paid | $4,544,247 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Sector Allocation (% of total investments)
| Value | Value |
|---|
| Industrials | 0.2% |
| Consumer Staples | 1.5% |
| Short-Term Investments | 1.9% |
| Communication Services | 12.9% |
| Health Care | 12.9% |
| Financials | 13.2% |
| Consumer Discretionary | 21.5% |
| Information Technology | 35.9% |
Top Ten Holdings (% of total investments)Footnote Referencea
| DoorDash, Inc., Class A | 8.5% |
| Cloudflare, Inc., Class A | 7.5% |
| Trade Desk, Inc., Class A | 7.4% |
| Affirm Holdings, Inc. | 6.8% |
| Samsara, Inc., Class A | 6.8% |
| ROBLOX Corp., Class A | 5.5% |
| Global-e Online Ltd. | 5.3% |
| Carvana Co. | 4.9% |
| Royalty Pharma PLC, Class A | 4.5% |
| MicroStrategy, Inc., Class A | 4.3% |
| Total | 61.5% |
| Footnote | Description |
Footnotea | Excluding cash equivalents |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Discovery Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Discovery Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class L | $182 | 1.51% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Russell Midcap® Growth Index:
↑ Stock selection in consumer discretionary, led by a position in a leading seller of used cars online in the United States, which was the largest positive contributor in the portfolio.
↑ Stock selection in financials, led by a position in a payments technology services platform.
↑ Stock selection and an average overweight in communication services, led by a holding in a video game platform.
↓ Stock selection in health care, where a position in an underperforming health care services provider was the largest detractor across the portfolio.
↓ Stock selection and an average underweight in industrials, where exposure to the operator of a Southeast Asian super app (an integrated app platform combining multiple services) was the main detractor; the position was sold during the period.
↓ No exposure to utilities.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class L | Russell 3000® Index | Russell Midcap® Growth Index |
|---|
| 9/14 | $10,000 | $10,000 | $10,000 |
| 10/14 | $10,412 | $10,275 | $10,276 |
| 11/14 | $10,445 | $10,524 | $10,614 |
| 12/14 | $10,245 | $10,524 | $10,584 |
| 1/15 | $10,125 | $10,231 | $10,405 |
| 2/15 | $10,755 | $10,824 | $11,122 |
| 3/15 | $10,526 | $10,713 | $11,153 |
| 4/15 | $10,590 | $10,762 | $11,075 |
| 5/15 | $10,493 | $10,911 | $11,206 |
| 6/15 | $10,454 | $10,728 | $11,026 |
| 7/15 | $10,563 | $10,908 | $11,204 |
| 8/15 | $9,746 | $10,249 | $10,553 |
| 9/15 | $9,306 | $9,951 | $10,145 |
| 10/15 | $9,342 | $10,736 | $10,783 |
| 11/15 | $9,598 | $10,796 | $10,807 |
| 12/15 | $9,566 | $10,574 | $10,563 |
| 1/16 | $8,464 | $9,978 | $9,763 |
| 2/16 | $8,098 | $9,975 | $9,916 |
| 3/16 | $8,636 | $10,677 | $10,624 |
| 4/16 | $8,655 | $10,743 | $10,617 |
| 5/16 | $8,728 | $10,935 | $10,791 |
| 6/16 | $8,808 | $10,958 | $10,790 |
| 7/16 | $9,362 | $11,393 | $11,324 |
| 8/16 | $9,359 | $11,422 | $11,291 |
| 9/16 | $9,238 | $11,440 | $11,285 |
| 10/16 | $8,684 | $11,192 | $10,827 |
| 11/16 | $8,534 | $11,693 | $11,297 |
| 12/16 | $8,209 | $11,921 | $11,337 |
| 1/17 | $8,848 | $12,145 | $11,715 |
| 2/17 | $8,961 | $12,597 | $12,052 |
| 3/17 | $9,210 | $12,606 | $12,118 |
| 4/17 | $9,612 | $12,739 | $12,298 |
| 5/17 | $10,353 | $12,870 | $12,592 |
| 6/17 | $10,404 | $12,986 | $12,629 |
| 7/17 | $10,472 | $13,231 | $12,840 |
| 8/17 | $10,749 | $13,256 | $12,931 |
| 9/17 | $10,630 | $13,579 | $13,296 |
| 10/17 | $10,941 | $13,876 | $13,668 |
| 11/17 | $11,332 | $14,297 | $14,125 |
| 12/17 | $11,324 | $14,440 | $14,201 |
| 1/18 | $12,167 | $15,201 | $15,005 |
| 2/18 | $12,306 | $14,641 | $14,534 |
| 3/18 | $12,254 | $14,347 | $14,510 |
| 4/18 | $12,089 | $14,402 | $14,373 |
| 5/18 | $13,409 | $14,808 | $14,911 |
| 6/18 | $13,808 | $14,905 | $14,968 |
| 7/18 | $13,504 | $15,400 | $15,289 |
| 8/18 | $15,354 | $15,940 | $16,171 |
| 9/18 | $15,597 | $15,967 | $16,102 |
| 10/18 | $13,825 | $14,791 | $14,507 |
| 11/18 | $13,956 | $15,087 | $14,877 |
| 12/18 | $12,613 | $13,683 | $13,527 |
| 1/19 | $14,449 | $14,858 | $15,081 |
| 2/19 | $15,681 | $15,380 | $15,965 |
| 3/19 | $15,920 | $15,605 | $16,181 |
| 4/19 | $16,844 | $16,228 | $16,908 |
| 5/19 | $16,775 | $15,178 | $15,936 |
| 6/19 | $17,916 | $16,244 | $17,055 |
| 7/19 | $18,680 | $16,485 | $17,453 |
| 8/19 | $18,155 | $16,149 | $17,135 |
| 9/19 | $16,205 | $16,433 | $16,940 |
| 10/19 | $16,217 | $16,786 | $17,254 |
| 11/19 | $17,824 | $17,424 | $18,112 |
| 12/19 | $17,498 | $17,928 | $18,324 |
| 1/20 | $18,738 | $17,908 | $18,496 |
| 2/20 | $18,562 | $16,442 | $17,220 |
| 3/20 | $16,379 | $14,181 | $14,652 |
| 4/20 | $20,274 | $16,059 | $16,947 |
| 5/20 | $24,440 | $16,918 | $18,649 |
| 6/20 | $27,770 | $17,304 | $19,086 |
| 7/20 | $31,436 | $18,287 | $20,611 |
| 8/20 | $33,310 | $19,612 | $21,172 |
| 9/20 | $34,631 | $18,898 | $20,875 |
| 10/20 | $34,146 | $18,490 | $20,901 |
| 11/20 | $40,616 | $20,739 | $23,708 |
| 12/20 | $42,103 | $21,672 | $24,845 |
| 1/21 | $45,704 | $21,576 | $24,763 |
| 2/21 | $46,774 | $22,250 | $25,185 |
| 3/21 | $41,108 | $23,048 | $24,705 |
| 4/21 | $42,253 | $24,236 | $26,093 |
| 5/21 | $39,948 | $24,346 | $25,694 |
| 6/21 | $45,056 | $24,947 | $27,440 |
| 7/21 | $42,570 | $25,369 | $27,723 |
| 8/21 | $42,916 | $26,092 | $28,618 |
| 9/21 | $40,686 | $24,921 | $27,232 |
| 10/21 | $45,222 | $26,607 | $29,141 |
| 11/21 | $41,997 | $26,202 | $27,910 |
| 12/21 | $36,814 | $27,234 | $28,008 |
| 1/22 | $28,381 | $25,631 | $24,394 |
| 2/22 | $27,825 | $24,986 | $24,097 |
| 3/22 | $26,335 | $25,796 | $24,484 |
| 4/22 | $20,301 | $23,481 | $21,727 |
| 5/22 | $16,564 | $23,450 | $20,886 |
| 6/22 | $15,327 | $21,488 | $19,325 |
| 7/22 | $17,523 | $23,504 | $21,690 |
| 8/22 | $17,649 | $22,627 | $20,980 |
| 9/22 | $15,655 | $20,528 | $19,199 |
| 10/22 | $15,756 | $22,212 | $20,708 |
| 11/22 | $14,822 | $23,371 | $21,834 |
| 12/22 | $13,357 | $22,003 | $20,524 |
| 1/23 | $15,655 | $23,518 | $22,315 |
| 2/23 | $15,049 | $22,968 | $22,095 |
| 3/23 | $15,579 | $23,583 | $22,399 |
| 4/23 | $14,519 | $23,834 | $22,074 |
| 5/23 | $15,756 | $23,927 | $22,088 |
| 6/23 | $17,296 | $25,560 | $23,795 |
| 7/23 | $18,786 | $26,477 | $24,515 |
| 8/23 | $16,842 | $25,966 | $23,707 |
| 9/23 | $15,933 | $24,729 | $22,552 |
| 10/23 | $14,493 | $24,073 | $21,401 |
| 11/23 | $16,614 | $26,318 | $24,012 |
| 12/23 | $19,442 | $27,714 | $25,833 |
| 1/24 | $17,801 | $28,021 | $25,694 |
| 2/24 | $20,149 | $29,538 | $27,625 |
| 3/24 | $20,907 | $30,491 | $28,286 |
| 4/24 | $18,735 | $29,149 | $26,643 |
| 5/24 | $18,786 | $30,526 | $26,927 |
| 6/24 | $19,467 | $31,471 | $27,377 |
| 7/24 | $19,871 | $32,056 | $27,543 |
| 8/24 | $21,134 | $32,754 | $28,227 |
| 9/24 | $22,396 | $33,432 | $29,168 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class L | 40.57% | 6.69% | 8.40% |
Russell 3000®IndexFootnote Reference1 | 35.19% | 15.26% | 12.83% |
Russell Midcap® Growth Index | 29.34% | 11.48% | 11.30% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $898,865,646 |
| # of Portfolio Holdings | 41 |
| Portfolio Turnover Rate | 46% |
| Total Advisory Fees Paid | $4,544,247 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Sector Allocation (% of total investments)
| Value | Value |
|---|
| Industrials | 0.2% |
| Consumer Staples | 1.5% |
| Short-Term Investments | 1.9% |
| Communication Services | 12.9% |
| Health Care | 12.9% |
| Financials | 13.2% |
| Consumer Discretionary | 21.5% |
| Information Technology | 35.9% |
Top Ten Holdings (% of total investments)Footnote Referencea
| DoorDash, Inc., Class A | 8.5% |
| Cloudflare, Inc., Class A | 7.5% |
| Trade Desk, Inc., Class A | 7.4% |
| Affirm Holdings, Inc. | 6.8% |
| Samsara, Inc., Class A | 6.8% |
| ROBLOX Corp., Class A | 5.5% |
| Global-e Online Ltd. | 5.3% |
| Carvana Co. | 4.9% |
| Royalty Pharma PLC, Class A | 4.5% |
| MicroStrategy, Inc., Class A | 4.3% |
| Total | 61.5% |
| Footnote | Description |
Footnotea | Excluding cash equivalents |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Discovery Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Discovery Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $74 | 0.61% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Russell Midcap® Growth Index:
↑ Stock selection in consumer discretionary, led by a position in a leading seller of used cars online in the United States, which was the largest positive contributor in the portfolio.
↑ Stock selection in financials, led by a position in a payments technology services platform.
↑ Stock selection and an average overweight in communication services, led by a holding in a video game platform.
↓ Stock selection in health care, where a position in an underperforming health care services provider was the largest detractor across the portfolio.
↓ Stock selection and an average underweight in industrials, where exposure to the operator of a Southeast Asian super app (an integrated app platform combining multiple services) was the main detractor; the position was sold during the period.
↓ No exposure to utilities.
Comparison of the change in value of a $5,000,000 investment for the period indicated.
| Class R6 | Russell 3000® Index | Russell Midcap® Growth Index |
|---|
| 9/14 | $5,000,000 | $5,000,000 | $5,000,000 |
| 10/14 | $5,210,938 | $5,137,566 | $5,138,057 |
| 11/14 | $5,232,143 | $5,262,069 | $5,306,931 |
| 12/14 | $5,134,494 | $5,262,010 | $5,291,890 |
| 1/15 | $5,079,719 | $5,115,560 | $5,202,729 |
| 2/15 | $5,399,239 | $5,411,756 | $5,560,819 |
| 3/15 | $5,288,385 | $5,356,740 | $5,576,492 |
| 4/15 | $5,324,902 | $5,380,970 | $5,537,347 |
| 5/15 | $5,280,560 | $5,455,396 | $5,603,105 |
| 6/15 | $5,263,606 | $5,364,125 | $5,512,863 |
| 7/15 | $5,322,294 | $5,453,842 | $5,602,199 |
| 8/15 | $4,915,395 | $5,124,596 | $5,276,258 |
| 9/15 | $4,698,903 | $4,975,266 | $5,072,415 |
| 10/15 | $4,719,770 | $5,368,239 | $5,391,663 |
| 11/15 | $4,852,795 | $5,397,998 | $5,403,438 |
| 12/15 | $4,840,474 | $5,287,202 | $5,281,303 |
| 1/16 | $4,287,403 | $4,988,870 | $4,881,508 |
| 2/16 | $4,104,521 | $4,987,263 | $4,958,017 |
| 3/16 | $4,380,319 | $5,338,397 | $5,311,888 |
| 4/16 | $4,393,593 | $5,371,482 | $5,308,663 |
| 5/16 | $4,434,888 | $5,467,580 | $5,395,723 |
| 6/16 | $4,480,609 | $5,478,822 | $5,394,896 |
| 7/16 | $4,765,256 | $5,696,260 | $5,662,080 |
| 8/16 | $4,768,206 | $5,710,790 | $5,645,449 |
| 9/16 | $4,710,686 | $5,719,767 | $5,642,626 |
| 10/16 | $4,431,939 | $5,596,017 | $5,413,383 |
| 11/16 | $4,359,671 | $5,846,451 | $5,648,723 |
| 12/16 | $4,196,542 | $5,960,533 | $5,668,347 |
| 1/17 | $4,528,555 | $6,072,722 | $5,857,329 |
| 2/17 | $4,589,586 | $6,298,576 | $6,025,759 |
| 3/17 | $4,721,415 | $6,302,861 | $6,059,148 |
| 4/17 | $4,928,923 | $6,369,670 | $6,149,034 |
| 5/17 | $5,312,202 | $6,434,857 | $6,295,862 |
| 6/17 | $5,346,380 | $6,492,928 | $6,314,535 |
| 7/17 | $5,385,440 | $6,615,352 | $6,420,028 |
| 8/17 | $5,529,475 | $6,628,098 | $6,465,331 |
| 9/17 | $5,475,767 | $6,789,743 | $6,648,136 |
| 10/17 | $5,639,332 | $6,937,910 | $6,834,166 |
| 11/17 | $5,841,957 | $7,148,580 | $7,062,589 |
| 12/17 | $5,847,887 | $7,220,030 | $7,100,624 |
| 1/18 | $6,285,531 | $7,600,601 | $7,502,365 |
| 2/18 | $6,361,344 | $7,320,446 | $7,266,873 |
| 3/18 | $6,337,222 | $7,173,495 | $7,255,018 |
| 4/18 | $6,257,963 | $7,200,759 | $7,186,501 |
| 5/18 | $6,943,720 | $7,404,039 | $7,455,290 |
| 6/18 | $7,157,373 | $7,452,460 | $7,484,091 |
| 7/18 | $7,002,302 | $7,699,777 | $7,644,742 |
| 8/18 | $7,970,633 | $7,970,176 | $8,085,376 |
| 9/18 | $8,098,135 | $7,983,369 | $8,050,978 |
| 10/18 | $7,184,941 | $7,395,532 | $7,253,744 |
| 11/18 | $7,257,308 | $7,543,654 | $7,438,253 |
| 12/18 | $6,563,333 | $6,841,571 | $6,763,299 |
| 1/19 | $7,523,821 | $7,428,810 | $7,540,479 |
| 2/19 | $8,172,572 | $7,690,075 | $7,982,625 |
| 3/19 | $8,303,164 | $7,802,364 | $8,090,326 |
| 4/19 | $8,787,621 | $8,113,927 | $8,454,147 |
| 5/19 | $8,766,558 | $7,588,860 | $7,967,782 |
| 6/19 | $9,364,756 | $8,121,876 | $8,527,351 |
| 7/19 | $9,769,172 | $8,242,608 | $8,726,444 |
| 8/19 | $9,503,774 | $8,074,580 | $8,567,493 |
| 9/19 | $8,484,309 | $8,216,296 | $8,469,920 |
| 10/19 | $8,501,160 | $8,393,167 | $8,626,933 |
| 11/19 | $9,352,118 | $8,712,206 | $9,056,136 |
| 12/19 | $9,185,824 | $8,963,761 | $9,162,222 |
| 1/20 | $9,847,354 | $8,953,970 | $9,247,954 |
| 2/20 | $9,762,300 | $8,220,879 | $8,610,246 |
| 3/20 | $8,618,798 | $7,090,362 | $7,326,116 |
| 4/20 | $10,674,267 | $8,029,411 | $8,473,325 |
| 5/20 | $12,871,494 | $8,458,811 | $9,324,509 |
| 6/20 | $14,638,725 | $8,652,195 | $9,543,065 |
| 7/20 | $16,585,515 | $9,143,496 | $10,305,464 |
| 8/20 | $17,587,261 | $9,805,891 | $10,585,825 |
| 9/20 | $18,296,044 | $9,448,848 | $10,437,591 |
| 10/20 | $18,055,058 | $9,244,912 | $10,450,387 |
| 11/20 | $21,490,291 | $10,369,585 | $11,854,068 |
| 12/20 | $22,290,534 | $10,836,092 | $12,422,734 |
| 1/21 | $24,210,730 | $10,787,894 | $12,381,251 |
| 2/21 | $24,794,917 | $11,125,094 | $12,592,695 |
| 3/21 | $21,807,945 | $11,523,849 | $12,352,514 |
| 4/21 | $22,432,771 | $12,117,894 | $13,046,567 |
| 5/21 | $21,218,678 | $12,173,212 | $12,847,188 |
| 6/21 | $23,951,656 | $12,473,390 | $13,720,199 |
| 7/21 | $22,651,206 | $12,684,323 | $13,861,514 |
| 8/21 | $22,844,241 | $13,046,052 | $14,308,935 |
| 9/21 | $21,675,868 | $12,460,703 | $13,615,933 |
| 10/21 | $24,114,212 | $13,303,352 | $14,570,616 |
| 11/21 | $22,407,371 | $13,100,858 | $13,954,979 |
| 12/21 | $19,657,892 | $13,616,752 | $14,003,927 |
| 1/22 | $15,172,839 | $12,815,595 | $12,196,800 |
| 2/22 | $14,886,559 | $12,492,779 | $12,048,738 |
| 3/22 | $14,095,881 | $12,897,998 | $12,242,186 |
| 4/22 | $10,871,823 | $11,740,502 | $10,863,720 |
| 5/22 | $8,881,495 | $11,724,761 | $10,443,201 |
| 6/22 | $8,220,325 | $10,743,883 | $9,662,543 |
| 7/22 | $9,406,342 | $11,751,852 | $10,845,010 |
| 8/22 | $9,481,320 | $11,313,282 | $10,489,786 |
| 9/22 | $8,411,178 | $10,264,211 | $9,599,447 |
| 10/22 | $8,472,524 | $11,105,938 | $10,353,890 |
| 11/22 | $7,981,758 | $11,685,626 | $10,917,177 |
| 12/22 | $7,204,713 | $11,001,392 | $10,261,945 |
| 1/23 | $8,438,443 | $11,759,088 | $11,157,428 |
| 2/23 | $8,124,898 | $11,484,246 | $11,047,277 |
| 3/23 | $8,411,178 | $11,791,325 | $11,199,467 |
| 4/23 | $7,845,435 | $11,916,954 | $11,037,242 |
| 5/23 | $8,513,421 | $11,963,320 | $11,044,059 |
| 6/23 | $9,358,629 | $12,780,241 | $11,897,672 |
| 7/23 | $10,176,572 | $13,238,371 | $12,257,681 |
| 8/23 | $9,133,694 | $12,982,821 | $11,853,560 |
| 9/23 | $8,649,745 | $12,364,394 | $11,276,142 |
| 10/23 | $7,872,699 | $12,036,630 | $10,700,736 |
| 11/23 | $9,024,635 | $13,159,025 | $12,006,206 |
| 12/23 | $10,578,727 | $13,857,005 | $12,916,386 |
| 1/24 | $9,692,622 | $14,010,578 | $12,846,800 |
| 2/24 | $10,974,066 | $14,768,978 | $13,812,711 |
| 3/24 | $11,389,853 | $15,245,387 | $14,142,997 |
| 4/24 | $10,217,469 | $14,574,564 | $13,321,630 |
| 5/24 | $10,258,366 | $15,263,169 | $13,463,636 |
| 6/24 | $10,626,440 | $15,735,677 | $13,688,533 |
| 7/24 | $10,858,191 | $16,028,187 | $13,771,494 |
| 8/24 | $11,560,258 | $16,377,100 | $14,113,647 |
| 9/24 | $12,255,509 | $16,715,874 | $14,583,945 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class R6 | 41.69% | 7.63% | 9.38% |
Russell 3000®IndexFootnote Reference1 | 35.19% | 15.26% | 12.83% |
Russell Midcap® Growth Index | 29.34% | 11.48% | 11.30% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $898,865,646 |
| # of Portfolio Holdings | 41 |
| Portfolio Turnover Rate | 46% |
| Total Advisory Fees Paid | $4,544,247 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Sector Allocation (% of total investments)
| Value | Value |
|---|
| Industrials | 0.2% |
| Consumer Staples | 1.5% |
| Short-Term Investments | 1.9% |
| Communication Services | 12.9% |
| Health Care | 12.9% |
| Financials | 13.2% |
| Consumer Discretionary | 21.5% |
| Information Technology | 35.9% |
Top Ten Holdings (% of total investments)Footnote Referencea
| DoorDash, Inc., Class A | 8.5% |
| Cloudflare, Inc., Class A | 7.5% |
| Trade Desk, Inc., Class A | 7.4% |
| Affirm Holdings, Inc. | 6.8% |
| Samsara, Inc., Class A | 6.8% |
| ROBLOX Corp., Class A | 5.5% |
| Global-e Online Ltd. | 5.3% |
| Carvana Co. | 4.9% |
| Royalty Pharma PLC, Class A | 4.5% |
| MicroStrategy, Inc., Class A | 4.3% |
| Total | 61.5% |
| Footnote | Description |
Footnotea | Excluding cash equivalents |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Dynamic Value Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Dynamic Value Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $97 | 0.88% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Russell 1000® Value Index:
↓ The portfolio’s systematic security selection process detracted from performance as hopes of efficiency gains from artificial intelligence (AI) continued to benefit expensive Growth stocks.
↓ The portfolio’s dynamic allocation consisting of an average overweight in a portfolio of Value stocks versus an underweight in a portfolio of expensive stocks detracted from performance as hopes of efficiency gains from AI continued to benefit expensive Growth stocks.
↓ The Fund’s exposure to deep Value stocks and stocks with smaller market capitalizations also weighed on security selection and dynamic allocation performance.
↑ There were no material positive contributors to relative performance in the period.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class A with maximum sales charge | Russell 1000® Index | Russell 1000® Value Index |
|---|
| 3/21 | $9,479 | $10,000 | $10,000 |
| 3/21 | $9,498 | $10,000 | $10,000 |
| 4/21 | $9,763 | $10,674 | $10,471 |
| 5/21 | $10,227 | $10,724 | $10,716 |
| 6/21 | $9,848 | $10,993 | $10,593 |
| 7/21 | $9,829 | $11,221 | $10,677 |
| 8/21 | $10,000 | $11,546 | $10,889 |
| 9/21 | $9,877 | $11,016 | $10,510 |
| 10/21 | $10,009 | $11,780 | $11,044 |
| 11/21 | $9,716 | $11,622 | $10,655 |
| 12/21 | $10,461 | $12,093 | $11,327 |
| 1/22 | $10,738 | $11,411 | $11,063 |
| 2/22 | $10,768 | $11,098 | $10,935 |
| 3/22 | $10,976 | $11,472 | $11,243 |
| 4/22 | $10,550 | $10,450 | $10,609 |
| 5/22 | $11,351 | $10,434 | $10,815 |
| 6/22 | $10,046 | $9,560 | $9,870 |
| 7/22 | $10,778 | $10,450 | $10,525 |
| 8/22 | $10,303 | $10,049 | $10,211 |
| 9/22 | $9,117 | $9,119 | $9,316 |
| 10/22 | $10,323 | $9,851 | $10,271 |
| 11/22 | $11,114 | $10,384 | $10,913 |
| 12/22 | $10,501 | $9,780 | $10,473 |
| 1/23 | $11,671 | $10,436 | $11,016 |
| 2/23 | $11,132 | $10,187 | $10,627 |
| 3/23 | $10,196 | $10,509 | $10,578 |
| 4/23 | $10,185 | $10,640 | $10,738 |
| 5/23 | $9,687 | $10,689 | $10,324 |
| 6/23 | $10,572 | $11,411 | $11,009 |
| 7/23 | $11,254 | $11,804 | $11,397 |
| 8/23 | $10,857 | $11,597 | $11,089 |
| 9/23 | $10,389 | $11,052 | $10,661 |
| 10/23 | $9,819 | $10,785 | $10,285 |
| 11/23 | $10,613 | $11,792 | $11,061 |
| 12/23 | $11,646 | $12,374 | $11,674 |
| 1/24 | $11,418 | $12,547 | $11,686 |
| 2/24 | $11,501 | $13,224 | $12,117 |
| 3/24 | $12,279 | $13,648 | $12,722 |
| 4/24 | $11,615 | $13,068 | $12,179 |
| 5/24 | $12,030 | $13,683 | $12,565 |
| 6/24 | $11,573 | $14,136 | $12,447 |
| 7/24 | $12,465 | $14,342 | $13,083 |
| 8/24 | $12,455 | $14,682 | $13,434 |
| 9/24 | $12,455 | $14,996 | $13,621 |
Average Annual Total Returns (%)
| AATR | 1 Year | Since 3/19/21 (Inception) |
|---|
| Class A | 19.89% | 8.03% |
| Class A with maximum 5.25% sales charge | 13.55% | 6.41% |
Russell 1000®IndexFootnote Reference1 | 35.68% | 12.15% |
Russell 1000® Value Index | 27.76% | 9.14% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $9,919,429 |
| # of Portfolio Holdings | 201 |
| Portfolio Turnover Rate | 207% |
| Total Advisory Fees Paid | $148,390 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Sector Allocation (% of total investments)
| Value | Value |
|---|
| Short-term Investments | 1.8% |
| Communication Services | 4.1% |
| Materials | 4.5% |
| Utilities | 4.8% |
| Real Estate | 4.8% |
| Consumer Discretionary | 6.2% |
| Energy | 6.4% |
| Consumer Staples | 7.9% |
| Information Technology | 8.9% |
| Industrials | 14.4% |
| Health Care | 15.2% |
| Financials | 21.0% |
Top Ten Holdings (% of total investments)Footnote Referencea
| AT&T, Inc. | 1.8% |
| Bank OZK | 1.0% |
| Kimberly-Clark Corp. | 0.9% |
| East West Bancorp, Inc. | 0.9% |
| FNB Corp. | 0.9% |
| Reynolds Consumer Products, Inc. | 0.9% |
| Huntington Bancshares, Inc. | 0.9% |
| Webster Financial Corp. | 0.9% |
| Zions Bancorp NA | 0.9% |
| First Citizens BancShares, Inc. | 0.9% |
| Total | 10.0% |
| Footnote | Description |
Footnotea | Excluding cash equivalents. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Dynamic Value Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Dynamic Value Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $179 | 1.63% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Russell 1000® Value Index:
↓ The portfolio’s systematic security selection process detracted from performance as hopes of efficiency gains from artificial intelligence (AI) continued to benefit expensive Growth stocks.
↓ The portfolio’s dynamic allocation consisting of an average overweight in a portfolio of Value stocks versus an underweight in a portfolio of expensive stocks detracted from performance as hopes of efficiency gains from AI continued to benefit expensive Growth stocks.
↓ The Fund’s exposure to deep Value stocks and stocks with smaller market capitalizations also weighed on security selection and dynamic allocation performance.
↑ There were no material positive contributors to relative performance in the period.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class C | Russell 1000® Index | Russell 1000® Value Index |
|---|
| 3/21 | $10,000 | $10,000 | $10,000 |
| 3/21 | $10,020 | $10,000 | $10,000 |
| 4/21 | $10,300 | $10,674 | $10,471 |
| 5/21 | $10,770 | $10,724 | $10,716 |
| 6/21 | $10,370 | $10,993 | $10,593 |
| 7/21 | $10,340 | $11,221 | $10,677 |
| 8/21 | $10,520 | $11,546 | $10,889 |
| 9/21 | $10,380 | $11,016 | $10,510 |
| 10/21 | $10,510 | $11,780 | $11,044 |
| 11/21 | $10,200 | $11,622 | $10,655 |
| 12/21 | $10,974 | $12,093 | $11,327 |
| 1/22 | $11,255 | $11,411 | $11,063 |
| 2/22 | $11,286 | $11,098 | $10,935 |
| 3/22 | $11,494 | $11,472 | $11,243 |
| 4/22 | $11,036 | $10,450 | $10,609 |
| 5/22 | $11,879 | $10,434 | $10,815 |
| 6/22 | $10,505 | $9,560 | $9,870 |
| 7/22 | $11,255 | $10,450 | $10,525 |
| 8/22 | $10,755 | $10,049 | $10,211 |
| 9/22 | $9,516 | $9,119 | $9,316 |
| 10/22 | $10,765 | $9,851 | $10,271 |
| 11/22 | $11,577 | $10,384 | $10,913 |
| 12/22 | $10,964 | $9,780 | $10,473 |
| 1/23 | $12,173 | $10,436 | $11,016 |
| 2/23 | $11,596 | $10,187 | $10,627 |
| 3/23 | $10,622 | $10,509 | $10,578 |
| 4/23 | $10,601 | $10,640 | $10,738 |
| 5/23 | $10,077 | $10,689 | $10,324 |
| 6/23 | $10,997 | $11,411 | $11,009 |
| 7/23 | $11,692 | $11,804 | $11,397 |
| 8/23 | $11,275 | $11,597 | $11,089 |
| 9/23 | $10,783 | $11,052 | $10,661 |
| 10/23 | $10,184 | $10,785 | $10,285 |
| 11/23 | $10,997 | $11,792 | $11,061 |
| 12/23 | $12,066 | $12,374 | $11,674 |
| 1/24 | $11,820 | $12,547 | $11,686 |
| 2/24 | $11,895 | $13,224 | $12,117 |
| 3/24 | $12,687 | $13,648 | $12,722 |
| 4/24 | $11,991 | $13,068 | $12,179 |
| 5/24 | $12,419 | $13,683 | $12,565 |
| 6/24 | $11,938 | $14,136 | $12,447 |
| 7/24 | $12,847 | $14,342 | $13,083 |
| 8/24 | $12,826 | $14,682 | $13,434 |
| 9/24 | $12,836 | $14,996 | $13,621 |
Average Annual Total Returns (%)
| AATR | 1 Year | Since 3/19/21 (Inception) |
|---|
| Class C | 19.05% | 7.32% |
| Class C with maximum deferred sales charge | 18.05% | 7.32% |
Russell 1000®IndexFootnote Reference1 | 35.68% | 12.15% |
Russell 1000® Value Index | 27.76% | 9.14% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $9,919,429 |
| # of Portfolio Holdings | 201 |
| Portfolio Turnover Rate | 207% |
| Total Advisory Fees Paid | $148,390 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Sector Allocation (% of total investments)
| Value | Value |
|---|
| Short-term Investments | 1.8% |
| Communication Services | 4.1% |
| Materials | 4.5% |
| Utilities | 4.8% |
| Real Estate | 4.8% |
| Consumer Discretionary | 6.2% |
| Energy | 6.4% |
| Consumer Staples | 7.9% |
| Information Technology | 8.9% |
| Industrials | 14.4% |
| Health Care | 15.2% |
| Financials | 21.0% |
Top Ten Holdings (% of total investments)Footnote Referencea
| AT&T, Inc. | 1.8% |
| Bank OZK | 1.0% |
| Kimberly-Clark Corp. | 0.9% |
| East West Bancorp, Inc. | 0.9% |
| FNB Corp. | 0.9% |
| Reynolds Consumer Products, Inc. | 0.9% |
| Huntington Bancshares, Inc. | 0.9% |
| Webster Financial Corp. | 0.9% |
| Zions Bancorp NA | 0.9% |
| First Citizens BancShares, Inc. | 0.9% |
| Total | 10.0% |
| Footnote | Description |
Footnotea | Excluding cash equivalents. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Dynamic Value Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Dynamic Value Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class I | $58 | 0.53% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Russell 1000® Value Index:
↓ The portfolio’s systematic security selection process detracted from performance as hopes of efficiency gains from artificial intelligence (AI) continued to benefit expensive Growth stocks.
↓ The portfolio’s dynamic allocation consisting of an average overweight in a portfolio of Value stocks versus an underweight in a portfolio of expensive stocks detracted from performance as hopes of efficiency gains from AI continued to benefit expensive Growth stocks.
↓ The Fund’s exposure to deep Value stocks and stocks with smaller market capitalizations also weighed on security selection and dynamic allocation performance.
↑ There were no material positive contributors to relative performance in the period.
Comparison of the change in value of a $1,000,000 investment for the period indicated.
| Class I | Russell 1000® Index | Russell 1000® Value Index |
|---|
| 3/21 | $1,000,000 | $1,000,000 | $1,000,000 |
| 3/21 | $1,002,000 | $1,000,000 | $1,000,000 |
| 4/21 | $1,031,000 | $1,067,359 | $1,047,108 |
| 5/21 | $1,079,000 | $1,072,426 | $1,071,552 |
| 6/21 | $1,040,000 | $1,099,298 | $1,059,281 |
| 7/21 | $1,039,000 | $1,122,134 | $1,067,747 |
| 8/21 | $1,057,000 | $1,154,611 | $1,088,922 |
| 9/21 | $1,044,000 | $1,101,575 | $1,051,019 |
| 10/21 | $1,058,000 | $1,178,011 | $1,104,387 |
| 11/21 | $1,028,000 | $1,162,208 | $1,065,468 |
| 12/21 | $1,107,290 | $1,209,284 | $1,132,685 |
| 1/22 | $1,136,567 | $1,141,104 | $1,106,300 |
| 2/22 | $1,140,749 | $1,109,791 | $1,093,462 |
| 3/22 | $1,162,707 | $1,147,241 | $1,124,330 |
| 4/22 | $1,117,746 | $1,044,975 | $1,060,913 |
| 5/22 | $1,203,485 | $1,043,387 | $1,081,537 |
| 6/22 | $1,065,466 | $956,003 | $987,041 |
| 7/22 | $1,142,841 | $1,045,045 | $1,052,494 |
| 8/22 | $1,092,652 | $1,004,919 | $1,021,135 |
| 9/22 | $968,226 | $911,936 | $931,594 |
| 10/22 | $1,095,789 | $985,074 | $1,027,111 |
| 11/22 | $1,180,482 | $1,038,364 | $1,091,297 |
| 12/22 | $1,116,379 | $977,985 | $1,047,305 |
| 1/23 | $1,240,181 | $1,043,554 | $1,101,576 |
| 2/23 | $1,183,124 | $1,018,722 | $1,062,736 |
| 3/23 | $1,084,082 | $1,050,947 | $1,057,842 |
| 4/23 | $1,084,082 | $1,063,970 | $1,073,780 |
| 5/23 | $1,031,331 | $1,068,925 | $1,032,367 |
| 6/23 | $1,124,991 | $1,141,118 | $1,100,944 |
| 7/23 | $1,197,119 | $1,180,359 | $1,139,659 |
| 8/23 | $1,156,211 | $1,159,711 | $1,108,892 |
| 9/23 | $1,106,690 | $1,105,209 | $1,066,100 |
| 10/23 | $1,046,403 | $1,078,497 | $1,028,486 |
| 11/23 | $1,131,450 | $1,179,224 | $1,106,085 |
| 12/23 | $1,242,086 | $1,237,437 | $1,167,354 |
| 1/24 | $1,217,860 | $1,254,694 | $1,168,563 |
| 2/24 | $1,226,670 | $1,322,450 | $1,211,671 |
| 3/24 | $1,309,255 | $1,364,844 | $1,272,248 |
| 4/24 | $1,238,782 | $1,306,766 | $1,217,903 |
| 5/24 | $1,283,929 | $1,368,302 | $1,256,511 |
| 6/24 | $1,236,580 | $1,413,588 | $1,244,691 |
| 7/24 | $1,331,278 | $1,434,160 | $1,308,322 |
| 8/24 | $1,330,177 | $1,468,154 | $1,343,418 |
| 9/24 | $1,332,379 | $1,499,564 | $1,362,057 |
Average Annual Total Returns (%)
| AATR | 1 Year | Since 3/19/21 (Inception) |
|---|
| Class I | 20.39% | 8.46% |
Russell 1000®IndexFootnote Reference1 | 35.68% | 12.15% |
Russell 1000® Value Index | 27.76% | 9.14% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $9,919,429 |
| # of Portfolio Holdings | 201 |
| Portfolio Turnover Rate | 207% |
| Total Advisory Fees Paid | $148,390 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Sector Allocation (% of total investments)
| Value | Value |
|---|
| Short-term Investments | 1.8% |
| Communication Services | 4.1% |
| Materials | 4.5% |
| Utilities | 4.8% |
| Real Estate | 4.8% |
| Consumer Discretionary | 6.2% |
| Energy | 6.4% |
| Consumer Staples | 7.9% |
| Information Technology | 8.9% |
| Industrials | 14.4% |
| Health Care | 15.2% |
| Financials | 21.0% |
Top Ten Holdings (% of total investments)Footnote Referencea
| AT&T, Inc. | 1.8% |
| Bank OZK | 1.0% |
| Kimberly-Clark Corp. | 0.9% |
| East West Bancorp, Inc. | 0.9% |
| FNB Corp. | 0.9% |
| Reynolds Consumer Products, Inc. | 0.9% |
| Huntington Bancshares, Inc. | 0.9% |
| Webster Financial Corp. | 0.9% |
| Zions Bancorp NA | 0.9% |
| First Citizens BancShares, Inc. | 0.9% |
| Total | 10.0% |
| Footnote | Description |
Footnotea | Excluding cash equivalents. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Dynamic Value Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Dynamic Value Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $53 | 0.48% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Russell 1000® Value Index:
↓ The portfolio’s systematic security selection process detracted from performance as hopes of efficiency gains from artificial intelligence (AI) continued to benefit expensive Growth stocks.
↓ The portfolio’s dynamic allocation consisting of an average overweight in a portfolio of Value stocks versus an underweight in a portfolio of expensive stocks detracted from performance as hopes of efficiency gains from AI continued to benefit expensive Growth stocks.
↓ The Fund’s exposure to deep Value stocks and stocks with smaller market capitalizations also weighed on security selection and dynamic allocation performance.
↑ There were no material positive contributors to relative performance in the period.
Comparison of the change in value of a $5,000,000 investment for the period indicated.
| Class R6 | Russell 1000® Index | Russell 1000® Value Index |
|---|
| 3/21 | $5,000,000 | $5,000,000 | $5,000,000 |
| 3/21 | $5,010,000 | $5,000,000 | $5,000,000 |
| 4/21 | $5,155,000 | $5,336,794 | $5,235,540 |
| 5/21 | $5,395,000 | $5,362,128 | $5,357,760 |
| 6/21 | $5,200,000 | $5,496,488 | $5,296,406 |
| 7/21 | $5,195,000 | $5,610,671 | $5,338,736 |
| 8/21 | $5,285,000 | $5,773,057 | $5,444,611 |
| 9/21 | $5,220,000 | $5,507,877 | $5,255,095 |
| 10/21 | $5,295,000 | $5,890,053 | $5,521,935 |
| 11/21 | $5,140,000 | $5,811,041 | $5,327,342 |
| 12/21 | $5,537,010 | $6,046,420 | $5,663,425 |
| 1/22 | $5,683,408 | $5,705,521 | $5,531,501 |
| 2/22 | $5,704,322 | $5,548,953 | $5,467,312 |
| 3/22 | $5,814,122 | $5,736,204 | $5,621,649 |
| 4/22 | $5,589,295 | $5,224,876 | $5,304,567 |
| 5/22 | $6,018,034 | $5,216,934 | $5,407,686 |
| 6/22 | $5,327,869 | $4,780,016 | $4,935,206 |
| 7/22 | $5,714,780 | $5,225,224 | $5,262,472 |
| 8/22 | $5,463,810 | $5,024,595 | $5,105,674 |
| 9/22 | $4,836,387 | $4,559,682 | $4,657,972 |
| 10/22 | $5,479,496 | $4,925,369 | $5,135,555 |
| 11/22 | $5,897,778 | $5,191,821 | $5,456,484 |
| 12/22 | $5,577,547 | $4,889,925 | $5,236,524 |
| 1/23 | $6,202,059 | $5,217,769 | $5,507,882 |
| 2/23 | $5,916,722 | $5,093,609 | $5,313,680 |
| 3/23 | $5,421,418 | $5,254,737 | $5,289,210 |
| 4/23 | $5,421,418 | $5,319,848 | $5,368,902 |
| 5/23 | $5,157,615 | $5,344,627 | $5,161,834 |
| 6/23 | $5,631,384 | $5,705,591 | $5,504,720 |
| 7/23 | $5,992,094 | $5,901,796 | $5,698,293 |
| 8/23 | $5,782,128 | $5,798,557 | $5,544,459 |
| 9/23 | $5,534,477 | $5,526,047 | $5,330,502 |
| 10/23 | $5,232,988 | $5,392,486 | $5,142,430 |
| 11/23 | $5,658,303 | $5,896,120 | $5,530,426 |
| 12/23 | $6,211,498 | $6,187,186 | $5,836,771 |
| 1/24 | $6,095,755 | $6,273,472 | $5,842,814 |
| 2/24 | $6,139,848 | $6,612,248 | $6,058,354 |
| 3/24 | $6,553,213 | $6,824,218 | $6,361,240 |
| 4/24 | $6,200,475 | $6,533,832 | $6,089,516 |
| 5/24 | $6,426,447 | $6,841,508 | $6,282,554 |
| 6/24 | $6,183,940 | $7,067,941 | $6,223,457 |
| 7/24 | $6,663,443 | $7,170,800 | $6,541,611 |
| 8/24 | $6,691,001 | $7,340,772 | $6,717,089 |
| 9/24 | $6,674,466 | $7,497,821 | $6,810,287 |
Average Annual Total Returns (%)
| AATR | 1 Year | Since 3/19/21 (Inception) |
|---|
| Class R6 | 20.60% | 8.52% |
Russell 1000®IndexFootnote Reference1 | 35.68% | 12.15% |
Russell 1000® Value Index | 27.76% | 9.14% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $9,919,429 |
| # of Portfolio Holdings | 201 |
| Portfolio Turnover Rate | 207% |
| Total Advisory Fees Paid | $148,390 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Sector Allocation (% of total investments)
| Value | Value |
|---|
| Short-term Investments | 1.8% |
| Communication Services | 4.1% |
| Materials | 4.5% |
| Utilities | 4.8% |
| Real Estate | 4.8% |
| Consumer Discretionary | 6.2% |
| Energy | 6.4% |
| Consumer Staples | 7.9% |
| Information Technology | 8.9% |
| Industrials | 14.4% |
| Health Care | 15.2% |
| Financials | 21.0% |
Top Ten Holdings (% of total investments)Footnote Referencea
| AT&T, Inc. | 1.8% |
| Bank OZK | 1.0% |
| Kimberly-Clark Corp. | 0.9% |
| East West Bancorp, Inc. | 0.9% |
| FNB Corp. | 0.9% |
| Reynolds Consumer Products, Inc. | 0.9% |
| Huntington Bancshares, Inc. | 0.9% |
| Webster Financial Corp. | 0.9% |
| Zions Bancorp NA | 0.9% |
| First Citizens BancShares, Inc. | 0.9% |
| Total | 10.0% |
| Footnote | Description |
Footnotea | Excluding cash equivalents. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Global Strategist Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Global Strategist Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $107 | 0.96% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the MSCI All Country World Index:
↓ Overweight U.S. Value stocks vs. U.S. expensive stocks as expensive high-growth stocks outperformed Value stocks on hopes of efficiency gains from increasing artificial intelligence adoption.
↓ Underweight U.S. cyclical stocks vs. U.S. defensive stocks as fears of recession declined.
↓ Overweight VIX Roll Harvesting Strategy as the market volatility declined unexpectedly.
↑ Overweight South African 10-year bonds vs. U.S. 10-year Treasury bonds and South African banks vs. emerging markets equities as our thesis of a recovery in the South African economy materialized.
↑ Directional overweight in U.S. 10-year Treasury inflation-protected securities (TIPS) as investors’ expectations of additional interest rate cuts increased in 2024.
↑ Overweight European Union (EMU) banks vs. EMU equities as our thesis of falling inflation and an economic recovery in the eurozone has played out.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class A with maximum sales charge | MSCI All Country World Index | Customized MSIM Global Allocation Index |
|---|
| 9/14 | $9,473 | $10,000 | $10,000 |
| 10/14 | $9,456 | $10,070 | $10,034 |
| 11/14 | $9,523 | $10,239 | $10,095 |
| 12/14 | $9,371 | $10,041 | $9,917 |
| 1/15 | $9,305 | $9,884 | $9,788 |
| 2/15 | $9,560 | $10,435 | $10,105 |
| 3/15 | $9,394 | $10,273 | $9,962 |
| 4/15 | $9,549 | $10,571 | $10,196 |
| 5/15 | $9,430 | $10,557 | $10,121 |
| 6/15 | $9,193 | $10,309 | $9,974 |
| 7/15 | $9,258 | $10,398 | $9,977 |
| 8/15 | $8,860 | $9,685 | $9,567 |
| 9/15 | $8,605 | $9,334 | $9,358 |
| 10/15 | $9,003 | $10,067 | $9,808 |
| 11/15 | $8,896 | $9,984 | $9,675 |
| 12/15 | $8,763 | $9,804 | $9,569 |
| 1/16 | $8,508 | $9,213 | $9,237 |
| 2/16 | $8,436 | $9,149 | $9,258 |
| 3/16 | $8,953 | $9,827 | $9,758 |
| 4/16 | $9,102 | $9,972 | $9,916 |
| 5/16 | $9,030 | $9,985 | $9,885 |
| 6/16 | $8,971 | $9,924 | $9,942 |
| 7/16 | $9,209 | $10,352 | $10,190 |
| 8/16 | $9,250 | $10,387 | $10,188 |
| 9/16 | $9,292 | $10,451 | $10,256 |
| 10/16 | $9,108 | $10,273 | $10,067 |
| 11/16 | $9,084 | $10,351 | $10,000 |
| 12/16 | $9,224 | $10,575 | $10,125 |
| 1/17 | $9,373 | $10,864 | $10,333 |
| 2/17 | $9,511 | $11,169 | $10,525 |
| 3/17 | $9,637 | $11,305 | $10,591 |
| 4/17 | $9,805 | $11,482 | $10,722 |
| 5/17 | $9,978 | $11,735 | $10,910 |
| 6/17 | $10,032 | $11,789 | $10,936 |
| 7/17 | $10,212 | $12,118 | $11,193 |
| 8/17 | $10,236 | $12,164 | $11,263 |
| 9/17 | $10,374 | $12,399 | $11,353 |
| 10/17 | $10,481 | $12,657 | $11,477 |
| 11/17 | $10,631 | $12,902 | $11,661 |
| 12/17 | $10,724 | $13,110 | $11,790 |
| 1/18 | $11,074 | $13,850 | $12,246 |
| 2/18 | $10,781 | $13,268 | $11,894 |
| 3/18 | $10,762 | $12,984 | $11,792 |
| 4/18 | $10,737 | $13,108 | $11,784 |
| 5/18 | $10,622 | $13,124 | $11,757 |
| 6/18 | $10,584 | $13,053 | $11,698 |
| 7/18 | $10,775 | $13,447 | $11,901 |
| 8/18 | $10,737 | $13,552 | $11,963 |
| 9/18 | $10,756 | $13,611 | $11,953 |
| 10/18 | $10,266 | $12,591 | $11,362 |
| 11/18 | $10,380 | $12,776 | $11,476 |
| 12/18 | $10,022 | $11,876 | $11,083 |
| 1/19 | $10,589 | $12,813 | $11,676 |
| 2/19 | $10,705 | $13,156 | $11,837 |
| 3/19 | $10,829 | $13,322 | $11,985 |
| 4/19 | $11,032 | $13,771 | $12,214 |
| 5/19 | $10,698 | $12,954 | $11,845 |
| 6/19 | $11,192 | $13,803 | $12,416 |
| 7/19 | $11,141 | $13,843 | $12,424 |
| 8/19 | $11,011 | $13,515 | $12,348 |
| 9/19 | $11,120 | $13,799 | $12,453 |
| 10/19 | $11,338 | $14,177 | $12,691 |
| 11/19 | $11,468 | $14,523 | $12,839 |
| 12/19 | $11,792 | $15,034 | $13,140 |
| 1/20 | $11,585 | $14,868 | $13,120 |
| 2/20 | $10,950 | $13,667 | $12,519 |
| 3/20 | $9,725 | $11,822 | $11,393 |
| 4/20 | $10,470 | $13,089 | $12,215 |
| 5/20 | $10,810 | $13,658 | $12,555 |
| 6/20 | $11,061 | $14,094 | $12,840 |
| 7/20 | $11,556 | $14,840 | $13,411 |
| 8/20 | $11,984 | $15,748 | $13,896 |
| 9/20 | $11,748 | $15,240 | $13,607 |
| 10/20 | $11,578 | $14,870 | $13,414 |
| 11/20 | $12,656 | $16,703 | $14,503 |
| 12/20 | $13,113 | $17,478 | $14,985 |
| 1/21 | $13,084 | $17,399 | $14,892 |
| 2/21 | $13,315 | $17,802 | $14,996 |
| 3/21 | $13,494 | $18,277 | $15,121 |
| 4/21 | $13,867 | $19,076 | $15,594 |
| 5/21 | $14,181 | $19,373 | $15,798 |
| 6/21 | $14,032 | $19,628 | $15,867 |
| 7/21 | $14,069 | $19,764 | $16,017 |
| 8/21 | $14,196 | $20,258 | $16,231 |
| 9/21 | $13,830 | $19,421 | $15,714 |
| 10/21 | $14,114 | $20,413 | $16,180 |
| 11/21 | $13,867 | $19,921 | $15,927 |
| 12/21 | $14,207 | $20,718 | $16,300 |
| 1/22 | $13,869 | $19,701 | $15,686 |
| 2/22 | $13,604 | $19,192 | $15,369 |
| 3/22 | $13,532 | $19,607 | $15,381 |
| 4/22 | $12,590 | $18,038 | $14,306 |
| 5/22 | $12,767 | $18,059 | $14,331 |
| 6/22 | $11,762 | $16,537 | $13,422 |
| 7/22 | $12,317 | $17,692 | $14,099 |
| 8/22 | $11,762 | $17,040 | $13,565 |
| 9/22 | $10,788 | $15,409 | $12,507 |
| 10/22 | $11,182 | $16,339 | $12,926 |
| 11/22 | $12,035 | $17,606 | $13,770 |
| 12/22 | $11,792 | $16,913 | $13,475 |
| 1/23 | $12,544 | $18,126 | $14,231 |
| 2/23 | $12,075 | $17,606 | $13,798 |
| 3/23 | $12,367 | $18,149 | $14,227 |
| 4/23 | $12,439 | $18,410 | $14,375 |
| 5/23 | $12,205 | $18,213 | $14,170 |
| 6/23 | $12,658 | $19,270 | $14,663 |
| 7/23 | $12,997 | $19,976 | $15,026 |
| 8/23 | $12,698 | $19,418 | $14,692 |
| 9/23 | $12,229 | $18,615 | $14,156 |
| 10/23 | $11,970 | $18,055 | $13,833 |
| 11/23 | $12,852 | $19,721 | $14,878 |
| 12/23 | $13,434 | $20,669 | $15,554 |
| 1/24 | $13,337 | $20,790 | $15,523 |
| 2/24 | $13,547 | $21,682 | $15,844 |
| 3/24 | $13,830 | $22,363 | $16,178 |
| 4/24 | $13,418 | $21,625 | $15,694 |
| 5/24 | $13,879 | $22,503 | $16,159 |
| 6/24 | $14,008 | $23,004 | $16,384 |
| 7/24 | $14,364 | $23,375 | $16,724 |
| 8/24 | $14,655 | $23,969 | $17,137 |
| 9/24 | $14,922 | $24,526 | $17,492 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class A | 22.02% | 6.06% | 4.65% |
| Class A with maximum 5.25% sales charge | 15.60% | 4.92% | 4.08% |
| MSCI All Country World Index | 31.76% | 12.19% | 9.39% |
Customized MSIM Global Allocation IndexFootnote Reference1 | 23.57% | 7.03% | 5.75% |
| Footnote | Description |
Footnote1 | The Customized MSIM Global Allocation Index is a performance linked benchmark comprised of 60% MSCI All Country World Index and 40% Bloomberg Global Aggregate Index for periods after May 31, 2017. Prior to May 31, 2017, the Customized MSIM Global Allocation Index consisted of 60% MSCI All Country World Index, 30% Bloomberg Global Aggregate Index, 5% S&P GSCI Light Energy Index and 5% ICE BofA U.S. Dollar 1-Month LIBID Average Index. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $614,052,374 |
| # of Portfolio Holdings | 1,531 |
| Portfolio Turnover Rate | 93% |
| Total Advisory Fees Paid | $2,496,863 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Country Allocation (% of total investments)
| Value | Value |
|---|
| Other | 10.1% |
| Australia | 1.9% |
| South Africa | 2.0% |
| Spain | 2.1% |
| Japan | 2.1% |
| China | 2.9% |
| Canada | 3.4% |
| France | 3.8% |
| United Kingdom | 3.8% |
| Germany | 3.8% |
| United States | 64.1% |
Top Ten Holdings (% of total investments)Footnote Referencea
| U.S. Treasury Securities | 6.9% |
| China Government Bonds, 3.130%, 11/21/2029 | 2.6% |
| Uniform Mortgage-Backed Security, TBA, 5.500%, 10/1/2054 | 2.2% |
| Apple, Inc. | 1.8% |
| Microsoft Corp. | 1.6% |
| Bundesrepublik Deutschland Bundesanleihe, 0.000%, 8/15/2031 | 1.6% |
| NVIDIA Corp. | 1.6% |
| Federal National Mortgage Association, 3.000%, 6/1/2052 | 1.4% |
| Brazil Notas do Tesouro Nacional, 10.000%, 1/1/2029 | 1.1% |
| U.K. Gilts, 0.875%, 7/31/2033 | 1.1% |
| Total | 12.6% |
| Footnote | Description |
Footnotea | Excluding cash equivalents. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Global Strategist Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Global Strategist Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $198 | 1.79% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the MSCI All Country World Index:
↓ Overweight U.S. Value stocks vs. U.S. expensive stocks as expensive high-growth stocks outperformed Value stocks on hopes of efficiency gains from increasing artificial intelligence adoption.
↓ Underweight U.S. cyclical stocks vs. U.S. defensive stocks as fears of recession declined.
↓ Overweight VIX Roll Harvesting Strategy as the market volatility declined unexpectedly.
↑ Overweight South African 10-year bonds vs. U.S. 10-year Treasury bonds and South African banks vs. emerging markets equities as our thesis of a recovery in the South African economy materialized.
↑ Directional overweight in U.S. 10-year Treasury inflation-protected securities (TIPS) as investors’ expectations of additional interest rate cuts increased in 2024.
↑ Overweight European Union (EMU) banks vs. EMU equities as our thesis of falling inflation and an economic recovery in the eurozone has played out.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class C | MSCI All Country World Index | Customized MSIM Global Allocation Index |
|---|
| 4/15 | $10,000 | $10,000 | $10,000 |
| 5/15 | $9,875 | $10,000 | $10,000 |
| 6/15 | $9,626 | $9,752 | $9,783 |
| 7/15 | $9,682 | $9,837 | $9,786 |
| 8/15 | $9,264 | $9,162 | $9,383 |
| 9/15 | $8,989 | $8,830 | $9,178 |
| 10/15 | $9,401 | $9,523 | $9,619 |
| 11/15 | $9,283 | $9,445 | $9,489 |
| 12/15 | $9,137 | $9,274 | $9,386 |
| 1/16 | $8,868 | $8,715 | $9,059 |
| 2/16 | $8,787 | $8,655 | $9,080 |
| 3/16 | $9,318 | $9,296 | $9,571 |
| 4/16 | $9,468 | $9,434 | $9,725 |
| 5/16 | $9,387 | $9,446 | $9,696 |
| 6/16 | $9,318 | $9,388 | $9,751 |
| 7/16 | $9,561 | $9,793 | $9,994 |
| 8/16 | $9,599 | $9,826 | $9,993 |
| 9/16 | $9,630 | $9,886 | $10,059 |
| 10/16 | $9,430 | $9,718 | $9,874 |
| 11/16 | $9,399 | $9,792 | $9,808 |
| 12/16 | $9,543 | $10,004 | $9,930 |
| 1/17 | $9,686 | $10,277 | $10,134 |
| 2/17 | $9,824 | $10,566 | $10,323 |
| 3/17 | $9,942 | $10,695 | $10,388 |
| 4/17 | $10,111 | $10,861 | $10,516 |
| 5/17 | $10,286 | $11,101 | $10,701 |
| 6/17 | $10,336 | $11,152 | $10,726 |
| 7/17 | $10,511 | $11,463 | $10,978 |
| 8/17 | $10,529 | $11,507 | $11,047 |
| 9/17 | $10,667 | $11,730 | $11,135 |
| 10/17 | $10,773 | $11,973 | $11,257 |
| 11/17 | $10,917 | $12,205 | $11,438 |
| 12/17 | $11,002 | $12,402 | $11,564 |
| 1/18 | $11,357 | $13,101 | $12,011 |
| 2/18 | $11,048 | $12,551 | $11,665 |
| 3/18 | $11,021 | $12,283 | $11,565 |
| 4/18 | $10,988 | $12,400 | $11,557 |
| 5/18 | $10,870 | $12,415 | $11,531 |
| 6/18 | $10,817 | $12,348 | $11,473 |
| 7/18 | $11,008 | $12,720 | $11,673 |
| 8/18 | $10,955 | $12,820 | $11,733 |
| 9/18 | $10,969 | $12,876 | $11,723 |
| 10/18 | $10,461 | $11,911 | $11,144 |
| 11/18 | $10,573 | $12,086 | $11,255 |
| 12/18 | $10,208 | $11,234 | $10,871 |
| 1/19 | $10,777 | $12,121 | $11,452 |
| 2/19 | $10,882 | $12,446 | $11,609 |
| 3/19 | $11,001 | $12,602 | $11,755 |
| 4/19 | $11,204 | $13,028 | $11,979 |
| 5/19 | $10,852 | $12,255 | $11,618 |
| 6/19 | $11,353 | $13,057 | $12,177 |
| 7/19 | $11,294 | $13,095 | $12,185 |
| 8/19 | $11,151 | $12,785 | $12,111 |
| 9/19 | $11,249 | $13,054 | $12,214 |
| 10/19 | $11,466 | $13,411 | $12,448 |
| 11/19 | $11,586 | $13,738 | $12,592 |
| 12/19 | $11,912 | $14,222 | $12,888 |
| 1/20 | $11,691 | $14,065 | $12,868 |
| 2/20 | $11,044 | $12,929 | $12,279 |
| 3/20 | $9,803 | $11,184 | $11,174 |
| 4/20 | $10,549 | $12,382 | $11,980 |
| 5/20 | $10,884 | $12,920 | $12,314 |
| 6/20 | $11,128 | $13,333 | $12,594 |
| 7/20 | $11,615 | $14,038 | $13,154 |
| 8/20 | $12,041 | $14,897 | $13,629 |
| 9/20 | $11,790 | $14,417 | $13,346 |
| 10/20 | $11,615 | $14,067 | $13,156 |
| 11/20 | $12,688 | $15,800 | $14,225 |
| 12/20 | $13,135 | $16,534 | $14,698 |
| 1/21 | $13,096 | $16,459 | $14,606 |
| 2/21 | $13,318 | $16,840 | $14,708 |
| 3/21 | $13,494 | $17,290 | $14,831 |
| 4/21 | $13,853 | $18,046 | $15,295 |
| 5/21 | $14,159 | $18,327 | $15,495 |
| 6/21 | $13,998 | $18,568 | $15,563 |
| 7/21 | $14,029 | $18,696 | $15,710 |
| 8/21 | $14,143 | $19,164 | $15,920 |
| 9/21 | $13,769 | $18,372 | $15,412 |
| 10/21 | $14,044 | $19,310 | $15,869 |
| 11/21 | $13,792 | $18,845 | $15,621 |
| 12/21 | $14,116 | $19,599 | $15,988 |
| 1/22 | $13,770 | $18,637 | $15,385 |
| 2/22 | $13,499 | $18,155 | $15,074 |
| 3/22 | $13,417 | $18,548 | $15,086 |
| 4/22 | $12,480 | $17,064 | $14,031 |
| 5/22 | $12,644 | $17,084 | $14,056 |
| 6/22 | $11,641 | $15,644 | $13,165 |
| 7/22 | $12,184 | $16,736 | $13,828 |
| 8/22 | $11,625 | $16,120 | $13,305 |
| 9/22 | $10,655 | $14,577 | $12,267 |
| 10/22 | $11,041 | $15,456 | $12,677 |
| 11/22 | $11,871 | $16,655 | $13,506 |
| 12/22 | $11,627 | $16,000 | $13,216 |
| 1/23 | $12,361 | $17,147 | $13,958 |
| 2/23 | $11,891 | $16,655 | $13,533 |
| 3/23 | $12,171 | $17,169 | $13,954 |
| 4/23 | $12,229 | $17,416 | $14,099 |
| 5/23 | $11,990 | $17,229 | $13,898 |
| 6/23 | $12,427 | $18,229 | $14,382 |
| 7/23 | $12,757 | $18,897 | $14,738 |
| 8/23 | $12,452 | $18,369 | $14,410 |
| 9/23 | $11,981 | $17,609 | $13,884 |
| 10/23 | $11,717 | $17,080 | $13,567 |
| 11/23 | $12,584 | $18,656 | $14,592 |
| 12/23 | $13,145 | $19,552 | $15,255 |
| 1/24 | $13,038 | $19,667 | $15,225 |
| 2/24 | $13,227 | $20,511 | $15,540 |
| 3/24 | $13,500 | $21,155 | $15,867 |
| 4/24 | $13,087 | $20,457 | $15,393 |
| 5/24 | $13,524 | $21,288 | $15,849 |
| 6/24 | $13,640 | $21,762 | $16,070 |
| 7/24 | $13,978 | $22,113 | $16,403 |
| 8/24 | $14,251 | $22,674 | $16,808 |
| 9/24 | $14,498 | $23,201 | $17,157 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | Since 4/30/15 (Inception) |
|---|
| Class C | 21.01% | 5.21% | 4.02% |
| Class C with maximum deferred sales charge | 20.01% | 5.21% | 4.02% |
| MSCI All Country World Index | 31.76% | 12.19% | 9.35% |
Customized MSIM Global Allocation IndexFootnote Reference1 | 23.57% | 7.03% | 5.90% |
| Footnote | Description |
Footnote1 | The Customized MSIM Global Allocation Index is a performance linked benchmark comprised of 60% MSCI All Country World Index and 40% Bloomberg Global Aggregate Index for periods after May 31, 2017. Prior to May 31, 2017, the Customized MSIM Global Allocation Index consisted of 60% MSCI All Country World Index, 30% Bloomberg Global Aggregate Index, 5% S&P GSCI Light Energy Index and 5% ICE BofA U.S. Dollar 1-Month LIBID Average Index. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $614,052,374 |
| # of Portfolio Holdings | 1,531 |
| Portfolio Turnover Rate | 93% |
| Total Advisory Fees Paid | $2,496,863 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Country Allocation (% of total investments)
| Value | Value |
|---|
| Other | 10.1% |
| Australia | 1.9% |
| South Africa | 2.0% |
| Spain | 2.1% |
| Japan | 2.1% |
| China | 2.9% |
| Canada | 3.4% |
| France | 3.8% |
| United Kingdom | 3.8% |
| Germany | 3.8% |
| United States | 64.1% |
Top Ten Holdings (% of total investments)Footnote Referencea
| U.S. Treasury Securities | 6.9% |
| China Government Bonds, 3.130%, 11/21/2029 | 2.6% |
| Uniform Mortgage-Backed Security, TBA, 5.500%, 10/1/2054 | 2.2% |
| Apple, Inc. | 1.8% |
| Microsoft Corp. | 1.6% |
| Bundesrepublik Deutschland Bundesanleihe, 0.000%, 8/15/2031 | 1.6% |
| NVIDIA Corp. | 1.6% |
| Federal National Mortgage Association, 3.000%, 6/1/2052 | 1.4% |
| Brazil Notas do Tesouro Nacional, 10.000%, 1/1/2029 | 1.1% |
| U.K. Gilts, 0.875%, 7/31/2033 | 1.1% |
| Total | 12.6% |
| Footnote | Description |
Footnotea | Excluding cash equivalents. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Global Strategist Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Global Strategist Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class I | $77 | 0.69% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the MSCI All Country World Index:
↓ Overweight U.S. Value stocks vs. U.S. expensive stocks as expensive high-growth stocks outperformed Value stocks on hopes of efficiency gains from increasing artificial intelligence adoption.
↓ Underweight U.S. cyclical stocks vs. U.S. defensive stocks as fears of recession declined.
↓ Overweight VIX Roll Harvesting Strategy as the market volatility declined unexpectedly.
↑ Overweight South African 10-year bonds vs. U.S. 10-year Treasury bonds and South African banks vs. emerging markets equities as our thesis of a recovery in the South African economy materialized.
↑ Directional overweight in U.S. 10-year Treasury inflation-protected securities (TIPS) as investors’ expectations of additional interest rate cuts increased in 2024.
↑ Overweight European Union (EMU) banks vs. EMU equities as our thesis of falling inflation and an economic recovery in the eurozone has played out.
Comparison of the change in value of a $1,000,000 investment for the period indicated.
| Class I | MSCI All Country World Index | Customized MSIM Global Allocation Index |
|---|
| 9/14 | $1,000,000 | $1,000,000 | $1,000,000 |
| 10/14 | $998,823 | $1,007,043 | $1,003,425 |
| 11/14 | $1,006,474 | $1,023,889 | $1,009,482 |
| 12/14 | $990,031 | $1,004,127 | $991,745 |
| 1/15 | $983,780 | $988,432 | $978,754 |
| 2/15 | $1,010,656 | $1,043,460 | $1,010,486 |
| 3/15 | $993,781 | $1,027,288 | $996,167 |
| 4/15 | $1,010,031 | $1,057,098 | $1,019,570 |
| 5/15 | $998,156 | $1,055,718 | $1,012,073 |
| 6/15 | $973,155 | $1,030,863 | $997,434 |
| 7/15 | $980,030 | $1,039,816 | $997,744 |
| 8/15 | $938,154 | $968,536 | $956,665 |
| 9/15 | $911,278 | $933,447 | $935,799 |
| 10/15 | $954,405 | $1,006,706 | $980,760 |
| 11/15 | $943,154 | $998,395 | $967,473 |
| 12/15 | $929,165 | $980,390 | $956,922 |
| 1/16 | $902,260 | $921,262 | $923,667 |
| 2/16 | $894,752 | $914,921 | $925,815 |
| 3/16 | $950,439 | $982,726 | $975,782 |
| 4/16 | $966,708 | $997,232 | $991,566 |
| 5/16 | $958,573 | $998,492 | $988,530 |
| 6/16 | $952,942 | $992,443 | $994,157 |
| 7/16 | $978,596 | $1,035,214 | $1,018,976 |
| 8/16 | $983,601 | $1,038,695 | $1,018,817 |
| 9/16 | $987,981 | $1,045,061 | $1,025,568 |
| 10/16 | $967,959 | $1,027,323 | $1,006,695 |
| 11/16 | $966,082 | $1,035,131 | $1,000,028 |
| 12/16 | $980,985 | $1,057,491 | $1,012,472 |
| 1/17 | $997,440 | $1,086,406 | $1,033,277 |
| 2/17 | $1,011,996 | $1,116,881 | $1,052,489 |
| 3/17 | $1,025,920 | $1,130,545 | $1,059,110 |
| 4/17 | $1,043,641 | $1,148,164 | $1,072,165 |
| 5/17 | $1,062,628 | $1,173,519 | $1,091,002 |
| 6/17 | $1,068,324 | $1,178,855 | $1,093,596 |
| 7/17 | $1,087,944 | $1,211,800 | $1,119,288 |
| 8/17 | $1,091,108 | $1,216,443 | $1,126,296 |
| 9/17 | $1,106,298 | $1,239,945 | $1,135,294 |
| 10/17 | $1,117,690 | $1,265,692 | $1,147,721 |
| 11/17 | $1,134,145 | $1,290,194 | $1,166,150 |
| 12/17 | $1,144,540 | $1,310,994 | $1,179,046 |
| 1/18 | $1,182,309 | $1,384,956 | $1,224,577 |
| 2/18 | $1,150,610 | $1,326,790 | $1,189,373 |
| 3/18 | $1,149,261 | $1,298,388 | $1,179,160 |
| 4/18 | $1,146,563 | $1,310,787 | $1,178,362 |
| 5/18 | $1,135,097 | $1,312,423 | $1,175,669 |
| 6/18 | $1,131,051 | $1,305,316 | $1,169,758 |
| 7/18 | $1,151,959 | $1,344,680 | $1,190,143 |
| 8/18 | $1,147,912 | $1,355,245 | $1,196,252 |
| 9/18 | $1,149,935 | $1,361,143 | $1,195,251 |
| 10/18 | $1,098,003 | $1,259,140 | $1,136,168 |
| 11/18 | $1,110,143 | $1,277,556 | $1,147,559 |
| 12/18 | $1,072,511 | $1,187,572 | $1,108,343 |
| 1/19 | $1,133,511 | $1,281,342 | $1,167,602 |
| 2/19 | $1,146,637 | $1,315,614 | $1,183,651 |
| 3/19 | $1,159,764 | $1,332,159 | $1,198,510 |
| 4/19 | $1,182,156 | $1,377,141 | $1,221,372 |
| 5/19 | $1,145,865 | $1,295,450 | $1,184,517 |
| 6/19 | $1,199,915 | $1,380,276 | $1,241,559 |
| 7/19 | $1,194,510 | $1,384,320 | $1,242,362 |
| 8/19 | $1,180,612 | $1,351,481 | $1,234,784 |
| 9/19 | $1,192,966 | $1,379,918 | $1,245,349 |
| 10/19 | $1,216,903 | $1,417,685 | $1,269,117 |
| 11/19 | $1,230,801 | $1,452,292 | $1,283,856 |
| 12/19 | $1,266,034 | $1,503,435 | $1,313,977 |
| 1/20 | $1,244,030 | $1,486,828 | $1,311,978 |
| 2/20 | $1,176,445 | $1,366,737 | $1,251,927 |
| 3/20 | $1,044,419 | $1,182,223 | $1,139,298 |
| 4/20 | $1,125,364 | $1,308,869 | $1,221,474 |
| 5/20 | $1,162,300 | $1,365,793 | $1,255,491 |
| 6/20 | $1,189,805 | $1,409,434 | $1,284,022 |
| 7/20 | $1,243,244 | $1,483,974 | $1,341,148 |
| 8/20 | $1,289,610 | $1,574,801 | $1,389,581 |
| 9/20 | $1,263,677 | $1,524,025 | $1,360,699 |
| 10/20 | $1,246,388 | $1,486,978 | $1,341,373 |
| 11/20 | $1,362,696 | $1,670,267 | $1,450,334 |
| 12/20 | $1,412,024 | $1,747,816 | $1,498,530 |
| 1/21 | $1,409,635 | $1,739,867 | $1,489,161 |
| 2/21 | $1,434,323 | $1,780,169 | $1,499,605 |
| 3/21 | $1,454,233 | $1,827,716 | $1,512,098 |
| 4/21 | $1,494,850 | $1,907,628 | $1,559,406 |
| 5/21 | $1,529,095 | $1,937,315 | $1,579,825 |
| 6/21 | $1,513,167 | $1,962,844 | $1,586,741 |
| 7/21 | $1,517,946 | $1,976,370 | $1,601,749 |
| 8/21 | $1,531,484 | $2,025,837 | $1,623,139 |
| 9/21 | $1,492,461 | $1,942,150 | $1,571,372 |
| 10/21 | $1,523,520 | $2,041,284 | $1,617,977 |
| 11/21 | $1,497,239 | $1,992,129 | $1,592,707 |
| 12/21 | $1,534,559 | $2,071,815 | $1,630,043 |
| 1/22 | $1,498,432 | $1,970,063 | $1,568,648 |
| 2/22 | $1,470,906 | $1,919,182 | $1,536,882 |
| 3/22 | $1,463,164 | $1,960,750 | $1,538,133 |
| 4/22 | $1,361,663 | $1,803,808 | $1,430,556 |
| 5/22 | $1,381,447 | $1,805,919 | $1,433,122 |
| 6/22 | $1,272,205 | $1,653,686 | $1,342,244 |
| 7/22 | $1,332,417 | $1,769,167 | $1,409,897 |
| 8/22 | $1,273,925 | $1,704,036 | $1,356,499 |
| 9/22 | $1,168,123 | $1,540,910 | $1,250,706 |
| 10/22 | $1,211,132 | $1,633,899 | $1,292,552 |
| 11/22 | $1,303,171 | $1,760,630 | $1,377,036 |
| 12/22 | $1,278,143 | $1,691,347 | $1,347,502 |
| 1/23 | $1,360,353 | $1,812,578 | $1,423,148 |
| 2/23 | $1,309,297 | $1,760,629 | $1,379,751 |
| 3/23 | $1,341,315 | $1,814,914 | $1,422,727 |
| 4/23 | $1,349,103 | $1,840,999 | $1,437,508 |
| 5/23 | $1,324,008 | $1,821,281 | $1,417,030 |
| 6/23 | $1,373,333 | $1,927,026 | $1,466,350 |
| 7/23 | $1,411,410 | $1,997,570 | $1,502,620 |
| 8/23 | $1,378,526 | $1,941,751 | $1,469,204 |
| 9/23 | $1,328,335 | $1,861,458 | $1,415,584 |
| 10/23 | $1,299,778 | $1,805,489 | $1,383,279 |
| 11/23 | $1,396,698 | $1,972,129 | $1,487,783 |
| 12/23 | $1,460,735 | $2,066,858 | $1,555,395 |
| 1/24 | $1,450,351 | $2,078,974 | $1,552,281 |
| 2/24 | $1,472,850 | $2,168,190 | $1,584,446 |
| 3/24 | $1,504,869 | $2,236,264 | $1,617,783 |
| 4/24 | $1,459,870 | $2,162,483 | $1,569,427 |
| 5/24 | $1,510,061 | $2,250,309 | $1,615,898 |
| 6/24 | $1,524,772 | $2,300,429 | $1,638,419 |
| 7/24 | $1,563,714 | $2,337,529 | $1,672,371 |
| 8/24 | $1,595,732 | $2,396,894 | $1,713,682 |
| 9/24 | $1,625,155 | $2,452,576 | $1,749,234 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 22.35% | 6.38% | 4.98% |
| MSCI All Country World Index | 31.76% | 12.19% | 9.39% |
Customized MSIM Global Allocation IndexFootnote Reference1 | 23.57% | 7.03% | 5.75% |
| Footnote | Description |
Footnote1 | The Customized MSIM Global Allocation Index is a performance linked benchmark comprised of 60% MSCI All Country World Index and 40% Bloomberg Global Aggregate Index for periods after May 31, 2017. Prior to May 31, 2017, the Customized MSIM Global Allocation Index consisted of 60% MSCI All Country World Index, 30% Bloomberg Global Aggregate Index, 5% S&P GSCI Light Energy Index and 5% ICE BofA U.S. Dollar 1-Month LIBID Average Index. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $614,052,374 |
| # of Portfolio Holdings | 1,531 |
| Portfolio Turnover Rate | 93% |
| Total Advisory Fees Paid | $2,496,863 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Country Allocation (% of total investments)
| Value | Value |
|---|
| Other | 10.1% |
| Australia | 1.9% |
| South Africa | 2.0% |
| Spain | 2.1% |
| Japan | 2.1% |
| China | 2.9% |
| Canada | 3.4% |
| France | 3.8% |
| United Kingdom | 3.8% |
| Germany | 3.8% |
| United States | 64.1% |
Top Ten Holdings (% of total investments)Footnote Referencea
| U.S. Treasury Securities | 6.9% |
| China Government Bonds, 3.130%, 11/21/2029 | 2.6% |
| Uniform Mortgage-Backed Security, TBA, 5.500%, 10/1/2054 | 2.2% |
| Apple, Inc. | 1.8% |
| Microsoft Corp. | 1.6% |
| Bundesrepublik Deutschland Bundesanleihe, 0.000%, 8/15/2031 | 1.6% |
| NVIDIA Corp. | 1.6% |
| Federal National Mortgage Association, 3.000%, 6/1/2052 | 1.4% |
| Brazil Notas do Tesouro Nacional, 10.000%, 1/1/2029 | 1.1% |
| U.K. Gilts, 0.875%, 7/31/2033 | 1.1% |
| Total | 12.6% |
| Footnote | Description |
Footnotea | Excluding cash equivalents. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Global Strategist Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Global Strategist Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class L | $164 | 1.48% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the MSCI All Country World Index:
↓ Overweight U.S. Value stocks vs. U.S. expensive stocks as expensive high-growth stocks outperformed Value stocks on hopes of efficiency gains from increasing artificial intelligence adoption.
↓ Underweight U.S. cyclical stocks vs. U.S. defensive stocks as fears of recession declined.
↓ Overweight VIX Roll Harvesting Strategy as the market volatility declined unexpectedly.
↑ Overweight South African 10-year bonds vs. U.S. 10-year Treasury bonds and South African banks vs. emerging markets equities as our thesis of a recovery in the South African economy materialized.
↑ Directional overweight in U.S. 10-year Treasury inflation-protected securities (TIPS) as investors’ expectations of additional interest rate cuts increased in 2024.
↑ Overweight European Union (EMU) banks vs. EMU equities as our thesis of falling inflation and an economic recovery in the eurozone has played out.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class L | MSCI All Country World Index | Customized MSIM Global Allocation Index |
|---|
| 9/14 | $10,000 | $10,000 | $10,000 |
| 10/14 | $9,982 | $10,070 | $10,034 |
| 11/14 | $10,048 | $10,239 | $10,095 |
| 12/14 | $9,881 | $10,041 | $9,917 |
| 1/15 | $9,805 | $9,884 | $9,788 |
| 2/15 | $10,075 | $10,435 | $10,105 |
| 3/15 | $9,893 | $10,273 | $9,962 |
| 4/15 | $10,050 | $10,571 | $10,196 |
| 5/15 | $9,925 | $10,557 | $10,121 |
| 6/15 | $9,667 | $10,309 | $9,974 |
| 7/15 | $9,730 | $10,398 | $9,977 |
| 8/15 | $9,310 | $9,685 | $9,567 |
| 9/15 | $9,034 | $9,334 | $9,358 |
| 10/15 | $9,454 | $10,067 | $9,808 |
| 11/15 | $9,335 | $9,984 | $9,675 |
| 12/15 | $9,189 | $9,804 | $9,569 |
| 1/16 | $8,919 | $9,213 | $9,237 |
| 2/16 | $8,843 | $9,149 | $9,258 |
| 3/16 | $9,383 | $9,827 | $9,758 |
| 4/16 | $9,534 | $9,972 | $9,916 |
| 5/16 | $9,452 | $9,985 | $9,885 |
| 6/16 | $9,383 | $9,924 | $9,942 |
| 7/16 | $9,634 | $10,352 | $10,190 |
| 8/16 | $9,672 | $10,387 | $10,188 |
| 9/16 | $9,710 | $10,451 | $10,256 |
| 10/16 | $9,509 | $10,273 | $10,067 |
| 11/16 | $9,484 | $10,351 | $10,000 |
| 12/16 | $9,628 | $10,575 | $10,125 |
| 1/17 | $9,779 | $10,864 | $10,333 |
| 2/17 | $9,917 | $11,169 | $10,525 |
| 3/17 | $10,043 | $11,305 | $10,591 |
| 4/17 | $10,212 | $11,482 | $10,722 |
| 5/17 | $10,389 | $11,735 | $10,910 |
| 6/17 | $10,439 | $11,789 | $10,936 |
| 7/17 | $10,621 | $12,118 | $11,193 |
| 8/17 | $10,640 | $12,164 | $11,263 |
| 9/17 | $10,785 | $12,399 | $11,353 |
| 10/17 | $10,892 | $12,657 | $11,477 |
| 11/17 | $11,036 | $12,902 | $11,661 |
| 12/17 | $11,129 | $13,110 | $11,790 |
| 1/18 | $11,488 | $13,850 | $12,246 |
| 2/18 | $11,175 | $13,268 | $11,894 |
| 3/18 | $11,155 | $12,984 | $11,792 |
| 4/18 | $11,129 | $13,108 | $11,784 |
| 5/18 | $11,009 | $13,124 | $11,757 |
| 6/18 | $10,962 | $13,053 | $11,698 |
| 7/18 | $11,155 | $13,447 | $11,901 |
| 8/18 | $11,109 | $13,552 | $11,963 |
| 9/18 | $11,122 | $13,611 | $11,953 |
| 10/18 | $10,610 | $12,591 | $11,362 |
| 11/18 | $10,723 | $12,776 | $11,476 |
| 12/18 | $10,354 | $11,876 | $11,083 |
| 1/19 | $10,935 | $12,813 | $11,676 |
| 2/19 | $11,049 | $13,156 | $11,837 |
| 3/19 | $11,169 | $13,322 | $11,985 |
| 4/19 | $11,373 | $13,771 | $12,214 |
| 5/19 | $11,026 | $12,954 | $11,845 |
| 6/19 | $11,532 | $13,803 | $12,416 |
| 7/19 | $11,479 | $13,843 | $12,424 |
| 8/19 | $11,335 | $13,515 | $12,348 |
| 9/19 | $11,441 | $13,799 | $12,453 |
| 10/19 | $11,668 | $14,177 | $12,691 |
| 11/19 | $11,789 | $14,523 | $12,839 |
| 12/19 | $12,117 | $15,034 | $13,140 |
| 1/20 | $11,895 | $14,868 | $13,120 |
| 2/20 | $11,243 | $13,667 | $12,519 |
| 3/20 | $9,984 | $11,822 | $11,393 |
| 4/20 | $10,744 | $13,089 | $12,215 |
| 5/20 | $11,089 | $13,658 | $12,555 |
| 6/20 | $11,342 | $14,094 | $12,840 |
| 7/20 | $11,841 | $14,840 | $13,411 |
| 8/20 | $12,279 | $15,748 | $13,896 |
| 9/20 | $12,025 | $15,240 | $13,607 |
| 10/20 | $11,849 | $14,870 | $13,414 |
| 11/20 | $12,946 | $16,703 | $14,503 |
| 12/20 | $13,409 | $17,478 | $14,985 |
| 1/21 | $13,370 | $17,399 | $14,892 |
| 2/21 | $13,602 | $17,802 | $14,996 |
| 3/21 | $13,779 | $18,277 | $15,121 |
| 4/21 | $14,150 | $19,076 | $15,594 |
| 5/21 | $14,474 | $19,373 | $15,798 |
| 6/21 | $14,312 | $19,628 | $15,867 |
| 7/21 | $14,343 | $19,764 | $16,017 |
| 8/21 | $14,459 | $20,258 | $16,231 |
| 9/21 | $14,081 | $19,421 | $15,714 |
| 10/21 | $14,366 | $20,413 | $16,180 |
| 11/21 | $14,111 | $19,921 | $15,927 |
| 12/21 | $14,446 | $20,718 | $16,300 |
| 1/22 | $14,098 | $19,701 | $15,686 |
| 2/22 | $13,832 | $19,192 | $15,369 |
| 3/22 | $13,749 | $19,607 | $15,381 |
| 4/22 | $12,787 | $18,038 | $14,306 |
| 5/22 | $12,961 | $18,059 | $14,331 |
| 6/22 | $11,932 | $16,537 | $13,422 |
| 7/22 | $12,488 | $17,692 | $14,099 |
| 8/22 | $11,924 | $17,040 | $13,565 |
| 9/22 | $10,936 | $15,409 | $12,507 |
| 10/22 | $11,326 | $16,339 | $12,926 |
| 11/22 | $12,181 | $17,606 | $13,770 |
| 12/22 | $11,932 | $16,913 | $13,475 |
| 1/23 | $12,690 | $18,126 | $14,231 |
| 2/23 | $12,207 | $17,606 | $13,798 |
| 3/23 | $12,499 | $18,149 | $14,227 |
| 4/23 | $12,565 | $18,410 | $14,375 |
| 5/23 | $12,324 | $18,213 | $14,170 |
| 6/23 | $12,774 | $19,270 | $14,663 |
| 7/23 | $13,115 | $19,976 | $15,026 |
| 8/23 | $12,807 | $19,418 | $14,692 |
| 9/23 | $12,324 | $18,615 | $14,156 |
| 10/23 | $12,057 | $18,055 | $13,833 |
| 11/23 | $12,949 | $19,721 | $14,878 |
| 12/23 | $13,524 | $20,669 | $15,554 |
| 1/24 | $13,424 | $20,790 | $15,523 |
| 2/24 | $13,624 | $21,682 | $15,844 |
| 3/24 | $13,907 | $22,363 | $16,178 |
| 4/24 | $13,490 | $21,625 | $15,694 |
| 5/24 | $13,940 | $22,503 | $16,159 |
| 6/24 | $14,065 | $23,004 | $16,384 |
| 7/24 | $14,415 | $23,375 | $16,724 |
| 8/24 | $14,699 | $23,969 | $17,137 |
| 9/24 | $14,965 | $24,526 | $17,492 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class L | 21.43% | 5.52% | 4.11% |
| MSCI All Country World Index | 31.76% | 12.19% | 9.39% |
Customized MSIM Global Allocation IndexFootnote Reference1 | 23.57% | 7.03% | 5.75% |
| Footnote | Description |
Footnote1 | The Customized MSIM Global Allocation Index is a performance linked benchmark comprised of 60% MSCI All Country World Index and 40% Bloomberg Global Aggregate Index for periods after May 31, 2017. Prior to May 31, 2017, the Customized MSIM Global Allocation Index consisted of 60% MSCI All Country World Index, 30% Bloomberg Global Aggregate Index, 5% S&P GSCI Light Energy Index and 5% ICE BofA U.S. Dollar 1-Month LIBID Average Index. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $614,052,374 |
| # of Portfolio Holdings | 1,531 |
| Portfolio Turnover Rate | 93% |
| Total Advisory Fees Paid | $2,496,863 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Country Allocation (% of total investments)
| Value | Value |
|---|
| Other | 10.1% |
| Australia | 1.9% |
| South Africa | 2.0% |
| Spain | 2.1% |
| Japan | 2.1% |
| China | 2.9% |
| Canada | 3.4% |
| France | 3.8% |
| United Kingdom | 3.8% |
| Germany | 3.8% |
| United States | 64.1% |
Top Ten Holdings (% of total investments)Footnote Referencea
| U.S. Treasury Securities | 6.9% |
| China Government Bonds, 3.130%, 11/21/2029 | 2.6% |
| Uniform Mortgage-Backed Security, TBA, 5.500%, 10/1/2054 | 2.2% |
| Apple, Inc. | 1.8% |
| Microsoft Corp. | 1.6% |
| Bundesrepublik Deutschland Bundesanleihe, 0.000%, 8/15/2031 | 1.6% |
| NVIDIA Corp. | 1.6% |
| Federal National Mortgage Association, 3.000%, 6/1/2052 | 1.4% |
| Brazil Notas do Tesouro Nacional, 10.000%, 1/1/2029 | 1.1% |
| U.K. Gilts, 0.875%, 7/31/2033 | 1.1% |
| Total | 12.6% |
| Footnote | Description |
Footnotea | Excluding cash equivalents. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Global Strategist Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Global Strategist Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $70 | 0.63% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the MSCI All Country World Index:
↓ Overweight U.S. Value stocks vs. U.S. expensive stocks as expensive high-growth stocks outperformed Value stocks on hopes of efficiency gains from increasing artificial intelligence adoption.
↓ Underweight U.S. cyclical stocks vs. U.S. defensive stocks as fears of recession declined.
↓ Overweight VIX Roll Harvesting Strategy as the market volatility declined unexpectedly.
↑ Overweight South African 10-year bonds vs. U.S. 10-year Treasury bonds and South African banks vs. emerging markets equities as our thesis of a recovery in the South African economy materialized.
↑ Directional overweight in U.S. 10-year Treasury inflation-protected securities (TIPS) as investors’ expectations of additional interest rate cuts increased in 2024.
↑ Overweight European Union (EMU) banks vs. EMU equities as our thesis of falling inflation and an economic recovery in the eurozone has played out.
Comparison of the change in value of a $5,000,000 investment for the period indicated.
| Class R6 | MSCI All Country World Index | Customized MSIM Global Allocation Index |
|---|
| 5/15 | $5,000,000 | $5,000,000 | $5,000,000 |
| 5/15 | $5,000,000 | $5,000,000 | $5,000,000 |
| 6/15 | $4,874,765 | $4,882,284 | $4,927,682 |
| 7/15 | $4,909,205 | $4,924,685 | $4,929,213 |
| 8/15 | $4,699,436 | $4,587,095 | $4,726,265 |
| 9/15 | $4,564,809 | $4,420,911 | $4,623,182 |
| 10/15 | $4,780,839 | $4,767,871 | $4,845,307 |
| 11/15 | $4,727,614 | $4,728,507 | $4,779,665 |
| 12/15 | $4,657,545 | $4,643,238 | $4,727,538 |
| 1/16 | $4,522,771 | $4,363,201 | $4,563,245 |
| 2/16 | $4,485,159 | $4,333,168 | $4,573,857 |
| 3/16 | $4,764,110 | $4,654,298 | $4,820,711 |
| 4/16 | $4,845,602 | $4,723,000 | $4,898,690 |
| 5/16 | $4,804,856 | $4,728,968 | $4,883,689 |
| 6/16 | $4,776,648 | $4,700,321 | $4,911,490 |
| 7/16 | $4,908,287 | $4,902,888 | $5,034,104 |
| 8/16 | $4,930,227 | $4,919,376 | $5,033,320 |
| 9/16 | $4,949,033 | $4,949,525 | $5,066,672 |
| 10/16 | $4,851,870 | $4,865,518 | $4,973,431 |
| 11/16 | $4,842,468 | $4,902,494 | $4,940,495 |
| 12/16 | $4,918,801 | $5,008,396 | $5,001,974 |
| 1/17 | $4,998,085 | $5,145,341 | $5,104,760 |
| 2/17 | $5,074,198 | $5,289,675 | $5,199,671 |
| 3/17 | $5,140,797 | $5,354,386 | $5,232,381 |
| 4/17 | $5,232,767 | $5,437,832 | $5,296,877 |
| 5/17 | $5,327,908 | $5,557,915 | $5,389,941 |
| 6/17 | $5,356,451 | $5,583,190 | $5,402,755 |
| 7/17 | $5,454,763 | $5,739,221 | $5,529,683 |
| 8/17 | $5,470,620 | $5,761,209 | $5,564,306 |
| 9/17 | $5,546,733 | $5,872,515 | $5,608,759 |
| 10/17 | $5,603,818 | $5,994,460 | $5,670,151 |
| 11/17 | $5,686,274 | $6,110,502 | $5,761,197 |
| 12/17 | $5,736,809 | $6,209,014 | $5,824,910 |
| 1/18 | $5,926,120 | $6,559,305 | $6,049,849 |
| 2/18 | $5,770,615 | $6,283,826 | $5,875,926 |
| 3/18 | $5,760,473 | $6,149,310 | $5,825,473 |
| 4/18 | $5,750,331 | $6,208,033 | $5,821,528 |
| 5/18 | $5,692,862 | $6,215,784 | $5,808,226 |
| 6/18 | $5,672,578 | $6,182,123 | $5,779,023 |
| 7/18 | $5,773,995 | $6,368,555 | $5,879,730 |
| 8/18 | $5,757,092 | $6,418,589 | $5,909,913 |
| 9/18 | $5,767,234 | $6,446,524 | $5,904,968 |
| 10/18 | $5,506,931 | $5,963,429 | $5,613,076 |
| 11/18 | $5,567,781 | $6,050,646 | $5,669,353 |
| 12/18 | $5,380,915 | $5,624,472 | $5,475,612 |
| 1/19 | $5,686,737 | $6,068,578 | $5,768,369 |
| 2/19 | $5,748,676 | $6,230,895 | $5,847,661 |
| 3/19 | $5,818,356 | $6,309,255 | $5,921,069 |
| 4/19 | $5,930,620 | $6,522,291 | $6,034,013 |
| 5/19 | $5,752,547 | $6,135,395 | $5,851,937 |
| 6/19 | $6,023,528 | $6,537,138 | $6,133,746 |
| 7/19 | $5,996,430 | $6,556,293 | $6,137,712 |
| 8/19 | $5,926,749 | $6,400,763 | $6,100,275 |
| 9/19 | $5,984,816 | $6,535,445 | $6,152,471 |
| 10/19 | $6,108,694 | $6,714,311 | $6,269,890 |
| 11/19 | $6,178,375 | $6,878,218 | $6,342,707 |
| 12/19 | $6,353,057 | $7,120,436 | $6,491,518 |
| 1/20 | $6,242,706 | $7,041,784 | $6,481,641 |
| 2/20 | $5,903,771 | $6,473,020 | $6,184,966 |
| 3/20 | $5,245,607 | $5,599,141 | $5,628,538 |
| 4/20 | $5,651,540 | $6,198,949 | $6,034,516 |
| 5/20 | $5,836,772 | $6,468,548 | $6,202,573 |
| 6/20 | $5,970,770 | $6,675,234 | $6,343,528 |
| 7/20 | $6,238,765 | $7,028,268 | $6,625,749 |
| 8/20 | $6,471,290 | $7,458,434 | $6,865,026 |
| 9/20 | $6,345,174 | $7,217,950 | $6,722,339 |
| 10/20 | $6,254,529 | $7,042,492 | $6,626,864 |
| 11/20 | $6,841,753 | $7,910,570 | $7,165,169 |
| 12/20 | $7,087,967 | $8,277,853 | $7,403,272 |
| 1/21 | $7,075,980 | $8,240,205 | $7,356,989 |
| 2/21 | $7,199,840 | $8,431,077 | $7,408,583 |
| 3/21 | $7,299,727 | $8,656,265 | $7,470,303 |
| 4/21 | $7,503,496 | $9,034,739 | $7,704,024 |
| 5/21 | $7,679,297 | $9,175,341 | $7,804,902 |
| 6/21 | $7,599,387 | $9,296,248 | $7,839,067 |
| 7/21 | $7,619,365 | $9,360,306 | $7,913,213 |
| 8/21 | $7,691,283 | $9,594,588 | $8,018,888 |
| 9/21 | $7,491,510 | $9,198,238 | $7,763,137 |
| 10/21 | $7,651,328 | $9,667,749 | $7,993,386 |
| 11/21 | $7,519,478 | $9,434,945 | $7,868,543 |
| 12/21 | $7,702,778 | $9,812,347 | $8,052,997 |
| 1/22 | $7,525,752 | $9,330,439 | $7,749,682 |
| 2/22 | $7,383,268 | $9,089,460 | $7,592,746 |
| 3/22 | $7,344,408 | $9,286,329 | $7,598,929 |
| 4/22 | $6,834,920 | $8,543,034 | $7,067,456 |
| 5/22 | $6,934,227 | $8,553,032 | $7,080,135 |
| 6/22 | $6,390,197 | $7,832,042 | $6,631,163 |
| 7/22 | $6,692,436 | $8,378,973 | $6,965,395 |
| 8/22 | $6,394,514 | $8,070,502 | $6,701,591 |
| 9/22 | $5,867,755 | $7,297,919 | $6,178,937 |
| 10/22 | $6,083,640 | $7,738,327 | $6,385,667 |
| 11/22 | $6,545,634 | $8,338,537 | $6,803,050 |
| 12/22 | $6,416,388 | $8,010,408 | $6,657,142 |
| 1/23 | $6,829,088 | $8,584,569 | $7,030,858 |
| 2/23 | $6,577,124 | $8,338,535 | $6,816,462 |
| 3/23 | $6,737,859 | $8,595,634 | $7,028,782 |
| 4/23 | $6,776,957 | $8,719,175 | $7,101,802 |
| 5/23 | $6,650,975 | $8,625,788 | $7,000,634 |
| 6/23 | $6,898,595 | $9,126,609 | $7,244,292 |
| 7/23 | $7,089,740 | $9,460,716 | $7,423,478 |
| 8/23 | $6,924,660 | $9,196,346 | $7,258,392 |
| 9/23 | $6,668,352 | $8,816,070 | $6,993,492 |
| 10/23 | $6,529,338 | $8,550,998 | $6,833,892 |
| 11/23 | $7,015,888 | $9,340,220 | $7,350,178 |
| 12/23 | $7,337,359 | $9,788,868 | $7,684,206 |
| 1/24 | $7,285,229 | $9,846,253 | $7,668,823 |
| 2/24 | $7,402,522 | $10,268,788 | $7,827,729 |
| 3/24 | $7,558,914 | $10,591,196 | $7,992,426 |
| 4/24 | $7,337,359 | $10,241,761 | $7,753,529 |
| 5/24 | $7,589,323 | $10,657,716 | $7,983,114 |
| 6/24 | $7,663,175 | $10,895,086 | $8,094,378 |
| 7/24 | $7,858,664 | $11,070,796 | $8,262,110 |
| 8/24 | $8,019,399 | $11,351,956 | $8,466,199 |
| 9/24 | $8,167,102 | $11,615,674 | $8,641,840 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | Since 5/29/15 (Inception) |
|---|
| Class R6 | 22.48% | 6.42% | 5.39% |
| MSCI All Country World Index | 31.76% | 12.19% | 9.45% |
Customized MSIM Global Allocation IndexFootnote Reference1 | 23.57% | 7.03% | 6.03% |
| Footnote | Description |
Footnote1 | The Customized MSIM Global Allocation Index is a performance linked benchmark comprised of 60% MSCI All Country World Index and 40% Bloomberg Global Aggregate Index for periods after May 31, 2017. Prior to May 31, 2017, the Customized MSIM Global Allocation Index consisted of 60% MSCI All Country World Index, 30% Bloomberg Global Aggregate Index, 5% S&P GSCI Light Energy Index and 5% ICE BofA U.S. Dollar 1-Month LIBID Average Index. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $614,052,374 |
| # of Portfolio Holdings | 1,531 |
| Portfolio Turnover Rate | 93% |
| Total Advisory Fees Paid | $2,496,863 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Country Allocation (% of total investments)
| Value | Value |
|---|
| Other | 10.1% |
| Australia | 1.9% |
| South Africa | 2.0% |
| Spain | 2.1% |
| Japan | 2.1% |
| China | 2.9% |
| Canada | 3.4% |
| France | 3.8% |
| United Kingdom | 3.8% |
| Germany | 3.8% |
| United States | 64.1% |
Top Ten Holdings (% of total investments)Footnote Referencea
| U.S. Treasury Securities | 6.9% |
| China Government Bonds, 3.130%, 11/21/2029 | 2.6% |
| Uniform Mortgage-Backed Security, TBA, 5.500%, 10/1/2054 | 2.2% |
| Apple, Inc. | 1.8% |
| Microsoft Corp. | 1.6% |
| Bundesrepublik Deutschland Bundesanleihe, 0.000%, 8/15/2031 | 1.6% |
| NVIDIA Corp. | 1.6% |
| Federal National Mortgage Association, 3.000%, 6/1/2052 | 1.4% |
| Brazil Notas do Tesouro Nacional, 10.000%, 1/1/2029 | 1.1% |
| U.K. Gilts, 0.875%, 7/31/2033 | 1.1% |
| Total | 12.6% |
| Footnote | Description |
Footnotea | Excluding cash equivalents. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - High Yield Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - High Yield Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $101 | 0.94% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Bloomberg U.S. Corporate High Yield Index:
↑ Credit selection in the technology sector, which was favorable.
↑ Sound credit selection in the metals & mining sector helped relative performance.
↑ Underweight exposure in BB-rated bonds, which underperformed.
↓ A modest cash position detracted as the U.S. high yield market performed well.
↓ Bonds rated CCC and below, where credit selection was challenging.
↓ Chemicals sector, where credit selection was challenging.
↓ Credit selection and an underweight position in the wirelines sector, which outperformed.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class A with maximum sales charge | Bloomberg U.S. Universal Index | Bloomberg U.S. Corporate High Yield Index |
|---|
| 9/14 | $9,675 | $10,000 | $10,000 |
| 10/14 | $9,675 | $10,098 | $10,119 |
| 11/14 | $9,539 | $10,152 | $10,045 |
| 12/14 | $9,315 | $10,134 | $9,900 |
| 1/15 | $9,343 | $10,327 | $9,965 |
| 2/15 | $9,604 | $10,267 | $10,205 |
| 3/15 | $9,613 | $10,309 | $10,149 |
| 4/15 | $9,779 | $10,297 | $10,272 |
| 5/15 | $9,854 | $10,279 | $10,303 |
| 6/15 | $9,769 | $10,164 | $10,150 |
| 7/15 | $9,720 | $10,224 | $10,091 |
| 8/15 | $9,595 | $10,194 | $9,915 |
| 9/15 | $9,440 | $10,233 | $9,657 |
| 10/15 | $9,595 | $10,266 | $9,922 |
| 11/15 | $9,459 | $10,229 | $9,702 |
| 12/15 | $9,122 | $10,178 | $9,457 |
| 1/16 | $8,924 | $10,290 | $9,305 |
| 2/16 | $8,943 | $10,363 | $9,359 |
| 3/16 | $9,283 | $10,490 | $9,775 |
| 4/16 | $9,544 | $10,562 | $10,157 |
| 5/16 | $9,615 | $10,570 | $10,220 |
| 6/16 | $9,655 | $10,756 | $10,314 |
| 7/16 | $9,941 | $10,844 | $10,593 |
| 8/16 | $10,157 | $10,856 | $10,815 |
| 9/16 | $10,218 | $10,859 | $10,887 |
| 10/16 | $10,280 | $10,787 | $10,929 |
| 11/16 | $10,311 | $10,544 | $10,877 |
| 12/16 | $10,489 | $10,576 | $11,077 |
| 1/17 | $10,637 | $10,613 | $11,238 |
| 2/17 | $10,753 | $10,695 | $11,402 |
| 3/17 | $10,721 | $10,691 | $11,377 |
| 4/17 | $10,838 | $10,780 | $11,508 |
| 5/17 | $10,914 | $10,863 | $11,608 |
| 6/17 | $10,902 | $10,854 | $11,624 |
| 7/17 | $11,032 | $10,908 | $11,752 |
| 8/17 | $11,021 | $11,002 | $11,748 |
| 9/17 | $11,141 | $10,963 | $11,853 |
| 10/17 | $11,240 | $10,976 | $11,903 |
| 11/17 | $11,262 | $10,960 | $11,873 |
| 12/17 | $11,303 | $11,008 | $11,909 |
| 1/18 | $11,416 | $10,902 | $11,980 |
| 2/18 | $11,336 | $10,799 | $11,878 |
| 3/18 | $11,313 | $10,853 | $11,807 |
| 4/18 | $11,370 | $10,781 | $11,883 |
| 5/18 | $11,358 | $10,840 | $11,880 |
| 6/18 | $11,427 | $10,824 | $11,928 |
| 7/18 | $11,508 | $10,847 | $12,058 |
| 8/18 | $11,589 | $10,900 | $12,147 |
| 9/18 | $11,659 | $10,853 | $12,215 |
| 10/18 | $11,453 | $10,763 | $12,019 |
| 11/18 | $11,286 | $10,811 | $11,916 |
| 12/18 | $11,010 | $10,980 | $11,661 |
| 1/19 | $11,453 | $11,132 | $12,188 |
| 2/19 | $11,633 | $11,144 | $12,391 |
| 3/19 | $11,730 | $11,345 | $12,507 |
| 4/19 | $11,924 | $11,361 | $12,685 |
| 5/19 | $11,789 | $11,535 | $12,534 |
| 6/19 | $12,018 | $11,698 | $12,820 |
| 7/19 | $12,052 | $11,733 | $12,892 |
| 8/19 | $12,074 | $11,998 | $12,944 |
| 9/19 | $12,157 | $11,946 | $12,991 |
| 10/19 | $12,192 | $11,985 | $13,027 |
| 11/19 | $12,214 | $11,982 | $13,069 |
| 12/19 | $12,501 | $12,000 | $13,331 |
| 1/20 | $12,539 | $12,216 | $13,334 |
| 2/20 | $12,357 | $12,399 | $13,146 |
| 3/20 | $10,490 | $12,156 | $11,640 |
| 4/20 | $10,770 | $12,400 | $12,164 |
| 5/20 | $11,334 | $12,516 | $12,700 |
| 6/20 | $11,532 | $12,620 | $12,824 |
| 7/20 | $12,020 | $12,842 | $13,425 |
| 8/20 | $12,194 | $12,768 | $13,553 |
| 9/20 | $12,131 | $12,745 | $13,414 |
| 10/20 | $12,207 | $12,699 | $13,482 |
| 11/20 | $12,647 | $12,865 | $14,015 |
| 12/20 | $12,859 | $12,909 | $14,279 |
| 1/21 | $12,913 | $12,828 | $14,326 |
| 2/21 | $12,982 | $12,663 | $14,379 |
| 3/21 | $13,054 | $12,515 | $14,400 |
| 4/21 | $13,179 | $12,621 | $14,557 |
| 5/21 | $13,234 | $12,669 | $14,600 |
| 6/21 | $13,385 | $12,761 | $14,795 |
| 7/21 | $13,384 | $12,889 | $14,852 |
| 8/21 | $13,454 | $12,881 | $14,928 |
| 9/21 | $13,482 | $12,771 | $14,926 |
| 10/21 | $13,440 | $12,760 | $14,901 |
| 11/21 | $13,299 | $12,776 | $14,756 |
| 12/21 | $13,518 | $12,767 | $15,032 |
| 1/22 | $13,263 | $12,487 | $14,621 |
| 2/22 | $13,087 | $12,317 | $14,471 |
| 3/22 | $12,998 | $11,986 | $14,305 |
| 4/22 | $12,577 | $11,539 | $13,797 |
| 5/22 | $12,428 | $11,603 | $13,831 |
| 6/22 | $11,597 | $11,371 | $12,899 |
| 7/22 | $12,180 | $11,657 | $13,661 |
| 8/22 | $11,986 | $11,354 | $13,346 |
| 9/22 | $11,501 | $10,865 | $12,816 |
| 10/22 | $11,825 | $10,745 | $13,149 |
| 11/22 | $11,989 | $11,146 | $13,434 |
| 12/22 | $11,921 | $11,108 | $13,351 |
| 1/23 | $12,386 | $11,453 | $13,859 |
| 2/23 | $12,258 | $11,171 | $13,681 |
| 3/23 | $12,388 | $11,434 | $13,827 |
| 4/23 | $12,503 | $11,503 | $13,965 |
| 5/23 | $12,396 | $11,384 | $13,837 |
| 6/23 | $12,600 | $11,366 | $14,068 |
| 7/23 | $12,821 | $11,378 | $14,263 |
| 8/23 | $12,829 | $11,309 | $14,302 |
| 9/23 | $12,649 | $11,040 | $14,133 |
| 10/23 | $12,437 | $10,874 | $13,968 |
| 11/23 | $12,984 | $11,363 | $14,601 |
| 12/23 | $13,489 | $11,794 | $15,145 |
| 1/24 | $13,569 | $11,766 | $15,145 |
| 2/24 | $13,609 | $11,625 | $15,189 |
| 3/24 | $13,812 | $11,739 | $15,369 |
| 4/24 | $13,691 | $11,465 | $15,224 |
| 5/24 | $13,847 | $11,655 | $15,392 |
| 6/24 | $13,988 | $11,761 | $15,537 |
| 7/24 | $14,146 | $12,028 | $15,839 |
| 8/24 | $14,351 | $12,205 | $16,097 |
| 9/24 | $14,522 | $12,373 | $16,358 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class A | 14.81% | 3.62% | 4.14% |
| Class A with maximum 3.25% sales charge | 11.09% | 2.93% | 3.80% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 2.15% |
| Bloomberg U.S. Corporate High Yield Index | 15.74% | 4.72% | 5.04% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $65,728,163 |
| # of Portfolio Holdings | 220 |
| Portfolio Turnover Rate | 80% |
| Total Advisory Fees Paid | $112,589 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Common Stocks | 0.1% |
| Short-Term Investments | 1.7% |
| Senior Loan Interests | 7.0% |
| Corporate Bonds | 91.2% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 1.7% |
| Not Rated | 2.4% |
| CCC | 16.1% |
| B | 36.3% |
| BB | 40.2% |
| BBB | 3.3% |
| Footnote | Description |
Footnotea | Security ratings disclosed with the exception for those labeled "Not Rated" is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - High Yield Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - High Yield Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $181 | 1.69% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Bloomberg U.S. Corporate High Yield Index:
↑ Credit selection in the technology sector, which was favorable.
↑ Sound credit selection in the metals & mining sector helped relative performance.
↑ Underweight exposure in BB-rated bonds, which underperformed.
↓ A modest cash position detracted as the U.S. high yield market performed well.
↓ Bonds rated CCC and below, where credit selection was challenging.
↓ Chemicals sector, where credit selection was challenging.
↓ Credit selection and an underweight position in the wirelines sector, which outperformed.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class C | Bloomberg U.S. Universal Index | Bloomberg U.S. Corporate High Yield Index |
|---|
| 4/15 | $10,000 | $10,000 | $10,000 |
| 5/15 | $10,070 | $10,000 | $10,000 |
| 6/15 | $9,980 | $9,871 | $9,881 |
| 7/15 | $9,924 | $9,929 | $9,824 |
| 8/15 | $9,791 | $9,899 | $9,652 |
| 9/15 | $9,625 | $9,938 | $9,401 |
| 10/15 | $9,787 | $9,970 | $9,660 |
| 11/15 | $9,631 | $9,933 | $9,445 |
| 12/15 | $9,287 | $9,884 | $9,207 |
| 1/16 | $9,076 | $9,993 | $9,059 |
| 2/16 | $9,090 | $10,064 | $9,111 |
| 3/16 | $9,430 | $10,187 | $9,516 |
| 4/16 | $9,700 | $10,257 | $9,888 |
| 5/16 | $9,756 | $10,265 | $9,949 |
| 6/16 | $9,792 | $10,445 | $10,041 |
| 7/16 | $10,075 | $10,531 | $10,312 |
| 8/16 | $10,288 | $10,543 | $10,528 |
| 9/16 | $10,343 | $10,545 | $10,598 |
| 10/16 | $10,400 | $10,475 | $10,639 |
| 11/16 | $10,425 | $10,240 | $10,589 |
| 12/16 | $10,602 | $10,270 | $10,784 |
| 1/17 | $10,741 | $10,307 | $10,941 |
| 2/17 | $10,852 | $10,386 | $11,100 |
| 3/17 | $10,813 | $10,383 | $11,075 |
| 4/17 | $10,925 | $10,469 | $11,203 |
| 5/17 | $10,994 | $10,550 | $11,301 |
| 6/17 | $10,965 | $10,541 | $11,316 |
| 7/17 | $11,100 | $10,593 | $11,441 |
| 8/17 | $11,082 | $10,684 | $11,437 |
| 9/17 | $11,195 | $10,647 | $11,539 |
| 10/17 | $11,277 | $10,660 | $11,588 |
| 11/17 | $11,292 | $10,644 | $11,559 |
| 12/17 | $11,331 | $10,690 | $11,594 |
| 1/18 | $11,445 | $10,588 | $11,663 |
| 2/18 | $11,347 | $10,487 | $11,564 |
| 3/18 | $11,329 | $10,540 | $11,494 |
| 4/18 | $11,367 | $10,470 | $11,569 |
| 5/18 | $11,360 | $10,527 | $11,566 |
| 6/18 | $11,422 | $10,512 | $11,612 |
| 7/18 | $11,485 | $10,534 | $11,739 |
| 8/18 | $11,571 | $10,585 | $11,825 |
| 9/18 | $11,633 | $10,540 | $11,891 |
| 10/18 | $11,425 | $10,452 | $11,701 |
| 11/18 | $11,252 | $10,499 | $11,600 |
| 12/18 | $10,963 | $10,663 | $11,352 |
| 1/19 | $11,405 | $10,810 | $11,865 |
| 2/19 | $11,577 | $10,822 | $12,063 |
| 3/19 | $11,655 | $11,017 | $12,176 |
| 4/19 | $11,853 | $11,033 | $12,349 |
| 5/19 | $11,712 | $11,202 | $12,202 |
| 6/19 | $11,932 | $11,360 | $12,480 |
| 7/19 | $11,958 | $11,394 | $12,551 |
| 8/19 | $11,959 | $11,652 | $12,601 |
| 9/19 | $12,046 | $11,601 | $12,647 |
| 10/19 | $12,072 | $11,639 | $12,682 |
| 11/19 | $12,085 | $11,637 | $12,723 |
| 12/19 | $12,353 | $11,654 | $12,978 |
| 1/20 | $12,390 | $11,863 | $12,981 |
| 2/20 | $12,202 | $12,041 | $12,798 |
| 3/20 | $10,351 | $11,806 | $11,331 |
| 4/20 | $10,621 | $12,042 | $11,842 |
| 5/20 | $11,176 | $12,155 | $12,364 |
| 6/20 | $11,365 | $12,256 | $12,485 |
| 7/20 | $11,839 | $12,471 | $13,070 |
| 8/20 | $12,004 | $12,399 | $13,194 |
| 9/20 | $11,934 | $12,377 | $13,059 |
| 10/20 | $12,002 | $12,333 | $13,125 |
| 11/20 | $12,414 | $12,494 | $13,644 |
| 12/20 | $12,620 | $12,537 | $13,901 |
| 1/21 | $12,673 | $12,458 | $13,947 |
| 2/21 | $12,734 | $12,297 | $13,998 |
| 3/21 | $12,783 | $12,154 | $14,019 |
| 4/21 | $12,912 | $12,256 | $14,171 |
| 5/21 | $12,944 | $12,303 | $14,213 |
| 6/21 | $13,084 | $12,393 | $14,404 |
| 7/21 | $13,075 | $12,517 | $14,458 |
| 8/21 | $13,133 | $12,509 | $14,533 |
| 9/21 | $13,151 | $12,402 | $14,531 |
| 10/21 | $13,115 | $12,392 | $14,506 |
| 11/21 | $12,955 | $12,407 | $14,365 |
| 12/21 | $13,179 | $12,399 | $14,634 |
| 1/22 | $12,902 | $12,127 | $14,234 |
| 2/22 | $12,737 | $11,961 | $14,088 |
| 3/22 | $12,642 | $11,640 | $13,927 |
| 4/22 | $12,211 | $11,206 | $13,431 |
| 5/22 | $12,059 | $11,268 | $13,464 |
| 6/22 | $11,258 | $11,043 | $12,558 |
| 7/22 | $11,817 | $11,320 | $13,299 |
| 8/22 | $11,621 | $11,026 | $12,993 |
| 9/22 | $11,143 | $10,551 | $12,477 |
| 10/22 | $11,450 | $10,435 | $12,801 |
| 11/22 | $11,602 | $10,824 | $13,079 |
| 12/22 | $11,521 | $10,788 | $12,997 |
| 1/23 | $11,972 | $11,122 | $13,492 |
| 2/23 | $11,839 | $10,849 | $13,318 |
| 3/23 | $11,943 | $11,104 | $13,461 |
| 4/23 | $12,060 | $11,171 | $13,595 |
| 5/23 | $11,950 | $11,056 | $13,471 |
| 6/23 | $12,139 | $11,038 | $13,696 |
| 7/23 | $12,345 | $11,049 | $13,885 |
| 8/23 | $12,344 | $10,983 | $13,923 |
| 9/23 | $12,163 | $10,721 | $13,759 |
| 10/23 | $11,952 | $10,560 | $13,599 |
| 11/23 | $12,454 | $11,035 | $14,215 |
| 12/23 | $12,939 | $11,454 | $14,744 |
| 1/24 | $13,016 | $11,426 | $14,744 |
| 2/24 | $13,046 | $11,289 | $14,787 |
| 3/24 | $13,217 | $11,400 | $14,962 |
| 4/24 | $13,107 | $11,134 | $14,821 |
| 5/24 | $13,232 | $11,318 | $14,984 |
| 6/24 | $13,373 | $11,422 | $15,126 |
| 7/24 | $13,516 | $11,681 | $15,420 |
| 8/24 | $13,703 | $11,853 | $15,671 |
| 9/24 | $13,858 | $12,015 | $15,925 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | Since 4/30/15 (Inception) |
|---|
| Class C | 13.94% | 2.84% | 3.52% |
| Class C with maximum deferred sales charge | 12.94% | 2.84% | 3.52% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 1.97% |
| Bloomberg U.S. Corporate High Yield Index | 15.74% | 4.72% | 5.06% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $65,728,163 |
| # of Portfolio Holdings | 220 |
| Portfolio Turnover Rate | 80% |
| Total Advisory Fees Paid | $112,589 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Common Stocks | 0.1% |
| Short-Term Investments | 1.7% |
| Senior Loan Interests | 7.0% |
| Corporate Bonds | 91.2% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 1.7% |
| Not Rated | 2.4% |
| CCC | 16.1% |
| B | 36.3% |
| BB | 40.2% |
| BBB | 3.3% |
| Footnote | Description |
Footnotea | Security ratings disclosed with the exception for those labeled "Not Rated" is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - High Yield Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - High Yield Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class I | $63 | 0.59% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Bloomberg U.S. Corporate High Yield Index:
↑ Credit selection in the technology sector, which was favorable.
↑ Sound credit selection in the metals & mining sector helped relative performance.
↑ Underweight exposure in BB-rated bonds, which underperformed.
↓ A modest cash position detracted as the U.S. high yield market performed well.
↓ Bonds rated CCC and below, where credit selection was challenging.
↓ Chemicals sector, where credit selection was challenging.
↓ Credit selection and an underweight position in the wirelines sector, which outperformed.
Comparison of the change in value of a $1,000,000 investment for the period indicated.
| Class I | Bloomberg U.S. Universal Index | Bloomberg U.S. Corporate High Yield Index |
|---|
| 9/14 | $1,000,000 | $1,000,000 | $1,000,000 |
| 10/14 | $1,000,233 | $1,009,792 | $1,011,890 |
| 11/14 | $986,359 | $1,015,242 | $1,004,520 |
| 12/14 | $963,636 | $1,013,408 | $989,978 |
| 1/15 | $966,513 | $1,032,698 | $996,518 |
| 2/15 | $993,730 | $1,026,679 | $1,020,534 |
| 3/15 | $994,935 | $1,030,917 | $1,014,949 |
| 4/15 | $1,012,695 | $1,029,721 | $1,027,196 |
| 5/15 | $1,020,758 | $1,027,919 | $1,030,314 |
| 6/15 | $1,012,155 | $1,016,447 | $1,014,977 |
| 7/15 | $1,007,447 | $1,022,366 | $1,009,067 |
| 8/15 | $995,774 | $1,019,354 | $991,488 |
| 9/15 | $979,044 | $1,023,344 | $965,689 |
| 10/15 | $996,391 | $1,026,615 | $992,237 |
| 11/15 | $981,485 | $1,022,871 | $970,181 |
| 12/15 | $947,148 | $1,017,761 | $945,746 |
| 1/16 | $926,624 | $1,028,996 | $930,547 |
| 2/16 | $928,969 | $1,036,306 | $935,865 |
| 3/16 | $964,472 | $1,049,006 | $977,458 |
| 4/16 | $992,909 | $1,056,153 | $1,015,727 |
| 5/16 | $999,481 | $1,056,978 | $1,021,998 |
| 6/16 | $1,003,966 | $1,075,586 | $1,031,404 |
| 7/16 | $1,034,991 | $1,084,449 | $1,059,292 |
| 8/16 | $1,056,620 | $1,085,619 | $1,081,452 |
| 9/16 | $1,064,398 | $1,085,877 | $1,088,660 |
| 10/16 | $1,071,127 | $1,078,673 | $1,092,864 |
| 11/16 | $1,073,594 | $1,054,427 | $1,087,675 |
| 12/16 | $1,093,850 | $1,057,560 | $1,107,749 |
| 1/17 | $1,108,156 | $1,061,291 | $1,123,839 |
| 2/17 | $1,120,594 | $1,069,479 | $1,140,195 |
| 3/17 | $1,118,629 | $1,069,121 | $1,137,650 |
| 4/17 | $1,131,197 | $1,077,992 | $1,150,787 |
| 5/17 | $1,139,342 | $1,086,309 | $1,160,794 |
| 6/17 | $1,137,358 | $1,085,388 | $1,162,364 |
| 7/17 | $1,152,394 | $1,090,794 | $1,175,237 |
| 8/17 | $1,151,537 | $1,100,205 | $1,174,777 |
| 9/17 | $1,164,442 | $1,096,333 | $1,185,325 |
| 10/17 | $1,173,954 | $1,097,650 | $1,190,332 |
| 11/17 | $1,176,555 | $1,095,989 | $1,187,293 |
| 12/17 | $1,181,536 | $1,100,820 | $1,190,881 |
| 1/18 | $1,194,481 | $1,090,227 | $1,198,023 |
| 2/18 | $1,185,324 | $1,079,889 | $1,187,842 |
| 3/18 | $1,183,260 | $1,085,336 | $1,180,667 |
| 4/18 | $1,189,535 | $1,078,094 | $1,188,349 |
| 5/18 | $1,189,840 | $1,083,973 | $1,188,019 |
| 6/18 | $1,197,384 | $1,082,401 | $1,192,788 |
| 7/18 | $1,204,987 | $1,084,667 | $1,205,805 |
| 8/18 | $1,215,060 | $1,090,010 | $1,214,698 |
| 9/18 | $1,222,738 | $1,085,340 | $1,221,462 |
| 10/18 | $1,202,058 | $1,076,261 | $1,201,935 |
| 11/18 | $1,184,988 | $1,081,101 | $1,191,595 |
| 12/18 | $1,155,513 | $1,098,015 | $1,166,082 |
| 1/19 | $1,201,935 | $1,113,155 | $1,218,793 |
| 2/19 | $1,221,157 | $1,114,368 | $1,239,060 |
| 3/19 | $1,231,613 | $1,134,491 | $1,250,714 |
| 4/19 | $1,253,596 | $1,136,079 | $1,268,497 |
| 5/19 | $1,239,818 | $1,153,482 | $1,253,422 |
| 6/19 | $1,262,996 | $1,169,797 | $1,281,988 |
| 7/19 | $1,268,171 | $1,173,279 | $1,289,217 |
| 8/19 | $1,269,493 | $1,199,827 | $1,294,374 |
| 9/19 | $1,279,963 | $1,194,629 | $1,299,088 |
| 10/19 | $1,283,937 | $1,198,489 | $1,302,676 |
| 11/19 | $1,286,568 | $1,198,249 | $1,306,928 |
| 12/19 | $1,316,030 | $1,200,035 | $1,333,058 |
| 1/20 | $1,321,380 | $1,221,573 | $1,333,412 |
| 2/20 | $1,302,554 | $1,239,864 | $1,314,610 |
| 3/20 | $1,105,238 | $1,215,645 | $1,163,960 |
| 4/20 | $1,135,232 | $1,239,996 | $1,216,401 |
| 5/20 | $1,195,072 | $1,251,577 | $1,269,989 |
| 6/20 | $1,216,301 | $1,262,020 | $1,282,420 |
| 7/20 | $1,269,437 | $1,284,189 | $1,342,542 |
| 8/20 | $1,288,159 | $1,276,784 | $1,355,304 |
| 9/20 | $1,281,859 | $1,274,483 | $1,341,364 |
| 10/20 | $1,290,258 | $1,269,928 | $1,348,176 |
| 11/20 | $1,335,619 | $1,286,499 | $1,401,510 |
| 12/20 | $1,358,758 | $1,290,942 | $1,427,888 |
| 1/21 | $1,365,871 | $1,282,828 | $1,432,611 |
| 2/21 | $1,373,723 | $1,266,275 | $1,437,874 |
| 3/21 | $1,381,606 | $1,251,539 | $1,440,025 |
| 4/21 | $1,395,290 | $1,262,063 | $1,455,666 |
| 5/21 | $1,401,448 | $1,266,877 | $1,459,972 |
| 6/21 | $1,417,816 | $1,276,113 | $1,479,529 |
| 7/21 | $1,418,173 | $1,288,927 | $1,485,164 |
| 8/21 | $1,425,894 | $1,288,066 | $1,492,794 |
| 9/21 | $1,427,730 | $1,277,067 | $1,492,631 |
| 10/21 | $1,425,129 | $1,276,023 | $1,490,075 |
| 11/21 | $1,410,620 | $1,277,564 | $1,475,583 |
| 12/21 | $1,434,464 | $1,276,703 | $1,503,242 |
| 1/22 | $1,407,398 | $1,248,712 | $1,462,138 |
| 2/22 | $1,389,252 | $1,231,687 | $1,447,126 |
| 3/22 | $1,380,139 | $1,198,643 | $1,430,536 |
| 4/22 | $1,334,439 | $1,153,936 | $1,379,668 |
| 5/22 | $1,319,156 | $1,160,286 | $1,383,050 |
| 6/22 | $1,233,044 | $1,137,100 | $1,289,930 |
| 7/22 | $1,293,718 | $1,165,689 | $1,366,079 |
| 8/22 | $1,275,044 | $1,135,386 | $1,334,600 |
| 9/22 | $1,223,931 | $1,086,469 | $1,281,590 |
| 10/22 | $1,258,750 | $1,074,548 | $1,314,896 |
| 11/22 | $1,274,930 | $1,114,614 | $1,343,436 |
| 12/22 | $1,268,438 | $1,110,828 | $1,335,051 |
| 1/23 | $1,319,494 | $1,145,286 | $1,385,879 |
| 2/23 | $1,306,149 | $1,117,145 | $1,368,063 |
| 3/23 | $1,318,689 | $1,143,352 | $1,382,687 |
| 4/23 | $1,332,869 | $1,150,337 | $1,396,494 |
| 5/23 | $1,321,876 | $1,138,410 | $1,383,697 |
| 6/23 | $1,343,980 | $1,136,641 | $1,406,850 |
| 7/23 | $1,367,911 | $1,137,771 | $1,426,261 |
| 8/23 | $1,367,546 | $1,130,920 | $1,430,211 |
| 9/23 | $1,350,448 | $1,103,953 | $1,413,291 |
| 10/23 | $1,328,300 | $1,087,351 | $1,396,833 |
| 11/23 | $1,385,226 | $1,136,287 | $1,460,115 |
| 12/23 | $1,439,822 | $1,179,403 | $1,514,549 |
| 1/24 | $1,450,082 | $1,176,580 | $1,514,488 |
| 2/24 | $1,454,814 | $1,162,474 | $1,518,914 |
| 3/24 | $1,476,836 | $1,173,887 | $1,536,883 |
| 4/24 | $1,464,259 | $1,146,456 | $1,522,436 |
| 5/24 | $1,479,535 | $1,165,459 | $1,539,162 |
| 6/24 | $1,496,645 | $1,176,114 | $1,553,697 |
| 7/24 | $1,513,901 | $1,202,809 | $1,583,903 |
| 8/24 | $1,536,169 | $1,220,515 | $1,609,739 |
| 9/24 | $1,554,973 | $1,237,255 | $1,635,783 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class I | 15.15% | 3.97% | 4.51% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 2.15% |
| Bloomberg U.S. Corporate High Yield Index | 15.74% | 4.72% | 5.04% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $65,728,163 |
| # of Portfolio Holdings | 220 |
| Portfolio Turnover Rate | 80% |
| Total Advisory Fees Paid | $112,589 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Common Stocks | 0.1% |
| Short-Term Investments | 1.7% |
| Senior Loan Interests | 7.0% |
| Corporate Bonds | 91.2% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 1.7% |
| Not Rated | 2.4% |
| CCC | 16.1% |
| B | 36.3% |
| BB | 40.2% |
| BBB | 3.3% |
| Footnote | Description |
Footnotea | Security ratings disclosed with the exception for those labeled "Not Rated" is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - High Yield Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - High Yield Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class IR | $60 | 0.56% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Bloomberg U.S. Corporate High Yield Index:
↑ Credit selection in the technology sector, which was favorable.
↑ Sound credit selection in the metals & mining sector helped relative performance.
↑ Underweight exposure in BB-rated bonds, which underperformed.
↓ A modest cash position detracted as the U.S. high yield market performed well.
↓ Bonds rated CCC and below, where credit selection was challenging.
↓ Chemicals sector, where credit selection was challenging.
↓ Credit selection and an underweight position in the wirelines sector, which outperformed.
Comparison of the change in value of a $5,000,000 investment for the period indicated.
| Class IR | Bloomberg U.S. Universal Index | Bloomberg U.S. Corporate High Yield Index |
|---|
| 6/18 | $5,000,000 | $5,000,000 | $5,000,000 |
| 6/18 | $4,989,930 | $5,000,000 | $5,000,000 |
| 7/18 | $5,021,734 | $5,023,048 | $5,025,759 |
| 8/18 | $5,063,836 | $5,047,795 | $5,062,823 |
| 9/18 | $5,095,961 | $5,026,165 | $5,091,016 |
| 10/18 | $5,009,853 | $4,984,120 | $5,009,628 |
| 11/18 | $4,938,835 | $5,006,535 | $4,966,529 |
| 12/18 | $4,816,227 | $5,084,865 | $4,860,194 |
| 1/19 | $5,009,713 | $5,154,975 | $5,079,889 |
| 2/19 | $5,089,956 | $5,160,593 | $5,164,364 |
| 3/19 | $5,133,651 | $5,253,782 | $5,212,938 |
| 4/19 | $5,225,412 | $5,261,136 | $5,287,055 |
| 5/19 | $5,168,106 | $5,341,729 | $5,224,222 |
| 6/19 | $5,264,856 | $5,417,284 | $5,343,288 |
| 7/19 | $5,286,557 | $5,433,409 | $5,373,415 |
| 8/19 | $5,292,203 | $5,556,353 | $5,394,910 |
| 9/19 | $5,335,986 | $5,532,280 | $5,414,558 |
| 10/19 | $5,352,683 | $5,550,154 | $5,429,511 |
| 11/19 | $5,363,788 | $5,549,045 | $5,447,237 |
| 12/19 | $5,486,885 | $5,557,313 | $5,556,143 |
| 1/20 | $5,509,189 | $5,657,056 | $5,557,620 |
| 2/20 | $5,430,843 | $5,741,760 | $5,479,252 |
| 3/20 | $4,608,268 | $5,629,603 | $4,851,351 |
| 4/20 | $4,739,139 | $5,742,372 | $5,069,923 |
| 5/20 | $4,988,800 | $5,796,005 | $5,293,275 |
| 6/20 | $5,071,739 | $5,844,366 | $5,345,087 |
| 7/20 | $5,293,436 | $5,947,028 | $5,595,672 |
| 8/20 | $5,371,637 | $5,912,735 | $5,648,866 |
| 9/20 | $5,345,499 | $5,902,079 | $5,590,764 |
| 10/20 | $5,380,659 | $5,880,984 | $5,619,153 |
| 11/20 | $5,575,837 | $5,957,727 | $5,841,449 |
| 12/20 | $5,666,754 | $5,978,301 | $5,951,392 |
| 1/21 | $5,696,423 | $5,940,724 | $5,971,077 |
| 2/21 | $5,729,477 | $5,864,071 | $5,993,014 |
| 3/21 | $5,762,604 | $5,795,829 | $6,001,978 |
| 4/21 | $5,819,829 | $5,844,565 | $6,067,170 |
| 5/21 | $5,845,332 | $5,866,858 | $6,085,116 |
| 6/21 | $5,913,732 | $5,909,628 | $6,166,631 |
| 7/21 | $5,915,408 | $5,968,968 | $6,190,118 |
| 8/21 | $5,947,761 | $5,964,984 | $6,221,918 |
| 9/21 | $5,959,681 | $5,914,045 | $6,221,238 |
| 10/21 | $5,942,825 | $5,909,212 | $6,210,585 |
| 11/21 | $5,883,302 | $5,916,350 | $6,150,185 |
| 12/21 | $5,983,181 | $5,912,361 | $6,265,465 |
| 1/22 | $5,870,291 | $5,782,737 | $6,094,146 |
| 2/22 | $5,795,332 | $5,703,895 | $6,031,576 |
| 3/22 | $5,757,413 | $5,550,867 | $5,962,428 |
| 4/22 | $5,566,882 | $5,343,834 | $5,750,413 |
| 5/22 | $5,504,352 | $5,373,236 | $5,764,511 |
| 6/22 | $5,145,144 | $5,265,866 | $5,376,388 |
| 7/22 | $5,398,462 | $5,398,260 | $5,693,776 |
| 8/22 | $5,320,423 | $5,257,925 | $5,562,570 |
| 9/22 | $5,107,250 | $5,031,394 | $5,341,627 |
| 10/22 | $5,252,764 | $4,976,188 | $5,480,444 |
| 11/22 | $5,320,405 | $5,161,733 | $5,599,398 |
| 12/22 | $5,292,834 | $5,144,201 | $5,564,451 |
| 1/23 | $5,505,878 | $5,303,776 | $5,776,301 |
| 2/23 | $5,450,471 | $5,173,453 | $5,702,044 |
| 3/23 | $5,503,089 | $5,294,819 | $5,762,995 |
| 4/23 | $5,562,480 | $5,327,164 | $5,820,543 |
| 5/23 | $5,516,554 | $5,271,933 | $5,767,206 |
| 6/23 | $5,608,916 | $5,263,740 | $5,863,706 |
| 7/23 | $5,708,927 | $5,268,973 | $5,944,610 |
| 8/23 | $5,707,554 | $5,237,244 | $5,961,075 |
| 9/23 | $5,636,339 | $5,112,361 | $5,890,553 |
| 10/23 | $5,544,032 | $5,035,480 | $5,821,955 |
| 11/23 | $5,781,775 | $5,262,101 | $6,085,715 |
| 12/23 | $6,017,085 | $5,461,768 | $6,312,591 |
| 1/24 | $6,052,774 | $5,448,697 | $6,312,340 |
| 2/24 | $6,072,677 | $5,383,369 | $6,330,785 |
| 3/24 | $6,164,747 | $5,436,226 | $6,405,679 |
| 4/24 | $6,112,403 | $5,309,190 | $6,345,463 |
| 5/24 | $6,176,328 | $5,397,196 | $6,415,177 |
| 6/24 | $6,247,913 | $5,446,536 | $6,475,762 |
| 7/24 | $6,320,105 | $5,570,159 | $6,601,657 |
| 8/24 | $6,413,355 | $5,652,157 | $6,709,342 |
| 9/24 | $6,492,029 | $5,729,680 | $6,817,893 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | Since 6/15/18 (Inception) |
|---|
| Class IR | 15.18% | 4.00% | 4.24% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 2.19% |
| Bloomberg U.S. Corporate High Yield Index | 15.74% | 4.72% | 5.05% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $65,728,163 |
| # of Portfolio Holdings | 220 |
| Portfolio Turnover Rate | 80% |
| Total Advisory Fees Paid | $112,589 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Common Stocks | 0.1% |
| Short-Term Investments | 1.7% |
| Senior Loan Interests | 7.0% |
| Corporate Bonds | 91.2% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 1.7% |
| Not Rated | 2.4% |
| CCC | 16.1% |
| B | 36.3% |
| BB | 40.2% |
| BBB | 3.3% |
| Footnote | Description |
Footnotea | Security ratings disclosed with the exception for those labeled "Not Rated" is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - High Yield Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - High Yield Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class L | $128 | 1.19% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Bloomberg U.S. Corporate High Yield Index:
↑ Credit selection in the technology sector, which was favorable.
↑ Sound credit selection in the metals & mining sector helped relative performance.
↑ Underweight exposure in BB-rated bonds, which underperformed.
↓ A modest cash position detracted as the U.S. high yield market performed well.
↓ Bonds rated CCC and below, where credit selection was challenging.
↓ Chemicals sector, where credit selection was challenging.
↓ Credit selection and an underweight position in the wirelines sector, which outperformed.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class L | Bloomberg U.S. Universal Index | Bloomberg U.S. Corporate High Yield Index |
|---|
| 9/14 | $10,000 | $10,000 | $10,000 |
| 10/14 | $9,997 | $10,098 | $10,119 |
| 11/14 | $9,853 | $10,152 | $10,045 |
| 12/14 | $9,624 | $10,134 | $9,900 |
| 1/15 | $9,643 | $10,327 | $9,965 |
| 2/15 | $9,910 | $10,267 | $10,205 |
| 3/15 | $9,918 | $10,309 | $10,149 |
| 4/15 | $10,090 | $10,297 | $10,272 |
| 5/15 | $10,166 | $10,279 | $10,303 |
| 6/15 | $10,075 | $10,164 | $10,150 |
| 7/15 | $10,022 | $10,224 | $10,091 |
| 8/15 | $9,891 | $10,194 | $9,915 |
| 9/15 | $9,730 | $10,233 | $9,657 |
| 10/15 | $9,887 | $10,266 | $9,922 |
| 11/15 | $9,744 | $10,229 | $9,702 |
| 12/15 | $9,403 | $10,178 | $9,457 |
| 1/16 | $9,189 | $10,290 | $9,305 |
| 2/16 | $9,207 | $10,363 | $9,359 |
| 3/16 | $9,555 | $10,490 | $9,775 |
| 4/16 | $9,822 | $10,562 | $10,157 |
| 5/16 | $9,893 | $10,570 | $10,220 |
| 6/16 | $9,932 | $10,756 | $10,314 |
| 7/16 | $10,224 | $10,844 | $10,593 |
| 8/16 | $10,443 | $10,856 | $10,815 |
| 9/16 | $10,504 | $10,859 | $10,887 |
| 10/16 | $10,565 | $10,787 | $10,929 |
| 11/16 | $10,595 | $10,544 | $10,877 |
| 12/16 | $10,784 | $10,576 | $11,077 |
| 1/17 | $10,925 | $10,613 | $11,238 |
| 2/17 | $11,042 | $10,695 | $11,402 |
| 3/17 | $11,007 | $10,691 | $11,377 |
| 4/17 | $11,125 | $10,780 | $11,508 |
| 5/17 | $11,211 | $10,863 | $11,608 |
| 6/17 | $11,185 | $10,854 | $11,624 |
| 7/17 | $11,317 | $10,908 | $11,752 |
| 8/17 | $11,302 | $11,002 | $11,748 |
| 9/17 | $11,423 | $10,963 | $11,853 |
| 10/17 | $11,522 | $10,976 | $11,903 |
| 11/17 | $11,542 | $10,960 | $11,873 |
| 12/17 | $11,579 | $11,008 | $11,909 |
| 1/18 | $11,695 | $10,902 | $11,980 |
| 2/18 | $11,610 | $10,799 | $11,878 |
| 3/18 | $11,585 | $10,853 | $11,807 |
| 4/18 | $11,640 | $10,781 | $11,883 |
| 5/18 | $11,637 | $10,840 | $11,880 |
| 6/18 | $11,693 | $10,824 | $11,928 |
| 7/18 | $11,774 | $10,847 | $12,058 |
| 8/18 | $11,866 | $10,900 | $12,147 |
| 9/18 | $11,923 | $10,853 | $12,215 |
| 10/18 | $11,715 | $10,763 | $12,019 |
| 11/18 | $11,555 | $10,811 | $11,916 |
| 12/18 | $11,255 | $10,980 | $11,661 |
| 1/19 | $11,708 | $11,132 | $12,188 |
| 2/19 | $11,890 | $11,144 | $12,391 |
| 3/19 | $11,986 | $11,345 | $12,507 |
| 4/19 | $12,194 | $11,361 | $12,685 |
| 5/19 | $12,041 | $11,535 | $12,534 |
| 6/19 | $12,273 | $11,698 | $12,820 |
| 7/19 | $12,305 | $11,733 | $12,892 |
| 8/19 | $12,324 | $11,998 | $12,944 |
| 9/19 | $12,407 | $11,946 | $12,991 |
| 10/19 | $12,452 | $11,985 | $13,027 |
| 11/19 | $12,458 | $11,982 | $13,069 |
| 12/19 | $12,744 | $12,000 | $13,331 |
| 1/20 | $12,783 | $12,216 | $13,334 |
| 2/20 | $12,607 | $12,399 | $13,146 |
| 3/20 | $10,690 | $12,156 | $11,640 |
| 4/20 | $10,975 | $12,400 | $12,164 |
| 5/20 | $11,548 | $12,516 | $12,700 |
| 6/20 | $11,748 | $12,620 | $12,824 |
| 7/20 | $12,243 | $12,842 | $13,425 |
| 8/20 | $12,431 | $12,768 | $13,553 |
| 9/20 | $12,350 | $12,745 | $13,414 |
| 10/20 | $12,425 | $12,699 | $13,482 |
| 11/20 | $12,869 | $12,865 | $14,015 |
| 12/20 | $13,080 | $12,909 | $14,279 |
| 1/21 | $13,148 | $12,828 | $14,326 |
| 2/21 | $13,217 | $12,663 | $14,379 |
| 3/21 | $13,273 | $12,515 | $14,400 |
| 4/21 | $13,398 | $12,621 | $14,557 |
| 5/21 | $13,450 | $12,669 | $14,600 |
| 6/21 | $13,601 | $12,761 | $14,795 |
| 7/21 | $13,597 | $12,889 | $14,852 |
| 8/21 | $13,663 | $12,881 | $14,928 |
| 9/21 | $13,688 | $12,771 | $14,926 |
| 10/21 | $13,657 | $12,760 | $14,901 |
| 11/21 | $13,496 | $12,776 | $14,756 |
| 12/21 | $13,726 | $12,767 | $15,032 |
| 1/22 | $13,452 | $12,487 | $14,621 |
| 2/22 | $13,271 | $12,317 | $14,471 |
| 3/22 | $13,178 | $11,986 | $14,305 |
| 4/22 | $12,749 | $11,539 | $13,797 |
| 5/22 | $12,596 | $11,603 | $13,831 |
| 6/22 | $11,766 | $11,371 | $12,899 |
| 7/22 | $12,339 | $11,657 | $13,661 |
| 8/22 | $12,155 | $11,354 | $13,346 |
| 9/22 | $11,646 | $10,865 | $12,816 |
| 10/22 | $11,985 | $10,745 | $13,149 |
| 11/22 | $12,142 | $11,146 | $13,434 |
| 12/22 | $12,068 | $11,108 | $13,351 |
| 1/23 | $12,539 | $11,453 | $13,859 |
| 2/23 | $12,406 | $11,171 | $13,681 |
| 3/23 | $12,535 | $11,434 | $13,827 |
| 4/23 | $12,648 | $11,503 | $13,965 |
| 5/23 | $12,537 | $11,384 | $13,837 |
| 6/23 | $12,741 | $11,366 | $14,068 |
| 7/23 | $12,962 | $11,378 | $14,263 |
| 8/23 | $12,967 | $11,309 | $14,302 |
| 9/23 | $12,783 | $11,040 | $14,133 |
| 10/23 | $12,566 | $10,874 | $13,968 |
| 11/23 | $13,115 | $11,363 | $14,601 |
| 12/23 | $13,618 | $11,794 | $15,145 |
| 1/24 | $13,699 | $11,766 | $15,145 |
| 2/24 | $13,737 | $11,625 | $15,189 |
| 3/24 | $13,938 | $11,739 | $15,369 |
| 4/24 | $13,812 | $11,465 | $15,224 |
| 5/24 | $13,966 | $11,655 | $15,392 |
| 6/24 | $14,104 | $11,761 | $15,537 |
| 7/24 | $14,276 | $12,028 | $15,839 |
| 8/24 | $14,462 | $12,205 | $16,097 |
| 9/24 | $14,632 | $12,373 | $16,358 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class L | 14.47% | 3.35% | 3.88% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 2.15% |
| Bloomberg U.S. Corporate High Yield Index | 15.74% | 4.72% | 5.04% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $65,728,163 |
| # of Portfolio Holdings | 220 |
| Portfolio Turnover Rate | 80% |
| Total Advisory Fees Paid | $112,589 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Common Stocks | 0.1% |
| Short-Term Investments | 1.7% |
| Senior Loan Interests | 7.0% |
| Corporate Bonds | 91.2% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 1.7% |
| Not Rated | 2.4% |
| CCC | 16.1% |
| B | 36.3% |
| BB | 40.2% |
| BBB | 3.3% |
| Footnote | Description |
Footnotea | Security ratings disclosed with the exception for those labeled "Not Rated" is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - High Yield Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - High Yield Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class R6 | $60 | 0.56% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the Bloomberg U.S. Corporate High Yield Index:
↑ Credit selection in the technology sector, which was favorable.
↑ Sound credit selection in the metals & mining sector helped relative performance.
↑ Underweight exposure in BB-rated bonds, which underperformed.
↓ A modest cash position detracted as the U.S. high yield market performed well.
↓ Bonds rated CCC and below, where credit selection was challenging.
↓ Chemicals sector, where credit selection was challenging.
↓ Credit selection and an underweight position in the wirelines sector, which outperformed.
Comparison of the change in value of a $5,000,000 investment for the period indicated.
| Class R6 | Bloomberg U.S. Universal Index | Bloomberg U.S. Corporate High Yield Index |
|---|
| 9/14 | $5,000,000 | $5,000,000 | $5,000,000 |
| 10/14 | $5,001,288 | $5,048,962 | $5,059,452 |
| 11/14 | $4,932,045 | $5,076,209 | $5,022,598 |
| 12/14 | $4,818,672 | $5,067,038 | $4,949,888 |
| 1/15 | $4,828,252 | $5,163,490 | $4,982,591 |
| 2/15 | $4,969,082 | $5,133,397 | $5,102,672 |
| 3/15 | $4,975,194 | $5,154,585 | $5,074,746 |
| 4/15 | $5,059,154 | $5,148,604 | $5,135,980 |
| 5/15 | $5,099,520 | $5,139,597 | $5,151,570 |
| 6/15 | $5,056,631 | $5,082,236 | $5,074,884 |
| 7/15 | $5,033,208 | $5,111,830 | $5,045,333 |
| 8/15 | $4,970,080 | $5,096,768 | $4,957,442 |
| 9/15 | $4,891,652 | $5,116,718 | $4,828,444 |
| 10/15 | $4,978,521 | $5,133,074 | $4,961,184 |
| 11/15 | $4,904,119 | $5,114,355 | $4,850,904 |
| 12/15 | $4,732,719 | $5,088,805 | $4,728,728 |
| 1/16 | $4,630,168 | $5,144,980 | $4,652,733 |
| 2/16 | $4,641,935 | $5,181,528 | $4,679,326 |
| 3/16 | $4,819,507 | $5,245,029 | $4,887,291 |
| 4/16 | $4,961,696 | $5,280,765 | $5,078,633 |
| 5/16 | $4,994,654 | $5,284,889 | $5,109,992 |
| 6/16 | $5,022,469 | $5,377,929 | $5,157,022 |
| 7/16 | $5,172,360 | $5,422,245 | $5,296,462 |
| 8/16 | $5,280,581 | $5,428,094 | $5,407,260 |
| 9/16 | $5,319,584 | $5,429,384 | $5,443,300 |
| 10/16 | $5,353,344 | $5,393,365 | $5,464,318 |
| 11/16 | $5,371,228 | $5,272,137 | $5,438,377 |
| 12/16 | $5,467,270 | $5,287,798 | $5,538,747 |
| 1/17 | $5,538,774 | $5,306,454 | $5,619,193 |
| 2/17 | $5,601,081 | $5,347,397 | $5,700,975 |
| 3/17 | $5,591,387 | $5,345,606 | $5,688,252 |
| 4/17 | $5,654,348 | $5,389,960 | $5,753,936 |
| 5/17 | $5,695,199 | $5,431,545 | $5,803,972 |
| 6/17 | $5,685,423 | $5,426,940 | $5,811,822 |
| 7/17 | $5,760,758 | $5,453,971 | $5,876,186 |
| 8/17 | $5,750,907 | $5,501,026 | $5,873,884 |
| 9/17 | $5,821,267 | $5,481,666 | $5,926,627 |
| 10/17 | $5,868,965 | $5,488,248 | $5,951,658 |
| 11/17 | $5,882,114 | $5,479,943 | $5,936,465 |
| 12/17 | $5,907,308 | $5,504,100 | $5,954,405 |
| 1/18 | $5,966,146 | $5,451,135 | $5,990,116 |
| 2/18 | $5,926,427 | $5,399,447 | $5,939,209 |
| 3/18 | $5,916,241 | $5,426,680 | $5,903,334 |
| 4/18 | $5,947,762 | $5,390,471 | $5,941,743 |
| 5/18 | $5,949,432 | $5,419,867 | $5,940,096 |
| 6/18 | $5,981,255 | $5,412,007 | $5,963,940 |
| 7/18 | $6,025,458 | $5,423,333 | $6,029,027 |
| 8/18 | $6,075,976 | $5,450,052 | $6,073,490 |
| 9/18 | $6,114,521 | $5,426,699 | $6,107,311 |
| 10/18 | $6,011,202 | $5,381,303 | $6,009,676 |
| 11/18 | $5,925,989 | $5,405,504 | $5,957,973 |
| 12/18 | $5,778,876 | $5,490,077 | $5,830,412 |
| 1/19 | $6,011,035 | $5,565,773 | $6,093,963 |
| 2/19 | $6,107,316 | $5,571,839 | $6,195,301 |
| 3/19 | $6,159,745 | $5,672,454 | $6,253,571 |
| 4/19 | $6,269,846 | $5,680,394 | $6,342,484 |
| 5/19 | $6,194,673 | $5,767,409 | $6,267,108 |
| 6/19 | $6,317,208 | $5,848,985 | $6,409,942 |
| 7/19 | $6,336,767 | $5,866,395 | $6,446,084 |
| 8/19 | $6,350,022 | $5,999,137 | $6,471,870 |
| 9/19 | $6,402,556 | $5,973,146 | $6,495,440 |
| 10/19 | $6,422,591 | $5,992,444 | $6,513,378 |
| 11/19 | $6,435,916 | $5,991,246 | $6,534,642 |
| 12/19 | $6,583,617 | $6,000,174 | $6,665,289 |
| 1/20 | $6,610,380 | $6,107,865 | $6,667,061 |
| 2/20 | $6,516,373 | $6,199,319 | $6,573,048 |
| 3/20 | $5,529,381 | $6,078,224 | $5,819,802 |
| 4/20 | $5,686,410 | $6,199,980 | $6,082,007 |
| 5/20 | $5,985,974 | $6,257,887 | $6,349,945 |
| 6/20 | $6,092,367 | $6,310,102 | $6,412,101 |
| 7/20 | $6,351,502 | $6,420,945 | $6,712,709 |
| 8/20 | $6,445,333 | $6,383,919 | $6,776,522 |
| 9/20 | $6,413,938 | $6,372,414 | $6,706,821 |
| 10/20 | $6,456,125 | $6,349,638 | $6,740,878 |
| 11/20 | $6,690,314 | $6,432,497 | $7,007,549 |
| 12/20 | $6,799,404 | $6,454,709 | $7,139,440 |
| 1/21 | $6,835,003 | $6,414,139 | $7,163,054 |
| 2/21 | $6,874,629 | $6,331,377 | $7,189,370 |
| 3/21 | $6,914,343 | $6,257,696 | $7,200,124 |
| 4/21 | $6,983,006 | $6,310,316 | $7,278,331 |
| 5/21 | $7,013,605 | $6,334,386 | $7,299,858 |
| 6/21 | $7,095,677 | $6,380,565 | $7,397,646 |
| 7/21 | $7,097,687 | $6,444,633 | $7,425,822 |
| 8/21 | $7,136,474 | $6,440,332 | $7,463,970 |
| 9/21 | $7,150,776 | $6,385,334 | $7,463,154 |
| 10/21 | $7,137,964 | $6,380,115 | $7,450,374 |
| 11/21 | $7,059,099 | $6,387,822 | $7,377,917 |
| 12/21 | $7,186,430 | $6,383,515 | $7,516,210 |
| 1/22 | $7,043,454 | $6,243,562 | $7,310,691 |
| 2/22 | $6,953,482 | $6,158,437 | $7,235,631 |
| 3/22 | $6,907,985 | $5,993,214 | $7,152,679 |
| 4/22 | $6,687,003 | $5,769,682 | $6,898,340 |
| 5/22 | $6,612,013 | $5,801,428 | $6,915,252 |
| 6/22 | $6,173,359 | $5,685,501 | $6,449,651 |
| 7/22 | $6,485,039 | $5,828,446 | $6,830,397 |
| 8/22 | $6,383,630 | $5,676,928 | $6,672,999 |
| 9/22 | $6,127,858 | $5,432,344 | $6,407,950 |
| 10/22 | $6,302,451 | $5,372,739 | $6,574,479 |
| 11/22 | $6,391,466 | $5,573,070 | $6,717,178 |
| 12/22 | $6,350,398 | $5,554,141 | $6,675,255 |
| 1/23 | $6,614,000 | $5,726,432 | $6,929,396 |
| 2/23 | $6,539,534 | $5,585,724 | $6,840,316 |
| 3/23 | $6,610,698 | $5,716,761 | $6,913,434 |
| 4/23 | $6,673,827 | $5,751,684 | $6,982,470 |
| 5/23 | $6,626,854 | $5,692,052 | $6,918,486 |
| 6/23 | $6,729,497 | $5,683,206 | $7,034,250 |
| 7/23 | $6,857,706 | $5,688,856 | $7,131,303 |
| 8/23 | $6,856,058 | $5,654,598 | $7,151,056 |
| 9/23 | $6,762,305 | $5,519,764 | $7,066,455 |
| 10/23 | $6,651,508 | $5,436,756 | $6,984,164 |
| 11/23 | $6,945,150 | $5,681,437 | $7,300,577 |
| 12/23 | $7,218,954 | $5,897,014 | $7,572,743 |
| 1/24 | $7,270,334 | $5,882,902 | $7,572,442 |
| 2/24 | $7,294,213 | $5,812,368 | $7,594,570 |
| 3/24 | $7,396,011 | $5,869,437 | $7,684,414 |
| 4/24 | $7,341,873 | $5,732,278 | $7,612,178 |
| 5/24 | $7,418,565 | $5,827,297 | $7,695,808 |
| 6/24 | $7,504,447 | $5,880,568 | $7,768,487 |
| 7/24 | $7,591,054 | $6,014,044 | $7,919,514 |
| 8/24 | $7,702,925 | $6,102,576 | $8,048,696 |
| 9/24 | $7,797,366 | $6,186,276 | $8,178,916 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | 10 Years |
|---|
| Class R6 | 15.31% | 4.02% | 4.54% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 2.15% |
| Bloomberg U.S. Corporate High Yield Index | 15.74% | 4.72% | 5.04% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $65,728,163 |
| # of Portfolio Holdings | 220 |
| Portfolio Turnover Rate | 80% |
| Total Advisory Fees Paid | $112,589 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Common Stocks | 0.1% |
| Short-Term Investments | 1.7% |
| Senior Loan Interests | 7.0% |
| Corporate Bonds | 91.2% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 1.7% |
| Not Rated | 2.4% |
| CCC | 16.1% |
| B | 36.3% |
| BB | 40.2% |
| BBB | 3.3% |
| Footnote | Description |
Footnotea | Security ratings disclosed with the exception for those labeled "Not Rated" is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Ultra-Short Income Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Ultra-Short Income Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $38 | 0.37% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the ICE BofA 3-Month U.S. Treasury Bill Index:
↑Allocation to fixed-rate securities, as the Fund locked in longer-dated fixed-rate securities prior to the market rally in June 2024, this benefited performance from both higher market value and higher current yield than prevailing alternatives as the monetary easing cycle began in September 2024.
↑ Exposure to BBB rated securities helped increase income compared to other tier 1 alternatives.
↓ Short maturity profile, as mandated by the Fund’s investment strategy, meant that higher yielding securities purchased at year-end 2023 (when prevailing interest rates were higher) matured and the proceeds were reinvested in a lower yield environment.
Comparison of the change in value of a $10,000 investment for the period indicated.
| Class A | Bloomberg U.S. Universal Index | ICE BofA 3-Month U.S. Treasury Bill Index |
|---|
| 4/16 | $10,000 | $10,000 | $10,000 |
| 4/16 | $10,000 | $10,000 | $10,000 |
| 5/16 | $10,001 | $10,020 | $10,001 |
| 6/16 | $10,003 | $10,196 | $10,005 |
| 7/16 | $10,006 | $10,280 | $10,008 |
| 8/16 | $10,009 | $10,291 | $10,010 |
| 9/16 | $10,014 | $10,294 | $10,015 |
| 10/16 | $10,018 | $10,226 | $10,017 |
| 11/16 | $10,023 | $9,996 | $10,019 |
| 12/16 | $10,029 | $10,025 | $10,023 |
| 1/17 | $10,035 | $10,061 | $10,028 |
| 2/17 | $10,041 | $10,138 | $10,032 |
| 3/17 | $10,047 | $10,135 | $10,034 |
| 4/17 | $10,055 | $10,219 | $10,040 |
| 5/17 | $10,072 | $10,298 | $10,045 |
| 6/17 | $10,080 | $10,289 | $10,054 |
| 7/17 | $10,088 | $10,340 | $10,062 |
| 8/17 | $10,097 | $10,430 | $10,072 |
| 9/17 | $10,106 | $10,393 | $10,080 |
| 10/17 | $10,115 | $10,405 | $10,089 |
| 11/17 | $10,124 | $10,390 | $10,098 |
| 12/17 | $10,125 | $10,435 | $10,109 |
| 1/18 | $10,147 | $10,335 | $10,121 |
| 2/18 | $10,157 | $10,237 | $10,131 |
| 3/18 | $10,160 | $10,289 | $10,145 |
| 4/18 | $10,185 | $10,220 | $10,158 |
| 5/18 | $10,202 | $10,276 | $10,174 |
| 6/18 | $10,218 | $10,261 | $10,191 |
| 7/18 | $10,235 | $10,282 | $10,207 |
| 8/18 | $10,252 | $10,333 | $10,225 |
| 9/18 | $10,269 | $10,289 | $10,241 |
| 10/18 | $10,287 | $10,203 | $10,259 |
| 11/18 | $10,305 | $10,249 | $10,280 |
| 12/18 | $10,325 | $10,409 | $10,299 |
| 1/19 | $10,347 | $10,552 | $10,319 |
| 2/19 | $10,377 | $10,564 | $10,337 |
| 3/19 | $10,399 | $10,755 | $10,360 |
| 4/19 | $10,419 | $10,770 | $10,380 |
| 5/19 | $10,440 | $10,935 | $10,404 |
| 6/19 | $10,460 | $11,089 | $10,427 |
| 7/19 | $10,480 | $11,122 | $10,445 |
| 8/19 | $10,500 | $11,374 | $10,467 |
| 9/19 | $10,517 | $11,325 | $10,485 |
| 10/19 | $10,535 | $11,361 | $10,505 |
| 11/19 | $10,551 | $11,359 | $10,518 |
| 12/19 | $10,566 | $11,376 | $10,533 |
| 1/20 | $10,581 | $11,580 | $10,548 |
| 2/20 | $10,594 | $11,754 | $10,563 |
| 3/20 | $10,543 | $11,524 | $10,594 |
| 4/20 | $10,571 | $11,755 | $10,595 |
| 5/20 | $10,588 | $11,865 | $10,595 |
| 6/20 | $10,592 | $11,964 | $10,596 |
| 7/20 | $10,596 | $12,174 | $10,598 |
| 8/20 | $10,599 | $12,104 | $10,599 |
| 9/20 | $10,601 | $12,082 | $10,600 |
| 10/20 | $10,592 | $12,039 | $10,602 |
| 11/20 | $10,594 | $12,196 | $10,603 |
| 12/20 | $10,595 | $12,238 | $10,604 |
| 1/21 | $10,596 | $12,161 | $10,605 |
| 2/21 | $10,596 | $12,004 | $10,606 |
| 3/21 | $10,597 | $11,864 | $10,606 |
| 4/21 | $10,597 | $11,964 | $10,607 |
| 5/21 | $10,597 | $12,010 | $10,607 |
| 6/21 | $10,598 | $12,097 | $10,606 |
| 7/21 | $10,598 | $12,219 | $10,607 |
| 8/21 | $10,598 | $12,211 | $10,607 |
| 9/21 | $10,598 | $12,106 | $10,608 |
| 10/21 | $10,599 | $12,096 | $10,607 |
| 11/21 | $10,599 | $12,111 | $10,608 |
| 12/21 | $10,599 | $12,103 | $10,609 |
| 1/22 | $10,599 | $11,837 | $10,608 |
| 2/22 | $10,589 | $11,676 | $10,610 |
| 3/22 | $10,590 | $11,363 | $10,613 |
| 4/22 | $10,593 | $10,939 | $10,615 |
| 5/22 | $10,600 | $10,999 | $10,622 |
| 6/22 | $10,610 | $10,779 | $10,624 |
| 7/22 | $10,626 | $11,050 | $10,630 |
| 8/22 | $10,647 | $10,763 | $10,647 |
| 9/22 | $10,670 | $10,299 | $10,673 |
| 10/22 | $10,687 | $10,186 | $10,690 |
| 11/22 | $10,721 | $10,566 | $10,725 |
| 12/22 | $10,770 | $10,530 | $10,763 |
| 1/23 | $10,822 | $10,857 | $10,797 |
| 2/23 | $10,861 | $10,590 | $10,832 |
| 3/23 | $10,894 | $10,839 | $10,879 |
| 4/23 | $10,949 | $10,905 | $10,913 |
| 5/23 | $10,996 | $10,792 | $10,956 |
| 6/23 | $11,033 | $10,775 | $11,006 |
| 7/23 | $11,094 | $10,786 | $11,050 |
| 8/23 | $11,146 | $10,721 | $11,100 |
| 9/23 | $11,196 | $10,465 | $11,151 |
| 10/23 | $11,249 | $10,308 | $11,200 |
| 11/23 | $11,300 | $10,772 | $11,251 |
| 12/23 | $11,365 | $11,180 | $11,303 |
| 1/24 | $11,418 | $11,154 | $11,351 |
| 2/24 | $11,468 | $11,020 | $11,398 |
| 3/24 | $11,510 | $11,128 | $11,449 |
| 4/24 | $11,561 | $10,868 | $11,498 |
| 5/24 | $11,615 | $11,048 | $11,553 |
| 6/24 | $11,666 | $11,149 | $11,600 |
| 7/24 | $11,719 | $11,402 | $11,652 |
| 8/24 | $11,784 | $11,570 | $11,708 |
| 9/24 | $11,834 | $11,729 | $11,759 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | Since 4/28/16 (Inception) |
|---|
| Class A | 5.69% | 2.39% | 2.02% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 1.91% |
| ICE BofA 3-Month U.S. Treasury Bill Index | 5.46% | 2.32% | 1.94% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $11,231,150,088 |
| # of Portfolio Holdings | 136 |
| Portfolio Turnover Rate | 0% |
| Total Advisory Fees Paid | $17,073,139 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Time Deposits | 4.8% |
| Certificates of Deposit | 12.8% |
| Corporate Bonds | 17.3% |
| Floating Rate Notes | 18.8% |
| Commercial Paper | 22.7% |
| Repurchase Agreements | 23.6% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 73.5% |
| BBB | 3.6% |
| A | 18.3% |
| AA | 4.7% |
| Footnote | Description |
Footnotea | Security ratings disclosed is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
This is a summary of certain changes to the Fund since September 30, 2023. For more complete information, you may review the Fund's next prospectus, which we expect to be available by February 1, 2025 at www.morganstanley.com/im/shareholderreports or upon request by contacting us at 1-800-869-6397.
Effective May 1, 2024, the Distributor, Morgan Stanley Distribution, Inc., has agreed to waive the 12b-1 fees on Class A shares of the Fund to the extent it exceeds 0.15% of the average daily net assets of such shares on an basis.
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Ultra-Short Income Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Ultra-Short Income Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Institutional Class | $31 | 0.30% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the ICE BofA 3-Month U.S. Treasury Bill Index:
↑Allocation to fixed-rate securities, as the Fund locked in longer-dated fixed-rate securities prior to the market rally in June 2024, this benefited performance from both higher market value and higher current yield than prevailing alternatives as the monetary easing cycle began in September 2024.
↑ Exposure to BBB rated securities helped increase income compared to other tier 1 alternatives.
↓ Short maturity profile, as mandated by the Fund’s investment strategy, meant that higher yielding securities purchased at year-end 2023 (when prevailing interest rates were higher) matured and the proceeds were reinvested in a lower yield environment.
Comparison of the change in value of a $5,000,000 investment for the period indicated.
| Institutional Class | Bloomberg U.S. Universal Index | ICE BofA 3-Month U.S. Treasury Bill Index |
|---|
| 4/16 | $5,000,000 | $5,000,000 | $5,000,000 |
| 4/16 | $5,000,046 | $5,000,000 | $5,000,000 |
| 5/16 | $5,001,743 | $5,009,930 | $5,000,695 |
| 6/16 | $5,003,792 | $5,098,129 | $5,002,577 |
| 7/16 | $5,006,176 | $5,140,140 | $5,004,025 |
| 8/16 | $5,008,818 | $5,145,685 | $5,004,915 |
| 9/16 | $5,011,708 | $5,146,907 | $5,007,384 |
| 10/16 | $5,015,005 | $5,112,762 | $5,008,636 |
| 11/16 | $5,018,169 | $4,997,841 | $5,009,512 |
| 12/16 | $5,021,931 | $5,012,688 | $5,011,641 |
| 1/17 | $5,025,907 | $5,030,373 | $5,013,856 |
| 2/17 | $5,029,564 | $5,069,186 | $5,015,934 |
| 3/17 | $5,038,722 | $5,067,488 | $5,016,802 |
| 4/17 | $5,043,121 | $5,109,534 | $5,020,169 |
| 5/17 | $5,047,718 | $5,148,956 | $5,022,702 |
| 6/17 | $5,052,413 | $5,144,591 | $5,026,930 |
| 7/17 | $5,057,635 | $5,170,215 | $5,031,208 |
| 8/17 | $5,062,979 | $5,214,822 | $5,035,921 |
| 9/17 | $5,068,202 | $5,196,469 | $5,040,236 |
| 10/17 | $5,073,616 | $5,202,708 | $5,044,739 |
| 11/17 | $5,078,890 | $5,194,836 | $5,048,930 |
| 12/17 | $5,085,241 | $5,217,736 | $5,054,540 |
| 1/18 | $5,091,878 | $5,167,527 | $5,060,578 |
| 2/18 | $5,097,993 | $5,118,528 | $5,065,363 |
| 3/18 | $5,100,325 | $5,144,344 | $5,072,465 |
| 4/18 | $5,113,890 | $5,110,019 | $5,079,096 |
| 5/18 | $5,122,853 | $5,137,886 | $5,086,849 |
| 6/18 | $5,131,820 | $5,130,434 | $5,095,406 |
| 7/18 | $5,141,392 | $5,141,171 | $5,103,391 |
| 8/18 | $5,150,919 | $5,166,500 | $5,112,592 |
| 9/18 | $5,160,211 | $5,144,362 | $5,120,447 |
| 10/18 | $5,170,256 | $5,101,327 | $5,129,300 |
| 11/18 | $5,180,131 | $5,124,270 | $5,139,826 |
| 12/18 | $5,190,968 | $5,204,442 | $5,149,288 |
| 1/19 | $5,202,829 | $5,276,200 | $5,159,437 |
| 2/19 | $5,218,776 | $5,281,951 | $5,168,624 |
| 3/19 | $5,230,546 | $5,377,331 | $5,180,163 |
| 4/19 | $5,241,762 | $5,384,858 | $5,189,907 |
| 5/19 | $5,253,288 | $5,467,346 | $5,201,750 |
| 6/19 | $5,264,212 | $5,544,678 | $5,213,261 |
| 7/19 | $5,275,171 | $5,561,182 | $5,222,715 |
| 8/19 | $5,285,721 | $5,687,017 | $5,233,429 |
| 9/19 | $5,295,576 | $5,662,378 | $5,242,573 |
| 10/19 | $5,305,241 | $5,680,673 | $5,252,657 |
| 11/19 | $5,314,091 | $5,679,537 | $5,259,208 |
| 12/19 | $5,322,878 | $5,688,001 | $5,266,715 |
| 1/20 | $5,331,256 | $5,790,088 | $5,273,752 |
| 2/20 | $5,338,788 | $5,876,785 | $5,281,549 |
| 3/20 | $5,313,730 | $5,761,990 | $5,296,975 |
| 4/20 | $5,328,983 | $5,877,411 | $5,297,388 |
| 5/20 | $5,338,213 | $5,932,305 | $5,297,475 |
| 6/20 | $5,341,261 | $5,981,804 | $5,298,155 |
| 7/20 | $5,343,689 | $6,086,880 | $5,299,205 |
| 8/20 | $5,345,661 | $6,051,781 | $5,299,611 |
| 9/20 | $5,347,210 | $6,040,874 | $5,300,240 |
| 10/20 | $5,343,097 | $6,019,283 | $5,300,791 |
| 11/20 | $5,344,319 | $6,097,831 | $5,301,261 |
| 12/20 | $5,345,532 | $6,118,888 | $5,301,847 |
| 1/21 | $5,346,415 | $6,080,428 | $5,302,347 |
| 2/21 | $5,346,921 | $6,001,972 | $5,302,796 |
| 3/21 | $5,347,369 | $5,932,125 | $5,303,179 |
| 4/21 | $5,347,821 | $5,982,007 | $5,303,259 |
| 5/21 | $5,348,238 | $6,004,824 | $5,303,368 |
| 6/21 | $5,348,649 | $6,048,601 | $5,303,172 |
| 7/21 | $5,349,127 | $6,109,336 | $5,303,440 |
| 8/21 | $5,349,571 | $6,105,258 | $5,303,650 |
| 9/21 | $5,349,954 | $6,053,122 | $5,303,940 |
| 10/21 | $5,350,328 | $6,048,175 | $5,303,722 |
| 11/21 | $5,350,708 | $6,055,480 | $5,304,077 |
| 12/21 | $5,351,103 | $6,051,397 | $5,304,454 |
| 1/22 | $5,351,482 | $5,918,725 | $5,304,215 |
| 2/22 | $5,346,530 | $5,838,030 | $5,304,895 |
| 3/22 | $5,347,573 | $5,681,403 | $5,306,531 |
| 4/22 | $5,349,322 | $5,469,500 | $5,307,277 |
| 5/22 | $5,352,971 | $5,499,595 | $5,310,933 |
| 6/22 | $5,358,400 | $5,389,699 | $5,312,091 |
| 7/22 | $5,366,670 | $5,525,207 | $5,314,813 |
| 8/22 | $5,377,660 | $5,381,572 | $5,323,391 |
| 9/22 | $5,389,314 | $5,149,714 | $5,336,639 |
| 10/22 | $5,398,470 | $5,093,210 | $5,345,015 |
| 11/22 | $5,420,975 | $5,283,117 | $5,362,252 |
| 12/22 | $5,440,597 | $5,265,173 | $5,381,660 |
| 1/23 | $5,467,121 | $5,428,501 | $5,398,513 |
| 2/23 | $5,492,518 | $5,295,114 | $5,416,133 |
| 3/23 | $5,509,476 | $5,419,333 | $5,439,429 |
| 4/23 | $5,532,036 | $5,452,439 | $5,456,550 |
| 5/23 | $5,556,174 | $5,395,909 | $5,477,920 |
| 6/23 | $5,574,761 | $5,387,524 | $5,502,990 |
| 7/23 | $5,605,921 | $5,392,879 | $5,524,903 |
| 8/23 | $5,632,340 | $5,360,404 | $5,549,849 |
| 9/23 | $5,657,987 | $5,232,585 | $5,575,281 |
| 10/23 | $5,684,819 | $5,153,896 | $5,600,184 |
| 11/23 | $5,716,761 | $5,385,846 | $5,625,326 |
| 12/23 | $5,743,906 | $5,590,208 | $5,651,546 |
| 1/24 | $5,771,150 | $5,576,830 | $5,675,696 |
| 2/24 | $5,796,608 | $5,509,966 | $5,698,949 |
| 3/24 | $5,817,978 | $5,564,065 | $5,724,540 |
| 4/24 | $5,844,311 | $5,434,042 | $5,749,102 |
| 5/24 | $5,871,700 | $5,524,118 | $5,776,691 |
| 6/24 | $5,898,225 | $5,574,618 | $5,800,248 |
| 7/24 | $5,931,531 | $5,701,149 | $5,826,229 |
| 8/24 | $5,958,769 | $5,785,075 | $5,854,100 |
| 9/24 | $5,990,454 | $5,864,420 | $5,879,496 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | Since 4/28/16 (Inception) |
|---|
| Institutional Class | 5.88% | 2.50% | 2.17% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 1.91% |
| ICE BofA 3-Month U.S. Treasury Bill Index | 5.46% | 2.32% | 1.94% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $11,231,150,088 |
| # of Portfolio Holdings | 136 |
| Portfolio Turnover Rate | 0% |
| Total Advisory Fees Paid | $17,073,139 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Time Deposits | 4.8% |
| Certificates of Deposit | 12.8% |
| Corporate Bonds | 17.3% |
| Floating Rate Notes | 18.8% |
| Commercial Paper | 22.7% |
| Repurchase Agreements | 23.6% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 73.5% |
| BBB | 3.6% |
| A | 18.3% |
| AA | 4.7% |
| Footnote | Description |
Footnotea | Security ratings disclosed is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
Morgan Stanley Institutional Fund Trust - Ultra-Short Income Portfolio
Annual Shareholder Report September 30, 2024
This annual shareholder report contains important information about Morgan Stanley Institutional Fund Trust - Ultra-Short Income Portfolio for the period of October 1, 2023 to September 30, 2024. You can find additional information about the Fund at www.morganstanley.com/im/shareholderreports. You can also request this information by contacting us at 1-800-869-6397.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class IR | $26 | 0.25% |
How did the Fund perform last year and what affected its performance?
Key contributors to (↑) and detractors from (↓) performance, relative to the ICE BofA 3-Month U.S. Treasury Bill Index:
↑Allocation to fixed-rate securities, as the Fund locked in longer-dated fixed-rate securities prior to the market rally in June 2024, this benefited performance from both higher market value and higher current yield than prevailing alternatives as the monetary easing cycle began in September 2024.
↑ Exposure to BBB rated securities helped increase income compared to other tier 1 alternatives.
↓ Short maturity profile, as mandated by the Fund’s investment strategy, meant that higher yielding securities purchased at year-end 2023 (when prevailing interest rates were higher) matured and the proceeds were reinvested in a lower yield environment.
Comparison of the change in value of a $10,000,000 investment for the period indicated.
| Class IR | Bloomberg U.S. Universal Index | ICE BofA 3-Month U.S. Treasury Bill Index |
|---|
| 4/16 | $10,000,000 | $10,000,000 | $10,000,000 |
| 4/16 | $10,000,119 | $10,000,000 | $10,000,000 |
| 5/16 | $10,003,938 | $10,019,861 | $10,001,390 |
| 6/16 | $10,008,445 | $10,196,259 | $10,005,154 |
| 7/16 | $10,013,638 | $10,280,280 | $10,008,050 |
| 8/16 | $10,019,352 | $10,291,369 | $10,009,831 |
| 9/16 | $10,025,544 | $10,293,815 | $10,014,768 |
| 10/16 | $10,042,595 | $10,225,525 | $10,017,273 |
| 11/16 | $10,049,341 | $9,995,682 | $10,019,025 |
| 12/16 | $10,057,299 | $10,025,376 | $10,023,281 |
| 1/17 | $10,065,671 | $10,060,746 | $10,027,712 |
| 2/17 | $10,073,354 | $10,138,372 | $10,031,867 |
| 3/17 | $10,082,034 | $10,134,976 | $10,033,605 |
| 4/17 | $10,091,255 | $10,219,068 | $10,040,337 |
| 5/17 | $10,100,883 | $10,297,912 | $10,045,405 |
| 6/17 | $10,110,694 | $10,289,181 | $10,053,860 |
| 7/17 | $10,121,578 | $10,340,431 | $10,062,417 |
| 8/17 | $10,132,706 | $10,429,644 | $10,071,842 |
| 9/17 | $10,143,579 | $10,392,938 | $10,080,471 |
| 10/17 | $10,154,851 | $10,405,417 | $10,089,477 |
| 11/17 | $10,165,822 | $10,389,671 | $10,097,860 |
| 12/17 | $10,178,973 | $10,435,473 | $10,109,081 |
| 1/18 | $10,192,697 | $10,335,054 | $10,121,156 |
| 2/18 | $10,205,332 | $10,237,056 | $10,130,726 |
| 3/18 | $10,220,649 | $10,288,689 | $10,144,930 |
| 4/18 | $10,238,017 | $10,220,038 | $10,158,192 |
| 5/18 | $10,256,403 | $10,275,772 | $10,173,698 |
| 6/18 | $10,274,779 | $10,260,869 | $10,190,812 |
| 7/18 | $10,294,383 | $10,282,343 | $10,206,782 |
| 8/18 | $10,313,900 | $10,333,000 | $10,225,184 |
| 9/18 | $10,332,936 | $10,288,724 | $10,240,893 |
| 10/18 | $10,353,499 | $10,202,655 | $10,258,600 |
| 11/18 | $10,373,703 | $10,248,540 | $10,279,652 |
| 12/18 | $10,395,850 | $10,408,884 | $10,298,575 |
| 1/19 | $10,430,460 | $10,552,401 | $10,318,874 |
| 2/19 | $10,452,390 | $10,563,902 | $10,337,247 |
| 3/19 | $10,476,422 | $10,754,663 | $10,360,326 |
| 4/19 | $10,499,332 | $10,769,716 | $10,379,814 |
| 5/19 | $10,522,871 | $10,934,692 | $10,403,501 |
| 6/19 | $10,545,191 | $11,089,356 | $10,426,522 |
| 7/19 | $10,567,598 | $11,122,364 | $10,445,431 |
| 8/19 | $10,589,187 | $11,374,034 | $10,466,859 |
| 9/19 | $10,609,370 | $11,324,757 | $10,485,145 |
| 10/19 | $10,629,192 | $11,361,346 | $10,505,314 |
| 11/19 | $10,647,363 | $11,359,074 | $10,518,417 |
| 12/19 | $10,665,425 | $11,376,001 | $10,533,431 |
| 1/20 | $10,682,668 | $11,580,177 | $10,547,504 |
| 2/20 | $10,698,190 | $11,753,569 | $10,563,097 |
| 3/20 | $10,659,136 | $11,523,980 | $10,593,951 |
| 4/20 | $10,679,446 | $11,754,822 | $10,594,776 |
| 5/20 | $10,698,394 | $11,864,610 | $10,594,950 |
| 6/20 | $10,704,943 | $11,963,608 | $10,596,311 |
| 7/20 | $10,710,261 | $12,173,760 | $10,598,410 |
| 8/20 | $10,714,668 | $12,103,561 | $10,599,221 |
| 9/20 | $10,718,212 | $12,081,748 | $10,600,481 |
| 10/20 | $10,721,153 | $12,038,566 | $10,601,581 |
| 11/20 | $10,713,312 | $12,195,662 | $10,602,522 |
| 12/20 | $10,716,201 | $12,237,775 | $10,603,695 |
| 1/21 | $10,718,427 | $12,160,855 | $10,604,694 |
| 2/21 | $10,719,854 | $12,003,944 | $10,605,592 |
| 3/21 | $10,721,210 | $11,864,249 | $10,606,359 |
| 4/21 | $10,722,557 | $11,964,014 | $10,606,518 |
| 5/21 | $10,723,851 | $12,009,649 | $10,606,735 |
| 6/21 | $10,725,115 | $12,097,201 | $10,606,344 |
| 7/21 | $10,726,530 | $12,218,672 | $10,606,880 |
| 8/21 | $10,727,878 | $12,210,516 | $10,607,300 |
| 9/21 | $10,729,086 | $12,106,243 | $10,607,879 |
| 10/21 | $10,730,292 | $12,096,349 | $10,607,445 |
| 11/21 | $10,731,496 | $12,110,961 | $10,608,154 |
| 12/21 | $10,732,745 | $12,102,794 | $10,608,907 |
| 1/22 | $10,733,960 | $11,837,451 | $10,608,429 |
| 2/22 | $10,724,438 | $11,676,059 | $10,609,790 |
| 3/22 | $10,726,987 | $11,362,805 | $10,613,062 |
| 4/22 | $10,730,936 | $10,939,001 | $10,614,554 |
| 5/22 | $10,738,711 | $10,999,189 | $10,621,865 |
| 6/22 | $10,750,042 | $10,779,398 | $10,624,182 |
| 7/22 | $10,767,089 | $11,050,414 | $10,629,626 |
| 8/22 | $10,789,597 | $10,763,144 | $10,646,783 |
| 9/22 | $10,813,423 | $10,299,427 | $10,673,279 |
| 10/22 | $10,832,251 | $10,186,419 | $10,690,030 |
| 11/22 | $10,866,945 | $10,566,235 | $10,724,503 |
| 12/22 | $10,917,694 | $10,530,347 | $10,763,320 |
| 1/23 | $10,971,382 | $10,857,002 | $10,797,026 |
| 2/23 | $11,011,746 | $10,590,227 | $10,832,267 |
| 3/23 | $11,046,207 | $10,838,666 | $10,878,859 |
| 4/23 | $11,103,019 | $10,904,878 | $10,913,100 |
| 5/23 | $11,151,940 | $10,791,819 | $10,955,841 |
| 6/23 | $11,189,708 | $10,775,047 | $11,005,980 |
| 7/23 | $11,252,731 | $10,785,759 | $11,049,806 |
| 8/23 | $11,306,239 | $10,720,808 | $11,099,699 |
| 9/23 | $11,358,187 | $10,465,169 | $11,150,562 |
| 10/23 | $11,412,534 | $10,307,792 | $11,200,368 |
| 11/23 | $11,465,642 | $10,771,693 | $11,250,652 |
| 12/23 | $11,532,113 | $11,180,416 | $11,303,093 |
| 1/24 | $11,587,299 | $11,153,659 | $11,351,393 |
| 2/24 | $11,638,874 | $11,019,932 | $11,397,898 |
| 3/24 | $11,682,275 | $11,128,131 | $11,449,079 |
| 4/24 | $11,735,632 | $10,868,084 | $11,498,205 |
| 5/24 | $11,791,129 | $11,048,236 | $11,553,382 |
| 6/24 | $11,844,876 | $11,149,235 | $11,600,495 |
| 7/24 | $11,912,275 | $11,402,297 | $11,652,458 |
| 8/24 | $11,967,477 | $11,570,150 | $11,708,201 |
| 9/24 | $12,031,606 | $11,728,840 | $11,758,991 |
Average Annual Total Returns (%)
| AATR | 1 Year | 5 Years | Since 4/28/16 (Inception) |
|---|
| Class IR | 5.93% | 2.55% | 2.22% |
Bloomberg U.S. Universal IndexFootnote Reference1 | 12.08% | 0.70% | 1.91% |
| ICE BofA 3-Month U.S. Treasury Bill Index | 5.46% | 2.32% | 1.94% |
| Footnote | Description |
Footnote1 | In accordance with regulatory changes requiring the Fund's primary benchmark to represent the overall applicable market, the Fund's primary prospectus benchmark changed to the indicated benchmark effective May 1, 2024. |
Performance does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Performance assumes that all dividends and distributions, if any, were reinvested. For more recent performance information, visit www.morganstanley.com/im/shareholderreports.
THE FUND'S PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
| Total Net Assets | $11,231,150,088 |
| # of Portfolio Holdings | 136 |
| Portfolio Turnover Rate | 0% |
| Total Advisory Fees Paid | $17,073,139 |
What did the Fund invest in?
The following tables reflect what the Fund invested in as of the report date.
Asset Allocation (% of total investments)
| Value | Value |
|---|
| Time Deposits | 4.8% |
| Certificates of Deposit | 12.8% |
| Corporate Bonds | 17.3% |
| Floating Rate Notes | 18.8% |
| Commercial Paper | 22.7% |
| Repurchase Agreements | 23.6% |
Credit Quality (% of net assets)Footnote Referencea
| Value | Value |
|---|
| Cash | 73.5% |
| BBB | 3.6% |
| A | 18.3% |
| AA | 4.7% |
| Footnote | Description |
Footnotea | Security ratings disclosed is an aggregation of the highest security level rating amongst S&P Global Ratings, Moody's Investors Services, Inc., and Fitch Ratings, each a Nationally Recognized Statistical Ratings Organization. |
If you wish to view additional information about the Fund, including the prospectus, statement of additional information, financial statements and holdings, please scan the QR code or visit www.morganstanley.com/im/shareholderreports. For proxy information, please visit www.morganstanley.com/im/en-us/institutional-investor/about-us/proxy-voting/vote-summary-report.desktop.html.
The Funds may deliver a single copy of certain required shareholder documents (including prospectuses, shareholder reports, and proxy materials) to investors with the same last name and the same address. Your participation will continue indefinitely unless you instruct otherwise by calling 1-800-869-6397 or by contacting your financial intermediary. Your instruction will typically be effective within 30 days of receipt.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Annual Shareholder Report September 30, 2024
(b) Not applicable.
Item 2. Code of Ethics
The registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. The Registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1 (212) 259-1155. The Registrant has not amended the code of ethics as described in Form N-CSR during the period covered by this report. The registrant has not granted any waiver, including an implicit waiver, from a provision of the code of ethics as described in Form N-CSR during the period covered by this report.
Item 3. Audit Committee Financial Expert
The registrant's Board of Trustees has determined that Jakki L. Haussler, an “independent” Trustee, is an “audit committee financial expert" serving on its audit committee. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or the liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services
(a) – (d)
The following table presents the aggregate fees billed to the registrant for the registrant’s fiscal years ended September 30, 2023 and September 30, 2024 by the registrant’s principal accountant, Ernst & Young LLP, for professional services rendered for the audit of the registrant’s annual financial statements and fees billed for other services rendered by Ernst & Young LLP during those periods.
2024
| | | Registrant | | | Covered Entities(1) | |
| Audit Fees | | $ | 418,223 | | | $ | N/A | |
| Non-Audit Fees | | | | | | | | |
| Audit Related Fees | | $ | — | (2) | | $ | — | (2) |
| Tax Fees | | $ | — | (3) | | $ | — | (4) |
| All Other Fees | | $ | — | | | $ | 372,395 | (5) |
| Total Non-Audit Fees | | $ | — | | | $ | 372,395 | |
| | | | | | | | | |
| Total | | $ | 418,223 | | | $ | 372,395 | |
2023
| | | Registrant | | | Covered Entities(1) | |
| Audit Fees | | $ | 586,943 | | | $ | N/A | |
| Non-Audit Fees | | | | | | | | |
| Audit Related Fees | | $ | — | (2) | | $ | — | (2) |
| Tax Fees | | $ | — | (3) | | $ | — | (4) |
| All Other Fees | | $ | — | | | $ | 1,586,712 | (5) |
| Total Non-Audit Fees | | $ | — | | | $ | 1,586,712 | |
| | | | | | | | | |
| Total | | $ | 586,943 | | | $ | 1,586,712 | |
N/A – Not applicable, as not required by Item 4.
(1) Covered Entities include the Adviser (excluding sub-advisors) and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Registrant.
(2) Audit-Related Fees represent assurance and related services provided that are reasonably related to the performance of the audit of the financial statements of the Covered Entities' and funds advised by the Adviser or its affiliates, specifically data verification and agreed-upon procedures related to asset securitizations and agreed-upon procedures engagements.
(3) Tax Fees represent tax compliance, tax planning and tax advice services provided in connection with the preparation and review of the Registrant’s tax returns.
(4) Tax Fees represent tax compliance, tax planning and tax advice services provided in connection with the review of Covered Entities' tax returns.
(5) The Fees included under “All Other Fees” are for services provided by Ernst & Young LLP related to surprise examinations for certain investment accounts to satisfy SEC Custody Rules and consulting services related to merger integration for sister entity to the Adviser.
(e)(1) The registrant’s audit committee has adopted policies and procedures relating to the pre-approval of services provided by the registrant’s principal accountant (the “Pre-Approval Policies”). The Pre-Approval Policies establish a framework intended to assist the audit committee in the proper discharge of its pre-approval responsibilities. As a general matter, the Pre-Approval Policies (i) specify certain types of audit, audit-related, tax, and other services determined to be pre-approved by the audit committee; and (ii) delineate specific procedures governing the mechanics of the pre-approval process, including the approval and monitoring of audit and non-audit service fees. Unless a service is specifically pre-approved under the Pre-Approval Policies, it must be separately pre-approved by the Audit Committee.
The Pre-Approval Policies and the types of audit and non-audit services pre-approved therein must be reviewed and ratified by the registrant’s audit committee at least annually. The registrant’s audit committee maintains full responsibility for the appointment, compensation, and oversight of the work of the registrant’s principal accountant.
(e)(2) No services described in paragraphs (b)-(d) above were approved by the registrant’s audit committee pursuant to the “de minimis exception” set forth in Rule 2-01 (c)(7)(i)(C) of Regulation S-X.
(f) Not applicable.
(g) See table above.
(h) The registrant’s audit committee has considered whether the provision by the registrant’s principal accountant of non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X is compatible with maintaining the principal accountant’s independence.
(i) Not applicable.
(j) Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
| (a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies
Morgan Stanley Institutional Fund Trust
Corporate Bond Portfolio
Annual Financial Statements and Additional Information
September 30, 2024
Morgan Stanley Institutional Fund Trust
September 30, 2024
Table of Contents (unaudited)
Portfolio of Investments | | | 2 | | |
Statement of Assets and Liabilities | | | 8 | | |
Statement of Operations | | | 10 | | |
Statements of Changes in Net Assets | | | 11 | | |
Financial Highlights | | | 12 | | |
Notes to Financial Statements | | | 16 | | |
Report of Independent Registered Public Accounting Firm | | | 25 | | |
Investment Advisory Agreement Approval | | | 26 | | |
Federal Tax Notice | | | 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) 869-6397. Please read the prospectuses carefully before you invest or send money.
Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.
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
September 30, 2024
Portfolio of Investments
Corporate Bond Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Fixed Income Securities (93.1%) | |
Commercial Mortgage-Backed Security (1.1%) | |
J.P. Morgan Chase Commercial Mortgage
Securities Trust, | |
1 Month Term SOFR + 2.18%, 7.28%,
9/15/39 (a)(b) | | $ | 1,300 | | | $ | 1,304 | | |
Corporate Bonds (91.8%) | |
Finance (34.7%) | |
AerCap Ireland Capital DAC/AerCap
Global Aviation Trust, | |
2.45%, 10/29/26 | | | 625 | | | | 600 | | |
AIB Group PLC, | |
6.61%, 9/13/29 (a) | | | 675 | | | | 723 | | |
Aircastle Ltd./Aircastle Ireland DAC, | |
5.75%, 10/1/31 (a) | | | 300 | | | | 309 | | |
Ally Financial, Inc., | |
2.20%, 11/2/28 | | | 300 | | | | 270 | | |
6.18%, 7/26/35 | | | 150 | | | | 154 | | |
American National Group, Inc., | |
6.14%, 6/13/32 (a) | | | 550 | | | | 547 | | |
Aon North America, Inc., | |
5.75%, 3/1/54 | | | 300 | | | | 318 | | |
Athene Global Funding, | |
5.62%, 5/8/26 (a) | | | 600 | | | | 610 | | |
Banco de Credito e Inversiones SA, | |
2.88%, 10/14/31 (a) | | | 200 | | | | 179 | | |
Banco Santander SA, | |
4.18%, 3/24/28 | | | 600 | | | | 594 | | |
5.44%, 7/15/31 | | | 400 | | | | 418 | | |
5.54%, 3/14/30 | | | 600 | | | | 621 | | |
6.35%, 3/14/34 | | | 400 | | | | 428 | | |
Bank of America Corp., | |
5.87%, 9/15/34 | | | 3,025 | | | | 3,265 | | |
MTN | |
5.43%, 8/15/35 | | | 450 | | | | 461 | | |
Bank of Ireland Group PLC, | |
5.60%, 3/20/30 (a) | | | 800 | | | | 831 | | |
Bank of New York Mellon Corp., | |
5.06%, 7/22/32 | | | 275 | | | | 285 | | |
MTN | |
6.47%, 10/25/34 | | | 725 | | | | 820 | | |
Bank of Nova Scotia, | |
8.00%, 1/27/84 | | | 200 | | | | 215 | | |
Banque Federative du Credit Mutuel SA, | |
5.79%, 7/13/28 (a) | | | 650 | | | | 682 | | |
BBVA Bancomer SA, | |
8.45%, 6/29/38 (a) | | | 200 | | | | 218 | | |
Centene Corp., | |
2.50%, 3/1/31 | | | 1,000 | | | | 860 | | |
Charles Schwab Corp., | |
6.14%, 8/24/34 | | | 700 | | | | 766 | | |
| | | Face
Amount
(000) | | Value
(000) | |
Citigroup, Inc., | |
3.79%, 3/17/33 | | $ | 600 | | | $ | 562 | | |
4.54%, 9/19/30 | | | 1,425 | | | | 1,427 | | |
5.45%, 6/11/35 | | | 500 | | | | 522 | | |
COPT Defense Properties LP, | |
2.75%, 4/15/31 | | | 350 | | | | 306 | | |
Deutsche Bank AG, | |
5.00%, 9/11/30 | | | 275 | | | | 277 | | |
6.82%, 11/20/29 | | | 225 | | | | 242 | | |
Enact Holdings, Inc., | |
6.25%, 5/28/29 | | | 900 | | | | 935 | | |
Essent Group Ltd., | |
6.25%, 7/1/29 | | | 725 | | | | 757 | | |
Extra Space Storage LP, | |
3.90%, 4/1/29 | | | 750 | | | | 733 | | |
5.70%, 4/1/28 | | | 325 | | | | 338 | | |
GATX Corp., | |
5.40%, 3/15/27 | | | 375 | | | | 385 | | |
Global Atlantic Fin Co., | |
6.75%, 3/15/54 (a) | | | 275 | | | | 293 | | |
7.95%, 10/15/54 (a) | | | 325 | | | | 340 | | |
Goldman Sachs Group, Inc., | |
5.85%, 4/25/35 | | | 1,725 | | | | 1,854 | | |
High Street Funding Trust I, | |
4.11%, 2/15/28 (a) | | | 850 | | | | 828 | | |
HSBC Holdings PLC, | |
5.73%, 5/17/32 | | | 200 | | | | 211 | | |
Intact Financial Corp., | |
5.46%, 9/22/32 (a) | | | 825 | | | | 847 | | |
Intesa Sanpaolo SpA, | |
7.00%, 11/21/25 (a) | | | 525 | | | | 538 | | |
7.20%, 11/28/33 (a) | | | 575 | | | | 655 | | |
Jefferies Financial Group, Inc., | |
6.20%, 4/14/34 | | | 450 | | | | 482 | | |
JPMorgan Chase & Co., | |
5.34%, 1/23/35 | | | 2,900 | | | | 3,032 | | |
5.77%, 4/22/35 | | | 225 | | | | 243 | | |
Kite Realty Group LP, | |
5.50%, 3/1/34 | | | 675 | | | | 696 | | |
LPL Holdings, Inc., | |
6.00%, 5/20/34 | | | 500 | | | | 523 | | |
Lseg U.S. Fin Corp., | |
5.30%, 3/28/34 (a) | | | 575 | | | | 603 | | |
Macquarie Airfinance Holdings Ltd., | |
6.50%, 3/26/31 (a) | | | 175 | | | | 185 | | |
Mitsubishi HC Finance America LLC, | |
5.15%, 10/24/29 (a) | | | 600 | | | | 614 | | |
National Australia Bank Ltd., | |
2.33%, 8/21/30 (a) | | | 375 | | | | 327 | | |
PNC Financial Services Group, Inc., | |
5.49%, 5/14/30 | | | 400 | | | | 418 | | |
6.88%, 10/20/34 | | | 725 | | | | 830 | | |
The accompanying notes are an integral part of the financial statements.
2
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Corporate Bond Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Finance (cont'd) | |
Rocket Mortgage LLC/Rocket Mortgage
Co-Issuer, Inc., | |
3.88%, 3/1/31 (a) | | $ | 545 | | | $ | 502 | | |
Shinhan Bank Co. Ltd., | |
4.00%, 4/23/29 (a) | | | 875 | | | | 845 | | |
SMBC Aviation Capital Finance DAC, | |
2.30%, 6/15/28 (a) | | | 350 | | | | 323 | | |
5.55%, 4/3/34 (a) | | | 525 | | | | 542 | | |
Sumitomo Mitsui Trust Bank Ltd., | |
4.85%, 9/10/34 (a) | | | 700 | | | | 708 | | |
Swiss RE Subordinated Finance PLC, | |
5.70%, 4/5/35 (a) | | | 400 | | | | 414 | | |
Synchrony Financial, | |
4.50%, 7/23/25 | | | 600 | | | | 597 | | |
Synovus Financial Corp., | |
5.20%, 8/11/25 | | | 475 | | | | 475 | | |
Toronto-Dominion Bank, | |
8.13%, 10/31/82 | | | 350 | | | | 376 | | |
U.S. Bancorp, | |
5.10%, 7/23/30 | | | 600 | | | | 618 | | |
5.68%, 1/23/35 | | | 250 | | | | 265 | | |
5.85%, 10/21/33 | | | 275 | | | | 293 | | |
UBS Group AG, | |
3.09%, 5/14/32 (a) | | | 675 | | | | 609 | | |
9.02%, 11/15/33 (a) | | | 850 | | | | 1,075 | | |
UnitedHealth Group, Inc., | |
5.75%, 7/15/64 | | | 725 | | | | 783 | | |
Ventas Realty LP, | |
5.63%, 7/1/34 | | | 600 | | | | 632 | | |
| | | | 43,234 | | |
Industrials (47.8%) | |
AbbVie, Inc., | |
4.50%, 5/14/35 | | | 475 | | | | 474 | | |
5.50%, 3/15/64 | | | 375 | | | | 401 | | |
Adventist Health System, | |
5.43%, 3/1/32 | | | 325 | | | | 334 | | |
Alaska Airlines 2020-1 Class A Pass-Through
Trust, | |
4.80%, 2/15/29 (a) | | | 343 | | | | 343 | | |
Alibaba Group Holding Ltd., | |
2.70%, 2/9/41 | | | 440 | | | | 326 | | |
Amgen, Inc., | |
4.20%, 3/1/33 | | | 475 | | | | 462 | | |
Anheuser-Busch Cos. LLC/Anheuser-Busch
InBev Worldwide, Inc., | |
4.90%, 2/1/46 | | | 525 | | | | 517 | | |
AP Moller - Maersk AS, | |
5.88%, 9/14/33 (a) | | | 225 | | | | 241 | | |
Apple, Inc., | |
2.95%, 9/11/49 | | | 875 | | | | 648 | | |
Aptiv PLC/Aptiv Global Financing DAC, | |
5.15%, 9/13/34 | | | 200 | | | | 197 | | |
| | | Face
Amount
(000) | | Value
(000) | |
Arches Buyer, Inc., | |
4.25%, 6/1/28 (a) | | $ | 325 | | | $ | 299 | | |
Arrow Electronics, Inc., | |
5.15%, 8/21/29 | | | 575 | | | | 584 | | |
AT&T, Inc., | |
3.55%, 9/15/55 | | | 900 | | | | 659 | | |
3.65%, 6/1/51 | | | 250 | | | | 192 | | |
4.50%, 5/15/35 | | | 725 | | | | 706 | | |
BAE Systems PLC, | |
5.30%, 3/26/34 (a) | | | 200 | | | | 208 | | |
BAT Capital Corp., | |
2.26%, 3/25/28 | | | 575 | | | | 535 | | |
3.73%, 9/25/40 | | | 250 | | | | 199 | | |
6.00%, 2/20/34 | | | 350 | | | | 374 | | |
Boeing Co., | |
5.81%, 5/1/50 | | | 275 | | | | 266 | | |
6.26%, 5/1/27 (a) | | | 100 | | | | 103 | | |
6.30%, 5/1/29 (a) | | | 200 | | | | 210 | | |
6.86%, 5/1/54 (a) | | | 410 | | | | 450 | | |
BP Capital Markets America, Inc., | |
5.23%, 11/17/34 | | | 475 | | | | 495 | | |
BP Capital Markets PLC, | |
4.88%, 3/22/30 (c) | | | 550 | | | | 546 | | |
Bristol-Myers Squibb Co., | |
5.65%, 2/22/64 | | | 400 | | | | 424 | | |
Broadcom, Inc., | |
3.19%, 11/15/36 (a) | | | 425 | | | | 360 | | |
Brunswick Corp., | |
5.85%, 3/18/29 | | | 300 | | | | 310 | | |
Burlington Northern Santa Fe LLC, | |
5.50%, 3/15/55 | | | 225 | | | | 243 | | |
Campbell Soup Co., | |
5.40%, 3/21/34 | | | 426 | | | | 447 | | |
Celanese US Holdings LLC, | |
6.35%, 11/15/28 | | | 575 | | | | 607 | | |
6.70%, 11/15/33 | | | 366 | | | | 401 | | |
Charter Communications Operating LLC/Charter
Communications Operating Capital, | |
3.70%, 4/1/51 | | | 375 | | | | 240 | | |
3.90%, 6/1/52 | | | 200 | | | | 131 | | |
4.80%, 3/1/50 | | | 325 | | | | 249 | | |
6.38%, 10/23/35 | | | 175 | | | | 179 | | |
Cisco Systems, Inc., | |
5.90%, 2/15/39 | | | 225 | | | | 254 | | |
Coca-Cola Consolidated, Inc., | |
5.25%, 6/1/29 | | | 575 | | | | 598 | | |
Columbia Pipelines Holding Co. LLC, | |
6.04%, 8/15/28 (a) | | | 250 | | | | 262 | | |
Comcast Corp., | |
2.89%, 11/1/51 | | | 325 | | | | 219 | | |
3.75%, 4/1/40 | | | 1,150 | | | | 996 | | |
Concentrix Corp., | |
6.65%, 8/2/26 | | | 575 | | | | 591 | | |
The accompanying notes are an integral part of the financial statements.
3
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Corporate Bond Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Industrials (cont'd) | |
Continental Resources, Inc., | |
2.88%, 4/1/32 (a) | | $ | 675 | | | $ | 571 | | |
CSL Finance PLC, | |
5.11%, 4/3/34 (a) | | | 400 | | | | 415 | | |
CVS Health Corp., | |
1.88%, 2/28/31 | | | 550 | | | | 463 | | |
6.05%, 6/1/54 | | | 250 | | | | 261 | | |
Delta Air Lines, Inc./SkyMiles IP Ltd., | |
4.75%, 10/20/28 (a) | | | 875 | | | | 874 | | |
Diamondback Energy, Inc., | |
5.40%, 4/18/34 | | | 200 | | | | 204 | | |
6.25%, 3/15/33 | | | 450 | | | | 486 | | |
Eli Lilly & Co., | |
5.10%, 2/9/64 | | | 225 | | | | 230 | | |
Enbridge, Inc., | |
5.63%, 4/5/34 | | | 550 | | | | 577 | | |
Energy Transfer LP, | |
5.55%, 5/15/34 | | | 750 | | | | 777 | | |
EnLink Midstream LLC, | |
5.65%, 9/1/34 | | | 325 | | | | 336 | | |
Enterprise Products Operating LLC, | |
3.20%, 2/15/52 | | | 275 | | | | 195 | | |
5.35%, 1/31/33 | | | 675 | | | | 709 | | |
EQM Midstream Partners LP, | |
4.50%, 1/15/29 (a) | | | 375 | | | | 367 | | |
6.50%, 7/1/27 (a) | | | 350 | | | | 361 | | |
Ferrellgas LP/Ferrellgas Finance Corp., | |
5.88%, 4/1/29 (a) | | | 325 | | | | 304 | | |
Fiserv, Inc., | |
5.35%, 3/15/31 | | | 550 | | | | 576 | | |
Ford Motor Credit Co. LLC, | |
6.95%, 3/6/26 | | | 1,000 | | | | 1,024 | | |
7.35%, 3/6/30 | | | 1,225 | | | | 1,327 | | |
Gilead Sciences, Inc., | |
4.75%, 3/1/46 | | | 725 | | | | 694 | | |
Glencore Funding LLC, | |
6.50%, 10/6/33 (a) | | | 400 | | | | 442 | | |
HCA, Inc., | |
3.50%, 7/15/51 | | | 125 | | | | 90 | | |
Home Depot, Inc., | |
4.95%, 6/25/34 | | | 875 | | | | 910 | | |
Hyundai Capital America, | |
3.00%, 2/10/27 (a) | | | 1,050 | | | | 1,017 | | |
Imperial Brands Finance PLC, | |
6.13%, 7/27/27 (a) | | | 825 | | | | 858 | | |
Intel Corp., | |
3.25%, 11/15/49 | | | 300 | | | | 202 | | |
4.90%, 8/5/52 | | | 275 | | | | 241 | | |
JBS USA LUX SA/JBS USA Food Co./JBS USA
Finance, Inc., | |
2.50%, 1/15/27 | | | 550 | | | | 527 | | |
JDE Peet's NV, | |
1.38%, 1/15/27 (a) | | | 875 | | | | 817 | | |
| | | Face
Amount
(000) | | Value
(000) | |
John Deere Capital Corp., | |
4.40%, 9/8/31 | | $ | 650 | | | $ | 655 | | |
Kroger Co., | |
5.00%, 9/15/34 | | | 350 | | | | 353 | | |
Kyndryl Holdings, Inc., | |
6.35%, 2/20/34 | | | 425 | | | | 455 | | |
Las Vegas Sands Corp., | |
5.90%, 6/1/27 | | | 250 | | | | 257 | | |
6.00%, 8/15/29 | | | 160 | | | | 166 | | |
Lithia Motors, Inc., | |
3.88%, 6/1/29 (a) | | | 325 | | | | 304 | | |
MasTec, Inc., | |
5.90%, 6/15/29 | | | 425 | | | | 444 | | |
Mastercard, Inc., | |
4.55%, 1/15/35 | | | 650 | | | | 653 | | |
Meta Platforms, Inc., | |
5.55%, 8/15/64 | | | 75 | | | | 80 | | |
5.75%, 5/15/63 | | | 375 | | | | 411 | | |
Mitsubishi Corp., | |
5.13%, 7/17/34 (a) | | | 300 | | | | 311 | | |
Netflix, Inc., | |
5.40%, 8/15/54 | | | 150 | | | | 159 | | |
Newcastle Coal Infrastructure Group Pty. Ltd., | |
4.40%, 9/29/27 (a) | | | 590 | | | | 581 | | |
Newmont Corp./Newcrest Finance Pty. Ltd., | |
5.35%, 3/15/34 | | | 300 | | | | 315 | | |
Nexa Resources SA, | |
6.75%, 4/9/34 (a) | | | 200 | | | | 213 | | |
Northern Natural Gas Co., | |
5.63%, 2/1/54 (a) | | | 400 | | | | 418 | | |
Novartis Capital Corp., | |
4.20%, 9/18/34 | | | 575 | | | | 567 | | |
Occidental Petroleum Corp., | |
5.38%, 1/1/32 | | | 875 | | | | 888 | | |
5.55%, 10/1/34 | | | 175 | | | | 178 | | |
ONEOK, Inc., | |
6.05%, 9/1/33 | | | 875 | | | | 935 | | |
Oracle Corp., | |
3.60%, 4/1/50 | | | 1,175 | | | | 895 | | |
Penske Truck Leasing Co. LP/PTL Finance Corp., | |
6.05%, 8/1/28 (a) | | | 575 | | | | 605 | | |
Perrigo Finance Unlimited Co., | |
4.90%, 6/15/30 | | | 525 | | | | 512 | | |
Pfizer Investment Enterprises Pte. Ltd., | |
5.34%, 5/19/63 | | | 850 | | | | 874 | | |
Philip Morris International, Inc., | |
5.13%, 11/17/27 | | | 250 | | | | 257 | | |
5.25%, 2/13/34 | | | 475 | | | | 493 | | |
Qorvo, Inc., | |
3.38%, 4/1/31 (a) | | | 700 | | | | 627 | | |
Raizen Fuels Finance SA, | |
5.70%, 1/17/35 (a) | | | 275 | | | | 275 | | |
6.45%, 3/5/34 (a) | | | 206 | | | | 218 | | |
The accompanying notes are an integral part of the financial statements.
4
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Corporate Bond Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Industrials (cont'd) | |
Rio Tinto Finance USA Ltd., | |
5.20%, 11/2/40 | | $ | 550 | | | $ | 570 | | |
Roche Holdings, Inc., | |
2.08%, 12/13/31 (a) | | | 775 | | | | 670 | | |
Rogers Communications, Inc., | |
5.30%, 2/15/34 | | | 850 | | | | 865 | | |
RTX Corp., | |
6.40%, 3/15/54 | | | 250 | | | | 295 | | |
Sabine Pass Liquefaction LLC, | |
4.50%, 5/15/30 | | | 575 | | | | 574 | | |
Sherwin-Williams Co., | |
4.80%, 9/1/31 | | | 150 | | | | 153 | | |
Silgan Holdings, Inc., | |
1.40%, 4/1/26 (a) | | | 500 | | | | 475 | | |
Smithfield Foods, Inc., | |
3.00%, 10/15/30 (a) | | | 850 | | | | 762 | | |
Smurfit Kappa Treasury ULC, | |
5.44%, 4/3/34 (a) | | | 200 | | | | 209 | | |
Sonoco Products Co., | |
4.45%, 9/1/26 | | | 550 | | | | 550 | | |
South Bow USA Infrastructure Holdings LLC, | |
4.91%, 9/1/27 (a) | | | 300 | | | | 302 | | |
Syngenta Finance NV, | |
4.89%, 4/24/25 (a) | | | 300 | | | | 299 | | |
Tapestry, Inc., | |
7.00%, 11/27/26 | | | 20 | | | | 21 | | |
Tencent Holdings Ltd., | |
2.39%, 6/3/30 (a) | | | 200 | | | | 181 | | |
3.98%, 4/11/29 (a) | | | 300 | | | | 297 | | |
Thermo Fisher Scientific, Inc., | |
5.20%, 1/31/34 (d) | | | 550 | | | | 581 | | |
T-Mobile USA, Inc., | |
2.70%, 3/15/32 | | | 375 | | | | 331 | | |
5.25%, 6/15/55 | | | 275 | | | | 274 | | |
TotalEnergies Capital SA, | |
5.64%, 4/5/64 | | | 250 | | | | 261 | | |
Transportadora de Gas Internacional SA ESP, | |
5.55%, 11/1/28 (a) | | | 200 | | | | 202 | | |
Uber Technologies, Inc., | |
4.30%, 1/15/30 | | | 350 | | | | 349 | | |
4.80%, 9/15/34 | | | 300 | | | | 300 | | |
United Airlines Pass-Through Trust, | |
Series 2020-1 | |
5.88%, 4/15/29 | | | 428 | | | | 437 | | |
Series 2024-1 | |
5.45%, 8/15/38 | | | 450 | | | | 470 | | |
Universal Health Services, Inc., | |
5.05%, 10/15/34 | | | 350 | | | | 344 | | |
Var Energi ASA, | |
7.50%, 1/15/28 (a) | | | 600 | | | | 643 | | |
Verisk Analytics, Inc., | |
5.25%, 6/5/34 | | | 575 | | | | 594 | | |
| | | Face
Amount
(000) | | Value
(000) | |
Verizon Communications, Inc., | |
1.75%, 1/20/31 | | $ | 1,025 | | | $ | 875 | | |
2.55%, 3/21/31 | | | 675 | | | | 603 | | |
VICI Properties LP, | |
5.75%, 4/1/34 | | | 575 | | | | 603 | | |
Videotron Ltd., | |
3.63%, 6/15/29 (a) | | | 650 | | | | 621 | | |
Warnermedia Holdings, Inc., | |
4.28%, 3/15/32 (d) | | | 425 | | | | 378 | | |
5.14%, 3/15/52 | | | 150 | | | | 116 | | |
| | | | 59,439 | | |
Utilities (9.3%) | |
AEP Transmission Co. LLC, | |
5.40%, 3/15/53 | | | 475 | | | | 493 | | |
Algonquin Power & Utilities Corp., | |
5.37%, 6/15/26 (e) | | | 300 | | | | 304 | | |
Atmos Energy Corp., | |
6.20%, 11/15/53 | | | 250 | | | | 289 | | |
Berkshire Hathaway Energy Co., | |
2.85%, 5/15/51 | | | 300 | | | | 203 | | |
Calpine Corp., | |
5.13%, 3/15/28 (a) | | | 300 | | | | 296 | | |
Cleveland Electric Illuminating Co., | |
4.55%, 11/15/30 (a) | | | 250 | | | | 251 | | |
Consolidated Edison Co. of New York, Inc., | |
5.90%, 11/15/53 | | | 425 | | | | 471 | | |
Constellation Energy Generation LLC, | |
5.75%, 3/15/54 | | | 300 | | | | 318 | | |
Dominion Energy, Inc., | |
5.38%, 11/15/32 | | | 400 | | | | 419 | | |
DTE Energy Co., | |
4.95%, 7/1/27 | | | 200 | | | | 203 | | |
5.85%, 6/1/34 | | | 650 | | | | 698 | | |
Duke Energy Florida LLC, | |
6.20%, 11/15/53 | | | 525 | | | | 604 | | |
Duke Energy Indiana LLC, | |
2.75%, 4/1/50 | | | 330 | | | | 217 | | |
Engie SA, | |
5.25%, 4/10/29 (a) | | | 200 | | | | 207 | | |
5.63%, 4/10/34 (a) | | | 400 | | | | 421 | | |
Entergy Texas, Inc., | |
3.55%, 9/30/49 | | | 200 | | | | 152 | | |
FirstEnergy Corp., | |
Series C | |
3.40%, 3/1/50 | | | 250 | | | | 183 | | |
FirstEnergy Pennsylvania Electric Co., | |
5.15%, 3/30/26 (a) | | | 300 | | | | 303 | | |
5.20%, 4/1/28 (a) | | | 325 | | | | 333 | | |
FirstEnergy Transmission LLC, | |
5.00%, 1/15/35 (a) | | | 300 | | | | 305 | | |
Georgia Power Co., | |
Series A | |
3.25%, 3/15/51 | | | 325 | | | | 240 | | |
The accompanying notes are an integral part of the financial statements.
5
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Corporate Bond Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Utilities (cont'd) | |
Liberty Utilities Co., | |
5.58%, 1/31/29 (a) | | $ | 800 | | | $ | 828 | | |
MidAmerican Energy Co., | |
3.15%, 4/15/50 | | | 250 | | | | 183 | | |
Narragansett Electric Co., | |
5.35%, 5/1/34 (a) | | | 650 | | | | 677 | | |
New England Power Co., | |
5.94%, 11/25/52 (a) | | | 200 | | | | 215 | | |
NextEra Energy Capital Holdings, Inc., | |
5.25%, 3/15/34 | | | 625 | | | | 649 | | |
Pacific Gas & Electric Co., | |
3.30%, 8/1/40 | | | 375 | | | | 291 | | |
4.95%, 7/1/50 | | | 350 | | | | 319 | | |
5.90%, 10/1/54 | | | 100 | | | | 104 | | |
PacifiCorp, | |
4.15%, 2/15/50 | | | 225 | | | | 187 | | |
Southern California Edison Co., | |
5.88%, 12/1/53 | | | 275 | | | | 299 | | |
Southwestern Public Service Co., | |
6.00%, 6/1/54 | | | 525 | | | | 575 | | |
Virginia Electric & Power Co., | |
5.05%, 8/15/34 | | | 275 | | | | 282 | | |
| | | | 11,519 | | |
| | | | 114,192 | | |
Sovereign (0.2%) | |
Petroleos Mexicanos, | |
6.50%, 3/13/27 | | | 302 | | | | 296 | | |
Total Fixed Income Securities (Cost $112,164) | | | 115,792 | | |
| | | Shares | | | |
Investment Companies (1.3%) | |
Calvert Ultra-Short Investment Grade ETF
(See Note G) | | | 11,500 | | | | 583 | | |
Eaton Vance Ultra-Short Income ETF
(See Note G) | | | 20,930 | | | | 1,062 | | |
Total Investment Companies (Cost $1,639) | | | 1,645 | | |
Short-Term Investments (5.4%) | |
Investment Company (3.1%) | |
Morgan Stanley Institutional Liquidity
Funds — Government Portfolio —
Institutional Class, 4.85% (See Note G)
(Cost $3,899) | | | 3,899,262 | | | | 3,899 | | |
Securities held as Collateral on Loaned Securities (0.8%) | |
Investment Company (0.8%) | |
Morgan Stanley Institutional Liquidity
Funds — Government Portfolio —
Institutional Class, 4.85% (See Note G)
(Cost $986) | | | 985,938 | | | | 986 | | |
| | | Face
Amount
(000) | | Value
(000) | |
U.S. Treasury Security (1.5%) | |
U.S. Treasury Bill,
5.19%, 1/16/25 (f)(g) (Cost $1,837) | | $ | 1,865 | | | $ | 1,841 | | |
Total Short-Term Investments (Cost $6,722) | | | 6,726 | | |
Total Investments (99.8%) (Cost $120,525)
Including $965 of Securities Loaned (h)(i) | | | 124,163 | | |
Other Assets in Excess of Liabilities (0.2%) | | | 310 | | |
Net Assets (100.0%) | | $ | 124,473 | | |
(a) 144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.
(b) Floating or variable rate securities: The rates disclosed are as of September 30, 2024. 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) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time after which they revert to a floating rate. Interest rates in effect are as of September 30, 2024.
(d) All or a portion of this security was on loan at September 30, 2024.
(e) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of September 30, 2024. Maturity date disclosed is the ultimate maturity date.
(f) Rate shown is the yield to maturity at September 30, 2024.
(g) All or a portion of the security was pledged to cover margin requirements for futures contracts.
(h) Securities are available for collateral in connection with open futures contracts.
(i) At September 30, 2024, the aggregate cost for federal income tax purposes is approximately $133,739,000. The aggregate gross unrealized appreciation is approximately $4,463,000 and the aggregate gross unrealized depreciation is approximately $920,000, resulting in net unrealized appreciation of approximately $3,543,000.
DAC Designated Activity Company.
ETF Exchange Traded Fund.
MTN Medium Term Note.
SOFR Secured Overnight Financing Rate.
The accompanying notes are an integral part of the financial statements.
6
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Corporate Bond Portfolio
Futures Contracts:
The Fund had the following futures contracts open at September 30, 2024:
| | | Number of
Contracts | | Expiration
Date | | Notional
Amount
(000) | | Value
(000) | | Unrealized
Appreciation
(Depreciation)
(000) | |
Long: | |
U.S. Treasury Long Bond (United States) | | | 123 | | | Dec-24 | | $ | 12,300 | | | $ | 15,275 | | | $ | (31 | ) | |
U.S. Treasury 2 yr. Note (United States) | | | 55 | | | Dec-24 | | | 11,000 | | | | 11,453 | | | | 23 | | |
U.S. Treasury 5 yr. Note (United States) | | | 3 | | | Dec-24 | | | 300 | | | | 330 | | | | (— | @) | |
Short: | |
U.S. Treasury Ultra Long Bond (United States) | | | 2 | | | Dec-24 | | | (200 | ) | | | (266 | ) | | | 1 | | |
U.S. Treasury 10 yr. Note (United States) | | | 41 | | | Dec-24 | | | (4,100 | ) | | | (4,685 | ) | | | 1 | | |
U.S. Treasury 10 yr. Ultra Note (United States) | | | 76 | | | Dec-24 | | | (7,600 | ) | | | (8,991 | ) | | | 18 | | |
| | | | | | | | | | | $ | 12 | | |
@ Value is less than $500.
Portfolio Composition*
Classification | | Percentage of
Total Investments | |
Industrials | | | 48.3 | % | |
Finance | | | 35.1 | | |
Utilities | | | 9.3 | | |
Other** | | | 7.3 | | |
Total Investments | | | 100.0 | %*** | |
* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2024.
** Industries and/or investment types representing less than 5% of total investments.
*** Does not include open futures contracts with a value of approximately $41,000,000 and net unrealized appreciation of approximately $12,000.
The accompanying notes are an integral part of the financial statements.
7
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statement of Assets and Liabilities | | September 30, 2024
(000) | |
Assets: | |
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $114,001) | | $ | 117,633 | | |
Investment in Security of Affiliated Issuer, at Value (Cost $6,524) | | | 6,530 | | |
Total Investments in Securities, at Value (Cost $120,525) | | | 124,163 | | |
Foreign Currency, at Value (Cost $102) | | | 108 | | |
Cash | | | 13 | | |
Interest Receivable | | | 1,320 | | |
Receivable for Investments Sold | | | 726 | | |
Receivable for Fund Shares Sold | | | 94 | | |
Receivable from Affiliate | | | 19 | | |
Dividends Receivable | | | 7 | | |
Receivable from Securities Lending Income | | | 2 | | |
Other Assets | | | 47 | | |
Total Assets | | | 126,499 | | |
Liabilities: | |
Collateral on Securities Loaned, at Value | | | 986 | | |
Payable for Investments Purchased | | | 722 | | |
Payable for Professional Fees | | | 107 | | |
Payable for Variation Margin on Futures Contracts | | | 48 | | |
Payable for Trustees' Fees and Expenses | | | 36 | | |
Payable for Fund Shares Redeemed | | | 34 | | |
Payable for Transfer Agency Fees — Class I | | | 24 | | |
Payable for Transfer Agency Fees — Class A | | | 1 | | |
Payable for Transfer Agency Fees — Class L | | | — | @ | |
Payable for Transfer Agency Fees — Class C | | | — | @ | |
Payable for Sub Transfer Agency Fees — Class I | | | 12 | | |
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 | | | — | @ | |
Deferred Capital Gain Country Tax | | | 11 | | |
Payable for Custodian Fees | | | 9 | | |
Payable for Administration Fees | | | 8 | | |
Payable for Advisory Fees | | | 3 | | |
Payable for Shareholder Services Fees — Class A | | | 1 | | |
Payable for Distribution and Shareholder Services Fees — Class L | | | — | @ | |
Payable for Distribution and Shareholder Services Fees — Class C | | | 1 | | |
Other Liabilities | | | 21 | | |
Total Liabilities | | | 2,026 | | |
Net Assets | | $ | 124,473 | | |
Net Assets Consist of: | |
Paid-in-Capital | | $ | 147,168 | | |
Total Accumulated Loss | | | (22,695 | ) | |
Net Assets | | $ | 124,473 | | |
The accompanying notes are an integral part of the financial statements.
8
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statement of Assets and Liabilities (cont'd) | | September 30, 2024
(000) | |
CLASS I: | |
Net Assets | | $ | 110,018 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 10,067,896 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 10.93 | | |
CLASS A: | |
Net Assets | | $ | 12,051 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 1,101,122 | | |
Net Asset Value, Redemption Price Per Share | | $ | 10.94 | | |
Maximum Sales Load | | | 3.25 | % | |
Maximum Sales Charge | | $ | 0.37 | | |
Maximum Offering Price Per Share | | $ | 11.31 | | |
CLASS L: | |
Net Assets | | $ | 871 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 79,703 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 10.93 | | |
CLASS C: | |
Net Assets | | $ | 1,533 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 141,250 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 10.85 | | |
(1) Including:
Securities on Loan, at Value: | | $ | 965 | | |
@ Amount is less than $500.
The accompanying notes are an integral part of the financial statements.
9
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statement of Operations | | Year Ended
September 30, 2024
(000) | |
Investment Income: | |
Interest from Securities of Unaffiliated Issuers | | $ | 6,326 | | |
Dividends from Security of Affiliated Issuer (Note G) | | | 181 | | |
Income from Securities Loaned — Net | | | 25 | | |
Total Investment Income | | | 6,532 | | |
Expenses: | |
Advisory Fees (Note B) | | | 441 | | |
Professional Fees | | | 213 | | |
Transfer Agency Fees — Class I (Note E) | | | 120 | | |
Transfer Agency Fees — Class A (Note E) | | | 4 | | |
Transfer Agency Fees — Class L (Note E) | | | 2 | | |
Transfer Agency Fees — Class C (Note E) | | | 3 | | |
Administration Fees (Note C) | | | 94 | | |
Sub Transfer Agency Fees — Class I | | | 74 | | |
Sub Transfer Agency Fees — Class A | | | 9 | | |
Sub Transfer Agency Fees — Class L | | | 1 | | |
Sub Transfer Agency Fees — Class C | | | 1 | | |
Registration Fees | | | 57 | | |
Shareholder Services Fees — Class A (Note D) | | | 32 | | |
Distribution and Shareholder Services Fees — Class L (Note D) | | | 5 | | |
Distribution and Shareholder Services Fees — Class C (Note D) | | | 15 | | |
Shareholder Reporting Fees | | | 31 | | |
Custodian Fees (Note F) | | | 29 | | |
Trustees' Fees and Expenses | | | 6 | | |
Other Expenses | | | 25 | | |
Total Expenses | | | 1,162 | | |
Reimbursement of Transfer Agency and Sub Transfer Agency Fees (Note B) | | | (532 | ) | |
Reimbursement of Class Specific Expenses — Class I (Note B) | | | (194 | ) | |
Reimbursement of Class Specific Expenses — Class C (Note B) | | | (2 | ) | |
Waiver of Advisory Fees (Note B) | | | (131 | ) | |
Waiver of Shareholder Services Fees — Class A (Note D) | | | (13 | ) | |
Rebate from Morgan Stanley Affiliate (Note G) | | | (5 | ) | |
Net Expenses | | | 285 | | |
Net Investment Income | | | 6,247 | | |
Realized Gain (Loss): | |
Investments Sold | | | (2,170 | ) | |
Foreign Currency Forward Exchange Contracts | | | 10 | | |
Foreign Currency Transaction | | | — | @ | |
Futures Contracts | | | 35 | | |
Net Realized Loss | | | (2,125 | ) | |
Change in Unrealized Appreciation (Depreciation): | |
Investments (Net of Increase in Deferred Capital Gain Country Tax of $3) | | | 12,066 | | |
Investments in Affiliates | | | 6 | | |
Foreign Currency Forward Exchange Contracts | | | (11 | ) | |
Foreign Currency Translation | | | 6 | | |
Futures Contracts | | | 422 | | |
Net Change in Unrealized Appreciation (Depreciation) | | | 12,489 | | |
Net Realized Loss and Change in Unrealized Appreciation (Depreciation) | | | 10,364 | | |
Net Increase in Net Assets Resulting from Operations | | $ | 16,611 | | |
@ Amount is less than $500.
The accompanying notes are an integral part of the financial statements.
10
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statements of Changes in Net Assets | | Year Ended
September 30, 2024
(000) | | Year Ended
September 30, 2023
(000) | |
Increase (Decrease) in Net Assets: | |
Operations: | |
Net Investment Income | | $ | 6,247 | | | $ | 5,464 | | |
Net Realized Loss | | | (2,125 | ) | | | (12,797 | ) | |
Net Change in Unrealized Appreciation (Depreciation) | | | 12,489 | | | | 13,234 | | |
Net Increase in Net Assets Resulting from Operations | | | 16,611 | | | | 5,901 | | |
Dividends and Distributions to Shareholders: | |
Class I | | | (5,454 | ) | | | (4,645 | ) | |
Class A | | | (652 | ) | | | (532 | ) | |
Class L | | | (41 | ) | | | (35 | ) | |
Class C | | | (61 | ) | | | (43 | ) | |
Total Dividends and Distributions to Shareholders | | | (6,208 | ) | | | (5,255 | ) | |
Capital Share Transactions, including direct exchanges pursuant to share class conversions
for all periods presented, were as follows:(1) | |
Class I: | |
Subscribed | | | 30,892 | | | | 36,169 | | |
Distributions Reinvested | | | 5,246 | | | | 4,457 | | |
Redeemed | | | (37,784 | ) | | | (53,450 | ) | |
Class A: | |
Subscribed | | | 3,513 | | | | 3,457 | | |
Distributions Reinvested | | | 652 | | | | 532 | | |
Redeemed | | | (6,055 | ) | | | (5,350 | ) | |
Class L: | |
Exchanged | | | — | | | | 12 | | |
Distributions Reinvested | | | 41 | | | | 35 | | |
Redeemed | | | (247 | ) | | | (108 | ) | |
Class C: | |
Subscribed | | | 515 | | | | 373 | | |
Distributions Reinvested | | | 60 | | | | 43 | | |
Redeemed | | | (336 | ) | | | (745 | ) | |
Net Decrease in Net Assets Resulting from Capital Share Transactions | | | (3,503 | ) | | | (14,575 | ) | |
Total Increase (Decrease) in Net Assets | | | 6,900 | | | | (13,929 | ) | |
Net Assets: | |
Beginning of Period | | | 117,573 | | | | 131,502 | | |
End of Period | | $ | 124,473 | | | $ | 117,573 | | |
(1) Capital Share Transactions: | |
Class I: | |
Shares Subscribed | | | 2,951 | | | | 3,523 | | |
Shares Issued on Distributions Reinvested | | | 505 | | | | 433 | | |
Shares Redeemed | | | (3,678 | ) | | | (5,203 | ) | |
Net Decrease in Class I Shares Outstanding | | | (222 | ) | | | (1,247 | ) | |
Class A: | |
Shares Subscribed | | | 331 | | | | 335 | | |
Shares Issued on Distributions Reinvested | | | 63 | | | | 52 | | |
Shares Redeemed | | | (580 | ) | | | (521 | ) | |
Net Decrease in Class A Shares Outstanding | | | (186 | ) | | | (134 | ) | |
Class L: | |
Shares Exchanged | | | — | | | | 1 | | |
Shares Issued on Distributions Reinvested | | | 4 | | | | 3 | | |
Shares Redeemed | | | (24 | ) | | | (10 | ) | |
Net Decrease in Class L Shares Outstanding | | | (20 | ) | | | (6 | ) | |
Class C: | |
Shares Subscribed | | | 49 | | | | 37 | | |
Shares Issued on Distributions Reinvested | | | 6 | | | | 4 | | |
Shares Redeemed | | | (32 | ) | | | (73 | ) | |
Net Increase (Decrease) in Class C Shares Outstanding | | | 23 | | | | (32 | ) | |
The accompanying notes are an integral part of the financial statements.
11
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Corporate Bond Portfolio
| | | Class I | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 9.97 | | | $ | 9.95 | | | $ | 12.96 | | | $ | 13.49 | | | $ | 12.78 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.56 | | | | 0.45 | | | | 0.30 | | | | 0.25 | | | | 0.32 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.96 | | | | 0.00 | (2) | | | (2.69 | ) | | | (0.05 | ) | | | 0.72 | | |
Total from Investment Operations | | | 1.52 | | | | 0.45 | | | | (2.39 | ) | | | 0.20 | | | | 1.04 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.56 | ) | | | (0.43 | ) | | | (0.27 | ) | | | (0.25 | ) | | | (0.33 | ) | |
Net Realized Gain | | | — | | | | — | | | | (0.35 | ) | | | (0.48 | ) | | | — | | |
Total Distributions | | | (0.56 | ) | | | (0.43 | ) | | | (0.62 | ) | | | (0.73 | ) | | | (0.33 | ) | |
Net Asset Value, End of Period | | $ | 10.93 | | | $ | 9.97 | | | $ | 9.95 | | | $ | 12.96 | | | $ | 13.49 | | |
Total Return(3) | | | 15.66 | %(4) | | | 4.51 | % | | | (19.23 | )% | | | 1.44 | % | | | 8.19 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 110,018 | | | $ | 102,560 | | | $ | 114,804 | | | $ | 161,409 | | | $ | 182,070 | | |
Ratio of Expenses Before Expense Limitation | | | 0.95 | % | | | 1.00 | % | | | 0.86 | % | | | 0.79 | % | | | 0.86 | % | |
Ratio of Expenses After Expense Limitation | | | 0.20 | %(5)(6) | | | 0.69 | %(6) | | | 0.70 | %(6) | | | 0.70 | %(6) | | | 0.70 | %(6) | |
Ratio of Net Investment Income | | | 5.36 | %(5)(6) | | | 4.39 | %(6) | | | 2.55 | %(6) | | | 1.90 | %(6) | | | 2.49 | %(6) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | |
Portfolio Turnover Rate | | | 183 | % | | | 134 | % | | | 110 | % | | | 125 | % | | | 133 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Amount is less than $0.005 per share.
(3) Calculated based on the net asset value as of the last business day of the period.
(4) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial to the total return of Class I shares.
(5) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class I shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.65 | % | | | 4.91 | % | |
(6) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(7) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
12
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Corporate Bond Portfolio
| | | Class A | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 9.98 | | | $ | 9.96 | | | $ | 12.97 | | | $ | 13.50 | | | $ | 12.80 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.54 | | | | 0.42 | | | | 0.26 | | | | 0.22 | | | | 0.29 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.95 | | | | 0.00 | (2) | | | (2.68 | ) | | | (0.05 | ) | | | 0.70 | | |
Total from Investment Operations | | | 1.49 | | | | 0.42 | | | | (2.42 | ) | | | 0.17 | | | | 0.99 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.53 | ) | | | (0.40 | ) | | | (0.24 | ) | | | (0.22 | ) | | | (0.29 | ) | |
Net Realized Gain | | | — | | | | — | | | | (0.35 | ) | | | (0.48 | ) | | | — | | |
Total Distributions | | | (0.53 | ) | | | (0.40 | ) | | | (0.59 | ) | | | (0.70 | ) | | | (0.29 | ) | |
Net Asset Value, End of Period | | $ | 10.94 | | | $ | 9.98 | | | $ | 9.96 | | | $ | 12.97 | | | $ | 13.50 | | |
Total Return(3) | | | 15.34 | %(4) | | | 4.18 | % | | | (19.45 | )% | | | 1.22 | % | | | 7.88 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 12,051 | | | $ | 12,849 | | | $ | 14,158 | | | $ | 19,689 | | | $ | 10,807 | | |
Ratio of Expenses Before Expense Limitation | | | 1.12 | % | | | 1.21 | % | | | 1.09 | % | | | 1.02 | % | | | 1.10 | % | |
Ratio of Expenses After Expense Limitation | | | 0.45 | %(5)(6) | | | 0.99 | %(6) | | | 0.99 | %(6) | | | 0.92 | %(6) | | | 0.99 | %(6) | |
Ratio of Net Investment Income | | | 5.10 | %(5)(6) | | | 4.08 | %(6) | | | 2.28 | %(6) | | | 1.68 | %(6) | | | 2.20 | %(6) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | |
Portfolio Turnover Rate | | | 183 | % | | | 134 | % | | | 110 | % | | | 125 | % | | | 133 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Amount is less than $0.005 per share.
(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) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial to the total return of Class A shares.
(5) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class A shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.90 | % | | | 4.65 | % | |
(6) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(7) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
13
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Corporate Bond Portfolio
| | | Class L | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 9.97 | | | $ | 9.95 | | | $ | 12.96 | | | $ | 13.49 | | | $ | 12.79 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.48 | | | | 0.37 | | | | 0.21 | | | | 0.17 | | | | 0.24 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.95 | | | | 0.00 | (2) | | | (2.69 | ) | | | (0.05 | ) | | | 0.70 | | |
Total from Investment Operations | | | 1.43 | | | | 0.37 | | | | (2.48 | ) | | | 0.12 | | | | 0.94 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.47 | ) | | | (0.35 | ) | | | (0.18 | ) | | | (0.17 | ) | | | (0.24 | ) | |
Net Realized Gain | | | — | | | | — | | | | (0.35 | ) | | | (0.48 | ) | | | — | | |
Total Distributions | | | (0.47 | ) | | | (0.35 | ) | | | (0.53 | ) | | | (0.65 | ) | | | (0.24 | ) | |
Net Asset Value, End of Period | | $ | 10.93 | | | $ | 9.97 | | | $ | 9.95 | | | $ | 12.96 | | | $ | 13.49 | | |
Total Return(3) | | | 14.71 | %(4) | | | 3.68 | % | | | (19.83 | )% | | | 0.79 | % | | | 7.47 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 871 | | | $ | 990 | | | $ | 1,049 | | | $ | 1,444 | | | $ | 1,727 | | |
Ratio of Expenses Before Expense Limitation | | | 1.57 | % | | | 1.59 | % | | | 1.43 | % | | | N/A | | | | 1.39 | % | |
Ratio of Expenses After Expense Limitation | | | 0.93 | %(5)(6) | | | 1.47 | %(6) | | | 1.43 | %(6) | | | 1.33 | %(6) | | | 1.38 | %(6) | |
Ratio of Net Investment Income | | | 4.62 | %(5)(6) | | | 3.60 | %(6) | | | 1.84 | %(6) | | | 1.27 | %(6) | | | 1.84 | %(6) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | |
Portfolio Turnover Rate | | | 183 | % | | | 134 | % | | | 110 | % | | | 125 | % | | | 133 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Amount is less than $0.005 per share.
(3) Calculated based on the net asset value as of the last business day of the period.
(4) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial to the total return of Class L shares.
(5) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class L shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 1.45 | % | | | 4.10 | % | |
(6) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(7) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
14
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Corporate Bond Portfolio
| | | Class C | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 9.90 | | | $ | 9.89 | | | $ | 12.87 | | | $ | 13.41 | | | $ | 12.71 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.44 | | | | 0.34 | | | | 0.16 | | | | 0.10 | | | | 0.18 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.95 | | | | (0.01 | ) | | | (2.65 | ) | | | (0.05 | ) | | | 0.71 | | |
Total from Investment Operations | | | 1.39 | | | | 0.33 | | | | (2.49 | ) | | | 0.05 | | | | 0.89 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.44 | ) | | | (0.32 | ) | | | (0.14 | ) | | | (0.11 | ) | | | (0.19 | ) | |
Net Realized Gain | | | — | | | | — | | | | (0.35 | ) | | | (0.48 | ) | | | — | | |
Total Distributions | | | (0.44 | ) | | | (0.32 | ) | | | (0.49 | ) | | | (0.59 | ) | | | (0.19 | ) | |
Net Asset Value, End of Period | | $ | 10.85 | | | $ | 9.90 | | | $ | 9.89 | | | $ | 12.87 | | | $ | 13.41 | | |
Total Return(2) | | | 14.39 | %(3) | | | 3.28 | % | | | (20.05 | )% | | | 0.28 | % | | | 7.09 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 1,533 | | | $ | 1,174 | | | $ | 1,491 | | | $ | 3,111 | | | $ | 3,222 | | |
Ratio of Expenses Before Expense Limitation | | | 2.02 | % | | | 2.08 | % | | | 1.92 | % | | | 1.81 | % | | | 1.90 | % | |
Ratio of Expenses After Expense Limitation | | | 1.31 | %(4)(5) | | | 1.79 | %(5) | | | 1.80 | %(5) | | | 1.80 | %(5) | | | 1.80 | %(5) | |
Ratio of Net Investment Income | | | 4.25 | %(4)(5) | | | 3.29 | %(5) | | | 1.40 | %(5) | | | 0.80 | %(5) | | | 1.42 | %(5) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | |
Portfolio Turnover Rate | | | 183 | % | | | 134 | % | | | 110 | % | | | 125 | % | | | 133 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.
(3) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial to the total return of Class C shares.
(4) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class C shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 1.75 | % | | | 3.81 | % | |
(5) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(6) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
15
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements
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 six separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). All Funds are considered diversified for purposes of the Act.
The Trust applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the Fund's Statement of Assets and Liabilities through the date that the financial statements were issued.
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 has issued four classes of shares — Class I, Class A, Class L and Class C. Class C shares will automatically convert to Class A shares eight years after the end of the calendar month in which the shares were purchased.
The Fund has suspended offering 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. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.
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) Fixed income 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. If Morgan Stanley Investment Management Inc. (the "Adviser") a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or
the pricing service/vendor or exchange is unable to provide a price, prices from reputable brokers/dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from reputable brokers/dealers; (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, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Trustees. Each business day, the Fund uses a third-party pricing service approved by the Trustees to assist with the valuation of foreign equity securities. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities to more accurately reflect their fair value as of the close of regular trading on the NYSE; (4) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.
In connection with Rule 2a-5 of the Act, the Trustees have designated the Trust's Adviser as its valuation designee. The valuation designee has responsibility for 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, as valuation designee, 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
16
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
services, quotations from securities and financial instrument dealers and other market sources to determine fair value.
2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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 September 30, 2024:
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 | |
Commercial
Mortgage-Backed
Security | | $ | — | | | $ | 1,304 | | | $ | — | | | $ | 1,304 | | |
Corporate Bonds | | | — | | | | 114,192 | | | | — | | | | 114,192 | | |
Sovereign | | | — | | | | 296 | | | | — | | | | 296 | | |
Total Fixed Income
Securities | | | — | | | | 115,792 | | | | — | | | | 115,792 | | |
Investment Companies | | | 1,645 | | | | — | | | | — | | | | 1,645 | | |
Short-Term Investments | |
Investment Company | | | 4,885 | | | | — | | | | — | | | | 4,885 | | |
U.S. Treasury Security | | | — | | | | 1,841 | | | | — | | | | 1,841 | | |
Total Short-Term
Investments | | | 4,885 | | | | 1,841 | | | | — | | | | 6,726 | | |
Futures Contracts | | | 43 | | | | — | | | | — | | | | 43 | | |
Total Assets | | | 6,573 | | | | 117,633 | | | | — | | | | 124,206 | | |
Liabilities: | |
Futures Contracts | | | (31 | ) | | | — | | | | — | | | | (31 | ) | |
Total | | $ | 6,542 | | | $ | 117,633 | | | $ | — | | | $ | 124,175 | | |
Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.
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
17
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
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. 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 U.S. companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.
4. Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including
hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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:
Foreign Currency Forward Exchange Contracts: In connection with its investments in foreign securities, the Fund also entered into contracts with banks and brokers/dealers to purchase or sell 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
18
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
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.
As of September 30, 2024, the Fund did not have any open foreign currency forward exchange contracts.
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) and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the futures contract. 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.
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 September 30, 2024:
| | | Asset Derivatives
Statement of Assets and
Liabilities Location | | Primary Risk
Exposure | | Value
(000) | |
Futures Contracts | | Variation Margin on
Futures Contracts | |
Interest Rate Risk | | $ | 43 | (a) | |
| | | Liability Derivatives
Statement of Assets and
Liabilities Location | | Primary Risk
Exposure | | Value
(000) | |
Futures Contracts | | Variation Margin on
Futures Contracts | |
Interest Rate Risk | | $ | (31 | )(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.
19
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (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 year ended September 30, 2024 in accordance with ASC 815:
Realized Gain (Loss) | |
Primary Risk Exposure | | Derivative Type | | Value
(000) | |
Currency Risk | | Foreign Currency
Forward Exchange
Contracts | | $ | 10 | | |
Interest Rate Risk | | Futures Contracts | | | 35 | | |
Total | | | | $ | 45 | | |
Change in Unrealized Appreciation (Depreciation) | |
Primary Risk Exposure | | Derivative Type | | Value
(000) | |
Currency Risk | | Foreign Currency
Forward Exchange
Contracts | | $ | (11 | ) | |
Interest Rate Risk | | Futures Contracts | | | 422 | | |
Total | | | | $ | 411 | | |
For the year ended September 30, 2024, the approximate average monthly amount outstanding for each derivative type is as follows:
Foreign Currency Forward Exchange Contracts: | |
Average monthly principal amount | | $ | 263,000 | | |
Futures Contracts: | |
Average monthly notional value | | $ | 63,383,000 | | |
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 September 30, 2024:
Gross Amount Not Offset in the Statement of Assets and Liabilities | |
Gross Asset
Amount
Presented in the
Statement of
Assets and
Liabilities
(000) | | Financial
Instrument
(000) | | Collateral
Received
(000) | | Net Amount
(not less
than $0)
(000) | |
| $ | 965 | (a) | | $ | — | | | $ | (965 | )(b)(c) | | $ | 0 | | |
(a) Represents market value of loaned securities at year end.
(b) The Fund received cash collateral of approximately $986,000, which was subsequently invested in Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments.
(c) 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 borrowings.
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 September 30, 2024:
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 | | $ | 986 | | | $ | — | | | $ | — | | | $ | — | | | $ | 986 | | |
Total Borrowings | | $ | 986 | | | $ | — | | | $ | — | | | $ | — | | | $ | 986 | | |
Gross amount of
recognized liabilities
for securities lending
transactions | | | | | | | | | | $ | 986 | | |
20
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
6. Indemnifications: The Trust enters into contracts that contain a variety of indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
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. 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. 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, co-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 of 0.375% of the daily net assets of the Fund.
The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund 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,
1.47% for Class L shares and 1.75% 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 year ended September 30, 2024, approximately $131,000 of advisory fees were waived and approximately $196,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.
The Adviser agreed to reimburse the Fund for prior years overpayment of transfer agency and sub transfer agency fees. This was reflected as "Reimbursement of Transfer Agency and Sub Transfer Agency Fees" in the Statement of Operations.
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 Fund to the extent it exceeds 0.15% of the average daily net assets of such shares on an annualized basis. For the year ended ended September 30, 2024, this waiver amounted to approximately $13,000.
The Trust has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Fund pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.25% and a
21
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
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 distribution-related and/or 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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS"). Pursuant to a Transfer Agency Agreement, the Trust pays SS&C GIDS a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.
Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended September 30, 2024, co-transfer agency fees and expenses incurred to EVM, included in "Transfer Agency Fees" in the Statement of Operations, amounted to approximately $15,000.
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 year ended September 30, 2024, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $206,016,000 and $204,048,000, respectively. For the year ended September 30, 2024, purchases and sales of long-term U.S. Government securities were approximately $0 and $339,000, respectively.
The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Fund"), 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 Fund. For the year ended September 30, 2024, advisory fees paid were reduced by approximately $3,000 relating to the Fund's investment in the Liquidity Fund.
The Fund invests in Calvert Ultra-Short Investment Grade ETF, a 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 Calvert Ultra-Short Investment Grade ETF. For the year ended September 30, 2024, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Calvert Ultra-Short Investment Grade ETF.
The Fund invests in Eaton Vance Ultra-Short Income ETF, a 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 Eaton Vance Ultra-Short Income ETF. For the year ended September 30, 2024, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Eaton Vance Ultra-Short Income ETF.
A summary of the Fund's transactions in shares of affiliated investments during the year ended September 30, 2024 is as follows:
Affiliated
Investment
Company/Issuer | | Value
September 30,
2023
(000) | | Purchases
at Cost
(000) | | Proceeds
from Sales
(000) | | Dividend
Income
(000) | |
Liquidity Fund | | $ | 4,163 | | | $ | 62,214 | | | $ | 61,492 | | | $ | 129 | | |
Calvert
Ultra-Short
Investment
Grade ETF | | | — | | | | 581 | | | | — | | | | 18 | | |
Eaton Vance
Ultra-Short
Income ETF | | | — | | | | 1,058 | | | | — | | | | 34 | | |
Total | | $ | 4,163 | | | $ | 63,853 | | | $ | 61,492 | | | $ | 181 | | |
22
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
Affiliated
Investment
Company/Issuer (cont'd) | | Realized
Gain
(Loss)
(000) | | Change in
Unrealized
Appreciation
(Depreciation)
(000) | | Value
September 30,
2024
(000) | |
Liquidity Fund | | $ | — | | | $ | — | | | $ | 4,885 | | |
Calvert
Ultra-Short
Investment
Grade ETF | | | — | | | | 2 | | | | 583 | | |
Eaton Vance
Ultra-Short
Income ETF | | | — | | | | 4 | | | | 1,062 | | |
Total | | $ | — | | | $ | 6 | | | $ | 6,530 | | |
The Fund has an unfunded noncontributory defined benefit pension plan covering certain independent Trustees of the Fund who will have served as independent Trustees for at least five years at the time of retirement. Benefits under this plan are based on factors which include years of service and compensation. The Trustees voted to close the plan to new participants and eliminate the future benefits growth due to increases to compensation after July 31, 2003. Aggregate pension costs for the year ended September 30, 2024, included in "Trustees' Fees and Expenses" in the Statement of Operations amounted to approximately $2,000. At September 30, 2024, the Fund had an accrued pension liability of approximately $36,000, which is reflected as "Payable for Trustees' Fees and Expenses" in the Statement of Assets and Liabilities.
Each Trustee receives an annual retainer fee for serving as a Trustee of the Morgan Stanley Funds. The aggregate compensation paid to each Trustee is paid by the Morgan Stanley Funds, and is allocated on a pro rata basis among each of the operational funds of the Morgan Stanley Funds based on the relative net assets of each of the funds. The fund also reimburses such Trustees for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings.
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. Generally, each of the tax years in the four-year period ended September 30, 2024 remains subject to examination by taxing authorities.
The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2024 and 2023 was as follows:
2024
Distributions
Paid From: | | 2023
Distributions
Paid From: | |
Ordinary
Income
(000) | | Ordinary
Income
(000) | |
| $ | 6,208 | | | $ | 5,255 | | |
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.
23
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended September 30, 2024.
At September 30, 2024, 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) | |
| $ | 611 | | | $ | — | | |
At September 30, 2024, the Fund had available for federal income tax purposes unused short-term and long term capital losses of approximately $7,727,000 and $19,081,000 respectively, that do not have an expiration date.
To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.
I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $500,000,000 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 for any funds drawn will be based on the federal funds rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility, which is allocated among participating funds based on relative net assets. During the year ended September 30, 2024, the Fund did not have any borrowings under the Facility.
J. Other: At September 30, 2024, 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 52.9%.
K. Market Risk: The value of an investment in the Fund is based on the values of the Fund's investments, which change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events adversely interrupt the global economy and financial markets. Securities in the Fund's portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters and extreme weather
events, health emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years, such as terrorist attacks around the world, natural disasters, health emergencies, social and political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. The occurrence of such events may be sudden and unexpected, and it is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). Any such event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund's portfolio, as well as its ability to sell securities and/or meet redemptions. Any such event(s) or similar types of factors and developments may also adversely affect the financial performance of the Fund's investments (and, in turn, the Fund's investment results) and/or negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments, and exacerbate preexisting risks to the Fund.
24
Morgan Stanley Institutional Fund Trust
September 30, 2024
Report of Independent Registered Public Accounting Firm
To the Shareholders of Corporate Bond Portfolio and the Board of
Trustees of Morgan Stanley Institutional Fund Trust
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Corporate Bond Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund Trust (the "Trust")), including the portfolio of investments, as of September 30, 2024, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund Trust) at September 30, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Morgan Stanley investment companies since 2000.
Boston, Massachusetts
November 26, 2024
25
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited)
Nature, Extent and Quality of Services
The Board reviewed and considered the nature and extent of the investment advisory services provided by the Adviser under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services provided by the Administrator under the administration agreement, including accounting, operations, clerical, bookkeeping, compliance, business management and planning, legal services and the provision of supplies, office space and utilities at the Adviser's expense. The Board also considered the Adviser's investment in personnel and infrastructure that benefits the Fund. (The Adviser and Administrator together are referred to as the "Adviser" and the advisory and administration agreements together are referred to as the "Management Agreement.") The Board also considered that the Adviser serves a variety of other investment advisory clients and has experience overseeing service providers. The Board also compared the nature of the services provided by the Adviser with similar services provided by non-affiliated advisers as prepared by Broadridge Financial Solutions, Inc. ("Broadridge").
The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who provide the advisory and administrative services to the Fund. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services provided were necessary and appropriate for the conduct of the business and investment activities of the Fund and supported its decision to approve the Management Agreement.
Performance, Fees and Expenses of the Fund
The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2023, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that the Fund's management fee was lower than its peer group average and total expense ratio was higher than its peer group average. After discussion, the Board concluded that the Fund's (i) performance and management fee were competitive with its peer group averages and (ii) total expense ratio was acceptable.
Economies of Scale
The Board considered the size and growth prospects of the Fund and how that relates to the Fund's total expense ratio and particularly the Fund's management fee rate, which does not include breakpoints. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Fund and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and/or potential economies of scale of the Fund supports its decision to approve the Management Agreement.
Profitability of the Adviser and Affiliates
The Board considered information concerning the costs incurred and profits realized by the Adviser and its affiliates during the last year from their relationship with the Fund and during the last two years from their relationship with the Morgan Stanley Fund Complex and reviewed with the Adviser the cost allocation methodology used to determine the profitability of the Adviser and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.
26
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited) (cont'd)
Other Benefits of the Relationship
The Board considered other direct and indirect benefits to the Adviser and/or its affiliates derived from their relationship with the Fund and other funds advised by the Adviser. These benefits may include, among other things, fees for trading, distribution and/or shareholder servicing and for transaction processing and reporting platforms used by securities lending agents, and research received by the Adviser generated from commission dollars spent on funds' portfolio trading. The Board reviewed with the Adviser these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.
Resources of the Adviser and Historical Relationship Between the Fund and the Adviser
The Board considered whether the Adviser is financially sound and has the resources necessary to perform its obligations under the Management Agreement. The Board also reviewed and considered the historical relationship between the Fund and the Adviser, including the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Fund's operations and the Board's confidence in the competence and integrity of the senior managers and key personnel of the Adviser. The Board concluded that the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Fund to continue its relationship with the Adviser.
Other Factors and Current Trends
The Board considered the controls and procedures adopted and implemented by the Adviser and monitored by the Fund's Chief Compliance Officer and concluded that the conduct of business by the Adviser indicates a good faith effort on its part to adhere to high ethical standards in the conduct of the Fund's business.
General Conclusion
After considering and weighing all of the above factors, with various written materials and verbal information presented by the Adviser, the Board concluded that it would be in the best interest of the Fund and its shareholders to approve renewal of the Management Agreement for another year. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. The Board considered these factors and information over the course of the year and in numerous meetings, some of which were in executive session with only the independent Board members and their counsel present. It is possible that individual Board members may have weighed these factors, and the information presented, differently in reaching their individual decisions to approve the Management Agreement.
27
Morgan Stanley Institutional Fund Trust
September 30, 2024
Federal Tax Notice (unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended September 30, 2024.
The Fund designated approximately $560,000 of its distributions paid as business interest income.
The Fund designated approximately $421,000 of its distributions paid as qualified interest income.
In January, the Fund provides tax information to shareholders for the preceding calendar year.
28
Morgan Stanley Investment Management Inc.
1585 Broadway
New York, New York 10036
© 2024 Morgan Stanley. Morgan Stanley Distribution, Inc.
Morgan Stanley Institutional Fund Trust
Discovery Portfolio
Annual Financial Statements and Additional Information
September 30, 2024
Morgan Stanley Institutional Fund Trust
September 30, 2024
Table of Contents (unaudited)
Consolidated Portfolio of Investments | | | 2 | | |
Consolidated Statement of Assets and Liabilities | | | 4 | | |
Consolidated Statement of Operations | | | 6 | | |
Consolidated Statements of Changes in Net Assets | | | 7 | | |
Consolidated Financial Highlights | | | 8 | | |
Notes to Consolidated Financial Statements | | | 13 | | |
Report of Independent Registered Public Accounting Firm | | | 25 | | |
Investment Advisory Agreement Approval | | | 26 | | |
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) 869-6397. Please read the prospectuses carefully before you invest or send money.
Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.
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
September 30, 2024
Consolidated Portfolio of Investments
Discovery Portfolio
| | | Shares | | Value
(000) | |
Common Stocks (93.8%) | |
Automobiles (0.2%) | |
Rivian Automotive, Inc., Class A (a) | | | 179,623 | | | $ | 2,015 | | |
Biotechnology (2.7%) | |
Alnylam Pharmaceuticals, Inc. (a) | | | 9,083 | | | | 2,498 | | |
Argenx SE ADR (Belgium) (a) | | | 6,051 | | | | 3,280 | | |
Intellia Therapeutics, Inc. (a) | | | 109,666 | | | | 2,254 | | |
ProKidney Corp. (a)(b) | | | 733,305 | | | | 1,408 | | |
Roivant Sciences Ltd. (a) | | | 1,299,323 | | | | 14,994 | | |
| | | | 24,434 | | |
Broadline Retail (5.4%) | |
Global-e Online Ltd. (Israel) (a) | | | 1,254,174 | | | | 48,210 | | |
Consumer Staples Distribution & Retail (1.5%) | |
Maplebear, Inc. (a) | | | 324,809 | | | | 13,233 | | |
Entertainment (5.5%) | |
ROBLOX Corp., Class A (a) | | | 1,125,431 | | | | 49,811 | | |
Financial Services (10.8%) | |
Adyen NV (Netherlands) (a) | | | 22,968 | | | | 35,959 | | |
Affirm Holdings, Inc. (a) | | | 1,505,503 | | | | 61,455 | | |
| | | | 97,414 | | |
Health Care Equipment & Supplies (0.7%) | |
Dexcom, Inc. (a) | | | 64,674 | | | | 4,336 | | |
Penumbra, Inc. (a) | | | 11,901 | | | | 2,312 | | |
| | | | 6,648 | | |
Health Care Providers & Services (1.8%) | |
Agilon Health, Inc. (a) | | | 4,196,233 | | | | 16,492 | | |
Health Care Technology (2.1%) | |
Doximity, Inc., Class A (a) | | | 429,424 | | | | 18,710 | | |
Hotels, Restaurants & Leisure (8.6%) | |
DoorDash, Inc., Class A (a) | | | 539,319 | | | | 76,977 | | |
Information Technology Services (9.9%) | |
Cloudflare, Inc., Class A (a) | | | 844,060 | | | | 68,276 | | |
Fastly, Inc., Class A (a) | | | 1,073,199 | | | | 8,124 | | |
MongoDB, Inc. (a) | | | 15,708 | | | | 4,247 | | |
Snowflake, Inc., Class A (a) | | | 75,980 | | | | 8,727 | | |
| | | | 89,374 | | |
Leisure Products (1.2%) | |
Peloton Interactive, Inc., Class A (a) | | | 2,304,672 | | | | 10,786 | | |
Life Sciences Tools & Services (1.1%) | |
10X Genomics, Inc., Class A (a) | | | 438,300 | | | | 9,897 | | |
Machinery (0.3%) | |
Symbotic, Inc. (a)(b) | | | 93,136 | | | | 2,271 | | |
Media (7.5%) | |
Trade Desk, Inc., Class A (a) | | | 610,997 | | | | 66,996 | | |
Pharmaceuticals (4.5%) | |
Royalty Pharma PLC, Class A | | | 1,441,355 | | | | 40,776 | | |
Software (23.7%) | |
Aurora Innovation, Inc. (a) | | | 5,618,907 | | | | 33,264 | | |
Bill Holdings, Inc. (a) | | | 429,768 | | | | 22,675 | | |
Gitlab, Inc., Class A (a) | | | 90,262 | | | | 4,652 | | |
MicroStrategy, Inc., Class A (a) | | | 233,395 | | | | 39,350 | | |
Palantir Technologies, Inc., Class A (a) | | | 645,027 | | | | 23,995 | | |
| | | Shares | | Value
(000) | |
Procore Technologies, Inc. (a) | | | 224,158 | | | $ | 13,835 | | |
QXO, Inc. (b) | | | 898,862 | | | | 14,175 | | |
Samsara, Inc., Class A (a) | | | 1,272,624 | | | | 61,239 | | |
| | | | 213,185 | | |
Specialty Retail (6.3%) | |
Carvana Co. (a) | | | 252,042 | | | | 43,883 | | |
Chewy, Inc., Class A (a) | | | 424,672 | | | | 12,439 | | |
| | | | 56,322 | | |
Total Common Stocks (Cost $743,441) | | | 843,551 | | |
Preferred Stock (2.5%) | |
Software (2.5%) | |
Databricks, Inc., Series H (a)(c)(d)
(acquisition cost — $24,713; acquired
8/31/21) | | | 336,299 | | | | 22,468 | | |
Investment Company (2.4%) | |
| iShares Bitcoin Trust ETF (a) (Cost $23,067) | | | 596,143 | | | | 21,538 | | |
Short-Term Investments (1.9%) | |
Investment Company (1.5%) | |
Morgan Stanley Institutional Liquidity
Funds — Treasury Securities Portfolio —
Institutional Class, 4.88% (See Note G)
(Cost $13,733) | | | 13,732,567 | | | | 13,733 | | |
Securities held as Collateral on Loaned Securities (0.4%) | |
Investment Company (0.3%) | |
Morgan Stanley Institutional Liquidity
Funds — Treasury Securities Portfolio —
Institutional Class, 4.88% (See Note G) | | | 2,700,257 | | | | 2,700 | | |
| | | Face
Amount
(000) | | | |
Repurchase Agreements (0.1%) | |
Citigroup, Inc., (4.88%, dated 9/30/24,
due 10/1/24; proceeds $322; fully
collateralized by U.S. Government
obligations; 2.88% — 4.75%
due 5/15/43 — 11/15/43; valued
at $328) | | $ | 322 | | | | 322 | | |
Merrill Lynch & Co., Inc., (4.86%, dated
9/30/24, due 10/1/24; proceeds $360;
fully collateralized by U.S. Government
obligations; 0.75% — 3.50%
due 9/30/26 — 2/15/45; valued at $367) | | | 360 | | | | 360 | | |
| | | | 682 | | |
Total Securities held as Collateral on Loaned
Securities (Cost $3,382) | | | 3,382 | | |
Total Short-Term Investments (Cost $17,115) | | | 17,115 | | |
Total Investments Excluding Purchased
Options (100.6%) (Cost $808,336) | | | | | 904,672 | | |
Total Purchased Options Outstanding (0.1%)
(Cost $2,802) | | | 739 | | |
Total Investments (100.7%) (Cost $811,138)
Including $3,532 of Securities Loaned (e)(f)(g) | | | 905,411 | | |
Liabilities in Excess of Other Assets (–0.7%) | | | (6,545 | ) | |
Net Assets (100.0%) | | $ | 898,866 | | |
The accompanying notes are an integral part of the consolidated financial statements.
2
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Discovery Portfolio
(a) Non-income producing security.
(b) All or a portion of this security was on loan at September 30, 2024.
(c) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The 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 September 30, 2024 amounts to approximately $22,468,000 and represents 2.5% of net assets.
(d) At September 30, 2024, the Fund held a fair valued security valued at approximately $22,468,000, representing 2.5% of net assets. This security has been fair valued using significant unobservable inputs as determined in good faith under procedures established by and under the general supervision of the Trust's (as defined herein) Trustees.
(e) Securities are available for collateral in connection with purchased options.
(f) The approximate fair value and percentage of net assets, $35,959,000 and 4.0%, 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.
(g) At September 30, 2024, the aggregate cost for federal income tax purposes is $880,340,000. The aggregate gross unrealized appreciation is $289,652,000 and the aggregate gross unrealized depreciation is $274,920,000, resulting in net unrealized appreciation of $14,732,000.
ADR American Depositary Receipt.
ETF Exchange Traded Fund.
Call Options Purchased:
The Fund had the following call options purchased open at September 30, 2024:
Counterparty | | Description | | Strike
Price | | Expiration
Date | | Number of
Contracts | | Notional
Amount
(000) | | Value
(000) | | Premiums
Paid
(000) | | Unrealized
Depreciation
(000) | |
JPMorgan Chase Bank NA | | USD/CNH | | CNH | 7.66 | | | Sep-25 | | | 103,825,529 | | | $ | 103,826 | | | $ | 307 | | | $ | 431 | | | $ | (124 | ) | |
Goldman Sachs International | | USD/CNH | | CNH | 7.68 | | | Jan-25 | | | 249,313,471 | | | | 249,313 | | | | 74 | | | | 944 | | | | (870 | ) | |
JPMorgan Chase Bank NA | | USD/CNH | | CNH | 7.77 | | | Jul-25 | | | 97,459,329 | | | | 97,459 | | | | 200 | | | | 424 | | | | (224 | ) | |
JPMorgan Chase Bank NA | | USD/CNH | | CNH | 7.78 | | | Mar-25 | | | 236,408,580 | | | | 236,409 | | | | 158 | | | | 1,003 | | | | (845 | ) | |
| | | | | | | | | | | | | $ | 739 | | | $ | 2,802 | | | $ | (2,063 | ) | |
CNH — Chinese Yuan Renminbi Offshore
USD — United States Dollar
Portfolio Composition*
Classification | | Percentage of
Total Investments | |
Software | | | 26.0 | % | |
Other** | | | 20.4 | | |
Financial Services | | | 10.8 | | |
Information Technology Services | | | 9.9 | | |
Hotels, Restaurants & Leisure | | | 8.5 | | |
Media | | | 7.4 | | |
Specialty Retail | | | 6.2 | | |
Entertainment | | | 5.5 | | |
Broadline Retail | | | 5.3 | | |
Total Investments | | | 100.0 | % | |
* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2024.
** Industries and/or investment types representing less than 5% of total investments.
The accompanying notes are an integral part of the consolidated financial statements.
3
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Statement of Assets and Liabilities | | September 30, 2024
(000) | |
Assets: | |
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $794,705) | | $ | 888,978 | | |
Investment in Security of Affiliated Issuer, at Value (Cost $16,433) | | | 16,433 | | |
Total Investments in Securities, at Value (Cost $811,138) | | | 905,411 | | |
Foreign Currency, at Value (Cost $2) | | | 2 | | |
Receivable for Fund Shares Sold | | | 234 | | |
Receivable from Affiliate | | | 48 | | |
Receivable from Securities Lending Income | | | 17 | | |
Other Assets | | | 153 | | |
Total Assets | | | 905,865 | | |
Liabilities: | |
Collateral on Securities Loaned, at Value | | | 3,382 | | |
Payable for Advisory Fees | | | 1,066 | | |
Due to Broker | | | 1,060 | | |
Payable for Fund Shares Redeemed | | | 976 | | |
Payable for Professional Fees | | | 111 | | |
Payable for Shareholder Services Fees — Class A | | | 78 | | |
Payable for Distribution and Shareholder Services Fees — Class L | | | 3 | | |
Payable for Distribution and Shareholder Services Fees — Class C | | | 11 | | |
Payable for Administration Fees | | | 57 | | |
Payable for Trustees' Fees and Expenses | | | 35 | | |
Payable for Sub Transfer Agency Fees — Class I | | | 26 | | |
Payable for Sub Transfer Agency Fees — Class L | | | 1 | | |
Payable for Sub Transfer Agency Fees — Class C | | | 3 | | |
Payable for Transfer Agency Fees — Class I | | | 6 | | |
Payable for Transfer Agency Fees — Class A | | | 8 | | |
Payable for Transfer Agency Fees — Class L | | | 1 | | |
Payable for Transfer Agency Fees — Class C | | | 1 | | |
Payable for Transfer Agency Fees — Class R6 | | | 1 | | |
Payable for Custodian Fees | | | 14 | | |
Other Liabilities | | | 159 | | |
Total Liabilities | | | 6,999 | | |
Net Assets | | $ | 898,866 | | |
Net Assets Consist of: | |
Paid-in-Capital | | $ | 2,434,401 | | |
Total Accumulated Loss | | | (1,535,535 | ) | |
Net Assets | | $ | 898,866 | | |
The accompanying notes are an integral part of the consolidated financial statements.
4
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Statement of Assets and Liabilities (cont'd) | | September 30, 2024
(000) | |
CLASS I: | |
Net Assets | | $ | 335,470 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 19,125,414 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 17.54 | | |
CLASS A: | |
Net Assets | | $ | 392,991 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 33,100,955 | | |
Net Asset Value, Redemption Price Per Share | | $ | 11.87 | | |
Maximum Sales Load | | | 5.25 | % | |
Maximum Sales Charge | | $ | 0.66 | | |
Maximum Offering Price Per Share | | $ | 12.53 | | |
CLASS L: | |
Net Assets | | $ | 4,818 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 543,360 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 8.87 | | |
CLASS C: | |
Net Assets | | $ | 13,248 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 1,236,783 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 10.71 | | |
CLASS R6: | |
Net Assets | | $ | 152,339 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 8,474,139 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 17.98 | | |
(1) Including:
Securities on Loan, at Value: | | $ | 3,532 | | |
The accompanying notes are an integral part of the consolidated financial statements.
5
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Statement of Operations | | Year Ended
September 30, 2024
(000) | |
Investment Income: | |
Dividends from Securities of Unaffiliated Issuers | | $ | 1,153 | | |
Dividends from Security of Affiliated Issuer (Note G) | | | 953 | | |
Income from Securities Loaned — Net | | | 190 | | |
Total Investment Income | | | 2,296 | | |
Expenses: | |
Advisory Fees (Note B) | | | 4,544 | | |
Shareholder Services Fees — Class A (Note D) | | | 1,028 | | |
Distribution and Shareholder Services Fees — Class L (Note D) | | | 34 | | |
Distribution and Shareholder Services Fees — Class C (Note D) | | | 138 | | |
Sub Transfer Agency Fees — Class I | | | 315 | | |
Sub Transfer Agency Fees — Class A | | | 461 | | |
Sub Transfer Agency Fees — Class L | | | 3 | | |
Sub Transfer Agency Fees — Class C | | | 17 | | |
Administration Fees (Note C) | | | 727 | | |
Professional Fees | | | 255 | | |
Registration Fees | | | 148 | | |
Shareholder Reporting Fees | | | 113 | | |
Transfer Agency Fees — Class I (Note E) | | | 29 | | |
Transfer Agency Fees — Class A (Note E) | | | 42 | | |
Transfer Agency Fees — Class L (Note E) | | | 4 | | |
Transfer Agency Fees — Class C (Note E) | | | 4 | | |
Transfer Agency Fees — Class R6 (Note E) | | | 8 | | |
Custodian Fees (Note F) | | | 39 | | |
Trustees' Fees and Expenses | | | 18 | | |
Pricing Fees | | | 3 | | |
Other Expenses | | | 65 | | |
Total Expenses | | | 7,995 | | |
Reimbursement of Transfer Agency and Sub Transfer Agency Fees (Note B) | | | (348 | ) | |
Rebate from Morgan Stanley Affiliate (Note G) | | | (35 | ) | |
Net Expenses | | | 7,612 | | |
Net Investment Loss | | | (5,316 | ) | |
Realized Gain (Loss): | |
Investments Sold | | | (90,724 | ) | |
Foreign Currency Transaction | | | 1 | | |
Net Realized Loss | | | (90,723 | ) | |
Change in Unrealized Appreciation (Depreciation): | |
Investments | | | 405,527 | | |
Foreign Currency Translation | | | — | @ | |
Net Change in Unrealized Appreciation (Depreciation) | | | 405,527 | | |
Net Realized Loss and Change in Unrealized Appreciation (Depreciation) | | | 314,804 | | |
Net Increase in Net Assets Resulting from Operations | | $ | 309,488 | | |
@ Amount is less than $500.
The accompanying notes are an integral part of the consolidated financial statements.
6
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Statements of Changes in Net Assets | | Year Ended
September 30, 2024
(000) | | Year Ended
September 30, 2023
(000) | |
Increase (Decrease) in Net Assets: | |
Operations: | |
Net Investment Loss | | $ | (5,316 | ) | | $ | (4,188 | ) | |
Net Realized Loss | | | (90,723 | ) | | | (414,497 | ) | |
Net Change in Unrealized Appreciation (Depreciation) | | | 405,527 | | | | 425,599 | | |
Net Increase in Net Assets Resulting from Operations | | | 309,488 | | | | 6,914 | | |
Capital Share Transactions:(1) | |
Class I: | |
Subscribed | | | 118,045 | | | | 152,228 | | |
Redeemed | | | (181,173 | ) | | | (265,963 | ) | |
Class A: | |
Subscribed | | | 22,931 | | | | 49,603 | | |
Redeemed | | | (194,965 | ) | | | (163,974 | ) | |
Class L: | |
Exchanged | | | — | | | | 169 | | |
Redeemed | | | (922 | ) | | | (745 | ) | |
Class C: | |
Subscribed | | | 784 | | | | 1,835 | | |
Redeemed | | | (5,608 | ) | | | (3,933 | ) | |
Class R6: | |
Subscribed | | | 20,566 | | | | 43,751 | | |
Redeemed | | | (95,983 | ) | | | (73,023 | ) | |
Net Decrease in Net Assets Resulting from Capital Share Transactions | | | (316,325 | ) | | | (260,052 | ) | |
Total Decrease in Net Assets | | | (6,837 | ) | | | (253,138 | ) | |
Net Assets: | |
Beginning of Period | | | 905,703 | | | | 1,158,841 | | |
End of Period | | $ | 898,866 | | | $ | 905,703 | | |
(1) Capital Share Transactions: | |
Class I: | |
Shares Subscribed | | | 7,857 | | | | 12,843 | | |
Shares Redeemed | | | (12,512 | ) | | | (23,578 | ) | |
Net Decrease in Class I Shares Outstanding | | | (4,655 | ) | | | (10,735 | ) | |
Class A: | |
Shares Subscribed | | | 2,339 | | | | 6,070 | | |
Shares Redeemed | | | (19,482 | ) | | | (20,113 | ) | |
Net Decrease in Class A Shares Outstanding | | | (17,143 | ) | | | (14,043 | ) | |
Class L: | |
Shares Exchanged | | | — | | | | 27 | | |
Shares Redeemed | | | (121 | ) | | | (122 | ) | |
Net Decrease in Class L Shares Outstanding | | | (121 | ) | | | (95 | ) | |
Class C: | |
Shares Subscribed | | | 88 | | | | 250 | | |
Shares Redeemed | | | (608 | ) | | | (536 | ) | |
Net Decrease in Class C Shares Outstanding | | | (520 | ) | | | (286 | ) | |
Class R6: | |
Shares Subscribed | | | 1,408 | | | | 3,573 | | |
Shares Redeemed | | | (6,395 | ) | | | (5,902 | ) | |
Net Decrease in Class R6 Shares Outstanding | | | (4,987 | ) | | | (2,329 | ) | |
The accompanying notes are an integral part of the consolidated financial statements.
7
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Financial Highlights
Discovery Portfolio
| | | Class I | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020(1) | |
Net Asset Value, Beginning of Period | | $ | 12.39 | | | $ | 12.06 | | | $ | 42.00 | | | $ | 38.19 | | | $ | 19.92 | | |
Income (Loss) from Investment Operations: | |
Net Investment Loss(2) | | | (0.07 | ) | | | (0.03 | ) | | | (0.14 | ) | | | (0.24 | ) | | | (0.15 | ) | |
Net Realized and Unrealized Gain (Loss) | | | 5.22 | | | | 0.36 | | | | (19.69 | ) | | | 7.35 | | | | 20.73 | | |
Total from Investment Operations | | | 5.15 | | | | 0.33 | | | | (19.83 | ) | | | 7.11 | | | | 20.58 | | |
Distributions from and/or in Excess of: | |
Net Realized Gain | | | — | | | | — | | | | (10.11 | ) | | | (3.30 | ) | | | (2.31 | ) | |
Net Asset Value, End of Period | | $ | 17.54 | | | $ | 12.39 | | | $ | 12.06 | | | $ | 42.00 | | | $ | 38.19 | | |
Total Return(3) | | | 41.57 | %(4) | | | 2.74 | % | | | (61.26 | )% | | | 18.36 | % | | | 115.34 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 335,470 | | | $ | 294,703 | | | $ | 416,283 | | | $ | 1,719,520 | | | $ | 1,282,828 | | |
Ratio of Expenses Before Expense Limitation | | | 0.76 | % | | | 0.74 | % | | | 0.77 | % | | | N/A | | | | 0.74 | % | |
Ratio of Expenses After Expense Limitation | | | 0.72 | %(5)(6) | | | 0.74 | %(6) | | | 0.77 | %(6) | | | 0.72 | %(6) | | | 0.73 | %(6) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 0.72 | %(6) | | | 0.73 | %(6) | |
Ratio of Net Investment Loss | | | (0.46 | )%(5)(6) | | | (0.28 | )%(6) | | | (0.58 | )%(6) | | | (0.54 | )%(6) | | | (0.57 | )%(6) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.01 | % | |
Portfolio Turnover Rate | | | 46 | % | | | 51 | % | | | 67 | % | | | 115 | % | | | 65 | % | |
(1) Not consolidated.
(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) Refer to Note B in the Notes to Consolidated Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class I shares.
(5) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss, would have been as follows for Class I shares:
Period Ended | | Expense
Ratio | | Net Investment
Loss Ratio | |
September 30, 2024 | | | 0.76 | % | | | (0.50 | )% | |
(6) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(7) Amount is less than 0.005%.
The accompanying notes are an integral part of the consolidated financial statements.
8
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Financial Highlights
Discovery Portfolio
| | | Class A | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020(1) | |
Net Asset Value, Beginning of Period | | $ | 8.41 | | | $ | 8.21 | | | $ | 32.12 | | | $ | 29.92 | | | $ | 16.12 | | |
Income (Loss) from Investment Operations: | |
Net Investment Loss(2) | | | (0.07 | ) | | | (0.05 | ) | | | (0.14 | ) | | | (0.27 | ) | | | (0.17 | ) | |
Net Realized and Unrealized Gain (Loss) | | | 3.53 | | | | 0.25 | | | | (13.66 | ) | | | 5.77 | | | | 16.28 | | |
Total from Investment Operations | | | 3.46 | | | | 0.20 | | | | (13.80 | ) | | | 5.50 | | | | 16.11 | | |
Distributions from and/or in Excess of: | |
Net Realized Gain | | | — | | | | — | | | | (10.11 | ) | | | (3.30 | ) | | | (2.31 | ) | |
Net Asset Value, End of Period | | $ | 11.87 | | | $ | 8.41 | | | $ | 8.21 | | | $ | 32.12 | | | $ | 29.92 | | |
Total Return(3) | | | 41.14 | %(4) | | | 2.44 | % | | | (61.35 | )% | | | 18.02 | % | | | 114.87 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 392,991 | | | $ | 422,575 | | | $ | 527,685 | | | $ | 1,944,335 | | | $ | 1,403,660 | | |
Ratio of Expenses Before Expense Limitation | | | 1.02 | % | | | 1.02 | % | | | 1.03 | % | | | N/A | | | | 1.01 | % | |
Ratio of Expenses After Expense Limitation | | | 0.98 | %(5)(6) | | | 1.01 | %(6) | | | 1.03 | %(6) | | | 1.00 | %(6) | | | 1.00 | %(6) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 1.00 | %(6) | | | 1.00 | %(6) | |
Ratio of Net Investment Loss | | | (0.73 | )%(5)(6) | | | (0.56 | )%(6) | | | (0.85 | )%(6) | | | (0.81 | )%(6) | | | (0.82 | )%(6) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.01 | % | |
Portfolio Turnover Rate | | | 46 | % | | | 51 | % | | | 67 | % | | | 115 | % | | | 65 | % | |
(1) Not consolidated.
(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) Refer to Note B in the Notes to Consolidated Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class A shares.
(5) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss, would have been as follows for Class A shares:
Period Ended | | Expense
Ratio | | Net Investment
Loss Ratio | |
September 30, 2024 | | | 1.02 | % | | | (0.77 | )% | |
(6) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(7) Amount is less than 0.005%.
The accompanying notes are an integral part of the consolidated financial statements.
9
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Financial Highlights
Discovery Portfolio
| | | Class L | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020(1) | |
Net Asset Value, Beginning of Period | | $ | 6.31 | | | $ | 6.20 | | | $ | 27.00 | | | $ | 25.69 | | | $ | 14.21 | | |
Income (Loss) from Investment Operations: | |
Net Investment Loss(2) | | | (0.09 | ) | | | (0.07 | ) | | | (0.16 | ) | | | (0.36 | ) | | | (0.21 | ) | |
Net Realized and Unrealized Gain (Loss) | | | 2.65 | | | | 0.18 | | | | (10.53 | ) | | | 4.97 | | | | 14.00 | | |
Total from Investment Operations | | | 2.56 | | | | 0.11 | | | | (10.69 | ) | | | 4.61 | | | | 13.79 | | |
Distributions from and/or in Excess of: | |
Net Realized Gain | | | — | | | | — | | | | (10.11 | ) | | | (3.30 | ) | | | (2.31 | ) | |
Net Asset Value, End of Period | | $ | 8.87 | | | $ | 6.31 | | | $ | 6.20 | | | $ | 27.00 | | | $ | 25.69 | | |
Total Return(3) | | | 40.57 | %(4) | | | 1.77 | % | | | (61.52 | )% | | | 17.48 | % | | | 113.70 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 4,818 | | | $ | 4,197 | | | $ | 4,704 | | | $ | 13,762 | | | $ | 14,173 | | |
Ratio of Expenses Before Expense Limitation | | | 1.55 | % | | | 1.56 | % | | | 1.51 | % | | | N/A | | | | 1.50 | % | |
Ratio of Expenses After Expense Limitation | | | 1.51 | %(5)(6) | | | 1.55 | %(6) | | | 1.51 | %(6) | | | 1.44 | %(6) | | | 1.49 | %(6) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 1.44 | %(6) | | | 1.49 | %(6) | |
Ratio of Net Investment Loss | | | (1.26 | )%(5)(6) | | | (1.10 | )%(6) | | | (1.33 | )%(6) | | | (1.26 | )%(6) | | | (1.27 | )%(6) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.01 | % | |
Portfolio Turnover Rate | | | 46 | % | | | 51 | % | | | 67 | % | | | 115 | % | | | 65 | % | |
(1) Not consolidated.
(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) Refer to Note B in the Notes to Consolidated Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class L shares.
(5) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss, would have been as follows for Class L shares:
Period Ended | | Expense
Ratio | | Net Investment
Loss Ratio | |
September 30, 2024 | | | 1.55 | % | | | (1.30 | )% | |
(6) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(7) Amount is less than 0.005%.
The accompanying notes are an integral part of the consolidated financial statements.
10
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Financial Highlights
Discovery Portfolio
| | | Class C | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020(1) | |
Net Asset Value, Beginning of Period | | $ | 7.65 | | | $ | 7.52 | | | $ | 30.51 | | | $ | 28.74 | | | $ | 15.67 | | |
Income (Loss) from Investment Operations: | |
Net Investment Loss(2) | | | (0.14 | ) | | | (0.10 | ) | | | (0.24 | ) | | | (0.49 | ) | | | (0.32 | ) | |
Net Realized and Unrealized Gain (Loss) | | | 3.20 | | | | 0.23 | | | | (12.64 | ) | | | 5.56 | | | | 15.70 | | |
Total from Investment Operations | | | 3.06 | | | | 0.13 | | | | (12.88 | ) | | | 5.07 | | | | 15.38 | | |
Distributions from and/or in Excess of: | |
Net Realized Gain | | | — | | | | — | | | | (10.11 | ) | | | (3.30 | ) | | | (2.31 | ) | |
Net Asset Value, End of Period | | $ | 10.71 | | | $ | 7.65 | | | $ | 7.52 | | | $ | 30.51 | | | $ | 28.74 | | |
Total Return(3) | | | 40.00 | %(4) | | | 1.73 | % | | | (61.66 | )% | | | 17.21 | % | | | 113.21 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 13,248 | | | $ | 13,434 | | | $ | 15,363 | | | $ | 59,936 | | | $ | 33,781 | | |
Ratio of Expenses Before Expense Limitation | | | 1.80 | % | | | 1.80 | % | | | 1.77 | % | | | N/A | | | | 1.75 | % | |
Ratio of Expenses After Expense Limitation | | | 1.76 | %(5)(6) | | | 1.79 | %(6) | | | 1.77 | %(6) | | | 1.71 | %(6) | | | 1.74 | %(6) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 1.71 | %(6) | | | 1.74 | %(6) | |
Ratio of Net Investment Loss | | | (1.51 | )%(5)(6) | | | (1.34 | )%(6) | | | (1.59 | )%(6) | | | (1.52 | )%(6) | | | (1.59 | )%(6) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.01 | % | |
Portfolio Turnover Rate | | | 46 | % | | | 51 | % | | | 67 | % | | | 115 | % | | | 65 | % | |
(1) Not consolidated.
(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) Refer to Note B in the Notes to Consolidated Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class C shares.
(5) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss, would have been as follows for Class C shares:
Period Ended | | Expense
Ratio | | Net Investment
Loss Ratio | |
September 30, 2024 | | | 1.80 | % | | | (1.55 | )% | |
(6) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(7) Amount is less than 0.005%.
The accompanying notes are an integral part of the consolidated financial statements.
11
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Financial Highlights
Discovery Portfolio
| | | Class R6(1) | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020(2) | |
Net Asset Value, Beginning of Period | | $ | 12.69 | | | $ | 12.34 | | | $ | 42.67 | | | $ | 38.72 | | | $ | 20.15 | | |
Income (Loss) from Investment Operations: | |
Net Investment Loss(3) | | | (0.05 | ) | | | (0.02 | ) | | | (0.10 | ) | | | (0.19 | ) | | | (0.12 | ) | |
Net Realized and Unrealized Gain (Loss) | | | 5.34 | | | | 0.37 | | | | (20.12 | ) | | | 7.44 | | | | 21.00 | | |
Total from Investment Operations | | | 5.29 | | | | 0.35 | | | | (20.22 | ) | | | 7.25 | | | | 20.88 | | |
Distributions from and/or in Excess of: | |
Net Realized Gain | | | — | | | | — | | | | (10.11 | ) | | | (3.30 | ) | | | (2.31 | ) | |
Net Asset Value, End of Period | | $ | 17.98 | | | $ | 12.69 | | | $ | 12.34 | | | $ | 42.67 | | | $ | 38.72 | | |
Total Return(4) | | | 41.69 | %(5) | | | 2.84 | % | | | (61.20 | )% | | | 18.47 | % | | | 115.65 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 152,339 | | | $ | 170,794 | | | $ | 194,806 | | | $ | 547,683 | | | $ | 354,067 | | |
Ratio of Expenses Before Expense Limitation | | | 0.65 | % | | | 0.65 | % | | | 0.64 | % | | | N/A | | | | 0.64 | % | |
Ratio of Expenses After Expense Limitation | | | 0.61 | %(6)(7) | | | 0.64 | %(7) | | | 0.64 | %(7) | | | 0.61 | %(7) | | | 0.63 | %(7) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 0.61 | %(7) | | | 0.63 | %(7) | |
Ratio of Net Investment Loss | | | (0.36 | )%(6)(7) | | | (0.19 | )%(7) | | | (0.45 | )%(7) | | | (0.42 | )%(7) | | | (0.44 | )%(7) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(8) | | | 0.00 | %(8) | | | 0.00 | %(8) | | | 0.00 | %(8) | | | 0.01 | % | |
Portfolio Turnover Rate | | | 46 | % | | | 51 | % | | | 67 | % | | | 115 | % | | | 65 | % | |
(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.
(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) Refer to Note B in the Notes to Consolidated Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class R6 shares.
(6) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Loss, would have been as follows for Class R6 shares:
Period Ended | | Expense
Ratio | | Net Investment
Loss Ratio | |
September 30, 2024 | | | 0.65 | % | | | (0.40 | )% | |
(7) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(8) Amount is less than 0.005%.
The accompanying notes are an integral part of the consolidated financial statements.
12
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements
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 six separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). All Funds are considered diversified for purposes of the Act.
The Trust applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the Fund's Consolidated Statement of Assets and Liabilities through the date that the financial statements were issued.
The accompanying consolidated financial statements relate to the Discovery Portfolio. The Fund seeks long-term capital growth. The Fund has issued five classes of shares — Class I, Class A, Class L, Class C and Class R6.
The Fund has suspended offering 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. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.
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.
The Fund may 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, Discovery Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in pooled investment vehicles and exchange-traded products that invest in bitcoin ("bitcoin ETFs"). 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of September 30, 2024, the Subsidiary represented approximately $21,534,000 or approximately 2.40% of the net assets of the Fund.
Investments in the Subsidiary are expected to provide the Fund with exposure to bitcoin 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) 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. If only bid prices are available then the latest bid price may be used. 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/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
13
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
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/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 reputable broker/dealer or valued by a pricing service/vendor; (4) fixed income 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. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or the pricing service/vendor or exchange is unable to provide a price, prices from reputable brokers/dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from reputable brokers/dealers; (5) when market quotations are not readily available as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Trustees. Each business day, the Fund uses a third-party pricing service approved by the Trustees to assist with the valuation of foreign equity securities. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities to more accurately reflect their fair value as of the close of regular trading on the NYSE;
(6) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.
In connection with Rule 2a-5 of the Act, the Trustees have designated the Trust's Adviser as its valuation designee. The valuation designee has responsibility for 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, as valuation designee, 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.
2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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
14
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
• 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 September 30, 2024:
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 | |
Automobiles | | $ | 2,015 | | | $ | — | | | $ | — | | | $ | 2,015 | | |
Biotechnology | | | 24,434 | | | | — | | | | — | | | | 24,434 | | |
Broadline Retail | | | 48,210 | | | | — | | | | — | | | | 48,210 | | |
Consumer Staples
Distribution &
Retail | | | 13,233 | | | | — | | | | — | | | | 13,233 | | |
Entertainment | | | 49,811 | | | | — | | | | — | | | | 49,811 | | |
Financial Services | | | 61,455 | | | | 35,959 | | | | — | | | | 97,414 | | |
Health Care
Equipment &
Supplies | | | 6,648 | | | | — | | | | — | | | | 6,648 | | |
Health Care
Providers &
Services | | | 16,492 | | | | — | | | | — | | | | 16,492 | | |
Health Care Technology | | | 18,710 | | | | — | | | | — | | | | 18,710 | | |
Hotels, Restaurants &
Leisure | | | 76,977 | | | | — | | | | — | | | | 76,977 | | |
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) | |
Information Technology
Services | | $ | 89,374 | | | $ | — | | | $ | — | | | $ | 89,374 | | |
Leisure Products | | | 10,786 | | | | — | | | | — | | | | 10,786 | | |
Life Sciences Tools &
Services | | | 9,897 | | | | — | | | | — | | | | 9,897 | | |
Machinery | | | 2,271 | | | | — | | | | — | | | | 2,271 | | |
Media | | | 66,996 | | | | — | | | | — | | | | 66,996 | | |
Pharmaceuticals | | | 40,776 | | | | — | | | | — | | | | 40,776 | | |
Software | | | 213,185 | | | | — | | | | — | | | | 213,185 | | |
Specialty Retail | | | 56,322 | | | | — | | | | — | | | | 56,322 | | |
Total Common Stocks | | | 807,592 | | | | 35,959 | | | | — | | | | 843,551 | | |
Preferred Stock | |
Software | | | — | | | | — | | | | 22,468 | | | | 22,468 | | |
Investment Company | | | 21,538 | | | | — | | | | — | | | | 21,538 | | |
Call Options Purchased | | | — | | | | 739 | | | | — | | | | 739 | | |
Short-Term
Investments | |
Investment Company | | | 16,433 | | | | — | | | | — | | | | 16,433 | | |
Repurchase
Agreements | | | — | | | | 682 | | | | — | | | | 682 | | |
Total Short-Term
Investments | | | 16,433 | | | | 682 | | | | — | | | | 17,115 | | |
Total Assets | | $ | 845,563 | | | $ | 37,380 | | | $ | 22,468 | | | $ | 905,411 | | |
Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.
Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
| | | Preferred
Stock
(000) | |
Beginning Balance | | $ | 31,817 | | |
Purchases | | | — | | |
Sales | | | — | | |
Transfers in | | | — | | |
Transfers out | | | — | | |
Corporate actions | | | — | | |
Change in unrealized appreciation (depreciation) | | | (9,349 | ) | |
Realized gains (losses) | | | — | | |
Ending Balance | | $ | 22,468 | | |
Net change in unrealized appreciation (depreciation)
from investments still held as of September 30, 2024 | | $ | (9,349 | ) | |
15
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (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 September 30, 2024:
| | | Fair Value at
September 30, 2024
(000) | | Valuation
Technique | | Unobservable
Input | | Amount* | | Impact to
Valuation from an
Increase in Input** | |
Preferred Stock | | $ | 22,468 | | | Market Transaction Method | | Precedent Transaction | | $ | 73.50 | | | Increase | |
| | | | | Discounted Cash Flow | | Weighted Average
Cost of Capital | | | 14.5 | % | | Decrease | |
| | | | | | | Perpetual Growth Rate | | | 3.5 | % | | Increase | |
| | | | | Market Comparable
Companies | | Enterprise Value/
Revenue | | | 8.6 | x | | Increase | |
| | | | | | | Discount for Lack of
Marketability | | | 12.0 | % | | Decrease | |
* Amount is indicative of the weighted average.
** Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
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
16
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. 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 U.S. 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.
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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and
legal risks. 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 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 ex-change risk in the normal course of pursuing its investment objectives. If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. The Fund may purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which
17
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
expired are treated as realized losses. If the Fund writes 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 September 30, 2024:
| | | Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location | | Primary Risk
Exposure | | Value
(000) | |
Purchased Options | | Investments, at Value
(Purchased Options) | | Currency Risk | | $ | 739 | (a) | |
(a) Amounts are included in Investments in Securities in the Consolidated 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 year ended September 30, 2024 in accordance with ASC 815:
Realized Gain (Loss) | |
Primary Risk Exposure | | Derivative Type | | Value
(000) | |
Currency Risk | | Investments
(Purchased Options) | | $ | (2,919 | )(a) | |
(a) Amounts are included in Realized Gain (Loss) on Investments Sold in the Consolidated Statement of Operations.
Change in Unrealized Appreciation (Depreciation) | |
Primary Risk Exposure | | Derivative Type | | Value
(000) | |
Currency Risk | | Investments
(Purchased Options) | | $ | (2,181 | )(a) | |
(a) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.
At September 30, 2024, 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 | | Assets(b)
(000) | | Liabilities(b)
(000) | |
Purchased Options | | $ | 739 | (a) | | $ | — | | |
(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.
(b) 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
18
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (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 September 30, 2024:
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(a)
(000) | | Financial
Instrument
(000) | | Collateral
Received(b)
(000) | | Net Amount
(not less
than $0)
(000) | |
Goldman Sachs International | | $ | 74 | | | $ | — | | | $ | (74 | ) | | $ | 0 | | |
JPMorgan Chase Bank NA | | | 665 | | | | — | | | | (665 | ) | | | 0 | | |
Total | | $ | 739 | | | $ | — | | | $ | (739 | ) | | $ | 0 | | |
(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.
(b) In some instances, the actual collateral received may be more than the amount shown here due to overcollateralization.
For the year ended September 30, 2024, the approximate average monthly amount outstanding for each derivative type is as follows:
Purchased Options: | |
Average monthly notional amount | | | 750,049,000 | | |
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 Consolidated 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 September 30, 2024:
Gross Amount Not Offset in the Consolidated Statement of Assets and Liabilities | |
Gross Asset
Amount
Presented in the
Consolidated
Statement of
Assets and
Liabilities
(000) | | Financial
Instrument
(000) | | Collateral
Received
(000) | | Net Amount
(not less
than $0)
(000) | |
| $ | 3,532 | (a) | | $ | — | | | $ | (3,532 | )(b)(c) | | $ | 0 | | |
(a) Represents market value of loaned securities at year end.
(b) The Fund received cash collateral of approximately $3,382,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $347,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Consolidated Portfolio of Investments.
(c) 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 borrowings.
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 September 30, 2024:
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 | | $ | 3,382 | | | $ | — | | | $ | — | | | $ | — | | | $ | 3,382 | | |
Total Borrowings | | $ | 3,382 | | | $ | — | | | $ | — | | | $ | — | | | $ | 3,382 | | |
Gross amount of
recognized liabilities
for securities lending
transactions | | | | | | | | | | $ | 3,382 | | |
19
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (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 Consolidated Portfolio of Investments.
8. Indemnifications: The Trust enters into contracts that contain a variety of indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. 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, co-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 daily net assets of the Fund.
The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund 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 R6 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. This arrangement had no effect for the year ended September 30, 2024.
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.
The Adviser agreed to reimburse the Fund for prior years overpayment of transfer agency and sub transfer agency fees. This was reflected as "Reimbursement of Transfer Agency and Sub Transfer Agency Fees" in the Consolidated Statement of Operations.
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.
20
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
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 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 distribution-related and/or 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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS"). Pursuant to a Transfer Agency Agreement, the Trust pays SS&C GIDS a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.
Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended September 30, 2024, co-transfer agency fees and expenses incurred to EVM, included in "Transfer Agency Fees" in the Consolidated Statement of Operations, amounted to approximately $9,000.
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 year ended September 30, 2024, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $413,307,000 and $734,390,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended September 30, 2024.
The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Fund"), 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 Fund. For the year ended September 30, 2024, advisory fees paid were reduced by approximately $35,000 relating to the Fund's investment in the Liquidity Fund.
A summary of the Fund's transactions in shares of affiliated investments during the year ended September 30, 2024 is as follows:
Affiliated
Investment
Company | | Value
September 30,
2023
(000) | | Purchases
at Cost
(000) | | Proceeds
from Sales
(000) | | Dividend
Income
(000) | |
Liquidity Fund | | $ | 25,687 | | | $ | 381,785 | | | $ | 391,039 | | | $ | 953 | | |
Affiliated
Investment
Company (cont'd) | | Realized Gain
(Loss)
(000) | | Change in
Unrealized
Appreciation
(Depreciation)
(000) | | Value
September 30,
2024
(000) | |
Liquidity Fund | | $ | — | | | $ | — | | | $ | 16,433 | | |
21
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
During the year ended September 30, 2024, the Fund incurred approximately $8,000 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 year ended September 30, 2024, the Fund did not engage in any cross-trade transactions.
The Fund has an unfunded noncontributory defined benefit pension plan covering certain independent Trustees of the Fund who will have served as independent Trustees for at least five years at the time of retirement. Benefits under this plan are based on factors which include years of service and compensation. The Trustees voted to close the plan to new participants and eliminate the future benefits growth due to increases to compensation after July 31, 2003. Aggregate pension costs for the year ended September 30, 2024, included in "Trustees' Fees and Expenses" in the Consolidated Statement of Operations amounted to approximately $2,000. At September 30, 2024, the Fund had an accrued pension liability of approximately $35,000, which is reflected as "Payable for Trustees' Fees and Expenses" in the Consolidated Statement of Assets and Liabilities.
Each Trustee receives an annual retainer fee for serving as a Trustee of the Morgan Stanley Funds. The aggregate compensation paid to each Trustee is paid by the Morgan Stanley Funds, and is allocated on a pro rata basis among each of the operational funds of the Morgan Stanley Funds based on the relative net assets of each of the funds. The fund also reimburses such Trustees for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings.
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 RIC 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, 2024 remains subject to examination by taxing authorities.
The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. There were no distributions paid during fiscal years 2024 and 2023.
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.
22
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
Permanent differences, due to tax adjustments related to the Subsidiary, resulted in the following reclassifications among the components of net assets at September 30, 2024:
Total
Accumulated
Loss
(000) | | Paid-in-
Capital
(000) | |
| $ | 10,333 | | | $ | (10,333 | ) | |
At September 30, 2024, the Fund had no distributable earnings on a tax basis.
At September 30, 2024, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $562,516,000 and $988,840,000, respectively, that do not have an expiration date.
To the extent that capital loss carryforwards are used to offset any future capital gains realized, 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.
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. For the year ended September 30, 2024, the Fund intends to defer to October 1, 2024 for U.S. federal income tax purposes the following losses:
Qualified Late
Year Ordinary
Losses
(000) | | Post-October
Capital Losses
(000) | |
| $ | 350 | | | $ | — | | |
I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $500,000,000 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 for any funds drawn will be based on the federal funds rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility, which is allocated among participating funds based on relative net assets. During the year ended September 30, 2024, the Fund did not have any borrowings under the Facility.
J. Other: At September 30, 2024, 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 60.3%.
K. Market Risk and Risks Relating to Certain Financial Instruments:
Bitcoin: The Fund may have exposure to cryptocurrencies indirectly through cash settled futures bitcoin exposure or indirectly through bitcoin ETFs. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. For example, the bitcoin held by bitcoin ETFs (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the bitcoin ETFs investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile and subject to sharp declines. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The Bitcoin ETF exposure could result in substantial losses to the Fund.
Market: The value of an investment in the Fund is based on the values of the Fund's investments, which change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events adversely interrupt the global economy and financial markets. Securities in the Fund's portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters and extreme weather events, health emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years,
23
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
such as terrorist attacks around the world, natural disasters, health emergencies, social and political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. The occurrence of such events may be sudden and unexpected, and it is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). Any such event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund's portfolio, as well as its ability to sell securities and/or meet redemptions. Any such event(s) or similar types of factors and developments may also adversely affect the financial performance of the Fund's investments (and, in turn, the Fund's investment results) and/or negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments, and exacerbate preexisting risks to the Fund.
24
Morgan Stanley Institutional Fund Trust
September 30, 2024
Report of Independent Registered Public Accounting Firm
To the Shareholders of Discovery Portfolio and the Board of
Trustees of Morgan Stanley Institutional Fund Trust
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities of Discovery Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund Trust (the "Trust")), including the consolidated portfolio of investments, as of September 30, 2024, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the four years in the period then ended, the financial highlights for year ended September 30, 2020 and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund Trust) at September 30, 2024, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended, its consolidated financial highlights for each of the four years in the period then ended and its financial highlights for the year ended September 30, 2020, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Morgan Stanley investment companies since 2000.
Boston, Massachusetts
November 26, 2024
25
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited)
Nature, Extent and Quality of Services
The Board reviewed and considered the nature and extent of the investment advisory services provided by the Adviser under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services provided by the Administrator under the administration agreement, including accounting, operations, clerical, bookkeeping, compliance, business management and planning, legal services and the provision of supplies, office space and utilities at the Adviser's expense. The Board also considered the Adviser's investment in personnel and infrastructure that benefits the Fund. (The Adviser and Administrator together are referred to as the "Adviser" and the advisory and administration agreements together are referred to as the "Management Agreement.") The Board also considered that the Adviser serves a variety of other investment advisory clients and has experience overseeing service providers. The Board also compared the nature of the services provided by the Adviser with similar services provided by non-affiliated advisers as prepared by Broadridge Financial Solutions, Inc. ("Broadridge").
The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who provide the advisory and administrative services to the Fund. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services provided were necessary and appropriate for the conduct of the business and investment activities of the Fund and supported its decision to approve the Management Agreement.
Performance, Fees and Expenses of the Fund
The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2023, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the one-year period but below its peer group average for the three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. The Board noted that the Fund's management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Fund's (i) performance was acceptable and (ii) management fee and total expense ratio were competitive with its peer group averages.
Economies of Scale
The Board considered the size and growth prospects of the Fund and how that relates to the Fund's total expense ratio and particularly the Fund's management fee rate, which does not include breakpoints. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Fund and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and/or potential economies of scale of the Fund supports its decision to approve the Management Agreement.
Profitability of the Adviser and Affiliates
The Board considered information concerning the costs incurred and profits realized by the Adviser and its affiliates during the last year from their relationship with the Fund and during the last two years from their relationship with the Morgan Stanley Fund Complex and reviewed with the Adviser the cost allocation methodology used to determine the profitability of the Adviser and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.
26
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited) (cont'd)
Other Benefits of the Relationship
The Board considered other direct and indirect benefits to the Adviser and/or its affiliates derived from their relationship with the Fund and other funds advised by the Adviser. These benefits may include, among other things, fees for trading, distribution and/or shareholder servicing and for transaction processing and reporting platforms used by securities lending agents, and research received by the Adviser generated from commission dollars spent on funds' portfolio trading. The Board reviewed with the Adviser these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.
Resources of the Adviser and Historical Relationship Between the Fund and the Adviser
The Board considered whether the Adviser is financially sound and has the resources necessary to perform its obligations under the Management Agreement. The Board also reviewed and considered the historical relationship between the Fund and the Adviser, including the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Fund's operations and the Board's confidence in the competence and integrity of the senior managers and key personnel of the Adviser. The Board concluded that the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Fund to continue its relationship with the Adviser.
Other Factors and Current Trends
The Board considered the controls and procedures adopted and implemented by the Adviser and monitored by the Fund's Chief Compliance Officer and concluded that the conduct of business by the Adviser indicates a good faith effort on its part to adhere to high ethical standards in the conduct of the Fund's business.
General Conclusion
After considering and weighing all of the above factors, with various written materials and verbal information presented by the Adviser, the Board concluded that it would be in the best interest of the Fund and its shareholders to approve renewal of the Management Agreement for another year. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. The Board considered these factors and information over the course of the year and in numerous meetings, some of which were in executive session with only the independent Board members and their counsel present. It is possible that individual Board members may have weighed these factors, and the information presented, differently in reaching their individual decisions to approve the Management Agreement.
27
Morgan Stanley Investment Management Inc.
1585 Broadway
New York, New York 10036
© 2024 Morgan Stanley. Morgan Stanley Distribution, Inc.
Morgan Stanley Institutional Fund Trust
Dynamic Value Portfolio
Annual Financial Statements and Additional Information
September 30, 2024
Morgan Stanley Institutional Fund Trust
September 30, 2024
Table of Contents (unaudited)
Portfolio of Investments | | | 2 | | |
Statement of Assets and Liabilities | | | 6 | | |
Statement of Operations | | | 7 | | |
Statements of Changes in Net Assets | | | 8 | | |
Financial Highlights | | | 9 | | |
Notes to Financial Statements | | | 13 | | |
Report of Independent Registered Public Accounting Firm | | | 20 | | |
Investment Advisory Agreement Approval | | | 21 | | |
Federal Tax Notice | | | 23 | | |
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) 869-6397. Please read the prospectuses carefully before you invest or send money.
Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.
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
September 30, 2024
Portfolio of Investments
Dynamic Value Portfolio
| | | Shares | | Value
(000) | |
Common Stocks (98.3%) | |
Aerospace & Defense (1.1%) | |
Huntington Ingalls Industries, Inc. | | | 201 | | | $ | 53 | | |
Textron, Inc. | | | 598 | | | | 53 | | |
| | | | 106 | | |
Air Freight & Logistics (0.4%) | |
FedEx Corp. | | | 150 | | | | 41 | | |
Automobile Components (0.3%) | |
Lear Corp. | | | 285 | | | | 31 | | |
Automobiles (0.3%) | |
General Motors Co. | | | 651 | | | | 29 | | |
Banks (6.6%) | |
Bank OZK | | | 2,213 | | | | 95 | | |
East West Bancorp, Inc. | | | 1,136 | | | | 94 | | |
First Citizens BancShares, Inc., Class A | | | 50 | | | | 92 | | |
FNB Corp. | | | 6,644 | | | | 94 | | |
Huntington Bancshares, Inc. | | | 6,365 | | | | 93 | | |
Webster Financial Corp. | | | 1,990 | | | | 93 | | |
Zions Bancorp NA | | | 1,964 | | | | 93 | | |
| | | | 654 | | |
Beverages (0.6%) | |
Molson Coors Beverage Co., Class B | | | 957 | | | | 55 | | |
Biotechnology (2.1%) | |
Biogen, Inc. (a) | | | 360 | | | | 70 | | |
Gilead Sciences, Inc. | | | 835 | | | | 70 | | |
United Therapeutics Corp. (a) | | | 196 | | | | 70 | | |
| | | | 210 | | |
Broadline Retail (0.8%) | |
Dillard's, Inc., Class A | | | 68 | | | | 26 | | |
Kohl's Corp. | | | 1,302 | | | | 28 | | |
Nordstrom, Inc. | | | 1,109 | | | | 25 | | |
| | | | 79 | | |
Building Products (1.1%) | |
Builders FirstSource, Inc. (a) | | | 269 | | | | 52 | | |
Owens Corning | | | 297 | | | | 53 | | |
| | | | 105 | | |
Capital Markets (2.5%) | |
Affiliated Managers Group, Inc. | | | 358 | | | | 64 | | |
Franklin Resources, Inc. | | | 3,033 | | | | 61 | | |
Invesco Ltd. | | | 3,637 | | | | 64 | | |
Virtu Financial, Inc., Class A | | | 2,038 | | | | 62 | | |
| | | | 251 | | |
Chemicals (2.5%) | |
Celanese Corp. | | | 303 | | | | 41 | | |
Chemours Co. | | | 2,056 | | | | 42 | | |
FMC Corp. | | | 622 | | | | 41 | | |
LyondellBasell Industries NV, Class A | | | 418 | | | | 40 | | |
Mosaic Co. | | | 1,570 | | | | 42 | | |
Olin Corp. | | | 874 | | | | 42 | | |
| | | | 248 | | |
| | | Shares | | Value
(000) | |
Commercial Services & Supplies (0.2%) | |
Vestis Corp. | | | 1,182 | | | $ | 18 | | |
Construction & Engineering (1.1%) | |
MDU Resources Group, Inc. | | | 1,878 | | | | 51 | | |
Valmont Industries, Inc. | | | 181 | | | | 53 | | |
| | | | 104 | | |
Consumer Finance (3.3%) | |
Ally Financial, Inc. | | | 1,867 | | | | 67 | | |
Capital One Financial Corp. | | | 433 | | | | 65 | | |
OneMain Holdings, Inc. | | | 1,390 | | | | 65 | | |
SLM Corp. | | | 2,964 | | | | 68 | | |
Synchrony Financial | | | 1,324 | | | | 66 | | |
| | | | 331 | | |
Consumer Staples Distribution & Retail (2.3%) | |
Albertsons Cos., Inc., Class A | | | 4,002 | | | | 74 | | |
Kroger Co. | | | 1,322 | | | | 76 | | |
Walgreens Boots Alliance, Inc. | | | 8,688 | | | | 78 | | |
| | | | 228 | | |
Containers & Packaging (1.6%) | |
Berry Global Group, Inc. | | | 587 | | | | 40 | | |
Graphic Packaging Holding Co. | | | 1,376 | | | | 41 | | |
Sealed Air Corp. | | | 1,129 | | | | 41 | | |
Sonoco Products Co. | | | 740 | | | | 40 | | |
| | | | 162 | | |
Distributors (0.3%) | |
LKQ Corp. | | | 641 | | | | 26 | | |
Diversified Consumer Services (0.4%) | |
ADT, Inc. | | | 3,019 | | | | 22 | | |
H&R Block, Inc. | | | 344 | | | | 22 | | |
| | | | 44 | | |
Diversified REITs (0.4%) | |
WP Carey, Inc. REIT | | | 643 | | | | 40 | | |
Diversified Telecommunication Services (1.8%) | |
AT&T, Inc. | | | 8,201 | | | | 180 | | |
Electric Utilities (2.4%) | |
NRG Energy, Inc. | | | 666 | | | | 61 | | |
OGE Energy Corp. | | | 1,437 | | | | 59 | | |
PG&E Corp. | | | 2,955 | | | | 58 | | |
Pinnacle West Capital Corp. | | | 656 | | | | 58 | | |
| | | | 236 | | |
Electrical Equipment (0.5%) | |
Sensata Technologies Holding PLC | | | 1,439 | | | | 52 | | |
Electronic Equipment, Instruments & Components (1.8%) | |
Arrow Electronics, Inc. (a) | | | 262 | | | | 35 | | |
Avnet, Inc. | | | 653 | | | | 35 | | |
Jabil, Inc. | | | 307 | | | | 37 | | |
TD Synnex Corp. | | | 292 | | | | 35 | | |
Vontier Corp. | | | 1,043 | | | | 35 | | |
| | | | 177 | | |
The accompanying notes are an integral part of the financial statements.
2
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Dynamic Value Portfolio
| | | Shares | | Value
(000) | |
Energy Equipment & Services (0.8%) | |
NOV, Inc. | | | 4,961 | | | $ | 79 | | |
Entertainment (0.3%) | |
Playtika Holding Corp. | | | 3,614 | | | | 29 | | |
Financial Services (3.9%) | |
Corebridge Financial, Inc. | | | 2,216 | | | | 65 | | |
Equitable Holdings, Inc. | | | 1,512 | | | | 63 | | |
Global Payments, Inc. | | | 615 | | | | 63 | | |
MGIC Investment Corp. | | | 2,524 | | | | 65 | | |
Voya Financial, Inc. | | | 821 | | | | 65 | | |
Western Union Co. | | | 5,319 | | | | 63 | | |
| | | | 384 | | |
Food Products (3.2%) | |
Archer-Daniels-Midland Co. | | | 861 | | | | 51 | | |
Conagra Brands, Inc. | | | 1,617 | | | | 53 | | |
Darling Ingredients, Inc. (a) | | | 1,415 | | | | 53 | | |
J M Smucker Co. | | | 445 | | | | 54 | | |
Kraft Heinz Co. | | | 1,506 | | | | 53 | | |
Seaboard Corp. | | | 16 | | | | 50 | | |
| | | | 314 | | |
Gas Utilities (1.2%) | |
National Fuel Gas Co. | | | 965 | | | | 59 | | |
UGI Corp. | | | 2,369 | | | | 59 | | |
| | | | 118 | | |
Ground Transportation (0.4%) | |
Avis Budget Group, Inc. | | | 459 | | | | 40 | | |
Health Care Equipment & Supplies (1.3%) | |
Baxter International, Inc. | | | 1,727 | | | | 66 | | |
Solventum Corp. (a) | | | 961 | | | | 67 | | |
| | | | 133 | | |
Health Care Providers & Services (6.1%) | |
Cencora, Inc. | | | 299 | | | | 67 | | |
Centene Corp. (a) | | | 905 | | | | 68 | | |
Cigna Group | | | 191 | | | | 66 | | |
CVS Health Corp. | | | 1,159 | | | | 73 | | |
DaVita, Inc. (a) | | | 417 | | | | 68 | | |
Elevance Health, Inc. | | | 128 | | | | 67 | | |
Premier, Inc., Class A | | | 3,436 | | | | 69 | | |
Tenet Healthcare Corp. (a) | | | 405 | | | | 67 | | |
Universal Health Services, Inc., Class B | | | 279 | | | | 64 | | |
| | | | 609 | | |
Hotel & Resort REITs (0.8%) | |
Host Hotels & Resorts, Inc. REIT | | | 2,178 | | | | 38 | | |
Park Hotels & Resorts, Inc. REIT | | | 2,682 | | | | 38 | | |
| | | | 76 | | |
Hotels, Restaurants & Leisure (1.6%) | |
Boyd Gaming Corp. | | | 342 | | | | 22 | | |
Carnival Corp. (a) | | | 1,168 | | | | 22 | | |
Expedia Group, Inc. (a) | | | 148 | | | | 22 | | |
Marriott Vacations Worldwide Corp. | | | 288 | | | | 21 | | |
MGM Resorts International (a) | | | 586 | | | | 23 | | |
| | | Shares | | Value
(000) | |
Travel & Leisure Co. | | | 477 | | | $ | 22 | | |
Wynn Resorts Ltd. | | | 260 | | | | 25 | | |
| | | | 157 | | |
Household Durables (0.6%) | |
Newell Brands, Inc. | | | 2,797 | | | | 22 | | |
Toll Brothers, Inc. | | | 129 | | | | 20 | | |
Whirlpool Corp. | | | 191 | | | | 20 | | |
| | | | 62 | | |
Household Products (1.9%) | |
Kimberly-Clark Corp. | | | 661 | | | | 94 | | |
Reynolds Consumer Products, Inc. | | | 3,011 | | | | 94 | | |
| | | | 188 | | |
Independent Power & Renewable Electricity Producers (1.2%) | |
AES Corp. | | | 3,065 | | | | 61 | | |
Clearway Energy, Inc., Class C | | | 1,955 | | | | 60 | | |
| | | | 121 | | |
Information Technology Services (1.8%) | |
Akamai Technologies, Inc. (a) | | | 216 | | | | 22 | | |
Amdocs Ltd. | | | 253 | | | | 22 | | |
Cognizant Technology Solutions Corp., Class A | | | 289 | | | | 22 | | |
DXC Technology Co. (a) | | | 1,085 | | | | 23 | | |
EPAM Systems, Inc. (a) | | | 110 | | | | 22 | | |
GoDaddy, Inc., Class A (a) | | | 139 | | | | 22 | | |
International Business Machines Corp. | | | 99 | | | | 22 | | |
Kyndryl Holdings, Inc. (a) | | | 936 | | | | 21 | | |
| | | | 176 | | |
Insurance (4.1%) | |
Assured Guaranty Ltd. | | | 625 | | | | 50 | | |
Axis Capital Holdings Ltd. | | | 628 | | | | 50 | | |
CNA Financial Corp. | | | 1,018 | | | | 50 | | |
Everest Group Ltd. | | | 130 | | | | 51 | | |
Globe Life, Inc. | | | 460 | | | | 49 | | |
Loews Corp. | | | 636 | | | | 50 | | |
RenaissanceRe Holdings Ltd. | | | 189 | | | | 51 | | |
Unum Group | | | 866 | | | | 51 | | |
| | | | 402 | | |
Leisure Products (0.2%) | |
Brunswick Corp. | | | 239 | | | | 20 | | |
Machinery (5.7%) | |
Agco Corp. | | | 538 | | | | 53 | | |
Allison Transmission Holdings, Inc. | | | 557 | | | | 53 | | |
| CNH Industrial NV | | | 4,608 | | | | 51 | | |
Cummins, Inc. | | | 160 | | | | 52 | | |
Deere & Co. | | | 126 | | | | 52 | | |
Flowserve Corp. | | | 994 | | | | 51 | | |
Gates Industrial Corp. PLC (a) | | | 2,945 | | | | 52 | | |
Middleby Corp. (a) | | | 358 | | | | 50 | | |
Oshkosh Corp. | | | 506 | | | | 51 | | |
PACCAR, Inc. | | | 523 | | | | 52 | | |
Timken Co. | | | 618 | | | | 52 | | |
| | | | 569 | | |
The accompanying notes are an integral part of the financial statements.
3
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Dynamic Value Portfolio
| | | Shares | | Value
(000) | |
Media (2.0%) | |
Charter Communications, Inc., Class A (a) | | | 87 | | | $ | 28 | | |
Comcast Corp., Class A | | | 683 | | | | 28 | | |
Fox Corp., Class B | | | 727 | | | | 28 | | |
Interpublic Group of Cos., Inc. | | | 905 | | | | 29 | | |
Nexstar Media Group, Inc., Class A | | | 169 | | | | 28 | | |
Omnicom Group, Inc. | | | 278 | | | | 29 | | |
Sirius XM Holdings, Inc. | | | 1,173 | | | | 28 | | |
| | | | 198 | | |
Metals & Mining (0.4%) | |
Steel Dynamics, Inc. | | | 322 | | | | 41 | | |
Mortgage Real Estate Investment (0.6%) | |
Rithm Capital Corp. REIT | | | 5,404 | | | | 61 | | |
Office REITs (0.8%) | |
Highwoods Properties, Inc. REIT | | | 1,211 | | | | 40 | | |
Kilroy Realty Corp. REIT | | | 1,025 | | | | 40 | | |
| | | | 80 | | |
Oil, Gas & Consumable Fuels (5.6%) | |
APA Corp. | | | 3,279 | | | | 80 | | |
Chord Energy Corp. | | | 616 | | | | 80 | | |
Civitas Resources, Inc. | | | 1,557 | | | | 79 | | |
Devon Energy Corp. | | | 2,026 | | | | 79 | | |
Matador Resources Co. | | | 1,600 | | | | 79 | | |
Ovintiv, Inc. | | | 2,042 | | | | 78 | | |
Valero Energy Corp. | | | 626 | | | | 85 | | |
| | | | 560 | | |
Passenger Airlines (1.3%) | |
American Airlines Group, Inc. (a) | | | 3,627 | | | | 41 | | |
Delta Air Lines, Inc. | | | 838 | | | | 42 | | |
United Airlines Holdings, Inc. (a) | | | 747 | | | | 43 | | |
| | | | 126 | | |
Pharmaceuticals (5.6%) | |
Bristol-Myers Squibb Co. | | | 1,374 | | | | 71 | | |
Jazz Pharmaceuticals PLC (a) | | | 642 | | | | 72 | | |
Merck & Co., Inc. | | | 609 | | | | 69 | | |
Organon & Co. | | | 3,559 | | | | 68 | | |
Perrigo Co. PLC | | | 2,637 | | | | 69 | | |
Pfizer, Inc. | | | 2,372 | | | | 69 | | |
Royalty Pharma PLC, Class A | | | 2,525 | | | | 71 | | |
Viatris, Inc. | | | 6,111 | | | | 71 | | |
| | | | 560 | | |
Professional Services (1.1%) | |
Amentum Holdings, Inc. (a) | | | 123 | | | | 4 | | |
Concentrix Corp. | | | 290 | | | | 15 | | |
Dun & Bradstreet Holdings, Inc. | | | 1,626 | | | | 19 | | |
Genpact Ltd. | | | 475 | | | | 18 | | |
Jacobs Solutions, Inc. | | | 123 | | | | 16 | | |
Science Applications International Corp. | | | 135 | | | | 19 | | |
SS&C Technologies Holdings, Inc. | | | 248 | | | | 18 | | |
| | | | 109 | | |
| | | Shares | | Value
(000) | |
Real Estate Management & Development (0.4%) | |
Jones Lang LaSalle, Inc. (a) | | | 134 | | | $ | 36 | | |
Retail REITs (1.2%) | |
Brixmor Property Group, Inc. REIT | | | 1,459 | | | | 41 | | |
NNN REIT, Inc. | | | 846 | | | | 41 | | |
Simon Property Group, Inc. REIT | | | 239 | | | | 40 | | |
| | | | 122 | | |
Semiconductors & Semiconductor Equipment (3.2%) | |
Amkor Technology, Inc. | | | 1,720 | | | | 53 | | |
GLOBALFOUNDRIES, Inc. (a) | | | 1,340 | | | | 54 | | |
ON Semiconductor Corp. (a) | | | 742 | | | | 54 | | |
Qorvo, Inc. (a) | | | 508 | | | | 52 | | |
QUALCOMM, Inc. | | | 313 | | | | 53 | | |
Skyworks Solutions, Inc. | | | 530 | | | | 52 | | |
| | | | 318 | | |
Software (1.4%) | |
Dropbox, Inc., Class A (a) | | | 880 | | | | 22 | | |
Five9, Inc. (a) | | | 794 | | | | 23 | | |
Gen Digital, Inc. | | | 807 | | | | 22 | | |
RingCentral, Inc., Class A (a) | | | 717 | | | | 23 | | |
Teradata Corp. (a) | | | 750 | | | | 23 | | |
Zoom Video Communications, Inc., Class A (a) | | | 316 | | | | 22 | | |
| | | | 135 | | |
Specialized REITs (1.2%) | |
EPR Properties REIT | | | 821 | | | | 40 | | |
Gaming and Leisure Properties, Inc. REIT | | | 799 | | | | 41 | | |
VICI Properties, Inc. REIT | | | 1,228 | | | | 41 | | |
| | | | 122 | | |
Specialty Retail (1.1%) | |
AutoNation, Inc. (a) | | | 144 | | | | 26 | | |
Bath & Body Works, Inc. | | | 856 | | | | 27 | | |
Gap, Inc. | | | 1,241 | | | | 27 | | |
Penske Automotive Group, Inc. | | | 160 | | | | 26 | | |
| | | | 106 | | |
Tech Hardware, Storage & Peripherals (0.7%) | |
Hewlett Packard Enterprise Co. | | | 1,837 | | | | 37 | | |
HP, Inc. | | | 968 | | | | 35 | | |
| | | | 72 | | |
Textiles, Apparel & Luxury Goods (0.6%) | |
Carter's, Inc. | | | 294 | | | | 19 | | |
PVH Corp. | | | 206 | | | | 21 | | |
Tapestry, Inc. | | | 436 | | | | 20 | | |
| | | | 60 | | |
Trading Companies & Distributors (1.6%) | |
Air Lease Corp. | | | 1,150 | | | | 52 | | |
Core & Main, Inc., Class A (a) | | | 1,173 | | | | 52 | | |
WESCO International, Inc. | | | 308 | | | | 52 | | |
| | | | 156 | | |
Total Common Stocks (Cost $8,879) | | | 9,746 | | |
The accompanying notes are an integral part of the financial statements.
4
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Dynamic Value Portfolio
| | | Shares | | Value
(000) | |
Short-Term Investment (1.8%) | |
Investment Company (1.8%) | |
Morgan Stanley Institutional Liquidity
Funds — Government Portfolio —
Institutional Class, 4.85% (See Note G)
(Cost $182) | | | 181,737 | | | $ | 182 | | |
Total Investments (100.1%) (Cost $9,061) (b) | | | 9,928 | | |
Liabilities in Excess of Other Assets (–0.1%) | | | (9 | ) | |
Net Assets (100.0%) | | $ | 9,919 | | |
(a) Non-income producing security.
(b) At September 30, 2024, the aggregate cost for federal income tax purposes is approximately $9,448,000. The aggregate gross unrealized appreciation is approximately $1,087,000 and the aggregate gross unrealized depreciation is approximately $608,000, resulting in net unrealized appreciation of approximately $479,000.
REIT Real Estate Investment Trust.
Portfolio Composition
Classification | | Percentage of
Total Investments | |
Other* | | | 70.4 | % | |
Banks | | | 6.6 | | |
Health Care Providers & Services | | | 6.1 | | |
Machinery | | | 5.7 | | |
Oil, Gas & Consumable Fuels | | | 5.6 | | |
Pharmaceuticals | | | 5.6 | | |
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.
5
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statement of Assets and Liabilities | | September 30, 2024
(000) | |
Assets: | |
Investments in Securities of Unaffiliated Issuers, at Value (Cost $8,879) | | $ | 9,746 | | |
Investment in Security of Affiliated Issuer, at Value (Cost $182) | | | 182 | | |
Total Investments in Securities, at Value (Cost $9,061) | | | 9,928 | | |
Due from Adviser | | | 42 | | |
Dividends Receivable | | | 11 | | |
Receivable for Fund Shares Sold | | | — | @ | |
Receivable from Affiliate | | | — | @ | |
Other Assets | | | 33 | | |
Total Assets | | | 10,014 | | |
Liabilities: | |
Payable for Professional Fees | | | 69 | | |
Payable for Custodian Fees | | | 6 | | |
Payable for Administration Fees | | | 1 | | |
Payable for Sub Transfer Agency Fees — Class I | | | 1 | | |
Payable for Sub Transfer Agency Fees — Class A | | | — | @ | |
Payable for Sub Transfer Agency Fees — Class C | | | — | @ | |
Payable for Shareholder Services Fees — Class A | | | 1 | | |
Payable for Distribution and Shareholder Services Fees — Class C | | | — | @ | |
Payable for Transfer Agency Fees — Class I | | | — | @ | |
Payable for Transfer Agency Fees — Class A | | | — | @ | |
Payable for Transfer Agency Fees — Class C | | | — | @ | |
Payable for Transfer Agency Fees — Class R6 | | | — | @ | |
Other Liabilities | | | 17 | | |
Total Liabilities | | | 95 | | |
Net Assets | | $ | 9,919 | | |
Net Assets Consist of: | |
Paid-in-Capital | | $ | 1,539 | | |
Total Distributable Earnings | | | 8,380 | | |
Net Assets | | $ | 9,919 | | |
CLASS I: | |
Net Assets | | $ | 6,997 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 578,462 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 12.10 | | |
CLASS A: | |
Net Assets | | $ | 2,589 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 215,531 | | |
Net Asset Value, Redemption Price Per Share | | $ | 12.01 | | |
Maximum Sales Load | | | 5.25 | % | |
Maximum Sales Charge | | $ | 0.67 | | |
Maximum Offering Price Per Share | | $ | 12.68 | | |
CLASS C: | |
Net Assets | | $ | 307 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 25,578 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 12.00 | | |
CLASS R6: | |
Net Assets | | $ | 26 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 2,155 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 12.11 | | |
@ Amount is less than $500.
The accompanying notes are an integral part of the financial statements.
6
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statement of Operations | | Year Ended
September 30, 2024
(000) | |
Investment Income: | |
Dividends from Securities of Unaffiliated Issuers | | $ | 2,593 | | |
Dividends from Security of Affiliated Issuer (Note G) | | | 504 | | |
Total Investment Income | | | 3,097 | | |
Expenses: | |
Advisory Fees (Note B) | | | 389 | | |
Professional Fees | | | 147 | | |
Administration Fees (Note C) | | | 89 | | |
Registration Fees | | | 66 | | |
Custodian Fees (Note F) | | | 27 | | |
Shareholder Reporting Fees | | | 26 | | |
Pricing Fees | | | 14 | | |
Shareholder Services Fees — Class A (Note D) | | | 6 | | |
Distribution and Shareholder Services Fees — Class C (Note D) | | | 3 | | |
Transfer Agency Fees — Class I (Note E) | | | 2 | | |
Transfer Agency Fees — Class A (Note E) | | | 2 | | |
Transfer Agency Fees — Class C (Note E) | | | 2 | | |
Transfer Agency Fees — Class R6 (Note E) | | | 2 | | |
Sub Transfer Agency Fees — Class I | | | 4 | | |
Sub Transfer Agency Fees — Class A | | | 2 | | |
Sub Transfer Agency Fees — Class C | | | — | @ | |
Trustees' Fees and Expenses | | | 4 | | |
Other Expenses | | | 27 | | |
Total Expenses | | | 812 | | |
Waiver of Advisory Fees (Note B) | | | (233 | ) | |
Rebate from Morgan Stanley Affiliate (Note G) | | | (13 | ) | |
Reimbursement of Class Specific Expenses — Class I (Note B) | | | (3 | ) | |
Reimbursement of Class Specific Expenses — Class A (Note B) | | | (1 | ) | |
Reimbursement of Class Specific Expenses — Class C (Note B) | | | (2 | ) | |
Reimbursement of Class Specific Expenses — Class R6 (Note B) | | | (2 | ) | |
Reimbursement of Transfer Agency and Sub Transfer Agency Fees (Note B) | | | (8 | ) | |
Net Expenses | | | 550 | | |
Net Investment Income | | | 2,547 | | |
Realized Gain (Loss): | |
Investments Sold | | | 8,432 | | |
Swap Agreements | | | (724 | ) | |
Net Realized Gain | | | 7,708 | | |
Change in Unrealized Appreciation (Depreciation): | |
Investments | | | 3,492 | | |
Swap Agreements | | | 965 | | |
Net Change in Unrealized Appreciation (Depreciation) | | | 4,457 | | |
Net Realized Gain and Change in Unrealized Appreciation (Depreciation) | | | 12,165 | | |
Net Increase in Net Assets Resulting from Operations | | $ | 14,712 | | |
@ Amount is less than $500.
The accompanying notes are an integral part of the financial statements.
7
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statements of Changes in Net Assets | | Year Ended
September 30, 2024
(000) | | Year Ended
September 30, 2023
(000) | |
Increase (Decrease) in Net Assets: | |
Operations: | |
Net Investment Income | | $ | 2,547 | | | $ | 2,973 | | |
Net Realized Gain (Loss) | | | 7,708 | | | | (3,714 | ) | |
Net Change in Unrealized Appreciation (Depreciation) | | | 4,457 | | | | 15,470 | | |
Net Increase in Net Assets Resulting from Operations | | | 14,712 | | | | 14,729 | | |
Dividends and Distributions to Shareholders: | |
Class I | | | (138 | ) | | | (269 | ) | |
Class A | | | (47 | ) | | | (89 | ) | |
Class C | | | — | | | | (76 | ) | |
Class R6 | | | (2,694 | ) | | | (3,015 | ) | |
Total Dividends and Distributions to Shareholders | | | (2,879 | ) | | | (3,449 | ) | |
Capital Share Transactions:(1) | |
Class I: | |
Subscribed | | | 93 | | | | 2,201 | | |
Distributions Reinvested | | | 138 | | | | 269 | | |
Redeemed | | | (3,669 | ) | | | (3,914 | ) | |
Class A: | |
Subscribed | | | 366 | | | | 3,200 | | |
Distributions Reinvested | | | 47 | | | | 89 | | |
Redeemed | | | (562 | ) | | | (2,328 | ) | |
Class C: | |
Subscribed | | | 72 | | | | 935 | | |
Distributions Reinvested | | | — | | | | 76 | | |
Redeemed | | | (60 | ) | | | (2,639 | ) | |
Class R6: | |
Subscribed | | | — | | | | 7,364 | | |
Distributions Reinvested | | | 2,694 | | | | 3,015 | | |
Redeemed | | | (122,360 | ) | | | (20 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | | | (123,241 | ) | | | 8,248 | | |
Total Increase (Decrease) in Net Assets | | | (111,408 | ) | | | 19,528 | | |
Net Assets: | |
Beginning of Period | | | 121,327 | | | | 101,799 | | |
End of Period | | $ | 9,919 | | | $ | 121,327 | | |
(1) Capital Share Transactions: | |
Class I: | |
Shares Subscribed | | | 8 | | | | 202 | | |
Shares Issued on Distributions Reinvested | | | 13 | | | | 25 | | |
Shares Redeemed | | | (356 | ) | | | (369 | ) | |
Net Decrease in Class I Shares Outstanding | | | (335 | ) | | | (142 | ) | |
Class A: | |
Shares Subscribed | | | 34 | | | | 301 | | |
Shares Issued on Distributions Reinvested | | | 4 | | | | 8 | | |
Shares Redeemed | | | (51 | ) | | | (230 | ) | |
Net Increase (Decrease) in Class A Shares Outstanding | | | (13 | ) | | | 79 | | |
Class C: | |
Shares Subscribed | | | 7 | | | | 92 | | |
Shares Issued on Distributions Reinvested | | | — | | | | 7 | | |
Shares Redeemed | | | (6 | ) | | | (265 | ) | |
Net Increase (Decrease) in Class C Shares Outstanding | | | 1 | | | | (166 | ) | |
Class R6: | |
Shares Subscribed | | | — | | | | 743 | | |
Shares Issued on Distributions Reinvested | | | 252 | | | | 285 | | |
Shares Redeemed | | | (10,886 | ) | | | (2 | ) | |
Net Increase (Decrease) in Class R6 Shares Outstanding | | | (10,634 | ) | | | 1,026 | | |
The accompanying notes are an integral part of the financial statements.
8
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Dynamic Value Portfolio
| | | Class I | |
| | | Year Ended September 30, | | Period from
March 19, 2021(1) to | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | September 30, 2021 | |
Net Asset Value, Beginning of Period | | $ | 10.28 | | | $ | 9.26 | | | $ | 10.44 | | | $ | 10.00 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(2) | | | 0.25 | | | | 0.26 | | | | 0.22 | | | | 0.11 | | |
Net Realized and Unrealized Gain (Loss) | | | 1.81 | | | | 1.07 | | | | (0.94 | ) | | | 0.33 | | |
Total from Investment Operations | | | 2.06 | | | | 1.33 | | | | (0.72 | ) | | | 0.44 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.24 | ) | | | (0.30 | ) | | | (0.17 | ) | | | — | | |
Net Realized Gain | | | — | | | | (0.01 | ) | | | (0.29 | ) | | | — | | |
Total Distributions | | | (0.24 | ) | | | (0.31 | ) | | | (0.46 | ) | | | — | | |
Net Asset Value, End of Period | | $ | 12.10 | | | $ | 10.28 | | | $ | 9.26 | | | $ | 10.44 | | |
Total Return(3) | | | 20.39 | %(4) | | | 14.30 | % | | | (7.26 | )% | | | 4.40 | %(5) | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 6,997 | | | $ | 9,387 | | | $ | 9,763 | | | $ | 10,295 | | |
Ratio of Expenses Before Expense Limitation | | | 0.80 | % | | | 0.82 | % | | | 1.51 | % | | | 6.44 | %(6) | |
Ratio of Expenses After Expense Limitation | | | 0.53 | %(7)(8) | | | 0.54 | %(8) | | | 0.51 | %(8) | | | 0.53 | %(6)(8) | |
Ratio of Net Investment Income | | | 2.25 | %(7)(8) | | | 2.44 | %(8) | | | 2.00 | %(8) | | | 1.95 | %(6)(8) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.00 | %(6)(9) | |
Portfolio Turnover Rate | | | 207 | % | | | 178 | % | | | 125 | % | | | 82 | %(5) | |
(1) Commencement of Operations.
(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) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class I shares.
(5) Not annualized.
(6) Annualized.
(7) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class I shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.54 | % | | | 2.24 | % | |
(8) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(9) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
9
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Dynamic Value Portfolio
| | | Class A | |
| | | Year Ended September 30, | | Period from
March 19, 2021(1) to | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | September 30, 2021 | |
Net Asset Value, Beginning of Period | | $ | 10.21 | | | $ | 9.22 | | | $ | 10.42 | | | $ | 10.00 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(2) | | | 0.21 | | | | 0.22 | | | | 0.19 | | | | 0.10 | | |
Net Realized and Unrealized Gain (Loss) | | | 1.79 | | | | 1.08 | | | | (0.95 | ) | | | 0.32 | | |
Total from Investment Operations | | | 2.00 | | | | 1.30 | | | | (0.76 | ) | | | 0.42 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.20 | ) | | | (0.30 | ) | | | (0.15 | ) | | | — | | |
Net Realized Gain | | | — | | | | (0.01 | ) | | | (0.29 | ) | | | — | | |
Total Distributions | | | (0.20 | ) | | | (0.31 | ) | | | (0.44 | ) | | | — | | |
Net Asset Value, End of Period | | $ | 12.01 | | | $ | 10.21 | | | $ | 9.22 | | | $ | 10.42 | | |
Total Return(3) | | | 19.89 | %(4) | | | 13.96 | % | | | (7.70 | )% | | | 4.20 | %(5) | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 2,589 | | | $ | 2,329 | | | $ | 1,379 | | | $ | 27 | | |
Ratio of Expenses Before Expense Limitation | | | 1.15 | % | | | 1.20 | % | | | 2.18 | % | | | 13.65 | %(6) | |
Ratio of Expenses After Expense Limitation | | | 0.88 | %(7)(8) | | | 0.89 | %(8) | | | 0.89 | %(8) | | | 0.90 | %(6)(8) | |
Ratio of Net Investment Income | | | 1.90 | %(7)(8) | | | 2.09 | %(8) | | | 1.81 | %(8) | | | 1.84 | %(6)(8) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.00 | %(6)(9) | |
Portfolio Turnover Rate | | | 207 | % | | | 178 | % | | | 125 | % | | | 82 | %(5) | |
(1) Commencement of Operations.
(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) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class A shares.
(5) Not annualized.
(6) Annualized.
(7) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class A shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.89 | % | | | 1.89 | % | |
(8) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(9) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
10
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Dynamic Value Portfolio
| | | Class C | |
| | | Year Ended September 30, | | Period from
March 19, 2021(1) to | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | September 30, 2021 | |
Net Asset Value, Beginning of Period | | $ | 10.08 | | | $ | 9.14 | | | $ | 10.38 | | | $ | 10.00 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(2) | | | 0.13 | | | | 0.14 | | | | 0.11 | | | | 0.06 | | |
Net Realized and Unrealized Gain (Loss) | | | 1.79 | | | | 1.09 | | | | (0.93 | ) | | | 0.32 | | |
Total from Investment Operations | | | 1.92 | | | | 1.23 | | | | (0.82 | ) | | | 0.38 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | — | | | | (0.28 | ) | | | (0.13 | ) | | | — | | |
Net Realized Gain | | | — | | | | (0.01 | ) | | | (0.29 | ) | | | — | | |
Total Distributions | | | — | | | | (0.29 | ) | | | (0.42 | ) | | | — | | |
Net Asset Value, End of Period | | $ | 12.00 | | | $ | 10.08 | | | $ | 9.14 | | | $ | 10.38 | | |
Total Return(3) | | | 19.05 | %(4) | | | 13.31 | % | | | (8.32 | )% | | | 3.80 | %(5) | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 307 | | | $ | 247 | | | $ | 1,736 | | | $ | 34 | | |
Ratio of Expenses Before Expense Limitation | | | 2.58 | % | | | 2.02 | % | | | 2.77 | % | | | 15.35 | %(6) | |
Ratio of Expenses After Expense Limitation | | | 1.63 | %(7)(8) | | | 1.64 | %(8) | | | 1.64 | %(8) | | | 1.65 | %(6)(8) | |
Ratio of Net Investment Income | | | 1.15 | %(7)(8) | | | 1.34 | %(8) | | | 1.06 | %(8) | | | 1.04 | %(6)(8) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.00 | %(6)(9) | |
Portfolio Turnover Rate | | | 207 | % | | | 178 | % | | | 125 | % | | | 82 | %(5) | |
(1) Commencement of Operations.
(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) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class C shares.
(5) Not annualized.
(6) Annualized.
(7) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class C shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 1.64 | % | | | 1.14 | % | |
(8) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(9) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
11
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Dynamic Value Portfolio
| | | Class R6(1) | |
| | | Year Ended September 30, | | Period from
March 19, 2021(2) to | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | September 30, 2021 | |
Net Asset Value, Beginning of Period | | $ | 10.28 | | | $ | 9.25 | | | $ | 10.44 | | | $ | 10.00 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(3) | | | 0.26 | | | | 0.26 | | | | 0.29 | | | | 0.11 | | |
Net Realized and Unrealized Gain (Loss) | | | 1.82 | | | | 1.09 | | | | (1.02 | ) | | | 0.33 | | |
Total from Investment Operations | | | 2.08 | | | | 1.35 | | | | (0.73 | ) | | | 0.44 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.25 | ) | | | (0.31 | ) | | | (0.17 | ) | | | — | | |
Net Realized Gain | | | — | | | | (0.01 | ) | | | (0.29 | ) | | | — | | |
Total Distributions | | | (0.25 | ) | | | (0.32 | ) | | | (0.46 | ) | | | — | | |
Net Asset Value, End of Period | | $ | 12.11 | | | $ | 10.28 | | | $ | 9.25 | | | $ | 10.44 | | |
Total Return(4) | | | 20.60 | %(5) | | | 14.43 | % | | | (7.35 | )% | | | 4.40 | %(6) | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 26 | | | $ | 109,364 | | | $ | 88,921 | | | $ | 10 | | |
Ratio of Expenses Before Expense Limitation | | | 0.71 | % | | | 0.75 | % | | | 1.49 | % | | | 25.05 | %(7) | |
Ratio of Expenses After Expense Limitation | | | 0.48 | %(8)(9) | | | 0.49 | %(9) | | | 0.49 | %(9) | | | 0.50 | %(7)(9) | |
Ratio of Net Investment Income | | | 2.31 | %(8)(9) | | | 2.49 | %(9) | | | 2.85 | %(9) | | | 1.98 | %(7)(9) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.00 | %(7)(10) | |
Portfolio Turnover Rate | | | 207 | % | | | 178 | % | | | 125 | % | | | 82 | %(6) | |
(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.
(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) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class R6 shares.
(6) Not annualized.
(7) Annualized.
(8) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class R6 shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.49 | % | | | 2.30 | % | |
(9) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(10) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
12
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements
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 six separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). All Funds are considered diversified for purposes of the Act.
The Trust applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the Fund's Statement of Assets and Liabilities through the date that the financial statements were issued.
The accompanying financial statements relate to the Dynamic Value Portfolio. The Fund seeks capital appreciation. The Fund has issued four classes of shares — Class I, Class A, Class C and Class R6.
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. If only bid prices are available then the latest bid price may be used. 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/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-thecounter ("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/dealers; (3) fixed income 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. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or the pricing service/vendor or exchange is unable to provide a price, prices from reputable brokers/dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from reputable brokers/dealers; (4) OTC swaps may be valued by an outside pricing service approved by the Trustees or quotes from a reputable broker/dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange. Total return swaps may also be fair valued using direct accrual/return calculations if prices on the reference asset on the total return leg of the swap are available from a pricing service/vendor for such instrument. In the event that the reference asset on the total return leg of the swap is a benchmark index, then price of such reference asset may be obtained from a pricing service provider or from the benchmark index sponsor; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Trustees. Each business day, the Fund uses a third-party pricing service approved by the Trustees to assist with the valuation of foreign equity securities. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued
13
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
securities to more accurately reflect their fair value as of the close of regular trading on 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.
In connection with Rule 2a-5 of the Act, the Trustees have designated the Trust's Adviser as its valuation designee. The valuation designee has responsibility for 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, as valuation designee, 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.
2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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 September 30, 2024:
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 | | $ | 9,746 | (1) | | $ | — | | | $ | — | | | $ | 9,746 | | |
Short-Term Investment | |
Investment Company | | | 182 | | | | — | | | | — | | | | 182 | | |
Total Assets | | $ | 9,928 | | | $ | — | | | $ | — | | | $ | 9,928 | | |
(1) The level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.
Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.
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
14
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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:
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 counterparty or clearing-house based on changes in the value of the contract or variation margin, respectively. 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 based on the type of market participant and U.S. Commodities Futures Trading Commission ("CFTC") approval of contracts for central clearing and exchange trading.
The Fund may enter into total return swaps in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include, but not be limited to, a specified security, basket of securities or securities indices during the specified period, in return for periodic payments based on a fixed or variable interest rate or the total return from other underlying assets. Total return swaps may be used to obtain long or short exposure to a security or market without owning or taking physical custody of such security or investing directly in such market. Total return swaps may effectively add leverage to the Fund's portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap. Total return swaps are subject to the risk that a counterparty will default on its payment obligations to the Fund thereunder, and conversely, that the Fund will not be able to meet its obligation to the counterparty.
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.
15
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
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. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreement in the the Statement Operations, in addition to any realized gains (loss) recorded upon the termination of swap agreements.
As of September 30, 2024, the Fund did not have any open swap agreements.
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 by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the year ended September 30, 2024 in accordance with ASC 815:
Realized Gain (Loss) | |
Primary Risk Exposure | | Derivative Type | | Value
(000) | |
Equity Risk | | Swap Agreements | | $ | (724 | ) | |
Change in Unrealized Appreciation (Depreciation) | |
Primary Risk Exposure | | Derivative Type | | Value
(000) | |
Equity Risk | | Swap Agreements | | $ | 965 | | |
For the year ended September 30, 2024, the approximate average monthly amount outstanding for each derivative type is as follows:
Swap Agreements: | |
Average monthly notional amount | | $ | 30,688,000 | | |
4. Indemnifications: The Trust enters into contracts that contain a variety of indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
5. Dividends and Distributions to Shareholders: Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually.
6. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. 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, co-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 0.35% of the daily net assets of the Fund.
The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.55% for Class I shares, 0.90% for Class A shares, 1.65% for Class C shares and 0.50% for Class R6 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 year ended September 30, 2024,
16
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
approximately $233,000 of advisory fees were waived and approximately $8,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.
The Adviser agreed to reimburse the Fund for prior years overpayment of transfer agency and sub transfer agency fees. This was reflected as "Reimbursement of Transfer Agency and Sub Transfer Agency Fees" in the Statement of Operations.
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 distribution-related and/or shareholder support services to investors who purchase Class A and Class C shares.
E. Dividend Disbursing and Transfer/Co-Transfer Agent: The Trust's dividend disbursing and transfer agent is SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS"). Pursuant to a Transfer Agency Agreement, the Trust
pays SS&C GIDS a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.
Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended September 30, 2024, co-transfer agency fees and expenses incurred to EVM, included in "Transfer Agency Fees" in the Statement of Operations, amounted to less than $500.
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 year ended September 30, 2024, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $218,936,000 and $214,194,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended September 30, 2024.
The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Fund"), 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 Fund. For the year ended September 30, 2024, advisory fees paid were reduced by approximately $13,000 relating to the Fund's investment in the Liquidity Fund.
A summary of the Fund's transactions in shares of affiliated investments during the year ended September 30, 2024 is as follows:
Affiliated
Investment
Company | | Value
September 30,
2023
(000) | | Purchases
at Cost
(000) | | Proceeds
from Sales
(000) | | Dividend
Income
(000) | |
Liquidity Fund | | $ | 6,500 | | | $ | 395,778 | | | $ | 402,096 | | | $ | 504 | | |
Affiliated
Investment
Company (cont'd) | | Realized
Gain
(Loss)
(000) | | Change in
Unrealized
Appreciation
(Depreciation)
(000) | | Value
September 30,
2024
(000) | |
Liquidity Fund | | $ | — | | | $ | — | | | $ | 182 | | |
17
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the Trustees in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the year ended September 30, 2024, the Fund did not engage in any cross-trade transactions.
Each Trustee receives an annual retainer fee for serving as a Trustee of the Morgan Stanley Funds. The aggregate compensation paid to each Trustee is paid by the Morgan Stanley Funds, and is allocated on a pro rata basis among each of the operational funds of the Morgan Stanley Funds based on the relative net assets of each of the funds. The fund also reimburses such Trustees for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings.
The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.
H. Federal Income Taxes: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for federal income taxes is required in the financial statements.
The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.
FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax
return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended September 30, 2024, remains subject to examination by taxing authorities.
The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2024 and 2023 was as follows:
2024
Distributions
Paid From: | | 2023
Distributions
Paid From: | |
Ordinary
Income
(000) | | Ordinary
Income
(000) | | Long-Term
Capital Gain
(000) | |
| $ | 2,879 | | | $ | 3,400 | | | $ | 49 | | |
The amount and character of income and gains to be distributed are determined in accordance with income tax regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.
Temporary differences are attributable to differing book and tax treatments for the timing of the recognition of gains (losses) on certain investment transactions and the timing of the deductibility of certain expenses.
Permanent differences, due to equalization debits and tax adjustments related to redemptions in kind, resulted in the following reclassifications among the components of net assets at September 30, 2024:
Total
Distributable
Earnings
(000) | | Paid-in-
Capital
(000) | |
| $ | 2,980 | | | $ | (2,980 | ) | |
At September 30, 2024, 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) | |
| $ | 7,365 | | | $ | 561 | | |
During the year ended September 30, 2024, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $837,000.
18
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $500,000,000 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 for any funds drawn will be based on the federal funds rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility, which is allocated among participating funds based on relative net assets. During the year ended September 30, 2024, the Fund did not have any borrowings under the Facility.
J. Other: At September 30, 2024, 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 92.4%.
K. Market Risk: The value of an investment in the Fund is based on the values of the Fund's investments, which change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events adversely interrupt the global economy and financial markets. Securities in the Fund's portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters and extreme weather events, health emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years, such as terrorist attacks around the world, natural disasters, health emergencies, social and political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. The occurrence of such events may be sudden and unexpected, and it is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). Any such event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund's portfolio, as well as its ability to sell securities and/or meet redemptions. Any such event(s) or similar types of factors and developments may also adversely affect the financial performance of the Fund's investments (and, in turn, the Fund's investment results) and/or
negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments, and exacerbate preexisting risks to the Fund.
L. Redemptions in-kind: On the date listed below, the Fund recorded a redemption in-kind of portfolio securities and cash. The redeeming shareholder generally receives a pro rata share of the securities held by the Fund. The distribution of such securities generated a realized loss for the Fund, which is included in Net Realized Gains (Loss) in the Statement of Operations. For tax purposes, no gains or losses were recognized with respect to the portfolio securities redeemed in-kind.
Redemption
In-Kind Date | | Portfolio Securities
and Cash | | Net Realized
Gain (Loss) | |
| August 5, 2024 | | $ | 122,359,254 | | | $ | (2,597,279 | ) | |
19
Morgan Stanley Institutional Fund Trust
September 30, 2024
Report of Independent Registered Public Accounting Firm
To the Shareholders of Dynamic Value Portfolio and the
Board of Trustees of Morgan Stanley Institutional Fund Trust
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Dynamic Value Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund Trust (the "Trust")), including the portfolio of investments, as of September 30, 2024, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the three years in the period then ended and the period from March 19, 2021 (commencement of operations) through September 20, 2021 and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund Trust) at September 30, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the three years in the period then ended and the period from March 19, 2021 (commencement of operations) through September 20, 2021, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Morgan Stanley investment companies since 2000.
Boston, Massachusetts
November 26, 2024
20
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited)
Nature, Extent and Quality of Services
The Board reviewed and considered the nature and extent of the investment advisory services provided by the Adviser under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services provided by the Administrator under the administration agreement, including accounting, operations, clerical, bookkeeping, compliance, business management and planning, legal services and the provision of supplies, office space and utilities at the Adviser's expense. The Board also considered the Adviser's investment in personnel and infrastructure that benefits the Fund. (The Adviser and Administrator together are referred to as the "Adviser" and the advisory and administration agreements together are referred to as the "Management Agreement.") The Board also considered that the Adviser serves a variety of other investment advisory clients and has experience overseeing service providers. The Board also compared the nature of the services provided by the Adviser with similar services provided by non-affiliated advisers as prepared by Broadridge Financial Solutions, Inc. ("Broadridge").
The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who provide the advisory and administrative services to the Fund. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services provided were necessary and appropriate for the conduct of the business and investment activities of the Fund and supported its decision to approve the Management Agreement.
Performance, Fees and Expenses of the Fund
The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2023, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the period since its inception in March 2021 but below its peer group average for the one-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. The Board noted that the Fund's management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Fund's (i) performance was acceptable and (ii) management fee and total expense ratio were competitive with its peer group averages.
Economies of Scale
The Board considered the size and growth prospects of the Fund and how that relates to the Fund's total expense ratio and particularly the Fund's management fee rate, which does not include breakpoints. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Fund and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and/or potential economies of scale of the Fund supports its decision to approve the Management Agreement.
Profitability of the Adviser and Affiliates
The Board considered information concerning the costs incurred and profits realized by the Adviser and its affiliates during the last year from their relationship with the Fund and during the last two years from their relationship with the Morgan Stanley Fund Complex and reviewed with the Adviser the cost allocation methodology used to determine the profitability of the Adviser and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.
21
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited) (cont'd)
Other Benefits of the Relationship
The Board considered other direct and indirect benefits to the Adviser and/or its affiliates derived from their relationship with the Fund and other funds advised by the Adviser. These benefits may include, among other things, fees for trading, distribution and/or shareholder servicing and for transaction processing and reporting platforms used by securities lending agents, and research received by the Adviser generated from commission dollars spent on funds' portfolio trading. The Board reviewed with the Adviser these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.
Resources of the Adviser and Historical Relationship Between the Fund and the Adviser
The Board considered whether the Adviser is financially sound and has the resources necessary to perform its obligations under the Management Agreement. The Board also reviewed and considered the historical relationship between the Fund and the Adviser, including the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Fund's operations and the Board's confidence in the competence and integrity of the senior managers and key personnel of the Adviser. The Board concluded that the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Fund to continue its relationship with the Adviser.
Other Factors and Current Trends
The Board considered the controls and procedures adopted and implemented by the Adviser and monitored by the Fund's Chief Compliance Officer and concluded that the conduct of business by the Adviser indicates a good faith effort on its part to adhere to high ethical standards in the conduct of the Fund's business.
General Conclusion
After considering and weighing all of the above factors, with various written materials and verbal information presented by the Adviser, the Board concluded that it would be in the best interest of the Fund and its shareholders to approve renewal of the Management Agreement for another year. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. The Board considered these factors and information over the course of the year and in numerous meetings, some of which were in executive session with only the independent Board members and their counsel present. It is possible that individual Board members may have weighed these factors, and the information presented, differently in reaching their individual decisions to approve the Management Agreement.
22
Morgan Stanley Institutional Fund Trust
September 30, 2024
Federal Tax Notice (unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended September 30, 2024. For corporate shareholders 36.14% of the dividends qualified for the dividends received deduction.
The Fund designated and paid approximately $1,254,000 as a long-term capital gain distribution.
The Fund designated approximately $120,000 of its distributions paid as qualified business income.
For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended September 30, 2024. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $1,051,000 as taxable at this lower rate.
In January, the Fund provides tax information to shareholders for the preceding calendar year.
23
Morgan Stanley Investment Management Inc.
1585 Broadway
New York, New York 10036
© 2024 Morgan Stanley. Morgan Stanley Distribution, Inc.
Morgan Stanley Institutional Fund Trust
Global Strategist Portfolio
Annual Financial Statements and Additional Information
September 30, 2024
Morgan Stanley Institutional Fund Trust
September 30, 2024
Table of Contents (unaudited)
Consolidated Portfolio of Investments | | | 2 | | |
Consolidated Statement of Assets and Liabilities | | | 31 | | |
Consolidated Statement of Operations | | | 33 | | |
Consolidated Statements of Changes in Net Assets | | | 34 | | |
Consolidated Financial Highlights | | | 36 | | |
Notes to Consolidated Financial Statements | | | 41 | | |
Report of Independent Registered Public Accounting Firm | | | 54 | | |
Investment Advisory Agreement Approval | | | 55 | | |
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) 869-6397. Please read the prospectuses carefully before you invest or send money.
Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.
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
September 30, 2024
Consolidated Portfolio of Investments
Global Strategist Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Fixed Income Securities (40.1%) | |
Agency Fixed Rate Mortgages (4.1%) | |
United States (4.1%) | |
Federal Home Loan Mortgage Corporation, | |
Conventional Pools: | |
2.00%, 5/1/51 | | $ | 1,251 | | | $ | 1,012 | | |
2.50%, 4/1/52 | | | 2,423 | | | | 2,049 | | |
4.50%, 1/1/49 | | | 57 | | | | 57 | | |
Gold Pools: | |
3.50%, 1/1/44 - 6/1/45 | | | 422 | | | | 401 | | |
4.50%, 1/1/49 | | | 15 | | | | 15 | | |
6.50%, 5/1/32 | | | 18 | | | | 19 | | |
7.50%, 5/1/35 | | | 1 | | | | 1 | | |
Federal National Mortgage Association, | |
Conventional Pools: | |
2.00%, 3/1/52 | | | 1,738 | | | | 1,440 | | |
2.50%, 9/1/52 | | | 2,746 | | | | 2,372 | | |
3.00%, 7/1/49 - 6/1/52 | | | 4,675 | | | | 4,225 | | |
3.50%, 3/1/47 - 1/1/51 | | | 906 | | | | 852 | | |
4.00%, 4/1/45 - 9/1/45 | | | 471 | | | | 460 | | |
4.50%, 3/1/41 - 11/1/44 | | | 71 | | | | 71 | | |
5.00%, 1/1/41 - 3/1/41 | | | 178 | | | | 183 | | |
6.00%, 1/1/38 | | | 1 | | | | 2 | | |
6.50%, 12/1/29 | | | 3 | | | | 3 | | |
7.50%, 8/1/37 | | | 2 | | | | 2 | | |
October TBA: | |
3.00%, 10/1/54 (a) | | | 300 | | | | 269 | | |
3.50%, 10/1/54 (a) | | | 960 | | | | 895 | | |
4.00%, 10/1/54 (a) | | | 1,000 | | | | 961 | | |
4.50%, 10/1/54 (a) | | | 1,120 | | | | 1,101 | | |
5.00%, 10/1/54 (a) | | | 2,860 | | | | 2,858 | | |
5.50%, 10/1/54 (a) | | | 3,700 | | | | 3,744 | | |
6.00%, 10/1/54 (a) | | | 2,030 | | | | 2,075 | | |
Government National Mortgage Association, | |
Various Pools: | |
4.00%, 8/20/41 - 11/20/42 | | | 110 | | | | 108 | | |
4.50%, 6/20/49 | | | 22 | | | | 21 | | |
5.00%, 2/20/49 - 6/20/49 | | | 58 | | | | 58 | | |
5.50%, 8/15/39 | | | 14 | | | | 15 | | |
| | | | 25,269 | | |
Asset-Backed Securities (0.6%) | |
United States (0.6%) | |
ACM Auto Trust, Class A | |
7.97%, 6/20/30 (b) | | | 248 | | | | 249 | | |
HGI CRE CLO Ltd., | |
1 Month Term SOFR + 1.11%,
6.21%, 9/17/36 (b)(c) | | | 243 | | | | 243 | | |
Renaissance Home Equity Loan Trust, | |
1 Month Term SOFR + 0.87%,
5.73%, 12/25/32 (c) | | | 439 | | | | 411 | | |
Retained Vantage Data Centers Issuer LLC,
Class A2A | |
5.00%, 9/15/48 (b) | | | 700 | | | | 698 | | |
| | | Face
Amount
(000) | | Value
(000) | |
SASCO Mortgage Loan Trust, | |
1 Month Term SOFR + 2.29%,
4.77%, 5/25/34 (c) | | $ | 22 | | | $ | 22 | | |
SLM Student Loan Trust, | |
3 Month EURIBOR + 0.55%,
4.24%, 7/25/39 (c) | | EUR | 229 | | | | 237 | | |
STAR Trust, Class A | |
1 Month Term SOFR + 1.75%,
6.71%, 10/17/41 (b)(c) | | $ | 800 | | | | 802 | | |
VINE Trust, Class A | |
4.75%, 12/17/40 (b) | | | 990 | | | | 976 | | |
| | | | 3,638 | | |
Commercial Mortgage-Backed Securities (0.8%) | |
Germany (0.0%)‡ | |
Berg Finance DAC, | |
3 Month EURIBOR + 1.05%,
4.74%, 4/22/33 (c) | | EUR | 75 | | | | 82 | | |
United States (0.8%) | |
Ashford Hospitality Trust, | |
1 Month Term SOFR + 2.15%,
7.24%, 6/15/35 (b)(c) | | $ | 250 | | | | 248 | | |
BAMLL Trust, | |
1 Month Term SOFR + 2.35%,
7.45%, 8/15/39 (b)(c) | | | 560 | | | | 564 | | |
| BPR Trust, | |
1 Month Term SOFR + 1.90%,
6.99%, 4/15/37 (b)(c) | | | 1,000 | | | | 1,006 | | |
1 Month Term SOFR + 3.00%,
8.10%, 5/15/39 (b)(c) | | | 400 | | | | 402 | | |
Commercial Mortgage Trust, | |
4.91%, 7/15/47 (b)(c) | | | 24 | | | | 23 | | |
GS Mortgage Securities Corp. Trust, | |
1 Month Term SOFR + 1.79%,
6.89%, 6/15/34 (b)(c) | | | 700 | | | | 701 | | |
JW Commercial Mortgage Trust, | |
1 Month Term SOFR + 1.62%,
6.70%, 6/15/39 (b)(c) | | | 600 | | | | 601 | | |
Life Mortgage Trust, | |
1 Month Term SOFR + 1.30%,
6.39%, 5/15/39 (b)(c) | | | 500 | | | | 488 | | |
Taubman Centers Commercial
Mortgage Trust, | |
1 Month Term SOFR + 2.19%,
7.28%, 5/15/37 (b)(c) | | | 1,000 | | | | 1,005 | | |
| | | | 5,038 | | |
| | | | 5,120 | | |
Corporate Bonds (8.5%) | |
Australia (0.4%) | |
Australia & New Zealand Banking
Group Ltd., | |
2.57%, 11/25/35 (b) | | | 600 | | | | 521 | | |
Commonwealth Bank of Australia, | |
1.94%, 10/3/29 | | EUR | 400 | | | | 445 | | |
The accompanying notes are an integral part of the consolidated financial statements.
2
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Australia (cont'd) | |
NBN Co. Ltd., | |
2.63%, 5/5/31 (b) | | $ | 575 | | | $ | 513 | | |
Transurban Finance Co. Pty. Ltd., | |
2.00%, 8/28/25 | | EUR | 350 | | | | 385 | | |
Westpac Banking Corp., | |
2.67%, 11/15/35 | | $ | 650 | | | | 568 | | |
| | | | 2,432 | | |
Brazil (0.1%) | |
JBS USA LUX SA/JBS USA Food Co./
JBS USA Finance, Inc., | |
2.50%, 1/15/27 | | | 350 | | | | 335 | | |
Canada (0.5%) | |
Algonquin Power & Utilities Corp., | |
5.37%, 6/15/26 (d) | | | 275 | | | | 278 | | |
Province of Ontario Canada, | |
4.10%, 3/4/33 | | CAD | 1,300 | | | | 1,005 | | |
Province of Quebec Canada, | |
0.00%, 10/29/30 | | EUR | 1,390 | | | | 1,325 | | |
Rogers Communications, Inc., | |
3.80%, 3/15/32 | | $ | 475 | | | | 441 | | |
| | | | 3,049 | | |
China (0.1%) | |
Alibaba Group Holding Ltd., | |
2.13%, 2/9/31 | | | 400 | | | | 350 | | |
Denmark (0.1%) | |
Realkredit Danmark AS, | |
Series CCS | |
4.00%, 10/1/56 | | DKK | 3,500 | | | | 523 | | |
France (0.9%) | |
AXA SA, | |
3.25%, 5/28/49 | | EUR | 400 | | | | 441 | | |
Banque Federative du Credit Mutuel SA, | |
0.75%, 7/17/25 | | | 400 | | | | 437 | | |
1.25%, 12/5/25 | | GBP | 400 | | | | 513 | | |
3.75%, 2/1/33 | | EUR | 600 | | | | 692 | | |
BNP Paribas SA, | |
1.13%, 6/11/26 | | | 485 | | | | 524 | | |
1.25%, 7/13/31 | | GBP | 200 | | | | 210 | | |
4.38%, 1/13/29 | | EUR | 400 | | | | 463 | | |
| BPCE SA, | |
4.00%, 11/29/32 | | | 400 | | | | 469 | | |
5.75%, 6/1/33 | | | 500 | | | | 595 | | |
Credit Agricole SA, | |
3.88%, 4/20/31 | | | 700 | | | | 815 | | |
Orange SA, | |
5.00%, 10/1/26 (e) | | | 250 | | | | 285 | | |
| | | | 5,444 | | |
Germany (0.7%) | |
Allianz SE, | |
2.12%, 7/8/50 | | | 100 | | | | 103 | | |
| | | Face
Amount
(000) | | Value
(000) | |
Kreditanstalt fuer Wiederaufbau, | |
0.38%, 4/23/30 | | EUR | 2,290 | | | $ | 2,289 | | |
RWE AG, | |
3.63%, 1/10/32 | | | 590 | | | | 670 | | |
Volkswagen International Finance NV, | |
Series 10Y
1.88%, 3/30/27 | | | 1,100 | | | | 1,185 | | |
| | | | 4,247 | | |
Ireland (0.0%)‡ | |
AIB Group PLC, | |
5.87%, 3/28/35 (b) | | $ | 300 | | | | 316 | | |
Italy (0.1%) | |
Generali, | |
5.50%, 10/27/47 | | EUR | 400 | | | | 471 | | |
Korea, Republic of (0.1%) | |
Korea Southern Power Co. Ltd., | |
0.75%, 1/27/26 (b) | | $ | 730 | | | | 697 | | |
Luxembourg (0.1%) | |
Blackstone Property Partners Europe
Holdings SARL, | |
1.25%, 4/26/27 | | EUR | 400 | | | | 422 | | |
Logicor Financing SARL, | |
1.50%, 7/13/26 | | | 300 | | | | 324 | | |
| | | | 746 | | |
Macau (0.0%)‡ | |
Las Vegas Sands Corp., | |
6.00%, 8/15/29 | | $ | 169 | | | | 176 | | |
Netherlands (0.0%)‡ | |
Alliander NV, | |
4.50%, 3/27/32 (e) | | EUR | 120 | | | | 138 | | |
Spain (0.2%) | |
Banco Santander SA, | |
3.13%, 1/19/27 | | | 400 | | | | 447 | | |
5.18%, 11/19/25 | | $ | 800 | | | | 801 | | |
| | | | 1,248 | | |
Sweden (0.1%) | |
Akelius Residential Property Financing BV, | |
1.13%, 1/11/29 | | EUR | 400 | | | | 400 | | |
United Arab Emirates (0.1%) | |
Galaxy Pipeline Assets Bidco Ltd., | |
2.63%, 3/31/36 (b) | | $ | 650 | | | | 556 | | |
United Kingdom (0.5%) | |
BAT Capital Corp., | |
3.56%, 8/15/27 | | | 903 | | | | 885 | | |
HSBC Holdings PLC, | |
2.26%, 11/13/26 | | GBP | 300 | | | | 389 | | |
2.63%, 11/7/25 | | $ | 525 | | | | 523 | | |
5.73%, 5/17/32 | | | 300 | | | | 316 | | |
Lloyds Banking Group PLC, | |
2.25%, 10/16/24 | | GBP | 400 | | | | 534 | | |
The accompanying notes are an integral part of the consolidated financial statements.
3
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
United Kingdom (cont'd) | |
National Grid Electricity Distribution
West Midlands PLC, | |
5.75%, 4/16/32 | | GBP | 200 | | | $ | 276 | | |
NGG Finance PLC, | |
5.63%, 6/18/73 | | | 350 | | | | 468 | | |
| | | | 3,391 | | |
United States (4.5%) | |
Air Lease Corp., | |
3.13%, 12/1/30 | | $ | 200 | | | | 183 | | |
Amazon.com, Inc., | |
3.88%, 8/22/37 | | | 325 | | | | 306 | | |
Aon North America, Inc., | |
5.45%, 3/1/34 | | | 675 | | | | 709 | | |
AT&T, Inc., | |
1.80%, 9/5/26 | | EUR | 400 | | | | 437 | | |
2.90%, 12/4/26 | | GBP | 350 | | | | 451 | | |
3.65%, 6/1/51 | | $ | 625 | | | | 480 | | |
Bank of America Corp., | |
5.87%, 9/15/34 | | | 1,200 | | | | 1,295 | | |
Bank of New York Mellon Corp., | |
MTN | |
5.19%, 3/14/35 | | | 550 | | | | 571 | | |
Boeing Co., | |
5.81%, 5/1/50 | | | 375 | | | | 363 | | |
6.26%, 5/1/27 (b) | | | 100 | | | | 103 | | |
6.30%, 5/1/29 (b) | | | 200 | | | | 211 | | |
Bristol-Myers Squibb Co., | |
5.65%, 2/22/64 | | | 200 | | | | 212 | | |
Celanese U.S. Holdings LLC, | |
6.17%, 7/15/27 | | | 950 | | | | 985 | | |
Centene Corp., | |
2.50%, 3/1/31 | | | 1,050 | | | | 903 | | |
Charles Schwab Corp., | |
5.85%, 5/19/34 | | | 710 | | | | 761 | | |
Charter Communications Operating
LLC/Charter Communications
Operating Capital, | |
4.80%, 3/1/50 | | | 500 | | | | 383 | | |
6.38%, 10/23/35 | | | 200 | | | | 204 | | |
Chubb INA Holdings LLC, | |
0.88%, 6/15/27 | | EUR | 400 | | | | 423 | | |
Citigroup, Inc., | |
3.79%, 3/17/33 | | $ | 1,300 | | | | 1,218 | | |
Comcast Corp., | |
2.89%, 11/1/51 | | | 325 | | | | 219 | | |
3.75%, 4/1/40 | | | 400 | | | | 346 | | |
Enterprise Products Operating LLC, | |
3.95%, 1/31/60 | | | 275 | | | | 216 | | |
4.95%, 2/15/35 | | | 175 | | | | 178 | | |
Georgia-Pacific LLC, | |
2.30%, 4/30/30 (b) | | | 950 | | | | 858 | | |
| | | Face
Amount
(000) | | Value
(000) | |
Global Payments, Inc., | |
4.45%, 6/1/28 | | $ | 625 | | | $ | 623 | | |
Goldman Sachs Group, Inc., | |
0.75%, 3/23/32 | | EUR | 620 | | | | 577 | | |
5.85%, 4/25/35 | | $ | 525 | | | | 564 | | |
Home Depot, Inc., | |
4.95%, 6/25/34 | | | 375 | | | | 390 | | |
Jersey Central Power & Light Co., | |
2.75%, 3/1/32 (b) | | | 975 | | | | 854 | | |
JPMorgan Chase & Co., | |
5.04%, 1/23/28 | | | 625 | | | | 636 | | |
6.25%, 10/23/34 | | | 1,450 | | | | 1,613 | | |
Las Vegas Sands Corp., | |
5.90%, 6/1/27 | | | 275 | | | | 282 | | |
Medtronic Global Holdings SCA, | |
1.00%, 7/2/31 | | EUR | 250 | | | | 246 | | |
Metropolitan Life Global Funding I, | |
2.95%, 4/9/30 (b) | | $ | 575 | | | | 536 | | |
NextEra Energy Capital Holdings, Inc., | |
2.75%, 11/1/29 | | | 1,225 | | | | 1,143 | | |
Nuveen LLC, | |
5.55%, 1/15/30 (b) | | | 375 | | | | 393 | | |
ONEOK, Inc., | |
5.05%, 11/1/34 | | | 175 | | | | 174 | | |
6.05%, 9/1/33 | | | 450 | | | | 481 | | |
Oracle Corp., | |
2.88%, 3/25/31 | | | 1,150 | | | | 1,047 | | |
Pfizer Investment Enterprises Pte. Ltd., | |
5.34%, 5/19/63 | | | 250 | | | | 257 | | |
PNC Financial Services Group, Inc., | |
6.88%, 10/20/34 | | | 925 | | | | 1,060 | | |
Prologis Euro Finance LLC, | |
1.88%, 1/5/29 | | EUR | 300 | | | | 319 | | |
Republic Services, Inc., | |
5.00%, 4/1/34 | | $ | 275 | | | | 283 | | |
Thermo Fisher Scientific Finance I BV, | |
2.00%, 10/18/51 | | EUR | 100 | | | | 79 | | |
Thermo Fisher Scientific, Inc., | |
0.88%, 10/1/31 | | | 650 | | | | 632 | | |
1.88%, 10/1/49 | | | 100 | | | | 78 | | |
U.S. Bancorp, | |
5.84%, 6/12/34 | | $ | 462 | | | | 493 | | |
Upjohn Finance BV, | |
1.91%, 6/23/32 | | EUR | 550 | | | | 535 | | |
Verizon Communications, Inc., | |
1.13%, 11/3/28 | | GBP | 300 | | | | 352 | | |
2.55%, 3/21/31 | | $ | 625 | | | | 558 | | |
Vontier Corp., | |
2.40%, 4/1/28 | | | 250 | | | | 230 | | |
Warnermedia Holdings, Inc., | |
5.14%, 3/15/52 | | | 100 | | | | 77 | | |
The accompanying notes are an integral part of the consolidated financial statements.
4
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
United States (cont'd) | |
Wells Fargo & Co., | |
MTN | |
2.88%, 10/30/30 | | $ | 350 | | | $ | 325 | | |
Williams Cos., Inc., | |
4.85%, 3/1/48 | | | 550 | | | | 503 | | |
| | | | 27,355 | | |
| | | | 51,874 | | |
Mortgages — Other (1.3%) | |
Netherlands (0.0%)‡ | |
E-MAC NL 2006-II BV, | |
3 Month EURIBOR + 0.13%,
4.91%, 1/25/39 (c) | | EUR | 342 | | | | 352 | | |
United Kingdom (0.1%) | |
Great Hall Mortgages No. 1 PLC, | |
3 Month EURIBOR + 0.25%, | |
3.74%, 6/18/38 (c) | | | 179 | | | | 198 | | |
Landmark Mortgage Securities No. 3 PLC, | |
3 Month GBP SONIA + 2.22%,
7.26%, 4/17/44 (c) | | GBP | 149 | | | | 187 | | |
| | | | 385 | | |
United States (1.2%) | |
Banc of America Alternative Loan Trust, | |
6.36%, 10/25/36 | | $ | 21 | | | | 6 | | |
Bayview Opportunity Master Fund VIA Trust, | |
3.00%, 1/25/52 (b)(c) | | | 605 | | | | 531 | | |
Chase Home Lending Mortgage Trust, | |
5.50%, 8/25/55 (b)(c) | | | 1,000 | | | | 1,001 | | |
ChaseFlex Trust, | |
6.00%, 2/25/37 | | | 20 | | | | 7 | | |
Federal Home Loan Mortgage Corp.
Seasoned Credit Risk Transfer Trust, | |
3.00%, 7/25/58 | | | 209 | | | | 183 | | |
3.00%, 10/25/58 | | | 24 | | | | 21 | | |
4.00%, 10/25/58 | | | 23 | | | | 21 | | |
Federal Home Loan Mortgage Corp.
Whole Loan Securities Trust, | |
3.00%, 9/25/45 | | | 43 | | | | 38 | | |
3.00%, 7/25/46 | | | 15 | | | | 13 | | |
3.00%, 12/25/46 | | | 56 | | | | 48 | | |
3.00%, 5/25/47 | | | 102 | | | | 88 | | |
3.50%, 5/25/45 | | | 17 | | | | 15 | | |
3.50%, 9/25/45 | | | 38 | | | | 33 | | |
3.50%, 7/25/46 | | | 24 | | | | 20 | | |
4.00%, 5/25/45 | | | 4 | | | | 4 | | |
GS Mortgage-Backed Securities Trust, | |
2.50%, 1/25/52 (b)(c) | | | 482 | | | | 407 | | |
GSR Mortgage Loan Trust, | |
5.75%, 1/25/37 | | | 7 | | | | 4 | | |
Hundred Acre Wood Trust, | |
2.50%, 12/25/51 (b)(c) | | | 412 | | | | 347 | | |
JP Morgan Mortgage Trust, | |
3.00%, 4/25/52 (b)(c) | | | 454 | | | | 399 | | |
| | | Face
Amount
(000) | | Value
(000) | |
3.00%, 9/25/52 (b)(c) | | $ | 490 | | | $ | 430 | | |
3.25%, 7/25/52 (b)(c) | | | 571 | | | | 494 | | |
Lehman Mortgage Trust, | |
6.50%, 9/25/37 | | | 17 | | | | 6 | | |
Mello Mortgage Capital Acceptance, | |
2.50%, 8/25/51 (b)(c) | | | 481 | | | | 406 | | |
MFA Trust, | |
5.27%, 8/25/69 (b) | | | 992 | | | | 994 | | |
Onslow Bay Financial LLC, Class A1 | |
3.00%, 1/25/52 (b)(c) | | | 467 | | | | 411 | | |
PRKCM 2023-AFC1 Trust, Class A1 | |
6.60%, 2/25/58 (b) | | | 841 | | | | 853 | | |
PRMI Securitization Trust, | |
2.50%, 4/25/51 (b)(c) | | | 560 | | | | 472 | | |
| | | | 7,252 | | |
| | | | 7,989 | | |
Municipal Bond (0.0%)‡ | |
Michigan (0.0%)‡ | |
University of Michigan, MI, | |
Series A | |
| 4.45%, 4/1/2122 (Cost $300) | | | 300 | | | | 265 | | |
Sovereign (17.2%) | |
Australia (0.4%) | |
Australia Government Bond, | |
1.25%, 5/21/32 | | AUD | 1,610 | | | | 921 | | |
Treasury Corp. of Victoria, | |
2.25%, 9/15/33 | | | 3,043 | | | | 1,727 | | |
| | | | 2,648 | | |
Austria (0.1%) | |
Republic of Austria Government Bond, | |
0.00%, 2/20/30 (b) | | EUR | 360 | | | | 354 | | |
Belgium (0.2%) | |
Kingdom of Belgium Government Bond, | |
0.90%, 6/22/29 (b) | | | 170 | | | | 178 | | |
1.70%, 6/22/50 (b) | | | 480 | | | | 385 | | |
3.45%, 6/22/43 (b) | | | 650 | | | | 747 | | |
| | | | 1,310 | | |
Brazil (1.1%) | |
Brazil Notas do Tesouro Nacional, | |
10.00%, 1/1/29 | | BRL | 40,988 | | | | 6,982 | | |
Canada (1.0%) | |
Canadian Government Bond, | |
2.00%, 12/1/51 | | CAD | 100 | | | | 58 | | |
3.25%, 12/1/33 | | | 6,050 | | | | 4,591 | | |
OMERS Finance Trust, | |
4.75%, 3/26/31 (b) | | $ | 560 | | | | 583 | | |
Province of British Columbia, | |
4.75%, 6/12/34 | | | 1,070 | | | | 1,119 | | |
| | | | 6,351 | | |
The accompanying notes are an integral part of the consolidated financial statements.
5
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Chile (0.1%) | |
Chile Government International Bond, | |
3.88%, 7/9/31 | | EUR | 450 | | | $ | 516 | | |
China (3.0%) | |
Agricultural Development Bank of China, | |
2.25%, 4/22/25 | | CNY | 3,600 | | | | 515 | | |
China Development Bank, | |
3.34%, 7/14/25 | | | 3,430 | | | | 495 | | |
China Government Bond, | |
2.37%, 1/20/27 | | | 16,900 | | | | 2,454 | | |
2.69%, 8/15/32 | | | 12,300 | | | | 1,820 | | |
2.80%, 11/15/32 | | | 13,900 | | | | 2,078 | | |
3.12%, 10/25/52 | | | 4,420 | | | | 730 | | |
3.13%, 11/21/29 | | | 26,150 | | | | 3,954 | | |
3.27%, 11/19/30 | | | 23,460 | | | | 3,602 | | |
3.52%, 4/25/46 | | | 1,430 | | | | 245 | | |
3.53%, 10/18/51 | | | 1,300 | | | | 229 | | |
3.81%, 9/14/50 | | | 4,070 | | | | 743 | | |
3.86%, 7/22/49 | | | 6,000 | | | | 1,097 | | |
Export-Import Bank of China, | |
2.93%, 3/2/25 | | | 3,470 | | | | 497 | | |
| | | | 18,459 | | |
Colombia (0.1%) | |
Colombian TES, | |
7.00%, 3/26/31 | | COP | 1,634,000 | | | | 344 | | |
Czech Republic (0.0%)‡ | |
Czech Republic Government Bond, | |
1.20%, 3/13/31 | | CZK | 6,000 | | | | 231 | | |
Denmark (0.1%) | |
Denmark Government Bond, | |
0.50%, 11/15/27 | | DKK | 3,000 | | | | 430 | | |
Estonia (0.1%) | |
Estonia Government International Bond, | |
3.25%, 1/17/34 | | EUR | 380 | | | | 430 | | |
Finland (0.1%) | |
Finland Government Bond, | |
1.13%, 4/15/34 (b) | | | 370 | | | | 360 | | |
3.00%, 9/15/34 (b) | | | 400 | | | | 459 | | |
| | | | 819 | | |
France (1.0%) | |
Agence Francaise de Developpement EPIC, | |
1.50%, 10/31/34 | | | 700 | | | | 673 | | |
French Republic Government Bond OAT, | |
0.00%, 11/25/29 (b) | | | 5,000 | | | | 4,904 | | |
SNCF Reseau, | |
1.88%, 3/30/34 | | | 400 | | | | 399 | | |
| | | | 5,976 | | |
Germany (1.8%) | |
Bundesrepublik Deutschland Bundesanleihe, | |
0.00%, 8/15/31 - 5/15/36 | | | 3,930 | | | | 3,822 | | |
0.25%, 2/15/29 | | | 2,530 | | | | 2,629 | | |
| | | Face
Amount
(000) | | Value
(000) | |
1.70%, 8/15/32 | | EUR | 1,430 | | | $ | 1,559 | | |
4.25%, 7/4/39 | | | 1,330 | | | | 1,820 | | |
State of North Rhine-Westphalia Germany, | |
1.65%, 2/22/38 | | | 1,500 | | | | 1,457 | | |
| | | | 11,287 | | |
Greece (0.2%) | |
Hellenic Republic Government Bond, | |
3.38%, 6/15/34 (b) | | | 1,000 | | | | 1,138 | | |
Hungary (0.1%) | |
Hungary Government Bond, | |
3.00%, 8/21/30 | | HUF | 51,360 | | | | 125 | | |
Hungary Government International Bond, | |
4.00%, 7/25/29 | | EUR | 229 | | | | 259 | | |
| | | | 384 | | |
Indonesia (0.1%) | |
Indonesia Treasury Bond, | |
8.38%, 3/15/34 | | IDR | 11,506,000 | | | | 860 | | |
Ireland (0.1%) | |
Ireland Government Bond, | |
2.60%, 10/18/34 | | EUR | 450 | | | | 506 | | |
Italy (0.8%) | |
Italy Buoni Poliennali Del Tesoro, | |
2.50%, 12/1/32 | | | 1,070 | | | | 1,139 | | |
3.85%, 7/1/34 | | | 640 | | | | 742 | | |
4.00%, 11/15/30 | | | 1,600 | | | | 1,886 | | |
4.45%, 9/1/43 (b) | | | 358 | | | | 426 | | |
4.50%, 10/1/53 (b) | | | 550 | | | | 655 | | |
| | | | 4,848 | | |
Japan (2.2%) | |
Japan Government Ten Year Bond, | |
0.10%, 6/20/31 | | JPY | 216,000 | | | | 1,457 | | |
0.80%, 3/20/34 | | | 548,000 | | | | 3,804 | | |
1.10%, 6/20/34 | | | 177,000 | | | | 1,259 | | |
Japan Government Thirty Year Bond, | |
0.30%, 6/20/46 | | | 224,000 | | | | 1,140 | | |
0.40%, 9/20/49 | | | 279,000 | | | | 1,349 | | |
0.70%, 12/20/51 | | | 279,000 | | | | 1,402 | | |
Japan Government Twenty Year Bond, | |
0.40%, 6/20/41 | | | 551,000 | | | | 3,206 | | |
| | | | 13,617 | | |
Korea, Republic of (0.2%) | |
Export-Import Bank of Korea, | |
0.63%, 2/9/26 | | $ | 640 | | | | 611 | | |
Korea Development Bank, | |
0.80%, 7/19/26 | | | 590 | | | | 557 | | |
| | | | 1,168 | | |
Lithuania (0.1%) | |
Republic of Lithuania, | |
3.50%, 7/3/31 | | EUR | 290 | | | | 332 | | |
The accompanying notes are an integral part of the consolidated financial statements.
6
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Malaysia (0.2%) | |
Malaysia Government Bond, | |
3.58%, 7/15/32 | | MYR | 1,870 | | | $ | 449 | | |
3.89%, 8/15/29 | | | 2,330 | | | | 575 | | |
| | | | 1,024 | | |
Mexico (0.1%) | |
Mexican Bonos, | |
7.50%, 6/3/27 | | MXN | 6,000 | | | | 293 | | |
7.75%, 5/29/31 | | | 5,000 | | | | 236 | | |
8.50%, 5/31/29 | | | 5,900 | | | | 293 | | |
| | | | 822 | | |
Netherlands (0.2%) | |
Netherlands Government Bond, | |
0.00%, 7/15/30 (b) | | EUR | 970 | | | | 953 | | |
2.75%, 1/15/47 (b) | | | 90 | | | | 102 | | |
| | | | 1,055 | | |
New Zealand (0.2%) | |
New Zealand Government Bond, | |
4.25%, 5/15/34 | | NZD | 240 | | | | 153 | | |
New Zealand Local Government
Funding Agency Bond, | |
MTN | |
4.40%, 9/8/27 | | AUD | 1,370 | | | | 957 | | |
| | | | 1,110 | | |
Nigeria (0.0%)‡ | |
Africa Finance Corp., | |
4.38%, 4/17/26 (b) | | $ | 200 | | | | 198 | | |
Norway (0.0%)‡ | |
Norway Government Bond, | |
3.63%, 5/31/39 (b) | | NOK | 360 | | | | 35 | | |
Poland (0.0%)‡ | |
Republic of Poland Government Bond, | |
1.75%, 4/25/32 | | PLN | 1,300 | | | | 268 | | |
Portugal (0.0%)‡ | |
Portugal Obrigacoes do Tesouro OT, | |
3.63%, 6/12/54 (b) | | EUR | 160 | | | | 183 | | |
Singapore (0.1%) | |
Singapore Government Bond, | |
2.63%, 8/1/32 | | SGD | 430 | | | | 335 | | |
Slovenia (0.1%) | |
Slovenia Government International Bond, | |
5.00%, 9/19/33 (b) | | $ | 700 | | | | 731 | | |
South Africa (1.1%) | |
Republic of South Africa Government Bond, | |
8.88%, 2/28/35 | | ZAR | 124,364 | | | | 6,667 | | |
Spain (1.1%) | |
Spain Government Bond, | |
0.00%, 1/31/28 | | EUR | 540 | | | | 557 | | |
2.70%, 10/31/48 (b) | | | 410 | | | | 395 | | |
3.45%, 10/31/34 (b) | | | 3,570 | | | | 4,152 | | |
| | | Face
Amount
(000) | | Value
(000) | |
3.50%, 5/31/29 | | EUR | 990 | | | $ | 1,153 | | |
4.00%, 10/31/54 (b) | | | 130 | | | | 153 | | |
| | | | 6,410 | | |
Thailand (0.1%) | |
Thailand Government Bond, | |
2.00%, 12/17/31 | | THB | 27,000 | | | | 820 | | |
United Kingdom (1.1%) | |
United Kingdom Gilt, | |
0.38%, 10/22/30 | | GBP | 820 | | | | 898 | | |
0.63%, 10/22/50 | | | 2,170 | | | | 1,194 | | |
0.88%, 7/31/33 | | | 1,730 | | | | 1,789 | | |
1.25%, 10/22/41 | | | 500 | | | | 419 | | |
1.63%, 10/22/28 | | | 550 | | | | 679 | | |
3.50%, 10/22/25 - 1/22/45 | | | 1,360 | | | | 1,706 | | |
4.25%, 7/31/34 | | | 170 | | | | 232 | | |
| | | | 6,917 | | |
| | | | 105,565 | | |
Supranational (0.7%) | |
Asian Development Bank, | |
MTN | |
2.13%, 5/19/31 | | NZD | 300 | | | | 169 | | |
Banque Ouest Africaine de Developpement, | |
4.70%, 10/22/31 | | $ | 240 | | | | 218 | | |
Corp. Andina de Fomento, | |
5.00%, 1/24/29 | | | 770 | | | | 797 | | |
MTN | |
5.30%, 2/19/29 | | AUD | 1,670 | | | | 1,170 | | |
European Financial Stability Facility, | |
3.00%, 9/4/34 | | EUR | 750 | | | | 856 | | |
European Investment Bank, | |
0.00%, 1/14/31 | | | 1,200 | | | | 1,150 | | |
| | | | 4,360 | | |
U.S. Treasury Securities (6.9%) | |
United States (6.9%) | |
U.S. Treasury Bonds, | |
1.13%, 5/15/40 | | | 5,850 | | | | 3,867 | | |
1.75%, 8/15/41 | | | 1,770 | | | | 1,256 | | |
U.S. Treasury Inflation-Indexed Notes, | |
1.75%, 1/15/34 | | | 9,170 | | | | 9,277 | | |
U.S. Treasury Notes, | |
0.38%, 12/31/25 | | | 6,270 | | | | 6,008 | | |
0.50%, 4/30/27 | | | 530 | | | | 490 | | |
1.13%, 10/31/26 | | | 7,000 | | | | 6,650 | | |
1.38%, 10/31/28 - 11/15/31 | | | 8,280 | | | | 7,458 | | |
1.50%, 2/15/30 | | | 840 | | | | 754 | | |
1.88%, 2/15/32 | | | 630 | | | | 556 | | |
3.38%, 5/15/33 | | | 3,280 | | | | 3,190 | | |
4.00%, 2/15/34 | | | 1,150 | | | | 1,170 | | |
4.13%, 9/30/27 | | | 1,540 | | | | 1,565 | | |
| | | | 42,241 | | |
Total Fixed Income Securities (Cost $248,813) | | | 246,321 | | |
The accompanying notes are an integral part of the consolidated financial statements.
7
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
Common Stocks (41.0%) | |
Australia (1.0%) | |
Ampol Ltd. | | | 1,110 | | | $ | 23 | | |
ANZ Group Holdings Ltd. | | | 14,405 | | | | 303 | | |
APA Group | | | 6,054 | | | | 32 | | |
Aristocrat Leisure Ltd. | | | 2,773 | | | | 112 | | |
ASX Ltd. | | | 912 | | | | 40 | | |
BHP Group Ltd. | | | 23,131 | | | | 718 | | |
BlueScope Steel Ltd. | | | 2,087 | | | | 32 | | |
Brambles Ltd. | | | 6,645 | | | | 87 | | |
CAR Group Ltd. | | | 1,735 | | | | 45 | | |
Cochlear Ltd. | | | 313 | | | | 61 | | |
Coles Group Ltd. | | | 6,323 | | | | 79 | | |
Commonwealth Bank of Australia | | | 8,113 | | | | 757 | | |
Computershare Ltd. | | | 2,563 | | | | 45 | | |
CSL Ltd. | | | 2,296 | | | | 454 | | |
Dexus REIT | | | 4,995 | | | | 26 | | |
Endeavour Group Ltd. | | | 7,167 | | | | 25 | | |
Fortescue Ltd. | | | 7,659 | | | | 108 | | |
Goodman Group REIT | | | 8,091 | | | | 206 | | |
GPT Group REIT | | | 9,090 | | | | 31 | | |
Insurance Australia Group Ltd. | | | 11,287 | | | | 57 | | |
James Hardie Industries PLC (f) | | | 2,064 | | | | 82 | | |
Lottery Corp. Ltd. | | | 10,687 | | | | 38 | | |
Macquarie Group Ltd. | | | 1,757 | | | | 281 | | |
Medibank Pvt Ltd. | | | 13,261 | | | | 33 | | |
Mineral Resources Ltd. | | | 794 | | | | 28 | | |
Mirvac Group REIT | | | 18,872 | | | | 28 | | |
National Australia Bank Ltd. | | | 15,048 | | | | 390 | | |
Northern Star Resources Ltd. | | | 5,399 | | | | 59 | | |
Orica Ltd. | | | 2,271 | | | | 29 | | |
Origin Energy Ltd. | | | 8,232 | | | | 57 | | |
Pilbara Minerals Ltd. (f) | | | 13,360 | | | | 30 | | |
Pro Medicus Ltd. | | | 283 | | | | 35 | | |
Qantas Airways Ltd. (f) | | | 3,782 | | | | 19 | | |
QBE Insurance Group Ltd. | | | 7,233 | | | | 83 | | |
Ramsay Health Care Ltd. | | | 887 | | | | 25 | | |
REA Group Ltd. | | | 252 | | | | 35 | | |
Reece Ltd. | | | 1,083 | | | | 21 | | |
Rio Tinto Ltd. | | | 1,694 | | | | 150 | | |
Santos Ltd. | | | 15,425 | | | | 75 | | |
Scentre Group REIT | | | 24,605 | | | | 62 | | |
SEEK Ltd. | | | 1,703 | | | | 29 | | |
Seven Group Holdings Ltd. | | | 969 | | | | 29 | | |
Sonic Healthcare Ltd. | | | 2,176 | | | | 41 | | |
South32 Ltd. | | | 20,826 | | | | 53 | | |
Stockland REIT | | | 11,285 | | | | 41 | | |
Suncorp Group Ltd. | | | 6,090 | | | | 76 | | |
Telstra Group Ltd. | | | 19,202 | | | | 51 | | |
Transurban Group (Units) | | | 14,723 | | | | 133 | | |
Treasury Wine Estates Ltd. | | | 3,854 | | | | 32 | | |
Vicinity Ltd. REIT | | | 18,407 | | | | 28 | | |
Washington H Soul Pattinson & Co. Ltd. | | | 1,105 | | | | 27 | | |
| | | Shares | | Value
(000) | |
Wesfarmers Ltd. | | | 5,345 | | | $ | 260 | | |
Westpac Banking Corp. | | | 16,535 | | | | 361 | | |
WiseTech Global Ltd. | | | 799 | | | | 76 | | |
Woodside Energy Group Ltd. | | | 8,943 | | | | 154 | | |
Woolworths Group Ltd. | | | 5,754 | | | | 132 | | |
Xero Ltd. (f) | | | 695 | | | | 72 | | |
| | | | 6,396 | | |
Austria (0.1%) | |
Erste Group Bank AG | | | 7,373 | | | | 404 | | |
OMV AG | | | 828 | | | | 35 | | |
Verbund AG | | | 384 | | | | 32 | | |
Voestalpine AG | | | 580 | | | | 15 | | |
| | | | 486 | | |
Belgium (0.2%) | |
Ageas SA | | | 772 | | | | 41 | | |
Anheuser-Busch InBev SA | | | 4,244 | | | | 281 | | |
Argenx SE (f) | | | 286 | | | | 154 | | |
D'ieteren Group | | | 104 | | | | 22 | | |
Elia Group SA | | | 143 | | | | 17 | | |
Groupe Bruxelles Lambert NV | | | 396 | | | | 31 | | |
KBC Group NV | | | 5,095 | | | | 406 | | |
Lotus Bakeries NV | | | 2 | | | | 27 | | |
Sofina SA | | | 74 | | | | 21 | | |
Syensqo SA | | | 353 | | | | 31 | | |
UCB SA | | | 627 | | | | 113 | | |
Warehouses De Pauw CVA REIT | | | 860 | | | | 23 | | |
| | | | 1,167 | | |
Canada (1.7%) | |
Agnico Eagle Mines Ltd. | | | 2,423 | | | | 195 | | |
Air Canada (f) | | | 852 | | | | 10 | | |
Alimentation Couche-Tard, Inc. | | | 3,701 | | | | 205 | | |
AltaGas Ltd. | | | 1,423 | | | | 35 | | |
ARC Resources Ltd. | | | 2,858 | | | | 48 | | |
Bank of Montreal | | | 3,527 | | | | 318 | | |
Bank of Nova Scotia | | | 5,895 | | | | 321 | | |
Barrick Gold Corp. (LSE) | | | 6,644 | | | | 132 | | |
Barrick Gold Corp. (NYSE) | | | 1,893 | | | | 38 | | |
BCE, Inc. | | | 352 | | | | 12 | | |
Brookfield Asset Management Ltd., Class A | | | 1,704 | | | | 81 | | |
Brookfield Corp. | | | 6,520 | | | | 346 | | |
Brookfield Renewable Corp., Class A | | | 649 | | | | 21 | | |
BRP, Inc. | | | 174 | | | | 10 | | |
CAE, Inc. (f) | | | 1,541 | | | | 29 | | |
Cameco Corp. | | | 2,116 | | | | 101 | | |
Canadian Apartment Properties REIT | | | 395 | | | | 16 | | |
Canadian Imperial Bank of Commerce | | | 4,519 | | | | 277 | | |
Canadian National Railway Co. | | | 2,626 | | | | 308 | | |
Canadian Natural Resources Ltd. | | | 10,239 | | | | 340 | | |
Canadian Pacific Kansas City Ltd. | | | 4,480 | | | | 383 | | |
Canadian Tire Corp. Ltd., Class A | | | 251 | | | | 30 | | |
Canadian Utilities Ltd., Class A | | | 641 | | | | 17 | | |
CCL Industries, Inc., Class B | | | 720 | | | | 44 | | |
The accompanying notes are an integral part of the consolidated financial statements.
8
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
Canada (cont'd) | |
Cenovus Energy, Inc. | | | 6,705 | | | $ | 112 | | |
CGI, Inc. (f) | | | 1,000 | | | | 115 | | |
Constellation Software, Inc. | | | 97 | | | | 316 | | |
Descartes Systems Group, Inc. (f) | | | 415 | | | | 43 | | |
Dollarama, Inc. | | | 1,339 | | | | 137 | | |
Element Fleet Management Corp. | | | 1,880 | | | | 40 | | |
Emera, Inc. | | | 1,378 | | | | 54 | | |
Empire Co. Ltd., Class A | | | 667 | | | | 20 | | |
Enbridge, Inc. | | | 10,296 | | | | 418 | | |
Fairfax Financial Holdings Ltd. | | | 101 | | | | 128 | | |
First Quantum Minerals Ltd. (f) | | | 3,410 | | | | 46 | | |
FirstService Corp. | | | 197 | | | | 36 | | |
Fortis, Inc. | | | 2,378 | | | | 108 | | |
Franco-Nevada Corp. | | | 925 | | | | 115 | | |
George Weston Ltd. | | | 289 | | | | 49 | | |
GFL Environmental, Inc. | | | 1,071 | | | | 43 | | |
Gildan Activewear, Inc. | | | 737 | | | | 35 | | |
Great-West Lifeco, Inc. | | | 1,358 | | | | 46 | | |
Hydro One Ltd. | | | 1,588 | | | | 55 | | |
iA Financial Corp., Inc. | | | 476 | | | | 39 | | |
IGM Financial, Inc. | | | 406 | | | | 12 | | |
Imperial Oil Ltd. | | | 894 | | | | 63 | | |
Intact Financial Corp. | | | 857 | | | | 165 | | |
Ivanhoe Mines Ltd., Class A (f) | | | 3,014 | | | | 45 | | |
Keyera Corp. | | | 1,110 | | | | 35 | | |
Kinross Gold Corp. | | | 5,975 | | | | 56 | | |
Loblaw Cos. Ltd. | | | 753 | | | | 100 | | |
Lundin Mining Corp. | | | 3,117 | | | | 33 | | |
Magna International, Inc. | | | 1,309 | | | | 54 | | |
Manulife Financial Corp. | | | 8,613 | | | | 255 | | |
MEG Energy Corp. | | | 1,305 | | | | 25 | | |
Metro, Inc. | | | 1,093 | | | | 69 | | |
National Bank of Canada | | | 1,657 | | | | 157 | | |
Northland Power, Inc. | | | 1,230 | | | | 21 | | |
Nutrien Ltd. | | | 2,389 | | | | 115 | | |
Onex Corp. | | | 319 | | | | 22 | | |
Open Text Corp. | | | 1,328 | | | | 44 | | |
Pan American Silver Corp. | | | 1,785 | | | | 37 | | |
Parkland Corp. | | | 677 | | | | 17 | | |
Pembina Pipeline Corp. | | | 2,792 | | | | 115 | | |
Power Corp. of Canada | | | 2,715 | | | | 86 | | |
Quebecor, Inc., Class B | | | 737 | | | | 19 | | |
RB Global, Inc. | | | 889 | | | | 72 | | |
Restaurant Brands International, Inc. | | | 1,463 | | | | 106 | | |
RioCan Real Estate Investment Trust REIT | | | 711 | | | | 11 | | |
Rogers Communications, Inc., Class B | | | 1,729 | | | | 70 | | |
Royal Bank of Canada | | | 6,771 | | | | 845 | | |
Saputo, Inc. | | | 1,221 | | | | 26 | | |
Shopify, Inc., Class A (f) | | | 5,881 | | | | 471 | | |
Stantec, Inc. | | | 557 | | | | 45 | | |
Sun Life Financial, Inc. | | | 2,808 | | | | 163 | | |
Suncor Energy, Inc. | | | 6,163 | | | | 227 | | |
| | | Shares | | Value
(000) | |
TC Energy Corp. | | | 5,001 | | | $ | 238 | | |
Teck Resources Ltd., Class B | | | 2,189 | | | | 114 | | |
TELUS Corp. | | | 2,363 | | | | 40 | | |
TFI International, Inc. | | | 389 | | | | 53 | | |
Thomson Reuters Corp. | | | 769 | | | | 131 | | |
TMX Group Ltd. | | | 1,352 | | | | 42 | | |
Toromont Industries Ltd. | | | 402 | | | | 39 | | |
Toronto-Dominion Bank | | | 8,533 | | | | 540 | | |
Tourmaline Oil Corp. | | | 1,591 | | | | 74 | | |
West Fraser Timber Co. Ltd. | | | 271 | | | | 26 | | |
Wheaton Precious Metals Corp. | | | 2,199 | | | | 134 | | |
WSP Global, Inc. | | | 603 | | | | 107 | | |
| | | | 10,391 | | |
China (0.0%) | |
China Common Rich Renewable Energy
Investments Ltd. (f)(g) | | | 42,000 | | | | — | | |
Denmark (0.5%) | |
AP Moller — Maersk AS Series B | | | 35 | | | | 58 | | |
Carlsberg AS Series B | | | 432 | | | | 51 | | |
Coloplast AS Series B | | | 592 | | | | 77 | | |
Danske Bank AS | | | 3,208 | | | | 97 | | |
Demant AS (f) | | | 451 | | | | 18 | | |
DSV AS | | | 785 | | | | 162 | | |
Genmab AS (f) | | | 294 | | | | 71 | | |
Novo Nordisk AS, Class B | | | 15,131 | | | | 1,795 | | |
Novozymes AS Series B | | | 1,648 | | | | 119 | | |
Orsted AS (f) | | | 887 | | | | 59 | | |
Pandora AS | | | 385 | | | | 63 | | |
Rockwool AS, Class B | | | 43 | | | | 20 | | |
Tryg AS | | | 1,583 | | | | 38 | | |
Vestas Wind Systems AS (f) | | | 4,788 | | | | 105 | | |
Zealand Pharma AS (f) | | | 308 | | | | 37 | | |
| | | | 2,770 | | |
Finland (0.2%) | |
Elisa OYJ | | | 667 | | | | 35 | | |
Fortum OYJ | | | 2,090 | | | | 35 | | |
Kesko OYJ, Class B | | | 1,282 | | | | 27 | | |
Kone OYJ, Class B | | | 1,547 | | | | 93 | | |
Metso OYJ | | | 2,824 | | | | 30 | | |
Neste OYJ | | | 2,013 | | | | 39 | | |
Nokia OYJ | | | 25,002 | | | | 109 | | |
Nordea Bank Abp | | | 65,959 | | | | 779 | | |
Orion OYJ, Class B | | | 506 | | | | 28 | | |
Sampo OYJ, Class A | | | 2,342 | | | | 109 | | |
Stora Enso OYJ, Class R | | | 2,674 | | | | 34 | | |
UPM-Kymmene OYJ | | | 2,454 | | | | 82 | | |
Wartsila OYJ Abp | | | 2,327 | | | | 52 | | |
| | | | 1,452 | | |
France (1.8%) | |
Accor SA | | | 906 | | | | 39 | | |
Aeroports de Paris SA | | | 157 | | | | 20 | | |
Air Liquide SA | | | 2,695 | | | | 520 | | |
The accompanying notes are an integral part of the consolidated financial statements.
9
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
France (cont'd) | |
Airbus SE | | | 2,771 | | | $ | 406 | | |
Alstom SA (f) | | | 1,572 | | | | 33 | | |
Amundi SA | | | 285 | | | | 21 | | |
ArcelorMittal SA | | | 2,103 | | | | 55 | | |
Arkema SA | | | 259 | | | | 25 | | |
AXA SA | | | 8,521 | | | | 328 | | |
BioMerieux | | | 191 | | | | 23 | | |
BNP Paribas SA | | | 21,474 | | | | 1,474 | | |
Bollore SE | | | 3,295 | | | | 22 | | |
Bouygues SA | | | 885 | | | | 30 | | |
Bureau Veritas SA | | | 1,488 | | | | 49 | | |
Capgemini SE | | | 713 | | | | 154 | | |
Carrefour SA | | | 2,549 | | | | 43 | | |
Cie de Saint-Gobain SA | | | 2,077 | | | | 189 | | |
Cie Generale des Etablissements Michelin SCA | | | 3,132 | | | | 127 | | |
Covivio SA REIT | | | 259 | | | | 16 | | |
Credit Agricole SA | | | 22,011 | | | | 337 | | |
Danone SA | | | 3,022 | | | | 220 | | |
Dassault Aviation SA | | | 94 | | | | 19 | | |
Dassault Systemes SE | | | 3,039 | | | | 121 | | |
Edenred SE | | | 1,156 | | | | 44 | | |
Eiffage SA | | | 341 | | | | 33 | | |
Engie SA | | | 8,668 | | | | 150 | | |
EssilorLuxottica SA | | | 1,379 | | | | 327 | | |
Eurazeo SE | | | 210 | | | | 17 | | |
Eurofins Scientific SE | | | 616 | | | | 39 | | |
Euronext NV | | | 381 | | | | 41 | | |
Gecina SA REIT | | | 214 | | | | 25 | | |
Getlink SE | | | 1,397 | | | | 25 | | |
Hermes International SCA | | | 138 | | | | 340 | | |
Ipsen SA | | | 174 | | | | 21 | | |
Kering SA | | | 324 | | | | 93 | | |
Klepierre SA REIT | | | 999 | | | | 33 | | |
La Francaise des Jeux SAEM | | | 473 | | | | 19 | | |
Legrand SA | | | 1,214 | | | | 140 | | |
L'Oreal SA | | | 1,081 | | | | 485 | | |
LVMH Moet Hennessy Louis Vuitton SE | | | 1,198 | | | | 919 | | |
Orange SA | | | 8,869 | | | | 102 | | |
Pernod Ricard SA | | | 904 | | | | 137 | | |
Publicis Groupe SA | | | 1,061 | | | | 116 | | |
Renault SA | | | 880 | | | | 38 | | |
Rexel SA | | | 1,046 | | | | 30 | | |
Safran SA | | | 1,588 | | | | 374 | | |
Sanofi SA | | | 5,355 | | | | 617 | | |
Sartorius Stedim Biotech | | | 127 | | | | 27 | | |
Schneider Electric SE | | | 2,508 | | | | 661 | | |
SEB SA | | | 112 | | | | 13 | | |
Societe Generale SA | | | 15,119 | | | | 377 | | |
Sodexo SA | | | 432 | | | | 35 | | |
STMicroelectronics NV | | | 3,069 | | | | 92 | | |
Teleperformance SE | | | 274 | | | | 28 | | |
Thales SA | | | 449 | | | | 71 | | |
| | | Shares | | Value
(000) | |
TotalEnergies SE | | | 10,486 | | | $ | 681 | | |
Unibail-Rodamco-Westfield REIT | | | 542 | | | | 47 | | |
Veolia Environnement SA | | | 3,196 | | | | 105 | | |
Vinci SA | | | 2,332 | | | | 273 | | |
Vivendi SE | | | 3,326 | | | | 38 | | |
| | | | 10,884 | | |
Germany (1.3%) | |
adidas AG | | | 722 | | | | 191 | | |
Allianz SE (Registered) | | | 1,830 | | | | 602 | | |
BASF SE | | | 4,273 | | | | 226 | | |
Bayer AG (Registered) | | | 4,530 | | | | 153 | | |
Bayerische Motoren Werke AG | | | 1,443 | | | | 128 | | |
Bayerische Motoren Werke AG (Preference) | | | 267 | | | | 22 | | |
Bechtle AG | | | 374 | | | | 17 | | |
Beiersdorf AG | | | 457 | | | | 69 | | |
Brenntag SE | | | 601 | | | | 45 | | |
Carl Zeiss Meditec AG | | | 178 | | | | 14 | | |
Commerzbank AG | | | 21,286 | | | | 393 | | |
Continental AG | | | 499 | | | | 32 | | |
Covestro AG (f) | | | 895 | | | | 56 | | |
CTS Eventim AG & Co. KGaA | | | 288 | | | | 30 | | |
Daimler Truck Holding AG | | | 2,266 | | | | 85 | | |
Delivery Hero SE (f) | | | 824 | | | | 33 | | |
Deutsche Bank AG (Registered) | | | 8,723 | | | | 151 | | |
Deutsche Boerse AG | | | 897 | | | | 211 | | |
Deutsche Lufthansa AG (Registered) | | | 2,724 | | | | 20 | | |
Deutsche Telekom AG (Registered) | | | 16,479 | | | | 484 | | |
DHL Group | | | 4,665 | | | | 208 | | |
Dr Ing hc F Porsche AG (Preference) | | | 509 | | | | 41 | | |
E.ON SE | | | 10,555 | | | | 157 | | |
Evonik Industries AG | | | 1,192 | | | | 28 | | |
Fresenius Medical Care AG | | | 959 | | | | 41 | | |
Fresenius SE & Co. KGaA (f) | | | 1,976 | | | | 75 | | |
GEA Group AG | | | 711 | | | | 35 | | |
Hannover Rueck SE (Registered) | | | 282 | | | | 81 | | |
Heidelberg Materials AG | | | 629 | | | | 69 | | |
Henkel AG & Co. KGaA | | | 487 | | | | 41 | | |
Henkel AG & Co. KGaA (Preference) | | | 792 | | | | 74 | | |
Infineon Technologies AG | | | 5,900 | | | | 207 | | |
Knorr-Bremse AG | | | 333 | | | | 30 | | |
LEG Immobilien SE | | | 344 | | | | 36 | | |
Mercedes-Benz Group AG (Registered) | | | 3,412 | | | | 221 | | |
Merck KGaA | | | 582 | | | | 103 | | |
MTU Aero Engines AG | | | 251 | | | | 78 | | |
Muenchener Rueckversicherungs-
Gesellschaft AG in Muenchen
(Registered) | | | 628 | | | | 346 | | |
Nemetschek SE | | | 261 | | | | 27 | | |
Porsche Automobil Holding SE (Preference) | | | 705 | | | | 32 | | |
Puma SE | | | 475 | | | | 20 | | |
QIAGEN NV (f) | | | 1,035 | | | | 47 | | |
Rational AG | | | 24 | | | | 25 | | |
The accompanying notes are an integral part of the consolidated financial statements.
10
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
Germany (cont'd) | |
Rheinmetall AG | | | 208 | | | $ | 113 | | |
RWE AG | | | 2,910 | | | | 106 | | |
SAP SE | | | 4,815 | | | | 1,101 | | |
Sartorius AG (Preference) | | | 123 | | | | 35 | | |
Scout24 SE | | | 351 | | | | 30 | | |
Siemens AG (Registered) | | | 3,461 | | | | 700 | | |
Siemens Energy AG (f) | | | 3,028 | | | | 112 | | |
Siemens Healthineers AG | | | 1,317 | | | | 79 | | |
Symrise AG | | | 631 | | | | 87 | | |
Talanx AG | | | 299 | | | | 25 | | |
Volkswagen AG (Preference) | | | 965 | | | | 103 | | |
Vonovia SE | | | 3,409 | | | | 124 | | |
Zalando SE (f) | | | 1,017 | | | | 34 | | |
| | | | 7,633 | | |
Hong Kong (0.3%) | |
AIA Group Ltd. | | | 51,819 | | | | 453 | | |
BOC Hong Kong Holdings Ltd. | | | 17,462 | | | | 55 | | |
CK Asset Holdings Ltd. | | | 9,033 | | | | 39 | | |
CK Hutchison Holdings Ltd. | | | 12,521 | | | | 71 | | |
CK Infrastructure Holdings Ltd. | | | 2,919 | | | | 20 | | |
CLP Holdings Ltd. | | | 7,770 | | | | 68 | | |
Futu Holdings Ltd. ADR (f) | | | 266 | | | | 25 | | |
Galaxy Entertainment Group Ltd. | | | 10,291 | | | | 51 | | |
Hang Seng Bank Ltd. | | | 3,550 | | | | 44 | | |
Henderson Land Development Co. Ltd. | | | 6,854 | | | | 22 | | |
HKT Trust & HKT Ltd. | | | 17,920 | | | | 23 | | |
Hong Kong & China Gas Co. Ltd. | | | 53,184 | | | | 43 | | |
Hong Kong Exchanges & Clearing Ltd. | | | 5,613 | | | | 229 | | |
Hongkong Land Holdings Ltd. | | | 5,318 | | | | 20 | | |
Jardine Matheson Holdings Ltd. | | | 763 | | | | 30 | | |
Link REIT | | | 11,936 | | | | 60 | | |
MTR Corp. Ltd. | | | 7,242 | | | | 27 | | |
Power Assets Holdings Ltd. | | | 6,512 | | | | 42 | | |
Sands China Ltd. (f) | | | 11,510 | | | | 29 | | |
Sino Land Co. Ltd. | | | 18,268 | | | | 20 | | |
SITC International Holdings Co. Ltd. | | | 6,407 | | | | 17 | | |
Sun Hung Kai Properties Ltd. | | | 6,748 | | | | 73 | | |
Swire Pacific Ltd., Class A | | | 1,929 | | | | 16 | | |
Techtronic Industries Co. Ltd. | | | 6,407 | | | | 96 | | |
WH Group Ltd. | | | 39,498 | | | | 31 | | |
Wharf Holdings Ltd. | | | 4,974 | | | | 14 | | |
Wharf Real Estate Investment Co. Ltd. | | | 7,719 | | | | 27 | | |
| | | | 1,645 | | |
Ireland (0.1%) | |
AIB Group PLC | | | 33,151 | | | | 190 | | |
Bank of Ireland Group PLC | | | 21,301 | | | | 238 | | |
Kerry Group PLC, Class A | | | 704 | | | | 73 | | |
Kingspan Group PLC | | | 684 | | | | 64 | | |
| | | | 565 | | |
| | | Shares | | Value
(000) | |
Israel (0.1%) | |
Azrieli Group Ltd. | | | 190 | | | $ | 13 | | |
Bank Hapoalim BM | | | 5,681 | | | | 57 | | |
Bank Leumi Le-Israel BM | | | 6,782 | | | | 66 | | |
Check Point Software Technologies Ltd. (f) | | | 402 | | | | 78 | | |
CyberArk Software Ltd. (f) | | | 195 | | | | 57 | | |
Elbit Systems Ltd. | | | 119 | | | | 24 | | |
Global-e Online Ltd. (f) | | | 453 | | | | 17 | | |
ICL Group Ltd. | | | 3,460 | | | | 15 | | |
Israel Discount Bank Ltd., Class A | | | 5,530 | | | | 31 | | |
Mizrahi Tefahot Bank Ltd. | | | 693 | | | | 27 | | |
Monday.com Ltd. (f) | | | 169 | | | | 47 | | |
Nice Ltd. (f) | | | 284 | | | | 49 | | |
Teva Pharmaceutical Industries Ltd. ADR (f) | | | 5,067 | | | | 91 | | |
Wix.com Ltd. (f) | | | 239 | | | | 40 | | |
| | | | 612 | | |
Italy (0.8%) | |
Amplifon SpA | | | 574 | | | | 17 | | |
Banco BPM SpA | | | 25,192 | | | | 170 | | |
Davide Campari-Milano NV | | | 2,745 | | | | 23 | | |
DiaSorin SpA | | | 105 | | | | 12 | | |
Enel SpA | | | 37,709 | | | | 301 | | |
Eni SpA | | | 11,087 | | | | 169 | | |
EXOR NV | | | 973 | | | | 104 | | |
Ferrari NV | | | 578 | | | | 271 | | |
FinecoBank Banca Fineco SpA | | | 12,620 | | | | 217 | | |
Generali | | | 4,755 | | | | 138 | | |
Infrastrutture Wireless Italiane SpA | | | 1,558 | | | | 19 | | |
Intesa Sanpaolo SpA | | | 315,561 | | | | 1,351 | | |
Leonardo SpA | | | 1,915 | | | | 43 | | |
Mediobanca Banca di Credito Finanziario SpA | | | 11,139 | | | | 190 | | |
Moncler SpA | | | 963 | | | | 61 | | |
Nexi SpA (f) | | | 2,712 | | | | 18 | | |
Poste Italiane SpA | | | 2,110 | | | | 30 | | |
Prysmian SpA | | | 1,236 | | | | 90 | | |
Recordati Industria Chimica e Farmaceutica SpA | | | 482 | | | | 27 | | |
Snam SpA | | | 9,373 | | | | 48 | | |
Stellantis NV | | | 9,759 | | | | 135 | | |
Telecom Italia SpA (Milano) (f) | | | 46,495 | | | | 13 | | |
Tenaris SA | | | 2,231 | | | | 35 | | |
Terna — Rete Elettrica Nazionale | | | 6,548 | | | | 59 | | |
UniCredit SpA | | | 32,184 | | | | 1,413 | | |
| | | | 4,954 | | |
Netherlands (0.8%) | |
ABN AMRO Bank NV CVA | | | 9,748 | | | | 176 | | |
Adyen NV (f) | | | 100 | | | | 157 | | |
Aegon Ltd. | | | 6,296 | | | | 40 | | |
AerCap Holdings NV | | | 911 | | | | 86 | | |
Akzo Nobel NV | | | 773 | | | | 55 | | |
ASM International NV | | | 211 | | | | 139 | | |
The accompanying notes are an integral part of the consolidated financial statements.
11
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
Netherlands (cont'd) | |
| ASML Holding NV | | | 1,796 | | | $ | 1,494 | | |
| ASR Nederland NV | | | 739 | | | | 36 | | |
BE Semiconductor Industries NV | | | 348 | | | | 44 | | |
Coca-Cola Europacific Partners PLC | | | 970 | | | | 76 | | |
DSM-Firmenich AG | | | 876 | | | | 121 | | |
Heineken Holding NV | | | 600 | | | | 45 | | |
Heineken NV | | | 1,329 | | | | 118 | | |
IMCD NV | | | 263 | | | | 46 | | |
ING Groep NV | | | 73,356 | | | | 1,331 | | |
InPost SA (f) | | | 941 | | | | 18 | | |
JDE Peet's NV | | | 565 | | | | 12 | | |
Koninklijke Ahold Delhaize NV | | | 4,462 | | | | 154 | | |
Koninklijke KPN NV | | | 18,465 | | | | 75 | | |
Koninklijke Philips NV (f) | | | 3,690 | | | | 121 | | |
NN Group NV | | | 1,276 | | | | 64 | | |
OCI NV | | | 502 | | | | 14 | | |
Prosus NV (f) | | | 6,226 | | | | 272 | | |
Randstad NV | | | 505 | | | | 25 | | |
Universal Music Group NV | | | 3,845 | | | | 101 | | |
Wolters Kluwer NV | | | 1,171 | | | | 198 | | |
| | | | 5,018 | | |
New Zealand (0.0%)‡ | |
Auckland International Airport Ltd. | | | 5,991 | | | | 29 | | |
Fisher & Paykel Healthcare Corp. Ltd. | | | 2,359 | | | | 52 | | |
Mercury NZ Ltd. | | | 2,754 | | | | 11 | | |
Meridian Energy Ltd. | | | 5,209 | | | | 20 | | |
Spark New Zealand Ltd. | | | 7,356 | | | | 14 | | |
| | | | 126 | | |
Norway (0.1%) | |
Aker BP ASA | | | 1,627 | | | | 35 | | |
DNB Bank ASA | | | 4,406 | | | | 90 | | |
Equinor ASA | | | 4,240 | | | | 107 | | |
Gjensidige Forsikring ASA | | | 981 | | | | 18 | | |
Kongsberg Gruppen ASA | | | 442 | | | | 43 | | |
Mowi ASA | | | 2,218 | | | | 40 | | |
Norsk Hydro ASA | | | 6,719 | | | | 44 | | |
Orkla ASA | | | 3,486 | | | | 33 | | |
Salmar ASA | | | 321 | | | | 17 | | |
Telenor ASA | | | 3,071 | | | | 39 | | |
Yara International ASA | | | 813 | | | | 26 | | |
| | | | 492 | | |
Portugal (0.0%)‡ | |
EDP — Energias de Portugal SA | | | 16,636 | | | | 76 | | |
EDP Renovaveis SA | | | 1,650 | | | | 29 | | |
Galp Energia SGPS SA | | | 2,566 | | | | 48 | | |
Jeronimo Martins SGPS SA | | | 1,520 | | | | 30 | | |
| | | | 183 | | |
Singapore (0.2%) | |
CapitaLand Ascendas REIT | | | 17,917 | | | | 40 | | |
CapitaLand Integrated Commercial Trust REIT | | | 27,118 | | | | 45 | | |
CapitaLand Investment Ltd. | | | 11,258 | | | | 27 | | |
| | | Shares | | Value
(000) | |
DBS Group Holdings Ltd. | | | 9,565 | | | $ | 283 | | |
Genting Singapore Ltd. | | | 28,687 | | | | 19 | | |
Grab Holdings Ltd., Class A (f) | | | 9,785 | | | | 37 | | |
Keppel Ltd. | | | 6,930 | | | | 36 | | |
Oversea-Chinese Banking Corp. Ltd. | | | 16,306 | | | | 191 | | |
Sea Ltd. ADR (f) | | | 1,735 | | | | 164 | | |
Sembcorp Industries Ltd. | | | 4,225 | | | | 18 | | |
Singapore Airlines Ltd. | | | 7,117 | | | | 38 | | |
Singapore Exchange Ltd. | | | 4,118 | | | | 36 | | |
Singapore Technologies Engineering Ltd. | | | 7,487 | | | | 27 | | |
Singapore Telecommunications Ltd. | | | 35,684 | | | | 90 | | |
United Overseas Bank Ltd. | | | 6,085 | | | | 152 | | |
Wilmar International Ltd. | | | 9,084 | | | | 23 | | |
| | | | 1,226 | | |
South Africa (0.9%) | |
Absa Group Ltd. | | | 88,014 | | | | 893 | | |
Capitec Bank Holdings Ltd. | | | 9,019 | | | | 1,586 | | |
Nedbank Group Ltd. | | | 45,505 | | | | 786 | | |
Standard Bank Group Ltd. | | | 138,873 | | | | 1,945 | | |
| | | | 5,210 | | |
Spain (0.8%) | |
Acciona SA | | | 115 | | | | 16 | | |
ACS Actividades de Construccion y Servicios SA | | | 853 | | | | 39 | | |
Aena SME SA | | | 350 | | | | 77 | | |
Amadeus IT Group SA | | | 2,078 | | | | 150 | | |
Banco Bilbao Vizcaya Argentaria SA | | | 121,695 | | | | 1,315 | | |
Banco de Sabadell SA | | | 24,930 | | | | 53 | | |
Banco Santander SA | | | 329,031 | | | | 1,686 | | |
CaixaBank SA | | | 82,540 | | | | 493 | | |
Cellnex Telecom SA | | | 2,456 | | | | 100 | | |
Endesa SA | | | 1,485 | | | | 32 | | |
Ferrovial SE | | | 2,423 | | | | 104 | | |
Grifols SA (f) | | | 1,313 | | | | 15 | | |
Iberdrola SA | | | 28,580 | | | | 442 | | |
Industria de Diseno Textil SA | | | 5,035 | | | | 298 | | |
Redeia Corp. SA | | | 1,901 | | | | 37 | | |
Repsol SA | | | 5,766 | | | | 76 | | |
Telefonica SA | | | 18,760 | | | | 92 | | |
| | | | 5,025 | | |
Sweden (0.4%) | |
AddTech AB, Class B | | | 1,195 | | | | 36 | | |
Alfa Laval AB | | | 1,324 | | | | 64 | | |
Assa Abloy AB, Class B | | | 4,610 | | | | 155 | | |
Atlas Copco AB, Class A | | | 19,156 | | | | 355 | | |
Beijer Ref AB | | | 1,672 | | | | 28 | | |
Boliden AB | | | 1,221 | | | | 41 | | |
Epiroc AB, Class A | | | 4,729 | | | | 97 | | |
EQT AB | | | 1,714 | | | | 59 | | |
Essity AB, Class B | | | 2,878 | | | | 90 | | |
Evolution AB | | | 823 | | | | 81 | | |
Fastighets AB Balder, Class B (f) | | | 3,020 | | | | 27 | | |
Getinge AB, Class B | | | 1,058 | | | | 23 | | |
The accompanying notes are an integral part of the consolidated financial statements.
12
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
Sweden (cont'd) | |
H & M Hennes & Mauritz AB, Class B | | | 2,752 | | | $ | 47 | | |
Hexagon AB, Class B | | | 9,379 | | | | 101 | | |
Holmen AB, Class B | | | 352 | | | | 15 | | |
Husqvarna AB, Class B | | | 1,604 | | | | 11 | | |
Industrivarden AB, Class A | | | 1,297 | | | | 48 | | |
Indutrade AB | | | 1,248 | | | | 39 | | |
Investment AB Latour, Class B | | | 689 | | | | 21 | | |
Investor AB, Class B | | | 7,998 | | | | 246 | | |
L E Lundbergforetagen AB, Class B | | | 348 | | | | 20 | | |
Lifco AB, Class B | | | 1,080 | | | | 36 | | |
Nibe Industrier AB, Class B | | | 6,928 | | | | 38 | | |
Saab AB, Class B | | | 1,509 | | | | 32 | | |
Sagax AB, Class B | | | 999 | | | | 28 | | |
Sandvik AB | | | 4,829 | | | | 108 | | |
Securitas AB, Class B | | | 2,269 | | | | 29 | | |
Skandinaviska Enskilda Banken AB, Class A | | | 7,314 | | | | 112 | | |
Skanska AB, Class B | | | 1,573 | | | | 33 | | |
| SKF AB, Class B | | | 1,560 | | | | 31 | | |
Svenska Cellulosa AB SCA, Class B | | | 2,790 | | | | 41 | | |
Svenska Handelsbanken AB, Class A | | | 6,772 | | | | 70 | | |
Swedbank AB, Class A | | | 3,919 | | | | 83 | | |
Swedish Orphan Biovitrum AB (f) | | | 906 | | | | 29 | | |
Tele2 AB, Class B | | | 2,545 | | | | 29 | | |
Telefonaktiebolaget LM Ericsson, Class B | | | 12,891 | | | | 97 | | |
Telia Co. AB | | | 11,038 | | | | 36 | | |
Trelleborg AB, Class B | | | 977 | | | | 38 | | |
Volvo AB, Class A | | | 8,209 | | | | 218 | | |
Volvo Car AB, Class B (f) | | | 3,362 | | | | 9 | | |
| | | | 2,701 | | |
Switzerland (1.3%) | |
ABB Ltd. (Registered) | | | 7,246 | | | | 420 | | |
Adecco Group AG (Registered) | | | 759 | | | | 26 | | |
Alcon, Inc. | | | 2,299 | | | | 230 | | |
Avolta AG (Registered) | | | 414 | | | | 18 | | |
Bachem Holding AG | | | 153 | | | | 13 | | |
Baloise Holding AG (Registered) | | | 202 | | | | 41 | | |
Banque Cantonale Vaudoise (Registered) | | | 138 | | | | 14 | | |
Barry Callebaut AG (Registered) | | | 16 | | | | 30 | | |
BKW AG | | | 98 | | | | 18 | | |
Chocoladefabriken Lindt & Spruengli AG | | | 5 | | | | 65 | | |
Chocoladefabriken Lindt & Spruengli
AG (Registered) | | | 1 | | | | 127 | | |
Cie Financiere Richemont SA, Class A
(Registered) | | | 2,331 | | | | 370 | | |
Clariant AG (Registered) (f) | | | 976 | | | | 15 | | |
EMS-Chemie Holding AG (Registered) | | | 32 | | | | 27 | | |
Galderma Group AG (f) | | | 277 | | | | 26 | | |
Geberit AG (Registered) | | | 155 | | | | 101 | | |
Givaudan SA (Registered) | | | 43 | | | | 236 | | |
Helvetia Holding AG (Registered) | | | 169 | | | | 29 | | |
Holcim AG (f) | | | 2,413 | | | | 236 | | |
Julius Baer Group Ltd. | | | 940 | | | | 57 | | |
| | | Shares | | Value
(000) | |
Kuehne & Nagel International AG (Registered) | | | 223 | | | $ | 61 | | |
Logitech International SA (Registered) | | | 704 | | | | 63 | | |
Lonza Group AG (Registered) | | | 330 | | | | 209 | | |
Nestle SA (Registered) | | | 12,173 | | | | 1,223 | | |
Novartis AG (Registered) | | | 9,297 | | | | 1,071 | | |
Partners Group Holding AG | | | 104 | | | | 157 | | |
Roche Holding AG | | | 148 | | | | 51 | | |
Roche Holding AG (Genusschein) | | | 3,261 | | | | 1,044 | | |
Sandoz Group AG | | | 1,883 | | | | 78 | | |
Schindler Holding AG | | | 186 | | | | 55 | | |
Schindler Holding AG (Registered) | | | 108 | | | | 31 | | |
SGS SA (Registered) | | | 714 | | | | 80 | | |
SIG Group AG (f) | | | 1,408 | | | | 31 | | |
Sika AG (Registered) | | | 701 | | | | 232 | | |
Sonova Holding AG (Registered) | | | 232 | | | | 84 | | |
Straumann Holding AG (Registered) | | | 502 | | | | 82 | | |
Swatch Group AG | | | 121 | | | | 26 | | |
Swatch Group AG (Registered) | | | 217 | | | | 9 | | |
Swiss Life Holding AG (Registered) | | | 133 | | | | 111 | | |
Swiss Prime Site AG (Registered) | | | 358 | | | | 40 | | |
Swiss Re AG | | | 1,405 | | | | 194 | | |
Swisscom AG (Registered) | | | 121 | | | | 79 | | |
Temenos AG (Registered) | | | 276 | | | | 19 | | |
UBS Group AG (Registered) (f) | | | 14,902 | | | | 461 | | |
VAT Group AG | | | 117 | | | | 60 | | |
Zurich Insurance Group AG | | | 682 | | | | 412 | | |
| | | | 8,062 | | |
United Kingdom (2.0%) | |
| 3i Group PLC | | | 4,507 | | | | 200 | | |
Admiral Group PLC | | | 1,225 | | | | 46 | | |
Anglo American PLC | | | 5,665 | | | | 184 | | |
Antofagasta PLC | | | 1,760 | | | | 47 | | |
Ashtead Group PLC | | | 2,021 | | | | 157 | | |
Associated British Foods PLC | | | 1,577 | | | | 49 | | |
AstraZeneca PLC | | | 7,276 | | | | 1,133 | | |
Auto Trader Group PLC | | | 4,215 | | | | 49 | | |
Aviva PLC | | | 12,674 | | | | 82 | | |
BAE Systems PLC | | | 14,531 | | | | 241 | | |
Barclays PLC | | | 68,495 | | | | 206 | | |
Barratt Developments PLC | | | 6,585 | | | | 42 | | |
Berkeley Group Holdings PLC | | | 476 | | | | 30 | | |
| BP PLC | | | 82,062 | | | | 428 | | |
British American Tobacco PLC | | | 9,779 | | | | 357 | | |
BT Group PLC | | | 30,637 | | | | 61 | | |
Bunzl PLC | | | 1,599 | | | | 76 | | |
Centrica PLC | | | 24,931 | | | | 39 | | |
Coca-Cola HBC AG (f) | | | 1,031 | | | | 37 | | |
Compass Group PLC | | | 8,090 | | | | 259 | | |
Croda International PLC | | | 612 | | | | 35 | | |
DCC PLC | | | 463 | | | | 32 | | |
Diageo PLC | | | 10,038 | | | | 351 | | |
Endeavour Mining PLC | | | 861 | | | | 20 | | |
The accompanying notes are an integral part of the consolidated financial statements.
13
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
United Kingdom (cont'd) | |
Entain PLC | | | 2,926 | | | $ | 30 | | |
Evraz PLC (f)(g) | | | 2,495 | | | | — | | |
Experian PLC | | | 4,234 | | | | 223 | | |
G4S Ltd. (f) | | | 6,437 | | | | 21 | | |
Glencore PLC | | | 46,725 | | | | 268 | | |
GSK PLC | | | 19,684 | | | | 401 | | |
Haleon PLC | | | 34,578 | | | | 181 | | |
Halma PLC | | | 1,746 | | | | 61 | | |
Hargreaves Lansdown PLC | | | 1,683 | | | | 25 | | |
Hikma Pharmaceuticals PLC | | | 786 | | | | 20 | | |
HSBC Holdings PLC | | | 86,024 | | | | 772 | | |
Imperial Brands PLC | | | 3,868 | | | | 113 | | |
Informa PLC | | | 6,247 | | | | 69 | | |
InterContinental Hotels Group PLC | | | 756 | | | | 82 | | |
Intertek Group PLC | | | 751 | | | | 52 | | |
J Sainsbury PLC | | | 7,840 | | | | 31 | | |
JD Sports Fashion PLC | | | 12,020 | | | | 25 | | |
Kingfisher PLC | | | 8,603 | | | | 37 | | |
Land Securities Group PLC REIT | | | 3,292 | | | | 29 | | |
Legal & General Group PLC | | | 27,942 | | | | 85 | | |
Lloyds Banking Group PLC | | | 291,766 | | | | 229 | | |
London Stock Exchange Group PLC | | | 2,282 | | | | 312 | | |
M&G PLC | | | 10,624 | | | | 29 | | |
Melrose Industries PLC | | | 6,125 | | | | 37 | | |
Mondi PLC | | | 2,057 | | | | 39 | | |
National Grid PLC | | | 22,719 | | | | 314 | | |
NatWest Group PLC | | | 30,689 | | | | 142 | | |
Next PLC | | | 568 | | | | 74 | | |
Paragon Offshore PLC (f)(g) | | | 303 | | | | — | | |
Pearson PLC | | | 2,845 | | | | 39 | | |
Persimmon PLC | | | 1,502 | | | | 33 | | |
Phoenix Group Holdings PLC | | | 3,294 | | | | 25 | | |
Prudential PLC | | | 12,166 | | | | 113 | | |
Reckitt Benckiser Group PLC | | | 3,265 | | | | 200 | | |
RELX PLC (LSE) | | | 8,830 | | | | 417 | | |
Rentokil Initial PLC | | | 11,850 | | | | 58 | | |
Rio Tinto PLC | | | 5,142 | | | | 365 | | |
Rolls-Royce Holdings PLC (f) | | | 40,343 | | | | 286 | | |
Sage Group PLC | | | 4,641 | | | | 64 | | |
Schroders PLC | | | 3,775 | | | | 18 | | |
Segro PLC REIT | | | 6,008 | | | | 70 | | |
Severn Trent PLC | | | 1,277 | | | | 45 | | |
Shell PLC | | | 31,231 | | | | 1,013 | | |
Smith & Nephew PLC | | | 4,127 | | | | 64 | | |
Smiths Group PLC | | | 1,635 | | | | 37 | | |
Spirax Group PLC | | | 334 | | | | 34 | | |
SSE PLC | | | 5,176 | | | | 130 | | |
Standard Chartered PLC | | | 9,755 | | | | 103 | | |
Taylor Wimpey PLC | | | 16,529 | | | | 36 | | |
Tesco PLC | | | 33,199 | | | | 159 | | |
Unilever PLC CVA | | | 11,946 | | | | 774 | | |
United Utilities Group PLC | | | 3,212 | | | | 45 | | |
| | | Shares | | Value
(000) | |
Vodafone Group PLC | | | 107,527 | | | $ | 108 | | |
Whitbread PLC | | | 845 | | | | 35 | | |
Wise PLC, Class A (f) | | | 3,041 | | | | 27 | | |
WPP PLC | | | 5,059 | | | | 52 | | |
| | | | 12,212 | | |
United States (26.4%) | |
3M Co. | | | 1,788 | | | | 244 | | |
A O Smith Corp. | | | 391 | | | | 35 | | |
Abbott Laboratories | | | 5,632 | | | | 642 | | |
AbbVie, Inc. | | | 5,717 | | | | 1,129 | | |
Accenture PLC, Class A | | | 2,028 | | | | 717 | | |
Adobe, Inc. (f) | | | 1,435 | | | | 743 | | |
Advanced Micro Devices, Inc. (f) | | | 5,232 | | | | 858 | | |
AECOM | | | 441 | | | | 46 | | |
AES Corp. | | | 2,301 | | | | 46 | | |
Aflac, Inc. | | | 1,747 | | | | 195 | | |
Agilent Technologies, Inc. | | | 944 | | | | 140 | | |
Air Products & Chemicals, Inc. | | | 720 | | | | 214 | | |
Airbnb, Inc., Class A (f) | | | 1,429 | | | | 181 | | |
Akamai Technologies, Inc. (f) | | | 493 | | | | 50 | | |
Albemarle Corp. | | | 380 | | | | 36 | | |
Albertsons Cos., Inc., Class A | | | 1,219 | | | | 23 | | |
Alexandria Real Estate Equities, Inc. REIT | | | 510 | | | | 61 | | |
Align Technology, Inc. (f) | | | 232 | | | | 59 | | |
Allegion PLC | | | 283 | | | | 41 | | |
Alliant Energy Corp. | | | 830 | | | | 50 | | |
Allstate Corp. | | | 854 | | | | 162 | | |
Ally Financial, Inc. | | | 886 | | | | 32 | | |
Alnylam Pharmaceuticals, Inc. (f) | | | 409 | | | | 112 | | |
Alphabet, Inc., Class A | | | 35,380 | | | | 5,890 | | |
Altria Group, Inc. | | | 5,560 | | | | 284 | | |
Amazon.com, Inc. (f) | | | 30,320 | | | | 5,650 | | |
Amcor PLC | | | 4,679 | | | | 53 | | |
Amentum Holdings, Inc. (f) | | | 390 | | | | 13 | | |
Ameren Corp. | | | 863 | | | | 75 | | |
American Electric Power Co., Inc. | | | 1,706 | | | | 175 | | |
American Express Co. | | | 1,863 | | | | 505 | | |
American Financial Group, Inc. | | | 231 | | | | 31 | | |
American Homes 4 Rent, Class A REIT | | | 1,065 | | | | 41 | | |
American International Group, Inc. | | | 2,148 | | | | 157 | | |
American Tower Corp. REIT | | | 1,512 | | | | 352 | | |
American Water Works Co., Inc. | | | 631 | | | | 92 | | |
Ameriprise Financial, Inc. | | | 322 | | | | 151 | | |
AMETEK, Inc. | | | 749 | | | | 129 | | |
Amgen, Inc. | | | 1,737 | | | | 560 | | |
Amphenol Corp., Class A | | | 3,889 | | | | 253 | | |
Analog Devices, Inc. | | | 1,606 | | | | 370 | | |
Annaly Capital Management, Inc. REIT | | | 1,620 | | | | 33 | | |
ANSYS, Inc. (f) | | | 283 | | | | 90 | | |
Aon PLC, Class A | | | 633 | | | | 219 | | |
APA Corp. | | | 1,202 | | | | 29 | | |
Apollo Global Management, Inc. | | | 1,289 | | | | 161 | | |
The accompanying notes are an integral part of the consolidated financial statements.
14
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
United States (cont'd) | |
Apple, Inc. | | | 47,158 | | | $ | 10,988 | | |
Applied Materials, Inc. | | | 2,680 | | | | 541 | | |
AppLovin Corp., Class A (f) | | | 661 | | | | 86 | | |
Aptiv PLC (f) | | | 881 | | | | 63 | | |
Arch Capital Group Ltd. (f) | | | 1,216 | | | | 136 | | |
Archer-Daniels-Midland Co. | | | 1,601 | | | | 96 | | |
Ares Management Corp., Class A | | | 602 | | | | 94 | | |
Arista Networks, Inc. (f) | | | 862 | | | | 331 | | |
Arthur J Gallagher & Co. | | | 707 | | | | 199 | | |
Aspen Technology, Inc. (f) | | | 92 | | | | 22 | | |
Assurant, Inc. | | | 168 | | | | 33 | | |
AT&T, Inc. | | | 23,211 | | | | 511 | | |
Atlassian Corp., Class A (f) | | | 516 | | | | 82 | | |
Atmos Energy Corp. | | | 488 | | | | 68 | | |
Autodesk, Inc. (f) | | | 698 | | | | 192 | | |
Automatic Data Processing, Inc. | | | 1,325 | | | | 367 | | |
AutoZone, Inc. (f) | | | 55 | | | | 173 | | |
AvalonBay Communities, Inc. REIT | | | 460 | | | | 104 | | |
Avantor, Inc. (f) | | | 2,199 | | | | 57 | | |
Avery Dennison Corp. | | | 261 | | | | 58 | | |
Axon Enterprise, Inc. (f) | | | 232 | | | | 93 | | |
Baker Hughes Co. | | | 3,231 | | | | 117 | | |
Ball Corp. | | | 1,005 | | | | 68 | | |
Bank of America Corp. | | | 22,785 | | | | 904 | | |
Bank of New York Mellon Corp. | | | 2,389 | | | | 172 | | |
Bath & Body Works, Inc. | | | 687 | | | | 22 | | |
Baxter International, Inc. | | | 1,650 | | | | 63 | | |
Becton Dickinson & Co. | | | 936 | | | | 226 | | |
Bentley Systems, Inc., Class B | | | 514 | | | | 26 | | |
Berkshire Hathaway, Inc., Class B (f) | | | 4,287 | | | | 1,973 | | |
Best Buy Co., Inc. | | | 663 | | | | 68 | | |
Biogen, Inc. (f) | | | 471 | | | | 91 | | |
BioMarin Pharmaceutical, Inc. (f) | | | 615 | | | | 43 | | |
Bio-Rad Laboratories, Inc., Class A (f) | | | 65 | | | | 22 | | |
Bio-Techne Corp. | | | 510 | | | | 41 | | |
BlackRock, Inc. | | | 481 | | | | 457 | | |
Blackstone, Inc. | | | 2,313 | | | | 354 | | |
Block, Inc., Class A (f) | | | 1,802 | | | | 121 | | |
Boeing Co. (f) | | | 1,893 | | | | 288 | | |
Booking Holdings, Inc. | | | 110 | | | | 463 | | |
Booz Allen Hamilton Holding Corp. | | | 419 | | | | 68 | | |
Boston Scientific Corp. (f) | | | 4,759 | | | | 399 | | |
Bristol-Myers Squibb Co. | | | 6,562 | | | | 340 | | |
Broadcom, Inc. | | | 14,315 | | | | 2,469 | | |
Broadridge Financial Solutions, Inc. | | | 383 | | | | 82 | | |
Brown & Brown, Inc. | | | 785 | | | | 81 | | |
Brown-Forman Corp., Class B | | | 590 | | | | 29 | | |
Builders FirstSource, Inc. (f) | | | 395 | | | | 77 | | |
Bunge Global SA | | | 458 | | | | 44 | | |
Burlington Stores, Inc. (f) | | | 207 | | | | 55 | | |
BXP, Inc. REIT | | | 483 | | | | 39 | | |
| | | Shares | | Value
(000) | |
Cadence Design Systems, Inc. (f) | | | 881 | | | $ | 239 | | |
Camden Property Trust REIT | | | 345 | | | | 43 | | |
Campbell Soup Co. | | | 628 | | | | 31 | | |
Capital One Financial Corp. | | | 1,236 | | | | 185 | | |
Cardinal Health, Inc. | | | 788 | | | | 87 | | |
Carlisle Cos., Inc. | | | 154 | | | | 69 | | |
Carlyle Group, Inc. | | | 757 | | | | 33 | | |
CarMax, Inc. (f) | | | 505 | | | | 39 | | |
Carnival Corp. (f) | | | 3,270 | | | | 60 | | |
Carrier Global Corp. | | | 2,625 | | | | 211 | | |
Catalent, Inc. (f) | | | 586 | | | | 35 | | |
Caterpillar, Inc. | | | 1,583 | | | | 619 | | |
Cboe Global Markets, Inc. | | | 340 | | | | 70 | | |
CBRE Group, Inc., Class A (f) | | | 993 | | | | 124 | | |
CDW Corp. | | | 435 | | | | 98 | | |
Celanese Corp. | | | 354 | | | | 48 | | |
Celsius Holdings, Inc. (f) | | | 490 | | | | 15 | | |
Cencora, Inc. | | | 581 | | | | 131 | | |
Centene Corp. (f) | | | 1,728 | | | | 130 | | |
CenterPoint Energy, Inc. | | | 2,071 | | | | 61 | | |
CF Industries Holdings, Inc. | | | 592 | | | | 51 | | |
CH Robinson Worldwide, Inc. | | | 379 | | | | 42 | | |
Charles River Laboratories International, Inc. (f) | | | 167 | | | | 33 | | |
Charles Schwab Corp. | | | 4,890 | | | | 317 | | |
Charter Communications, Inc., Class A (f) | | | 303 | | | | 98 | | |
Cheniere Energy, Inc. | | | 741 | | | | 133 | | |
Chesapeake Energy Corp. | | | 361 | | | | 30 | | |
Chevron Corp. | | | 5,668 | | | | 835 | | |
Chipotle Mexican Grill, Inc. (f) | | | 4,446 | | | | 256 | | |
Chord Energy Corp. | | | 202 | | | | 26 | | |
Chubb Ltd. | | | 1,249 | | | | 360 | | |
Church & Dwight Co., Inc. | | | 792 | | | | 83 | | |
Cigna Group | | | 920 | | | | 319 | | |
Cincinnati Financial Corp. | | | 507 | | | | 69 | | |
Cintas Corp. | | | 1,183 | | | | 244 | | |
Cisco Systems, Inc. | | | 13,042 | | | | 694 | | |
Citigroup, Inc. | | | 6,175 | | | | 387 | | |
Citizens Financial Group, Inc. | | | 1,473 | | | | 60 | | |
Clorox Co. | | | 402 | | | | 65 | | |
Cloudflare, Inc., Class A (f) | | | 975 | | | | 79 | | |
CME Group, Inc. | | | 1,166 | | | | 257 | | |
CMS Energy Corp. | | | 967 | | | | 68 | | |
| CNH Industrial NV | | | 2,850 | | | | 32 | | |
Coca-Cola Co. | | | 13,249 | | | | 952 | | |
Cognizant Technology Solutions Corp., Class A | | | 1,610 | | | | 124 | | |
Coinbase Global, Inc., Class A (f) | | | 615 | | | | 110 | | |
Colgate-Palmolive Co. | | | 2,523 | | | | 262 | | |
Comcast Corp., Class A | | | 12,671 | | | | 529 | | |
Conagra Brands, Inc. | | | 1,548 | | | | 50 | | |
ConocoPhillips | | | 3,769 | | | | 397 | | |
Consolidated Edison, Inc. | | | 1,120 | | | | 117 | | |
Constellation Brands, Inc., Class A | | | 531 | | | | 137 | | |
The accompanying notes are an integral part of the consolidated financial statements.
15
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
United States (cont'd) | |
Constellation Energy Corp. | | | 1,020 | | | $ | 265 | | |
Cooper Cos., Inc. (f) | | | 645 | | | | 71 | | |
Copart, Inc. (f) | | | 2,804 | | | | 147 | | |
Corebridge Financial, Inc. | | | 886 | | | | 26 | | |
Corning, Inc. | | | 2,634 | | | | 119 | | |
Corpay, Inc. (f) | | | 216 | | | | 68 | | |
Corteva, Inc. | | | 2,256 | | | | 133 | | |
CoStar Group, Inc. (f) | | | 1,322 | | | | 100 | | |
Costco Wholesale Corp. | | | 1,435 | | | | 1,272 | | |
Coterra Energy, Inc. | | | 2,409 | | | | 58 | | |
CRH PLC | | | 2,224 | | | | 206 | | |
Crowdstrike Holdings, Inc., Class A (f) | | | 747 | | | | 210 | | |
Crown Castle, Inc. REIT | | | 1,407 | | | | 167 | | |
Crown Holdings, Inc. | | | 391 | | | | 37 | | |
CSX Corp. | | | 6,329 | | | | 219 | | |
Cummins, Inc. | | | 443 | | | | 143 | | |
CVS Health Corp. | | | 4,064 | | | | 256 | | |
Danaher Corp. | | | 2,158 | | | | 600 | | |
Darden Restaurants, Inc. | | | 386 | | | | 63 | | |
Datadog, Inc., Class A (f) | | | 899 | | | | 103 | | |
DaVita, Inc. (f) | | | 170 | | | | 28 | | |
Dayforce, Inc. (f) | | | 511 | | | | 31 | | |
Deckers Outdoor Corp. (f) | | | 494 | | | | 79 | | |
Deere & Co. | | | 847 | | | | 353 | | |
Dell Technologies, Inc., Class C | | | 911 | | | | 108 | | |
Delta Air Lines, Inc. | | | 522 | | | | 27 | | |
Devon Energy Corp. | | | 2,032 | | | | 79 | | |
Dexcom, Inc. (f) | | | 1,287 | | | | 86 | | |
Diamondback Energy, Inc. | | | 616 | | | | 106 | | |
Dick's Sporting Goods, Inc. | | | 187 | | | | 39 | | |
Digital Realty Trust, Inc. REIT | | | 1,050 | | | | 170 | | |
Discover Financial Services | | | 811 | | | | 114 | | |
DocuSign, Inc. (f) | | | 663 | | | | 41 | | |
Dollar General Corp. | | | 712 | | | | 60 | | |
Dollar Tree, Inc. (f) | | | 661 | | | | 46 | | |
Dominion Energy, Inc. | | | 2,713 | | | | 157 | | |
Domino's Pizza, Inc. | | | 113 | | | | 49 | | |
DoorDash, Inc., Class A (f) | | | 988 | | | | 141 | | |
Dover Corp. | | | 445 | | | | 85 | | |
Dow, Inc. | | | 2,276 | | | | 124 | | |
DR Horton, Inc. | | | 959 | | | | 183 | | |
DraftKings, Inc., Class A (f) | | | 1,412 | | | | 55 | | |
DTE Energy Co. | | | 670 | | | | 86 | | |
Duke Energy Corp. | | | 2,498 | | | | 288 | | |
DuPont de Nemours, Inc. | | | 1,353 | | | | 121 | | |
Dynatrace, Inc. (f) | | | 917 | | | | 49 | | |
Eastman Chemical Co. | | | 381 | | | | 43 | | |
Eaton Corp. PLC | | | 1,294 | | | | 429 | | |
eBay, Inc. | | | 1,625 | | | | 106 | | |
Ecolab, Inc. | | | 832 | | | | 212 | | |
Edison International | | | 1,246 | | | | 109 | | |
Edwards Lifesciences Corp. (f) | | | 1,951 | | | | 129 | | |
| | | Shares | | Value
(000) | |
Electronic Arts, Inc. | | | 817 | | | $ | 117 | | |
Elevance Health, Inc. | | | 752 | | | | 391 | | |
Eli Lilly & Co. | | | 2,615 | | | | 2,317 | | |
EMCOR Group, Inc. | | | 152 | | | | 65 | | |
Emerson Electric Co. | | | 1,852 | | | | 203 | | |
Enphase Energy, Inc. (f) | | | 440 | | | | 50 | | |
Entegris, Inc. | | | 488 | | | | 55 | | |
Entergy Corp. | | | 691 | | | | 91 | | |
EOG Resources, Inc. | | | 1,860 | | | | 229 | | |
EPAM Systems, Inc. (f) | | | 188 | | | | 37 | | |
EQT Corp. | | | 1,829 | | | | 67 | | |
Equifax, Inc. | | | 400 | | | | 118 | | |
Equinix, Inc. REIT | | | 307 | | | | 273 | | |
Equitable Holdings, Inc. | | | 1,053 | | | | 44 | | |
Equity Lifestyle Properties, Inc. REIT | | | 574 | | | | 41 | | |
Equity Residential REIT | | | 1,104 | | | | 82 | | |
Erie Indemnity Co., Class A | | | 82 | | | | 44 | | |
Essential Utilities, Inc. | | | 841 | | | | 32 | | |
Essex Property Trust, Inc. REIT | | | 208 | | | | 61 | | |
Estee Lauder Cos., Inc., Class A | | | 754 | | | | 75 | | |
Everest Group Ltd. | | | 141 | | | | 55 | | |
Evergy, Inc. | | | 744 | | | | 46 | | |
Eversource Energy | | | 1,140 | | | | 78 | | |
Exact Sciences Corp. (f) | | | 597 | | | | 41 | | |
Exelon Corp. | | | 3,237 | | | | 131 | | |
Expedia Group, Inc. (f) | | | 411 | | | | 61 | | |
Expeditors International of Washington, Inc. | | | 457 | | | | 60 | | |
Extra Space Storage, Inc. REIT | | | 685 | | | | 123 | | |
Exxon Mobil Corp. | | | 14,522 | | | | 1,702 | | |
F5, Inc. (f) | | | 190 | | | | 42 | | |
FactSet Research Systems, Inc. | | | 123 | | | | 57 | | |
Fair Isaac Corp. (f) | | | 80 | | | | 155 | | |
Fastenal Co. | | | 1,853 | | | | 132 | | |
FedEx Corp. | | | 751 | | | | 206 | | |
Ferguson Enterprises, Inc. | | | 654 | | | | 130 | | |
Fidelity National Financial, Inc. | | | 840 | | | | 52 | | |
Fidelity National Information Services, Inc. | | | 1,801 | | | | 151 | | |
Fifth Third Bancorp | | | 2,214 | | | | 95 | | |
First Citizens BancShares, Inc., Class A | | | 33 | | | | 61 | | |
First Solar, Inc. (f) | | | 329 | | | | 82 | | |
FirstEnergy Corp. | | | 1,770 | | | | 79 | | |
Fiserv, Inc. (f) | | | 1,894 | | | | 340 | | |
Flutter Entertainment PLC (f) | | | 575 | | | | 136 | | |
Ford Motor Co. | | | 12,695 | | | | 134 | | |
Fortinet, Inc. (f) | | | 2,102 | | | | 163 | | |
Fortive Corp. | | | 1,140 | | | | 90 | | |
Fortune Brands Innovations, Inc. | | | 405 | | | | 36 | | |
Fox Corp., Class A | | | 1,205 | | | | 50 | | |
Franklin Resources, Inc. | | | 937 | | | | 19 | | |
Freeport-McMoRan, Inc. | | | 4,650 | | | | 232 | | |
Gaming and Leisure Properties, Inc. REIT | | | 879 | | | | 45 | | |
Garmin Ltd. | | | 497 | | | | 87 | | |
Gartner, Inc. (f) | | | 251 | | | | 127 | | |
The accompanying notes are an integral part of the consolidated financial statements.
16
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
United States (cont'd) | |
GE HealthCare Technologies, Inc. | | | 1,404 | | | $ | 132 | | |
GE Vernova, Inc. (f) | | | 887 | | | | 226 | | |
Gen Digital, Inc. | | | 1,824 | | | | 50 | | |
General Dynamics Corp. | | | 755 | | | | 228 | | |
General Electric Co. | | | 3,543 | | | | 668 | | |
General Mills, Inc. | | | 1,807 | | | | 133 | | |
General Motors Co. | | | 3,692 | | | | 166 | | |
Genuine Parts Co. | | | 451 | | | | 63 | | |
Gilead Sciences, Inc. | | | 4,033 | | | | 338 | | |
Global Payments, Inc. | | | 826 | | | | 85 | | |
GoDaddy, Inc., Class A (f) | | | 456 | | | | 71 | | |
Goldman Sachs Group, Inc. | | | 1,044 | | | | 517 | | |
Graco, Inc. | | | 548 | | | | 48 | | |
Halliburton Co. | | | 2,866 | | | | 83 | | |
Hartford Financial Services Group, Inc. | | | 959 | | | | 113 | | |
HCA Healthcare, Inc. | | | 636 | | | | 258 | | |
Healthpeak Properties, Inc. REIT | | | 2,278 | | | | 52 | | |
HEICO Corp. | | | 386 | | | | 87 | | |
Henry Schein, Inc. (f) | | | 415 | | | | 30 | | |
Hershey Co. | | | 478 | | | | 92 | | |
Hess Corp. | | | 898 | | | | 122 | | |
Hewlett Packard Enterprise Co. | | | 4,207 | | | | 86 | | |
HF Sinclair Corp. | | | 525 | | | | 23 | | |
Hilton Worldwide Holdings, Inc. | | | 809 | | | | 186 | | |
Hologic, Inc. (f) | | | 755 | | | | 62 | | |
Home Depot, Inc. | | | 3,210 | | | | 1,301 | | |
Honeywell International, Inc. | | | 2,108 | | | | 436 | | |
Hormel Foods Corp. | | | 976 | | | | 31 | | |
Host Hotels & Resorts, Inc. REIT | | | 2,282 | | | | 40 | | |
Howmet Aerospace, Inc. | | | 1,255 | | | | 126 | | |
HP, Inc. | | | 3,168 | | | | 114 | | |
Hubbell, Inc. | | | 174 | | | | 75 | | |
HubSpot, Inc. (f) | | | 157 | | | | 83 | | |
Humana, Inc. | | | 390 | | | | 124 | | |
Huntington Bancshares, Inc. | | | 4,692 | | | | 69 | | |
Huntington Ingalls Industries, Inc. | | | 128 | | | | 34 | | |
Hyatt Hotels Corp., Class A | | | 146 | | | | 22 | | |
IDEX Corp. | | | 245 | | | | 53 | | |
IDEXX Laboratories, Inc. (f) | | | 267 | | | | 135 | | |
Illinois Tool Works, Inc. | | | 966 | | | | 253 | | |
Illumina, Inc. (f) | | | 516 | | | | 67 | | |
Incyte Corp. (f) | | | 527 | | | | 35 | | |
Ingersoll Rand, Inc. | | | 1,306 | | | | 128 | | |
Insulet Corp. (f) | | | 227 | | | | 53 | | |
Intel Corp. | | | 13,781 | | | | 323 | | |
Intercontinental Exchange, Inc. | | | 1,857 | | | | 298 | | |
International Business Machines Corp. | | | 2,974 | | | | 657 | | |
International Flavors & Fragrances, Inc. | | | 827 | | | | 87 | | |
International Paper Co. | | | 1,068 | | | | 52 | | |
Interpublic Group of Cos., Inc. | | | 1,222 | | | | 39 | | |
Intuit, Inc. | | | 905 | | | | 562 | | |
Intuitive Surgical, Inc. (f) | | | 1,148 | | | | 564 | | |
| | | Shares | | Value
(000) | |
Invitation Homes, Inc. REIT | | | 1,983 | | | $ | 70 | | |
IQVIA Holdings, Inc. (f) | | | 590 | | | | 140 | | |
Iron Mountain, Inc. REIT | | | 949 | | | | 113 | | |
J M Smucker Co. | | | 345 | | | | 42 | | |
Jabil, Inc. | | | 367 | | | | 44 | | |
Jack Henry & Associates, Inc. | | | 236 | | | | 42 | | |
Jacobs Solutions, Inc. | | | 405 | | | | 53 | | |
JB Hunt Transport Services, Inc. | | | 267 | | | | 46 | | |
Johnson & Johnson | | | 7,791 | | | | 1,263 | | |
Johnson Controls International PLC | | | 2,181 | | | | 169 | | |
JPMorgan Chase & Co. | | | 9,296 | | | | 1,960 | | |
Juniper Networks, Inc. | | | 1,052 | | | | 41 | | |
Kellanova | | | 885 | | | | 71 | | |
Kenvue, Inc. | | | 6,199 | | | | 143 | | |
Keurig Dr Pepper, Inc. | | | 3,511 | | | | 132 | | |
KeyCorp | | | 3,052 | | | | 51 | | |
Keysight Technologies, Inc. (f) | | | 565 | | | | 90 | | |
Kimberly-Clark Corp. | | | 1,090 | | | | 155 | | |
Kimco Realty Corp. REIT | | | 2,182 | | | | 51 | | |
Kinder Morgan, Inc. | | | 6,466 | | | | 143 | | |
KKR & Co., Inc. | | | 2,011 | | | | 263 | | |
KLA Corp. | | | 436 | | | | 338 | | |
Knight-Swift Transportation Holdings, Inc. | | | 523 | | | | 28 | | |
Kraft Heinz Co. | | | 2,948 | | | | 104 | | |
Kroger Co. | | | 2,220 | | | | 127 | | |
L3Harris Technologies, Inc. | | | 614 | | | | 146 | | |
Labcorp Holdings, Inc. | | | 273 | | | | 61 | | |
Lam Research Corp. | | | 423 | | | | 345 | | |
Lamb Weston Holdings, Inc. | | | 467 | | | | 30 | | |
Las Vegas Sands Corp. | | | 1,206 | | | | 61 | | |
Leidos Holdings, Inc. | | | 416 | | | | 68 | | |
Lennar Corp., Class A | | | 782 | | | | 147 | | |
Lennox International, Inc. | | | 104 | | | | 63 | | |
Liberty Media Corp.-Liberty Formula One,
Class C (f) | | | 673 | | | | 52 | | |
Linde PLC | | | 1,556 | | | | 742 | | |
Live Nation Entertainment, Inc. (f) | | | 521 | | | | 57 | | |
LKQ Corp. | | | 864 | | | | 34 | | |
Lockheed Martin Corp. | | | 699 | | | | 409 | | |
Loews Corp. | | | 609 | | | | 48 | | |
Lowe's Cos., Inc. | | | 1,845 | | | | 500 | | |
LPL Financial Holdings, Inc. | | | 242 | | | | 56 | | |
Lululemon Athletica, Inc. (f) | | | 369 | | | | 100 | | |
LyondellBasell Industries NV, Class A | | | 843 | | | | 81 | | |
M&T Bank Corp. | | | 540 | | | | 96 | | |
Manhattan Associates, Inc. (f) | | | 199 | | | | 56 | | |
Marathon Oil Corp. | | | 1,826 | | | | 49 | | |
Marathon Petroleum Corp. | | | 1,141 | | | | 186 | | |
Markel Group, Inc. (f) | | | 42 | | | | 66 | | |
MarketAxess Holdings, Inc. | | | 123 | | | | 32 | | |
Marriott International, Inc., Class A | | | 786 | | | | 195 | | |
Marsh & McLennan Cos., Inc. | | | 1,598 | | | | 357 | | |
Martin Marietta Materials, Inc. | | | 200 | | | | 108 | | |
The accompanying notes are an integral part of the consolidated financial statements.
17
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
United States (cont'd) | |
Marvell Technology, Inc. | | | 2,802 | | | $ | 202 | | |
Masco Corp. | | | 713 | | | | 60 | | |
Mastercard, Inc., Class A | | | 2,688 | | | | 1,327 | | |
Match Group, Inc. (f) | | | 817 | | | | 31 | | |
McCormick & Co., Inc. | | | 816 | | | | 67 | | |
McDonald's Corp. | | | 2,333 | | | | 710 | | |
McKesson Corp. | | | 420 | | | | 208 | | |
Medtronic PLC | | | 4,151 | | | | 374 | | |
MercadoLibre, Inc. (f) | | | 148 | | | | 304 | | |
Merck & Co., Inc. | | | 8,199 | | | | 931 | | |
Meta Platforms, Inc., Class A | | | 7,094 | | | | 4,061 | | |
MetLife, Inc. | | | 1,957 | | | | 161 | | |
Mettler-Toledo International, Inc. (f) | | | 69 | | | | 103 | | |
MGM Resorts International (f) | | | 762 | | | | 30 | | |
Microchip Technology, Inc. | | | 1,737 | | | | 139 | | |
Micron Technology, Inc. | | | 3,590 | | | | 372 | | |
Microsoft Corp. | | | 22,857 | | | | 9,835 | | |
MicroStrategy, Inc., Class A (f) | | | 511 | | | | 86 | | |
Mid-America Apartment Communities, Inc. REIT | | | 378 | | | | 60 | | |
Moderna, Inc. (f) | | | 1,055 | | | | 71 | | |
Molina Healthcare, Inc. (f) | | | 190 | | | | 65 | | |
Molson Coors Beverage Co., Class B | | | 602 | | | | 35 | | |
Mondelez International, Inc., Class A | | | 4,342 | | | | 320 | | |
MongoDB, Inc. (f) | | | 237 | | | | 64 | | |
Monolithic Power Systems, Inc. | | | 158 | | | | 146 | | |
Monster Beverage Corp. (f) | | | 2,393 | | | | 125 | | |
Moody's Corp. | | | 532 | | | | 252 | | |
Mosaic Co. | | | 1,040 | | | | 28 | | |
Motorola Solutions, Inc. | | | 540 | | | | 243 | | |
MSCI, Inc. | | | 256 | | | | 149 | | |
Nasdaq, Inc. | | | 1,400 | | | | 102 | | |
NetApp, Inc. | | | 666 | | | | 82 | | |
Netflix, Inc. (f) | | | 1,395 | | | | 989 | | |
Neurocrine Biosciences, Inc. (f) | | | 326 | | | | 38 | | |
Newmont Corp. (TSX) | | | 3,733 | | | | 200 | | |
News Corp., Class A | | | 1,226 | | | | 33 | | |
NextEra Energy, Inc. | | | 6,651 | | | | 562 | | |
NIKE, Inc., Class B | | | 3,922 | | | | 347 | | |
NiSource, Inc. | | | 1,451 | | | | 50 | | |
Nordson Corp. | | | 176 | | | | 46 | | |
Norfolk Southern Corp. | | | 731 | | | | 182 | | |
Northern Trust Corp. | | | 662 | | | | 60 | | |
Northrop Grumman Corp. | | | 455 | | | | 240 | | |
NRG Energy, Inc. | | | 675 | | | | 61 | | |
Nucor Corp. | | | 776 | | | | 117 | | |
NVIDIA Corp. | | | 79,636 | | | | 9,671 | | |
NVR, Inc. (f) | | | 10 | | | | 98 | | |
NXP Semiconductors NV | | | 828 | | | | 199 | | |
Occidental Petroleum Corp. | | | 2,153 | | | | 111 | | |
Okta, Inc. (f) | | | 521 | | | | 39 | | |
Old Dominion Freight Line, Inc. | | | 633 | | | | 126 | | |
| | | Shares | | Value
(000) | |
Omnicom Group, Inc. | | | 634 | | | $ | 66 | | |
ON Semiconductor Corp. (f) | | | 1,393 | | | | 101 | | |
ONEOK, Inc. | | | 1,889 | | | | 172 | | |
Oracle Corp. | | | 5,359 | | | | 913 | | |
O'Reilly Automotive, Inc. (f) | | | 191 | | | | 220 | | |
Otis Worldwide Corp. | | | 1,309 | | | | 136 | | |
Ovintiv, Inc. | | | 864 | | | | 33 | | |
Owens Corning | | | 281 | | | | 50 | | |
PACCAR, Inc. | | | 1,697 | | | | 167 | | |
Packaging Corp. of America | | | 291 | | | | 63 | | |
Palantir Technologies, Inc., Class A (f) | | | 6,556 | | | | 244 | | |
Palo Alto Networks, Inc. (f) | | | 1,048 | | | | 358 | | |
Paramount Global, Class B | | | 1,925 | | | | 20 | | |
Parker-Hannifin Corp. | | | 416 | | | | 263 | | |
Paychex, Inc. | | | 1,049 | | | | 141 | | |
Paycom Software, Inc. | | | 165 | | | | 27 | | |
PayPal Holdings, Inc. (f) | | | 3,217 | | | | 251 | | |
Pentair PLC | | | 537 | | | | 53 | | |
PepsiCo, Inc. | | | 4,447 | | | | 756 | | |
Pfizer, Inc. | | | 18,344 | | | | 531 | | |
PG&E Corp. | | | 6,573 | | | | 130 | | |
Philip Morris International, Inc. | | | 5,032 | | | | 611 | | |
Phillips 66 | | | 1,373 | | | | 180 | | |
Pinterest, Inc., Class A (f) | | | 1,940 | | | | 63 | | |
PNC Financial Services Group, Inc. | | | 1,288 | | | | 238 | | |
Pool Corp. | | | 124 | | | | 47 | | |
PPG Industries, Inc. | | | 759 | | | | 101 | | |
PPL Corp. | | | 2,388 | | | | 79 | | |
Principal Financial Group, Inc. | | | 759 | | | | 65 | | |
Procter & Gamble Co. | | | 7,641 | | | | 1,323 | | |
Progressive Corp. | | | 1,896 | | | | 481 | | |
Prologis, Inc. REIT | | | 2,997 | | | | 378 | | |
Prudential Financial, Inc. | | | 1,162 | | | | 141 | | |
PTC, Inc. (f) | | | 388 | | | | 70 | | |
Public Service Enterprise Group, Inc. | | | 1,612 | | | | 144 | | |
Public Storage REIT | | | 512 | | | | 186 | | |
PulteGroup, Inc. | | | 681 | | | | 98 | | |
Pure Storage, Inc., Class A (f) | | | 1,000 | | | | 50 | | |
Qorvo, Inc. (f) | | | 308 | | | | 32 | | |
QUALCOMM, Inc. | | | 3,613 | | | | 614 | | |
Quanta Services, Inc. | | | 474 | | | | 141 | | |
Quest Diagnostics, Inc. | | | 360 | | | | 56 | | |
Raymond James Financial, Inc. | | | 637 | | | | 78 | | |
Realty Income Corp. REIT | | | 2,819 | | | | 179 | | |
Regency Centers Corp. REIT | | | 568 | | | | 41 | | |
Regeneron Pharmaceuticals, Inc. (f) | | | 351 | | | | 369 | | |
Regions Financial Corp. | | | 2,965 | | | | 69 | | |
Reliance, Inc. | | | 186 | | | | 54 | | |
Republic Services, Inc. | | | 714 | | | | 143 | | |
ResMed, Inc. | | | 476 | | | | 116 | | |
Revvity, Inc. | | | 399 | | | | 51 | | |
Rivian Automotive, Inc., Class A (f) | | | 2,398 | | | | 27 | | |
Robinhood Markets, Inc., Class A (f) | | | 1,711 | | | | 40 | | |
The accompanying notes are an integral part of the consolidated financial statements.
18
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
United States (cont'd) | |
ROBLOX Corp., Class A (f) | | | 1,531 | | | $ | 68 | | |
Rockwell Automation, Inc. | | | 369 | | | | 99 | | |
Roku, Inc. (f) | | | 411 | | | | 31 | | |
Rollins, Inc. | | | 941 | | | | 48 | | |
Roper Technologies, Inc. | | | 347 | | | | 193 | | |
Ross Stores, Inc. | | | 1,080 | | | | 163 | | |
Royal Caribbean Cruises Ltd. | | | 791 | | | | 140 | | |
Royalty Pharma PLC, Class A | | | 1,244 | | | | 35 | | |
RPM International, Inc. | | | 417 | | | | 50 | | |
RTX Corp. | | | 4,304 | | | | 521 | | |
S&P Global, Inc. | | | 1,036 | | | | 535 | | |
Salesforce, Inc. | | | 3,137 | | | | 859 | | |
Samsara, Inc., Class A (f) | | | 671 | | | | 32 | | |
SBA Communications Corp. REIT | | | 348 | | | | 84 | | |
Schlumberger NV | | | 4,627 | | | | 194 | | |
Seagate Technology Holdings PLC | | | 646 | | | | 71 | | |
SEI Investments Co. | | | 362 | | | | 25 | | |
Sempra | | | 2,049 | | | | 171 | | |
ServiceNow, Inc. (f) | | | 664 | | | | 594 | | |
Sherwin-Williams Co. | | | 780 | | | | 298 | | |
Simon Property Group, Inc. REIT | | | 1,055 | | | | 178 | | |
Skyworks Solutions, Inc. | | | 519 | | | | 51 | | |
Smurfit WestRock PLC | | | 1,681 | | | | 83 | | |
Snap, Inc., Class A (f) | | | 3,367 | | | | 36 | | |
Snap-on, Inc. | | | 171 | | | | 50 | | |
Snowflake, Inc., Class A (f) | | | 975 | | | | 112 | | |
Solventum Corp. (f) | | | 475 | | | | 33 | | |
Southern Co. | | | 3,540 | | | | 319 | | |
Southwest Airlines Co. | | | 484 | | | | 14 | | |
SS&C Technologies Holdings, Inc. | | | 721 | | | | 54 | | |
Stanley Black & Decker, Inc. | | | 498 | | | | 55 | | |
Starbucks Corp. | | | 3,667 | | | | 357 | | |
State Street Corp. | | | 969 | | | | 86 | | |
Steel Dynamics, Inc. | | | 483 | | | | 61 | | |
Steris PLC | | | 320 | | | | 78 | | |
Stryker Corp. | | | 1,110 | | | | 401 | | |
Sun Communities, Inc. REIT | | | 403 | | | | 54 | | |
Super Micro Computer, Inc. (f) | | | 171 | | | | 71 | | |
Synchrony Financial | | | 1,279 | | | | 64 | | |
Synopsys, Inc. (f) | | | 496 | | | | 251 | | |
Sysco Corp. | | | 1,612 | | | | 126 | | |
T Rowe Price Group, Inc. | | | 723 | | | | 79 | | |
Take-Two Interactive Software, Inc. (f) | | | 538 | | | | 83 | | |
Targa Resources Corp. | | | 682 | | | | 101 | | |
Target Corp. | | | 1,498 | | | | 233 | | |
TE Connectivity PLC | | | 954 | | | | 144 | | |
Teledyne Technologies, Inc. (f) | | | 154 | | | | 67 | | |
Teleflex, Inc. | | | 152 | | | | 38 | | |
Teradyne, Inc. | | | 505 | | | | 68 | | |
Tesla, Inc. (f) | | | 9,292 | | | | 2,431 | | |
Texas Instruments, Inc. | | | 2,947 | | | | 609 | | |
Texas Pacific Land Corp. | | | 63 | | | | 56 | | |
| | | Shares | | Value
(000) | |
Textron, Inc. | | | 617 | | | $ | 55 | | |
Thermo Fisher Scientific, Inc. | | | 1,236 | | | | 765 | | |
TJX Cos., Inc. | | | 3,659 | | | | 430 | | |
T-Mobile U.S., Inc. | | | 1,712 | | | | 353 | | |
Toast, Inc., Class A (f) | | | 1,173 | | | | 33 | | |
Toro Co. | | | 336 | | | | 29 | | |
Tractor Supply Co. | | | 349 | | | | 102 | | |
Trade Desk, Inc., Class A (f) | | | 1,441 | | | | 158 | | |
Tradeweb Markets, Inc., Class A | | | 376 | | | | 47 | | |
Trane Technologies PLC | | | 733 | | | | 285 | | |
TransDigm Group, Inc. | | | 181 | | | | 258 | | |
TransUnion | | | 629 | | | | 66 | | |
Travelers Cos., Inc. | | | 741 | | | | 173 | | |
Trimble, Inc. (f) | | | 791 | | | | 49 | | |
Truist Financial Corp. | | | 4,332 | | | | 185 | | |
Twilio, Inc., Class A (f) | | | 526 | | | | 34 | | |
Tyler Technologies, Inc. (f) | | | 137 | | | | 80 | | |
Tyson Foods, Inc., Class A | | | 926 | | | | 55 | | |
Uber Technologies, Inc. (f) | | | 6,088 | | | | 458 | | |
UDR, Inc. REIT | | | 1,013 | | | | 46 | | |
U-Haul Holding Co. | | | 314 | | | | 23 | | |
Ulta Beauty, Inc. (f) | | | 154 | | | | 60 | | |
Union Pacific Corp. | | | 1,975 | | | | 487 | | |
United Parcel Service, Inc., Class B | | | 2,361 | | | | 322 | | |
United Rentals, Inc. | | | 216 | | | | 175 | | |
United Therapeutics Corp. (f) | | | 136 | | | | 49 | | |
UnitedHealth Group, Inc. | | | 2,979 | | | | 1,742 | | |
Universal Health Services, Inc., Class B | | | 193 | | | | 44 | | |
US Bancorp | | | 5,052 | | | | 231 | | |
Valero Energy Corp. | | | 1,059 | | | | 143 | | |
Veeva Systems, Inc., Class A (f) | | | 497 | | | | 104 | | |
Ventas, Inc. REIT | | | 1,310 | | | | 84 | | |
Veralto Corp. | | | 799 | | | | 89 | | |
VeriSign, Inc. (f) | | | 290 | | | | 55 | | |
Verisk Analytics, Inc. | | | 462 | | | | 124 | | |
Verizon Communications, Inc. | | | 13,626 | | | | 612 | | |
Vertex Pharmaceuticals, Inc. (f) | | | 835 | | | | 388 | | |
Vertiv Holdings Co., Class A | | | 1,151 | | | | 115 | | |
Viatris, Inc. | | | 3,854 | | | | 45 | | |
VICI Properties, Inc. REIT | | | 3,377 | | | | 112 | | |
Visa, Inc., Class A | | | 5,096 | | | | 1,401 | | |
Vistra Corp. | | | 1,125 | | | | 133 | | |
Vulcan Materials Co. | | | 428 | | | | 107 | | |
W R Berkley Corp. | | | 993 | | | | 56 | | |
Walgreens Boots Alliance, Inc. | | | 2,375 | | | | 21 | | |
Walmart, Inc. | | | 14,321 | | | | 1,156 | | |
Walt Disney Co. | | | 5,902 | | | | 568 | | |
Warner Bros Discovery, Inc. (f) | | | 7,536 | | | | 62 | | |
Waste Connections, Inc. | | | 835 | | | | 149 | | |
Waste Management, Inc. | | | 1,298 | | | | 269 | | |
Waters Corp. (f) | | | 192 | | | | 69 | | |
Watsco, Inc. | | | 112 | | | | 55 | | |
WEC Energy Group, Inc. | | | 1,022 | | | | 98 | | |
The accompanying notes are an integral part of the consolidated financial statements.
19
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
| | | Shares | | Value
(000) | |
United States (cont'd) | |
Wells Fargo & Co. | | | 11,286 | | | $ | 638 | | |
Welltower, Inc. REIT | | | 1,936 | | | | 248 | | |
West Pharmaceutical Services, Inc. | | | 236 | | | | 71 | | |
Western Digital Corp. (f) | | | 1,057 | | | | 72 | | |
Westinghouse Air Brake Technologies Corp. | | | 571 | | | | 104 | | |
Westlake Corp. | | | 125 | | | | 19 | | |
Weyerhaeuser Co. REIT | | | 2,360 | | | | 80 | | |
Williams Cos., Inc. | | | 3,945 | | | | 180 | | |
Williams-Sonoma, Inc. | | | 416 | | | | 64 | | |
Willis Towers Watson PLC | | | 331 | | | | 97 | | |
Workday, Inc., Class A (f) | | | 686 | | | | 168 | | |
WP Carey, Inc. REIT | | | 708 | | | | 44 | | |
WW Grainger, Inc. | | | 143 | | | | 149 | | |
Wynn Resorts Ltd. | | | 327 | | | | 31 | | |
Xcel Energy, Inc. | | | 1,799 | | | | 117 | | |
Xylem, Inc. | | | 785 | | | | 106 | | |
Yum! Brands, Inc. | | | 912 | | | | 127 | | |
Zebra Technologies Corp., Class A (f) | | | 166 | | | | 61 | | |
Zillow Group, Inc., Class C (f) | | | 509 | | | | 33 | | |
Zimmer Biomet Holdings, Inc. | | | 666 | | | | 72 | | |
Zoetis, Inc. | | | 1,477 | | | | 289 | | |
Zoom Video Communications, Inc., Class A (f) | | | 811 | | | | 57 | | |
Zscaler, Inc. (f) | | | 294 | | | | 50 | | |
| | | | 162,271 | | |
Total Common Stocks (Cost $140,853) | | | 251,481 | | |
| | | No. of
Rights | | | |
Rights (0.0%)‡ | |
United States (0.0%)‡ | |
Contra Abiomed, Inc.,
expires 12/22/28 (f) (Cost $—@) | | | 90 | | | | — | @ | |
| | | No. of
Warrants | | | |
Warrants (0.0%) | |
Canada (0.0%) | |
Constellation Software, Inc.
expires 3/31/40 (f) (Cost $—) | | | 95 | | | | — | | |
| | | Face
Amount
(000) | | | |
Short-Term Investments (19.2%) | |
U.S. Treasury Securities (2.6%) | |
U.S. Treasury Bill, | |
5.19%, 1/9/25 (h) | | $ | 6,690 | | | | 6,607 | | |
5.19%, 1/16/25 (h) | | | 9,321 | | | | 9,198 | | |
Total U.S. Treasury Securities (Cost $15,780) | | | 15,805 | | |
| | | Shares | | Value
(000) | |
Investment Company (16.6%) | |
Morgan Stanley Institutional Liquidity
Funds — Government Portfolio —
Institutional Class, 4.85% (See Note G)
(Cost $102,364) | | | 102,364,069 | | | $ | 102,364 | | |
Total Short-Term Investments (Cost $118,144) | | | 118,169 | | |
Total Investments (100.3%) (Cost $507,810) (i)(j)(k) | | | 615,971 | | |
Liabilities in Excess of Other Assets (–0.3%) | | | (1,919 | ) | |
Net Assets (100.0%) | | $ | 614,052 | | |
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.
@ Value is less than $500.
‡ Amount is less than 0.05%.
(a) Security is subject to delayed delivery.
(b) 144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.
(c) Floating or variable rate securities: The rates disclosed are as of September 30, 2024. 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.
(d) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of September 30, 2024. Maturity date disclosed is the ultimate maturity date.
(e) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time after which they revert to a floating rate. Interest rates in effect are as of September 30, 2024.
(f) Non-income producing security.
(g) At September 30, 2024, the Fund held fair valued securities at $0, representing 0.0% of net assets. These securities have been fair valued using significant unobservable inputs as determined in good faith under procedures established by and under the general supervision of the Trust's (as defined herein) Trustees.
(h) Rate shown is the yield to maturity at September 30, 2024.
(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) The approximate fair value and percentage of net assets, $78,085,000 and 12.7%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to Consolidated Portfolio of Investments.
(k) At September 30, 2024, the aggregate cost for federal income tax purposes is approximately $525,439,000. The aggregate gross unrealized appreciation is approximately $132,166,000 and the aggregate gross unrealized depreciation is approximately $36,004,000, resulting in net unrealized appreciation of approximately $96,162,000.
ADR American Depositary Receipt.
CLO Collateralized Loan Obligation.
CVA Certificaten Van Aandelen.
DAC Designated Activity Company.
The accompanying notes are an integral part of the consolidated financial statements.
20
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
EURIBOR Euro Interbank Offered Rate.
LSE London Stock Exchange.
MTN Medium Term Note.
NYSE New York Stock Exchange.
OAT Obligations Assimilables du Trésor (French Treasury Obligation).
REIT Real Estate Investment Trust.
SOFR Secured Overnight Financing Rate.
SONIA Sterling Overnight Index Average.
TBA To Be Announced.
TSX Toronto Stock Exchange.
Foreign Currency Forward Exchange Contracts:
The Fund had the following foreign currency forward exchange contracts open at September 30, 2024:
Counterparty | | Contracts to
Deliver
(000) | | In Exchange
For
(000) | | Delivery
Date | | Unrealized
Appreciation
(Depreciation)
(000) | |
Australia & New Zealand Banking Group Ltd. | | EUR | 21,756 | | | $ | 24,131 | | | 10/22/24 | | $ | (— | @) | |
Australia & New Zealand Banking Group Ltd. | | JPY | 43,600,000 | | | $ | 305,309 | | | 10/22/24 | | | 1 | | |
Australia & New Zealand Banking Group Ltd. | | NZD | 237,649 | | | $ | 140,918 | | | 10/22/24 | | | (10 | ) | |
Bank of America NA | | CNH | 3,537,979 | | | $ | 501,818 | | | 12/19/24 | | | (6 | ) | |
Bank of America NA | | DKK | 6,011,218 | | | $ | 890,924 | | | 10/22/24 | | | (8 | ) | |
Bank of America NA | | PLN | 251,986 | | | $ | 65,494 | | | 12/19/24 | | | — | @ | |
Bank of America NA | | THB | 3,715,718 | | | $ | 102,978 | | | 10/22/24 | | | (13 | ) | |
Bank of America NA | | $ | 1,026,746 | | | CHF | 900,097 | | | 10/22/24 | | | 39 | | |
Bank of America NA | | $ | 109,533 | | | ILS | 412,788 | | | 12/19/24 | | | 1 | | |
Bank of America NA | | $ | 4,387 | | | JPY | 614,104 | | | 12/19/24 | | | (— | @) | |
Bank of America NA | | $ | 682,960 | | | SEK | 7,211,988 | | | 10/22/24 | | | 28 | | |
Bank of America NA | | $ | 12,641 | | | SGD | 16,931 | | | 10/22/24 | | | 1 | | |
Bank of New York Mellon | | $ | 13,454 | | | DKK | 89,813 | | | 12/19/24 | | | — | @ | |
Barclays Bank PLC | | AUD | 480,569 | | | $ | 319,607 | | | 10/22/24 | | | (13 | ) | |
Barclays Bank PLC | | AUD | 6,496 | | | $ | 4,399 | | | 12/19/24 | | | (— | @) | |
Barclays Bank PLC | | HKD | 3,173 | | | $ | 408 | | | 12/19/24 | | | — | @ | |
Barclays Bank PLC | | TRY | 12,070,112 | | | $ | 225,969 | | | 4/6/26 | | | 6 | | |
Barclays Bank PLC | | $ | 2,776,115 | | | CNY | 19,786,204 | | | 10/22/24 | | | 47 | | |
Barclays Bank PLC | | $ | 4,999,694 | | | EUR | 4,477,806 | | | 12/19/24 | | | 1 | | |
Barclays Bank PLC | | $ | 64,470 | | | HUF | 23,204,521 | | | 10/22/24 | | | — | @ | |
Barclays Bank PLC | | $ | 18,056 | | | ILS | 68,050 | | | 12/19/24 | | | — | @ | |
Barclays Bank PLC | | $ | 10,856,542 | | | JPY | 1,685,725,714 | | | 10/22/24 | | | 904 | | |
Barclays Bank PLC | | $ | 9,384 | | | JPY | 1,313,646 | | | 12/19/24 | | | (— | @) | |
Barclays Bank PLC | | $ | 298,105 | | | MXN | 5,830,466 | | | 12/19/24 | | | (5 | ) | |
Barclays Bank PLC | | $ | 2,051,053 | | | TRY | 119,022,580 | | | 4/6/26 | | | 120 | | |
BNP Paribas SA | | AUD | 1,381,090 | | | $ | 905,543 | | | 10/22/24 | | | (50 | ) | |
BNP Paribas SA | | AUD | 7,054 | | | $ | 4,777 | | | 12/19/24 | | | (— | @) | |
BNP Paribas SA | | CNH | 1,335,590 | | | $ | 189,443 | | | 12/19/24 | | | (2 | ) | |
BNP Paribas SA | | EUR | 2,039,099 | | | $ | 2,283,677 | | | 12/19/24 | | | 7 | | |
BNP Paribas SA | | EUR | 1,516,554 | | | $ | 1,701,956 | | | 12/19/24 | | | 8 | | |
BNP Paribas SA | | GBP | 705,396 | | | $ | 911,560 | | | 10/22/24 | | | (32 | ) | |
BNP Paribas SA | | GBP | 166,747 | | | $ | 214,555 | | | 10/22/24 | | | (8 | ) | |
BNP Paribas SA | | HKD | 214,710 | | | $ | 27,631 | | | 12/19/24 | | | (— | @) | |
BNP Paribas SA | | JPY | 130,989,302 | | | $ | 898,155 | | | 10/22/24 | | | (16 | ) | |
BNP Paribas SA | | $ | 29,873 | | | AUD | 44,255 | | | 10/22/24 | | | 1 | | |
BNP Paribas SA | | $ | 19,758 | | | CAD | 26,650 | | | 10/22/24 | | | (— | @) | |
BNP Paribas SA | | $ | 77,973 | | | CLP | 74,030,514 | | | 12/19/24 | | | 4 | | |
BNP Paribas SA | | $ | 56,301 | | | COP | 242,881,489 | | | 12/19/24 | | | 1 | | |
BNP Paribas SA | | $ | 634,050 | | | EUR | 583,472 | | | 10/22/24 | | | 16 | | |
BNP Paribas SA | | $ | 103,627 | | | EUR | 93,288 | | | 10/22/24 | | | — | @ | |
BNP Paribas SA | | $ | 7,955,158 | | | EUR | 7,124,575 | | | 12/19/24 | | | 1 | | |
BNP Paribas SA | | $ | 623,874 | | | EUR | 558,110 | | | 12/19/24 | | | (1 | ) | |
BNP Paribas SA | | $ | 52,013 | | | GBP | 40,382 | | | 10/22/24 | | | 2 | | |
BNP Paribas SA | | $ | 722,264 | | | HKD | 5,604,064 | | | 12/19/24 | | | (1 | ) | |
BNP Paribas SA | | $ | 190,093 | | | JPY | 26,608,617 | | | 12/19/24 | | | (3 | ) | |
BNP Paribas SA | | $ | 2,194,920 | | | KRW | 3,014,239,394 | | | 10/22/24 | | | 113 | | |
BNP Paribas SA | | $ | 2,563,473 | | | MXN | 50,138,331 | | | 12/19/24 | | | (47 | ) | |
BNP Paribas SA | | $ | 135,750 | | | PLN | 535,291 | | | 10/22/24 | | | 3 | | |
BNP Paribas SA | | $ | 103,655 | | | SEK | 1,050,734 | | | 12/19/24 | | | — | @ | |
The accompanying notes are an integral part of the consolidated financial statements.
21
Morgan Stanley Institutional Fund Trust
September 30, 2024
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) | |
BNP Paribas SA | | $ | 109,115 | | | SGD | 146,026 | | | 10/22/24 | | $ | 5 | | |
Citibank NA | | DKK | 3,517,378 | | | $ | 525,846 | | | 10/22/24 | | | — | @ | |
Citibank NA | | $ | 10,169 | | | CZK | 228,953 | | | 12/19/24 | | | (— | @) | |
Citibank NA | | $ | 50,478 | | | ILS | 190,250 | | | 12/19/24 | | | 1 | | |
Goldman Sachs International | | BRL | 28,123,720 | | | $ | 4,909,696 | | | 12/19/24 | | | (206 | ) | |
Goldman Sachs International | | CZK | 9,768,132 | | | $ | 432,589 | | | 12/19/24 | | | — | @ | |
Goldman Sachs International | | JPY | 144,411,971 | | | $ | 1,011,664 | | | 12/19/24 | | | (4 | ) | |
Goldman Sachs International | | KRW | 3,607,867,940 | | | $ | 2,705,948 | | | 12/19/24 | | | (65 | ) | |
Goldman Sachs International | | MYR | 54,192 | | | $ | 12,526 | | | 12/19/24 | | | (1 | ) | |
Goldman Sachs International | | NOK | 583,174 | | | $ | 55,072 | | | 12/19/24 | | | (— | @) | |
Goldman Sachs International | | NZD | 11,239 | | | $ | 6,956 | | | 12/19/24 | | | (— | @) | |
Goldman Sachs International | | TRY | 101,428,691 | | | $ | 2,396,708 | | | 12/23/24 | | | (319 | ) | |
Goldman Sachs International | | TRY | 8,548,423 | | | $ | 156,164 | | | 4/6/26 | | | — | @ | |
Goldman Sachs International | | $ | 5,944,547 | | | BRL | 33,218,131 | | | 12/19/24 | | | 98 | | |
Goldman Sachs International | | $ | 80,524 | | | CHF | 67,494 | | | 12/19/24 | | | (— | @) | |
Goldman Sachs International | | $ | 104,100 | | | CLP | 96,240,000 | | | 10/22/24 | | | 3 | | |
Goldman Sachs International | | $ | 12,336 | | | CZK | 277,842 | | | 12/19/24 | | | (— | @) | |
Goldman Sachs International | | $ | 130,865 | | | EUR | 120,178 | | | 10/22/24 | | | 3 | | |
Goldman Sachs International | | $ | 408,806 | | | EUR | 366,335 | | | 12/19/24 | | | — | @ | |
Goldman Sachs International | | $ | 134,392 | | | IDR | 2,172,849,620 | | | 10/22/24 | | | 9 | | |
Goldman Sachs International | | $ | 3,122,167 | | | INR | 263,028,554 | | | 12/19/24 | | | 5 | | |
Goldman Sachs International | | $ | 365,686 | | | INR | 30,743,207 | | | 12/19/24 | | | (— | @) | |
Goldman Sachs International | | $ | 905,829 | | | JPY | 126,805,401 | | | 12/19/24 | | | (14 | ) | |
Goldman Sachs International | | $ | 1,663,235 | | | MXN | 32,506,969 | | | 12/19/24 | | | (32 | ) | |
Goldman Sachs International | | $ | 88,935 | | | NOK | 960,145 | | | 10/22/24 | | | 2 | | |
Goldman Sachs International | | $ | 138,242 | | | RON | 631,531 | | | 10/22/24 | | | 3 | | |
Goldman Sachs International | | $ | 207,105 | | | SEK | 2,101,226 | | | 12/19/24 | | | 1 | | |
Goldman Sachs International | | $ | 2,592,095 | | | TRY | 101,428,691 | | | 12/23/24 | | | 123 | | |
Goldman Sachs International | | $ | 2,182,534 | | | TRY | 125,604,824 | | | 4/6/26 | | | 109 | | |
Goldman Sachs International | | $ | 2,125,693 | | | TRY | 115,743,984 | | | 4/6/26 | | | (14 | ) | |
Goldman Sachs International | | $ | 2,488,780 | | | TRY | 138,500,580 | | | 4/6/26 | | | 38 | | |
Goldman Sachs International | | $ | 580,987 | | | TRY | 32,941,937 | | | 4/6/26 | | | 20 | | |
JPMorgan Chase Bank NA | | DKK | 478,419 | | | $ | 70,263 | | | 10/22/24 | | | (1 | ) | |
JPMorgan Chase Bank NA | | EUR | 270,000 | | | $ | 293,377 | | | 10/22/24 | | | (7 | ) | |
JPMorgan Chase Bank NA | | GBP | 355,597 | | | $ | 473,440 | | | 12/19/24 | | | (2 | ) | |
JPMorgan Chase Bank NA | | HKD | 201,814 | | | $ | 25,974 | | | 12/19/24 | | | (— | @) | |
JPMorgan Chase Bank NA | | JPY | 214,019,556 | | | $ | 1,446,465 | | | 10/22/24 | | | (47 | ) | |
JPMorgan Chase Bank NA | | JPY | 35,247,727 | | | $ | 239,409 | | | 10/22/24 | | | (6 | ) | |
JPMorgan Chase Bank NA | | MXN | 4,205,606 | | | $ | 232,008 | | | 10/22/24 | | | 19 | | |
JPMorgan Chase Bank NA | | NOK | 446,572 | | | $ | 42,214 | | | 12/19/24 | | | (— | @) | |
JPMorgan Chase Bank NA | | NZD | 247,911 | | | $ | 153,548 | | | 12/19/24 | | | (4 | ) | |
JPMorgan Chase Bank NA | | SEK | 1,591,696 | | | $ | 157,144 | | | 12/19/24 | | | (— | @) | |
JPMorgan Chase Bank NA | | SGD | 211,017 | | | $ | 163,628 | | | 12/19/24 | | | (1 | ) | |
JPMorgan Chase Bank NA | | $ | 20,061 | | | AUD | 30,140 | | | 10/22/24 | | | 1 | | |
JPMorgan Chase Bank NA | | $ | 34,799 | | | AUD | 52,238 | | | 10/22/24 | | | 1 | | |
JPMorgan Chase Bank NA | | $ | 384,496 | | | CAD | 521,215 | | | 12/19/24 | | | 2 | | |
JPMorgan Chase Bank NA | | $ | 71,669 | | | CHF | 60,049 | | | 12/19/24 | | | (— | @) | |
JPMorgan Chase Bank NA | | $ | 562,363 | | | CZK | 12,750,000 | | | 10/22/24 | | | 1 | | |
JPMorgan Chase Bank NA | | $ | 65,948 | | | DKK | 440,279 | | | 12/19/24 | | | — | @ | |
JPMorgan Chase Bank NA | | $ | 898,800 | | | DKK | 6,019,495 | | | 10/22/24 | | | 1 | | |
JPMorgan Chase Bank NA | | $ | 1,175,375 | | | GBP | 891,091 | | | 12/19/24 | | | 16 | | |
JPMorgan Chase Bank NA | | $ | 18,451 | | | ILS | 69,542 | | | 12/19/24 | | | — | @ | |
JPMorgan Chase Bank NA | | $ | 1,409,199 | | | MXN | 27,563,759 | | | 12/19/24 | | | (26 | ) | |
JPMorgan Chase Bank NA | | $ | 312,933 | | | NZD | 517,468 | | | 10/22/24 | | | 16 | | |
JPMorgan Chase Bank NA | | $ | 32,768 | | | SEK | 332,182 | | | 12/19/24 | | | — | @ | |
JPMorgan Chase Bank NA | | $ | 21,288 | | | ZAR | 378,283 | | | 12/19/24 | | | — | @ | |
Standard Chartered Bank | | NZD | 13,200 | | | $ | 8,176 | | | 12/19/24 | | | (— | @) | |
State Street Bank and Trust Co. | | $ | 351,851 | | | CNH | 2,480,000 | | | 10/22/24 | | | 2 | | |
State Street Bank and Trust Co. | | $ | 183,135 | | | EUR | 164,018 | | | 12/19/24 | | | — | @ | |
State Street Bank and Trust Co. | | $ | 110,819 | | | SEK | 1,123,369 | | | 12/19/24 | | | — | @ | |
The accompanying notes are an integral part of the consolidated financial statements.
22
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
Foreign Currency Forward Exchange Contracts: (cont'd)
Counterparty | | Contracts to
Deliver
(000) | | In Exchange
For
(000) | | Delivery
Date | | Unrealized
Appreciation
(Depreciation)
(000) | |
UBS AG | | AUD | 377,207 | | | $ | 252,729 | | | 10/22/24 | | $ | (8 | ) | |
UBS AG | | AUD | 10,136 | | | $ | 6,864 | | | 12/19/24 | | | (— | @) | |
UBS AG | | AUD | 52,238 | | | $ | 35,629 | | | 10/22/24 | | | (— | @) | |
UBS AG | | CAD | 478,744 | | | $ | 353,847 | | | 12/19/24 | | | (1 | ) | |
UBS AG | | CHF | 98,904 | | | $ | 117,403 | | | 12/19/24 | | | (— | @) | |
UBS AG | | CNY | 94,319,807 | | | $ | 13,390,472 | | | 12/19/24 | | | (161 | ) | |
UBS AG | | COP | 487,785,000 | | | $ | 120,082 | | | 10/22/24 | | | 4 | | |
UBS AG | | EUR | 4,407,148 | | | $ | 4,817,312 | | | 10/22/24 | | | (93 | ) | |
UBS AG | | HKD | 365,732 | | | $ | 47,055 | | | 12/19/24 | | | (— | @) | |
UBS AG | | IDR | 283,917,275 | | | $ | 18,320 | | | 12/19/24 | | | (— | @) | |
UBS AG | | JPY | 77,624,401 | | | $ | 545,733 | | | 12/19/24 | | | — | @ | |
UBS AG | | THB | 713,693 | | | $ | 21,506 | | | 12/19/24 | | | (1 | ) | |
UBS AG | | TRY | 457,638 | | | $ | 12,130 | | | 12/19/24 | | | (— | @) | |
UBS AG | | TWD | 659,775 | | | $ | 20,755 | | | 12/19/24 | | | (— | @) | |
UBS AG | | $ | 589,717 | | | CAD | 808,762 | | | 10/22/24 | | | 9 | | |
UBS AG | | $ | 208,716 | | | CAD | 282,926 | | | 12/19/24 | | | 1 | | |
UBS AG | | $ | 156,957 | | | CHF | 131,510 | | | 12/19/24 | | | (— | @) | |
UBS AG | | $ | 17,845,414 | | | CNY | 124,188,916 | | | 12/19/24 | | | (3 | ) | |
UBS AG | | $ | 39,573 | | | EUR | 35,442 | | | 12/19/24 | | | — | @ | |
UBS AG | | $ | 306,731 | | | GBP | 232,541 | | | 12/19/24 | | | 4 | | |
UBS AG | | $ | 4,292 | | | HUF | 1,540,800 | | | 10/22/24 | | | — | @ | |
UBS AG | | $ | 13,355 | | | HUF | 4,751,041 | | | 12/19/24 | | | (— | @) | |
UBS AG | | $ | 892,048 | | | JPY | 124,870,264 | | | 12/19/24 | | | (14 | ) | |
UBS AG | | $ | 1,231,608 | | | MXN | 24,089,517 | | | 12/19/24 | | | (23 | ) | |
UBS AG | | $ | 33,263 | | | NOK | 364,653 | | | 10/22/24 | | | 1 | | |
UBS AG | | $ | 110,797 | | | PEN | 411,443 | | | 10/22/24 | | | — | @ | |
| | | | | | | | | $ | 534 | | |
Futures Contracts:
The Fund had the following futures contracts open at September 30, 2024:
| | | Number of
Contracts | | Expiration
Date | | Notional
Amount
(000) | | Value
(000) | | Unrealized
Appreciation
(Depreciation)
(000) | |
Long: | |
Euro-Buxl 30 yr. Bond Index (Germany) | | | 6 | | | Dec-24 | | EUR | 600 | | | $ | 910 | | | $ | 8 | | |
German Euro-Schatz Index (Germany) | | | 79 | | | Dec-24 | | | 7,900 | | | | 9,425 | | | | 39 | | |
ICE Brent Crude Oil Index (United States) | | | 31 | | | Oct-24 | | $ | 31 | | | | 2,223 | | | | (93 | ) | |
IFSC NIFTY 50 Index (United States) | | | 67 | | | Oct-24 | | | — | @ | | | 3,485 | | | | (19 | ) | |
KFE 10 yr. Treasury Bond Index
(Korea, Republic of) | | | 33 | | | Dec-24 | | KRW | 3,300,000 | | | | 2,962 | | | | (4 | ) | |
SGX MSCI Singapore Index (Singapore) | | | 1 | | | Oct-24 | | SGD | — | @ | | | 27 | | | | (— | @) | |
U.S. Treasury Long Bond (United States) | | | 22 | | | Dec-24 | | $ | 2,200 | | | | 2,732 | | | | (5 | ) | |
U.S. Treasury 5 yr. Note (United States) | | | 106 | | | Dec-24 | | | 10,600 | | | | 11,648 | | | | (14 | ) | |
U.S. Treasury 10 yr. Note (United States) | | | 144 | | | Dec-24 | | | 14,400 | | | | 16,456 | | | | 6 | | |
Short: | |
COMEX Gold 100 OZ (United States) | | | 26 | | | Dec-24 | | | (3 | ) | | | (6,915 | ) | | | 75 | | |
Euro Stoxx 50 Index (Germany) | | | 154 | | | Dec-24 | | EUR | (2 | ) | | | (8,623 | ) | | | (261 | ) | |
FTSE 100 Index (United Kingdom) | | | 1 | | | Dec-24 | | GBP | (— | @) | | | (111 | ) | | | 1 | | |
German Euro-Bobl Index (Germany) | | | 2 | | | Dec-24 | | EUR | (200 | ) | | | (267 | ) | | | (2 | ) | |
German Euro-Bund Index (Germany) | | | 57 | | | Dec-24 | | | (5,700 | ) | | | (8,561 | ) | | | (82 | ) | |
KFE KOSPI 200 Index (Korea, Republic of) | | | 36 | | | Dec-24 | | KRW | (9,000 | ) | | | (2,394 | ) | | | (39 | ) | |
MSCI Emerging Market Index (United States) | | | 100 | | | Dec-24 | | $ | (5 | ) | | | (5,864 | ) | | | (328 | ) | |
Nikkei 225 Index (Japan) | | | 10 | | | Dec-24 | | JPY | (5 | ) | | | (1,326 | ) | | | (30 | ) | |
S&P 500 E Mini Index (United States) | | | 13 | | | Dec-24 | | $ | (1 | ) | | | (3,779 | ) | | | 1 | | |
S&P/TSX 60 Index (Canada) | | | 2 | | | Dec-24 | | CAD | (— | @) | | | (427 | ) | | | (8 | ) | |
SFE 10 yr. Australian Bond Index (Australia) | | | 14 | | | Dec-24 | | AUD | (1,400 | ) | | | (1,127 | ) | | | 5 | | |
U.S. Treasury Ultra Long Bond (United States) | | | 13 | | | Dec-24 | | $ | (1,300 | ) | | | (1,730 | ) | | | 25 | | |
The accompanying notes are an integral part of the consolidated financial statements.
23
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
Futures Contracts: (cont'd)
| | | Number of
Contracts | | Expiration
Date | | Notional
Amount
(000) | | Value
(000) | | Unrealized
Appreciation
(Depreciation)
(000) | |
U.S. Treasury 2 yr. Note (United States) | | | 12 | | | Dec-24 | | $ | (2,400 | ) | | $ | (2,499 | ) | | $ | 6 | | |
U.S. Treasury 5 yr. Note (United States) | | | 16 | | | Dec-24 | | | (1,600 | ) | | | (1,758 | ) | | | (3 | ) | |
U.S. Treasury 10 yr. Ultra Note (United States) | | | 139 | | | Dec-24 | | | (13,900 | ) | | | (16,443 | ) | | | 56 | | |
| | | | | | | | | | | $ | (666 | ) | |
Centrally Cleared Interest Rate Swap Agreements:
The Fund had the following centrally cleared interest rate swap agreements open at September 30, 2024:
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 KSDA | | Pay | | | 3.00 | % | | Quarterly/
Quarterly | | 7/19/29 | | KRW | 490,790 | | | $ | 4 | | | $ | — | | | $ | 4 | | |
Morgan Stanley &
Co. LLC | | Euro-stat Eurozone
HICP ex Tobacco Index | | Pay | | | 2.17 | | | Maturity/
Maturity | | 1/15/34 | | EUR | 4,378 | | | | 115 | | | | — | | | | 115 | | |
Morgan Stanley &
Co. LLC | | Euro-stat Eurozone
HICP ex Tobacco Index | | Pay | | | 2.17 | | | Maturity/
Maturity | | 1/15/34 | | | 4,739 | | | | 125 | | | | — | | | | 125 | | |
Morgan Stanley &
Co. LLC | | Euro-stat Eurozone
HICP ex Tobacco Index | | Pay | | | 2.18 | | | Maturity/
Maturity | | 1/15/34 | | | 4,378 | | | | 119 | | | | — | | | | 119 | | |
| | | | | | | | | | | | | | | $ | 363 | | | $ | — | | | $ | 363 | | |
Total Return Swap Agreements:
The Fund had the following total return swap agreements open at September 30, 2024:
Swap Counterparty | | Index | | Pay/Receive
Total Return of
Reference
Index | | Floating
Rate | | Payment
Frequency | | Maturity
Date | | Notional
Amount
(000) | | Value
(000) | | Upfront
Payment
Paid
(000) | | Unrealized
Appreciation
(Depreciation)
(000) | |
Barclays Bank PLC | | MSCI Emerging Markets
ex China Gross
Return USD Index | | Receive | | SOFR + 0.56% | | Quarterly | | 5/29/25 | | $ | 12,160 | | | $ | (30 | ) | | $ | — | | | $ | (30 | ) | |
Barclays Bank PLC | | MSCI Emerging Markets
ex China Gross
Return USD Index | | Receive | | SOFR + 0.00% | | Quarterly | | 5/29/25 | | | 563 | | | | (6 | ) | | | — | | | | (6 | ) | |
Barclays Bank PLC | | MSCI Japan Net
Total Return USD Index | | Pay | | SOFR + 0.14% | | Quarterly | | 2/11/25 | | | 16,457 | | | | 1,696 | | | | — | | | | 1,696 | | |
Barclays Bank PLC | | MSCI USA Index | | Pay | | SOFR + 0.47% | | Quarterly | | 10/4/24 | | | 4,500 | | | | 165 | | | | — | | | | 165 | | |
Barclays Bank PLC | | S&P Small Cap 600
Index | | Pay | | SOFR + 0.55% | | Quarterly | | 7/17/25 | | | 5,134 | | | | (55 | ) | | | — | | | | (55 | ) | |
Barclays Bank PLC | | S&P Small Cap 600
Index | | Pay | | SOFR + 0.55% | | Quarterly | | 7/21/25 | | | 2,526 | | | | 33 | | | | — | | | | 33 | | |
Barclays Bank PLC | | U.S. Cyclicals Index | | Receive | | SOFR + 0.50% | | Quarterly | | 8/7/25 | | | 1,335 | | | | (185 | ) | | | — | | | | (185 | ) | |
Barclays Bank PLC | | U.S. Cyclicals Index | | Receive | | SOFR + 0.50% | | Quarterly | | 8/7/25 | | | 2,441 | | | | (274 | ) | | | — | | | | (274 | ) | |
Barclays Bank PLC | | U.S. Defensives Index | | Pay | | SOFR + 0.55% | | Quarterly | | 8/7/25 | | | 1,363 | | | | 74 | | | | — | | | | 74 | | |
Barclays Bank PLC | | U.S. Defensives Index | | Pay | | SOFR + 0.55% | | Quarterly | | 8/7/25 | | | 2,454 | | | | 88 | | | | — | | | | 88 | | |
BNP Paribas SA | | EM Value Quality
Index†† | | Pay | | SOFR + 0.55% | | Quarterly | | 5/22/25 | | | 9,241 | | | | (11) | | | | — | | | | (11) | | |
BNP Paribas SA | | EMU Anti-Value
and Quality Index†† | | Receive | | ESTR + 0.00% | | Quarterly | | 9/18/25 | | EUR | 1,826 | | | | (53 | ) | | | — | | | | (53 | ) | |
BNP Paribas SA | | EMU Anti-Value
and Quality Index†† | | Receive | | ESTR + 0.00% | | Quarterly | | 9/18/25 | | | 1,702 | | | | (36) | | | | — | | | | (36) | | |
BNP Paribas SA | | EMU Anti-Value
and Quality Index†† | | Receive | | ESTR + 0.00% | | Quarterly | | 9/18/25 | | | 2,558 | | | | (46) | | | | — | | | | (46) | | |
The accompanying notes are an integral part of the consolidated financial statements.
24
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
Total Return Swap Agreements: (cont'd)
Swap Counterparty | | Index | | Pay/Receive
Total Return of
Reference
Index | | Floating
Rate | | Payment
Frequency | | Maturity
Date | | Notional
Amount
(000) | | Value
(000) | | Upfront
Payment
Paid
(000) | | Unrealized
Appreciation
(Depreciation)
(000) | |
BNP Paribas SA | | EMU Anti-Value Index | | Pay | | ESTR - 0.37% | | Quarterly | | 9/18/25 | | EUR | 1,386 | | | $ | 13 | | | $ | — | | | $ | 13 | | |
BNP Paribas SA | | EMU Anti-Value Index | | Pay | | ESTR - 0.37% | | Quarterly | | 9/18/25 | | | 1,282 | | | | 4 | | | | — | | | | 4 | | |
BNP Paribas SA | | EMU Anti-Value Index | | Pay | | ESTR - 0.37% | | Quarterly | | 9/18/25 | | | 1,920 | | | | 10 | | | | — | | | | 10 | | |
BNP Paribas SA | | EMU Domestics
Index†† | | Pay | | ESTR - 0.21% | | Quarterly | | 1/15/25 | | | 2,364 | | | | 3 | | | | — | | | | 3 | | |
BNP Paribas SA | | EMU Domestics
Index†† | | Pay | | ESTR - 0.21% | | Quarterly | | 1/15/25 | | | 2,972 | | | | 4 | | | | — | | | | 4 | | |
BNP Paribas SA | | EMU Domestics
Index†† | | Pay | | ESTR + 0.06% | | Quarterly | | 1/15/25 | | | 2,630 | | | | 64 | | | | — | | | | 64 | | |
BNP Paribas SA | | EMU Domestics
Index†† | | Pay | | ESTR + 0.06% | | Quarterly | | 1/15/25 | | | 2,438 | | | | 12 | | | | — | | | | 12 | | |
BNP Paribas SA | | EMU Value and
Quality Index†† | | Pay | | ESTR + 0.00% | | Quarterly | | 9/18/25 | | | 1,772 | | | | 24 | | | | — | | | | 24 | | |
BNP Paribas SA | | EMU Value and
Quality Index†† | | Pay | | ESTR + 0.00% | | Quarterly | | 9/18/25 | | | 1,704 | | | | 16 | | | | — | | | | 16 | | |
BNP Paribas SA | | EMU Value and
Quality Index†† | | Pay | | ESTR + 0.00% | | Quarterly | | 9/18/25 | | | 2,558 | | | | 21 | | | | — | | | | 21 | | |
BNP Paribas SA | | EMU Value Index | | Receive | | ESTR - 0.02% | | Quarterly | | 9/18/25 | | | 1,397 | | | | (50 | ) | | | — | | | | (50 | ) | |
BNP Paribas SA | | EMU Value Index | | Receive | | ESTR - 0.02% | | Quarterly | | 9/18/25 | | | 1,284 | | | | (31 | ) | | | — | | | | (31 | ) | |
BNP Paribas SA | | EMU Value Index | | Receive | | ESTR - 0.02% | | Quarterly | | 9/18/25 | | | 1,935 | | | | (37 | ) | | | — | | | | (37 | ) | |
BNP Paribas SA | | U.S. Domestics
Index†† | | Receive | | SOFR + 0.38% | | Quarterly | | 1/15/25 | | $ | 1,377 | | | | (77 | ) | | | — | | | | (77 | ) | |
BNP Paribas SA | | U.S. Domestics
Index†† | | Receive | | SOFR + 0.38% | | Quarterly | | 1/15/25 | | | 3,985 | | | | (221) | | | | — | | | | (221) | | |
BNP Paribas SA | | U.S. Domestics
Index†† | | Receive | | SOFR + 0.50% | | Quarterly | | 1/15/25 | | | 3,148 | | | | (307) | | | | — | | | | (307) | | |
BNP Paribas SA | | U.S. Domestics
Index†† | | Receive | | SOFR + 0.50% | | Quarterly | | 1/15/25 | | | 2,409 | | | | (138) | | | | — | | | | (138) | | |
Goldman Sachs
International | | MSCI Emerging Markets
Net Total Return Index | | Pay | | SOFR + 0.00% | | Quarterly | | 1/28/25 | | | 36,808 | | | | 2,820 | | | | — | | | | 2,820 | | |
JPMorgan Chase
Bank NA | | Japan Growth Index†† | | Receive | | SOFR - 0.19% | | Quarterly | | 9/22/25 | | | 11,571 | | | | (379) | | | | — | | | | (379 | ) | |
JPMorgan Chase
Bank NA | | Japan Value Index†† | | Pay | | SOFR + 0.00% | | Quarterly | | 9/22/25 | | | 11,674 | | | | 262 | | | | — | | | | 262 | | |
JPMorgan Chase
Bank NA | | Korea Value Index | | Pay | | SOFR + 0.16% | | Quarterly | | 9/23/25 | | | 2,342 | | | | 36 | | | | — | | | | 36 | | |
JPMorgan Chase
Bank NA | | MSCI Japan Net Total
Return USD Index | | Pay | | SOFR + 0.18% | | Quarterly | | 10/8/24 | | | 1,543 | | | | 19 | | | | — | | | | 19 | | |
JPMorgan Chase
Bank NA | | U.S. Broad Anti-Value
Index†† | | Receive | | SOFR + 0.60% | | Quarterly | | 9/24/25 | | | 7,026 | | | | (16) | | | | — | | | | (16) | | |
JPMorgan Chase
Bank NA | | U.S. Broad Value
Index†† | | Pay | | SOFR + 0.60% | | Quarterly | | 9/24/25 | | | 7,003 | | | | 51 | | | | — | | | | 51 | | |
UBS AG | | MSCI USA Index | | Pay | | SOFR + 0.00% | | Quarterly | | 9/23/25 | | | 65,755 | | | | 684 | | | | — | | | | 684 | | |
| | | | | | | | | | | | | | | $ | 4,147 | | | $ | — | | | $ | 4,147 | | |
†† See tables below for details of the equity basket holdings underlying the swaps.
The accompanying notes are an integral part of the consolidated financial statements.
25
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
The following table represents the equity basket top 50 individual holdings underlying the total return swap with EM Value Quality Index as of September 30, 2024:
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
EM Value Quality Index | |
Absa Group Ltd. | | | 1,189 | | | $ | 12 | | | | 0.00 | %‡ | |
Abu Dhabi Islamic Bank | | | 2,831 | | | | 10 | | | | 0.00 | ‡ | |
Akbank T.A.S. | | | 4,265 | | | | 8 | | | | 0.00 | ‡ | |
Ambev SA | | | 8,048 | | | | 19 | | | | 0.00 | ‡ | |
Astra International Tbk. PT | | | 24,416 | | | | 8 | | | | 0.00 | ‡ | |
Asustek Computer, Inc. | | | 2,591 | | | | 45 | | | | 0.01 | | |
Banco Do Brasil SA | | | 2,450 | | | | 12 | | | | 0.00 | ‡ | |
Bank Pekao SA | | | 258 | | | | 10 | | | | 0.00 | ‡ | |
BB Seguridade Participacoes | | | 1,009 | | | | 7 | | | | 0.00 | ‡ | |
Cemex SAB-CPO | | | 12,971 | | | | 8 | | | | 0.00 | ‡ | |
Cia Energetica Minas
Ger — Pref | | | 4,044 | | | | 8 | | | | 0.00 | ‡ | |
Commercial Bank PSQC | | | 4,673 | | | | 6 | | | | 0.00 | ‡ | |
Commercial Internattional
Bank — GDR Reg | | | 3,379 | | | | 6 | | | | 0.00 | ‡ | |
Compal Electronics | | | 15,850 | | | | 17 | | | | 0.00 | ‡ | |
Dubai Islamic Bank | | | 6,167 | | | | 11 | | | | 0.00 | ‡ | |
Emaar Properties PJSC | | | 3,350 | | | | 8 | | | | 0.00 | ‡ | |
Emirates NBD PJSC | | | 2,670 | | | | 15 | | | | 0.00 | ‡ | |
Eurobank Ergasias Services
and Holdings SA | | | 3,714 | | | | 9 | | | | 0.00 | ‡ | |
Evergreen Marine Corp. Ltd. | | | 1,281 | | | | 8 | | | | 0.00 | ‡ | |
Gruma SAB. — Class B | | | 315 | | | | 6 | | | | 0.00 | ‡ | |
Grupo Financiero Banorte | | | 3,707 | | | | 26 | | | | 0.00 | ‡ | |
Grupo Mexico SAB de
CV — Ser B | | | 2,727 | | | | 15 | | | | 0.00 | ‡ | |
Hellenic Telecommun Organiza | | | 364 | | | | 6 | | | | 0.00 | ‡ | |
Hyundai Mobis Co. Ltd. | | | 39 | | | | 6 | | | | 0.00 | ‡ | |
Hyundai Motor Co. | | | 89 | | | | 16 | | | | 0.00 | ‡ | |
Itau Unibanco Holding
SA — Pref | | | 6,884 | | | | 46 | | | | 0.01 | | |
Itausa SA | | | 7,710 | | | | 16 | | | | 0.00 | ‡ | |
Kalbe Farma TBK. PT | | | 55,893 | | | | 6 | | | | 0.00 | ‡ | |
Kia Corp. | | | 156 | | | | 12 | | | | 0.00 | ‡ | |
LG Innotek Co. Ltd. | | | 52 | | | | 9 | | | | 0.00 | ‡ | |
Lite-On Technology Corp. | | | 7,877 | | | | 25 | | | | 0.00 | ‡ | |
Meritz Financial Group, Inc. | | | 135 | | | | 10 | | | | 0.00 | ‡ | |
National Bank of Greece | | | 1,112 | | | | 10 | | | | 0.00 | ‡ | |
OTP Bank PLC | | | 317 | | | | 17 | | | | 0.00 | ‡ | |
Pegatron Corp. | | | 7,268 | | | | 24 | | | | 0.00 | ‡ | |
Petroleo Brasileiro SA | | | 2,211 | | | | 16 | | | | 0.00 | ‡ | |
Petroleo Brasileiro SA — Pref | | | 2,677 | | | | 18 | | | | 0.00 | ‡ | |
Powszechny Zaklad Ubezpiecze | | | 814 | | | | 9 | | | | 0.00 | ‡ | |
Realtek Semiconductor Corp | | | 1,810 | | | | 27 | | | | 0.00 | ‡ | |
Richter Gedeon Nyrt | | | 384 | | | | 12 | | | | 0.00 | ‡ | |
Samsung C&T Corp. | | | 111 | | | | 12 | | | | 0.00 | ‡ | |
Samsung Electro-Mechanics Co. | | | 206 | | | | 21 | | | | 0.00 | ‡ | |
Samsung Electronics — Pref | | | 3,027 | | | | 117 | | | | 0.02 | | |
Samsung SDS Co. Ltd. | | | 157 | | | | 18 | | | | 0.00 | ‡ | |
Telkom Indonesia Persero
Tbk. PT | | | 95,864 | | | | 19 | | | | 0.00 | ‡ | |
Turk Hava Yollari AO | | | 682 | | | | 6 | | | | 0.00 | ‡ | |
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
EM Value Quality Index (cont'd) | |
Vale SA | | | 3,053 | | | $ | 36 | | | | 0.01 | % | |
Vodacom Group Ltd. | | | 1,201 | | | | 8 | | | | 0.00 | ‡ | |
Wistron Corp. | | | 10,309 | | | | 33 | | | | 0.01 | | |
Zhen Ding Technology
Holding Ltd. | | | 2,574 | | | | 9 | | | | 0.00 | ‡ | |
The following table represents the equity basket holdings underlying the total return swap with EMU Anti-Value and Quality Index as of September 30, 2024:
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
EMU Anti-Value and Quality Index | |
Accor SA | | | 606 | | | $ | 24 | | | | 0.00 | %‡ | |
Adidas AG | | | 106 | | | | 25 | | | | 0.00 | ‡ | |
ADP | | | 201 | | | | 23 | | | | 0.00 | ‡ | |
Adyen NV | | | 18 | | | | 25 | | | | 0.00 | ‡ | |
Airbus SE | | | 180 | | | | 24 | | | | 0.00 | ‡ | |
Anheuser-Busch Inbev SA | | | 400 | | | | 24 | | | | 0.00 | ‡ | |
Argenx SE | | | 48 | | | | 23 | | | | 0.00 | ‡ | |
ASM International NV | | | 41 | | | | 24 | | | | 0.00 | ‡ | |
BE Semiconductor Industries NV | | | 209 | | | | 24 | | | | 0.00 | ‡ | |
Bollore SE | | | 3,870 | | | | 23 | | | | 0.00 | ‡ | |
Cellnex Telecom SA | | | 639 | | | | 23 | | | | 0.00 | ‡ | |
Davide Campari-Milano NV | | | 3,059 | | | | 23 | | | | 0.00 | ‡ | |
Delivery Hero SE | | | 836 | | | | 30 | | | | 0.00 | ‡ | |
Dsm-Firmenich AG | | | 193 | | | | 24 | | | | 0.00 | ‡ | |
Edenred | | | 654 | | | | 22 | | | | 0.00 | ‡ | |
EDP Renovaveis SA | | | 1,476 | | | | 23 | | | | 0.00 | ‡ | |
EDP SA | | | 5,668 | | | | 23 | | | | 0.00 | ‡ | |
Elia Group SA | | | 220 | | | | 23 | | | | 0.00 | ‡ | |
Eni SpA | | | 1,648 | | | | 23 | | | | 0.00 | ‡ | |
Eurazeo SE | | | 322 | | | | 24 | | | | 0.00 | ‡ | |
Euronext NV | | | 231 | | | | 23 | | | | 0.00 | ‡ | |
Ferrovial SE | | | 616 | | | | 24 | | | | 0.00 | ‡ | |
Gecina SA | | | 217 | | | | 22 | | | | 0.00 | ‡ | |
Getlink SE | | | 1,438 | | | | 23 | | | | 0.00 | ‡ | |
Groupe Bruxelles Lambert NV | | | 338 | | | | 24 | | | | 0.00 | ‡ | |
Hermes International | | | 12 | | | | 27 | | | | 0.00 | ‡ | |
Infrastrutture Wireless
Italiane SpA | | | 2,119 | | | | 23 | | | | 0.00 | ‡ | |
Inpost SA | | | 1,362 | | | | 23 | | | | 0.00 | ‡ | |
Lotus Bakeries | | | 2 | | | | 23 | | | | 0.00 | ‡ | |
MTU Aero Engines AG | | | 84 | | | | 24 | | | | 0.00 | ‡ | |
Nexi SpA | | | 3,827 | | | | 23 | | | | 0.00 | ‡ | |
NN Group NV | | | 520 | | | | 23 | | | | 0.00 | ‡ | |
OCI NV | | | 866 | | | | 22 | | | | 0.00 | ‡ | |
Pernod Ricard SA | | | 184 | | | | 25 | | | | 0.00 | ‡ | |
Prosus NV | | | 721 | | | | 28 | | | | 0.00 | ‡ | |
Safran SA | | | 114 | | | | 24 | | | | 0.00 | ‡ | |
Sartorius AG | | | 97 | | | | 24 | | | | 0.00 | ‡ | |
Sartorius Stedim Biotech | | | 127 | | | | 24 | | | | 0.00 | ‡ | |
Siemens Energy AG | | | 799 | | | | 26 | | | | 0.00 | ‡ | |
Sofina SA | | | 92 | | | | 23 | | | | 0.00 | ‡ | |
Symrise AG | | | 193 | | | | 24 | | | | 0.00 | ‡ | |
Talanx Ag | | | 304 | | | | 23 | | | | 0.00 | ‡ | |
UCB SA | | | 141 | | | | 23 | | | | 0.00 | ‡ | |
The accompanying notes are an integral part of the consolidated financial statements.
26
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
The following table represents the equity basket holdings underlying the total return swap with EMU Domestics Index as of September 30, 2024:
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
EMU Domestics Index | |
ADP | | | 249 | | | $ | 29 | | | | 0.00 | %‡ | |
Aena SME SA | | | 263 | | | | 52 | | | | 0.01 | | |
Basic-Fit NV | | | 326 | | | | 8 | | | | 0.00 | ‡ | |
Bechtle AG | | | 477 | | | | 19 | | | | 0.00 | ‡ | |
Bouygues SA | | | 957 | | | | 29 | | | | 0.00 | ‡ | |
Capgemini SE | | | 406 | | | | 79 | | | | 0.01 | | |
Compagnie De Saint Gobain | | | 1,181 | | | | 96 | | | | 0.02 | | |
Deutsche Lufthansa — Reg | | | 3,894 | | | | 26 | | | | 0.00 | ‡ | |
D'Ieteren Group | | | 134 | | | | 25 | | | | 0.00 | ‡ | |
Eiffage | | | 356 | | | | 31 | | | | 0.01 | | |
Exclusive Networks SA | | | 89 | | | | 2 | | | | 0.00 | ‡ | |
Fraport Ag Frankfurt Airport | | | 313 | | | | 16 | | | | 0.00 | ‡ | |
Getlink SE | | | 1,986 | | | | 32 | | | | 0.01 | | |
Indra Sistemas SA | | | 958 | | | | 16 | | | | 0.00 | ‡ | |
Industria de Diseno Textil SA | | | 2,512 | | | | 133 | | | | 0.02 | | |
Iveco Group NV | | | 2,828 | | | | 26 | | | | 0.00 | ‡ | |
Kingspan Group PLC | | | 577 | | | | 49 | | | | 0.01 | | |
La Francaise des Jeux SAEM | | | 504 | | | | 19 | | | | 0.00 | ‡ | |
Prosiebensat.1 Media SE | | | 1,885 | | | | 11 | | | | 0.00 | ‡ | |
Randstad NV | | | 627 | | | | 28 | | | | 0.00 | ‡ | |
Rheinmetall AG | | | 150 | | | | 73 | | | | 0.01 | | |
Scout24 SE | | | 461 | | | | 36 | | | | 0.01 | | |
Stora Enso OYJ — Class R | | | 2,879 | | | | 33 | | | | 0.01 | | |
Vinci SA | | | 1,089 | | | | 114 | | | | 0.02 | | |
Vivendi SE | | | 3,420 | | | | 35 | | | | 0.01 | | |
Zalando SE | | | 1,570 | | | | 46 | | | | 0.01 | | |
The following table represents the equity basket holdings underlying the total return swap with EMU Value and Quality Index as of September 30, 2024:
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
EMU Value and Quality Index | |
AIB Group PLC | | | 4,367 | | | $ | 22 | | | | 0.00 | %‡ | |
Arkema | | | 294 | | | | 25 | | | | 0.00 | ‡ | |
Banco Bilbao Vizcaya Argenta | | | 2,495 | | | | 24 | | | | 0.00 | ‡ | |
Banco Santander SA | | | 5,237 | | | | 24 | | | | 0.00 | ‡ | |
Bayer AG — Reg | | | 871 | | | | 26 | | | | 0.00 | ‡ | |
Capgemini SE | | | 122 | | | | 24 | | | | 0.00 | ‡ | |
Carrefour SA | | | 1,516 | | | | 23 | | | | 0.00 | ‡ | |
Compagnie De Saint Gobain | | | 296 | | | | 24 | | | | 0.00 | ‡ | |
Covivio | | | 424 | | | | 23 | | | | 0.00 | ‡ | |
Daimler Truck Holding AG | | | 749 | | | | 25 | | | | 0.00 | ‡ | |
DHL Group | | | 587 | | | | 23 | | | | 0.00 | ‡ | |
Dr. Ing hcf Porsche AG | | | 363 | | | | 26 | | | | 0.00 | ‡ | |
Eiffage | | | 252 | | | | 22 | | | | 0.00 | ‡ | |
Enel SpA | | | 3,261 | | | | 23 | | | | 0.00 | ‡ | |
Engie SA | | | 1,456 | | | | 23 | | | | 0.00 | ‡ | |
Erste Group Bank AG | | | 487 | | | | 24 | | | | 0.00 | ‡ | |
Exor NV | | | 238 | | | | 23 | | | | 0.00 | ‡ | |
Fortum OYJ | | | 1,658 | | | | 25 | | | | 0.00 | ‡ | |
Fresenius Medical Care AG | | | 624 | | | | 24 | | | | 0.00 | ‡ | |
Fresenius SE & Co. KGaA | | | 683 | | | | 23 | | | | 0.00 | ‡ | |
Heidelberg Materials AG | | | 248 | | | | 24 | | | | 0.00 | ‡ | |
Henkel AG & Co. KGaA | | | 319 | | | | 24 | | | | 0.00 | ‡ | |
Intesa Sanpaolo | | | 6,220 | | | | 24 | | | | 0.00 | ‡ | |
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
EMU Value and Quality Index (cont'd) | |
Ipsen | | | 212 | | | $ | 23 | | | | 0.00 | %‡ | |
Jeronimo Martins | | | 1,388 | | | | 24 | | | | 0.00 | ‡ | |
Koninklijke Ahold Delhaize NV | | | 750 | | | | 23 | | | | 0.00 | ‡ | |
Koninklijke KPN NV | | | 6,233 | | | | 23 | | | | 0.00 | ‡ | |
Leonardo SpA | | | 1,119 | | | | 22 | | | | 0.00 | ‡ | |
Mercedes-Benz Group AG | | | 432 | | | | 25 | | | | 0.00 | ‡ | |
Michelin | | | 675 | | | | 25 | | | | 0.00 | ‡ | |
Nordea Bank Abp | | | 2,242 | | | | 24 | | | | 0.00 | ‡ | |
Orange SA | | | 2,133 | | | | 22 | | | | 0.00 | ‡ | |
Poste Italiane SpA | | | 1,835 | | | | 23 | | | | 0.00 | ‡ | |
Publicis Groupe SA | | | 240 | | | | 24 | | | | 0.00 | ‡ | |
Randstad NV | | | 546 | | | | 24 | | | | 0.00 | ‡ | |
SEB SA | | | 212 | | | | 22 | | | | 0.00 | ‡ | |
Stellantis NV | | | 1,711 | | | | 21 | | | | 0.00 | ‡ | |
Stmicroelectronics NV | | | 934 | | | | 25 | | | | 0.00 | ‡ | |
Syensqo SA | | | 324 | | | | 26 | | | | 0.00 | ‡ | |
Teleperformance | | | 233 | | | | 22 | | | | 0.00 | ‡ | |
Tenaris SA | | | 1,814 | | | | 26 | | | | 0.00 | ‡ | |
Unicredit SpA | | | 627 | | | | 25 | | | | 0.00 | ‡ | |
Vinci SA | | | 212 | | | | 22 | | | | 0.00 | ‡ | |
The following table represents the equity basket top 50 individual holdings underlying the total return swap with U.S. Domestics Index as of September 30, 2024:
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
U.S. Domestics Index | |
Arista Networks, Inc. | | | 66 | | | $ | 25 | | | | 0.00 | %‡ | |
Automatic Data Processing | | | 105 | | | | 29 | | | | 0.00 | ‡ | |
Autozone, Inc. | | | 5 | | | | 14 | | | | 0.00 | ‡ | |
CDW Corp. | | | 34 | | | | 8 | | | | 0.00 | ‡ | |
Charter Communications,
Inc. — Class A | | | 25 | | | | 8 | | | | 0.00 | ‡ | |
Cintas Corp. | | | 92 | | | | 19 | | | | 0.00 | ‡ | |
Cognizant Tech
Solutions — Class A | | | 128 | | | | 10 | | | | 0.00 | ‡ | |
Comcast Corp. — Class A | | | 1,047 | | | | 44 | | | | 0.01 | | |
Copart, Inc. | | | 215 | | | | 11 | | | | 0.00 | ‡ | |
Crowdstrike Holdings,
Inc. — Class A | | | 53 | | | | 15 | | | | 0.00 | ‡ | |
CSX Corp. | | | 507 | | | | 18 | | | | 0.00 | ‡ | |
Datadog, Inc. — Class A | | | 64 | | | | 7 | | | | 0.00 | ‡ | |
Doordash, Inc. — Class A | | | 61 | | | | 9 | | | | 0.00 | ‡ | |
DR Horton, Inc. | | | 76 | | | | 14 | | | | 0.00 | ‡ | |
Equifax, Inc. | | | 31 | | | | 9 | | | | 0.00 | ‡ | |
Fair Isaac Corp. | | | 6 | | | | 12 | | | | 0.00 | ‡ | |
Fastenal Co. | | | 143 | | | | 10 | | | | 0.00 | ‡ | |
Fedex Corp. | | | 60 | | | | 16 | | | | 0.00 | ‡ | |
Hilton Worldwide Holdings, Inc. | | | 66 | | | | 15 | | | | 0.00 | ‡ | |
Home Depot, Inc. | | | 247 | | | | 100 | | | | 0.02 | | |
Lennar Corp. — Class A | | | 61 | | | | 11 | | | | 0.00 | ‡ | |
Lowe's Cos, Inc. | | | 144 | | | | 39 | | | | 0.01 | | |
Lululemon Athletica, Inc. | | | 30 | | | | 8 | | | | 0.00 | ‡ | |
Marriott International — Class A | | | 64 | | | | 16 | | | | 0.00 | ‡ | |
Martin Marietta Materials | | | 16 | | | | 8 | | | | 0.00 | ‡ | |
Norfolk Southern Corp. | | | 58 | | | | 14 | | | | 0.00 | ‡ | |
NVR, Inc. | | | 1 | | | | 8 | | | | 0.00 | ‡ | |
The accompanying notes are an integral part of the consolidated financial statements.
27
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
U.S. Domestics Index (cont'd) | |
Old Dominion Freight Line | | | 50 | | | $ | 10 | | | | 0.00 | %‡ | |
O'Reilly Automotive, Inc. | | | 15 | | | | 17 | | | | 0.00 | ‡ | |
Pultegroup, Inc. | | | 55 | | | | 8 | | | | 0.00 | ‡ | |
Quanta Services, Inc. | | | 37 | | | | 11 | | | | 0.00 | ‡ | |
Republic Services, Inc. | | | 56 | | | | 11 | | | | 0.00 | ‡ | |
Roper Technologies, Inc. | | | 27 | | | | 15 | | | | 0.00 | ‡ | |
Ross Stores, Inc. | | | 85 | | | | 13 | | | | 0.00 | ‡ | |
Sherwin-Williams Co. | | | 62 | | | | 24 | | | | 0.00 | ‡ | |
Snowflake, Inc. — Class A | | | 70 | | | | 8 | | | | 0.00 | ‡ | |
Starbucks Corp. | | | 292 | | | | 28 | | | | 0.00 | ‡ | |
TJX Companies, Inc. | | | 286 | | | | 34 | | | | 0.01 | | |
Tractor Supply Company | | | 28 | | | | 8 | | | | 0.00 | ‡ | |
Trane Technologies PLC | | | 57 | | | | 22 | | | | 0.00 | ‡ | |
Union Pacific Corp. | | | 155 | | | | 38 | | | | 0.01 | | |
United Parcel Service — Class B | | | 182 | | | | 25 | | | | 0.00 | ‡ | |
United Rentals, Inc. | | | 17 | | | | 14 | | | | 0.00 | ‡ | |
Verisk Analytics, Inc. | | | 36 | | | | 10 | | | | 0.00 | ‡ | |
Vulcan Materials Co. | | | 33 | | | | 8 | | | | 0.00 | ‡ | |
Walt Disney Co. | | | 475 | | | | 46 | | | | 0.01 | | |
Waste Connections, Inc. | | | 65 | | | | 12 | | | | 0.00 | ‡ | |
Waste Management, Inc. | | | 102 | | | | 21 | | | | 0.00 | ‡ | |
Workday, Inc. — Class A | | | 52 | | | | 13 | | | | 0.00 | ‡ | |
WW Grainger, Inc. | | | 11 | | | | 12 | | | | 0.00 | ‡ | |
The following table represents the equity basket holdings underlying the total return swap with Japan Growth Index as of September 30, 2024:
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
Japan Growth Index | |
Advantest Corp. | | | 162,279 | | | $ | 7,643 | | | | 1.24 | % | |
Ajinomoto Co, Inc. | | | 182,708 | | | | 7,080 | | | | 1.15 | | |
ASICS Corp. | | | 358,866 | | | | 7,525 | | | | 1.23 | | |
Capcom Co. Ltd. | | | 303,609 | | | | 7,060 | | | | 1.15 | | |
Chugai Pharmaceutical
Co. Ltd. | | | 142,565 | | | | 6,905 | | | | 1.12 | | |
Daifuku Co. Ltd. | | | 372,491 | | | | 7,187 | | | | 1.17 | | |
Daiichi Sankyo Co. Ltd. | | | 196,878 | | | | 6,478 | | | | 1.05 | | |
Disco Corp. | | | 28,642 | | | | 7,503 | | | | 1.22 | | |
Fanuc Corp. | | | 258,698 | | | | 7,574 | | | | 1.23 | | |
Fast Retailing Co. Ltd. | | | 22,341 | | | | 7,402 | | | | 1.21 | | |
Hitachi Ltd. | | | 286,697 | | | | 7,574 | | | | 1.23 | | |
Hoya Corp. | | | 50,767 | | | | 7,018 | | | | 1.14 | | |
Japan Exchange Group, Inc. | | | 578,930 | | | | 7,506 | | | | 1.22 | | |
Keyence Corp. | | | 14,818 | | | | 7,078 | | | | 1.15 | | |
Kobe Bussan Co. Ltd. | | | 214,008 | | | | 6,765 | | | | 1.10 | | |
Konami Group Corp. | | | 70,637 | | | | 7,179 | | | | 1.17 | | |
Lasertec Corp. | | | 43,877 | | | | 7,237 | | | | 1.18 | | |
Mitsubishi Heavy Industries | | | 535,874 | | | | 7,928 | | | | 1.29 | | |
Monotaro Co. Ltd. | | | 407,950 | | | | 6,834 | | | | 1.11 | | |
MS&AD Insurance Group
Holdings, Inc. | | | 313,537 | | | | 7,295 | | | | 1.19 | | |
Nippon Building Fund, Inc. | | | 7,238 | | | | 6,666 | | | | 1.09 | | |
Nippon Prologis REIT, Inc. | | | 3,651 | | | | 6,280 | | | | 1.02 | | |
Nippon Sanso Holdings Corp. | | | 187,838 | | | | 6,842 | | | | 1.11 | | |
Nomura Research Institute Ltd. | | | 191,390 | | | | 7,088 | | | | 1.15 | | |
Obic Co. Ltd. | | | 190,389 | | | | 6,713 | | | | 1.09 | | |
Oriental Land Co. Ltd. | | | 250,607 | | | | 6,475 | | | | 1.05 | | |
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
Japan Growth Index (cont'd) | |
Recruit Holdings Co. Ltd. | | | 113,456 | | | $ | 6,901 | | | | 1.12 | % | |
Secom Co. Ltd. | | | 176,789 | | | | 6,539 | | | | 1.06 | | |
Shimano, Inc. | | | 38,843 | | | | 7,374 | | | | 1.20 | | |
Shin-Etsu Chemical Co. Ltd. | | | 173,477 | | | | 7,245 | | | | 1.18 | | |
SMC Corp. | | | 16,397 | | | | 7,292 | | | | 1.19 | | |
Sumitomo Mitsui Trust Group | | | 291,382 | | | | 6,904 | | | | 1.12 | | |
Tokio Marine Holdings, Inc. | | | 198,415 | | | | 7,252 | | | | 1.18 | | |
Tokyo Gas Co. Ltd. | | | 290,439 | | | | 6,772 | | | | 1.10 | | |
Trend Micro, Inc. | | | 110,098 | | | | 6,528 | | | | 1.06 | | |
Unicharm Corp. | | | 192,670 | | | | 6,977 | | | | 1.14 | | |
Yaskawa Electric Corp. | | | 223,143 | | | | 7,793 | | | | 1.27 | | |
Zozo, Inc. | | | 198,814 | | | | 7,243 | | | | 1.18 | | |
The following table represents the equity basket holdings underlying the total return swap with Japan Value Index as of September 30, 2024:
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
Japan Value Index | |
Asahi Group Holdings Ltd. | | | 515,148 | | | $ | 6,762 | | | | 1.10 | % | |
Brother Industries Ltd. | | | 339,342 | | | | 6,591 | | | | 1.07 | | |
Canon, Inc. | | | 198,875 | | | | 6,535 | | | | 1.06 | | |
Daiwa House Industry Co. Ltd. | | | 205,763 | | | | 6,477 | | | | 1.05 | | |
Dentsu Group, Inc. | | | 223,316 | | | | 6,876 | | | | 1.12 | | |
Hitachi Construction Machine | | | 281,318 | | | | 6,823 | | | | 1.11 | | |
Honda Motor Co. Ltd. | | | 644,383 | | | | 6,787 | | | | 1.11 | | |
JFE Holdings, Inc. | | | 507,910 | | | | 6,808 | | | | 1.11 | | |
Kansai Electric Power Co., Inc. | | | 400,346 | | | | 6,630 | | | | 1.08 | | |
Kirin Holdings Co. Ltd. | | | 431,636 | | | | 6,593 | | | | 1.07 | | |
Komatsu Ltd. | | | 256,271 | | | | 7,102 | | | | 1.16 | | |
Kubota Corp. | | | 488,488 | | | | 6,932 | | | | 1.13 | | |
Kyocera Corp. | | | 563,027 | | | | 6,530 | | | | 1.06 | | |
Marubeni Corp. | | | 425,355 | | | | 6,954 | | | | 1.13 | | |
Mazda Motor Corp. | | | 905,430 | | | | 6,769 | | | | 1.10 | | |
Mitsui & Co. Ltd. | | | 332,479 | | | | 7,383 | | | | 1.20 | | |
Mizuho Financial Group, Inc. | | | 341,727 | | | | 7,010 | | | | 1.14 | | |
Nippon Steel Corp. | | | 313,100 | | | | 6,996 | | | | 1.14 | | |
Nippon Telegraph &
Telephone | | | 6,329,117 | | | | 6,492 | | | | 1.06 | | |
Nippon Yusen Kabushiki
Kaisha | | | 193,990 | | | | 7,075 | | | | 1.15 | | |
Nissan Motor Co. Ltd. | | | 2,454,057 | | | | 6,902 | | | | 1.12 | | |
Nomura Holdings, Inc. | | | 1,263,211 | | | | 6,558 | | | | 1.07 | | |
Nomura Real Estate Holdings | | | 241,391 | | | | 6,461 | | | | 1.05 | | |
Ono Pharmaceutical Co. Ltd. | | | 492,069 | | | | 6,572 | | | | 1.07 | | |
Panasonic Holdings Corp. | | | 781,917 | | | | 6,791 | | | | 1.11 | | |
Renesas Electronics Corp. | | | 464,015 | | | | 6,740 | | | | 1.10 | | |
Ricoh Co. Ltd. | | | 624,226 | | | | 6,728 | | | | 1.10 | | |
Rohm Co. Ltd. | | | 627,413 | | | | 7,040 | | | | 1.15 | | |
SBI Holdings, Inc. | | | 292,362 | | | | 6,731 | | | | 1.10 | | |
Seiko Epson Corp. | | | 366,099 | | | | 6,752 | | | | 1.10 | | |
Seven & I Holdings Co. Ltd. | | | 435,296 | | | | 6,530 | | | | 1.06 | | |
Shionogi & Co. Ltd. | | | 442,602 | | | | 6,350 | | | | 1.03 | | |
Shizuoka Financial Group, Inc. | | | 764,469 | | | | 6,647 | | | | 1.08 | | |
Subaru Corp. | | | 401,332 | | | | 6,960 | | | | 1.13 | | |
Sumitomo Corp. | | | 300,999 | | | | 6,717 | | | | 1.09 | | |
Takeda Pharmaceutical
Co. Ltd. | | | 222,924 | | | | 6,391 | | | | 1.04 | | |
The accompanying notes are an integral part of the consolidated financial statements.
28
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
Japan Value Index (cont'd) | |
Toyota Industries Corp. | | | 89,039 | | | $ | 6,859 | | | | 1.12 | % | |
Toyota Tsusho Corp. | | | 375,318 | | | | 6,779 | | | | 1.10 | | |
The following table represents the equity basket top 50 individual holdings underlying the total return swap with U.S. Broad Anti-Value Index as of September 30, 2024:
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
U.S. Broad Anti-Value Index | |
Acadia Realty Trust | | | 1,963 | | | $ | 46 | | | | 0.01 | % | |
Air Products & Chemicals, Inc. | | | 155 | | | | 46 | | | | 0.01 | | |
Apple, Inc. | | | 199 | | | | 46 | | | | 0.01 | | |
Aptargroup, Inc. | | | 289 | | | | 46 | | | | 0.01 | | |
Arlo Technologies, Inc. | | | 3,804 | | | | 46 | | | | 0.01 | | |
Astera Labs, Inc. | | | 889 | | | | 47 | | | | 0.01 | | |
Chemed Corp. | | | 77 | | | | 46 | | | | 0.01 | | |
Cogent Communications
Holdings, Inc. | | | 620 | | | | 47 | | | | 0.01 | | |
Cognex Corp | | | 1,142 | | | | 46 | | | | 0.01 | | |
Corcept Therapeutics Inc | | | 1,053 | | | | 49 | | | | 0.01 | | |
Corvel Corp | | | 142 | | | | 46 | | | | 0.01 | | |
Crane Co | | | 296 | | | | 47 | | | | 0.01 | | |
Dayforce Inc | | | 761 | | | | 47 | | | | 0.01 | | |
Deckers Outdoor Corp | | | 295 | | | | 47 | | | | 0.01 | | |
Doordash, Inc. — Class A | | | 323 | | | | 46 | | | | 0.01 | | |
Duolingo | | | 168 | | | | 47 | | | | 0.01 | | |
Eversource Energy | | | 678 | | | | 46 | | | | 0.01 | | |
Expeditors International Wash, Inc. | | | 360 | | | | 47 | | | | 0.01 | | |
Exponent, Inc. | | | 407 | | | | 47 | | | | 0.01 | | |
Floor & Decor Holdings,
Inc. — Class A | | | 377 | | | | 47 | | | | 0.01 | | |
Graco, Inc. | | | 527 | | | | 46 | | | | 0.01 | | |
Green Plains, Inc. | | | 3,470 | | | | 47 | | | | 0.01 | | |
Guidewire Software, Inc. | | | 259 | | | | 47 | | | | 0.01 | | |
Hawkins, Inc. | | | 374 | | | | 48 | | | | 0.01 | | |
IDESX Corp. | | | 215 | | | | 46 | | | | 0.01 | | |
Illinois Tool Works | | | 176 | | | | 46 | | | | 0.01 | | |
Jetblue Airways Corp. | | | 7,814 | | | | 51 | | | | 0.01 | | |
Liberty Media Corp. —
Liberty — Class A | | | 1,060 | | | | 52 | | | | 0.01 | | |
Liberty Media Corp. —
Liberty — Class C | | | 1,041 | | | | 53 | | | | 0.01 | | |
Microstrategy, Inc. — Class A | | | 303 | | | | 51 | | | | 0.01 | | |
Monolithic Power Systems, Inc. | | | 51 | | | | 47 | | | | 0.01 | | |
MP Materials Corp. | | | 3,189 | | | | 56 | | | | 0.01 | | |
MSCI, Inc. | | | 81 | | | | 47 | | | | 0.01 | | |
Nike, Inc. — Class B | | | 525 | | | | 46 | | | | 0.01 | | |
Nordson Corp. | | | 177 | | | | 46 | | | | 0.01 | | |
Nvidia Corp. | | | 389 | | | | 47 | | | | 0.01 | | |
Repligen Corp. | | | 321 | | | | 48 | | | | 0.01 | | |
RXO, Inc. | | | 1,701 | | | | 48 | | | | 0.01 | | |
Ryan Specialty Holdings, Inc. | | | 702 | | | | 47 | | | | 0.01 | | |
Sharkninja, Inc. | | | 431 | | | | 47 | | | | 0.01 | | |
Sitime Corp. | | | 276 | | | | 47 | | | | 0.01 | | |
Snowflake, Inc. — Class A | | | 401 | | | | 46 | | | | 0.01 | | |
Southern Copper Corp. | | | 426 | | | | 49 | | | | 0.01 | | |
Sprouts Farmers Market, Inc. | | | 418 | | | | 46 | | | | 0.01 | | |
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
U.S. Broad Anti-Value Index (cont'd) | |
Tanger, Inc. | | | 1,403 | | | $ | 47 | | | | 0.01 | % | |
Tesla, Inc. | | | 182 | | | | 48 | | | | 0.01 | | |
Under Armour, Inc. — Class A | | | 5,836 | | | | 52 | | | | 0.01 | | |
Vertiv Holdings Co. — Class A | | | 470 | | | | 47 | | | | 0.01 | | |
Wayfair, Inc. — Class A | | | 853 | | | | 48 | | | | 0.01 | | |
Xpel, Inc. | | | 1,072 | | | | 46 | | | | 0.01 | | |
The following table represents the equity basket top 50 individual holdings underlying the total return swap with U.S. Broad Value Index as of September 30, 2024:
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
U.S. Broad Value Index | |
A10 Networks, Inc. | | | 3,056 | | | $ | 44 | | | | 0.01 | % | |
Agco Corp. | | | 448 | | | | 44 | | | | 0.01 | | |
Alpha Metallurgical Resource | | | 198 | | | | 47 | | | | 0.01 | | |
AMC Networks, Inc. — Class A | | | 5,403 | | | | 47 | | | | 0.01 | | |
Arch Resources Inc | | | 329 | | | | 45 | | | | 0.01 | | |
Asbury Automotive Group | | | 186 | | | | 44 | | | | 0.01 | | |
Borgwarner, Inc. | | | 1,238 | | | | 45 | | | | 0.01 | | |
Bristol-Myers Squibb Co. | | | 847 | | | | 44 | | | | 0.01 | | |
Celanese Corp. | | | 332 | | | | 45 | | | | 0.01 | | |
| CNH Industrial NV | | | 3,931 | | | | 44 | | | | 0.01 | | |
CSG Systems International, Inc. | | | 899 | | | | 44 | | | | 0.01 | | |
CVS Health Corp. | | | 734 | | | | 46 | | | | 0.01 | | |
Designer Brands, Inc. — Class A | | | 6,239 | | | | 46 | | | | 0.01 | | |
Dine Brands Global, Inc. | | | 1,429 | | | | 45 | | | | 0.01 | | |
Diodes, Inc. | | | 713 | | | | 46 | | | | 0.01 | | |
Energizer Holdings, Inc. | | | 1,441 | | | | 46 | | | | 0.01 | | |
Fedex Corp. | | | 163 | | | | 45 | | | | 0.01 | | |
FMC Corp. | | | 668 | | | | 44 | | | | 0.01 | | |
Guess?, Inc. | | | 2,189 | | | | 44 | | | | 0.01 | | |
Helen of Troy Ltd. | | | 705 | | | | 44 | | | | 0.01 | | |
Hewlett Packard Enterprise | | | 2,253 | | | | 46 | | | | 0.01 | | |
Integra Lifesciences Holding | | | 2,421 | | | | 44 | | | | 0.01 | | |
Intel Corp. | | | 1,881 | | | | 44 | | | | 0.01 | | |
Jack In The Box, Inc. | | | 957 | | | | 45 | | | | 0.01 | | |
Kohls Corp. | | | 2,260 | | | | 48 | | | | 0.01 | | |
MGM Resorts International | | | 1,148 | | | | 45 | | | | 0.01 | | |
Minerals Technologies, Inc. | | | 574 | | | | 44 | | | | 0.01 | | |
Mosaic Co. | | | 1,663 | | | | 45 | | | | 0.01 | | |
Newell Brands, Inc. | | | 5,830 | | | | 45 | | | | 0.01 | | |
NRG Energy, Inc. | | | 480 | | | | 44 | | | | 0.01 | | |
Owens & Minor, Inc. | | | 2,794 | | | | 44 | | | | 0.01 | | |
Pacira Biosciences, Inc. | | | 2,962 | | | | 45 | | | | 0.01 | | |
Peabody Energy Corp. | | | 1,791 | | | | 48 | | | | 0.01 | | |
Pediatrix Medical Group, Inc. | | | 4,018 | | | | 47 | | | | 0.01 | | |
Photronics, Inc. | | | 1,796 | | | | 44 | | | | 0.01 | | |
Progress Software Corp. | | | 741 | | | | 50 | | | | 0.01 | | |
PVH Corp. | | | 436 | | | | 44 | | | | 0.01 | | |
Ringcentral, Inc. — Class A | | | 1,392 | | | | 44 | | | | 0.01 | | |
Signet Jewelers Ltd. | | | 438 | | | | 45 | | | | 0.01 | | |
Spartannash Co. | | | 1,962 | | | | 44 | | | | 0.01 | | |
Suncoke Energy, Inc. | | | 5,179 | | | | 45 | | | | 0.01 | | |
Tegna, Inc. | | | 2,862 | | | | 45 | | | | 0.01 | | |
Teradata Corp. | | | 1,445 | | | | 44 | | | | 0.01 | | |
Topgolf Callaway Brands Corp. | | | 3,967 | | | | 44 | | | | 0.01 | | |
The accompanying notes are an integral part of the consolidated financial statements.
29
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Portfolio of Investments (cont'd)
Global Strategist Portfolio
Security Description | | Shares | | Value
(000) | | Percentage of
Net Assets | |
U.S. Broad Value Index (cont'd) | |
United Airlines Holdings, Inc. | | | 812 | | | $ | 46 | | | | 0.01 | % | |
Uniti Group, Inc. | | | 8,008 | | | | 45 | | | | 0.01 | | |
Varex Imaging Corp. | | | 3,684 | | | | 44 | | | | 0.01 | | |
Veeco Instruments, Inc. | | | 1,328 | | | | 44 | | | | 0.01 | | |
Walgreens Boots Alliance, Inc. | | | 4,891 | | | | 44 | | | | 0.01 | | |
Whirlpool Corp. | | | 413 | | | | 44 | | | | 0.01 | | |
@ Value/Notional amount is less than $500.
‡ Amount is less than 0.05%.
EMU European Economic and Monetary Union.
ESTR Euro Short-Term Rate
FTSE Financial Times Stock Exchange.
GDR Global Depositary Receipt.
ICE Intercontinental Exchange.
KFE Korean Futures Exchange.
KSDA Korea Securities Dealers Association
MSCI Morgan Stanley Capital International.
PJSC Public Joint Stock Company.
REIT Real Estate Investment Trust.
SFE Sydney Futures Exchange.
SGX Singapore Exchange Ltd.
SOFR Secured Overnight Financing Rate.
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
PEN — Peruvian Nuevo Sol
PLN — Polish Zloty
RON — Romanian New Leu
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 | |
Fixed Income Securities | | | 40.0 | % | |
Common Stocks | | | 40.8 | | |
Short-Term Investments | | | 19.2 | | |
Total Investments | | | 100.0 | %** | |
** Does not include open futures contracts with a value of approximately $111,692,000 and net unrealized depreciation of approximately $666,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $534,000. Also does not include open swap agreements with net unrealized appreciation of approximately $4,510,000.
The accompanying notes are an integral part of the consolidated financial statements.
30
Morgan Stanley Institutional Fund Trust
September 30, 2024
Global Strategist Portfolio
Consolidated Statement of Assets and Liabilities | | September 30, 2024
(000) | |
Assets: | |
Investments in Securities of Unaffiliated Issuers, at Value (Cost $405,446) | | $ | 513,607 | | |
Investment in Security of Affiliated Issuer, at Value (Cost $102,364) | | | 102,364 | | |
Total Investments in Securities, at Value (Cost $507,810) | | | 615,971 | | |
Foreign Currency, at Value (Cost $720) | | | 1,481 | | |
Receivable for Fund Shares Sold | | | 10,000 | | |
Cash | | | 1,480 | | |
Unrealized Appreciation on Swap Agreements | | | 6,099 | | |
Receivable for Variation Margin on Futures Contracts | | | 3,201 | | |
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts | | | 1,802 | | |
Interest Receivable | | | 1,792 | | |
Due from Broker | | | 737 | | |
Receivable for Investments Sold | | | 631 | | |
Receivable from Affiliate | | | 302 | | |
Tax Reclaim Receivable | | | 247 | | |
Dividends Receivable | | | 171 | | |
Other Assets | | | 64 | | |
Total Assets | | | 643,978 | | |
Liabilities: | |
Payable for Investments Purchased | | | 18,620 | | |
Due to Broker | | | 6,020 | | |
Unrealized Depreciation on Swap Agreements | | | 1,952 | | |
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts | | | 1,268 | | |
Payable for Variation Margin on Swap Agreements | | | 653 | | |
Payable for Advisory Fees | | | 634 | | |
Payable for Fund Shares Redeemed | | | 215 | | |
Payable for Custodian Fees | | | 131 | | |
Payable for Swap Agreements Termination | | | 120 | | |
Payable for Professional Fees | | | 96 | | |
Payable for Administration Fees | | | 39 | | |
Payable for Shareholder Services Fees Class A | | | 29 | | |
Payable for Distribution and Shareholder Services Fees — Class L | | | 7 | | |
Payable for Distribution and Shareholder Services Fees — Class C | | | 1 | | |
Payable for Trustees' Fees and Expenses | | | 35 | | |
Payable for Sub Transfer Agency Fees — Class I | | | 2 | | |
Payable for Sub Transfer Agency Fees — Class A | | | 19 | | |
Payable for Sub Transfer Agency Fees — Class L | | | 1 | | |
Payable for Sub Transfer Agency Fees — Class C | | | — | @ | |
Payable for Transfer Agency Fees — Class I | | | 2 | | |
Payable for Transfer Agency Fees — Class A | | | 3 | | |
Payable for Transfer Agency Fees — Class L | | | — | @ | |
Payable for Transfer Agency Fees — Class C | | | — | @ | |
Payable for Transfer Agency Fees — Class R6 | | | — | @ | |
Deferred Capital Gain Country Tax | | | — | @ | |
Other Liabilities | | | 79 | | |
Total Liabilities | | | 29,926 | | |
Net Assets | | $ | 614,052 | | |
Net Assets Consist of: | |
Paid-in-Capital | | $ | 498,356 | | |
| Total Distributable Earnings | | | 115,696 | | |
Net Assets | | $ | 614,052 | | |
The accompanying notes are an integral part of the consolidated financial statements.
31
Morgan Stanley Institutional Fund Trust
September 30, 2024
Global Strategist Portfolio
Consolidated Statement of Assets and Liabilities (cont'd) | | September 30, 2024
(000) | |
CLASS I: | |
Net Assets | | $ | 18,622 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 991,697 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 18.78 | | |
CLASS A: | |
Net Assets | | $ | 144,645 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 7,841,067 | | |
Net Asset Value, Redemption Price Per Share | | $ | 18.45 | | |
Maximum Sales Load | | | 5.25 | % | |
Maximum Sales Charge | | $ | 1.02 | | |
Maximum Offering Price Per Share | | $ | 19.47 | | |
CLASS L: | |
Net Assets | | $ | 11,033 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 614,471 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 17.96 | | |
CLASS C: | |
Net Assets | | $ | 1,076 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 61,234 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 17.57 | | |
CLASS R6: | |
Net Assets | | $ | 438,676 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 23,334,514 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 18.80 | | |
@ Amount is less than $500.
The accompanying notes are an integral part of the consolidated financial statements.
32
Morgan Stanley Institutional Fund Trust
September 30, 2024
Global Strategist Portfolio
Consolidated Statement of Operations | | Year Ended
September 30, 2024
(000) | |
Investment Income: | |
Interest from Securities of Unaffiliated Issuers | | $ | 9,775 | | |
Dividends from Securities of Unaffiliated Issuers (Net of $353 of Foreign Taxes Withheld) | | | 4,744 | | |
Dividends from Security of Affiliated Issuer (Note G) | | | 3,931 | | |
Total Investment Income | | | 18,450 | | |
Expenses: | |
Advisory Fees (Note B) | | | 2,510 | | |
Administration Fees (Note C) | | | 446 | | |
Shareholder Services Fees — Class A (Note D) | | | 348 | | |
Distribution and Shareholder Services Fees — Class L (Note D) | | | 78 | | |
Distribution and Shareholder Services Fees — Class C (Note D) | | | 13 | | |
Custodian Fees (Note F) | | | 379 | | |
Professional Fees | | | 200 | | |
Sub Transfer Agency Fees — Class I | | | 11 | | |
Sub Transfer Agency Fees — Class A | | | 98 | | |
Sub Transfer Agency Fees — Class L | | | 6 | | |
Sub Transfer Agency Fees — Class C | | | 1 | | |
Pricing Fees | | | 94 | | |
Registration Fees | | | 71 | | |
Transfer Agency Fees — Class I (Note E) | | | 11 | | |
Transfer Agency Fees — Class A (Note E) | | | 20 | | |
Transfer Agency Fees — Class L (Note E) | | | 4 | | |
Transfer Agency Fees — Class C (Note E) | | | 3 | | |
Transfer Agency Fees — Class R6 (Note E) | | | 3 | | |
Shareholder Reporting Fees | | | 36 | | |
Trustees' Fees and Expenses | | | 11 | | |
Other Expenses | | | 45 | | |
Total Expenses | | | 4,388 | | |
Reimbursement of Transfer Agency and Sub Transfer Agency Fees (Note B) | | | (152 | ) | |
Rebate from Morgan Stanley Affiliate (Note G) | | | (111 | ) | |
Reimbursement of Class Specific Expenses — Class I (Note B) | | | (12 | ) | |
Reimbursement of Class Specific Expenses — Class C (Note B) | | | (2 | ) | |
Net Expenses | | | 4,111 | | |
Net Investment Income | | | 14,339 | | |
Realized Gain (Loss): | |
Investments Sold | | | (3,864 | ) | |
Foreign Currency Forward Exchange Contracts | | | (2,337 | ) | |
Foreign Currency Transaction | | | (51 | ) | |
Futures Contracts | | | (1,660 | ) | |
Swap Agreements | | | 15,584 | | |
Net Realized Gain | | | 7,672 | | |
Change in Unrealized Appreciation (Depreciation): | |
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $1) | | | 83,015 | | |
Foreign Currency Forward Exchange Contracts | | | 961 | | |
Foreign Currency Translation | | | 1,055 | | |
Futures Contracts | | | (1,150 | ) | |
Swap Agreements | | | 6,195 | | |
Net Change in Unrealized Appreciation (Depreciation) | | | 90,076 | | |
Net Realized Gain and Change in Unrealized Appreciation (Depreciation) | | | 97,748 | | |
Net Increase in Net Assets Resulting from Operations | | $ | 112,087 | | |
The accompanying notes are an integral part of the consolidated financial statements.
33
Morgan Stanley Institutional Fund Trust
September 30, 2024
Global Strategist Portfolio
Consolidated Statements of Changes in Net Assets | | Year Ended
September 30, 2024
(000) | | Year Ended
September 30, 2023
(000) | |
Increase (Decrease) in Net Assets: | |
Operations: | |
Net Investment Income | | $ | 14,339 | | | $ | 10,124 | | |
Net Realized Gain (Loss) | | | 7,672 | | | | (7,549 | ) | |
Net Change in Unrealized Appreciation (Depreciation) | | | 90,076 | | | | 53,190 | | |
Net Increase in Net Assets Resulting from Operations | | | 112,087 | | | | 55,765 | | |
Dividends and Distributions to Shareholders: | |
Class I | | | — | | | | (112 | ) | |
Class A | | | — | | | | (771 | ) | |
Class L | | | — | | | | (44 | ) | |
Class C | | | — | | | | (7 | ) | |
Class R6 | | | — | | | | (1,669 | ) | |
Total Dividends and Distributions to Shareholders | | | — | | | | (2,603 | ) | |
Capital Share Transactions, including direct exchanges pursuant to share class conversions
for all periods presented, were as follows:(1) | |
Class I: | |
Subscribed | | | 2,342 | | | | 2,442 | | |
Distributions Reinvested | | | — | | | | 111 | | |
Redeemed | | | (4,102 | ) | | | (5,813 | ) | |
Class A: | |
Subscribed | | | 1,141 | | | | 2,101 | | |
Distributions Reinvested | | | — | | | | 760 | | |
Redeemed | | | (18,403 | ) | | | (20,524 | ) | |
Class L: | |
Exchanged | | | — | @ | | | 92 | | |
Distributions Reinvested | | | — | | | | 43 | | |
Redeemed | | | (753 | ) | | | (1,225 | ) | |
Class C: | |
Subscribed | | | 40 | | | | 132 | | |
Distributions Reinvested | | | — | | | | 7 | | |
Redeemed | | | (661 | ) | | | (660 | ) | |
Class R6: | |
Subscribed | | | 10,087 | | | | 70,059 | | |
Distributions Reinvested | | | — | | | | 1,669 | | |
Redeemed | | | (579 | ) | | | (567 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | | | (10,888 | ) | | | 48,627 | | |
Total Increase in Net Assets | | | 101,199 | | | | 101,789 | | |
Net Assets: | |
Beginning of Period | | | 512,853 | | | | 411,064 | | |
End of Period | | $ | 614,052 | | | $ | 512,853 | | |
The accompanying notes are an integral part of the consolidated financial statements.
34
Morgan Stanley Institutional Fund Trust
September 30, 2024
Global Strategist Portfolio
Consolidated Statements of Changes in Net Assets (cont'd) | | Year Ended
September 30, 2024
(000) | | Year Ended
September 30, 2023
(000) | |
(1) Capital Share Transactions: | |
Class I: | |
Shares Subscribed | | | 137 | | | | 160 | | |
Shares Issued on Distributions Reinvested | | | — | | | | 7 | | |
Shares Redeemed | | | (246 | ) | | | (383 | ) | |
Net Decrease in Class I Shares Outstanding | | | (109 | ) | | | (216 | ) | |
Class A: | |
Shares Subscribed | | | 67 | | | | 141 | | |
Shares Issued on Distributions Reinvested | | | — | | | | 51 | | |
Shares Redeemed | | | (1,105 | ) | | | (1,366 | ) | |
Net Decrease in Class A Shares Outstanding | | | (1,038 | ) | | | (1,174 | ) | |
Class L: | |
Shares Exchanged | | | — | @@ | | | 6 | | |
Shares Issued on Distributions Reinvested | | | — | | | | 3 | | |
Shares Redeemed | | | (46 | ) | | | (83 | ) | |
Net Decrease in Class L Shares Outstanding | | | (46 | ) | | | (74 | ) | |
Class C: | |
Shares Subscribed | | | 2 | | | | 9 | | |
Shares Issued on Distributions Reinvested | | | — | | | | 1 | | |
Shares Redeemed | | | (41 | ) | | | (46 | ) | |
Net Decrease in Class C Shares Outstanding | | | (39 | ) | | | (36 | ) | |
Class R6: | |
Shares Subscribed | | | 537 | | | | 4,585 | | |
Shares Issued on Distributions Reinvested | | | — | | | | 111 | | |
Shares Redeemed | | | (33 | ) | | | (38 | ) | |
Net Increase in Class R6 Shares Outstanding | | | 504 | | | | 4,658 | | |
@ Amount is less than $500.
@@ Amount is less than 500 shares.
The accompanying notes are an integral part of the consolidated financial statements.
35
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Financial Highlights
Global Strategist Portfolio
| | | Class I | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 15.34 | | | $ | 13.58 | | | $ | 18.74 | | | $ | 16.08 | | | $ | 15.45 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.45 | | | | 0.34 | | | | 0.19 | | | | 0.16 | | | | 0.17 | | |
Net Realized and Unrealized Gain (Loss) | | | 2.99 | | | | 1.51 | | | | (3.94 | ) | | | 2.73 | | | | 0.74 | | |
Total from Investment Operations | | | 3.44 | | | | 1.85 | | | | (3.75 | ) | | | 2.89 | | | | 0.91 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | — | | | | (0.09 | ) | | | (0.12 | ) | | | (0.22 | ) | | | (0.03 | ) | |
Net Realized Gain | | | — | | | | — | | | | (1.29 | ) | | | (0.01 | ) | | | (0.25 | ) | |
Total Distributions | | | — | | | | (0.09 | ) | | | (1.41 | ) | | | (0.23 | ) | | | (0.28 | ) | |
Net Asset Value, End of Period | | $ | 18.78 | | | $ | 15.34 | | | $ | 13.58 | | | $ | 18.74 | | | $ | 16.08 | | |
Total Return(2) | | | 22.35 | %(3) | | | 13.72 | % | | | (21.73 | )% | | | 18.10 | % | | | 5.93 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 18,622 | | | $ | 16,888 | | | $ | 17,886 | | | $ | 26,745 | | | $ | 34,031 | | |
Ratio of Expenses Before Expense Limitation | | | 0.81 | % | | | 0.85 | % | | | 0.83 | % | | | 0.76 | % | | | 0.84 | % | |
Ratio of Expenses After Expense Limitation | | | 0.69 | %(4)(5) | | | 0.72 | %(5) | | | 0.72 | %(5) | | | 0.73 | %(5) | | | 0.72 | %(5) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 0.73 | %(5) | | | N/A | | |
Ratio of Net Investment Income | | | 2.62 | %(4)(5) | | | 2.23 | %(5) | | | 1.13 | %(5) | | | 0.90 | %(5) | | | 1.14 | %(5) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.02 | % | | | 0.02 | % | | | 0.02 | % | | | 0.01 | % | | | 0.02 | % | |
Portfolio Turnover Rate | | | 93 | % | | | 91 | % | | | 93 | % | | | 115 | % | | | 109 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value as of the last business day of the period.
(3) Refer to Note B in the Notes to Consolidated Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class I shares.
(4) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class I shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.72 | % | | | 2.59 | % | |
(5) The Ratio of Expenses After Expense Limitation and Ratio of 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."
The accompanying notes are an integral part of the consolidated financial statements.
36
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Financial Highlights
Global Strategist Portfolio
| | | Class A | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 15.12 | | | $ | 13.41 | | | $ | 18.53 | | | $ | 15.91 | | | $ | 15.30 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.39 | | | | 0.29 | | | | 0.14 | | | | 0.12 | | | | 0.13 | | |
Net Realized and Unrealized Gain (Loss) | | | 2.94 | | | | 1.50 | | | | (3.90 | ) | | | 2.68 | | | | 0.73 | | |
Total from Investment Operations | | | 3.33 | | | | 1.79 | | | | (3.76 | ) | | | 2.80 | | | | 0.86 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | — | | | | (0.08 | ) | | | (0.07 | ) | | | (0.17 | ) | | | — | | |
Net Realized Gain | | | — | | | | — | | | | (1.29 | ) | | | (0.01 | ) | | | (0.25 | ) | |
Total Distributions | | | — | | | | (0.08 | ) | | | (1.36 | ) | | | (0.18 | ) | | | (0.25 | ) | |
Net Asset Value, End of Period | | $ | 18.45 | | | $ | 15.12 | | | $ | 13.41 | | | $ | 18.53 | | | $ | 15.91 | | |
Total Return(2) | | | 22.02 | %(3) | | | 13.35 | % | | | (21.99 | )% | | | 17.72 | % | | | 5.65 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 144,645 | | | $ | 134,213 | | | $ | 134,814 | | | $ | 188,317 | | | $ | 170,643 | | |
Ratio of Expenses Before Expense Limitation | | | 1.01 | % | | | 1.04 | % | | | 1.05 | % | | | 1.02 | % | | | 1.08 | % | |
Ratio of Expenses After Expense Limitation | | | 0.96 | %(4)(5) | | | 1.01 | %(5) | | | 1.04 | %(5) | | | 1.01 | %(5) | | | 1.02 | %(5) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 1.01 | %(5) | | | N/A | | |
Ratio of Net Investment Income | | | 2.34 | %(4)(5) | | | 1.93 | %(5) | | | 0.84 | %(5) | | | 0.67 | %(5) | | | 0.87 | %(5) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.02 | % | | | 0.02 | % | | | 0.02 | % | | | 0.01 | % | | | 0.02 | % | |
Portfolio Turnover Rate | | | 93 | % | | | 91 | % | | | 93 | % | | | 115 | % | | | 109 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.
(3) Refer to Note B in the Notes to Consolidated Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class A shares.
(4) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class A shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.99 | % | | | 2.31 | % | |
(5) The Ratio of Expenses After Expense Limitation and Ratio of 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."
The accompanying notes are an integral part of the consolidated financial statements.
37
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Financial Highlights
Global Strategist Portfolio
| | | Class L | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 14.79 | | | $ | 13.17 | | | $ | 18.24 | | | $ | 15.67 | | | $ | 15.15 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.30 | | | | 0.21 | | | | 0.05 | | | | 0.03 | | | | 0.05 | | |
Net Realized and Unrealized Gain (Loss) | | | 2.87 | | | | 1.47 | | | | (3.83 | ) | | | 2.64 | | | | 0.72 | | |
Total from Investment Operations | | | 3.17 | | | | 1.68 | | | | (3.78 | ) | | | 2.67 | | | | 0.77 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | — | | | | (0.06 | ) | | | — | | | | (0.09 | ) | | | — | | |
Net Realized Gain | | | — | | | | — | | | | (1.29 | ) | | | (0.01 | ) | | | (0.25 | ) | |
Total Distributions | | | — | | | | (0.06 | ) | | | (1.29 | ) | | | (0.10 | ) | | | (0.25 | ) | |
Net Asset Value, End of Period | | $ | 17.96 | | | $ | 14.79 | | | $ | 13.17 | | | $ | 18.24 | | | $ | 15.67 | | |
Total Return(2) | | | 21.43 | %(3) | | | 12.69 | % | | | (22.33 | )% | | | 17.09 | % | | | 5.10 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 11,033 | | | $ | 9,768 | | | $ | 9,674 | | | $ | 13,359 | | | $ | 12,773 | | |
Ratio of Expenses Before Expense Limitation | | | 1.53 | % | | | 1.56 | % | | | 1.56 | % | | | 1.53 | % | | | 1.60 | % | |
Ratio of Expenses After Expense Limitation | | | 1.48 | %(4)(5) | | | 1.54 | %(5) | | | 1.55 | %(5) | | | 1.52 | %(5) | | | 1.54 | %(5) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 1.52 | %(5) | | | N/A | | |
Ratio of Net Investment Income | | | 1.83 | %(4)(5) | | | 1.40 | %(5) | | | 0.34 | %(5) | | | 0.16 | %(5) | | | 0.36 | %(5) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.02 | % | | | 0.02 | % | | | 0.02 | % | | | 0.01 | % | | | 0.02 | % | |
Portfolio Turnover Rate | | | 93 | % | | | 91 | % | | | 93 | % | | | 115 | % | | | 109 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value as of the last business day of the period.
(3) Refer to Note B in the Notes to Consolidated Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class L shares.
(4) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class L shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 1.51 | % | | | 1.80 | % | |
(5) The Ratio of Expenses After Expense Limitation and Ratio of 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."
The accompanying notes are an integral part of the consolidated financial statements.
38
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Financial Highlights
Global Strategist Portfolio
| | | Class C | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 14.52 | | | $ | 12.96 | | | $ | 18.02 | | | $ | 15.49 | | | $ | 15.02 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income (Loss)(1) | | | 0.24 | | | | 0.16 | | | | 0.02 | | | | (0.02 | ) | | | 0.01 | | |
Net Realized and Unrealized Gain (Loss) | | | 2.81 | | | | 1.45 | | | | (3.79 | ) | | | 2.61 | | | | 0.71 | | |
Total from Investment Operations | | | 3.05 | | | | 1.61 | | | | (3.77 | ) | | | 2.59 | | | | 0.72 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | — | | | | (0.05 | ) | | | — | | | | (0.05 | ) | | | — | | |
Net Realized Gain | | | — | | | | — | | | | (1.29 | ) | | | (0.01 | ) | | | (0.25 | ) | |
Total Distributions | | | — | | | | (0.05 | ) | | | (1.29 | ) | | | (0.06 | ) | | | (0.25 | ) | |
Net Asset Value, End of Period | | $ | 17.57 | | | $ | 14.52 | | | $ | 12.96 | | | $ | 18.02 | | | $ | 15.49 | | |
Total Return(2) | | | 21.01 | %(3) | | | 12.45 | % | | | (22.62 | )% | | | 16.79 | % | | | 4.81 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 1,076 | | | $ | 1,457 | | | $ | 1,771 | | | $ | 2,236 | | | $ | 1,435 | | |
Ratio of Expenses Before Expense Limitation | | | 1.98 | % | | | 1.97 | % | | | 1.92 | % | | | 1.90 | % | | | 1.98 | % | |
Ratio of Expenses After Expense Limitation | | | 1.79 | %(4)(5) | | | 1.82 | %(5) | | | 1.82 | %(5) | | | 1.83 | %(5) | | | 1.82 | %(5) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 1.83 | %(5) | | | N/A | | |
Ratio of Net Investment Income (Loss) | | | 1.52 | %(4)(5) | | | 1.13 | %(5) | | | 0.11 | %(5) | | | (0.11 | )%(5) | | | 0.07 | %(5) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.02 | % | | | 0.02 | % | | | 0.02 | % | | | 0.01 | % | | | 0.02 | % | |
Portfolio Turnover Rate | | | 93 | % | | | 91 | % | | | 93 | % | | | 115 | % | | | 109 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.
(3) Refer to Note B in the Notes to Consolidated Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class C shares.
(4) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class C shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 1.82 | % | | | 1.49 | % | |
(5) The Ratio of Expenses After Expense Limitation and Ratio of 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."
The accompanying notes are an integral part of the consolidated financial statements.
39
Morgan Stanley Institutional Fund Trust
September 30, 2024
Consolidated Financial Highlights
Global Strategist Portfolio
| | | Class R6(1) | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 15.35 | | | $ | 13.59 | | | $ | 18.75 | | | $ | 16.10 | | | $ | 15.46 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(2) | | | 0.46 | | | | 0.35 | | | | 0.20 | | | | 0.20 | | | | 0.19 | | |
Net Realized and Unrealized Gain (Loss) | | | 2.99 | | | | 1.50 | | | | (3.94 | ) | | | 2.69 | | | | 0.74 | | |
Total from Investment Operations | | | 3.45 | | | | 1.85 | | | | (3.74 | ) | | | 2.89 | | | | 0.93 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | — | | | | (0.09 | ) | | | (0.13 | ) | | | (0.23 | ) | | | (0.04 | ) | |
Net Realized Gain | | | — | | | | — | | | | (1.29 | ) | | | (0.01 | ) | | | (0.25 | ) | |
Total Distributions | | | — | | | | (0.09 | ) | | | (1.42 | ) | | | (0.24 | ) | | | (0.29 | ) | |
Net Asset Value, End of Period | | $ | 18.80 | | | $ | 15.35 | | | $ | 13.59 | | | $ | 18.75 | | | $ | 16.10 | | |
Total Return(3) | | | 22.48 | %(4) | | | 13.64 | % | | | (21.67 | )% | | | 18.07 | % | | | 6.02 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 438,676 | | | $ | 350,527 | | | $ | 246,919 | | | $ | 307,783 | | | $ | 159,238 | | |
Ratio of Expenses Before Expense Limitation | | | 0.68 | % | | | 0.70 | % | | | 0.71 | % | | | N/A | | | | 0.75 | % | |
Ratio of Expenses After Expense Limitation | | | 0.63 | %(5)(6) | | | 0.68 | %(6) | | | 0.69 | %(6) | | | 0.68 | %(6) | | | 0.69 | %(6) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 0.68 | %(6) | | | N/A | | |
Ratio of Net Investment Income | | | 2.67 | %(5)(6) | | | 2.26 | %(6) | | | 1.22 | %(6) | | | 1.06 | %(6) | | | 1.21 | %(6) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.02 | % | | | 0.02 | % | | | 0.02 | % | | | 0.01 | % | | | 0.02 | % | |
Portfolio Turnover Rate | | | 93 | % | | | 91 | % | | | 93 | % | | | 115 | % | | | 109 | % | |
(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.
(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) Refer to Note B in the Notes to Consolidated Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class R6 shares.
(5) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class R6 shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.66 | % | | | 2.64 | % | |
(6) The Ratio of Expenses After Expense Limitation and Ratio of 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."
The accompanying notes are an integral part of the consolidated financial statements.
40
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements
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 six separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). All Funds are considered diversified for purposes of the Act.
The Trust applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the Fund's Consolidated Statement of Assets and Liabilities through the date that the financial statements were issued.
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 has issued five classes of shares — Class I, Class A, Class L, Class C and Class R6. Class C shares will automatically convert to Class A shares eight years after the end of the calendar month in which the shares were purchased.
The Fund has suspended offering 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. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.
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.
The Fund may 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 and all accounting policies of the Subsidiary are consistent with those of the Fund. As of September 30, 2024, the Subsidiary represented approximately $51,805,168 or approximately 8.44% of the net 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) Fixed income 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. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or the pricing service/vendor or exchange is unable to provide a price, prices from reputable brokers/dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from reputable brokers/dealers; (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
41
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
exchanges. If only bid prices are available then the latest bid price may be used. 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/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-thecounter ("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/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 reputable broker/dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange. Total return swaps may also be fair valued using direct accrual/return calculations if prices on the reference asset on the total return leg of the swap are available from a pricing service/vendor for such instrument. In the event that the reference asset on the total return leg of the swap is a benchmark index, then price of such reference asset may be obtained from a pricing service provider or from the benchmark index sponsor; (6) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, including circumstances under which the Adviser or the Sub-Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures approved by and under the general supervision of the Trustees. Each business day, the Fund uses a third-party pricing service approved by the Trustees to assist with the valuation of foreign equity
securities. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities to more accurately reflect their fair value as of the close of regular trading on the NYSE; (7) foreign exchange transactions ("spot contracts") and foreign exchange forward contracts ("forward contracts") are valued daily using an independent pricing vendor at the spot and forward rates, respectively, as of 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.
In connection with Rule 2a-5 of the Act, the Trustees have designated the Trust's Adviser as its valuation designee. The valuation designee has responsibility for 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, as valuation designee, 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.
2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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
42
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
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 September 30, 2024:
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 | | $ | — | | | $ | 25,269 | | | $ | — | | | $ | 25,269 | | |
Asset-Backed Securities | | | — | | | | 3,638 | | | | — | | | | 3,638 | | |
Commercial
Mortgage-Backed
Securities | | | — | | | | 5,120 | | | | — | | | | 5,120 | | |
Corporate Bonds | | | — | | | | 51,874 | | | | — | | | | 51,874 | | |
Mortgages — Other | | | — | | | | 7,989 | | | | — | | | | 7,989 | | |
Municipal Bond | | | — | | | | 265 | | | | — | | | | 265 | | |
Sovereign | | | — | | | | 105,565 | | | | — | | | | 105,565 | | |
Supranational | | | — | | | | 4,360 | | | | — | | | | 4,360 | | |
U.S. Treasury Securities | | | — | | | | 42,241 | | | | — | | | | 42,241 | | |
Total Fixed Income
Securities | | | — | | | | 246,321 | | | | — | | | | 246,321 | | |
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 | |
Aerospace & Defense | | $ | 3,182 | | | $ | 1,794 | | | $ | — | | | $ | 4,976 | | |
Air Freight & Logistics | | | 630 | | | | 388 | | | | — | | | | 1,018 | | |
Automobile Components | | | 117 | | | | 159 | | | | — | | | | 276 | | |
Automobiles | | | 2,758 | | | | 1,000 | | | | — | | | | 3,758 | | |
Banks | | | 7,502 | | | | 22,838 | | | | — | | | | 30,340 | | |
Beverages | | | 2,257 | | | | 1,075 | | | | — | | | | 3,332 | | |
Biotechnology | | | 3,264 | | | | 760 | | | | — | | | | 4,024 | | |
Broadline Retail | | | 6,244 | | | | 606 | | | | — | | | | 6,850 | | |
Building Products | | | 1,096 | | | | 567 | | | | — | | | | 1,663 | | |
Capital Markets | | | 5,238 | | | | 2,299 | | | | — | | | | 7,537 | | |
Chemicals | | | 2,503 | | | | 1,897 | | | | — | | | | 4,400 | | |
Commercial Services &
Supplies | | | 1,244 | | | | 195 | | | | — | | | | 1,439 | | |
Communications
Equipment | | | 1,351 | | | | 206 | | | | — | | | | 1,557 | | |
Construction &
Engineering | | | 404 | | | | 512 | | | | — | | | | 916 | | |
Construction Materials | | | 421 | | | | 387 | | | | — | | | | 808 | | |
Consumer Finance | | | 900 | | | | — | | | | — | | | | 900 | | |
Consumer Staples
Distribution & Retail | | | 3,507 | | | | 680 | | | | — | | | | 4,187 | | |
Containers & Packaging | | | 458 | | | | 31 | | | | — | | | | 489 | | |
Distributors | | | 144 | | | | 22 | | | | — | | | | 166 | | |
Diversified Consumer
Services | | | — | | | | 39 | | | | — | | | | 39 | | |
Diversified REITs | | | 44 | | | | 351 | | | | — | | | | 395 | | |
Diversified
Telecommunication
Services | | | 1,194 | | | | 1,313 | | | | — | | | | 2,507 | | |
Electric Utilities | | | 2,797 | | | | 1,393 | | | | — | | | | 4,190 | | |
Electrical Equipment | | | 1,276 | | | | 1,528 | | | | — | | | | 2,804 | | |
Electronic Equipment,
Instruments &
Components | | | 925 | | | | 162 | | | | — | | | | 1,087 | | |
Energy Equipment &
Services | | | 394 | | | | 35 | | | | — | † | | | 429 | † | |
Entertainment | | | 2,191 | | | | 153 | | | | — | | | | 2,344 | | |
Financial Services | | | 6,023 | | | | 789 | | | | — | | | | 6,812 | | |
Food Products | | | 1,192 | | | | 1,970 | | | | — | | | | 3,162 | | |
Gas Utilities | | | 103 | | | | 123 | | | | — | | | | 226 | | |
Ground Transportation | | | 2,350 | | | | 27 | | | | — | | | | 2,377 | | |
Health Care Equipment &
Supplies | | | 3,733 | | | | 1,267 | | | | — | | | | 5,000 | | |
Health Care Providers &
Services | | | 3,930 | | | | 199 | | | | — | | | | 4,129 | | |
Health Care REITs | | | 445 | | | | — | | | | — | | | | 445 | | |
Health Care Technology | | | 104 | | | | 35 | | | | — | | | | 139 | | |
Hotel & Resort REITs | | | 40 | | | | — | | | | — | | | | 40 | | |
Hotels, Restaurants &
Leisure | | | 3,430 | | | | 1,012 | | | | — | | | | 4,442 | | |
Household Durables | | | 613 | | | | 154 | | | | — | | | | 767 | | |
Household Products | | | 1,888 | | | | 405 | | | | — | | | | 2,293 | | |
Independent Power &
Renewable Electricity
Producers | | | 221 | | | | 214 | | | | — | | | | 435 | | |
Industrial Conglomerates | | | 680 | | | | 979 | | | | — | | | | 1,659 | | |
Industrial REITs | | | 378 | | | | 133 | | | | — | | | | 511 | | |
Information Technology
Services | | | 2,792 | | | | 171 | | | | — | | | | 2,963 | | |
Insurance | | | 4,433 | | | | 3,736 | | | | — | | | | 8,169 | | |
Interactive Media &
Services | | | 10,081 | | | | 188 | | | | — | | | | 10,269 | | |
43
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
Investment Type | | Level 1
Unadjusted
quoted
prices
(000) | | Level 2
Other
significant
observable
inputs
(000) | | Level 3
Significant
unobservable
inputs
(000) | | Total
(000) | |
Common Stocks (cont'd) | |
Investment Company | | $ | — | | | $ | — | | | $ | — | † | | $ | — | † | |
Leisure Products | | | 10 | | | | — | | | | — | | | | 10 | | |
Life Sciences Tools &
Services | | | 2,159 | | | | 370 | | | | — | | | | 2,529 | | |
Machinery | | | 2,813 | | | | 1,620 | | | | — | | | | 4,433 | | |
Marine Transportation | | | — | | | | 136 | | | | — | | | | 136 | | |
Media | | | 993 | | | | 275 | | | | — | | | | 1,268 | | |
Metals & Mining | | | 1,571 | | | | 2,255 | | | | — | † | | | 3,826 | † | |
Mortgage Real Estate
Investment | | | 33 | | | | — | | | | — | | | | 33 | | |
Multi-Utilities | | | 1,044 | | | | 783 | | | | — | | | | 1,827 | | |
Office REITs | | | 39 | | | | 51 | | | | — | | | | 90 | | |
Oil, Gas & Consumable
Fuels | | | 7,003 | | | | 2,883 | | | | — | | | | 9,886 | | |
Paper & Forest Products | | | 26 | | | | 211 | | | | — | | | | 237 | | |
Passenger Airlines | | | 51 | | | | 77 | | | | — | | | | 128 | | |
Personal Care Products | | | 218 | | | | 1,509 | | | | — | | | | 1,727 | | |
Pharmaceuticals | | | 5,877 | | | | 6,681 | | | | — | | | | 12,558 | | |
Professional Services | | | 1,343 | | | | 1,143 | | | | — | | | | 2,486 | | |
Real Estate Management &
Development | | | 293 | | | | 510 | | | | — | | | | 803 | | |
Residential REITs | | | 618 | | | | — | | | | — | | | | 618 | | |
Retail REITs | | | 460 | | | | 275 | | | | — | | | | 735 | | |
Semiconductors &
Semiconductor
Equipment | | | 17,635 | | | | 1,976 | | | | — | | | | 19,611 | | |
Software | | | 17,327 | | | | 1,529 | | | | — | | | | 18,856 | | |
Specialized REITs | | | 1,705 | | | | — | | | | — | | | | 1,705 | | |
Specialty Retail | | | 3,236 | | | | 459 | | | | — | | | | 3,695 | | |
Tech Hardware, Storage &
Peripherals | | | 11,642 | | | | 63 | | | | — | | | | 11,705 | | |
Textiles, Apparel & Luxury
Goods | | | 561 | | | | 2,092 | | | | — | | | | 2,653 | | |
Tobacco | | | 895 | | | | 470 | | | | — | | | | 1,365 | | |
Trading Companies &
Distributors | | | 766 | | | | 468 | | | | — | | | | 1,234 | | |
Transportation
Infrastructure | | | — | | | | 284 | | | | — | | | | 284 | | |
Water Utilities | | | 124 | | | | 90 | | | | — | | | | 214 | | |
Wireless
Telecommunication
Services | | | 423 | | | | 137 | | | | — | | | | 560 | | |
Total Common Stocks | | | 173,342 | | | | 78,139 | | | | — | † | | | 251,481 | † | |
Rights | | | — | | | | — | @ | | | — | | | | — | @ | |
Warrants | | | — | | | | — | † | | | — | | | | — | † | |
Short-Term Investments | |
Investment Company | | | 102,364 | | | | — | | | | — | | | | 102,364 | | |
U.S. Treasury Securities | | | — | | | | 15,805 | | | | — | | | | 15,805 | | |
Total Short-Term
Investments | | | 102,364 | | | | 15,805 | | | | — | | | | 118,169 | | |
Foreign Currency
Forward Exchange
Contracts | | | — | | | | 1,802 | | | | — | | | | 1,802 | | |
Futures Contracts | | | 222 | | | | — | | | | — | | | | 222 | | |
Centrally Cleared Interest
Rate Swap Agreements | | | — | | | | 363 | | | | — | | | | 363 | | |
Total Return Swap
Agreements | | | — | | | | 6,099 | | | | — | | | | 6,099 | | |
Total Assets | | | 275,928 | | | | 348,529 | † | | | — | † | | | 624,457 | † | |
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 | | $ | — | | | $ | (1,268 | ) | | $ | — | | | $ | (1,268 | ) | |
Futures Contracts | | | (888 | ) | | | — | | | | — | | | | (888 | ) | |
Total Return Swap
Agreements | | | — | | | | (1,952 | ) | | | — | | | | (1,952 | ) | |
Total Liabilities | | | (888 | ) | | | (3,220 | ) | | | — | | | | (4,108 | ) | |
Total | | $ | 275,040 | | | $ | 345,309 | † | | $ | — | † | | $ | 620,349 | † | |
† Includes one or more securities valued at zero.
@ 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.
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 | | | — | | |
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 September 30, 2024 | | $ | — | | |
† Includes one or more securities 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
44
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
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. 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 U.S. 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, risks arising from margin and payment requirements, risks arising from mispricing or valuation complexity and operational and legal risks. 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 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.
45
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
Following is a description of the derivative instruments and techniques that the Fund used during the period and their associated risks:
Foreign Currency Forward Exchange Contracts: In connection with its investments in foreign securities, the Fund also entered into contracts with banks and brokers/dealers to purchase or sell 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.
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) and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the futures contract. 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.
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
46
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (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 counterparty or clearing-house based on changes in the value of the contract or variation margin, respectively. 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 based on the type of market participant and U.S. Commodities Futures Trading Commission ("CFTC") approval of contracts for central clearing and exchange trading.
The Fund may enter into total return swaps in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include, but not be limited to, a specified security, basket of securities or securities indices during the specified period, in return for periodic payments based on a fixed or variable interest rate or the total return from other underlying assets. Total return swaps may be used to obtain long or short exposure to a security or market without owning or taking physical custody of such security or investing directly in such market. Total return swaps may effectively add leverage to the Fund's portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap. Total return swaps are subject to the risk that a counterparty will default on its payment obligations to the Fund thereunder, and conversely, that the Fund will not be able to meet its obligation to the counterparty.
The Fund may enter into interest rate swaps which is an agreement between two parties to exchange their respective commitments to pay or receive interest. Interest rate swaps are generally entered into on a net basis. Interest
rate swaps do not involve the delivery of securities, other underlying assets, or principal. Accordingly, the risk of market loss with respect to interest rate swaps is typically limited to the net amount of interest payments that the Fund is contractually obligated to make.
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. Changes in market value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreement in the Statement Operations, in addition to any realized gains (loss) recorded upon the termination of swap agreements.
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 September 30, 2024:
| | | 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 | | $ | 1,802 | | |
Futures Contracts
| | Variation Margin on
Futures Contracts | | Commodity Risk | | | 75 | (a) | |
Futures Contracts
| | Variation Margin on
Futures Contracts | | Equity Risk | | | 2 | (a) | |
Futures Contracts
| | Variation Margin on
Futures Contracts | | Interest Rate Risk | | | 145 | (a) | |
Swap Agreements
| | Variation Margin on
Swap Agreements | | Interest Rate Risk | | | 363 | (a) | |
Swap Agreements
| | Unrealized Appreciation on
Swap Agreements | | Equity Risk | | | 6,099 | | |
Total | | | | | | $ | 8,486 | | |
47
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
| | | Liability Derivatives
Consolidated Statement of
Assets and
Liabilities Location | | Primary Risk
Exposure | | Value
(000) | |
Foreign Currency
Forward Exchange
Contracts | | Unrealized Depreciation on
Foreign Currency Forward
Exchange Contracts | |
Currency Risk | | $ | (1,268 | ) | |
Futures Contracts
| | Variation Margin on
Futures Contracts | | Commodity Risk | | | (93 | )(a) | |
Futures Contracts
| | Variation Margin on
Futures Contracts | | Equity Risk | | | (685 | )(a) | |
Futures Contracts
| | Variation Margin on
Futures Contracts | | Interest Rate Risk | | | (110 | )(a) | |
Swap Agreements
| | Unrealized Depreciation on
Swap Agreements | | Equity Risk | | | (1,952 | ) | |
Total | | | | | | $ | (4,108 | ) | |
(a) This amount represents the cumulative appreciation (depreciation) as reported in the Consolidated Portfolio of Investments. The Consolidated Statement of Assets and Liabilities only reflects the current day's net variation margin.
The following tables set forth by primary risk exposure the Fund's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the year ended September 30, 2024 in accordance with ASC 815:
Realized Gain (Loss) | |
Primary Risk Exposure | | Derivative Type | | Value
(000) | |
Currency Risk | | Foreign Currency Forward
Exchange Contracts | | $ | (2,337 | ) | |
Commodity Risk | | Futures Contracts | | | (559 | ) | |
Equity Risk | | Futures Contracts | | | (85 | ) | |
Interest Rate Risk | | Futures Contracts | | | (1,059 | ) | |
Currency Risk | | Futures Contracts | | | 43 | | |
Equity Risk | | Swap Agreements | | | 23,244 | | |
Interest Rate Risk | | Swap Agreements | | | (7,660 | ) | |
Total | | | | $ | 11,587 | | |
Change in Unrealized Appreciation (Depreciation) | |
Primary Risk Exposure | | Derivative Type | | Value
(000) | |
Currency Risk | | Foreign Currency Forward
Exchange Contracts | | $ | 961 | | |
Commodity Risk | | Futures Contracts | | | (769 | ) | |
Equity Risk | | Futures Contracts | | | (546 | ) | |
Interest Rate Risk | | Futures Contracts | | | 165 | | |
Equity Risk | | Swap Agreements | | | 5,997 | | |
Interest Rate Risk | | Swap Agreements | | | 198 | | |
Total | | | | $ | 6,006 | | |
At September 30, 2024, 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(a) | | Assets(b)
(000) | | Liabilities(b)
(000) | |
Foreign Currency Forward Exchange Contracts | | $ | 1,802 | | | $ | (1,268 | ) | |
Swap Agreements | | | 6,099 | | | | (1,952 | ) | |
Total | | $ | 7,901 | | | $ | (3,220 | ) | |
(a) Excludes exchange-traded derivatives.
(b) 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.
48
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2024:
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(a)
(000) | | Net Amount
(not less
than $0)
(000) | |
Australia & New Zealand
Banking Group Ltd. | | $ | 1 | | | $ | (1 | ) | | $ | — | | | $ | 0 | | |
Bank of America NA | | | 69 | | | | (27 | ) | | | — | | | | 42 | | |
Bank of New York Mellon | | | — | @ | | | — | | | | — | | | | — | @ | |
Barclays Bank PLC | | | 3,134 | | | | (568 | ) | | | (2,566 | ) | | | 0 | | |
BNP Paribas SA | | | 332 | | | | (331 | ) | | | (1 | ) | | | 0 | | |
Citibank NA | | | 1 | | | | (— | @) | | | — | | | | 1 | | |
Goldman Sachs International | | | 3,234 | | | | (414 | ) | | | (2,820 | ) | | | 0 | | |
JPMorgan Chase Bank NA | | | 425 | | | | (425 | ) | | | — | | | | 0 | | |
State Street Bank and Trust Co. | | | 2 | | | | — | | | | — | | | | 2 | | |
UBS AG | | | 703 | | | | (19 | ) | | | (235 | ) | | | 449 | | |
Total | | $ | 7,901 | | | $ | (1,785 | ) | | $ | (5,622 | ) | | $ | 494 | | |
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(a)
(000) | | Net Amount
(not less
than $0)
(000) | |
Australia & New Zealand
Banking Group Ltd. | | $ | 10 | | | $ | (1 | ) | | $ | — | | | $ | 9 | | |
Bank of America NA | | | 27 | | | | (27 | ) | | | — | | | | 0 | | |
Barclays Bank PLC | | | 568 | | | | (568 | ) | | | — | | | | 0 | | |
BNP Paribas SA | | | 1,167 | | | | (331 | ) | | | (170 | ) | | | 666 | | |
Citibank NA | | | — | @ | | | (— | @) | | | — | | | | 0 | | |
Goldman Sachs International | | | 655 | | | | (414 | ) | | | (241 | ) | | | 0 | | |
JPMorgan Chase Bank NA | | | 489 | | | | (425 | ) | | | — | | | | 64 | | |
Standard Chartered Bank | | | — | @ | | | — | | | | — | | | | — | @ | |
UBS AG | | | 304 | | | | (19 | ) | | | — | | | | 285 | | |
Total | | $ | 3,220 | | | $ | (1,785 | ) | | $ | (411 | ) | | $ | 1,024 | | |
@ Value is less than $500.
(a) In some instances, the actual collateral received or pledged may be more than the amount shown here due to overcollateralization.
For the year ended September 30, 2024, the approximate average monthly amount outstanding for each derivative type is as follows:
Foreign Currency Forward Exchange Contracts: | |
Average monthly principal amount | | $ | 138,817,000 | | |
Futures Contracts: | |
Average monthly notional value | | $ | 160,412,000 | | |
Swap Agreements: | |
Average monthly notional amount | | $ | 115,850,000 | | |
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 indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the
49
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
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, co-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 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/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 an annual rate of 0.45% of the daily net assets of the Fund.
The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund 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 R6 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 year ended September 30, 2024, approximately $14,000 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.
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.
The Adviser agreed to reimburse the Fund for prior years overpayment of transfer agency and sub transfer agency fees. This was reflected as "Reimbursement of Transfer Agency and Sub Transfer Agency Fees" in the Consolidated Statement of Operations.
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
50
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
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 distribution-related and/or 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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS"). Pursuant to a Transfer Agency Agreement, the Trust pays SS&C GIDS a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.
Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended September 30, 2024, co-transfer agency fees and expenses incurred to EVM, included in "Transfer Agency Fees" in the Consolidated Statement of Operations, amounted to approximately $4,000.
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 year ended September 30, 2024, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $220,756,000 and $220,739,000, respectively. For the year ended September 30, 2024, purchases and sales of long-term U.S. Government securities were approximately $274,997,000 and $257,525,000, respectively.
The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Fund"), 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 Fund. For the year ended
September 30, 2024, advisory fees paid were reduced by approximately $111,000 relating to the Fund's investment in the Liquidity Fund.
A summary of the Fund's transactions in shares of affiliated investments during the year ended September 30, 2024 is as follows:
Affiliated
Investment
Company | | Value
September 30,
2023
(000) | | Purchases
at Cost
(000) | | Proceeds
from Sales
(000) | | Dividend
Income
(000) | |
Liquidity Fund | | $ | 74,041 | | | $ | 292,254 | | | $ | 263,931 | | | $ | 3,931 | | |
Affiliated
Investment
Company (cont'd) | | Realized
Gain
(Loss)
(000) | | Change in
Unrealized
Appreciation
(Depreciation)
(000) | | Value
September 30,
2024
(000) | |
Liquidity Fund | | $ | — | | | $ | — | | | $ | 102,364 | | |
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 year ended September 30, 2024, the Fund did not engage in any cross-trade transactions.
The Fund has an unfunded noncontributory defined benefit pension plan covering certain independent Trustees of the Fund who will have served as independent Trustees for at least five years at the time of retirement. Benefits under this plan are based on factors which include years of service and compensation. The Trustees voted to close the plan to new participants and eliminate the future benefits growth due to increases to compensation after July 31, 2003. Aggregate pension costs for the year ended September 30, 2024, included in "Trustees' Fees and Expenses" in the Consolidated Statement of Operations amounted to approximately $2,000. At September 30, 2024, the Fund had an accrued pension liability of approximately $35,000, which is reflected as "Payable for Trustees' Fees and Expenses" in the Consolidated Statement of Assets and Liabilities.
Each Trustee receives an annual retainer fee for serving as a Trustee of the Morgan Stanley Funds. The aggregate compensation paid to each Trustee is paid by the Morgan Stanley Funds, and is allocated on a pro rata basis among each of the operational funds of the Morgan Stanley Funds based on the relative net assets of each of the funds. The fund also
51
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
reimburses such Trustees for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings.
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 RIC 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, 2024 remains subject to examination by taxing authorities.
The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for
tax purposes. The tax character of distributions paid during fiscal years 2024 and 2023 was as follows:
2024
Distributions
Paid From: | | 2023
Distributions
Paid From: | |
Ordinary
Income
(000) | | Ordinary
Income
(000) | |
| $ | — | | | $ | 2,603 | | |
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 tax adjustments related to the Subsidiary, resulted in the following reclassifications among the components of net assets at September 30, 2024.
Total
Distributable
Earnings
(000) | | Paid-in-
Capital
(000) | |
| $ | 4,960 | | | $ | (4,960 | ) | |
At September 30, 2024, 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) | |
| $ | 13,393 | | | $ | — | | |
During the year ended September 30, 2024, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $7,695,000.
I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $500,000,000 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 for any funds drawn will be based on the federal funds rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility, which is allocated among participating funds based on relative net assets. During
52
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Consolidated Financial Statements (cont'd)
the year ended September 30, 2024, the Fund did not have any borrowings under the Facility.
J. Other: At September 30, 2024, 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 90.9%.
K. Market Risk and Risks Relating to Certain Financial Instruments
Market: The value of an investment in the Fund is based on the values of the Fund's investments, which change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events adversely interrupt the global economy and financial markets. Securities in the Fund's portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters and extreme weather events, health emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years, such as terrorist attacks around the world, natural disasters, health emergencies, social and political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. The occurrence of such events may be sudden and unexpected, and it is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). Any such event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund's portfolio, as well as its ability to sell securities and/or meet redemptions. Any such event(s) or similar types of factors and developments may also adversely affect the financial performance of the Fund's investments (and, in turn, the Fund's investment results) and/or negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments, and exacerbate preexisting risks to the Fund.
Bitcoin: The Fund may gain exposure to cryptocurrencies by investing in the Subsidiary. Cryptocurrencies (also referred to as "virtual currencies" and "digital currencies") are digital assets
designed to act as a medium of exchange. Although cryptocurrency is an emerging asset class, there are thousands of cryptocurrencies, the most well-known of which is bitcoin. Cryptocurrency facilitates decentralized, peer-to-peer financial exchange and value storage that is used like money, without the oversight of a central authority or banks. The value of cryptocurrency is not backed by any government, corporation, or other identified body. Similar to fiat currencies (i.e., a currency that is backed by a central bank or a national, supra-national or quasi-national organization), cryptocurrencies are susceptible to theft, loss and destruction. The value of Fund's investments in cryptocurrency is subject to fluctuations in the value of the cryptocurrency, which have been and may in the future be highly volatile. The value of cryptocurrencies is determined by the supply and demand for cryptocurrency in the global market for the trading of cryptocurrency, which consists primarily of transactions on electronic exchanges. The price of bitcoin could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in the bitcoin network or a change in user preference to competing cryptocurrencies. The Fund's exposure to cryptocurrency could result in substantial losses to the Fund.
53
Morgan Stanley Institutional Fund Trust
September 30, 2024
Report of Independent Registered Public Accounting Firm
To the Shareholders of Global Strategist Portfolio and the
Board of Trustees of Morgan Stanley Institutional Fund Trust
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities of Global Strategist Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund Trust (the "Trust")), including the consolidated portfolio of investments, as of September 30, 2024, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund Trust) at September 30, 2024, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Morgan Stanley investment companies since 2000.
Boston, Massachusetts
November 26, 2024
54
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited)
Nature, Extent and Quality of Services
The Board reviewed and considered the nature and extent of the investment advisory services provided by the Adviser under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board reviewed similar information and factors regarding the Sub-Adviser, to the extent applicable. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services provided by the Administrator under the administration agreement, including accounting, operations, clerical, bookkeeping, compliance, business management and planning, legal services and the provision of supplies, office space and utilities at the Adviser's expense. The Board also considered the Adviser's investment in personnel and infrastructure that benefits the Fund. (The Adviser, Sub-Adviser and Administrator together are referred to as the "Adviser" and the advisory, sub-advisory and administration agreements together are referred to as the "Management Agreement.") The Board also considered that the Adviser serves a variety of other investment advisory clients and has experience overseeing service providers. The Board also compared the nature of the services provided by the Adviser with similar services provided by non-affiliated advisers as prepared by Broadridge Financial Solutions, Inc. ("Broadridge").
The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who provide the advisory and administrative services to the Fund. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services provided were necessary and appropriate for the conduct of the business and investment activities of the Fund and supported its decision to approve the Management Agreement.
Performance, Fees and Expenses of the Fund
The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2023, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the one-year period but below its peer group average for the three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. The Board noted that the Fund's management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Fund's (i) performance was acceptable and (ii) management fee and total expense ratio were competitive with its peer group averages.
Economies of Scale
The Board considered the size and growth prospects of the Fund and how that relates to the Fund's total expense ratio and particularly the Fund's management fee rate, which does not include breakpoints. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Fund and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and/or potential economies of scale of the Fund supports its decision to approve the Management Agreement.
Profitability of the Adviser and Affiliates
The Board considered information concerning the costs incurred and profits realized by the Adviser and its affiliates during the last year from their relationship with the Fund and during the last two years from their relationship with the Morgan Stanley Fund Complex and reviewed with the Adviser the cost allocation methodology used to determine the profitability of the Adviser and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.
55
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited) (cont'd)
Other Benefits of the Relationship
The Board considered other direct and indirect benefits to the Adviser and/or its affiliates derived from their relationship with the Fund and other funds advised by the Adviser. These benefits may include, among other things, fees for trading, distribution and/or shareholder servicing and for transaction processing and reporting platforms used by securities lending agents, and research received by the Adviser generated from commission dollars spent on funds' portfolio trading. The Board reviewed with the Adviser these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.
Resources of the Adviser and Historical Relationship Between the Fund and the Adviser
The Board considered whether the Adviser is financially sound and has the resources necessary to perform its obligations under the Management Agreement. The Board also reviewed and considered the historical relationship between the Fund and the Adviser, including the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Fund's operations and the Board's confidence in the competence and integrity of the senior managers and key personnel of the Adviser. The Board concluded that the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Fund to continue its relationship with the Adviser.
Other Factors and Current Trends
The Board considered the controls and procedures adopted and implemented by the Adviser and monitored by the Fund's Chief Compliance Officer and concluded that the conduct of business by the Adviser indicates a good faith effort on its part to adhere to high ethical standards in the conduct of the Fund's business.
General Conclusion
After considering and weighing all of the above factors, with various written materials and verbal information presented by the Adviser, the Board concluded that it would be in the best interest of the Fund and its shareholders to approve renewal of the Management Agreement for another year. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. The Board considered these factors and information over the course of the year and in numerous meetings, some of which were in executive session with only the independent Board members and their counsel present. It is possible that individual Board members may have weighed these factors, and the information presented, differently in reaching their individual decisions to approve the Management Agreement.
56
Morgan Stanley Investment Management Inc.
1585 Broadway
New York, New York 10036
© 2024 Morgan Stanley. Morgan Stanley Distribution, Inc.
Morgan Stanley Institutional Fund Trust
High Yield Portfolio
Annual Financial Statements and Additional Information
September 30, 2024
Morgan Stanley Institutional Fund Trust
September 30, 2024
Table of Contents (unaudited)
Portfolio of Investments | | | 2 | | |
Statement of Assets and Liabilities | | | 8 | | |
Statement of Operations | | | 10 | | |
Statements of Changes in Net Assets | | | 11 | | |
Financial Highlights | | | 13 | | |
Notes to Financial Statements | | | 19 | | |
Report of Independent Registered Public Accounting Firm | | | 26 | | |
Investment Advisory Agreement Approval | | | 27 | | |
Federal Tax Notice | | | 29 | | |
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) 869-6397. Please read the prospectuses carefully before you invest or send money.
Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.
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
September 30, 2024
Portfolio of Investments
High Yield Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Fixed Income Securities (97.7%) | |
Corporate Bonds (90.8%) | |
Basic Materials (3.6%) | |
Eldorado Gold Corp. | |
6.25%, 9/1/29 (a) | | $ | 365 | | | $ | 365 | | |
First Quantum Minerals Ltd. | |
9.38%, 3/1/29 (a) | | | 400 | | | | 425 | | |
HB Fuller Co. | |
4.25%, 10/15/28 | | | 315 | | | | 302 | | |
Herens Holdco SARL | |
4.75%, 5/15/28 (a) | | | 490 | | | | 428 | | |
Huntsman International LLC | |
5.70%, 10/15/34 | | | 75 | | | | 74 | | |
IAMGOLD Corp. | |
5.75%, 10/15/28 (a) | | | 374 | | | | 371 | | |
Novelis Corp. | |
4.75%, 1/30/30 (a) | | | 155 | | | | 150 | | |
Nufarm Australia Ltd./Nufarm Americas, Inc. | |
5.00%, 1/27/30 (a) | | | 300 | | | | 279 | | |
| | | | 2,394 | | |
Communications (10.9%) | |
Arches Buyer, Inc. | |
6.13%, 12/1/28 (a) | | | 830 | | | | 711 | | |
Block Communications, Inc. | |
4.88%, 3/1/28 (a) | | | 398 | | | | 376 | | |
C&W Senior Finance Ltd. | |
6.88%, 9/15/27 (a) | | | 465 | | | | 464 | | |
CCO Holdings LLC/CCO Holdings Capital Corp. | |
4.25%, 2/1/31 (a) | | | 255 | | | | 225 | | |
5.00%, 2/1/28 (a) | | | 345 | | | | 336 | | |
Ciena Corp. | |
4.00%, 1/31/30 (a) | | | 190 | | | | 180 | | |
Clear Channel Outdoor Holdings, Inc. | |
7.75%, 4/15/28 (a) | | | 370 | | | | 331 | | |
CSC Holdings LLC | |
5.38%, 2/1/28 (a) | | | 200 | | | | 169 | | |
5.50%, 4/15/27 (a) | | | 430 | | | | 379 | | |
GCI LLC | |
4.75%, 10/15/28 (a) | | | 300 | | | | 288 | | |
LCPR Senior Secured Financing DAC | |
6.75%, 10/15/27 (a) | | | 320 | | | | 293 | | |
Level 3 Financing, Inc. | |
4.88%, 6/15/29 (a) | | | 400 | | | | 338 | | |
Midcontinent Communications | |
8.00%, 8/15/32 (a) | | | 400 | | | | 408 | | |
Sable International Finance Ltd. | |
5.75%, 9/7/27 (a) | | | 249 | | | | 249 | | |
Spotify USA, Inc. | |
0.00%, 3/15/26 | | | 140 | | | | 139 | | |
Townsquare Media, Inc. | |
6.88%, 2/1/26 (a) | | | 530 | | | | 529 | | |
| | | Face
Amount
(000) | | Value
(000) | |
Viavi Solutions, Inc. | |
3.75%, 10/1/29 (a) | | $ | 445 | | | $ | 404 | | |
Virgin Media Finance PLC | |
5.00%, 7/15/30 (a) | | | 370 | | | | 326 | | |
Wayfair LLC | |
7.25%, 10/31/29 (a)(b) | | | 295 | | | | 303 | | |
Ziff Davis, Inc. | |
4.63%, 10/15/30 (a) | | | 405 | | | | 381 | | |
Ziggo BV | |
4.88%, 1/15/30 (a) | | | 350 | | | | 333 | | |
| | | | 7,162 | | |
Consumer, Cyclical (17.8%) | |
Allwyn Entertainment Financing UK PLC | |
7.88%, 4/30/29 (a) | | | 245 | | | | 258 | | |
American Airlines, Inc./AAdvantage Loyalty IP Ltd. | |
5.50%, 4/20/26 (a) | | | 130 | | | | 130 | | |
Arko Corp. | |
5.13%, 11/15/29 (a) | | | 530 | | | | 493 | | |
Ashton Woods USA LLC/Ashton Woods Finance Co. | |
4.63%, 4/1/30 (a) | | | 185 | | | | 177 | | |
BCPE Empire Holdings, Inc. | |
7.63%, 5/1/27 (a) | | | 270 | | | | 271 | | |
Boyne USA, Inc. | |
4.75%, 5/15/29 (a) | | | 350 | | | | 337 | | |
Caesars Entertainment, Inc. | |
4.63%, 10/15/29 (a) | | | 180 | | | | 171 | | |
Cars.com, Inc. | |
6.38%, 11/1/28 (a) | | | 350 | | | | 353 | | |
CD&R Smokey Buyer, Inc./Radio Systems Corp. | |
9.50%, 10/15/29 (a)(b) | | | 275 | | | | 276 | | |
Cougar JV Subsidiary LLC | |
8.00%, 5/15/32 (a) | | | 250 | | | | 265 | | |
Dealer Tire LLC/DT Issuer LLC | |
8.00%, 2/1/28 (a) | | | 228 | | | | 227 | | |
DraftKings Holdings, Inc. | |
0.00%, 3/15/28 | | | 490 | | | | 427 | | |
Dream Finders Homes, Inc. | |
8.25%, 8/15/28 (a) | | | 260 | | | | 275 | | |
Evergreen Acqco 1 LP/TVI, Inc. | |
9.75%, 4/26/28 (a) | | | 198 | | | | 209 | | |
Everi Holdings, Inc. | |
5.00%, 7/15/29 (a) | | | 265 | | | | 264 | | |
Ferrellgas LP/Ferrellgas Finance Corp. | |
5.88%, 4/1/29 (a) | | | 475 | | | | 445 | | |
Full House Resorts, Inc. | |
8.25%, 2/15/28 (a) | | | 175 | | | | 175 | | |
Genting New York LLC/GENNY Capital, Inc. | |
7.25%, 10/1/29 (a) | | | 200 | | | | 203 | | |
GYP Holdings III Corp. | |
4.63%, 5/1/29 (a) | | | 135 | | | | 129 | | |
Hanesbrands, Inc. | |
9.00%, 2/15/31 (a) | | | 235 | | | | 254 | | |
The accompanying notes are an integral part of the financial statements.
2
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
High Yield Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Consumer, Cyclical (cont'd) | |
Jacobs Entertainment, Inc. | |
6.75%, 2/15/29 (a) | | $ | 175 | | | $ | 171 | | |
JB Poindexter & Co., Inc. | |
8.75%, 12/15/31 (a) | | | 445 | | | | 471 | | |
Lindblad Expeditions Holdings, Inc. | |
9.00%, 5/15/28 (a) | | | 244 | | | | 255 | | |
Lindblad Expeditions LLC | |
6.75%, 2/15/27 (a) | | | 235 | | | | 237 | | |
Macy's Retail Holdings LLC | |
4.50%, 12/15/34 | | | 410 | | | | 344 | | |
Midwest Gaming Borrower LLC/Midwest
Gaming Finance Corp. | |
4.88%, 5/1/29 (a) | | | 215 | | | | 206 | | |
NCL Corp. Ltd. | |
6.25%, 3/1/30 (a) | | | 390 | | | | 390 | | |
New Home Co., Inc. | |
9.25%, 10/1/29 (a) | | | 565 | | | | 596 | | |
NMG Holding Co., Inc./Neiman Marcus Group LLC | |
8.50%, 10/1/28 (a) | | | 289 | | | | 294 | | |
Patrick Industries, Inc. | |
4.75%, 5/1/29 (a) | | | 375 | | | | 357 | | |
Real Hero Merger Sub 2, Inc. | |
6.25%, 2/1/29 (a) | | | 510 | | | | 444 | | |
Rivian Holdings LLC/Rivian LLC/Rivian
Automotive LLC | |
6 Month Term SOFR + 6.05%, 11.36%,
10/15/26 (a)(c) | | | 430 | | | | 435 | | |
Speedway Motorsports LLC/Speedway
Funding II, Inc. | |
4.88%, 11/1/27 (a) | | | 635 | | | | 625 | | |
STL Holding Co. LLC | |
8.75%, 2/15/29 (a) | | | 350 | | | | 373 | | |
Thor Industries, Inc. | |
4.00%, 10/15/29 (a) | | | 215 | | | | 200 | | |
Velocity Vehicle Group LLC | |
8.00%, 6/1/29 (a) | | | 135 | | | | 141 | | |
VistaJet Malta Finance PLC/Vista
Management Holding, Inc. | |
6.38%, 2/1/30 (a) | | | 130 | | | | 112 | | |
9.50%, 6/1/28 (a) | | | 420 | | | | 411 | | |
White Cap Buyer LLC | |
6.88%, 10/15/28 (a) | | | 295 | | | | 298 | | |
| | | | 11,699 | | |
Consumer, Non-Cyclical (16.5%) | |
AHP Health Partners, Inc. | |
5.75%, 7/15/29 (a) | | | 482 | | | | 475 | | |
Allied Universal Holdco LLC/Allied
Universal Finance Corp. | |
6.00%, 6/1/29 (a) | | | 355 | | | | 318 | | |
9.75%, 7/15/27 (a) | | | 310 | | | | 311 | | |
Alta Equipment Group, Inc. | |
9.00%, 6/1/29 (a) | | | 305 | | | | 273 | | |
| | | Face
Amount
(000) | | Value
(000) | |
AMN Healthcare, Inc. | |
4.00%, 4/15/29 (a) | | $ | 270 | | | $ | 253 | | |
APi Group DE, Inc. | |
4.13%, 7/15/29 (a) | | | 185 | | | | 174 | | |
Block, Inc. | |
0.25%, 11/1/27 | | | 350 | | | | 303 | | |
Chobani LLC/Chobani Finance Corp., Inc. | |
4.63%, 11/15/28 (a) | | | 230 | | | | 224 | | |
7.63%, 7/1/29 (a) | | | 295 | | | | 310 | | |
Esc Cb National Cineme | |
0.00%, 8/15/26 (d)(e)(f) | | | 600 | | | | — | | |
Fiesta Purchaser, Inc. | |
9.63%, 9/15/32 (a) | | | 200 | | | | 207 | | |
Fortrea Holdings, Inc. | |
7.50%, 7/1/30 (a) | | | 141 | | | | 142 | | |
Garda World Security Corp. | |
8.25%, 8/1/32 (a) | | | 170 | | | | 174 | | |
9.50%, 11/1/27 (a) | | | 295 | | | | 296 | | |
HealthEquity, Inc. | |
4.50%, 10/1/29 (a) | | | 145 | | | | 140 | | |
Heartland Dental LLC/Heartland Dental
Finance Corp. | |
10.50%, 4/30/28 (a) | | | 494 | | | | 529 | | |
Hertz Corp. | |
4.63%, 12/1/26 (a) | | | 440 | | | | 347 | | |
Ingles Markets, Inc. | |
4.00%, 6/15/31 (a) | | | 415 | | | | 380 | | |
LifePoint Health, Inc. | |
5.38%, 1/15/29 (a) | | | 608 | | | | 575 | | |
10.00%, 6/1/32 (a) | | | 180 | | | | 198 | | |
Mavis Tire Express Services Topco Corp. | |
6.50%, 5/15/29 (a) | | | 479 | | | | 461 | | |
Molina Healthcare, Inc. | |
3.88%, 5/15/32 (a) | | | 247 | | | | 226 | | |
Option Care Health, Inc. | |
4.38%, 10/31/29 (a) | | | 205 | | | | 195 | | |
P&L Development LLC/PLD Finance Corp. | |
7.75%, 11/15/25 (a) | | | 590 | | | | 580 | | |
Performance Food Group, Inc. | |
6.13%, 9/15/32 (a) | | | 115 | | | | 118 | | |
Shift4 Payments LLC/Shift4 Payments
Finance Sub, Inc. | |
6.75%, 8/15/32 (a) | | | 130 | | | | 136 | | |
Signal Parent, Inc. | |
6.13%, 4/1/29 (a) | | | 350 | | | | 217 | | |
Sotheby's | |
7.38%, 10/15/27 (a) | | | 250 | | | | 242 | | |
Spectrum Brands, Inc. | |
3.88%, 3/15/31 (a) | | | 190 | | | | 167 | | |
Surgery Center Holdings, Inc. | |
7.25%, 4/15/32 (a) | | | 145 | | | | 152 | | |
TriNet Group, Inc. | |
3.50%, 3/1/29 (a) | | | 390 | | | | 363 | | |
The accompanying notes are an integral part of the financial statements.
3
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
High Yield Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Consumer, Non-Cyclical (cont'd) | |
Triton Water Holdings, Inc. | |
6.25%, 4/1/29 (a) | | $ | 321 | | | $ | 321 | | |
U.S. Acute Care Solutions LLC | |
9.75%, 5/15/29 (a) | | | 135 | | | | 140 | | |
Varex Imaging Corp. | |
7.88%, 10/15/27 (a) | | | 315 | | | | 322 | | |
VM Consolidated, Inc. | |
5.50%, 4/15/29 (a) | | | 310 | | | | 308 | | |
VT Topco, Inc. | |
8.50%, 8/15/30 (a) | | | 240 | | | | 256 | | |
Wand NewCo 3, Inc. | |
7.63%, 1/30/32 (a) | | | 173 | | | | 182 | | |
WASH Multifamily Acquisition, Inc. | |
5.75%, 4/15/26 (a) | | | 345 | | | | 343 | | |
ZipRecruiter, Inc. | |
5.00%, 1/15/30 (a) | | | 510 | | | | 462 | | |
| | | | 10,820 | | |
Energy (8.5%) | |
Archrock Partners LP/Archrock Partners
Finance Corp. | |
6.25%, 4/1/28 (a) | | | 120 | | | | 121 | | |
Blue Racer Midstream LLC/Blue Racer
Finance Corp. | |
7.25%, 7/15/32 (a) | | | 245 | | | | 257 | | |
CNX Midstream Partners LP | |
4.75%, 4/15/30 (a) | | | 175 | | | | 164 | | |
CQP Holdco LP/BIP-V Chinook Holdco LLC | |
5.50%, 6/15/31 (a) | | | 325 | | | | 319 | | |
EQM Midstream Partners LP | |
4.75%, 1/15/31 (a) | | | 150 | | | | 145 | | |
Global Partners LP/GLP Finance Corp. | |
6.88%, 1/15/29 | | | 355 | | | | 357 | | |
8.25%, 1/15/32 (a) | | | 50 | | | | 52 | | |
Kodiak Gas Services LLC | |
7.25%, 2/15/29 (a) | | | 215 | | | | 223 | | |
Kraken Oil & Gas Partners LLC | |
7.63%, 8/15/29 (a) | | | 310 | | | | 310 | | |
Martin Midstream Partners LP/Martin
Midstream Finance Corp. | |
11.50%, 2/15/28 (a) | | | 310 | | | | 341 | | |
Matador Resources Co. | |
6.25%, 4/15/33 (a) | | | 310 | | | | 306 | | |
6.50%, 4/15/32 (a) | | | 195 | | | | 195 | | |
NextEra Energy Partners LP | |
0.00%, 11/15/25 (a) | | | 810 | | | | 760 | | |
Oceaneering International, Inc. | |
6.00%, 2/1/28 | | | 375 | | | | 376 | | |
Sitio Royalties Operating Partnership LP/Sitio
Finance Corp. | |
7.88%, 11/1/28 (a) | | | 265 | | | | 277 | | |
Tallgrass Energy Partners LP/Tallgrass
Energy Finance Corp. | |
5.50%, 1/15/28 (a) | | | 210 | | | | 203 | | |
6.00%, 12/31/30 (a) | | | 225 | | | | 214 | | |
| | | Face
Amount
(000) | | Value
(000) | |
Vermilion Energy, Inc. | |
6.88%, 5/1/30 (a) | | $ | 430 | | | $ | 430 | | |
Vital Energy, Inc. | |
7.88%, 4/15/32 (a) | | | 525 | | | | 509 | | |
| | | | 5,559 | | |
Finance (10.4%) | |
Alliant Holdings Intermediate LLC/Alliant
Holdings Co-Issuer | |
6.75%, 10/15/27 (a) | | | 100 | | | | 100 | | |
AmWINS Group, Inc. | |
4.88%, 6/30/29 (a) | | | 440 | | | | 422 | | |
Castlelake Aviation Finance DAC | |
5.00%, 4/15/27 (a) | | | 490 | | | | 493 | | |
Compass Group Diversified Holdings LLC | |
5.25%, 4/15/29 (a) | | | 220 | | | | 214 | | |
CTR Partnership LP/CareTrust Capital Corp. | |
3.88%, 6/30/28 (a) | | | 460 | | | | 439 | | |
Focus Financial Partners LLC | |
6.75%, 9/15/31 (a) | | | 145 | | | | 147 | | |
GGAM Finance Ltd. | |
5.88%, 3/15/30 (a) | | | 180 | | | | 181 | | |
6.88%, 4/15/29 (a) | | | 240 | | | | 250 | | |
Global Net Lease, Inc./Global Net Lease
Operating Partnership LP | |
3.75%, 12/15/27 (a) | | | 300 | | | | 280 | | |
Greystar Real Estate Partners LLC | |
7.75%, 9/1/30 (a) | | | 255 | | | | 271 | | |
HAT Holdings I LLC/HAT Holdings II LLC | |
3.75%, 9/15/30 (a) | | | 425 | | | | 384 | | |
Hightower Holding LLC | |
6.75%, 4/15/29 (a) | | | 55 | | | | 53 | | |
9.13%, 1/31/30 (a) | | | 190 | | | | 198 | | |
Icahn Enterprises LP/Icahn Enterprises
Finance Corp. | |
5.25%, 5/15/27 | | | 490 | | | | 470 | | |
Iron Mountain, Inc. | |
4.88%, 9/15/29 (a) | | | 180 | | | | 176 | | |
5.25%, 7/15/30 (a) | | | 205 | | | | 203 | | |
Jane Street Group/JSG Finance, Inc. | |
4.50%, 11/15/29 (a) | | | 475 | | | | 458 | | |
7.13%, 4/30/31 (a) | | | 75 | | | | 80 | | |
Jefferies Finance LLC/JFIN Co-Issuer Corp. | |
5.00%, 8/15/28 (a) | | | 560 | | | | 533 | | |
Jefferson Capital Holdings LLC | |
6.00%, 8/15/26 (a) | | | 239 | | | | 239 | | |
National Health Investors, Inc. | |
3.00%, 2/1/31 | | | 450 | | | | 393 | | |
Panther Escrow Issuer LLC | |
7.13%, 6/1/31 (a) | | | 190 | | | | 199 | | |
Pebblebrook Hotel LP/PEB Finance Corp. | |
6.38%, 10/15/29 (a)(b) | | | 55 | | | | 55 | | |
RHP Hotel Properties LP/RHP Finance Corp. | |
4.75%, 10/15/27 | | | 150 | | | | 148 | | |
The accompanying notes are an integral part of the financial statements.
4
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
High Yield Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Finance (cont'd) | |
Rocket Mortgage LLC/Rocket Mortgage
Co-Issuer, Inc. | |
3.88%, 3/1/31 (a) | | $ | 205 | | | $ | 189 | | |
StoneX Group, Inc. | |
7.88%, 3/1/31 (a) | | | 265 | | | | 282 | | |
| | | | 6,857 | | |
Industrials (16.8%) | |
AAR Escrow Issuer LLC | |
6.75%, 3/15/29 (a) | | | 340 | | | | 354 | | |
ACProducts Holdings, Inc. | |
6.38%, 5/15/29 (a) | | | 475 | | | | 295 | | |
AmeriTex HoldCo Intermediate LLC | |
10.25%, 10/15/28 (a) | | | 377 | | | | 395 | | |
Arcosa, Inc. | |
6.88%, 8/15/32 (a) | | | 130 | | | | 136 | | |
Artera Services LLC | |
8.50%, 2/15/31 (a) | | | 335 | | | | 332 | | |
Atkore, Inc. | |
4.25%, 6/1/31 (a) | | | 295 | | | | 270 | | |
Bombardier, Inc. | |
6.00%, 2/15/28 (a) | | | 170 | | | | 171 | | |
7.25%, 7/1/31 (a) | | | 160 | | | | 169 | | |
Brundage-Bone Concrete Pumping Holdings, Inc. | |
6.00%, 2/1/26 (a) | | | 155 | | | | 155 | | |
Cargo Aircraft Management, Inc. | |
4.75%, 2/1/28 (a) | | | 300 | | | | 288 | | |
Carriage Purchaser, Inc. | |
7.88%, 10/15/29 (a) | | | 360 | | | | 335 | | |
Coherent Corp. | |
5.00%, 12/15/29 (a) | | | 185 | | | | 181 | | |
CP Atlas Buyer, Inc. | |
7.00%, 12/1/28 (a) | | | 414 | | | | 384 | | |
Dycom Industries, Inc. | |
4.50%, 4/15/29 (a) | | | 400 | | | | 386 | | |
EnerSys | |
4.38%, 12/15/27 (a) | | | 305 | | | | 297 | | |
6.63%, 1/15/32 (a) | | | 144 | | | | 149 | | |
Enviri Corp. | |
5.75%, 7/31/27 (a) | | | 632 | | | | 621 | | |
EquipmentShare.com, Inc. | |
8.00%, 3/15/33 (a) | | | 115 | | | | 118 | | |
9.00%, 5/15/28 (a) | | | 410 | | | | 429 | | |
Esab Corp. | |
6.25%, 4/15/29 (a) | | | 130 | | | | 134 | | |
GFL Environmental, Inc. | |
4.75%, 6/15/29 (a) | | | 155 | | | | 151 | | |
Great Lakes Dredge & Dock Corp. | |
5.25%, 6/1/29 (a) | | | 510 | | | | 475 | | |
Madison IAQ LLC | |
5.88%, 6/30/29 (a) | | | 285 | | | | 278 | | |
| | | Face
Amount
(000) | | Value
(000) | |
Moog, Inc. | |
4.25%, 12/15/27 (a) | | $ | 300 | | | $ | 292 | | |
Mueller Water Products, Inc. | |
4.00%, 6/15/29 (a) | | | 210 | | | | 200 | | |
New Enterprise Stone & Lime Co., Inc. | |
5.25%, 7/15/28 (a) | | | 245 | | | | 239 | | |
Reworld Holding Corp. | |
4.88%, 12/1/29 (a) | | | 270 | | | | 254 | | |
5.00%, 9/1/30 | | | 105 | | | | 99 | | |
Seaspan Corp. | |
5.50%, 8/1/29 (a) | | | 400 | | | | 381 | | |
Terex Corp. | |
6.25%, 10/15/32 (a)(b) | | | 430 | | | | 435 | | |
TK Elevator U.S. Newco, Inc. | |
5.25%, 7/15/27 (a) | | | 325 | | | | 322 | | |
Trident TPI Holdings, Inc. | |
12.75%, 12/31/28 (a) | | | 185 | | | | 206 | | |
TriMas Corp. | |
4.13%, 4/15/29 (a) | | | 405 | | | | 388 | | |
Trivium Packaging Finance BV | |
8.50%, 8/15/27 (a) | | | 375 | | | | 376 | | |
TTM Technologies, Inc. | |
4.00%, 3/1/29 (a) | | | 270 | | | | 256 | | |
Vontier Corp. | |
2.95%, 4/1/31 | | | 350 | | | | 305 | | |
Waste Pro USA, Inc. | |
5.50%, 2/15/26 (a) | | | 410 | | | | 409 | | |
Watco Cos. LLC/Watco Finance Corp. | |
7.13%, 8/1/32 (a) | | | 265 | | | | 276 | | |
Wrangler Holdco Corp. | |
6.63%, 4/1/32 (a) | | | 90 | | | | 94 | | |
| | | | 11,035 | | |
Technology (4.3%) | |
Amentum Escrow Corp. | |
7.25%, 8/1/32 (a) | | | 75 | | | | 78 | | |
AthenaHealth Group, Inc. | |
6.50%, 2/15/30 (a) | | | 430 | | | | 413 | | |
Clarivate Science Holdings Corp. | |
4.88%, 7/1/29 (a) | | | 135 | | | | 130 | | |
Cloud Software Group, Inc. | |
9.00%, 9/30/29 (a) | | | 345 | | | | 351 | | |
Dye & Durham Ltd. | |
8.63%, 4/15/29 (a) | | | 315 | | | | 334 | | |
KBR, Inc. | |
4.75%, 9/30/28 (a) | | | 380 | | | | 364 | | |
Rackspace Technology Global, Inc. | |
5.38%, 12/1/28 (a) | | | 340 | | | | 103 | | |
ROBLOX Corp. | |
3.88%, 5/1/30 (a) | | | 420 | | | | 391 | | |
Rocket Software, Inc. | |
6.50%, 2/15/29 (a) | | | 715 | | | | 681 | | |
| | | | 2,845 | | |
The accompanying notes are an integral part of the financial statements.
5
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
High Yield Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Utilities (2.0%) | |
Leeward Renewable Energy Operations LLC | |
4.25%, 7/1/29 (a) | | $ | 645 | | | $ | 609 | | |
Pike Corp. | |
5.50%, 9/1/28 (a) | | | 200 | | | | 196 | | |
8.63%, 1/31/31 (a) | | | 125 | | | | 134 | | |
TransAlta Corp. | |
7.75%, 11/15/29 | | | 325 | | | | 343 | | |
| | | | 1,282 | | |
| | | | 59,653 | | |
Senior Loan Interests (6.9%) | |
Communications (0.9%) | |
PUG LLC
2024 Extended Term Loan B
1 Month SOFR + 4.75%,
9.60%, 3/15/30 (c) | | | 604 | | | | 604 | | |
Consumer, Cyclical (2.3%) | |
Hanesbrands, Inc.
2021 Term Loan
1 Month SOFR + 2.00%,
6.95%, 11/19/26 (c) | | | 608 | | | | 602 | | |
Peloton Interactive, Inc.
2024 Term Loan B
1 Month SOFR + 6.00%,
10.85%, 5/23/29 (c) | | | 459 | | | | 463 | | |
Petco Health & Wellness Co., Inc.
2021 Term Loan B
3 Month SOFR + 3.25%,
8.12%, 3/3/28 (c) | | | 475 | | | | 452 | | |
| | | | 1,517 | | |
Consumer, Non-Cyclical (0.8%) | |
AlixPartners LLP
2021 USD Term Loan B
1 Month USD SOFR + 2.50%,
7.46%, 2/4/28 (c) | | | 190 | | | | 191 | | |
Triton Water Holdings, Inc.
Term Loan
3 Month SOFR + 3.25%,
8.12%, 3/31/28 (c) | | | 337 | | | | 337 | | |
| | | | 528 | | |
Energy (1.0%) | |
EPIC Y-Grade Services LP
2024 Term Loan B
3 Month SOFR + 5.75%,
11.07%, 6/29/29 (c) | | | 650 | | | | 649 | | |
Industrials (1.9%) | |
Grinding Media, Inc.
2021 Term Loan B
3 Month USD SOFR + 4.00%,
9.57%, 10/12/28 (c) | | | 689 | | | | 689 | | |
Iris Holding, Inc.
Term Loan
3 Month SOFR + 4.75%,
10.10%, 6/28/28 (c) | | | 597 | | | | 565 | | |
| | | | 1,254 | | |
| | | | 4,552 | | |
Total Fixed Income Securities (Cost $62,338) | | | 64,205 | | |
| | | Shares | | Value
(000) | |
Common Stocks (0.1%) | |
Automobile Components (0.0%) | |
Exide Technologies (f)(g) | | | 592 | | | $ | — | | |
Diversified REITs (0.0%)‡ | |
American Gilsonite Co. (g) | | | 500 | | | | 2 | | |
Machinery (0.1%) | |
Iracore Investment Holdings, Inc., Class A (f)(g) | | | 470 | | | | 83 | | |
Semiconductors & Semiconductor Equipment (0.0%)‡ | |
UC Holdings, Inc. (g) | | | 2,826 | | | | 13 | | |
Total Common Stocks (Cost $151) | | | 98 | | |
Short-Term Investment (1.7%) | |
Investment Company (1.7%) | |
Morgan Stanley Institutional Liquidity Funds —
Government Portfolio — Institutional Class,
4.85% (See Note G) (Cost $1,092) | | | 1,092,444 | | | | 1,092 | | |
Total Investments (99.5%) (Cost $63,581) (h)(i) | | | 65,395 | | |
Other Assets in Excess of Liabilities (0.5%) | | | 333 | | |
Net Assets (100.0%) | | $ | 65,728 | | |
‡ Amount is less than 0.05%.
(a) 144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.
(b) When-issued security.
(c) Floating or variable rate securities: The rates disclosed are as of September 30, 2024. 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) Issuer in bankruptcy.
(e) Non-income producing security; bond in default.
(f) At September 30, 2024, the Fund held fair valued securities valued at approximately $83,000, representing 0.1% of net assets. These securities have been fair valued using significant unobservable inputs as determined in good faith under procedures established by and under the general supervision of the Trust's (as defined herein) Trustees.
(g) Non-income producing security.
(h) Securities are available for collateral in connection with purchase of securities on a forward commitment basis.
(i) At September 30, 2024, the aggregate cost for federal income tax purposes is approximately $63,730,000. The aggregate gross unrealized appreciation is approximately $3,465,000 and the aggregate gross unrealized depreciation is approximately $803,000, resulting in net unrealized appreciation of approximately $2,662,000.
DAC Designated Activity Company.
SOFR Secured Overnight Financing Rate.
USD United States Dollar.
The accompanying notes are an integral part of the financial statements.
6
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
High Yield Portfolio
Portfolio Composition
Classification | | Percentage of
Total Investments | |
Consumer, Cyclical | | | 20.2 | % | |
Industrials | | | 18.8 | | |
Consumer, Non-Cyclical | | | 17.3 | | |
Communications | | | 11.9 | | |
Other* | | | 11.8 | | |
Finance | | | 10.5 | | |
Energy | | | 9.5 | | |
Total Investments | | | 100.0 | % | |
* Industries and/or investment types representing less than 5% of total investments.
The accompanying notes are an integral part of the financial statements.
7
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statement of Assets and Liabilities | | September 30, 2024
(000) | |
Assets: | |
Investments in Securities of Unaffiliated Issuers, at Value (Cost $62,489) | | $ | 64,303 | | |
Investment in Security of Affiliated Issuer, at Value (Cost $1,092) | | | 1,092 | | |
Total Investments in Securities, at Value (Cost $63,581) | | | 65,395 | | |
Interest Receivable | | | 1,124 | | |
Receivable for Investments Sold | | | 1,093 | | |
Due from Adviser | | | 49 | | |
Receivable for Fund Shares Sold | | | 29 | | |
Receivable from Affiliate | | | 7 | | |
Other Assets | | | 56 | | |
Total Assets | | | 67,753 | | |
Liabilities: | |
Payable for Investments Purchased | | | 1,870 | | |
Payable for Professional Fees | | | 93 | | |
Payable for Sub Transfer Agency Fees — Class I | | | 21 | | |
Payable for Sub Transfer Agency Fees — Class A | | | 1 | | |
Payable for Sub Transfer Agency Fees — Class L | | | — | @ | |
Payable for Sub Transfer Agency Fees — Class C | | | — | @ | |
Payable for Custodian Fees | | | 6 | | |
Payable for Shareholder Services Fees — Class A | | | 2 | | |
Payable for Distribution and Shareholder Services Fees — Class L | | | — | @ | |
Payable for Distribution and Shareholder Services Fees — Class C | | | 3 | | |
Payable for Administration Fees | | | 4 | | |
Payable for Transfer Agency Fees — Class I | | | 2 | | |
Payable for Transfer Agency Fees — Class A | | | 1 | | |
Payable for Transfer Agency Fees — Class L | | | — | @ | |
Payable for Transfer Agency Fees — Class C | | | — | @ | |
Payable for Transfer Agency Fees — Class R6 | | | — | @ | |
Payable for Transfer Agency Fees — Class IR | | | — | @ | |
Payable for Fund Shares Redeemed | | | — | @ | |
Other Liabilities | | | 22 | | |
Total Liabilities | | | 2,025 | | |
Net Assets | | $ | 65,728 | | |
Net Assets Consist of: | |
Paid-in-Capital | | $ | 96,338 | | |
Total Accumulated Loss | | | (30,610 | ) | |
Net Assets | | $ | 65,728 | | |
The accompanying notes are an integral part of the financial statements.
8
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statement of Assets and Liabilities (cont'd) | | September 30, 2024
(000) | |
CLASS I: | |
Net Assets | | $ | 46,008 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 5,297,417 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 8.68 | | |
CLASS A: | |
Net Assets | | $ | 11,489 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 1,326,444 | | |
Net Asset Value, Redemption Price Per Share | | $ | 8.66 | | |
Maximum Sales Load | | | 3.25 | % | |
Maximum Sales Charge | | $ | 0.29 | | |
Maximum Offering Price Per Share | | $ | 8.95 | | |
CLASS L: | |
Net Assets | | $ | 174 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 20,033 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 8.68 | | |
CLASS C: | |
Net Assets | | $ | 3,303 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 381,806 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 8.65 | | |
CLASS R6: | |
Net Assets | | $ | 4,742 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 545,707 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 8.69 | | |
CLASS IR: | |
Net Assets | | $ | 12 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 1,425 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 8.68 | | |
@ Amount is less than $500.
The accompanying notes are an integral part of the financial statements.
9
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statement of Operations | | Year Ended
September 30, 2024
(000) | |
Investment Income: | |
Interest from Securities of Unaffiliated Issuers | | $ | 7,788 | | |
Dividends from Security of Affiliated Issuer (Note G) | | | 95 | | |
Dividends from Securities of Unaffiliated Issuers | | | 8 | | |
Total Investment Income | | | 7,891 | | |
Expenses: | |
Advisory Fees (Note B) | | | 633 | | |
Professional Fees | | | 200 | | |
Sub Transfer Agency Fees — Class I | | | 110 | | |
Sub Transfer Agency Fees — Class A | | | 11 | | |
Sub Transfer Agency Fees — Class L | | | — | @ | |
Sub Transfer Agency Fees — Class C | | | 3 | | |
Registration Fees | | | 86 | | |
Administration Fees (Note C) | | | 84 | | |
Shareholder Services Fees — Class A (Note D) | | | 28 | | |
Distribution and Shareholder Services Fees — Class L (Note D) | | | 1 | | |
Distribution and Shareholder Services Fees — Class C (Note D) | | | 35 | | |
Shareholder Reporting Fees | | | 28 | | |
Transfer Agency Fees — Class I (Note E) | | | 12 | | |
Transfer Agency Fees — Class A (Note E) | | | 4 | | |
Transfer Agency Fees — Class L (Note E) | | | 2 | | |
Transfer Agency Fees — Class C (Note E) | | | 3 | | |
Transfer Agency Fees — Class R6 (Note E) | | | 3 | | |
Transfer Agency Fees — Class IR (Note E) | | | 2 | | |
Custodian Fees (Note F) | | | 15 | | |
Trustees' Fees and Expenses | | | 3 | | |
Other Expenses | | | 20 | | |
Total Expenses | | | 1,283 | | |
Waiver of Advisory Fees (Note B) | | | (415 | ) | |
Reimbursement of Class Specific Expenses — Class I (Note B) | | | (97 | ) | |
Reimbursement of Class Specific Expenses — Class A (Note B) | | | (— | @) | |
Reimbursement of Class Specific Expenses — Class L (Note B) | | | (2 | ) | |
Reimbursement of Class Specific Expenses — Class C (Note B) | | | (2 | ) | |
Reimbursement of Class Specific Expenses — Class R6 (Note B) | | | (3 | ) | |
Reimbursement of Class Specific Expenses — Class IR (Note B) | | | (2 | ) | |
Reimbursement of Transfer Agency and Sub Transfer Agency Fees (Note B) | | | (61 | ) | |
Rebate from Morgan Stanley Affiliate (Note G) | | | (3 | ) | |
Net Expenses | | | 698 | | |
Net Investment Income | | | 7,193 | | |
Realized Gain (Loss): | |
Investments Sold | | | (4,320 | ) | |
Investments in Affiliates | | | 3 | | |
Net Realized Loss | | | (4,317 | ) | |
Change in Unrealized Appreciation (Depreciation): | |
Investments | | | 11,609 | | |
Net Realized Loss and Change in Unrealized Appreciation (Depreciation) | | | 7,292 | | |
Net Increase in Net Assets Resulting from Operations | | $ | 14,485 | | |
@ Amount is less than $500.
The accompanying notes are an integral part of the financial statements.
10
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statements of Changes in Net Assets | | Year Ended
September 30, 2024
(000) | | Year Ended
September 30, 2023
(000) | |
Increase (Decrease) in Net Assets: | |
Operations: | |
Net Investment Income | | $ | 7,193 | | | $ | 8,132 | | |
Net Realized Loss | | | (4,317 | ) | | | (12,076 | ) | |
Net Change in Unrealized Appreciation (Depreciation) | | | 11,609 | | | | 17,068 | | |
Net Increase in Net Assets Resulting from Operations | | | 14,485 | | | | 13,124 | | |
Dividends and Distributions to Shareholders: | |
Class I | | | (5,882 | ) | | | (6,936 | ) | |
Class A | | | (763 | ) | | | (752 | ) | |
Class L | | | (11 | ) | | | (10 | ) | |
Class C | | | (208 | ) | | | (214 | ) | |
Class R6 | | | (463 | ) | | | (389 | ) | |
Class IR | | | (1 | ) | | | (1 | ) | |
Class W* | | | — | | | | (1 | ) | |
Total Dividends and Distributions to Shareholders | | | (7,328 | ) | | | (8,303 | ) | |
Capital Share Transactions, including direct exchanges pursuant to share class conversions
for all periods presented, were as follows:(1) | |
Class I: | |
Subscribed | | | 32,056 | | | | 28,162 | | |
Distributions Reinvested | | | 5,496 | | | | 6,642 | | |
Redeemed | | | (83,006 | ) | | | (71,061 | ) | |
Class A: | |
Subscribed | | | 6,540 | | | | 7,175 | | |
Distributions Reinvested | | | 763 | | | | 752 | | |
Redeemed | | | (7,804 | ) | | | (8,669 | ) | |
Class L: | |
Exchanged | | | — | | | | 37 | | |
Distributions Reinvested | | | 11 | | | | 10 | | |
Redeemed | | | (15 | ) | | | (110 | ) | |
Class C: | |
Subscribed | | | 143 | | | | 537 | | |
Distributions Reinvested | | | 208 | | | | 214 | | |
Redeemed | | | (833 | ) | | | (1,466 | ) | |
Class R6: | |
Subscribed | | | 4,431 | | | | 13 | | |
Distributions Reinvested | | | 463 | | | | 389 | | |
Redeemed | | | (5,471 | ) | | | (3,832 | ) | |
Class IR: | |
Distributions Reinvested | | | 1 | | | | 1 | | |
Class W:* | |
Distributions Reinvested | | | — | | | | 1 | | |
Redeemed | | | — | | | | (10 | ) | |
Net Decrease in Net Assets Resulting from Capital Share Transactions | | | (47,017 | ) | | | (41,215 | ) | |
Total Decrease in Net Assets | | | (39,860 | ) | | | (36,394 | ) | |
Net Assets: | |
Beginning of Period | | | 105,588 | | | | 141,982 | | |
End of Period | | $ | 65,728 | | | $ | 105,588 | | |
The accompanying notes are an integral part of the financial statements.
11
Morgan Stanley Institutional Fund Trust
September 30, 2024
Statements of Changes in Net Assets (cont'd) | | Year Ended
September 30, 2024
(000) | | Year Ended
September 30, 2023
(000) | |
(1) Capital Share Transactions: | |
Class I: | |
Shares Subscribed | | | 3,833 | | | | 3,470 | | |
Shares Issued on Distributions Reinvested | | | 661 | | | | 819 | | |
Shares Redeemed | | | (9,794 | ) | | | (8,737 | ) | |
Net Decrease in Class I Shares Outstanding | | | (5,300 | ) | | | (4,448 | ) | |
Class A: | |
Shares Subscribed | | | 786 | | | | 882 | | |
Shares Issued on Distributions Reinvested | | | 92 | | | | 93 | | |
Shares Redeemed | | | (938 | ) | | | (1,068 | ) | |
Net Decrease in Class A Shares Outstanding | | | (60 | ) | | | (93 | ) | |
Class L: | |
Shares Exchanged | | | — | | | | 5 | | |
Shares Issued on Distributions Reinvested | | | 1 | | | | 1 | | |
Shares Redeemed | | | (2 | ) | | | (14 | ) | |
Net Decrease in Class L Shares Outstanding | | | (1 | ) | | | (8 | ) | |
Class C: | |
Shares Subscribed | | | 18 | | | | 65 | | |
Shares Issued on Distributions Reinvested | | | 25 | | | | 27 | | |
Shares Redeemed | | | (100 | ) | | | (181 | ) | |
Net Decrease in Class C Shares Outstanding | | | (57 | ) | | | (89 | ) | |
Class R6: | |
Shares Subscribed | | | 523 | | | | 1 | | |
Shares Issued on Distributions Reinvested | | | 55 | | | | 48 | | |
Shares Redeemed | | | (646 | ) | | | (475 | ) | |
Net Decrease in Class R6 Shares Outstanding | | | (68 | ) | | | (426 | ) | |
Class IR: | |
Shares Issued on Distributions Reinvested | | | — | @ | | | — | @ | |
Class W:* | |
Shares Issued on Distributions Reinvested | | | — | | | | — | @ | |
Shares Redeemed | | | — | | | | (1 | ) | |
Net Decrease in Class W Shares Outstanding | | | — | | | | (1 | ) | |
* Effective June 28, 2023, Class W shares were liquidated.
@ Amount is less than 500 shares.
The accompanying notes are an integral part of the financial statements.
12
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
High Yield Portfolio
| | | Class I | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 8.09 | | | $ | 7.84 | | | $ | 9.68 | | | $ | 9.19 | | | $ | 9.78 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.58 | | | | 0.54 | | | | 0.50 | | | | 0.53 | | | | 0.57 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.60 | | | | 0.26 | | | | (1.83 | ) | | | 0.49 | | | | (0.57 | ) | |
Total from Investment Operations | | | 1.18 | | | | 0.80 | | | | (1.33 | ) | | | 1.02 | | | | 0.00 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.59 | ) | | | (0.55 | ) | | | (0.51 | ) | | | (0.53 | ) | | | (0.59 | ) | |
Net Asset Value, End of Period | | $ | 8.68 | | | $ | 8.09 | | | $ | 7.84 | | | $ | 9.68 | | | $ | 9.19 | | |
Total Return(2) | | | 15.15 | %(3) | | | 10.34 | % | | | (14.27 | )% | | | 11.38 | % | | | 0.15 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 46,008 | | | $ | 85,713 | | | $ | 117,898 | | | $ | 161,038 | | | $ | 155,539 | | |
Ratio of Expenses Before Expense Limitation | | | 1.16 | % | | | 1.19 | % | | | 1.04 | % | | | 1.03 | % | | | 1.02 | % | |
Ratio of Expenses After Expense Limitation | | | 0.59 | %(4)(5) | | | 0.65 | %(5) | | | 0.65 | %(5) | | | 0.65 | %(5) | | | 0.65 | %(5) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 0.65 | %(5) | | | 0.65 | %(5) | |
Ratio of Net Investment Income | | | 6.89 | %(4)(5) | | | 6.66 | %(5) | | | 5.64 | %(5) | | | 5.50 | %(5) | | | 6.20 | %(5) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | |
Portfolio Turnover Rate | | | 80 | % | | | 57 | % | | | 28 | % | | | 54 | % | | | 69 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value as of the last business day of the period.
(3) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class I shares.
(4) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class I shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.65 | % | | | 6.83 | % | |
(5) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(6) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
13
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
High Yield Portfolio
| | | Class A | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 8.07 | | | $ | 7.82 | | | $ | 9.67 | | | $ | 9.17 | | | $ | 9.76 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.55 | | | | 0.51 | | | | 0.47 | | | | 0.49 | | | | 0.55 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.60 | | | | 0.26 | | | | (1.84 | ) | | | 0.51 | | | | (0.58 | ) | |
Total from Investment Operations | | | 1.15 | | | | 0.77 | | | | (1.37 | ) | | | 1.00 | | | | (0.03 | ) | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.56 | ) | | | (0.52 | ) | | | (0.48 | ) | | | (0.50 | ) | | | (0.56 | ) | |
Net Asset Value, End of Period | | $ | 8.66 | | | $ | 8.07 | | | $ | 7.82 | | | $ | 9.67 | | | $ | 9.17 | | |
Total Return(2) | | | 14.81 | %(3) | | | 9.98 | % | | | (14.69 | )% | | | 11.14 | % | | | (0.22 | )% | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 11,489 | | | $ | 11,192 | | | $ | 11,573 | | | $ | 17,116 | | | $ | 14,595 | | |
Ratio of Expenses Before Expense Limitation | | | 1.39 | % | | | 1.45 | % | | | 1.29 | % | | | 1.27 | % | | | 1.31 | % | |
Ratio of Expenses After Expense Limitation | | | 0.94 | %(4)(5) | | | 1.00 | %(5) | | | 1.00 | %(5) | | | 0.99 | %(5) | | | 1.00 | %(5) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 0.99 | %(5) | | | 1.00 | %(5) | |
Ratio of Net Investment Income | | | 6.54 | %(4)(5) | | | 6.31 | %(5) | | | 5.27 | %(5) | | | 5.16 | %(5) | | | 5.87 | %(5) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | |
Portfolio Turnover Rate | | | 80 | % | | | 57 | % | | | 28 | % | | | 54 | % | | | 69 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.
(3) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class A shares.
(4) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class A shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 1.00 | % | | | 6.48 | % | |
(5) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(6) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
14
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
High Yield Portfolio
| | | Class L | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 8.08 | | | $ | 7.83 | | | $ | 9.67 | | | $ | 9.17 | | | $ | 9.76 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.53 | | | | 0.49 | | | | 0.45 | | | | 0.47 | | | | 0.52 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.61 | | | | 0.25 | | | | (1.84 | ) | | | 0.51 | | | | (0.58 | ) | |
Total from Investment Operations | | | 1.14 | | | | 0.74 | | | | (1.39 | ) | | | 0.98 | | | | (0.06 | ) | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.54 | ) | | | (0.49 | ) | | | (0.45 | ) | | | (0.48 | ) | | | (0.53 | ) | |
Net Asset Value, End of Period | | $ | 8.68 | | | $ | 8.08 | | | $ | 7.83 | | | $ | 9.67 | | | $ | 9.17 | | |
Total Return(2) | | | 14.47 | %(3) | | | 9.76 | % | | | (14.92 | )% | | | 10.84 | % | | | (0.46 | )% | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 174 | | | $ | 166 | | | $ | 222 | | | $ | 383 | | | $ | 425 | | |
Ratio of Expenses Before Expense Limitation | | | 2.96 | % | | | 3.18 | % | | | 2.16 | % | | | 1.98 | % | | | 1.91 | % | |
Ratio of Expenses After Expense Limitation | | | 1.19 | %(4)(5) | | | 1.25 | %(5) | | | 1.25 | %(5) | | | 1.25 | %(5) | | | 1.25 | %(5) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 1.25 | %(5) | | | 1.25 | %(5) | |
Ratio of Net Investment Income | | | 6.29 | %(4)(5) | | | 6.05 | %(5) | | | 5.02 | %(5) | | | 4.90 | %(5) | | | 5.60 | %(5) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | |
Portfolio Turnover Rate | | | 80 | % | | | 57 | % | | | 28 | % | | | 54 | % | | | 69 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value as of the last business day of the period.
(3) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class L shares.
(4) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class L shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 1.25 | % | | | 6.23 | % | |
(5) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(6) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
15
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
High Yield Portfolio
| | | Class C | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 8.06 | | | $ | 7.81 | | | $ | 9.65 | | | $ | 9.16 | | | $ | 9.75 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.48 | | | | 0.45 | | | | 0.40 | | | | 0.42 | | | | 0.46 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.61 | | | | 0.26 | | | | (1.83 | ) | | | 0.50 | | | | (0.56 | ) | |
Total from Investment Operations | | | 1.09 | | | | 0.71 | | | | (1.43 | ) | | | 0.92 | | | | (0.10 | ) | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.50 | ) | | | (0.46 | ) | | | (0.41 | ) | | | (0.43 | ) | | | (0.49 | ) | |
Net Asset Value, End of Period | | $ | 8.65 | | | $ | 8.06 | | | $ | 7.81 | | | $ | 9.65 | | | $ | 9.16 | | |
Total Return(2) | | | 13.94 | %(3) | | | 9.16 | % | | | (15.27 | )% | | | 10.20 | % | | | (0.93 | )% | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 3,303 | | | $ | 3,539 | | | $ | 4,121 | | | $ | 6,418 | | | $ | 7,633 | | |
Ratio of Expenses Before Expense Limitation | | | 2.19 | % | | | 2.22 | % | | | 2.05 | % | | | 2.01 | % | | | 2.02 | % | |
Ratio of Expenses After Expense Limitation | | | 1.69 | %(4)(5) | | | 1.75 | %(5) | | | 1.75 | %(5) | | | 1.74 | %(5) | | | 1.74 | %(5) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 1.74 | %(5) | | | 1.74 | %(5) | |
Ratio of Net Investment Income | | | 5.79 | %(4)(5) | | | 5.56 | %(5) | | | 4.51 | %(5) | | | 4.41 | %(5) | | | 5.06 | %(5) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | |
Portfolio Turnover Rate | | | 80 | % | | | 57 | % | | | 28 | % | | | 54 | % | | | 69 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.
(3) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class C shares.
(4) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class C shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 1.75 | % | | | 5.73 | % | |
(5) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(6) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
16
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
High Yield Portfolio
| | | Class R6(1) | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 8.09 | | | $ | 7.84 | | | $ | 9.69 | | | $ | 9.19 | | | $ | 9.78 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(2) | | | 0.58 | | | | 0.54 | | | | 0.51 | | | | 0.53 | | | | 0.55 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.61 | | | | 0.26 | | | | (1.84 | ) | | | 0.50 | | | | (0.55 | ) | |
Total from Investment Operations | | | 1.19 | | | | 0.80 | | | | (1.33 | ) | | | 1.03 | | | | 0.00 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.59 | ) | | | (0.55 | ) | | | (0.52 | ) | | | (0.53 | ) | | | (0.59 | ) | |
Net Asset Value, End of Period | | $ | 8.69 | | | $ | 8.09 | | | $ | 7.84 | | | $ | 9.69 | | | $ | 9.19 | | |
Total Return(3) | | | 15.31 | %(4) | | | 10.35 | % | | | (14.30 | )% | | | 11.49 | % | | | 0.18 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 4,742 | | | $ | 4,967 | | | $ | 8,149 | | | $ | 3,526 | | | $ | 5,471 | | |
Ratio of Expenses Before Expense Limitation | | | 1.06 | % | | | 1.10 | % | | | 0.94 | % | | | 0.94 | % | | | 0.94 | % | |
Ratio of Expenses After Expense Limitation | | | 0.56 | %(5)(6) | | | 0.62 | %(6) | | | 0.62 | %(6) | | | 0.62 | %(6) | | | 0.62 | %(6) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 0.62 | %(6) | | | 0.62 | %(6) | |
Ratio of Net Investment Income | | | 6.92 | %(5)(6) | | | 6.69 | %(6) | | | 5.82 | %(6) | | | 5.54 | %(6) | | | 6.20 | %(6) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | | | 0.00 | %(7) | |
Portfolio Turnover Rate | | | 80 | % | | | 57 | % | | | 28 | % | | | 54 | % | | | 69 | % | |
(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.
(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) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class R6 shares.
(5) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class R6 shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.62 | % | | | 6.86 | % | |
(6) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(7) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
17
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
High Yield Portfolio
| | | Class IR | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 8.09 | | | $ | 7.84 | | | $ | 9.69 | | | $ | 9.19 | | | $ | 9.78 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.58 | | | | 0.54 | | | | 0.48 | | | | 0.50 | | | | 0.52 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.60 | | | | 0.26 | | | | (1.81 | ) | | | 0.53 | | | | (0.52 | ) | |
Total from Investment Operations | | | 1.18 | | | | 0.80 | | | | (1.33 | ) | | | 1.03 | | | | 0.00 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.59 | ) | | | (0.55 | ) | | | (0.52 | ) | | | (0.53 | ) | | | (0.59 | ) | |
Net Asset Value, End of Period | | $ | 8.68 | | | $ | 8.09 | | | $ | 7.84 | | | $ | 9.69 | | | $ | 9.19 | | |
Total Return(2) | | | 15.18 | %(3) | | | 10.36 | % | | | (14.30 | )% | | | 11.49 | % | | | 0.18 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 12 | | | $ | 11 | | | $ | 10 | | | $ | 11 | | | $ | 10 | | |
Ratio of Expenses Before Expense Limitation | | | 18.85 | % | | | 21.53 | % | | | 19.61 | % | | | 18.97 | % | | | 20.43 | % | |
Ratio of Expenses After Expense Limitation | | | 0.56 | %(4)(5) | | | 0.62 | %(5) | | | 0.62 | %(5) | | | 0.62 | %(5) | | | 0.62 | %(5) | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | 0.62 | %(5) | | | 0.62 | %(5) | |
Ratio of Net Investment Income | | | 6.92 | %(4)(5) | | | 6.69 | %(5) | | | 5.38 | %(5) | | | 5.26 | %(5) | | | 5.70 | %(5) | |
Ratio of Rebate from Morgan Stanley Affiliates | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | | | 0.00 | %(6) | |
Portfolio Turnover Rate | | | 80 | % | | | 57 | % | | | 28 | % | | | 54 | % | | | 69 | % | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value as of the last business day of the period.
(3) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency and sub transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class IR shares.
(4) If the Fund had not received the reimbursement of transfer agency and sub transfer agency fees from the Adviser, the Ratio of Expenses After Expense Limitation and Ratio of Net Investment Income, would have been as follows for Class IR shares:
Period Ended | | Expense
Ratio | | Net Investment
Income Ratio | |
September 30, 2024 | | | 0.62 | % | | | 6.86 | % | |
(5) The Ratio of Expenses After Expense Limitation and Ratio of 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."
(6) Amount is less than 0.005%.
The accompanying notes are an integral part of the financial statements.
18
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements
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 six separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). All Funds are considered diversified for purposes of the Act.
The Trust applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the Fund's Statement of Assets and Liabilities through the date that the financial statements were issued.
The accompanying financial statements relate to the High Yield Portfolio. The Fund seeks total return. The Fund has issued six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. Class C shares will automatically convert to Class A shares eight years after the end of the calendar month in which the shares were purchased. On June 28, 2023, Class W shares were liquidated as a share class of the Fund. Accordingly, no financial highlights have been presented for Class W.
The Fund has suspended offering 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. In addition, Class L shares of the Fund may be exchanged for Class L shares of any Morgan Stanley Multi-Class Fund, even though Class L shares are closed to investors.
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) Fixed income 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. If Morgan Stanley Investment Management Inc. (the "Adviser"), a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing
service/vendor does not reflect the security's fair value or the pricing service/vendor or exchange is unable to provide a price, prices from reputable brokers/dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from reputable brokers/dealers; (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. If only bid prices are available then the latest bid price may be used. 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/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/dealers; (4) certain senior loans ("Senior Loans") are valued based on quotations received from an independent pricing service; (5) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Trustees. Each business day, the Fund uses a third-party pricing service approved by the Trustees to assist with the valuation of foreign equity securities. Events occurring
19
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities to more accurately reflect their fair value as of the close of regular trading on 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.
In connection with Rule 2a-5 of the Act, the Trustees have designated the Trust's Adviser as its valuation designee. The valuation designee has responsibility for 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, as valuation designee, 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.
2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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 September 30, 2024:
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 | | $ | — | | | $ | 59,653 | | | $ | — | † | | $ | 59,653 | † | |
Senior Loan Interests | | | — | | | | 4,552 | | | | — | | | | 4,552 | | |
Total Fixed Income
Securities | | | — | | | | 64,205 | | | | — | † | | | 64,205 | † | |
Common Stocks | |
Automobile Components | | | — | | | | — | | | | — | † | | | — | † | |
Diversified REITs | | | — | | | | 2 | | | | — | | | | 2 | | |
Machinery | | | — | | | | — | | | | 83 | | | | 83 | | |
Semiconductors &
Semiconductor
Equipment | | | — | | | | 13 | | | | — | | | | 13 | | |
Total Common Stocks | | | — | | | | 15 | | | | 83 | † | | | 98 | † | |
Short-Term Investment | |
Investment Company | | | 1,092 | | | | — | | | | — | | | | 1,092 | | |
Total Assets | | $ | 1,092 | | | $ | 64,220 | | | $ | 83 | † | | $ | 65,395 | † | |
† Includes one or more securities 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.
20
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:
| | | Fixed
Income
(000) | | Common
Stock
(000) | |
Beginning Balance | | $ | — | | | $ | 72 | † | |
Purchases | | | — | | | | — | | |
Sales | | | — | | | | — | | |
Transfers in | | | — | † | | | — | | |
Transfers out | | | — | | | | — | | |
Corporate actions | | | — | | | | — | | |
Change in unrealized appreciation (depreciation) | | | — | | | | 11 | | |
Realized gains (losses) | | | — | | | | — | | |
Ending Balance | | $ | — | † | | $ | 83 | † | |
Net change in unrealized appreciation (depreciation) from
investments still held as of September 30, 2024 | | $ | — | | | $ | 11 | | |
† Includes one or more securities valued at zero.
The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2024:
| | | Fair Value at
September 30, 2024
(000) | | Valuation
Technique | | Unobservable
Input | | Amount* | | Impact to
Valuation from an
Increase in Input** | |
Common Stock | | $ | 83 | | | Market Comparable
Companies | | Enterprise Value/
EBITDA | | | 2.6 | x | |
Increase | |
| | | | | | | Enterprise Value/
Revenue | | | 0.32 | x | |
Increase | |
| | | | | | | Discount for Lack
of Marketability | | | 30.0 | % | |
Decrease | |
* Amount is indicative of the weighted average.
** Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
3. Senior Loans: Senior Loans are typically structured by a syndicate of lenders ("Lenders"), one or more of which administers the Senior Loan on behalf of the Lenders ("Agent"). Lenders may sell interests in Senior Loans to third parties ("Participations") or may assign all or a portion of their interest in a Senior Loan to third parties ("Assignments"). Senior Loans are exempt from registration under the Securities Act of 1933. Presently, Senior Loans are not readily marketable and are often subject to restrictions on resale.
4. When-Issued/Delayed Delivery Securities: The 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.
21
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
5. Indemnifications: The Trust enters into contracts that contain a variety of indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
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 monthly. Net realized capital gains, if any, are distributed at least annually.
7. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. When the 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. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. 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, co-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 0.60% of the daily net assets of the Fund.
The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund 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, 0.62% for Class R6 shares and 0.62% for Class IR 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 year ended September 30, 2024, approximately $415,000 of advisory fees were waived and approximately $106,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.
The Adviser agreed to reimburse the Fund for prior years overpayment of transfer agency and sub transfer agency fees. This was reflected as "Reimbursement of Transfer Agency and Sub Transfer Agency Fees" in the Statement of Operations.
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
22
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
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 distribution-related and/or 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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS"). Pursuant to a Transfer Agency Agreement, the Trust pays SS&C GIDS a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.
Eaton Vance Management ("EVM"), an affiliate of Morgan Stanley, provides co-transfer agency and related services to the Fund pursuant to a Co-Transfer Agency Services Agreement. For the year ended September 30, 2024, co-transfer agency fees and expenses incurred to EVM, included in "Transfer Agency Fees" in the Statement of Operations, amounted to approximately $2,000.
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 year ended September 30, 2024, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $80,733,000 and $129,524,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended September 30, 2024.
The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Fund"), 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 Fund. For the year ended September 30, 2024, advisory fees paid were reduced by approximately $3,000 relating to the Fund's investment in the Liquidity Fund.
The Fund invests in Eaton Vance High Yield ETF, a 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 Eaton Vance High Yield ETF. For the year ended September 30, 2024, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Eaton Vance High Yield ETF.
A summary of the Fund's transactions in shares of affiliated investments during the year ended September 30, 2024 is as follows:
Affiliated
Investment
Company/Issuer | | Value
September 30,
2023
(000) | | Purchases
at Cost
(000) | | Proceeds
from Sales
(000) | | Dividend
Income
(000) | |
Liquidity Fund | | $ | — | | | $ | 55,063 | | | $ | 53,971 | | | $ | 92 | | |
Eaton Vance High Yield ETF | | | — | | | | 263 | | | | 266 | | | | 3 | | |
Total | | $ | — | | | $ | 55,326 | | | $ | 54,237 | | | $ | 95 | | |
Affiliated
Investment
Company/Issuer (cont'd) | | Realized
Gain
(Loss)
(000) | | Change in
Unrealized
Appreciation
(Depreciation)
(000) | | Value
September 30,
2024
(000) | |
Liquidity Fund | | $ | — | | | $ | — | | | $ | 1,092 | | |
Eaton Vance High Yield ETF | | | 3 | | | | — | | | | — | | |
Total | | $ | 3 | | | $ | — | | | $ | 1,092 | | |
23
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
Each Trustee receives an annual retainer fee for serving as a Trustee of the Morgan Stanley Funds. The aggregate compensation paid to each Trustee is paid by the Morgan Stanley Funds, and is allocated on a pro rata basis among each of the operational funds of the Morgan Stanley Funds based on the relative net assets of each of the funds. The fund also reimburses such Trustees for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings.
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 ("RIC") 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. Generally, each
of the tax years in the four-year period ended September 30, 2024 remains subject to examination by taxing authorities.
The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2024 and 2023 was as follows:
2024
Distributions
Paid From: | | 2023
Distributions
Paid From: | |
Ordinary
Income
(000) | | Ordinary
Income
(000) | |
| $ | 7,328 | | | $ | 8,303 | | |
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.
The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended September 30, 2024.
At September 30, 2024, 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) | |
| $ | 617 | | | $ | — | | |
At September 30, 2024, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $1,698,000 and $32,185,000, respectively, that do not have an expiration date.
To the extent that capital loss carryforwards are used to offset any future capital gains realized, no capital gains tax liability will be incurred by the Fund for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders.
I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $500,000,000 committed, unsecured revolving line of credit facility (the "Facility") with State Street. This Facility is to be used for temporary emergency
24
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
purposes or funding of shareholder redemption requests. The interest rate for any funds drawn will be based on the federal funds rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility, which is allocated among participating funds based on relative net assets. During the year ended September 30, 2024, the Fund did not have any borrowings under the Facility.
J. Other: At September 30, 2024, 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 67.6%.
K. Market Risk: The value of an investment in the Fund is based on the values of the Fund's investments, which change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events adversely interrupt the global economy and financial markets. Securities in the Fund's portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters and extreme weather events, health emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years, such as terrorist attacks around the world, natural disasters, health emergencies, social and political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. The occurrence of such events may be sudden and unexpected, and it is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). Any such event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund's portfolio, as well as its ability to sell securities and/or meet redemptions. Any such event(s) or similar types of factors and developments may also adversely affect the financial performance of the Fund's investments (and, in turn, the Fund's investment results) and/or negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments, and exacerbate preexisting risks to the Fund.
25
Morgan Stanley Institutional Fund Trust
September 30, 2024
Report of Independent Registered Public Accounting Firm
To the Shareholders of High Yield Portfolio and the
Board of Trustees of Morgan Stanley Institutional Fund Trust
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of High Yield Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund Trust (the "Trust")), including the portfolio of investments, as of September 30, 2024, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund Trust) at September 30, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Morgan Stanley investment companies since 2000.
Boston, Massachusetts
November 26, 2024
26
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited)
Nature, Extent and Quality of Services
The Board reviewed and considered the nature and extent of the investment advisory services provided by the Adviser under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services provided by the Administrator under the administration agreement, including accounting, operations, clerical, bookkeeping, compliance, business management and planning, legal services and the provision of supplies, office space and utilities at the Adviser's expense. The Board also considered the Adviser's investment in personnel and infrastructure that benefits the Fund. (The Adviser and Administrator together are referred to as the "Adviser" and the advisory and administration agreements together are referred to as the "Management Agreement.") The Board also considered that the Adviser serves a variety of other investment advisory clients and has experience overseeing service providers. The Board also compared the nature of the services provided by the Adviser with similar services provided by non-affiliated advisers as prepared by Broadridge Financial Solutions, Inc. ("Broadridge").
The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who provide the advisory and administrative services to the Fund. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services provided were necessary and appropriate for the conduct of the business and investment activities of the Fund and supported its decision to approve the Management Agreement.
Performance, Fees and Expenses of the Fund
The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2023, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the one- and three-year periods but below its peer group average for the five-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that the Fund's contractual management fee was higher than its peer group average and actual management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Fund's performance, management fee and total expense ratio were competitive with its peer group averages.
Economies of Scale
The Board considered the size and growth prospects of the Fund and how that relates to the Fund's total expense ratio and particularly the Fund's management fee rate, which does not include breakpoints. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Fund and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and/or potential economies of scale of the Fund supports its decision to approve the Management Agreement.
Profitability of the Adviser and Affiliates
The Board considered information concerning the costs incurred and profits realized by the Adviser and its affiliates during the last year from their relationship with the Fund and during the last two years from their relationship with the Morgan Stanley Fund Complex and reviewed with the Adviser the cost allocation methodology used to determine the profitability of the Adviser and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.
27
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited) (cont'd)
Other Benefits of the Relationship
The Board considered other direct and indirect benefits to the Adviser and/or its affiliates derived from their relationship with the Fund and other funds advised by the Adviser. These benefits may include, among other things, fees for trading, distribution and/or shareholder servicing and for transaction processing and reporting platforms used by securities lending agents, and research received by the Adviser generated from commission dollars spent on funds' portfolio trading. The Board reviewed with the Adviser these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.
Resources of the Adviser and Historical Relationship Between the Fund and the Adviser
The Board considered whether the Adviser is financially sound and has the resources necessary to perform its obligations under the Management Agreement. The Board also reviewed and considered the historical relationship between the Fund and the Adviser, including the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Fund's operations and the Board's confidence in the competence and integrity of the senior managers and key personnel of the Adviser. The Board concluded that the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Fund to continue its relationship with the Adviser.
Other Factors and Current Trends
The Board considered the controls and procedures adopted and implemented by the Adviser and monitored by the Fund's Chief Compliance Officer and concluded that the conduct of business by the Adviser indicates a good faith effort on its part to adhere to high ethical standards in the conduct of the Fund's business.
General Conclusion
After considering and weighing all of the above factors, with various written materials and verbal information presented by the Adviser, the Board concluded that it would be in the best interest of the Fund and its shareholders to approve renewal of the Management Agreement for another year. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. The Board considered these factors and information over the course of the year and in numerous meetings, some of which were in executive session with only the independent Board members and their counsel present. It is possible that individual Board members may have weighed these factors, and the information presented, differently in reaching their individual decisions to approve the Management Agreement.
28
Morgan Stanley Institutional Fund Trust
September 30, 2024
Federal Tax Notice (unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended September 30, 2024. For corporate shareholders 0.10% of the dividends qualified for the dividends received deduction.
The Fund designated approximately $652,000 of its distributions paid as qualified interest income.
The Fund designated approximately $753,000 of its distributions paid as business interest income.
For federal income tax purposes, the following information is furnished with respect to the Fund's earnings for its taxable year ended September 30, 2024. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund designated up to a maximum of approximately $8,000 as taxable at this lower rate.
In January, the Fund provides tax information to shareholders for the preceding calendar year.
29
Morgan Stanley Investment Management Inc.
1585 Broadway
New York, New York 10036
© 2024 Morgan Stanley. Morgan Stanley Distribution, Inc.
Morgan Stanley Institutional Fund Trust
Ultra-Short Income Portfolio
Annual Financial Statements and Additional Information
September 30, 2024
Morgan Stanley Institutional Fund Trust
September 30, 2024
Table of Contents (unaudited)
Portfolio of Investments | | | 2 | | |
Statement of Assets and Liabilities | | | 6 | | |
Statement of Operations | | | 7 | | |
Statements of Changes in Net Assets | | | 8 | | |
Financial Highlights | | | 9 | | |
Notes to Financial Statements | | | 12 | | |
Report of Independent Registered Public Accounting Firm | | | 17 | | |
Investment Advisory Agreement Approval | | | 18 | | |
Federal Tax Notice | | | 20 | | |
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) 869-6397. Please read the prospectuses carefully before you invest or send money.
Additionally, you can access information about the Fund, including performance, characteristics and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im/shareholderreports.
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
September 30, 2024
Portfolio of Investments
Ultra-Short Income Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Certificates of Deposit (12.8%) | |
Domestic Bank (0.5%) | |
Bank of America NA | |
5.75%, 11/19/24 | | $ | 50,000 | | | $ | 50,053 | | |
International Banks (12.3%) | |
Banco Santander SA (New York Branch), | |
5.52%, 6/6/25 | | | 200,000 | | | | 201,560 | | |
5.61%, 6/2/25 | | | 100,000 | | | | 100,818 | | |
Credit Industriel ET Commercial SA | |
5.60%, 5/1/25 | | | 125,000 | | | | 125,796 | | |
DZ Bank AG Deutsche
Zentral-Genossenschaftsbank | |
5.58%, 5/2/25 | | | 130,000 | | | | 130,852 | | |
National Bank of Kuwait (New York), | |
5.15%, 12/23/24 | | | 200,000 | | | | 200,089 | | |
5.70%, 10/18/24 | | | 100,000 | | | | 100,036 | | |
5.73%, 10/1/24 | | | 200,000 | | | | 200,004 | | |
Natixis (New York Branch), | |
5.63%, 6/2/25 | | | 73,000 | | | | 73,570 | | |
6.02%, 10/2/24 | | | 25,000 | | | | 25,001 | | |
Qatar National Bank, | |
5.72%, 4/10/25 | | | 110,000 | | | | 107,338 | | |
5.74%, 6/12/25 | | | 50,000 | | | | 48,457 | | |
5.83%, 5/30/25 | | | 75,000 | | | | 72,785 | | |
| | | | 1,386,306 | | |
Total Certificates of Deposit (Cost $1,430,166) | | | 1,436,359 | | |
Commercial Paper (a) (22.6%) | |
Asset-Backed Diversified Financial Services (0.8%) | |
Paradelle Funding LLC | |
5.48%, 6/16/25 - 6/17/25 | | | 98,000 | | | | 95,025 | | |
Automobile (0.7%) | |
Volkswagen Group of America Finance LLC | |
5.68%, 1/17/25 | | | 77,000 | | | | 75,853 | | |
Consumer, Non-Cyclical (0.4%) | |
LVMH Moet Hennessy Louis Vuitton | |
5.93%, 10/11/24 | | | 42,500 | | | | 42,438 | | |
Domestic Banks (5.2%) | |
HSBC USA, Inc., | |
5.39%, 8/1/25 | | | 4,000 | | | | 3,851 | | |
5.46%, 7/30/25 | | | 60,000 | | | | 57,774 | | |
5.57%, 7/15/25 - 7/23/25 (b) | | | 107,000 | | | | 103,185 | | |
5.68%, 1/2/25 | | | 50,000 | | | | 49,380 | | |
5.80%, 6/20/25 | | | 18,000 | | | | 17,422 | | |
5.88%, 6/5/25 | | | 95,000 | | | | 92,143 | | |
5.91%, 5/9/25 (b) | | | 55,000 | | | | 53,534 | | |
5.92%, 5/20/25 | | | 15,000 | | | | 14,580 | | |
5.99%, 12/6/24 - 5/23/25 | | | 67,000 | | | | 65,621 | | |
6.11%, 12/9/24 (b) | | | 65,000 | | | | 64,391 | | |
6.27%, 11/22/24 | | | 30,000 | | | | 29,786 | | |
6.29%, 11/27/24 | | | 35,000 | | | | 34,727 | | |
| | | | 586,394 | | |
| | | Face
Amount
(000) | | Value
(000) | |
Finance (1.6%) | |
Barclays Capital, Inc., | |
5.32%, 7/15/25 | | $ | 75,000 | | | $ | 72,517 | | |
5.36%, 7/22/25 | | | 7,000 | | | | 6,763 | | |
5.98%, 11/5/24 | | | 50,000 | | | | 49,757 | | |
6.14%, 10/4/24 | | | 50,000 | | | | 49,973 | | |
| | | | 179,010 | | |
Health Care Services (0.8%) | |
Catholic Health Initiatives, | |
5.57%, 4/3/25 | | | 65,357 | | | | 63,664 | | |
5.61%, 4/2/25 | | | 25,000 | | | | 24,356 | | |
| | | | 88,020 | | |
Insurance (0.2%) | |
Prudential Financial, Inc. | |
4.85%, 10/1/24 | | | 20,000 | | | | 19,997 | | |
International Banks (11.2%) | |
Bank of Montreal | |
5.60%, 5/1/25 | | | 25,000 | | | | 24,374 | | |
Barclays Bank PLC | |
4.84%, 10/2/24 | | | 75,000 | | | | 74,980 | | |
Barclays U.S. CCP | |
5.51%, 5/14/25 | | | 85,000 | | | | 82,713 | | |
BNG Bank NV | |
2.90%, 10/2/24 | | | 250,000 | | | | 249,934 | | |
| BPCE SA | |
4.86%, 12/23/24 | | | 25,000 | | | | 24,729 | | |
Lloyds Bank PLC | |
5.94%, 10/11/24 | | | 19,000 | | | | 18,972 | | |
Macquarie Bank Ltd. | |
5.49%, 6/6/25 | | | 125,000 | | | | 121,372 | | |
Nationwide Building Society | |
4.84%, 10/2/24 | | | 400,000 | | | | 399,893 | | |
Societe Generale SA | |
5.71%, 12/2/24 (b) | | | 268,750 | | | | 266,251 | | |
| | | | 1,263,218 | | |
Utilities (1.1%) | |
Total Energies Capital SA | |
4.83%, 10/4/24 | | | 125,000 | | | | 124,933 | | |
Wireless Telecom Services (0.6%) | |
Cisco Systems, Inc., | |
5.13%, 3/6/25 | | | 43,500 | | | | 42,666 | | |
5.15%, 3/7/25 (b) | | | 24,000 | | | | 23,537 | | |
| | | | 66,203 | | |
Total Commercial Paper (Cost $2,534,774) | | | 2,541,091 | | |
Corporate Bonds (17.2%) | |
Automobile (2.9%) | |
BMW U.S. Capital LLC | |
3.90%, 4/9/25 (b) | | | 500 | | | | 498 | | |
General Motors Financial Co., Inc., | |
2.75%, 6/20/25 | | | 57,836 | | | | 56,920 | | |
3.80%, 4/7/25 | | | 26,287 | | | | 26,101 | | |
The accompanying notes are an integral part of the financial statements.
2
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Ultra-Short Income Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Automobile (cont'd) | |
4.30%, 7/13/25 | | $ | 4,967 | | | $ | 4,948 | | |
4.35%, 4/9/25 | | | 22,156 | | | | 22,074 | | |
Hyundai Capital America, | |
5.80%, 6/26/25 (b) | | | 2,000 | | | | 2,015 | | |
5.88%, 4/7/25 (b) | | | 2,603 | | | | 2,613 | | |
6.00%, 7/11/25 (b) | | | 10,712 | | | | 10,820 | | |
Volkswagen Group of America Finance LLC, | |
3.35%, 5/13/25 (b) | | | 40,901 | | | | 40,516 | | |
3.95%, 6/6/25 (b) | | | 33,979 | | | | 33,758 | | |
5.80%, 9/12/25 (b)(c) | | | 119,643 | | | | 120,997 | | |
| | | | 321,260 | | |
Automobiles Manufacturing (0.2%) | |
Daimler Truck Finance North America LLC, | |
1.63%, 12/13/24 (b) | | | 5,000 | | | | 4,962 | | |
5.20%, 1/17/25 (b) | | | 10,000 | | | | 10,003 | | |
5.60%, 8/8/25 (b) | | | 5,000 | | | | 5,042 | | |
| | | | 20,007 | | |
Computer Technology (2.0%) | |
Dell International LLC / EMC Corp. | |
5.85%, 7/15/25 | | | 9,998 | | | | 10,076 | | |
HP, Inc. | |
2.20%, 6/17/25 | | | 110,810 | | | | 108,811 | | |
Oracle Corp., | |
2.50%, 4/1/25 | | | 20,128 | | | | 19,899 | | |
2.95%, 5/15/25 | | | 93,024 | | | | 92,018 | | |
| | | | 230,804 | | |
Consumer, Non-Cyclical (0.5%) | |
AbbVie, Inc. | |
3.60%, 5/14/25 | | | 62,042 | | | | 61,656 | | |
Domestic Banks (1.5%) | |
Bank of America Corp. | |
3.88%, 8/1/25 | | | 34,446 | | | | 34,348 | | |
JP Morgan Chase & Co. | |
3.90%, 7/15/25 | | | 11,157 | | | | 11,117 | | |
Wells Fargo & Co. | |
3.55%, 9/29/25 (c) | | | 123,276 | | | | 122,261 | | |
| | | | 167,726 | | |
Finance (2.0%) | |
American Express Co. | |
3.95%, 8/1/25 | | | 167,034 | | | | 166,362 | | |
Fiserv, Inc. | |
3.85%, 6/1/25 | | | 59,507 | | | | 59,101 | | |
| | | | 225,463 | | |
Insurance (0.0%)‡ | |
Equitable Financial Life Global Funding | |
1.10%, 11/12/24 (b) | | | 2,857 | | | | 2,844 | | |
International Banks (8.1%) | |
Bank of Montreal | |
1.85%, 5/1/25 | | | 23,899 | | | | 23,523 | | |
| | | Face
Amount
(000) | | Value
(000) | |
Bank of Nova Scotia, | |
1.30%, 6/11/25 | | $ | 67,321 | | | $ | 65,870 | | |
5.45%, 6/12/25 | | | 52,267 | | | | 52,584 | | |
Canadian Imperial Bank of Commerce, | |
3.95%, 8/4/25 | | | 82,339 | | | | 82,018 | | |
5.14%, 4/28/25 | | | 31,336 | | | | 31,424 | | |
Goldman Sachs Group, Inc., | |
3.50%, 4/1/25 | | | 89,257 | | | | 88,716 | | |
3.75%, 5/22/25 | | | 43,119 | | | | 42,866 | | |
Lloyds Banking Group PLC | |
4.45%, 5/8/25 | | | 20,316 | | | | 20,254 | | |
Macquarie Group Ltd. | |
6.21%, 11/22/24 (b) | | | 3,625 | | | | 3,629 | | |
Nationwide Building Society | |
3.90%, 7/21/25 (b) | | | 3,796 | | | | 3,778 | | |
NatWest Markets PLC | |
3.48%, 3/22/25 (b) | | | 50,000 | | | | 49,622 | | |
Royal Bank of Canada, | |
4.95%, 4/25/25 | | | 1,698 | | | | 1,701 | | |
2.25%, 11/1/24 | | | 16,000 | | | | 15,962 | | |
1.15%, 6/10/25 | | | 60,000 | | | | 58,638 | | |
5.66%, 10/25/24 | | | 37,641 | | | | 37,656 | | |
Sumitomo Mitsui Financial Group, Inc. | |
1.47%, 7/8/25 | | | 218,288 | | | | 213,295 | | |
Swedbank AB | |
3.36%, 4/4/25 (b) | | | 1,000 | | | | 994 | | |
3.77%, 6/6/25 | | | 26,318 | | | | 26,177 | | |
UBS AG Stamford | |
2.95%, 4/9/25 | | | 10,823 | | | | 10,717 | | |
UBS Group AG, | |
3.75%, 3/26/25 | | | 52,838 | | | | 52,569 | | |
4.13%, 9/24/25 (b)(c) | | | 24,167 | | | | 24,098 | | |
| | | | 906,091 | | |
Total Corporate Bonds (Cost $1,929,465) | | | 1,935,851 | | |
Floating Rate Notes (d) (18.7%) | |
Asset-Backed Diversified Financial Services (5.3%) | |
Chariot Funding LLC, | |
5.10%, 3/10/25 (b) | | | 20,000 | | | | 20,001 | | |
5.11%, 1/17/25 (b) | | | 50,000 | | | | 50,002 | | |
SOFR + 0.32%, 5.15%, 3/14/25 - 3/17/25 (b) | | | 490,000 | | | | 490,082 | | |
Collateralized Commercial Paper Flex Co. LLC, | |
5.11%, 3/21/25 (b) | | | 37,000 | | | | 37,002 | | |
| | | | 597,087 | | |
Automobile (5.0%) | |
American Honda Finance Corp., | |
SOFR + 0.45%, 5.29%, 6/13/25 | | | 200,000 | | | | 200,152 | | |
MTN | |
SOFR + 0.45%, 5.33%, 4/29/25 | | | 280,000 | | | | 280,351 | | |
SOFR + 0.55%, 5.42%, 2/12/25 | | | 5,000 | | | | 5,004 | | |
SOFR + 0.70%, 5.57%, 11/22/24 | | | 73,620 | | | | 73,678 | | |
| | | | 559,185 | | |
The accompanying notes are an integral part of the financial statements.
3
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Ultra-Short Income Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Automobiles Manufacturing (0.0%)‡ | |
Daimler Truck Finance North America LLC, | |
SOFR + 0.75%, 5.61%, 12/13/24 (b) | | $ | 5,000 | | | $ | 5,006 | | |
Diversified Financial Services (2.2%) | |
Macquarie International Bank Ltd., | |
SOFR + 0.28%, 5.11%, 12/13/24 | | | 100,000 | | | | 100,033 | | |
Mizuho Markets Cayman LP, | |
MTN | |
SOFR + 0.60%, 5.45%, 10/6/25 (b) | | | 150,000 | | | | 150,010 | | |
| | | | 250,043 | | |
Domestic Banks (4.1%) | |
Bank of America Corp., | |
MTN | |
3.09%, 10/1/25 | | | 72,953 | | | | 72,953 | | |
Bank of America NA, | |
5.21%, 7/3/25 | | | 150,000 | | | | 150,022 | | |
Citibank NA, | |
SOFR + 0.60%, 5.43%, 10/29/24 | | | 90,000 | | | | 90,038 | | |
Wells Fargo Bank NA, | |
SOFR + 0.60%, 5.43%, 11/1/24 | | | 150,000 | | | | 150,069 | | |
| | | | 463,082 | | |
Finance (1.5%) | |
Citigroup, Inc., | |
SOFR + 0.69%, 5.57%, 10/30/24 | | | 162,393 | | | | 162,469 | | |
International Banks (0.6%) | |
DBS Group Holdings Ltd., | |
SOFR + 0.30%, 5.17%, 11/22/24 (b) | | | 12,550 | | | | 12,551 | | |
Goldman Sachs Group, Inc., | |
MTN | |
3 Month Term SOFR + 1.56%, 6.66%, 11/23/24 | | | 23,000 | | | | 23,041 | | |
Macquarie Group Ltd., | |
1.20%, 10/14/25 (b) | | | 26,961 | | | | 26,922 | | |
Royal Bank of Canada, | |
SOFR + 0.34%, 5.24%, 10/7/24 | | | 6,000 | | | | 6,000 | | |
| | | | 68,514 | | |
Total Floating Rate Notes (Cost $2,104,440) | | | 2,105,386 | | |
Repurchase Agreements (23.6%) | |
Bank of America Securities, Inc., (5.33% (d), dated
9/24/24, due 9/29/25; proceeds $237,326;
fully collateralized by various Common Stocks
and Preferred Stocks; valued at $236,250)
(Demand 10/1/24) (e) | | | 225,000 | | | | 225,000 | | |
Barclays Bank PLC, (4.91%, dated 9/30/24,
due 10/1/24; proceeds $75,010; fully
collateralized by a U.S. Government obligation,
0.38% due 7/15/25; valued at $76,510) | | | 75,000 | | | | 75,000 | | |
BMO Capital Markets Corp., (4.93%, dated
9/30/24, due 10/1/24; proceeds $10,001;
fully collateralized by various Corporate Bonds,
2.73% - 7.44% due 2/1/25 - 3/1/40;
valued at $10,500) | | | 10,000 | | | | 10,000 | | |
| | | Face
Amount
(000) | | Value
(000) | |
BNP Paribas Prime Brokerage, Inc., (4.95%, dated
9/30/24, due 10/1/24; proceeds $300,041;
fully collateralized by various Common Stocks
and Preferred Stocks; valued at $315,043) (e) | | $ | 300,000 | | | $ | 300,000 | | |
BNP Paribas SA, (5.04% (d), dated 6/29/22,
due 10/7/24; proceeds $256,758; fully
collateralized by various Corporate Bonds,
3.20% - 14.00% due 11/1/25 - 3/31/55;
valued at $243,677) (Demand 10/1/24) (e) | | | 230,000 | | | | 230,000 | | |
Citigroup Global Markets, Inc., (5.47% (d), dated
11/14/22, due 1/3/25; proceeds $223,734;
fully collateralized by various Corporate Bonds,
3.13% - 13.00% due 12/15/24 - 3/15/55;
valued at $212,000) (Demand 10/1/24) (e) | | | 200,000 | | | | 200,000 | | |
JP Morgan Securities LLC, (5.08% (d), dated
11/17/21, due 10/7/24; proceeds $80,421;
fully collateralized by various Common Stocks
and Preferred Stocks; valued at $74,803)
(Demand 10/1/24) (e) | | | 70,000 | | | | 70,000 | | |
JP Morgan Securities LLC, (5.28% (d), dated
1/5/23, due 12/30/24; proceeds $320,837;
fully collateralized by various Corporate Bonds,
3.13% - 11.75% due 12/15/24 - 12/21/65;
valued at $308,734) (Demand 10/1/24) (e) | | | 290,000 | | | | 290,000 | | |
JP Morgan Securities LLC, (5.23% (d), dated
9/17/24, due 3/17/25; proceeds $102,630;
fully collateralized by various Corporate Bonds,
3.88% - 11.25% due 12/15/27 - 12/15/54;
valued at $106,220) (Demand 10/1/24) | | | 100,000 | | | | 100,000 | | |
Mizuho Securities USA LLC, (5.28%, dated
9/12/24, due 12/12/24; proceeds $76,001;
fully collateralized by a U.S. Government
agency security, 4.17% due 5/1/34;
valued at $77,250) | | | 75,000 | | | | 75,000 | | |
MUFG Securities Americas, Inc., (4.89%, dated
9/30/24, due 10/1/24; proceeds $420,057;
fully collateralized by fully collateralized by
various U.S. Government obligations,
0.50% - 2.25% due 2/15/27 - 8/31/27;
Common Stocks; valued at $441,060) (e) | | | 420,000 | | | | 420,000 | | |
MUFG Securities Americas, Inc., (4.88%, dated
9/30/24, due 10/1/24; proceeds $99,013;
fully collateralized by various Corporate Bonds,
2.14% - 7.05% due 11/10/25 - 12/31/79;
valued at $103,964) (e) | | | 99,000 | | | | 99,000 | | |
Pershing LLC, (5.15%, dated 9/30/24, due
10/1/24; proceeds $25,004; fully collateralized
by various Corporate Bonds, 1.60% - 9.49%
due 12/15/24 - 10/31/82; valued at
$26,355) (e) | | | 25,000 | | | | 25,000 | | |
Societe Generale SA, (4.98%, dated 9/30/24,
due 10/1/24; proceeds $230,032; fully
collateralized by various Corporate Bonds,
1.05% - 14.00% due 12/01/24 - 12/31/79;
valued at $242,439) (e) | | | 230,000 | | | | 230,000 | | |
TD Securities USA LLC, (4.90%, dated 9/30/24,
due 10/1/24; proceeds $300,041; fully
collateralized by various Corporate Bonds,
3.35% - 6.35% due 1/26/26 - 9/15/54;
valued at $315,001) | | | 300,000 | | | | 300,000 | | |
Total Repurchase Agreements (Cost $2,649,000) | | | 2,649,000 | | |
The accompanying notes are an integral part of the financial statements.
4
Morgan Stanley Institutional Fund Trust
September 30, 2024
Portfolio of Investments (cont'd)
Ultra-Short Income Portfolio
| | | Face
Amount
(000) | | Value
(000) | |
Time Deposits (4.8%) | |
International Banks (4.8%) | |
Credit Agricole Corporate and Investment Bank | |
4.81%, 10/1/24 | | $ | 80,000 | | | $ | 80,000 | | |
National Bank of Canada (Montreal Branch) | |
4.82%, 10/1/24 | | | 455,000 | | | | 455,000 | | |
Total Time Deposits (Cost $535,000) | | | 535,000 | | |
Total Investments (99.7%) (Cost $11,182,845) (f)(g) | | | 11,202,687 | | |
Other Assets in Excess of Liabilities (0.3%) | | | 28,463 | | |
Net Assets (100.0%) | | $ | 11,231,150 | | |
‡ Amount is less than 0.05%.
(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) All or a portion of the security is subject to delayed delivery.
(d) Floating or variable rate securities: The rates disclosed are as of September 30, 2024. 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.
(e) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time after which they revert to a floating rate. Interest rates in effect are as of September 30, 2024.
(f) Securities are available as collateral in connection with securities purchased on a forward commitment basis.
(g) At September 30, 2024, the aggregate cost for federal income tax purposes is $11,182,845,000. The aggregate gross unrealized appreciation is $20,015,000 and the aggregate gross unrealized depreciation is $173,000, resulting in net unrealized appreciation of $19,842,000.
MTN Medium Term Note.
SOFR Secured Overnight Financing Rate.
Portfolio Composition
Classification | | Percentage of
Total Investments | |
Repurchase Agreements | | | 23.6 | % | |
Commercial Paper | | | 22.7 | | |
Floating Rate Notes | | | 18.8 | | |
Corporate Bonds | | | 17.3 | | |
Certificates of Deposit | | | 12.8 | | |
Other* | | | 4.8 | | |
Total Investments | | | 100.0 | % | |
* Industries and/or investment types representing less than 5% of total investments.
The accompanying notes are an integral part of the financial statements.
5
Morgan Stanley Institutional Fund Trust
September 30, 2024
Ultra-Short Income Portfolio
Statement of Assets and Liabilities | | September 30, 2024
(000) | |
Assets: | |
Investments in Securities of Unaffiliated Issuers, at Value (Cost $11,182,845, including value of repurchase agreements of $2,649,000) | | $ | 11,202,687 | | |
Cash | | | 251 | | |
Receivable for Investments Sold | | | 165,889 | | |
Interest Receivable | | | 54,544 | | |
Receivable for Fund Shares Sold | | | 52,463 | | |
Other Assets | | | 1,037 | | |
Total Assets | | | 11,476,871 | | |
Liabilities: | |
Payable for Investments Purchased | | | 205,828 | | |
Payable for Fund Shares Redeemed | | | 32,610 | | |
Payable for Advisory Fees | | | 4,280 | | |
Dividends Payable | | | 1,019 | | |
Payable for Administration Fees | | | 689 | | |
Payable for Shareholder Services Fees — Institutional Class | | | 37 | | |
Payable for Shareholder Services Fees — Class A | | | 542 | | |
Payable for Custodian Fees | | | 77 | | |
Payable for Professional Fees | | | 72 | | |
Payable for Transfer Agency Fees — Class IR | | | 6 | | |
Payable for Transfer Agency Fees — Institutional Class | | | 2 | | |
Payable for Transfer Agency Fees — Class A | | | 2 | | |
Other Liabilities | | | 557 | | |
Total Liabilities | | | 245,721 | | |
Net Assets | | $ | 11,231,150 | | |
Net Assets Consist of: | |
Paid-in-Capital | | $ | 11,272,396 | | |
Total Accumulated Loss | | | (41,246 | ) | |
Net Assets | | $ | 11,231,150 | | |
CLASS IR: | |
Net Assets | | $ | 5,527,625 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 552,974,196 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 10.00 | | |
INSTITUTIONAL CLASS: | |
Net Assets | | $ | 979,257 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 97,948,546 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 10.00 | | |
CLASS A: | |
Net Assets | | $ | 4,724,268 | | |
| Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's) | | | 472,705,327 | | |
Net Asset Value, Offering and Redemption Price Per Share | | $ | 9.99 | | |
The accompanying notes are an integral part of the financial statements.
6
Morgan Stanley Institutional Fund Trust
September 30, 2024
Ultra-Short Income Portfolio
Statement of Operations | | Year Ended
September 30, 2024
(000) | |
Investment Income: | |
Interest from Securities of Unaffiliated Issuers | | $ | 658,943 | | |
Expenses: | |
Advisory Fees (Note B) | | | 22,687 | | |
Shareholder Services Fees — Institutional Class (Note D) | | | 617 | | |
Shareholder Services Fees — Class A (Note D) | | | 11,748 | | |
Administration Fees (Note C) | | | 9,075 | | |
Registration Fees | | | 1,004 | | |
Custodian Fees (Note F) | | | 225 | | |
Trustees' Fees and Expenses | | | 170 | | |
Professional Fees | | | 153 | | |
Shareholder Reporting Fees | | | 59 | | |
Transfer Agency Fees — Class IR (Note E) | | | 30 | | |
Transfer Agency Fees — Institutional Class (Note E) | | | 13 | | |
Transfer Agency Fees — Class A (Note E) | | | 12 | | |
Pricing Fees | | | 17 | | |
Other Expenses | | | 539 | | |
Total Expenses | | | 46,349 | | |
Waiver of Advisory Fees (Note B) | | | (5,571 | ) | |
Reimbursement of Transfer Agency Fees (Note B) | | | (61 | ) | |
Reimbursement of Class Specific Expenses — Class IR (Note B) | | | (30 | ) | |
Reimbursement of Class Specific Expenses — Institutional Class (Note B) | | | (13 | ) | |
Waiver of Shareholder Services Fees — Class A (Note D) | | | (6,063 | ) | |
Net Expenses | | | 34,611 | | |
Net Investment Income | | | 624,332 | | |
Realized Gain: | |
Investments Sold | | | 1,409 | | |
Change in Unrealized Appreciation (Depreciation): | |
Investments | | | 19,519 | | |
Net Realized Gain and Change in Unrealized Appreciation (Depreciation) | | | 20,928 | | |
Net Increase in Net Assets Resulting from Operations | | $ | 645,260 | | |
The accompanying notes are an integral part of the financial statements.
7
Morgan Stanley Institutional Fund Trust
September 30, 2024
Ultra-Short Income Portfolio
Statements of Changes in Net Assets | | Year Ended
September 30, 2024
(000) | | Year Ended
September 30, 2023
(000) | |
Increase (Decrease) in Net Assets: | |
Operations: | |
Net Investment Income | | $ | 624,332 | | | $ | 537,318 | | |
Net Realized Gain | | | 1,409 | | | | 46 | | |
Net Change in Unrealized Appreciation (Depreciation) | | | 19,519 | | | | 11,970 | | |
Net Increase in Net Assets Resulting from Operations | | | 645,260 | | | | 549,334 | | |
Dividends and Distributions to Shareholders: | |
Class IR | | | (300,693 | ) | | | (237,467 | ) | |
Institutional Class | | | (68,088 | ) | | | (75,947 | ) | |
Class A | | | (255,551 | ) | | | (223,904 | ) | |
Total Dividends and Distributions to Shareholders | | | (624,332 | ) | | | (537,318 | ) | |
Capital Share Transactions:(1) | |
Class IR: | |
Subscribed | | | 7,400,005 | | | | 6,283,629 | | |
Distributions Reinvested | | | 270,214 | | | | 194,526 | | |
Redeemed | | | (7,032,701 | ) | | | (6,549,877 | ) | |
Institutional Class: | |
Subscribed | | | 653,585 | | | | 1,331,405 | | |
Distributions Reinvested | | | 68,279 | | | | 76,064 | | |
Redeemed | | | (1,191,767 | ) | | | (1,968,576 | ) | |
Class A: | |
Subscribed | | | 3,557,714 | | | | 3,934,159 | | |
Distributions Reinvested | | | 256,167 | | | | 223,899 | | |
Redeemed | | | (3,949,291 | ) | | | (3,763,110 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions | | | 32,205 | | | | (237,881 | ) | |
Total Increase (Decrease) in Net Assets | | | 53,133 | | | | (225,865 | ) | |
Net Assets: | |
Beginning of Period | | | 11,178,017 | | | | 11,403,882 | | |
End of Period | | $ | 11,231,150 | | | $ | 11,178,017 | | |
(1) Capital Share Transactions: | |
Class IR: | |
Shares Subscribed | | | 741,112 | | | | 629,870 | | |
Shares Issued on Distributions Reinvested | | | 27,059 | | | | 19,501 | | |
Shares Redeemed | | | (704,271 | ) | | | (656,519 | ) | |
Net Increase (Decrease) in Class IR Shares Outstanding | | | 63,900 | | | | (7,148 | ) | |
Institutional Class: | |
Shares Subscribed | | | 65,442 | | | | 133,403 | | |
Shares Issued on Distributions Reinvested | | | 6,837 | | | | 7,624 | | |
Shares Redeemed | | | (119,370 | ) | | | (197,293 | ) | |
Net Decrease in Institutional Class Shares Outstanding | | | (47,091 | ) | | | (56,266 | ) | |
Class A: | |
Shares Subscribed | | | 356,326 | | | | 394,450 | | |
Shares Issued on Distributions Reinvested | | | 25,658 | | | | 22,446 | | |
Shares Redeemed | | | (395,552 | ) | | | (377,277 | ) | |
Net Increase (Decrease) in Class A Shares Outstanding | | | (13,568 | ) | | | 39,619 | | |
The accompanying notes are an integral part of the financial statements.
8
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Ultra-Short Income Portfolio
| | | Class IR | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 9.98 | | | $ | 9.97 | | | $ | 9.98 | | | $ | 9.99 | | | $ | 10.02 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.55 | | | | 0.48 | | | | 0.10 | | | | 0.02 | | | | 0.13 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.02 | | | | 0.01 | | | | (0.02 | ) | | | (0.01 | ) | | | (0.03 | ) | |
Total from Investment Operations | | | 0.57 | | | | 0.49 | | | | 0.08 | | | | 0.01 | | | | 0.10 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.55 | ) | | | (0.48 | ) | | | (0.09 | ) | | | (0.02 | ) | | | (0.13 | ) | |
Net Asset Value, End of Period | | $ | 10.00 | | | $ | 9.98 | | | $ | 9.97 | | | $ | 9.98 | | | $ | 9.99 | | |
Total Return(2) | | | 5.93 | %(3) | | | 5.03 | % | | | 0.79 | % | | | 0.10 | % | | | 1.03 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 5,527,625 | | | $ | 4,879,799 | | | $ | 4,945,966 | | | $ | 5,014,307 | | | $ | 5,388,750 | | |
Ratio of Expenses Before Expense Limitation | | | 0.30 | % | | | 0.30 | % | | | 0.29 | % | | | 0.30 | % | | | 0.31 | % | |
Ratio of Expenses After Expense Limitation | | | 0.25 | % | | | 0.25 | % | | | 0.20 | % | | | 0.18 | % | | | 0.24 | % | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 0.24 | % | |
Ratio of Net Investment Income | | | 5.54 | % | | | 4.82 | % | | | 0.96 | % | | | 0.21 | % | | | 1.34 | % | |
Portfolio Turnover Rate | | | N/A(4) | | | | N/A(4) | | | | N/A(4) | | | | N/A(4) | | | | N/A(4) | | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value as of the last business day of the period.
(3) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class IR shares.
(4) During the reporting period, the Fund did not hold any long-term investments and accordingly portfolio turnover is not applicable.
The accompanying notes are an integral part of the financial statements.
9
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Ultra-Short Income Portfolio
| | | Institutional Class | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 9.98 | | | $ | 9.97 | | | $ | 9.98 | | | $ | 9.99 | | | $ | 10.02 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.55 | | | | 0.47 | | | | 0.08 | | | | 0.02 | | | | 0.14 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.02 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | | | (0.04 | ) | |
Total from Investment Operations | | | 0.57 | | | | 0.48 | | | | 0.07 | | | | 0.01 | | | | 0.10 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.55 | ) | | | (0.47 | ) | | | (0.08 | ) | | | (0.02 | ) | | | (0.13 | ) | |
Net Asset Value, End of Period | | $ | 10.00 | | | $ | 9.98 | | | $ | 9.97 | | | $ | 9.98 | | | $ | 9.99 | | |
Total Return(2) | | | 5.88 | %(3) | | | 4.97 | % | | | 0.74 | % | | | 0.05 | % | | | 0.98 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 979,257 | | | $ | 14,447,215 | | | $ | 2,006,592 | | | $ | 1,834,410 | | | $ | 2,544,657 | | |
Ratio of Expenses Before Expense Limitation | | | 0.35 | % | | | 0.35 | % | | | 0.34 | % | | | 0.35 | % | | | 0.36 | % | |
Ratio of Expenses After Expense Limitation | | | 0.30 | % | | | 0.30 | % | | | 0.25 | % | | | 0.23 | % | | | 0.29 | % | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 0.29 | % | |
Ratio of Net Investment Income | | | 5.50 | % | | | 4.77 | % | | | 0.79 | % | | | 0.16 | % | | | 1.39 | % | |
Portfolio Turnover Rate | | | N/A(4) | | | | N/A(4) | | | | N/A(4) | | | | N/A(4) | | | | N/A(4) | | |
(1) Per share amount is based on average shares outstanding.
(2) Calculated based on the net asset value as of the last business day of the period.
(3) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Institutional Class shares.
(4) During the reporting period, the Fund did not hold any long-term investments and accordingly portfolio turnover is not applicable.
The accompanying notes are an integral part of the financial statements.
10
Morgan Stanley Institutional Fund Trust
September 30, 2024
Financial Highlights
Ultra-Short Income Portfolio
| | | Class A | |
| | | Year Ended September 30, | |
Selected Per Share Data and Ratios | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | |
Net Asset Value, Beginning of Period | | $ | 9.98 | | | $ | 9.97 | | | $ | 9.98 | | | $ | 9.99 | | | $ | 10.02 | | |
Income (Loss) from Investment Operations: | |
Net Investment Income(1) | | | 0.54 | | | | 0.47 | | | | 0.07 | | | | 0.01 | | | | 0.12 | | |
Net Realized and Unrealized Gain (Loss) | | | 0.01 | | | | 0.01 | | | | 0.00 | (2) | | | (0.01 | ) | | | (0.04 | ) | |
Total from Investment Operations | | | 0.55 | | | | 0.48 | | | | 0.07 | | | | (0.00 | )(2) | | | 0.08 | | |
Distributions from and/or in Excess of: | |
Net Investment Income | | | (0.54 | ) | | | (0.47 | ) | | | (0.08 | ) | | | (0.01 | ) | | | (0.11 | ) | |
Net Asset Value, End of Period | | $ | 9.99 | | | $ | 9.98 | | | $ | 9.97 | | | $ | 9.98 | | | $ | 9.99 | | |
Total Return(3) | | | 5.69 | %(4) | | | 4.92 | % | | | 0.67 | % | | | (0.03 | )% | | | 0.80 | % | |
Ratios to Average Net Assets and Supplemental Data: | |
Net Assets, End of Period (Thousands) | | $ | 4,724,268 | | | $ | 4,851,003 | | | $ | 4,451,324 | | | $ | 5,973,299 | | | $ | 9,923,736 | | |
Ratio of Expenses Before Expense Limitation | | | 0.55 | % | | | 0.55 | % | | | 0.54 | % | | | 0.55 | % | | | 0.56 | % | |
Ratio of Expenses After Expense Limitation | | | 0.37 | % | | | 0.35 | % | | | 0.31 | % | | | 0.32 | % | | | 0.46 | % | |
Ratio of Expenses After Expense Limitation Excluding Interest Expenses | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 0.46 | % | |
Ratio of Net Investment Income | | | 5.42 | % | | | 4.72 | % | | | 0.70 | % | | | 0.08 | % | | | 1.16 | % | |
Portfolio Turnover Rate | | | N/A(5) | | | | N/A(5) | | | | N/A(5) | | | | N/A(5) | | | | N/A(5) | | |
(1) Per share amount is based on average shares outstanding.
(2) Amount is less than $0.005 per share.
(3) Calculated based on the net asset value as of the last business day of the period.
(4) Refer to Note B in the Notes to Financial Statements for discussion of prior period transfer agency fees that were reimbursed in the current period. The amount of the reimbursement was immaterial on a per share basis and the impact was less than 0.005% to the total return of Class A shares.
(5) During the reporting period, the Fund did not hold any long-term investments and accordingly portfolio turnover is not applicable.
The accompanying notes are an integral part of the financial statements.
11
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements
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 six separate, active funds (individually referred to as a "Fund," collectively as the "Funds"). All Funds are considered diversified for purposes of the Act.
The Trust applies investment company accounting and reporting guidance Accounting Standards Codification ("ASC") Topic 946. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the Fund's Statement of Assets and Liabilities through the date that the financial statements were issued.
The accompanying financial statements relate to the Ultra-Short Income Portfolio. The Fund seeks current income with capital preservation while maintaining liquidity. The Fund has issued 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) Fixed income 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. If Morgan Stanley Investment Management Inc. (the "Adviser") a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor does not reflect the security's fair value or the pricing service/vendor or exchange is unable to provide a price, prices from reputable brokers/dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from reputable brokers/dealers; and (2) when market quotations are not readily available, as defined by Rule 2a-5 under the Act, 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 approved by and under the general supervision of the Trustees. Each business day, the Fund uses a third-party pricing service approved by the Trustees to assist with the valuation of foreign equity securities. Events occurring after the close of trading on foreign exchanges may result in adjustments to the valuation of foreign securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments that have a strong correlation to the fair-valued securities to more accurately reflect their fair value as of the close of regular trading on the NYSE.
In connection with Rule 2a-5 of the Act, the Trustees have designated the Trust's Adviser as its valuation designee. The valuation designee has responsibility for 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, as valuation designee, 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.
2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") ASC 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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
12
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
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 September 30, 2024:
Investment Type | | Level 1
Unadjusted
quoted
prices
(000) | | Level 2
Other
significant
observable
inputs
(000) | | Level 3
Significant
unobservable
inputs
(000) | | Total
(000) | |
Assets: | |
Certificates of Deposit | | $ | — | | | $ | 1,436,359 | | | $ | — | | | $ | 1,436,359 | | |
Commercial Paper | | | — | | | | 2,541,091 | | | | — | | | | 2,541,091 | | |
Corporate Bonds | | | — | | | | 1,935,851 | | | | — | | | | 1,935,851 | | |
Floating Rate Notes | | | — | | | | 2,105,386 | | | | — | | | | 2,105,386 | | |
Repurchase
Agreements | | | — | | | | 2,649,000 | | | | — | | | | 2,649,000 | | |
Time Deposits | | | — | | | | 535,000 | | | | — | | | | 535,000 | | |
Total Assets | | $ | — | | | $ | 11,202,687 | | | $ | — | | | $ | 11,202,687 | | |
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-tomarket 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 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. Indemnifications: The Trust enters into contracts that contain a variety of indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
13
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
5. Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the close of each business day. Dividends from net investment income are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually.
6. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. 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 daily net assets of the Fund.
The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund 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 0.40% 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. For the year ended September 30, 2024, approximately $5,571,000 of advisory fees were waived and approximately $43,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.
The Adviser agreed to reimburse the Fund for prior years overpayment of transfer agency fees. This was reflected as "Reimbursement of Transfer Agency Fees" in the Statement of Operations.
C. Administration Fees: The Adviser also serves as Administrator to the Trust and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Fund's average daily net assets.
Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Trust. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Fund.
D. Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Trust's Distributor of Fund shares pursuant to a Distribution Agreement. The Trust has adopted a Shareholder Services Plan with respect to the Institutional Class shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.05% of the Fund's average daily net assets attributable to the Institutional Class shares.
The Trust has adopted a Shareholder Services Plan with respect to the Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Fund pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to the Class A shares. The Distributor has agreed to waive the 12b-1 fees on Class A shares of the Fund to the extent it exceeds 0.10% of the average daily net assets of such shares on an annualized basis. Effective May 1, 2024, the Distributor has agreed to waive the 12b-1 fees on Class A shares of the Fund to the extent it exceeds 0.15% of the average daily
14
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
net assets of such shares on an annualized basis. This waiver will continue for at least one year or until such time as the Trustees act to discontinue all or a portion of such waiver when it deems such action is appropriate. For the year ended September 30, 2024, this waiver amounted to approximately $6,063,000.
The Distributor, Adviser and Administrator may also waive the shareholder services fees, advisory fees, administration fees and/or reimburse expenses to enable the Fund to maintain a minimum level of daily net investment income. This arrangement had no effect for the year ended September 30, 2024. The Distributor, Adviser and Administrator may discontinue these voluntary fee waivers and/or expense reimbursements at any time in the future.
The shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing distribution-related and/or 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 SS&C Global Investor & Distribution Solutions, Inc. ("SS&C GIDS"). Pursuant to a Transfer Agency Agreement, the Trust pays SS&C GIDS a fee based on the number of classes, accounts and transactions relating to the Funds of the Trust.
Morgan Stanley Services Company Inc. serves as Co-Transfer Agent and provides certain transfer agency services to the Fund with respect to certain direct transactions with the Fund.
F. Custodian Fees: State Street (the "Custodian") 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 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 Morgan Stanley Institutional Fund Trust 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. Generally, each of the tax years in the four-year period ended September 30, 2024 remains subject to examination by taxing authorities.
The tax character of distributions paid may differ from the character of distributions shown for GAAP purposes due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2024 and 2023 was as follows:
2024
Distributions
Paid From: | | 2023
Distributions
Paid From: | |
Ordinary
Income
(000) | | Ordinary
Income
(000) | |
| $ | 624,332 | | | $ | 537,318 | | |
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
15
Morgan Stanley Institutional Fund Trust
September 30, 2024
Notes to Financial Statements (cont'd)
(losses) on certain investment transactions and the timing of the deductibility of certain expenses.
The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended September 30, 2024
At September 30, 2024, 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) | |
| $ | 2,905 | | | $ | — | | |
At September 30, 2024, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $62,528,000 that do not have an expiration date.
To the extent that capital loss carryforwards are used to offset any future capital gains realized, 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, 2024, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $1,410,000.
I. Credit Facility: The Trust and other Morgan Stanley funds participated in a $500,000,000 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 for any funds drawn will be based on the federal funds rate or overnight bank funding rate plus a spread. The Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility, which is allocated among participating funds based on relative net assets. During the year ended September 30, 2024, the Fund did not have any borrowings under the Facility.
J. Other: At September 30, 2024, 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. Market Risk: The value of an investment in the Fund is based on the values of the Fund's investments, which change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. The risks associated with these developments may be magnified if certain social, political, economic and other conditions and events adversely
interrupt the global economy and financial markets. Securities in the Fund's portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters and extreme weather events, health emergencies (such as epidemics and pandemics), terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years, such as terrorist attacks around the world, natural disasters, health emergencies, social and political (including geopolitical) discord and tensions or debt crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. The occurrence of such events may be sudden and unexpected, and it is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects (which may last for extended periods). Any such event(s) could have a significant adverse impact on the value, liquidity and risk profile of the Fund's portfolio, as well as its ability to sell securities and/or meet redemptions. Any such event(s) or similar types of factors and developments may also adversely affect the financial performance of the Fund's investments (and, in turn, the Fund's investment results) and/or negatively impact broad segments of businesses and populations and have a significant and rapid negative impact on the performance of the Fund's investments, and exacerbate preexisting risks to the Fund.
16
Morgan Stanley Institutional Fund Trust
September 30, 2024
Report of Independent Registered Public Accounting Firm
To the Shareholders of Ultra-Short Income Portfolio and the
Board of Trustees of Morgan Stanley Institutional Fund Trust
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Ultra-Short Income Portfolio (the "Fund") (one of the funds constituting Morgan Stanley Institutional Fund Trust (the "Trust")), including the portfolio of investments, as of September 30, 2024, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting Morgan Stanley Institutional Fund Trust) at September 30, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more Morgan Stanley investment companies since 2000.
Boston, Massachusetts
November 26, 2024
17
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited)
Nature, Extent and Quality of Services
The Board reviewed and considered the nature and extent of the investment advisory services provided by the Adviser under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services provided by the Administrator under the administration agreement, including accounting, operations, clerical, bookkeeping, compliance, business management and planning, legal services and the provision of supplies, office space and utilities at the Adviser's expense. The Board also considered the Adviser's investment in personnel and infrastructure that benefits the Fund. (The Adviser and Administrator together are referred to as the "Adviser" and the advisory and administration agreements together are referred to as the "Management Agreement.") The Board also considered that the Adviser serves a variety of other investment advisory clients and has experience overseeing service providers. The Board also compared the nature of the services provided by the Adviser with similar services provided by non-affiliated advisers as prepared by Broadridge Financial Solutions, Inc. ("Broadridge").
The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who provide the advisory and administrative services to the Fund. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services provided were necessary and appropriate for the conduct of the business and investment activities of the Fund and supported its decision to approve the Management Agreement.
Performance, Fees and Expenses of the Fund
The Board reviewed the performance, fees and expenses of the Fund compared to its peers, as prepared by Broadridge, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Fund. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2023, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Fund's performance was better than its peer group average for the three- and five-year periods but below its peer group average for the one-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Fund relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as prepared by Broadridge. In addition to the management fee, the Board also reviewed the Fund's total expense ratio. The Board noted that the Fund's management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Fund's performance, management fee and total expense ratio were competitive with its peer group averages.
Economies of Scale
The Board considered the size and growth prospects of the Fund and how that relates to the Fund's total expense ratio and particularly the Fund's management fee rate, which does not include breakpoints. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Fund and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and/or potential economies of scale of the Fund supports its decision to approve the Management Agreement.
Profitability of the Adviser and Affiliates
The Board considered information concerning the costs incurred and profits realized by the Adviser and its affiliates during the last year from their relationship with the Fund and during the last two years from their relationship with the Morgan Stanley Fund Complex and reviewed with the Adviser the cost allocation methodology used to determine the profitability of the Adviser and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.
18
Morgan Stanley Institutional Fund Trust
September 30, 2024
Investment Advisory Agreement Approval (unaudited) (cont'd)
Other Benefits of the Relationship
The Board considered other direct and indirect benefits to the Adviser and/or its affiliates derived from their relationship with the Fund and other funds advised by the Adviser. These benefits may include, among other things, fees for trading, distribution and/or shareholder servicing and for transaction processing and reporting platforms used by securities lending agents, and research received by the Adviser generated from commission dollars spent on funds' portfolio trading. The Board reviewed with the Adviser these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.
Resources of the Adviser and Historical Relationship Between the Fund and the Adviser
The Board considered whether the Adviser is financially sound and has the resources necessary to perform its obligations under the Management Agreement. The Board also reviewed and considered the historical relationship between the Fund and the Adviser, including the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Fund's operations and the Board's confidence in the competence and integrity of the senior managers and key personnel of the Adviser. The Board concluded that the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Fund to continue its relationship with the Adviser.
Other Factors and Current Trends
The Board considered the controls and procedures adopted and implemented by the Adviser and monitored by the Fund's Chief Compliance Officer and concluded that the conduct of business by the Adviser indicates a good faith effort on its part to adhere to high ethical standards in the conduct of the Fund's business.
General Conclusion
After considering and weighing all of the above factors, with various written materials and verbal information presented by the Adviser, the Board concluded that it would be in the best interest of the Fund and its shareholders to approve renewal of the Management Agreement for another year. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. The Board considered these factors and information over the course of the year and in numerous meetings, some of which were in executive session with only the independent Board members and their counsel present. It is possible that individual Board members may have weighed these factors, and the information presented, differently in reaching their individual decisions to approve the Management Agreement.
19
Morgan Stanley Institutional Fund Trust
September 30, 2024
Federal Tax Notice (unaudited)
For federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during its taxable year ended September 30, 2024.
The Fund designated approximately $3,373,000 of its distributions paid as qualified interest income.
The Fund designated approximately $6,217,000 of its distributions paid as business interest income.
In January, the Fund provides tax information to shareholders for the preceding calendar year.
20
Morgan Stanley Investment Management Inc.
1585 Broadway
New York, New York 10036
© 2024 Morgan Stanley. Morgan Stanley Distribution, Inc.
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
This information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract
This information is disclosed as part of the Financial Statements included in Item 7 of this form N-CSR.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 15. Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominee to the Fund’s Board of Trustees since the Fund last provided disclosure in response to this item.
Item 16. Controls and Procedures
| (a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. |
| (b) | There have been no changes in the registrant’s internal controls over financial reporting during 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 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation
Not applicable.
Item 19. Exhibits
| (a)(1) | Registrant’s Code of Ethics – Not applicable (please see Item 2). |
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
| | Principal Executive Officer | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | Principal Financial Officer | |
| | Principal Executive Officer | |
