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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-05624

Morgan Stanley Institutional Fund, Inc.

(Exact name of registrant as specified in charter)

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

John H. Gernon

522 Fifth Avenue, New York, New York 10036

(Name and address of agent for service)

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

Date of fiscal year end: December 31,

Date of reporting period: June 30, 2022

Item 1 - Report to Shareholders

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					8
Statements of Changes in Net Assets					9
Financial Highlights					11
Notes to Financial Statements					17
Investment Advisory Agreement Approval					24
Liquidity Risk Management Program					26
U.S. Customer Privacy Notice					27
Director and Officer Information					30

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

Additionally, you can access 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Emerging Markets Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Emerging Markets Portfolio Class I	$	1,000.00	$	737.40	$	1,019.59	$	4.52	$	5.26		1.05	%
Emerging Markets Portfolio Class A		1,000.00		736.30		1,018.00		5.90		6.85		1.37
Emerging Markets Portfolio Class L		1,000.00		734.30		1,015.37		8.17		9.49		1.90
Emerging Markets Portfolio Class C		1,000.00		733.40		1,014.13		9.24		10.74		2.15
Emerging Markets Portfolio Class R6⁽¹⁾		1,000.00		737.70		1,020.08		4.09		4.76		0.95
Emerging Markets Portfolio Class IR		1,000.00		737.70		1,020.08		4.09		4.76		0.95

* Expenses are calculated using each Fund Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 181/365 (to reflect the most recent one-half year period).

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Emerging Markets Portfolio

	Shares		Value (000)
Common Stocks (96.4%)
Argentina (1.2%)
Globant SA (a)		36,729	$	6,391
Brazil (4.1%)
Cia Brasileira de Aluminio		833,355		1,844
Itau Unibanco Holding SA (Preference)		1,934,000		8,377
Lojas Renner SA		1,672,337		7,228
Petroleo Brasileiro SA (Preference)		802,287		4,282
				21,731
China (18.5%)
BYD Co., Ltd. H Shares (b)		214,000		8,626
China Construction Bank Corp. H Shares (b)		17,954,120		12,106
China Mengniu Dairy Co., Ltd. (b)		1,610,000		8,071
China Merchants Bank Co., Ltd. H Shares (b)		1,396,500		9,433
China Resources Beer Holdings Co., Ltd. (b)		1,012,000		7,563
China Tourism Group Duty Free Corp. Ltd., Class A		52,300		1,823
Hua Hong Semiconductor Ltd. (a)(b)		313,000		1,136
JD.com, Inc., Class A (b)		25,523		822
Jiangsu Hengrui Medicine Co., Ltd., Class A		452,059		2,509
Kweichow Moutai Co., Ltd., Class A		23,149		7,080
Li Ning Co., Ltd. (b)		499,000		4,646
Proya Cosmetics Co. Ltd., Class A		102,620		2,533
Shenzhou International Group Holdings Ltd. (b)		538,600		6,574
Sungrow Power Supply Co. Ltd.		170,495		2,510
Tencent Holdings Ltd. (b)		405,800		18,369
Will Semiconductor Co. Ltd. Shanghai		41,500		1,077
Zijin Mining Group Co., Ltd. H Shares (b)		2,106,000		2,563
				97,441
Czech Republic (1.0%)
Komercni Banka AS		185,895		5,263
Germany (0.9%)
Infineon Technologies AG		190,841		4,642
India (20.3%)
Asian Paints Ltd.		121,334		4,154
Bajaj Auto Ltd.		128,690		6,061
Eicher Motors Ltd.		82,273		2,923
Gland Pharma Ltd. (a)		76,869		2,637
HDFC Bank Ltd. ADR		175,844		9,664
Hindalco Industries Ltd.		1,554,521		6,704
Housing Development Finance Corp., Ltd.		187,089		5,176
ICICI Bank Ltd.		1,317,854		11,840
ICICI Prudential Life Insurance Co., Ltd.		620,093		3,853
Infosys Ltd.		357,609		6,647
Infosys Ltd. ADR		112,779		2,088
Macrotech Developers Ltd.		120,192		1,635
Mahindra & Mahindra Financial Services Ltd.		1,675,703		3,738
Mahindra & Mahindra Ltd.		397,468		5,528
MakeMyTrip Ltd. (a)(c)		102,976		2,644
Max Healthcare Institute Ltd. (a)		862,036		4,019
Reliance Industries Ltd.		510,467		16,855

	Shares		Value (000)
Shree Cement Ltd.		9,326	$	2,253
State Bank of India		1,422,887		8,438
				106,857
Indonesia (2.6%)
Bank Central Asia Tbk PT		12,468,100		6,071
Bank Mandiri Persero Tbk PT		9,229,800		4,929
Bank Rakyat Indonesia Persero Tbk PT		8,755,800		2,445
				13,445
Korea, Republic of (9.5%)
KB Financial Group, Inc.		151,134		5,644
Kia Corp.		52,770		3,149
LG Chem Ltd.		7,602		3,020
NAVER Corp.		12,592		2,349
Samsung Electronics Co., Ltd.		550,562		24,284
Samsung SDI Co., Ltd.		9,922		4,092
SK Hynix, Inc.		107,759		7,609
				50,147
Mexico (3.9%)
Grupo Financiero Banorte SAB de CV Series O		1,963,690		10,953
Wal-Mart de Mexico SAB de CV		2,794,098		9,615
				20,568
Netherlands (0.7%)
ASML Holding NV		7,165		3,410
Panama (1.5%)
Copa Holdings SA, Class A (a)		127,398		8,073
Poland (1.8%)
Dino Polska SA (a)		41,241		2,942
LPP SA		3,177		6,418
				9,360
Portugal (1.3%)
Galp Energia SGPS SA		586,184		6,859
South Africa (5.8%)
Anglo American Platinum Ltd.		88,273		7,702
Anglo American PLC		378,233		13,550
Capitec Bank Holdings Ltd.		76,438		9,368
				30,620
Taiwan (15.0%)
Airtac International Group		273,448		9,127
ASE Technology Holding Co., Ltd.		961,626		2,477
CTBC Financial Holding Co., Ltd.		6,513,000		5,509
Delta Electronics, Inc.		1,487,000		11,087
Silergy Corp.		53,000		4,286
Taiwan Semiconductor Manufacturing Co., Ltd.		1,643,205		26,335
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		222,162		18,162
Voltronic Power Technology Corp.		32,000		1,552
				78,535
Thailand (0.6%)
Ngern Tid Lor PCL		3,458,969		2,868

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments (cont'd)

Emerging Markets Portfolio

	Shares		Value (000)
United Kingdom (3.0%)
Antofagasta PLC		436,310	$	6,161
Mondi PLC (c)		532,517		9,463
				15,624
United States (4.7%)
Applied Materials, Inc.		31,503		2,866
EPAM Systems, Inc. (a)		15,428		4,548
MercadoLibre, Inc. (a)		7,179		4,572
NIKE, Inc., Class B		48,351		4,941
NVIDIA Corp.		51,353		7,785
				24,712
Total Common Stocks (Cost $477,001)				506,546
Short-Term Investment (3.7%)
Investment Company (3.7%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $19,623)		19,622,526		19,623
Total Investments (100.1%) (Cost $496,624) Including $6,456 of Securities Loaned (d)(e)				526,169
Liabilities in Excess of Other Assets (–0.1%)				(600	)
Net Assets (100.0%)			$	525,569

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

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(d) The approximate fair value and percentage of net assets, $389,103,000 and 74.0%, 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 the Financial Statements.

(e) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $89,146,000 and the aggregate gross unrealized depreciation is approximately $59,601,000, resulting in net unrealized appreciation of approximately $29,545,000.

ADR American Depositary Receipt.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		46.3	%
Banks		20.9
Semiconductors & Semiconductor Equipment		15.2
Metals & Mining		7.3
Oil, Gas & Consumable Fuels		5.3
Automobiles		5.0
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Emerging Markets Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $477,001)	$	506,546
Investment in Security of Affiliated Issuer, at Value (Cost $19,623)		19,623
Total Investments in Securities, at Value (Cost $496,624)		526,169
Foreign Currency, at Value (Cost $496)		484
Cash		19
Dividends Receivable		2,728
Receivable for Fund Shares Sold		261
Tax Reclaim Receivable		128
Receivable from Affiliate		19
Receivable from Securities Lending Income		1
Other Assets		143
Total Assets		529,952
Liabilities:
Deferred Capital Gain Country Tax		2,187
Payable for Advisory Fees		1,073
Payable for Investments Purchased		701
Payable for Fund Shares Redeemed		153
Payable for Custodian Fees		100
Payable for Sub Transfer Agency Fees — Class I		46
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 Administration Fees		24
Payable for Transfer Agency Fees		10
Payable for Transfer Agency Fees — Class I		10
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		—	@
Payable for Transfer Agency Fees — Class IR		—	@
Payable for Professional Fees		12
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		—	@
Other Liabilities		63
Total Liabilities		4,383
Net Assets	$	525,569
Net Assets Consist of:
Paid-in-Capital	$	474,124
Total Distributable Earnings		51,445
Net Assets	$	525,569

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Emerging Markets Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	196,131
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		10,456,848
Net Asset Value, Offering and Redemption Price Per Share	$	18.76
CLASS A:
Net Assets	$	6,170
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		339,493
Net Asset Value, Redemption Price Per Share	$	18.18
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.01
Maximum Offering Price Per Share	$	19.19
CLASS L:
Net Assets	$	233
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		13,171
Net Asset Value, Offering and Redemption Price Per Share	$	17.66
CLASS C:
Net Assets	$	251
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		14,245
Net Asset Value, Offering and Redemption Price Per Share	$	17.60
CLASS R6:*
Net Assets	$	322,775
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		17,207,427
Net Asset Value, Offering and Redemption Price Per Share	$	18.76
CLASS IR:
Net Assets	$	9
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		480
Net Asset Value, Offering and Redemption Price Per Share	$	18.76
⁽¹⁾ Including: Securities on Loan, at Value:	$	6,456

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Emerging Markets Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $1,120 of Foreign Taxes Withheld)	$	8,721
Dividends from Security of Affiliated Issuer (Note G)		33
Income from Securities Loaned — Net		17
Total Investment Income		8,771
Expenses:
Advisory Fees (Note B)		2,544
Administration Fees (Note C)		245
Custodian Fees (Note F)		165
Sub Transfer Agency Fees — Class I		117
Sub Transfer Agency Fees — Class A		5
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Professional Fees		87
Registration Fees		36
Transfer Agency Fees — Class I (Note E)		18
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		2
Transfer Agency Fees — Class IR (Note E)		1
Shareholder Reporting Fees		22
Shareholder Services Fees — Class A (Note D)		9
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		2
Directors' Fees and Expenses		5
Pricing Fees		3
Interest Expenses		6
Other Expenses		15
Total Expenses		3,287
Waiver of Advisory Fees (Note B)		(214	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(21	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(6	)
Net Expenses		3,041
Net Investment Income		5,730
Realized Gain (Loss):
Investments Sold (Net of $86 of Capital Gain Country Tax)		4,702
Foreign Currency Translation		(410	)
Net Realized Gain		4,292
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $845)		(197,517	)
Foreign Currency Translation		(59	)
Net Change in Unrealized Appreciation (Depreciation)		(197,576	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(193,284	)
Net Decrease in Net Assets Resulting from Operations	$	(187,554	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Emerging Markets Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	5,730		$	5,140
Net Realized Gain		4,292			108,608
Net Change in Unrealized Appreciation (Depreciation)		(197,576	)		(86,450	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(187,554	)		27,298
Dividends and Distributions to Shareholders:
Class I		—			(22,807	)
Class A		—			(742	)
Class L		—			(18	)
Class C		—			(33	)
Class R6*		—			(36,896	)
Class IR		—			(1	)
Total Dividends and Distributions to Shareholders		—			(60,497	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		19,456			44,505
Distributions Reinvested		—			22,052
Redeemed		(25,298	)		(95,980	)
Class A:
Subscribed		998			3,724
Distributions Reinvested		—			740
Redeemed		(1,705	)		(2,711	)
Class L:
Exchanged		63			38
Distributions Reinvested		—			18
Redeemed		—			(26	)
Class C:
Subscribed		73			579
Distributions Reinvested		—			33
Redeemed		(246	)		(589	)
Class R6:*
Subscribed		12,453			37,143
Distributions Reinvested		—			36,896
Redeemed		(14,805	)		(52,934	)
Class IR:
Distributions Reinvested		—			1
Net Decrease in Net Assets Resulting from Capital Share Transactions		(9,011	)		(6,511	)
Redemption Fees		—	@		—	@
Total Decrease in Net Assets		(196,565	)		(39,710	)
Net Assets:
Beginning of Period		722,134			761,844
End of Period	$	525,569		$	722,134

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Emerging Markets Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		905			1,578
Shares Issued on Distributions Reinvested		—			890
Shares Redeemed		(1,157	)		(3,409	)
Net Decrease in Class I Shares Outstanding		(252	)		(941	)
Class A:
Shares Subscribed		45			138
Shares Issued on Distributions Reinvested		—			31
Shares Redeemed		(79	)		(98	)
Net Increase (Decrease) in Class A Shares Outstanding		(34	)		71
Class L:
Shares Exchanged		3			1
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		—			(1	)
Net Increase in Class L Shares Outstanding		3			1
Class C:
Shares Subscribed		3			22
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(11	)		(22	)
Net Increase (Decrease) in Class C Shares Outstanding		(8	)		1
Class R6:*
Shares Subscribed		577			1,306
Shares Issued on Distributions Reinvested		—			1,490
Shares Redeemed		(664	)		(1,904	)
Net Increase (Decrease) in Class R6 Shares Outstanding		(87	)		892
Class IR:
Shares Issued on Distributions Reinvested		—			—	@@

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	25.44		$	26.85		$	23.69		$	22.53		$	27.95		$	20.83
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.20			0.17			0.13			0.41			0.28			0.19
Net Realized and Unrealized Gain (Loss)		(6.88	)		0.73			3.32			3.92			(5.15	)		7.10
Total from Investment Operations		(6.68	)		0.90			3.45			4.33			(4.87	)		7.29
Distributions from and/or in Excess of:
Net Investment Income		—			(0.46	)		(0.14	)		(0.18	)		(0.35	)		(0.17	)
Net Realized Gain		—			(1.85	)		(0.15	)		(2.99	)		(0.20	)		—
Total Distributions		—			(2.31	)		(0.29	)		(3.17	)		(0.55	)		(0.17	)
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	18.76		$	25.44		$	26.85		$	23.69		$	22.53		$	27.95
Total Return⁽³⁾		(26.26	)%⁽⁶⁾		3.55	%		14.58	%		19.44	%		(17.32	)%		34.97	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	196,131		$	272,406		$	312,834		$	277,114		$	229,132		$	342,400
Ratio of Expenses Before Expense Limitation		1.14	%⁽⁷⁾		1.09	%		1.10	%		1.16	%		N/A			1.07	%
Ratio of Expenses After Expense Limitation		1.05	%⁽⁴⁾⁽⁷⁾		1.05	%⁽⁴⁾		1.05	%⁽⁴⁾		1.05	%⁽⁴⁾		1.03	%⁽⁴⁾		1.04	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.05	%⁽⁴⁾⁽⁷⁾		1.05	%⁽⁴⁾		1.05	%⁽⁴⁾		1.05	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income		1.81	%⁽⁴⁾⁽⁷⁾		0.61	%⁽⁴⁾		0.58	%⁽⁴⁾		1.69	%⁽⁴⁾		1.08	%⁽⁴⁾		0.75	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%		0.00	%⁽⁵⁾
Portfolio Turnover Rate		24	%⁽⁶⁾		39	%		57	%		58	%		56	%		35	%

(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) 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."

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	24.69		$	26.13		$	23.05		$	21.99		$	27.24		$	20.31
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.16			0.08			0.05			0.30			0.20			0.10
Net Realized and Unrealized Gain (Loss)		(6.67	)		0.71			3.22			3.85			(5.01	)		6.92
Total from Investment Operations		(6.51	)		0.79			3.27			4.15			(4.81	)		7.02
Distributions from and/or in Excess of:
Net Investment Income		—			(0.38	)		(0.04	)		(0.10	)		(0.24	)		(0.09	)
Net Realized Gain		—			(1.85	)		(0.15	)		(2.99	)		(0.20	)		—
Total Distributions		—			(2.23	)		(0.19	)		(3.09	)		(0.44	)		(0.09	)
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	18.18		$	24.69		$	26.13		$	23.05		$	21.99		$	27.24
Total Return⁽³⁾		(26.37	)%⁽⁶⁾		3.23	%		14.21	%		19.08	%		(17.58	)%		34.54	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	6,170		$	9,222		$	7,907		$	11,195		$	13,605		$	23,952
Ratio of Expenses Before Expense Limitation		1.44	%⁽⁷⁾		1.39	%		1.43	%		1.43	%		N/A			1.40	%
Ratio of Expenses After Expense Limitation		1.37	%⁽⁴⁾⁽⁷⁾		1.36	%⁽⁴⁾		1.38	%⁽⁴⁾		1.34	%⁽⁴⁾		1.34	%⁽⁴⁾		1.36	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.37	%⁽⁴⁾⁽⁷⁾		1.36	%⁽⁴⁾		1.38	%⁽⁴⁾		1.34	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income		1.47	%⁽⁴⁾⁽⁷⁾		0.28	%⁽⁴⁾		0.24	%⁽⁴⁾		1.26	%⁽⁴⁾		0.78	%⁽⁴⁾		0.42	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%		0.00	%⁽⁵⁾
Portfolio Turnover Rate		24	%⁽⁶⁾		39	%		57	%		58	%		56	%		35	%

(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) The Ratios of Expense 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."

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	24.05		$	25.51		$	22.59		$	21.64		$	26.85		$	20.08
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.12			(0.06	)		(0.08	)		0.17			0.05			(0.01	)
Net Realized and Unrealized Gain (Loss)		(6.51	)		0.68			3.15			3.77			(4.91	)		6.80
Total from Investment Operations		(6.39	)		0.62			3.07			3.94			(4.86	)		6.79
Distributions from and/or in Excess of:
Net Investment Income		—			(0.23	)		—			—			(0.15	)		(0.02	)
Net Realized Gain		—			(1.85	)		(0.15	)		(2.99	)		(0.20	)		—
Total Distributions		—			(2.08	)		(0.15	)		(2.99	)		(0.35	)		(0.02	)
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	17.66		$	24.05		$	25.51		$	22.59		$	21.64		$	26.85
Total Return⁽³⁾		(26.57	)%⁽⁶⁾		2.64	%		13.65	%		18.37	%		(18.03	)%		33.80	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	233		$	233		$	215		$	210		$	292		$	253
Ratio of Expenses Before Expense Limitation		2.78	%⁽⁷⁾		2.69	%		3.06	%		2.47	%		2.55	%		2.54	%
Ratio of Expenses After Expense Limitation		1.90	%⁽⁴⁾⁽⁷⁾		1.90	%⁽⁴⁾		1.90	%⁽⁴⁾		1.90	%⁽⁴⁾		1.89	%⁽⁴⁾		1.90	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.90	%⁽⁴⁾⁽⁷⁾		1.90	%⁽⁴⁾		1.90	%⁽⁴⁾		1.90	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		1.12	%⁽⁴⁾⁽⁷⁾		(0.23	)%⁽⁴⁾		(0.40	)%⁽⁴⁾		0.73	%⁽⁴⁾		0.20	%⁽⁴⁾		(0.03	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%		0.00	%⁽⁵⁾
Portfolio Turnover Rate		24	%⁽⁶⁾		39	%		57	%		58	%		56	%		35	%

(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) 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."

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	24.01		$	25.29		$	22.45		$	21.57		$	26.66		$	19.99
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.06			(0.10	)		(0.11	)		0.11			0.04			(0.09	)
Net Realized and Unrealized Gain (Loss)		(6.47	)		0.67			3.10			3.76			(4.93	)		6.78
Total from Investment Operations		(6.41	)		0.57			2.99			3.87			(4.89	)		6.69
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.00	)⁽²⁾		(0.02	)
Net Realized Gain		—			(1.85	)		(0.15	)		(2.99	)		(0.20	)		—
Total Distributions		—			(1.85	)		(0.15	)		(2.99	)		(0.20	)		(0.02	)
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	17.60		$	24.01		$	25.29		$	22.45		$	21.57		$	26.66
Total Return⁽³⁾		(26.66	)%⁽⁶⁾		2.43	%		13.32	%		18.16	%		(18.26	)%		33.45	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	251		$	531		$	530		$	454		$	309		$	817
Ratio of Expenses Before Expense Limitation		2.82	%⁽⁷⁾		2.42	%		2.60	%		2.58	%		2.37	%		2.30	%
Ratio of Expenses After Expense Limitation		2.15	%⁽⁴⁾⁽⁷⁾		2.15	%⁽⁴⁾		2.15	%⁽⁴⁾		2.15	%⁽⁴⁾		2.14	%⁽⁴⁾		2.15	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.15	%⁽⁴⁾⁽⁷⁾		2.15	%⁽⁴⁾		2.15	%⁽⁴⁾		2.15	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		0.53	%⁽⁴⁾⁽⁷⁾		(0.39	)%⁽⁴⁾		(0.53	)%⁽⁴⁾		0.47	%⁽⁴⁾		0.17	%⁽⁴⁾		(0.36	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%		0.00	%⁽⁵⁾
Portfolio Turnover Rate		24	%⁽⁶⁾		39	%		57	%		58	%		56	%		35	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	25.43		$	26.85		$	23.68		$	22.52		$	27.96		$	20.83
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.21			0.20			0.15			0.36			0.31			0.21
Net Realized and Unrealized Gain (Loss)		(6.88	)		0.72			3.33			4.00			(5.17	)		7.11
Total from Investment Operations		(6.67	)		0.92			3.48			4.36			(4.86	)		7.32
Distributions from and/or in Excess of:
Net Investment Income		—			(0.49	)		(0.16	)		(0.21	)		(0.38	)		(0.19	)
Net Realized Gain		—			(1.85	)		(0.15	)		(2.99	)		(0.20	)		—
Total Distributions		—			(2.34	)		(0.31	)		(3.20	)		(0.58	)		(0.19	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	18.76		$	25.43		$	26.85		$	23.68		$	22.52		$	27.96
Total Return⁽⁴⁾		(26.23	)%⁽⁷⁾		3.63	%		14.73	%		19.58	%		(17.25	)%		35.09	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	322,775		$	439,730		$	440,346		$	524,416		$	797,029		$	1,034,348
Ratio of Expenses Before Expense Limitation		1.02	%⁽⁸⁾		0.98	%		1.00	%		1.04	%		N/A			0.98	%
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.92	%⁽⁵⁾		0.95	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		N/A			N/A
Ratio of Net Investment Income		1.92	%⁽⁵⁾⁽⁸⁾		0.71	%⁽⁵⁾		0.67	%⁽⁵⁾		1.47	%⁽⁵⁾		1.21	%⁽⁵⁾		0.82	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%		0.00	%⁽⁶⁾
Portfolio Turnover Rate		24	%⁽⁷⁾		39	%		57	%		58	%		56	%		35	%

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

(3) Amount is less than $0.005 per share.

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

(5) 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%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Portfolio

	Class IR
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 15, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	25.43		$	26.85		$	23.68		$	22.54		$	26.23
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.21			0.20			0.12			0.40			0.20
Net Realized and Unrealized Gain (Loss)		(6.88	)		0.72			3.36			3.94			(3.31	)
Total from Investment Operations		(6.67	)		0.92			3.48			4.34			(3.11	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.49	)		(0.16	)		(0.21	)		(0.38	)
Net Realized Gain		—			(1.85	)		(0.15	)		(2.99	)		(0.20	)
Total Distributions		—			(2.34	)		(0.31	)		(3.20	)		(0.58	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	18.76		$	25.43		$	26.85		$	23.68		$	22.54
Total Return⁽⁴⁾		(26.23	)%⁽⁷⁾		3.63	%		14.73	%		19.53	%		(11.82	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	9		$	12		$	12		$	10		$	9
Ratio of Expenses Before Expense Limitation		18.81	%⁽⁸⁾		16.98	%		21.21	%		21.52	%		19.46	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.93	%⁽⁵⁾⁽⁸⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		N/A
Ratio of Net Investment Income		1.92	%⁽⁵⁾⁽⁸⁾		0.71	%⁽⁵⁾		0.55	%⁽⁵⁾		1.62	%⁽⁵⁾		1.56	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		(0.01	)%⁽⁸⁾
Portfolio Turnover Rate		24	%⁽⁷⁾		39	%		57	%		58	%		56	%

(1) Commencement of Offering.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

Morgan Stanley Institutional Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Company is comprised of thirty-one separate, active, diversified and non-diversified funds (individually referred to as a "Fund," collectively as the "Funds"). The Company applies investment company accounting and reporting guidance.

The accompanying financial statements relate to the Emerging Markets Portfolio. The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of issuers in emerging market countries.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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.

(2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

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

the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Airlines	$	8,073	$	—	$	—	$	8,073
Automobiles		—		26,287		—		26,287
Banks		28,994		81,046		—		110,040
Beverages		—		14,643		—		14,643
Chemicals		—		7,174		—		7,174
Construction Materials		—		2,253		—		2,253
Consumer Finance		—		6,606		—		6,606
Electrical Equipment		—		4,062		—		4,062
Electronic Equipment, Instruments & Components		—		15,179		—		15,179
Food & Staples Retailing		9,615		2,942		—		12,557
Food Products		—		8,071		—		8,071
Health Care Providers & Services		—		4,019		—		4,019
Hotels, Restaurants & Leisure		2,644		—		—		2,644
Information Technology Services		13,027		6,647		—		19,674
Insurance		—		3,853		—		3,853
Interactive Media & Services		—		20,718		—		20,718
Internet & Direct Marketing Retail		4,572		822		—		5,394
Machinery		—		9,127		—		9,127
Metals & Mining		1,844		36,680		—		38,524
Multi-Line Retail		7,228		—		—		7,228
Oil, Gas & Consumable Fuels		4,282		23,714		—		27,996
Paper & Forest Products		—		9,463		—		9,463
Personal Products		—		2,533		—		2,533
Pharmaceuticals		—		5,146		—		5,146
Real Estate Management & Development		—		1,635		—		1,635
Semiconductors & Semiconductor Equipment		32,223		47,562		—		79,785
Specialty Retail		—		1,823		—		1,823
Tech Hardware, Storage & Peripherals		—		24,284		—		24,284
Textiles, Apparel & Luxury Goods		4,941		17,638		—		22,579
Thrifts & Mortgage Finance		—		5,176		—		5,176
Total Common Stocks		117,443		389,103		—		506,546
Short-Term Investment
Investment Company		19,623		—		—		19,623
Total Assets	$	137,066	$	389,103	$	—	$	526,169

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 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 transactions for the period is reflected in the Statement of Operations.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

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

4. 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 June 30, 2022:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	6,456	(a)	$	—	$	(6,456	)(b)(c)	$	0

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

(b) The Fund received non-cash collateral of approximately $6,954,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

5. Redemption Fees: The Fund will assess a 2% redemption fee, on Class I shares, Class A shares, Class L shares, Class C shares, Class R6 shares and Class IR shares which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory/Sub-Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at the annual rate based on the daily net assets as follows:

First $500 million				Next $500 million				Next $1.5 billion				Over $2.5 billion
	0.85	%			0.75	%			0.70	%			0.65	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.76% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.05% for Class I shares, 1.40% for Class A shares, 1.90% for Class L shares, 2.15% for Class C shares, 0.95% for Class R6 shares and 0.95% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $214,000 of advisory fees were waived and approximately $26,000 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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

C. Administration Fees: The Adviser also serves as Administrator to the Company 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 Company. 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 Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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 Company 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

services to investors who purchase Class A, Class L and Class C shares.

E. Dividend Disbursing and Transfer Agent: The Company's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Company pays DST a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

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

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $148,817,000 and $167,584,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $6,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	8,133			$	102,899			$	91,409			$	33

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	19,623

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 Directors in compliance with Rule 17a-7 under the Act (the "Rule"). Each cross-trade is executed at the current market price in compliance with provisions of the Rule. For the six months ended June 30, 2022, the Fund did not engage in any cross-trade transactions.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Director to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Directors. Each eligible Director 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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 December 31, 2021 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 2021 and 2020 was as follows:

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	11,076	$	49,421	$	4,274	$	4,178

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 December 31, 2021.

At December 31, 2021, 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)
$—				$17,251

During the year ended December 31, 2021, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $36,438,000.

I. Credit Facility: The Company and other Morgan Stanley funds participated in a $300,000,000 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. During the six months

ended June 30, 2022, the Fund did not have any borrowings under the Facility.

J. Other: At June 30, 2022, 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 67.0%.

K. Market Risk: The outbreak of the coronavirus ("COVID-19") and the recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

L. Results of Special Meeting of Shareholders: On February 25, 2022, a special meeting of the Fund's shareholders was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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, 2021, 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 includes 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (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.

As part of the Board's review, the Board received information from management on the impact of the COVID-19 pandemic on the firm generally and the Adviser and the Fund in particular including, among other information, the pandemic's current and expected impact on the Fund's performance and operations.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the "Liquidity Rule"), the Fund has adopted and implemented a liquidity risk management program (the "Program"), which is reasonably designed to assess and manage the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors' interests in the Fund (i.e., liquidity risk). The Fund's Board of Directors (the "Board") previously approved the designation of the Liquidity Risk Subcommittee (the "LRS") as Program administrator. The LRS is comprised of representatives from various divisions within Morgan Stanley Investment Management.

At a meeting held on March 1-2, 2022, the Board reviewed a written report prepared by the LRS that addressed the Program's operation and assessed its adequacy, and effectiveness of implementation for the period from January 1, 2021, through December 31, 2021, as required under the Liquidity Rule. The report concluded that the Program operated effectively and was adequately and effectively implemented in all material aspects, and that the relevant controls and safeguards were appropriately designed to enable the LRS to administer the Program in compliance with the Liquidity Rule.

In accordance with the Program, the LRS assessed each Fund's liquidity risk no less frequently than annually taking into consideration certain factors, as applicable, such as (i) investment strategy and liquidity of portfolio investments, (ii) short-term and long-term cash flow projections and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

Each Fund portfolio investment is classified into one of four liquidity categories, which classification is assessed at least monthly by the LRS. The classification is based on a determination of the number of days it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading and investment-specific considerations, as well as market depth, and in some cases utilize third-party vendor data.

The Liquidity Rule limits a fund's investments in illiquid investments to 15% of its net assets and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund's net assets to be invested in highly liquid investments (highly liquid investment minimum or "HLIM"). The LRS believes that the Program includes provisions reasonably designed to review, monitor and comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement, as applicable.

There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund's prospectus for more information regarding the Fund's exposure to liquidity risk and other risks to which it may be subject.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Vermont: Except as permitted by law, we will not share personal information we collect about Vermont residents with Non-affiliates unless you provide us with your written consent to share such information.

California: Except as permitted by law, we will not share personal information we collect about California residents with Non-affiliates and we will limit sharing such personal information with our Affiliates to comply with California privacy laws that apply to us.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

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

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management Company
23 Church Street
16-01 Capital Square, Singapore 049481

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its Semi-Annual and the Annual Reports within 60 days of the end of the fund's second and fourth fiscal quarters. The Semi-Annual and Annual Reports are filed electronically with the Securities and Exchange Commission ("SEC") on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the Semi-Annual and Annual Reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im/shareholderreports. Each Morgan Stanley non-money market fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters as an attachment to Form N-PORT. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, but makes the complete schedule of portfolio holdings for the fund's first and third fiscal quarters available on its public website. The holdings for each money market fund are also posted to the Morgan Stanley public website. You may obtain the Form N-PORT filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov).

Proxy Voting Policies and Procedures and Proxy Voting Record

You may obtain a copy of the Company's Proxy Voting Policy and Procedures and information regarding how the Company voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30, without charge, upon request, by calling toll free 1 (800) 548-7786 or by visiting our website at www.morganstanley.com/im/shareholderreports. This information is also available on the SEC's website at www.sec.gov.

This report is authorized for distribution only when preceded or accompanied by a prospectus or summary prospectus of the applicable fund of Morgan Stanley Institutional Fund, Inc., which describes in detail the fund's investment policies, risks, fees and expenses. Please read the prospectus carefully before you invest or send money. For additional information, including information regarding the investments comprising the Fund, please visit our website at www.morganstanley.com/im/shareholderreports or call toll free 1 (800) 548-7786.

Householding Notice

To reduce printing and mailing costs, the Fund attempts to eliminate duplicate mailings to the same address. The Fund delivers a single copy of certain shareholder documents, including shareholder reports, prospectuses and proxy materials, to investors with the same last name who reside at the same address. Your participation in this program will continue for an unlimited period of time unless you instruct us otherwise. You can request multiple copies of these documents by calling 1 (800) 548-7786, 8:00 a.m. to 6:00 p.m., ET. Once our Customer Service Center has received your instructions, we will begin sending individual copies for each account within 30 days.

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

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

IFIEMSAN
4877725 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Concentrated Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					6
Statements of Changes in Net Assets					7
Financial Highlights					8
Notes to Financial Statements					12
Investment Advisory Agreement Approval					18
Liquidity Risk Management Program					20
U.S. Customer Privacy Notice					21
Director and Officer Information					24

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Global Concentrated Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

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

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Concentrated Portfolio Class I	$	1,000.00	$	750.10	$	1,019.84	$	4.34	$	5.01		1.00	%
Global Concentrated Portfolio Class A		1,000.00		749.50		1,018.35		5.64		6.51		1.30
Global Concentrated Portfolio Class C		1,000.00		746.50		1,014.68		8.83		10.19		2.04
Global Concentrated Portfolio Class R6⁽¹⁾		1,000.00		750.50		1,020.08		4.12		4.76		0.95

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Global Concentrated Portfolio

	Shares		Value (000)
Common Stocks (98.7%)
Cayman Islands (9.1%)
NetEase, Inc. ADR		42,366	$	3,955
Tencent Holdings Ltd. ADR		82,620		3,750
				7,705
France (8.5%)
LVMH Moet Hennessy Louis Vuitton SE ADR		59,047		7,217
India (6.1%)
HDFC Bank Ltd. ADR		93,901		5,161
Netherlands (6.0%)
Ferrari NV		27,563		5,057
Taiwan (6.7%)
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		69,486		5,681
United States (62.3%)
Ameriprise Financial, Inc.		14,793		3,516
Costco Wholesale Corp.		8,684		4,162
Danaher Corp.		22,367		5,670
Domino's Pizza, Inc.		3,260		1,270
Estee Lauder Cos., Inc., Class A		6,429		1,637
JPMorgan Chase & Co.		13,276		1,495
Mastercard, Inc., Class A		8,206		2,589
Microsoft Corp.		29,092		7,472
NextEra Energy, Inc.		45,047		3,489
Pool Corp.		4,964		1,744
STORE Capital Corp. REIT		223,634		5,832
SVB Financial Group (a)		14,395		5,686
United Rentals, Inc. (a)		17,718		4,304
Waste Management, Inc.		26,491		4,053
				52,919
Total Common Stocks (Cost $87,445)				83,740
Investment Company (0.3%)
United States (0.3%)
Invesco China Technology ETF (a) (Cost $324)		4,670		236
Short-Term Investment (0.9%)
Investment Company (0.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $803)		803,327		803
Total Investments (99.9%) (Cost $88,572) (b)				84,779
Other Assets in Excess of Liabilities (0.1%)				88
Net Assets (100.0%)			$	84,867

(a) Non-income producing security.

(b) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $2,978,000 and the aggregate gross unrealized depreciation is approximately $6,771,000, resulting in net unrealized depreciation of approximately $3,793,000.

ADR American Depositary Receipt.

ETF Exchange Traded Fund.

REIT Real Estate Investment Trust.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		36.8	%
Banks		14.5
Software		8.8
Textiles, Apparel & Luxury Goods		8.5
Equity Real Estate Investment Trusts (REITs)		6.9
Semiconductors & Semiconductor Equipment		6.7
Life Sciences Tools & Services		6.7
Automobiles		6.0
Trading Companies & Distributors		5.1
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Concentrated Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $87,769)	$	83,976
Investment in Security of Affiliated Issuer, at Value (Cost $803)		803
Total Investments in Securities, at Value (Cost $88,572)		84,779
Receivable for Investments Sold		261
Dividends Receivable		170
Tax Reclaim Receivable		11
Receivable for Fund Shares Sold		7
Receivable from Affiliate		1
Other Assets		80
Total Assets		85,309
Liabilities:
Payable for Investments Purchased		218
Payable for Advisory Fees		129
Payable for Professional Fees		32
Payable for Fund Shares Redeemed		18
Payable for Sub Transfer Agency Fees — Class I		11
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class C		1
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class C		5
Payable for Administration Fees		6
Payable for Custodian Fees		5
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		—	@
Other Liabilities		13
Total Liabilities		442
Net Assets	$	84,867
Net Assets Consist of:
Paid-in-Capital	$	93,743
Total Accumulated Loss		(8,876	)
Net Assets	$	84,867
CLASS I:
Net Assets	$	73,018
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,014,042
Net Asset Value, Offering and Redemption Price Per Share	$	14.56
CLASS A:
Net Assets	$	5,667
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		393,906
Net Asset Value, Redemption Price Per Share	$	14.39
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.80
Maximum Offering Price Per Share	$	15.19
CLASS C:
Net Assets	$	6,167
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		442,834
Net Asset Value, Offering and Redemption Price Per Share	$	13.93
CLASS R6:*
Net Assets	$	15
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,051
Net Asset Value, Offering and Redemption Price Per Share	$	14.59

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Concentrated Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $37 of Foreign Taxes Withheld)	$	760
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		761
Expenses:
Advisory Fees (Note B)		368
Professional Fees		67
Shareholder Services Fees — Class A (Note D)		9
Distribution and Shareholder Services Fees — Class C (Note D)		35
Administration Fees (Note C)		39
Sub Transfer Agency Fees — Class I		25
Sub Transfer Agency Fees — Class A		2
Sub Transfer Agency Fees — Class C		2
Registration Fees		25
Shareholder Reporting Fees		18
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Custodian Fees (Note F)		3
Directors' Fees and Expenses		3
Pricing Fees		1
Other Expenses		4
Total Expenses		605
Waiver of Advisory Fees (Note B)		(62	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(5	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		537
Net Investment Income		224
Realized Gain (Loss):
Investments Sold		(3,946	)
Foreign Currency Translation		—	@
Net Realized Loss		(3,946	)
Change in Unrealized Appreciation (Depreciation):
Investments		(25,295	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(29,241	)
Net Decrease in Net Assets Resulting from Operations	$	(29,017	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Concentrated Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	224		$	(50	)
Net Realized Gain (Loss)		(3,946	)		2,574
Net Change in Unrealized Appreciation (Depreciation)		(25,295	)		11,483
Net Increase (Decrease) in Net Assets Resulting from Operations		(29,017	)		14,007
Dividends and Distributions to Shareholders:
Class I		—			(3,607	)
Class A		—			(319	)
Class C		—			(283	)
Class R6*		—			(4	)
Total Dividends and Distributions to Shareholders		—			(4,213	)
Capital Share Transactions: ⁽¹⁾
Class I:
Subscribed		12,421			52,949
Distributions Reinvested		—			3,606
Redeemed		(13,115	)		(12,352	)
Class A:
Subscribed		1,194			3,983
Distributions Reinvested		—			319
Redeemed		(1,635	)		(3,049	)
Class C:
Subscribed		1,049			3,953
Distributions Reinvested		—			283
Redeemed		(794	)		(356	)
Class R6:*
Subscribed		—			86
Distributions Reinvested		—			4
Redeemed		(45	)		(59	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(925	)		49,367
Total Increase (Decrease) in Net Assets		(29,942	)		59,161
Net Assets:
Beginning of Period		114,809			55,648
End of Period	$	84,867		$	114,809
(1) Capital Share Transactions:
Class I:
Shares Subscribed		733			2,859
Shares Issued on Distributions Reinvested		—			192
Shares Redeemed		(795	)		(658	)
Net Increase (Decrease) in Class I Shares Outstanding		(62	)		2,393
Class A:
Shares Subscribed		70			214
Shares Issued on Distributions Reinvested		—			17
Shares Redeemed		(105	)		(160	)
Net Increase (Decrease) in Class A Shares Outstanding		(35	)		71
Class C:
Shares Subscribed		65			216
Shares Issued on Distributions Reinvested		—			16
Shares Redeemed		(49	)		(19	)
Net Increase in Class C Shares Outstanding		16			213
Class R6:*
Shares Subscribed		—			4
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(3	)		(3	)
Net Increase (Decrease) in Class R6 Shares Outstanding		(3	)		1

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Concentrated Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	19.41		$	17.12		$	13.86		$	10.53		$	12.42		$	10.16
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.05			0.01			0.03			0.08			0.14			0.02
Net Realized and Unrealized Gain (Loss)		(4.90	)		3.02			3.23			3.40			(1.95	)		2.28
Total from Investment Operations		(4.85	)		3.03			3.26			3.48			(1.81	)		2.30
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.00	)⁽²⁾		(0.15	)		(0.08	)		(0.03	)
Net Realized Gain		—			(0.74	)		—			—			—			—
Paid-in-Capital		—			—			—			—			—			(0.01	)
Total Distributions		—			(0.74	)		(0.00	)⁽²⁾		(0.15	)		(0.08	)		(0.04	)
Net Asset Value, End of Period	$	14.56		$	19.41		$	17.12		$	13.86		$	10.53		$	12.42
Total Return⁽³⁾		(24.99	)%⁽⁶⁾		17.83	%		23.52	%		33.10	%		(14.61	)%		22.64	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	73,018		$	98,522		$	45,946		$	14,885		$	11,554		$	11,814
Ratio of Expenses Before Expense Limitation		1.14	%⁽⁷⁾		1.17	%		1.81	%		1.96	%		1.90	%		3.13	%
Ratio of Expenses After Expense Limitation		1.00	%⁽⁴⁾⁽⁷⁾		1.00	%⁽⁴⁾		0.99	%⁽⁴⁾		1.00	%⁽⁴⁾		1.00	%⁽⁴⁾		0.98	%⁽⁴⁾
Ratio of Net Investment Income		0.55	%⁽⁴⁾⁽⁷⁾		0.04	%⁽⁴⁾		0.21	%⁽⁴⁾		0.64	%⁽⁴⁾		1.13	%⁽⁴⁾		0.15	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		19	%⁽⁶⁾		33	%		54	%		123	%		94	%		68	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Concentrated Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	19.20		$	17.00		$	13.80		$	10.49		$	12.37		$	10.15
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.02			(0.05	)		(0.02	)		0.04			0.11			(0.03	)
Net Realized and Unrealized Gain (Loss)		(4.83	)		2.99			3.22			3.38			(1.95	)		2.28
Total from Investment Operations		(4.81	)		2.94			3.20			3.42			(1.84	)		2.25
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.00	)⁽²⁾		(0.11	)		(0.04	)		(0.03	)
Net Realized Gain		—			(0.74	)		—			—			—			—
Total Distributions		—			(0.74	)		(0.00	)⁽²⁾		(0.11	)		(0.04	)		(0.03	)
Net Asset Value, End of Period	$	14.39		$	19.20		$	17.00		$	13.80		$	10.49		$	12.37
Total Return⁽³⁾		(25.05	)%⁽⁶⁾		17.42	%		23.19	%		32.64	%		(14.91	)%		22.17	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	5,667		$	8,245		$	6,091		$	4,009		$	2,213		$	1,666
Ratio of Expenses Before Expense Limitation		1.43	%⁽⁷⁾		1.45	%		2.13	%		2.29	%		2.24	%		3.61	%
Ratio of Expenses After Expense Limitation		1.30	%⁽⁴⁾⁽⁷⁾		1.30	%⁽⁴⁾		1.31	%⁽⁴⁾		1.34	%⁽⁴⁾		1.35	%⁽⁴⁾		1.35	%⁽⁴⁾
Ratio of Net Investment Income (Loss)		0.25	%⁽⁴⁾⁽⁷⁾		(0.29	)%⁽⁴⁾		(0.14	)%⁽⁴⁾		0.32	%⁽⁴⁾		0.91	%⁽⁴⁾		(0.25	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		19	%⁽⁶⁾		33	%		54	%		123	%		94	%		68	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Concentrated Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	18.66		$	16.66		$	13.63		$	10.36		$	12.27		$	10.15
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		(0.04	)		(0.18	)		(0.12	)		(0.06	)		0.02			(0.11	)
Net Realized and Unrealized Gain (Loss)		(4.69	)		2.92			3.15			3.34			(1.93	)		2.26
Total from Investment Operations		(4.73	)		2.74			3.03			3.28			(1.91	)		2.15
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.00	)⁽²⁾		(0.01	)		—			(0.03	)
Net Realized Gain		—			(0.74	)		—			—			—			—
Total Distributions		—			(0.74	)		(0.00	)⁽²⁾		(0.01	)		—			(0.03	)
Net Asset Value, End of Period	$	13.93		$	18.66		$	16.66		$	13.63		$	10.36		$	12.27
Total Return⁽³⁾		(25.35	)%⁽⁶⁾		16.58	%		22.23	%		31.69	%		(15.57	)%		21.18	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	6,167		$	7,969		$	3,568		$	2,704		$	2,263		$	1,728
Ratio of Expenses Before Expense Limitation		2.17	%⁽⁷⁾		2.21	%		2.91	%		3.06	%		2.98	%		4.36	%
Ratio of Expenses After Expense Limitation		2.04	%⁽⁴⁾⁽⁷⁾		2.06	%⁽⁴⁾		2.09	%⁽⁴⁾		2.10	%⁽⁴⁾		2.09	%⁽⁴⁾		2.10	%⁽⁴⁾
Ratio of Net Investment Income (Loss)		(0.48	)%⁽⁴⁾⁽⁷⁾		(1.00	)%⁽⁴⁾		(0.91	)%⁽⁴⁾		(0.46	)%⁽⁴⁾		0.18	%⁽⁴⁾		(0.95	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		19	%⁽⁶⁾		33	%		54	%		123	%		94	%		68	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Concentrated Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	19.44		$	17.14		$	13.86		$	10.53		$	12.42		$	10.16
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.03			0.04			0.03			0.09			0.16			0.02
Net Realized and Unrealized Gain (Loss)		(4.88	)		3.00			3.25			3.40			(1.97	)		2.28
Total from Investment Operations		(4.85	)		3.04			3.28			3.49			(1.81	)		2.30
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.00	)⁽³⁾		(0.16	)		(0.08	)		(0.03	)
Net Realized Gain		—			(0.74	)		—			—			—			—
Paid-in-Capital		—			—			—			—			—			(0.01	)
Total Distributions		—			(0.74	)		(0.00	)⁽³⁾		(0.16	)		(0.08	)		(0.04	)
Net Asset Value, End of Period	$	14.59		$	19.44		$	17.14		$	13.86		$	10.53		$	12.42
Total Return⁽⁴⁾		(24.95	)%⁽⁷⁾		17.86	%		23.67	%		33.16	%		(14.55	)%		22.67	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15		$	73		$	43		$	14		$	11		$	12
Ratio of Expenses Before Expense Limitation		6.81	%⁽⁸⁾		7.26	%		9.20	%		17.68	%		17.97	%		18.61	%
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾
Ratio of Net Investment Income		0.38	%⁽⁵⁾⁽⁸⁾		0.21	%⁽⁵⁾		0.22	%⁽⁵⁾		0.68	%⁽⁵⁾		1.27	%⁽⁵⁾		0.22	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		19	%⁽⁷⁾		33	%		54	%		123	%		94	%		68	%

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Concentrated Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various

inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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	$	5,057	$	—	$	—	$	5,057
Banks		12,342		—		—		12,342
Capital Markets		3,516		—		—		3,516
Commercial Services & Supplies		4,053		—		—		4,053
Distributors		1,744		—		—		1,744
Electric Utilities		3,489		—		—		3,489
Entertainment		3,955		—		—		3,955
Equity Real Estate Investment Trusts (REITs)		5,832		—		—		5,832
Food & Staples Retailing		4,162		—		—		4,162
Hotels, Restaurants & Leisure		1,270		—		—		1,270
Information Technology Services		2,589		—		—		2,589

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Interactive Media & Services	$	3,750	$	—	$	—	$	3,750
Life Sciences Tools & Services		5,670		—		—		5,670
Personal Products		1,637		—		—		1,637
Semiconductors & Semiconductor Equipment		5,681		—		—		5,681
Software		7,472		—		—		7,472
Textiles, Apparel & Luxury Goods		7,217		—		—		7,217
Trading Companies & Distributors		4,304		—		—		4,304
Total Common Stocks		83,740		—		—		83,740
Investment Company		236		—		—		236
Short-Term Investment
Investment Company		803		—		—		803
Total Assets	$	84,779	$	—	$	—	$	84,779

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.

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.

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.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

5. 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.

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 noncash 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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

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

First $750 million				Next $750 million				Over $1.5 billion
0.75%				0.70%				0.65%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.62% of the Fund's average daily net assets.

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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $62,000 of advisory fees were waived and approximately $6,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $19,032,000 and $19,680,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	1,205			$	10,280			$	10,682			$	1

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	803

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 December 31, 2021 remains subject to examination by taxing authorities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

2021 Distributions Paid From:				2020 Distributions Paid From:
Long-Term Capital Gain (000)				Long-Term Capital Gain (000)
$4,213				$1

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$123				$(123)

At December 31, 2021, the Fund had no distributable earnings on a tax basis.

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 December 31, 2021, the Fund intends to defer to January 1, 2022 for U.S. federal income tax purposes the following losses:

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$—				$522

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. During the six months ended June 30, 2022, the Fund did not have any borrowings under the Facility.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 actual management fee and total expense ratio were higher than but close to its peer group averages and contractual management fee was lower than its peer group average. 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGCNPSAN
4877733 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Core Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					6
Statements of Changes in Net Assets					7
Financial Highlights					8
Notes to Financial Statements					12
Investment Advisory Agreement Approval					19
Liquidity Risk Management Program					21
U.S. Customer Privacy Notice					22
Director and Officer Information					25

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Global Core Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Core Portfolio Class I	$	1,000.00	$	769.00	$	1,019.89	$	4.34	$	4.96		0.99	%
Global Core Portfolio Class A		1,000.00		768.10		1,018.10		5.92		6.76		1.35
Global Core Portfolio Class C		1,000.00		764.60		1,014.38		9.19		10.49		2.10
Global Core Portfolio Class R6⁽¹⁾		1,000.00		769.60		1,020.08		4.17		4.76		0.95

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Global Core Portfolio

	Shares		Value (000)
Common Stocks (97.5%)
China (7.3%)
Alibaba Group Holding Ltd. ADR (a)		1,590	$	181
NetEase, Inc. ADR		5,466		510
Tencent Holdings Ltd. ADR		14,579		662
				1,353
France (4.4%)
LVMH Moet Hennessy Louis Vuitton SE		1,315		806
India (3.6%)
HDFC Bank Ltd. ADR		12,138		667
Ireland (3.4%)
CRH PLC ADR		15,068		525
Ryanair Holdings PLC ADR (a)		1,662		112
				637
Italy (3.9%)
Ferrari NV		3,909		717
Japan (1.9%)
Nippon Telegraph & Telephone Corp. ADR		12,239		352
Singapore (0.4%)
Sea Ltd. ADR (a)		1,141		76
Taiwan (3.6%)
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		8,235		673
United Kingdom (5.1%)
Diageo PLC ADR		3,648		635
Experian PLC ADR		10,131		297
				932
United States (63.9%)
Ameriprise Financial, Inc.		2,363		562
Apple, Inc.		10,600		1,449
Brown & Brown, Inc.		2,775		162
Chevron Corp.		8,059		1,167
Danaher Corp.		3,103		787
Edwards Lifesciences Corp. (a)		1,216		116
Estee Lauder Cos., Inc. Class A		1,850		471
First Republic Bank		3,886		560
Fortune Brands Home & Security, Inc.		2,498		150
JPMorgan Chase & Co.		4,119		464
Lululemon Athletica, Inc. (a)		1,696		462
Mastercard, Inc., Class A		1,491		470
McDonald's Corp.		2,026		500
MGM Resorts International		11,433		331
Microsoft Corp.		4,875		1,252
NextEra Energy, Inc.		7,000		542
Planet Fitness, Inc., Class A (a)		775		53
Pool Corp.		441		155
Progressive Corp.		676		79
SBA Communications Corp. REIT		520		166
STORE Capital Corp. REIT		21,868		570
SVB Financial Group (a)		1,492		589
Target Corp.		1,754		248
United Rentals, Inc. (a)		1,133		275

	Shares		Value (000)
Valero Energy Corp.		770	$	82
Veeva Systems, Inc., Class A (a)		604		120
				11,782
Total Common Stocks (Cost $16,685)				17,995
Short-Term Investment (2.1%)
Investment Company (2.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $383)		383,479		383
Total Investments (99.6%) (Cost $17,068) (b)(c)				18,378
Other Assets in Excess of Liabilities (0.4%)				71
Net Assets (100.0%)			$	18,449

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $806,000 and 4.4%, 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 the Financial Statements.

(c) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $2,420,000 and the aggregate gross unrealized depreciation is approximately $1,110,000, resulting in net unrealized appreciation of approximately $1,310,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		59.2	%
Banks		12.4
Tech Hardware, Storage & Peripherals		7.9
Textiles, Apparel & Luxury Goods		6.9
Software		6.8
Oil, Gas & Consumable Fuels		6.8
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Core Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $16,685)	$	17,995
Investment in Security of Affiliated Issuer, at Value (Cost $383)		383
Total Investments in Securities, at Value (Cost $17,068)		18,378
Foreign Currency, at Value (Cost —@)		—	@
Dividends Receivable		23
Receivable for Fund Shares Sold		17
Due from Adviser		13
Tax Reclaim Receivable		1
Receivable from Affiliate		—	@
Other Assets		73
Total Assets		18,505
Liabilities:
Payable for Professional Fees		32
Payable for Custodian Fees		3
Payable for Investments Purchased		3
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class C		2
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*		—	@
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 Administration Fees		1
Other Liabilities		13
Total Liabilities		56
Net Assets	$	18,449
Net Assets Consist of:
Paid-in-Capital	$	17,206
Total Distributable Earnings		1,243
Net Assets	$	18,449
CLASS I:
Net Assets	$	13,382
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		966,217
Net Asset Value, Offering and Redemption Price Per Share	$	13.85
CLASS A:
Net Assets	$	2,691
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		196,349
Net Asset Value, Redemption Price Per Share	$	13.71
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.76
Maximum Offering Price Per Share	$	14.47
CLASS C:
Net Assets	$	2,361
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		178,568
Net Asset Value, Offering and Redemption Price Per Share	$	13.22
CLASS R6:*
Net Assets	$	15
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,053
Net Asset Value, Offering and Redemption Price Per Share	$	13.86

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Core Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $5 of Foreign Taxes Withheld)	$	169
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		169
Expenses:
Advisory Fees (Note B)		78
Professional Fees		62
Registration Fees		21
Shareholder Services Fees — Class A (Note D)		3
Distribution and Shareholder Services Fees — Class C (Note D)		13
Administration Fees (Note C)		8
Shareholder Reporting Fees		8
Custodian Fees (Note F)		5
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Sub Transfer Agency Fees — Class I		2
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class C		1
Directors' Fees and Expenses		2
Pricing Fees		1
Other Expenses		4
Total Expenses		213
Waiver of Advisory Fees (Note B)		(78	)
Expenses Reimbursed by Adviser (Note B)		(12	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		122
Net Investment Income		47
Realized Gain (Loss):
Investments Sold		26
Foreign Currency Translation		(—	@)
Net Realized Gain		26
Change in Unrealized Appreciation (Depreciation):
Investments		(5,614	)
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		(5,614	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(5,588	)
Net Decrease in Net Assets Resulting from Operations	$	(5,541	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Core Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	47		$	(26	)
Net Realized Gain		26			1,062
Net Change in Unrealized Appreciation (Depreciation)		(5,614	)		1,764
Net Increase (Decrease) in Net Assets Resulting from Operations		(5,541	)		2,800
Dividends and Distributions to Shareholders:
Class I		—			(740	)
Class A		—			(107	)
Class C		—			(124	)
Class R6*		—			(1	)
Total Dividends and Distributions to Shareholders		—			(972	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		2,862			8,785
Distributions Reinvested		—			740
Redeemed		(3,384	)		(2,684	)
Class A:
Subscribed		843			776
Distributions Reinvested		—			107
Redeemed		(143	)		(303	)
Class C:
Subscribed		577			575
Distributions Reinvested		—			124
Redeemed		(397	)		(50	)
Class R6:*
Subscribed		—			10
Distributions Reinvested		—			1
Redeemed		(9	)		—
Net Increase in Net Assets Resulting from Capital Share Transactions		349			8,081
Total Increase (Decrease) in Net Assets		(5,192	)		9,909
Net Assets:
Beginning of Period		23,641			13,732
End of Period	$	18,449		$	23,641
(1) Capital Share Transactions:
Class I:
Shares Subscribed		174			495
Shares Issued on Distributions Reinvested		—			43
Shares Redeemed		(210	)		(152	)
Net Increase (Decrease) in Class I Shares Outstanding		(36	)		386
Class A:
Shares Subscribed		55			44
Shares Issued on Distributions Reinvested		—			6
Shares Redeemed		(9	)		(17	)
Net Increase in Class A Shares Outstanding		46			33
Class C:
Shares Subscribed		38			35
Shares Issued on Distributions Reinvested		—			7
Shares Redeemed		(27	)		(3	)
Net Increase in Class C Shares Outstanding		11			39
Class R6:*
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(1	)		—
Net Increase (Decrease) in Class R6 Shares Outstanding		(1	)		1

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Core Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	18.01		$	15.99		$	13.19		$	10.15		$	12.20		$	10.03
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.05			0.01			0.02			0.07			0.12			0.07
Net Realized and Unrealized Gain (Loss)		(4.21	)		2.78			2.78			3.07			(2.09	)		2.16
Total from Investment Operations		(4.16	)		2.79			2.80			3.14			(1.97	)		2.23
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.09	)		(0.08	)		(0.06	)
Net Realized Gain		—			(0.77	)		—			—			—			—
Paid-in-Capital		—			—			—			(0.01	)		—			(0.00	)⁽²⁾
Total Distributions		—			(0.77	)		—			(0.10	)		(0.08	)		(0.06	)
Net Asset Value, End of Period	$	13.85		$	18.01		$	15.99		$	13.19		$	10.15		$	12.20
Total Return⁽³⁾		(23.10	)%⁽⁶⁾		17.63	%		21.23	%		30.96	%		(16.15	)%		22.27	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13,382		$	18,041		$	9,849		$	8,157		$	6,738		$	10,398
Ratio of Expenses Before Expense Limitation		1.86	%⁽⁷⁾		2.13	%		2.93	%		2.73	%		2.53	%		2.89	%
Ratio of Expenses After Expense Limitation		0.99	%⁽⁴⁾⁽⁷⁾		0.99	%⁽⁴⁾		0.99	%⁽⁴⁾		0.98	%⁽⁴⁾		1.00	%⁽⁴⁾		0.97	%⁽⁴⁾
Ratio of Net Investment Income		0.63	%⁽⁴⁾⁽⁷⁾		0.06	%⁽⁴⁾		0.18	%⁽⁴⁾		0.61	%⁽⁴⁾		0.97	%⁽⁴⁾		0.64	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		10	%⁽⁶⁾		23	%		30	%		61	%		50	%		41	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Core Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	17.85		$	15.92		$	13.17		$	10.15		$	12.18		$	10.02
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.02			(0.05	)		(0.02	)		0.03			0.07			0.03
Net Realized and Unrealized Gain (Loss)		(4.16	)		2.75			2.77			3.05			(2.07	)		2.15
Total from Investment Operations		(4.14	)		2.70			2.75			3.08			(2.00	)		2.18
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.05	)		(0.03	)		(0.02	)
Net Realized Gain		—			(0.77	)		—			—			—			—
Paid-in-Capital		—			—			—			(0.01	)		—			(0.00	)⁽²⁾
Total Distributions		—			(0.77	)		—			(0.06	)		(0.03	)		(0.02	)
Net Asset Value, End of Period	$	13.71		$	17.85		$	15.92		$	13.17		$	10.15		$	12.18
Total Return⁽³⁾		(23.19	)%⁽⁶⁾		17.14	%		20.88	%		30.36	%		(16.41	)%		21.82	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,691		$	2,678		$	1,869		$	2,186		$	1,320		$	1,962
Ratio of Expenses Before Expense Limitation		2.21	%⁽⁷⁾		2.51	%		3.32	%		3.12	%		2.89	%		3.36	%
Ratio of Expenses After Expense Limitation		1.35	%⁽⁴⁾⁽⁷⁾		1.35	%⁽⁴⁾		1.35	%⁽⁴⁾		1.35	%⁽⁴⁾		1.35	%⁽⁴⁾		1.35	%⁽⁴⁾
Ratio of Net Investment Income (Loss)		0.29	%⁽⁴⁾⁽⁷⁾		(0.31	)%⁽⁴⁾		(0.18	)%⁽⁴⁾		0.26	%⁽⁴⁾		0.62	%⁽⁴⁾		0.25	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		10	%⁽⁶⁾		23	%		30	%		61	%		50	%		41	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Core Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	17.29		$	15.55		$	12.97		$	10.02		$	12.08		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽¹⁾		(0.04	)		(0.18	)		(0.12	)		(0.05	)		(0.01	)		(0.06	)
Net Realized and Unrealized Gain (Loss)		(4.03	)		2.69			2.70			3.00			(2.05	)		2.15
Total from Investment Operations		(4.07	)		2.51			2.58			2.95			(2.06	)		2.09
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.01	)
Net Realized Gain		—			(0.77	)		—			—			—			—
Total Distributions		—			(0.77	)		—			—			—			(0.01	)
Net Asset Value, End of Period	$	13.22		$	17.29		$	15.55		$	12.97		$	10.02		$	12.08
Total Return⁽²⁾		(23.54	)%⁽⁵⁾		16.32	%		19.89	%		29.44	%		(17.05	)%		20.92	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,361		$	2,893		$	1,998		$	1,448		$	1,311		$	1,246
Ratio of Expenses Before Expense Limitation		2.97	%⁽⁶⁾		3.25	%		4.11	%		3.92	%		3.66	%		4.19	%
Ratio of Expenses After Expense Limitation		2.10	%⁽³⁾⁽⁶⁾		2.10	%⁽³⁾		2.10	%⁽³⁾		2.10	%⁽³⁾		2.10	%⁽³⁾		2.10	%⁽³⁾
Ratio of Net Investment Loss		(0.47	)%⁽³⁾⁽⁶⁾		(1.06	)%⁽³⁾		(0.94	)%⁽³⁾		(0.45	)%⁽³⁾		(0.05	)%⁽³⁾		(0.50	)%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁴⁾⁽⁶⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾
Portfolio Turnover Rate		10	%⁽⁵⁾		23	%		30	%		61	%		50	%		41	%

(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) 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."

(4) Amount is less than 0.005%.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Core Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	18.01		$	15.99		$	13.18		$	10.15		$	12.20		$	10.03
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.05			0.02			0.03			0.07			0.13			0.07
Net Realized and Unrealized Gain (Loss)		(4.20	)		2.77			2.78			3.06			(2.09	)		2.17
Total from Investment Operations		(4.15	)		2.79			2.81			3.13			(1.96	)		2.24
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.09	)		(0.09	)		(0.07	)
Net Realized Gain		—			(0.77	)		—			—			—			—
Paid-in-Capital		—			—			—			(0.01	)		—			(0.00	)⁽³⁾
Total Distributions		—			(0.77	)		—			(0.10	)		(0.09	)		(0.07	)
Net Asset Value, End of Period	$	13.86		$	18.01		$	15.99		$	13.18		$	10.15		$	12.20
Total Return⁽⁴⁾		(23.04	)%⁽⁷⁾		17.55	%		21.40	%		30.90	%		(16.10	)%		22.29	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15		$	29		$	16		$	13		$	10		$	12
Ratio of Expenses Before Expense Limitation		12.46	%⁽⁸⁾		13.09	%		18.19	%		18.98	%		19.09	%		18.67	%
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾		0.95	%⁽⁵⁾
Ratio of Net Investment Income		0.65	%⁽⁵⁾⁽⁸⁾		0.10	%⁽⁵⁾		0.22	%⁽⁵⁾		0.63	%⁽⁵⁾		1.06	%⁽⁵⁾		0.66	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		10	%⁽⁷⁾		23	%		30	%		61	%		50	%		41	%

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Core Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Airlines	$	112	$	—	$	—	$	112
Automobiles		717		—		—		717
Banks		2,280		—		—		2,280
Beverages		635		—		—		635
Building Products		150		—		—		150
Capital Markets		562		—		—		562
Construction Materials		525		—		—		525
Distributors		155		—		—		155
Diversified Telecommunication Services		518		—		—		518
Electric Utilities		542		—		—		542
Entertainment		586		—		—		586

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Equity Real Estate Investment Trusts (REITs)	$	570	$	—	$	—	$	570
Health Care Equipment & Supplies		116		—		—		116
Health Care Technology		120		—		—		120
Hotels, Restaurants & Leisure		884		—		—		884
Information Technology Services		470		—		—		470
Insurance		241		—		—		241
Interactive Media & Services		662		—		—		662
Internet & Direct Marketing Retail		181		—		—		181
Life Sciences Tools & Services		787		—		—		787
Multi-Line Retail		248		—		—		248
Oil, Gas & Consumable Fuels		1,249		—		—		1,249
Personal Products		471		—		—		471
Professional Services		297		—		—		297
Semiconductors & Semiconductor Equipment		673		—		—		673
Software		1,252		—		—		1,252
Tech Hardware, Storage & Peripherals		1,449		—		—		1,449
Textiles, Apparel & Luxury Goods		462		806		—		1,268
Trading Companies & Distributors		275		—		—		275
Total Common Stocks		17,189		806		—		17,995
Short-Term Investment
Investment Company		383		—		—		383
Total Assets	$	17,572	$	806	$	—	$	18,378

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 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.

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 security markets and the possibility of political or economic instability.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services

under the terms of an Investment Advisory Agreement, paid quarterly, at the annual rate based on the daily net assets as follows:

First $750 million				Next $750 million				Over $1.5 billion
	0.75	%			0.70	%			0.65	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $78,000 of advisory fees were waived and approximately $13,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

the Fund's average daily net assets attributable to Class A shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $2,222,000 and $2,012,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	421			$	3,477			$	3,515			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain(Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	383

@ Amount is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Generally, each of the tax years in the four-year period ended December 31, 2021, remains subject to examination by taxing authorities.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	972	$	—	$	—

Permanent differences, due to net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	28			$	(28	)

At December 31, 2021, the Fund had no distributable earnings on a tax basis.

During the year ended December 31, 2021, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $169,000.

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$	—			$	54

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

because of these factors for an extended period, the Fund's investment results may be adversely affected.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

Performance, Fees and Expenses of the Fund

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGCPSAN
4878945 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Endurance Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
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
Investment Advisory Agreement Approval					22
Liquidity Risk Management Program					24
U.S. Customer Privacy Notice					25
Director and Officer Information					28

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Global Endurance Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Endurance Portfolio Class I	$	1,000.00	$	405.40	$	1,019.84	$	3.48	$	5.01		1.00	%
Global Endurance Portfolio Class A		1,000.00		404.70		1,018.10		4.70		6.76		1.35
Global Endurance Portfolio Class C		1,000.00		403.60		1,014.38		7.31		10.49		2.10
Global Endurance Portfolio Class R6⁽¹⁾		1,000.00		405.30		1,020.08		3.31		4.76		0.95

* Expenses are calculated using each fundcode not found Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period and multiplied by 181/365 (to reflect the most recent one-half year period).

** Annualized.

⁽¹⁾Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Global Endurance Portfolio

	Shares		Value (000)
Common Stocks (97.3%)
Canada (8.1%)
Colliers International Group, Inc.		9,733	$	1,066
Constellation Software, Inc.		1,110		1,648
				2,714
Finland (1.6%)
Revenio Group Oyj		12,054		538
Israel (5.9%)
Global-e Online Ltd. (a)		98,523		1,987
Netherlands (3.4%)
Basic-Fit NV (a)		29,998		1,130
Singapore (1.2%)
Sea Ltd. ADR (a)		5,874		393
Sweden (2.2%)
INVISIO AB		50,843		732
United Kingdom (11.3%)
Babcock International Group PLC (a)		404,034		1,525
Victoria PLC (a)		414,583		2,278
				3,803
United States (63.6%)
Affirm Holdings, Inc. (a)		82,774		1,495
Appian Corp. (a)		49,907		2,363
AppLovin Corp., Class A (a)		50,473		1,738
Bill.Com Holdings, Inc. (a)		10,294		1,132
Cardlytics, Inc. (a)		45,886		1,024

	Shares		Value (000)
Carvana Co. (a)		71,595	$	1,617
Cricut, Inc., Class A (a)		381,816		2,344
Fastly, Inc., Class A (a)		158,626		1,842
Floor & Decor Holdings, Inc., Class A (a)		29,122		1,833
GoodRx Holdings, Inc., Class A (a)		218,865		1,296
Meta Platforms, Inc., Class A (a)		5,370		866
Party City Holdco, Inc. (a)		397,446		525
Royalty Pharma PLC, Class A		43,181		1,815
Salesforce, Inc. (a)		8,615		1,422
				21,312
Total Common Stocks (Cost $75,090)				32,609
Short-Term Investment (3.1%)
Investment Company (3.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $1,031)		1,030,771		1,031
Total Investments (100.4%) (Cost $76,121) (b)(c)(d)				33,640
Liabilities in Excess of Other Assets (–0.4%)				(126	)
Net Assets (100.0%)			$	33,514

The Fund had the following Derivative Contract — PIPE open at June 30, 2022:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Depreciation (000)				% of Net Assets
Social Capital Suvretta Holdings Corp.III				ProKidney, LP. (a)(e)(f)(g)(h)				$	197,480			12/30/2022				$	(28	)			(0.08	)%

(a) Non-income producing security.

(b) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $235,000 and the aggregate gross unrealized depreciation is approximately $42,744,000, resulting in net unrealized appreciation of approximately $42,509,000.

(c) The approximate fair value and percentage of net assets, $6,203,000 and 18.5%, 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 the Financial Statements.

(d) Securities are available for collateral in connection with a derivative contract - PIPE.

(e) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted security and derivative contracts (excluding 144A holdings) at June 30, 2022 amounts to approximately $(28,000) and represents (0.1)% of net assets.

(f) At June 30, 2022, the Fund held a derivative contract valued at approximately $(28,000), representing (0.1)% of net assets. This holding has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(g) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 19,748 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between ProKidney, LP., and Social Capital Suvretta Holdings Corp.III, a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Social Capital Suvretta Holdings Corp.III and ProKidney, LP., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the Fund is no longer obligated to fulfill its commitment to Social Capital Suvretta Holdings Corp.III and ProKidney, LP. The investment is restricted from resale until the settlement date.

(h) Investment is valued based on the underlying stock price and significant unobservable inputs that factor in volatility and discount for lack of marketability and transaction risk and is classified as Level 3 in the fair value hierarchy.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments (cont'd)

Global Endurance Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Software		25.4	%
Other*		19.5
Household Durables		14.1
Specialty Retail		12.2
Information Technology Services		10.2
Aerospace & Defense		6.9
Internet & Direct Marketing Retail		6.1
Pharmaceuticals		5.6
Total Investments		100.0	%**

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

** Does not include an open PIPE contract with total unrealized depreciation of approximately $28,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Endurance Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $75,090)	$	32,609
Investment in Security of Affiliated Issuer, at Value (Cost $1,031)		1,031
Total Investments in Securities, at Value (Cost $76,121)		33,640
Foreign Currency, at Value (Cost $2)		2
Receivable for Fund Shares Sold		148
Dividends Receivable		2
Receivable from Affiliate		—	@
Other Assets		61
Total Assets		33,853
Liabilities:
Payable for Investments Purchased		220
Payable for Professional Fees		35
Unrealized Depreciation on Derivative Contract — PIPE		28
Payable for Advisory Fees		23
Payable for Custodian Fees		7
Payable for Sub Transfer Agency Fees — Class I		2
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Administration Fees		2
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class R6*		—	@
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Fund Shares Redeemed		1
Other Liabilities		18
Total Liabilities		339
Net Assets	$	33,514
Net Assets Consist of:
Paid-in-Capital	$	91,781
Total Accumulated Loss		(58,267	)
Net Assets	$	33,514
CLASS I:
Net Assets	$	29,414
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,615,117
Net Asset Value, Offering and Redemption Price Per Share	$	11.25
CLASS A:
Net Assets	$	3,567
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		321,240
Net Asset Value, Redemption Price Per Share	$	11.11
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.62
Maximum Offering Price Per Share	$	11.73
CLASS C:
Net Assets	$	520
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		48,031
Net Asset Value, Offering and Redemption Price Per Share	$	10.82
CLASS R6:*
Net Assets	$	13
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,123
Net Asset Value, Offering and Redemption Price Per Share	$	11.26

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Endurance Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $2 of Foreign Taxes Withheld)	$	35
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		36
Expenses:
Advisory Fees (Note B)		205
Professional Fees		63
Registration Fees		31
Administration Fees (Note C)		21
Sub Transfer Agency Fees — Class I		15
Sub Transfer Agency Fees — Class A		2
Sub Transfer Agency Fees — Class C		—	@
Shareholder Services Fees — Class A (Note D)		6
Distribution and Shareholder Services Fees — Class C (Note D)		4
Shareholder Reporting Fees		9
Custodian Fees (Note F)		8
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Directors' Fees and Expenses		2
Pricing Fees		1
Other Expenses		11
Total Expenses		383
Waiver of Advisory Fees (Note B)		(105	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(6	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		269
Net Investment Loss		(233	)
Realized Loss:
Investments Sold		(12,323	)
Foreign Currency Translation		(3	)
Net Realized Loss		(12,326	)
Change in Unrealized Appreciation (Depreciation):
Investments		(35,636	)
Foreign Currency Translation		(—	@)
Derivative Contract — PIPE		(28	)
Net Change in Unrealized Appreciation (Depreciation)		(35,664	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(47,990	)
Net Decrease in Net Assets Resulting from Operations	$	(48,223	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Endurance Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(233	)	$	(558	)
Net Realized Gain (Loss)		(12,326	)		876
Net Change in Unrealized Appreciation (Depreciation)		(35,664	)		(11,333	)
Net Decrease in Net Assets Resulting from Operations		(48,223	)		(11,015	)
Dividends and Distributions to Shareholders:
Class I		—			(3,258	)
Class A		—			(249	)
Class C		—			(73	)
Class R6*		—			(1	)
Total Dividends and Distributions to Shareholders		—			(3,581	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		13,827			100,653
Distributions Reinvested		—			3,258
Redeemed		(11,597	)		(27,595	)
Class A:
Subscribed		4,116			8,642
Distributions Reinvested		—			249
Redeemed		(1,716	)		(5,503	)
Class C:
Subscribed		179			2,650
Distributions Reinvested		—			73
Redeemed		(367	)		(1,320	)
Class R6:*
Distributions Reinvested		—			1
Net Increase in Net Assets Resulting from Capital Share Transactions		4,442			81,108
Total Increase (Decrease) in Net Assets		(43,781	)		66,512
Net Assets:
Beginning of Period		77,295			10,783
End of Period	$	33,514		$	77,295
(1) Capital Share Transactions:
Class I:
Shares Subscribed		743			2,989
Shares Issued on Distributions Reinvested		—			118
Shares Redeemed		(668	)		(863	)
Net Increase in Class I Shares Outstanding		75			2,244
Class A:
Shares Subscribed		215			258
Shares Issued on Distributions Reinvested		—			9
Shares Redeemed		(85	)		(170	)
Net Increase in Class A Shares Outstanding		130			97
Class C:
Shares Subscribed		9			80
Shares Issued on Distributions Reinvested		—			3
Shares Redeemed		(19	)		(42	)
Net Increase (Decrease) in Class C Shares Outstanding		(10	)		41
Class R6:*
Shares Issued on Distributions Reinvested		—			—	@@

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Endurance Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,									Period Ended
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	27.75		$	26.51		$	13.03		$	9.98		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.08	)		(0.28	)		(0.09	)		(0.05	)		(0.00	)⁽³⁾
Net Realized and Unrealized Gain (Loss)		(16.42	)		2.82			14.41			3.10			(0.02	)
Total from Investment Operations		(16.50	)		2.54			14.32			3.05			(0.02	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.02	)		(0.03	)		—			—
Net Realized Gain		—			(1.28	)		(0.81	)		—			—
Total Distributions		—			(1.30	)		(0.84	)		—			—
Net Asset Value, End of Period	$	11.25		$	27.75		$	26.51		$	13.03		$	9.98
Total Return⁽⁴⁾		(59.46	)%⁽⁷⁾		9.59	%		110.03	%		30.30	%		0.00	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	29,414		$	70,478		$	7,854		$	2,757		$	2,017
Ratio of Expenses Before Expense Limitation		1.43	%⁽⁸⁾		1.34	%		5.12	%		14.17	%		913.94	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.00	%⁽⁵⁾⁽⁸⁾		0.99	%⁽⁵⁾		1.00	%⁽⁵⁾		1.00	%⁽⁵⁾		1.00	%⁽⁸⁾
Ratio of Net Investment Loss		(0.86	)%⁽⁵⁾⁽⁸⁾		(0.85	)%⁽⁵⁾		(0.52	)%⁽⁵⁾		(0.42	)%⁽⁵⁾		(1.00	)%⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		N/A
Portfolio Turnover Rate		41	%⁽⁷⁾		75	%		46	%		74	%		0	%⁽⁷⁾

(1) Commencement of Operations.

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

(3) Amount is less than $0.005 per share.

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

(5) 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Endurance Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,									Period Ended
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	27.45		$	26.33		$	12.99		$	9.98		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.10	)		(0.38	)		(0.19	)		(0.09	)		(0.00	)⁽³⁾
Net Realized and Unrealized Gain (Loss)		(16.24	)		2.80			14.34			3.10			(0.02	)
Total from Investment Operations		(16.34	)		2.42			14.15			3.01			(0.02	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.02	)		(0.00	)⁽³⁾		—			—
Net Realized Gain		—			(1.28	)		(0.81	)		—			—
Total Distributions		—			(1.30	)		(0.81	)		—			—
Net Asset Value, End of Period	$	11.11		$	27.45		$	26.33		$	12.99		$	9.98
Total Return⁽⁴⁾		(59.53	)%⁽⁷⁾		9.20	%		109.10	%		29.90	%		0.00	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,567		$	5,239		$	2,462		$	13		$	10
Ratio of Expenses Before Expense Limitation		1.78	%⁽⁸⁾		1.70	%		5.67	%		29.52	%		927.90	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.35	%⁽⁵⁾⁽⁸⁾		1.35	%⁽⁵⁾		1.35	%⁽⁵⁾		1.35	%⁽⁵⁾		1.35	%⁽⁸⁾
Ratio of Net Investment Loss		(1.21	)%⁽⁵⁾⁽⁸⁾		(1.16	)%⁽⁵⁾		(0.86	)%⁽⁵⁾		(0.77	)%⁽⁵⁾		(1.35	)%⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		N/A
Portfolio Turnover Rate		41	%⁽⁷⁾		75	%		46	%		74	%		0	%⁽⁷⁾

(1) Commencement of Operations.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Endurance Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,									Period Ended
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	26.81		$	25.93		$	12.89		$	9.98		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.17	)		(0.62	)		(0.33	)		(0.18	)		(0.00	)⁽³⁾
Net Realized and Unrealized Gain (Loss)		(15.82	)		2.80			14.18			3.09			(0.02	)
Total from Investment Operations		(15.99	)		2.18			13.85			2.91			(0.02	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.02	)		—			—			—
Net Realized Gain		—			(1.28	)		(0.81	)		—			—
Total Distributions		—			(1.30	)		(0.81	)		—			—
Net Asset Value, End of Period	$	10.82		$	26.81		$	25.93		$	12.89		$	9.98
Total Return⁽⁴⁾		(59.64	)%⁽⁷⁾		8.41	%		107.59	%		28.90	%		0.00	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	520		$	1,547		$	439		$	13		$	10
Ratio of Expenses Before Expense Limitation		2.74	%⁽⁸⁾		2.53	%		7.61	%		30.23	%		928.63	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		2.10	%⁽⁵⁾⁽⁸⁾		2.10	%⁽⁵⁾		2.10	%⁽⁵⁾		2.10	%⁽⁵⁾		2.10	%⁽⁸⁾
Ratio of Net Investment Loss		(1.96	)%⁽⁵⁾⁽⁸⁾		(1.92	)%⁽⁵⁾		(1.62	)%⁽⁵⁾		(1.52	)%⁽⁵⁾		(2.10	)%⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		N/A
Portfolio Turnover Rate		41	%⁽⁷⁾		75	%		46	%		74	%		0	%⁽⁷⁾

(1) Commencement of Operations.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Endurance Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,									Period Ended
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			December 31, 2018⁽²⁾
Net Asset Value, Beginning of Period	$	27.78		$	26.53		$	13.04		$	9.98		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.07	)		(0.24	)		(0.08	)		(0.04	)		(0.00	)⁽⁴⁾
Net Realized and Unrealized Gain (Loss)		(16.45	)		2.79			14.41			3.10			(0.02	)
Total from Investment Operations		(16.52	)		2.55			14.33			3.06			(0.02	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.02	)		(0.03	)		—			—
Net Realized Gain		—			(1.28	)		(0.81	)		—			—
Total Distributions		—			(1.30	)		(0.84	)		—			—
Net Asset Value, End of Period	$	11.26		$	27.78		$	26.53		$	13.04		$	9.98
Total Return⁽⁵⁾		(59.47	)%⁽⁸⁾		9.62	%		110.08	%		30.40	%		0.00	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13		$	31		$	28		$	13		$	10
Ratio of Expenses Before Expense Limitation		11.36	%⁽⁹⁾		7.59	%		16.93	%		29.13	%		927.65	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.95	%⁽⁶⁾⁽⁹⁾		0.95	%⁽⁶⁾		0.95	%⁽⁶⁾		0.95	%⁽⁶⁾		0.95	%⁽⁹⁾
Ratio of Net Investment Loss		(0.81	)%⁽⁶⁾⁽⁹⁾		(0.71	)%⁽⁶⁾		(0.47	)%⁽⁶⁾		(0.37	)%⁽⁶⁾		(0.95	)%⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		N/A
Portfolio Turnover Rate		41	%⁽⁸⁾		75	%		46	%		74	%		0	%⁽⁸⁾

(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) Amount is less than $0.005 per share.

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

(6) The 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%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Endurance Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (6) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; 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.

(unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	—	$	2,257	$	—	$	2,257
Entertainment		393		—		—		393
Health Care Equipment & Supplies		—		538		—		538
Health Care Technology		1,296		—		—		1,296
Hotels, Restaurants & Leisure		—		1,130		—		1,130
Household Durables		2,344		2,278		—		4,622
Information Technology Services		3,337		—		—		3,337

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Interactive Media & Services	$	866	$	—	$	—		$	866
Internet & Direct Marketing Retail		1,987		—		—			1,987
Media		1,024		—		—			1,024
Pharmaceuticals		1,815		—		—			1,815
Real Estate Management & Development		1,066		—		—			1,066
Software		8,303		—		—			8,303
Specialty Retail		3,975		—		—			3,975
Total Common Stocks		26,406		6,203		—			32,609
Short-Term Investment
Investment Company		1,031		—		—			1,031
Total Assets	$	27,437	$	6,203	$	—		$	33,640
Liabilities:
Derivative Contract — PIPE		—		—		(28	)		(28	)
Total	$	27,437	$	6,203	$	(28	)	$	33,612

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:

	Derivative Contract — PIPE (000)
Beginning Balance	$	—
Purchases		—
Sales		—
PIPE transactions		(28	)
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—
Realized gains (losses)		—
Ending Balance	$	(28	)
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022	$	(28	)

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 June 30, 2022:

Fair Value at
June 30, 2022
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

PIPE

(28

)

Market Implied

Discount for Lack of
Marketability
and Transaction Risk

14.0

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. 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss. Leverage associated with derivative transactions may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission ("SEC") rules and regulations, or may cause the Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund's investment objectives, there is no assurance that the use of derivatives will achieve this result.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

PIPE investment represents an unfunded subscription agreement in a private investment in public equity. The Fund will earmark or segregate cash or liquid assets or establish a segregated account on the Fund's books in which it will continually maintain cash or cash equivalents or other liquid portfolio securities equal in value to commitments to purchase securities on a when-issued basis.

At June 30, 2022, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Portfolio of Investments.

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 June 30, 2022:

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Depreciation on
Derivative Contract — PIPE

Equity Risk

(28

)

The following table sets forth by primary risk exposure the Fund's change in unrealized appreciation (depreciation) by type of derivative contract for the six months ended June 30, 2022 in accordance with ASC 815:

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Equity Risk	Derivative Contract — PIPE	$	(28	)

At June 30, 2022, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives	Assets (000)		Liabilities (000)
Derivative Contract — PIPE	$	—	$	(28	)(a)

(a) Assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Derivative Contract — PIPE:
Average monthly notional amount				$	197,000

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

6. Dividends and Distributions to Shareholders: Dividends and distributions to shareholders are recorded on the 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.

7. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

quarterly, at the annual rate based on the daily net assets as follows:

First $1 billion				Over $1 billion
0.80%				0.75%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.39% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $105,000 of advisory fees were waived and approximately $8,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $24,461,000 and $21,067,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	—			$	21,358			$	20,327			$	1

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	1,031

During the six months ended June 30, 2022, the Fund incurred less than $500 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 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 December 31, 2021 remains subject to examination by taxing authorities.

2021 Distributions Paid From:		2020 Distributions Paid From:
Ordinary Income (000)	Long-Term Capital Gain (000)	Ordinary Income (000)	Long-Term Capital Gain (000)
$2,122	$1,459	$31	$292

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2021.

At December 31, 2021, the Fund had no distributable earnings on a tax basis.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

deemed to arise on the first day of the Fund's next taxable year. For the year ended December 31, 2021, the Fund intends to defer to January 1, 2022 for U.S. federal income tax purposes the following losses:

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$—				$2,294

K. Market Risk and Risks Relating to Certain Financial Instruments:

Market: The outbreak of the coronavirus ("COVID-19") and the recovery responses could adversely impact the operations of the Fund and its service providers and financial performance of the Fund and the Fund's investments. The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Special Purpose Acquisition Companies: The Fund may invest in stock, warrants, and other securities of SPACs or similar special purpose entities. A SPAC is typically a publicly traded company that raises investment capital via an initial public offering ("IPO") for the purpose of acquiring the equity securities of one or more existing companies (or interests therein) via merger, combination, acquisition or other similar transactions. The Fund may acquire an interest in a SPAC in an IPO or a secondary market transaction.

Unless and until an acquisition is completed, a SPAC generally invests its assets (less a portion retained to cover expenses) in U.S. government securities, money market securities and cash. To the extent the SPAC is invested in cash or similar securities, this may negatively affect the Fund's performance. Because SPACs and similar entities are in essence blank check companies without operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the entity's management to identify and complete a profitable acquisition. There is no guarantee that the SPACs in which the Fund invests will complete an acquisition or that any acquisitions that are completed will be profitable. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. In addition, these securities, which are typically traded in the over-the-counter market, may be considered illiquid and/or be subject to restrictions on resale.

Other risks of investing in SPACs include that a significant portion of the monies raised by the SPAC may be expended during the search for a target transaction; an attractive transaction may not be identified at all (or any requisite approvals may not be obtained) and the SPAC may dissolve and be required to return any remaining monies to shareholders, causing the Fund to incur the opportunity cost of missed investment opportunities the Fund otherwise could have benefited from; a transaction once identified or effected may prove unsuccessful and an investment in the SPAC may lose value; the warrants or other rights with respect to the SPAC held by the Fund may expire worthless or may be repurchased or retired by the SPAC at an unfavorable price; and an investment in a SPAC may be diluted by additional later offerings of interests in the SPAC or by other investors exercising existing rights to purchase shares of the SPAC. In addition, a SPAC target company may have limited operating experience, a smaller size, limited product lines, markets, distribution channels and financial and managerial resources. Investing in the securities of smaller companies involves greater risk, and portfolio price volatility.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Private Investment in Public Equity: The Fund may acquire equity securities of an issuer that are issued through a PIPE transaction, including on a when-issued basis. The Fund will generally earmark an amount of cash or high quality securities equal (on a daily mark to market basis) to the amount of its commitment to purchase the when-issued securities. PIPE transactions typically involve the purchase of securities directly from a publicly traded company or its affiliates in a private placement transaction, including through a SPAC, typically at a discount to the market price of the company's securities. There is a risk that if the market price of the securities drops below a set threshold, the company may have to issue additional stock at a significantly reduced price, which may dilute the value of the Fund's investment. Shares in PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. This restricted period can last many months. Until the public registration process is completed, PIPEs are restricted as to resale and the Fund cannot freely trade the securities. Generally, such restrictions cause the PIPEs to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 below its peer group average for the one-year period but better than its peer group average for the three-year period and for the period since the end of December 2018, the month of the Fund's inception. 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGENDSAN
4878953 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Focus Real Estate Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
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
Investment Advisory Agreement Approval					20
Liquidity Risk Management Program					22
U.S. Customer Privacy Notice					23
Director and Officer Information					26

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Global Focus Real Estate Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Focus Real Estate Portfolio Class I	$	1,000.00	$	789.60	$	1,020.13	$	4.17	$	4.71		0.94	%
Global Focus Real Estate Portfolio Class A		1,000.00		787.00		1,018.35		5.76		6.51		1.30
Global Focus Real Estate Portfolio Class C		1,000.00		784.60		1,014.63		9.07		10.24		2.05
Global Focus Real Estate Portfolio Class R6⁽¹⁾		1,000.00		789.70		1,020.33		3.99		4.51		0.90

** Annaulized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Global Focus Real Estate Portfolio

	Shares		Value (000)
Common Stocks (98.5%)
Australia (2.7%)
Dexus REIT		6,245	$	38
Ingenia Communities Group REIT		8,148		23
National Storage REIT		21,077		31
Shopping Centres Australasia Property Group REIT		10,902		21
				113
Belgium (1.8%)
Aedifica SA REIT		781		75
Canada (3.3%)
Chartwell Retirement Residences		3,603		31
InterRent Real Estate Investment Trust REIT		3,977		37
Tricon Residential, Inc.		6,888		70
				138
China (0.6%)
GDS Holdings Ltd. ADR (a)		714		24
France (0.9%)
Klepierre SA REIT (a)		929		18
Mercialys SA REIT		2,533		20
				38
Germany (1.0%)
Vonovia SE		1,318		41
Hong Kong (4.6%)
Hongkong Land Holdings Ltd.		8,500		43
Link REIT		10,200		83
Wharf Real Estate Investment Co., Ltd.		14,000		67
				193
Japan (7.8%)
Japan Metropolitan Fund Investment Corp. REIT		56		44
Mitsubishi Estate Logistics Investment Corp. REIT		19		64
Mitsui Fudosan Co., Ltd.		5,700		122
Nippon Building Fund, Inc. REIT		19		95
				325
Netherlands (1.0%)
NSI NV REIT		1,178		41
Singapore (3.9%)
CapitaLand Integrated Commercial Trust REIT		30,700		48
Digital Core Management Pte Ltd. REIT (a)		34,700		27
Mapletree Industrial Trust REIT		19,600		37
Suntec REIT		43,900		51
				163
Spain (1.2%)
Merlin Properties Socimi SA REIT		5,373		52
Sweden (0.7%)
Catena AB		773		28
United Kingdom (4.8%)
Empiric Student Property PLC REIT		40,202		42
Helical PLC		7,194		33
Land Securities Group PLC REIT		4,724		38
LondonMetric Property PLC REIT		13,858		38
Segro PLC REIT		4,347		52
				203

	Shares		Value (000)
United States (64.2%)
Agree Realty Corp. REIT		2,344	$	169
American Tower Corp. REIT		1,502		384
Americold Realty Trust, Inc. REIT		2,901		87
Boyd Gaming Corp.		836		42
Digital Realty Trust, Inc. REIT		1,415		184
Duke Realty Corp. REIT		2,266		124
Equity Residential REIT		3,572		258
Extra Space Storage, Inc. REIT		504		86
Iron Mountain, Inc. REIT		1,725		84
Mid-America Apartment Communities, Inc. REIT		905		158
NETSTREIT Corp. REIT		2,930		55
Park Hotels & Resorts, Inc. REIT		1,522		21
ProLogis, Inc. REIT		1,079		127
Public Storage REIT		641		200
RPT Realty REIT		7,868		77
SBA Communications Corp. REIT		411		132
SITE Centers Corp. REIT		6,118		82
SL Green Realty Corp. REIT		882		41
Sun Communities, Inc. REIT		421		67
Urban Edge Properties REIT		5,397		82
Welltower, Inc. REIT		2,742		226
				2,686
Total Common Stocks (Cost $4,755)				4,120
Short-Term Investment (0.6%)
Investment Company (0.6%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G) (Cost $24)		23,716		24
Total Investments (99.1%) (Cost $4,779) (b)(c)				4,144
Other Assets in Excess of Liabilities (0.9%)				37
Net Assets (100.0%)			$	4,181

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $1,272,000 and 30.4%, 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 the Financial Statements.

(c) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $15,000 and the aggregate gross unrealized depreciation is approximately $650,000, resulting in net unrealized depreciation of approximately $635,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments (cont'd)

Global Focus Real Estate Portfolio

Portfolio Composition

Classification	Percentage of Total Investments
Diversified		21.0	%
Residential		16.2
Retail		12.6
Specialty		12.5
Industrial		11.6
Office		8.3
Health Care		8.0
Self Storage		7.7
Other*		2.1
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Focus Real Estate Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $4,755)	$	4,120
Investment in Security of Affiliated Issuer, at Value (Cost $24)		24
Total Investments in Securities, at Value (Cost $4,779)		4,144
Foreign Currency, at Value (Cost $21)		20
Due from Adviser		76
Dividends Receivable		18
Prepaid Offering Costs		15
Interest Receivable		—	@
Tax Reclaim Receivable		—	@
Receivable from Affiliate		—	@
Receivable from Securities Lending Income		—	@
Other Assets		55
Total Assets		4,328
Liabilities:
Payable for Offering Costs		73
Payable for Professional Fees		46
Payable for Custodian Fees		7
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*		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Administration Fees		—	@
Other Liabilities		21
Total Liabilities		147
Net Assets	$	4,181
Net Assets Consist of:
Paid-in-Capital	$	5,070
Total Accumulated Loss		(889	)
Net Assets	$	4,181
CLASS I:
Net Assets	$	4,134
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		501,248
Net Asset Value, Offering and Redemption Price Per Share	$	8.25
CLASS A:
Net Assets	$	31
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,766
Net Asset Value, Redemption Price Per Share	$	8.23
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.46
Maximum Offering Price Per Share	$	8.69
CLASS C:
Net Assets	$	8
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,002
Net Asset Value, Offering and Redemption Price Per Share	$	8.22
CLASS R6:*
Net Assets	$	8
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,009
Net Asset Value, Offering and Redemption Price Per Share	$	8.25

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Focus Real Estate Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $4 of Foreign Taxes Withheld)	$	75
Dividends from Security of Affiliated Issuer (Note G)		—	@
Income from Securities Loaned — Net		—	@
Total Investment Income		75
Expenses:
Offering Costs		89
Professional Fees		53
Advisory Fees (Note B)		18
Shareholder Reporting Fees		8
Registration Fees		8
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Custodian Fees (Note F)		3
Administration Fees (Note C)		2
Directors' Fees and Expenses		1
Pricing Fees		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Sub Transfer Agency Fees — Class A		—	@
Other Expenses		7
Total Expenses		194
Expenses Reimbursed by Adviser (Note B)		(151	)
Waiver of Advisory Fees (Note B)		(18	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		22
Net Investment Income		53
Realized Loss:
Investments Sold		(224	)
Foreign Currency Translation		(1	)
Net Realized Loss		(225	)
Change in Unrealized Appreciation (Depreciation):
Investments		(946	)
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		(946	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(1,171	)
Net Decrease in Net Assets Resulting from Operations	$	(1,118	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Focus Real Estate Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Period from July 30, 2021^ to December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	53		$	19
Net Realized Loss		(225	)		(59	)
Net Change in Unrealized Appreciation (Depreciation)		(946	)		311
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,118	)		271
Dividends and Distributions to Shareholders:
Class I		(20	)		(22	)
Class A		(—	@)		(—	@)
Class C		(—	@)		(—	@)
Class R6*		(—	@)		(—	@)
Total Dividends and Distributions to Shareholders		(20	)		(22	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		—			4,971
Distributions Reinvested		20			22
Class A:
Subscribed		—			37
Distributions Reinvested		—	@		—	@
Class C:
Subscribed		—			10
Distributions Reinvested		—	@		—	@
Class R6:*
Subscribed		—			10
Distributions Reinvested		—	@		—
Net Increase in Net Assets Resulting from Capital Share Transactions		20			5,050
Total Increase (Decrease) in Net Assets		(1,118	)		5,299
Net Assets:
Beginning of Period		5,299			—
End of Period	$	4,181		$	5,299
(1) Capital Share Transactions:
Class I:
Shares Subscribed		—			497
Shares Issued on Distributions Reinvested		2			2
Net Increase in Class I Shares Outstanding		2			499
Class A:
Shares Subscribed		—			4
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class A Shares Outstanding		—	@@		4
Class C:
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class C Shares Outstanding		—	@@		1
Class R6:*
Shares Subscribed		—			1
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class R6 Shares Outstanding		—	@@		1

^ Commencement of operations.

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 Shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Focus Real Estate Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period from July 30, 2021⁽¹⁾ to December 31, 2021
Net Asset Value, Beginning of Period	$	10.49		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.11			0.04
Net Realized and Unrealized Gain (Loss)		(2.31	)		0.50
Total from Investment Operations		(2.20	)		0.54
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.05	)
Net Asset Value, End of Period	$	8.25		$	10.49
Total Return⁽³⁾		(21.04	)%⁽⁴⁾		5.38	%⁽⁴⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,134		$	5,239
Ratio of Expenses Before Expense Limitation		8.05	%⁽⁵⁾		8.85	%⁽⁵⁾
Ratio of Expenses After Expense Limitation		0.94	%⁽⁵⁾⁽⁶⁾		0.94	%⁽⁵⁾⁽⁶⁾
Ratio of Net Investment Income		2.26	%⁽⁵⁾⁽⁶⁾		0.89	%⁽⁵⁾⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾⁽⁷⁾
Portfolio Turnover Rate		57	%⁽⁴⁾		44	%⁽⁴⁾

(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) Not annualized.

(5) Annualized.

(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.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Focus Real Estate Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period from July 30, 2021⁽¹⁾ to December 31, 2021
Net Asset Value, Beginning of Period	$	10.49		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.09			0.03
Net Realized and Unrealized Gain (Loss)		(2.32	)		0.49
Total from Investment Operations		(2.23	)		0.52
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.03	)
Net Asset Value, End of Period	$	8.23		$	10.49
Total Return⁽³⁾		(21.30	)%⁽⁴⁾		5.23	%⁽⁴⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	31		$	39
Ratio of Expenses Before Expense Limitation		13.71	%⁽⁵⁾		14.76	%⁽⁵⁾
Ratio of Expenses After Expense Limitation		1.30	%⁽⁵⁾⁽⁶⁾		1.30	%⁽⁵⁾⁽⁶⁾
Ratio of Net Investment Income		1.90	%⁽⁵⁾⁽⁶⁾		0.63	%⁽⁵⁾⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾⁽⁷⁾
Portfolio Turnover Rate		57	%⁽⁴⁾		44	%⁽⁴⁾

(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) Not annualized.

(5) Annualized.

(7) Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Focus Real Estate Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period from July 30, 2021⁽¹⁾ to December 31, 2021
Net Asset Value, Beginning of Period	$	10.49		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		0.05			(0.01	)
Net Realized and Unrealized Gain (Loss)		(2.31	)		0.50
Total from Investment Operations		(2.26	)		0.49
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)		(0.00	)⁽³⁾
Net Asset Value, End of Period	$	8.22		$	10.49
Total Return⁽⁴⁾		(21.54	)%⁽⁵⁾		4.92	%⁽⁵⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	8		$	10
Ratio of Expenses Before Expense Limitation		28.24	%⁽⁶⁾		27.58	%⁽⁶⁾
Ratio of Expenses After Expense Limitation		2.05	%⁽⁶⁾⁽⁷⁾		2.05	%⁽⁶⁾⁽⁷⁾
Ratio of Net Investment Income (Loss)		1.14	%⁽⁶⁾⁽⁷⁾		(0.23	)%⁽⁶⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		57	%⁽⁵⁾		44	%⁽⁵⁾

(1) Commencement of Operations.

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

(3) Amount is less than $0.005 per share.

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

(5) Not annualized.

(6) Annualized.

(7) 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."

(8) Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Focus Real Estate Portfolio

	Class R6⁽¹⁾
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period from July 30, 2021⁽²⁾ to December 31, 2021
Net Asset Value, Beginning of Period	$	10.49		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽³⁾		0.11			0.04
Net Realized and Unrealized Gain (Loss)		(2.31	)		0.50
Total from Investment Operations		(2.20	)		0.54
Distributions from and/or in Excess of:
Net Investment Income		(0.04	)		(0.05	)
Net Asset Value, End of Period	$	8.25		$	10.49
Total Return⁽⁴⁾		(21.03	)%⁽⁵⁾		5.39	%⁽⁵⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	8		$	11
Ratio of Expenses Before Expense Limitation		27.10	%⁽⁶⁾		26.54	%⁽⁶⁾
Ratio of Expenses After Expense Limitation		0.90	%⁽⁶⁾⁽⁷⁾		0.90	%⁽⁶⁾⁽⁷⁾
Ratio of Net Investment Income		2.30	%⁽⁶⁾⁽⁷⁾		0.93	%⁽⁶⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		57	%⁽⁵⁾		44	%⁽⁵⁾

(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) Not annualized.

(6) Annualized.

(7) 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."

(8) Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Focus Real Estate Portfolio. The Fund seeks to provide current income and long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The Fund invests a significant portion of its assets in securities of real estate investment trusts ("REITs"). The market's perception of prospective declines in private real estate values and other financial assets may result in increased volatility of market prices that can negatively impact the valuation of certain issuers held by the Fund.

about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Diversified	$	292	$	579	$	—	$	871
Health Care		257		75		—		332
Industrial		338		144		—		482
Lodging/Resorts		63		—		—		63
Office		41		301		—		342
Residential		590		83		—		673

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Retail	$	465	$	59	$	—	$	524
Self Storage		286		31		—		317
Specialty		516		—		—		516
Total Common Stocks		2,848		1,272		—		4,120
Short-Term Investment
Investment Company		24		—		—		24
Total Assets	$	2,872	$	1,272	$	—	$	4,144

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

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

At June 30, 2022, the Fund did not have any outstanding securities on loan.

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

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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

The Fund owns shares of 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.

First $2 billion				Over $2 billion
	0.75	%			0.70	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.95% for Class I shares, 1.30% for Class A shares, 2.05% for Class C shares and 0.90% for Class 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $18,000 of advisory fees were waived and approximately $154,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Company and provides administrative

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $2,725,000 and $2,743,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	6			$	695			$	677			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	24

@ Amount is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Fund.

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. The tax year ended December 31, 2021 remains subject to examination by taxing authorities.

2021 Distributions Paid From:
Ordinary Income (000)
$	22

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations

which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Permanent differences, due to a nondeductible expense, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	—	@		$	(—	@)

@ Amount is less than $500.

At December 31, 2021, 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)
$	58			$	—

At December 31, 2021, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $58,000, that do not have an expiration date.

J. Other: At June 30, 2022, the Fund did not have record owners of 10% or greater.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

The extent of such impact depends on future developments, including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

The Board considered the following factors at the time of approval of the contracts which occurred prior to commencement of operations.

Nature, Extent and Quality of Services

The Board reviewed and considered the nature and extent of the investment advisory services to be 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 to be 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 reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who will 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 to be 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 considered that the Adviser plans to arrange for a public offering of shares of the Fund to raise assets for investment and that the offering had not yet begun and concluded that, since the Fund currently had no assets to invest (other than seed capital required under the Investment Company Act) and had no track record of performance, this was not a factor it needed to address at the present time.

The Board reviewed the advisory and administrative fee rates (the "management fee rates") proposed to be paid by the Fund under the Management Agreement relative to comparable funds advised by the Adviser, when applicable, and compared to their peers as determined by the Adviser, and reviewed the anticipated total expense ratio of the Fund. The Board considered that the Fund requires the Adviser to develop processes, invest in additional resources and incur additional risks to successfully manage the Fund and concluded that the proposed management fee rate and anticipated total expense ratio would be competitive with its peer group averages.

Economies of Scale

The Board considered the growth prospects of the Fund and the structure of the proposed management fee schedule, which includes a breakpoint. The Board considered that the Fund's potential growth was uncertain and concluded that it would be premature to consider economies of scale as a factor in approving the Management Agreement at the present time.

Profitability of the Adviser and Affiliates

Since the Fund had not begun operations and had not paid any fees to the Adviser, the Board concluded that this was not a factor that needed to be considered at the present time.

Other Benefits of the Relationship

The Board considered other direct and indirect benefits to the Adviser and/or its affiliates to be 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. Since the Fund had not begun operations and had not paid any fees to the Adviser, the Board concluded that these benefits were not a factor that needed to be considered at the present time.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

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 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 enter into this relationship with the Adviser.

Other Factors and Current Trends

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 future shareholders to approve the Management Agreement, which will remain in effect for two years and thereafter must be approved annually by the Board of the Fund if it is to continue in effect. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGFRESAN
4877739 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Franchise Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					7
Statements of Changes in Net Assets					8
Financial Highlights					10
Notes to Financial Statements					15
Investment Advisory Agreement Approval					22
Liquidity Risk Management Program					24
U.S. Customer Privacy Notice					25
Director and Officer Information					28

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Global Franchise Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Franchise Portfolio Class I	$	1,000.00	$	816.20	$	1,020.23	$	4.14	$	4.61		0.92	%
Global Franchise Portfolio Class A		1,000.00		815.30		1,019.09		5.18		5.76		1.15
Global Franchise Portfolio Class L		1,000.00		813.10		1,016.56		7.46		8.30		1.66
Global Franchise Portfolio Class C		1,000.00		812.10		1,015.37		8.54		9.49		1.90
Global Franchise Portfolio Class R6⁽¹⁾		1,000.00		816.50		1,020.73		3.69		4.11		0.82

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Global Franchise Portfolio

	Shares		Value (000)
Common Stocks (98.0%)
France (5.6%)
L'Oreal SA		174,238	$	60,496
LVMH Moet Hennessy Louis Vuitton SE		106,226		65,104
Pernod Ricard SA		293,019		54,172
				179,772
Germany (4.6%)
SAP SE		1,599,183		145,766
Italy (0.4%)
Davide Campari-Milano NV		1,242,594		13,109
Netherlands (2.2%)
Heineken NV		770,211		70,106
United Kingdom (10.3%)
Experian PLC		957,146		28,102
Reckitt Benckiser Group PLC		2,968,061		223,235
RELX PLC (Euronext NV)		581,176		15,717
RELX PLC (LSE)		2,218,892		60,246
				327,300
United States (74.9%)
Abbott Laboratories		1,303,365		141,611
Accenture PLC, Class A		555,513		154,238
Automatic Data Processing, Inc.		403,533		84,758
Baxter International, Inc.		1,878,593		120,662
Becton Dickinson & Co.		482,903		119,050
Broadridge Financial Solutions, Inc.		284,973		40,623
Coca-Cola Co.		1,078,703		67,861
Danaher Corp.		683,711		173,335
Equifax, Inc.		289,270		52,873
Estee Lauder Cos., Inc., Class A		180,112		45,869
Fidelity National Information Services, Inc.		789,782		72,399
Intercontinental Exchange, Inc.		1,245,854		117,160
Microsoft Corp.		1,081,307		277,712
Moody's Corp.		120,210		32,694
NIKE, Inc., Class B		413,859		42,296
Otis Worldwide Corp.		671,557		47,459
Philip Morris International, Inc.		2,420,589		239,009
Procter & Gamble Co.		749,665		107,794
Roper Technologies, Inc.		165,504		65,316
Steris PLC		33,930		6,995
Thermo Fisher Scientific, Inc.		281,603		152,989
Visa, Inc., Class A		969,784		190,941
Zoetis, Inc.		217,996		37,471
				2,391,115
Total Common Stocks (Cost $2,571,815)				3,127,168
Short-Term Investment (1.9%)
Investment Company (1.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $60,450)		60,449,964		60,450
Total Investments (99.9%) (Cost $2,632,265) (a)(b)				3,187,618
Other Assets in Excess of Liabilities (0.1%)				3,139
Net Assets (100.0%)			$	3,190,757

(a) The approximate fair value and percentage of net assets, $736,053,000 and 23.1%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(b) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $695,296,000 and the aggregate gross unrealized depreciation is approximately $139,943,000, resulting in net unrealized appreciation of approximately $555,353,000.

Euronext NV Euronext Amsterdam Stock Market.

LSE London Stock Exchange.

Portfolio Composition

Classification	Percentage of Total Investments
Information Technology Services		17.4	%
Software		15.6
Other*		14.4
Health Care Equipment & Supplies		12.4
Household Products		10.6
Life Sciences Tools & Services		10.4
Tobacco		7.6
Beverages		6.6
Professional Services		5.0
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Franchise Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $2,571,815)	$	3,127,168
Investment in Security of Affiliated Issuer, at Value (Cost $60,450)		60,450
Total Investments in Securities, at Value (Cost $2,632,265)		3,187,618
Foreign Currency, at Value (Cost $699)		690
Dividends Receivable		5,384
Receivable for Investments Sold		4,686
Receivable for Fund Shares Sold		1,745
Tax Reclaim Receivable		830
Receivable from Affiliate		39
Other Assets		236
Total Assets		3,201,228
Liabilities:
Payable for Advisory Fees		6,087
Payable for Fund Shares Redeemed		2,535
Payable for Investments Purchased		859
Payable for Sub Transfer Agency Fees — Class I		395
Payable for Sub Transfer Agency Fees — Class A		53
Payable for Sub Transfer Agency Fees — Class L		1
Payable for Sub Transfer Agency Fees — Class C		20
Payable for Administration Fees		214
Payable for Shareholder Services Fees — Class A		70
Payable for Distribution and Shareholder Services Fees — Class L		5
Payable for Distribution and Shareholder Services Fees — Class C		100
Payable for Professional Fees		29
Payable for Custodian Fees		22
Payable for Transfer Agency Fees — Class I		6
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		1
Other Liabilities		72
Total Liabilities		10,471
Net Assets	$	3,190,757
Net Assets Consist of:
Paid-in-Capital	$	2,597,940
Total Distributable Earnings		592,817
Net Assets	$	3,190,757

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Franchise Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	2,201,799
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		72,928,981
Net Asset Value, Offering and Redemption Price Per Share	$	30.19
CLASS A:
Net Assets	$	337,068
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		11,470,116
Net Asset Value, Redemption Price Per Share	$	29.39
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.63
Maximum Offering Price Per Share	$	31.02
CLASS L:
Net Assets	$	7,587
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		259,098
Net Asset Value, Offering and Redemption Price Per Share	$	29.28
CLASS C:
Net Assets	$	118,805
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		4,158,011
Net Asset Value, Offering and Redemption Price Per Share	$	28.57
CLASS R6:*
Net Assets	$	525,498
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		17,389,395
Net Asset Value, Offering and Redemption Price Per Share	$	30.22

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Franchise Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $930 of Foreign Taxes Withheld)	$	31,698
Dividends from Security of Affiliated Issuer (Note G)		84
Total Investment Income		31,782
Expenses:
Advisory Fees (Note B)		12,654
Sub Transfer Agency Fees — Class I		1,219
Sub Transfer Agency Fees — Class A		152
Sub Transfer Agency Fees — Class L		3
Sub Transfer Agency Fees — Class C		51
Administration Fees (Note C)		1,404
Shareholder Services Fees — Class A (Note D)		453
Distribution and Shareholder Services Fees — Class L (Note D)		31
Distribution and Shareholder Services Fees — Class C (Note D)		682
Registration Fees		80
Shareholder Reporting Fees		67
Professional Fees		61
Custodian Fees (Note F)		56
Transfer Agency Fees — Class I (Note E)		14
Transfer Agency Fees — Class A (Note E)		3
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		2
Transfer Agency Fees — Class R6* (Note E)		2
Directors' Fees and Expenses		21
Pricing Fees		1
Other Expenses		31
Total Expenses		16,988
Rebate from Morgan Stanley Affiliate (Note G)		(35	)
Net Expenses		16,953
Net Investment Income		14,829
Realized Gain (Loss):
Investments Sold		59,262
Foreign Currency Translation		(196	)
Net Realized Gain		59,066
Change in Unrealized Appreciation (Depreciation):
Investments		(807,147	)
Foreign Currency Translation		(81	)
Net Change in Unrealized Appreciation (Depreciation)		(807,228	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(748,162	)
Net Decrease in Net Assets Resulting from Operations	$	(733,333	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Franchise Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	14,829		$	24,703
Net Realized Gain		59,066			59,422
Net Change in Unrealized Appreciation (Depreciation)		(807,228	)		589,414
Net Increase (Decrease) in Net Assets Resulting from Operations		(733,333	)		673,539
Dividends and Distributions to Shareholders:
Class I		—			(74,018	)
Class A		—			(9,816	)
Class L		—			(195	)
Class C		—			(3,249	)
Class R6*		—			(13,032	)
Paid-in-Capital:
Class I		—			(1,104	)
Class A		—			(158	)
Class L		—			(4	)
Class C		—			(—	@)
Class R6*		—			(189	)
Total Dividends and Distributions to Shareholders		—			(101,765	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		263,970			666,814
Distributions Reinvested		—			72,622
Redeemed		(340,110	)		(667,086	)
Class A:
Subscribed		59,857			83,141
Distributions Reinvested		—			9,470
Redeemed		(42,872	)		(72,864	)
Class L:
Exchanged		87			16
Distributions Reinvested		—			199
Redeemed		(227	)		(614	)
Class C:
Subscribed		15,009			36,379
Distributions Reinvested		—			3,144
Redeemed		(24,582	)		(30,778	)
Class R6:*
Subscribed		45,732			202,550
Distributions Reinvested		—			13,031
Redeemed		(11,403	)		(51,726	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(34,539	)		264,298
Total Increase (Decrease) in Net Assets		(767,872	)		836,072
Net Assets:
Beginning of Period		3,958,629			3,122,557
End of Period	$	3,190,757		$	3,958,629

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Franchise Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		7,920			19,783
Shares Issued on Distributions Reinvested		—			2,025
Shares Redeemed		(10,424	)		(20,099	)
Net Increase (Decrease) in Class I Shares Outstanding		(2,504	)		1,709
Class A:
Shares Subscribed		1,839			2,530
Shares Issued on Distributions Reinvested		—			271
Shares Redeemed		(1,339	)		(2,268	)
Net Increase in Class A Shares Outstanding		500			533
Class L:
Shares Exchanged		3			1
Shares Issued on Distributions Reinvested		—			6
Shares Redeemed		(7	)		(20	)
Net Decrease in Class L Shares Outstanding		(4	)		(13	)
Class C:
Shares Subscribed		474			1,121
Shares Issued on Distributions Reinvested		—			92
Shares Redeemed		(799	)		(959	)
Net Increase (Decrease) in Class C Shares Outstanding		(325	)		254
Class R6:*
Shares Subscribed		1,381			5,739
Shares Issued on Distributions Reinvested		—			364
Shares Redeemed		(352	)		(1,600	)
Net Increase in Class R6 Shares Outstanding		1,029			4,503

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Franchise Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	36.99		$	31.20		$	28.53		$	23.03		$	24.72		$	20.56
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.14			0.27			0.30			0.30			0.29			0.27
Net Realized and Unrealized Gain (Loss)		(6.94	)		6.54			3.45			6.51			(0.63	)		5.05
Total from Investment Operations		(6.80	)		6.81			3.75			6.81			(0.34	)		5.32
Distributions from and/or in Excess of:
Net Investment Income		—			(0.27	)		(0.28	)		(0.27	)		(0.27	)		(0.24	)
Net Realized Gain		—			(0.74	)		(0.80	)		(1.04	)		(1.08	)		(0.92	)
Paid-in-Capital		—			(0.01	)		—			—			—			—
Total Distributions		—			(1.02	)		(1.08	)		(1.31	)		(1.35	)		(1.16	)
Net Asset Value, End of Period	$	30.19		$	36.99		$	31.20		$	28.53		$	23.03		$	24.72
Total Return⁽²⁾		(18.38	)%⁽⁵⁾		21.92	%		13.22	%		29.60	%		(1.50	)%		25.85	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,201,799		$	2,790,499		$	2,300,448		$	1,593,092		$	918,409		$	753,107
Ratio of Expenses Before Expense Limitation		0.92	%⁽⁶⁾		0.91	%		N/A			N/A			N/A			N/A
Ratio of Expenses After Expense Limitation		0.92	%⁽³⁾⁽⁶⁾		0.91	%⁽³⁾		0.92	%⁽³⁾		0.93	%⁽³⁾		0.94	%⁽³⁾		0.98	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.92	%⁽³⁾		0.93	%⁽³⁾		N/A			N/A
Ratio of Net Investment Income		0.89	%⁽³⁾⁽⁶⁾		0.79	%⁽³⁾		1.04	%⁽³⁾		1.09	%⁽³⁾		1.14	%⁽³⁾		1.17	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁴⁾⁽⁶⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾
Portfolio Turnover Rate		10	%⁽⁵⁾		17	%		19	%		16	%		27	%		28	%

(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) 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."

(4) Amount is less than 0.005%.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Franchise Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	36.05		$	30.44		$	27.86		$	22.53		$	24.21		$	20.16
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.11			0.18			0.22			0.23			0.21			0.22
Net Realized and Unrealized Gain (Loss)		(6.77	)		6.37			3.37			6.35			(0.61	)		4.94
Total from Investment Operations		(6.66	)		6.55			3.59			6.58			(0.40	)		5.16
Distributions from and/or in Excess of:
Net Investment Income		—			(0.19	)		(0.21	)		(0.21	)		(0.20	)		(0.19	)
Net Realized Gain		—			(0.74	)		(0.80	)		(1.04	)		(1.08	)		(0.92	)
Paid-in-Capital		—			(0.01	)		—			—			—			—
Total Distributions		—			(0.94	)		(1.01	)		(1.25	)		(1.28	)		(1.11	)
Net Asset Value, End of Period	$	29.39		$	36.05		$	30.44		$	27.86		$	22.53		$	24.21
Total Return⁽²⁾		(18.47	)%⁽⁵⁾		21.61	%		12.95	%		29.24	%		(1.77	)%		25.58	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	337,068		$	395,450		$	317,673		$	292,491		$	150,936		$	146,722
Ratio of Expenses Before Expense Limitation		1.15	%⁽⁶⁾		1.16	%		N/A			N/A			N/A			N/A
Ratio of Expenses After Expense Limitation		1.15	%⁽³⁾⁽⁶⁾		1.16	%⁽³⁾		1.16	%⁽³⁾		1.19	%⁽³⁾		1.23	%⁽³⁾		1.21	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.16	%⁽³⁾		1.19	%⁽³⁾		N/A			N/A
Ratio of Net Investment Income		0.67	%⁽³⁾⁽⁶⁾		0.54	%⁽³⁾		0.77	%⁽³⁾		0.83	%⁽³⁾		0.84	%⁽³⁾		0.94	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁴⁾⁽⁶⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾
Portfolio Turnover Rate		10	%⁽⁵⁾		17	%		19	%		16	%		27	%		28	%

(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.

(4) Amount is less than 0.005%.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Franchise Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	36.01		$	30.41		$	27.84		$	22.51		$	24.18		$	20.13
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.03			0.01			0.07			0.09			0.09			0.10
Net Realized and Unrealized Gain (Loss)		(6.76	)		6.36			3.36			6.35			(0.62	)		4.93
Total from Investment Operations		(6.73	)		6.37			3.43			6.44			(0.53	)		5.03
Distributions from and/or in Excess of:
Net Investment Income		—			(0.02	)		(0.06	)		(0.07	)		(0.06	)		(0.06	)
Net Realized Gain		—			(0.74	)		(0.80	)		(1.04	)		(1.08	)		(0.92	)
Paid-in-Capital		—			(0.01	)		—			—			—			—
Total Distributions		—			(0.77	)		(0.86	)		(1.11	)		(1.14	)		(0.98	)
Net Asset Value, End of Period	$	29.28		$	36.01		$	30.41		$	27.84		$	22.51		$	24.18
Total Return⁽²⁾		(18.69	)%⁽⁵⁾		21.02	%		12.38	%		28.62	%		(2.29	)%		24.98	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	7,587		$	9,473		$	8,390		$	8,388		$	7,312		$	7,993
Ratio of Expenses Before Expense Limitation		1.66	%⁽⁶⁾		1.66	%		N/A			N/A			N/A			N/A
Ratio of Expenses After Expense Limitation		1.66	%⁽³⁾⁽⁶⁾		1.66	%⁽³⁾		1.66	%⁽³⁾		1.69	%⁽³⁾		1.73	%⁽³⁾		1.70	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.66	%⁽³⁾		1.69	%⁽³⁾		N/A			N/A
Ratio of Net Investment Income		0.15	%⁽³⁾⁽⁶⁾		0.05	%⁽³⁾		0.26	%⁽³⁾		0.31	%⁽³⁾		0.36	%⁽³⁾		0.44	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁴⁾⁽⁶⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾
Portfolio Turnover Rate		10	%⁽⁵⁾		17	%		19	%		16	%		27	%		28	%

(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.

(4) Amount is less than 0.005%.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Franchise Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	35.18		$	29.77		$	27.30		$	22.13		$	23.82		$	19.88
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		(0.02	)		(0.06	)		0.01			0.02			0.03			0.04
Net Realized and Unrealized Gain (Loss)		(6.59	)		6.21			3.27			6.23			(0.60	)		4.86
Total from Investment Operations		(6.61	)		6.15			3.28			6.25			(0.57	)		4.90
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		(0.04	)		(0.04	)		(0.04	)
Net Realized Gain		—			(0.74	)		(0.80	)		(1.04	)		(1.08	)		(0.92	)
Paid-in-Capital		—			(0.00	)⁽²⁾		—			—			—			—
Total Distributions		—			(0.74	)		(0.81	)		(1.08	)		(1.12	)		(0.96	)
Net Asset Value, End of Period	$	28.57		$	35.18		$	29.77		$	27.30		$	22.13		$	23.82
Total Return⁽³⁾		(18.79	)%⁽⁶⁾		20.74	%		12.09	%		28.27	%		(2.51	)%		24.63	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	118,805		$	157,721		$	125,919		$	99,141		$	55,271		$	47,726
Ratio of Expenses Before Expense Limitation		1.90	%⁽⁷⁾		1.90	%		N/A			N/A			N/A			N/A
Ratio of Expenses After Expense Limitation		1.90	%⁽⁴⁾⁽⁷⁾		1.90	%⁽⁴⁾		1.91	%⁽⁴⁾		1.95	%⁽⁴⁾		1.96	%⁽⁴⁾		1.98	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.91	%⁽⁴⁾		1.95	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		(0.10	)%⁽⁴⁾⁽⁷⁾		(0.20	)%⁽⁴⁾		0.03	%⁽⁴⁾		0.07	%⁽⁴⁾		0.12	%⁽⁴⁾		0.16	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		10	%⁽⁶⁾		17	%		19	%		16	%		27	%		28	%

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

(2) Amount is less than $0.005.

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Franchise Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	37.01		$	31.21		$	28.53		$	23.03		$	24.72		$	20.55
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.17			0.31			0.33			0.32			0.32			0.29
Net Realized and Unrealized Gain (Loss)		(6.96	)		6.54			3.45			6.51			(0.65	)		5.05
Total from Investment Operations		(6.79	)		6.85			3.78			6.83			(0.33	)		5.34
Distributions from and/or in Excess of:
Net Investment Income		—			(0.30	)		(0.30	)		(0.29	)		(0.28	)		(0.25	)
Net Realized Gain		—			(0.74	)		(0.80	)		(1.04	)		(1.08	)		(0.92	)
Paid-in-Capital		—			(0.01	)		—			—			—			—
Total Distributions		—			(1.05	)		(1.10	)		(1.33	)		(1.36	)		(1.17	)
Net Asset Value, End of Period	$	30.22		$	37.01		$	31.21		$	28.53		$	23.03		$	24.72
Total Return⁽³⁾		(18.35	)%⁽⁶⁾		22.05	%		13.33	%		29.67	%		(1.45	)%		26.00	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	525,498		$	605,486		$	370,127		$	137,283		$	204,031		$	90,488
Ratio of Expenses Before Expense Limitation		0.82	%⁽⁷⁾		0.82	%		N/A			N/A			N/A			N/A
Ratio of Expenses After Expense Limitation		0.82	%⁽⁴⁾⁽⁷⁾		0.82	%⁽⁴⁾		0.83	%⁽⁴⁾		0.86	%⁽⁴⁾		0.88	%⁽⁴⁾		0.91	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.83	%⁽⁴⁾		0.86	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income		1.02	%⁽⁴⁾⁽⁷⁾		0.90	%⁽⁴⁾		1.14	%⁽⁴⁾		1.21	%⁽⁴⁾		1.30	%⁽⁴⁾		1.23	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		10	%⁽⁶⁾		17	%		19	%		16	%		27	%		28	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Franchise Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class R6. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser or the Sub-Adviser determines

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards

Codification^TM ("ASC") 820, "Fair Value Measurement" ("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Beverages	$	67,861	$	137,387	$	—	$	205,248
Capital Markets		149,854		—		—		149,854
Health Care Equipment & Supplies		388,318		—		—		388,318
Household Products		107,794		223,235		—		331,029
Information Technology Services		542,959		—		—		542,959
Life Sciences Tools & Services		326,324		—		—		326,324
Machinery		47,459		—		—		47,459
Personal Products		45,869		60,496		—		106,365
Pharmaceuticals		37,471		—		—		37,471
Professional Services		52,873		104,065		—		156,938
Software		343,028		145,766		—		488,794
Textiles, Apparel & Luxury Goods		42,296		65,104		—		107,400
Tobacco		239,009		—		—		239,009
Total Common Stocks		2,391,115		736,053		—		3,127,168
Short-Term Investment
Investment Company		60,450		—		—		60,450
Total Assets	$	2,451,565	$	736,053	$	—	$	3,187,618

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.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

6. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $500 million				Next $500 million				Over $1 billion
0.80%				0.75%				0.70%

For the six months ended June 30, 2022, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.72% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses,

excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares and 0.95% 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 Directors 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 six months ended June 30, 2022.

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 Directors. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $345,977,000 and $363,411,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $35,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	65,018			$	228,925			$	233,493			$	84

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	60,450

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

2021 Distributions Paid From:						2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Paid-in- Capital (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	24,896	$	75,414	$	1,455	$	25,074	$	76,412

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2021.

At December 31, 2021, the Fund had no distributable earning on a tax basis.

December 31, 2021, the Fund intends to defer to January 1, 2022 for U.S. federal income tax purposes the following losses:

Qualified Late Year Ordinary Losses (000)				Post- October Capital Losses (000)
$67				$13,400

L. Results of Special Meeting of Shareholders: On February 25, 2022, a special meeting of the Fund's shareholders

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

was held for the purpose of voting on the following matter, the results of which were as follows:

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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. The Board noted that the Fund's management fee was higher than but close to its peer group average and total expense ratio was 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management Limited
25 Cabot Square, Canary Wharf
London, E14 4QA, England

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGFSAN
4877748 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Infrastructure Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					8
Statements of Changes in Net Assets					9
Financial Highlights					11
Notes to Financial Statements					17
Investment Advisory Agreement Approval					24
Liquidity Risk Management Program					26
U.S. Customer Privacy Notice					27
Director and Officer Information					30

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Global Infrastructure Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Infrastructure Portfolio Class I	$	1,000.00	$	937.10	$	1,019.98	$	4.66	$	4.86		0.97	%
Global Infrastructure Portfolio Class A		1,000.00		936.30		1,018.79		5.81		6.06		1.21
Global Infrastructure Portfolio Class L		1,000.00		932.80		1,015.97		8.53		8.90		1.78
Global Infrastructure Portfolio Class C		1,000.00		931.50		1,014.58		9.87		10.29		2.06
Global Infrastructure Portfolio Class R6⁽¹⁾		1,000.00		937.40		1,020.13		4.52		4.71		0.94
Global Infrastructure Portfolio Class IR		1,000.00		937.00		1,020.13		4.51		4.71		0.94

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Global Infrastructure Portfolio

	Shares		Value (000)
Common Stocks (96.9%)
Australia (2.5%)
Atlas Arteria Ltd. (Units) (a)		294,810	$	1,642
Transurban Group (Units) (a)		579,908		5,770
				7,412
Canada (17.4%)
Canadian Pacific Railway Ltd.		17,391		1,215
Enbridge, Inc.		271,567		11,468
GFL Environmental, Inc. (b)		495,070		12,773
Gibson Energy, Inc.		361,863		6,702
Pembina Pipeline Corp.		220,294		7,787
TC Energy Corp.		230,323		11,931
				51,876
China (9.5%)
China Gas Holdings Ltd. (c)		18,177,600		28,141
France (5.1%)
Aeroports de Paris (d)		3,161		403
Getlink SE		220,184		3,905
Vinci SA		122,314		10,979
				15,287
Germany (0.2%)
Fraport AG Frankfurt Airport Services Worldwide (d)		14,533		636
Hong Kong (0.9%)
Power Assets Holdings Ltd.		431,571		2,719
Italy (6.9%)
Atlantia SpA		200,568		4,708
Infrastrutture Wireless Italiane SpA		1,162,704		11,821
Terna — Rete Elettrica Nazionale		527,988		4,151
				20,680
Mexico (2.1%)
Grupo Aeroportuario del Pacifico SAB de CV, Class B		229,540		3,209
Grupo Aeroportuario del Sureste SAB de CV, Class B		153,666		3,020
				6,229
New Zealand (0.4%)
Auckland International Airport Ltd. (d)		285,502		1,279
Portugal (0.4%)
EDP Renovaveis SA		56,609		1,337
Spain (4.8%)
Aena SME SA (d)		16,665		2,126
Cellnex Telecom SA		120,941		4,707
Ferrovial SA		132,096		3,361
Iberdrola SA		379,498		3,951
				14,145
Switzerland (0.4%)
Flughafen Zurich AG (Registered) (d)		6,992		1,060
United Kingdom (6.0%)
National Grid PLC		860,991		11,065
Pennon Group PLC		309,355		3,600
Severn Trent PLC		96,215		3,194
				17,859

	Shares		Value (000)
United States (40.3%)
Ameren Corp.		34,659	$	3,132
American Electric Power Co. Inc.		66,939		6,422
American Tower Corp. REIT		100,569		25,704
American Water Works Co. Inc.		28,254		4,203
Atmos Energy Corp.		40,998		4,596
CenterPoint Energy, Inc.		144,847		4,285
Cheniere Energy, Inc.		35,946		4,782
Crown Castle International Corp. REIT		81,516		13,726
Edison International		80,044		5,062
Entergy Corp.		34,463		3,882
Eversource Energy		60,201		5,085
NiSource, Inc.		139,095		4,102
ONEOK, Inc.		34,483		1,914
PG&E Corp. (d)		201,313		2,009
SBA Communications Corp. REIT		20,155		6,451
Sempra Energy		78,462		11,790
Targa Resources Corp.		66,080		3,943
Waste Connections, Inc.		6,926		858
Williams Cos., Inc. (The)		193,680		6,045
Xcel Energy, Inc.		26,175		1,852
				119,843
Total Common Stocks (Cost $268,766)				288,503
Short-Term Investments (3.6%)
Securities held as Collateral on Loaned Securities (0.2%)
Investment Company (0.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note H)		462,503		463
	Face Amount (000)
Repurchase Agreements (0.0%) (e)
HSBC Securities USA, Inc., (1.50%, dated 6/30/22, due 7/1/22; proceeds $36; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 2/15/23 - 5/15/32; valued at $37)	$	36		36
Merrill Lynch & Co., Inc., (1.46%, dated 6/30/22, due 7/1/22; proceeds $70; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $71)		70		70
				106
Total Securities held as Collateral on Loaned Securities (Cost $569)				569

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments (cont'd)

Global Infrastructure Portfolio

	Shares		Value (000)
Investment Company (3.4%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note H) (Cost $10,013)		10,012,996	$	10,013
Total Short-Term Investments (Cost $10,582)				10,582
Total Investments (100.5%) (Cost $279,348) Including $573 of Securities Loaned (f)(g)				299,085
Liabilities in Excess of Other Assets (–0.5%)				(1,414	)
Net Assets (100.0%)			$	297,671

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

(b) All or a portion of this security was on loan at June 30, 2022.

(d) Non-income producing security.

(e) Amount is less than 0.05%.

(f) The approximate fair value and percentage of net assets, $110,555,000 and 37.1%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(g) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for the book purposes. The aggregate gross unrealized appreciation is approximately $36,878,000 and the aggregate gross unrealized depreciation is approximately $17,141,000, resulting in net unrealized appreciation of approximately $19,737,000.

REIT Real Estate Investment Trust.

Portfolio Composition*

Classification	Percentage of Total Investments
Oil & Gas Storage & Transportation		34.6	%
Communications		20.9
Others**		18.7
Electricity Transmission & Distribution		14.2
Diversified		6.2
Toll Roads		5.4
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

** 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, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Infrastructure Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $268,872)	$	288,609
Investment in Security of Affiliated Issuer, at Value (Cost $10,476)		10,476
Total Investments in Securities, at Value (Cost $279,348)		299,085
Foreign Currency, at Value (Cost $382)		383
Cash from Securities Lending		30
Dividends Receivable		897
Receivable for Investments Sold		153
Receivable for Fund Shares Sold		70
Tax Reclaim Receivable		40
Receivable from Affiliate		11
Receivable from Securities Lending Income		—	@
Other Assets		99
Total Assets		300,768
Liabilities:
Payable for Investments Purchased		1,219
Collateral on Securities Loaned, at Value		599
Payable for Fund Shares Redeemed		527
Payable for Advisory Fees		507
Payable for Sub Transfer Agency Fees — Class I		16
Payable for Sub Transfer Agency Fees — Class A		34
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		1
Payable for Shareholder Services Fees — Class A		41
Payable for Distribution and Shareholder Services Fees — Class L		2
Payable for Distribution and Shareholder Services Fees — Class C		4
Payable for Directors' Fees and Expenses		38
Payable for Professional Fees		34
Payable for Custodian Fees		21
Payable for Administration Fees		20
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		11
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class R6*		—	@
Payable for Transfer Agency Fees — Class IR		—	@
Other Liabilities		21
Total Liabilities		3,097
Net Assets	$	297,671
Net Assets Consist of:
Paid-in-Capital	$	245,154
Total Distributable Earnings		52,517
Net Assets	$	297,671

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Infrastructure Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	93,726
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		6,554,253
Net Asset Value, Offering and Redemption Price Per Share	$	14.30
CLASS A:
Net Assets	$	195,888
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		13,750,742
Net Asset Value, Redemption Price Per Share	$	14.25
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.79
Maximum Offering Price Per Share	$	15.04
CLASS L:
Net Assets	$	2,981
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		210,452
Net Asset Value, Offering and Redemption Price Per Share	$	14.16
CLASS C:
Net Assets	$	5,052
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		363,872
Net Asset Value, Offering and Redemption Price Per Share	$	13.88
CLASS R6:*
Net Assets	$	12
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		852
Net Asset Value, Offering and Redemption Price Per Share	$	14.23
CLASS IR:
Net Assets	$	12
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		829
Net Asset Value, Offering and Redemption Price Per Share	$	14.29
⁽¹⁾ Including: Securities on Loan, at Value:	$	573

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Infrastructure Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $337 of Foreign Taxes Withheld)	$	4,716
Dividends from Security of Affiliated Issuer (Note G)		15
Income from Securities Loaned — Net		10
Total Investment Income		4,741
Expenses:
Advisory Fees (Note B)		1,309
Shareholder Services Fees — Class A (Note D)		259
Distribution and Shareholder Services Fees — Class L (Note D)		12
Distribution and Shareholder Services Fees — Class C (Note D)		22
Sub Transfer Agency Fees — Class I		55
Sub Transfer Agency Fees — Class A		77
Sub Transfer Agency Fees — Class L		1
Sub Transfer Agency Fees — Class C		1
Administration Fees (Note C)		123
Professional Fees		59
Custodian Fees (Note F)		42
Registration Fees		36
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		22
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Transfer Agency Fees — Class IR (Note E)		1
Shareholder Reporting Fees		22
Directors' Fees and Expenses		5
Pricing Fees		2
Other Expenses		8
Total Expenses		2,061
Waiver of Advisory Fees (Note B)		(158	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(43	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(78	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(4	)
Net Expenses		1,775
Net Investment Income		2,966
Realized Gain:
Investments Sold		25,710
Foreign Currency Translation		11
Net Realized Gain		25,721
Change in Unrealized Appreciation (Depreciation):
Investments		(49,723	)
Foreign Currency Translation		(20	)
Net Change in Unrealized Appreciation (Depreciation)		(49,743	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(24,022	)
Net Decrease in Net Assets Resulting from Operations	$	(21,056	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Infrastructure Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	2,966		$	5,400
Net Realized Gain		25,721			23,926
Net Change in Unrealized Appreciation (Depreciation)		(49,743	)		9,355
Net Increase (Decrease) in Net Assets Resulting from Operations		(21,056	)		38,681
Dividends and Distributions to Shareholders:
Class I		—			(6,839	)
Class A		—			(16,402	)
Class L		—			(222	)
Class C		—			(291	)
Class R6*		—			(1	)
Class IR		—			(1	)
Total Dividends and Distributions to Shareholders		—			(23,756	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		33,634			45,076
Distributions Reinvested		—			6,838
Redeemed		(24,611	)		(31,226	)
Class A:
Subscribed		2,331			13,114
Distributions Reinvested		—			15,967
Redeemed		(16,623	)		(30,394	)
Class L:
Exchanged		49			90
Distributions Reinvested		—			216
Redeemed		(126	)		(374	)
Class C:
Subscribed		1,946			1,605
Distributions Reinvested		—			290
Redeemed		(755	)		(602	)
Class R6:*
Distributions Reinvested		—			1
Class IR:
Distributions Reinvested		—			1
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(4,155	)		20,602
Total Increase (Decrease) in Net Assets		(25,211	)		35,527
Net Assets:
Beginning of Period		322,882			287,355
End of Period	$	297,671		$	322,882

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Infrastructure Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		2,288			2,882
Shares Issued on Distributions Reinvested		—			465
Shares Redeemed		(1,700	)		(2,096	)
Net Increase in Class I Shares Outstanding		588			1,251
Class A:
Shares Subscribed		156			862
Shares Issued on Distributions Reinvested		—			1,089
Shares Redeemed		(1,144	)		(1,974	)
Net Decrease in Class A Shares Outstanding		(988	)		(23	)
Class L:
Shares Exchanged		4			6
Shares Issued on Distributions Reinvested		—			15
Shares Redeemed		(9	)		(25	)
Net Decrease in Class L Shares Outstanding		(5	)		(4	)
Class C:
Shares Subscribed		134			107
Shares Issued on Distributions Reinvested		—			20
Shares Redeemed		(53	)		(40	)
Net Increase in Class C Shares Outstanding		81			87
Class R6:*
Shares Issued on Distributions Reinvested		—			—	@@
Class IR:
Shares Issued on Distributions Reinvested		—			—	@@

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Infrastructure Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	15.26		$	14.47		$	15.37		$	12.39		$	14.64		$	14.02
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.16			0.30			0.13			0.35			0.31			0.44
Net Realized and Unrealized Gain (Loss)		(1.12	)		1.72			(0.36	)		3.11			(1.45	)		1.33
Total from Investment Operations		(0.96	)		2.02			(0.23	)		3.46			(1.14	)		1.77
Distributions from and/or in Excess of:
Net Investment Income		—			(0.35	)		(0.40	)		(0.36	)		(0.37	)		(0.42	)
Net Realized Gain		—			(0.88	)		(0.27	)		(0.12	)		(0.74	)		(0.73	)
Total Distributions		—			(1.23	)		(0.67	)		(0.48	)		(1.11	)		(1.15	)
Net Asset Value, End of Period	$	14.30		$	15.26		$	14.47		$	15.37		$	12.39		$	14.64
Total Return⁽²⁾		(6.29	)%⁽⁶⁾		14.14	%		(1.45	)%		27.94	%		(8.02	)%		12.70	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	93,726		$	91,045		$	68,255		$	89,371		$	65,311		$	95,219
Ratio of Expenses Before Expense Limitation		1.16	%⁽⁷⁾		1.18	%		1.18	%		1.16	%		1.16	%		1.08	%
Ratio of Expenses After Expense Limitation		0.97	%⁽³⁾⁽⁷⁾		0.97	%⁽³⁾		0.97	%⁽³⁾		0.97	%⁽³⁾		0.97	%⁽³⁾		0.91	%⁽³⁾⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.97	%⁽³⁾		0.97	%⁽³⁾		N/A			N/A
Ratio of Net Investment Income		2.13	%⁽³⁾⁽⁷⁾		1.95	%⁽³⁾		0.94	%⁽³⁾		2.40	%⁽³⁾		2.21	%⁽³⁾		2.93	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%
Portfolio Turnover Rate		39	%⁽⁶⁾		61	%		62	%		30	%		43	%		45	%

(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.

(4) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.97% for Class I shares. Prior to July 1, 2017, the maximum ratio was 0.87% for Class I shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Infrastructure Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	15.22		$	14.44		$	15.33		$	12.36		$	14.60		$	13.99
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.14			0.27			0.11			0.31			0.28			0.39
Net Realized and Unrealized Gain (Loss)		(1.11	)		1.70			(0.37	)		3.10			(1.45	)		1.33
Total from Investment Operations		(0.97	)		1.97			(0.26	)		3.41			(1.17	)		1.72
Distributions from and/or in Excess of:
Net Investment Income		—			(0.31	)		(0.36	)		(0.32	)		(0.33	)		(0.38	)
Net Realized Gain		—			(0.88	)		(0.27	)		(0.12	)		(0.74	)		(0.73	)
Total Distributions		—			(1.19	)		(0.63	)		(0.44	)		(1.07	)		(1.11	)
Net Asset Value, End of Period	$	14.25		$	15.22		$	14.44		$	15.33		$	12.36		$	14.60
Total Return⁽²⁾		(6.37	)%⁽⁶⁾		13.89	%		(1.69	)%		27.62	%		(8.22	)%		12.37	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	195,888		$	224,318		$	213,128		$	240,350		$	212,919		$	278,780
Ratio of Expenses Before Expense Limitation		1.39	%⁽⁷⁾		1.39	%		1.38	%		1.37	%		1.37	%		1.38	%
Ratio of Expenses After Expense Limitation		1.21	%⁽³⁾⁽⁷⁾		1.21	%⁽³⁾		1.21	%⁽³⁾		1.21	%⁽³⁾		1.21	%⁽³⁾		1.15	%⁽³⁾⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.21	%⁽³⁾		1.21	%⁽³⁾		N/A			N/A
Ratio of Net Investment Income		1.86	%⁽³⁾⁽⁷⁾		1.74	%⁽³⁾		0.74	%⁽³⁾		2.16	%⁽³⁾		2.00	%⁽³⁾		2.63	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%
Portfolio Turnover Rate		39	%⁽⁶⁾		61	%		62	%		30	%		43	%		45	%

(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.

(4) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.21% for Class A shares. Prior to July 1, 2017, the maximum ratio was 1.11% for Class A shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Infrastructure Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	15.18		$	14.40		$	15.29		$	12.33		$	14.55		$	13.94
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.10			0.18			0.02			0.23			0.20			0.31
Net Realized and Unrealized Gain (Loss)		(1.12	)		1.69			(0.36	)		3.08			(1.44	)		1.33
Total from Investment Operations		(1.02	)		1.87			(0.34	)		3.31			(1.24	)		1.64
Distributions from and/or in Excess of:
Net Investment Income		—			(0.21	)		(0.28	)		(0.23	)		(0.24	)		(0.30	)
Net Realized Gain		—			(0.88	)		(0.27	)		(0.12	)		(0.74	)		(0.73	)
Total Distributions		—			(1.09	)		(0.55	)		(0.35	)		(0.98	)		(1.03	)
Net Asset Value, End of Period	$	14.16		$	15.18		$	14.40		$	15.29		$	12.33		$	14.55
Total Return⁽²⁾		(6.72	)%⁽⁶⁾		13.28	%		(2.27	)%		26.87	%		(8.73	)%		11.80	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,981		$	3,275		$	3,163		$	3,718		$	3,805		$	5,634
Ratio of Expenses Before Expense Limitation		1.92	%⁽⁷⁾		1.98	%		1.94	%		1.93	%		1.87	%		1.95	%
Ratio of Expenses After Expense Limitation		1.78	%⁽³⁾⁽⁷⁾		1.78	%⁽³⁾		1.78	%⁽³⁾		1.78	%⁽³⁾		1.78	%⁽³⁾		1.72	%⁽³⁾⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.78	%⁽³⁾		1.78	%⁽³⁾		N/A			N/A
Ratio of Net Investment Income		1.31	%⁽³⁾⁽⁷⁾		1.17	%⁽³⁾		0.17	%⁽³⁾		1.58	%⁽³⁾		1.41	%⁽³⁾		2.06	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%
Portfolio Turnover Rate		39	%⁽⁶⁾		61	%		62	%		30	%		43	%		45	%

(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.

(4) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.78% for Class L shares. Prior to July 1, 2017, the maximum ratio was 1.68% for Class L shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Infrastructure Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	14.90		$	14.18		$	15.08		$	12.17		$	14.36		$	13.81
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.08			0.14			(0.02	)		0.18			0.16			0.29
Net Realized and Unrealized Gain (Loss)		(1.10	)		1.66			(0.36	)		3.05			(1.42	)		1.28
Total from Investment Operations		(1.02	)		1.80			(0.38	)		3.23			(1.26	)		1.57
Distributions from and/or in Excess of:
Net Investment Income		—			(0.20	)		(0.25	)		(0.20	)		(0.19	)		(0.29	)
Net Realized Gain		—			(0.88	)		(0.27	)		(0.12	)		(0.74	)		(0.73	)
Total Distributions		—			(1.08	)		(0.52	)		(0.32	)		(0.93	)		(1.02	)
Net Asset Value, End of Period	$	13.88		$	14.90		$	14.18		$	15.08		$	12.17		$	14.36
Total Return⁽²⁾		(6.85	)%⁽⁶⁾		12.93	%		(2.53	)%		26.55	%		(9.02	)%		11.42	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	5,052		$	4,218		$	2,787		$	2,901		$	2,580		$	3,601
Ratio of Expenses Before Expense Limitation		2.16	%⁽⁷⁾		2.19	%		2.22	%		2.20	%		2.20	%		2.23	%
Ratio of Expenses After Expense Limitation		2.06	%⁽³⁾⁽⁷⁾		2.07	%⁽³⁾		2.07	%⁽³⁾		2.07	%⁽³⁾		2.07	%⁽³⁾		2.02	%⁽³⁾⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			2.07	%⁽³⁾		2.07	%⁽³⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		1.10	%⁽³⁾⁽⁷⁾		0.92	%⁽³⁾		(0.12	)%⁽³⁾		1.30	%⁽³⁾		1.14	%⁽³⁾		1.96	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.01	%
Portfolio Turnover Rate		39	%⁽⁶⁾		61	%		62	%		30	%		43	%		45	%

(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) 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."

(4) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.07% for Class C shares. Prior to July 1, 2017, the maximum ratio was 1.97% for Class C shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Infrastructure Portfolio

		Class R6⁽¹⁾
		Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios		(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	��	$	15.18		$	14.40		$	15.29		$	12.38		$	14.63		$	14.02
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾			0.16			0.34			0.15			0.38			0.32			0.45
Net Realized and Unrealized Gain (Loss)			(1.11	)		1.67			(0.37	)		3.01			(1.46	)		1.32
Total from Investment Operations			(0.95	)		2.01			(0.22	)		3.39			(1.14	)		1.77
Distributions from and/or in Excess of:
Net Investment Income			—			(0.35	)		(0.40	)		(0.36	)		(0.37	)		(0.43	)
Net Realized Gain			—			(0.88	)		(0.27	)		(0.12	)		(0.74	)		(0.73	)
Total Distributions			—			(1.23	)		(0.67	)		(0.48	)		(1.11	)		(1.16	)
Net Asset Value, End of Period		$	14.23		$	15.18		$	14.40		$	15.29		$	12.38		$	14.63
Total Return⁽³⁾			(6.26	)%⁽⁷⁾		14.17	%		(1.37	)%		27.31	%		(7.92	)%		12.65	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)		$	12		$	13		$	11		$	11		$	24,462		$	9,516
Ratio of Expenses Before Expense Limitation			15.92	%⁽⁸⁾		20.38	%		20.65	%		1.05	%		1.05	%		1.06	%
Ratio of Expenses After Expense Limitation			0.94	%⁽⁴⁾⁽⁸⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.89	%⁽⁴⁾⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses			N/A			N/A			0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income			2.15	%⁽⁴⁾⁽⁸⁾		2.20	%⁽⁴⁾		1.03	%⁽⁴⁾		2.71	%⁽⁴⁾		2.26	%⁽⁴⁾		2.95	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates			0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%
Portfolio Turnover Rate			39	%⁽⁷⁾		61	%		62	%		30	%		43	%		45	%

(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.

(5) Effective July 1, 2017, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.94% for Class R6 shares. Prior to July 1, 2017, the maximum ratio was 0.84% for Class R6 shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Infrastructure Portfolio

	Class IR
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 15, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	15.25		$	14.47		$	15.36		$	12.38		$	14.10
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.16			0.34			0.15			0.35			0.20
Net Realized and Unrealized Gain (Loss)		(1.12	)		1.67			(0.37	)		3.11			(0.81	)
Total from Investment Operations		(0.96	)		2.01			(0.22	)		3.46			(0.61	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.35	)		(0.40	)		(0.36	)		(0.37	)
Net Realized Gain		—			(0.88	)		(0.27	)		(0.12	)		(0.74	)
Total Distributions		—			(1.23	)		(0.67	)		(0.48	)		(1.11	)
Net Asset Value, End of Period	$	14.29		$	15.25		$	14.47		$	15.36		$	12.38
Total Return⁽³⁾		(6.30	)%⁽⁶⁾		14.18	%		(1.43	)%		27.99	%		(4.54	)%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	12		$	13		$	11		$	11		$	9
Ratio of Expenses Before Expense Limitation		16.16	%⁽⁷⁾		17.82	%		19.68	%		19.62	%		18.47	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		0.94	%⁽⁴⁾⁽⁷⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾⁽⁷⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		N/A
Ratio of Net Investment Income		2.15	%⁽⁴⁾⁽⁷⁾		2.20	%⁽⁴⁾		1.03	%⁽⁴⁾		2.65	%⁽⁴⁾		2.67	%⁽⁴⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾⁽⁷⁾
Portfolio Turnover Rate		39	%⁽⁶⁾		61	%		62	%		30	%		43	%

(1) Commencement of Offering.

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Infrastructure Portfolio. The Fund seeks to provide both capital appreciation and income.

closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Airports	$	6,229	$	5,504		$	—	$	11,733
Commercial Services & Supplies		13,631		—			—		13,631
Communications		45,881		16,528			—		62,409
Diversified		4,285		14,340			—		18,625
Electricity Transmission & Distribution		20,430		21,886			—		42,316
Oil & Gas Storage & Transportation		75,060		28,141			—		103,201
Railroads		1,215		—	��		—		1,215
Renewables		—		1,337			—		1,337
Toll Roads		—		16,025			—		16,025
Utilities		7,014		—			—		7,014
Water		4,203		6,794			—		10,997
Total Common Stocks		177,948		110,555			—		288,503

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Short-Term Investments
Investment Company	$	10,476	$	—	$	—	$	10,476
Repurchase Agreements		—		106		—		106
Total Short-Term Investments		10,476		106		—		10,582
Total Assets	$	188,424	$	110,661	$	—	$	299,085

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

5. 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.

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 June 30, 2022:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	573	(a)	$	—	$	(573	)(b)(c)	$	0

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

(b) The Fund received cash collateral of approximately $599,000, of which approximately $569,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $30,000, which is not reflected in the Portfolio of Investments.

FASB ASC 860, "Transfers & Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures", is intended to provide increased transparency about the types of collateral pledged in securities lending transactions and other similar transactions that are accounted for as secured borrowing.

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining contractual maturity of those transactions as of June 30, 2022:

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 Stock	$	599	$	—	$	—	$	—	$	599
Total Borrowings	$	599	$	—	$	—	$	—	$	599
Gross amount of recognized liabilities for securities lending transactions									$	599

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.85% of the average daily net assets of the Fund.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.97% for Class I shares, 1.21% for Class A shares, 1.78% for Class L shares, 2.07% for Class C shares, 0.94% for Class R6 shares and 0.94% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $158,000 of advisory fees were waived and approximately $124,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

maintenance fees, plus reimbursement for certain out-of-pocket expenses.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $117,698,000 and $123,624,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $4,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	4,985			$	71,115			$	65,624			$	15

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	10,476

The Fund has an unfunded noncontributory defined benefit pension plan covering certain independent Directors of the Fund who will have served as independent Directors 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 Directors 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 six months ended June 30, 2022, included in "Directors' Fees and Expenses" in the Statement of Operations amounted to approximately $1,000. At June 30, 2022, the Fund had an accrued pension liability of approximately $38,000, which is reflected as "Payable for Directors' Fees and Expenses" in the Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	9,154	$	14,602	$	7,160	$	5,179

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2021.

At December 31, 2021, 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)
$	3,284			$	8,120

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 below its peer group averages 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. The Board noted that the Fund's contractual management fee was lower than its peer group average and actual management fee and total expense ratio were higher than but close to 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFISGISAN
4877758 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Insight Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					16
Investment Advisory Agreement Approval					28
Liquidity Risk Management Program					30
U.S. Customer Privacy Notice					31
Director and Officer Information					34

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Global Insight Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Insight Portfolio Class I	$	1,000.00	$	448.70	$	1,019.84	$	3.59	$	5.01		1.00	%
Global Insight Portfolio Class A		1,000.00		448.10		1,018.25		4.74		6.61		1.32
Global Insight Portfolio Class L		1,000.00		446.50		1,015.62		6.64		9.25		1.85
Global Insight Portfolio Class C		1,000.00		446.10		1,014.38		7.53		10.49		2.10
Global Insight Portfolio Class R6⁽¹⁾		1,000.00		448.60		1,020.08		3.41		4.76		0.95

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Global Insight Portfolio

	Shares		Value (000)
Common Stocks (97.9%)
Australia (0.3%)
Redbubble Ltd. (a)		497,686	$	309
Belgium (1.1%)
Argenx SE ADR (a)		3,170		1,201
Brazil (1.0%)
NU Holdings Ltd., Class A (a)		279,503		1,045
Canada (4.6%)
Shopify, Inc., Class A (a)		152,160		4,753
Netherlands (11.4%)
Adyen NV (a)		4,306		6,214
ASML Holding NV		11,758		5,596
				11,810
Singapore (9.1%)
Grab Holdings Ltd., Class A (a)		1,953,179		4,942
Sea Ltd. ADR (a)		67,163		4,490
				9,432
Sweden (1.5%)
Kinnevik AB, Class B (a)		93,821		1,519
United Kingdom (4.1%)
Atlassian Corp., PLC, Class A (a)		14,704		2,756
Deliveroo PLC (a)		1,399,357		1,549
				4,305
United States (64.8%)
10X Genomics, Inc., Class A (a)		32,334		1,463
Agilon health, Inc. (a)		199,241		4,349
Bill.Com Holdings, Inc. (a)		27,848		3,062
Cloudflare, Inc., Class A (a)		117,955		5,161
Coinbase Global, Inc., Class A (a)		13,725		645
Coupang, Inc. (a)		457,403		5,832
Datadog, Inc., Class A (a)		39,421		3,754
Dlocal Ltd. (a)		140,478		3,688
Doximity, Inc., Class A (a)		80,173		2,792
Farfetch Ltd., Class A (a)		263,191		1,884
Ginkgo Bioworks Holdings, Inc. (a)		165,839		395
GoodRx Holdings, Inc., Class A (a)		47,648		282
Guardant Health, Inc. (a)		19,950		805
Heliogen, Inc. (a)		182,063		384

	Shares		Value (000)
Intellia Therapeutics, Inc. (a)		9,089	$	470
Meli Kaszek Pioneer Corp., SPAC (a)		100,860		999
MercadoLibre, Inc. (a)		8,456		5,385
ROBLOX Corp., Class A (a)		96,474		3,170
Royalty Pharma PLC, Class A		213,684		8,983
Snowflake, Inc., Class A (a)		42,758		5,946
Trade Desk, Inc., Class A (a)		106,576		4,465
Unity Software, Inc. (a)		39,672		1,461
Veeva Systems, Inc., Class A (a)		8,200		1,624
				66,999
Total Common Stocks (Cost $178,759)				101,373
Preferred Stock (0.0%) (b)
United States (0.0%) (b)
Lookout, Inc. Series F (a)(c)(d) (acquisition cost — $73; acquired 6/17/14) (Cost $73)		6,374		33
Investment Company (0.7%)
United States (0.7%)
Grayscale Bitcoin Trust (a) (Cost $2,396)		58,912		710
Short-Term Investment (2.1%)
Investment Company (2.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $2,123)		2,123,229		2,123
Total Investments Excluding Purchased Options (100.7%) (Cost $183,351)				104,239
Total Purchased Options Outstanding (0.1%) (Cost $1,317)				92
Total Investments (100.8%) (Cost $184,668) (e)(f)(g)				104,331
Liabilities in Excess of Other Assets (–0.8%)				(864	)
Net Assets (100.0%)			$	103,467

The Fund had the following Derivative Contracts — PIPE open at June 30, 2022:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Depreciation (000)				% of Net Assets
Social Capital Suvretta Holdings Corp.III				ProKidney, LP (a)(c)(d)(h)(i)				$	676,220			12/30/2022				$	(98	)			(0.09	)%

(a) Non-income producing security.

(b) Amount is less than 0.05%.

(c) At June 30, 2022, the Fund held a fair valued security and derivative contracts valued at approximately $(65,000), representing (0.1)% of net assets. These holdings have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(d) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted security and derivative contracts (excluding 144A holdings) at June 30, 2022 amounts to approximately $(65,000) and represents (0.1)% of net assets.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Insight Portfolio

(e) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,884,000 and the aggregate gross unrealized depreciation is approximately $82,319,000, resulting in net unrealized depreciation of approximately $80,435,000.

(f) Securities are available for collateral in connection with a derivative contract — PIPE and purchased options.

(g) The approximate fair value and percentage of net assets, $9,591,000 and 9.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(h) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 67,622, shares at $10.00 per shares on the settlement date pursuant to the closing of the business combination between ProKidney, LP and Social Capital

Suvretta Holdings Corp.III, a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Social Capital Suvretta Holdings Corp.III and Prokidney, LP and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met the Fund is no longer obligated to fulfill its commitment to Social Capital Suvretta Holdings Corp.III and Prokidney, LP. The investment is restricted from resale until the settlement date.

(i) Investment is valued based on the underlying stock price and significant unobservable inputs that factor in volatility and discount for lack of marketability and transaction risk and is classified as Level 3 in the fair value hierarchy.

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
Goldman Sachs International	USD/CNH	CNH	7.27	Nov-22		90,422,836		90,423	$	90		$	435	$	(345	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.28	Jul-22		94,669,594		94,670		1			441		(440	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		43,502,787		43,503		1			295		(294	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		27,456,366		27,456		—	@		146		(146	)
									$	92		$	1,317	$	(1,225	)

@ Amount less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Information Technology Services		24.7	%
Other**		19.8
Software		14.9
Internet & Direct Marketing Retail		14.4
Pharmaceuticals		8.6
Entertainment		7.3
Semiconductors & Semiconductor Equipment		5.4
Health Care Providers & Services		4.9
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

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

*** Does not include an open PIPE contract with net unrealized depreciation of approximately $98,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Insight Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $182,545)	$	102,208
Investment in Security of Affiliated Issuer, at Value (Cost $2,123)		2,123
Total Investments in Securities, at Value (Cost $184,668)		104,331
Foreign Currency, at Value (Cost $5)		5
Receivable for Fund Shares Sold		68
Tax Reclaim Receivable		43
Receivable from Affiliate		2
Dividends Receivable		1
Receivable from Securities Lending Income		—	@
Other Assets		138
Total Assets		104,588
Liabilities:
Due to Broker		460
Payable for Fund Shares Redeemed		262
Payable for Advisory Fees		141
Unrealized Depreciation on Derivative Contract — PIPE		98
Payable for Sub Transfer Agency Fees — Class I		54
Payable for Sub Transfer Agency Fees — Class A		25
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		4
Payable for Custodian Fees		15
Payable for Professional Fees		11
Payable for Shareholder Services Fees — Class A		5
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		5
Payable for Administration Fees		7
Payable for Transfer Agency Fees — Class I		3
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		—	@
Other Liabilities		29
Total Liabilities		1,121
Net Assets	$	103,467
Net Assets Consist of:
Paid-in-Capital	$	254,393
Total Accumulated Loss		(150,926	)
Net Assets	$	103,467

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Insight Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	74,404
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		9,051,697
Net Asset Value, Offering and Redemption Price Per Share	$	8.22
CLASS A:
Net Assets	$	22,856
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,912,584
Net Asset Value, Redemption Price Per Share	$	7.85
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.43
Maximum Offering Price Per Share	$	8.28
CLASS L:
Net Assets	$	190
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		26,660
Net Asset Value, Offering and Redemption Price Per Share	$	7.13
CLASS C:
Net Assets	$	6,013
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		874,968
Net Asset Value, Offering and Redemption Price Per Share	$	6.87
CLASS R6:*
Net Assets	$	4
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		475
Net Asset Value, Offering and Redemption Price Per Share	$	8.21

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Insight Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Income from Securities Loaned — Net	$	140
Dividends from Securities of Unaffiliated Issuers (Net of $5 of Foreign Taxes Withheld)		133
Dividends from Security of Affiliated Issuer (Note G)		5
Total Investment Income		278
Expenses:
Advisory Fees (Note B)		632
Sub Transfer Agency Fees — Class I		87
Sub Transfer Agency Fees — Class A		43
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		6
Shareholder Services Fees — Class A (Note D)		48
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		51
Professional Fees		91
Administration Fees (Note C)		63
Registration Fees		46
Shareholder Reporting Fees		26
Custodian Fees (Note F)		16
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		2
Transfer Agency Fees — Class R6* (Note E)		1
Directors' Fees and Expenses		4
Pricing Fees		2
Interest Expenses		1
Other Expenses		11
Total Expenses		1,138
Waiver of Advisory Fees (Note B)		(139	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(64	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(22	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Net Expenses		909
Net Investment Loss		(631	)
Realized Loss:
Investments Sold		(47,908	)
Foreign Currency Translation		(14	)
Net Realized Loss		(47,922	)
Change in Unrealized Appreciation (Depreciation):
Investments		(94,403	)
Foreign Currency Translation		(4	)
Derivative Contracts — PIPE		(98	)
Net Change in Unrealized Appreciation (Depreciation)		(94,505	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(142,427	)
Net Decrease in Net Assets Resulting from Operations	$	(143,058	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Insight Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(631	)	$	(1,068	)
Net Realized Gain (Loss)		(47,922	)		60,994
Net Change in Unrealized Appreciation (Depreciation)		(94,505	)		(124,497	)
Net Decrease in Net Assets Resulting from Operations		(143,058	)		(64,571	)
Dividends and Distributions to Shareholders:
Class I		—			(80,779	)
Class A		—			(30,632	)
Class L		—			(299	)
Class C		—			(7,647	)
Class R6*		—			(3	)(a)
Total Dividends and Distributions to Shareholders		—			(119,360	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		35,395			175,739
Distributions Reinvested		—			80,514
Redeemed		(63,710	)		(243,720	)
Class A:
Subscribed		5,000			52,620
Distributions Reinvested		—			30,632
Redeemed		(19,210	)		(67,717	)
Class L:
Exchanged		—			20
Distributions Reinvested		—			299
Redeemed		(80	)		(200	)
Class C:
Subscribed		810			8,258
Distributions Reinvested		—			7,647
Redeemed		(3,566	)		(7,432	)
Class R6:*
Subscribed		—			10	(a)
Distributions Reinvested		—			3	(a)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(45,361	)		36,673
Total Decrease in Net Assets		(188,419	)		(147,258	)
Net Assets:
Beginning of Period		291,886			439,144
End of Period	$	103,467		$	291,886

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Insight Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		3,203			5,343
Shares Issued on Distributions Reinvested		—			4,511
Shares Redeemed		(5,137	)		(8,150	)
Net Increase (Decrease) in Class I Shares Outstanding		(1,934	)		1,704
Class A:
Shares Subscribed		426			1,600
Shares Issued on Distributions Reinvested		—			1,795
Shares Redeemed		(1,632	)		(2,416	)
Net Increase (Decrease) in Class A Shares Outstanding		(1,206	)		979
Class L:
Shares Exchanged		—			1
Shares Issued on Distributions Reinvested		—			19
Shares Redeemed		(11	)		(12	)
Net Increase (Decrease) in Class L Shares Outstanding		(11	)		8
Class C:
Shares Subscribed		77			278
Shares Issued on Distributions Reinvested		—			509
Shares Redeemed		(359	)		(301	)
Net Increase (Decrease) in Class C Shares Outstanding		(282	)		486
Class R6:*
Shares Subscribed		—			—	@@(a)
Shares Issued on Distributions Reinvested		—			—	@@(a)
Net Increase in Class R6 Shares Outstanding		—			—	@@(a)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(a) For the period June 14, 2021 to December 31, 2021.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Insight Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	18.32		$	33.83		$	17.96		$	13.96		$	15.43		$	12.12
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.04	)		(0.04	)		(0.24	)		(0.02	)		(0.03	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		(10.06	)		(5.05	)		17.29			4.41			(0.80	)		5.07
Total from Investment Operations		(10.10	)		(5.09	)		17.05			4.39			(0.83	)		5.04
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		—			—			—			—
Net Realized Gain		—			(10.41	)		(1.18	)		(0.39	)		(0.64	)		(1.73	)
Total Distributions		—			(10.42	)		(1.18	)		(0.39	)		(0.64	)		(1.73	)
Net Asset Value, End of Period	$	8.22		$	18.32		$	33.83		$	17.96		$	13.96		$	15.43
Total Return⁽³⁾		(55.13	)%⁽⁷⁾		(14.25	)%		94.98	%		31.49	%		(5.75	)%		41.56	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	74,404		$	201,294		$	314,038		$	87,595		$	60,271		$	7,005
Ratio of Expenses Before Expense Limitation		1.29	%⁽⁸⁾		1.08	%		N/A			1.21	%		1.82	%		3.67	%
Ratio of Expenses After Expense Limitation		1.00	%⁽⁴⁾⁽⁸⁾		1.00	%⁽⁴⁾⁽⁵⁾		1.09	%⁽⁴⁾		1.09	%⁽⁴⁾		1.09	%⁽⁴⁾		1.09	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.00	%⁽⁴⁾⁽⁸⁾		1.00	%⁽⁴⁾⁽⁵⁾		N/A			1.09	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(0.66	)%⁽⁴⁾⁽⁸⁾		(0.12	)%⁽⁴⁾		(0.94	)%⁽⁴⁾		(0.11	)%⁽⁴⁾		(0.19	)%⁽⁴⁾		(0.19	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		33	%⁽⁷⁾		112	%		85	%		95	%		130	%		103	%

(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) 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."

(5) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class I shares. Prior to March 31, 2021, the maximum ratio was 1.10% for Class I shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Insight Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	17.52		$	32.98		$	17.57		$	13.71		$	15.21		$	12.01
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.06	)		(0.13	)		(0.29	)		(0.07	)		(0.08	)		(0.08	)
Net Realized and Unrealized Gain (Loss)		(9.61	)		(4.92	)		16.88			4.32			(0.78	)		5.01
Total from Investment Operations		(9.67	)		(5.05	)		16.59			4.25			(0.86	)		4.93
Distributions from and/or in Excess of:
Net Realized Gain		—			(10.41	)		(1.18	)		(0.39	)		(0.64	)		(1.73	)
Net Asset Value, End of Period	$	7.85		$	17.52		$	32.98		$	17.57		$	13.71		$	15.21
Total Return⁽³⁾		(55.19	)%⁽⁸⁾		(14.49	)%		94.46	%		31.04	%		(6.03	)%		41.02	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	22,856		$	72,157		$	103,550		$	43,576		$	33,240		$	4,577
Ratio of Expenses Before Expense Limitation		1.61	%⁽⁹⁾		1.36	%		N/A			1.48	%		1.95	%		3.88	%
Ratio of Expenses After Expense Limitation		1.32	%⁽⁴⁾⁽⁹⁾		1.30	%⁽⁴⁾⁽⁵⁾		1.35	%⁽⁴⁾		1.41	%⁽⁴⁾		1.41	%⁽⁴⁾⁽⁶⁾		1.41	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.32	%⁽⁴⁾⁽⁹⁾		1.30	%⁽⁴⁾⁽⁵⁾		N/A			1.41	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(0.97	)%⁽⁴⁾⁽⁹⁾		(0.41	)%⁽⁴⁾		(1.20	)%⁽⁴⁾		(0.43	)%⁽⁴⁾		(0.54	)%⁽⁴⁾		(0.52	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		33	%⁽⁸⁾		112	%		85	%		95	%		130	%		103	%

(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.

(5) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.32% for Class A shares. Prior to March 31, 2021, the maximum ratio was 1.42% for Class A shares.

(6) Effective November 19, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.42% for Class A shares. Prior to November 19, 2018, the maximum ratio was 1.45% for Class A shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Insight Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	15.97		$	31.34		$	16.82		$	13.21		$	14.75		$	11.74
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.08	)		(0.30	)		(0.40	)		(0.16	)		(0.16	)		(0.15	)
Net Realized and Unrealized Gain (Loss)		(8.76	)		(4.66	)		16.10			4.16			(0.74	)		4.89
Total from Investment Operations		(8.84	)		(4.96	)		15.70			4.00			(0.90	)		4.74
Distributions from and/or in Excess of:
Net Realized Gain		—			(10.41	)		(1.18	)		(0.39	)		(0.64	)		(1.73	)
Net Asset Value, End of Period	$	7.13		$	15.97		$	31.34		$	16.82		$	13.21		$	14.75
Total Return⁽³⁾		(55.35	)%⁽⁷⁾		(14.96	)%		93.38	%		30.32	%		(6.50	)%		40.34	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	190		$	602		$	923		$	573		$	462		$	327
Ratio of Expenses Before Expense Limitation		2.45	%⁽⁸⁾		2.04	%		2.09	%		2.16	%		3.29	%		5.07	%
Ratio of Expenses After Expense Limitation		1.85	%⁽⁴⁾⁽⁸⁾		1.87	%⁽⁴⁾⁽⁵⁾		1.94	%⁽⁴⁾		1.94	%⁽⁴⁾		1.94	%⁽⁴⁾		1.94	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.85	%⁽⁴⁾⁽⁸⁾		1.87	%⁽⁴⁾⁽⁵⁾		N/A			1.94	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(1.50	)%⁽⁴⁾⁽⁸⁾		(0.98	)%⁽⁴⁾		(1.79	)%⁽⁴⁾		(0.96	)%⁽⁴⁾		(1.03	)%⁽⁴⁾		(1.05	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		33	%⁽⁷⁾		112	%		85	%		95	%		130	%		103	%

(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.

(5) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.85% for Class L shares. Prior to March 31, 2021, the maximum ratio was 1.95% for Class L shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Insight Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	15.40		$	30.73		$	16.54		$	13.03		$	14.60		$	11.66
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.09	)		(0.34	)		(0.43	)		(0.19	)		(0.18	)		(0.19	)
Net Realized and Unrealized Gain (Loss)		(8.44	)		(4.58	)		15.80			4.09			(0.75	)		4.86
Total from Investment Operations		(8.53	)		(4.92	)		15.37			3.90			(0.93	)		4.67
Distributions from and/or in Excess of:
Net Realized Gain		—			(10.41	)		(1.18	)		(0.39	)		(0.64	)		(1.73	)
Net Asset Value, End of Period	$	6.87		$	15.40		$	30.73		$	16.54		$	13.03		$	14.60
Total Return⁽³⁾		(55.39	)%⁽⁷⁾		(15.14	)%		92.97	%		29.97	%		(6.77	)%		40.02	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	6,013		$	17,824		$	20,633		$	10,984		$	9,272		$	549
Ratio of Expenses Before Expense Limitation		2.27	%⁽⁸⁾		2.08	%		N/A			2.24	%		2.70	%		5.22	%
Ratio of Expenses After Expense Limitation		2.10	%⁽⁴⁾⁽⁸⁾		2.04	%⁽⁴⁾⁽⁵⁾		2.11	%⁽⁴⁾		2.19	%⁽⁴⁾		2.19	%⁽⁴⁾		2.19	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.10	%⁽⁴⁾⁽⁸⁾		2.04	%⁽⁴⁾⁽⁵⁾		N/A			2.19	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(1.75	)%⁽⁴⁾⁽⁸⁾		(1.14	)%⁽⁴⁾		(1.96	)%⁽⁴⁾		(1.21	)%⁽⁴⁾		(1.29	)%⁽⁴⁾		(1.30	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		33	%⁽⁷⁾		112	%		85	%		95	%		130	%		103	%

(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.

(5) Effective March 31, 2021, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.10% for Class C shares. Prior to March 31, 2021, the maximum ratio was 2.20% for Class C shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Insight Portfolio

	Class R6⁽¹⁾
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period from June 14, 2021⁽²⁾ to December 31, 2021
Net Asset Value, Beginning of Period	$	18.30		$	33.39
Loss from Investment Operations:
Net Investment Loss⁽³⁾		(0.03	)		(0.20	)
Net Realized and Unrealized Loss		(10.06	)		(4.45	)
Total from Investment Operations		(10.09	)		(4.65	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.03	)
Net Realized Gain		—			(10.41	)
Total Distributions		—			(10.44	)
Net Asset Value, End of Period	$	8.21		$	18.30
Total Return⁽⁴⁾		(55.14	)%⁽⁷⁾		(13.11	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4		$	9
Ratio of Expenses Before Expense Limitation		33.39	%⁽⁸⁾		17.00	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾⁽⁸⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.95	%⁽⁵⁾⁽⁸⁾		0.95	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(0.59	)%⁽⁵⁾⁽⁸⁾		(0.62	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		33	%⁽⁷⁾		112	%

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Offering.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Global Insight Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class L, Class C and Class R6. On April 30, 2015, the Fund suspended offering Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Global Insight Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary represented

approximately $885,000 or approximately 0.86% of the total 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 or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

from one or more reputable brokers or dealers; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur

during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (7) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Banks	$	1,045	$	—	$	—	$	1,045
Biotechnology		1,671		—		—		1,671
Capital Markets		645		—		—		645
Chemicals		395		—		—		395
Diversified Financial Services		999		1,519		—		2,518
Electrical Equipment		384		—		—		384

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)
Entertainment	$	7,660	$	—	$	—		$	7,660
Health Care Providers & Services		5,154		—		—			5,154
Health Care Technology		4,698		—		—			4,698
Information Technology Services		19,548		6,214		—			25,762
Internet & Direct Marketing Retail		13,101		1,858		—			14,959
Life Sciences Tools & Services		1,463		—		—			1,463
Pharmaceuticals		8,983		—		—			8,983
Road & Rail		4,942		—		—			4,942
Semiconductors & Semiconductor Equipment		5,596		—		—			5,596
Software		15,498		—		—			15,498
Total Common Stocks		91,782		9,591		—			101,373
Preferred Stock
Software		—		—		33			33
Investment Company		710		—		—			710
Call Options Purchased		—		92		—			92
Short-Term Investment
Investment Company		2,123		—		—			2,123
Total Assets	$	94,615	$	9,683	$	33		$	104,331
Derivative Contract — PIPE		—		—		(98	)		(98	)
Total	$	94,615	$	9,683	$	(65	)	$	104,233

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)		Derivative Contract — PIPE (000)
Beginning Balance	$	30	$	—
Purchases		—		—
Sales		—		—
PIPE transactions		—		(98	)
Amortization of discount		—		—
Transfers in		—		—
Transfers out		—		—
Corporate actions		—		—
Change in unrealized appreciation (depreciation)		3		—
Realized gains (losses)		—		—
Ending Balance	$	33	$	(98	)
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022	$	3	$	(98	)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

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 June 30, 2022. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance. The Fund calculated the weighted averages of the unobservable inputs relative to each investment's fair value as of June 30, 2022:

	Fair Value at June 30, 2022 (000)			Valuation Technique	Unobservable Input	Amount*			Impact to Valuation from an Increase in Input**
Preferred Stock	$	33		Discounted Cash Flow	Weighted Average Cost of Capital		12.5	%	Decrease
					Perpetual Growth Rate		3.5	%	Increase
				Market Comparable Companies	Enterprise Value/ Revenue		8.4	x	Increase
					Discount for Lack of Marketability		11.0	%	Decrease
PIPE	$	(98	)	Market Implied	Discount for Lack of Marketability and Transaction Risk		14.0	%	Decrease

* Amount is indicative of the weighted average.

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.

treated as ordinary income for U.S. federal income tax purposes.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Consolidated Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

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

had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund's investment objectives, there is no assurance that the use of derivatives will achieve this result.

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

Options: With respect to options, the Fund is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. The Fund may purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

Private Investment in Public Equity: The Fund may acquire equity securities of an issuer that are issued through a private investment in public equity transaction, including on a when-issued basis. PIPE transactions typically involve the purchase of securities directly from a publicly traded company or its affiliates in a private placement transaction, typically at a discount to the market price of the company's securities. The Fund's PIPE investment represents an unfunded subscription agreement in a private investment in public equity. The Fund will earmark or segregate cash or liquid assets or establish a segregated account on the Fund's books in which it will continually maintain cash or cash equivalents or other liquid portfolio securities equal in value to commitments to purchase securities on a forward commitment basis.

At June 30, 2022, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

Liability Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Depreciation on
Derivative Contract — PIPE

Equity Risk

(98

)

(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 six months ended June 30, 2022 in accordance with ASC 815:

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(869	)(b)

(b) Amounts are included in Realized 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)	$	476	(c)
Equity Risk	Derivative Contract — PIPE		(98	)
	Total	$	378

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At June 30, 2022, 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 (000)			Liabilities (000)
Purchased Options	$	92	(a)(d)	$	—
Derivative Contract — PIPE		—			(98	)(e)
Total	$	92		$	(98	)

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

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

(e) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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(f) (000)			Net Amount (not less than $0) (000)
Goldman Sachs International	$	90	$	—	$	(90	)	$	0
JP Morgan Chase Bank NA		2		—		(2	)		0
Total	$	92	$	—	$	(92	)	$	0

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

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount		284,561,000
Derivative Contract — PIPE:
Average monthly notional amount	$	676,000

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.

At June 30, 2022, the Fund did not have any outstanding securities on loan.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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

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

9. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis (except where collection is in doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services

under the terms of an Investment Advisory Agreement, paid quarterly, at the annual rate based on the daily net assets as follows:

First $1 billion				Over $1 billion
0.80%				0.75%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.62% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.32% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares and 0.95% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $139,000 of advisory fees were waived and approximately $88,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

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

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser and

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

an indirect subsidiary of Morgan Stanley, serves as the Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $54,347,000 and $93,190,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $2,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	10,353			$	62,550			$	70,780			$	5

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	2,123

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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 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 December 31, 2021 remains subject to examination by taxing authorities.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	23,356	$	96,004	$	—	$	14,368

The amount and character of income and gains to be distributed are determined in accordance with income tax

regulations which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Permanent differences, due to nondeductible offering costs related to the Subsidiary, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Accumulated Loss (000)				Paid-in- Capital (000)
$3				$(3)

At December 31, 2021, the Fund had no distributable earnings on a tax basis.

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$391				$16,555

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

K. Market Risk and Risks Relating to Certain Financial Instruments:

Bitcoin: The Fund may have exposure to bitcoin indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. 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 GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC 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 GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

later offerings of interests in the SPAC or by other investors exercising existing rights to purchase shares of the SPAC. In addition, a SPAC target company may have limited operating experience, a smaller size, limited product lines, markets, distribution channels and financial and managerial resources. Investing in the securities of smaller companies involves greater risk, and portfolio price volatility.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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. 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 and total expense ratio were higher than but close to its peer group averages and the actual management fee was higher than its peer group average. After discussion, the Board concluded that the Fund's (i) performance and total expense ratio were competitive with its peer group averages and (ii) management fee 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGASAN
4877760 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Opportunity Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					17
Investment Advisory Agreement Approval					27
Liquidity Risk Management Program					29
U.S. Customer Privacy Notice					30
Director and Officer Information					33

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Global Opportunity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Opportunity Portfolio Class I	$	1,000.00	$	579.30	$	1,019.98	$	3.80	$	4.86		0.97	%
Global Opportunity Portfolio Class A		1,000.00		578.30		1,018.60		4.89		6.26		1.25
Global Opportunity Portfolio Class L		1,000.00		578.40		1,018.35		5.09		6.51		1.30
Global Opportunity Portfolio Class C		1,000.00		576.40		1,015.12		7.62		9.74		1.95
Global Opportunity Portfolio Class R6⁽¹⁾		1,000.00		579.60		1,020.58		3.33		4.26		0.85
Global Opportunity Portfolio Class IR		1,000.00		579.60		1,020.58		3.33		4.26		0.85

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Global Opportunity Portfolio

	Shares		Value (000)
Common Stocks (97.5%)
Argentina (1.2%)
Globant SA (a)		218,359	$	37,994
Brazil (0.6%)
NU Holdings Ltd., Class A (a)		4,848,929		18,135
Canada (3.0%)
Shopify, Inc., Class A (a)		3,040,260		94,978
China (5.6%)
Meituan, Class B (a)(b)		4,732,600		118,098
Trip.com Group Ltd. ADR (a)		2,042,289		56,061
				174,159
Denmark (6.0%)
DSV AS		1,342,316		188,753
France (2.3%)
Hermes International		65,247		73,431
Germany (1.6%)
Adidas AG		290,041		51,520
India (10.1%)
HDFC Bank Ltd.		12,935,481		221,573
ICICI Bank Ltd. ADR		5,346,313		94,844
				316,417
Italy (3.5%)
Moncler SpA		2,533,967		109,179
Japan (1.6%)
Keyence Corp.		149,600		51,304
Korea, Republic of (2.0%)
KakaoBank Corp. (a)		932,039		21,774
NAVER Corp.		223,350		41,660
				63,434
Netherlands (0.6%)
Adyen NV (a)		13,229		19,091
Singapore (1.5%)
Grab Holdings Ltd., Class A (a)		18,083,681		45,752
United Kingdom (0.1%)
Fevertree Drinks PLC		147,040		2,190
United States (57.8%)
Adobe, Inc. (a)		349,555		127,958
Affirm Holdings, Inc. (a)		516,933		9,336
Amazon.com, Inc. (a)		1,351,923		143,588
Block, Inc., Class A (a)		1,286,781		79,086
Coupang, Inc. (a)		9,676,448		123,375
DoorDash, Inc., Class A (a)		1,081,532		69,402
Endeavor Group Holdings, Inc., Class A (a)		1,370,381		28,175
Farfetch Ltd., Class A (a)		1,794,862		12,851
Magic Leap, Class A (a)(c)(d) (acquisition cost — $3,174; acquired 12/22/15)		6,530		—
Mastercard, Inc., Class A		244,203		77,041
MercadoLibre, Inc. (a)		176,039		112,114
Meta Platforms, Inc., Class A (a)		831,810		134,129

	Shares		Value (000)
Salesforce.com, Inc. (a)		597,975	$	98,690
ServiceNow, Inc. (a)		543,348		258,373
Snowflake, Inc., Class A (a)		111,441		15,497
Spotify Technology SA (a)		821,862		77,115
Uber Technologies, Inc. (a)		9,566,313		195,727
Visa, Inc., Class A		489,316		96,341
Walt Disney Co. (a)		1,361,351		128,511
Zillow Group, Inc., Class A (a)		379,067		12,058
Zoom Video Communications, Inc., Class A (a)		181,104		19,554
				1,818,921
Total Common Stocks (Cost $3,011,443)				3,065,258
Investment Company (0.7%)
United States (0.7%)
Grayscale Bitcoin Trust (a) (Cost $75,271)		1,690,985		20,393
Short-Term Investment (2.3%)
Investment Company (2.3%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $73,025)		73,024,598		73,025
Total Investments Excluding Purchased Options (100.5%) (Cost $3,159,739)				3,158,676
Total Purchased Options Outstanding (0.0%) (e) (Cost $7,715)				19
Total Investments (100.5%) (Cost $3,167,454) (f)(g)(h)				3,158,695
Liabilities in Excess of Other Assets (–0.5%)				(14,448	)
Net Assets (100.0%)			$	3,144,247

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(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 June 30, 2022 amounts to $0 and represents 0.0% of net assets.

(d) At June 30, 2022, the Fund held a fair valued security at $0, representing 0.0% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(e) Amount is less than 0.05%.

(f) Securities are available for collateral in connection with purchased options.

(g) The approximate fair value and percentage of net assets, $898,573,000 and 28.6%, 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 the Consolidated Financial Statements.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Opportunity Portfolio

(h) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $905,516,000 and the aggregate gross unrealized depreciation is approximately $914,275,000, resulting in net unrealized depreciation of approximately $8,759,000.

ADR American Depositary Receipt.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		756,739,436		756,739	$	17	$	5,140	$	(5,123	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		485,510,983		485,511		2		2,575		(2,573	)
									$	19	$	7,715	$	(7,696	)

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Internet & Direct Marketing Retail		18.3	%
Software		16.0
Information Technology Services		13.6
Banks		11.3
Road & Rail		7.6
Textiles, Apparel & Luxury Goods		7.4
Entertainment		7.4
Others*		6.8
Air Freight & Logistics		6.0
Interactive Media & Services		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 consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Opportunity Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $3,094,429)	$	3,085,670
Investment in Security of Affiliated Issuer, at Value (Cost $73,025)		73,025
Total Investments in Securities, at Value (Cost $3,167,454)		3,158,695
Foreign Currency, at Value (Cost $4)		4
Dividends Receivable		2,103
Tax Reclaim Receivable		931
Receivable for Fund Shares Sold		921
Receivable for Investments Sold		854
Receivable from Affiliate		53
Other Assets		442
Total Assets		3,164,003
Liabilities:
Payable for Advisory Fees		7,040
Payable for Fund Shares Redeemed		6,471
Deferred Capital Gain Country Tax		3,848
Payable for Sub Transfer Agency Fees — Class I		924
Payable for Sub Transfer Agency Fees — Class A		305
Payable for Sub Transfer Agency Fees — Class L		6
Payable for Sub Transfer Agency Fees — Class C		68
Payable for Shareholder Services Fees — Class A		171
Payable for Distribution and Shareholder Services Fees — Class L		7
Payable for Distribution and Shareholder Services Fees — Class C		166
Due to Broker		260
Payable for Administration Fees		222
Payable for Transfer Agency Fees — Class I		31
Payable for Transfer Agency Fees — Class A		56
Payable for Transfer Agency Fees — Class L		10
Payable for Transfer Agency Fees — Class C		4
Payable for Transfer Agency Fees — Class R6*		—	@
Payable for Transfer Agency Fees — Class IR		1
Payable for Custodian Fees		96
Payable for Professional Fees		22
Payable for Investments Purchased		2
Other Liabilities		46
Total Liabilities		19,756
Net Assets	$	3,144,247
Net Assets Consist of:
Paid-in-Capital	$	2,624,283
Total Distributable Earnings		519,964
Net Assets	$	3,144,247

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Opportunity Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	1,902,347
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		76,931,701
Net Asset Value, Offering and Redemption Price Per Share	$	24.73
CLASS A:
Net Assets	$	779,292
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		32,975,797
Net Asset Value, Redemption Price Per Share	$	23.63
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.31
Maximum Offering Price Per Share	$	24.94
CLASS L:
Net Assets	$	26,347
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,132,460
Net Asset Value, Offering and Redemption Price Per Share	$	23.27
CLASS C:
Net Assets	$	188,412
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		8,505,877
Net Asset Value, Offering and Redemption Price Per Share	$	22.15
CLASS R6:*
Net Assets	$	143,460
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,771,374
Net Asset Value, Offering and Redemption Price Per Share	$	24.86
CLASS IR:
Net Assets	$	104,389
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		4,194,360
Net Asset Value, Offering and Redemption Price Per Share	$	24.89

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Opportunity Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $1,227 of Foreign Taxes Withheld)	$	9,326
Dividends from Security of Affiliated Issuer (Note G)		120
Non-Cash Dividends from Securities of Unaffiliated Issuers		551
Income from Securities Loaned — Net		109
Total Investment Income		10,106
Expenses:
Advisory Fees (Note B)		17,077
Sub Transfer Agency Fees — Class I		1,947
Sub Transfer Agency Fees — Class A		769
Sub Transfer Agency Fees — Class L		10
Sub Transfer Agency Fees — Class C		147
Shareholder Services Fees — Class A (Note D)		1,356
Distribution and Shareholder Services Fees — Class L (Note D)		132
Distribution and Shareholder Services Fees — Class C (Note D)		1,375
Administration Fees (Note C)		1,888
Custodian Fees (Note F)		323
Shareholder Reporting Fees		271
Transfer Agency Fees — Class I (Note E)		29
Transfer Agency Fees — Class A (Note E)		94
Transfer Agency Fees — Class L (Note E)		16
Transfer Agency Fees — Class C (Note E)		7
Transfer Agency Fees — Class R6* (Note E)		8
Transfer Agency Fees — Class IR (Note E)		1
Registration Fees		126
Professional Fees		80
Directors' Fees and Expenses		37
Pricing Fees		2
Other Expenses		65
Total Expenses		25,760
Distribution Fees — Class L Shares Waived (Note D)		(79	)
Rebate from Morgan Stanley Affiliate (Note G)		(53	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(3	)
Net Expenses		25,625
Net Investment Loss		(15,519	)
Realized Gain:
Investments Sold (Net of $2,452 of Capital Gain Country Tax)		396,994
Foreign Currency Translation		433
Net Realized Gain		397,427
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $5,214)		(3,097,919	)
Foreign Currency Translation		(91	)
Net Change in Unrealized Appreciation (Depreciation)		(3,098,010	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(2,700,583	)
Net Decrease in Net Assets Resulting from Operations	$	(2,716,102	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Opportunity Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(15,519	)	$	(68,109	)
Net Realized Gain		397,427			453,816
Net Change in Unrealized Appreciation (Depreciation)		(3,098,010	)		(394,101	)
Net Decrease in Net Assets Resulting from Operations		(2,716,102	)		(8,394	)
Dividends and Distributions to Shareholders:
Class I		—			(220,970	)
Class A		—			(76,362	)
Class L		—			(2,423	)
Class C		—			(21,570	)
Class R6*		—			(13,666	)
Class IR		—			(7,221	)
Total Dividends and Distributions to Shareholders		—			(342,212	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		427,479			1,471,766
Distributions Reinvested		—			209,302
Redeemed		(1,385,724	)		(1,354,837	)
Class A:
Subscribed		56,658			204,306
Distributions Reinvested		—			75,061
Redeemed		(198,546	)		(364,420	)
Class L:
Exchanged		80			32
Distributions Reinvested		—			2,249
Redeemed		(2,172	)		(5,193	)
Class C:
Subscribed		8,040			58,062
Distributions Reinvested		—			21,141
Redeemed		(72,576	)		(79,565	)
Class R6:*
Subscribed		35,256			99,877
Distributions Reinvested		—			11,343
Redeemed		(62,563	)		(181,792	)
Class IR:
Subscribed		21,000			40,935
Distributions Reinvested		—			7,221
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(1,173,068	)		215,488
Total Decrease in Net Assets		(3,889,170	)		(135,118	)
Net Assets:
Beginning of Period		7,033,417			7,168,535
End of Period	$	3,144,247		$	7,033,417

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Opportunity Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		12,962			31,671
Shares Issued on Distributions Reinvested		—			5,034
Shares Redeemed		(43,578	)		(29,677	)
Net Increase (Decrease) in Class I Shares Outstanding		(30,616	)		7,028
Class A:
Shares Subscribed		1,860			4,623
Shares Issued on Distributions Reinvested		—			1,886
Shares Redeemed		(6,555	)		(8,264	)
Net Decrease in Class A Shares Outstanding		(4,695	)		(1,755	)
Class L:
Shares Exchanged		3			1
Shares Issued on Distributions Reinvested		—			57
Shares Redeemed		(74	)		(119	)
Net Decrease in Class L Shares Outstanding		(71	)		(61	)
Class C:
Shares Subscribed		268			1,381
Shares Issued on Distributions Reinvested		—			565
Shares Redeemed		(2,477	)		(1,910	)
Net Increase (Decrease) in Class C Shares Outstanding		(2,209	)		36
Class R6:*
Shares Subscribed		1,030			2,144
Shares Issued on Distributions Reinvested		—			272
Shares Redeemed		(1,970	)		(3,899	)
Net Decrease in Class R6 Shares Outstanding		(940	)		(1,483	)
Class IR:
Shares Subscribed		585			889
Shares Issued on Distributions Reinvested		—			173
Net Increase in Class IR Shares Outstanding		585			1,062

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	42.69		$	44.75		$	29.12		$	21.50		$	22.94		$	15.41
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.08	)		(0.36	)		(0.28	)		(0.12	)		(0.07	)		(0.06	)
Net Realized and Unrealized Gain (Loss)		(17.88	)		0.40			16.43			7.74			(1.20	)		7.68
Total from Investment Operations		(17.96	)		0.04			16.15			7.62			(1.27	)		7.62
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.10	)		(0.52	)		—			(0.17	)		(0.09	)
Net Asset Value, End of Period	$	24.73		$	42.69		$	44.75		$	29.12		$	21.50		$	22.94
Total Return⁽³⁾		(42.07	)%⁽⁷⁾		0.22	%		55.47	%		35.44	%		(5.66	)%		49.44	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,902,347		$	4,591,358		$	4,498,617		$	2,220,219		$	1,337,133		$	898,008
Ratio of Expenses Before Expense Limitation		0.97	%⁽⁸⁾		0.92	%		N/A			N/A			N/A			0.99	%
Ratio of Expenses After Expense Limitation		0.97	%⁽⁴⁾⁽⁸⁾		0.92	%⁽⁴⁾		0.92	%⁽⁴⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾⁽⁵⁾		0.79	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			0.94	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(0.55	)%⁽⁴⁾⁽⁸⁾		(0.78	)%⁽⁴⁾		(0.79	)%⁽⁴⁾		(0.44	)%⁽⁴⁾		(0.30	)%⁽⁴⁾		(0.31	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		18	%⁽⁷⁾		21	%		22	%		15	%		28	%		30	%

(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.

(5) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class I shares. Prior to January 1, 2018, the maximum ratio was 0.81% for Class I shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	40.86		$	43.04		$	28.10		$	20.81		$	22.28		$	15.01
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.12	)		(0.47	)		(0.35	)		(0.18	)		(0.14	)		(0.12	)
Net Realized and Unrealized Gain (Loss)		(17.11	)		0.39			15.81			7.47			(1.16	)		7.48
Total from Investment Operations		(17.23	)		(0.08	)		15.46			7.29			(1.30	)		7.36
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.10	)		(0.52	)		—			(0.17	)		(0.09	)
Net Asset Value, End of Period	$	23.63		$	40.86		$	43.04		$	28.10		$	20.81		$	22.28
Total Return⁽³⁾		(42.17	)%⁽⁷⁾		(0.05	)%		55.03	%		35.03	%		(5.96	)%		49.03	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	779,292		$	1,539,078		$	1,697,016		$	1,070,124		$	790,571		$	780,705
Ratio of Expenses Before Expense Limitation		1.25	%⁽⁸⁾		1.20	%		N/A			N/A			N/A			1.32	%
Ratio of Expenses After Expense Limitation		1.25	%⁽⁴⁾⁽⁸⁾		1.20	%⁽⁴⁾		1.20	%⁽⁴⁾		1.22	%⁽⁴⁾		1.26	%⁽⁴⁾⁽⁵⁾		1.12	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			1.22	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(0.82	)%⁽⁴⁾⁽⁸⁾		(1.06	)%⁽⁴⁾		(1.06	)%⁽⁴⁾		(0.72	)%⁽⁴⁾		(0.59	)%⁽⁴⁾		(0.63	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		18	%⁽⁷⁾		21	%		22	%		15	%		28	%		30	%

(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.

(5) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.35% for Class A shares. Prior to January 1, 2018, the maximum ratio was 1.23% for Class A shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	40.23		$	42.44		$	27.72		$	20.54		$	22.01		$	14.84
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.12	)		(0.48	)		(0.36	)		(0.19	)		(0.15	)		(0.13	)
Net Realized and Unrealized Gain (Loss)		(16.84	)		0.37			15.60			7.37			(1.15	)		7.39
Total from Investment Operations		(16.96	)		(0.11	)		15.24			7.18			(1.30	)		7.26
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.10	)		(0.52	)		—			(0.17	)		(0.09	)
Net Asset Value, End of Period	$	23.27		$	40.23		$	42.44		$	27.72		$	20.54		$	22.01
Total Return⁽³⁾		(42.16	)%⁽⁷⁾		(0.12	)%		54.99	%		34.96	%		(6.04	)%		48.91	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	26,347		$	48,426		$	53,675		$	40,836		$	33,913		$	39,979
Ratio of Expenses Before Expense Limitation		1.75	%⁽⁸⁾		1.69	%		1.71	%		1.74	%		1.78	%		1.86	%
Ratio of Expenses After Expense Limitation		1.30	%⁽⁴⁾⁽⁸⁾		1.24	%⁽⁴⁾		1.25	%⁽⁴⁾		1.28	%⁽⁴⁾		1.32	%⁽⁴⁾⁽⁵⁾		1.20	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			1.28	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(0.86	)%⁽⁴⁾⁽⁸⁾		(1.10	)%⁽⁴⁾		(1.10	)%⁽⁴⁾		(0.78	)%⁽⁴⁾		(0.65	)%⁽⁴⁾		(0.67	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		18	%⁽⁷⁾		21	%		22	%		15	%		28	%		30	%

(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.

(5) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.40% for Class L shares. Prior to January 1, 2018, the maximum ratio was 1.50% for Class L shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	38.43		$	40.90		$	26.90		$	20.07		$	21.64		$	14.69
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.22	)		(0.74	)		(0.57	)		(0.35	)		(0.30	)		(0.26	)
Net Realized and Unrealized Gain (Loss)		(16.06	)		0.37			15.09			7.18			(1.10	)		7.30
Total from Investment Operations		(16.28	)		(0.37	)		14.52			6.83			(1.40	)		7.04
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.10	)		(0.52	)		—			(0.17	)		(0.09	)
Net Asset Value, End of Period	$	22.15		$	38.43		$	40.90		$	26.90		$	20.07		$	21.64
Total Return⁽³⁾		(42.36	)%⁽⁷⁾		(0.77	)%		53.99	%		34.03	%		(6.61	)%		47.92	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	188,412		$	411,765		$	436,790		$	251,160		$	159,642		$	104,364
Ratio of Expenses Before Expense Limitation		1.95	%⁽⁸⁾		1.90	%		N/A			N/A			N/A			2.01	%
Ratio of Expenses After Expense Limitation		1.95	%⁽⁴⁾⁽⁸⁾		1.90	%⁽⁴⁾		1.91	%⁽⁴⁾		1.94	%⁽⁴⁾		1.95	%⁽⁴⁾⁽⁵⁾		1.81	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			1.94	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(1.52	)%⁽⁴⁾⁽⁸⁾		(1.76	)%⁽⁴⁾		(1.77	)%⁽⁴⁾		(1.45	)%⁽⁴⁾		(1.30	)%⁽⁴⁾		(1.33	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		18	%⁽⁷⁾		21	%		22	%		15	%		28	%		30	%

(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.

(5) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.10% for Class C shares. Prior to January 1, 2018, the maximum ratio was 2.20% for Class C shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽²⁾			2019⁽²⁾			2018⁽²⁾			2017⁽²⁾
Net Asset Value, Beginning of Period	$	42.89		$	44.90		$	29.18		$	21.53		$	23.00		$	15.44
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.07	)		(0.31	)		(0.25	)		(0.14	)		(0.00	)⁽⁴⁾		(0.05	)
Net Realized and Unrealized Gain (Loss)		(17.96	)		0.40			16.49			7.79			(1.30	)		7.70
Total from Investment Operations		(18.03	)		0.09			16.24			7.65			(1.30	)		7.65
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.10	)		(0.52	)		—			(0.17	)		(0.09	)
Net Asset Value, End of Period	$	24.86		$	42.89		$	44.90		$	29.18		$	21.53		$	23.00
Total Return⁽⁵⁾		(42.04	)%⁽⁹⁾		0.33	%		55.67	%		35.53	%		(5.78	)%		49.54	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	143,460		$	287,811		$	367,927		$	124,173		$	2,156		$	1,650
Ratio of Expenses Before Expense Limitation		0.85	%⁽¹⁰⁾		0.82	%		N/A			0.86	%		N/A			1.24	%
Ratio of Expenses After Expense Limitation		0.85	%^(6)(10)		0.82	%⁽⁶⁾		0.82	%⁽⁶⁾		0.84	%⁽⁶⁾		0.88	%⁽⁶⁾⁽⁷⁾		0.71	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			0.84	%⁽⁶⁾		N/A			N/A
Ratio of Net Investment Loss		(0.43	)%^(6)(10)		(0.68	)%⁽⁶⁾		(0.70	)%⁽⁶⁾		(0.51	)%⁽⁶⁾		(0.02	)%⁽⁶⁾		(0.23	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%^(8)(10)		0.00	%⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		18	%⁽⁹⁾		21	%		22	%		15	%		28	%		30	%

(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) Amount is less than $0.005 per share.

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

(7) Effective January 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.95% for Class R6 shares. Prior to January 1, 2018, the maximum ratio was 0.72% for Class R6 shares.

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Opportunity Portfolio

	Class IR
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 15, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	42.94		$	44.96		$	29.22		$	21.56		$	26.67
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.06	)		(0.32	)		(0.24	)		(0.09	)		(0.06	)
Net Realized and Unrealized Gain (Loss)		(17.99	)		0.40			16.50			7.75			(4.88	)
Total from Investment Operations		(18.05	)		0.08			16.26			7.66			(4.94	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(2.10	)		(0.52	)		—			(0.17	)
Net Asset Value, End of Period	$	24.89		$	42.94		$	44.96		$	29.22		$	21.56
Total Return⁽⁴⁾		(42.04	)%⁽⁷⁾		0.31	%		55.66	%		35.53	%		(18.63	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	104,389		$	154,979		$	114,510		$	73,569		$	54,284
Ratio of Expenses Before Expense Limitation		0.85	%⁽⁸⁾		0.82	%		N/A			N/A			N/A
Ratio of Expenses After Expense Limitation		0.85	%⁽⁵⁾⁽⁸⁾		0.82	%⁽⁵⁾		0.82	%⁽⁵⁾		0.84	%⁽⁵⁾		0.88	%⁽⁵⁾⁽⁸⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			0.84	%⁽⁵⁾		N/A
Ratio of Net Investment Loss		(0.42	)%⁽⁵⁾⁽⁸⁾		(0.68	)%⁽⁵⁾		(0.69	)%⁽⁵⁾		(0.35	)%⁽⁵⁾		(0.46	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		(0.01	)%⁽⁸⁾
Portfolio Turnover Rate		18	%⁽⁷⁾		21	%		22	%		15	%		28	%

(1) Not consolidated.

(2) Commencement of Offering.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Global Opportunity Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective December 31, 2020, the Fund suspended offering of Class I, Class A, Class C, Class R6 and Class IR shares to new investors with certain exceptions. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Global Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary represented approximately $23,757,000 or approximately 0.76% of the total net assets of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, 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 established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and

other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Air Freight & Logistics	$	—	$	188,753	$	—	$	188,753
Banks		112,979		243,347		—		356,326
Beverages		—		2,190		—		2,190

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)
Electronic Equipment, Instruments & Components	$	—	$	51,304	$	—	†	$	51,304	†
Entertainment		233,801		—		—			233,801
Hotels, Restaurants & Leisure		56,061		—		—			56,061
Information Technology Services		410,273		19,091		—			429,364
Interactive Media & Services		134,129		41,660		—			175,789
Internet & Direct Marketing Retail		461,330		118,098		—			579,428
Real Estate Management & Development		12,058		—		—			12,058
Road & Rail		241,479		—		—			241,479
Software		504,575		—		—			504,575
Textiles, Apparel & Luxury Goods		—		234,130		—			234,130
Total Common Stocks		2,166,685		898,573		—	†		3,065,258	†
Investment Company		20,393		—		—			20,393
Call Options Purchased		—		19		—			19
Short-Term Investment
Investment Company		73,025		—		—			73,025
Total Assets	$	2,260,103	$	898,592	$	—	†	$	3,158,695	†

† Includes a security 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.

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

	Common Stock (000)			Preferred Stock (000)
Beginning Balance	$	—		$	—	†
Purchases		—			—
Sales		—			—
Amortization of discount		—			—
Transfers in		—	†		—
Transfers out		—			(—	)†
Corporate actions		—			—
Change in unrealized appreciation (depreciation)		—			—
Realized gains (losses)		—			—
Ending Balance	$	—	†	$	—

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

				Common Stock (000)				Preferred Stock (000)
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022				$	—			$	—

† Includes a security 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.

currency transactions for the period is reflected in the Consolidated Statement of Operations.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

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

Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated Statement
of Assets and Liabilities
Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

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

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(1,536	)(b)

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

At June 30, 2022, 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(c) (000)			Liabilities(c) (000)
Purchased Options	$	19	(a)	$	—

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

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

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its contract counterparties for certain OTC derivatives in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the counterparty certain OTC derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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(d) (000)			Net Amount (not less than $0) (000)
JP Morgan Chase Bank NA	$	19	$	—	$	(19	)	$	0

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

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					1,242,250,000

5. 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

8. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis (except where collection is in doubt) 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. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $750 million				Next $750 million				Over $1.5 billion
	0.80	%			0.75	%			0.70	%

For the six months ended June 30, 2022, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.72% of the Fund's average daily net assets.

1.40% for Class L shares, 2.10% for Class C shares, 0.95% for Class R6 shares and 0.95% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $3,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

The Company 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 Distributor has agreed to waive for at least one year from the date of the Fund's prospectus or until such time that the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate, the 12b-1 fees on Class L shares of the Fund to the extent it exceeds 0.30% of the average daily net assets of such shares on an annualized basis. For the six months ended June 30, 2022, this waiver amounted to approximately $79,000.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $886,452,000 and $1,944,475,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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 Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $53,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	244,678			$	901,168			$	1,072,821			$	120

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	73,025

During the six months ended June 30, 2022, the Fund incurred approximately $11,000 in brokerage commissions with Morgan Stanley & Co. LLC, an affiliate of the Adviser/Administrator, Sub-Adviser and Distributor, for portfolio transactions executed on behalf of the Fund.

The Fund has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Director to defer payment of all, or a portion, of the fees he or she

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

receives for serving on the Board of Directors. Each eligible Director 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.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	43,647	$	298,565	$	1,952	$	80,321

Permanent differences, primarily due to net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	66,950			$	(66,950	)

At December 31, 2021, 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)
$	—			$	166,554

K. Market Risk and Risks Relating to Certain Financial Instruments:

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC 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 GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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 below its peer group average for the one-year period but better than 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 contractual management fee was higher than but close to its peer group average, and the Fund's 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management Company
23 Church Street
16-01 Capital Square, Singapore 049481

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGOSAN
4877781 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Permanence Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					7
Consolidated Statements of Changes in Net Assets					8
Consolidated Financial Highlights					9
Notes to Consolidated Financial Statements					13
Investment Advisory Agreement Approval					23
Liquidity Risk Management Program					25
U.S. Customer Privacy Notice					26
Director and Officer Information					29

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Global Permanence Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Permanence Portfolio Class I	$	1,000.00	$	755.80	$	1,019.84	$	4.35	$	5.01		1.00	%
Global Permanence Portfolio Class A		1,000.00		754.60		1,018.10		5.87		6.75		1.35
Global Permanence Portfolio Class C		1,000.00		751.90		1,014.33		9.12		10.49		2.10
Global Permanence Portfolio Class R6⁽¹⁾		1,000.00		756.00		1,020.08		4.14		4.76		0.95

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS Shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Global Permanence Portfolio

	Shares		Value (000)
Common Stocks (95.2%)
Brazil (1.2%)
Vale SA		2,945	$	43
Canada (18.1%)
Brookfield Asset Management, Inc., Class A		1,189		53
Canadian National Railway Co.		1,696		191
Constellation Software, Inc.		138		205
FirstService Corp.		451		54
Topicus.com, Inc. (a)		3,144		177
				680
Denmark (0.5%)
Chr Hansen Holding AS		259		19
France (12.2%)
Christian Dior SE		166		99
EssilorLuxottica SA		1,233		187
Hermes International		50		56
L'Oreal SA		166		58
Remy Cointreau SA		337		59
				459
India (5.2%)
HDFC Bank Ltd. ADR		3,582		197
Italy (1.4%)
Brunello Cucinelli SpA		1,168		53
Japan (1.1%)
Nintendo Co. Ltd.		100		43
Netherlands (7.4%)
ASML Holding NV		474		226
Universal Music Group NV		2,707		54
				280
United Kingdom (5.8%)
Rentokil Initial PLC		33,025		192
Victoria PLC (a)		4,625		25
				217
United States (42.3%)
Amazon.com, Inc. (a)		1,813		193
Axon Enterprise, Inc. (a)		359		33
Brown & Brown, Inc.		673		39
Danaher Corp.		142		36
Domino's Pizza, Inc.		109		42
HEICO Corp., Class A		368		39
Home Depot, Inc.		141		39
Intercontinental Exchange, Inc.		493		46
Intuitive Surgical, Inc. (a)		172		35
Linde PLC		67		19
Pool Corp.		101		35
Progressive Corp.		1,002		116
Royal Gold, Inc.		445		48
Royalty Pharma PLC, Class A		5,638		237
S&P Global, Inc.		151		51
Salesforce.com, Inc. (a)		617		102
Service Corp. International		615		43

	Shares		Value (000)
ServiceNow, Inc. (a)		314	$	149
Texas Pacific Land Corp.		52		77
UTZ Brands, Inc.		3,004		42
Veeva Systems, Inc., Class A (a)		551		109
Waste Connections, Inc.		497		62
				1,592
Total Common Stocks (Cost $3,902)				3,583
Investment Companies (1.5%)
United Kingdom (1.0%)
Hipgnosis Songs Fund Ltd.		29,524		39
United States (0.5%)
Grayscale Bitcoin Trust (a)		1,457		18
Total Investment Companies (Cost $98)				57
Short-Term Investment (1.2%)
Investment Company (1.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $44)		43,643		44
Total Investments Excluding Purchased Options (97.9%) (Cost $4,044)				3,684
Total Purchased Options Outstanding (0.0%) (b) (Cost $12)				1
Total Investments (97.9%) (Cost $4,056) (c)(d)(e)				3,685
Other Assets in Excess of Liabilities (2.1%)				78
Net Assets (100.0%)			$	3,763

(a) Non-income producing security.

(b) Amount is less than 0.05%.

(c) The approximate fair value and percentage of net assets, $884,000 and 23.5%, 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 Consolidated Notes to the Financial Statements.

(d) Securities are available for collateral in connection with purchased options.

(e) At June 30, 2022, the aggregate cost for federal income tax purposes is approximates the aggregate cost for book Purposes. The aggregate gross unrealized appreciation is approximately $171,000 and the aggregate gross unrealized depreciation is approximately $542,000, resulting in net unrealized depreciation of approximately $371,000.

ADR American Depositary Receipt.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Global Permanence Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
Goldman Sachs International	USD/CNH	CNH	7.27	Nov-22		864,568		865	$	1		$	4	$	(3	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.28	Jul-22		792,926		793		—	@		4		(4	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		372,201		372		—	@		3		(3	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		230,682		231		—	@		1		(1	)
									$	1		$	12	$	(11	)

@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Others*		36.9	%
Software		17.3
Textiles, Apparel & Luxury Goods		10.7
Commercial Services & Supplies		6.9
Pharmaceuticals		6.4
Semiconductors & Semiconductor Equipment		6.1
Banks		5.3
Internet & Direct Marketing Retail		5.2
Road & Rail		5.2
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Permanence Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $4,012)	$	3,641
Investment in Security of Affiliated Issuer, at Value (Cost $44)		44
Total Investments in Securities, at Value (Cost $4,056)		3,685
Foreign Currency, at Value (Cost $12)		12
Cash		1
Due from Adviser		52
Dividends Receivable		6
Tax Reclaim Receivable		—	@
Receivable from Affiliate		—	@
Other Assets		70
Total Assets		3,826
Liabilities:
Payable for Professional Fees		37
Payable for Investments Purchased		4
Payable for Custodian Fees		3
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class R6*		(—	@)
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Sub Transfer Agency Fees — Class I		—	@
Payable for Administration Fees		—	@
Other Liabilities		18
Total Liabilities		63
Net Assets	$	3,763
Net Assets Consist of:
Paid-in-Capital	$	4,077
Total Accumulated Loss		(314	)
Net Assets	$	3,763
CLASS I:
Net Assets	$	3,050
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		294,187
Net Asset Value, Offering and Redemption Price Per Share	$	10.37
CLASS A:
Net Assets	$	689
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		67,095
Net Asset Value, Redemption Price Per Share	$	10.27
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.57
Maximum Offering Price Per Share	$	10.84
CLASS C:
Net Assets	$	12
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,177
Net Asset Value, Offering and Redemption Price Per Share	$	10.03
CLASS R6:*
Net Assets	$	12
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,179
Net Asset Value, Offering and Redemption Price Per Share	$	10.38

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Permanence Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $2 of Foreign Taxes Withheld)	$	23
Non-Cash Dividends from Securities of Unaffiliated Issuers		4
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		27
Expenses:
Professional Fees		69
Registration Fees		20
Advisory Fees (Note B)		17
Shareholder Reporting Fees		7
Custodian Fees (Note F)		5
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Administration Fees (Note C)		2
Directors' Fees and Expenses		2
Pricing Fees		2
Shareholder Services Fees — Class A (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Sub Transfer Agency Fees — Class I		—	@
Sub Transfer Agency Fees — Class A		—	@
Other Expenses		8
Total Expenses		137
Expenses Reimbursed by Adviser (Note B)		(94	)
Waiver of Advisory Fees (Note B)		(17	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		23
Net Investment Income		4
Realized Gain (Loss):
Investments Sold		26
Foreign Currency Translation		(2	)
Net Realized Gain		24
Change in Unrealized Appreciation (Depreciation):
Investments		(1,240	)
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		(1,240	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(1,216	)
Net Decrease in Net Assets Resulting from Operations	$	(1,212	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Permanence Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	4		$	(2	)
Net Realized Gain		24			475
Net Change in Unrealized Appreciation (Depreciation)		(1,240	)		167
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,212	)		640
Dividends and Distributions to Shareholders:
Class I		—			(551	)
Class A		—			(4	)
Class C		—			(2	)
Class R6*		—			(2	)
Total Dividends and Distributions to Shareholders		—			(559	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		238			284
Distributions Reinvested		—			551
Redeemed		(147	)		(171	)
Class A:
Subscribed		1,338			27
Distributions Reinvested		—			4
Redeemed		(462	)		(20	)
Class C:
Distributions Reinvested		—			2
Class R6:*
Distributions Reinvested		—			2
Net Increase in Net Assets Resulting from Capital Share Transactions		967			679
Total Increase (Decrease) in Net Assets		(245	)		760
Net Assets:
Beginning of Period		4,008			3,248
End of Period	$	3,763		$	4,008
(1) Capital Share Transactions:
Class I:
Shares Subscribed		19			18
Shares Issued on Distributions Reinvested		—			42
Shares Redeemed		(13	)		(11	)
Net Increase in Class I Shares Outstanding		6			49
Class A:
Shares Subscribed		111			2
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(46	)		(1	)
Net Increase in Class A Shares Outstanding		65			1
Class C:
Shares Issued on Distributions Reinvested		—			—	@@
Class R6:*
Shares Issued on Distributions Reinvested		—			—	@@

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Permanence Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,						Period from April 30, 2019⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			December 31, 2019⁽¹⁾
Net Asset Value, Beginning of Period	$	13.72		$	13.41		$	10.63		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.01			(0.01	)		(0.03	)		0.04
Net Realized and Unrealized Gain (Loss)		(3.36	)		2.56			2.90			0.59
Total from Investment Operations		(3.35	)		2.55			2.87			0.63
Distributions from and/or in Excess of:
Net Investment Income		—			(0.05	)		(0.07	)		—
Net Realized Gain		—			(2.19	)		(0.02	)		—
Total Distributions		—			(2.24	)		(0.09	)		—
Net Asset Value, End of Period	$	10.37		$	13.72		$	13.41		$	10.63
Total Return⁽⁴⁾		(24.42	)%⁽⁷⁾		19.73	%		27.06	%		6.30	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,050		$	3,947		$	3,202		$	2,471
Ratio of Expenses Before Expense Limitation		6.13	%⁽⁸⁾		7.77	%		8.62	%		12.79	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.00	%⁽⁵⁾⁽⁸⁾		1.00	%⁽⁵⁾		1.00	%⁽⁵⁾		0.99	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		0.17	%⁽⁵⁾⁽⁸⁾		(0.04	)%⁽⁵⁾		(0.30	)%⁽⁵⁾		0.53	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%⁽⁸⁾
Portfolio Turnover Rate		33	%⁽⁷⁾		57	%		113	%		35	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

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

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

(5) The 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."

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Permanence Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,						Period from April 30, 2019⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			December 31, 2019⁽¹⁾
Net Asset Value, Beginning of Period	$	13.61		$	13.37		$	10.61		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.01			(0.06	)		(0.07	)		0.01
Net Realized and Unrealized Gain (Loss)		(3.35	)		2.54			2.89			0.60
Total from Investment Operations		(3.34	)		2.48			2.82			0.61
Distributions from and/or in Excess of:
Net Investment Income		—			(0.05	)		(0.04	)		—
Net Realized Gain		—			(2.19	)		(0.02	)		—
Total Distributions		—			(2.24	)		(0.06	)		—
Net Asset Value, End of Period	$	10.27		$	13.61		$	13.37		$	10.61
Total Return⁽⁴⁾		(24.54	)%⁽⁷⁾		19.27	%		26.57	%		6.10	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	689		$	29		$	19		$	11
Ratio of Expenses Before Expense Limitation		6.56	%⁽⁸⁾		17.77	%		26.08	%		30.61	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.35	%⁽⁵⁾⁽⁸⁾		1.35	%⁽⁵⁾		1.35	%⁽⁵⁾		1.34	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		0.18	%⁽⁵⁾⁽⁸⁾		(0.42	)%⁽⁵⁾		(0.65	)%⁽⁵⁾		0.17	%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%⁽⁸⁾
Portfolio Turnover Rate		33	%⁽⁷⁾		57	%		113	%		35	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Permanence Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,						Period from April 30, 2019⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			December 31, 2019⁽¹⁾
Net Asset Value, Beginning of Period	$	13.34		$	13.24		$	10.56		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.05	)		(0.16	)		(0.15	)		(0.04	)
Net Realized and Unrealized Gain (Loss)		(3.26	)		2.50			2.85			0.60
Total from Investment Operations		(3.31	)		2.34			2.70			0.56
Distributions from and/or in Excess of:
Net Investment Income		—			(0.05	)		—			—
Net Realized Gain		—			(2.19	)		(0.02	)		—
Total Distributions		—			(2.24	)		(0.02	)		—
Net Asset Value, End of Period	$	10.03		$	13.34		$	13.24		$	10.56
Total Return⁽⁴⁾		(24.81	)%⁽⁷⁾		18.39	%		25.60	%		5.60	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	12		$	16		$	13		$	11
Ratio of Expenses Before Expense Limitation		22.02	%⁽⁸⁾		24.91	%		28.45	%		31.59	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		2.10	%⁽⁵⁾⁽⁸⁾		2.10	%⁽⁵⁾		2.10	%⁽⁵⁾		2.09	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(0.94	)%⁽⁵⁾⁽⁸⁾		(1.13	)%⁽⁵⁾		(1.40	)%⁽⁵⁾		(0.57	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.01	%⁽⁸⁾
Portfolio Turnover Rate		33	%⁽⁷⁾		57	%		113	%		35	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Global Permanence Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,						Period from April 30, 2019⁽³⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽²⁾			December 31, 2019⁽²⁾
Net Asset Value, Beginning of Period	$	13.73		$	13.42		$	10.64		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽⁴⁾		0.01			0.00	⁽⁵⁾		(0.03	)		0.04
Net Realized and Unrealized Gain (Loss)		(3.36	)		2.55			2.91			0.60
Total from Investment Operations		(3.35	)		2.55			2.88			0.64
Distributions from and/or in Excess of:
Net Investment Income		—			(0.05	)		(0.08	)		—
Net Realized Gain		—			(2.19	)		(0.02	)		—
Total Distributions		—			(2.24	)		(0.10	)		—
Net Asset Value, End of Period	$	10.38		$	13.73		$	13.42		$	10.64
Total Return⁽⁶⁾		(24.40	)%⁽⁹⁾		19.71	%		27.09	%		6.40	%⁽⁹⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	12		$	16		$	14		$	11
Ratio of Expenses Before Expense Limitation		19.21	%⁽¹⁰⁾		22.49	%		26.62	%		30.53	%⁽¹⁰⁾
Ratio of Expenses After Expense Limitation		0.95	%^(7)(10)		0.95	%⁽⁷⁾		0.95	%⁽⁷⁾		0.94	%^(7)(10)
Ratio of Net Investment Income (Loss)		0.21	%^(7)(10)		0.01	%⁽⁷⁾		(0.24	)%⁽⁷⁾		0.59	%^(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%^(8)(10)		0.00	%⁽⁸⁾		0.00	%⁽⁸⁾		0.01	%⁽¹⁰⁾
Portfolio Turnover Rate		33	%⁽⁹⁾		57	%		113	%		35	%⁽⁹⁾

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

(3) Commencement of Operations.

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

(5) Amount is less than $0.005 per share.

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

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Global Permanence Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Global Permanence Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary represented approximately $17,000 or approximately 0.44% of the total net assets of the Fund.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith

by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	72	$	—	$	—	$	72
Banks		197		—		—		197
Beverages		—		59		—		59
Capital Markets		150		—		—		150
Chemicals		19		19		—		38
Commercial Services & Supplies		62		192		—		254
Distributors		35		—		—		35
Diversified Consumer Services		43		—		—		43
Entertainment		—		97		—		97
Food Products		42		—		—		42
Health Care Equipment & Supplies		35		—		—		35
Health Care Technology		109		—		—		109

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)
Hotels, Restaurants & Leisure	$	42	$	—	$	—	$	42
Household Durables		—		25		—		25
Insurance		155		—		—		155
Internet & Direct Marketing Retail		193		—		—		193
Life Sciences Tools & Services		36		—		—		36
Metals & Mining		91		—		—		91
Oil, Gas & Consumable Fuels		77		—		—		77
Personal Products		—		58		—		58
Pharmaceuticals		237		—		—		237
Real Estate Management & Development		54		—		—		54
Road & Rail		191		—		—		191
Semiconductors & Semiconductor Equipment		226		—		—		226
Software		633		—		—		633
Specialty Retail		39		—		—		39
Textiles, Apparel & Luxury Goods		—		395		—		395
Total Common Stocks		2,738		845		—		3,583
Call Options Purchased		—		1		—		1
Investment Companies		18		39		—		57
Short-Term Investment
Investment Company		44		—		—		44
Total Assets	$	2,800	$	885	$	—	$	3,685

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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

"foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

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:

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(6	)(b)

(b) Amounts are included in Realized Gain 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)	$	3	(c)

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At June 30, 2022, 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(d) (000)			Liabilities(d) (000)
Purchased Options	$	1	(a)	$	—

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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 (000)		Net Amount (not less than $0) (000)
Goldman Sachs International	$	1		$	—	$	—	$	1
JP Morgan Chase Bank NA		—	@		—		—		—	@
Total	$	1		$	—	$	—	$	1

@ Value is less than $500.

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					2,479,000

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

First $1 billion				Over $1 billion
0.80%				0.75%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $17,000 of advisory fees were waived and approximately $97,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $2,329,000 and $1,410,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	52			$	1,900			$	1,908			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	44

@ Amount is less than $500.

H. Federal Income Taxes: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly,

no provision for federal income taxes is required in the consolidated financial statements.

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 there are no significant uncertain tax positions that would require recognition in the consolidated financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Consolidated Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the two-year period ended December 31, 2021 remains subject to examination by taxing authorities.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	63	$	496	$	22	$	—

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Permanent differences, primarily due to net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$3				$(3)

At December 31, 2021, 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)
$—				$80

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$1				$1

K. Market Risk and Risks Relating to Certain Financial Instruments:

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 GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC 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 GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 period since the end of April 2019, the month of the Fund's inception. 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, actual management fee was lower than its peer group average, and total expense ratio was higher than but close to its peer group average. 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGPERMSAN
4877799 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Active International Allocation Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					7
Statement of Operations					9
Statements of Changes in Net Assets					10
Financial Highlights					12
Notes to Financial Statements					18
Investment Advisory Agreement Approval					30
Liquidity Risk Management Program					32
U.S. Customer Privacy Notice					33
Director and Officer Information					36

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Active International Allocation Portfolio (the "Fund") performed during the latest six-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Active International Allocation Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Active International Allocation Portfolio Class I	$	1,000.00	$	783.80	$	1,020.38	$	3.94	$	4.46		0.89	%
Active International Allocation Portfolio Class A		1,000.00		782.60		1,018.89		5.26		5.96		1.19
Active International Allocation Portfolio Class L		1,000.00		780.80		1,016.17		7.68		8.70		1.74
Active International Allocation Portfolio Class C		1,000.00		779.30		1,014.93		8.78		9.94		1.99
Active International Allocation Portfolio Class R6⁽¹⁾		1,000.00		783.90		1,020.63		3.72		4.21		0.84
Active International Allocation Portfolio Class IR		1,000.00		783.90		1,020.63		3.72		4.21		0.84

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Active International Allocation Portfolio

	Shares		Value (000)
Common Stocks (98.1%)
Brazil (2.1%)
Itau Unibanco Holding SA (Preference) ADR		569,163	$	2,436
Vale SA		98,551		1,442
				3,878
Canada (7.1%)
Agnico Eagle Mines Ltd. (b)		38,299		1,753
Altus Group Ltd. (b)		21,447		743
Cameco Corp.		80,731		1,697
Canadian National Railway Co.		25,292		2,844
First Quantum Minerals Ltd.		212,995		4,041
Teck Resources Ltd., Class B		58,583		1,791
				12,869
China (9.3%)
Alibaba Group Holding Ltd. ADR (a)		93,702		10,652
China Resources Beer Holdings Co. Ltd. (c)		148,000		1,106
JD.com, Inc., Class A (c)		2,719		88
Tencent Holdings Ltd. (c)		56,600		2,562
Tencent Holdings Ltd. ADR (b)		56,984		2,586
				16,994
Denmark (2.0%)
Novo Nordisk AS Series B		32,408		3,594
France (8.7%)
Air Liquide SA		8,315		1,119
Airbus SE		26,616		2,603
Capgemini SE		8,225		1,418
Dassault Systemes SE		24,056		891
Euroapi SA (a)		948		15
Hermes International		398		448
Kering SA		1,736		900
L'Oreal SA		3,251		1,129
Legrand SA		5,618		417
LVMH Moet Hennessy Louis Vuitton SE		1,928		1,182
Pernod Ricard SA	��	5,748		1,063
Sanofi		21,640		2,182
Technip Energies NV		89,348		1,120
TotalEnergies SE		26,502		1,395
				15,882
Germany (11.2%)
Allianz SE (Registered)		12,665		2,428
Bayer AG (Registered)		135,200		8,074
CTS Eventim AG & Co. KGaA (a)		10,845		572
Infineon Technologies AG		45,493		1,107
Jungheinrich AG (Preference)		30,168		662
KION Group AG		39,800		1,666
Linde PLC (a)		12,198		3,509
Siemens Healthineers AG		46,295		2,360
				20,378

	Shares		Value (000)
India (3.2%)
Apollo Hospitals Enterprise Ltd.		19,570	$	916
HDFC Bank Ltd. ADR		13,916		765
ICICI Bank Ltd.		112,650		1,012
ICICI Prudential Life Insurance Co. Ltd.		124,084		771
Reliance Industries Ltd.		41,627		1,374
State Bank of India		160,866		954
				5,792
Japan (8.4%)
FANUC Corp.		4,450		697
Hoya Corp.		6,500		556
Keyence Corp.		5,600		1,920
Nikon Corp.		380,600		4,389
Shimano, Inc.		3,750		632
Shiseido Co. Ltd. (b)		8,700		351
SMC Corp.		1,905		848
Sony Group Corp.		30,893		2,520
Sony Group Corp. ADR (b)		22,419		1,833
Tokyo Electron Ltd.		3,400		1,110
Unicharm Corp.		11,300		379
				15,235
Korea, Republic of (2.4%)
Samsung Electronics Co. Ltd.		100,658		4,440
Malta (0.0%) (d)
BGP Holdings PLC (a)(e)		72,261		—	@
Netherlands (6.1%)
Akzo Nobel NV		11,519		753
ASML Holding NV		4,316		2,039
Koninklijke Philips NV		114,445		2,454
Prosus NV		51,530		3,337
Universal Music Group NV		78,094		1,565
Wolters Kluwer NV		9,572		928
				11,076
Norway (0.7%)
Adevinta ASA (a)		163,436		1,203
Singapore (2.8%)
Sea Ltd. ADR (a)		75,209		5,029
South Africa (0.7%)
Impala Platinum Holdings Ltd.		61,264		680
Sibanye Stillwater Ltd.		218,096		541
Thungela Resources Ltd. (b)		7,754		110
				1,331
Spain (0.6%)
Amadeus IT Group SA (a)		20,260		1,135
Sweden (0.1%)
Atlas Copco AB, Class A		24,584		230
Switzerland (1.8%)
Givaudan SA (Registered)		210		740
Nestle SA (Registered)		22,368		2,614
				3,354

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments (cont'd)

Active International Allocation Portfolio

	Shares		Value (000)
Taiwan (3.3%)
Airtac International Group		28,000	$	935
Taiwan Semiconductor Manufacturing Co. Ltd.		204,000		3,269
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		22,387		1,830
				6,034
United Kingdom (16.3%)
Anglo American PLC		33,334		1,192
AstraZeneca PLC		35,619		4,699
Diageo PLC		64,376		2,780
Experian PLC		81,779		2,401
Glencore PLC		1,395,394		7,558
Keywords Studios PLC		25,784		689
Sage Group PLC		62,088		481
Shell PLC		183,198		4,771
Unilever PLC		38,608		1,754
Unilever PLC ADR		10,907		500
Unilever PLC CVA		60,799		2,771
				29,596
United States (11.3%)
Air Products & Chemicals, Inc.		4,002		962
Charles River Laboratories International, Inc. (a)		3,720		796
Despegar.com Corp. (a)		511,302		4,142
Estee Lauder Cos., Inc. Class A		4,378		1,115
Farfetch Ltd., Class A (a)		232,446		1,664
Koninklijke Philips NV		11,695		252
Medtronic PLC		23,914		2,146
MercadoLibre, Inc. (a)		2,062		1,313
Newmont Corp. (NYSE)		24,664		1,468
Newmont Corp. (TSX)		38,526		2,299
Schlumberger NV		61,314		2,193
Vertex Pharmaceuticals, Inc. (a)		8,022		2,260
				20,610
Total Common Stocks (Cost $161,516)				178,660
Preferred Stock (0.6%)
United States (0.6%)
Neurogenesis Ltd. Series A (acquisition cost — $1,250; acquired 12/16/21) (e) (Cost $1,250)		30,697		1,174
Investment Company (0.4%)
United States (0.4%)
Morgan Stanley China A Share Fund, Inc. (See Note G) (Cost $1,067)		46,002		779
Short-Term Investments (2.2%)
Securities held as Collateral on Loaned Securities (1.5%)
Investment Company (1.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		2,182,932		2,183

	Face Amount (000)		Value (000)
Repurchase Agreements (0.3%)
HSBC Securities USA, Inc., (1.50%, dated 6/30/22, due 7/1/22; proceeds $171; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 2/15/23 - 5/15/32; valued at $174)	$	171	$	171
Merrill Lynch & Co., Inc., (1.46%, dated 6/30/22, due 7/1/22; proceeds $330; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $337)		330		330
				501
Total Securities held as Collateral on Loaned Securities (Cost $2,684)				2,684
	Shares
Investment Company (0.7%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $1,188)		1,188,291		1,188
Total Short-Term Investments (Cost $3,872)				3,872
Total Investments Excluding Purchased Options (101.3%) (Cost $167,705)				184,485
Total Purchased Options Outstanding (0.1%) (Cost $1,209)				52
Total Investments (101.4%) (Cost $168,914) Including $5,181 of Securities Loaned (f)(g)(h)				184,537
Liabilities in Excess of Other Assets (–1.4%)				(2,479	)
Net Assets (100.0%)			$	182,058

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2022.

(d) Amount is less than 0.05%.

(e) At June 30, 2022, the Fund held a fair valued security at approximately $1,174,000, representing 0.6% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(f) Securities are available for collateral in connection with open foreign currency forward exchange contracts and purchased options.

(g) The approximate fair value and percentage of net assets, $118,093,000 and 64.9%, 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 the Financial Statements.

(h) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for the book purposes. The aggregate gross unrealized appreciation is approximately $38,039,000 and the aggregate gross unrealized depreciation is approximately $22,403,000, resulting in net unrealized appreciation of approximately $15,636,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments (cont'd)

Active International Allocation Portfolio

@ Value is less than $500.

ADR American Depositary Receipt.

CVA Certificaten Van Aandelen.

NYSE New York Stock Exchange.

TSX Toronto Stock Exchange.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty				Description				Strike Price				Expiration Date				Number of Contracts				Notional Amount (000)				Value (000)				Premiums Paid (000)				Unrealized Depreciation (000)
Goldman Sachs International					USD/CNH			CNH	50			Aug-22					780,000				780			$	52			$	1,209			$	(1,157	)

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at June 30, 2022:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
Citibank NA	EUR	1,593	$	1,673	9/15/22	$	(5	)
State Street Bank and Trust Co.	$	2,279	GBP	1,894	9/15/22		29
State Street Bank and Trust Co.	$	1,585	JPY	212,626	9/15/22		(11	)
						$	13

CNH — Chinese Yuan Renminbi Offshore

EUR — Euro

GBP — British Pound

JPY — Japanese Yen

USD — United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Others**		57.6	%
Metals & Mining		12.5
Pharmaceuticals		10.2
Internet & Direct Marketing Retail		9.4
Semiconductors & Semiconductor Equipment		5.2
Oil, Gas & Consumable Fuels		5.1
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

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

*** Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $13,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Active International Allocation Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $164,476)	$	180,387
Investment in Security of Affiliated Issuer, at Value (Cost $4,438)		4,150
Total Investments in Securities, at Value (Cost $168,914)		184,537
Foreign Currency, at Value (Cost $240)		218
Cash		13
Cash from Securities Lending		145
Tax Reclaim Receivable		313
Dividends Receivable		132
Receivable for Fund Shares Sold		53
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		29
Receivable from Securities Lending Income		2
Due from Broker		27
Receivable from Affiliate		1
Other Assets		111
Total Assets		185,581
Liabilities:
Collateral on Securities Loaned, at Value		2,829
Payable for Advisory Fees		265
Deferred Capital Gain Country Tax		169
Due to Broker		110
Payable for Sub Transfer Agency Fees		—	@
Payable for Sub Transfer Agency Fees — Class I		20
Payable for Sub Transfer Agency Fees — Class A		11
Payable for Sub Transfer Agency Fees — Class L		1
Payable for Sub Transfer Agency Fees — Class C		—	@
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		16
Payable for Shareholder Services Fees — Class A		12
Payable for Distribution and Shareholder Services Fees — Class L		3
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Custodian Fees		15
Payable for Fund Shares Redeemed		13
Payable for Administration Fees		12
Payable for Professional Fees		11
Payable for Transfer Agency Fees		—	@
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		2
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		—	@
Payable for Transfer Agency Fees — Class IR		—	@
Other Liabilities		30
Total Liabilities		3,523
Net Assets	$	182,058
Net Assets Consist of:
Paid-in-Capital	$	159,281
Total Distributable Earnings		22,777
Net Assets	$	182,058

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Active International Allocation Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	123,210
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		8,780,365
Net Asset Value, Offering and Redemption Price Per Share	$	14.03
CLASS A:
Net Assets	$	54,116
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,775,771
Net Asset Value, Redemption Price Per Share	$	14.33
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.79
Maximum Offering Price Per Share	$	15.12
CLASS L:
Net Assets	$	4,080
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		287,854
Net Asset Value, Offering and Redemption Price Per Share	$	14.18
CLASS C:
Net Assets	$	556
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		39,422
Net Asset Value, Offering and Redemption Price Per Share	$	14.09
CLASS R6:*
Net Assets	$	85
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		6,048
Net Asset Value, Offering and Redemption Price Per Share	$	14.04
CLASS IR:
Net Assets	$	11
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		800
Net Asset Value, Offering and Redemption Price Per Share	$	14.04
⁽¹⁾ Including: Securities on Loan, at Value:	$	5,181

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Active International Allocation Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $236 of Foreign Taxes Withheld)	$	2,444
Income from Securities Loaned — Net		10
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		2,455
Expenses:
Advisory Fees (Note B)		687
Shareholder Services Fees — Class A (Note D)		79
Distribution and Shareholder Services Fees — Class L (Note D)		18
Distribution and Shareholder Services Fees — Class C (Note D)		3
Administration Fees (Note C)		85
Sub Transfer Agency Fees — Class I		55
Sub Transfer Agency Fees — Class A		26
Sub Transfer Agency Fees — Class L		2
Sub Transfer Agency Fees — Class C		—	@
Professional Fees		75
Registration Fees		45
Custodian Fees (Note F)		25
Shareholder Reporting Fees		21
Transfer Agency Fees — Class I (Note E)		5
Transfer Agency Fees — Class A (Note E)		5
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Transfer Agency Fees — Class IR (Note E)		1
Pricing Fees		4
Directors' Fees and Expenses		3
Interest Expenses		1
Other Expenses		11
Total Expenses		1,155
Waiver of Advisory Fees (Note B)		(57	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(24	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(7	)
Net Expenses		1,064
Net Investment Income		1,391
Realized Gain (Loss):
Investments Sold		7,301
Foreign Currency Forward Exchange Contracts		(378	)
Foreign Currency Translation		(62	)
Futures Contracts		675
Net Realized Gain		7,536
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $58)		(59,623	)
Investments in Affiliates		(160	)
Foreign Currency Forward Exchange Contracts		(3	)
Foreign Currency Translation		(46	)
Net Change in Unrealized Appreciation (Depreciation)		(59,832	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(52,296	)
Net Decrease in Net Assets Resulting from Operations	$	(50,905	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Active International Allocation Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,391		$	1,791
Net Realized Gain		7,536			18,612
Net Change in Unrealized Appreciation (Depreciation)		(59,832	)		(15,214	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(50,905	)		5,189
Dividends and Distributions to Shareholders:
Class I		—			(11,586	)
Class A		—			(5,407	)
Class L		—			(381	)
Class C		—			(50	)
Class R6*		—			(2	)
Class IR		—			(1	)
Total Dividends and Distributions to Shareholders		—			(17,427	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		42,406			96,854
Distributions Reinvested		—			11,451
Redeemed		(38,898	)		(92,525	)
Class A:
Subscribed		5,250			22,358
Distributions Reinvested		—			5,349
Redeemed		(7,372	)		(21,357	)
Class L:
Exchanged		28			62
Distributions Reinvested		—			373
Redeemed		(238	)		(386	)
Class C:
Subscribed		114			789
Distributions Reinvested		—			50
Redeemed		(214	)		(94	)
Class R6:*
Subscribed		70			23
Distributions Reinvested		—			2
Redeemed		(3	)		(4	)
Class IR:
Distributions Reinvested		—			1
Net Increase in Net Assets Resulting from Capital Share Transactions		1,143			22,946
Total Increase (Decrease) in Net Assets		(49,762	)		10,708
Net Assets:
Beginning of Period		231,820			221,112
End of Period	$	182,058		$	231,820

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Active International Allocation Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		2,626			4,920
Shares Issued on Distributions Reinvested		—			661
Shares Redeemed		(2,436	)		(4,666	)
Net Increase in Class I Shares Outstanding		190			915
Class A:
Shares Subscribed		309			1,104
Shares Issued on Distributions Reinvested		—			302
Shares Redeemed		(446	)		(1,051	)
Net Increase (Decrease) in Class A Shares Outstanding		(137	)		355
Class L:
Shares Exchanged		1			3
Shares Issued on Distributions Reinvested		—			21
Shares Redeemed		(15	)		(19	)
Net Increase (Decrease) in Class L Shares Outstanding		(14	)		5
Class C:
Shares Subscribed		7			40
Shares Issued on Distributions Reinvested		—			3
Shares Redeemed		(13	)		(5	)
Net Increase (Decrease) in Class C Shares Outstanding		(6	)		38
Class R6:*
Shares Subscribed		4			1
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(—	@@)		(—	@@)
Net Increase in Class R6 Shares Outstanding		4			1
Class IR:
Shares Issued on Distributions Reinvested		—			—	@@

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Active International Allocation Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	17.91		$	19.03		$	14.59		$	12.07		$	14.46		$	11.83
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.11			0.17			0.04			0.16			0.23			0.19
Net Realized and Unrealized Gain (Loss)		(3.99	)		0.24			4.41			2.54			(2.41	)		2.74
Total from Investment Operations		(3.88	)		0.41			4.45			2.70			(2.18	)		2.93
Distributions from and/or in Excess of:
Net Investment Income		—			(0.23	)		(0.01	)		(0.18	)		(0.21	)		(0.30	)
Net Realized Gain		—			(1.30	)		—			—			—			—
Total Distributions		—			(1.53	)		(0.01	)		(0.18	)		(0.21	)		(0.30	)
Redemption Fees		—			—			—			0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	14.03		$	17.91		$	19.03		$	14.59		$	12.07		$	14.46
Total Return⁽³⁾		(21.62	)%⁽⁵⁾		2.33	%		30.48	%		22.41	%		(15.14	)%		24.76	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	123,210		$	153,810		$	146,087		$	126,860		$	119,925		$	155,550
Ratio of Expenses Before Expense Limitation		0.99	%⁽⁶⁾		0.95	%		1.02	%		0.97	%		0.97	%		1.14	%
Ratio of Expenses After Expense Limitation		0.89	%⁽⁴⁾⁽⁶⁾		0.89	%⁽⁴⁾		0.89	%⁽⁴⁾		0.89	%⁽⁴⁾		0.88	%⁽⁴⁾		0.88	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.89	%⁽⁴⁾⁽⁶⁾		0.89	%⁽⁴⁾		0.89	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		1.43	%⁽⁴⁾⁽⁶⁾		0.87	%⁽⁴⁾		0.24	%⁽⁴⁾		1.22	%⁽⁴⁾		1.67	%⁽⁴⁾		1.44	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.02	%		0.02	%
Portfolio Turnover Rate		15	%⁽⁵⁾		39	%		37	%		34	%		43	%		22	%

(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.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Active International Allocation Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	18.32		$	19.43		$	14.94		$	12.36		$	14.79		$	12.10
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.09			0.11			(0.01	)		0.11			0.19			0.14
Net Realized and Unrealized Gain (Loss)		(4.08	)		0.25			4.51			2.61			(2.46	)		2.80
Total from Investment Operations		(3.99	)		0.36			4.50			2.72			(2.27	)		2.94
Distributions from and/or in Excess of:
Net Investment Income		—			(0.17	)		(0.01	)		(0.14	)		(0.16	)		(0.25	)
Net Realized Gain		—			(1.30	)		—			—			—			—
Total Distributions		—			(1.47	)		(0.01	)		(0.14	)		(0.16	)		(0.25	)
Redemption Fees		—			—			—			0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	14.33		$	18.32		$	19.43		$	14.94		$	12.36		$	14.79
Total Return⁽³⁾		(21.74	)%⁽⁵⁾		2.03	%		30.10	%		22.00	%		(15.38	)%		24.29	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	54,116		$	71,668		$	69,135		$	58,339		$	50,726		$	65,710
Ratio of Expenses Before Expense Limitation		1.25	%⁽⁶⁾		1.22	%		1.31	%		1.25	%		1.26	%		1.48	%
Ratio of Expenses After Expense Limitation		1.19	%⁽⁴⁾⁽⁶⁾		1.18	%⁽⁴⁾		1.19	%⁽⁴⁾		1.22	%⁽⁴⁾		1.19	%⁽⁴⁾		1.23	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.19	%⁽⁴⁾⁽⁶⁾		1.18	%⁽⁴⁾		1.19	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		1.12	%⁽⁴⁾⁽⁶⁾		0.55	%⁽⁴⁾		(0.06	)%⁽⁴⁾		0.82	%⁽⁴⁾		1.37	%⁽⁴⁾		1.02	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.02	%		0.02	%
Portfolio Turnover Rate		15	%⁽⁵⁾		39	%		37	%		34	%		43	%		22	%

(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.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Active International Allocation Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	18.16		$	19.27		$	14.90		$	12.32		$	14.73		$	12.04
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.05			0.00	⁽²⁾		(0.09	)		0.05			0.13			0.07
Net Realized and Unrealized Gain (Loss)		(4.03	)		0.24			4.47			2.59			(2.46	)		2.79
Total from Investment Operations		(3.98	)		0.24			4.38			2.64			(2.33	)		2.86
Distributions from and/or in Excess of:
Net Investment Income		—			(0.05	)		(0.01	)		(0.06	)		(0.08	)		(0.17	)
Net Realized Gain		—			(1.30	)		—			—			—			—
Total Distributions		—			(1.35	)		(0.01	)		(0.06	)		(0.08	)		(0.17	)
Redemption Fees		—			—			—			0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	14.18		$	18.16		$	19.27		$	14.90		$	12.32		$	14.73
Total Return⁽³⁾		(21.92	)%⁽⁵⁾		1.48	%		29.38	%		21.43	%		(15.87	)%		23.80	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,080		$	5,475		$	5,718		$	4,644		$	4,375		$	6,463
Ratio of Expenses Before Expense Limitation		1.80	%⁽⁶⁾		1.76	%		1.86	%		1.81	%		1.76	%		2.07	%
Ratio of Expenses After Expense Limitation		1.74	%⁽⁴⁾⁽⁶⁾		1.74	%⁽⁴⁾		1.74	%⁽⁴⁾		1.74	%⁽⁴⁾		1.69	%⁽⁴⁾		1.73	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.74	%⁽⁴⁾⁽⁶⁾		1.74	%⁽⁴⁾		1.74	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.57	%⁽⁴⁾⁽⁶⁾		0.02	%⁽⁴⁾		(0.61	)%⁽⁴⁾		0.35	%⁽⁴⁾		0.92	%⁽⁴⁾		0.54	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.02	%		0.02	%
Portfolio Turnover Rate		15	%⁽⁵⁾		39	%		37	%		34	%		43	%		22	%

(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.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Active International Allocation Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	18.08		$	19.22		$	14.89		$	12.34		$	14.77		$	12.15
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.02			(0.02	)		(0.12	)		0.00	⁽²⁾		0.09			(0.00	)⁽²⁾
Net Realized and Unrealized Gain (Loss)		(4.01	)		0.21			4.46			2.59			(2.45	)		2.83
Total from Investment Operations		(3.99	)		0.19			4.34			2.59			(2.36	)		2.83
Distributions from and/or in Excess of:
Net Investment Income		—			(0.03	)		(0.01	)		(0.04	)		(0.07	)		(0.21	)
Net Realized Gain		—			(1.30	)		—			—			—			—
Total Distributions		—			(1.33	)		(0.01	)		(0.04	)		(0.07	)		(0.21	)
Redemption Fees		—			—			—			0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	14.09		$	18.08		$	19.22		$	14.89		$	12.34		$	14.77
Total Return⁽³⁾		(22.07	)%⁽⁵⁾		1.23	%		29.13	%		21.03	%		(16.04	)%		23.42	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	556		$	821		$	144		$	45		$	42		$	23
Ratio of Expenses Before Expense Limitation		2.35	%⁽⁶⁾		2.36	%		5.66	%		7.49	%		7.18	%		20.06	%
Ratio of Expenses After Expense Limitation		1.99	%⁽⁴⁾⁽⁶⁾		1.99	%⁽⁴⁾		1.99	%⁽⁴⁾		1.99	%⁽⁴⁾		1.98	%⁽⁴⁾		1.97	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.00	%⁽⁴⁾⁽⁶⁾		1.99	%⁽⁴⁾		1.99	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.26	%⁽⁴⁾⁽⁶⁾		(0.09	)%⁽⁴⁾		(0.81	)%⁽⁴⁾		0.03	%⁽⁴⁾		0.67	%⁽⁴⁾		(0.03	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.02	%		0.03	%
Portfolio Turnover Rate		15	%⁽⁵⁾		39	%		37	%		34	%		43	%		22	%

(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.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Active International Allocation Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,						Period from October 31, 2019⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020			December 31, 2019
Net Asset Value, Beginning of Period	$	17.91		$	19.04		$	14.59		$	13.79
Income (Loss) from Investment Operations:
Net Investment Income⁽³⁾		0.14			0.18			0.04			0.00	⁽⁴⁾
Net Realized and Unrealized Gain (Loss)		(4.01	)		0.23			4.42			0.98
Total from Investment Operations		(3.87	)		0.41			4.46			0.98
Distributions from and/or in Excess of:
Net Investment Income		—			(0.24	)		(0.01	)		(0.18	)
Net Realized Gain		—			(1.30	)		—			—
Total Distributions		—			(1.54	)		(0.01	)		(0.18	)
Net Asset Value, End of Period	$	14.04		$	17.91		$	19.04		$	14.59
Total Return⁽⁵⁾		(21.61	)%⁽⁷⁾		2.39	%		30.55	%		7.15	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	85		$	32		$	14		$	11
Ratio of Expenses Before Expense Limitation		3.93	%⁽⁸⁾		10.73	%		21.16	%		14.33	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.84	%⁽⁶⁾⁽⁸⁾		0.84	%⁽⁶⁾		0.84	%⁽⁶⁾		0.84	%⁽⁶⁾⁽⁸⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.84	%⁽⁶⁾⁽⁸⁾		0.84	%⁽⁶⁾		0.84	%⁽⁶⁾		N/A
Ratio of Net Investment Income		1.83	%⁽⁶⁾⁽⁸⁾		0.89	%⁽⁶⁾		0.28	%⁽⁶⁾		0.18	%⁽⁶⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		15	%⁽⁷⁾		39	%		37	%		34	%

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Offering.

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

(4) Amount is less than $0.005 per share.

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

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Active International Allocation Portfolio

	Class IR
	Six Months Ended June 30, 2022			Year Ended December 31,						Period from October 31, 2019⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020			December 31, 2019
Net Asset Value, Beginning of Period	$	17.91		$	19.04		$	14.59		$	13.79
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.12			0.18			0.04			0.00	⁽³⁾
Net Realized and Unrealized Gain (Loss)		(3.99	)		0.23			4.42			0.98
Total from Investment Operations		(3.87	)		0.41			4.46			0.98
Distributions from and/or in Excess of:
Net Investment Income		—			(0.24	)		(0.01	)		(0.18	)
Net Realized Gain		—			(1.30	)		—			—
Total Distributions		—			(1.54	)		(0.01	)		(0.18	)
Net Asset Value, End of Period	$	14.04		$	17.91		$	19.04		$	14.59
Total Return⁽⁴⁾		(21.61	)%⁽⁶⁾		2.39	%		30.55	%		7.15	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	11		$	14		$	14		$	11
Ratio of Expenses Before Expense Limitation		18.81	%⁽⁷⁾		14.38	%		20.70	%		14.33	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		0.84	%⁽⁵⁾⁽⁷⁾		0.84	%⁽⁵⁾		0.84	%⁽⁵⁾		0.84	%⁽⁵⁾⁽⁷⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		0.84	%⁽⁵⁾⁽⁷⁾		0.84	%⁽⁵⁾		0.84	%⁽⁵⁾		N/A
Ratio of Net Investment Income		1.48	%⁽⁵⁾⁽⁷⁾		0.92	%⁽⁵⁾		0.29	%⁽⁵⁾		0.18	%⁽⁵⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		0.01	%		0.01	%		0.01	%⁽⁷⁾
Portfolio Turnover Rate		15	%⁽⁶⁾		39	%		37	%		34	%

(1) Commencement of Offering.

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

(3) Amount is less than $0.005 per share.

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

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Active International Allocation Portfolio. The Fund seeks long-term capital appreciation.

("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

unavailable, at the last sale price on the exchange; (6) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (7) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

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

("ASC 820"), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	—	$	2,603	$	—		$	2,603
Banks		3,201		1,966		—			5,167
Beverages		—		4,949		—			4,949
Biotechnology		2,260		—		—			2,260
Chemicals		962		6,121		—			7,083
Electrical Equipment		—		417		—			417
Electronic Equipment, Instruments & Components		—		1,920		—			1,920
Energy Equipment & Services		2,193		1,120		—			3,313
Entertainment		5,029		2,137		—			7,166
Food Products		—		2,614		—			2,614
Health Care Equipment & Supplies		2,398		5,370		—			7,768
Health Care Providers & Services		—		916		—			916
Hotels, Restaurants & Leisure		4,142		—		—			4,142
Household Durables		1,833		6,909		—			8,742
Household Products		—		379		—			379
Information Technology Services		—		3,242		—			3,242
Insurance		—		3,199		—			3,199
Interactive Media & Services		2,586		3,765		—			6,351
Internet & Direct Marketing Retail		13,629		3,425		—			17,054
Leisure Products		—		632		—			632
Life Sciences Tools & Services		796		—		—			796
Machinery		—		5,038		—			5,038
Metals & Mining		12,794		9,971		—			22,765
Oil, Gas & Consumable Fuels		1,697		7,650		—			9,347
Personal Products		1,615		6,005		—			7,620
Pharmaceuticals		15		18,549		—			18,564
Professional Services		—		3,329		—			3,329
Real Estate Management & Development		743		—		—	@		743
Road & Rail		2,844		—		—			2,844
Semiconductors & Semiconductor Equipment		1,830		7,525		—			9,355
Software		—		1,372		—			1,372
Tech Hardware, Storage & Peripherals		—		4,440		—			4,440
Textiles, Apparel & Luxury Goods		—		2,530		—			2,530
Total Common Stocks		60,567		118,093		—	@		178,660

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Preferred Stock
Biotechnology	$	—	$	—		$	1,174	$	1,174
Investment Company		779		—			—		779
Call Options Purchased		—		52			—		52
Short-Term Investments
Investment Company		3,371		—			—		3,371
Repurchase Agreements		—		501			—		501
Total Short-Term Investments		3,371		501			—		3,872
Foreign Currency Forward Exchange Contract		—		29			—		29
Total Assets		64,717		118,675			1,174		184,566
Liabilities:
Foreign Currency Forward Exchange Contracts		—		(16	)		—		(16	)
Total	$	64,717	$	118,659		$	1,174	$	184,550

@ 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)			Preferred Stock (000)
Beginning Balance	$	—	@	$	1,250
Purchases		—			—
Sales		—			—
Amortization of discount		—			—
Transfers in		—			—
Transfers out		—			—
Corporate actions		—			—
Change in unrealized appreciation (depreciation)		—	@		(76	)
Realized gains (losses)		—			—
Ending Balance	$	—	@	$	1,174
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022	$	—	@	$	(76	)

@ Value is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to 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 June 30, 2022:

Fair Value at
June 30, 2022
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

Common Stock

—

Market Transaction
Method

Transaction Valuation

0.003

Increase

Preferred Stock

1,174

Market Transaction
Method

Precedent Transaction

38.24

Increase

@ Amount is less than $500.

* Amount is indicative of the weighted average.

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.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

5. Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

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

Options: With respect to options, the Fund is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If the Fund buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium paid by the Fund. The Fund may purchase and/or sell put and call options. Purchasing call options tends to increase the Fund's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Fund's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Fund bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Fund may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Statement of Assets and Liabilities. Premium paid for purchasing options which expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. The Fund

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

may write call and put options on stock indexes, futures, securities or currencies it owns or in which it may invest. Writing put options tend to increase the Fund's exposure to the underlying instrument. Writing call options tend to decrease the Fund's exposure to the underlying instruments. When the Fund writes a call or put option, an amount equal to the premium received is recorded as a liability. Any liability recorded is subsequently adjusted to reflect the current value of the options written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the net realized gain or loss. The Fund as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events.

In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return and the potential loss from futures contracts can exceed the Fund's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Fund of margin deposits in the event of bankruptcy of a broker with which the Fund has open positions in the futures contract.

As of June 30, 2022, the Fund did not have any open futures contracts.

Foreign Currency Forward Exchange Contracts: In connection with its investments in foreign securities, the Fund also entered into contracts with banks, brokers or dealers to purchase or sell securities or foreign currencies at a future date. A foreign currency forward exchange contract ("currency contract") is a negotiated agreement between the contracting parties to exchange a specified amount of currency at a specified future time at a specified rate. The rate can be higher or lower than the spot rate between the currencies that are the subject of the contract. Currency contracts may be used to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contract

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contract

Currency Risk

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

Total

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contracts

Unrealized Depreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

(16

)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(378	)
Equity Risk	Futures Contracts		675
	Total	$	297
Change in Unrealized Depreciation
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(3	)
Currency Risk	Investments (Purchased Options)		(1,157	)(b)
	Total	$	(1,160	)

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Statement of Operations.

At June 30, 2022, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives	Assets(d) (000)			Liabilities(d) (000)
Foreign Currency Forward Exchange Contracts(c)	$	29		$	(16	)
Purchased Options		52	(a)		—
Total	$	81		$	(16	)

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received(e) (000)			Net Amount (not less than $0) (000)
Goldman Sachs International	$	52	(a)	$	—		$	(52	)	$	0
State Street Bank and Trust Co.		29			(11	)		—			18
Total	$	81		$	(11	)	$	(52	)	$	18
Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged(e) (000)			Net Amount (not less than $0) (000)
Citibank NA	$	5		$	—		$	—		$	5
State Street Bank and Trust Co.		11			(11	)		—			0
Total	$	16		$	(11	)	$	—		$	5

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

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	5,998,000
Futures Contracts:
Average monthly notional value	$	18,431,000
Purchased Options:
Average monthly notional amount		650,000

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.

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 June 30, 2022:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	5,181	(f)	$	—	$	(5,181	)(g)(h)	$	0

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

(g) The Fund received cash collateral of approximately $2,829,000, of which approximately $2,684,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $145,000, which is not reflected in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $2,652,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

contractual maturity of those transactions as of June 30, 2022:

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	$	2,829	$	—	$	—	$	—	$	2,829
Total Borrowings	$	2,829	$	—	$	—	$	—	$	2,829
Gross amount of recognized liabilities for securities lending transactions									$	2,829

9. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.65	%			0.60	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.59% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.90% for Class I shares, 1.25% for Class A shares, 1.75% for Class L shares, 2.00% for Class C shares, 0.85% for Class R6 shares and 0.85% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $57,000 of advisory fees were waived and approximately $27,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $38,658,000 and $31,577,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $6,000 relating to the Fund's investment in the Liquidity Funds.

The Fund invests in Morgan Stanley China A Share Fund, Inc., a closed-end management investment company advised by an affiliate of the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Morgan Stanley China A Share Fund, Inc. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Morgan Stanley China A Share Fund, Inc.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company/ Issuer	Value December 31, 2021 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	6,589	$	44,110	$	47,328	$	1
Morgan Stanley China A Share Fund		939		—		—		—
Total	$	7,528	$	44,110	$	47,328	$	1

Affiliated Investment Company/ Issuer (cont'd)	Realized Gain (Loss) (000)		Change in Unrealized Appreciation (Depreciation) (000)			Value June 30, 2022 (000)
Liquidity Funds	$	—	$	—		$	3,371
Morgan Stanley China A Share Fund		—		(160	)		779
Total	$	—	$	(160	)	$	4,150

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)
$	2,260	$	15,167	$	85

Permanent differences, due to an overdistribution of dividends for tax purposes, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	—	@		$	(—	@)

@ Amount is less than $500.

At December 31, 2021, 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)
$	—			$	908

During the year ended December 31, 2021, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $3,422,000.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

including (i) the duration and spread of the outbreak, (ii) the restrictions and advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 below 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. 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIAIASAN
4878984 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Real Estate Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					8
Statements of Changes in Net Assets					9
Financial Highlights					11
Notes to Financial Statements					17
Investment Advisory Agreement Approval					26
Liquidity Risk Management Program					28
U.S. Customer Privacy Notice					29
Director and Officer Information					32

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Global Real Estate Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Real Estate Portfolio Class I	$	1,000.00	$	787.30	$	1,019.84	$	4.43	$	5.01		1.00	%
Global Real Estate Portfolio Class A		1,000.00		786.70		1,018.10		5.98		6.76		1.35
Global Real Estate Portfolio Class L		1,000.00		784.30		1,015.62		8.18		9.25		1.85
Global Real Estate Portfolio Class C		1,000.00		782.60		1,014.38		9.28		10.49		2.10
Global Real Estate Portfolio Class R6⁽¹⁾		1,000.00		787.00		1,020.13		4.16		4.71		0.94
Global Real Estate Portfolio Class IR		1,000.00		787.00		1,020.13		4.16		4.71		0.94

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Global Real Estate Portfolio

	Shares		Value (000)
Common Stocks (98.6%)
Australia (2.9%)
Dexus REIT		59,675	$	367
GPT Group REIT		99,952		292
National Storage REIT		236,015		350
Shopping Centres Australasia Property Group REIT		147,273		281
Vicinity Centres REIT		173,768		221
				1,511
Austria (0.4%)
CA Immobilien Anlagen AG		5,805		185
Belgium (0.7%)
Aedifica SA REIT		1,346		129
Warehouses De Pauw CVA REIT		6,803		215
				344
Canada (2.4%)
Chartwell Retirement Residences		38,681		335
InterRent REIT		36,690		342
Tricon Residential, Inc.		53,409		541
				1,218
China (0.4%)
GDS Holdings Ltd. ADR (a)		3,829		128
Longfor Group Holdings Ltd. (b)		19,000		90
				218
Finland (0.5%)
Kojamo Oyj		14,529		252
France (0.9%)
Klepierre SA REIT (a)		12,838		248
Mercialys SA REIT		27,810		226
				474
Germany (1.6%)
Grand City Properties SA		16,424		222
Vonovia SE		20,107		622
				844
Hong Kong (5.4%)
CK Asset Holdings Ltd.		120,500		856
Link REIT		117,074		957
Sun Hung Kai Properties Ltd.		70,367		833
Wharf Real Estate Investment Co., Ltd.		25,075		120
				2,766
Japan (10.6%)
Daiwa Office Investment Corp. REIT		52		267
Frontier Real Estate Investment Corp. REIT		62		240
GLP J-REIT		276		338
Hoshino Resorts, Inc. REIT		48		232
Japan Metropolitan Fund Investment Corp. REIT		521		406
Japan Real Estate Investment Corp. REIT		105		484
Mitsubishi Estate Co., Ltd.		60,400		875
Mitsui Fudosan Co., Ltd.		45,900		986
Mitsui Fudosan Logistics Park, Inc. REIT		95		359
Nippon Building Fund, Inc. REIT		112		559

	Shares		Value (000)
Nomura Real Estate Master Fund, Inc. REIT		296	$	370
Orix, Inc. J-REIT		264		359
				5,475
Malta (0.1%)
BGP Holdings PLC (a)(c)		12,867,024		41
Netherlands (0.9%)
Eurocommercial Properties NV CVA REIT		9,153		197
NSI NV REIT		8,102		279
				476
Singapore (3.3%)
CapitaLand Integrated Commercial Trust REIT		396,500		620
Capitaland Investment Ltd.		37,100		102
Digital Core Management Pte Ltd. REIT (a)(d)		240,500		185
Frasers Centrepoint Trust REIT		17,600		29
Mapletree Commercial Trust REIT		300,100		396
Suntec REIT		330,300		385
				1,717
Spain (1.0%)
Inmobiliaria Colonial Socimi SA REIT		39,056		250
Merlin Properties Socimi SA REIT		29,769		288
				538
Sweden (0.7%)
Catena AB		3,644		132
Fabege AB		24,615		233
				365
Switzerland (0.5%)
PSP Swiss Property AG (Registered)		2,322		259
United Kingdom (4.4%)
Big Yellow Group PLC REIT		14,989		240
Derwent London PLC REIT		7,660		244
Empiric Student Property PLC REIT		132,903		139
Helical PLC		37,828		172
Land Securities Group PLC REIT		44,125		358
LondonMetric Property PLC REIT		53,760		149
Segro PLC REIT		45,892		548
UNITE Group PLC REIT		19,862		258
Workspace Group PLC REIT		26,820		181
				2,289
United States (61.9%)
Agree Realty Corp. REIT		28,327		2,043
American Tower Corp. REIT		2,018		516
Americold Realty Trust, Inc. REIT		17,537		527
AvalonBay Communities, Inc. REIT		9,164		1,780
Boyd Gaming Corp.		6,054		301
Brixmor Property Group, Inc. REIT		47,335		957
Digital Realty Trust, Inc. REIT		22,797		2,960
Duke Realty Corp. REIT		13,600		747
Equity Residential REIT		26,988		1,949
Exeter Industrial Value Fund, LP (c)(e)		1,860,000		76
Extra Space Storage, Inc. REIT		6,102		1,038
Healthpeak Properties, Inc. REIT		33,450		867

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments (cont'd)

Global Real Estate Portfolio

	Shares		Value (000)
United States (cont'd)
Host Hotels & Resorts, Inc. REIT		28,987	$	454
Invitation Homes, Inc. REIT		27,053		963
Kilroy Realty Corp. REIT		9,088		476
Kite Realty Group Trust REIT		36,457		630
Mid-America Apartment Communities, Inc. REIT		8,751		1,529
NETSTREIT Corp. REIT		26,187		494
Park Hotels & Resorts, Inc. REIT		23,971		325
ProLogis, Inc. REIT		27,839		3,275
Public Storage REIT		9,297		2,907
Rexford Industrial Realty, Inc. REIT		7,351		423
RPT Realty REIT		47,566		468
Simon Property Group, Inc. REIT		5,237		497
SITE Centers Corp. REIT		70,440		949
SL Green Realty Corp. REIT (d)		11,761		543
Sun Communities, Inc. REIT		6,358		1,013
Welltower, Inc. REIT		39,893		3,285
				31,992
Total Common Stocks (Cost $45,601)				50,964
Short-Term Investments (2.5%)
Securities held as Collateral on Loaned Securities (1.1%)
Investment Company (0.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		437,864		438
	Face Amount (000)
Repurchase Agreements (0.2%)
HSBC Securities USA, Inc., (1.50%, dated 6/30/22, due 7/1/22; proceeds $34; fully collateralized by U.S. Government obligations; 0.00% — 3.63% due 2/15/23 — 5/15/32; valued at $35)	$	34		34
Merrill Lynch & Co., Inc., (1.46%, dated 6/30/22, due 7/1/22; proceeds $66; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $68)		66		66
				100
Total Securities held as Collateral on Loaned Securities (Cost $538)				538
	Shares
Investment Company (1.4%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $737)		737,448		737
Total Short-Term Investments (Cost $1,275)				1,275
Total Investments (101.1%) (Cost $46,876) Including $682 of Securities Loaned (f)(g)				52,239
Liabilities in Excess of Other Assets (–1.1%)				(561	)
Net Assets (100.0%)			$	51,678

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) At June 30, 2022, the Fund held fair valued securities valued at approximately $117,000, representing 0.2% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(d) All or a portion of this security was on loan at June 30, 2022.

(e) Restricted security valued at fair value and not registered under the Securities Act of 1933. Exeter Industrial Value Fund, LP was acquired between 11/07 — 4/11 and has a current cost basis of $0. At June 30, 2022, this security had an aggregate market value of approximately $76,000, representing 0.1% of net assets.

(f) The approximate fair value and percentage of net assets, $17,556,000 and 34.0%, 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 the Financial Statements.

(g) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $9,567,000 and the aggregate gross unrealized depreciation is approximately $4,204,000, resulting in net unrealized appreciation of approximately $5,363,000.

ADR American Depositary Receipt.

CVA Certificaten Van Aandelen.

REIT Real Estate Investment Trust.

Portfolio Composition*

Classification	Percentage of Total Investments
Diversified		22.4	%
Residential		18.7
Retail		14.5
Industrial		12.8
Office		8.9
Health Care		8.9
Self Storage		8.8
Other**		5.0
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

** 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, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Real Estate Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $45,701)	$	51,064
Investment in Security of Affiliated Issuer, at Value (Cost $1,175)		1,175
Total Investments in Securities, at Value (Cost $46,876)		52,239
Foreign Currency, at Value (Cost $112)		112
Cash from Securities Lending		29
Dividends Receivable		181
Receivable for Investments Sold		136
Tax Reclaim Receivable		93
Receivable for Fund Shares Sold		17
Receivable from Securities Lending Income		1
Receivable from Affiliate		—	@
Other Assets		105
Total Assets		52,913
Liabilities:
Collateral on Securities Loaned, at Value		567
Deferred Capital Gain Country Tax		292
Payable for Investments Purchased		138
Payable for Custodian Fees		53
Payable for Fund Shares Redeemed		42
Payable for Advisory Fees		42
Payable for Professional Fees		15
Payable for Transfer Agency Fees — Class I		3
Payable for Transfer Agency Fees — Class A		9
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		1
Payable for Sub Transfer Agency Fees — Class I		10
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 Administration Fees		4
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		—	@
Other Liabilities		56
Total Liabilities		1,235
Net Assets	$	51,678
Net Assets Consist of:
Paid-in-Capital	$	33,827
Total Distributable Earnings		17,851
Net Assets	$	51,678

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Real Estate Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	44,226
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		7,758,481
Net Asset Value, Offering and Redemption Price Per Share	$	5.70
CLASS A:
Net Assets	$	2,489
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		438,489
Net Asset Value, Redemption Price Per Share	$	5.68
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.31
Maximum Offering Price Per Share	$	5.99
CLASS L:
Net Assets	$	433
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		77,320
Net Asset Value, Offering and Redemption Price Per Share	$	5.60
CLASS C:
Net Assets	$	182
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		33,723
Net Asset Value, Offering and Redemption Price Per Share	$	5.40
CLASS R6:*
Net Assets	$	4,340
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		762,426
Net Asset Value, Offering and Redemption Price Per Share	$	5.69
CLASS IR:
Net Assets	$	8
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,443
Net Asset Value, Offering and Redemption Price Per Share	$	5.69
⁽¹⁾ Including: Securities on Loan, at Value:	$	682

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Real Estate Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $32 of Foreign Taxes Withheld)	$	1,158
Income from Securities Loaned — Net		5
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		1,164
Expenses:
Advisory Fees (Note B)		255
Professional Fees		61
Sub Transfer Agency Fees — Class I		36
Sub Transfer Agency Fees — Class A		2
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Custodian Fees (Note F)		34
Registration Fees		30
Administration Fees (Note C)		26
Shareholder Reporting Fees		12
Transfer Agency Fees — Class I (Note E)		4
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		2
Transfer Agency Fees — Class IR (Note E)		1
Shareholder Services Fees — Class A (Note D)		4
Distribution and Shareholder Services Fees — Class L (Note D)		2
Distribution and Shareholder Services Fees — Class C (Note D)		2
Directors' Fees and Expenses		3
Pricing Fees		3
Interest Expenses		2
Other Expenses		5
Total Expenses		488
Waiver of Advisory Fees (Note B)		(130	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(24	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		327
Net Investment Income		837
Realized Gain:
Investments Sold (Net of $55 of Capital Gain Country Tax)		5,665
Foreign Currency Translation		5
Net Realized Gain		5,670
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Increase in Deferred Capital Gain Country Tax of $40)		(20,971	)
Foreign Currency Translation		(11	)
Net Change in Unrealized Appreciation (Depreciation)		(20,982	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(15,312	)
Net Decrease in Net Assets Resulting from Operations	$	(14,475	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Real Estate Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	837		$	1,489
Net Realized Gain		5,670			86,278
Net Change in Unrealized Appreciation (Depreciation)		(20,982	)		(50,866	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(14,475	)		36,901
Dividends and Distributions to Shareholders:
Class I		—			(17,738	)
Class A		—			(1,311	)
Class L		—			(180	)
Class C		—			(178	)
Class R6*		—			(6,402	)
Class IR		—			(3	)
Total Dividends and Distributions to Shareholders		—			(25,812	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		762			3,078
Distributions Reinvested		—			16,727
Redeemed		(3,941	)		(44,152	)
Class A:
Subscribed		76			2,216
Distributions Reinvested		—			1,311
Redeemed		(265	)		(3,945	)
Class L:
Exchanged		25			—
Distributions Reinvested		—			179
Redeemed		—			(118	)
Class C:
Subscribed		—			505
Distributions Reinvested		—			178
Redeemed		(303	)		(259	)
Class R6:*
Subscribed		96			3,687
Distributions Reinvested		—			6,360
Redeemed		(16,858	)		(218,343	)
Class IR:
Distributions Reinvested		—			3
Net Decrease in Net Assets Resulting from Capital Share Transactions		(20,408	)		(232,573	)
Total Decrease in Net Assets		(34,883	)		(221,484	)
Net Assets:
Beginning of Period		86,561			308,045
End of Period	$	51,678		$	86,561

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Real Estate Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		112			346
Shares Issued on Distributions Reinvested		—			2,393
Shares Redeemed		(586	)		(4,786	)
Net Decrease in Class I Shares Outstanding		(474	)		(2,047	)
Class A:
Shares Subscribed		11			258
Shares Issued on Distributions Reinvested		—			188
Shares Redeemed		(39	)		(503	)
Net Decrease in Class A Shares Outstanding		(28	)		(57	)
Class L:
Shares Exchanged		4			—
Shares Issued on Distributions Reinvested		—			26
Shares Redeemed		—			(17	)
Net Increase in Class L Shares Outstanding		4			9
Class C:
Shares Subscribed		—			57
Shares Issued on Distributions Reinvested		—			27
Shares Redeemed		(49	)		(30	)
Net Increase (Decrease) in Class C Shares Outstanding		(49	)		54
Class R6:*
Shares Subscribed		14			425
Shares Issued on Distributions Reinvested		—			911
Shares Redeemed		(2,360	)		(24,663	)
Net Decrease in Class R6 Shares Outstanding		(2,346	)		(23,327	)
Class IR:
Shares Issued on Distributions Reinvested		—			—	@

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Real Estate Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	7.24		$	8.26		$	9.87		$	9.19		$	11.13		$	10.76
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.09			0.09			0.15			0.24			0.27			0.25
Net Realized and Unrealized Gain (Loss)		(1.63	)		1.79			(1.57	)		1.43			(1.11	)		0.80
Total from Investment Operations		(1.54	)		1.88			(1.42	)		1.67			(0.84	)		1.05
Distributions from and/or in Excess of:
Net Investment Income		—			(1.57	)		(0.11	)		(0.54	)		(0.51	)		(0.15	)
Net Realized Gain		—			(1.33	)		(0.08	)		(0.45	)		(0.59	)		(0.53	)
Total Distributions		—			(2.90	)		(0.19	)		(0.99	)		(1.10	)		(0.68	)
Net Asset Value, End of Period	$	5.70		$	7.24		$	8.26		$	9.87		$	9.19		$	11.13
Total Return⁽²⁾		(21.27	)%⁽⁷⁾		23.99	%		(14.33	)%		18.35	%		(7.92	)%		9.73	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	44,226		$	59,614		$	84,874		$	323,386		$	361,680		$	553,319
Ratio of Expenses Before Expense Limitation		1.51	%⁽⁸⁾		1.12	%		1.20	%		1.05	%		1.10	%		1.07	%
Ratio of Expenses After Expense Limitation		1.01	%^(3)(5)(8)		0.94	%⁽³⁾⁽⁵⁾		1.01	%⁽³⁾⁽⁵⁾		1.00	%⁽³⁾		1.03	%⁽³⁾⁽⁴⁾		1.05	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.00	%⁽³⁾⁽⁸⁾		0.93	%⁽³⁾		1.00	%⁽³⁾		1.00	%⁽³⁾		1.03	%⁽³⁾		1.05	%⁽³⁾
Ratio of Net Investment Income		2.66	%⁽³⁾⁽⁸⁾		1.03	%⁽³⁾		1.86	%⁽³⁾		2.36	%⁽³⁾		2.54	%⁽³⁾		2.20	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		45	%⁽⁷⁾		135	%		51	%		24	%		38	%		39	%

(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.

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.00% for Class I shares. Prior to July 1,2018, the maximum ratio was 1.05% for Class I shares.

(5) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Real Estate Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	7.22		$	8.25		$	9.85		$	9.17		$	11.10		$	10.71
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.08			0.05			0.13			0.21			0.23			0.17
Net Realized and Unrealized Gain (Loss)		(1.62	)		1.79			(1.58	)		1.41			(1.10	)		0.84
Total from Investment Operations		(1.54	)		1.84			(1.45	)		1.62			(0.87	)		1.01
Distributions from and/or in Excess of:
Net Investment Income		—			(1.54	)		(0.07	)		(0.49	)		(0.47	)		(0.09	)
Net Realized Gain		—			(1.33	)		(0.08	)		(0.45	)		(0.59	)		(0.53	)
Total Distributions		—			(2.87	)		(0.15	)		(0.94	)		(1.06	)		(0.62	)
Net Asset Value, End of Period	$	5.68		$	7.22		$	8.25		$	9.85		$	9.17		$	11.10
Total Return⁽²⁾		(21.33	)%⁽⁷⁾		23.47	%		(14.65	)%		17.90	%		(8.19	)%		9.44	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,489		$	3,368		$	4,316		$	10,728		$	12,775		$	17,701
Ratio of Expenses Before Expense Limitation		1.89	%⁽⁸⁾		2.05	%		1.90	%		1.37	%		1.39	%		N/A
Ratio of Expenses After Expense Limitation		1.36	%^(3)(5)(8)		1.36	%⁽³⁾⁽⁵⁾		1.36	%⁽³⁾⁽⁵⁾		1.35	%⁽³⁾		1.38	%⁽³⁾⁽⁴⁾		1.35	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.35	%⁽³⁾⁽⁸⁾		1.35	%⁽³⁾		1.35	%⁽³⁾		1.35	%⁽³⁾		1.38	%⁽³⁾		1.35	%⁽³⁾
Ratio of Net Investment Income		2.31	%⁽³⁾⁽⁸⁾		0.57	%⁽³⁾		1.63	%⁽³⁾		2.00	%⁽³⁾		2.18	%⁽³⁾		1.55	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		45	%⁽⁷⁾		135	%		51	%		24	%		38	%		39	%

(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.

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.35% for Class A shares. Prior to July 1,2018, the maximum ratio was 1.40% for Class A shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Real Estate Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	7.14		$	8.18		$	9.75		$	9.09		$	11.01		$	10.64
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.06			0.01			0.08			0.16			0.17			0.14
Net Realized and Unrealized Gain (Loss)		(1.60	)		1.77			(1.56	)		1.40			(1.09	)		0.81
Total from Investment Operations		(1.54	)		1.78			(1.48	)		1.56			(0.92	)		0.95
Distributions from and/or in Excess of:
Net Investment Income		—			(1.49	)		(0.01	)		(0.45	)		(0.41	)		(0.05	)
Net Realized Gain		—			(1.33	)		(0.08	)		(0.45	)		(0.59	)		(0.53	)
Total Distributions		—			(2.82	)		(0.09	)		(0.90	)		(1.00	)		(0.58	)
Net Asset Value, End of Period	$	5.60		$	7.14		$	8.18		$	9.75		$	9.09		$	11.01
Total Return⁽²⁾		(21.57	)%⁽⁷⁾		22.94	%		(15.17	)%		17.37	%		(8.74	)%		8.89	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	433		$	521		$	522		$	1,419		$	1,220		$	1,344
Ratio of Expenses Before Expense Limitation		2.62	%⁽⁸⁾		2.30	%		2.08	%		1.91	%		2.02	%		1.93	%
Ratio of Expenses After Expense Limitation		1.86	%^(3)(5)(8)		1.86	%⁽³⁾⁽⁵⁾		1.86	%⁽³⁾⁽⁵⁾		1.85	%⁽³⁾		1.88	%⁽³⁾⁽⁴⁾		1.90	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.85	%⁽³⁾⁽⁸⁾		1.85	%⁽³⁾		1.85	%⁽³⁾		1.85	%⁽³⁾		1.88	%⁽³⁾		1.90	%⁽³⁾
Ratio of Net Investment Income		1.85	%⁽³⁾⁽⁸⁾		0.12	%⁽³⁾		1.07	%⁽³⁾		1.54	%⁽³⁾		1.64	%⁽³⁾		1.32	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		45	%⁽⁷⁾		135	%		51	%		24	%		38	%		39	%

(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.

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.85% for Class L shares. Prior to July 1,2018, the maximum ratio was 1.90% for Class L shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Real Estate Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	6.90		$	8.01		$	9.56		$	8.92		$	10.83		$	10.49
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.04			(0.00	)⁽²⁾		0.08			0.13			0.16			0.12
Net Realized and Unrealized Gain (Loss)		(1.54	)		1.71			(1.54	)		1.37			(1.09	)		0.78
Total from Investment Operations		(1.50	)		1.71			(1.46	)		1.50			(0.93	)		0.90
Distributions from and/or in Excess of:
Net Investment Income		—			(1.49	)		(0.01	)		(0.41	)		(0.39	)		(0.03	)
Net Realized Gain		—			(1.33	)		(0.08	)		(0.45	)		(0.59	)		(0.53	)
Total Distributions		—			(2.82	)		(0.09	)		(0.86	)		(0.98	)		(0.56	)
Net Asset Value, End of Period	$	5.40		$	6.90		$	8.01		$	9.56		$	8.92		$	10.83
Total Return⁽³⁾		(21.74	)%⁽⁸⁾		22.54	%		(15.26	)%		16.98	%		(8.93	)%		8.54	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	182		$	569		$	225		$	397		$	428		$	327
Ratio of Expenses Before Expense Limitation		3.13	%⁽⁹⁾		2.94	%		2.96	%		2.51	%		2.47	%		2.69	%
Ratio of Expenses After Expense Limitation		2.11	%^(4)(6)(9)		2.11	%⁽⁴⁾⁽⁶⁾		2.11	%⁽⁴⁾⁽⁶⁾		2.10	%⁽⁴⁾		2.12	%⁽⁴⁾⁽⁵⁾		2.15	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.10	%⁽⁴⁾⁽⁹⁾		2.10	%⁽⁴⁾		2.10	%⁽⁴⁾		2.10	%⁽⁴⁾		2.12	%⁽⁴⁾		2.15	%⁽⁴⁾
Ratio of Net Investment Income (Loss)		1.30	%⁽⁴⁾⁽⁹⁾		(0.03	)%⁽⁴⁾		1.00	%⁽⁴⁾		1.26	%⁽⁴⁾		1.53	%⁽⁴⁾		1.11	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		45	%⁽⁸⁾		135	%		51	%		24	%		38	%		39	%

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

(2) Amount is less than $0.005.

(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.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.10% for Class C shares. Prior to July 1, 2018, the maximum ratio was 2.15% for Class C shares.

(6) Ratio is above the expense limitation due to interest expenses, which are not included in the determination of the expense limitation. Refer to Footnote B in the Notes to the Financial Statements.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Real Estate Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	7.23		$	8.25		$	9.87		$	9.19		$	11.13		$	10.76
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.09			0.08			0.17			0.25			0.28			0.25
Net Realized and Unrealized Gain (Loss)		(1.63	)		1.80			(1.59	)		1.43			(1.11	)		0.81
Total from Investment Operations		(1.54	)		1.88			(1.42	)		1.68			(0.83	)		1.06
Distributions from and/or in Excess of:
Net Investment Income		—			(1.57	)		(0.12	)		(0.55	)		(0.52	)		(0.16	)
Net Realized Gain		—			(1.33	)		(0.08	)		(0.45	)		(0.59	)		(0.53	)
Total Distributions		—			(2.90	)		(0.20	)		(1.00	)		(1.11	)		(0.69	)
Net Asset Value, End of Period	$	5.69		$	7.23		$	8.25		$	9.87		$	9.19		$	11.13
Total Return⁽³⁾		(21.30	)%⁽⁸⁾		24.02	%		(14.36	)%		18.43	%		(7.83	)%		9.80	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,340		$	22,479		$	218,100		$	350,363		$	517,658		$	1,049,646
Ratio of Expenses Before Expense Limitation		1.40	%⁽⁹⁾		1.13	%		1.01	%		0.94	%		N/A			N/A
Ratio of Expenses After Expense Limitation		0.95	%^(4)(6)(9)		0.95	%⁽⁴⁾⁽⁶⁾		0.95	%⁽⁴⁾⁽⁶⁾		0.94	%⁽⁴⁾		0.95	%⁽⁴⁾⁽⁵⁾		0.97	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.94	%⁽⁴⁾⁽⁹⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.94	%⁽⁴⁾		0.95	%⁽⁴⁾		0.97	%⁽⁴⁾
Ratio of Net Investment Income		2.57	%⁽⁴⁾⁽⁹⁾		0.93	%⁽⁴⁾		2.21	%⁽⁴⁾		2.41	%⁽⁴⁾		2.58	%⁽⁴⁾		2.26	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		45	%⁽⁸⁾		135	%		51	%		24	%		38	%		39	%

(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.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.94% for Class R6 shares. Prior to July 1, 2018, the maximum ratio was 0.99% for Class R6 shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Real Estate Portfolio

	Class IR
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 15, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	7.23		$	8.25		$	9.87		$	9.19		$	11.09
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.09			0.04			0.18			0.25			0.23
Net Realized and Unrealized Gain (Loss)		(1.63	)		1.84			(1.60	)		1.43			(1.02	)
Total from Investment Operations		(1.54	)		1.88			(1.42	)		1.68			(0.79	)
Distributions from and/or in Excess of:
Net Investment Income		—			(1.57	)		(0.12	)		(0.55	)		(0.52	)
Net Realized Gain		—			(1.33	)		(0.08	)		(0.45	)		(0.59	)
Total Distributions		—			(2.90	)		(0.20	)		(1.00	)		(1.11	)
Net Asset Value, End of Period	$	5.69		$	7.23		$	8.25		$	9.87		$	9.19
Total Return⁽³⁾		(21.30	)%⁽⁸⁾		24.08	%		(14.36	)%		18.44	%		(7.49	)%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	8		$	10		$	8		$	10		$	8
Ratio of Expenses Before Expense Limitation		21.06	%⁽⁹⁾		23.02	%		26.07	%		21.38	%		18.72	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.95	%^(5)(6)(9)		0.95	%⁽⁵⁾⁽⁶⁾		0.95	%⁽⁵⁾⁽⁶⁾		0.94	%⁽⁵⁾		0.94	%^(4)(5)(9)
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		0.94	%⁽⁵⁾⁽⁹⁾		0.94	%⁽⁵⁾		0.94	%⁽⁵⁾		0.94	%⁽⁵⁾		N/A
Ratio of Net Investment Income		2.74	%⁽⁵⁾⁽⁹⁾		0.46	%⁽⁵⁾		2.37	%⁽⁵⁾		2.45	%⁽⁵⁾		3.94	%⁽⁵⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾⁽⁹⁾
Portfolio Turnover Rate		45	%⁽⁸⁾		135	%		51	%		24	%		38	%

(1) Commencement of Offering.

(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) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.94% for Class IR shares. Prior to July 1, 2018, the maximum ratio was 0.99% for Class IR shares.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Real Estate Portfolio. The Fund seeks to provide current income and capital appreciation. The Fund has capital subscription commitments to an investee company for this same purpose, the details of which are disclosed in the Unfunded Commitments note.

security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Limited ("MSIM Limited") and Morgan Stanley Investment Management Company ("MSIM Company") (together, the "Sub-Advisers"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser or Sub-Advisers determine that the closing price, last sale

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Diversified	$	3,088	$	8,501	$	—	$	11,589
Health Care		4,487		129		—		4,616
Industrial		4,972		1,592		76		6,640
Lodging/Resorts		1,080		232		—		1,312
Office		1,019		3,606		—		4,625
Residential		8,117		1,493		41		9,651
Retail		6,067		1,413		—		7,480
Self Storage		3,945		590		—		4,535
Specialty		516		—		—		516
Total Common Stocks		33,291		17,556		117		50,964
Short-Term Investments
Investment Company		1,175		—		—		1,175
Repurchase Agreements		—		100		—		100
Total Short-Term Investments		1,175		100		—		1,275
Total Assets	$	34,466	$	17,656	$	117	$	52,239

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 Stocks (000)
Beginning Balance	$	167
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		(50	)
Realized gains (losses)		—
Ending Balance	$	117
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022	$	(50	)

Fair Value at
June 30, 2022
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

Common Stocks

117

Reported Capital balance,
adjustments for NAV practical
expedient; including adjustments
for subsequent Capital Calls,
Return of Capital and Significant
Market Changes between last Capital
Statement and Valuation Date

Adjusted Capital Balance

Market Transaction Method

Transaction Valuation

0.003

Increase

* Amount is indicative of the weighted average.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

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 June 30, 2022:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	682	(a)	$	—	$	(682	)(b)(c)	$	0

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

(b) The Fund received cash collateral of approximately $567,000, of which approximately $538,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $29,000, which is not reflected in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $162,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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	$	567	$	—	$	—	$	—	$	567
Total Borrowings	$	567	$	—	$	—	$	—	$	567
Gross amount of recognized liabilities for securities lending transactions									$	567

6. Unfunded Commitments: Subject to the terms of a Subscription Agreement between the Fund and Exeter Industrial Value Fund LP, the Fund has made a subscription commitment of $2,000,000 for which it will receive 2,000,000 shares of common stock. As of June 30, 2022, Exeter Industrial Value Fund LP has drawn down approximately $1,860,000, which represents 93.0% of the commitment.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

risks during that period. Restricted securities are identified in the Portfolio of Investments.

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

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

10. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory/Sub-Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with

advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at the annual rate based on the daily net assets as follows:

First $2 billion				Over $2 billion
0.80%				0.75%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.39% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares, 0.94% for Class R6 shares and 0.94% 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 that the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $130,000 of advisory fees were waived and approximately $31,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has entered into Sub-Advisory Agreements with the Sub-Advisers, each a wholly-owned subsidiary of Morgan Stanley. The Sub-Advisers provide the Fund with advisory services subject to the overall supervision of the Adviser and the Company's Officers and Directors. The Adviser pays the Sub-Advisers on a monthly basis a portion of the net advisory fees the Adviser 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

subsidiary of Morgan Stanley, serves as the Company's Distributor of Fund shares pursuant to a Distribution Agreement. The Company 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.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $29,845,000 and $50,534,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	259			$	9,820			$	8,904			$	1

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	1,175

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	18,710	$	7,102	$	4,300	$	3,129

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations

which may differ from GAAP. These book/tax differences are either considered temporary or permanent in nature.

Permanent differences, due to equalization debits, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$(11,586)				$11,586

At December 31, 2021, 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)
$6,923				$3,795

During the year ended December 31, 2021, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $25,926,000.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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-Advisers, 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-Advisers 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").

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, 2021, 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 below 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. The Board noted that the Fund's management fee and total expense ratio were higher than but close to 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Advisers

Morgan Stanley Investment Management Limited
25 Cabot Square, Canary Wharf
London, E14 4QA, England

Morgan Stanley Investment Management Company
23 Church Street
16-01 Capital Square, Singapore 049481

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGRESAN
4875603 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Global Sustain Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					7
Statements of Changes in Net Assets					8
Financial Highlights					10
Notes to Financial Statements					15
Investment Advisory Agreement Approval					21
Liquidity Risk Management Program					23
U.S. Customer Privacy Notice					24
Director and Officer Information					27

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Global Sustain Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Global Sustain Portfolio Class I	$	1,000.00	$	793.30	$	1,020.33	$	4.00	$	4.51		0.90	%
Global Sustain Portfolio Class A		1,000.00		791.80		1,018.60		5.55		6.26		1.25
Global Sustain Portfolio Class L		1,000.00		790.00		1,016.12		7.77		8.75		1.75
Global Sustain Portfolio Class C		1,000.00		788.80		1,015.03		8.74		9.84		1.97
Global Sustain Portfolio Class R6⁽¹⁾		1,000.00		793.70		1,020.58		3.78		4.26		0.85

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Global Sustain Portfolio

	Shares		Value (000)
Common Stocks (97.2%)
Canada (3.4%)
Constellation Software, Inc.		1,976	$	2,933
France (1.5%)
L'Oreal SA		3,656		1,269
Germany (6.6%)
Deutsche Boerse AG		10,542		1,770
SAP SE		43,197		3,938
				5,708
Hong Kong (2.1%)
AIA Group Ltd.		169,800		1,855
Sweden (1.2%)
Atlas Copco AB, Class A		109,908		1,029
Taiwan (2.5%)
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		25,944		2,121
United Kingdom (8.6%)
Experian PLC		15,060		442
Prudential PLC		100,125		1,246
Reckitt Benckiser Group PLC		59,366		4,465
RELX PLC (LSE)		47,207		1,282
				7,435
United States (71.3%)
Abbott Laboratories		30,505		3,314
Accenture PLC, Class A		14,474		4,019
Alphabet, Inc., Class A (a)		1,131		2,465
Amphenol Corp., Class A		22,705		1,462
Automatic Data Processing, Inc.		7,867		1,652
Baxter International, Inc.		49,268		3,164
Becton Dickinson & Co.		12,894		3,179
Broadridge Financial Solutions, Inc.		7,856		1,120
Coca-Cola Co.		15,029		945
Danaher Corp.		15,666		3,972
Equifax, Inc.		7,503		1,371
Estee Lauder Cos., Inc., Class A		4,017		1,023
Fidelity National Information Services, Inc.		16,152		1,481
Intercontinental Exchange, Inc.		29,646		2,788
IQVIA Holdings, Inc. (a)		8,884		1,928
Medtronic PLC		24,795		2,225
Microsoft Corp.		22,827		5,863
Moody's Corp.		1,623		441
NIKE, Inc., Class B		11,487		1,174
Otis Worldwide Corp.		19,834		1,402
PayPal Holdings, Inc. (a)		6,247		436
Procter & Gamble Co.		14,665		2,109
Roper Technologies, Inc.		4,204		1,659
Stanley Black & Decker, Inc.		12,326		1,293
Steris PLC		1,030		212
Texas Instruments, Inc.		7,909		1,215
Thermo Fisher Scientific, Inc.		6,833		3,712

	Shares		Value (000)
Visa, Inc., Class A		25,530	$	5,027
Zoetis, Inc.		5,113		879
				61,530
Total Common Stocks (Cost $83,800)				83,880
Short-Term Investments (2.2%)
Investment Companies (2.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $1,945)		1,944,947		1,945
Total Investments (99.4%) (Cost $85,745) (b)(c)				85,825
Other Assets in Excess of Liabilities (0.6%)				495
Net Assets (100.0%)			$	86,320

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $17,296,000 and 20.0%, 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 the Financial Statements.

(c) At June 30, 2022, the aggregate cost for federal income tax purposes is approximately $85,745,000. The aggregate gross unrealized appreciation is approximately $7,052,000 and the aggregate gross unrealized depreciation is approximately $6,972,000, resulting in net unrealized appreciation of approximately $80,000.

ADR American Depositary Receipt.

LSE London Stock Exchange.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		26.8	%
Software		17.1
Information Technology Services		16.4
Health Care Equipment & Supplies		14.4
Life Sciences Tools & Services		11.5
Household Products		7.8
Capital Markets		6.0
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Sustain Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $83,800)	$	83,880
Investment in Security of Affiliated Issuer, at Value (Cost $1,945)		1,945
Total Investments in Securities, at Value (Cost $85,745)		85,825
Receivable for Fund Shares Sold		337
Receivable for Investments Sold		152
Dividends Receivable		82
Tax Reclaim Receivable		35
Foreign Currency, at Value (Cost $16)		16
Receivable from Affiliate		1
Other Assets		61
Total Assets		86,509
Liabilities:
Payable for Advisory Fees		99
Payable for Investments Purchased		26
Payable for Custodian Fees		16
Payable for Professional Fees		13
Payable for Fund Shares Redeemed		12
Payable for Administration Fees		6
Payable for Shareholder Services Fees — Class A		2
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Distribution and Shareholder Services Fees — Class C		4
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6^*		1
Payable for Sub Transfer Agency Fees — Class I		—	@
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		1
Other Liabilities		3
Total Liabilities		189
Net Assets	$	86,320
Net Assets Consist of:
Paid-in-Capital	$	85,942
Total Distributable Earnings		378
Net Assets	$	86,320

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Sustain Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	61,437
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		4,013,397
Net Asset Value, Offering and Redemption Price Per Share	$	15.31
CLASS A:
Net Assets	$	7,585
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		498,513
Net Asset Value, Redemption Price Per Share	$	15.21
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.84
Maximum Offering Price Per Share	$	16.05
CLASS L:
Net Assets	$	1,275
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		85,558
Net Asset Value, Offering and Redemption Price Per Share	$	14.90
CLASS C:
Net Assets	$	4,463
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		307,096
Net Asset Value, Offering and Redemption Price Per Share	$	14.53
CLASS R6:*
Net Assets	$	11,561
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		755,156
Net Asset Value, Offering and Redemption Price Per Share	$	15.31

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Global Sustain Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $31 of Foreign Taxes Withheld)	$	733
Dividends from Security of Affiliated Issuer (Note G)		3
Total Investment Income		736
Expenses:
Advisory Fees (Note B)		335
Professional Fees		67
Shareholder Services Fees — Class A (Note D)		11
Distribution and Shareholder Services Fees — Class L (Note D)		5
Distribution and Shareholder Services Fees — Class C (Note D)		23
Administration Fees (Note C)		38
Sub Transfer Agency Fees — Class I		28
Sub Transfer Agency Fees — Class A		5
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		2
Registration Fees		27
Custodian Fees (Note F)		8
Shareholder Reporting Fees		8
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Directors' Fees and Expenses		3
Pricing Fees		1
Other Expenses		7
Total Expenses		575
Waiver of Advisory Fees (Note B)		(87	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(13	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		473
Net Investment Income		263
Realized Loss:
Investments Sold		(23	)
Foreign Currency Translation		(3	)
Net Realized Loss		(26	)
Change in Unrealized Appreciation (Depreciation):
Investments		(23,186	)
Foreign Currency Translation		(5	)
Net Change in Unrealized Appreciation (Depreciation)		(23,191	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(23,217	)
Net Decrease in Net Assets Resulting from Operations	$	(22,954	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Sustain Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	263		$	345
Net Realized Gain (Loss)		(26	)		1,731
Net Change in Unrealized Appreciation (Depreciation)		(23,191	)		11,944
Net Increase (Decrease) in Net Assets Resulting from Operations		(22,954	)		14,020
Dividends and Distributions to Shareholders:
Class I		—			(1,373	)
Class A		—			(165	)
Class L		—			(24	)
Class C		—			(76	)
Class R6*		—			(260	)
Total Dividends and Distributions to Shareholders		—			(1,898	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		14,848			42,992
Distributions Reinvested		—			1,257
Redeemed		(17,149	)		(6,199	)
Class A:
Subscribed		995			6,053
Distributions Reinvested		—			165
Redeemed		(2,122	)		(1,476	)
Class L:
Exchanged		—			91
Distributions Reinvested		—			24
Redeemed		(57	)		(108	)
Class C:
Subscribed		452			2,279
Distributions Reinvested		—			76
Redeemed		(404	)		(1,062	)
Class R6:*
Subscribed		4			3,000
Distributions Reinvested		—			260
Redeemed		(—	@)		(—	@)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(3,433	)		47,352
Total Increase (Decrease) in Net Assets		(26,387	)		59,474
Net Assets:
Beginning of Period		112,707			53,233
End of Period	$	86,320		$	112,707

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Global Sustain Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		864			2,374
Shares Issued on Distributions Reinvested		—			67
Shares Redeemed		(1,002	)		(344	)
Net Increase (Decrease) in Class I Shares Outstanding		(138	)		2,097
Class A:
Shares Subscribed		59			342
Shares Issued on Distributions Reinvested		—			9
Shares Redeemed		(123	)		(81	)
Net Increase (Decrease) in Class A Shares Outstanding		(64	)		270
Class L:
Shares Exchanged		—			6
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(4	)		(6	)
Net Increase (Decrease) in Class L Shares Outstanding		(4	)		1
Class C:
Shares Subscribed		30			133
Shares Issued on Distributions Reinvested		—			4
Shares Redeemed		(24	)		(61	)
Net Increase in Class C Shares Outstanding		6			76
Class R6:*
Shares Subscribed		—	@@		179
Shares Issued on Distributions Reinvested		—			14
Shares Redeemed		(—	@@)		(—	@@)
Net Increase in Class R6 Shares Outstanding		—			193

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Sustain Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	19.30		$	16.57		$	14.66		$	11.58		$	12.47		$	10.81
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.05			0.09			0.08			0.09			0.12			0.13
Net Realized and Unrealized Gain (Loss)		(4.04	)		2.98			2.25			3.38			(0.04	)		2.35
Total from Investment Operations		(3.99	)		3.07			2.33			3.47			0.08			2.48
Distributions from and/or in Excess of:
Net Investment Income		—			(0.07	)		(0.06	)		(0.08	)		(0.07	)		(0.13	)
Net Realized Gain		—			(0.27	)		(0.36	)		(0.31	)		(0.90	)		(0.69	)
Total Distributions		—			(0.34	)		(0.42	)		(0.39	)		(0.97	)		(0.82	)
Net Asset Value, End of Period	$	15.31		$	19.30		$	16.57		$	14.66		$	11.58		$	12.47
Total Return⁽²⁾		(20.67	)%⁽⁶⁾		18.62	%		15.96	%		30.03	%		0.60	%		22.86	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	61,437		$	80,097		$	34,042		$	14,756		$	5,891		$	5,334
Ratio of Expenses Before Expense Limitation		1.12	%⁽⁷⁾		1.17	%		1.45	%		1.92	%		2.86	%		3.54	%
Ratio of Expenses After Expense Limitation		0.90	%⁽³⁾⁽⁷⁾		0.90	%⁽³⁾		0.90	%⁽³⁾		0.90	%⁽³⁾		0.93	%⁽³⁾⁽⁴⁾		1.00	%⁽³⁾
Ratio of Net Investment Income		0.64	%⁽³⁾⁽⁷⁾		0.51	%⁽³⁾		0.52	%⁽³⁾		0.68	%⁽³⁾		0.97	%⁽³⁾		1.10	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		16	%⁽⁶⁾		11	%		20	%		14	%		76	%		39	%

(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.

(4) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.90% for Class I shares. Prior to April 30, 2018, the maximum ratio was 1.00% for Class I shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Sustain Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	19.21		$	16.51		$	14.62		$	11.56		$	12.44		$	10.79
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.02			0.03			0.03			0.05			0.07			0.08
Net Realized and Unrealized Gain (Loss)		(4.02	)		2.96			2.23			3.36			(0.03	)		2.35
Total from Investment Operations		(4.00	)		2.99			2.26			3.41			0.04			2.43
Distributions from and/or in Excess of:
Net Investment Income		—			(0.02	)		(0.01	)		(0.04	)		(0.02	)		(0.09	)
Net Realized Gain		—			(0.27	)		(0.36	)		(0.31	)		(0.90	)		(0.69	)
Total Distributions		—			(0.29	)		(0.37	)		(0.35	)		(0.92	)		(0.78	)
Net Asset Value, End of Period	$	15.21		$	19.21		$	16.51		$	14.62		$	11.56		$	12.44
Total Return⁽²⁾		(20.82	)%⁽⁶⁾		18.20	%		15.53	%		29.53	%		0.26	%		22.45	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	7,585		$	10,812		$	4,839		$	2,949		$	1,872		$	2,243
Ratio of Expenses Before Expense Limitation		1.43	%⁽⁷⁾		1.46	%		1.76	%		2.25	%		3.21	%		3.90	%
Ratio of Expenses After Expense Limitation		1.25	%⁽³⁾⁽⁷⁾		1.22	%⁽³⁾		1.24	%⁽³⁾		1.25	%⁽³⁾		1.28	%⁽³⁾⁽⁴⁾		1.35	%⁽³⁾
Ratio of Net Investment Income		0.28	%⁽³⁾⁽⁷⁾		0.18	%⁽³⁾		0.17	%⁽³⁾		0.35	%⁽³⁾		0.57	%⁽³⁾		0.66	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		16	%⁽⁶⁾		11	%		20	%		14	%		76	%		39	%

(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.

(4) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.25% for Class A shares. Prior to April 30, 2018, the maximum ratio was 1.35% for Class A shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Sustain Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	18.86		$	16.28		$	14.48		$	11.47		$	12.41		$	10.76
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		(0.02	)		(0.05	)		(0.05	)		(0.01	)		0.01			0.03
Net Realized and Unrealized Gain (Loss)		(3.94	)		2.90			2.21			3.33			(0.04	)		2.32
Total from Investment Operations		(3.96	)		2.85			2.16			3.32			(0.03	)		2.35
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.01	)		(0.01	)
Net Realized Gain		—			(0.27	)		(0.36	)		(0.31	)		(0.90	)		(0.69	)
Total Distributions		—			(0.27	)		(0.36	)		(0.31	)		(0.91	)		(0.70	)
Net Asset Value, End of Period	$	14.90		$	18.86		$	16.28		$	14.48		$	11.47		$	12.41
Total Return⁽²⁾		(21.00	)%⁽⁶⁾		17.58	%		14.97	%		28.87	%		(0.25	)%		21.80	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,275		$	1,684		$	1,441		$	1,437		$	1,365		$	1,611
Ratio of Expenses Before Expense Limitation		1.96	%⁽⁷⁾		2.08	%		2.32	%		2.77	%		3.73	%		4.39	%
Ratio of Expenses After Expense Limitation		1.75	%⁽³⁾⁽⁷⁾		1.75	%(³⁾		1.75	%⁽³⁾		1.75	%⁽³⁾		1.78	%⁽³⁾⁽⁴⁾		1.85	%⁽³⁾
Ratio of Net Investment Income (Loss)		(0.21	)%⁽³⁾⁽⁷⁾		(0.27	)%⁽³⁾		(0.33	)%⁽³⁾		(0.09	)%⁽³⁾		0.04	%⁽³⁾		0.24	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		16	%⁽⁶⁾		11	%		20	%		14	%		76	%		39	%

(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.

(4) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.75% for Class L shares. Prior to April 30, 2018, the maximum ratio was 1.85% for Class L shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Sustain Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019			2018			2017
Net Asset Value, Beginning of Period	$	18.41		$	15.94		$	14.22		$	11.30		$	12.26		$	10.67
Income (Loss) from Investment Operations:
Net Investment Loss⁽¹⁾		(0.03	)		(0.09	)		(0.08	)		(0.05	)		(0.03	)		(0.01	)
Net Realized and Unrealized Gain (Loss)		(3.85	)		2.83			2.16			3.28			(0.02	)		2.30
Total from Investment Operations		(3.88	)		2.74			2.08			3.23			(0.05	)		2.29
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.01	)		(0.01	)
Net Realized Gain		—			(0.27	)		(0.36	)		(0.31	)		(0.90	)		(0.69	)
Total Distributions		—			(0.27	)		(0.36	)		(0.31	)		(0.91	)		(0.70	)
Net Asset Value, End of Period	$	14.53		$	18.41		$	15.94		$	14.22		$	11.30		$	12.26
Total Return⁽²⁾		(21.12	)%⁽⁶⁾		17.33	%		14.68	%		28.63	%		(0.50	)%		21.46	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,463		$	5,551		$	3,594		$	2,872		$	1,846		$	1,430
Ratio of Expenses Before Expense Limitation		2.16	%⁽⁷⁾		2.22	%		2.51	%		2.97	%		4.00	%		4.71	%
Ratio of Expenses After Expense Limitation		1.97	%⁽³⁾⁽⁷⁾		1.97	%⁽³⁾		1.99	%⁽³⁾		1.98	%⁽³⁾		2.02	%⁽³⁾⁽⁴⁾		2.10	%⁽³⁾
Ratio of Net Investment Loss		(0.42	)%⁽³⁾⁽⁷⁾		(0.52	)%⁽³⁾		(0.56	)%⁽³⁾		(0.38	)%⁽³⁾		(0.24	)%⁽³⁾		(0.06	)%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		16	%⁽⁶⁾		11	%		20	%		14	%		76	%		39	%

(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.

(4) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.00% for Class C shares. Prior to April 30, 2018, the maximum ratio was 2.10% for Class C shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Global Sustain Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	19.29		$	16.57		$	14.66		$	11.58		$	12.47		$	10.81
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.06			0.11			0.09			0.11			0.05			0.14
Net Realized and Unrealized Gain (Loss)		(4.04	)		2.96			2.25			3.37			0.04			2.34
Total from Investment Operations		(3.98	)		3.07			2.34			3.48			0.09			2.48
Distributions from and/or in Excess of:
Net Investment Income		—			(0.08	)		(0.07	)		(0.09	)		(0.08	)		(0.13	)
Net Realized Gain		—			(0.27	)		(0.36	)		(0.31	)		(0.90	)		(0.69	)
Total Distributions		—			(0.35	)		(0.43	)		(0.40	)		(0.98	)		(0.82	)
Net Asset Value, End of Period	$	15.31		$	19.29		$	16.57		$	14.66		$	11.58		$	12.47
Total Return⁽³⁾		(20.63	)%⁽⁷⁾		18.60	%		16.00	%		30.08	%		0.66	%		22.91	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	11,561		$	14,563		$	9,317		$	7,450		$	4,847		$	12
Ratio of Expenses Before Expense Limitation		1.05	%⁽⁸⁾		1.12	%		1.41	%		1.88	%		3.12	%		19.10	%
Ratio of Expenses After Expense Limitation		0.85	%⁽⁴⁾⁽⁸⁾		0.85	%⁽⁴⁾		0.85	%⁽⁴⁾		0.85	%⁽⁴⁾		0.85	%⁽⁴⁾⁽⁵⁾		0.95	%⁽⁴⁾
Ratio of Net Investment Income		0.70	%⁽⁴⁾⁽⁸⁾		0.60	%⁽⁴⁾		0.58	%⁽⁴⁾		0.79	%⁽⁴⁾		0.41	%⁽⁴⁾		1.15	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		16	%⁽⁷⁾		11	%		20	%		14	%		76	%		39	%

(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.

(5) Effective April 30, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.85% for Class R6 shares. Prior to April 30, 2018, the maximum ratio was 0.95% for Class R6 shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Global Sustain Portfolio. The Fund seeks long-term capital appreciation.

the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, 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 established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Beverages	$	945	$	—	$	—	$	945
Capital Markets		3,229		1,770		—		4,999
Electronic Equipment, Instruments & Components		1,462		—		—		1,462
Health Care Equipment & Supplies		12,094		—		—		12,094

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Household Products	$	2,109	$	4,465	$	—	$	6,574
Information Technology Services		13,735		—		—		13,735
Insurance		—		3,101		—		3,101
Interactive Media & Services		2,465		—		—		2,465
Life Sciences Tools & Services		9,612		—		—		9,612
Machinery		2,695		1,029		—		3,724
Personal Products		1,023		1,269		—		2,292
Pharmaceuticals		879		—		—		879
Professional Services		1,371		1,724		—		3,095
Semiconductors & Semiconductor Equipment		3,336		—		—		3,336
Software		10,455		3,938		—		14,393
Textiles, Apparel & Luxury Goods		1,174		—		—		1,174
Total Common Stocks		66,584		17,296		—		83,880
Short-Term Investments
Investment Company		1,945		—		—		1,945
Total Assets	$	68,529	$	17,296	$	—	$	85,825

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.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

or losses pursuant to these contracts and expects the risk of loss to be remote.

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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $500 million				Over $500 million
	0.70	%			0.65	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.52% of the Fund's average daily net assets.

not exceed 0.90% for Class I shares, 1.25% for Class A shares, 1.75% for Class L shares, 2.00% for Class C shares and 0.85% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $87,000 of advisory fees were waived and approximately $14,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $15,598,000 and $18,887,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the

Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	4,494			$	15,269			$	17,818			$	3

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	1,945

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	351	$	1,547	$	161	$	1,129

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2021.

At December 31, 2021, 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			$	356

I. Credit Facility: The Company and other Morgan Stanley funds participated in a $300,000,000 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. During the six months ended June 30, 2022, the Fund did not have any borrowings under the Facility.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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 below its peer group average for the three-, and five-year periods but better than 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management Limited
25 Cabot Square, Canary Wharf
London, E14 4QA, England

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGQSAN
4873203 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Growth Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					7
Consolidated Statement of Operations					9
Consolidated Statements of Changes in Net Assets					10
Consolidated Financial Highlights					12
Notes to Consolidated Financial Statements					18
Investment Advisory Agreement Approval					31
Liquidity Risk Management Program					33
U.S. Customer Privacy Notice					34
Director and Officer Information					37

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Growth Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Growth Portfolio Class I	$	1,000.00	$	430.90	$	1,021.62	$	2.27	$	3.21		0.64	%
Growth Portfolio Class A		1,000.00		430.30		1,020.33		3.19		4.51		0.90
Growth Portfolio Class L		1,000.00		429.30		1,018.10		4.78		6.76		1.35
Growth Portfolio Class C		1,000.00		428.80		1,016.81		5.70		8.05		1.61
Growth Portfolio Class R6⁽¹⁾		1,000.00		431.20		1,022.36		1.74		2.46		0.49
Growth Portfolio Class IR		1,000.00		431.20		1,022.36		1.74		2.46		0.49

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Growth Portfolio

	Shares		Value (000)
Common Stocks (96.0%)
Automobiles (0.4%)
Rivian Automotive, Inc., Class A (a)		980,153	$	25,229
Biotechnology (0.7%)
Alnylam Pharmaceuticals, Inc. (a)		143,524		20,933
Moderna, Inc. (a)		143,257		20,464
				41,397
Capital Markets (0.7%)
Coinbase Global, Inc., Class A (a)(b)		869,570		40,887
Chemicals (0.4%)
Ginkgo Bioworks Holdings, Inc. (a)(b)		9,990,129		23,777
Commercial Services & Supplies (0.2%)
Aurora Innovation, Inc. (a)		6,082,706		11,618
Consumer Finance (0.3%)
Upstart Holdings, Inc. (a)(b)		523,741		16,561
Electronic Equipment, Instruments & Components (0.0%) (c)
Magic Leap, Class A (a)(d)(e) (acquisition cost — $18,812; acquired 12/22/15)		38,705		—
Entertainment (5.9%)
ROBLOX Corp., Class A (a)		8,497,955		279,243
Sea Ltd. ADR (Singapore) (a)		1,246,564		83,345
				362,588
Health Care Equipment & Supplies (0.6%)
Dexcom, Inc. (a)		459,452		34,243
Health Care Providers & Services (3.9%)
Agilon health, Inc. (a)		8,468,428		184,866
Guardant Health, Inc. (a)		1,314,244		53,016
				237,882
Health Care Technology (4.5%)
Doximity, Inc., Class A (a)		2,837,720		98,810
GoodRx Holdings, Inc., Class A (a)		3,175,051		18,796
Veeva Systems, Inc., Class A (a)		800,384		158,508
				276,114
Hotels, Restaurants & Leisure (1.3%)
Airbnb, Inc., Class A (a)		869,656		77,469
Information Technology Services (24.7%)
Adyen NV (Netherlands) (a)		114,377		165,061
Affirm Holdings, Inc. (a)		1,585,426		28,633
Block, Inc., Class A (a)		2,791,171		171,545
Cloudflare, Inc., Class A (a)		7,153,217		312,953
MongoDB, Inc. (a)		440,232		114,240
Shopify, Inc., Class A (Canada) (a)		9,076,880		283,562
Snowflake, Inc., Class A (a)		3,090,691		429,792
				1,505,786
Interactive Media & Services (1.5%)
ZoomInfo Technologies, Inc., Class A (a)		2,694,881		89,578

	Shares		Value (000)
Internet & Direct Marketing Retail (12.2%)
Chewy, Inc., Class A (a)		3,878,682	$	134,668
Coupang, Inc. (a)		9,214,681		117,487
DoorDash, Inc., Class A (a)		4,790,179		307,386
MercadoLibre, Inc. (a)		181,879		115,833
Wayfair, Inc., Class A (a)		1,575,570		68,632
				744,006
Leisure Products (0.3%)
Peloton Interactive, Inc., Class A (a)		2,136,476		19,613
Life Sciences Tools & Services (2.3%)
10X Genomics, Inc., Class A (a)		2,032,798		91,984
Illumina, Inc. (a)		281,511		51,899
				143,883
Pharmaceuticals (6.7%)
Royalty Pharma PLC, Class A		9,787,734		411,476
Road & Rail (6.0%)
Grab Holdings Ltd., Class A (Singapore) (a)		30,175,710		76,344
Uber Technologies, Inc. (a)		14,303,746		292,655
				368,999
Semiconductors & Semiconductor Equipment (3.3%)
ASML Holding NV (Netherlands)		427,546		203,461
Software (19.8%)
Bill.Com Holdings, Inc. (a)		1,778,968		195,580
Datadog, Inc., Class A (a)		3,462,658		329,783
Trade Desk, Inc. (The), Class A (a)		7,330,121		307,059
Unity Software, Inc. (a)		3,933,964		144,849
Zoom Video Communications, Inc., Class A (a)		2,134,892		230,504
				1,207,775
Specialty Retail (0.3%)
Carvana Co. (a)		761,179		17,187
Total Common Stocks (Cost $8,968,872)				5,859,529
Preferred Stock (1.7%)
Software (1.7%)
Databricks, Inc. (a)(d)(e) (acquisition cost — $136,746; acquired 8/31/21) (Cost $136,746)		620,296		107,994
Investment Company (0.8%)
Grayscale Bitcoin Trust (a) (Cost $174,869)		4,030,825		48,612
Short-Term Investments (2.9%)
Securities held as Collateral on Loaned Securities (1.1%)
Investment Company (0.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		54,409,221		54,409

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Growth Portfolio

	Face Amount (000)		Value (000)
Repurchase Agreements (0.2%)
HSBC Securities USA, Inc., (1.50%, dated 6/30/22, due 7/1/22; proceeds $4,251; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 2/15/23 - 5/15/32; valued at $4,336)	$	4,251	$	4,251
Merrill Lynch & Co., Inc., (1.46%, dated 6/30/22, due 7/1/22; proceeds $8,230; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $8,395)		8,230		8,230
				12,481
Total Securities held as Collateral on Loaned Securities (Cost $66,890)				66,890

	Shares		Value (000)
Investment Company (1.8%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $110,087)		110,086,819	$	110,087
Total Short-Term Investments (Cost $176,977)				176,977
Total Investments Excluding Purchased Options (101.4%) (Cost $9,457,464)				6,193,112
Total Purchased Options Outstanding (0.1%) (Cost $58,690)				4,248
Total Investments (101.5%) (Cost $9,516,154) Including $66,522 of Securities Loaned (f)(g)(h)				6,197,360
Liabilities in Excess of Other Assets (–1.5%)				(94,022	)
Net Assets (100.0%)			$	6,103,338

The Fund had the following Derivative Contract — PIPE open at June 30, 2022:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Depreciation (000)				% of Net Assets
Social Capital Suvretta Holdings Corp.III				ProKidney, LP (a)(d)(e)(i)(j)				$	38,659,530			12/30/22				$	(5,579	)			(0.09	)%

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2022.

(d) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities (excluding 144A holdings) at June 30, 2022 amounts to approximately $102,415,000 and represents 1.7% of net assets.

(e) At June 30, 2022, the Fund held fair valued securities valued at approximately $102,415,000, representing 1.7% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(f) The approximate fair value and percentage of net assets, $165,061,000 and 2.7%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Consolidated Portfolio of Investments.

(g) Securities are available for collateral in connection with a derivative contract - PIPE and purchased options.

(h) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $585,991,000 and the aggregate gross unrealized depreciation is approximately $3,910,364,000, resulting in net unrealized depreciation of approximately $3,324,373,000.

(i) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to Purchase 3,865,953 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between ProKidney, LP, and Social Capital Suvretta Holdings Corp. III a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Social Capital Suvretta Holdings Corp. III and ProKidney, LP, is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the Fund is no longer obligated to fulfill its commitment to Social Capital Suvretta Holdings Corp. III and ProKidney, LP. The investment is restricted from resale until the settlement date.

(j) Investment is valued based on the underlying stock price and significant unobservable inputs that factor in volatility and discount for lack of marketability and transaction risk and is classified as Level 3 in the fair value hierarchy.

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

SPAC Special Purpose Acquisition Company.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Growth Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
Goldman Sachs International	USD/CNH	CNH	7.27	Nov-22		4,217,855,933		4,217,856	$	4,167	$	20,248	$	(16,081	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.28	Jul-22		4,097,984,739		4,097,985		33		19,092		(19,059	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		1,916,631,520		1,916,632		42		13,018		(12,976	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		1,193,724,935		1,193,725		6		6,332		(6,326	)
									$	4,248	$	58,690	$	(54,442	)

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Information Technology Services		24.6	%
Other**		23.2
Software		21.5
Internet & Direct Marketing Retail		12.1
Pharmaceuticals		6.7
Road & Rail		6.0
Entertainment		5.9
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

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

*** Does not include an open PIPE contract with unrealized depreciation of approximately $5,579,000

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Growth Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $9,351,658)	$	6,032,864
Investment in Security of Affiliated Issuer, at Value (Cost $164,496)		164,496
Total Investments in Securities, at Value (Cost $9,516,154)		6,197,360
Foreign Currency, at Value (Cost —@)		—	@
Cash from Securities Lending		3,623
Receivable for Fund Shares Sold		10,179
Due from Broker		1,710
Receivable from Securities Lending Income		509
Receivable from Affiliate		98
Dividends Receivable		85
Other Assets		1,027
Total Assets		6,214,591
Liabilities:
Collateral on Securities Loaned, at Value		70,514
Payable for Fund Shares Redeemed		16,714
Payable for Advisory Fees		7,580
Due to Broker		6,565
Unrealized Depreciation on Derivative Contract — PIPE		5,579
Payable for Sub Transfer Agency Fees — Class I		1,212
Payable for Sub Transfer Agency Fees — Class A		1,313
Payable for Sub Transfer Agency Fees — Class L		28
Payable for Sub Transfer Agency Fees — Class C		100
Payable for Shareholder Services Fees — Class A		434
Payable for Distribution and Shareholder Services Fees — Class L		39
Payable for Distribution and Shareholder Services Fees — Class C		167
Payable for Administration Fees		423
Payable for Custodian Fees		99
Payable for Transfer Agency Fees — Class I		22
Payable for Transfer Agency Fees — Class A		49
Payable for Transfer Agency Fees — Class L		4
Payable for Transfer Agency Fees — Class C		4
Payable for Transfer Agency Fees — Class R6*		3
Payable for Transfer Agency Fees — Class IR		1
Payable for Directors' Fees and Expenses		38
Payable for Professional Fees		29
Other Liabilities		336
Total Liabilities		111,253
Net Assets	$	6,103,338
Net Assets Consist of:
Paid-in-Capital	$	9,621,360
Total Accumulated Loss		(3,518,022	)
Net Assets	$	6,103,338

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Growth Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	2,209,262
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		69,012,377
Net Asset Value, Offering and Redemption Price Per Share	$	32.01
CLASS A:
Net Assets	$	1,908,629
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		65,337,238
Net Asset Value, Redemption Price Per Share	$	29.21
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.62
Maximum Offering Price Per Share	$	30.83
CLASS L:
Net Assets	$	59,697
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,277,275
Net Asset Value, Offering and Redemption Price Per Share	$	26.21
CLASS C:
Net Assets	$	190,917
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		7,483,916
Net Asset Value, Offering and Redemption Price Per Share	$	25.51
CLASS R6:*
Net Assets	$	1,652,529
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		50,872,271
Net Asset Value, Offering and Redemption Price Per Share	$	32.48
CLASS IR:
Net Assets	$	82,304
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,533,935
Net Asset Value, Offering and Redemption Price Per Share	$	32.48
⁽¹⁾ Including: Securities on Loan, at Value:	$	66,522

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Growth Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $259 of Foreign Taxes Withheld)	$	5,443
Income from Securities Loaned — Net		1,882
Dividends from Security of Affiliated Issuer (Note G)		208
Total Investment Income		7,533
Expenses:
Advisory Fees (Note B)		18,687
Shareholder Services Fees — Class A (Note D)		4,013
Distribution and Shareholder Services Fees — Class L (Note D)		354
Distribution and Shareholder Services Fees — Class C (Note D)		1,578
Sub Transfer Agency Fees — Class I		2,719
Sub Transfer Agency Fees — Class A		2,486
Sub Transfer Agency Fees — Class L		44
Sub Transfer Agency Fees — Class C		192
Administration Fees (Note C)		3,931
Registration Fees		430
Shareholder Reporting Fees		382
Transfer Agency Fees — Class I (Note E)		54
Transfer Agency Fees — Class A (Note E)		112
Transfer Agency Fees — Class L (Note E)		8
Transfer Agency Fees — Class C (Note E)		6
Transfer Agency Fees — Class R6* (Note E)		7
Transfer Agency Fees — Class IR (Note E)		1
Custodian Fees (Note F)		180
Directors' Fees and Expenses		86
Professional Fees		76
Pricing Fees		2
Other Expenses		148
Total Expenses		35,496
Rebate from Morgan Stanley Affiliate (Note G)		(95	)
Net Expenses		35,401
Net Investment Loss		(27,868	)
Realized Gain (Loss):
Investments Sold		(863,182	)
Foreign Currency Translation		1
Net Realized Loss		(863,181	)
Change in Unrealized Appreciation (Depreciation):
Investments		(7,888,304	)
Foreign Currency Translation		(—	@)
Derivative Contracts — PIPE		(5,579	)
Net Change in Unrealized Appreciation (Depreciation)		(7,893,883	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(8,757,064	)
Net Decrease in Net Assets Resulting from Operations	$	(8,784,932	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Growth Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(27,868	)	$	(112,218	)
Net Realized Gain (Loss)		(863,181	)		3,557,611
Net Change in Unrealized Appreciation (Depreciation)		(7,893,883	)		(3,430,342	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(8,784,932	)		15,051
Dividends and Distributions to Shareholders:
Class I		—			(1,288,168	)
Class A		—			(1,170,586	)
Class L		—			(35,712	)
Class C		—			(128,990	)
Class R6*		—			(702,313	)
Class IR		—			(61,993	)
Total Dividends and Distributions to Shareholders		—			(3,387,762	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		1,055,642			2,891,895
Distributions Reinvested		—			1,085,803
Redeemed		(1,811,544	)		(3,287,298	)
Class A:
Subscribed		181,390			1,691,828
Distributions Reinvested		—			1,133,414
Redeemed		(718,271	)		(1,799,343	)
Class L:
Exchanged		13			315
Distributions Reinvested		—			35,154
Redeemed		(7,943	)		(22,201	)
Class C:
Subscribed		28,352			158,102
Distributions Reinvested		—			115,585
Redeemed		(78,161	)		(127,437	)
Class R6:*
Subscribed		488,613			510,697
Distributions Reinvested		—			681,196
Redeemed		(313,910	)		(664,133	)
Class IR:
Subscribed		43,687			65,967
Distributions Reinvested		—			61,945
Redeemed		(104,161	)		(137,888	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(1,236,293	)		2,393,601
Total Decrease in Net Assets		(10,021,225	)		(979,110	)
Net Assets:
Beginning of Period		16,124,563			17,103,673
End of Period	$	6,103,338		$	16,124,563

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Growth Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		22,556			30,517
Shares Issued on Distributions Reinvested		—			14,262
Shares Redeemed		(37,471	)		(35,372	)
Net Increase (Decrease) in Class I Shares Outstanding		(14,915	)		9,407
Class A:
Shares Subscribed		4,094			18,774
Shares Issued on Distributions Reinvested		—			16,292
Shares Redeemed		(16,956	)		(20,936	)
Net Increase (Decrease) in Class A Shares Outstanding		(12,862	)		14,130
Class L:
Shares Exchanged		—	@		5
Shares Issued on Distributions Reinvested		—			562
Shares Redeemed		(207	)		(280	)
Net Increase (Decrease) in Class L Shares Outstanding		(207	)		287
Class C:
Shares Subscribed		697			1,988
Shares Issued on Distributions Reinvested		—			1,895
Shares Redeemed		(2,034	)		(1,698	)
Net Increase (Decrease) in Class C Shares Outstanding		(1,337	)		2,185
Class R6:*
Shares Subscribed		9,715			5,170
Shares Issued on Distributions Reinvested		—			8,826
Shares Redeemed		(6,449	)		(6,897	)
Net Increase in Class R6 Shares Outstanding		3,266			7,099
Class IR:
Shares Subscribed		853			674
Shares Issued on Distributions Reinvested		—			803
Shares Redeemed		(2,562	)		(1,454	)
Net Increase (Decrease) in Class IR Shares Outstanding		(1,709	)		23

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Growth Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	74.29		$	91.47		$	46.33		$	41.75		$	41.65		$	35.19
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.12	)		(0.50	)		(0.38	)		(0.19	)		(0.08	)		(0.11	)
Net Realized and Unrealized Gain (Loss)		(42.16	)		1.32			54.08			9.73			3.50			15.39
Total from Investment Operations		(42.28	)		0.82			53.70			9.54			3.42			15.28
Distributions from and/or in Excess of:
Net Realized Gain		—			(18.00	)		(8.56	)		(4.96	)		(3.32	)		(8.82	)
Net Asset Value, End of Period	$	32.01		$	74.29		$	91.47		$	46.33		$	41.75		$	41.65
Total Return⁽³⁾		(56.91	)%⁽⁶⁾		0.43	%		115.57	%		23.16	%		7.66	%		43.83	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,209,262		$	6,234,787		$	6,816,690		$	2,440,640		$	1,785,893		$	991,362
Ratio of Expenses Before Expense Limitation		0.64	%⁽⁷⁾		0.56	%		N/A			0.59	%		N/A			N/A
Ratio of Expenses After Expense Limitation		0.64	%⁽⁴⁾⁽⁷⁾		0.56	%⁽⁴⁾		0.54	%⁽⁴⁾		0.58	%⁽⁴⁾		0.58	%⁽⁴⁾		0.61	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			0.58	%⁽⁴⁾		N/A			0.61	%⁽⁴⁾
Ratio of Net Investment Loss		(0.49	)%⁽⁴⁾⁽⁷⁾		(0.51	)%⁽⁴⁾		(0.53	)%⁽⁴⁾		(0.38	)%⁽⁴⁾		(0.17	)%⁽⁴⁾		(0.25	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		25	%⁽⁶⁾		59	%		60	%		87	%		41	%		55	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Growth Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021				2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	67.88		$	85.31			$	43.57		$	39.61		$	39.77		$	33.97
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.16	)		(0.70	)			(0.51	)		(0.30	)		(0.19	)		(0.22	)
Net Realized and Unrealized Gain (Loss)		(38.51	)		1.27				50.81			9.22			3.35			14.84
Total from Investment Operations		(38.67	)		0.57				50.30			8.92			3.16			14.62
Distributions from and/or in Excess of:
Net Realized Gain		—			(18.00	)			(8.56	)		(4.96	)		(3.32	)		(8.82	)
Net Asset Value, End of Period	$	29.21		$	67.88			$	85.31		$	43.57		$	39.61		$	39.77
Total Return⁽³⁾		(56.97	)%⁽⁶⁾		0.16	%			115.09	%		22.81	%		7.39	%		43.45	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,908,629		$	5,307,929			$	5,465,808		$	2,399,450		$	2,043,706		$	1,827,833
Ratio of Expenses Before Expense Limitation		0.90	%⁽⁷⁾		0.82	%			N/A			0.84	%		N/A			N/A
Ratio of Expenses After Expense Limitation		0.90	%⁽⁴⁾⁽⁷⁾		0.82	%⁽⁴⁾			0.79	%⁽⁴⁾		0.83	%⁽⁴⁾		0.84	%⁽⁴⁾		0.88	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A				N/A			0.83	%⁽⁴⁾		N/A			0.88	%⁽⁴⁾
Ratio of Net Investment Loss		(0.74	)%⁽⁴⁾⁽⁷⁾		(0.77	)%⁽⁴⁾			(0.77	)%⁽⁴⁾		(0.64	)%⁽⁴⁾		(0.43	)%⁽⁴⁾		(0.52	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾			0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		25	%⁽⁶⁾		59	%	��		60	%		87	%		41	%		55	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Growth Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	61.05		$	78.85		$	40.77		$	37.51		$	37.99		$	32.90
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.24	)		(1.03	)		(0.76	)		(0.50	)		(0.39	)		(0.43	)
Net Realized and Unrealized Gain (Loss)		(34.60	)		1.23			47.40			8.72			3.23			14.34
Total from Investment Operations		(34.84	)		0.20			46.64			8.22			2.84			13.91
Distributions from and/or in Excess of:
Net Realized Gain		—			(18.00	)		(8.56	)		(4.96	)		(3.32	)		(8.82	)
Net Asset Value, End of Period	$	26.21		$	61.05		$	78.85		$	40.77		$	37.51		$	37.99
Total Return⁽³⁾		(57.07	)%⁽⁶⁾		(0.30	)%		114.01	%		22.22	%		6.89	%		42.69	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	59,697		$	151,668		$	173,317		$	93,053		$	83,818		$	90,177
Ratio of Expenses Before Expense Limitation		1.35	%⁽⁷⁾		1.28	%		N/A			1.33	%		N/A			N/A
Ratio of Expenses After Expense Limitation		1.35	%⁽⁴⁾⁽⁷⁾		1.28	%⁽⁴⁾		1.29	%⁽⁴⁾		1.32	%⁽⁴⁾		1.31	%⁽⁴⁾		1.42	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			1.32	%⁽⁴⁾		N/A			1.42	%⁽⁴⁾
Ratio of Net Investment Loss		(1.19	)%⁽⁴⁾⁽⁷⁾		(1.24	)%⁽⁴⁾		(1.27	)%⁽⁴⁾		(1.12	)%⁽⁴⁾		(0.90	)%⁽⁴⁾		(1.05	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		25	%⁽⁶⁾		59	%		60	%		87	%		41	%		55	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Growth Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	59.49		$	77.49		$	40.23		$	37.17		$	37.76		$	32.81
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.28	)		(1.23	)		(0.93	)		(0.61	)		(0.51	)		(0.51	)
Net Realized and Unrealized Gain (Loss)		(33.70	)		1.23			46.75			8.63			3.24			14.28
Total from Investment Operations		(33.98	)		0.00	⁽³⁾		45.82			8.02			2.73			13.77
Distributions from and/or in Excess of:
Net Realized Gain		—			(18.00	)		(8.56	)		(4.96	)		(3.32	)		(8.82	)
Net Asset Value, End of Period	$	25.51		$	59.49		$	77.49		$	40.23		$	37.17		$	37.76
Total Return⁽⁴⁾		(57.12	)%⁽⁷⁾		(0.55	)%		113.48	%		21.91	%		6.61	%		42.37	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	190,917		$	524,748		$	514,190		$	166,303		$	92,431		$	37,524
Ratio of Expenses Before Expense Limitation		1.61	%⁽⁸⁾		1.55	%		N/A			1.59	%		N/A			N/A
Ratio of Expenses After Expense Limitation		1.61	%⁽⁵⁾⁽⁸⁾		1.55	%⁽⁵⁾		1.53	%⁽⁵⁾		1.58	%⁽⁵⁾		1.57	%⁽⁵⁾		1.63	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			1.58	%⁽⁵⁾		N/A			1.63	%⁽⁵⁾
Ratio of Net Investment Loss		(1.46	)%⁽⁵⁾⁽⁸⁾		(1.50	)%⁽⁵⁾		(1.51	)%⁽⁵⁾		(1.38	)%⁽⁵⁾		(1.17	)%⁽⁵⁾		(1.26	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		25	%⁽⁷⁾		59	%		60	%		87	%		41	%		55	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Growth Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽²⁾			2019⁽²⁾			2018⁽²⁾			2017⁽²⁾
Net Asset Value, Beginning of Period	$	75.32		$	92.42		$	46.73		$	42.04		$	41.89		$	35.32
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.08	)		(0.41	)		(0.32	)		(0.15	)		(0.04	)		(0.07	)
Net Realized and Unrealized Gain (Loss)		(42.76	)		1.31			54.57			9.80			3.51			15.46
Total from Investment Operations		(42.84	)		0.90			54.25			9.65			3.47			15.39
Distributions from and/or in Excess of:
Net Realized Gain		—			(18.00	)		(8.56	)		(4.96	)		(3.32	)		(8.82	)
Net Asset Value, End of Period	$	32.48		$	75.32		$	92.42		$	46.73		$	42.04		$	41.89
Total Return⁽⁴⁾		(56.88	)%⁽⁷⁾		0.51	%		115.76	%		23.26	%		7.74	%		43.98	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,652,529		$	3,585,865		$	3,743,697		$	1,560,148		$	1,202,659		$	1,131,543
Ratio of Expenses Before Expense Limitation		0.49	%⁽⁸⁾		0.46	%		N/A			0.50	%		N/A			N/A
Ratio of Expenses After Expense Limitation		0.49	%⁽⁵⁾⁽⁸⁾		0.46	%⁽⁵⁾		0.47	%⁽⁵⁾		0.49	%⁽⁵⁾		0.50	%⁽⁵⁾		0.53	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			0.49	%⁽⁵⁾		N/A			0.53	%⁽⁵⁾
Ratio of Net Investment Loss		(0.33	)%⁽⁵⁾⁽⁸⁾		(0.41	)%⁽⁵⁾		(0.45	)%⁽⁵⁾		(0.29	)%⁽⁵⁾		(0.09	)%⁽⁵⁾		(0.16	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		25	%⁽⁷⁾		59	%		60	%		87	%		41	%		55	%

(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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Growth Portfolio

	Class IR
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 15, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	75.32		$	92.41		$	46.73		$	42.04		$	52.16
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.08	)		(0.41	)		(0.31	)		(0.15	)		(0.04	)
Net Realized and Unrealized Gain (Loss)		(42.76	)		1.32			54.55			9.80			(6.76	)
Total from Investment Operations		(42.84	)		0.91			54.24			9.65			(6.80	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(18.00	)		(8.56	)		(4.96	)		(3.32	)
Net Asset Value, End of Period	$	32.48		$	75.32		$	92.41		$	46.73		$	42.04
Total Return⁽⁴⁾		(56.88	)%⁽⁶⁾		0.52	%		115.74	%		23.26	%		(13.48	)%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	82,304		$	319,566		$	389,971		$	269,241		$	149,578
Ratio of Expenses Before Expense Limitation		0.49	%⁽⁸⁾		0.46	%		N/A			0.50	%		N/A
Ratio of Expenses After Expense Limitation		0.49	%⁽⁵⁾⁽⁸⁾		0.46	%⁽⁵⁾		0.47	%⁽⁵⁾		0.49	%⁽⁵⁾		0.49	%⁽⁵⁾⁽⁸⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			0.49	%⁽⁵⁾		N/A
Ratio of Net Investment Loss		(0.32	)%⁽⁵⁾⁽⁸⁾		(0.41	)%⁽⁵⁾		(0.45	)%⁽⁵⁾		(0.30	)%⁽⁵⁾		(0.14	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁸⁾		0.00	%⁽⁷⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		25	%⁽⁶⁾		59	%		60	%		87	%		41	%

(1) Not consolidated.

(2) Commencement of Offering.

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

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

(6) Not annualized.

(7) Amount is less than 0.005%.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Growth Portfolio. The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of large capitalization companies.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015, the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Growth Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary represented approximately $54,689,000 or approximately 0.90% of the total net assets of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (5) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by

the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (7) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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	$	25,229	$	—	$	—	$	25,229
Biotechnology		41,397		—		—		41,397
Capital Markets		40,887		—		—		40,887
Chemicals		23,777		—		—		23,777
Commercial Services & Supplies		11,618		—		—		11,618
Consumer Finance		16,561		—		—		16,561

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)
Electronic Equipment, Instruments & Components	$	—	$	—	$	—	†	$	—	†
Entertainment		362,588		—		—			362,588
Health Care Equipment & Supplies		34,243		—		—			34,243
Health Care Providers & Services		237,882		—		—			237,882
Health Care Technology		276,114		—		—			276,114
Hotels, Restaurants & Leisure		77,469		—		—			77,469
Information Technology Services		1,340,725		165,061		—			1,505,786
Interactive Media & Services		89,578		—		—			89,578
Internet & Direct Marketing Retail		744,006		—		—			744,006
Leisure Products		19,613		—		—			19,613
Life Sciences Tools & Services		143,883		—		—			143,883
Pharmaceuticals		411,476		—		—			411,476
Road & Rail		368,999		—		—			368,999
Semiconductors & Semiconductor Equipment		203,461		—		—			203,461
Software		1,207,775		—		—			1,207,775
Specialty Retail		17,187		—		—			17,187
Total Common Stocks		5,694,468		165,061		—	†		5,859,529	†
Preferred Stock
Software		—		—		107,994			107,994
Investment Company		48,612		—		—			48,612
Call Options Purchased		—		4,248		—			4,248
Short-Term Investments
Investment Company		164,496		—		—			164,496
Repurchase Agreements		—		12,481		—			12,481
Total Short-Term Investments		164,496		12,481		—			176,977
Total Assets		5,907,576		181,790		107,994	†		6,197,360	†
Liabilities:
Derivative Contract — PIPE		—		—		(5,579	)		(5,579	)
Total	$	5,907,576	$	181,790	$	102,415	†	$	6,191,781	†

† Includes a security 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

	Common Stock (000)			Preferred Stock (000)			Derivative Contract — PIPE (000)
Beginning Balance	$	—		$	139,951	†	$	—
Purchases		—			—			—
Sales		—			—			—
PIPE transaction		—			—			(5,579	)
Amortization of discount		—			—			—
Transfers in		—	†		—			—
Transfers out		—			(—	)†		—
Corporate actions		—			—			—
Change in unrealized appreciation (depreciation)		—			(31,957	)		—
Realized gains (losses)		—			—			—
Ending Balance	$	—	†	$	107,994		$	(5,579	)
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022	$	—		$	(31,957	)	$	(5,579	)

† Includes a security valued at zero.

Fair Value at
June 30, 2022
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

Preferred Stock

107,994

Discounted Cash Flow

Weighted Average
Cost of Capital
Perpetual Growth Rate

13.5%
3.5%

Decrease
Increase

Market Comparable
Companies

Enterprise Value/
Revenue

25.0x

Increase

Discount for Lack
of Marketability

14.0%

Decrease

PIPE

(5,579

)

Market Implied

Discount for Lack
of Marketability and
Transaction Risk

14.0%

Decrease

* Amount is indicative of the weighted average.

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,

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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 transactions for the period is reflected in the Consolidated Statement of Operations.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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

Securities" in the Consolidated Statement of Assets and Liabilities. Premiums paid for purchasing options which expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

At June 30, 2022, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

4,248

(a)

Liability Derivatives
Consolidated
Statement of Assets
and Liabilities
Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Depreciation on
Derivative Contract — PIPE

Equity Risk

(5,579

)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(33,678	)(b)

(b) 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)	$	16,013	(c)	��
Equity Risk	Derivative Contract — PIPE		(5,579	)
	Total	$	10,434

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At June 30, 2022, 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 (000)			Liabilities (000)
Purchased Options	$	4,248	(a)(d)	$	—
Derivative Contract — PIPE		—			(5,579	)(e)
Total	$	4,248		$	(5,579	)

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

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

(e) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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(f) (000)			Net Amount (not less than $0) (000)
Goldman Sachs International	$	4,167	$	—	$	(4,167	)	$	0
JP Morgan Chase Bank NA		81		—		(81	)		0
Total	$	4,248	$	—	$	(4,248	)	$	0

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount		12,525,389,000
Derivative Contract — PIPE:
Average monthly notional amount	$	38,660,000

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 June 30, 2022:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	66,522	(g)	$	—	$	(66,522	)(h)(i)	$	0

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

(h) The Fund received cash collateral of approximately $70,514,000, of which approximately $66,890,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $3,624,000, which is not reflected in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $1,782,000 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.

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

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	$	70,514	$	—	$	—	$	—	$	70,514
Total Borrowings	$	70,514	$	—	$	—	$	—	$	70,514
Gross amount of recognized liabilities for securities lending transactions									$	70,514

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Restricted securities are identified in the Consolidated Portfolio of Investments.

methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Next $1 billion				Next $1 billion				Over $3 billion
	0.50	%			0.45	%			0.40	%			0.35	%

For the six months ended June 30, 2022, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.38% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual 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, 0.73% for Class R6 shares and 0.73% 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 Directors 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 six months ended June 30, 2022.

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

Under a Sub-Administration Agreement between the Administrator and State Street, State Street provides certain administrative services to the Company. For such services, the

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

purchases and sales activity and account maintenance fees, plus reimbursement for certain out-of-pocket expenses.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $2,536,359,000 and $3,568,158,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $95,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	345,484			$	1,742,836			$	1,923,824			$	208

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	164,496

During the six months ended June 30, 2022, the Fund incurred approximately $15,000 in brokerage commissions with Morgan Stanley & Co. LLC, an affiliate of the Adviser/Administrator, Sub-Adviser and Distributor, for portfolio transactions executed on behalf of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

provisions of the Rule. For the six months ended June 30, 2022, the Fund did not engage in any cross-trade transactions.

The Company has an unfunded noncontributory defined benefit pension plan covering certain independent Directors of the Company who will have served as independent Directors 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 Directors 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 six months ended June 30, 2022, included in "Directors' fees and expenses" in the Consolidated Statement of Operations amounted to approximately $1,000. At June 30, 2022, the Fund had an accrued pension liability of approximately $38,000, which is reflected as "Payable for Directors' fees and Expenses" in the Consolidated Statement of Assets and Liabilities.

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 December 31, 2021 remains subject to examination by taxing authorities.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	709,582	$	2,678,180	$	345,276	$	1,154,186

Permanent differences, primarily due to equalization debits, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$(368,471)				$368,471

At December 31, 2021, 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)
$—				$724,751

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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. During the six months ended June 30, 2022, the Fund did not have any borrowings under the Facility.

K. Market Risk and Risks Relating to Certain Financial Instruments:

advisories, (iii) the effects on the financial markets, (iv) government and regulatory responses, and (v) the effects on the economy overall as a result of developments such as disruption to consumer demand, economic output and supply chains. The duration and extent of COVID-19 and associated economic and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

causing the Fund to incur the opportunity cost of missed investment opportunities the Fund otherwise could have benefited from; a transaction once identified or effected may prove unsuccessful and an investment in the SPAC may lose value; the warrants or other rights with respect to the SPAC held by the Fund may expire worthless or may be repurchased or retired by the SPAC at an unfavorable price; and an investment in a SPAC may be diluted by additional later offerings of interests in the SPAC or by other investors exercising existing rights to purchase shares of the SPAC. In addition, a SPAC target company may have limited operating experience, a smaller size, limited product lines, markets, distribution channels and financial and managerial resources. Investing in the securities of smaller companies involves greater risk, and portfolio price volatility.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIGRWSAN
4873715 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Inception Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					8
Consolidated Statement of Operations					10
Consolidated Statements of Changes in Net Assets					11
Consolidated Financial Highlights					13
Notes to Consolidated Financial Statements					18
Investment Advisory Agreement Approval					31
Liquidity Risk Management Program					33
U.S. Customer Privacy Notice					34
Director and Officer Information					37

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Inception Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Inception Portfolio Class I	$	1,000.00	$	470.10	$	1,019.84	$	3.65	$	5.01		1.00	%
Inception Portfolio Class A		1,000.00		469.70		1,018.10		4.92		6.76		1.35
Inception Portfolio Class L		1,000.00		468.20		1,015.62		6.73		9.25		1.85
Inception Portfolio Class C		1,000.00		467.90		1,014.38		7.64		10.49		2.10
Inception Portfolio Class R6⁽¹⁾		1,000.00		470.20		1,020.18		3.39		4.66		0.93

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Inception Portfolio

	Shares		Value (000)
Common Stocks (94.9%)
Airlines (0.5%)
Joby Aviation, Inc. (a)(b)		485,873	$	2,386
Biotechnology (3.1%)
4D Molecular Therapeutics, Inc. (a)		85,554		597
Beam Therapeutics, Inc. (a)		56,625		2,192
C4 Therapeutics, Inc. (a)		101,739		767
Century Therapeutics, Inc. (a)(b)		171,321		1,439
Fate Therapeutics, Inc. (a)		96,883		2,401
Graphite Bio, Inc. (a)		262,111		721
Intellia Therapeutics, Inc. (a)		87,007		4,504
Relay Therapeutics, Inc. (a)		90,402		1,514
Senti Biosciences, Inc. (a)		347,156		682
Senti Biosciences, Inc. (a)(c)		70,441		128
Senti Biosciences, Inc. Founder Shares (a)(c)		144,566		243
				15,188
Chemicals (0.6%)
Ginkgo Bioworks Holdings, Inc. (a)(b)		809,632		1,927
Zymergen, Inc. (a)		888,456		1,093
				3,020
Commercial Services & Supplies (0.2%)
Aurora Innovation, Inc. (a)		510,489		975
Communications Equipment (1.5%)
Calix, Inc. (a)		221,711		7,569
Consumer Finance (1.1%)
Upstart Holdings, Inc. (a)(b)		164,585		5,204
Diversified Consumer Services (2.2%)
Duolingo, Inc. (a)(b)		123,506		10,813
Diversified Holding Companies (3.9%)
Big Sky Growth Partners, Inc. (Units) SPAC (a)(d)		690,073		6,756
Meli Kaszek Pioneer Corp., SPAC (a)		483,316		4,785
Ribbit LEAP Ltd. (Units) SPAC (a)(d)		369,035		3,676
TCV Acquisition Corp., Class A SPAC (a)		389,788		3,800
				19,017
Diversified Telecommunication Services (4.5%)
Anterix, Inc. (a)		537,891		22,091
Electrical Equipment (0.3%)
Heliogen, Inc. (a)(b)		781,837		1,650
Health Care Equipment & Supplies (2.5%)
Angle PLC (United Kingdom) (a)		1,868,938		2,207
Figs, Inc., Class A (a)		960,212		8,748
Outset Medical, Inc. (a)		100,564		1,494
				12,449
Health Care Providers & Services (11.6%)
23andMe Holding Co., Class A (a)(b)		882,641		2,189
Agilon health, Inc. (a)		1,614,634		35,248
Alignment Healthcare, Inc. (a)		245,092		2,797
Guardant Health, Inc. (a)		92,351		3,725
Oak Street Health, Inc. (a)		147,047		2,417

	Shares		Value (000)
Privia Health Group, Inc. (a)		290,117	$	8,448
Signify Health, Inc., Class A (a)		157,469		2,173
				56,997
Health Care Technology (7.8%)
Doximity, Inc., Class A (a)		717,905		24,998
GoodRx Holdings, Inc., Class A (a)		1,057,833		6,262
Inspire Medical Systems, Inc. (a)		13,596		2,484
Schrodinger, Inc. (a)		114,092		3,013
Teladoc Health, Inc. (a)		45,924		1,525
				38,282
Hotels, Restaurants & Leisure (1.2%)
Membership Collective Group, Inc., Class A (a)(b)		931,642		6,037
Household Durables (1.7%)
Cricut, Inc., Class A (a)(b)		347,194		2,132
Victoria PLC (United Kingdom) (a)		1,138,976		6,257
				8,389
Information Technology Services (8.1%)
Affirm Holdings, Inc. (a)		883,137		15,950
Dlocal Ltd. (a)		422,026		11,078
Fastly, Inc., Class A (a)		437,820		5,083
Marqeta, Inc., Class A (a)		932,934		7,566
				39,677
Insurance (0.5%)
Trupanion, Inc. (a)		44,523		2,683
Internet & Direct Marketing Retail (5.5%)
BARK, Inc. (a)		1,463,960		1,874
Farfetch Ltd., Class A (a)		1,195,284		8,558
Global-e Online Ltd. (Israel) (a)		832,420		16,790
				27,222
Leisure Products (0.8%)
Peloton Interactive, Inc., Class A (a)		399,334		3,666
Life Sciences Tools & Services (5.5%)
10X Genomics, Inc., Class A (a)		364,755		16,505
MaxCyte, Inc. (a)		545,679		2,581
NanoString Technologies, Inc. (a)		114,950		1,460
Seer, Inc. (a)		278,350		2,491
SomaLogic, Inc. (a)		449,020		2,030
Standard BioTools Inc. (a)		1,214,333		1,943
				27,010
Media (0.5%)
Cardlytics, Inc. (a)		99,790		2,226
Metals & Mining (1.2%)
MP Materials Corp. (a)		181,861		5,834
Pharmaceuticals (0.9%)
ATAI Life Sciences NV (a)(b)		646,175		2,352
GH Research PLC (a)(b)		184,584		1,842
				4,194

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Inception Portfolio

	Shares		Value (000)
Professional Services (1.2%)
Upwork, Inc. (a)		291,313	$	6,024
Real Estate Management & Development (2.0%)
Opendoor Technologies, Inc. (a)(b)		447,327		2,107
Redfin Corp. (a)(b)		240,572		1,982
WeWork, Inc., Class A REIT (a)(b)		1,156,592		5,806
				9,895
Software (23.9%)
Appian Corp. (a)		54,799		2,595
Avalara, Inc. (a)		60,934		4,302
Cipher Mining, Inc. (a)		745,661		1,022
Clear Secure, Inc., Class A (a)(b)		359,807		7,196
Clearwater Analytics Holdings, Inc. (a)		204,665		2,464
Confluent, Inc., Class A (a)		262,129		6,092
Gitlab, Inc., Class A (a)		542,835		28,846
HashiCorp, Inc., Class A (a)(b)		141,678		4,171
ironSource Ltd., Class A (Israel) (a)		949,895		2,261
Latch, Inc. (a)(b)		840,317		958
MicroStrategy, Inc., Class A (a)(b)		9,288		1,526
Olo, Inc., Class A (a)		1,575,012		15,545
Procore Technologies, Inc. (a)		375,932		17,064
Qualtrics International, Inc., Class A (a)		174,134		2,178
Samsara, Inc., Class A (a)		1,650,282		18,434
UiPath, Inc., Class A (a)		140,028		2,547
				117,201
Specialty Retail (0.4%)
Warby Parker, Inc., Class A (a)(b)		151,711		1,708
Textiles, Apparel & Luxury Goods (1.4%)
On Holding AG, Class A (Switzerland) (a)(b)		385,571		6,821
Trading Companies & Distributors (0.3%)
EVI Industries, Inc. (a)		154,007		1,539
Total Common Stocks (Cost $795,975)				465,767
Preferred Stocks (2.6%)
Health Care Technology (1.4%)
Grand Rounds, Inc. Series B (a)(c)(e) (acquisition cost — $3,362; acquired 7/3/14)		3,269,139		6,800
Software (1.2%)
Lookout, Inc. Series F (a)(c)(e) (acquisition cost — $13,476; acquired 6/17/14)		1,179,743		6,123
Total Preferred Stocks (Cost $16,838)				12,923
Investment Company (0.7%)
Grayscale Bitcoin Trust (a) (Cost $10,612)		273,659		3,300
Warrants (0.0%) (f)
Internet & Direct Marketing Retail (0.0%) (f)
BARK, Inc. expires 5/1/26 (a)		209,825		40
Life Sciences Tools & Services (0.0%) (f)
SomaLogic, Inc. expires 8/31/26 (a)		61,142		46
Total Warrants (Cost $1,304)				86

	Shares		Value (000)
Short-Term Investments (11.5%)
Securities held as Collateral on Loaned Securities (9.6%)
Investment Company (7.8%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		38,423,634	$	38,424
	Face Amount (000)
Repurchase Agreements (1.8%)
HSBC Securities USA, Inc., (1.50%, dated 6/30/22, due 7/1/22; proceeds $3,002; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 2/15/23 - 5/15/32; valued at $3,062)	$	3,002		3,002
Merrill Lynch & Co., Inc., (1.46%, dated 6/30/22, due 7/1/22; proceeds $5,812; fully collateralized by U.S. Government obligation; 1.63% due 5/15/31; valued at $5,929)		5,812		5,812
				8,814
Total Securities held as Collateral on Loaned Securities (Cost $47,238)				47,238
	Shares
Investment Company (1.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $9,343)		9,343,433		9,343
Total Short-Term Investments (Cost $56,581)				56,581
Total Investments Excluding Purchased Options (109.7%) (Cost $881,310)				538,657
Total Purchased Options Outstanding (0.1%) (Cost $6,305)				421
Total Investments (109.8%) (Cost $887,615) Including $50,420 of Securities Loaned (g)(h)(i)				539,078
Liabilities in Excess of Other Assets (–9.8%)				(48,310	)
Net Assets (100.0%)			$	490,768

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Inception Portfolio

The Fund had the following Derivative Contract — PIPE open at June 30, 2022:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Depreciation (000)				% of Net Assets
Social Capital Suvretta Holdings Corp.III				ProKidney, LP (a)(c)(e)(j)(k)				$	3,321,670			12/30/22				$	(479	)			(0.10	)%

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2022.

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

(e) At June 30, 2022, the Fund held fair valued securities valued at approximately $12,444,000, representing 2.5% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(f) Amount is less than 0.05%.

(g) The approximate fair value and percentage of net assets, $8,464,000 and 1.7%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Consolidated Portfolio of Investments.

(h) Securities are available for collateral in connection with a derivative contract - PIPE and purchased options.

(i) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $8,517,000 and the aggregate gross unrealized depreciation is approximately $357,533,000, resulting in net unrealized depreciation of approximately $349,016,000.

(j) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to Purchase 332,167 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between ProKidney, LP, and Social Capital Suvretta Holdings Corp. III a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Social Capital Suvretta Holdings Corp. III and ProKidney, LP, is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the Fund is no longer obligated to fulfill its commitment to Social Capital Suvretta Holdings Corp. III and ProKidney, LP. The investment is restricted from resale until the settlement date.

(k) Investment is valued based on the underlying stock price and significant unobservable inputs that factor in volatility and discount for lack of marketability and transaction risk and is classified as Level 3 in the fair value hierarchy.

PIPE Private Investment in Public Equity.

REIT Real Estate Investment Trust.

SPAC Special Purpose Acquisition Company.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
Goldman Sachs International	USD/CNH	CNH	7.27	Nov-22		416,376,103		416,376	$	411	$	1,999	$	(1,588	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.28	Jul-22		468,635,786		468,636		4		2,184		(2,180	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		208,653,359		208,653		5		1,417		(1,412	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		132,899,103		132,899		1		705		(704	)
									$	421	$	6,305	$	(5,884	)

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Inception Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		35.0	%
Software		25.1
Health Care Providers & Services		11.6
Health Care Technology		9.2
Information Technology Services		8.1
Internet & Direct Marketing Retail		5.5
Life Sciences Tools & Services		5.5
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

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

*** Does not include open PIPE contract with total unrealized depreciation of approximately $479,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Inception Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $839,848)	$	491,311
Investment in Security of Affiliated Issuer, at Value (Cost $47,767)		47,767
Total Investments in Securities, at Value (Cost $887,615)		539,078
Foreign Currency, at Value (Cost $1)		—	@
Cash from Securities Lending		2,559
Receivable for Investments Sold		6,968
Receivable for Fund Shares Sold		345
Receivable from Securities Lending Income		294
Receivable from Affiliate		6
Interest Receivable		(—	@)
Other Assets		262
Total Assets		549,512
Liabilities:
Collateral on Securities Loaned, at Value		49,797
Payable for Investments Purchased		5,315
Payable for Fund Shares Redeemed		1,006
Payable for Advisory Fees		858
Unrealized Depreciation on Derivative Contract — PIPE		479
Payable for Sub Transfer Agency Fees — Class I		327
Payable for Sub Transfer Agency Fees — Class A		258
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		10
Due to Broker		530
Payable for Shareholder Services Fees — Class A		37
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Distribution and Shareholder Services Fees — Class C		10
Payable for Administration Fees		35
Payable for Professional Fees		27
Payable for Transfer Agency Fees — Class I		4
Payable for Transfer Agency Fees — Class A		4
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		3
Payable for Transfer Agency Fees — Class R6*		1
Payable for Custodian Fees		5
Other Liabilities		36
Total Liabilities		58,744
Net Assets	$	490,768
Net Assets Consist of:
Paid-in-Capital	$	1,535,688
Total Accumulated Loss		(1,044,920	)
Net Assets	$	490,768

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Inception Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	240,004
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		25,838,570
Net Asset Value, Offering and Redemption Price Per Share	$	9.29
CLASS A:
Net Assets	$	168,586
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		27,205,270
Net Asset Value, Redemption Price Per Share	$	6.20
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.34
Maximum Offering Price Per Share	$	6.54
CLASS L:
Net Assets	$	858
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		166,735
Net Asset Value, Offering and Redemption Price Per Share	$	5.15
CLASS C:
Net Assets	$	11,626
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,019,518
Net Asset Value, Offering and Redemption Price Per Share	$	5.76
CLASS R6:*
Net Assets	$	69,694
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		7,412,413
Net Asset Value, Offering and Redemption Price Per Share	$	9.40
⁽¹⁾ Including: Securities on Loan, at Value:	$	50,420

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Inception Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Income from Securities Loaned — Net	$	1,909
Dividends from Securities of Unaffiliated Issuers		233
Dividends from Security of Affiliated Issuer (Note G)		15
Total Investment Income		2,157
Expenses:
Advisory Fees (Note B)		3,624
Sub Transfer Agency Fees — Class I		515
Sub Transfer Agency Fees — Class A		341
Sub Transfer Agency Fees — Class L		1
Sub Transfer Agency Fees — Class C		17
Shareholder Services Fees — Class A (Note D)		328
Distribution and Shareholder Services Fees — Class L (Note D)		5
Distribution and Shareholder Services Fees — Class C (Note D)		92
Administration Fees (Note C)		316
Registration Fees		167
Shareholder Reporting Fees		95
Professional Fees		80
Custodian Fees (Note F)		28
Transfer Agency Fees — Class I (Note E)		10
Transfer Agency Fees — Class A (Note E)		6
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		3
Transfer Agency Fees — Class R6* (Note E)		3
Directors' Fees and Expenses		10
Pricing Fees		3
Interest Expenses		1
Other Expenses		21
Total Expenses		5,668
Waiver of Advisory Fees (Note B)		(669	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(382	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(124	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(4	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(3	)
Rebate from Morgan Stanley Affiliate (Note G)		(7	)
Net Expenses		4,478
Net Investment Loss		(2,321	)
Realized Loss:
Investments Sold		(595,582	)
Foreign Currency Translation		(21	)
Net Realized Loss		(595,603	)
Change in Unrealized Appreciation (Depreciation):
Investments		(55,888	)
Investments in Affiliates		2,173
Foreign Currency Translation		(—	@)
Derivative Contracts — PIPE		(386	)
Net Change in Unrealized Appreciation (Depreciation)		(54,101	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(649,704	)
Net Decrease in Net Assets Resulting from Operations	$	(652,025	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Inception Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(2,321	)	$	(11,858	)
Net Realized Gain (Loss)		(595,603	)		198,929
Net Change in Unrealized Appreciation (Depreciation)		(54,101	)		(526,343	)
Net Decrease in Net Assets Resulting from Operations		(652,025	)		(339,272	)
Dividends and Distributions to Shareholders:
Class I		—			(161,045	)
Class A		—			(131,242	)
Class L		—			(576	)
Class C		—			(8,978	)
Class R6*		—			(28,064	)
Total Dividends and Distributions to Shareholders		—			(329,905	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		138,340			1,243,327
Distributions Reinvested		—			160,851
Redeemed		(298,622	)		(794,337	)
Class A:
Subscribed		27,173			1,064,454
Distributions Reinvested		—			130,793
Redeemed		(93,853	)		(689,202	)
Class L:
Exchanged		—	@		—	@
Distributions Reinvested		—			575
Redeemed		(29	)		(694	)
Class C:
Subscribed		1,931			42,802
Distributions Reinvested		—			8,916
Redeemed		(6,358	)		(15,380	)
Class R6:*
Subscribed		16,570			27,096
Distributions Reinvested		—			28,064
Redeemed		(11,259	)		(34,507	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(226,107	)		1,172,758
Redemption Fees		33			1,946
Total Increase (Decrease) in Net Assets		(878,099	)		505,527
Net Assets:
Beginning of Period		1,368,867			863,340
End of Period	$	490,768		$	1,368,867

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Inception Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		9,640			38,969
Shares Issued on Distributions Reinvested		—			8,148
Shares Redeemed		(21,456	)		(27,695	)
Net Increase (Decrease) in Class I Shares Outstanding		(11,816	)		19,422
Class A:
Shares Subscribed		2,875			43,586
Shares Issued on Distributions Reinvested		—			9,909
Shares Redeemed		(9,759	)		(31,696	)
Net Increase (Decrease) in Class A Shares Outstanding		(6,884	)		21,799
Class L:
Shares Exchanged		—	@@		—	@@
Shares Issued on Distributions Reinvested		—			52
Shares Redeemed		(4	)		(36	)
Net Increase (Decrease) in Class L Shares Outstanding		(4	)		16
Class C:
Shares Subscribed		217			1,924
Shares Issued on Distributions Reinvested		—			724
Shares Redeemed		(727	)		(818	)
Net Increase (Decrease) in Class C Shares Outstanding		(510	)		1,830
Class R6:*
Shares Subscribed		1,114			836
Shares Issued on Distributions Reinvested		—			1,405
Shares Redeemed		(802	)		(1,126	)
Net Increase in Class R6 Shares Outstanding		312			1,115

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Inception Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	19.75		$	25.48		$	11.19		$	9.62		$	10.90		$	13.26
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.03	)		(0.15	)		(0.10	)		0.01			(0.05	)		(0.11	)
Net Realized and Unrealized Gain (Loss)		(10.43	)		(0.74	)		16.84			3.50			0.16			2.91
Total from Investment Operations		(10.46	)		(0.89	)		16.74			3.51			0.11			2.80
Distributions from and/or in Excess of:
Net Investment Income		—			(0.11	)		—			—			—			—
Net Realized Gain		—			(4.76	)		(2.45	)		(1.94	)		(1.39	)		(5.16	)
Total Distributions		—			(4.87	)		(2.45	)		(1.94	)		(1.39	)		(5.16	)
Redemption Fees		0.00	⁽³⁾		0.03			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	9.29		$	19.75		$	25.48		$	11.19		$	9.62		$	10.90
Total Return⁽⁴⁾		(52.99	)%⁽⁷⁾		(3.33	)%		150.57	%		37.11	%		0.29	%		21.87	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	240,004		$	743,854		$	464,639		$	59,092		$	60,777		$	141,954
Ratio of Expenses Before Expense Limitation		1.36	%⁽⁸⁾		1.12	%		1.18	%		1.21	%		1.17	%		1.20	%
Ratio of Expenses After Expense Limitation		1.00	%⁽⁵⁾⁽⁸⁾		1.00	%⁽⁵⁾		0.99	%⁽⁵⁾		0.99	%⁽⁵⁾		0.98	%⁽⁵⁾		0.99	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.00	%⁽⁵⁾⁽⁸⁾		N/A			0.99	%⁽⁵⁾		N/A			0.98	%⁽⁵⁾		0.99	%⁽⁵⁾
Ratio of Net Investment Income (Loss)		(0.45	)%⁽⁵⁾⁽⁸⁾		(0.49	)%⁽⁵⁾		(0.54	)%⁽⁵⁾		0.09	%⁽⁵⁾		(0.41	)%⁽⁵⁾		(0.77	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		67	%⁽⁷⁾		111	%		132	%		99	%		79	%		97	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Inception Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	13.20		$	18.68		$	8.51		$	7.68		$	8.99		$	11.72
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.04	)		(0.19	)		(0.10	)		(0.02	)		(0.07	)		(0.14	)
Net Realized and Unrealized Gain (Loss)		(6.96	)		(0.53	)		12.72			2.79			0.15			2.57
Total from Investment Operations		(7.00	)		(0.72	)		12.62			2.77			0.08			2.43
Distributions from and/or in Excess of:
Net Investment Income		—			(0.03	)		—			—			—			—
Net Realized Gain		—			(4.76	)		(2.45	)		(1.94	)		(1.39	)		(5.16	)
Total Distributions		—			(4.79	)		(2.45	)		(1.94	)		(1.39	)		(5.16	)
Redemption Fees		0.00	⁽³⁾		0.03			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	6.20		$	13.20		$	18.68		$	8.51		$	7.68		$	8.99
Total Return⁽⁴⁾		(53.03	)%⁽⁷⁾		(3.70	)%		149.86	%		36.71	%		0.02	%		21.57	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	168,586		$	450,058		$	229,641		$	45,097		$	34,166		$	40,531
Ratio of Expenses Before Expense Limitation		1.61	%⁽⁸⁾		1.40	%		1.44	%		1.52	%		1.44	%		1.51	%
Ratio of Expenses After Expense Limitation		1.35	%⁽⁵⁾⁽⁸⁾		1.33	%⁽⁵⁾		1.25	%⁽⁵⁾		1.29	%⁽⁵⁾		1.25	%⁽⁵⁾		1.34	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.35	%⁽⁵⁾⁽⁸⁾		N/A			1.25	%⁽⁵⁾		N/A			1.25	%⁽⁵⁾		1.34	%⁽⁵⁾
Ratio of Net Investment Loss		(0.81	)%⁽⁵⁾⁽⁸⁾		(0.85	)%⁽⁵⁾		(0.80	)%⁽⁵⁾		(0.23	)%⁽⁵⁾		(0.69	)%⁽⁵⁾		(1.12	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		67	%⁽⁷⁾		111	%		132	%		99	%		79	%		97	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Inception Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	10.99		$	16.45		$	7.65		$	7.10		$	8.46		$	11.34
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.05	)		(0.27	)		(0.16	)		(0.07	)		(0.11	)		(0.19	)
Net Realized and Unrealized Gain (Loss)		(5.79	)		(0.45	)		11.41			2.56			0.14			2.47
Total from Investment Operations		(5.84	)		(0.72	)		11.25			2.49			0.03			2.28
Distributions from and/or in Excess of:
Net Realized Gain		—			(4.76	)		(2.45	)		(1.94	)		(1.39	)		(5.16	)
Redemption Fees		0.00	⁽³⁾		0.02			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	5.15		$	10.99		$	16.45		$	7.65		$	7.10		$	8.46
Total Return		(53.18	)%⁽⁴⁾⁽⁸⁾		(4.17	)%⁽⁴⁾		148.82	%⁽⁵⁾		35.91	%⁽⁴⁾		(0.58	)%⁽⁴⁾		20.95	%⁽⁴⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	858		$	1,874		$	2,543		$	1,218		$	1,157		$	1,310
Ratio of Expenses Before Expense Limitation		2.22	%⁽⁹⁾		1.95	%		2.10	%		2.15	%		2.07	%		2.27	%
Ratio of Expenses After Expense Limitation		1.85	%⁽⁶⁾⁽⁹⁾		1.85	%⁽⁶⁾		1.84	%⁽⁶⁾		1.84	%⁽⁶⁾		1.84	%⁽⁶⁾		1.84	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.85	%⁽⁶⁾⁽⁹⁾		N/A			1.84	%⁽⁶⁾		N/A			1.84	%⁽⁶⁾		1.84	%⁽⁶⁾
Ratio of Net Investment Loss		(1.31	)%⁽⁶⁾⁽⁹⁾		(1.36	)%⁽⁶⁾		(1.43	)%⁽⁶⁾		(0.78	)%⁽⁶⁾		(1.28	)%⁽⁶⁾		(1.61	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		67	%⁽⁸⁾		111	%		132	%		99	%		79	%		97	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(5) Calculated using the NAV for US GAAP financial reporting purposes and as such differs from the total return presented in the Investment Overview.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Inception Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,												Period from May 31, 2017⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			December 31, 2017⁽¹⁾
Net Asset Value, Beginning of Period	$	12.31		$	17.85		$	8.24		$	7.55		$	8.93		$	13.59
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.06	)		(0.33	)		(0.22	)		(0.10	)		(0.03	)		(0.13	)
Net Realized and Unrealized Gain (Loss)		(6.49	)		(0.47	)		12.28			2.73			0.04			0.63
Total from Investment Operations		(6.55	)		(0.80	)		12.06			2.63			0.01			0.50
Distributions from and/or in Excess of:
Net Realized Gain		—			(4.76	)		(2.45	)		(1.94	)		(1.39	)		(5.16	)
Redemption Fees		0.00	⁽⁴⁾		0.02			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	5.76		$	12.31		$	17.85		$	8.24		$	7.55		$	8.93
Total Return⁽⁵⁾		(53.21	)%⁽⁸⁾		(4.37	)%		147.97	%		35.48	%		(0.78	)%		4.36	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	11,626		$	31,148		$	12,494		$	688		$	116		$	30
Ratio of Expenses Before Expense Limitation		2.31	%⁽⁹⁾		2.12	%		2.26	%		2.75	%		4.73	%		21.29	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		2.10	%⁽⁶⁾⁽⁹⁾		2.05	%⁽⁶⁾		2.07	%⁽⁶⁾		2.09	%⁽⁶⁾		2.09	%⁽⁶⁾		2.10	%⁽⁶⁾⁽⁹⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.10	%⁽⁶⁾⁽⁹⁾		N/A			2.07	%⁽⁶⁾		N/A			2.09	%⁽⁶⁾		2.10	%⁽⁶⁾⁽⁹⁾
Ratio of Net Investment Loss		(1.56	)%⁽⁶⁾⁽⁹⁾		(1.55	)%⁽⁶⁾		(1.61	)%⁽⁶⁾		(0.99	)%⁽⁶⁾		(1.50	)%⁽⁶⁾		(1.82	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.01	%		0.01	%		0.00	%⁽⁷⁾⁽⁹⁾
Portfolio Turnover Rate		67	%⁽⁸⁾		111	%		132	%		99	%		79	%		97	%

(1) Not consolidated.

(2) Commencement of Offering.

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

(4) Amount is less than $0.005 per share.

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Inception Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽²⁾			2019⁽²⁾			2018⁽²⁾			2017⁽²⁾
Net Asset Value, Beginning of Period	$	19.99		$	25.73		$	11.29		$	9.69		$	10.96		$	13.29
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.03	)		(0.14	)		(0.08	)		0.01			(0.04	)		(0.10	)
Net Realized and Unrealized Gain (Loss)		(10.56	)		(0.74	)		16.97			3.53			0.16			2.93
Total from Investment Operations		(10.59	)		(0.88	)		16.89			3.54			0.12			2.83
Distributions from and/or in Excess of:
Net Investment Income		—			(0.13	)		—			—			—			—
Net Realized Gain		—			(4.76	)		(2.45	)		(1.94	)		(1.39	)		(5.16	)
Total Distributions		—			(4.89	)		(2.45	)		(1.94	)		(1.39	)		(5.16	)
Redemption Fees		0.00	⁽⁴⁾		0.03			0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	9.40		$	19.99		$	25.73		$	11.29		$	9.69		$	10.96
Total Return⁽⁵⁾		(52.98	)%⁽⁸⁾		(3.29	)%		150.79	%		37.04	%		0.38	%		22.08	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	69,694		$	141,933		$	154,023		$	64,712		$	110,919		$	129,126
Ratio of Expenses Before Expense Limitation		1.11	%⁽⁹⁾		1.00	%		1.11	%		1.15	%		1.11	%		1.09	%
Ratio of Expenses After Expense Limitation		0.93	%⁽⁶⁾⁽⁹⁾		0.93	%⁽⁶⁾		0.92	%⁽⁶⁾		0.92	%⁽⁶⁾		0.92	%⁽⁶⁾		0.92	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.93	%⁽⁶⁾⁽⁹⁾		N/A			0.92	%⁽⁶⁾		N/A			0.92	%⁽⁶⁾		0.92	%⁽⁶⁾
Ratio of Net Investment Income (Loss)		(0.38	)%⁽⁶⁾⁽⁹⁾		(0.44	)%⁽⁶⁾		(0.49	)%⁽⁶⁾		0.12	%⁽⁶⁾		(0.36	)%⁽⁶⁾		(0.71	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		67	%⁽⁸⁾		111	%		132	%		99	%		79	%		97	%

(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) Amount is less than $0.005 per share.

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

(6) The Ratio of Expenses After Expenses 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) ��Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Inception Portfolio. The Fund seeks long-term capital appreciation by investing primarily in growth-oriented equity securities of small capitalization companies.

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 Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Inception Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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

June 30, 2022, the Subsidiary represented approximately $3,896,000 or approximately 0.79% of the total net assets of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (5) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade)

and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (7) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Airlines	$	2,386	$	—	$	—	$	2,386
Biotechnology		14,817		371		—		15,188
Chemicals		3,020		—		—		3,020

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)
Commercial Services & Supplies	$	975	$	—	$	—		$	975
Communications Equipment		7,569		—		—			7,569
Consumer Finance		5,204		—		—			5,204
Diversified Consumer Services		10,813		—		—			10,813
Diversified Holding Companies		19,017		—		—			19,017
Diversified Telecommunication Services		22,091		—		—			22,091
Electrical Equipment		1,650		—		—			1,650
Health Care Equipment & Supplies		10,242		2,207		—			12,449
Health Care Providers & Services		56,997		—		—			56,997
Health Care Technology		38,282		—		—			38,282
Hotels, Restaurants & Leisure		6,037		—		—			6,037
Household Durables		2,132		6,257		—			8,389
Information Technology Services		39,677		—		—			39,677
Insurance		2,683		—		—			2,683
Internet & Direct Marketing Retail		27,222		—		—			27,222
Leisure Products		3,666		—		—			3,666
Life Sciences Tools & Services		27,010		—		—			27,010
Media		2,226		—		—			2,226
Metals & Mining		5,834		—		—			5,834
Pharmaceuticals		4,194		—		—			4,194
Professional Services		6,024		—		—			6,024
Real Estate Management & Development		9,895		—		—			9,895
Software		117,201		—		—			117,201
Specialty Retail		1,708		—		—			1,708
Textiles, Apparel & Luxury Goods		6,821		—		—			6,821
Trading Companies & Distributors		1,539		—		—			1,539
Total Common Stocks		456,932		8,835		—			465,767
Preferred Stocks
Health Care Technology		—		—		6,800			6,800
Software		—		—		6,123			6,123
Total Preferred Stocks		—		—		12,923			12,923
Investment Company		3,300		—		—			3,300
Warrants		86		—		—			86
Call Option Purchased		—		421		—			421
Short-Term Investments
Investment Company		47,767		—		—			47,767
Repurchase Agreements		—		8,814		—			8,814
Total Short-Term Investments		47,767		8,814		—			56,581
Total Assets		508,085		18,070		12,923			539,078
Liabilities:
Derivative Contract — PIPE		—		—		(479	)		(479	)
Total	$	508,085	$	18,070	$	12,444		$	538,599

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

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

	Preferred Stocks (000)			Derivative Contract — PIPE (000)
Beginning Balance	$	13,361		$	(93	)
Purchases		—			—
Sales		—			—
PIPE transactions		—			—
Amortization of discount		—			—
Transfers in		—			—
Transfers out		—			(386	)
Corporate actions		—			—
Change in unrealized appreciation (depreciation)		(438	)		—
Realized gains (losses)		—			—
Ending Balance	$	12,923		$	(479	)
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022	$	(438	)	$	(479	)

Fair Value at
June 30, 2022
(000)

Valuation
Technique

Unobservable
Input

Amount or Range/
Weighted Average*

Impact to
Valuation from an
Increase in Input**

Preferred Stocks

12,923

Discounted
Cash Flow

Weighted Average
Cost of Capital

11.5%-14.5%/13.0%

Decrease

Perpetual Growth Rate

3.0%-4.0%/3.5%

Increase

Market Comparable
Companies

Enterprise Value/
Revenue

0.8x-16.3x/5.5x

Increase

Discount for Lack
of Marketability

11.0%-16.0%/13.6%

Decrease

Comparable
Transactions

Enterprise
Value/Revenue

3.8x

Increase

PIPE

(479

)

Market Implied

Discount for Lack of
Marketability and
Transaction Risk

14.0%

Decrease

* Amount is indicative of the weighted average.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

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

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 expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

maintain cash or cash equivalents or other liquid portfolio securities equal in value to commitments to purchase securities on a forward commitment basis.

At June 30, 2022, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated Statement of
Assets and Liabilities
Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

421

(a)

Liability Derivatives
Consolidated Statement of
Assets and Liabilities
Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Depreciation on
Derivative Contract — PIPE

Equity Risk

(479

)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(2,690	)(b)

(b) Amounts are included in Realized 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)	$	822	(c)
Equity Risk	Derivative Contracts — PIPE		(386	)
Total		$	436

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At June 30, 2022, 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 (000)			Liabilities (000)
Purchased Options	$	421	(a)(d)	$	—
Derivative Contract — PIPE		—			(479	)(e)
Total	$	421		$	(479	)

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

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

(e) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 June 30, 2022:

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(f) (000)			Net Amount (not less than $0) (000)
Goldman Sachs International	$	411	$	—	$	(411	)	$	0
JP Morgan Chase Bank NA		10		—		(10	)		0
Total	$	421	$	—	$	(421	)	$	0

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

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount		1,348,430,000
Derivative Contract — PIPE:
Average monthly notional amount	$	3,909,000

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 June 30, 2022:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Gross Asset Amounts Presented in Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	50,420	(g)	$	—	$	(50,420	)(h)(i)	$	0

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

(h) The Fund received cash collateral of approximately $49,797,000, of which approximately $47,238,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $2,559,000, which is not reflected in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $3,204,000 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.

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

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

contractual maturity of those transactions as of June 30, 2022:

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	$	49,797	$	—	$	—	$	—	$	49,797
Total Borrowings	$	49,797	$	—	$	—	$	—	$	49,797
Gross amount of recognized liabilities for securities lending transactions									$	49,797

8. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class L shares, Class C shares and Class R6 shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

9. Indemnifications: The Company enters into contracts that contain a variety of indemnifications. The Company's maximum exposure under these arrangements is unknown. However, the Company has not had prior claims

or losses pursuant to these contracts and expects the risk of loss to be remote.

10. 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.

11. 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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Next $500 million				Next $500 million				Over $2 billion
	0.92	%			0.85	%			0.80	%			0.75	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.75% of the Fund's average daily net assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

not exceed 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares and 0.93% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $669,000 of advisory fees were waived and approximately $514,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

C. Administration Fees: The Adviser also serves as Administrator to the Company 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.

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.

E. Dividend Disbursing and Transfer Agent: The Company's dividend disbursing and transfer agent is DST Asset Manager Solutions, Inc. ("DST"). Pursuant to a Transfer Agency Agreement, the Company pays DST a fee based on the number of classes, accounts and transactions relating to the Funds of the Company.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $550,604,000 and $754,328,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $7,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company/Issuer				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	118,626			$	312,302			$	383,161			$	15

Affiliated Investment Company/Issuer (cont'd)				Realized Gain Loss (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	47,767

During the six months ended June 30, 2022, the Fund incurred approximately $6,000 in brokerage commissions with Morgan Stanley & Co. LLC, an affiliate of the Adviser/Administrator, Sub-Adviser and Distributor, for portfolio transactions executed on behalf of the Fund.

H. Federal Income Taxes: It is the Fund's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly,

no provision for federal income taxes is required in the consolidated financial statements.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	284,430	$	45,475	$	40,292	$	32,026

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Permanent differences, primarily due to a prior year tax return adjustment, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Accumulated Loss (000)				Paid-in- Capital (000)
$	(21,782	)		$	21,782

At December 31, 2021, 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)
$	273			$	—

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$	—			$	73,377

J. Other: At June 30, 2022, 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 30.4%.

K. Market Risk and Risks Relating to Certain Financial Instruments:

tocurrency 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 GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC 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 GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Special Purpose Acquisition Companies: The Fund may invest in stock, warrants, and other securities of SPACs or similar

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

special purpose entities. A SPAC is typically a publicly traded company that raises investment capital via an initial public offering ("IPO") for the purpose of acquiring the equity securities of one or more existing companies (or interests therein) via merger, combination, acquisition or other similar transactions. The Fund may acquire an interest in a SPAC in an IPO or a secondary market transaction.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 below its peer group average for the one-year period and better than 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. 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, actual management fee was higher than but close to its peer group average and total expense ratio was lower than its peer group average. 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFISCGSAN
4875578 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

International Advantage Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					16
Investment Advisory Agreement Approval					27
Liquidity Risk Management Program					29
U.S. Customer Privacy Notice					30
Director and Officer Information					33

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

International Advantage Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
International Advantage Portfolio Class I	$	1,000.00	$	640.60	$	1,019.89	$	4.03	$	4.96		0.99	%
International Advantage Portfolio Class A		1,000.00		639.60		1,018.45		5.20		6.41		1.28
International Advantage Portfolio Class L		1,000.00		637.70		1,015.67		7.47		9.20		1.84
International Advantage Portfolio Class C		1,000.00		637.20		1,014.98		8.04		9.89		1.98
International Advantage Portfolio Class R6⁽¹⁾		1,000.00		640.90		1,020.48		3.54		4.36		0.87

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

International Advantage Portfolio

	Shares		Value (000)
Common Stocks (97.4%)
Australia (4.9%)
Brookfield Infrastructure Partners LP		4,844,848	$	185,170
Canada (9.1%)
Brookfield Asset Management, Inc., Class A		4,334,215		192,743
Canada Goose Holdings, Inc. (a) (See Note G)		5,507,614		99,192
Shopify, Inc., Class A (a)		1,650,010		51,546
				343,481
China (2.7%)
Foshan Haitian Flavouring & Food Co. Ltd., Class A		7,443,329		100,745
Denmark (10.6%)
Chr Hansen Holding AS		1,530,550		111,727
DSV Panalpina AS		2,066,610		290,601
				402,328
France (7.0%)
Hermes International		171,134		192,599
Pernod Ricard SA		401,716		74,267
				266,866
Germany (9.0%)
Adidas AG		1,148,886		204,078
HelloFresh SE (a)		1,918,558		62,592
Puma SE		1,127,498		74,806
				341,476
Hong Kong (2.9%)
AIA Group Ltd.		9,944,100		108,655
India (7.1%)
HDFC Bank Ltd.		15,738,877		269,593
Italy (7.9%)
Davide Campari-Milano NV		11,145,453		117,581
Moncler SpA		4,198,597		180,901
				298,482
Japan (4.6%)
Change, Inc. (b)		1,336,900		21,259
Keyence Corp.		441,100		151,270
				172,529
Netherlands (7.9%)
Adyen NV (a)		66,320		95,708
ASML Holding NV		431,898		204,045
				299,753
Norway (0.5%)
AutoStore Holdings Ltd. (a)(b)		14,551,408		21,088
Singapore (1.2%)
Grab Holdings Ltd., Class A (a)		17,606,641		44,545
Sweden (2.8%)
Evolution AB		745,587		68,207
Vitrolife AB		1,626,926		37,534
				105,741

	Shares		Value (000)
Switzerland (6.9%)
Chocoladefabriken Lindt & Spruengli AG (Registered)		500	$	52,479
Kuehne & Nagel International AG (Registered)		414,696		98,533
Straumann Holding AG (Registered)		903,974		108,898
				259,910
Taiwan (5.0%)
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		2,297,094		187,787
United Kingdom (4.8%)
Diageo PLC		1,780,224		76,892
Rightmove PLC		15,247,656		105,664
				182,556
United States (2.5%)
MercadoLibre, Inc. (a)		149,036		94,917
Total Common Stocks (Cost $4,062,106)				3,685,622
Investment Company (0.4%)
United States (0.4%)
Grayscale Bitcoin Trust (a) (Cost $59,144)		1,337,540		16,131
Short-Term Investments (2.1%)
Securities held as Collateral on Loaned Securities (0.1%)
Investment Company (0.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		2,700,633		2,701
	Face Amount (000)
Repurchase Agreements (0.0%) (c)
HSBC Securities USA, Inc., (1.50%, dated 6/30/22, due 7/1/22; proceeds $211; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 2/15/23 - 5/15/32; valued at $215)	$	211		211
Merrill Lynch & Co., Inc., (1.46%, dated 6/30/22, due 7/1/22; proceeds $408; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $417)		408		408
				619
Total Securities held as Collateral on Loaned Securities (Cost $3,320)				3,320

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

International Advantage Portfolio

	Shares		Value (000)
Investment Company (2.0%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $74,529)		74,529,465	$	74,529
Total Short-Term Investments (Cost $77,849)				77,849
Total Purchased Options Outstanding (0.0%) (c) (Cost $5,869)				15
Total Investments (99.9%) (Cost $4,204,968) Including $9,171 of Securities Loaned (d)(e)(f)				3,779,617
Other Assets in Excess of Liabilities (0.1%)				3,817
Net Assets (100.0%)			$	3,783,434

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2022.

(d) Securities are available for collateral in connection with purchased options.

(e) The approximate fair value and percentage of net assets, $2,829,722,000 and 74.8%, 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 the Consolidated Financial Statements.

(f) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $370,718,000 and the aggregate gross unrealized depreciation is approximately $796,069,000, resulting in net unrealized depreciation of approximately $425,351,000.

ADR American Depositary Receipt.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		358,023,641	$	358,024	$	2	$	1,899	$	(1,897	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		584,432,525		584,433		13		3,970		(3,957	)
									$	15	$	5,869	$	(5,854	)

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		42.7	%
Textiles, Apparel & Luxury Goods		19.9
Semiconductors & Semiconductor Equipment		10.4
Air Freight & Logistics		7.7
Banks		7.1
Beverages		7.1
Capital Markets		5.1
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

International Advantage Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $3,979,176)	$	3,603,195
Investment in Security of Affiliated Issuer, at Value (Cost $225,792)		176,422
Total Investments in Securities, at Value (Cost $4,204,968)		3,779,617
Foreign Currency, at Value (Cost $14,195)		14,147
Cash from Securities Lending		2,401
Receivable for Fund Shares Sold		7,882
Tax Reclaim Receivable		3,982
Dividends Receivable		3,523
Receivable from Affiliate		42
Receivable from Securities Lending Income		9
Other Assets		444
Total Assets		3,812,047
Liabilities:
Payable for Fund Shares Redeemed		11,525
Payable for Advisory Fees		8,413
Collateral on Securities Loaned, at Value		3,500
Deferred Capital Gain Country Tax		3,431
Payable for Sub Transfer Agency Fees — Class I		759
Payable for Sub Transfer Agency Fees — Class A		152
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		5
Payable for Administration Fees		259
Payable for Custodian Fees		209
Payable for Shareholder Services Fees — Class A		107
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		22
Due to Broker		90
Payable for Transfer Agency Fees — Class I		81
Payable for Transfer Agency Fees — Class A		3
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		1
Payable for Professional Fees		10
Other Liabilities		45
Total Liabilities		28,613
Net Assets	$	3,783,434
Net Assets Consist of:
Paid-in-Capital	$	4,185,947
Total Accumulated Loss		(402,513	)
Net Assets	$	3,783,434

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

International Advantage Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	3,113,654
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		160,442,538
Net Asset Value, Offering and Redemption Price Per Share	$	19.41
CLASS A:
Net Assets	$	519,861
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		27,381,584
Net Asset Value, Redemption Price Per Share	$	18.99
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.05
Maximum Offering Price Per Share	$	20.04
CLASS L:
Net Assets	$	192
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		10,606
Net Asset Value, Offering and Redemption Price Per Share	$	18.15
CLASS C:
Net Assets	$	26,174
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,465,266
Net Asset Value, Offering and Redemption Price Per Share	$	17.86
CLASS R6:*
Net Assets	$	123,553
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		6,346,468
Net Asset Value, Offering and Redemption Price Per Share	$	19.47
⁽¹⁾ Including: Securities on Loan, at Value:	$	9,171

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

International Advantage Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $4,496 of Foreign Taxes Withheld)	$	30,903
Dividends from Security of Affiliated Issuer (Note G)		221
Income from Securities Loaned — Net		54
Total Investment Income		31,178
Expenses:
Advisory Fees (Note B)		19,270
Sub Transfer Agency Fees — Class I		2,403
Sub Transfer Agency Fees — Class A		513
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		16
Administration Fees (Note C)		2,029
Shareholder Services Fees — Class A (Note D)		786
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		167
Custodian Fees (Note F)		411
Registration Fees		192
Shareholder Reporting Fees		195
Transfer Agency Fees — Class I (Note E)		93
Transfer Agency Fees — Class A (Note E)		4
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		2
Transfer Agency Fees — Class R6* (Note E)		3
Professional Fees		70
Directors' Fees and Expenses		35
Pricing Fees		1
Other Expenses		58
Total Expenses		26,250
Rebate from Morgan Stanley Affiliate (Note G)		(138	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Net Expenses		26,111
Net Investment Income		5,067
Realized Loss:
Investments Sold (Net of $260 of Capital Gain Country Tax)		(84,653	)
Investments in Affiliates		(5,717	)
Foreign Currency Translation		(634	)
Net Realized Loss		(91,004	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $3,312)		(2,184,227	)
Investments in Affiliates		(97,256	)
Foreign Currency Translation		(290	)
Net Change in Unrealized Appreciation (Depreciation)		(2,281,773	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(2,372,777	)
Net Decrease in Net Assets Resulting from Operations	$	(2,367,710	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

International Advantage Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	5,067		$	(17,892	)
Net Realized Gain (Loss)		(91,004	)		170,866
Net Change in Unrealized Appreciation (Depreciation)		(2,281,773	)		496,591
Net Increase (Decrease) in Net Assets Resulting from Operations		(2,367,710	)		649,565
Dividends and Distributions to Shareholders:
Class I		—			(52,085	)
Class A		—			(7,650	)
Class L		—			(3	)
Class C		—			(447	)
Class R6*		—			(2,652	)
Total Dividends and Distributions to Shareholders		—			(62,837	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		1,155,197			1,810,800
Distributions Reinvested		—			47,135
Redeemed		(1,482,317	)		(770,937	)
Class A:
Subscribed		457,849			257,294
Distributions Reinvested		—			7,650
Redeemed		(432,465	)		(150,608	)
Class L:
Exchanged		31			—
Distributions Reinvested		—			3
Redeemed		(20	)		(118	)
Class C:
Subscribed		2,497			18,942
Distributions Reinvested		—			444
Redeemed		(3,480	)		(4,422	)
Class R6:*
Subscribed		62,893			166,066
Distributions Reinvested		—			2,089
Redeemed		(122,308	)		(11,705	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(362,123	)		1,372,633
Redemption Fees		9			—	@
Total Increase (Decrease) in Net Assets		(2,729,824	)		1,959,361
Net Assets:
Beginning of Period		6,513,258			4,553,897
End of Period	$	3,783,434		$	6,513,258

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

International Advantage Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		47,294			61,556
Shares Issued on Distributions Reinvested		—			1,614
Shares Redeemed		(65,707	)		(26,337	)
Net Increase (Decrease) in Class I Shares Outstanding		(18,413	)		36,833
Class A:
Shares Subscribed		21,368			8,994
Shares Issued on Distributions Reinvested		—			267
Shares Redeemed		(20,147	)		(5,272	)
Net Increase in Class A Shares Outstanding		1,221			3,989
Class L:
Shares Exchanged		2			—
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(1	)		(4	)
Net Increase (Decrease) in Class L Shares Outstanding		1			(4	)
Class C:
Shares Subscribed		106			689
Shares Issued on Distributions Reinvested		—			16
Shares Redeemed		(172	)		(160	)
Net Increase (Decrease) in Class C Shares Outstanding		(66	)		545
Class R6:*
Shares Subscribed		2,372			5,710
Shares Issued on Distributions Reinvested		—			71
Shares Redeemed		(5,030	)		(401	)
Net Increase (Decrease) in Class R6 Shares* Outstanding		(2,658	)		5,380

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

International Advantage Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	30.30		$	27.05		$	20.45		$	15.74		$	16.89		$	11.91
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		0.03			(0.08	)		(0.07	)		0.06			0.04			0.00	⁽³⁾
Net Realized and Unrealized Gain (Loss)		(10.92	)		3.63			6.68			4.67			(0.91	)		5.32
Total from Investment Operations		(10.89	)		3.55			6.61			4.73			(0.87	)		5.32
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		(0.00	)⁽³⁾		—			—
Net Realized Gain		—			(0.30	)		—			(0.02	)		(0.28	)		(0.34	)
Total Distributions		—			(0.30	)		(0.01	)		(0.02	)		(0.28	)		(0.34	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	19.41		$	30.30		$	27.05		$	20.45		$	15.74		$	16.89
Total Return⁽⁴⁾		(35.94	)%⁽⁷⁾		13.16	%		32.33	%		30.09	%		(5.19	)%		44.75	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,113,654		$	5,419,831		$	3,841,122		$	1,900,219		$	569,408		$	166,189
Ratio of Expenses Before Expense Limitation		1.00	%⁽⁸⁾		0.97	%		N/A			1.03	%		1.11	%		1.21	%
Ratio of Expenses After Expense Limitation		0.99	%⁽⁵⁾⁽⁸⁾		0.97	%⁽⁵⁾		0.98	%⁽⁵⁾		0.98	%⁽⁵⁾		0.98	%⁽⁵⁾		0.98	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.98	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.25	%⁽⁵⁾⁽⁸⁾		(0.28	)%⁽⁵⁾		(0.31	)%⁽⁵⁾		0.32	%⁽⁵⁾		0.21	%⁽⁵⁾		0.02	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.02	%		0.02	%		0.02	%
Portfolio Turnover Rate		15	%⁽⁷⁾		22	%		18	%		15	%		29	%		30	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

International Advantage Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	29.69		$	26.58		$	20.16		$	15.56		$	16.75		$	11.86
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		0.00	⁽³⁾		(0.17	)		(0.13	)		0.01			(0.02	)		(0.07	)
Net Realized and Unrealized Gain (Loss)		(10.70	)		3.58			6.56			4.61			(0.89	)		5.30
Total from Investment Operations		(10.70	)		3.41			6.43			4.62			(0.91	)		5.23
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		—			—			—
Net Realized Gain		—			(0.30	)		—			(0.02	)		(0.28	)		(0.34	)
Total Distributions		—			(0.30	)		(0.01	)		(0.02	)		(0.28	)		(0.34	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	18.99		$	29.69		$	26.58		$	20.16		$	15.56		$	16.75
Total Return⁽⁴⁾		(36.04	)%⁽⁷⁾		12.87	%		31.90	%		29.72	%		(5.48	)%		44.18	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	519,861		$	776,662		$	589,317		$	379,237		$	202,732		$	144,112
Ratio of Expenses Before Expense Limitation		1.29	%⁽⁸⁾		1.26	%		N/A			1.30	%		1.37	%		1.42	%
Ratio of Expenses After Expense Limitation		1.28	%⁽⁵⁾⁽⁸⁾		1.26	%⁽⁵⁾		1.27	%⁽⁵⁾		1.28	%⁽⁵⁾		1.33	%⁽⁵⁾		1.31	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.27	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.03	%⁽⁵⁾⁽⁸⁾		(0.57	)%⁽⁵⁾		(0.60	)%⁽⁵⁾		0.04	%⁽⁵⁾		(0.10	)%⁽⁵⁾		(0.46	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.02	%		0.02	%		0.02	%
Portfolio Turnover Rate		15	%⁽⁷⁾		22	%		18	%		15	%		29	%		30	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

International Advantage Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	28.46		$	25.64		$	19.56		$	15.18		$	16.43		$	11.70
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.07	)		(0.32	)		(0.24	)		(0.09	)		(0.09	)		(0.11	)
Net Realized and Unrealized Gain (Loss)		(10.24	)		3.44			6.33			4.49			(0.88	)		5.18
Total from Investment Operations		(10.31	)		3.12			6.09			4.40			(0.97	)		5.07
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		—			—			—
Net Realized Gain		—			(0.30	)		—			(0.02	)		(0.28	)		(0.34	)
Total Distributions		—			(0.30	)		(0.01	)		(0.02	)		(0.28	)		(0.34	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	18.15		$	28.46		$	25.64		$	19.56		$	15.18		$	16.43
Total Return⁽⁴⁾		(36.23	)%⁽⁷⁾		12.21	%		31.14	%		29.01	%		(5.95	)%		43.41	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	192		$	279		$	350		$	226		$	161		$	135
Ratio of Expenses Before Expense Limitation		2.63	%⁽⁸⁾		2.29	%		2.48	%		2.59	%		2.82	%		3.82	%
Ratio of Expenses After Expense Limitation		1.84	%⁽⁵⁾⁽⁸⁾		1.85	%⁽⁵⁾		1.84	%⁽⁵⁾		1.83	%⁽⁵⁾		1.83	%⁽⁵⁾		1.84	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.84	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(0.60	)%⁽⁵⁾⁽⁸⁾		(1.16	)%⁽⁵⁾		(1.17	)%⁽⁵⁾		(0.48	)%⁽⁵⁾		(0.55	)%⁽⁵⁾		(0.77	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.02	%		0.02	%		0.01	%
Portfolio Turnover Rate		15	%⁽⁷⁾		22	%		18	%		15	%		29	%		30	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

International Advantage Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	28.03		$	25.29		$	19.31		$	15.02		$	16.30		$	11.63
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.08	)		(0.35	)		(0.26	)		(0.12	)		(0.15	)		(0.17	)
Net Realized and Unrealized Gain (Loss)		(10.09	)		3.39			6.25			4.43			(0.85	)		5.18
Total from Investment Operations		(10.17	)		3.04			5.99			4.31			(1.00	)		5.01
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		—			—			—
Net Realized Gain		—			(0.30	)		—			(0.02	)		(0.28	)		(0.34	)
Total Distributions		—			(0.30	)		(0.01	)		(0.02	)		(0.28	)		(0.34	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	17.86		$	28.03		$	25.29		$	19.31		$	15.02		$	16.30
Total Return⁽⁴⁾		(36.28	)%⁽⁷⁾		12.06	%		31.03	%		28.72	%		(6.18	)%		43.16	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	26,174		$	42,922		$	24,926		$	18,180		$	11,087		$	6,760
Ratio of Expenses Before Expense Limitation		1.99	%⁽⁸⁾		1.96	%		N/A			2.03	%		2.10	%		2.25	%
Ratio of Expenses After Expense Limitation		1.98	%⁽⁵⁾⁽⁸⁾		1.96	%⁽⁵⁾		1.97	%⁽⁵⁾		2.01	%⁽⁵⁾		2.07	%⁽⁵⁾		2.08	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			1.97	%⁽⁵⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(0.74	)%⁽⁵⁾⁽⁸⁾		(1.27	)%⁽⁵⁾		(1.29	)%⁽⁵⁾		(0.69	)%⁽⁵⁾		(0.88	)%⁽⁵⁾		(1.12	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.02	%		0.02	%		0.02	%
Portfolio Turnover Rate		15	%⁽⁷⁾		22	%		18	%		15	%		29	%		30	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

International Advantage Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 15, 2018⁽³⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽²⁾			2019⁽²⁾			December 31, 2018⁽²⁾
Net Asset Value, Beginning of Period	$	30.38		$	27.09		$	20.46		$	15.75		$	18.90
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽⁴⁾		0.02			(0.06	)		(0.06	)		0.05			(0.00	)⁽⁵⁾
Net Realized and Unrealized Gain (Loss)		(10.93	)		3.65			6.70			4.69			(2.87	)
Total from Investment Operations		(10.91	)		3.59			6.64			4.74			(2.87	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		(0.01	)		—
Net Realized Gain		—			(0.30	)		—			(0.02	)		(0.28	)
Total Distributions		—			(0.30	)		(0.01	)		(0.03	)		(0.28	)
Redemption Fees		—			0.00	⁽⁵⁾		—			0.00	⁽⁵⁾		0.00	⁽⁵⁾
Net Asset Value, End of Period	$	19.47		$	30.38		$	27.09		$	20.46		$	15.75
Total Return⁽⁶⁾		(35.91	)%⁽⁹⁾		13.29	%		32.46	%		30.14	%		(15.22	)%⁽⁹⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	123,553		$	273,564		$	98,182		$	774		$	8
Ratio of Expenses Before Expense Limitation		0.88	%⁽¹⁰⁾		0.87	%		N/A			3.28	%		19.51	%⁽¹⁰⁾
Ratio of Expenses After Expense Limitation		0.87	%^(7)(10)		0.87	%⁽⁷⁾		0.89	%⁽⁷⁾		0.93	%⁽⁷⁾		0.93	%^(7)(10)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			0.89	%⁽⁷⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		0.19	%^(7)(10)		(0.19	)%⁽⁷⁾		(0.26	)%⁽⁷⁾		0.24	%⁽⁷⁾		(0.04	)%^(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽¹⁰⁾		0.00	%⁽⁸⁾		0.01	%		0.02	%		0.02	%⁽¹⁰⁾
Portfolio Turnover Rate		15	%⁽⁹⁾		22	%		18	%		15	%		29	%

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

(3) Commencement of Offering.

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

(5) Amount is less than $0.005 per share.

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

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the International Advantage Portfolio. The Fund seeks long-term capital appreciation.

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 Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, International Advantage Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary

represented approximately $18,044,000 or approximately 0.48% of the total net assets of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

from one or more reputable brokers or dealers; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, 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 established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which

the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Air Freight & Logistics	$	—	$	290,601	$	—	$	290,601
Banks		—		269,593		—		269,593
Beverages		—		268,740		—		268,740
Biotechnology		—		37,534		—		37,534
Capital Markets		192,743		—		—		192,743
Chemicals		—		111,727		—		111,727

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)
Electronic Equipment, Instruments & Components	$	—	$	151,270	$	—	$	151,270
Food & Staples Retailing		—		62,592		—		62,592
Food Products		—		153,224		—		153,224
Health Care Equipment & Supplies		—		108,898		—		108,898
Hotels, Restaurants & Leisure		—		68,207		—		68,207
Information Technology Services		51,546		116,967		—		168,513
Insurance		—		108,655		—		108,655
Interactive Media & Services		—		105,664		—		105,664
Internet & Direct Marketing Retail		94,917		—		—		94,917
Machinery		—		21,088		—		21,088
Marine		—		98,533		—		98,533
Multi-Utilities		185,170		—		—		185,170
Road & Rail		44,545		—		—		44,545
Semiconductors & Semiconductor Equipment		187,787		204,045		—		391,832
Textiles, Apparel & Luxury Goods		99,192		652,384		—		751,576
Total Common Stocks		855,900		2,829,722		—		3,685,622
Investment Company		16,131		—		—		16,131
Call Options Purchased		—		15		—		15
Short-Term Investments
Investment Company		77,230		—		—		77,230
Repurchase Agreements		—		619		—		619
Total Short-Term Investments		77,230		619		—		77,849
Total Assets	$	949,261	$	2,830,356	$	—	$	3,779,617

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

maturities of foreign denominated debt securities are treated as ordinary income for U.S. federal income tax purposes.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the 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.

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

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 expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

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

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(1,168	)(b)

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At June 30, 2022, 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(c) (000)			Liabilities(c) (000)
Purchased Options	$	15	(a)	$	—

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

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

counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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(d) (000)			Net Amount (not less than $0) (000)
JP Morgan Chase Bank NA	$	15	$	—	$	(15	)	$	0

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

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					942,456,000

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 June 30, 2022:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	9,171	(e)	$	—	$	(9,171	)(f)(g)	$	0

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

(f) The Fund received cash collateral of approximately $3,500,000, of which approximately $3,320,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $180,000, which is not reflected in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $6,980,000 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.

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

FASB ASC 860, "Transfers & Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures", is intended to provide increased transparency

about the types of collateral pledged in securities lending transactions and other similar transactions that are accounted for as secured borrowing.

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	$	3,500	$	—	$	—	$	—	$	3,500
Total Borrowings	$	3,500	$	—	$	—	$	—	$	3,500
Gross amount of recognized liabilities for securities lending transactions									$	3,500

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.80	%			0.75	%

For the six months ended June 30, 2022, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.75% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares and 0.95% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $1,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $779,686,000 and $708,049,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $138,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company/Issuer	Value December 31, 2021 (000)		Purchases at Cost (000)		Proceeds from Sales (000)		Dividend Income (000)
Liquidity Funds	$	482,779	$	688,102	$	1,093,651	$	221
Canada Goose Holdings, Inc.		177,505		36,737		12,077		—
	$	660,284	$	724,839	$	1,105,728	$	221

Affiliated Investment Company/Issuer (cont'd)	Realized Gain (Loss) (000)			Change in Unrealized Appreciation (Depreciation) (000)			Value June 30, 2022 (000)
Liquidity Funds	$	—		$	—		$	77,230
Canada Goose Holdings, Inc.		(5,717	)		(97,256	)		99,192
	$	(5,717	)	$	(97,256	)	$	176,422

During the six months ended June 30, 2022, the Fund incurred approximately $5,000 in brokerage commissions with Morgan Stanley & Co. LLC, an affiliate of the Adviser/Administrator, Sub-Adviser and Distributor, for portfolio transactions executed on behalf of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	62,837	$	1,866	$	12

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	19,919			$	(19,919	)

At December 31, 2021, 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)
$	—			$	129,318

K. Market Risk and Risks Relating to Certain Financial Instruments:
Bitcoin: The Fund may have exposure to bitcoin indirectly through investments in GBTC, a privately offered investment vehicle that invests in bitcoin. 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 GBTC (and the Fund's indirect exposure to such bitcoin) is also susceptible to these risks. The value of the GBTC 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 GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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. The Board noted that the Fund's actual management fee and total expense ratio were higher than but close to its peer group averages and contractual management fee was lower than its peer group average. 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management Company
23 Church Street
16-01 Capital Square, Singapore 049481

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIIASAN
4877777 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

International Equity Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					8
Statements of Changes in Net Assets					9
Financial Highlights					11
Notes to Financial Statements					16
Investment Advisory Agreement Approval					24
Liquidity Risk Management Program					26
U.S. Customer Privacy Notice					27
Director and Officer Information					30

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

International Equity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
International Equity Portfolio Class I	$	1,000.00	$	826.50	$	1,020.08	$	4.30	$	4.76		0.95	%
International Equity Portfolio Class A		1,000.00		825.30		1,018.45		5.79		6.41		1.28
International Equity Portfolio Class L		1,000.00		822.50		1,015.87		8.13		9.00		1.80
International Equity Portfolio Class C		1,000.00		821.60		1,014.63		9.26		10.24		2.05
International Equity Portfolio Class R6⁽¹⁾		1,000.00		826.40		1,020.28		4.12		4.56		0.91

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

International Equity Portfolio

	Shares		Value (000)
Common Stocks (98.3%)
Australia (0.7%)
Aristocrat Leisure Ltd.		455,870	$	10,843
Belgium (0.4%)
KBC Group NV		123,744		6,962
Canada (6.2%)
Barrick Gold Corp. (a)		1,846,692		32,653
Constellation Software, Inc.		34,038		50,530
Tourmaline Oil Corp. (a)		287,923		14,971
				98,154
China (2.7%)
Minth Group Ltd. (b)		3,966,000		10,866
Tencent Holdings Ltd. (b)		703,400		31,840
				42,706
Denmark (2.7%)
Carlsberg AS Series B		222,023		28,375
Tryg AS		669,243		15,078
				43,453
Finland (0.5%)
Kone Oyj, Class B		173,464		8,291
France (16.8%)
AXA SA		1,096,765		25,052
L'Oreal SA		57,329		19,905
Legrand SA		244,731		18,171
LVMH Moet Hennessy Louis Vuitton SE		63,752		39,072
Pernod Ricard SA		97,039		17,940
Safran SA		332,165		33,072
Sanofi		493,536		49,771
Teleperformance		47,684		14,724
Thales SA		210,110		25,797
Worldline SA (c)		638,753		23,825
				267,329
Germany (14.9%)
Adidas AG		106,470		18,912
Deutsche Boerse AG		210,970		35,428
Deutsche Post AG (Registered)		810,521		30,602
Fresenius SE & Co., KGaA		920,531		27,995
Henkel AG & Co., KGaA (Preference)		105,438		6,525
Infineon Technologies AG		742,363		18,058
Knorr-Bremse AG		283,579		16,242
MTU Aero Engines AG		143,362		26,263
QIAGEN NV (c)		215,837		10,148
SAP SE		505,214		46,050
				236,223
Hong Kong (2.9%)
AIA Group Ltd.		4,232,400		46,246
Italy (1.7%)
Moncler SpA		635,283		27,372

	Shares		Value (000)
Japan (6.3%)
FANUC Corp.		72,700	$	11,395
Hoya Corp.		218,300		18,683
Keyence Corp.		23,500		8,059
Kirin Holdings Co. Ltd. (a)		2,062,900		32,588
Shiseido Co. Ltd.		708,600		28,561
				99,286
Korea, Republic of (1.3%)
Samsung Electronics Co. Ltd.		453,144		19,987
Netherlands (2.4%)
Heineken NV		412,956		37,588
Norway (0.6%)
Mowi ASA		426,975		9,764
Singapore (1.9%)
DBS Group Holdings Ltd.		1,388,900		29,719
Spain (1.6%)
Grifols SA (a)		1,309,728		24,838
Sweden (3.7%)
Atlas Copco AB, Class A		1,552,272		14,529
Epiroc AB, Class A		967,201		14,997
Hexagon AB, Class B		1,065,248		11,131
Svenska Handelsbanken AB, Class A		2,101,110		18,036
				58,693
Switzerland (6.8%)
Alcon, Inc.		118,237		8,291
Novartis AG (Registered)		292,320		24,783
Partners Group Holding AG		9,182		8,292
Roche Holding AG (Genusschein)		132,099		44,161
UBS Group AG (Registered)		1,394,221		22,540
				108,067
Taiwan (2.3%)
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		441,497		36,092
United Kingdom (21.9%)
Associated British Foods PLC		1,721,271		33,213
AstraZeneca PLC		207,310		27,349
British American Tobacco PLC		670,898		28,757
Experian PLC		422,715		12,411
Hiscox Ltd.		1,231,778		14,186
Imperial Brands PLC		1,531,411		34,285
Legal & General Group PLC		5,265,239		15,393
Prudential PLC		3,052,933		37,976
Reckitt Benckiser Group PLC		789,021		59,344
RELX PLC (Euronext NV)		596,934		16,143
RELX PLC (LSE)		527,744		14,329
Shell PLC		1,521,915		39,635
St. James's Place PLC		1,103,046		14,842
				347,863
Total Common Stocks (Cost $1,393,548)				1,559,476

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments (cont'd)

International Equity Portfolio

	Shares		Value (000)
Short-Term Investments (2.2%)
Securities held as Collateral on Loaned Securities (0.3%)
Investment Company (0.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		3,838,685	$	3,839
	Face Amount (000)
Repurchase Agreements (0.1%)
HSBC Securities USA, Inc., (1.50%, dated 6/30/22, due 7/1/22; proceeds $300; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 2/15/23 - 5/15/32; valued at $306)	$	300		300
Merrill Lynch & Co., Inc., (1.46%, dated 6/30/22, due 7/1/22; proceeds $580; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $592)		580		580
				880
Total Securities held as Collateral on Loaned Securities (Cost $4,719)				4,719
	Shares
Investment Company (1.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $29,459)		29,459,032		29,459
Total Short-Term Investments (Cost $34,178)				34,178
Total Investments (100.5%) (Cost $1,427,726) Including $24,755 of Securities Loaned (d)(e)				1,593,654
Liabilities in Excess of Other Assets (–0.5%)				(7,897	)
Net Assets (100.0%)			$	1,585,757

(a) All or a portion of this security was on loan at June 30, 2022.

(b) Security trades on the Hong Kong exchange.

(d) The approximate fair value and percentage of net assets, $1,425,230,000 and 89.9%, 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 the Financial Statements.

(e) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $322,160,000 and the aggregate gross unrealized depreciation is approximately $156,232,000, resulting in net unrealized appreciation of approximately $165,928,000.

ADR American Depositary Receipt.

Euronext NV Euronext Amsterdam Stock Market.

LSE London Stock Exchange.

Portfolio Composition*

Classification	Percentage of Total Investments
Others**		51.8	%
Insurance		9.7
Pharmaceuticals		9.2
Beverages		7.3
Software		6.1
Textiles, Apparel & Luxury Goods		5.4
Aerospace & Defense		5.4
Capital Markets		5.1
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

** 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, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

International Equity Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $1,394,428)	$	1,560,356
Investment in Security of Affiliated Issuer, at Value (Cost $33,298)		33,298
Total Investments in Securities, at Value (Cost $1,427,726)		1,593,654
Foreign Currency, at Value (Cost $1,327)		1,371
Cash from Securities Lending		256
Receivable for Investments Sold		7,863
Tax Reclaim Receivable		4,775
Dividends Receivable		1,287
Receivable for Fund Shares Sold		187
Receivable from Securities Lending Income		21
Receivable from Affiliate		16
Other Assets		197
Total Assets		1,609,627
Liabilities:
Payable for Investments Purchased		14,447
Collateral on Securities Loaned, at Value		4,975
Payable for Advisory Fees		3,201
Payable for Fund Shares Redeemed		681
Payable for Sub Transfer Agency Fees — Class I		234
Payable for Sub Transfer Agency Fees — Class A		11
Payable for Sub Transfer Agency Fees — Class L		1
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Administration Fees		108
Payable for Custodian Fees		81
Payable for Shareholder Services Fees — Class A		10
Payable for Distribution and Shareholder Services Fees — Class H		3
Payable for Distribution and Shareholder Services Fees — Class L		3
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Transfer Agency Fees — Class I		6
Payable for Transfer Agency Fees — Class A		3
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 Professional Fees		7
Other Liabilities		95
Total Liabilities		22,870
Net Assets	$	1,585,757
Net Assets Consist of:
Paid-in-Capital	$	1,320,834
Total Distributable Earnings		264,923
Net Assets	$	1,585,757

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

International Equity Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	1,187,718
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		94,426,171
Net Asset Value, Offering and Redemption Price Per Share	$	12.58
CLASS A:
Net Assets	$	45,784
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,658,389
Net Asset Value, Redemption Price Per Share	$	12.51
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.69
Maximum Offering Price Per Share	$	13.20
CLASS L:
Net Assets	$	4,009
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		326,384
Net Asset Value, Offering and Redemption Price Per Share	$	12.28
CLASS C:
Net Assets	$	790
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		65,685
Net Asset Value, Offering and Redemption Price Per Share	$	12.02
CLASS R6:*
Net Assets	$	347,456
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		27,636,894
Net Asset Value, Offering and Redemption Price Per Share	$	12.57
⁽¹⁾ Including: Securities on Loan, at Value:	$	24,755

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

International Equity Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $3,448 of Foreign Taxes Withheld)	$	31,294
Income from Securities Loaned — Net		126
Dividends from Security of Affiliated Issuer (Note G)		34
Total Investment Income		31,454
Expenses:
Advisory Fees (Note B)		7,343
Sub Transfer Agency Fees — Class I		710
Sub Transfer Agency Fees — Class A		27
Sub Transfer Agency Fees — Class L		2
Sub Transfer Agency Fees — Class C		—	@
Administration Fees (Note C)		734
Custodian Fees (Note F)		126
Shareholder Services Fees — Class A (Note D)		65
Distribution and Shareholder Services Fees — Class L (Note D)		18
Distribution and Shareholder Services Fees — Class C (Note D)		4
Professional Fees		53
Registration Fees		38
Shareholder Reporting Fees		35
Transfer Agency Fees — Class I (Note E)		10
Transfer Agency Fees — Class A (Note E)		5
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6 (Note E)*		2
Directors' Fees and Expenses		14
Pricing Fees		2
Other Expenses		23
Total Expenses		9,214
Reimbursement of Class Specific Expenses — Class I (Note B)		(445	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6 (Note B)*		(2	)
Waiver of Advisory Fees (Note B)		(14	)
Rebate from Morgan Stanley Affiliate (Note G)		(14	)
Net Expenses		8,738
Net Investment Income		22,716
Realized Gain (Loss):
Investments Sold		71,067
Foreign Currency Translation		(262	)
Net Realized Gain		70,805
Change in Unrealized Appreciation (Depreciation):
Investments		(441,384	)
Foreign Currency Translation		(444	)
Net Change in Unrealized Appreciation (Depreciation)		(441,828	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(371,023	)
Net Decrease in Net Assets Resulting from Operations	$	(348,307	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

International Equity Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	22,716		$	37,670
Net Realized Gain		70,805			181,831
Net Change in Unrealized Appreciation (Depreciation)		(441,828	)		(131,589	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(348,307	)		87,912
Dividends and Distributions to Shareholders:
Class I		—			(152,453	)
Class A		—			(5,746	)
Class L		—			(485	)
Class C		—			(85	)
Class R6*		—			(44,255	)
Total Dividends and Distributions to Shareholders		—			(203,024	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		67,167			115,427
Distributions Reinvested		—			148,748
Redeemed		(150,215	)		(304,337	)
Class A:
Subscribed		1,631			9,597
Distributions Reinvested		—			5,586
Redeemed		(4,569	)		(13,561	)
Class L:
Exchanged		63			37
Distributions Reinvested		—			480
Redeemed		(530	)		(338	)
Class C:
Subscribed		132			293
Distributions Reinvested		—			85
Redeemed		(107	)		(166	)
Class R6:*
Subscribed		7,061			51,194
Distributions Reinvested		—			36,257
Redeemed		(36,753	)		(77,257	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(116,120	)		(27,955	)
Total Decrease in Net Assets		(464,427	)		(143,067	)
Net Assets:
Beginning of Period		2,050,184			2,193,251
End of Period	$	1,585,757		$	2,050,184

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

International Equity Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		4,901			6,892
Shares Issued on Distributions Reinvested		—			10,085
Shares Redeemed		(11,090	)		(18,714	)
Net Decrease in Class I Shares Outstanding		(6,189	)		(1,737	)
Class A:
Shares Subscribed		118			577
Shares Issued on Distributions Reinvested		—			380
Shares Redeemed		(331	)		(821	)
Net Increase (Decrease) in Class A Shares Outstanding		(213	)		136
Class L:
Shares Exchanged		5			3
Shares Issued on Distributions Reinvested		—			33
Shares Redeemed		(40	)		(21	)
Net Increase (Decrease) in Class L Shares Outstanding		(35	)		15
Class C:
Shares Subscribed		10			18
Shares Issued on Distributions Reinvested		—			6
Shares Redeemed		(8	)		(10	)
Net Increase in Class C Shares Outstanding		2			14
Class R6:*
Shares Subscribed		497			3,071
Shares Issued on Distributions Reinvested		—			2,460
Shares Redeemed		(2,664	)		(4,636	)
Net Increase (Decrease) in Class R6 Shares* Outstanding		(2,167	)		895

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

International Equity Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	15.22		$	16.20		$	14.74		$	13.49		$	17.97		$	14.64
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.17			0.29			0.18			0.28			0.31			0.26
Net Realized and Unrealized Gain (Loss)		(2.81	)		0.34			1.50			2.47			(2.78	)		3.41
Total from Investment Operations		(2.64	)		0.63			1.68			2.75			(2.47	)		3.67
Distributions from and/or in Excess of:
Net Investment Income		—			(0.33	)		(0.22	)		(0.32	)		(0.39	)		(0.34	)
Net Realized Gain		—			(1.28	)		—			(1.18	)		(1.62	)		—
Total Distributions		—			(1.61	)		(0.22	)		(1.50	)		(2.01	)		(0.34	)
Redemption Fees		—			—			—			0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	12.58		$	15.22		$	16.20		$	14.74		$	13.49		$	17.97
Total Return⁽³⁾		(17.35	)%⁽⁶⁾		4.19	%		11.42	%		20.37	%		(13.80	)%		25.17	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,187,718		$	1,531,709		$	1,658,464		$	1,539,709		$	1,725,392		$	1,691,807
Ratio of Expenses Before Expense Limitation		1.02	%⁽⁷⁾		1.01	%		1.00	%		1.00	%		0.99	%		0.99	%
Ratio of Expenses After Expense Limitation		0.95	%⁽⁴⁾⁽⁷⁾		0.95	%⁽⁴⁾		0.95	%⁽⁴⁾		0.95	%⁽⁴⁾		0.95	%⁽⁴⁾		0.95	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			0.95	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income		2.49	%⁽⁴⁾⁽⁷⁾		1.70	%⁽⁴⁾		1.28	%⁽⁴⁾		1.86	%⁽⁴⁾		1.82	%⁽⁴⁾		1.54	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		23	%⁽⁶⁾		20	%		20	%		20	%		34	%		18	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

International Equity Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	15.17		$	16.15		$	14.67		$	13.42		$	17.75		$	14.46
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.15			0.25			0.11			0.24			0.32			0.19
Net Realized and Unrealized Gain (Loss)		(2.81	)		0.36			1.50			2.46			(2.82	)		3.38
Total from Investment Operations		(2.66	)		0.61			1.61			2.70			(2.50	)		3.57
Distributions from and/or in Excess of:
Net Investment Income		—			(0.31	)		(0.13	)		(0.27	)		(0.21	)		(0.28	)
Net Realized Gain		—			(1.28	)		—			(1.18	)		(1.62	)		—
Total Distributions		—			(1.59	)		(0.13	)		(1.45	)		(1.83	)		(0.28	)
Redemption Fees		—			—			—			0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	12.51		$	15.17		$	16.15		$	14.67		$	13.42		$	17.75
Total Return⁽³⁾		(17.47	)%⁽⁶⁾		4.07	%		11.00	%		20.11	%		(14.13	)%		24.77	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	45,784		$	58,739		$	60,346		$	212,578		$	244,622		$	1,231,279
Ratio of Expenses Before Expense Limitation		1.28	%⁽⁷⁾		1.07	%		1.43	%		1.25	%		1.31	%		1.31	%
Ratio of Expenses After Expense Limitation		1.28	%⁽⁴⁾⁽⁷⁾		1.07	%⁽⁴⁾		1.30	%⁽⁴⁾		1.25	%⁽⁴⁾		1.30	%⁽⁴⁾		1.30	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			1.25	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income		2.14	%⁽⁴⁾⁽⁷⁾		1.57	%⁽⁴⁾		0.80	%⁽⁴⁾		1.62	%⁽⁴⁾		1.83	%⁽⁴⁾		1.16	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		23	%⁽⁶⁾		20	%		20	%		20	%		34	%		18	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

International Equity Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	14.93		$	15.91		$	14.50		$	13.28		$	17.70		$	14.43
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.11			0.14			0.06			0.15			0.10			0.11
Net Realized and Unrealized Gain (Loss)		(2.76	)		0.35			1.45			2.44			(2.66	)		3.35
Total from Investment Operations		(2.65	)		0.49			1.51			2.59			(2.56	)		3.46
Distributions from and/or in Excess of:
Net Investment Income		—			(0.19	)		(0.10	)		(0.19	)		(0.24	)		(0.19	)
Net Realized Gain		—			(1.28	)		—			(1.18	)		(1.62	)		—
Total Distributions		—			(1.47	)		(0.10	)		(1.37	)		(1.86	)		(0.19	)
Redemption Fees		—			—			—			0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	12.28		$	14.93		$	15.91		$	14.50		$	13.28		$	17.70
Total Return⁽³⁾		(17.75	)%⁽⁶⁾		3.34	%		10.40	%		19.48	%		(14.49	)%		24.06	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,009		$	5,394		$	5,513		$	5,888		$	6,022		$	7,099
Ratio of Expenses Before Expense Limitation		1.81	%⁽⁷⁾		1.79	%		1.83	%		1.79	%		N/A%			1.90	%
Ratio of Expenses After Expense Limitation		1.80	%⁽⁴⁾⁽⁷⁾		1.79	%⁽⁴⁾		1.80	%⁽⁴⁾		1.78	%⁽⁴⁾		1.72	%⁽⁴⁾		1.80	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			1.78	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income		1.62	%⁽⁴⁾⁽⁷⁾		0.88	%⁽⁴⁾		0.41	%⁽⁴⁾		1.06	%⁽⁴⁾		1.17	%⁽⁴⁾		0.69	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		23	%⁽⁶⁾		20	%		20	%		20	%		34	%		18	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

International Equity Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	14.63		$	15.64		$	14.26		$	13.08		$	17.51		$	14.31
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.09			0.09			0.02			0.10			0.05			0.04
Net Realized and Unrealized Gain (Loss)		(2.70	)		0.34			1.43			2.41			(2.64	)		3.35
Total from Investment Operations		(2.61	)		0.43			1.45			2.51			(2.59	)		3.39
Distributions from and/or in Excess of:
Net Investment Income		—			(0.16	)		(0.07	)		(0.15	)		(0.22	)		(0.19	)
Net Realized Gain		—			(1.28	)		—			(1.18	)		(1.62	)		—
Total Distributions		—			(1.44	)		(0.07	)		(1.33	)		(1.84	)		(0.19	)
Redemption Fees		—			—			—			0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	12.02		$	14.63		$	15.64		$	14.26		$	13.08		$	17.51
Total Return⁽³⁾		(17.84	)%⁽⁶⁾		3.02	%		10.17	%		19.18	%		(14.82	)%		23.78	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	790		$	929		$	776		$	674		$	787		$	677
Ratio of Expenses Before Expense Limitation		2.33	%⁽⁷⁾		2.33	%		2.41	%		2.35	%		2.27	%		2.41	%
Ratio of Expenses After Expense Limitation		2.05	%⁽⁴⁾⁽⁷⁾		2.05	%⁽⁴⁾		2.05	%⁽⁴⁾		2.05	%⁽⁴⁾		2.05	%⁽⁴⁾		2.05	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			2.05	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Income		1.36	%⁽⁴⁾⁽⁷⁾		0.58	%⁽⁴⁾		0.15	%⁽⁴⁾		0.73	%⁽⁴⁾		0.83	%⁽⁴⁾		0.22	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		23	%⁽⁶⁾		20	%		20	%		20	%		34	%		18	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

International Equity Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	15.21		$	16.19		$	14.74		$	13.48		$	17.97		$	14.64
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.17			0.30			0.18			0.29			0.38			0.26
Net Realized and Unrealized Gain (Loss)		(2.81	)		0.33			1.50			2.48			(2.86	)		3.42
Total from Investment Operations		(2.64	)		0.63			1.68			2.77			(2.48	)		3.68
Distributions from and/or in Excess of:
Net Investment Income		—			(0.33	)		(0.23	)		(0.33	)		(0.39	)		(0.35	)
Net Realized Gain		—			(1.28	)		—			(1.18	)		(1.62	)		—
Total Distributions		—			(1.61	)		(0.23	)		(1.51	)		(2.01	)		(0.35	)
Redemption Fees		—			—			—			0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	12.57		$	15.21		$	16.19		$	14.74		$	13.48		$	17.97
Total Return⁽⁴⁾		(17.36	)%⁽⁷⁾		4.24	%		11.39	%		20.42	%		(13.76	)%		25.22	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	347,456		$	453,413		$	468,152		$	456,618		$	462,752		$	1,230,104
Ratio of Expenses Before Expense Limitation		0.91	%⁽⁸⁾		0.91	%		0.91	%		0.91	%		N/A%			0.91	%
Ratio of Expenses After Expense Limitation		0.91	%⁽⁵⁾⁽⁸⁾		0.91	%⁽⁵⁾		0.91	%⁽⁵⁾		0.91	%⁽⁵⁾		0.90	%⁽⁵⁾		0.91	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			N/A			N/A			0.91	%⁽⁵⁾		N/A			N/A
Ratio of Net Investment Income		2.48	%⁽⁵⁾⁽⁸⁾		1.76	%⁽⁵⁾		1.31	%⁽⁵⁾		1.94	%⁽⁵⁾		2.19	%⁽⁵⁾		1.52	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		23	%⁽⁷⁾		20	%		20	%		20	%		34	%		18	%

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the International Equity Portfolio. The Fund seeks long-term capital appreciation by investing primarily in equity securities of non-U.S. issuers.

is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser or the Sub-Adviser determines that the closing price, last sale

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in valuing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	—	$	85,132	$	—	$	85,132
Air Freight & Logistics		—		30,602		—		30,602
Auto Components		—		10,866		—		10,866
Banks		—		54,717		—		54,717
Beverages		—		116,491		—		116,491
Biotechnology		—		24,838		—		24,838
Capital Markets		—		81,102		—		81,102
Electrical Equipment		—		18,171		—		18,171
Electronic Equipment, Instruments & Components		—		19,190		—		19,190
Food Products		—		42,977		—		42,977
Health Care Equipment & Supplies		—		26,974		—		26,974
Health Care Providers & Services		—		27,995		—		27,995
Hotels, Restaurants & Leisure		—		10,843		—		10,843
Household Products		—		65,869		—		65,869
Information Technology Services		—		23,825		—		23,825
Insurance		—		153,931		—		153,931
Interactive Media & Services		—		31,840		—		31,840
Life Sciences Tools & Services		—		10,148		—		10,148
Machinery		—		65,454		—		65,454
Metals & Mining		32,653		—		—		32,653
Oil, Gas & Consumable Fuels		14,971		39,635		—		54,606
Personal Products		—		48,466		—		48,466
Pharmaceuticals		—		146,064		—		146,064
Professional Services		—		57,607		—		57,607
Semiconductors & Semiconductor Equipment		36,092		18,058		—		54,150
Software		50,530		46,050		—		96,580
Tech Hardware, Storage & Peripherals		—		19,987		—		19,987
Textiles, Apparel & Luxury Goods		—		85,356		—		85,356
Tobacco		—		63,042		—		63,042
Total Common Stocks		134,246		1,425,230		—		1,559,476
Short-Term Investments
Investment Company		33,298		—		—		33,298
Repurchase Agreements		—		880		—		880
Total Short-Term Investments		33,298		880		—		34,178
Total Assets	$	167,544	$	1,426,110	$	—	$	1,593,654

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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 June 30, 2022:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	24,755	(a)	$	—	$	(24,755	)(b)(c)	$	0

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

(b) The Fund received cash collateral of approximately $4,975,000, of which approximately $4,719,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $256,000, which is not reflected in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $20,985,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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	$	4,975	$	—	$	—	$	—	$	4,975
Total Borrowings	$	4,975	$	—	$	—	$	—	$	4,975
Gross amount of recognized liabilities for securities lending transactions									$	4,975

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

First $3 billion				Over $3 billion
	0.80	%			0.75	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.80% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.95% for Class I shares, 1.30% for Class A shares, 1.80% for Class L shares, 2.05% for Class C shares and 0.91% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $14,000 of advisory fees were waived and approximately $448,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Company has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $414,713,000 and $495,297,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities

Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $14,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	35,759			$	241,335			$	243,796			$	34

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	33,298

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	50,803	$	152,221	$	29,392	$	—

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2021.

At December 31, 2021, 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)
$	3,488			$	42,749

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$	—			$	88

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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 below 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. The Board noted that the Fund's management fee and total expense ratio were higher than but close to 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management Limited
25 Cabot Square, Canary Wharf
London, E14 4QA, England

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIIESAN
4873232 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

International Opportunity Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					17
Investment Advisory Agreement Approval					28
Liquidity Risk Management Program					30
U.S. Customer Privacy Notice					31
Director and Officer Information					34

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

International Opportunity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
International Opportunity Portfolio Class I	$	1,000.00	$	546.00	$	1,019.84	$	3.83	$	5.01		1.00	%
International Opportunity Portfolio Class A		1,000.00		545.20		1,018.10		5.17		6.76		1.35
International Opportunity Portfolio Class L		1,000.00		543.80		1,015.62		7.08		9.25		1.85
International Opportunity Portfolio Class C		1,000.00		543.30		1,014.63		7.84		10.24		2.05
International Opportunity Portfolio Class R6⁽¹⁾		1,000.00		546.40		1,020.28		3.49		4.56		0.91
International Opportunity Portfolio Class IR		1,000.00		546.40		1,020.28		3.49		4.56		0.91

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

International Opportunity Portfolio

	Shares		Value (000)
Common Stocks (97.7%)
Argentina (2.8%)
Globant SA (a)		264,300	$	45,988
Brazil (2.0%)
Magazine Luiza SA		28,305,776		12,656
NU Holdings Ltd., Class A (a)		5,447,659		20,374
				33,030
Canada (5.0%)
Canada Goose Holdings, Inc. (a)		2,074,207		37,357
Shopify, Inc., Class A (a)		1,465,817		45,792
				83,149
China (12.9%)
Foshan Haitian Flavouring & Food Co. Ltd., Class A		1,661,888		22,494
Kuaishou Technology (a)(b)		3,221,600		36,207
Meituan, Class B (a)(b)		3,342,700		83,415
Tencent Holdings Ltd. (b)		589,800		26,697
Trip.com Group Ltd. ADR (a)		1,723,988		47,323
				216,136
Denmark (6.7%)
DSV AS		796,745		112,036
France (3.5%)
Hermes International		51,226		57,651
Germany (9.1%)
Adidas AG		357,524		63,507
HelloFresh SE (a)		1,689,531		55,121
Puma SE		503,212		33,386
				152,014
India (12.5%)
HDFC Bank Ltd.		7,461,585		127,810
ICICI Bank Ltd. ADR		4,586,971		81,374
				209,184
Italy (4.1%)
Moncler SpA		1,597,307		68,822
Japan (3.5%)
Change, Inc. (c)		716,500		11,393
Keyence Corp.		137,500		47,154
				58,547
Korea, Republic of (4.4%)
KakaoBank Corp. (a)(c)		1,151,432		26,899
NAVER Corp.		247,273		46,123
				73,022
Netherlands (5.0%)
Adyen NV (a)		30,357		43,809
ASML Holding NV		85,666		40,472
				84,281
Norway (1.3%)
AutoStore Holdings Ltd. (a)		10,656,703		15,444
Kahoot! ASA (a)(c)		3,482,317		6,470
				21,914

	Shares		Value (000)
Singapore (2.7%)
Grab Holdings Limited., Class A (a)		12,997,688	$	32,884
Sea Ltd. ADR (a)		173,793		11,620
				44,504
Sweden (4.2%)
Evolution AB		539,665		49,369
Vitrolife AB		921,875		21,268
				70,637
Taiwan (2.8%)
Taiwan Semiconductor Manufacturing Co. Ltd.		2,940,000		47,118
United Kingdom (1.9%)
Deliveroo PLC (a)		19,155,694		21,207
Fevertree Drinks PLC		723,131		10,768
				31,975
United States (13.3%)
Coupang, Inc. (a)		5,595,613		71,344
Farfetch Ltd., Class A (a)		2,515,528		18,011
MercadoLibre, Inc. (a)		121,240		77,214
Spotify Technology SA (a)		584,266		54,822
				221,391
Total Common Stocks (Cost $1,974,341)				1,631,399
Investment Company (0.7%)
United States (0.7%)
Grayscale Bitcoin Trust (a) (Cost $45,837)		1,024,960		12,361
Short-Term Investments (1.0%)
Securities held as Collateral on Loaned Securities (0.0%) (d)
Investment Company (0.0%) (d)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		421,299		421
	Face Amount (000)
Repurchase Agreements (0.0%) (d)
HSBC Securities USA, Inc., (1.50%, dated 6/30/22, due 7/1/22; proceeds $33; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 2/15/23 - 5/15/32; valued at $34)	$	33		33
Merrill Lynch & Co., Inc., (1.46%, dated 6/30/22, due 7/1/22; proceeds $64; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $65)		64		64
				97
Total Securities held as Collateral on Loaned Securities (Cost $518)				518

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

International Opportunity Portfolio

	Shares		Value (000)
Investment Company (1.0%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $15,928)		15,928,435	$	15,928
Total Short-Term Investments (Cost $16,446)				16,446
Total Investments Excluding Purchased Options (99.4%) (Cost $2,036,624)				1,660,206
Total Purchased Options Outstanding (0.0%) (d) (Cost $9,660)				24
Total Investments (99.4%) (Cost $2,046,284) Including $33,813 of Securities Loaned (e)(f)(g)				1,660,230
Other Assets in Excess of Liabilities (0.6%)				10,087
Net Assets (100.0%)			$	1,670,317

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(d) Amount is less than 0.05%.

(e) The approximate fair value and percentage of net assets, $1,074,640,000 and 64.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(f) Securities are available for collateral in connection with purchased options.

(g) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $298,975,000 and the aggregate gross unrealized depreciation is approximately $685,029,000, resulting in net unrealized depreciation of approximately $386,054,000.

ADR American Depositary Receipt.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		952,422,356		952,422	$	21	$	6,469	$	(6,448	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		601,605,554		601,606		3		3,191		(3,188	)
									$	24	$	9,660	$	(9,636	)

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Others**		19.1	%
Internet & Direct Marketing Retail		16.3
Textiles, Apparel & Luxury Goods		15.7
Banks		15.5
Information Technology Services		8.9
Air Freight & Logistics		6.8
Interactive Media & Services		6.6
Hotels, Restaurants & Leisure		5.8
Semiconductors & Semiconductor Equipment		5.3
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

International Opportunity Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $2,029,935)	$	1,643,881
Investment in Security of Affiliated Issuer, at Value (Cost $16,349)		16,349
Total Investments in Securities, at Value (Cost $2,046,284)		1,660,230
Foreign Currency, at Value (Cost $214)		216
Cash from Securities Lending		28
Receivable for Investments Sold		18,250
Receivable for Fund Shares Sold		3,032
Dividends Receivable		1,532
Tax Reclaim Receivable		640
Receivable from Securities Lending Income		42
Receivable from Affiliate		16
Other Assets		259
Total Assets		1,684,245
Liabilities:
Payable for Fund Shares Redeemed		6,291
Payable for Advisory Fees		3,601
Deferred Capital Gain Country Tax		1,803
Payable for Sub Transfer Agency Fees — Class I		806
Payable for Sub Transfer Agency Fees — Class A		201
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		19
Collateral on Securities Loaned, at Value		546
Payable for Custodian Fees		229
Payable for Administration Fees		120
Payable for Transfer Agency Fees — Class I		81
Payable for Transfer Agency Fees — Class A		4
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		6
Payable for Transfer Agency Fees — Class R6*		5
Payable for Transfer Agency Fees — Class IR		—	@
Payable for Shareholder Services Fees — Class A		59
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		34
Due to Broker		80
Payable for Professional Fees		7
Other Liabilities		36
Total Liabilities		13,928
Net Assets	$	1,670,317
Net Assets Consist of:
Paid-in-Capital	$	2,233,846
Total Accumulated Loss		(563,529	)
Net Assets	$	1,670,317

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

International Opportunity Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	1,115,400
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		53,141,050
Net Asset Value, Offering and Redemption Price Per Share	$	20.99
CLASS A:
Net Assets	$	268,930
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		13,159,722
Net Asset Value, Redemption Price Per Share	$	20.44
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.13
Maximum Offering Price Per Share	$	21.57
CLASS L:
Net Assets	$	199
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		10,273
Net Asset Value, Offering and Redemption Price Per Share	$	19.36
CLASS C:
Net Assets	$	39,009
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,046,911
Net Asset Value, Offering and Redemption Price Per Share	$	19.06
CLASS R6:*
Net Assets	$	130,390
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		6,185,406
Net Asset Value, Offering and Redemption Price Per Share	$	21.08
CLASS IR:
Net Assets	$	116,389
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,519,758
Net Asset Value, Offering and Redemption Price Per Share	$	21.09
⁽¹⁾ Including: Securities on Loan, at Value:	$	33,813

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

International Opportunity Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $1,369 of Foreign Taxes Withheld)	$	9,131
Income from Securities Loaned — Net		1,157
Non-Cash Dividends from Securities of Unaffiliated Issuers		584
Dividends from Security of Affiliated Issuer (Note G)		46
Total Investment Income		10,918
Expenses:
Advisory Fees (Note B)		10,392
Sub Transfer Agency Fees — Class I		1,656
Sub Transfer Agency Fees — Class A		402
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		34
Administration Fees (Note C)		1,082
Shareholder Services Fees — Class A (Note D)		500
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		295
Custodian Fees (Note F)		395
Shareholder Reporting Fees		161
Registration Fees		114
Transfer Agency Fees — Class I (Note E)		64
Transfer Agency Fees — Class A (Note E)		7
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		9
Transfer Agency Fees — Class R6* (Note E)		11
Transfer Agency Fees — Class IR (Note E)		1
Professional Fees		75
Directors' Fees and Expenses		23
Pricing Fees		1
Other Expenses		44
Total Expenses		15,268
Reimbursement of Class Specific Expenses — Class I (Note B)		(825	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(27	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(7	)
Rebate from Morgan Stanley Affiliate (Note G)		(25	)
Net Expenses		14,383
Net Investment Loss		(3,465	)
Realized Loss:
Investments Sold (Net of $1,325 of Capital Gain Country Tax)		(269,847	)
Foreign Currency Translation		(185	)
Net Realized Loss		(270,032	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $2,755)		(1,453,187	)
Investments in Affiliates		(44,737	)
Foreign Currency Translation		(64	)
Net Change in Unrealized Appreciation (Depreciation)		(1,497,988	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(1,768,020	)
Net Decrease in Net Assets Resulting from Operations	$	(1,771,485	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

International Opportunity Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(3,465	)	$	(36,022	)
Net Realized Gain (Loss)		(270,032	)		203,008
Net Change in Unrealized Appreciation (Depreciation)		(1,497,988	)		(446,887	)
Net Decrease in Net Assets Resulting from Operations		(1,771,485	)		(279,901	)
Dividends and Distributions to Shareholders:
Class I		—			(68,830	)
Class A		—			(14,095	)
Class L		—			(10	)
Class C		—			(2,116	)
Class R6*		—			(2,776	)
Class IR		—			(2,945	)
Total Dividends and Distributions to Shareholders		—			(90,772	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		346,627			1,452,927
Distributions Reinvested		—			67,721
Redeemed		(1,172,755	)		(1,162,793	)
Class A:
Subscribed		27,197			227,617
Distributions Reinvested		—			13,921
Redeemed		(133,233	)		(228,996	)
Class L:
Exchanged		29			20
Distributions Reinvested		—			10
Redeemed		(78	)		(79	)
Class C:
Subscribed		1,038			23,890
Distributions Reinvested		—			2,107
Redeemed		(14,763	)		(16,273	)
Class R6:*
Subscribed		126,982			73,335
Distributions Reinvested		—			2,776
Redeemed		(32,774	)		(33,009	)
Class IR:
Subscribed		60,000			—
Distributions Reinvested		—			2,945
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(791,730	)		426,119
Redemption Fees		81			121
Total Increase (Decrease) in Net Assets		(2,563,134	)		55,567
Net Assets:
Beginning of Period		4,233,451			4,177,884
End of Period	$	1,670,317		$	4,233,451

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

International Opportunity Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		12,106			33,926
Shares Issued on Distributions Reinvested		—			1,820
Shares Redeemed		(43,001	)		(27,751	)
Net Increase (Decrease) in Class I Shares Outstanding		(30,895	)		7,995
Class A:
Shares Subscribed		987			5,388
Shares Issued on Distributions Reinvested		—			384
Shares Redeemed		(4,852	)		(5,604	)
Net Increase (Decrease) in Class A Shares Outstanding		(3,865	)		168
Class L:
Shares Exchanged		2			1
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(4	)		(2	)
Net Decrease in Class L Shares Outstanding		(2	)		(1	)
Class C:
Shares Subscribed		40			597
Shares Issued on Distributions Reinvested		—			62
Shares Redeemed		(602	)		(423	)
Net Increase (Decrease) in Class C Shares Outstanding		(562	)		236
Class R6:*
Shares Subscribed		4,195			1,686
Shares Issued on Distributions Reinvested		—			74
Shares Redeemed		(1,424	)		(776	)
Net Increase in Class R6 Shares Outstanding		2,771			984
Class IR:
Shares Subscribed		1,851			—
Shares Issued on Distributions Reinvested		—			79
Net Increase in Class IR Shares Outstanding		1,851			79

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

International Opportunity Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	38.44		$	41.46		$	26.73		$	19.77		$	22.52		$	14.93
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.03	)		(0.30	)		(0.22	)		(0.04	)		(0.04	)		(0.08	)
Net Realized and Unrealized Gain (Loss)		(17.42	)		(1.90	)		15.05			7.00			(2.66	)		8.04
Total from Investment Operations		(17.45	)		(2.20	)		14.83			6.96			(2.70	)		7.96
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.82	)		(0.10	)		—			(0.05	)		(0.37	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	20.99		$	38.44		$	41.46		$	26.73		$	19.77		$	22.52
Total Return⁽⁴⁾		(45.40	)%⁽⁷⁾		(5.24	)%		55.49	%		35.20	%		(12.04	)%		53.38	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,115,400		$	3,229,961		$	3,152,320		$	1,284,678		$	649,580		$	358,141
Ratio of Expenses Before Expense Limitation		1.09	%⁽⁸⁾		0.99	%		0.98	%		1.03	%		1.04	%		1.10	%
Ratio of Expenses After Expense Limitation		1.00	%⁽⁵⁾⁽⁸⁾		0.99	%⁽⁵⁾		0.97	%⁽⁵⁾		0.99	%⁽⁵⁾		0.99	%⁽⁵⁾		0.98	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.99	%⁽⁵⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(0.20	)%⁽⁵⁾⁽⁸⁾		(0.70	)%⁽⁵⁾		(0.70	)%⁽⁵⁾		(0.15	)%⁽⁵⁾		(0.19	)%⁽⁵⁾		(0.42	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.02	%
Portfolio Turnover Rate		14	%⁽⁷⁾		36	%		25	%		20	%		36	%		30	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

International Opportunity Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	37.49		$	40.57		$	26.23		$	19.46		$	22.25		$	14.79
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.07	)		(0.41	)		(0.30	)		(0.10	)		(0.11	)		(0.15	)
Net Realized and Unrealized Gain (Loss)		(16.98	)		(1.85	)		14.74			6.87			(2.63	)		7.98
Total from Investment Operations		(17.05	)		(2.26	)		14.44			6.77			(2.74	)		7.83
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.82	)		(0.10	)		—			(0.05	)		(0.37	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	20.44		$	37.49		$	40.57		$	26.23		$	19.46		$	22.25
Total Return⁽⁴⁾		(45.48	)%⁽⁷⁾		(5.50	)%		55.06	%		34.79	%		(12.36	)%		53.01	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	268,930		$	638,203		$	683,897		$	336,109		$	223,098		$	186,988
Ratio of Expenses Before Expense Limitation		1.36	%⁽⁸⁾		1.28	%		1.26	%		1.30	%		1.34	%		1.36	%
Ratio of Expenses After Expense Limitation		1.35	%⁽⁵⁾⁽⁸⁾		1.28	%⁽⁵⁾		1.25	%⁽⁵⁾		1.29	%⁽⁵⁾		1.33	%⁽⁵⁾		1.27	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.28	%⁽⁵⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(0.54	)%⁽⁵⁾⁽⁸⁾		(0.99	)%⁽⁵⁾		(0.96	)%⁽⁵⁾		(0.44	)%⁽⁵⁾		(0.51	)%⁽⁵⁾		(0.74	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.02	%
Portfolio Turnover Rate		14	%⁽⁷⁾		36	%		25	%		20	%		36	%		30	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

International Opportunity Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	35.60		$	38.79		$	25.23		$	18.82		$	21.63		$	14.47
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.13	)		(0.62	)		(0.44	)		(0.23	)		(0.22	)		(0.22	)
Net Realized and Unrealized Gain (Loss)		(16.11	)		(1.75	)		14.10			6.64			(2.54	)		7.75
Total from Investment Operations		(16.24	)		(2.37	)		13.66			6.41			(2.76	)		7.53
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.82	)		(0.10	)		—			(0.05	)		(0.37	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	19.36		$	35.60		$	38.79		$	25.23		$	18.82		$	21.63
Total Return⁽⁴⁾		(45.62	)%⁽⁷⁾		(6.04	)%		54.15	%		34.06	%		(12.81	)%		52.11	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	199		$	448		$	533		$	512		$	382		$	364
Ratio of Expenses Before Expense Limitation		2.40	%⁽⁸⁾		2.15	%		2.14	%		2.19	%		2.28	%		2.51	%
Ratio of Expenses After Expense Limitation		1.85	%⁽⁵⁾⁽⁸⁾		1.85	%⁽⁵⁾		1.84	%⁽⁵⁾		1.84	%⁽⁵⁾		1.84	%⁽⁵⁾		1.84	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.85	%⁽⁵⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(1.02	)%⁽⁵⁾⁽⁸⁾		(1.56	)%⁽⁵⁾		(1.54	)%⁽⁵⁾		(0.99	)%⁽⁵⁾		(1.02	)%⁽⁵⁾		(1.16	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		14	%⁽⁷⁾		36	%		25	%		20	%		36	%		30	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

International Opportunity Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	35.08		$	38.29		$	24.94		$	18.63		$	21.46		$	14.39
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.16	)		(0.66	)		(0.48	)		(0.26	)		(0.27	)		(0.29	)
Net Realized and Unrealized Gain (Loss)		(15.86	)		(1.73	)		13.93			6.57			(2.51	)		7.73
Total from Investment Operations		(16.02	)		(2.39	)		13.45			6.31			(2.78	)		7.44
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.82	)		(0.10	)		—			(0.05	)		(0.37	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	19.06		$	35.08		$	38.29		$	24.94		$	18.63		$	21.46
Total Return⁽⁴⁾		(45.67	)%⁽⁷⁾		(6.17	)%		53.94	%		33.87	%		(13.00	)%		51.77	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	39,009		$	91,503		$	90,845		$	53,257		$	35,297		$	23,334
Ratio of Expenses Before Expense Limitation		2.05	%⁽⁸⁾		1.98	%		1.98	%		2.03	%		2.06	%		2.10	%
Ratio of Expenses After Expense Limitation		2.05	%⁽⁵⁾⁽⁸⁾		1.98	%⁽⁵⁾		1.97	%⁽⁵⁾		2.02	%⁽⁵⁾		2.04	%⁽⁵⁾		2.01	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.98	%⁽⁵⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(1.24	)%⁽⁵⁾⁽⁸⁾		(1.69	)%⁽⁵⁾		(1.68	)%⁽⁵⁾		(1.17	)%⁽⁵⁾		(1.24	)%⁽⁵⁾		(1.45	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.02	%
Portfolio Turnover Rate		14	%⁽⁷⁾		36	%		25	%		20	%		36	%		30	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

International Opportunity Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽²⁾			2019⁽²⁾			2018⁽²⁾			2017⁽²⁾
Net Asset Value, Beginning of Period	$	38.58		$	41.56		$	26.77		$	19.79		$	22.54		$	14.94
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.01	)		(0.25	)		(0.18	)		(0.02	)		0.02			(0.12	)
Net Realized and Unrealized Gain (Loss)		(17.49	)		(1.91	)		15.07			7.00			(2.72	)		8.09
Total from Investment Operations		(17.50	)		(2.16	)		14.89			6.98			(2.70	)		7.97
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.82	)		(0.10	)		—			(0.05	)		(0.37	)
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	21.08		$	38.58		$	41.56		$	26.77		$	19.79		$	22.54
Total Return⁽⁵⁾		(45.36	)%⁽⁸⁾		(5.13	)%		55.63	%		35.27	%		(12.03	)%		53.41	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	130,390		$	131,721		$	101,008		$	50,083		$	14,016		$	57,629
Ratio of Expenses Before Expense Limitation		0.93	%⁽⁹⁾		0.90	%		0.90	%		0.98	%		0.95	%		1.03	%
Ratio of Expenses After Expense Limitation		0.91	%⁽⁶⁾⁽⁹⁾		0.88	%⁽⁶⁾		0.88	%⁽⁶⁾		0.91	%⁽⁶⁾		0.92	%⁽⁶⁾		0.92	%⁽⁶⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.88	%⁽⁶⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		(0.05	)%⁽⁶⁾⁽⁹⁾		(0.59	)%⁽⁶⁾		(0.59	)%⁽⁶⁾		(0.07	)%⁽⁶⁾		0.09	%⁽⁶⁾		(0.56	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.01	%		0.02	%		0.02	%
Portfolio Turnover Rate		14	%⁽⁸⁾		36	%		25	%		20	%		36	%		30	%

(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) Amount is less than $0.005 per share.

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

(6) The 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 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%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

International Opportunity Portfolio

	Class IR
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 15, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	38.60		$	41.58		$	26.78		$	19.79		$	25.37
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.00	)⁽⁴⁾		(0.25	)		(0.19	)		(0.02	)		(0.06	)
Net Realized and Unrealized Gain Gain (Loss)		(17.51	)		(1.91	)		15.09			7.01			(5.47	)
Total from Investment Operations		(17.51	)		(2.16	)		14.90			6.99			(5.53	)
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.82	)		(0.10	)		—			(0.05	)
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	21.09		$	38.60		$	41.58		$	26.78		$	19.79
Total Return⁽⁵⁾		(45.36	)%⁽⁸⁾		(5.13	)%		55.64	%		35.32	%		(21.84	)%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	116,389		$	141,615		$	149,281		$	110,401		$	81,592
Ratio of Expenses Before Expense Limitation		0.91	%⁽⁹⁾		0.88	%		0.89	%		0.93	%		0.95	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.91	%⁽⁶⁾⁽⁹⁾		0.88	%⁽⁶⁾		0.88	%⁽⁶⁾		0.91	%⁽⁶⁾		0.93	%⁽⁶⁾⁽⁹⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			0.88	%⁽⁶⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(0.03	)%⁽⁶⁾⁽⁹⁾		(0.59	)%⁽⁶⁾		(0.60	)%⁽⁶⁾		(0.07	)%⁽⁶⁾		(0.46	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.01	%		0.01	%⁽⁹⁾
Portfolio Turnover Rate		14	%⁽⁸⁾		36	%		25	%		20	%		36	%

(1) Not consolidated.

(2) Commencement of Offering.

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

(4) Amount is less than $0.005 per share.

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the International Opportunity Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers six classes of shares — Class I, Class A, Class L, Class C, Class R6 and Class IR. On April 30, 2015 the Fund suspended offering of Class L shares. Existing Class L shareholders may invest 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. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, International Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary

represented approximately $14,661,000 or approximately 0.88% of the total net assets of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

prices obtained from one or more reputable brokers or dealers; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, 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 established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close

of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Air Freight & Logistics	$	—	$	112,036	$	—	$	112,036
Banks		101,748		154,709		—		256,457
Beverages		—		10,768		—		10,768
Biotechnology		—		21,268		—		21,268

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)
Electronic Equipment, Instruments & Components	$	—	$	47,154	$	—	$	47,154
Entertainment		66,442		6,470		—		72,912
Food & Staples Retailing		—		55,121		—		55,121
Food Products		—		22,494		—		22,494
Hotels, Restaurants & Leisure		47,323		49,369		—		96,692
Information Technology Services		91,780		55,202		—		146,982
Interactive Media & Services		—		109,027		—		109,027
Internet & Direct Marketing Retail		166,569		104,622		—		271,191
Machinery		—		15,444		—		15,444
Multi-Line Retail		12,656		—		—		12,656
Road & Rail		32,884		—		—		32,884
Semiconductors & Semiconductor Equipment		—		87,590		—		87,590
Textiles, Apparel & Luxury Goods		37,357		223,366		—		260,723
Total Common Stocks		556,759		1,074,640		—		1,631,399
Investment Company		12,361		—		—		12,361
Call Options Purchased		—		24		—		24
Short-Term Investments
Investment Company		16,349		—		—		16,349
Repurchase Agreements		—		97		—		97
Total Short-Term Investments		16,349		97		—		16,446
Total Assets	$	585,469	$	1,074,761	$	—	$	1,660,230

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

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

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 expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
of Assets and Liabilities
Location

Primary Risk
Exposure

Consolidated Statement
Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(1,923	)(b)

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At June 30, 2022, 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(c) (000)			Liabilities(c) (000)
Purchased Options	$	24	(a)	$	—

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

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

counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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(d) (000)			Net Amount (not less than $0) (000)
JP Morgan Chase Bank NA	$	24	$	—	$	(24	)	$	0

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

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					1,554,028,000

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 June 30, 2022:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	33,813	(e)	$	—	$	(33,813	)(f)(g)	$	0

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

(f) The Fund received cash collateral of approximately $546,000, of which approximately $518,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $28,000, which is not reflected in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $36,202,000 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.

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

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 June 30, 2022:

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	$	546	$	—	$	—	$	—	$	546
Total Borrowings	$	546	$	—	$	—	$	—	$	546
Gross amount of recognized liabilities for securities lending transactions									$	546

7. Redemption Fees: The Fund will assess a 2% redemption fee, on Class I shares, Class A shares, Class L shares, Class C shares, Class R6 shares and Class IR shares which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

doubt) net of applicable withholding taxes. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.80	%			0.75	%

For the six months ended June 30, 2022, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.77% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 1.85% for Class L shares, 2.10% for Class C shares, 0.94% for Class R6 shares and 0.94% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $860,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser provides investment advisory services to the Subsidiary pursuant to the Subsidiary Investment Management Agreement (the "Agreement"). Under the Agreement, the

Subsidiary will pay the Adviser at the end of each fiscal quarter, calculated by applying a quarterly rate, based on the annual rate of 0.05%, to the average daily net assets of the Subsidiary.

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

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $377,065,000 and $1,089,259,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $25,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	147,997			$	621,679			$	753,327			$	46

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	16,349

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	90,772	$	—	$	9,935

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	37,783			$	(37,783	)

At December 31, 2021, 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)
$	—			$	105,904

K. Market Risk and Risks Relating to Certain Financial Instruments:

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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 below its peer group average for the one-year period but better than 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 actual management fee and total expense ratio were higher than but close to its peer group averages and contractual management fee was lower than its peer group average. 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management Company
23 Church Street
16-01 Capital Square, Singapore 049481

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIIIOSAN
4877800 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Multi-Asset Real Return Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					9
Consolidated Statement of Operations					11
Consolidated Statements of Changes in Net Assets					12
Consolidated Financial Highlights					13
Notes to Consolidated Financial Statements					17
Investment Advisory Agreement Approval					29
Liquidity Risk Management Program					31
U.S. Customer Privacy Notice					32
Director and Officer Information					35

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Multi-Asset Real Return Portfolio (the "Fund") performed during the latest six-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Multi-Asset Real Return Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Multi-Asset Real Return Portfolio Class I	$	1,000.00	$	953.30	$	1,021.03	$	3.68	$	3.81		0.76	%
Multi-Asset Real Return Portfolio Class A		1,000.00		951.60		1,019.54		5.13		5.31		1.06
Multi-Asset Real Return Portfolio Class C		1,000.00		947.70		1,015.57		8.98		9.30		1.86
Multi-Asset Real Return Portfolio Class R6⁽¹⁾		1,000.00		953.30		1,021.22		3.49		3.61		0.72

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Multi-Asset Real Return Portfolio

	Shares		Value (000)
Common Stocks (15.9%)
Australia (0.7%)
Evolution Mining Ltd.		20,806	$	34
Gold Road Resources Ltd.		10,780		9
Newcrest Mining Ltd.		8,851		126
Newcrest Mining Ltd. (a)		944		13
Northern Star Resources Ltd.		13,276		62
Perseus Mining Ltd.		14,099		15
Ramelius Resources Ltd.		10,559		6
Regis Resources Ltd.		9,906		9
Resolute Mining Ltd. (b)		15,939		3
Silver Lake Resources Ltd. (b)		10,313		9
St. Barbara Ltd.		9,862		5
Westgold Resources Ltd.		4,937		4
				295
Austria (0.0%) (c)
OMV AG		352		16
Canada (3.6%)
Agnico-Eagle Mines Ltd. (NYSE)		2,569		118
Agnico Eagle Mines Ltd. (TSX)		2,607		119
Alamos Gold, Inc., Class A		4,888		34
Argonaut Gold, Inc. (a)(b)		4,144		1
B2Gold Corp.		13,047		44
Barrick Gold Corp.		18,280		323
Centerra Gold, Inc.		3,452		23
Dundee Precious Metals, Inc.		2,450		12
Eldorado Gold Corp. (b)		2,133		14
Endeavour Silver Corp. (b)		1,873		6
Equinox Gold Corp. (b)		3,303		15
First Majestic Silver Corp.		3,041		22
Fortuna Silver Mines, Inc. (a)(b)		2,195		6
Franco-Nevada Corp.		2,070		272
GoGold Resources, Inc. (b)		3,629		6
IAMGOLD Corp. (a)(b)		5,746		9
K92 Mining, Inc. (b)		2,565		15
Kinross Gold Corp.		18,331		66
New Gold, Inc. (b)		10,055		11
OceanaGold Corp. (b)		7,584		15
Osisko Gold Royalties Ltd.		2,053		21
Pan American Silver Corp.		2,533		50
Sandstorm Gold Ltd.		2,239		13
Silvercorp Metals, Inc.		2,106		5
SSR Mining, Inc.		2,439		41
Torex Gold Resources, Inc. (b)		971		8
Victoria Gold Corp. (b)		717		6
Wesdome Gold Mines Ltd. (b)		1,576		14
Wheaton Precious Metals Corp.		4,773		172
Yamana Gold, Inc.		11,023		51
				1,512
China (0.3%)
Zhaojin Mining Industry Co., Ltd. H Shares (b)(d)		33,863		29
Zijin Mining Group Co., Ltd. H Shares (d)		73,765		90
				119

	Shares		Value (000)
Finland (0.1%)
Neste Oyj		993	$	44
France (0.7%)
TotalEnergies SE		5,904		311
Italy (0.2%)
Eni SpA		5,999		71
Tenaris SA		1,100		14
				85
Norway (0.3%)
Aker BP ASA		932		35
Equinor ASA		2,307		80
				115
Peru (0.0%) (c)
Cia de Minas Buenaventura SAA ADR		2,945		19
Portugal (0.0%) (c)
Galp Energia SGPS SA		1,162		14
South Africa (0.4%)
AngloGold Ashanti Ltd. ADR		4,586		68
DRDGOLD Ltd. ADR		1,024		6
Gold Fields Ltd. ADR		9,391		85
Harmony Gold Mining Co., Ltd. ADR (a)		6,633		21
				180
Spain (0.1%)
Repsol SA (a)		3,508		52
Sweden (0.1%)
Lundin Energy AB (a)		665		26
United Kingdom (1.8%)
BP PLC		46,725		219
Centamin PLC		13,459		13
Endeavour Mining PLC		2,989		62
Shell PLC		18,306		477
				771
United States (7.6%)
Acadia Realty Trust REIT		117		2
Agree Realty Corp. REIT		98		7
Alexander & Baldwin, Inc. REIT		98		2
Alexander's, Inc. REIT		3		1
Alexandria Real Estate Equities, Inc. REIT		202		29
American Assets Trust, Inc. REIT		70		2
American Campus Communities, Inc. REIT		215		14
American Homes 4 Rent, Class A REIT		443		16
Americold Realty Trust, Inc., REIT		373		11
Apartment Income Corp. REIT		232		10
Apartment Investment and Management Co., Class A REIT (b)		202		1
Apple Hospitality, Inc. REIT		330		5
Armada Hoffler Properties, Inc. REIT		81		1
AvalonBay Communities, Inc. REIT		218		42
Baker Hughes Co.		643		19
Boston Properties, Inc. REIT		230		20
Brandywine Realty Trust REIT		266		3
Brixmor Property Group, Inc. REIT		463		9
Broadstone Net Lease, Inc. REIT		227		5

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Multi-Asset Real Return Portfolio

	Shares		Value (000)
United States (cont'd)
Camden Property Trust REIT		151	$	20
CareTrust, Inc. REIT		131		2
Centerspace REIT		17		1
Chatham Lodging Trust REIT (b)		64		1
Cheniere Energy, Inc.		185		25
Chevron Corp.		1,484		215
City Office, Inc. REIT		59		1
Coeur Mining, Inc. (b)		3,664		11
Community Healthcare Trust, Inc. REIT		31		1
ConocoPhillips		1,023		92
Corporate Office Properties Trust REIT		175		5
Coterra Energy, Inc.		603		16
Cousins Properties, Inc. REIT		232		7
CubeSmart REIT		304		13
Devon Energy Corp.		499		27
Diamondback Energy, Inc.		134		16
DiamondRock Hospitality Co. REIT (b)		327		3
Digital Realty Trust, Inc. REIT		436		57
DigitalBridge Group, Inc. REIT (b)		753		4
Diversified Healthcare Trust REIT		324		1
Douglas Emmett, Inc. REIT		273		6
Duke Realty Corp. REIT		582		32
Easterly Government Properties, Inc. REIT		112		2
EastGroup Properties, Inc. REIT		63		10
Empire State Realty Trust, Inc., Class A REIT		196		1
EOG Resources, Inc.		454		50
EPR Properties REIT		117		5
Equinix, Inc. REIT		138		91
Equity Commonwealth REIT (b)		190		5
Equity Lifestyle Properties, Inc. REIT		269		19
Equity Residential REIT		552		40
Essential Properties Realty Trust, Inc. REIT		166		4
Essex Property Trust, Inc. REIT		101		26
Extra Space Storage, Inc. REIT		205		35
Exxon Mobil Corp.		3,261		279
Federal Realty OP LP REIT		108		10
First Industrial Realty Trust, Inc. REIT		202		10
Four Corners Property Trust, Inc. REIT		118		3
Franklin Street Properties Corp., Class C REIT		138		1
Gaming and Leisure Properties, Inc. REIT		344		16
GEO Group, Inc. REIT (a)(b)		165		1
Getty Realty Corp. REIT		50		1
Gladstone Commercial Corp. REIT		48		1
Global Medical, Inc. REIT		76		1
Global Net Lease, Inc. REIT		121		2
Halliburton Co.		702		22
Healthcare Realty Trust, Inc. REIT		218		6
Healthcare Trust of America, Inc., Class A REIT		341		9
Healthpeak Properties, Inc. REIT		840		22
Hecla Mining Co.		5,917		23
Hess Corp.		217		23
Highwoods Properties, Inc. REIT		162		6
Host Hotels & Resorts, Inc. REIT		1,098		17
Hudson Pacific Properties, Inc. REIT		235		3

	Shares		Value (000)
Independence Realty Trust, Inc. REIT		159	$	3
Industrial Logistics Properties Trust REIT		88		1
Innovative Industrial Properties, Inc. REIT		37		4
Invitation Homes, Inc. REIT		884		31
Iron Mountain, Inc. REIT		450		22
iStar, Inc. REIT		100		1
JBG SMITH Properties REIT		184		4
Kilroy Realty Corp. REIT		162		8
Kimco Realty Corp. REIT		907		18
Kinder Morgan, Inc.		1,566		26
Kite Realty Group Trust REIT		339		6
Life Storage, Inc. REIT		118		13
LTC Properties, Inc. REIT		53		2
LXP Industrial Trust REIT		433		5
Macerich Co. REIT		229		2
Marathon Petroleum Corp.		480		39
Medical Properties Trust, Inc. REIT		900		14
Mid-America Apartment Communities, Inc. REIT		179		31
National Health Investors, Inc. REIT		66		4
National Retail Properties, Inc. REIT		273		12
National Storage Affiliates Trust REIT		130		6
Necessity Retail, Inc. REIT		148		1
NETSTREIT Corp. REIT		53		1
Newmont Corp.		8,547		510
NexPoint Residential Trust, Inc. REIT		31		2
Occidental Petroleum Corp.		735		43
Office Properties Income Trust REIT		66		1
Omega Healthcare Investors, Inc. REIT		361		10
One Liberty Properties, Inc. REIT		21		1
ONEOK, Inc.		343		19
Orion Office, Inc. REIT		72		1
Paramount Group, Inc. REIT		238		2
Park Hotels & Resorts, Inc. REIT		368		5
Pebblebrook Hotel Trust REIT		205		3
Phillips 66		374		31
Physicians Realty Trust REIT		326		6
Piedmont Office Realty Trust, Inc., Class A REIT		193		3
Pioneer Natural Resources Co.		180		40
ProLogis, Inc. REIT		1,152		136
PS Business Parks, Inc. REIT		32		6
Public Storage REIT		244		76
Realty Income Corp. REIT		835		57
Regency Centers Corp. REIT		238		14
Retail Opportunity Investments Corp. REIT		184		3
Rexford Industrial Realty, Inc. REIT		205		12
RLJ Lodging Trust REIT		257		3
Royal Gold, Inc.		723		77
RPT Realty REIT		110		1
Ryman Hospitality Properties, Inc. REIT (b)		83		6
Sabra Health Care, Inc. REIT		329		5
Safehold, Inc. REIT		21		1
Saul Centers, Inc. REIT		19		1
Schlumberger NV		1,104		39
Seritage Growth Properties, Class A REIT (b)		46		—	@
Service Properties Trust REIT		224		1

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Multi-Asset Real Return Portfolio

	Shares		Value (000)
United States (cont'd)
Simon Property Group, Inc. REIT		511	$	48
SITE Centers Corp. REIT		242		3
SL Green Realty Corp. REIT (a)		108		5
Spirit Realty Capital, Inc. REIT		179		7
STAG Industrial, Inc. REIT		247		8
STORE Capital Corp. REIT		368		10
Summit Hotel Properties, Inc. REIT (b)		143		1
Sun Communities, Inc. REIT		168		27
Sunstone Hotel Investors, Inc. REIT (b)		336		3
Tanger Factory Outlet Centers, Inc. REIT		128		2
Terreno Realty Corp. REIT		108		6
UDR, Inc. REIT		463		21
UMH Properties, Inc. REIT		56		1
Universal Health Realty Income Trust REIT		19		1
Urban Edge Properties REIT		182		3
Urstadt Biddle Properties, Inc., Class A REIT		41		1
Valero Energy Corp.		319		34
Ventas, Inc. REIT		584		30
Veris Residential, Inc. REIT (b)		98		1
VICI Properties, Inc. REIT		1,155		34
Vornado Realty Trust REIT		254		7
Washington Real Estate Investment Trust REIT		133		3
Welltower, Inc. REIT		649		53
Williams Cos., Inc.		928		29
WP Carey, Inc. REIT		273		23
Xenia Hotels & Resorts, Inc. REIT (b)		177		3
				3,232
Total Common Stocks (Cost $7,795)				6,791
	Face Amount (000)
Sovereign (2.8%)
Canada (2.8%)
Canadian Government Real Return Bond, 3.00%, 12/1/36 (Cost $1,227)	CAD	1,238		1,176
U.S. Treasury Securities (66.9%)
United States (66.9%)
U.S. Treasury Inflation Indexed Bonds,
0.13%, 7/15/24 - 1/15/32	$	21,713		20,847
0.25%, 1/15/25		1,270		1,278
0.38%, 7/15/23		1,266		1,288
0.50%, 4/15/24		1,262		1,280
0.63%, 4/15/23 - 1/15/24		2,510		2,553
2.38%, 1/15/25		1,169		1,239
Total U.S. Treasury Securities (Cost $28,776)				28,485
	Shares
Short-Term Investments (12.2%)
Securities held as Collateral on Loaned Securities (0.1%)
Investment Company (0.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G)		20,324		20

	Face Amount (000)		Value (000)
Repurchase Agreements (0.0%) (c)
HSBC Securities USA, Inc. (1.50%, dated 6/30/22, due 7/1/22; proceeds $2; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 2/15/23 - 5/15/32; valued at $2)	$	1,588	$	2
Merrill Lynch & Co., Inc. (1.46%, dated 6/30/22, due 7/1/22; proceeds $3; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $3)		3,074		3
				5
Total Securities held as Collateral on Loaned Securities (Cost $25)				25
	Shares
Investment Company (12.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G) (Cost $5,141)		5,141,472		5,141
Total Short-Term Investments (Cost $5,166)				5,166
Total Investments (97.8%) (Cost $42,964) Including $98 of Securities Loaned (e)(f)(g)				41,618
Other Assets in Excess of Liabilities (2.2%)				951
Net Assets (100.0%)			$	42,569

(a) All or a portion of this security was on loan at June 30, 2022.

(b) Non-income producing security.

(d) Security trades on the Hong Kong exchange.

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

(f) The approximate fair value and percentage of net assets, $1,773,000 and 4.2%, 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 the Consolidated Financial Statements.

(g) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $618,000 and the aggregate gross unrealized depreciation is approximately $1,812,000, resulting in net unrealized depreciation of approximately $1,194,000.

@ Value is less than $500.

ADR American Depositary Receipt.

NYSE New York Stock Exchange.

REIT Real Estate Investment Trust.

TSX Toronto Stock Exchange.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Multi-Asset Real Return Portfolio

Foreign Currency Forward Exchange Contracts:

The Fund had the following foreign currency forward exchange contracts open at June 30, 2022:

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Delivery Date	Unrealized Appreciation (Depreciation) (000)
BNP Paribas SA	EUR	36	$	38	9/15/22	$	(—	@)
BNP Paribas SA	GBP	5	$	6	9/15/22		(—	@)
BNP Paribas SA	JPY	4,571	$	34	9/15/22		—	@
Citibank NA	GBP	26	$	32	9/15/22		(—	@)
Goldman Sachs International	$	536	CHF	511	9/15/22		2
Goldman Sachs International	$	69	EUR	65	9/15/22		(1	)
JPMorgan Chase Bank NA	CHF	31	$	31	9/15/22		(1	)
JPMorgan Chase Bank NA	$	1,081	CHF	1,033	9/15/22		6
JPMorgan Chase Bank NA	$	1,080	EUR	1,015	9/15/22		(11	)
JPMorgan Chase Bank NA	$	533	EUR	503	9/15/22		(3	)
JPMorgan Chase Bank NA	$	1,077	GBP	877	9/15/22		(9	)
JPMorgan Chase Bank NA	$	534	GBP	435	9/15/22		(5	)
JPMorgan Chase Bank NA	$	1,078	JPY	145,926	9/15/22		3
JPMorgan Chase Bank NA	$	541	JPY	72,363	9/15/22		(5	)
						$	(24	)

Futures Contracts:

The Fund had the following futures contracts open at June 30, 2022:

	Number of Contracts		Expiration Date	Notional Amount (000)			Value (000)			Unrealized Appreciation (Depreciation) (000)
Long:
GOLD 100 OZ (United States)		7	Aug-22	$	1		$	1,265		$	(41	)
ICE Brent Crude Oil Index (United States)		10	Dec-23		10			888			(17	)
Short:
Euro Stoxx 50 Index (Germany)		36	Sep-22	EUR	(—	@)		(1,239	)		13
S&P 500 E Mini Index (United States)		11	Sep-22	$	(1	)		(2,084	)		(20	)
										$	(65	)

Interest Rate Swap Agreements:

The Fund had the following interest rate swap agreements open at June 30, 2022:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Payment Frequency Paid/Received	Maturity Date	Notional Amount (000)		Value (000)			Upfront Payment Paid (000)		Unrealized Appreciation (Depreciation) (000)
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Receive		2.54	%	Semi-Annual/ Quarterly	9/2/31	$	6,486	$	335		$	—	$	335
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Receive		2.68		Semi-Annual/ Quarterly	12/15/31		4,713		139			—		139
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Pay		2.91		Semi-Annual/ Quarterly	12/15/26		4,713		(158	)		—		(158	)
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Receive		2.66		Semi-Annual/ Quarterly	2/16/32		3,500		67			—		67
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Pay		2.91		Semi-Annual/ Quarterly	2/16/27		3,505		(73	)		—		(73	)
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Receive		2.92		Semi-Annual/ Quarterly	3/3/32		7,995		(64	)		—		(64	)
Morgan Stanley & Co. LLC*	US CPI All Urban Consumers Index	Pay		3.28		Semi-Annual/ Quarterly	3/3/27		7,995		(5	)		—		(5	)
										$	241		$	—	$	241

@ Value is less than $500.

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Multi-Asset Real Return Portfolio

ICE Intercontinental Exchange.

CHF — Swiss Franc

EUR — Euro

GBP — British Pound

JPY — Japanese Yen

Portfolio Composition*

Classification	Percentage of Total Investments
U.S. Treasury Securities		68.4	%
Short-Term Investments		12.4
Metals & Mining		6.8
Other**		6.8
Oil, Gas & Consumable Fuels		5.6
Total Investments		100.0	%***

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

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

*** Does not include foreign currency forward exchange contracts with net unrealized depreciation of approximately $24,000, open long/short futures contracts with a value of approximately $5,476,000 and net unrealized depreciation of approximately $65,000. Also does not include open swap agreements with net unrealized appreciation of approximately $241,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Multi-Asset Real Return Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $37,803)	$	36,457
Investment in Security of Affiliated Issuer, at Value (Cost $5,161)		5,161
Total Investments in Securities, at Value (Cost $42,964)		41,618
Cash		2,442
Foreign Currency, at Value (Cost $65)		64
Cash from Securities Lending		1
Due from Broker		730
Receivable for Investments Sold		506
Receivable for Variation Margin on Futures Contracts		378
Interest Receivable		41
Receivable for Fund Shares Sold		26
Dividends Receivable		13
Due from Adviser		12
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		11
Receivable from Affiliate		7
Tax Reclaim Receivable		4
Receivable from Securities Lending Income		—	@
Other Assets		77
Total Assets		45,930
Liabilities:
Payable for Investments Purchased		3,062
Due to Broker		102
Payable for Custodian Fees		39
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		35
Payable for Offering Costs		30
Collateral on Securities Loaned, at Value		26
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class C		3
Payable for Administration Fees		3
Payable for Fund Shares Redeemed		2
Deferred Capital Gain Country Tax		2
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		—	@
Payable for Sub Transfer Agency Fees — Class I		1
Payable for Sub Transfer Agency Fees — Class C		—	@
Other Liabilities		53
Total Liabilities		3,361
Net Assets	$	42,569
Net Assets Consist of:
Paid-in-Capital	$	43,271
Total Accumulated Loss		(702	)
Net Assets	$	42,569

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Multi-Asset Real Return Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	32,443
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,114,133
Net Asset Value, Offering and Redemption Price Per Share	$	10.42
CLASS A:
Net Assets	$	5,702
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		547,348
Net Asset Value, Redemption Price Per Share	$	10.42
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.58
Maximum Offering Price Per Share	$	11.00
CLASS C:
Net Assets	$	4,411
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		427,085
Net Asset Value, Offering and Redemption Price Per Share	$	10.33
CLASS R6:*
Net Assets	$	13
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,204
Net Asset Value, Offering and Redemption Price Per Share	$	10.42
⁽¹⁾ Including: Securities on Loan, at Value:	$	98

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Multi-Asset Real Return Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	556
Dividends from Securities of Unaffiliated Issuers (Net of $5 of Foreign Taxes Withheld)		158
Dividends from Security of Affiliated Issuer (Note G)		15
Total Investment Income		729
Expenses:
Advisory Fees (Note B)		112
Professional Fees		79
Custodian Fees (Note F)		29
Registration Fees		19
Administration Fees (Note C)		15
Shareholder Services Fees — Class A (Note D)		4
Distribution and Shareholder Services Fees — Class C (Note D)		11
Pricing Fees		8
Shareholder Reporting Fees		7
Sub Transfer Agency Fees — Class I		5
Sub Transfer Agency Fees — Class A		—	@
Sub Transfer Agency Fees — Class C		—	@
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Directors' Fees and Expenses		3
Other Expenses		8
Total Expenses		304
Waiver of Advisory Fees (Note B)		(111	)
Expenses Reimbursed by Adviser (Note B)		(29	)
Rebate from Morgan Stanley Affiliate (Note G)		(6	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Net Expenses		157
Net Investment Income		572
Realized Gain (Loss):
Investments Sold (Net of $2 of Capital Gain Country Tax)		(1,470	)
Foreign Currency Translation		(30	)
Futures Contracts		630
Swap Agreements		442
Net Realized Loss		(428	)
Change in Unrealized Appreciation (Depreciation):
Investments		(2,135	)
Foreign Currency Forward Exchange Contracts		(24	)
Foreign Currency Translation		(1	)
Futures Contracts		(154	)
Swap Agreements		(240	)
Net Change in Unrealized Appreciation (Depreciation)		(2,554	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(2,982	)
Net Decrease in Net Assets Resulting from Operations	$	(2,410	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Multi-Asset Real Return Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	572		$	455
Net Realized Gain (Loss)		(428	)		5,204
Net Change in Unrealized Appreciation (Depreciation)		(2,554	)		(587	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(2,410	)		5,072
Dividends and Distributions to Shareholders:
Class I		—			(4,078	)
Class A		—			(56	)
Class C		—			(133	)
Class R6*		—			(2	)
Total Dividends and Distributions to Shareholders		—			(4,269	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		5,322			8,662
Distributions Reinvested		—			4,078
Redeemed		(1,951	)		(677	)
Class A:
Subscribed		6,806			740
Distributions Reinvested		—			55
Redeemed		(1,475	)		(—	@)
Class C:
Subscribed		3,799			1,208
Distributions Reinvested		—			133
Redeemed		(80	)		(660	)
Class R6:*
Distributions Reinvested		—			2
Net Increase in Net Assets Resulting from Capital Share Transactions		12,421			13,541
Total Increase in Net Assets		10,011			14,344
Net Assets:
Beginning of Period		32,558			18,214
End of Period	$	42,569		$	32,558
(1) Capital Share Transactions:
Class I:
Shares Subscribed		476			767
Shares Issued on Distributions Reinvested		—			380
Shares Redeemed		(177	)		(60	)
Net Increase in Class I Shares Outstanding		299			1,087
Class A:
Shares Subscribed		604			66
Shares Issued on Distributions Reinvested		—			5
Shares Redeemed		(132	)		(—	@@)
Net Increase in Class A Shares Outstanding		472			71
Class C:
Shares Subscribed		348			108
Shares Issued on Distributions Reinvested		—			13
Shares Redeemed		(7	)		(55	)
Net Increase in Class C Shares Outstanding		341			66
Class R6:*
Shares Issued on Distributions Reinvested		—			—	@@

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Multi-Asset Real Return Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 18, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	10.93		$	10.38		$	10.51		$	9.06		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽³⁾		0.17			0.21			0.16			0.19			0.13
Net Realized and Unrealized Gain (Loss)		(0.68	)		2.04			(0.14	)		1.46			(0.79	)
Total from Investment Operations		(0.51	)		2.25			0.02			1.65			(0.66	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.26	)		(0.15	)		(0.20	)		(0.22	)
Net Realized Gain		—			(1.44	)		—			—			—
Paid-in-Capital		—			—			—			(0.00	)⁽⁴⁾		(0.06	)
Total Distributions		—			(1.70	)		(0.15	)		(0.20	)		(0.28	)
Net Asset Value, End of Period	$	10.42		$	10.93		$	10.38		$	10.51		$	9.06
Total Return⁽⁵⁾		(4.67	)%⁽⁷⁾		22.11	%		0.39	%		18.35	%		(6.70	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	32,443		$	30,776		$	17,942		$	10,728		$	9,033
Ratio of Expenses Before Expense Limitation		1.54	%⁽⁸⁾		2.76	%		2.93	%		3.82	%		4.76	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.76	%⁽⁶⁾⁽⁸⁾		0.79	%⁽⁶⁾		0.77	%⁽⁶⁾		0.76	%⁽⁶⁾		0.76	%⁽⁶⁾⁽⁸⁾
Ratio of Net Investment Income		3.04	%⁽⁶⁾⁽⁸⁾		1.80	%⁽⁶⁾		1.68	%⁽⁶⁾		1.88	%⁽⁶⁾		2.52	%⁽⁶⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.03	%⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		321	%⁽⁷⁾		232	%		68	%		65	%		26	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

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

(4) Amount is less than $0.005 per share.

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

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Multi-Asset Real Return Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 18, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	10.95		$	10.41		$	10.53		$	9.06		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽³⁾		0.21			0.29			0.11			0.15			0.11
Net Realized and Unrealized Gain (Loss)		(0.74	)		1.92			(0.12	)		1.47			(0.79	)
Total from Investment Operations		(0.53	)		2.21			(0.01	)		1.62			(0.68	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.23	)		(0.11	)		(0.15	)		(0.20	)
Net Realized Gain		—			(1.44	)		—			—			—
Paid-in-Capital		—			—			—			(0.00	)⁽⁴⁾		(0.06	)
Total Distributions		—			(1.67	)		(0.11	)		(0.15	)		(0.26	)
Net Asset Value, End of Period	$	10.42		$	10.95		$	10.41		$	10.53		$	9.06
Total Return⁽⁵⁾		(4.84	)%⁽⁷⁾		21.62	%		0.07	%		17.93	%		(6.90	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	5,702		$	826		$	43		$	42		$	9
Ratio of Expenses Before Expense Limitation		1.84	%⁽⁸⁾		4.14	%		10.61	%		7.63	%		22.79	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.06	%⁽⁶⁾⁽⁸⁾		1.14	%⁽⁶⁾		1.14	%⁽⁶⁾		1.14	%⁽⁶⁾		1.14	%⁽⁶⁾⁽⁸⁾
Ratio of Net Investment Income		3.77	%⁽⁶⁾⁽⁸⁾		2.48	%⁽⁶⁾		1.18	%⁽⁶⁾		1.46	%⁽⁶⁾		2.18	%⁽⁶⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.03	%⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		321	%⁽⁷⁾		232	%		68	%		65	%		26	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

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

(4) Amount is less than $0.005 per share.

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

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Multi-Asset Real Return Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 18, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	10.90		$	10.36		$	10.50		$	9.06		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽³⁾		0.13			0.08			0.05			0.07			0.07
Net Realized and Unrealized Gain (Loss)		(0.70	)		2.04			(0.14	)		1.48			(0.79	)
Total from Investment Operations		(0.57	)		2.12			(0.09	)		1.55			(0.72	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.14	)		(0.05	)		(0.11	)		(0.16	)
Net Realized Gain		—			(1.44	)		—			—			—
Paid-in-Capital		—			—			—			(0.00	)⁽⁴⁾		(0.06	)
Total Distributions		—			(1.58	)		(0.05	)		(0.11	)		(0.22	)
Net Asset Value, End of Period	$	10.33		$	10.90		$	10.36		$	10.50		$	9.06
Total Return⁽⁵⁾		(5.23	)%⁽⁷⁾		20.80	%		(0.81	)%		17.12	%		(7.27	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,411		$	943		$	218		$	172		$	9
Ratio of Expenses Before Expense Limitation		2.64	%⁽⁸⁾		4.04	%		5.10	%		8.50	%		23.55	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.86	%⁽⁶⁾⁽⁸⁾		1.89	%⁽⁶⁾		1.89	%⁽⁶⁾		1.89	%⁽⁶⁾		1.89	%⁽⁶⁾⁽⁸⁾
Ratio of Net Investment Income		2.33	%⁽⁶⁾⁽⁸⁾		0.69	%⁽⁶⁾		0.54	%⁽⁶⁾		0.68	%⁽⁶⁾		1.37	%⁽⁶⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.03	%⁽⁸⁾		0.01	%		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		321	%⁽⁷⁾		232	%		68	%		65	%		26	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

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

(4) Amount is less than $0.005 per share.

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

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Multi-Asset Real Return Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 18, 2018⁽³⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽²⁾			2019⁽²⁾			December 31, 2018⁽²⁾
Net Asset Value, Beginning of Period	$	10.93		$	10.38		$	10.51		$	9.06		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽⁴⁾		0.17			0.20			0.16			0.19			0.13
Net Realized and Unrealized Gain (Loss)		(0.68	)		2.05			(0.13	)		1.47			(0.79	)
Total from Investment Operations		(0.51	)		2.25			0.03			1.66			(0.66	)
Distributions from and/or in Excess of:
Net Investment Income		—			(0.26	)		(0.16	)		(0.21	)		(0.22	)
Net Realized Gain		—			(1.44	)		—			—			—
Paid-in-Capital		—			—			—			(0.00	)⁽⁵⁾		(0.06	)
Total Distributions		—			(1.70	)		(0.16	)		(0.21	)		(0.28	)
Net Asset Value, End of Period	$	10.42		$	10.93		$	10.38		$	10.51		$	9.06
Total Return⁽⁶⁾		(4.67	)%⁽⁸⁾		22.16	%		0.42	%		18.37	%		(6.69	)%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13		$	13		$	11		$	11		$	9
Ratio of Expenses Before Expense Limitation		16.48	%⁽⁹⁾		21.20	%		22.80	%		22.24	%		22.53	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.72	%⁽⁷⁾⁽⁹⁾		0.74	%⁽⁷⁾		0.74	%⁽⁷⁾		0.74	%⁽⁷⁾		0.74	%⁽⁷⁾⁽⁹⁾
Ratio of Net Investment Income		3.02	%⁽⁷⁾⁽⁹⁾		1.75	%⁽⁷⁾		1.62	%⁽⁷⁾		1.90	%⁽⁷⁾		2.53	%⁽⁷⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.03	%⁽⁹⁾		0.01	%		0.01	%		0.01	%		0.01	%⁽⁹⁾
Portfolio Turnover Rate		321	%⁽⁸⁾		232	%		68	%		65	%		26	%⁽⁸⁾

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

(3) Commencement of Operations.

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

(5) Amount is less than $0.005 per share.

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

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Multi-Asset Real Return Portfolio. The Fund seeks total return, targeted to be in excess of inflation, through capital appreciation and current income.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Multi-Asset Real Return 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 June 30, 2022, the Subsidiary represented approximately $1,944,000 or approximately 4.57% of the total 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Directors or quotes from a broker or dealer. Swaps cleared on a clearinghouse or exchange may be valued using the closing price provided by the clearinghouse or exchange. 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) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (6) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such

securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (7) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Commercial Services & Supplies	$	1		$	—		$	—	$	1
Energy Equipment & Services		80			40			—		120
Equity Real Estate Investment Trusts (REITs)		1,520			—			—		1,520
Metals & Mining		2,407			414			—		2,821
Oil, Gas & Consumable Fuels		1,004			1,319			—		2,323
Real Estate Management & Development		6			—			—		6
Total Common Stocks		5,018			1,773			—		6,791
Sovereign		—			1,176			—		1,176
U.S. Treasury Securities		—			28,485			—		28,485
Short-Term Investments
Investment Company		5,161			—			—		5,161
Repurchase Agreements		—			5			—		5
Total Short-Term Investments		5,161			5			—		5,166
Foreign Currency Forward Exchange Contracts		—			11			—		11
Futures Contracts		13			—			—		13
Interest Rate Swap Agreements		—			541			—		541
Total Assets		10,192			31,991			—		42,183
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(35	)		—		(35	)
Futures Contracts		(78	)		—			—		(78	)
Interest Rate Swap Agreements		—			(300	)		—		(300	)
Total Liabilities		(78	)		(335	)		—		(413	)
Total	$	10,114		$	31,656		$	—	$	41,770

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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

5. Treasury Inflation-Protected Securities: The Fund may invest in Treasury Inflation-Protected Securities ("TIPS"), including structured bonds in which the principal amount is adjusted daily to keep pace with inflation, as measured by the U.S. Consumer Pricing Index for Urban Consumers. The adjustments to principal due to inflation/deflation are reflected as increases/decreases to interest income with a corresponding adjustment to cost. Such adjustments may have a significant impact on the Fund's distributions and may result in a return of capital to shareholders. The repayment of the original bond

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

principal upon maturity is guaranteed by the full faith and credit of the U.S. Government.

6. Derivatives: The Fund may, but is not required to, use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. Derivatives are financial instruments whose value is based, in part, on the value of an underlying asset, interest rate, index or financial instrument. Prevailing interest rates and volatility levels, among other things, also affect the value of derivative instruments. A derivative instrument often has risks similar to its underlying asset and may have additional risks, including imperfect correlation between the value of the derivative and the underlying asset, risks of default by the counterparty to certain transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Fund's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

Certain derivative transactions may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss. Leverage associated with derivative transactions may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet earmarking or segregation requirements, pursuant to applicable Securities and Exchange Commission rules and regulations, or may cause the Fund to be more volatile than if the Fund had not been leveraged. Although the Adviser seeks to use derivatives to further the Fund's investment objectives, there is no assurance that the use of derivatives will achieve this result.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

Swaps: The Fund may enter into OTC swap contracts or cleared swap transactions. A swap contract is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other instruments. Typically swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Fund's obligations or rights under a swap contract entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Fund's ultimate counterparty is a clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of

default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Fund or if the reference index, security or investments do not perform as expected.

During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis based on the type of market participant and U.S. 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

When the Fund has an unrealized loss on a swap agreement, the Fund has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. If applicable, cash collateral is included with "Due from (to) Broker" in the 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.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

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

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

(a)

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

541

(a)

Total

565

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

(35

)

Futures Contracts

Variation Margin on
Futures Contracts

Commodity Risk

(58

)(a)

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

(20

)(a)

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

(300

)(a)

Total

(413

)

(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.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Commodity Risk	Futures Contracts	$	159
Equity Risk	Futures Contracts		471
Equity Risk	Swap Agreements		233
Interest Rate Risk	Swap Agreements		209
Total		$	1,072
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(24	)
Commodity Risk	Futures Contracts		(160	)
Equity Risk	Futures Contracts		6
Equity Risk	Swap Agreements		(112	)
Interest Rate Risk	Swap Agreements		(128	)
Total		$	(418	)

At June 30, 2022, the Fund's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Consolidated Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	11	$	(35	)

(b) Excludes exchange-traded derivatives.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received (000)		Net Amount (not less than $0) (000)
BNP Paribas SA	$	—	@	$	(—	@)	$	—	$	0
Goldman Sachs International		2			(1	)		—		1
JPMorgan Chase Bank NA		9			(9	)		—		0
Total	$	11		$	(10	)	$	—	$	1
Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
BNP Paribas SA	$	—	@	$	(—	@)	$	—	$	0
Citibank NA		—	@		—			—		—	@
Goldman Sachs International		1			(1	)		—		0
JPMorgan Chase Bank NA		34			(9	)		—		25
Total	$	35		$	(10	)	$	—	$	25

@ Amount is less than $500.

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	2,581,000
Futures Contracts:
Average monthly notional value	$	16,224,000
Swap Agreements:
Average monthly notional amount	$	33,084,000

7. 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table presents financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	98	(d)	$	—	$	(98	)(e)(f)	$	0

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

(e) The Fund received cash collateral of approximately $26,000, of which approximately $25,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $1,000, which is not reflected in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $81,000 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.

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

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	$	26	$	—	$	—	$	—	$	26
Total Borrowings	$	26	$	—	$	—	$	—	$	26
Gross amount of recognized liabilities for securities lending transactions									$	26

First $1 billion				Over $1 billion
0.60%				0.55%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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, 1.90% for Class C shares and 0.75% 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 that the Directors act to discontinue all or a portion of such waivers or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $111,000 of advisory fees were waived and approximately $30,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $23,155,000 and $21,721,000, respectively. For the six months ended June 30, 2022, purchases and sales of long-term U.S. Government securities were approximately $58,973,000 and $46,287,000, respectively.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

were reduced by approximately $6,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	17,027			$	102,181			$	114,047			$	15

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	5,161

and are accrued based on the value of investments denominated in such currency.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Paid-in- Capital (000)
$	2,614	$	1,655	$	236	$	—

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2021.

At December 31, 2021, 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)
$436				$2

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

During the year ended December 31, 2021, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $642,000.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 and for the period since the middle of June 2018, the month of the Fund's inception. 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIMARRSAN
4881617 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Next Gen Emerging Markets Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					7
Statements of Changes in Net Assets					8
Financial Highlights					10
Notes to Financial Statements					15
Investment Advisory Agreement Approval					22
Liquidity Risk Management Program					24
U.S. Customer Privacy Notice					25
Director and Officer Information					28

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Next Gen Emerging Markets Portfolio (the "Fund") performed during the latest six-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Next Gen Emerging Markets Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Next Gen Emerging Markets Portfolio Class I	$	1,000.00	$	633.00	$	1,018.65	$	5.02	$	6.21		1.24	%
Next Gen Emerging Markets Portfolio Class A		1,000.00		632.10		1,016.91		6.43		7.95		1.59
Next Gen Emerging Markets Portfolio Class L		1,000.00		630.00		1,014.43		8.45		10.44		2.09
Next Gen Emerging Markets Portfolio Class C		1,000.00		629.60		1,013.19		9.45		11.68		2.34
Next Gen Emerging Markets Portfolio Class R6⁽¹⁾		1,000.00		633.90		1,018.89		4.82		5.96		1.19

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Next Gen Emerging Markets Portfolio

	Shares		Value (000)
Common Stocks (89.4%)
Bangladesh (2.8%)
Brac Bank Ltd.		3,112,148	$	1,382
Brazil (2.0%)
Locaweb Servicos de Internet SA (a)		913,422		981
Canada (2.0%)
Cameco Corp.		46,014		967
Indonesia (10.4%)
Bank Mandiri Persero Tbk PT		4,438,700		2,371
Industri Jamu Dan Farmasi Sido Muncul Tbk PT		40,949,900		2,749
				5,120
Kazakhstan (2.0%)
NAC Kazatomprom JSC GDR		37,650		976
Kenya (4.7%)
Safaricom PLC		11,033,911		2,331
Nigeria (0.1%)
SEPLAT Energy PLC		60,687		71
Pakistan (0.2%)
Systems Ltd.		62,418		100
Poland (14.2%)
11 bit studios SA (a)		16,364		1,802
Grupa Kety SA		11,387		1,542
LiveChat Software SA		86,821		1,903
LPP SA		869		1,756
				7,003
Singapore (3.5%)
Sea Ltd. ADR (a)		26,139		1,748
South Africa (7.8%)
Anglo American PLC		39,541		1,416
Capitec Bank Holdings Ltd.		19,973		2,448
				3,864
United Kingdom (2.3%)
Mondi PLC		64,845		1,152
United States (19.5%)
EPAM Systems, Inc. (a)		8,821		2,600
Grid Dynamics Holdings, Inc. (a)		158,068		2,659
MercadoLibre, Inc. (a)		3,388		2,158
SEMrush Holdings, Inc., Class A (a)		170,635		2,206
				9,623
Vietnam (17.9%)
FPT Corp.		733,261		2,829
Mobile World Investment Corp.		967,288		2,975
Vietnam Dairy Products JSC		971,192		3,015
				8,819
Total Common Stocks (Cost $42,445)				44,137

	Shares		Value (000)
Short-Term Investment (8.5%)
Investment Company (8.5%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $4,212)		4,211,961	$	4,212
Total Investments (97.9%) (Cost $46,657) (b)(c)				48,349
Other Assets in Excess of Liabilities (2.1%)				1,046
Net Assets (100.0%)			$	49,395

(a) Non-income producing security.

(b) The approximate fair value and percentage of net assets, $24,914,000 and 50.4%, 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 the Financial Statements.

(c) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $6,795,000 and the aggregate gross unrealized depreciation is approximately $5,103,000, resulting in net unrealized appreciation of approximately $1,692,000.

ADR American Depositary Receipt.

GDR Global Depositary Receipt.

Portfolio Composition

Classification	Percentage of Total Investments
Others*		19.5	%
Information Technology Services		19.0
Banks		12.8
Short-Term Investment		8.7
Software		8.5
Entertainment		7.3
Food Products		6.2
Specialty Retail		6.2
Metals & Mining		6.1
Personal Products		5.7
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.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Next Gen Emerging Markets Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $42,445)	$	44,137
Investment in Security of Affiliated Issuer, at Value (Cost $4,212)		4,212
Total Investments in Securities, at Value (Cost $46,657)		48,349
Foreign Currency, at Value (Cost $666)		257
Cash		21
Receivable for Investments Sold		903
Receivable for Fund Shares Sold		37
Dividends Receivable		35
Due from Adviser		20
Tax Reclaim Receivable		15
Receivable from Affiliate		4
Other Assets		159
Total Assets		49,800
Liabilities:
Payable for Investments Purchased		282
Payable for Custodian Fees		63
Payable for Sub Transfer Agency Fees — Class I		18
Payable for Sub Transfer Agency Fees — Class A		2
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class I		4
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		1
Payable for Fund Shares Redeemed		6
Payable for Administration 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		—	@
Other Liabilities		23
Total Liabilities		405
Net Assets	$	49,395
Net Assets Consist of:
Paid-in-Capital	$	165,720
Total Accumulated Loss		(116,325	)
Net Assets	$	49,395

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Next Gen Emerging Markets Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	42,468
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,985,017
Net Asset Value, Offering and Redemption Price Per Share	$	14.23
CLASS A:
Net Assets	$	6,132
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		433,867
Net Asset Value, Redemption Price Per Share	$	14.13
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.78
Maximum Offering Price Per Share	$	14.91
CLASS L:
Net Assets	$	205
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		14,678
Net Asset Value, Offering and Redemption Price Per Share	$	13.93
CLASS C:
Net Assets	$	541
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		39,704
Net Asset Value, Offering and Redemption Price Per Share	$	13.63
CLASS R6:*
Net Assets	$	49
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,472
Net Asset Value, Offering and Redemption Price Per Share	$	14.25

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Next Gen Emerging Markets Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $70 of Foreign Taxes Withheld)	$	661
Dividends from Security of Affiliated Issuer (Note G)		8
Total Investment Income		669
Expenses:
Advisory Fees (Note B)		536
Professional Fees		105
Custodian Fees (Note F)		67
Sub Transfer Agency Fees — Class I		38
Sub Transfer Agency Fees — Class A		6
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		—	@
Registration Fees		40
Administration Fees (Note C)		36
Reorganization Expense		24
Shareholder Reporting Fees		19
Shareholder Services Fees — Class A (Note D)		9
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		3
Transfer Agency Fees — Class I (Note E)		5
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		2
Transfer Agency Fees — Class R6* (Note E)		1
Directors' Fees and Expenses		3
Pricing Fees		1
Other Expenses		6
Total Expenses		905
Waiver of Advisory Fees (Note B)		(302	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(26	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(3	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Net Expenses		569
Net Investment Income		100
Realized Loss:
Investments Sold		(34,635	)
Foreign Currency Translation		(225	)
Net Realized Loss		(34,860	)
Change in Unrealized Appreciation (Depreciation):
Investments		(22,480	)
Foreign Currency Translation		(389	)
Net Change in Unrealized Appreciation (Depreciation)		(22,869	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(57,729	)
Net Decrease in Net Assets Resulting from Operations	$	(57,629	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Next Gen Emerging Markets Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	100		$	(190	)
Net Realized Gain (Loss)		(34,860	)		4,034
Net Change in Unrealized Appreciation (Depreciation)		(22,869	)		(583	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(57,629	)		3,261
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		8,888			45,403
Issued due to a Tax-Free Reorganization		—			29,344
Redeemed		(50,387	)		(9,479	)
Class A:
Subscribed		1,183			1,653
Issued due to a Tax-Free Reorganization		—			278
Redeemed		(919	)		(2,415	)
Class L:
Redeemed		(61	)		(39	)
Class C:
Subscribed		21			45
Issued due to a Tax-Free Reorganization		—			30
Redeemed		(42	)		(140	)
Class R6:*
Subscribed		1,006			43,005
Issued due to a Tax-Free Reorganization		—			14
Redeemed		(28,294	)		(846	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(68,605	)		106,853
Redemption Fees		7			—	@
Total Increase (Decrease) in Net Assets		(126,227	)		110,114
Net Assets:
Beginning of Period		175,622			65,508
End of Period	$	49,395		$	175,622

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Next Gen Emerging Markets Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		472			1,910
Shares Issued due to a Tax-Free Reorganization		—			1,230
Shares Redeemed		(3,044	)		(432	)
Net Increase (Decrease) in Class I Shares Outstanding		(2,572	)		2,708
Class A:
Shares Subscribed		76			73
Shares Issued due to a Tax-Free Reorganization		—			12
Shares Redeemed		(51	)		(109	)
Net Increase (Decrease) in Class A Shares Outstanding		25			(24	)
Class L:
Shares Redeemed		(3	)		(2	)
Class C:
Shares Subscribed		1			2
Shares Issued due to a Tax-Free Reorganization		—			1
Shares Redeemed		(3	)		(6	)
Net Decrease in Class C Shares Outstanding		(2	)		(3	)
Class R6:*
Shares Subscribed		52			1,810
Shares Issued due to a Tax-Free Reorganization		—			1
Shares Redeemed		(1,839	)		(37	)
Net Increase (Decrease) in Class R6 Shares Outstanding		(1,787	)		1,774

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Next Gen Emerging Markets Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	22.48		$	19.49		$	17.10		$	15.63		$	21.02		$	17.39
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.03			(0.02	)		0.04			0.39			0.33			0.16
Net Realized and Unrealized Gain (Loss)		(8.28	)		3.01			2.36			1.58			(5.07	)		3.47
Total from Investment Operations		(8.25	)		2.99			2.40			1.97			(4.74	)		3.63
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		(0.50	)		(0.65	)		—
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	14.23		$	22.48		$	19.49		$	17.10		$	15.63		$	21.02
Total Return⁽³⁾		(36.70	)%⁽⁷⁾		15.34	%		14.02	%		12.53	%		(22.60	)%		20.82	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	42,468		$	124,931		$	55,533		$	125,780		$	229,688		$	632,435
Ratio of Expenses Before Expense Limitation		2.00	%⁽⁸⁾		2.21	%		2.13	%		1.92	%		N/A			N/A
Ratio of Expenses After Expense Limitation		1.24	%⁽⁴⁾⁽⁸⁾		1.51	%⁽⁴⁾		1.90	%⁽⁴⁾⁽⁵⁾		1.90	%⁽⁴⁾⁽⁵⁾		1.77	%⁽⁴⁾		1.73	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.51	%⁽⁴⁾		1.85	%⁽⁴⁾		1.85	%⁽⁴⁾		1.76	%⁽⁴⁾		1.73	%⁽⁴⁾
Ratio of Net Investment Income (Loss)		0.38	%⁽⁴⁾⁽⁸⁾		(0.11	)%⁽⁴⁾		0.24	%⁽⁴⁾		2.33	%⁽⁴⁾		1.68	%⁽⁴⁾		0.82	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		51	%⁽⁷⁾		56	%		56	%		68	%		61	%		52	%

(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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Next Gen Emerging Markets Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	22.37		$	19.47		$	17.15		$	15.61		$	20.86		$	17.31
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.03			(0.08	)		0.01			0.42			0.34			0.11
Net Realized and Unrealized Gain (Loss)		(8.27	)		2.98			2.32			1.48			(5.10	)		3.44
Total from Investment Operations		(8.24	)		2.90			2.33			1.90			(4.76	)		3.55
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		(0.36	)		(0.49	)		—
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	14.13		$	22.37		$	19.47		$	17.15		$	15.61		$	20.86
Total Return⁽³⁾		(36.79	)%⁽⁷⁾		14.89	%		13.57	%		12.13	%		(22.80	)%		20.39	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	6,132		$	9,154		$	8,436		$	12,044		$	34,654		$	86,324
Ratio of Expenses Before Expense Limitation		2.35	%⁽⁸⁾		2.70	%		2.44	%		2.23	%		N/A			N/A
Ratio of Expenses After Expense Limitation		1.59	%⁽⁴⁾⁽⁸⁾		1.96	%⁽⁴⁾		2.26	%⁽⁴⁾⁽⁵⁾		2.25	%⁽⁴⁾⁽⁵⁾		2.07	%⁽⁴⁾		2.05	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.96	%⁽⁴⁾		2.20	%⁽⁴⁾		2.20	%⁽⁴⁾		2.06	%⁽⁴⁾		2.05	%⁽⁴⁾
Ratio of Net Investment Income (Loss)		0.37	%⁽⁴⁾⁽⁸⁾		(0.38	)%⁽⁴⁾		0.07	%⁽⁴⁾		2.48	%⁽⁴⁾		1.71	%⁽⁴⁾		0.59	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		51	%⁽⁷⁾		56	%		56	%		68	%		61	%		52	%

(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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Next Gen Emerging Markets Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	22.11		$	19.34		$	17.11		$	15.59		$	20.65		$	17.25
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		(0.02	)		(0.19	)		(0.06	)		0.25			0.17			(0.02	)
Net Realized and Unrealized Gain (Loss)		(8.16	)		2.96			2.30			1.56			(4.98	)		3.42
Total from Investment Operations		(8.18	)		2.77			2.24			1.81			(4.81	)		3.40
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		(0.29	)		(0.25	)		—
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	13.93		$	22.11		$	19.34		$	17.11		$	15.59		$	20.65
Total Return⁽³⁾		(37.00	)%⁽⁷⁾		14.32	%		13.01	%		11.58	%		(23.19	)%		19.59	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	205		$	396		$	378		$	570		$	1,241		$	2,570
Ratio of Expenses Before Expense Limitation		3.61	%⁽⁸⁾		3.67	%		3.44	%		2.90	%		N/A			2.76	%
Ratio of Expenses After Expense Limitation		2.09	%⁽⁴⁾⁽⁸⁾		2.46	%⁽⁴⁾		2.76	%⁽⁴⁾⁽⁵⁾		2.75	%⁽⁴⁾⁽⁵⁾		2.57	%⁽⁴⁾		2.70	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			2.46	%⁽⁴⁾		2.70	%⁽⁴⁾		2.70	%⁽⁴⁾		2.56	%⁽⁴⁾		2.70	%⁽⁴⁾
Ratio of Net Investment Income (Loss)		(0.26	)%⁽⁴⁾⁽⁸⁾		(0.86	)%⁽⁴⁾		(0.39	)%⁽⁴⁾		1.47	%⁽⁴⁾		0.88	%⁽⁴⁾		(0.13	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		51	%⁽⁷⁾		56	%		56	%		68	%		61	%		52	%

(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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Next Gen Emerging Markets Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	21.65		$	18.99		$	16.85		$	15.38		$	20.41		$	17.07
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		(0.04	)		(0.24	)		(0.10	)		0.20			0.11			(0.05	)
Net Realized and Unrealized Gain (Loss)		(7.98	)		2.90			2.25			1.56			(4.90	)		3.39
Total from Investment Operations		(8.02	)		2.66			2.15			1.76			(4.79	)		3.34
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		(0.29	)		(0.24	)		—
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	13.63		$	21.65		$	18.99		$	16.85		$	15.38		$	20.41
Total Return⁽³⁾		(37.04	)%⁽⁷⁾		14.01	%		12.74	%		11.34	%		(23.42	)%		19.51	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	541		$	897		$	843		$	877		$	1,657		$	2,857
Ratio of Expenses Before Expense Limitation		3.41	%⁽⁸⁾		3.67	%		3.42	%		3.07	%		N/A			N/A
Ratio of Expenses After Expense Limitation		2.34	%⁽⁴⁾⁽⁸⁾		2.71	%⁽⁴⁾		3.00	%⁽⁴⁾⁽⁵⁾		2.99	%⁽⁴⁾⁽⁵⁾		2.83	%⁽⁴⁾		2.81	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			2.71	%⁽⁴⁾		2.95	%⁽⁴⁾		2.95	%⁽⁴⁾		2.82	%⁽⁴⁾		2.81	%⁽⁴⁾
Ratio of Net Investment Income (Loss)		(0.47	)%⁽⁴⁾⁽⁸⁾		(1.13	)%⁽⁴⁾		(0.66	)%⁽⁴⁾		1.17	%⁽⁴⁾		0.56	%⁽⁴⁾		(0.26	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		51	%⁽⁷⁾		56	%		56	%		68	%		61	%		52	%

(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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Next Gen Emerging Markets Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	22.48		$	19.49		$	17.09		$	15.63		$	21.02		$	17.39
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.07	)		(0.07	)		0.09			0.33			0.58			0.13
Net Realized and Unrealized Gain (Loss)		(8.16	)		3.06			2.32			1.64			(5.33	)		3.50
Total from Investment Operations		(8.23	)		2.99			2.41			1.97			(4.75	)		3.63
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.01	)		(0.51	)		(0.64	)		—
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	14.25		$	22.48		$	19.49		$	17.09		$	15.63		$	21.02
Total Return⁽⁴⁾		(36.61	)%⁽⁸⁾		15.34	%		14.02	%		12.60	%		(22.61	)%		20.83	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	49		$	40,244		$	318		$	1,580		$	4,633		$	16,344
Ratio of Expenses Before Expense Limitation		1.90	%⁽⁹⁾		1.80	%		2.20	%		1.91	%		N/A			N/A
Ratio of Expenses After Expense Limitation		1.19	%⁽⁵⁾⁽⁹⁾		1.24	%⁽⁵⁾		1.86	%⁽⁵⁾⁽⁶⁾		1.85	%⁽⁵⁾⁽⁶⁾		1.74	%⁽⁵⁾		1.69	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.24	%⁽⁵⁾		1.80	%⁽⁵⁾		1.80	%⁽⁵⁾		1.73	%⁽⁵⁾		1.69	%⁽⁵⁾
Ratio of Net Investment Income (Loss)		(0.65	)%⁽⁵⁾⁽⁹⁾		(0.29	)%⁽⁵⁾		0.55	%⁽⁵⁾		1.95	%⁽⁵⁾		2.85	%⁽⁵⁾		0.65	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾
Portfolio Turnover Rate		51	%⁽⁸⁾		56	%		56	%		68	%		61	%		52	%

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

(3) Amount is less than $0.005 per share.

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Next Gen Emerging Markets Portfolio. The Fund seeks long-term capital appreciation.

On August 13, 2021, the Fund acquired the net assets of the Company's Emerging Markets Small Cap Portfolio ("Emerging Markets Small Cap"), an open-end investment company, based on the respective valuations as of the close of business on August 13, 2021, pursuant to a Plan of Reorganization approved by the shareholders of Emerging Markets Small Cap on August 6, 2021 ("Reorganization"). The purpose of the transaction was to combine two portfolios managed by Morgan Stanley Investment Management Inc., (the "Adviser") with comparable investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of 1,229,838 Class I shares of the Fund at a net asset value ("NAV") of $23.86 for 5,313,467 Class I shares of Emerging Markets Small Cap; 11,699 Class A shares of the Fund at a NAV of $23.79 for 51,786 Class A shares of Emerging Markets Small Cap; 1,308 Class C shares of the Fund at a NAV of $23.09 for 6,028 Class C shares of Emerging Markets Small Cap; 606 Class IS shares of the Fund at a NAV of $23.87 for 2,617 Class IS shares of Emerging Markets Small Cap. The net assets of Emerging Markets Small Cap before the Reorganization were approximately $29,667,000, including unrealized appreciation (depreciation) of approximately $1,927,000 at August 13, 2021. The investment portfolio of Emerging Markets Small Cap, with a fair value of approximately $28,441,000 and identified cost of approximately $26,492,000, on August 13, 2021, was the principal asset acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair

value; however, the cost basis of the investments received from Emerging Markets Small Cap was carried forward to align ongoing reporting of the Fund's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the Reorganization, the net assets of the Fund were approximately $147,270,000. Immediately after the Reorganization, the net assets of the Fund were approximately $176,937,000.

Upon closing of the Reorganization, shareholders of Emerging Markets Small Cap received shares of the Fund as follows:

Emerging Markets Small Cap				Next Gen Emerging Markets
Class I				Class I
Class A				Class A
Class C				Class C
Class IS				Class IS

Assuming the acquisition had been completed on January 1, 2021, the beginning of the annual reporting period of the Fund, the Fund's pro-forma results of operations for the period ended December 31, 2021, are approximately as follows:

Net investment Income⁽¹⁾	$	2,687,000
Net realized gain and unrealized gain⁽²⁾	$	30,974,000
Net increase in net assets resulting from operations	$	33,661,000

(1) Approximately $(190,000) as reported, plus approximately $875,000 from Emerging Markets Small Cap prior to the Reorganization, plus approximately $2,002,000 of estimated pro-forma eliminated expenses.

(2) Approximately $3,451,000 as reported, plus approximately $27,523,000 from Emerging Markets Small Cap prior to the Reorganization.

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Emerging Markets Small Cap that have been included in the Fund's Statement of Operations since August 13, 2021.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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 or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If the Adviser, a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable

to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Banks	$	—	$	6,201	$	—	$	6,201
Entertainment		1,748		1,802		—		3,550
Food Products		—		3,015		—		3,015
Information Technology Services		6,340		2,829		—		9,169
Internet & Direct Marketing Retail		2,158		—		—		2,158
Metals & Mining		—		2,958		—		2,958
Oil, Gas & Consumable Fuels		967		1,047		—		2,014
Paper & Forest Products		—		1,152		—		1,152
Personal Products		—		2,749		—		2,749
Software		2,206		1,903		—		4,109
Specialty Retail		—		2,975		—		2,975
Textiles, Apparel & Luxury Goods		—		1,756		—		1,756
Wireless Telecommunication Services		—		2,331		—		2,331
Total Common Stocks		13,419		30,718		—		44,137
Short-Term Investment
Investment Company		4,212		—		—		4,212
Total Assets	$	17,631	$	30,718	$	—	$	48,349

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

A significant portion of the Fund's net assets consist of securities of issuers located in emerging markets, which are denominated in foreign currencies. Such securities may be concentrated in a limited number of countries and regions and may vary throughout the year. Changes in currency exchange rates will affect the value of securities and investment income from foreign currency denominated securities. Emerging market securities are often subject to greater price volatility, limited capitalization and liquidity, and higher rates of inflation than securities of companies based in the U.S. In addition, emerging market issuers may be subject to substantial governmental involvement in the economy and greater social, economic and political uncertainty.

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. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class L shares, Class C shares and Class R6 shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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 1.20% 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 1.25% for Class I shares, 1.60% for Class A shares, 2.10% for Class L shares, 2.35% for Class C shares and 1.20% for Class R6 shares. The fee waivers and/or expense reimbursements will continue for at least two years from the date of the Reorganization or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $302,000 of advisory fees were waived and approximately $32,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $2,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	27,427			$	32,340			$	55,555			$	8

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	4,212

2021 Distributions Paid From: Ordinary Income (000)				2020 Distributions Paid From: Ordinary Income (000)
$	—			$	23

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Accumulated Loss (000)				Paid-in- Capital (000)
$	255			$	(255	)

At December 31, 2021, the Fund had no distributable earnings on a tax basis.

At December 31, 2021, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $82,494,000 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 December 31, 2021, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $3,353,000.

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$	165			$	—

J. Other: At June 30, 2022, 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 28.1%.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 below its peer group average for the five-year period but better than its peer group average for the one- and three-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 contractual management fee and total expense ratio were higher than its peer group averages and the actual management fee was lower 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFINGEMSAN
4877812 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Permanence Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					15
Investment Advisory Agreement Approval					24
Liquidity Risk Management Program					26
U.S. Customer Privacy Notice					27
Director and Officer Information					30

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Permanence Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Permanence Portfolio Class I	$	1,000.00	$	756.60	$	1,020.58	$	3.70	$	4.26		0.85	%
Permanence Portfolio Class A		1,000.00		755.40		1,018.84		5.22		6.01		1.20
Permanence Portfolio Class C		1,000.00		752.10		1,015.12		8.47		9.74		1.95
Permanence Portfolio Class R6⁽¹⁾		1,000.00		756.80		1,020.83		3.48		4.01		0.80

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Permanence Portfolio

	Shares		Value (000)
Common Stocks (93.5%)
Aerospace & Defense (7.8%)
Axon Enterprise, Inc. (a)		742	$	69
HEICO Corp., Class A		767		81
Lockheed Martin Corp.		112		48
TransDigm Group, Inc. (a)		105		57
				255
Capital Markets (2.5%)
Intercontinental Exchange, Inc.		421		39
S&P Global, Inc.		130		44
				83
Chemicals (0.9%)
Ecolab, Inc.		99		15
Sherwin-Williams Co. (The)		68		15
				30
Commercial Services & Supplies (4.7%)
Cintas Corp.		47		17
Copart, Inc. (a)		292		32
Rollins, Inc.		2,968		104
				153
Construction Materials (0.9%)
Martin Marietta Materials, Inc.		96		29
Containers & Packaging (0.4%)
Ball Corp.		191		13
Distributors (2.3%)
Pool Corp.		211		74
Diversified Consumer Services (2.7%)
Service Corp. International		1,272		88
Entertainment (1.3%)
Netflix, Inc. (a)		94		16
Walt Disney Co. (The) (a)		296		28
				44
Equity Real Estate Investment Trusts (REITs) (1.0%)
American Tower Corp. REIT		134		34
Food & Staples Retailing (0.5%)
Costco Wholesale Corp.		36		17
Food Products (3.1%)
McCormick & Co., Inc.		160		14
UTZ Brands, Inc.		6,243		86
				100
Health Care Equipment & Supplies (2.6%)
IDEXX Laboratories, Inc. (a)		34		12
Intuitive Surgical, Inc. (a)		360		72
				84
Health Care Technology (3.9%)
Veeva Systems, Inc., Class A (a)		651		129
Hotels, Restaurants & Leisure (4.3%)
Domino's Pizza, Inc.		227		89
McDonald's Corp.		151		37

	Shares		Value (000)
Starbucks Corp.		194	$	15
				141
Household Durables (1.3%)
NVR, Inc. (a)		11		44
Insurance (4.0%)
Brown & Brown, Inc.		560		33
Progressive Corp. (The)		856		99
				132
Internet & Direct Marketing Retail (6.2%)
Amazon.com, Inc. (a)		1,920		204
Life Sciences Tools & Services (3.3%)
Danaher Corp.		302		76
Thermo Fisher Scientific, Inc.		60		33
				109
Metals & Mining (1.3%)
Royal Gold, Inc.		382		41
Oil, Gas & Consumable Fuels (2.0%)
Texas Pacific Land Corp.		44		66
Pharmaceuticals (4.0%)
Royalty Pharma PLC, Class A (United Kingdom)		2,814		118
Zoetis, Inc.		81		14
				132
Professional Services (1.1%)
CoStar Group, Inc. (a)		614		37
Semiconductors & Semiconductor Equipment (4.2%)
ASML Holding NV		288		137
Software (21.6%)
Cadence Design Systems, Inc. (a)		117		17
Constellation Software, Inc.		114		169
Olo, Inc., Class A (a)		3,200		32
Procore Technologies, Inc. (a)		697		32
Roper Technologies, Inc.		81		32
Salesforce, Inc. (a)		715		118
ServiceNow, Inc. (a)		360		171
Synopsys, Inc. (a)		58		18
Topicus.com, Inc. (a)		1,350		76
Tyler Technologies, Inc. (a)		125		42
				707
Specialty Retail (4.6%)
AutoZone, Inc. (a)		33		71
Home Depot, Inc. (The)		292		80
				151
Trading Companies & Distributors (1.0%)
Fastenal Co.		308		15
Watsco, Inc.		67		16
				31
Total Common Stocks (Cost $3,208)				3,065
Investment Company (0.5%)
Grayscale Bitcoin Trust (a) (Cost $49)		1,279		15

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Permanence Portfolio

	Shares		Value (000)
Short-Term Investment (4.0%)
Investment Company (4.0%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $131)		131,017	$	131
Total Investments Excluding Purchased Options (98.0%) (Cost $3,388)				3,211
Total Purchased Options Outstanding (0.0%) (b) (Cost $12)				1
Total Investments (98.0%) (Cost $3,400) (c)(d)				3,212
Other Assets in Excess of Liabilities (2.0%)				66
Net Assets (100.0%)			$	3,278

(a) Non-income producing security.

(b) Amount is less than 0.05%.

(d) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $239,000 and the aggregate gross unrealized depreciation is approximately $427,000, resulting in net unrealized depreciation of approximately $188,000.

REIT Real Estate Investment Trust.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
Goldman Sachs International	USD/CNH	CNH	7.27	Nov-22		876,672		877	$	1		$	4	$	(3	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.28	Jul-22		827,282		827		—	@		4		(4	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		384,147		384		—	@		3		(3	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		241,439		241		—	@		1		(1	)
									$	1		$	12	$	(11	)

@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Other*		63.7	%
Software		22.0
Aerospace & Defense		7.9
Internet & Direct Marketing Retail		6.4
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 Consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Permanence Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $3,269)	$	3,081
Investment in Security of Affiliated Issuer, at Value (Cost $131)		131
Total Investments in Securities, at Value (Cost $3,400)		3,212
Foreign Currency, at Value (Cost —@)		—	@
Due from Adviser		57
Dividends Receivable		1
Interest Receivable		—	@
Receivable from Affiliate		—	@
Other Assets		62
Total Assets		3,332
Liabilities:
Payable for Professional Fees		29
Payable for Custodian Fees		4
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class R6*		—	@
Payable for Sub Transfer Agency Fees — Class I		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Administration Fees		—	@
Other Liabilities		19
Total Liabilities		54
Net Assets	$	3,278
Net Assets Consist of:
Paid-in-Capital	$	3,363
Total Accumulated Loss		(85	)
Net Assets	$	3,278

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Permanence Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	3,020
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		276,824
Net Asset Value, Offering and Redemption Price Per Share	$	10.91
CLASS A:
Net Assets	$	188
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		17,383
Net Asset Value, Redemption Price Per Share	$	10.81
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.60
Maximum Offering Price Per Share	$	11.41
CLASS C:
Net Assets	$	20
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,834
Net Asset Value, Offering and Redemption Price Per Share	$	10.65
CLASS R6:*
Net Assets	$	50
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		4,615
Net Asset Value, Offering and Redemption Price Per Share	$	10.92

@ Amount is less than $500.

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Permanence Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $—@ of foreign Taxes Withheld)	$	12
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		12
Expenses:
Professional Fees		69
Registration Fees		20
Advisory Fees (Note B)		12
Shareholder Reporting Fees		8
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Custodian Fees (Note F)		4
Directors' Fees and Expenses		3
Administration Fees (Note C)		1
Pricing Fees		1
Sub Transfer Agency Fees — Class I		—	@
Sub Transfer Agency Fees — Class A		—	@
Sub Transfer Agency Fees — Class C		—	@
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Other Expenses		9
Total Expenses		131
Expenses Reimbursed by Adviser (Note B)		(99	)
Waiver of Advisory Fees (Note B)		(12	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		16
Net Investment Loss		(4	)
Realized Gain:
Investments Sold		88
Foreign Currency Translation		—	@
Net Realized Gain		88
Change in Unrealized Appreciation (Depreciation):
Investments		(1,111	)
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		(1,111	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(1,023	)
Net Decrease in Net Assets Resulting from Operations	$	(1,027	)

@ Amount is less than $500.

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Permanence Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(4	)	$	(1	)
Net Realized Gain		88			463
Net Change in Unrealized Appreciation (Depreciation)		(1,111	)		121
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,027	)		583
Dividends and Distributions to Shareholders:
Class I		—			(582	)
Class A		—			(47	)
Class C		—			(4	)
Class R6*		—			(3	)
Total Dividends and Distributions to Shareholders		—			(636	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		153			115
Distributions Reinvested		—			582
Class A:
Subscribed		42			344
Distributions Reinvested		—			47
Redeemed		(108	)		(308	)
Class C:
Subscribed		—			1
Distributions Reinvested		—			4
Class R6:*
Subscribed		43			—
Distributions Reinvested		—			3
Net Increase in Net Assets Resulting from Capital Share Transactions		130			788
Total Increase (Decrease) in Net Assets		(897	)		735
Net Assets:
Beginning of Period		4,175			3,440
End of Period	$	3,278		$	4,175

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Permanence Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		13			7
Shares Issued on Distributions Reinvested		—			42
Net Increase in Class I Shares Outstanding		13			49
Class A:
Shares Subscribed		4			23
Shares Issued on Distributions Reinvested		—			3
Shares Redeemed		(9	)		(21	)
Net Increase (Decrease) in Class A Shares Outstanding		(5	)		5
Class C:
Shares Subscribed		—			—	@
Shares Issued on Distributions Reinvested		—			—	@
Net Increase in Class C Shares Outstanding		—			—	@
Class R6:*
Shares Subscribed		3			—
Shares Issued on Distributions Reinvested		—			—	@
Net Increase in Class R6 Shares Outstanding		3			—	@

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Permanence Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Year Ended December 31, 2021			Period from March 31, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.42		$	14.65		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.01	)		0.00	⁽⁴⁾		(0.00	)⁽⁴⁾
Net Realized and Unrealized Gain (Loss)		(3.50	)		2.39			5.51
Total from Investment Operations		(3.51	)		2.39			5.51
Distributions from and/or in Excess of:
Net Investment Income		—			(0.11	)		—
Net Realized Gain		—			(2.51	)		(0.86	)
Total Distributions		—			(2.62	)		(0.86	)
Net Asset Value, End of Period	$	10.91		$	14.42		$	14.65
Total Return⁽⁵⁾		(24.34	)%⁽⁸⁾		16.85	%		55.46	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,020		$	3,807		$	3,147
Ratio of Expenses Before Expense Limitation		7.11	%⁽⁹⁾		7.49	%		10.85	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.85	%⁽⁶⁾⁽⁹⁾		0.85	%⁽⁶⁾		0.85	%⁽⁶⁾⁽⁹⁾
Ratio of Net Investment Income (Loss)		(0.18	)%⁽⁶⁾⁽⁹⁾		0.01	%⁽⁶⁾		(0.02	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.00	%⁽⁷⁾⁽⁹⁾
Portfolio Turnover Rate		22	%⁽⁸⁾		70	%		68	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

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

(4) Amount is less than $0.005 per share.

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

(6) The 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."

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Permanence Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Year Ended December 31, 2021			Period from March 31, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.31		$	14.61		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.03	)		(0.05	)		(0.01	)
Net Realized and Unrealized Gain (Loss)		(3.47	)		2.37			5.48
Total from Investment Operations		(3.50	)		2.32			5.47
Distributions from and/or in Excess of:
Net Investment Income		—			(0.11	)		—
Net Realized Gain		—			(2.51	)		(0.86	)
Total Distributions		—			(2.62	)		(0.86	)
Net Asset Value, End of Period	$	10.81		$	14.31		$	14.61
Total Return⁽⁴⁾		(24.46	)%⁽⁷⁾		16.41	%		55.05	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	188		$	324		$	256
Ratio of Expenses Before Expense Limitation		8.41	%⁽⁸⁾		8.83	%		17.41	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.20	%⁽⁵⁾⁽⁸⁾		1.20	%⁽⁵⁾		1.20	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(0.55	)%⁽⁵⁾⁽⁸⁾		(0.33	)%⁽⁵⁾		(0.06	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		22	%⁽⁷⁾		70	%		68	%⁽⁷⁾

(1) Commencement of Operations.

(2) Not consolidated.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Permanence Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Year Ended December 31, 2021			Period from March 31, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	14.16		$	14.52		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.08	)		(0.17	)		(0.11	)
Net Realized and Unrealized Gain (Loss)		(3.43	)		2.35			5.49
Total from Investment Operations		(3.51	)		2.18			5.38
Distributions from and/or in Excess of:
Net Investment Income		—			(0.03	)		—
Net Realized Gain		—			(2.51	)		(0.86	)
Total Distributions		—			(2.54	)		(0.86	)
Net Asset Value, End of Period	$	10.65		$	14.16		$	14.52
Total Return⁽⁴⁾		(24.79	)%⁽⁷⁾		15.52	%		54.15	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	20		$	26		$	21
Ratio of Expenses Before Expense Limitation		17.92	%⁽⁸⁾		18.17	%		24.15	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.95	%⁽⁵⁾⁽⁸⁾		1.95	%⁽⁵⁾		1.95	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(1.28	)%⁽⁵⁾⁽⁸⁾		(1.09	)%⁽⁵⁾		(1.08	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		22	%⁽⁷⁾		70	%		68	%⁽⁷⁾

(1) Commencement of Operations.

(2) Not consolidated.

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

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Permanence Portfolio

	Class R6⁽¹⁾
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Year Ended December 31, 2021			Period from March 31, 2020⁽²⁾ to December 31, 2020⁽³⁾
Net Asset Value, Beginning of Period	$	14.43		$	14.65		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽⁴⁾		(0.01	)		0.01			(0.00	)⁽⁵⁾
Net Realized and Unrealized Gain (Loss)		(3.50	)		2.40			5.51
Total from Investment Operations		(3.51	)		2.41			5.51
Distributions from and/or in Excess of:
Net Investment Income		—			(0.12	)		—
Net Realized Gain		—			(2.51	)		(0.86	)
Total Distributions		—			(2.63	)		(0.86	)
Net Asset Value, End of Period	$	10.92		$	14.43		$	14.65
Total Return⁽⁶⁾		(24.32	)%⁽⁹⁾		16.95	%		55.45	%⁽⁹⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	50		$	18		$	16
Ratio of Expenses Before Expense Limitation		11.78	%⁽¹⁰⁾		20.29	%		25.34	%⁽¹⁰⁾
Ratio of Expenses After Expense Limitation		0.80	%^(7)(10)		0.80	%⁽⁷⁾		0.80	%^(7)(10)
Ratio of Net Investment Income (Loss)		(0.09	)%^(7)(10)		0.07	%⁽⁷⁾		0.03	%^(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%^(8)(10)		0.00	%⁽⁸⁾		0.00	%^(8)(10)
Portfolio Turnover Rate		22	%⁽⁹⁾		70	%		68	%⁽⁹⁾

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Operations.

(3) Not consolidated.

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

(5) Amount is less than $0.005 per share.

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

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Permanence Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Permanence Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary represented approximately $12,000 or approximately 0.36% of the total 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	255	$	—	$	—	$	255
Capital Markets		83		—		—		83
Chemicals		30		—		—		30
Commercial Services & Supplies		153		—		—		153
Construction Materials		29		—		—		29
Containers & Packaging		13		—		—		13
Distributors		74		—		—		74
Diversified Consumer Services		88		—		—		88
Entertainment		44		—		—		44
Equity Real Estate Investment Trusts (REITs)		34		—		—		34
Food & Staples Retailing		17		—		—		17
Food Products		100		—		—		100
Health Care Equipment & Supplies		84		—		—		84

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Health Care Technology	$	129	$	—	$	—	$	129
Hotels, Restaurants & Leisure		141		—		—		141
Household Durables		44		—		—		44
Insurance		132		—		—		132
Internet & Direct Marketing Retail		204		—		—		204
Life Sciences Tools & Services		109		—		—		109
Metals & Mining		41		—		—		41
Oil, Gas & Consumable Fuels		66		—		—		66
Pharmaceuticals		132		—		—		132
Professional Services		37		—		—		37
Semiconductors & Semiconductor Equipment		137		—		—		137
Software		707		—		—		707
Specialty Retail		151		—		—		151
Trading Companies & Distributors		31		—		—		31
Total Common Stocks		3,065		—		—		3,065
Investment Company		15		—		—		15
Call Options Purchased		—		1		—		1
Short-Term Investment
Investment Company		131		—		—		131
Total Assets	$	3,211	$	1	$	—	$	3,212

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

Options: With respect to options, the Fund is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 expired are treated as realized losses. If the Fund sells an option, it sells to another party the right to buy from or sell to the Fund a specific amount of the underlying instrument or foreign currency, or futures contract on the underlying instrument or foreign currency, at an agreed-upon price during a period of time or on a specified date typically in exchange for a premium received by the Fund. When options are purchased OTC, the Fund bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Fund may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated Statement of
Assets and Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(7	)(b)

(b) Amounts are included in Realized Gain 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)	$	4	(c)

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At June 30, 2022, 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(d) (000)			Liabilities(d) (000)
Purchased Options	$	1	(a)	$	—

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Agreement, the Fund typically may offset with the counterparty certain OTC derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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 (000)		Net Amount (not less than $0) (000)
Goldman Sachs International	$	1		$	—	$	—	$	1
JP Morgan Chase Bank NA		—	@		—		—		—	@
Total	$	1		$	—	$	—	$	1

@ Value is less than $500

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					2,561,000

7. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as on-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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
0.65%				0.60%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 0.85% for Class I shares, 1.20% for Class A shares, 1.95% for Class C shares and 0.80% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $12,000 of advisory fees were waived and approximately $103,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $820,000 and $784,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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 Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	79			$	632			$	580			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2202 (000)
Liquidity Funds				$	—			$	—			$	131

@ Amount is less than $500.

During the six months ended June 30, 2022, the Fund incurred less than $500 in brokerage commissions with Morgan Stanley & Co. LLC, an affiliate of the Adviser/Administrator, Sub-Adviser and Distributor, for portfolio transactions executed on behalf of the Fund.

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 there are no significant uncertain tax positions that would require recognition in the consolidated financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Consolidated Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the two-year period ended December 31, 2021 remains subject to examination by taxing authorities.

2021 Distributions Paid From:		2020 Distributions Paid From:
Ordinary Income (000)	Long-Term Capital Gain (000)	Ordinary Income (000)
$270	$366	$184

Permanent differences, due to nondeductible offering costs related to the Subsidiary, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$33				$(33)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

At December 31, 2021, 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)
$22				$25

K. Market Risk and Risks Relating to Certain Financial Instruments:

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 GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 since the end of March 2020, the month of the Fund's inception. 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 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIPERMSAN
4877754 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Advantage Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					16
Investment Advisory Agreement Approval					26
Liquidity Risk Management Program					28
U.S. Customer Privacy Notice					29
Director and Officer Information					32

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Advantage Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Advantage Portfolio Class I	$	1,000.00	$	465.30	$	1,020.58	$	3.09	$	4.26		0.85	%
Advantage Portfolio Class A		1,000.00		464.40		1,018.84		4.36		6.01		1.20
Advantage Portfolio Class L		1,000.00		464.70		1,019.89		3.60		4.96		0.99
Advantage Portfolio Class C		1,000.00		462.60		1,015.22		7.00		9.64		1.93
Advantage Portfolio Class R6⁽¹⁾		1,000.00		465.30		1,020.78		2.94		4.06		0.81

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Advantage Portfolio

	Shares		Value (000)
Common Stocks (97.7%)
Capital Markets (0.7%)
Coinbase Global, Inc., Class A (a)		40,114	$	1,886
Entertainment (6.1%)
ROBLOX Corp., Class A (a)		382,175		12,559
Spotify Technology SA (a)		47,450		4,452
				17,011
Health Care Equipment & Supplies (1.0%)
Intuitive Surgical, Inc. (a)		14,270		2,864
Health Care Technology (5.8%)
Veeva Systems, Inc., Class A (a)		80,368		15,916
Hotels, Restaurants & Leisure (2.1%)
Airbnb, Inc., Class A (a)		66,157		5,893
Information Technology Services (25.2%)
Adyen NV (Netherlands) (a)		7,301		10,536
Block, Inc., Class A (a)		128,833		7,918
Cloudflare, Inc., Class A (a)		313,286		13,706
Okta, Inc. (a)		35,543		3,213
Shopify, Inc., Class A (Canada) (a)		413,400		12,915
Snowflake, Inc., Class A (a)		137,747		19,155
Twilio, Inc., Class A (a)		24,694		2,070
				69,513
Interactive Media & Services (7.1%)
IAC/InterActiveCorp (a)		56,789		4,315
Match Group, Inc. (a)		40,755		2,840
ZoomInfo Technologies, Inc., Class A (a)		372,294		12,375
				19,530
Internet & Direct Marketing Retail (12.3%)
Amazon.com, Inc. (a)		135,094		14,349
Chewy, Inc., Class A (a)		275,931		9,580
Farfetch Ltd., Class A (a)		282,089		2,020
MercadoLibre, Inc. (a)		7,641		4,866
Wayfair, Inc., Class A (a)		69,742		3,038
				33,853
Life Sciences Tools & Services (0.9%)
Illumina, Inc. (a)		12,938		2,385
Pharmaceuticals (7.2%)
Royalty Pharma PLC, Class A		472,060		19,845
Road & Rail (5.8%)
Uber Technologies, Inc. (a)		778,760		15,934
Semiconductors & Semiconductor Equipment (6.1%)
ASML Holding NV (Netherlands)		35,367		16,831
Software (17.4%)
Coupa Software, Inc. (a)		67,477		3,853
Datadog, Inc., Class A (a)		155,261		14,787
Trade Desk, Inc., Class A (a)		321,891		13,484
Unity Software, Inc. (a)		166,659		6,136
Zoom Video Communications, Inc., Class A (a)		91,700		9,901
				48,161
Total Common Stocks (Cost $422,278)				269,622

	Shares		Value (000)
Investment Company (0.7%)
Grayscale Bitcoin Trust (a) (Cost $7,046)		171,579	$	2,069
Short-Term Investment (1.9%)
Investment Company (1.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $5,273)		5,273,365		5,273
Total Investments Excluding Purchased Options (100.3%) (Cost $434,597)				276,964
Total Purchased Options Outstanding (0.1%) (Cost $3,112)				218
Total Investments (100.4%) (Cost $437,709) (b)(c)(d)				277,182
Liabilities in Excess of Other Assets (–0.4%)				(1,160	)
Net Assets (100.0%)			$	276,022

(a) Non-income producing security.

(b) Securities are available for collateral in connection with purchased options.

(c) The approximate fair value and percentage of net assets, $10,536,000 and 3.8%, 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 the Consolidated Financial Statements.

(d) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $10,250,000 and the aggregate gross unrealized depreciation is approximately $170,777,000, resulting in net unrealized depreciation of approximately $160,527,000.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Advantage Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
Goldman Sachs International	USD/CNH	CNH	7.27	Nov-22		215,952,303		215,952	$	214		$	1,037	$	(823	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.28	Jul-22		222,629,484		222,629		2			1,037		(1,035	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		102,148,816		102,149		2			694		(692	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		64,831,274		64,831		—	@		344		(344	)
									$	218		$	3,112	$	(2,894	)

@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Information Technology Services		25.1	%
Software		17.4
Internet & Direct Marketing Retail		12.2
Others*		7.3
Pharmaceuticals		7.2
Interactive Media & Services		7.1
Entertainment		6.1
Semiconductors & Semiconductor Equipment		6.1
Road & Rail		5.8
Health Care Technology		5.7
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 consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Advantage Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $432,436)	$	271,909
Investment in Security of Affiliated Issuer, at Value (Cost $5,273)		5,273
Total Investments in Securities, at Value (Cost $437,709)		277,182
Foreign Currency, at Value (Cost $1)		1
Receivable for Fund Shares Sold		564
Tax Reclaim Receivable		20
Receivable from Affiliate		3
Receivable from Securities Lending Income		1
Interest Receivable		—	@
Other Assets		137
Total Assets		277,908
Liabilities:
Due to Broker		600
Payable for Fund Shares Redeemed		495
Payable for Advisory Fees		466
Payable for Sub Transfer Agency Fees — Class I		151
Payable for Sub Transfer Agency Fees — Class A		29
Payable for Sub Transfer Agency Fees — Class L		1
Payable for Sub Transfer Agency Fees — Class C		12
Payable for Professional Fees		35
Payable for Shareholder Services Fees — Class A		10
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		23
Payable for Administration Fees		19
Payable for Custodian Fees		12
Payable for Transfer Agency Fees — Class I		3
Payable for Transfer Agency Fees — Class A		2
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		2
Payable for Transfer Agency Fees — Class R6*		—	@
Other Liabilities		25
Total Liabilities		1,886
Net Assets	$	276,022
Net Assets Consist of:
Paid-in-Capital	$	470,667
Total Accumulated Loss		(194,645	)
Net Assets	$	276,022

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Advantage Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	176,042
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		11,272,369
Net Asset Value, Offering and Redemption Price Per Share	$	15.62
CLASS A:
Net Assets	$	47,742
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		3,187,023
Net Asset Value, Redemption Price Per Share	$	14.98
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.83
Maximum Offering Price Per Share	$	15.81
CLASS L:
Net Assets	$	1,563
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		100,912
Net Asset Value, Offering and Redemption Price Per Share	$	15.48
CLASS C:
Net Assets	$	25,561
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,812,504
Net Asset Value, Offering and Redemption Price Per Share	$	14.10
CLASS R6:*
Net Assets	$	25,114
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,599,944
Net Asset Value, Offering and Redemption Price Per Share	$	15.70

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Advantage Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $23 of Foreign Taxes Withheld)	$	352
Dividends from Security of Affiliated Issuer (Note G)		7
Income from Securities Loaned — Net		2
Total Investment Income		361
Expenses:
Advisory Fees (Note B)		1,567
Sub Transfer Agency Fees — Class I		304
Sub Transfer Agency Fees — Class A		60
Sub Transfer Agency Fees — Class L		1
Sub Transfer Agency Fees — Class C		21
Shareholder Services Fees — Class A (Note D)		91
Distribution and Shareholder Services Fees — Class L (Note D)		9
Distribution and Shareholder Services Fees — Class C (Note D)		208
Administration Fees (Note C)		193
Professional Fees		71
Registration Fees		51
Shareholder Reporting Fees		38
Custodian Fees (Note F)		16
Transfer Agency Fees — Class I (Note E)		5
Transfer Agency Fees — Class A (Note E)		4
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		4
Transfer Agency Fees — Class R6* (Note E)		1
Directors' Fees and Expenses		7
Pricing Fees		2
Interest Expenses		1
Other Expenses		14
Total Expenses		2,669
Reimbursement of Class Specific Expenses — Class I (Note B)		(247	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(13	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(2	)
Distribution Fees — Class L Shares Waived (Note D)		(8	)
Rebate from Morgan Stanley Affiliate (Note G)		(3	)
Net Expenses		2,395
Net Investment Loss		(2,034	)
Realized Loss:
Investments Sold		(67,693	)
Foreign Currency Translation		(—	@)
Net Realized Loss		(67,693	)
Change in Unrealized Appreciation (Depreciation):
Investments		(316,311	)
Foreign Currency Translation		(2	)
Net Change in Unrealized Appreciation (Depreciation)		(316,313	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(384,006	)
Net Decrease in Net Assets Resulting from Operations	$	(386,040	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Advantage Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(2,034	)	$	(8,136	)
Net Realized Gain (Loss)		(67,693	)		156,801
Net Change in Unrealized Appreciation (Depreciation)		(316,313	)		(191,534	)
Net Decrease in Net Assets Resulting from Operations		(386,040	)		(42,869	)
Dividends and Distributions to Shareholders:
Class I		—			(117,112	)
Class A		—			(24,345	)
Class L		—			(827	)
Class C		—			(14,072	)
Class R6*		—			(8,952	)
Total Dividends and Distributions to Shareholders		—			(165,308	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		83,532			278,844
Distributions Reinvested		—			109,929
Redeemed		(219,576	)		(322,743	)
Class A:
Subscribed		8,483			48,973
Distributions Reinvested		—			23,959
Redeemed		(19,533	)		(54,295	)
Class L:
Distributions Reinvested		—			827
Redeemed		(630	)		(1,101	)
Class C:
Subscribed		3,354			17,761
Distributions Reinvested		—			13,699
Redeemed		(12,601	)		(16,135	)
Class R6:*
Subscribed		6,620			16,626
Distributions Reinvested		—			8,952
Redeemed		(1,924	)		(7,061	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(152,275	)		118,235
Total Decrease in Net Assets		(538,315	)		(89,942	)
Net Assets:
Beginning of Period		814,337			904,279
End of Period	$	276,022		$	814,337

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Advantage Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		3,775			6,361
Shares Issued on Distributions Reinvested		—			3,273
Shares Redeemed		(9,665	)		(7,631	)
Net Increase (Decrease) in Class I Shares Outstanding		(5,890	)		2,003
Class A:
Shares Subscribed		386			1,130
Shares Issued on Distributions Reinvested		—			742
Shares Redeemed		(839	)		(1,330	)
Net Increase (Decrease) in Class A Shares Outstanding		(453	)		542
Class L:
Shares Issued on Distributions Reinvested		—			25
Shares Redeemed		(23	)		(27	)
Net Decrease in Class L Shares Outstanding		(23	)		(2	)
Class C:
Shares Subscribed		163			459
Shares Issued on Distributions Reinvested		—			449
Shares Redeemed		(607	)		(417	)
Net Increase (Decrease) in Class C Shares Outstanding		(444	)		491
Class R6:*
Shares Subscribed		272			359
Shares Issued on Distributions Reinvested		—			265
Shares Redeemed		(90	)		(156	)
Net Increase in Class R6 Shares Outstanding		182			468

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Advantage Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	33.57		$	43.28		$	26.06		$	20.98		$	21.45		$	17.47
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.08	)		(0.32	)		(0.19	)		(0.04	)		(0.01	)		0.00	⁽³⁾
Net Realized and Unrealized Gain (Loss)		(17.87	)		(1.61	)		19.64			5.61			0.87			5.57
Total from Investment Operations		(17.95	)		(1.93	)		19.45			5.57			0.86			5.57
Distributions from and/or in Excess of:
Net Realized Gain		—			(7.78	)		(2.23	)		(0.49	)		(1.33	)		(1.59	)
Net Asset Value, End of Period	$	15.62		$	33.57		$	43.28		$	26.06		$	20.98		$	21.45
Total Return⁽⁴⁾		(53.47	)%⁽⁷⁾		(4.45	)%		74.79	%		26.60	%		3.74	%		32.06	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	176,042		$	576,158		$	656,030		$	296,843		$	156,782		$	54,002
Ratio of Expenses Before Expense Limitation		1.00	%⁽⁸⁾		0.88	%		0.89	%		0.93	%		1.01	%		1.09	%
Ratio of Expenses After Expense Limitation		0.85	%⁽⁵⁾⁽⁸⁾		0.85	%⁽⁵⁾		0.84	%⁽⁵⁾		0.84	%⁽⁵⁾		0.84	%⁽⁵⁾		0.84	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.85	%⁽⁵⁾⁽⁸⁾		N/A			N/A			0.84	%⁽⁵⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		(0.70	)%⁽⁵⁾⁽⁸⁾		(0.73	)%⁽⁵⁾		(0.54	)%⁽⁵⁾		(0.15	)%⁽⁵⁾		(0.02	)%⁽⁵⁾		0.02	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		30	%⁽⁷⁾		69	%		73	%		70	%		79	%		65	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Advantage Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	32.26		$	42.02		$	25.42		$	20.54		$	21.10		$	17.26
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.11	)		(0.44	)		(0.28	)		(0.13	)		(0.08	)		(0.06	)
Net Realized and Unrealized Gain (Loss)		(17.17	)		(1.54	)		19.11			5.50			0.85			5.49
Total from Investment Operations		(17.28	)		(1.98	)		18.83			5.37			0.77			5.43
Distributions from and/or in Excess of:
Net Realized Gain		—			(7.78	)		(2.23	)		(0.49	)		(1.33	)		(1.59	)
Net Asset Value, End of Period	$	14.98		$	32.26		$	42.02		$	25.42		$	20.54		$	21.10
Total Return⁽³⁾		(53.56	)%⁽⁶⁾		(4.72	)%		74.27	%		26.20	%		3.37	%		31.64	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	47,742		$	117,424		$	130,176		$	80,743		$	42,959		$	23,715
Ratio of Expenses Before Expense Limitation		1.24	%⁽⁷⁾		1.14	%		N/A			1.21	%		1.29	%		1.39	%
Ratio of Expenses After Expense Limitation		1.20	%⁽⁴⁾⁽⁷⁾		1.14	%⁽⁴⁾		1.15	%⁽⁴⁾		1.19	%⁽⁴⁾		1.17	%⁽⁴⁾		1.19	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.20	%⁽⁴⁾⁽⁷⁾		N/A			N/A			1.19	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(1.04	)%⁽⁴⁾⁽⁷⁾		(1.02	)%⁽⁴⁾		(0.84	)%⁽⁴⁾		(0.50	)%⁽⁴⁾		(0.37	)%⁽⁴⁾		(0.32	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		30	%⁽⁶⁾		69	%		73	%		70	%		79	%		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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Advantage Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	33.31		$	43.04		$	25.95		$	20.92		$	21.42		$	17.46
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.09	)		(0.36	)		(0.21	)		(0.06	)		(0.05	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		(17.74	)		(1.59	)		19.53			5.58			0.88			5.57
Total from Investment Operations		(17.83	)		(1.95	)		19.32			5.52			0.83			5.55
Distributions from and/or in Excess of:
Net Realized Gain		—			(7.78	)		(2.23	)		(0.49	)		(1.33	)		(1.59	)
Net Asset Value, End of Period	$	15.48		$	33.31		$	43.04		$	25.95		$	20.92		$	21.42
Total Return⁽³⁾		(53.53	)%⁽⁶⁾		(4.54	)%		74.65	%		26.44	%		3.61	%		31.96	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,563		$	4,120		$	5,391		$	4,363		$	3,751		$	4,077
Ratio of Expenses Before Expense Limitation		1.76	%⁽⁷⁾		1.65	%		1.66	%		1.69	%		1.82	%		1.87	%
Ratio of Expenses After Expense Limitation		0.99	%⁽⁴⁾⁽⁷⁾		0.94	%⁽⁴⁾		0.95	%⁽⁴⁾		0.95	%⁽⁴⁾		0.98	%⁽⁴⁾		0.96	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.99	%⁽⁴⁾⁽⁷⁾		N/A			N/A			0.95	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(0.84	)%⁽⁴⁾⁽⁷⁾		(0.82	)%⁽⁴⁾		(0.64	)%⁽⁴⁾		(0.25	)%⁽⁴⁾		(0.21	)%⁽⁴⁾		(0.10	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		30	%⁽⁶⁾		69	%		73	%		70	%		79	%		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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Advantage Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	30.48		$	40.44		$	24.68		$	20.10		$	20.82		$	17.16
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.18	)		(0.71	)		(0.50	)		(0.29	)		(0.24	)		(0.20	)
Net Realized and Unrealized Gain (Loss)		(16.20	)		(1.47	)		18.49			5.36			0.85			5.45
Total from Investment Operations		(16.38	)		(2.18	)		17.99			5.07			0.61			5.25
Distributions from and/or in Excess of:
Net Realized Gain		—			(7.78	)		(2.23	)		(0.49	)		(1.33	)		(1.59	)
Net Asset Value, End of Period	$	14.10		$	30.48		$	40.44		$	24.68		$	20.10		$	20.82
Total Return⁽³⁾		(53.74	)%⁽⁶⁾		(5.41	)%		73.10	%		25.27	%		2.64	%		30.77	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	25,561		$	68,793		$	71,419		$	42,054		$	32,706		$	11,835
Ratio of Expenses Before Expense Limitation		1.93	%⁽⁷⁾		1.84	%		N/A			1.93	%		2.00	%		2.10	%
Ratio of Expenses After Expense Limitation		1.93	%⁽⁴⁾⁽⁷⁾		1.84	%⁽⁴⁾		1.85	%⁽⁴⁾		1.90	%⁽⁴⁾		1.88	%⁽⁴⁾		1.90	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.93	%⁽⁴⁾⁽⁷⁾		N/A			N/A			1.90	%⁽⁴⁾		N/A			N/A
Ratio of Net Investment Loss		(1.78	)%⁽⁴⁾⁽⁷⁾		(1.72	)%⁽⁴⁾		(1.55	)%⁽⁴⁾		(1.20	)%⁽⁴⁾		(1.08	)%⁽⁴⁾		(1.01	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		30	%⁽⁶⁾		69	%		73	%		70	%		79	%		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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Advantage Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽²⁾			2019⁽²⁾			2018⁽²⁾			2017⁽²⁾
Net Asset Value, Beginning of Period	$	33.74		$	43.41		$	26.12		$	21.02		$	21.49		$	17.48
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		(0.07	)		(0.29	)		(0.16	)		(0.03	)		(0.01	)		0.01
Net Realized and Unrealized Gain (Loss)		(17.97	)		(1.60	)		19.68			5.62			0.87			5.59
Total from Investment Operations		(18.04	)		(1.89	)		19.52			5.59			0.86			5.60
Distributions from and/or in Excess of:
Net Realized Gain		—			(7.78	)		(2.23	)		(0.49	)		(1.33	)		(1.59	)
Net Asset Value, End of Period	$	15.70		$	33.74		$	43.41		$	26.12		$	21.02		$	21.49
Total Return⁽⁴⁾		(53.47	)%⁽⁷⁾		(4.36	)%		74.93	%		26.64	%		3.74	%		32.22	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	25,114		$	47,842		$	41,263		$	28,983		$	26,601		$	17,542
Ratio of Expenses Before Expense Limitation		0.82	%⁽⁸⁾		0.77	%		N/A%			0.83	%		0.93	%		1.01	%
Ratio of Expenses After Expense Limitation		0.81	%⁽⁵⁾⁽⁸⁾		0.77	%⁽⁵⁾		0.79	%⁽⁵⁾		0.80	%⁽⁵⁾		0.80	%⁽⁵⁾		0.80	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.81	%⁽⁵⁾⁽⁸⁾		N/A			N/A			0.80	%⁽⁵⁾		N/A			N/A
Ratio of Net Investment Income (Loss)		(0.65	)%⁽⁵⁾⁽⁸⁾		(0.65	)%⁽⁵⁾		(0.47	)%⁽⁵⁾		(0.10	)%⁽⁵⁾		(0.04	)%⁽⁵⁾		0.07	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		30	%⁽⁷⁾		69	%		73	%		70	%		79	%		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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Advantage Portfolio. The Fund seeks long-term capital appreciation.

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 Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Advantage Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary represented approximately $2,371,000 or approximately 0.86% of the total net assets of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good

faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Capital Markets	$	1,886	$	—	$	—	$	1,886
Entertainment		17,011		—		—		17,011
Health Care Equipment & Supplies		2,864		—		—		2,864
Health Care Technology		15,916		—		—		15,916
Hotels, Restaurants & Leisure		5,893		—		—		5,893
Information Technology Services		58,977		10,536		—		69,513
Interactive Media & Services		19,530		—		—		19,530
Internet & Direct Marketing Retail		33,853		—		—		33,853
Life Sciences Tools & Services		2,385		—		—		2,385
Pharmaceuticals		19,845		—		—		19,845
Road & Rail		15,934		—		—		15,934

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)
Semiconductors & Semiconductor Equipment	$	16,831	$	—	$	—	$	16,831
Software		48,161		—		—		48,161
Total Common Stocks		259,086		10,536		—		269,622
Investment Company		2,069		—		—		2,069
Call Options Purchased		—		218		—		218
Short-Term Investments
Investment Company		5,273		—		—		5,273
Total Assets	$	266,428	$	10,754	$	—	$	277,182

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated Statement of
Assets and Liabilities
Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

218

(a)

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

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(1,785	)(b)

(b) Amounts are included in Realized 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)	$	855	(c)

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At June 30, 2022, 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(d) (000)			Liabilities(d) (000)
Purchased Options	$	218	(a)	$	—

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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(e) (000)			Net Amount (not less than $0) (000)
Goldman Sachs International	$	214	$	—	$	(214	)	$	0
JP Morgan Chase Bank NA		4		—		(4	)		0
Total	$	218	$	—	$	(218	)	$	0

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

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					664,615,000

value of the loaned securities. The collateral is marked-tomarket 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.

At June 30, 2022, the Fund did not have any outstanding securities on loan.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $750 million				Next $750 million				Over $1.5 billion
	0.65	%			0.60	%			0.55	%

For the six months ended June 30, 2022, the advisory fee rate (net of rebate) was equivalent to an annual effective rate of 0.65% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.85% for Class I shares, 1.20% for Class A shares, 0.99% for Class L shares, 1.95% for Class C shares and 0.81% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $263,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

The Company 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 Distributor has agreed to waive for at least one year from the date of the Fund's prospectus or until such time as the Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate, the 12b-1 fees on Class L shares of the Fund to the extent it exceeds 0.04% of the average daily net assets of such shares on an annualized basis. For the six months ended June 30, 2022, this waiver amounted to approximately $8,000.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class C shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $150,201,000 and $288,051,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $3,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	14,500			$	142,904			$	152,131			$	7

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	5,273

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	44,653	$	120,655	$	18,463	$	26,038

Permanent differences, due to nondeductible offering costs related to the Subsidiary, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	6			$	(6	)

At December 31, 2021, 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)
$	—			$	48,322

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$	—			$	379

K. Market Risk and Risks Relating to Certain Financial Instruments:

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 below its peer group average for the one- and three-year periods but better than 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 lower than its peer group average, actual management fee was higher than but close to 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 total expense ratio were acceptable and (ii) management fee was competitive with its peer group average.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIADVSAN
4877689 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

US Core Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					6
Statements of Changes in Net Assets					7
Financial Highlights					8
Notes to Financial Statements					12
Investment Advisory Agreement Approval					18
Liquidity Risk Management Program					20
U.S. Customer Privacy Notice					21
Director and Officer Information					24

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

US Core Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
US Core Portfolio Class I	$	1,000.00	$	784.50	$	1,020.83	$	3.54	$	4.01		0.80	%
US Core Portfolio Class A		1,000.00		783.50		1,019.49		4.73		5.36		1.07
US Core Portfolio Class C		1,000.00		781.00		1,015.87		7.95		9.00		1.80
US Core Portfolio Class R6⁽¹⁾		1,000.00		784.60		1,021.08		3.32		3.76		0.75

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

US Core Portfolio

	Shares		Value (000)
Common Stocks (99.3%)
Banks (10.4%)
First Republic Bank		55,884	$	8,058
JPMorgan Chase & Co.		37,408		4,213
SVB Financial Group (a)		14,881		5,878
				18,149
Building Products (0.6%)
Fortune Brands Home & Security, Inc.		16,637		996
Capital Markets (4.2%)
Ameriprise Financial, Inc.		30,733		7,305
Commercial Services & Supplies (4.1%)
Waste Management, Inc.		46,141		7,059
Distributors (1.3%)
Pool Corp.		6,350		2,230
Electric Utilities (3.1%)
NextEra Energy, Inc.		68,427		5,300
Equity Real Estate Investment Trusts (REITs) (7.2%)
SBA Communications Corp. REIT		17,329		5,546
STORE Capital Corp. REIT		269,033		7,016
				12,562
Food & Staples Retailing (3.5%)
Costco Wholesale Corp.		12,835		6,152
Food Products (1.2%)
McCormick & Co. Inc.		25,307		2,107
Health Care Equipment & Supplies (0.6%)
Edwards Lifesciences Corp. (a)		10,913		1,038
Health Care Technology (1.0%)
Veeva Systems, Inc., Class A (a)		8,845		1,752
Hotels, Restaurants & Leisure (6.6%)
Domino's Pizza, Inc.		2,346		914
McDonald's Corp.		25,115		6,200
MGM Resorts International		100,338		2,905
Planet Fitness, Inc., Class A (a)		20,446		1,391
				11,410
Household Durables (0.3%)
Lennar Corp., Class A		8,562		604
Information Technology Services (2.3%)
Jack Henry & Associates, Inc.		5,129		923
Mastercard, Inc., Class A		9,977		3,148
				4,071
Insurance (5.8%)
Brown & Brown, Inc.		85,379		4,981
Progressive Corp.		43,220		5,025
				10,006
Interactive Media & Services (6.7%)
Alphabet, Inc., Class A (a)		5,330		11,616
Life Sciences Tools & Services (7.0%)
Danaher Corp.		31,301		7,935
West Pharmaceutical Services, Inc.		14,128		4,272
				12,207

	Shares		Value (000)
Oil, Gas & Consumable Fuels (6.5%)
Chevron Corp.		68,063	$	9,854
Valero Energy Corp.		13,896		1,477
				11,331
Personal Products (1.8%)
Estee Lauder Cos., Inc. , Class A		12,487		3,180
Software (8.9%)
Microsoft Corp.		60,235		15,470
Specialty Retail (2.5%)
Home Depot, Inc.		10,908		2,992
RH (a)		6,297		1,336
				4,328
Tech Hardware, Storage & Peripherals (8.9%)
Apple, Inc.		113,247		15,483
Textiles, Apparel & Luxury Goods (1.4%)
Lululemon Athletica, Inc. (a)		8,985		2,449
Trading Companies & Distributors (3.4%)
United Rentals, Inc. (a)		24,110		5,857
Total Common Stocks (Cost $185,037)				172,662
Short-Term Investment (0.9%)
Investment Company (0.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $1,678)		1,678,179		1,678
Total Investments (100.2%) (Cost $186,715) (b)				174,340
Liabilities in Excess of Other Assets (–0.2%)				(407	)
Net Assets (100.0%)			$	173,933

(a) Non-income producing security.

(b) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $4,525,000 and the aggregate gross unrealized depreciation is approximately $16,900,000, resulting in net unrealized depreciation of approximately $12,375,000.

REIT Real Estate Investment Trust.

Portfolio Composition

Classification	Percentage of Total Investments
Others*		32.2	%
Banks		10.4
Tech Hardware, Storage & Peripherals		8.9
Software		8.9
Equity Real Estate Investment Trusts (REITs)		7.2
Life Sciences Tools & Services		7.0
Interactive Media & Services		6.7
Hotels, Restaurants & Leisure		6.5
Oil, Gas & Consumable Fuels		6.5
Insurance		5.7
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.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

US Core Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $185,037)	$	172,662
Investment in Security of Affiliated Issuer, at Value (Cost $1,678)		1,678
Total Investments in Securities, at Value (Cost $186,715)		174,340
Receivable for Investments Sold		441
Receivable for Fund Shares Sold		230
Dividends Receivable		111
Receivable from Affiliate		—	@
Other Assets		149
Total Assets		175,271
Liabilities:
Payable for Fund Shares Redeemed		665
Payable for Investments Purchased		365
Payable for Advisory Fees		227
Payable for Shareholder Services Fees — Class A		7
Payable for Distribution and Shareholder Services Fees — Class C		27
Payable for Professional Fees		27
Payable for Administration Fees		12
Payable for Custodian Fees		3
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class C		—-	@
Payable for Transfer Agency Fees — Class R6*		—	@
Other Liabilities		4
Total Liabilities		1,338
Net Assets	$	173,933
Net Assets Consist of:
Paid-in-Capital	$	190,428
Total Accumulated Loss		(16,495	)
Net Assets	$	173,933
CLASS I:
Net Assets	$	107,499
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,572,326
Net Asset Value, Offering and Redemption Price Per Share	$	19.29
CLASS A:
Net Assets	$	34,751
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,818,469
Net Asset Value, Redemption Price Per Share	$	19.11
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.06
Maximum Offering Price Per Share	$	20.17
CLASS C:
Net Assets	$	31,675
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,721,893
Net Asset Value, Offering and Redemption Price Per Share	$	18.40
CLASS R6:*
Net Assets	$	8
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		435
Net Asset Value, Offering and Redemption Price Per Share	$	19.31

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

US Core Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers	$	1,065
Dividends from Security of Affiliated Issuer (Note G)		3
Total Investment Income		1,068
Expenses:
Advisory Fees (Note B)		549
Shareholder Services Fees — Class A (Note D)		46
Distribution and Shareholder Services Fees — Class C (Note D)		169
Administration Fees (Note C)		73
Professional Fees		60
Sub Transfer Agency Fees — Class I		35
Sub Transfer Agency Fees — Class A		12
Sub Transfer Agency Fees — Class C		6
Registration Fees		39
Shareholder Reporting Fees		11
Custodian Fees (Note F)		10
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Directors' Fees and Expenses		3
Pricing Fees		1
Other Expenses		8
Total Expenses		1,026
Waiver of Advisory Fees (Note B)		(66	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(9	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Net Expenses		948
Net Investment Income		120
Realized Loss:
Investments Sold		(4,078	)
Change in Unrealized Appreciation (Depreciation):
Investments		(41,035	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(45,113	)
Net Decrease in Net Assets Resulting from Operations	$	(44,993	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

US Core Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	120		$	37
Net Realized Gain (Loss)		(4,078	)		327
Net Change in Unrealized Appreciation (Depreciation)		(41,035	)		19,892
Net Increase (Decrease) in Net Assets Resulting from Operations		(44,993	)		20,256
Dividends and Distributions to Shareholders:
Class I		—			(40	)
Class A		—			—
Class R6*		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(40	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		86,641			91,162
Distributions Reinvested		—			40
Redeemed		(61,579	)		(15,252	)
Class A:
Subscribed		20,649			31,955
Redeemed		(11,717	)		(7,229	)
Class C:
Subscribed		22,934			18,088
Redeemed		(5,651	)		(842	)
Class R6:*
Subscribed		11			229
Distributions Reinvested		—			—	@
Redeemed		(264	)		(20	)
Net Increase in Net Assets Resulting from Capital Share Transactions		51,024			118,131
Total Increase in Net Assets		6,031			138,347
Net Assets:
Beginning of Period		167,902			29,555
End of Period	$	173,933		$	167,902
(1) Capital Share Transactions:
Class I:
Shares Subscribed		3,908			4,036
Shares Issued on Distributions Reinvested		—			2
Shares Redeemed		(2,821	)		(679	)
Net Increase in Class I Shares Outstanding		1,087			3,359
Class A:
Shares Subscribed		942			1,424
Shares Redeemed		(546	)		(325	)
Net Increase in Class A Shares Outstanding		396			1,099
Class C:
Shares Subscribed		1,047			810
Shares Redeemed		(286	)		(41	)
Net Increase in Class C Shares Outstanding		761			769
Class R6:*
Shares Subscribed		1			12
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(12	)		(1	)
Net Increase (Decrease) in Class R6 Shares Outstanding		(11	)		11

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amounts is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

US Core Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	24.59		$	18.09		$	14.61		$	10.89		$	12.41		$	10.45
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.04			0.05			0.06			0.09			0.11			0.08
Net Realized and Unrealized Gain (Loss)		(5.34	)		6.46			3.47			3.82			(1.47	)		1.94
Total from Investment Operations		(5.30	)		6.51			3.53			3.91			(1.36	)		2.02
Distributions from and/or in Excess of:
Net Investment Income		—			(0.01	)		—			(0.09	)		(0.05	)		(0.05	)
Net Realized Gain		—			—			(0.05	)		(0.10	)		(0.11	)		—
Paid-in-Capital		—			—			—			—			—			(0.01	)
Total Distributions		—			(0.01	)		(0.05	)		(0.19	)		(0.16	)		(0.06	)
Net Asset Value, End of Period	$	19.29		$	24.59		$	18.09		$	14.61		$	10.89		$	12.41
Total Return⁽²⁾		(21.55	)%⁽⁵⁾		35.99	%		24.20	%		36.01	%		(11.00	)%		19.33	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	107,499		$	110,286		$	20,377		$	13,086		$	7,532		$	8,965
Ratio of Expenses Before Expense Limitation		0.89	%⁽⁶⁾		1.07	%		1.97	%		2.09	%		2.31	%		2.78	%
Ratio of Expenses After Expense Limitation		0.80	%⁽³⁾⁽⁶⁾		0.80	%⁽³⁾		0.80	%⁽³⁾		0.78	%⁽³⁾		0.80	%⁽³⁾		0.78	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.80	%⁽³⁾⁽⁶⁾		0.80	%⁽³⁾		0.79	%⁽³⁾		N/A			N/A			N/A
Ratio of Net Investment Income		0.37	%⁽³⁾⁽⁶⁾		0.21	%⁽³⁾		0.42	%⁽³⁾		0.71	%⁽³⁾		0.86	%⁽³⁾		0.68	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁴⁾⁽⁶⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾
Portfolio Turnover Rate		11	%⁽⁵⁾		26	%		54	%		69	%		60	%		57	%

(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.

(4) Amount is less than 0.005%.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

US Core Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	24.39		$	17.99		$	14.58		$	10.86		$	12.38		$	10.44
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.01			(0.01	)		0.01			0.05			0.07			0.04
Net Realized and Unrealized Gain (Loss)		(5.29	)		6.41			3.45			3.82			(1.47	)		1.92
Total from Investment Operations		(5.28	)		6.40			3.46			3.87			(1.40	)		1.96
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.05	)		(0.01	)		(0.01	)
Net Realized Gain		—			—			(0.05	)		(0.10	)		(0.11	)		—
Paid-in-Capital		—			—			—			—			—			(0.01	)
Total Distributions		—			—			(0.05	)		(0.15	)		(0.12	)		(0.02	)
Net Asset Value, End of Period	$	19.11		$	24.39		$	17.99		$	14.58		$	10.86		$	12.38
Total Return⁽²⁾		(21.65	)%⁽⁵⁾		35.58	%		23.77	%		35.68	%		(11.35	)%		18.80	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	34,751		$	34,693		$	5,807		$	3,393		$	1,833		$	1,874
Ratio of Expenses Before Expense Limitation		1.14	%⁽⁶⁾		1.36	%		2.29	%		2.46	%		2.68	%		3.23	%
Ratio of Expenses After Expense Limitation		1.07	%⁽³⁾⁽⁶⁾		1.09	%⁽³⁾		1.12	%⁽³⁾		1.15	%⁽³⁾		1.15	%⁽³⁾		1.15	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.07	%⁽³⁾⁽⁶⁾		1.09	%⁽³⁾		1.11	%⁽³⁾		N/A			N/A			N/A
Ratio of Net Investment Income (Loss)		0.09	%⁽³⁾⁽⁶⁾		(0.06	)%⁽³⁾		0.07	%⁽³⁾		0.34	%⁽³⁾		0.55	%⁽³⁾		0.31	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁴⁾⁽⁶⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾
Portfolio Turnover Rate		11	%⁽⁵⁾		26	%		54	%		69	%		60	%		57	%

(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.

(4) Amount is less than 0.005%.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

US Core Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	23.56		$	17.51		$	14.30		$	10.70		$	12.28		$	10.41
Income (Loss) from Investment Operations:
Net Investment Loss⁽¹⁾		(0.06	)		(0.17	)		(0.10	)		(0.05	)		(0.03	)		(0.05	)
Net Realized and Unrealized Gain (Loss)		(5.10	)		6.22			3.36			3.75			(1.44	)		1.92
Total from Investment Operations		(5.16	)		6.05			3.26			3.70			(1.47	)		1.87
Distributions from and/or in Excess of:
Net Realized Gain		—			—			(0.05	)		(0.10	)		(0.11	)		—
Total Distributions		—			—			(0.05	)		(0.10	)		(0.11	)		—
Net Asset Value, End of Period	$	18.40		$	23.56		$	17.51		$	14.30		$	10.70		$	12.28
Total Return⁽²⁾		(21.90	)%⁽⁵⁾		34.55	%		22.84	%		34.50	%		(11.94	)%		17.96	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	31,675		$	22,638		$	3,353		$	2,489		$	1,563		$	1,831
Ratio of Expenses Before Expense Limitation		1.87	%⁽⁶⁾		2.12	%		3.07	%		3.23	%		3.44	%		3.94	%
Ratio of Expenses After Expense Limitation		1.80	%⁽³⁾⁽⁶⁾		1.84	%⁽³⁾		1.90	%⁽³⁾		1.90	%⁽³⁾		1.90	%⁽³⁾		1.90	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.80	%⁽³⁾⁽⁶⁾		1.84	%⁽³⁾		1.90	%⁽³⁾		N/A			N/A			N/A
Ratio of Net Investment Loss		(0.62	)%⁽³⁾⁽⁶⁾		(0.80	)%⁽³⁾		(0.68	)%⁽³⁾		(0.39	)%⁽³⁾		(0.22	)%⁽³⁾		(0.43	)%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁴⁾⁽⁶⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾		0.00	%⁽⁴⁾
Portfolio Turnover Rate		11	%⁽⁵⁾		26	%		54	%		69	%		60	%		57	%

(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.

(4) Amount is less than 0.005%.

(5) Not annualized.

(6) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

US Core Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	24.61		$	18.10		$	14.61		$	10.88		$	12.41		$	10.45
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.03			0.06			0.07			0.10			0.12			0.08
Net Realized and Unrealized Gain (Loss)		(5.33	)		6.47			3.47			3.83			(1.48	)		1.94
Total from Investment Operations		(5.30	)		6.53			3.54			3.93			(1.36	)		2.02
Distributions from and/or in Excess of:
Net Investment Income		—			(0.02	)		—			(0.10	)		(0.06	)		(0.01	)
Net Realized Gain		—			—			(0.05	)		(0.10	)		(0.11	)		—
Paid-in-Capital		—			—			—			—			—			(0.05	)
Total Distributions		—			(0.02	)		(0.05	)		(0.20	)		(0.17	)		(0.06	)
Net Asset Value, End of Period	$	19.31		$	24.61		$	18.10		$	14.61		$	10.88		$	12.41
Total Return⁽³⁾		(21.54	)%⁽⁶⁾		36.06	%		24.27	%		36.17	%		(11.04	)%		19.37	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	8		$	285		$	18		$	26		$	11		$	12
Ratio of Expenses Before Expense Limitation		2.40	%⁽⁷⁾		2.20	%		13.73	%		16.90	%		16.44	%		19.96	%
Ratio of Expenses After Expense Limitation		0.75	%⁽⁴⁾⁽⁷⁾		0.75	%⁽⁴⁾		0.75	%⁽⁴⁾		0.75	%⁽⁴⁾		0.75	%⁽⁴⁾		0.75	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.75	%⁽⁴⁾⁽⁷⁾		0.75	%⁽⁴⁾		0.75	%⁽⁴⁾		N/A			N/A			N/A
Ratio of Net Investment Income		0.28	%⁽⁴⁾⁽⁷⁾		0.25	%⁽⁴⁾		0.50	%⁽⁴⁾		0.74	%⁽⁴⁾		0.92	%⁽⁴⁾		0.71	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		11	%⁽⁶⁾		26	%		54	%		69	%		60	%		57	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the US Core Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; 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.

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Banks	$	18,149	$	—	$	—	$	18,149
Building Products		996		—		—		996
Capital Markets		7,305		—		—		7,305
Commercial Services & Supplies		7,059		—		—		7,059
Distributors		2,230		—		—		2,230
Electric Utilities		5,300		—		—		5,300
Equity Real Estate Investment Trusts (REITs)		12,562		—		—		12,562
Food & Staples Retailing		6,152		—		—		6,152
Food Products		2,107		—		—		2,107
Health Care Equipment & Supplies		1,038		—		—		1,038
Health Care Technology		1,752		—		—		1,752
Hotels, Restaurants & Leisure		11,410		—		—		11,410
Household Durables		604		—		—		604
Information Technology Services		4,071		—		—		4,071
Insurance		10,006		—		—		10,006

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Interactive Media & Services	$	11,616	$	—	$	—	$	11,616
Life Sciences Tools & Services		12,207		—		—		12,207
Oil, Gas & Consumable Fuels		11,331		—		—		11,331
Personal Products		3,180		—		—		3,180
Software		15,470		—		—		15,470
Specialty Retail		4,328		—		—		4,328
Tech Hardware, Storage & Peripherals		15,483		—		—		15,483
Textiles, Apparel & Luxury Goods		2,449		—		—		2,449
Trading Companies & Distributors		5,857		—		—		5,857
Total Common Stocks		172,662		—		—		172,662
Short-Term Investment
Investment Company		1,678		—		—		1,678
Total Assets	$	174,340	$	—	$	—	$	174,340

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

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

4. 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.

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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $750 million				Next $750 million				Over $1.5 billion
0.60%				0.55%				0.50%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.53% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual 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, 1.90% for Class C shares and 0.75% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $66,000 of advisory fees were waived and approximately $10,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other

than long-term U.S. Government securities and short-term investments were approximately $73,648,000 and $19,307,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $2,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	4,635			$	60,478			$	63,435			$	3

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	1,678

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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

2021 Distributions Paid From:		2020 Distributions Paid From:
Ordinary Income (000)	Long-Term Capital Gain (000)	Ordinary Income (000)	Long-Term Capital Gain (000)
$40	$—	$—	$83

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 December 31, 2021.

At December 31, 2021, 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)
$29				$116

During the year ended December 31, 2021, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $456,000.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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. 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIUSCPSAN
4879425 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

U.S. Focus Real Estate Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					6
Statements of Changes in Net Assets					7
Financial Highlights					9
Notes to Financial Statements					13
Investment Advisory Agreement Approval					19
Liquidity Risk Management Program					21
U.S. Customer Privacy Notice					22
Director and Officer Information					25

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in U.S. Focus Real Estate Portfolio (the "Fund") performed during the latest six-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

U.S. Focus Real Estate Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
U.S. Focus Real Estate Portfolio Class I	$	1,000.00	$	796.50	$	1,020.38	$	3.96	$	4.46		0.89	%
U.S. Focus Real Estate Portfolio Class A		1,000.00		795.00		1,018.60		5.56		6.26		1.25
U.S. Focus Real Estate Portfolio Class C		1,000.00		791.90		1,014.88		8.89		9.99		2.00
U.S. Focus Real Estate Portfolio Class R6⁽¹⁾		1,000.00		796.60		1,020.58		3.79		4.26		0.85

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

U.S. Focus Real Estate Portfolio

	Shares		Value (000)
Common Stocks (97.3%)
Apartments (14.7%)
AvalonBay Communities, Inc. REIT		1,134	$	220
Equity Residential REIT		3,064		222
Mid-America Apartment Communities, Inc. REIT		1,305		228
				670
Data Centers (7.7%)
Digital Realty Trust, Inc. REIT		2,561		333
GDS Holdings Ltd. ADR (China) (a)		628		21
				354
Free Standing (6.6%)
Agree Realty Corp. REIT		3,068		221
NETSTREIT Corp. REIT		4,174		79
				300
Health Care (7.8%)
Welltower, Inc. REIT		4,326		356
Industrial (13.3%)
Americold Realty Trust REIT		4,738		142
Duke Realty Corp. REIT		2,469		136
Prologis, Inc. REIT		2,804		330
				608
Lodging/Resorts (2.5%)
Boyd Gaming Corp.		847		42
Park Hotels & Resorts, Inc. REIT		5,438		74
				116
Manufactured Homes (2.5%)
Sun Communities, Inc. REIT		720		115
Office (1.9%)
SL Green Realty Corp. REIT		1,863		86
Self Storage (10.4%)
Extra Space Storage, Inc. REIT		953		162
Public Storage REIT		1,002		313
				475
Shopping Centers (9.7%)
Brixmor Property Group, Inc. REIT		7,538		152
RPT Realty REIT		13,068		128
SITE Centers Corp. REIT		11,990		162
				442
Specialty (20.2%)
American Tower Corp. REIT		2,353		601
Iron Mountain, Inc. REIT		2,097		102
SBA Communications Corp. REIT		680		218
				921
Total Common Stocks (Cost $4,824)				4,443

	Shares		Value (000)
Short-Term Investment (2.5%)
Investment Company (2.5%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G) (Cost $122)		112,064	$	112
Total Investments (99.8%) (Cost $4,936) (b)				4,555
Other Assets in Excess of Liabilities (0.2%)				8
Net Assets (100.0%)			$	4,563

(a) Non-income producing security.

(b) At June 30, 2022, the aggregate cost for federal income tax purposes is approximately $4,936,000. The aggregate gross unrealized appreciation is approximately $19,000 and the aggregate gross unrealized depreciation is approximately $400,000, resulting in net unrealized depreciation of approximately $381,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

Portfolio Composition

Classification	Percentage of Total Investments
Specialty		20.2	%
Apartments		14.7
Industrial		13.4
Self Storage		10.4
Shopping Centers		9.7
Other*		9.4
Health Care		7.8
Data Centers		7.8
Free Standing		6.6
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.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Focus Real Estate Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $4,815)	$	4,443
Investment in Security of Affiliated Issuer, at Value (Cost $112)		112
Total Investments in Securities, at Value (Cost $4,927)		4,555
Foreign Currency, at Value (Cost —@)		—	@
Due from Adviser		76
Prepaid Offering Costs		41
Dividends Receivable		15
Receivable from Affiliate		—	@
Other Assets		28
Total Assets		4,715
Liabilities:
Payable for Professional Fees		73
Payable for Offering Costs		60
Payable for Custodian Fees		2
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*		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Administration Fees		—	@
Other Liabilities		17
Total Liabilities		152
Net Assets	$	4,563
Net Assets Consist of:
Paid-in-Capital	$	5,028
Total Accumulated Loss		(465	)
Net Assets	$	4,563
CLASS I:
Net Assets	$	4,426
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		487,653
Net Asset Value, Offering and Redemption Price Per Share	$	9.08
CLASS A:
Net Assets	$	46
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,019
Net Asset Value, Redemption Price Per Share	$	9.07
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.50
Maximum Offering Price Per Share	$	9.57
CLASS C:
Net Assets	$	45
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,001
Net Asset Value, Offering and Redemption Price Per Share	$	9.05
CLASS R6:*
Net Assets	$	46
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,028
Net Asset Value, Offering and Redemption Price Per Share	$	9.08

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Focus Real Estate Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $—@ of foreign Taxes Withheld)	$	72
Dividends from Security of Affiliated Issuer (Note G)		—	@
Income from Securities Loaned — Net		—	@
Total Investment Income		72
Expenses:
Professional Fees		83
Offering Costs		80
Advisory Fees (Note B)		18
Shareholder Reporting Fees		15
Registration Fees		6
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Custodian Fees (Note F)		2
Administration Fees (Note C)		2
Directors' Fees and Expenses		1
Pricing Fees		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Other Expenses		2
Total Expenses		214
Expenses Reimbursed by Adviser (Note B)		(171	)
Waiver of Advisory Fees (Note B)		(18	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		22
Net Investment Income		50
Realized Loss:
Investments Sold		(167	)
Foreign Currency Translation		—	@
Net Realized Loss		(167	)
Change in Unrealized Appreciation (Depreciation):
Investments		(1,052	)
Foreign Currency Translation		—	@
Net Change in Unrealized Appreciation (Depreciation)		(1,052	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(1,219	)
Net Decrease in Net Assets Resulting from Operations	$	(1,169	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

U.S. Focus Real Estate Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Period from September 30, 2021^ to December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	50		$	12
Net Realized Gain (Loss)		(167	)		38
Net Change in Unrealized Appreciation (Depreciation)		(1,052	)		680
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,169	)		730
Dividends and Distributions to Shareholders:
Class I		(15	)		(15	)
Class A		(—	@)		(—	@)
Class C		(—	@)		(—	@)
Class R6*		(—	@)		(—	@)
Total Dividends and Distributions to Shareholders		(15	)		(15	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		18			4,850
Distributions Reinvested		15			15
Redeemed		(16	)		—
Class A:
Subscribed		—			50
Distributions Reinvested		—	@		—	@
Class C:
Subscribed		—			50
Distributions Reinvested		—	@		—	@
Class R6:*
Subscribed		—			50
Distributions Reinvested		—	@		—	@
Net Increase in Net Assets Resulting from Capital Share Transactions		17			5,015
Total Increase (Decrease) in Net Assets		(1,167	)		5,730
Net Assets:
Beginning of Period		5,730			—
End of Period	$	4,563		$	5,730

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

U.S. Focus Real Estate Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Period from September 30, 2021^ to December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		2			485
Shares Issued on Distributions Reinvested		1			1
Shares Redeemed		(2	)		—
Net Increase in Class I Shares Outstanding		1			486
Class A:
Shares Subscribed		—			5
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class A Shares Outstanding		—	@@		5
Class C:
Shares Subscribed		—			5
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class C Shares Outstanding		—	@@		5
Class R6:*
Shares Subscribed		—			5
Shares Issued on Distributions Reinvested		—	@@		—	@@
Net Increase in Class R6 Shares Outstanding		—	@@		5

^ Commencement of Operations.

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

U.S. Focus Real Estate Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period from September 30, 2021⁽¹⁾ to December 31, 2021
Net Asset Value, Beginning of Period	$	11.43		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.10			0.02
Net Realized and Unrealized Gain (Loss)		(2.42	)		1.44
Total from Investment Operations		(2.32	)		1.46
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.03	)
Net Asset Value, End of Period	$	9.08		$	11.43
Total Return⁽³⁾		(20.35	)%⁽⁴⁾		14.62	%⁽⁴⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,426		$	5,559
Ratio of Expenses Before Expense Limitation		8.26	%⁽⁵⁾		8.45	%⁽⁵⁾
Ratio of Expenses After Expense Limitation		0.89	%⁽⁵⁾⁽⁶⁾		0.89	%⁽⁵⁾⁽⁶⁾
Ratio of Net Investment Income		1.95	%⁽⁵⁾⁽⁶⁾		0.92	%⁽⁵⁾⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾⁽⁷⁾
Portfolio Turnover Rate		51	%⁽⁴⁾		26	%⁽⁴⁾

(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) Not annualized.

(5) Annualized.

(7) Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

U.S. Focus Real Estate Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period from September 30, 2021⁽¹⁾ to December 31, 2021
Net Asset Value, Beginning of Period	$	11.43		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.08			0.02
Net Realized and Unrealized Gain (Loss)		(2.42	)		1.43
Total from Investment Operations		(2.34	)		1.45
Distributions from and/or in Excess of:
Net Investment Income		(0.02	)		(0.02	)
Net Asset Value, End of Period	$	9.07		$	11.43
Total Return⁽³⁾		(20.50	)%⁽⁴⁾		14.51	%⁽⁴⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	46		$	57
Ratio of Expenses Before Expense Limitation		12.25	%⁽⁵⁾		11.91	%⁽⁵⁾
Ratio of Expenses After Expense Limitation		1.25	%⁽⁵⁾⁽⁶⁾		1.25	%⁽⁵⁾⁽⁶⁾
Ratio of Net Investment Income		1.59	%⁽⁵⁾⁽⁶⁾		0.56	%⁽⁵⁾⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾⁽⁷⁾
Portfolio Turnover Rate		51	%⁽⁴⁾		26	%⁽⁴⁾

(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) Not annualized.

(5) Annualized.

(7) Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

U.S. Focus Real Estate Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period from September 30, 2021⁽¹⁾ to December 31, 2021
Net Asset Value, Beginning of Period	$	11.43		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		0.04			(0.01	)
Net Realized and Unrealized Gain (Loss)		(2.42	)		1.44
Total from Investment Operations		(2.38	)		1.43
Distributions from and/or in Excess of:
Net Investment Income		(0.00	)⁽³⁾		(0.00	)⁽³⁾
Net Asset Value, End of Period	$	9.05		$	11.43
Total Return⁽⁴⁾		(20.81	)%⁽⁵⁾		14.30	%⁽⁵⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	45		$	57
Ratio of Expenses Before Expense Limitation		13.02	%⁽⁶⁾		12.67	%⁽⁶⁾
Ratio of Expenses After Expense Limitation		2.00	%⁽⁶⁾⁽⁷⁾		2.00	%⁽⁶⁾⁽⁷⁾
Ratio of Net Investment Income (Loss)		0.84	%⁽⁶⁾⁽⁷⁾		(0.19	)%⁽⁶⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		51	%⁽⁵⁾		26	%⁽⁵⁾

(1) Commencement of Operations.

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

(3) Amount is less than $0.005 per share.

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

(5) Not annualized.

(6) Annualized.

(8) Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

U.S. Focus Real Estate Portfolio

	Class R6⁽¹⁾
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period from September 30, 2021⁽²⁾ to December 31, 2021
Net Asset Value, Beginning of Period	$	11.43		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income⁽³⁾		0.10			0.03
Net Realized and Unrealized Gain (Loss)		(2.42	)		1.43
Total from Investment Operations		(2.32	)		1.46
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.03	)
Net Asset Value, End of Period	$	9.08		$	11.43
Total Return⁽⁴⁾		(20.34	)%⁽⁵⁾		14.63	%⁽⁵⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	46		$	57
Ratio of Expenses Before Expense Limitation		11.98	%⁽⁶⁾		11.65	%⁽⁶⁾
Ratio of Expenses After Expense Limitation		0.85	%⁽⁶⁾⁽⁷⁾		0.85	%⁽⁶⁾⁽⁷⁾
Ratio of Net Investment Income		1.99	%⁽⁶⁾⁽⁷⁾		0.95	%⁽⁶⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		51	%⁽⁵⁾		26	%⁽⁵⁾

(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) Not annualized.

(6) Annualized.

(8) Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the U.S. Focus Real Estate Portfolio. The Fund seeks to provide current income and long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

assumptions market participants would use in valuing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Apartments	$	670	$	—	$	—	$	670
Data Centers		354		—		—		354
Free Standing		300		—		—		300
Health Care		356		—		—		356
Industrial		608		—		—		608
Lodging/Resorts		116		—		—		116
Manufactured Homes		115		—		—		115

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Office	$	86	$	—	$	—	$	86
Self Storage		475		—		—		475
Shopping Centers		442		—		—		442
Specialty		921		—		—		921
Total Common Stocks		4,443		—		—		4,443
Short-Term Investment
Investment Company		112		—		—		112
Total Assets	$	4,555	$	—	$	—	$	4,555

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

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

5. 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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific

expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.70	%			0.65	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.90% for Class I shares, 1.25% for Class A shares, 2.00% for Class C shares and 0.85% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $18,000 of advisory fees were waived and approximately $174,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $2,626,000 and $2,647,000, respectively. There were no purchases and sales of long-term

U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	28			$	740			$	656			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	112

@ Amount is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. The tax year ended December 31, 2021 remains subject to examination by taxing authorities.

2021 Distributions Paid From: Ordinary Income (000)
$	15

Permanent differences, due to a nondeductible expense, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	4			$	(4	)

At December 31, 2021, 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)
$	36			$	4

J. Other: At June 30, 2022, the Fund did not have record owners of 10% or greater.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

because of these factors for an extended period, the Fund's investment results may be adversely affected.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

The Board considered the following factors at the time of approval of the contracts which occurred prior to commencement of operations.

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Fund

Economies of Scale

The Board considered the growth prospects of the Fund and the structure of the proposed management fee schedule, which includes breakpoints. The Board considered that the Fund's potential growth was uncertain and concluded that it would be premature to consider economies of scale as a factor in approving the Management Agreement at the present time.

Profitability of the Adviser and Affiliates

Since the Fund had not begun operations and had not paid any fees to the Adviser, the Board concluded that this was not a factor that needed to be considered at the present time.

Other Benefits of the Relationship

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

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 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 enter into this relationship with the Adviser.

Other Factors and Current Trends

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 future shareholders to approve the Management Agreement, which will remain in effect for two years and thereafter must be approved annually by the Board of the Fund if it is to continue in effect. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIUSFRESAN
4879445 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

U.S. Real Estate Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					6
Statement of Operations					8
Statements of Changes in Net Assets					9
Financial Highlights					11
Notes to Financial Statements					17
Investment Advisory Agreement Approval					25
Liquidity Risk Management Program					27
U.S. Customer Privacy Notice					28
Director and Officer Information					31

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in U.S. Real Estate Portfolio (the "Fund") performed during the latest six-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

U.S. Real Estate Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
U.S. Real Estate Portfolio Class I	$	1,000.00	$	788.90	$	1,020.33	$	3.99	$	4.51		0.90	%
U.S. Real Estate Portfolio Class A		1,000.00		788.10		1,018.70		5.45		6.16		1.23
U.S. Real Estate Portfolio Class L		1,000.00		785.90		1,016.12		7.75		8.75		1.75
U.S. Real Estate Portfolio Class C		1,000.00		785.00		1,014.88		8.85		9.99		2.00
U.S. Real Estate Portfolio Class R6⁽¹⁾		1,000.00		789.90		1,020.68		3.68		4.16		0.83
U.S. Real Estate Portfolio Class IR		1,000.00		789.10		1,020.68		3.68		4.16		0.83

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

U.S. Real Estate Portfolio

	Shares		Value (000)
Common Stocks (98.0%)
Apartments (16.5%)
AvalonBay Communities, Inc. REIT		5,644	$	1,096
Equity Residential REIT		23,991		1,733
Mid-America Apartment Communities, Inc. REIT		9,196		1,606
UDR, Inc. REIT		32,483		1,496
				5,931
Data Centers (8.5%)
Digital Realty Trust, Inc. REIT		22,694		2,946
GDS Holdings Ltd. ADR (China) (a)		3,740		125
				3,071
Free Standing (8.2%)
Agree Realty Corp. REIT		8,699		628
NETSTREIT Corp. REIT		22,963		433
Realty Income Corp. REIT		27,751		1,894
				2,955
Health Care (12.1%)
Healthpeak Properties, Inc. REIT		42,002		1,088
Ventas, Inc. REIT		21,220		1,092
Welltower, Inc. REIT		26,410		2,175
				4,355
Industrial (15.0%)
Americold Realty Trust, Inc. REIT		18,447		554
Duke Realty Corp. REIT		15,231		837
Exeter Industrial Value Fund, LP (a)(b)(c)		7,905,000		324
ProLogis, Inc. REIT		29,657		3,489
Rexford Industrial Realty, Inc. REIT		3,717		214
				5,418
Lodging/Resorts (2.9%)
Boyd Gaming Corp.		5,479		272
Host Hotels & Resorts, Inc. REIT		33,037		518
Park Hotels & Resorts, Inc. REIT		19,358		263
				1,053
Manufactured Homes (2.9%)
Sun Communities, Inc. REIT		6,471		1,031
Office (2.3%)
Kilroy Realty Corp. REIT		6,049		317
SL Green Realty Corp. REIT (d)		11,229		518
				835
Regional Malls (1.9%)
Simon Property Group, Inc. REIT		7,362		699
Self Storage (11.5%)
Extra Space Storage, Inc. REIT		6,411		1,091
Life Storage, Inc. REIT		6,560		732
Public Storage REIT		7,409		2,317
				4,140
Shopping Centers (7.8%)
Brixmor Property Group, Inc. REIT		42,396		857
Kite Realty Group Trust REIT		39,504		683
RPT Realty REIT		44,180		434

	Shares		Value (000)
SITE Centers Corp. REIT		60,665	$	817
				2,791
Single Family Homes (3.1%)
Invitation Homes, Inc. REIT		31,119		1,107
Specialty (5.3%)
American Tower Corp. REIT		1,807		462
Iron Mountain, Inc. REIT		16,505		804
Outfront Media, Inc. REIT		18,550		314
VICI Properties, Inc. REIT		10,759		321
				1,901
Total Common Stocks (Cost $36,036)				35,287
Short-Term Investments (3.1%)
Securities held as Collateral on Loaned Securities (1.4%)
Investment Company (1.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G)		418,057		418
	Face Amount (000)
Repurchase Agreements (0.3%)
HSBC Securities USA, Inc. (1.50%, dated 6/30/22, due 7/1/22; proceeds $33; fully collateralized by U.S. Government obligations; 0.00% — 3.63% due 2/15/23 — 5/15/32; valued at $33)	$	33		33
Merrill Lynch & Co., Inc. (1.46%, dated 6/30/22, due 7/1/22; proceeds $63; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $65)		63		63
				96
Total Securities held as Collateral on Loaned Securities (Cost $514)				514
	Shares
Investment Company (1.7%)
Morgan Stanley Institutional Liquidity Funds — Treasury Portfolio — Institutional Class (See Note G) (Cost $588)		588,244		588
Total Short-Term Investments (Cost $1,102)				1,102
Total Investments (101.1%) (Cost $37,138) Including $518 of Securities Loaned (e)				36,389
Liabilities in Excess of Other Assets (–1.1%)				(392	)
Net Assets (100.0%)			$	35,997

(a) Non-income producing security.

(b) At June 30, 2022, the Fund held a fair valued security at approximately $324,000, representing 0.9% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments (cont'd)

U.S. Real Estate Portfolio

(c) Restricted security valued at fair value and not registered under the Securities Act of 1933. Exeter Industrial Value Fund, LP was acquired between 11/07 — 4/11 and has a current cost basis of $0. At June 30, 2022, this security had an aggregate market value of approximately $324,000, representing 0.9% of net assets

(d) All or a portion of this security was on loan at June 30, 2022.

(e) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $2,778,000 and the aggregate gross unrealized depreciation is approximately $3,527,000, resulting in net unrealized depreciation of approximately $749,000.

ADR American Depositary Receipt.

REIT Real Estate Investment Trust.

Portfolio Composition*

Classification	Percentage of Total Investments
Apartments		16.5	%
Industrial		15.1
Others**		14.9
Health Care		12.1
Self Storage		11.5
Data Centers		8.6
Free Standing		8.2
Shopping Centers		7.8
Specialty		5.3
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as collateral on Loaned Securities) as of June 30, 2022.

** 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, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Real Estate Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $36,132)	$	35,383
Investment in Security of Affiliated Issuer, at Value (Cost $1,006)		1,006
Total Investments in Securities, at Value (Cost $37,138)		36,389
Foreign Currency, at Value (Cost $3)		3
Cash from Securities Lending		28
Dividends Receivable		99
Receivable for Fund Shares Sold		20
Receivable from Affiliate		—	@
Receivable from Securities Lending Income		—	@
Other Assets		88
Total Assets		36,627
Liabilities:
Collateral on Securities Loaned, at Value		542
Payable for Professional Fees		31
Payable for Sub Transfer Agency Fees — Class I		8
Payable for Sub Transfer Agency Fees — Class A		2
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class I		4
Payable for Transfer Agency Fees — Class A		2
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		1
Payable for Transfer Agency Fees — Class IR		(—	@)
Payable for Custodian Fees		4
Payable for Shareholder Services Fees — Class A		2
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Advisory Fees		2
Payable for Administration Fees		2
Payable for Fund Shares Redeemed		—	@
Other Liabilities		27
Total Liabilities		630
Net Assets	$	35,997
Net Assets Consist of:
Paid-in-Capital	$	34,606
Total Distributable Earnings		1,391
Net Assets	$	35,997

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Real Estate Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	24,095
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,570,520
Net Asset Value, Offering and Redemption Price Per Share	$	9.37
CLASS A:
Net Assets	$	9,821
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,102,324
Net Asset Value, Redemption Price Per Share	$	8.91
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.49
Maximum Offering Price Per Share	$	9.40
CLASS L:
Net Assets	$	1,648
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		185,593
Net Asset Value, Offering and Redemption Price Per Share	$	8.88
CLASS C:
Net Assets	$	276
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		31,342
Net Asset Value, Offering and Redemption Price Per Share	$	8.82
CLASS R6:*
Net Assets	$	149
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		15,873
Net Asset Value, Offering and Redemption Price Per Share	$	9.38
CLASS IR:
Net Assets	$	8
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		835
Net Asset Value, Offering and Redemption Price Per Share	$	9.37
⁽¹⁾ Including: Securities on Loan, at Value:	$	518

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Real Estate Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers	$	829
Dividends from Security of Affiliated Issuer (Note G)		1
Income from Securities Loaned — Net		—	@
Total Investment Income		830
Expenses:
Advisory Fees (Note B)		154
Professional Fees		57
Registration Fees		32
Shareholder Services Fees — Class A (Note D)		15
Distribution and Shareholder Services Fees — Class L (Note D)		7
Distribution and Shareholder Services Fees — Class C (Note D)		2
Sub Transfer Agency Fees — Class I		14
Sub Transfer Agency Fees — Class A		5
Sub Transfer Agency Fees — Class L		1
Sub Transfer Agency Fees — Class C		—	@
Administration Fees (Note C)		18
Transfer Agency Fees — Class I (Note E)		7
Transfer Agency Fees — Class A (Note E)		4
Transfer Agency Fees — Class L (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6^* (Note E)		2
Transfer Agency Fees — Class IR (Note E)		1
Shareholder Reporting Fees		10
Custodian Fees (Note F)		4
Directors' Fees and Expenses		3
Pricing Fees		1
Other Expenses		4
Total Expenses		343
Waiver of Advisory Fees (Note B)		(102	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(11	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		226
Net Investment Income		604
Realized Loss:
Investments Sold		(56	)
Change in Unrealized Appreciation (Depreciation):
Investments		(11,576	)
Foreign Currency Translation		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		(11,576	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(11,632	)
Net Decrease in Net Assets Resulting from Operations	$	(11,028	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

U.S. Real Estate Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	604		$	189
Net Realized Gain (Loss)		(56	)		15,451
Net Change in Unrealized Appreciation (Depreciation)		(11,576	)		(267	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(11,028	)		15,373
Dividends and Distributions to Shareholders:
Class I		(88	)		(813	)
Class A		(27	)		(295	)
Class L		(2	)		(35	)
Class C		(—	@)		(6	)
Class R6*		(1	)		(5	)
Class IR		(—	@)		(—	@)
Total Dividends and Distributions to Shareholders		(118	)		(1,154	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		10,498			3,876
Distributions Reinvested		86			800
Redeemed		(10,586	)		(16,439	)
Class A:
Subscribed		430			1,672
Distributions Reinvested		27			290
Redeemed		(997	)		(3,443	)
Class L:
Exchanged		40			43
Distributions Reinvested		2			35
Redeemed		(44	)		(111	)
Class C:
Subscribed		50			248
Distributions Reinvested		—	@		6
Redeemed		(61	)		(195	)
Class R6:*
Subscribed		27			40
Distributions Reinvested		1			5
Redeemed		(37	)		(10	)
Class IR:
Distributions Reinvested		—	@		—	@
Net Decrease in Net Assets Resulting from Capital Share Transactions		(564	)		(13,183	)
Total Increase (Decrease) in Net Assets		(11,710	)		1,036
Net Assets:
Beginning of Period		47,707			46,671
End of Period	$	35,997		$	47,707

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

U.S. Real Estate Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		911			373
Shares Issued on Distributions Reinvested		7			73
Shares Redeemed		(1,027	)		(1,601	)
Net Decrease in Class I Shares Outstanding		(109	)		(1,155	)
Class A:
Shares Subscribed		41			171
Shares Issued on Distributions Reinvested		2			28
Shares Redeemed		(98	)		(360	)
Net Decrease in Class A Shares Outstanding		(55	)		(161	)
Class L:
Shares Exchanged		4			4
Shares Issued on Distributions Reinvested		—	@@		3
Shares Redeemed		(5	)		(11	)
Net Decrease in Class L Shares Outstanding		(1	)		(4	)
Class C:
Shares Subscribed		5			26
Shares Issued on Distributions Reinvested		—	@@		1
Shares Redeemed		(6	)		(19	)
Net Increase (Decrease) in Class C Shares Outstanding		(1	)		8
Class R6:*
Shares Subscribed		2			4
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(3	)		(1	)
Net Increase (Decrease) in Class R6 Shares Outstanding		(1	)		3
Class IR:
Shares Issued on Distributions Reinvested		—	@@		—	@@

* Effective April 29, 2022 Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

U.S. Real Estate Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	11.91		$	8.79		$	11.08		$	10.82		$	15.24		$	17.21
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.15			0.05			0.13			0.26			0.34			0.37
Net Realized and Unrealized Gain (Loss)		(2.66	)		3.35			(2.18	)		1.69			(1.33	)		0.16
Total from Investment Operations		(2.51	)		3.40			(2.05	)		1.95			(0.99	)		0.53
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.12	)		(0.20	)		(0.40	)		(0.34	)		(0.26	)
Net Realized Gain		—			(0.16	)		—			(1.29	)		(3.09	)		(2.24	)
Paid-in-Capital		—			—			(0.04	)		—			—			—
Total Distributions		(0.03	)		(0.28	)		(0.24	)		(1.69	)		(3.43	)		(2.50	)
Net Asset Value, End of Period	$	9.37		$	11.91		$	8.79		$	11.08		$	10.82		$	15.24
Total Return⁽²⁾		(21.11	)%⁽⁶⁾		38.96	%		(18.05	)%		18.40	%		(8.44	)%		3.31	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	24,095		$	31,909		$	33,708		$	134,856		$	177,690		$	331,637
Ratio of Expenses Before Expense Limitation		1.43	%⁽⁷⁾		1.42	%		1.19	%		1.02	%		1.02	%		1.02	%
Ratio of Expenses After Expense Limitation		0.90	%⁽³⁾⁽⁷⁾		0.90	%⁽³⁾		0.90	%⁽³⁾		0.90	%⁽³⁾		0.95	%⁽³⁾⁽⁴⁾		1.00	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.90	%⁽³⁾⁽⁷⁾		0.90	%⁽³⁾		0.90	%⁽³⁾		N/A			0.95	%⁽³⁾		1.00	%⁽³⁾
Ratio of Net Investment Income		2.86	%⁽³⁾⁽⁷⁾		0.50	%⁽³⁾		1.52	%⁽³⁾		2.18	%⁽³⁾		2.44	%⁽³⁾		2.19	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		46	%⁽⁶⁾		132	%		39	%		21	%		39	%		43	%

(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.

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.90% for Class I shares. Prior to July 1, 2018, the maximum ratio was 1.00% for Class I shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

U.S. Real Estate Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	11.33		$	8.38		$	10.56		$	10.38		$	14.76		$	16.74
Income (Loss) from Investment Operations:
Net Investment Income⁽¹⁾		0.13			0.03			0.09			0.22			0.29			0.31
Net Realized and Unrealized Gain (Loss)		(2.53	)		3.18			(2.06	)		1.61			(1.28	)		0.15
Total from Investment Operations		(2.40	)		3.21			(1.97	)		1.83			(0.99	)		0.46
Distributions from and/or in Excess of:
Net Investment Income		(0.02	)		(0.10	)		(0.17	)		(0.36	)		(0.30	)		(0.20	)
Net Realized Gain		—			(0.16	)		—			(1.29	)		(3.09	)		(2.24	)
Paid-in-Capital		—			—			(0.04	)		—			—			—
Total Distributions		(0.02	)		(0.26	)		(0.21	)		(1.65	)		(3.39	)		(2.44	)
Net Asset Value, End of Period	$	8.91		$	11.33		$	8.38		$	10.56		$	10.38		$	14.76
Total Return⁽²⁾		(21.19	)%⁽⁶⁾		38.46	%		(18.28	)%		18.02	%		(8.71	)%		2.98	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9,821		$	13,121		$	11,043		$	32,596		$	34,459		$	55,640
Ratio of Expenses Before Expense Limitation		1.70	%⁽⁷⁾		1.66	%		1.52	%		1.31	%		1.30	%		N/A
Ratio of Expenses After Expense Limitation		1.23	%⁽³⁾⁽⁷⁾		1.18	%⁽³⁾		1.25	%⁽³⁾		1.22	%⁽³⁾		1.26	%⁽³⁾⁽⁴⁾		1.34	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.23	%⁽³⁾⁽⁷⁾		1.18	%⁽³⁾		1.25	%⁽³⁾		N/A			1.26	%⁽³⁾		1.34	%⁽³⁾
Ratio of Net Investment Income		2.58	%⁽³⁾⁽⁷⁾		0.26	%⁽³⁾		1.09	%⁽³⁾		1.91	%⁽³⁾		2.14	%⁽³⁾		1.87	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		46	%⁽⁶⁾		132	%		39	%		21	%		39	%		43	%

(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.

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.25% for Class A shares. Prior to July 1, 2018, the maximum ratio was 1.35% for Class A shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

U.S. Real Estate Portfolio

	Class L
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	11.31		$	8.36		$	10.55		$	10.37		$	14.74		$	16.73
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.10			(0.03	)		0.09			0.16			0.23			0.22
Net Realized and Unrealized Gain (Loss)		(2.52	)		3.18			(2.11	)		1.61			(1.28	)		0.15
Total from Investment Operations		(2.42	)		3.15			(2.02	)		1.77			(1.05	)		0.37
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)		(0.04	)		(0.13	)		(0.30	)		(0.23	)		(0.12	)
Net Realized Gain		—			(0.16	)		—			(1.29	)		(3.09	)		(2.24	)
Paid-in-Capital		—			—			(0.04	)		—			—			—
Total Distributions		(0.01	)		(0.20	)		(0.17	)		(1.59	)		(3.32	)		(2.36	)
Net Asset Value, End of Period	$	8.88		$	11.31		$	8.36		$	10.55		$	10.37		$	14.74
Total Return⁽²⁾		(21.41	)%⁽⁶⁾		37.78	%		(18.77	)%		17.43	%		(9.16	)%		2.37	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,648		$	2,101		$	1,586		$	2,164		$	2,057		$	2,787
Ratio of Expenses Before Expense Limitation		2.26	%⁽⁷⁾		2.31	%		2.11	%		1.88	%		1.84	%		1.89	%
Ratio of Expenses After Expense Limitation		1.75	%⁽³⁾⁽⁷⁾		1.75	%⁽³⁾		1.75	%⁽³⁾		1.75	%⁽³⁾		1.79	%⁽³⁾⁽⁴⁾		1.85	%⁽³⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.75	%⁽³⁾⁽⁷⁾		1.75	%⁽³⁾		1.75	%⁽³⁾		N/A			1.79	%⁽³⁾		1.85	%⁽³⁾
Ratio of Net Investment Income (Loss)		2.06	%⁽³⁾⁽⁷⁾		(0.30	)%⁽³⁾		1.41	%⁽³⁾		1.42	%⁽³⁾		1.71	%⁽³⁾		1.37	%⁽³⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾		0.00	%⁽⁵⁾
Portfolio Turnover Rate		46	%⁽⁶⁾		132	%		39	%		21	%		39	%		43	%

(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.

(4) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.75% for Class L shares. Prior to July 1, 2018, the maximum ratio was 1.85% for Class L shares.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

U.S. Real Estate Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	11.24		$	8.31		$	10.48		$	10.31		$	14.68		$	16.67
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		0.09			(0.05	)		0.09			0.14			0.19			0.20
Net Realized and Unrealized Gain (Loss)		(2.51	)		3.16			(2.10	)		1.59			(1.29	)		0.13
Total from Investment Operations		(2.42	)		3.11			(2.01	)		1.73			(1.10	)		0.33
Distributions from and/or in Excess of:
Net Investment Income		(0.00	)⁽³⁾		(0.02	)		(0.12	)		(0.27	)		(0.18	)		(0.08	)
Net Realized Gain		—			(0.16	)		—			(1.29	)		(3.09	)		(2.24	)
Paid-in-Capital		—			—			(0.04	)		—			—			—
Total Distributions		(0.00	)⁽³⁾		(0.18	)		(0.16	)		(1.56	)		(3.27	)		(2.32	)
Net Asset Value, End of Period	$	8.82		$	11.24		$	8.31		$	10.48		$	10.31		$	14.68
Total Return⁽²⁾		(21.50	)%⁽⁷⁾		37.50	%		(18.91	)%		17.07	%		(9.47	)%		2.14	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	276		$	365		$	206		$	232		$	338		$	486
Ratio of Expenses Before Expense Limitation		3.16	%⁽⁸⁾		3.28	%		3.39	%		2.92	%		2.75	%		2.46	%
Ratio of Expenses After Expense Limitation		2.00	%⁽⁴⁾⁽⁸⁾		2.00	%⁽⁴⁾		2.00	%⁽⁴⁾		2.00	%⁽⁴⁾		2.05	%⁽⁴⁾⁽⁵⁾		2.10	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.00	%⁽⁴⁾⁽⁸⁾		2.00	%⁽⁴⁾		2.00	%⁽⁴⁾		N/A			2.05	%⁽⁴⁾		2.10	%⁽⁴⁾
Ratio of Net Investment Income (Loss)		1.80	%⁽⁴⁾⁽⁸⁾		(0.54	)%⁽⁴⁾		1.20	%⁽⁴⁾		1.18	%⁽⁴⁾		1.39	%⁽⁴⁾		1.21	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		46	%⁽⁷⁾		132	%		39	%		21	%		39	%		43	%

(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) Amount is less than $0.005.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 2.00% for Class C shares. Prior to July 1, 2018, the maximum ratio was 2.10% for Class C shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

U.S. Real Estate Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	11.91		$	8.79		$	11.08		$	10.82		$	15.24		$	17.22
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.16			0.07			0.09			0.25			0.28			0.39
Net Realized and Unrealized Gain (Loss)		(2.66	)		3.34			(2.13	)		1.71			(1.26	)		0.14
Total from Investment Operations		(2.50	)		3.41			(2.04	)		1.96			(0.98	)		0.53
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.13	)		(0.21	)		(0.41	)		(0.35	)		(0.27	)
Net Realized Gain		—			(0.16	)		—			(1.29	)		(3.09	)		(2.24	)
Paid-in-Capital		—			—			(0.04	)		—			—			—
Total Distributions		(0.03	)		(0.29	)		(0.25	)		(1.70	)		(3.44	)		(2.51	)
Net Asset Value, End of Period	$	9.38		$	11.91		$	8.79		$	11.08		$	10.82		$	15.24
Total Return⁽³⁾		(21.01	)%⁽⁷⁾		39.06	%		(17.98	)%		18.48	%		(8.36	)%		3.32	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	149		$	201		$	121		$	12,307		$	29,523		$	196,536
Ratio of Expenses Before Expense Limitation		3.88	%⁽⁸⁾		4.18	%		1.20	%		1.04	%		0.97	%		N/A
Ratio of Expenses After Expense Limitation		0.83	%⁽⁴⁾⁽⁸⁾		0.83	%⁽⁴⁾		0.83	%⁽⁴⁾		0.83	%⁽⁴⁾		0.91	%⁽⁴⁾⁽⁵⁾		0.93	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		0.83	%⁽⁴⁾⁽⁸⁾		0.83	%⁽⁴⁾		0.83	%⁽⁴⁾		N/A			0.91	%⁽⁴⁾		0.93	%⁽⁴⁾
Ratio of Net Investment Income		2.97	%⁽⁴⁾⁽⁸⁾		0.64	%⁽⁴⁾		1.00	%⁽⁴⁾		2.09	%⁽⁴⁾		1.98	%⁽⁴⁾		2.33	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾		0.00	%⁽⁶⁾
Portfolio Turnover Rate		46	%⁽⁷⁾		132	%		39	%		21	%		39	%		43	%

(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.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.83% for Class R6 shares. Prior to July 1, 2018, the maximum ratio was 0.93% for Class R6 shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

U.S. Real Estate Portfolio

	Class IR
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 15, 2018⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			December 31, 2018
Net Asset Value, Beginning of Period	$	11.91		$	8.79		$	11.08		$	10.82		$	14.74
Income (Loss) from Investment Operations:
Net Investment Income⁽²⁾		0.16			0.05			0.20			0.33			0.43
Net Realized and Unrealized Gain (Loss)		(2.67	)		3.36			(2.24	)		1.63			(0.98	)
Total from Investment Operations		(2.51	)		3.41			(2.04	)		1.96			(0.55	)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)		(0.13	)		(0.21	)		(0.41	)		(0.28	)
Net Realized Gain		—			(0.16	)		—			(1.29	)		(3.09	)
Paid-in-Capital		—			—			(0.04	)		—			—
Total Distributions		(0.03	)		(0.29	)		(0.25	)		(1.70	)		(3.37	)
Net Asset Value, End of Period	$	9.37		$	11.91		$	8.79		$	11.08		$	10.82
Total Return⁽³⁾		(21.09	)%⁽⁷⁾		39.06	%		(17.98	)%		18.48	%		(5.73	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	8		$	10		$	7		$	9		$	7
Ratio of Expenses Before Expense Limitation		21.49	%⁽⁸⁾		26.04	%		30.10	%		23.80	%		19.12	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.83	%⁽⁴⁾⁽⁸⁾		0.83	%⁽⁴⁾		0.83	%⁽⁴⁾		0.83	%⁽⁴⁾		0.84	%^(4)(5)(8)
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		0.83	%⁽⁴⁾⁽⁸⁾		0.83	%⁽⁴⁾		0.83	%⁽⁴⁾		N/A			0.84	%⁽⁴⁾⁽⁸⁾
Ratio of Net Investment Income		2.98	%⁽⁴⁾⁽⁸⁾		0.46	%⁽⁴⁾		2.40	%⁽⁴⁾		2.70	%⁽⁴⁾		4.23	%⁽⁴⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		N/A			0.00	%⁽⁶⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		46	%⁽⁷⁾		132	%		39	%		21	%		39	%

(1) Commencement of Offering.

(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.

(5) Effective July 1, 2018, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.83% for Class IR shares. Prior to July 1, 2018, the maximum ratio was 0.93% for Class IR shares.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the U.S. Real Estate Portfolio. The Fund seeks to provide above average current income and long-term capital appreciation by investing primarily in equity securities of companies in the U.S. real estate industry, including real estate investment trusts ("REITs"). The Fund has a capital subscription commitment to an investee company for this same purpose, the details of which are disclosed in the Unfunded Commitments note.

one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

The Fund invests a significant portion of its assets in securities of REITs. The market's perception of prospective declines in private real estate values and other financial assets may result in increased volatility of market prices that can negatively impact the valuation of certain issuers held by the Fund.

2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Apartments	$	5,931	$	—	$	—	$	5,931
Data Centers		3,071		—		—		3,071
Free Standing		2,955		—		—		2,955
Health Care		4,355		—		—		4,355
Industrial		5,094		—		324		5,418
Lodging/Resorts		1,053		—		—		1,053
Manufactured Homes		1,031		—		—		1,031
Office		835		—		—		835
Regional Malls		699		—		—		699
Self Storage		4,140		—		—		4,140
Shopping Centers		2,791		—		—		2,791
Single Family Homes		1,107		—		—		1,107
Specialty		1,901		—		—		1,901
Total Common Stocks		34,963		—		324		35,287
Short-Term Investments
Investment Company		1,006		—		—		1,006
Repurchase Agreements		—		96		—		96
Total Short-Term Investments		1,006		96		—		1,102
Total Assets	$	35,969	$	96	$	324	$	36,389

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	$	523
Purchases		—
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		(199	)
Realized gains (losses)		—
Ending Balance	$	324
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022	$	(199	)

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 June 30, 2022:

Fair Value at
June 30,
2022
(000)

Valuation
Technique

Unobservable
Input

Common
Stock

324

Reported Capital balance,
adjustments for NAV
practical expedient;
including adjustments
for subsequent
Capital Calls, Return
of Capital and Significant
Market Changes between
last Capital Statement and
Valuation Date

Adjusted Capital
Balance

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.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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 transactions for the period is reflected in the Statement of Operations.

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 June 30, 2022:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	518	(a)	$	—	$	(518	)(b)(c)	$	0

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

(b) The Fund received cash collateral of approximately $542,000, of which approximately $514,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $28,000, which is not reflected in the Portfolio of Investments.

The following table displays a breakdown of transactions accounted for as secured borrowings, the gross obligations by class of collateral pledged and the remaining

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

contractual maturity of those transactions as of June 30, 2022:

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	$	542	$	—	$	—	$	—	$	542
Total Borrowings	$	542	$	—	$	—	$	—	$	542
Gross amount of recognized liabilities for securities lending transactions									$	542

5. Unfunded Commitments: Subject to the terms of a Subscription Agreement between the Fund and Exeter Industrial Value Fund LP, the Fund has made a subscription commitment of $8,500,000 for which it will receive 8,500,000 shares of common stock. As of June 30, 2022, Exeter Industrial Value Fund LP has drawn down approximately $7,905,000, which represents 93.0% of the commitment.

6. Restricted Securities: The Fund invests in unregistered or otherwise restricted securities. The term "restricted securities" refers to securities that are unregistered or are held by control persons of the issuer and securities that are subject to contractual restrictions on their resale. As a result, restricted securities may be more difficult to value and the Fund may have difficulty disposing of such assets either in a timely manner or for a reasonable price. In order to dispose of an unregistered security, the Fund, where it has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the decision is made to sell the security and the time the security is registered so that the Fund can sell it. Contractual restrictions on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and the acquirer of the securities. The Fund would, in either case, bear market risks during that period. Restricted securities are identified in the Portfolio of Investments.

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

9. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Fund is informed of such dividends) net of applicable withholding taxes. 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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $500 million				Next $500 million				Over $1 billion
	0.70	%			0.65	%			0.60	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.24% of the Fund's average daily net assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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 0.90% for Class I shares, 1.25% for Class A shares, 1.75% for Class L shares, 2.00% for Class C shares, 0.83% for Class R6 shares and 0.83% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $102,000 of advisory fees were waived and approximately $15,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $20,232,000 and $20,644,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	261			$	12,890			$	12,145			$	1

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	1,006

2021 Distributions Paid From:						2020 Distributions Paid From:
Ordinary Income (000)		Paid-in- Capital (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Paid-in- Capital (000)		Long-Term Capital Gain (000)
$	1,154	$	—	$	—	$	1,906	$	358	$	16

Permanent differences, due to a prior year tax return adjustment, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	219			$	(219	)

At December 31, 2021, 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)
$	2,541			$	—

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

During the year ended December 31, 2021, the Fund utilized capital loss carryforwards for U.S. federal income tax purposes of approximately $9,164,000.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

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").

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, 2021, 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 the 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIUSREASAN
4877736 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Vitality Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
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
Investment Advisory Agreement Approval					19
Liquidity Risk Management Program					21
U.S. Customer Privacy Notice					22
Director and Officer Information					25

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Vitality Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Vitality Portfolio Class I	$	1,000.00	$	603.00	$	1,020.13	$	3.74	$	4.71		0.94	%
Vitality Portfolio Class A		1,000.00		602.00		1,018.40		5.12		6.46		1.29
Vitality Portfolio Class C		1,000.00		600.00		1,014.68		8.09		10.19		2.04
Vitality Portfolio Class R6⁽¹⁾		1,000.00		603.00		1,020.38		3.54		4.46		0.89

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Vitality Portfolio

	Shares		Value (000)
Common Stocks (94.7%)
Biotechnology (27.7%)
4D Molecular Therapeutics, Inc. (a)		937	$	7
Abcam PLC ADR (United Kingdom) (a)(b)		1,842		27
Alnylam Pharmaceuticals, Inc. (a)		357		52
Argenx SE ADR (Belgium) (a)		251		95
Beam Therapeutics, Inc. (a)		1,380		53
C4 Therapeutics, Inc. (a)		1,843		14
Century Therapeutics, Inc. (a)		1,701		14
Exact Sciences Corp. (a)		949		37
Fate Therapeutics, Inc. (a)		1,393		35
Graphite Bio, Inc. (a)		2,349		7
Intellia Therapeutics, Inc. (a)		1,338		69
Moderna, Inc. (a)		338		48
Relay Therapeutics, Inc. (a)		1,391		23
Vertex Pharmaceuticals, Inc. (a)		248		70
				551
Health Care Equipment & Supplies (11.3%)
Abbott Laboratories		315		34
Align Technology, Inc. (a)		184		43
DexCom, Inc. (a)		548		41
IDEXX Laboratories, Inc. (a)		69		24
Intuitive Surgical, Inc. (a)		244		49
iRhythm Technologies, Inc. (a)		99		11
Quotient Ltd. (a)		23,436		6
ViewRay, Inc. (a)		5,872		16
				224
Health Care Providers & Services (10.8%)
Agilon health, Inc. (a)		2,744		60
Guardant Health, Inc. (a)		1,227		50
UnitedHealth Group, Inc.		203		105
				215
Health Care Technology (9.0%)
Doximity, Inc., Class A (a)(b)		1,286		45
Inspire Medical Systems, Inc. (a)		308		56
Schrodinger, Inc. (a)		1,061		28
Veeva Systems, Inc., Class A (a)		250		49
				178
Internet & Direct Marketing Retail (1.9%)
Chewy, Inc., Class A (a)(b)		1,083		38
Life Sciences Tools & Services (21.9%)
10X Genomics, Inc., Class A (a)		1,638		74
AbCellera Biologics, Inc. (Canada) (a)(b)		1,994		21
Evotec SE ADR (Germany) (a)		3,282		39
Illumina, Inc. (a)		135		25
MaxCyte, Inc. (a)		6,316		30
NanoString Technologies, Inc. (a)		2,157		27
Rapid Micro Biosystems, Inc., Class A (a)		2,465		11
Seer, Inc. (a)		1,472		13
SomaLogic, Inc. (a)		3,418		16
Stevanato Group SpA (Italy)		2,302		36

	Shares		Value (000)
Thermo Fisher Scientific, Inc.		189	$	103
West Pharmaceutical Services, Inc.		133		40
				435
Pharmaceuticals (12.1%)
ATAI Life Sciences NV (a)		7,043		26
Eli Lilly & Co.		293		95
GH Research PLC (a)		1,000		10
Royalty Pharma PLC, Class A		1,366		57
Zoetis, Inc.		302		52
				240
Total Common Stocks (Cost $2,969)				1,881
Short-Term Investments (11.1%)
Securities held as Collateral on Loaned Securities (4.0%)
Investment Company (3.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		65,435		65
	Face Amount (000)
Repurchase Agreements (0.8%)
HSBC Securities USA, Inc., (1.50%, dated 6/30/22, due 7/1/22; proceeds $5; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 2/15/23 - 5/15/32; valued at $5)	$	5		5
Merrill Lynch & Co., Inc., (1.46%, dated 6/30/22, due 7/1/22; proceeds $10; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $10)		10		10
				15
Total Securities held as Collateral on Loaned Securities (Cost $80)				80
	Shares
Investment Company (7.1%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $141)		141,354		141
Total Short-Term Investments (Cost $221)				221
Total Investments (105.8%) (Cost $3,190) Including $128 of Securities Loaned (c)				2,102
Liabilities in Excess of Other Assets (–5.8%)				(115	)
Net Assets (100.0%)			$	1,987

(a) Non-income producing security.

(b) All or a portion of this security was on loan at June 30, 2022.

(c) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $41,000 and the aggregate gross unrealized depreciation is approximately $1,129,000, resulting in net unrealized depreciation of approximately $1,088,000.

ADR American Depositary Receipt.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments (cont'd)

Vitality Portfolio

Portfolio Composition*

Classification	Percentage of Total Investments
Biotechnology		27.2	%
Life Sciences Tools & Services		21.5
Pharmaceuticals		11.9
Health Care Equipment & Supplies		11.1
Health Care Providers & Services		10.6
Health Care Technology		8.8
Short-Term Investment		7.0
Other**		1.9
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

** Industry and/or investment type representing less than 5% of total investments.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Vitality Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $2,984)	$	1,896
Investment in Security of Affiliated Issuer, at Value (Cost $206)		206
Total Investments in Securities, at Value (Cost $3,190)		2,102
Cash from Securities Lending		5
Prepaid Offering Costs		69
Due from Adviser		58
Dividends Receivable		—	@
Tax Reclaim Receivable		—	@
Receivable from Affiliate		—	@
Receivable from Securities Lending Income		—	@
Other Assets		10
Total Assets		2,244
Liabilities:
Payable for Offering Costs		127
Collateral on Securities Loaned, at Value		85
Payable for Professional Fees		40
Payable for Custodian Fees		2
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*		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Administration Fees		—	@
Other Liabilities		3
Total Liabilities		257
Net Assets	$	1,987
Net Assets Consist of:
Paid-in-Capital	$	3,208
Total Accumulated Loss		(1,221	)
Net Assets	$	1,987
CLASS I:
Net Assets	$	1,893
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		314,064
Net Asset Value, Offering and Redemption Price Per Share	$	6.03
CLASS A:
Net Assets	$	34
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,602
Net Asset Value, Offering and Redemption Price Per Share	$	6.02
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.33
Maximum Offering Price Per Share	$	6.35
CLASS C:
Net Assets	$	30
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,000
Net Asset Value, Offering and Redemption Price Per Share	$	6.00
CLASS R6:*
Net Assets	$	30
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		5,000
Net Asset Value, Offering and Redemption Price Per Share	$	6.03
⁽¹⁾ Including: Securities on Loan, at Value:	$	128

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Vitality Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $—@ of foreign Taxes Withheld)	$	2
Income from Securities Loaned — Net		1
Dividends from Security of Affiliated Issuer (Note G)		—	@
Total Investment Income		3
Expenses:
Offering Costs		68
Professional Fees		40
Advisory Fees (Note B)		8
Shareholder Reporting Fees		5
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Custodian Fees (Note F)		2
Administration Fees (Note C)		1
Pricing Fees		1
Registration Fees		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Sub Transfer Agency Fees — Class A		—	@
Other Expenses		1
Total Expenses		131
Expenses Reimbursed by Adviser (Note B)		(109	)
Waiver of Advisory Fees (Note B)		(8	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		10
Net Investment Loss		(7	)
Realized Loss:
Investments Sold		(126	)
Change in Unrealized Appreciation (Depreciation):
Investments		(1,042	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(1,168	)
Net Decrease in Net Assets Resulting from Operations	$	(1,175	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Vitality Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Period Ended December 31, 2021^ (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(7	)	$	(—	@)
Net Realized Gain (Loss)		(126	)		—
Net Change in Unrealized Appreciation (Depreciation)		(1,042	)		(46	)
Net Decrease in Net Assets Resulting from Operations		(1,175	)		(46	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		245			2,808
Class A:
Subscribed		5			50
Redeemed		(—	@)		—
Class C:
Subscribed		—			50
Class R6:*
Subscribed		—			50
Net Increase in Net Assets Resulting from Capital Share Transactions		250			2,958
Total Increase (Decrease) in Net Assets		(925	)		2,912
Net Assets:
Beginning of Period		2,912			—
End of Period	$	1,987		$	2,912
(1) Capital Share Transactions:
Class I:
Shares Subscribed		33			281
Class A:
Shares Subscribed		1			5
Shares Redeemed		(—	@@)		—
Net Increase in Class A Shares Outstanding		1			5
Class C:
Shares Subscribed		—			5
Class R6:*
Shares Subscribed		—			5

^ Commencement of Operations.

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Vitality Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period Ended December 31, 2021⁽¹⁾
Net Asset Value, Beginning of Period	$	9.85		$	10.00
Loss from Investment Operations:
Net Investment Loss⁽²⁾		(0.02	)		(0.00	)⁽³⁾
Net Realized and Unrealized Loss		(3.80	)		(0.15	)
Total from Investment Operations		(3.82	)		(0.15	)
Net Asset Value, End of Period	$	6.03		$	9.85
Total Return		(39.70	)%⁽⁴⁾⁽⁷⁾		(1.50	)%⁽⁵⁾⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,893		$	2,765
Ratio of Expenses Before Expense Limitation		11.46	%⁽⁸⁾		595.07	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		0.94	%⁽⁶⁾⁽⁸⁾		0.95	%⁽⁸⁾
Ratio of Net Investment Loss		(0.64	)%⁽⁶⁾⁽⁸⁾		(0.95	)%⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		N/A
Portfolio Turnover Rate		15	%⁽⁷⁾		0	%⁽⁷⁾

(1) Commencement of Operations.

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

(3) Amount is less than $0.005 per share.

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

(5) Calculated using the NAV for US GAAP financial reporting purposes.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Vitality Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period Ended December 31, 2021⁽¹⁾
Net Asset Value, Beginning of Period	$	9.85		$	10.00
Loss from Investment Operations:
Net Investment Loss⁽²⁾		(0.04	)		(0.00	)⁽³⁾
Net Realized and Unrealized Loss		(3.79	)		(0.15	)
Total from Investment Operations		(3.83	)		(0.15	)
Net Asset Value, End of Period	$	6.02		$	9.85
Total Return		(39.80	)%⁽⁴⁾⁽⁷⁾		(1.50	)%⁽⁶⁾⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	34		$	49
Ratio of Expenses Before Expense Limitation		16.49	%⁽⁸⁾		598.74	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.29	%⁽⁵⁾⁽⁸⁾		1.30	%⁽⁸⁾
Ratio of Net Investment Loss		(0.99	)%⁽⁵⁾⁽⁸⁾		(1.30	)%⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		N/A
Portfolio Turnover Rate		15	%⁽⁷⁾		0	%⁽⁷⁾

(1) Commencement of Operations.

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

(3) Amount is less than $0.005 per share.

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

(6) Calculated using the NAV for US GAAP financial reporting purposes. Does not reflect the deduction of sales charge.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Vitality Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period Ended December 31, 2021⁽¹⁾
Net Asset Value, Beginning of Period	$	9.85		$	10.00
Loss from Investment Operations:
Net Investment Loss⁽²⁾		(0.06	)		(0.00	)⁽³⁾
Net Realized and Unrealized Loss		(3.79	)		(0.15	)
Total from Investment Operations		(3.85	)		(0.15	)
Net Asset Value, End of Period	$	6.00		$	9.85
Total Return		(40.00	)%⁽⁴⁾⁽⁷⁾		(1.50	)%⁽⁶⁾⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	30		$	49
Ratio of Expenses Before Expense Limitation		17.50	%⁽⁸⁾		599.49	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		2.04	%⁽⁵⁾⁽⁸⁾		2.05	%⁽⁸⁾
Ratio of Net Investment Loss		(1.75	)%⁽⁵⁾⁽⁸⁾		(2.05	)%⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		N/A
Portfolio Turnover Rate		15	%⁽⁷⁾		0	%⁽⁷⁾

(1) Commencement of Operations.

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

(3) Amount is less than $0.005 per share.

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

(6) Calculated using the NAV for US GAAP financial reporting purposes. Does not reflect the deduction of sales charge.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Vitality Portfolio

	Class R6⁽¹⁾
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period Ended December 31, 2021⁽²⁾
Net Asset Value, Beginning of Period	$	9.85		$	10.00
Loss from Investment Operations:
Net Investment Loss⁽³⁾		(0.02	)		(0.00	)⁽⁴⁾
Net Realized and Unrealized Loss		(3.80	)		(0.15	)
Total from Investment Operations		(3.82	)		(0.15	)
Net Asset Value, End of Period	$	6.03		$	9.85
Total Return		(39.70	)%⁽⁵⁾⁽⁸⁾		(1.50	)%⁽⁶⁾⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	30		$	49
Ratio of Expenses Before Expense Limitation		16.49	%⁽⁹⁾		598.49	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		0.89	%⁽⁷⁾⁽⁹⁾		0.90	%⁽⁹⁾
Ratio of Net Investment Loss		(0.60	)%⁽⁷⁾⁽⁹⁾		(0.90	)%⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁹⁾		N/A
Portfolio Turnover Rate		15	%⁽⁸⁾		0	%⁽⁸⁾

(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) Amount is less than $0.005 per share.

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

(6) Calculated using the NAV for US GAAP financial reporting purposes.

(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) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Vitality Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. 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 or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, including circumstances under which the Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; and (5) investments in mutual

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Biotechnology	$	551	$	—	$	—	$	551
Health Care Equipment & Supplies		224		—		—		224
Health Care Providers & Services		215		—		—		215
Health Care Technology		178		—		—		178
Internet & Direct Marketing Retail		38		—		—		38
Life Sciences Tools & Services		435		—		—		435
Pharmaceuticals		240		—		—		240
Total Common Stocks		1,881		—		—		1,881
Short-Term Investments
Investment Company		206		—		—		206
Repurchase Agreements		—		15		—		15
Total Short-Term Investments		206		15		—		221
Total Assets	$	2,087	$	15	$	—	$	2,102

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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.

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 June 30, 2022:

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	128	(a)	$	—	$	(128	)(b)(c)	$	0

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

(b) The Fund received cash collateral of approximately $85,000, of which approximately $80,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $5,000, which is not reflected in the Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $50,000 in the form of U.S. Government obligations, which the Fund cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

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	$	85	$	—	$	—	$	—	$	85
Total Borrowings	$	85	$	—	$	—	$	—	$	85
Gross amount of recognized liabilities for securities lending transactions									$	85

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

First $500 million				Over $500 million
0.75%				0.70%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.95% for Class I shares, 1.30% for Class A shares, 2.05% for Class C shares and 0.90% for Class 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $8,000 of advisory fees were waived and approximately $113,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class C shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $458,000 and $334,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	—			$	3,520			$	3,314			$	—	@

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	206

@ Amount is less than $500.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

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. The tax year ended December 31, 2021 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 year 2021.

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Accumulated Loss (000)				Paid-in- Capital (000)
$—@				$(—@)

@ Amount is less than $500.

At December 31, 2021, the Fund had no distributable earnings on a tax basis.

Facility also has a commitment fee of 0.25% per annum based on the unused portion of the Facility. During the six months ended June 30, 2022, the Fund did not have any borrowings under the Facility.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

The Board considered the following factors at the time of approval of the contracts which occurred prior to commencement of operations.

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Fund

Economies of Scale

Profitability of the Adviser and Affiliates

Since the Fund had not begun operations and had not paid any fees to the Adviser, the Board concluded that this was not a factor that needed to be considered at the present time.

Other Benefits of the Relationship

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

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 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 enter into this relationship with the Adviser.

Other Factors and Current Trends

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 future shareholders to approve the Management Agreement, which will remain in effect for two years and thereafter must be approved annually by the Board of the Fund if it is to continue in effect. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

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

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

IFIVITSAN
4881591 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Asia Opportunity Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					8
Consolidated Statements of Changes in Net Assets					9
Consolidated Financial Highlights					11
Notes to Consolidated Financial Statements					15
Investment Advisory Agreement Approval					26
Liquidity Risk Management Program					28
U.S. Customer Privacy Notice					29
Director and Officer Information					32

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Asia Opportunity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Asia Opportunity Portfolio Class I	$	1,000.00	$	777.50	$	1,019.34	$	4.85	$	5.51		1.10	%
Asia Opportunity Portfolio Class A		1,000.00		776.20		1,017.75		6.25		7.10		1.42
Asia Opportunity Portfolio Class C		1,000.00		773.30		1,014.13		9.45		10.74		2.15
Asia Opportunity Portfolio Class R6⁽¹⁾		1,000.00		778.00		1,019.59		4.63		5.26		1.05

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Asia Opportunity Portfolio

	Shares		Value (000)
Common Stocks (97.9%)
China (53.9%)
360 DigiTech, Inc.		360,546	$	6,237
Agora, Inc. ADR (a)		83,389		548
China East Education Holdings Ltd. (b)		2,012,000		1,069
China Resources Beer Holdings Co., Ltd. (b)		922,300		6,892
China Resources Mixc Lifestyle Services Ltd. (b)		563,000		2,797
Foshan Haitian Flavouring & Food Co., Ltd., Class A		869,309		11,766
Greentown Service Group Co. Ltd. (b)		2,528,000		2,861
Haidilao International Holding Ltd. (a)(b)(c)		5,163,000		12,089
HUYA, Inc. ADR (a)		735,547		2,854
Inner Mongolia Yili Industrial Group Co., Ltd., Class A		852,286		4,965
KE Holdings, Inc. ADR (a)		846,575		15,196
Kuaishou Technology (a)(b)		1,209,000		13,588
Kweichow Moutai Co., Ltd., Class A		42,394		12,966
Meituan, Class B (a)(b)		796,800		19,884
Shenzhou International Group Holdings Ltd. (b)		557,000		6,799
Tencent Holdings Ltd. (b)		217,300		9,836
Trip.com Group Ltd. ADR (a)		520,481		14,287
Tsingtao Brewery Co., Ltd. H Shares (b)		564,000		5,871
Weimob, Inc. (a)(b)		4,959,000		3,420
Yihai International Holding Ltd. (a)(b)		518,000		1,869
				155,794
Hong Kong (3.3%)
AIA Group Ltd. (b)		876,300		9,575
India (20.5%)
HDFC Bank Ltd.		1,437,460		24,622
HDFC Bank Ltd. ADR		9,296		511
ICICI Bank Ltd. ADR		1,080,435		19,167
IndusInd Bank Ltd.		881,632		8,920
Shree Cement Ltd.		19,516		4,716
Zomato Ltd. (a)		2,128,128		1,460
				59,396
Indonesia (1.1%)
Avia Avian Tbk PT		56,842,600		3,110
Korea, Republic of (5.7%)
KakaoBank Corp. (a)(c)		282,197		6,593
NAVER Corp.		53,024		9,890
				16,483
Singapore (3.5%)
Grab Holdings Ltd., Class A (a)		2,388,834		6,044
Sea Ltd. ADR (a)		59,947		4,008
				10,052
Taiwan (6.2%)
Nien Made Enterprise Co., Ltd.		471,000		4,649
Silergy Corp.		53,000		4,285
Taiwan Semiconductor Manufacturing Co., Ltd.		556,000		8,911
				17,845
United States (3.7%)
Coupang, Inc. (a)		843,758		10,758
Total Common Stocks (Cost $295,454)				283,013

	Shares			Value (000)
Investment Company (0.5%)
United States (0.5%)
Grayscale Bitcoin Trust (a) (Cost $5,760)		125,562		$	1,514
Short-Term Investments (1.2%)
Securities held as Collateral on Loaned Securities (0.0%) (d)
Investment Company (0.0%) (d)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		6,703			7
	Face Amount (000)
Repurchase Agreements (0.0%) (d)
HSBC Securities USA, Inc., (1.50%, dated 6/30/22, due 7/1/22; proceeds $—@; fully collateralized by U.S. Government obligations; 0.00% - 3.63% due 2/15/23 - 5/15/32; valued at $—@)	$	—	@		—	@
Merrill Lynch & Co., Inc., (1.46%, dated 6/30/22, due 7/1/22; proceeds $1; fully collateralized by a U.S. Government obligation; 1.63% due 5/15/31; valued at $1)		1			1
					1
Total Securities held as Collateral on Loaned Securities (Cost $8)					8
	Shares
Investment Company (1.2%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $3,561)		3,561,091			3,561
Total Short-Term Investments (Cost $3,569)					3,569
Total Investments Excluding Purchased Options (99.6%) (Cost $304,783)					288,096
Total Purchased Options Outstanding (0.0%) (d) (Cost $2,494)					6
Total Investments (99.6%) (Cost $307,277) Including $17,028 of Securities Loaned (e)(f)(g)					288,102
Other Assets in Excess of Liabilities (0.4%)					1,168
Net Assets (100.0%)				$	289,270

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(d) Amount is less than 0.05%.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Asia Opportunity Portfolio

(e) The approximate fair value and percentage of net assets, $203,403,000 and 70.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(f) Securities are available for collateral in connection with purchased options.

(g) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $61,763,000 and the aggregate gross unrealized depreciation is approximately $80,938,000, resulting in net unrealized depreciation of approximately $19,175,000.

@ Value/Face Amount is less than $500.

ADR American Depositary Receipt.

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)		Premiums Paid (000)		Unrealized Depreciation (000)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		158,917,590		158,918	$	1	$	843	$	(842	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		243,088,167		243,088		5		1,651		(1,646	)
									$	6	$	2,494	$	(2,488	)

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		25.7	%
Banks		20.8
Interactive Media & Services		11.6
Internet & Direct Marketing Retail		11.1
Hotels, Restaurants & Leisure		9.2
Beverages		8.9
Food Products		6.5
Real Estate Management & Development		6.2
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of June 30, 2022.

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

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Asia Opportunity Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $303,709)	$	284,534
Investment in Security of Affiliated Issuer, at Value (Cost $3,568)		3,568
Total Investments in Securities, at Value (Cost $307,277)		288,102
Foreign Currency, at Value (Cost $2,037)		2,023
Cash from Securities Lending		1
Dividends Receivable		496
Receivable for Fund Shares Sold		302
Receivable from Securities Lending Income		53
Receivable from Affiliate		4
Interest Receivable		—	@
Other Assets		90
Total Assets		291,071
Liabilities:
Payable for Investments Purchased		779
Payable for Advisory Fees		525
Payable for Fund Shares Redeemed		255
Payable for Sub Transfer Agency Fees — Class I		73
Payable for Sub Transfer Agency Fees — Class A		16
Payable for Sub Transfer Agency Fees — Class C		4
Payable for Custodian Fees		51
Due to Broker		20
Payable for Shareholder Services Fees — Class A		8
Payable for Distribution and Shareholder Services Fees — Class C		11
Payable for Administration Fees		19
Collateral on Securities Loaned, at Value		9
Payable for Professional Fees		7
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		—	@
Other Liabilities		21
Total Liabilities		1,801
Net Assets	$	289,270
Net Assets Consist of:
Paid-in-Capital	$	405,614
Total Accumulated Loss		(116,344	)
Net Assets	$	289,270

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Asia Opportunity Portfolio

Consolidated Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	222,979
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		11,474,843
Net Asset Value, Offering and Redemption Price Per Share	$	19.43
CLASS A:
Net Assets	$	41,066
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		2,152,462
Net Asset Value, Redemption Price Per Share	$	19.08
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.06
Maximum Offering Price Per Share	$	20.14
CLASS C:
Net Assets	$	14,788
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		806,987
Net Asset Value, Offering and Redemption Price Per Share	$	18.32
CLASS R6:*
Net Assets	$	10,437
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		535,808
Net Asset Value, Offering and Redemption Price Per Share	$	19.48
⁽¹⁾ Including: Securities on Loan, at Value:	$	17,028

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Asia Opportunity Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $135 of Foreign Taxes Withheld)	$	1,772
Income from Securities Loaned — Net		324
Dividends from Security of Affiliated Issuer (Note G)		8
Total Investment Income		2,104
Expenses:
Advisory Fees (Note B)		1,366
Sub Transfer Agency Fees — Class I		125
Sub Transfer Agency Fees — Class A		30
Sub Transfer Agency Fees — Class C		6
Shareholder Services Fees — Class A (Note D)		66
Distribution and Shareholder Services Fees — Class C (Note D)		74
Administration Fees (Note C)		137
Custodian Fees (Note F)		133
Professional Fees		95
Registration Fees		43
Shareholder Reporting Fees		23
Transfer Agency Fees — Class I (Note E)		3
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Directors' Fees and Expenses		5
Pricing Fees		1
Other Expenses		11
Total Expenses		2,122
Reimbursement of Class Specific Expenses — Class I (Note B)		(62	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Waiver of Advisory Fees (Note B)		(21	)
Rebate from Morgan Stanley Affiliate (Note G)		(4	)
Net Expenses		2,034
Net Investment Income		70
Realized Loss:
Investments Sold (Net of $50 of Capital Gain Country Tax)		(6,221	)
Foreign Currency Translation		(65	)
Net Realized Loss		(6,286	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $168)		(89,786	)
Foreign Currency Translation		(19	)
Net Change in Unrealized Appreciation (Depreciation)		(89,805	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(96,091	)
Net Decrease in Net Assets Resulting from Operations	$	(96,021	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Asia Opportunity Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	70		$	(3,174	)
Net Realized Loss		(6,286	)		(84,263	)
Net Change in Unrealized Appreciation (Depreciation)		(89,805	)		(85,471	)
Net Decrease in Net Assets Resulting from Operations		(96,021	)		(172,908	)
Dividends and Distributions to Shareholders:
Class I		—			(3,033	)
Class A		—			(709	)
Class C		—			(186	)
Class R6*		—			(210	)
Total Dividends and Distributions to Shareholders		—			(4,138	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		67,015			367,015
Distributions Reinvested		—			3,020
Redeemed		(90,897	)		(283,269	)
Class A:
Subscribed		5,652			65,503
Distributions Reinvested		—			696
Redeemed		(26,761	)		(60,585	)
Class C:
Subscribed		3,186			16,831
Distributions Reinvested		—			186
Redeemed		(3,301	)		(9,677	)
Class R6:*
Subscribed		17			31,113
Distributions Reinvested		—			210
Redeemed		(2	)		(34,706	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(45,091	)		96,337
Redemption Fees		5			20
Total Decrease in Net Assets		(141,107	)		(80,689	)
Net Assets:
Beginning of Period		430,377			511,066
End of Period	$	289,270		$	430,377

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Asia Opportunity Portfolio

Consolidated Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		3,084			11,559
Shares Issued on Distributions Reinvested		—			122
Shares Redeemed		(4,436	)		(10,415	)
Net Increase (Decrease) in Class I Shares Outstanding		(1,352	)		1,266
Class A:
Shares Subscribed		260			2,014
Shares Issued on Distributions Reinvested		—			29
Shares Redeemed		(1,261	)		(2,040	)
Net Increase (Decrease) in Class A Shares Outstanding		(1,001	)		3
Class C:
Shares Subscribed		178			527
Shares Issued on Distributions Reinvested		—			8
Shares Redeemed		(171	)		(362	)
Net Increase in Class C Shares Outstanding		7			173
Class R6:*
Shares Subscribed		1			958
Shares Issued on Distributions Reinvested		—			8
Shares Redeemed		(—	@@)		(1,272	)
Net Increase in Class R6 Shares Outstanding		1			(306	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Asia Opportunity Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	24.99		$	31.72		$	21.02		$	14.53		$	16.92		$	9.68
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		0.01			(0.12	)		(0.12	)		0.02			0.01			(0.04	)
Net Realized and Unrealized Gain (Loss)		(5.57	)		(6.39	)		11.16			6.47			(2.30	)		7.47
Total from Investment Operations		(5.56	)		(6.51	)		11.04			6.49			(2.29	)		7.43
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.01	)		—			—
Net Realized Gain		—			(0.22	)		(0.34	)		—			(0.10	)		(0.19	)
Total Distributions		—			(0.22	)		(0.34	)		(0.01	)		(0.10	)		(0.19	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.01			0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	19.43		$	24.99		$	31.72		$	21.02		$	14.53		$	16.92
Total Return⁽⁴⁾		(22.25	)%⁽⁷⁾		(20.52	)%		52.53	%		44.74	%		(13.65	)%		76.82	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	222,979		$	320,534		$	366,758		$	83,805		$	25,479		$	15,913
Ratio of Expenses Before Expense Limitation		1.16	%⁽⁸⁾		1.05	%		N/A			1.28	%		1.67	%		3.10	%
Ratio of Expenses After Expense Limitation		1.10	%⁽⁵⁾⁽⁸⁾		1.05	%⁽⁵⁾		1.06	%⁽⁵⁾		1.08	%⁽⁵⁾		1.09	%⁽⁵⁾		1.06	%⁽⁵⁾
Ratio of Net Investment Income (Loss)		0.14	%⁽⁵⁾⁽⁸⁾		(0.41	)%⁽⁵⁾		(0.48	)%⁽⁵⁾		0.11	%⁽⁵⁾		0.04	%⁽⁵⁾		(0.27	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.02	%		0.01	%		0.01	%
Portfolio Turnover Rate		10	%⁽⁷⁾		65	%		44	%		27	%		63	%		50	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Asia Opportunity Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	24.58		$	31.29		$	20.79		$	14.42		$	16.84		$	9.67
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.02	)		(0.20	)		(0.19	)		(0.06	)		(0.04	)		(0.10	)
Net Realized and Unrealized Gain (Loss)		(5.48	)		(6.29	)		11.03			6.42			(2.28	)		7.46
Total from Investment Operations		(5.50	)		(6.49	)		10.84			6.36			(2.32	)		7.36
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.22	)		(0.34	)		—			(0.10	)		(0.19	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.01			0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	19.08		$	24.58		$	31.29		$	20.79		$	14.42		$	16.84
Total Return⁽⁴⁾		(22.38	)%⁽⁷⁾		(20.74	)%		52.15	%		44.17	%		(13.89	)%		76.17	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	41,066		$	77,496		$	98,559		$	45,111		$	6,930		$	2,873
Ratio of Expenses Before Expense Limitation		1.43	%⁽⁸⁾		1.32	%		N/A			1.56	%		2.05	%		3.50	%
Ratio of Expenses After Expense Limitation		1.42	%⁽⁵⁾⁽⁸⁾		1.32	%⁽⁵⁾		1.34	%⁽⁵⁾		1.37	%⁽⁵⁾		1.44	%⁽⁵⁾		1.44	%⁽⁵⁾
Ratio of Net Investment Loss		(0.22	)%⁽⁵⁾⁽⁸⁾		(0.69	)%⁽⁵⁾		(0.76	)%⁽⁵⁾		(0.33	)%⁽⁵⁾		(0.22	)%⁽⁵⁾		(0.69	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.02	%		0.01	%		0.01	%
Portfolio Turnover Rate		10	%⁽⁷⁾		65	%		44	%		27	%		63	%		50	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Asia Opportunity Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			2018⁽¹⁾			2017⁽¹⁾
Net Asset Value, Beginning of Period	$	23.69		$	30.39		$	20.35		$	14.21		$	16.73		$	9.68
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.09	)		(0.41	)		(0.36	)		(0.17	)		(0.15	)		(0.22	)
Net Realized and Unrealized Gain (Loss)		(5.28	)		(6.07	)		10.74			6.30			(2.27	)		7.46
Total from Investment Operations		(5.37	)		(6.48	)		10.38			6.13			(2.42	)		7.24
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.22	)		(0.34	)		—			(0.10	)		(0.19	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.01			0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	18.32		$	23.69		$	30.39		$	20.35		$	14.21		$	16.73
Total Return⁽⁴⁾		(22.67	)%⁽⁷⁾		(21.32	)%		51.02	%		43.21	%		(14.58	)%		74.85	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	14,788		$	18,947		$	19,042		$	8,445		$	2,582		$	431
Ratio of Expenses Before Expense Limitation		2.16	%⁽⁸⁾		2.05	%		N/A			2.33	%		2.80	%		5.26	%
Ratio of Expenses After Expense Limitation		2.15	%⁽⁵⁾⁽⁸⁾		2.05	%⁽⁵⁾		2.08	%⁽⁵⁾		2.14	%⁽⁵⁾		2.19	%⁽⁵⁾		2.19	%⁽⁵⁾
Ratio of Net Investment Loss		(0.88	)%⁽⁵⁾⁽⁸⁾		(1.41	)%⁽⁵⁾		(1.49	)%⁽⁵⁾		(0.95	)%⁽⁵⁾		(0.92	)%⁽⁵⁾		(1.51	)%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.02	%		0.01	%		0.01	%
Portfolio Turnover Rate		10	%⁽⁷⁾		65	%		44	%		27	%		63	%		50	%

(1) Not consolidated.

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

(3) Amount is less than $0.005 per share.

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

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Asia Opportunity Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽²⁾			2019⁽²⁾			2018⁽²⁾			2017⁽²⁾
Net Asset Value, Beginning of Period	$	25.04		$	31.76		$	21.04		$	14.54		$	16.92		$	9.68
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.02			(0.09	)		(0.09	)		0.03			0.01			(0.02	)
Net Realized and Unrealized Gain (Loss)		(5.58	)		(6.41	)		11.15			6.48			(2.29	)		7.45
Total from Investment Operations		(5.56	)		(6.50	)		11.06			6.51			(2.28	)		7.43
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			(0.02	)		—			—
Net Realized Gain		—			(0.22	)		(0.34	)		—			(0.10	)		(0.19	)
Total Distributions		—			(0.22	)		(0.34	)		(0.02	)		(0.10	)		(0.19	)
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.01			0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	19.48		$	25.04		$	31.76		$	21.04		$	14.54		$	16.92
Total Return⁽⁵⁾		(22.20	)%⁽⁸⁾		(20.46	)%		52.58	%		44.82	%		(13.59	)%		76.82	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10,437		$	13,400		$	26,707		$	21		$	15		$	17
Ratio of Expenses Before Expense Limitation		1.08	%⁽⁹⁾		0.98	%		1.03	%		11.85	%	��	13.31	%		17.65	%
Ratio of Expenses After Expense Limitation		1.05	%⁽⁶⁾⁽⁹⁾		0.98	%⁽⁶⁾		1.01	%⁽⁶⁾		1.03	%⁽⁶⁾		1.04	%⁽⁶⁾		1.04	%⁽⁶⁾
Ratio of Net Investment Income (Loss)		0.23	%⁽⁶⁾⁽⁹⁾		(0.31	)%⁽⁶⁾		(0.32	)%⁽⁶⁾		0.19	%⁽⁶⁾		0.05	%⁽⁶⁾		(0.18	)%⁽⁶⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.02	%		0.01	%		0.01	%
Portfolio Turnover Rate		10	%⁽⁸⁾		65	%		44	%		27	%		63	%		50	%

(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) Amount is less than $0.005 per share.

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

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Asia Opportunity Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Asia Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary represented approximately $1,941,000 or approximately 0.67% of the total net assets of the Fund.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, 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 established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by

the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Banks	$	19,678	$	40,135	$	—	$	59,813
Beverages		—		25,729		—		25,729
Chemicals		—		3,110		—		3,110
Commercial Services & Supplies		—		2,861		—		2,861
Construction Materials		—		4,716		—		4,716
Consumer Finance		6,237		—		—		6,237
Diversified Consumer Services		—		1,069		—		1,069
Entertainment		6,862		—		—		6,862
Food Products		—		18,600		—		18,600
Hotels, Restaurants & Leisure		14,287		12,089		—		26,376
Household Durables		—		4,649		—		4,649
Insurance		—		9,575		—		9,575
Interactive Media & Services		—		33,314		—		33,314
Internet & Direct Marketing Retail		10,758		21,344		—		32,102

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)
Real Estate Management & Development	$	15,196	$	2,797	$	—	$	17,993
Road & Rail		6,044		—		—		6,044
Semiconductors & Semiconductor Equipment		—		13,196		—		13,196
Software		548		3,420		—		3,968
Textiles, Apparel & Luxury Goods		—		6,799		—		6,799
Total Common Stocks		79,610		203,403		—		283,013
Investment Company		1,514		—		—		1,514
Call Options Purchased		—		6		—		6
Short-Term Investments
Investment Company		3,568		—		—		3,568
Repurchase Agreements		—		1		—		1
Total Short-Term Investments		3,568		1		—		3,569
Total Assets	$	84,692	$	203,410	$	—	$	288,102

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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.

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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

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:

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.

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

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

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(497	)(b)

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

At June 30, 2022, 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(c) (000)			Liabilities(c) (000)
Purchased Options	$	6	(a)	$	—

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

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

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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(d) (000)			Net Amount (not less than $0) (000)
JP Morgan Chase Bank NA	$	6	$	—	$	(6	)	$	0

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

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

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					402,006,000

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

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 June 30, 2022:

Gross Amounts Not Offset in the Consolidated Statement of Assets and Liabilities
Gross Asset Amounts Presented in the Consolidated Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	17,028	(e)	$	—	$	(17,028	)(f)(g)	$	0

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

(f) The Fund received cash collateral of approximately $9,000, of which approximately $8,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Consolidated Portfolio of Investments. As of June 30, 2022, there was uninvested cash of approximately $1,000, which is not reflected in the Consolidated Portfolio of Investments. In addition, the Fund received non-cash collateral of approximately $18,289,000 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.

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

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	$	9	$	—	$	—	$	—	$	9
Total Borrowings	$	9	$	—	$	—	$	—	$	9
Gross amount of recognized liabilities for securities lending transactions									$	9

7. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares

and Class R6 shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

B. Advisory/Sub-Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Agreement, paid quarterly, at the annual rate based on the daily net assets as follows:

First $750 million				Next $750 million				Over $1.5 billion
	0.80	%			0.75	%			0.70	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.79% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.10% for Class I shares, 1.45% for Class A shares, 2.20% for Class C shares and 1.05% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $21,000 of advisory fees were waived and approximately $63,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

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

Under a Sub-Administration Agreement between the Administrator and State Street, State Street provides certain administrative services to the Company. For such services, the

Administrator pays State Street a portion of the fee the Administrator receives from the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $4,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	13,737			$	61,043			$	71,212			$	8

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	3,568

During the six months ended June 30, 2022, the Fund incurred approximately $1,000 in brokerage commissions with Morgan Stanley & Co. LLC, an affiliate of the Adviser/Administrator, Sub-Adviser and Distributor, for portfolio transactions executed on behalf of the Fund.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	—	$	4,138	$	3,766	$	1,410

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Accumulated Loss (000)				Paid-in- Capital (000)
$	4,862			$	(4,862	)

At December 31, 2021, the Fund had no distributable earnings on a tax basis.

At December 31, 2021, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $70,320,000 and $1,654,000, respectively, that do not have an expiration date.

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$	80			$	—

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

and market conditions and uncertainty over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which the associated conditions impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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 below its peer group average for the one-year period but better than 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 its total expense ratio were higher than but close to 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

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

Sub-Adviser

Morgan Stanley Investment Management Company
23 Church Street
16-01 Capital Square, Singapore 049481

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIASOPPSAN
4877698 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

China Equity Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					6
Statements of Changes in Net Assets					7
Financial Highlights					8
Notes to Financial Statements					12
Investment Advisory Agreement Approval					19
Liquidity Risk Management Program					21
U.S. Customer Privacy Notice					22
Director and Officer Information					25

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in China Equity Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

China Equity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
China Equity Portfolio Class I	$	1,000.00	$	827.90	$	1,019.04	$	5.26	$	5.81		1.16	%
China Equity Portfolio Class A		1,000.00		826.90		1,017.16		6.98		7.70		1.54
China Equity Portfolio Class C		1,000.00		823.40		1,013.44		10.35		11.43		2.29
China Equity Portfolio Class R6⁽¹⁾		1,000.00		827.90		1,019.14		5.17		5.71		1.14

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

China Equity Portfolio

	Shares		Value (000)
Common Stocks (87.7%)
Banks (4.4%)
China Merchants Bank Co., Ltd. H Shares (a)		61,000	$	412
Beverages (10.9%)
China Resources Beer Holdings Co., Ltd. (a)		46,000		344
Kweichow Moutai Co., Ltd., Class A		1,900		581
Nongfu Spring Co. Ltd. (a)		17,600		102
				1,027
Biotechnology (0.4%)
Innovent Biologics, Inc. (a)(b)		9,000		40
Electrical Equipment (2.1%)
NARI Technology Co. Ltd., Class A		48,840		198
Entertainment (3.2%)
Bilibili, Inc., Class Z (b)		3,100		79
Mango Excellent Media Co. Ltd., Class A		44,100		221
				300
Food Products (6.7%)
China Mengniu Dairy Co., Ltd. (a)		43,000		215
Fu Jian Anjoy Foods Co. Ltd., Class A		9,900		249
Toly Bread Co. Ltd., Class A		69,440		172
				636
Health Care Equipment & Supplies (1.9%)
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A		3,900		183
Household Durables (2.5%)
Midea Group Co. Ltd., Class A		26,300		238
Interactive Media & Services (15.0%)
Tencent Holdings Ltd. (a)		31,200		1,412
Internet & Direct Marketing Retail (16.3%)
Alibaba Group Holding Ltd. (a)(b)		30,028		429
JD.com, Inc., Class A		1,652		53
Meituan, Class B (a)(b)		29,900		746
Pinduoduo, Inc. ADR (b)		4,997		309
				1,537
Life Sciences Tools & Services (3.7%)
WuXi AppTec Co. Ltd.		3,100		42
Wuxi Biologics Cayman, Inc. (a)(b)		33,500		310
				352
Machinery (2.7%)
Jiangsu Hengli Hydraulic Co. Ltd., Class A		18,200		168
Yijiahe Technology Co. Ltd.		8,900		91
				259
Personal Products (2.6%)
Proya Cosmetics Co. Ltd., Class A		10,040		248
Real Estate Management & Development (1.8%)
KE Holdings, Inc. ADR (b)		9,305		167
Semiconductors & Semiconductor Equipment (1.7%)
LONGi Green Energy Technology Co. Ltd., Class A		16,520		165

	Shares		Value (000)
Specialty Retail (4.9%)
China Tourism Group Duty Free Corp. Ltd., Class A		8,000	$	279
Pop Mart International Group Ltd.		37,800		183
				462
Textiles, Apparel & Luxury Goods (6.9%)
Anta Sports Products Ltd. (a)		15,200		187
Li Ning Co., Ltd. (a)		28,000		261
Shenzhou International Group Holdings Ltd. (a)		16,500		201
				649
Total Common Stocks (Cost $9,272)				8,285
	No. of Warrants
Warrant (1.1%)
Capital Markets (1.1%)
UBS AG London, expires 10/12/22 (Cost $83)		5,646		101
	Shares
Short-Term Investment (10.8%)
Investment Company (10.8%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $1,019)		1,019,337		1,019
Total Investments (99.6%) (Cost $10,374) (c)(d)				9,405
Other Assets in Excess of Liabilities (0.4%)				41
Net Assets (100.0%)			$	9,446

(a) Security trades on the Hong Kong exchange.

(b) Non-income producing security.

(c) The approximate fair value and percentage of net assets, $7,809,000 and 82.7%, 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 the Financial Statements.

(d) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $837,000 and the aggregate gross unrealized depreciation is approximately $1,806,000, resulting in net unrealized depreciation of approximately $969,000.

ADR American Depositary Receipt.

Portfolio Composition

Classification	Percentage of Total Investments
Others*		33.2	%
Internet & Direct Marketing Retail		16.3
Interactive Media & Services		15.0
Beverages		10.9
Short-Term Investments		10.9
Textiles, Apparel & Luxury Goods		6.9
Food Products		6.8
Total Investments		100.0	%

* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

China Equity Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $9,355)	$	8,386
Investment in Security of Affiliated Issuer, at Value (Cost $1,019)		1,019
Total Investments in Securities, at Value (Cost $10,374)		9,405
Foreign Currency, at Value (Cost $8)		8
Due from Adviser		43
Dividends Receivable		3
Receivable from Affiliate		1
Other Assets		44
Total Assets		9,504
Liabilities:
Payable for Professional Fees		36
Payable for Custodian Fees		5
Payable for Administration Fees		1
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*		—	@
Payable for Sub Transfer Agency Fees — Class I		—	@
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		16
Total Liabilities		58
Net Assets	$	9,446
Net Assets Consist of:
Paid-in-Capital	$	11,114
Total Accumulated Loss		(1,668	)
Net Assets	$	9,446
CLASS I:
Net Assets	$	9,271
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,073,689
Net Asset Value, Offering and Redemption Price Per Share	$	8.63
CLASS A:
Net Assets	$	14
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,590
Net Asset Value, Redemption Price Per Share	$	8.58
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.48
Maximum Offering Price Per Share	$	9.06
CLASS C:
Net Assets	$	152
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		18,094
Net Asset Value, Offering and Redemption Price Per Share	$	8.42
CLASS R6:*
Net Assets	$	9
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,049
Net Asset Value, Offering and Redemption Price Per Share	$	8.64

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

China Equity Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $3 of Foreign Taxes Withheld)	$	103
Dividends from Security of Affiliated Issuer (Note G)		2
Total Investment Income		105
Expenses:
Professional Fees		68
Advisory Fees (Note B)		38
Registration Fees		23
Custodian Fees (Note F)		8
Shareholder Reporting Fees		8
Administration Fees (Note C)		4
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Directors' Fees and Expenses		2
Pricing Fees		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		1
Sub Transfer Agency Fees — Class I		—	@
Sub Transfer Agency Fees — Class A		—	@
Sub Transfer Agency Fees — Class C		—	@
Other Expenses		8
Total Expenses		165
Expenses Reimbursed by Adviser (Note B)		(68	)
Waiver of Advisory Fees (Note B)		(38	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		56
Net Investment Income		49
Realized Loss:
Investments Sold		(749	)
Foreign Currency Translation		(2	)
Net Realized Loss		(751	)
Change in Unrealized Appreciation (Depreciation):
Investments		(1,266	)
Foreign Currency Translation		—	@
Net Change in Unrealized Appreciation (Depreciation)		(1,266	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(2,017	)
Net Decrease in Net Assets Resulting from Operations	$	(1,968	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

China Equity Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	49		$	(61	)
Net Realized Gain (Loss)		(751	)		612
Net Change in Unrealized Appreciation (Depreciation)		(1,266	)		(3,685	)
Net Decrease in Net Assets Resulting from Operations		(1,968	)		(3,134	)
Dividends and Distributions to Shareholders:
Class I		—			(382	)
Class A		—			(12	)
Class C		—			(7	)
Class R6*		—			(—	@)
Total Dividends and Distributions to Shareholders		—			(401	)
Capital Share Transactions: ⁽¹⁾
Class I:
Subscribed		100			408
Distributions Reinvested		—			382
Redeemed		(175	)		(33	)
Class A:
Subscribed		5			639
Distributions Reinvested		—			12
Redeemed		(592	)		(—	@)
Class C:
Subscribed		—			150
Distributions Reinvested		—			7
Redeemed		—			(4	)
Class R6:*
Distributions Reinvested		—			—-	@
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(662	)		1,561
Total Decrease in Net Assets		(2,630	)		(1,974	)
Net Assets:
Beginning of Period		12,076			14,050
End of Period	$	9,446		$	12,076
(1) Capital Share Transactions:
Class I:
Shares Subscribed		10			36
Shares Issued on Distributions Reinvested		—			37
Shares Redeemed		(17	)		(3	)
Net Increase (Decrease) in Class I Shares Outstanding		(7	)		70
Class A:
Shares Subscribed		1			61
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(62	)		(—	@@)
Net Increase (Decrease) in Class A Shares Outstanding		(61	)		62
Class C:
Shares Subscribed		—			13
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		—			(—	@@)
Net Increase in Class C Shares Outstanding		—			14
Class R6:*
Shares Issued on Distributions Reinvested		—			—	@@

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

China Equity Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,						Period from October 31, 2019⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020			December 31, 2019
Net Asset Value, Beginning of Period	$	10.40		$	13.83		$	10.88		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		0.04			(0.06	)		(0.01	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		(1.81	)		(3.00	)		3.14			0.90
Total from Investment Operations		(1.77	)		(3.06	)		3.13			0.88
Distributions from and/or in Excess of:
Net Investment Income		—			(0.22	)		(0.18	)		—
Net Realized Gain		—			(0.15	)		—			—
Total Distributions		—			(0.37	)		(0.18	)		—
Net Asset Value, End of Period	$	8.63		$	10.40		$	13.83		$	10.88
Total Return⁽³⁾		(17.21	)%⁽⁶⁾		(22.14	)%		28.80	%		8.80	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9,271		$	11,230		$	13,970		$	10,846
Ratio of Expenses Before Expense Limitation		3.41	%⁽⁷⁾		2.85	%		3.20	%		5.72	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		1.16	%⁽⁴⁾⁽⁷⁾		1.16	%⁽⁴⁾		1.16	%⁽⁴⁾		1.15	%⁽⁴⁾⁽⁷⁾
Ratio of Net Investment Income (Loss)		1.03	%⁽⁴⁾⁽⁷⁾		(0.44	)%⁽⁴⁾		(0.11	)%⁽⁴⁾		(0.98	)%⁽⁴⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%⁽⁷⁾
Portfolio Turnover Rate		8	%⁽⁶⁾		73	%		25	%		0	%⁽⁶⁾

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

China Equity Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,						Period from October 31, 2019⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020			December 31, 2019
Net Asset Value, Beginning of Period	$	10.34		$	13.81		$	10.87		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		0.13			(0.13	)		(0.06	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		(1.89	)		(2.97	)		3.13			0.89
Total from Investment Operations		(1.76	)		(3.10	)		3.07			0.87
Distributions from and/or in Excess of:
Net Investment Income		—			(0.22	)		(0.13	)		—
Net Realized Gain		—			(0.15	)		—			—
Total Distributions		—			(0.37	)		(0.13	)		—
Net Asset Value, End of Period	$	8.58		$	10.34		$	13.81		$	10.87
Total Return⁽³⁾		(17.31	)%⁽⁶⁾		(22.46	)%		28.30	%		8.70	%⁽⁶⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	14		$	650		$	14		$	11
Ratio of Expenses Before Expense Limitation		5.27	%⁽⁷⁾		4.63	%		21.25	%		19.30	%⁽⁷⁾
Ratio of Expenses After Expense Limitation		1.54	%⁽⁴⁾⁽⁷⁾		1.55	%⁽⁴⁾		1.54	%⁽⁴⁾		1.54	%⁽⁴⁾⁽⁷⁾
Ratio of Net Investment Income (Loss)		2.63	%⁽⁴⁾⁽⁷⁾		(1.19	)%⁽⁴⁾		(0.50	)%⁽⁴⁾		(1.37	)%⁽⁴⁾⁽⁷⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁷⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%⁽⁷⁾
Portfolio Turnover Rate		8	%⁽⁶⁾		73	%		25	%		0	%⁽⁶⁾

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

China Equity Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,						Period from October 31, 2019⁽¹⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020			December 31, 2019
Net Asset Value, Beginning of Period	$	10.19		$	13.72		$	10.86		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.00	)⁽³⁾		(0.23	)		(0.21	)		(0.04	)
Net Realized and Unrealized Gain (Loss)		(1.77	)		(2.93	)		3.18			0.90
Total from Investment Operations		(1.77	)		(3.16	)		2.97			0.86
Distributions from and/or in Excess of:
Net Investment Income		—			(0.22	)		(0.11	)		—
Net Realized Gain		—			(0.15	)		—			—
Total Distributions		—			(0.37	)		(0.11	)		—
Net Asset Value, End of Period	$	8.42		$	10.19		$	13.72		$	10.86
Total Return⁽⁴⁾		(17.66	)%⁽⁷⁾		(23.05	)%		27.38	%		8.60	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	152		$	185		$	52		$	11
Ratio of Expenses Before Expense Limitation		5.77	%⁽⁸⁾		6.23	%		13.32	%		20.07	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		2.29	%⁽⁵⁾⁽⁸⁾		2.30	%⁽⁵⁾		2.29	%⁽⁵⁾		2.29	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(0.09	)%⁽⁵⁾⁽⁸⁾		(1.92	)%⁽⁵⁾		(1.66	)%⁽⁵⁾		(2.12	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		8	%⁽⁷⁾		73	%		25	%		0	%⁽⁷⁾

(1) Commencement of Operations.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

China Equity Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,						Period from October 31, 2019⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020			December 31, 2019
Net Asset Value, Beginning of Period	$	10.40		$	13.83		$	10.88		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽³⁾		0.04			(0.05	)		(0.01	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		(1.80	)		(3.01	)		3.14			0.90
Total from Investment Operations		(1.76	)		(3.06	)		3.13			0.88
Distributions from and/or in Excess of:
Net Investment Income		—			(0.22	)		(0.18	)		—
Net Realized Gain		—			(0.15	)		—			—
Total Distributions		—			(0.37	)		(0.18	)		—
Net Asset Value, End of Period	$	8.64		$	10.40		$	13.83		$	10.88
Total Return⁽⁴⁾		(17.21	)%⁽⁷⁾		(22.14	)%		28.82	%		8.80	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9		$	11		$	14		$	11
Ratio of Expenses Before Expense Limitation		24.59	%⁽⁸⁾		18.96	%		20.92	%		19.05	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.14	%⁽⁵⁾⁽⁸⁾		1.15	%⁽⁵⁾		1.14	%⁽⁵⁾		1.14	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Income (Loss)		1.04	%⁽⁵⁾⁽⁸⁾		(0.42	)%⁽⁵⁾		(0.10	)%⁽⁵⁾		(0.97	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.01	%⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		8	%⁽⁷⁾		73	%		25	%		0	%⁽⁷⁾

(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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the China Equity Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, 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 established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

• Level 1 — unadjusted quoted prices in active markets for identical investments

• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 — significant unobservable inputs including the Fund's own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer's financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Banks	$	—	$	412	$	—	$	412
Beverages		—		1,027		—		1,027
Biotechnology		—		40		—		40
Electrical Equipment		—		198		—		198
Entertainment		—		300		—		300
Food Products		—		636		—		636

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Health Care Equipment & Supplies	$	—	$	183	$	—	$	183
Household Durables		—		238		—		238
Interactive Media & Services		—		1,412		—		1,412
Internet & Direct Marketing Retail		309		1,228		—		1,537
Life Sciences Tools & Services		—		352		—		352
Machinery		—		259		—		259
Personal Products		—		248		—		248
Real Estate Management & Development		167		—		—		167
Semiconductors & Semiconductor Equipment		—		165		—		165
Specialty Retail		—		462		—		462
Textiles, Apparel & Luxury Goods		—		649		—		649
Total Common Stocks		476		7,809		—		8,285
Warrant		—		101		—		101
Short-Term Investment
Investment Company		1,019		—		—		1,019
Total Assets	$	1,495	$	7,910	$	—	$	9,405

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.

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

4. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares and Class R6 shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

B. Advisory/Sub-Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Fund with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.80% 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 1.20% for Class I shares, 1.55% for Class A shares, 2.30% for Class C shares and 1.15% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $38,000 of advisory fees were waived and approximately $71,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Fund's average daily net assets attributable to Class A shares.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $743,000 and $1,933,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the

Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	544			$	1,489			$	1,014			$	2

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	1,019

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the three-year period ended December 31, 2021 remains subject to examination by taxing authorities.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	241	$	160	$	180	$	—

The Fund had no permanent differences causing reclassifications among the components of net assets for the year ended December 31, 2021.

At December 31, 2021, 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)
$—				$50

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$—@				$—

@ Amount is less than $500.

J. Other: At June 30, 2022, the Fund did not have record owners of 10% or greater.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

these factors for an extended period, the Fund's investment results may be adversely affected.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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 below its peer group average for the one-year period and the period since the end of October 2019, the month of the Fund's inception. 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

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

Resources of the Adviser and Historical Relationship Between the Fund and the Adviser

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-Adviser

Morgan Stanley Investment Management Company
23 Church Street
16-01 Capital Square, Singapore 049481

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFICEQSAN
4879453 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					9
Consolidated Statement of Operations					10
Consolidated Statements of Changes in Net Assets					11
Consolidated Financial Highlights					12
Notes to Consolidated Financial Statements					16
Investment Advisory Agreement Approval					28
Liquidity Risk Management Program					30
U.S. Customer Privacy Notice					31
Director and Officer Information					34

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Counterpoint Global Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Counterpoint Global Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Counterpoint Global Portfolio Class I	$	1,000.00	$	518.60	$	1,019.59	$	3.95	$	5.26		1.05	%
Counterpoint Global Portfolio Class A		1,000.00		517.80		1,017.85		5.27		7.00		1.40
Counterpoint Global Portfolio Class C		1,000.00		516.00		1,014.13		8.08		10.74		2.15
Counterpoint Global Portfolio Class R6⁽¹⁾		1,000.00		518.60		1,019.84		3.77		5.01		1.00

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Counterpoint Global Portfolio

	Shares		Value (000)
Common Stocks (96.1%)
Argentina (0.2%)
Globant SA (a)		127	$	22
Australia (0.7%)
Brookfield Infrastructure Partners LP		1,950		75
Redbubble Ltd. (a)		5,601		3
				78
Belgium (0.1%)
Argenx SE ADR (a)		37		14
Brazil (0.4%)
B3 SA — Brasil Bolsa Balcao		910		2
Magazine Luiza SA		5,336		2
NU Holdings Ltd., Class A (a)		6,211		23
Vale SA		950		14
				41
Canada (5.9%)
Brookfield Asset Management, Inc., Class A		2,154		96
Canada Goose Holdings, Inc. (a)		2,449		44
Canadian National Railway Co.		564		63
Colliers International Group, Inc.		277		30
Constellation Software, Inc.		78		116
FirstService Corp.		146		18
Shopify, Inc., Class A (a)		6,310		197
Topicus.com, Inc. (a)		1,120		63
				627
China (2.3%)
360 DigiTech, Inc. ADR		305		5
Agora, Inc. ADR (a)		42		—	@
China East Education Holdings Ltd. (b)		2,500		1
China Resources Mixc Lifestyle Services Ltd. (b)		600		3
Foshan Haitian Flavouring & Food Co. Ltd., Class A		4,089		55
Greentown Service Group Co. Ltd. (b)		2,000		2
Haidilao International Holding Ltd. (a)(b)		5,000		12
HUYA, Inc. ADR (a)		675		3
Inner Mongolia Yili Industrial Group Co. Ltd., Class A		500		3
KE Holdings, Inc. ADR (a)		717		13
Kuaishou Technology (a)(b)		1,300		15
Meituan, Class B (a)(b)		2,800		70
Shenzhou International Group Holdings Ltd. (b)		500		6
Tencent Holdings Ltd. (b)		300		14
Trip.com Group Ltd. ADR (a)		1,327		36
Weimob, Inc. (a)(b)		3,000		2
				240
Denmark (2.6%)
Chr Hansen Holding AS		749		55
DSV AS		1,511		212
Novo Nordisk AS Series B		60		7
				274
Finland (0.2%)
Revenio Group Oyj		425		19

	Shares		Value (000)
France (2.9%)
Christian Dior SE		57	$	34
EssilorLuxottica SA		397		60
Hermes International		126		142
L'Oreal SA		53		18
Pernod Ricard SA		192		36
Remy Cointreau SA		112		20
				310
Germany (1.8%)
Adidas AG		651		116
HelloFresh SE (a)		1,108		36
Puma SE		591		39
				191
Hong Kong (0.5%)
AIA Group Ltd.		4,600		50
India (3.6%)
HDFC Bank Ltd. ADR		5,543		305
ICICI Bank Ltd. ADR		3,331		59
IndusInd Bank Ltd.		888		9
Shree Cement Ltd.		19		5
Zomato Ltd. (a)		2,174		1
				379
Indonesia (0.0%) (c)
Avia Avian Tbk PT		57,800		3
Israel (0.9%)
Global-e Online Ltd. (a)		4,384		88
ironSource Ltd., Class A (a)		1,887		5
				93
Italy (2.0%)
Brunello Cucinelli SpA		377		17
Davide Campari-Milano NV		5,312		56
Moncler SpA		3,212		138
				211
Japan (1.5%)
Change, Inc.		600		9
Keyence Corp.		300		103
Nintendo Co. Ltd.		100		43
				155
Korea, Republic of (0.4%)
KakaoBank Corp. (a)		638		15
NAVER Corp.		153		28
				43
Mexico (0.0%) (c)
Grupo Aeroportuario del Sureste SAB de CV, Class B		85		2
Netherlands (5.1%)
Adyen NV (a)		134		193
ASML Holding NV		206		97
ASML Holding NV (Registered)		411		196
Basic-Fit NV (a)		807		31
Universal Music Group NV		899		18
				535

The accompanying notes are an integral part of the consolidated financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Counterpoint Global Portfolio

	Shares		Value (000)
Norway (0.2%)
AutoStore Holdings Ltd. (a)		9,491	$	14
Kahoot! ASA (a)		1,076		2
				16
Singapore (2.9%)
Grab Holdings Ltd., Class A (a)		50,109		127
Sea Ltd. ADR (a)		2,709		181
				308
Sweden (0.9%)
Evolution AB		444		41
INVISIO AB		1,253		18
Kinnevik AB, Class B (a)		1,099		18
Vitrolife AB		882		20
				97
Switzerland (1.1%)
Kuehne & Nagel International AG (Registered)		196		47
On Holding AG, Class A (a)		876		16
Straumann Holding AG (Registered)		419		50
				113
Taiwan (0.8%)
Taiwan Semiconductor Manufacturing Co. Ltd.		5,000		80
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		53		4
				84
United Kingdom (3.5%)
Abcam PLC (a)		390		6
Angle PLC (a)		4,138		5
Atlassian Corp., PLC, Class A (a)		176		33
Babcock International Group PLC (a)		11,511		43
Deliveroo PLC (a)		21,733		24
Diageo PLC		833		36
Fevertree Drinks PLC		380		6
Rentokil Initial PLC		11,166		65
Rightmove PLC		7,107		49
Victoria PLC (a)		19,344		106
				373
United States (55.6%)
10X Genomics, Inc., Class A (a)		1,718		78
23andMe Holding Co. (a)		1,793		4
4D Molecular Therapeutics, Inc. (a)		161		1
Adobe, Inc. (a)		167		61
Affirm Holdings, Inc. (a)		5,688		103
Agilon health, Inc. (a)		11,283		246
Airbnb, Inc., Class A (a)		38		3
Alignment Healthcare, Inc. (a)		492		6
Alnylam Pharmaceuticals, Inc. (a)		2		—	@
Amazon.com, Inc. (a)		1,365		145
American Tower Corp. REIT		8		2
Anterix, Inc. (a)		1,144		47
Appian Corp. (a)		1,698		80
AppLovin Corp., Class A (a)		1,355		47
ATAI Life Sciences NV (a)		1,318		5
Aurora Innovation, Inc. (a)		2,793		5

	Shares		Value (000)
AutoZone, Inc. (a)		2	$	4
Avalara, Inc. (a)		122		9
Axon Enterprise, Inc. (a)		165		15
Ball Corp.		67		5
BARK, Inc. (a)		2,935		4
Beam Therapeutics, Inc. (a)		116		4
Berkshire Hathaway, Inc., Class B (a)		26		7
Big Sky Growth Partners, Inc. (Units) SPAC (a)(d)		1,441		14
Bill.Com Holdings, Inc. (a)		1,244		137
Block, Inc., Class A (a)		1,220		75
Brown & Brown, Inc.		248		14
C4 Therapeutics, Inc. (a)		171		1
Cadence Design Systems, Inc. (a)		6		1
Calix, Inc. (a)		459		16
Cardlytics, Inc. (a)		1,503		34
Carvana Co. (a)		2,569		58
Century Therapeutics, Inc. (a)		312		3
Chewy, Inc., Class A (a)		765		27
Cintas Corp.		3		1
Cipher Mining, Inc. (a)		3,629		5
Clear Secure, Inc., Class A (a)		765		15
Clearwater Analytics Holdings, Inc. (a)		411		5
Cloudflare, Inc., Class A (a)		5,040		220
Coinbase Global, Inc., Class A (a)		362		17
Confluent, Inc., Class A (a)		533		12
Copart, Inc. (a)		16		2
CoStar Group, Inc. (a)		33		2
Costco Wholesale Corp.		2		1
Coupa Software, Inc. (a)		39		2
Coupang, Inc. (a)		13,659		174
Cricut, Inc., Class A (a)		11,272		69
Danaher Corp.		63		16
Datadog, Inc., Class A (a)		1,589		151
DexCom, Inc. (a)		7		1
Dlocal Ltd. (a)		2,499		66
Domino's Pizza, Inc.		48		19
DoorDash, Inc., Class A (a)		1,899		122
Doximity, Inc., Class A (a)		4,631		161
Duolingo, Inc. (a)		262		23
Ecolab, Inc.		26		4
Endeavor Group Holdings, Inc., Class A (a)		788		16
EVI Industries, Inc. (a)		309		3
Farfetch Ltd., Class A (a)		7,392		53
Fastenal Co.		17		1
Fastly, Inc., Class A (a)		7,580		88
Fate Therapeutics, Inc. (a)		204		5
Figs, Inc., Class A (a)		1,988		18
Floor & Decor Holdings, Inc., Class A (a)		811		51
GH Research PLC (a)		379		4
Ginkgo Bioworks Holdings, Inc. (a)		6,688		16
Gitlab, Inc., Class A (a)		1,091		58
GoodRx Holdings, Inc., Class A (a)		11,105		66
Graphite Bio, Inc. (a)		449		1
Guardant Health, Inc. (a)		829		33

The accompanying notes are an integral part of the consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Counterpoint Global Portfolio

	Shares		Value (000)
United States (cont'd)
HashiCorp, Inc., Class A (a)		301	$	9
HEICO Corp., Class A		160		17
Heliogen, Inc. (a)		4,442		9
Home Depot, Inc.		65		18
IAC/InterActiveCorp (a)		20		2
IDEXX Laboratories, Inc. (a)		2		1
Illumina, Inc. (a)		20		4
Inspire Medical Systems, Inc. (a)		28		5
Intellia Therapeutics, Inc. (a)		459		24
Intercontinental Exchange, Inc.		182		17
Intuitive Surgical, Inc. (a)		99		20
Joby Aviation, Inc. (a)		988		5
Latch, Inc. (a)		1,634		2
Linde PLC		22		6
Lockheed Martin Corp.		6		3
Marqeta, Inc., Class A (a)		1,983		16
Martin Marietta Materials, Inc.		5		1
Mastercard, Inc., Class A		125		39
Match Group, Inc. (a)		14		1
MaxCyte, Inc. (a)		1,108		5
McCormick & Co. Inc.		10		1
McDonald's Corp.		8		2
Meli Kaszek Pioneer Corp., SPAC (a)		2,138		21
Membership Collective Group, Inc., Class A (a)		1,980		13
MercadoLibre, Inc. (a)		289		184
Meta Platforms, Inc., Class A (a)		476		77
MicroStrategy, Inc., Class A (a)		53		9
Moderna, Inc. (a)		28		4
MongoDB, Inc. (a)		243		63
MP Materials Corp. (a)		375		12
NanoString Technologies, Inc. (a)		230		3
Netflix, Inc. (a)		5		1
NVR, Inc. (a)		1		4
Oak Street Health, Inc. (a)		305		5
Okta, Inc. (a)		13		1
Olo, Inc., Class A (a)		3,642		36
Opendoor Technologies, Inc. (a)		901		4
Outset Medical, Inc. (a)		206		3
Overstock.com, Inc. (a)		4,616		115
Party City Holdco, Inc. (a)		11,185		15
Peloton Interactive, Inc., Class A (a)		2,809		26
Pool Corp.		47		16
Privia Health Group, Inc. (a)		585		17
Procore Technologies, Inc. (a)		786		36
Progressive Corp.		370		43
Qualtrics International, Inc., Class A (a)		356		4
Redfin Corp. (a)		481		4
Relay Therapeutics, Inc. (a)		169		3
Ribbit LEAP Ltd. (Units) SPAC (a)(d)		785		8
Rivian Automotive, Inc., Class A (a)		172		4
ROBLOX Corp., Class A (a)		3,924		129

	Shares		Value (000)
Rollins, Inc.		163	$	6
Roper Technologies, Inc.		4		2
Royal Gold, Inc.		165		18
Royalty Pharma PLC, Class A		9,061		381
S&P Global, Inc.		56		19
Salesforce.com, Inc. (a)		763		126
Samsara, Inc., Class A (a)		3,309		37
Schrodinger, Inc. (a)		227		6
Seer, Inc. (a)		547		5
Senti Biosciences, Inc. (a)		713		1
Senti Biosciences, Inc. (a)(e)		124		—	@
Senti Biosciences, Inc. Founder Shares (a)(e)		298		1
Service Corp. International		284		20
ServiceNow, Inc. (a)		365		174
Sherwin-Williams Co.		4		1
Signify Health, Inc., Class A (a)		295		4
Snowflake, Inc., Class A (a)		2,307		321
SomaLogic, Inc. (a)		944		4
Spotify Technology SA (a)		476		45
Standard BioTools Inc. (a)		2,518		4
Starbucks Corp.		11		1
Synopsys, Inc. (a)		4		1
TCV Acquisition Corp., Class A SPAC (a)		829		8
Teladoc Health, Inc. (a)		90		3
Texas Pacific Land Corp.		20		30
Thermo Fisher Scientific, Inc.		4		2
Trade Desk, Inc. Class A (a)		3,579		150
TransDigm Group, Inc. (a)		6		3
Trupanion, Inc. (a)		91		5
Twilio, Inc., Class A (a)		9		1
Tyler Technologies, Inc. (a)		7		2
Uber Technologies, Inc. (a)		7,679		157
UiPath, Inc., Class A (a)		281		5
Unity Software, Inc. (a)		1,648		61
Upstart Holdings, Inc. (a)		639		20
Upwork, Inc. (a)		603		12
UTZ Brands, Inc.		1,341		19
Veeva Systems, Inc., Class A (a)		509		101
Visa, Inc., Class A		246		48
Walt Disney Co. (a)		669		63
Warby Parker, Inc., Class A (a)		306		3
Waste Connections, Inc.		168		21
Watsco, Inc.		4		1
Wayfair, Inc., Class A (a)		477		21
WeWork, Inc., Class A REIT (a)		2,404		12
Zillow Group, Inc., Class A (a)		149		5
Zoetis, Inc.		4		1
Zoom Video Communications, Inc., Class A (a)		528		57
ZoomInfo Technologies, Inc., Class A (a)		1,838		61
Zymergen, Inc. (a)		1,649		2
				5,880
Total Common Stocks (Cost $12,801)				10,158

The accompanying notes are an integral part of the consolidated financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Counterpoint Global Portfolio

	Shares		Value (000)
Preferred Stock (0.3%)
United States (0.3%)
Databricks, Inc. (a)(e)(f) (acquisition cost — $44; acquired 8/31/21) (Cost $44)		198	$	35
Investment Companies (0.8%)
United Kingdom (0.1%)
Hipgnosis Songs Fund Ltd.		9,716		13
United States (0.7%)
Grayscale Bitcoin Trust (a)		5,535		67
Total Investment Companies (Cost $264)				80
	No. of Warrants
Warrants (0.0%) (c)
United States (0.0%) (c)
BARK, Inc. expires 5/1/26 (a)		373		—	@
Ginkgo Bioworks Holdings, Inc. expires 12/31/27 (a)		261		—	@
SomaLogic, Inc. expires 8/31/26 (a)		96		—	@
Total Warrants (Cost $3)				—	@

	Shares		Value (000)
Short-Term Investment (1.9%)
Investment Company (1.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $204)		204,292	$	204
Total Investments Excluding Purchased Options (99.1%) (Cost $13,316)				10,477
Total Purchased Options Outstanding (0.0%) (c) (Cost $63)				4
Total Investments (99.1%) (Cost $13,379) (g)(h)(i)				10,481
Other Assets in Excess of Liabilities (0.9%)				92
Net Assets (100.0%)			$	10,573

The Fund had the following Derivative Contract — PIPE open at June 30, 2022:

Counterparty				Referenced Obligation				Notional Amount				Settlement Date				Unrealized Depreciation (000)				% of Net Assets
Social Capital Suvretta Holdings Corp.III				ProKidney, LP. (a)(e)(f)(j)(k)					38,020			12/30/22				$	(5	)			(0.05	)%

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(d) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.

(e) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The 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 and derivative contract (excluding 144A holdings) at June 30, 2022 amounts to approximately $31,000 and represents 0.3% of net assets.

(f) At June 30, 2022, the Fund held a fair valued security and derivative contract at approximately $30,000, representing 0.3% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.

(g) The approximate fair value and percentage of net assets, $2,439,000 and 23.1%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Consolidated Financial Statements.

(h) Securities are available for collateral in connection with a derivative contract - PIPE and purchased options.

(i) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,191,000 and the aggregate gross unrealized depreciation is approximately $4,094,000, resulting in net unrealized depreciation of approximately $2,903,000.

(j) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 3,802 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between ProKidney, LP., and Social Capital Suvretta Holdings Corp.III, a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transaction will require the approval of the shareholders of both Social Capital Suvretta Holdings Corp.III, and ProKidney, LP., and is subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the Fund is no longer obligated to fulfill its commitment to Social Capital Suvretta Holdings Corp.III, and ProKidney, LP. The investment is restricted from resale until the settlement date.

ADR American Depositary Receipt.

PIPE Private Investment in Public Equity.

REIT Real Estate Investment Trust.

SPAC Special Purpose Acquisition Company.

The accompanying notes are an integral part of the consolidated financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Counterpoint Global Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
Goldman Sachs International	USD/CNH	CNH	7.27	Nov-22		4,041,028		4,041	$	4		$	19	$	(15	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.28	Jul-22		3,914,073		3,914		—	@		18		(18	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		2,533,588		2,534		—	@		17		(17	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		1,595,646		1,596		—	@		9		(9	)
									$	4		$	63	$	(59	)

@ Value is less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Others*		55.6	%
Software		14.8
Information Technology Services		14.0
Internet & Direct Marketing Retail		9.8
Textiles, Apparel & Luxury Goods		5.8
Total Investments		100.0	%**

* Industries and/or investment types representing less than 5% of total investments.

** Does not include an open PIPE contract with unrealized depreciation of approximately $5,000.

The accompanying notes are an integral part of the consolidated financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Counterpoint Global Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $13,175)	$	10,277
Investment in Security of Affiliated Issuer, at Value (Cost $204)		204
Total Investments in Securities, at Value (Cost $13,379)		10,481
Foreign Currency, at Value (Cost $46)		46
Cash		1
Due from Adviser		58
Receivable for Investments Sold		14
Dividends Receivable		5
Receivable for Fund Shares Sold		5
Tax Reclaim Receivable		2
Receivable from Affiliate		—	@
Other Assets		79
Total Assets		10,691
Liabilities:
Payable for Custodian Fees		29
Payable for Professional Fees		28
Payable for Investments Purchased		19
Unrealized Depreciation on Derivative Contract — PIPE		5
Payable for Sub Transfer Agency Fees — Class I		2
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class R6*		—	@
Payable for Administration Fees		1
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Fund Shares Redeemed		—	@
Other Liabilities		33
Total Liabilities		118
Net Assets	$	10,573
Net Assets Consist of:
Paid-in-Capital	$	17,640
Total Accumulated Loss		(7,067	)
Net Assets	$	10,573
CLASS I:
Net Assets	$	9,148
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,151,218
Net Asset Value, Offering and Redemption Price Per Share	$	7.95
CLASS A:
Net Assets	$	1,344
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		171,513
Net Asset Value, Redemption Price Per Share	$	7.84
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.43
Maximum Offering Price Per Share	$	8.27
CLASS C:
Net Assets	$	71
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		9,396
Net Asset Value, Offering and Redemption Price Per Share	$	7.59
CLASS R6:*
Net Assets	$	10
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,267
Net Asset Value, Offering and Redemption Price Per Share	$	7.96

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Counterpoint Global Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $4 of Foreign Taxes Withheld)	$	35
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		36
Expenses:
Professional Fees		74
Advisory Fees (Note B)		66
Custodian Fees (Note F)		46
Registration Fees		21
Pricing Fees		9
Shareholder Reporting Fees		9
Administration Fees (Note C)		7
Sub Transfer Agency Fees — Class I		5
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class C		—	@
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Shareholder Services Fees — Class A (Note D)		2
Distribution and Shareholder Services Fees — Class C (Note D)		1
Directors' Fees and Expenses		2
Interest Expenses		1
Other Expenses		7
Total Expenses		256
Expenses Reimbursed by Adviser (Note B)		(93	)
Waiver of Advisory Fees (Note B)		(66	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(4	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(—	@)
Net Expenses		90
Net Investment Loss		(54	)
Realized Loss:
Investments Sold		(3,361	)
Foreign Currency Translation		(4	)
Net Realized Loss		(3,365	)
Change in Unrealized Appreciation (Depreciation):
Investments		(8,464	)
Foreign Currency Translation		(—	@)
Derivative Contracts — PIPE		(5	)
Net Change in Unrealized Appreciation (Depreciation)		(8,469	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(11,834	)
Net Decrease in Net Assets Resulting from Operations	$	(11,888	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Counterpoint Global Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(54	)	$	(218	)
Net Realized Gain (Loss)		(3,365	)		3,524
Net Change in Unrealized Appreciation (Depreciation)		(8,469	)		(3,702	)
Net Decrease in Net Assets Resulting from Operations		(11,888	)		(396	)
Dividends and Distributions to Shareholders:
Class I		—			(4,424	)
Class A		—			(407	)
Class C		—			(34	)
Class R6*		—			(4	)
Total Dividends and Distributions to Shareholders		—			(4,869	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		1,029			6,393
Distributions Reinvested		—			4,424
Redeemed		(7,227	)		(4,112	)
Class A:
Subscribed		1,087			3,945
Distributions Reinvested		—			407
Redeemed		(1,983	)		(875	)
Class C:
Subscribed		—			183
Distributions Reinvested		—			34
Redeemed		(31	)		(12	)
Class R6:*
Distributions Reinvested		—			4
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(7,125	)		10,391
Total Increase (Decrease) in Net Assets		(19,013	)		5,126
Net Assets:
Beginning of Period		29,586			24,460
End of Period	$	10,573		$	29,586
(1) Capital Share Transactions:
Class I:
Shares Subscribed		88			345
Shares Issued on Distributions Reinvested		—			293
Shares Redeemed		(620	)		(203	)
Net Increase (Decrease) in Class I Shares Outstanding		(532	)		435
Class A:
Shares Subscribed		105			220
Shares Issued on Distributions Reinvested		—			27
Shares Redeemed		(171	)		(46	)
Net Increase (Decrease) in Class A Shares Outstanding		(66	)		201
Class C:
Shares Subscribed		—			9
Shares Issued on Distributions Reinvested		—			2
Shares Redeemed		(3	)		(1	)
Net Increase (Decrease) in Class C Shares Outstanding		(3	)		10
Class R6:*
Shares Issued on Distributions Reinvested		—			—	@

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than 500 shares.

The accompanying notes are an integral part of the consolidated financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Counterpoint Global Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 29, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	15.33		$	19.01		$	11.32		$	8.46		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.03	)		(0.16	)		(0.11	)		(0.03	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		(7.35	)		(0.01	)		8.34			2.89			(1.41	)
Total from Investment Operations		(7.38	)		(0.17	)		8.23			2.86			(1.44	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.03	)
Net Realized Gain		—			(3.51	)		(0.54	)		—			—
Paid-in-Capital		—			—			—			—			(0.07	)
Total Distributions		—			(3.51	)		(0.54	)		—			(0.10	)
Net Asset Value, End of Period	$	7.95		$	15.33		$	19.01		$	11.32		$	8.46
Total Return⁽⁴⁾		(48.14	)%⁽⁷⁾		(0.58	)%		72.70	%		33.81	%		(14.36	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9,148		$	25,794		$	23,717		$	10,097		$	5,733
Ratio of Expenses Before Expense Limitation		3.03	%⁽⁸⁾		2.39	%		3.29	%		5.22	%		6.83	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.05	%⁽⁵⁾⁽⁸⁾		1.05	%⁽⁵⁾		1.04	%⁽⁵⁾		1.03	%⁽⁵⁾		1.03	%⁽⁵⁾⁽⁸⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.05	%⁽⁵⁾⁽⁸⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(0.62	)%⁽⁵⁾⁽⁸⁾		(0.76	)%⁽⁵⁾		(0.79	)%⁽⁵⁾		(0.25	)%⁽⁵⁾		(0.54	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		32	%⁽⁷⁾		68	%		116	%		67	%		54	%⁽⁷⁾

(1) Not consolidated.

(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.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Counterpoint Global Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 29, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	15.14		$	18.89		$	11.28		$	8.47		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.05	)		(0.23	)		(0.19	)		(0.06	)		(0.04	)
Net Realized and Unrealized Gain (Loss)		(7.25	)		(0.01	)		8.34			2.87			(1.40	)
Total from Investment Operations		(7.30	)		(0.24	)		8.15			2.81			(1.44	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.03	)
Net Realized Gain		—			(3.51	)		(0.54	)		—			—
Paid-in-Capital		—			—			—			—			(0.06	)
Total Distributions		—			(3.51	)		(0.54	)		—			(0.09	)
Net Asset Value, End of Period	$	7.84		$	15.14		$	18.89		$	11.28		$	8.47
Total Return⁽⁴⁾		(48.22	)%⁽⁷⁾		(0.95	)%		72.25	%		33.18	%		(14.44	)%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,344		$	3,598		$	696		$	15		$	8
Ratio of Expenses Before Expense Limitation		3.51	%⁽⁸⁾		2.89	%		4.61	%		23.73	%		26.82	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.40	%⁽⁵⁾⁽⁸⁾		1.40	%⁽⁵⁾		1.39	%⁽⁵⁾		1.39	%⁽⁵⁾		1.39	%⁽⁵⁾⁽⁸⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.40	%⁽⁵⁾⁽⁸⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(0.97	)%⁽⁵⁾⁽⁸⁾		(1.12	)%⁽⁵⁾		(1.16	)%⁽⁵⁾		(0.62	)%⁽⁵⁾		(0.91	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%⁽⁸⁾
Portfolio Turnover Rate		32	%⁽⁷⁾		68	%		116	%		67	%		54	%⁽⁷⁾

(1) Not consolidated.

(2) Commencement of Operations.

(3) Per share amount is based on average shares outstanding.

(4) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Counterpoint Global Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 29, 2018⁽²⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽¹⁾			2019⁽¹⁾			December 31, 2018⁽¹⁾
Net Asset Value, Beginning of Period	$	14.71		$	18.60		$	11.20		$	8.47		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.09	)		(0.38	)		(0.27	)		(0.14	)		(0.08	)
Net Realized and Unrealized Gain (Loss)		(7.03	)		0.00	⁽⁴⁾		8.21			2.87			(1.40	)
Total from Investment Operations		(7.12	)		(0.38	)		7.94			2.73			(1.48	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.02	)
Net Realized Gain		—			(3.51	)		(0.54	)		—			—
Paid-in-Capital		—			—			—			—			(0.03	)
Total Distributions		—			(3.51	)		(0.54	)		—			(0.05	)
Net Asset Value, End of Period	$	7.59		$	14.71		$	18.60		$	11.20		$	8.47
Total Return⁽⁵⁾		(48.40	)%⁽⁸⁾		(1.73	)%		70.89	%		32.23	%		(14.80	)%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	71		$	175		$	27		$	11		$	8
Ratio of Expenses Before Expense Limitation		6.31	%⁽⁹⁾		6.40	%		18.57	%		24.53	%		27.44	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		2.15	%⁽⁶⁾⁽⁹⁾		2.15	%⁽⁶⁾		2.14	%⁽⁶⁾		2.14	%⁽⁶⁾		2.14	%⁽⁶⁾⁽⁹⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.15	%⁽⁶⁾⁽⁹⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(1.71	)%⁽⁶⁾⁽⁹⁾		(1.93	)%⁽⁶⁾		(1.90	)%⁽⁶⁾		(1.37	)%⁽⁶⁾		(1.66	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.01	%		0.01	%⁽⁹⁾
Portfolio Turnover Rate		32	%⁽⁸⁾		68	%		116	%		67	%		54	%⁽⁸⁾

(1) Not consolidated.

(2) Commencement of Operations.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Counterpoint Global Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,									Period from June 29, 2018⁽³⁾ to
Selected Per Share Data and Ratios	(unaudited)			2021			2020⁽²⁾			2019⁽²⁾			December 31, 2018⁽²⁾
Net Asset Value, Beginning of Period	$	15.35		$	19.03		$	11.32		$	8.46		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽⁴⁾		(0.03	)		(0.15	)		(0.10	)		(0.02	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		(7.36	)		(0.02	)		8.35			2.88			(1.41	)
Total from Investment Operations		(7.39	)		(0.17	)		8.25			2.86			(1.43	)
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.03	)
Net Realized Gain		—			(3.51	)		(0.54	)		—			—
Paid-in-Capital		—			—			—			—			(0.08	)
Total Distributions		—			(3.51	)		(0.54	)		—			(0.11	)
Net Asset Value, End of Period	$	7.96		$	15.35		$	19.03		$	11.32		$	8.46
Total Return⁽⁵⁾		(48.14	)%⁽⁸⁾		(0.59	)%		72.88	%		33.81	%		(14.34	)%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10		$	19		$	20		$	11		$	8
Ratio of Expenses Before Expense Limitation		16.05	%⁽⁹⁾		12.66	%		19.31	%		23.44	%		26.39	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		1.00	%⁽⁶⁾⁽⁹⁾		1.00	%⁽⁶⁾		0.99	%⁽⁶⁾		0.99	%⁽⁶⁾		0.99	%⁽⁶⁾⁽⁹⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.00	%⁽⁶⁾⁽⁹⁾		N/A			N/A			N/A			N/A
Ratio of Net Investment Loss		(0.56	)%⁽⁶⁾⁽⁹⁾		(0.71	)%⁽⁶⁾		(0.74	)%⁽⁶⁾		(0.22	)%⁽⁶⁾		(0.51	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%		0.01	%		0.01	%⁽⁹⁾
Portfolio Turnover Rate		32	%⁽⁸⁾		68	%		116	%		67	%		54	%⁽⁸⁾

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Not consolidated.

(3) Commencement of Operations.

(4) Per share amount is based on average shares outstanding.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
15

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Counterpoint Global Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Counterpoint Global Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary represented approximately $80,000 or approximately 0.76% of the total net assets of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, 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 established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service

and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (7) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; 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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	38	$	61	$	—	$	99
Air Freight & Logistics		—		212		—		212
Airlines		5		—		—		5
Automobiles		4		—		—		4
Banks		387		24		—		411
Beverages		—		154		—		154
Biotechnology		61		27		—		88
Capital Markets		151		—		—		151
Chemicals		29		58		—		87
Commercial Services & Supplies		35		67		—		102
Communications Equipment		16		—		—		16
Construction Materials		1		5		—		6

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)
Consumer Finance	$	25	$	—	$	—	$	25
Containers & Packaging		5		—		—		5
Distributors		16		—		—		16
Diversified Consumer Services		43		1		—		44
Diversified Financial Services		7		18		—		25
Diversified Holding Companies		51		—		—		51
Diversified Telecommunication Services		47		—		—		47
Electrical Equipment		9		—		—		9
Electronic Equipment, Instruments & Components		—		103		—		103
Entertainment		438		63		—		501
Equity Real Estate Investment Trusts (REITs)		2		—		—		2
Food & Staples Retailing		1		36		—		37
Food Products		20		58		—		78
Health Care Equipment & Supplies		43		74		—		117
Health Care Providers & Services		315		—		—		315
Health Care Technology		342		—		—		342
Hotels, Restaurants & Leisure		74		84		—		158
Household Durables		73		106		—		179
Information Technology Services		1,260		202		—		1,462
Insurance		62		50		—		112
Interactive Media & Services		141		106		—		247
Internet & Direct Marketing Retail		933		98		—		1,031
Leisure Products		26		—		—		26
Life Sciences Tools & Services		121		—		—		121
Machinery		—		14		—		14
Marine		—		47		—		47
Media		34		—		—		34
Metals & Mining		44		—		—		44
Multi-Line Retail		2		—		—		2
Multi-Utilities		75		—		—		75
Oil, Gas & Consumable Fuels		30		—		—		30
Personal Products		—		18		—		18
Pharmaceuticals		391		7		—		398
Professional Services		14		—		—		14
Real Estate Management & Development		86		3		—		89
Road & Rail		347		—		—		347
Semiconductors & Semiconductor Equipment		200		177		—		377
Software		1,511		2		—		1,513
Specialty Retail		149		—		—		149

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

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)
Textiles, Apparel & Luxury Goods	$	60		$	552	$	—		$	612
Trading Companies & Distributors		5			—		—			5
Transportation Infrastructure		2			—		—			2
Total Common Stocks		7,731			2,427		—			10,158
Preferred Stock
Software		—			—		35			35
Investment Companies		67			13		—			80
Warrants		—	@		—		—			—	@
Call Options Purchased		—			4		—			4
Short-Term Investment
Investment Company		204			—		—			204
Total Assets		8,002			2,444		35			10,481
Liabilities:
Derivative Contract — PIPE		—			—		(5	)		(5	)
Total	$	8,002		$	2,444	$	30		$	10,476

@ 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:

	Preferred Stock (000)			Derivative Contract — PIPE (000)
Beginning Balance	$	45		$	(—	@)
Purchases		—			—
Sales		—			—
PIPE transactions		—			(5	)
Amortization of discount		—			—
Transfers in		—			—
Transfers out		—			—
Corporate actions		—			—
Change in unrealized appreciation (depreciation)		(10	)		—
Realized gains (losses)		—			—
Ending Balance	$	35		$	(5	)
Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2022	$	(10	)	$	(5	)

@ Amount is less than $500.

Fair Value at
June 30, 2022
(000)

Valuation
Technique

Unobservable
Input

Amount*

Impact to
Valuation from an
Increase in Input**

Preferred Stock

Discounted Cash Flow

Weighted Average
Cost of Capital
Perpetual Growth Rate

13.5%
3.5%

Decrease
Increase

Market Comparable
Companies

Enterprise Value/
Revenue

25.0x

Increase

Discount for Lack
of Marketability

14.0%

Decrease

PIPE

)

Market Implied

Discount for Lack
of Marketability and
Transaction Risk

14.0%

Decrease

* Amount is indicative of the weighted average.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

3. Foreign Currency Translation and Foreign Investments: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

– investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

– investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Consolidated Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

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:

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.

At June 30, 2022, the Fund's derivative contract PIPE position is reflected as a Derivative Contract — PIPE in the Consolidated Portfolio of Investments.

The following tables set forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Liability Derivatives
Consolidated
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

PIPE

Unrealized Depreciation on
Derivative Contract — PIPE

Equity Risk

)

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(31	)(b)

(b) Amounts are included in Realized 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)	$	14	(c)
Equity Risk	Derivative Contract — PIPE		(5	)
Total		$	9

(c) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At June 30, 2022, 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 (000)			Liabilities (000)
Purchased Options	$	4	(a)(d)	$	—
Derivative Contract — PIPE		—			(5	)(e)
Total	$	4		$	(5	)

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(d) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

(e) Assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the counterparty certain OTC derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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 (000)		Net Amount (not less than $0) (000)
Goldman Sachs International	$	4		$	—	$	—	$	4
JP Morgan Chase Bank NA		—	@		—		—		—	@
Total	$	4		$	—	$	—	$	4

@ Value is less than $500.

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount		13,141,000
Derivative Contract — PIPE:
Average monthly notional amount	$	39,000

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 Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
	0.80	%			0.75	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.00% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.05% for Class I shares, 1.40% for Class A shares, 2.15% for Class C shares and 1.00% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $66,000 of advisory fees were waived and approximately $100,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $5,218,000 and $7,779,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	2,042			$	5,422			$	7,260			$	1

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	204

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Expenses" in the Consolidated Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended December 31, 2021 remains subject to examination by taxing authorities.

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	2,976	$	1,893	$	442	$	232

Permanent differences, due to a nondeductible offering costs related to the Subsidiary, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	—	@		$	(—	@)

@ Amount is less than $500.

At December 31, 2021, 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)
$	10			$	—

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

defer to January 1, 2022 for U.S. federal income tax purposes the following losses:

Qualified Late Year Ordinary Losses (000)				Post October Capital Losses (000)
$	—			$	121

K. Market Risk and Risks Relating to Certain Financial Instruments:

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 GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

acquisition or that any acquisitions that are completed will be profitable. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. In addition, these securities, which are typically traded in the over-the-counter market, may be considered illiquid and/or be subject to restrictions on resale.

may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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 below its peer group average for the one-year period but better than its peer group average for the three-year period and the period since the end of June 2018, the month of the Fund's inception. 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, actual management fee was lower than its peer group average, and total expense ratio was higher than but close to its peer group average. 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

Resources of the Adviser and Historical Relationship Between the Fund and the Adviser

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-Adviser

Morgan Stanley Investment Management Company
23 Church Street
16-01 Capital Square, Singapore 049481

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIGCPTSAN
4878962 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Developing Opportunity Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Consolidated Expense Example					3
Consolidated Portfolio of Investments					4
Consolidated Statement of Assets and Liabilities					6
Consolidated Statement of Operations					7
Consolidated Statements of Changes in Net Assets					8
Consolidated Financial Highlights					9
Notes to Consolidated Financial Statements					13
Investment Advisory Agreement Approval					22
Liquidity Risk Management Program					24
U.S. Customer Privacy Notice					25
Director and Officer Information					28

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Developing Opportunity Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Expense Example

Developing Opportunity Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Developing Opportunity Portfolio Class I	$	1,000.00	$	676.00	$	1,019.09	$	4.78	$	5.76		1.15	%
Developing Opportunity Portfolio Class A		1,000.00		674.30		1,017.41		6.19		7.45		1.49
Developing Opportunity Portfolio Class C		1,000.00		671.90		1,013.79		9.20		11.08		2.22
Developing Opportunity Portfolio Class R6⁽¹⁾		1,000.00		676.30		1,019.39		4.53		5.46		1.09

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments

Developing Opportunity Portfolio

	Shares		Value (000)
Common Stocks (94.7%)
Argentina (4.3%)
Globant SA (a)		22,939	$	3,991
Brazil (4.8%)
B3 SA — Brasil Bolsa Balcao		668,674		1,400
Magazine Luiza SA		2,553,144		1,142
NU Holdings Ltd., Class A (a)		523,153		1,957
				4,499
China (37.5%)
360 DigiTech, Inc.		84,348		1,459
China East Education Holdings Ltd. (b)		663,000		352
China Resources Beer Holdings Co., Ltd. (b)		226,000		1,689
China Resources Mixc Lifestyle Services Ltd. (b)		203,600		1,012
Foshan Haitian Flavouring & Food Co., Ltd., Class A		220,039		2,978
Haidilao International Holding Ltd. (a)(b)		1,245,000		2,915
HUYA, Inc. ADR (a)		196,868		764
KE Holdings, Inc. ADR (a)		203,574		3,654
Kuaishou Technology (a)(b)		290,200		3,262
Kweichow Moutai Co., Ltd., Class A		11,389		3,483
Meituan, Class B (a)(b)		223,800		5,585
Shenzhou International Group Holdings Ltd. (b)		128,500		1,569
Tencent Holdings Ltd. (b)		52,100		2,358
Trip.com Group Ltd. ADR (a)		127,217		3,492
Yihai International Holding Ltd. (b)		130,000		469
				35,041
India (20.6%)
HDFC Bank Ltd.		415,988		7,126
ICICI Bank Ltd. ADR		377,188		6,691
IndusInd Bank Ltd.		315,493		3,192
Shree Cement Ltd.		6,971		1,684
Zomato Ltd. (a)		749,095		514
				19,207
Indonesia (2.1%)
Avia Avian Tbk PT		35,138,500		1,923
Korea, Republic of (6.0%)
KakaoBank Corp. (a)		91,207		2,131
NAVER Corp.		18,591		3,468
				5,599
Mexico (1.4%)
Grupo Aeroportuario del Sureste SAB de CV, Class B		65,550		1,288
Singapore (3.7%)
Grab Holdings Ltd., Class A (a)		843,417		2,134
Sea Ltd. ADR (a)		20,587		1,376
				3,510
Taiwan (5.9%)
Nien Made Enterprise Co., Ltd.		80,000		790
Silergy Corp.		19,000		1,536
Taiwan Semiconductor Manufacturing Co., Ltd.		199,000		3,189
				5,515

	Shares		Value (000)
United States (8.4%)
Coupang, Inc. (a)		293,368	$	3,740
MercadoLibre, Inc. (a)		6,430		4,095
				7,835
Total Common Stocks (Cost $108,485)				88,408
Investment Company (0.8%)
United States (0.8%)
Grayscale Bitcoin Trust (a) (Cost $2,794)		60,795		733
Short-Term Investment (2.9%)
Investment Company (2.9%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G) (Cost $2,738)		2,737,517		2,738
Total Investments Excluding Purchased Options (98.4%) (Cost $114,017)				91,879
Total Purchased Options Outstanding (0.0%) (c) (Cost $871)				2
Total Investments (98.4%) (Cost $114,888) (d)(e)(f)				91,881
Other Assets in Excess of Liabilities (1.6%)				1,524
Net Assets (100.0%)			$	93,405

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(d) Securities are available for collateral in connection with purchased options.

(e) The approximate fair value and percentage of net assets, $51,225,000 and 54.8%, 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 the Consolidated Financial Statements.

(f) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $9,565,000 and the aggregate gross unrealized depreciation is approximately $32,572,000, resulting in net unrealized depreciation of approximately $23,007,000.

ADR American Depositary Receipt.

The accompanying notes are an integral part of the consolidated financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Consolidated Portfolio of Investments (cont'd)

Developing Opportunity Portfolio

Call Options Purchased:

The Fund had the following call options purchased open at June 30, 2022:

Counterparty	Description	Strike Price		Expiration Date	Number of Contracts		Notional Amount (000)		Value (000)			Premiums Paid (000)		Unrealized Depreciation (000)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.31	Aug-22		86,331,707		86,332	$	2		$	586	$	(584	)
JP Morgan Chase Bank NA	USD/CNH	CNH	7.38	Jul-22		53,625,517		53,626		—	@		285		(285	)
									$	2		$	871	$	(869	)

@ Amount less than $500.

CNH — Chinese Yuan Renminbi Offshore

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Other*		29.1	%
Banks		23.0
Internet & Direct Marketing Retail		15.2
Interactive Media & Services		9.9
Hotels, Restaurants & Leisure		7.0
Beverages		5.6
Semiconductors & Semiconductor Equipment		5.1
Real Estate Management & Development		5.1
Total Investments		100.0	%

* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the consolidated financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Developing Opportunity Portfolio

Consolidated Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $112,150)	$	89,143
Investment in Security of Affiliated Issuer, at Value (Cost $2,738)		2,738
Total Investments in Securities, at Value (Cost $114,888)		91,881
Foreign Currency, at Value (Cost $177)		175
Cash		800
Due from Broker		490
Receivable for Fund Shares Sold		369
Dividends Receivable		142
Receivable from Affiliate		1
Other Assets		71
Total Assets		93,929
Liabilities:
Payable for Investments Purchased		182
Payable for Advisory Fees		136
Payable for Sub Transfer Agency Fees — Class I		63
Payable for Sub Transfer Agency Fees — Class A		3
Payable for Sub Transfer Agency Fees — Class C		1
Payable for Fund Shares Redeemed		65
Payable for Custodian Fees		21
Payable for Professional Fees		19
Payable for Administration Fees		6
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class C		4
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class R6*		—	@
Other Liabilities		22
Total Liabilities		524
Net Assets	$	93,405
Net Assets Consist of:
Paid-in-Capital	$	182,743
Total Accumulated Loss		(89,338	)
Net Assets	$	93,405
CLASS I:
Net Assets	$	82,742
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		10,386,993
Net Asset Value, Offering and Redemption Price Per Share	$	7.97
CLASS A:
Net Assets	$	6,116
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		773,344
Net Asset Value, Redemption Price Per Share	$	7.91
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.44
Maximum Offering Price Per Share	$	8.35
CLASS C:
Net Assets	$	4,539
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		584,652
Net Asset Value, Offering and Redemption Price Per Share	$	7.76
CLASS R6:*
Net Assets	$	8
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	7.98

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the consolidated financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Developing Opportunity Portfolio

Consolidated Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $55 of Foreign Taxes Withheld)	$	627
Dividends from Security of Affiliated Issuer (Note G)		2
Total Investment Income		629
Expenses:
Advisory Fees (Note B)		691
Sub Transfer Agency Fees — Class I		108
Sub Transfer Agency Fees — Class A		5
Sub Transfer Agency Fees — Class C		2
Professional Fees		73
Custodian Fees (Note F)		70
Administration Fees (Note C)		61
Shareholder Services Fees — Class A (Note D)		11
Distribution and Shareholder Services Fees — Class C (Note D)		26
Registration Fees		33
Shareholder Reporting Fees		14
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		1
Directors' Fees and Expenses		3
Pricing Fees		1
Interest Expenses		5
Other Expenses		12
Total Expenses		1,120
Waiver of Advisory Fees (Note B)		(113	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(75	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Net Expenses		929
Net Investment Loss		(300	)
Realized Loss:
Investments Sold (Net of $174 of Capital Gain Country Tax)		(29,357	)
Foreign Currency Translation		(60	)
Net Realized Loss		(29,417	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $137)		(34,768	)
Foreign Currency Translation		(4	)
Net Change in Unrealized Appreciation (Depreciation)		(34,772	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(64,189	)
Net Decrease in Net Assets Resulting from Operations	$	(64,489	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

The accompanying notes are an integral part of the consolidated financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Developing Opportunity Portfolio

Consolidated Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(300	)	$	(2,324	)
Net Realized Loss		(29,417	)		(35,806	)
Net Change in Unrealized Appreciation (Depreciation)		(34,772	)		(28,196	)
Net Decrease in Net Assets Resulting from Operations		(64,489	)		(66,326	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		41,480			144,045
Redeemed		(97,545	)		(122,034	)
Class A:
Subscribed		1,434			17,282
Redeemed		(3,608	)		(12,583	)
Class C:
Subscribed		831			6,936
Redeemed		(1,036	)		(3,551	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(58,444	)		30,095
Redemption Fees		6			11
Total Decrease in Net Assets		(122,927	)		(36,220	)
Net Assets:
Beginning of Period		216,332			252,552
End of Period	$	93,405		$	216,332
(1) Capital Share Transactions:
Class I:
Shares Subscribed		4,141			10,000
Shares Redeemed		(10,499	)		(9,457	)
Net Increase (Decrease) in Class I Shares Outstanding		(6,358	)		543
Class A:
Shares Subscribed		141			1,189
Shares Redeemed		(389	)		(978	)
Net Increase (Decrease) in Class A Shares Outstanding		(248	)		211
Class C:
Shares Subscribed		98			456
Shares Redeemed		(112	)		(268	)
Net Increase (Decrease) in Class C Shares Outstanding		(14	)		188

The accompanying notes are an integral part of the consolidated financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Developing Opportunity Portfolio

	Class I
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Year Ended December 31, 2021			Period from February 14, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	11.79		$	14.50		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.02	)		(0.10	)		(0.10	)
Net Realized and Unrealized Gain (Loss)		(3.80	)		(2.61	)		4.60
Total from Investment Operations		(3.82	)		(2.71	)		4.50
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	7.97		$	11.79		$	14.50
Total Return⁽⁵⁾		(32.40	)%⁽⁸⁾		(18.69	)%		45.00	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	82,742		$	197,435		$	234,923
Ratio of Expenses Before Expense Limitation		1.40	%⁽⁹⁾		1.23	%		1.41	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		1.15	%⁽⁶⁾⁽⁹⁾		1.15	%⁽⁶⁾		1.14	%⁽⁶⁾⁽⁹⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.15	%⁽⁶⁾⁽⁹⁾		N/A			N/A
Ratio of Net Investment Loss		(0.34	)%⁽⁶⁾⁽⁹⁾		(0.73	)%⁽⁶⁾		(0.87	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%⁽⁹⁾
Portfolio Turnover Rate		20	%⁽⁸⁾		64	%		18	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Developing Opportunity Portfolio

	Class A
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Year Ended December 31, 2021			Period from February 14, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	11.73		$	14.47		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.03	)		(0.14	)		(0.13	)
Net Realized and Unrealized Gain (Loss)		(3.79	)		(2.60	)		4.60
Total from Investment Operations		(3.82	)		(2.74	)		4.47
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	7.91		$	11.73		$	14.47
Total Return⁽⁵⁾		(32.57	)%⁽⁸⁾		(18.94	)%		44.70	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	6,116		$	11,974		$	11,721
Ratio of Expenses Before Expense Limitation		1.65	%⁽⁹⁾		1.48	%		1.72	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		1.49	%⁽⁶⁾⁽⁹⁾		1.46	%⁽⁶⁾		1.44	%⁽⁶⁾⁽⁹⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.49	%⁽⁶⁾⁽⁹⁾		N/A			N/A
Ratio of Net Investment Loss		(0.64	)%⁽⁶⁾⁽⁹⁾		(1.03	)%⁽⁶⁾		(1.17	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%⁽⁹⁾
Portfolio Turnover Rate		20	%⁽⁸⁾		64	%		18	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Developing Opportunity Portfolio

	Class C
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Year Ended December 31, 2021			Period from February 14, 2020⁽¹⁾ to December 31, 2020⁽²⁾
Net Asset Value, Beginning of Period	$	11.55		$	14.36		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽³⁾		(0.06	)		(0.24	)		(0.22	)
Net Realized and Unrealized Gain (Loss)		(3.73	)		(2.57	)		4.58
Total from Investment Operations		(3.79	)		(2.81	)		4.36
Redemption Fees		0.00	⁽⁴⁾		0.00	⁽⁴⁾		0.00	⁽⁴⁾
Net Asset Value, End of Period	$	7.76		$	11.55		$	14.36
Total Return⁽⁵⁾		(32.81	)%⁽⁸⁾		(19.57	)%		43.60	%⁽⁸⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,539		$	6,911		$	5,893
Ratio of Expenses Before Expense Limitation		2.40	%⁽⁹⁾		2.21	%		2.53	%⁽⁹⁾
Ratio of Expenses After Expense Limitation		2.22	%⁽⁶⁾⁽⁹⁾		2.19	%⁽⁶⁾		2.24	%⁽⁶⁾⁽⁹⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		2.22	%⁽⁶⁾⁽⁹⁾		N/A			N/A
Ratio of Net Investment Loss		(1.32	)%⁽⁶⁾⁽⁹⁾		(1.78	)%⁽⁶⁾		(1.97	)%⁽⁶⁾⁽⁹⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁷⁾⁽⁹⁾		0.00	%⁽⁷⁾		0.01	%⁽⁹⁾
Portfolio Turnover Rate		20	%⁽⁸⁾		64	%		18	%⁽⁸⁾

(1) Commencement of Operations.

(2) Not consolidated.

(3) Per share amount is based on average shares outstanding.

(4) Amount is less than $0.005 per share.

(5) Calculated based on the net asset value which does not reflect sales charges, if applicable, as of the last business day of the period.

(7) Amount is less than 0.005%.

(8) Not annualized.

(9) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Consolidated Financial Highlights

Developing Opportunity Portfolio

	Class R6⁽¹⁾
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Year Ended December 31, 2021			Period from February 14, 2020⁽²⁾ to December 31, 2020⁽³⁾
Net Asset Value, Beginning of Period	$	11.80		$	14.51		$	10.00
Income (Loss) from Investment Operations:
Net Investment Loss⁽⁴⁾		(0.01	)		(0.10	)		(0.07	)
Net Realized and Unrealized Gain (Loss)		(3.81	)		(2.61	)		4.58
Total from Investment Operations		(3.82	)		(2.71	)		4.51
Redemption Fees		0.00	⁽⁵⁾		0.00	⁽⁵⁾		0.00	⁽⁵⁾
Net Asset Value, End of Period	$	7.98		$	11.80		$	14.51
Total Return⁽⁶⁾		(32.37	)%⁽⁹⁾		(18.68	)%		45.10	%⁽⁹⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	8		$	12		$	15
Ratio of Expenses Before Expense Limitation		20.75	%⁽¹⁰⁾		17.42	%		17.67	%⁽¹⁰⁾
Ratio of Expenses After Expense Limitation		1.09	%^(7)(10)		1.10	%⁽⁷⁾		1.09	%^(7)(10)
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		1.09	%^(7)(10)		N/A			N/A
Ratio of Net Investment Loss		(0.19	)%^(7)(10)		(0.69	)%⁽⁷⁾		(0.67	)%^(7)(10)
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%^(8)(10)		0.00	%⁽⁸⁾		0.01	%⁽¹⁰⁾
Portfolio Turnover Rate		20	%⁽⁹⁾		64	%		18	%⁽⁹⁾

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Commencement of Operations.

(3) Not consolidated.

(4) Per share amount is based on average shares outstanding.

(5) Amount is less than $0.005 per share.

(6) Calculated based on the net asset value as of the last business day of the period.

(8) Amount is less than 0.005%.

(9) Not annualized.

(10) Annualized.

The accompanying notes are an integral part of the consolidated financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements

The accompanying consolidated financial statements relate to the Developing Opportunity Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers four classes of shares — Class I, Class A, Class C and Class R6. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Company 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, consistent with its principal investment strategies, invest up to 25% of its total assets in a wholly-owned subsidiary of the Fund organized as a company under the laws of the Cayman Islands, Developing Opportunity Cayman Portfolio, Ltd. (the "Subsidiary"). The Subsidiary may invest in bitcoin indirectly through cash settled futures or indirectly through investments in Grayscale Bitcoin Trust (BTC) ("GBTC"), a privately offered investment vehicle that invests in bitcoin. 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 June 30, 2022, the Subsidiary represented approximately $926,000 or approximately 0.99% of the total net assets of the Fund.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (4) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (5) when market quotations are not readily available, 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 established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities

as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (6) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (7) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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
Banks	$	8,648	$	12,449	$	—	$	21,097
Beverages		—		5,172		—		5,172
Capital Markets		1,400		—		—		1,400
Chemicals		—		1,923		—		1,923
Construction Materials		—		1,684		—		1,684
Consumer Finance		1,459		—		—		1,459
Diversified Consumer Services		—		352		—		352
Entertainment		2,140		—		—		2,140
Food Products		—		3,447		—		3,447
Hotels, Restaurants & Leisure		3,492		2,915		—		6,407
Household Durables		—		790		—		790
Information Technology Services		3,991		—		—		3,991

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)
Interactive Media & Services	$	—	$	9,088	$	—	$	9,088
Internet & Direct Marketing Retail		7,835		6,099		—		13,934
Multi-Line Retail		1,142		—		—		1,142
Real Estate Management & Development		3,654		1,012		—		4,666
Road & Rail		2,134		—		—		2,134
Semiconductors & Semiconductor Equipment		—		4,725		—		4,725
Textiles, Apparel & Luxury Goods		—		1,569		—		1,569
Transportation Infrastructure		1,288		—		—		1,288
Total Common Stocks		37,183		51,225		—		88,408
Investment Company		733		—		—		733
Call Options Purchased		—		2		—		2
Short-Term Investment
Investment Company		2,738		—		—		2,738
Total Assets	$	40,654	$	51,227	$	—	$	91,881

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.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

Governmental approval for foreign investments may be required in advance of making an investment under certain circumstances in some countries, and the extent of foreign investments in domestic companies may be subject to limitation in other countries. Foreign ownership limitations also may be imposed by the charters of individual companies to prevent, among other concerns, violations of foreign investment limitations. As a result, an additional class of shares (identified as "Foreign" in the Consolidated Portfolio of Investments) may be created and offered for investment. The "local" and "foreign shares" market values may differ. In the absence of trading of the foreign shares in such markets, the Fund values the foreign shares at the closing exchange price of the local shares.

Following is a description of the derivative instruments and techniques that the Fund used during the period and their associated risks:

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The following table sets forth the fair value of the Fund's derivative contracts by primary risk exposure as of June 30, 2022:

Asset Derivatives
Consolidated
Statement of
Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Purchased Options

Investments, at Value
(Purchased Options)

Currency Risk

(a)

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Purchased Options)	$	(174	)(b)

(b) Amounts are included in Change in Unrealized Appreciation (Depreciation) on Investments in the Consolidated Statement of Operations.

At June 30, 2022, 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(c) (000)			Liabilities(c) (000)
Purchased Options	$	2	(a)	$	—

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(c) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Consolidated Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

single net payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Fund and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Fund exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Fund's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of June 30, 2022:

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(d) (000)			Net Amount (not less than $0) (000)
JP Morgan Chase Bank NA	$	2	$	—	$	(2	)	$	0

(a) Amounts are included in Investments in Securities in the Consolidated Statement of Assets and Liabilities.

(d) In some instances, the actual collateral received may be more than the amount shown here due to overcollateralization.

For the six months ended June 30, 2022, the approximate average monthly amount outstanding for each derivative type is as follows:

Purchased Options:
Average monthly notional amount					139,957,000

5. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares and Class R6 shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption

fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Consolidated Statements of Changes in Net Assets.

7. Dividends and Distributions to Shareholders: Dividend 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 respective securities. Most expenses of the Company can be directly attributed to a particular Fund. Expenses which cannot be directly attributed are apportioned among the Funds based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

First $1 billion				Over $1 billion
0.90%				0.85%

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.75% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.15% for Class I shares, 1.50% for Class A shares, 2.25% for Class C shares and 1.10% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $113,000 of advisory fees were waived and approximately $76,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has agreed to waive its advisory fees by the amount of advisory fees it receives from the Subsidiary.

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $30,491,000 and $91,549,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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 Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $2,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	5,051			$	46,247			$	48,560			$	2

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	2,738

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 there are no significant uncertain tax positions that would require recognition in the consolidated financial statements. If applicable, the Fund recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Consolidated Statement of Operations. The Fund files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the two-year period ended December 31, 2021 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 2021 and 2020.

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Accumulated Loss (000)				Paid-in- Capital (000)
$	3,024			$	(3,024	)

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Consolidated Financial Statements (cont'd)

At December 31, 2021, the Fund had no distributable earnings on a tax basis.

At December 31, 2021, the Fund had available for federal income tax purposes unused short-term and long-term capital losses of approximately $29,534,000 and $1,121,000, respectively, that do not have an expiration date.

K. Market Risk and Risks Relating to Certain Financial Instruments:

bitcoin) is also susceptible to these risks. The value of the GBTC 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 GBTC exposure to cryptocurrency could result in substantial losses to the Fund.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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 below its peer group averages for the one-year period and the period since the middle of February 2020, the month of the Fund's inception. 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 management fee and total expense ratio were higher than but close to the Fund's 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

Resources of the Adviser and Historical Relationship Between the Fund and the Adviser

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other Important Information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-Adviser

Morgan Stanley Investment Management Company
23 Church Street
16-01 Capital Square, Singapore 049481

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIDOSAN
4877706 EXP 08.31.23

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Leaders Portfolio

Semi-Annual Report

June 30, 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Table of Contents

Shareholders' Letter					2
Expense Example					3
Portfolio of Investments					4
Statement of Assets and Liabilities					5
Statement of Operations					7
Statements of Changes in Net Assets					8
Financial Highlights					10
Notes to Financial Statements					15
Investment Advisory Agreement Approval					22
Liquidity Risk Management Program					24
U.S. Customer Privacy Notice					25
Director and Officer Information					28

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Shareholders' Letter

Dear Shareholders,

We are pleased to provide this Semi-Annual Report, in which you will learn how your investment in Emerging Markets Leaders Portfolio (the "Fund") performed during the latest six-month period.

As always, we thank you for selecting Morgan Stanley Investment Management, and look forward to working with you in the months and years ahead.

Sincerely,

John H. Gernon
President and Principal Executive Officer

July 2022

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Expense Example

Emerging Markets Leaders Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended June 30, 2022 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 1/1/22		Actual Ending Account Value 6/30/22		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Emerging Markets Leaders Portfolio Class I	$	1,000.00	$	684.40	$	1,018.94	$	4.93	$	5.91		1.18	%
Emerging Markets Leaders Portfolio Class A		1,000.00		683.00		1,017.36		6.26		7.50		1.50
Emerging Markets Leaders Portfolio Class C		1,000.00		680.40		1,013.74		9.29		11.13		2.23
Emerging Markets Leaders Portfolio Class R6⁽¹⁾		1,000.00		684.50		1,019.34		4.59		5.51		1.10
Emerging Markets Leaders Portfolio Class IR		1,000.00		684.50		1,019.34		4.59		5.51		1.10

** Annualized.

⁽¹⁾ Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Portfolio of Investments

Emerging Markets Leaders Portfolio

	Shares		Value (000)
Common Stocks (92.6%)
Argentina (4.2%)
Globant SA (a)		73,704	$	12,825
Brazil (0.9%)
Pagseguro Digital Ltd., Class A (a)		275,047		2,816
China (26.4%)
BYD Co., Ltd. H Shares (b)		177,000		7,135
Contemporary Amperex Technology Co. Ltd.		21,500		1,722
Kingdee International Software Group Co., Ltd. (a)(b)		4,850,000		11,427
Li Ning Co., Ltd. (b)		2,769,500		25,787
Proya Cosmetics Co. Ltd., Class A		570,428		14,080
Shenzhou International Group Holdings Ltd. (b)		688,800		8,407
Wuliangye Yibin Co., Ltd., Class A		395,189		11,948
				80,506
Germany (3.4%)
Delivery Hero SE (a)		274,931		10,372
India (27.1%)
Aarti Industries Ltd.		1,537,300		13,654
AU Small Finance Bank Ltd. (a)		1,734,482		13,053
Avenue Supermarts Ltd. (a)		3,321		144
Bajaj Finance Ltd.		274,559		18,892
Dixon Technologies India Ltd.		146,390		6,654
ICICI Bank Ltd.		1,460,346		13,120
IIFL Wealth Management Ltd.		341,710		6,428
KEI Industries Ltd.		238,585		3,499
SBI Cards & Payment Services Ltd.		162,389		1,584
SRF Ltd.		191,358		5,480
				82,508
Netherlands (0.5%)
ASM International NV		6,363		1,583
Singapore (3.5%)
Sea Ltd. ADR (a)		105,159		7,031
TDCX, Inc. ADR (a)		392,451		3,630
				10,661
Taiwan (16.1%)
Chailease Holding Co., Ltd.		1,153,900		8,096
Silergy Corp.		122,000		9,865
Taiwan Semiconductor Manufacturing Co., Ltd.		1,087,000		17,421
Voltronic Power Technology Corp.		278,334		13,502
				48,884
United States (10.5%)
MercadoLibre, Inc. (a)		24,330		15,495
NIKE, Inc., Class B		88,540		9,049
NVIDIA Corp.		4,754		721
Thoughtworks Holding, Inc. (a)		480,941		6,786
				32,051
Total Common Stocks (Cost $343,920)				282,206

	Shares		Value (000)
Short-Term Investment (7.3%)
Investment Company (7.3%)
Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (See Note G) (Cost $22,367)		22,367,161	$	22,367
Total Investments (99.9%) (Cost $366,287) (c)(d)				304,573
Other Assets in Excess of Liabilities (0.1%)				308
Net Assets (100.0%)			$	304,881

(a) Non-income producing security.

(b) Security trades on the Hong Kong exchange.

(c) The approximate fair value and percentage of net assets, $223,853,000 and 73.4%, 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 the Financial Statements.

(d) At June 30, 2022, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $16,798,000 and the aggregate gross unrealized depreciation is approximately $78,512,000, resulting in net unrealized depreciation of approximately $61,714,000.

ADR American Depositary Receipt.

Portfolio Composition

Classification	Percentage of Total Investments
Other*		24.0	%
Textiles, Apparel & Luxury Goods		14.2
Semiconductors & Semiconductor Equipment		9.7
Banks		8.6
Information Technology Services		8.6
Internet & Direct Marketing Retail		8.5
Short-Term Investments		7.3
Consumer Finance		6.7
Chemicals		6.3
Electrical Equipment		6.1
Total Investments		100.0	%

* Industries and/or investment types representing less than 5% of total investments.

The accompanying notes are an integral part of the financial statements.
4

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Emerging Markets Leaders Portfolio

Statement of Assets and Liabilities	June 30, 2022 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $343,920)	$	282,206
Investment in Security of Affiliated Issuer, at Value (Cost $22,367)		22,367
Total Investments in Securities, at Value (Cost $366,287)		304,573
Foreign Currency, at Value (Cost $945)		944
Receivable for Fund Shares Sold		733
Dividends Receivable		452
Receivable for Investments Sold		440
Receivable from Affiliate		16
Tax Reclaim Receivable		8
Other Assets		179
Total Assets		307,345
Liabilities:
Payable for Investments Purchased		1,477
Payable for Advisory Fees		631
Payable for Fund Shares Redeemed		255
Payable for Sub Transfer Agency Fees — Class I		19
Payable for Sub Transfer Agency Fees — Class A		4
Payable for Sub Transfer Agency Fees — Class C		1
Payable for Administration Fees		20
Payable for Custodian Fees		16
Deferred Capital Gain Country Tax		14
Payable for Shareholder Services Fees — Class A		3
Payable for Distribution and Shareholder Services Fees — Class C		4
Payable for Professional Fees		7
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class R6*		1
Payable for Transfer Agency Fees — Class IR		1
Payable to the Advisor		2
Other Liabilities		7
Total Liabilities		2,464
Net Assets	$	304,881
Net Assets Consist of:
Paid-in-Capital	$	409,272
Total Accumulated Loss		(104,391	)
Net Assets	$	304,881

The accompanying notes are an integral part of the financial statements.
5

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Emerging Markets Leaders Portfolio

Statement of Assets and Liabilities (cont'd)	June 30, 2022 (000)
CLASS I:
Net Assets	$	274,886
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		20,322,213
Net Asset Value, Offering and Redemption Price Per Share	$	13.53
CLASS A:
Net Assets	$	15,694
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		1,186,349
Net Asset Value, Redemption Price Per Share	$	13.23
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.73
Maximum Offering Price Per Share	$	13.96
CLASS C:
Net Assets	$	4,683
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		372,142
Net Asset Value, Offering and Redemption Price Per Share	$	12.58
CLASS R6:*
Net Assets	$	9,611
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		708,604
Net Asset Value, Offering and Redemption Price Per Share	$	13.56
CLASS IR:
Net Assets	$	7
Shares Outstanding $0.001 par value shares of beneficial interest (unlimited shares authorized) (not in 000's)		517
Net Asset Value, Offering and Redemption Price Per Share	$	13.56

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

@ Amount is less than $500.

The accompanying notes are an integral part of the financial statements.
6

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Emerging Markets Leaders Portfolio

Statement of Operations	Six Months Ended June 30, 2022 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $113 of Foreign Taxes Withheld)	$	1,203
Dividends from Security of Affiliated Issuer (Note G)		31
Total Investment Income		1,234
Expenses:
Advisory Fees (Note B)		1,600
Administration Fees (Note C)		142
Sub Transfer Agency Fees — Class I		127
Sub Transfer Agency Fees — Class A		12
Sub Transfer Agency Fees — Class C		3
Custodian Fees (Note F)		93
Professional Fees		83
Registration Fees		81
Shareholder Services Fees — Class A (Note D)		24
Distribution and Shareholder Services Fees — Class C (Note D)		31
Shareholder Reporting Fees		22
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class R6* (Note E)		2
Transfer Agency Fees — Class IR (Note E)		1
Directors' Fees and Expenses		4
Pricing Fees		1
Other Expenses		8
Total Expenses		2,238
Waiver of Advisory Fees (Note B)		(78	)
Rebate from Morgan Stanley Affiliate (Note G)		(7	)
Reimbursement of Class Specific Expenses — Class R6* (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class IR (Note B)		(1	)
Net Expenses		2,150
Net Investment Loss		(916	)
Realized Loss:
Investments Sold (Net of $1,362 of Capital Gain Country Tax)		(23,504	)
Foreign Currency Translation		(146	)
Net Realized Loss		(23,650	)
Change in Unrealized Appreciation (Depreciation):
Investments (Net of Decrease in Deferred Capital Gain Country Tax of $2,773)		(115,480	)
Foreign Currency Translation		(5	)
Net Change in Unrealized Appreciation (Depreciation)		(115,485	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(139,135	)
Net Decrease in Net Assets Resulting from Operations	$	(140,051	)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

The accompanying notes are an integral part of the financial statements.
7

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Emerging Markets Leaders Portfolio

Statements of Changes in Net Assets	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Loss	$	(916	)	$	(2,586	)
Net Realized Loss		(23,650	)		(17,779	)
Net Change in Unrealized Appreciation (Depreciation)		(115,485	)		10,560
Net Decrease in Net Assets Resulting from Operations		(140,051	)		(9,805	)
Dividends and Distributions to Shareholders:
Class I		—			(264	)
Class A		—			(22	)
Class C		—			(7	)
Class R6*		—			(34	)
Class IR		—			(—	@)(a)
Total Dividends and Distributions to Shareholders		—			(327	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		191,973			380,088
Distributions Reinvested		—			260
Redeemed		(135,724	)		(112,693	)
Class A:
Subscribed		5,157			31,404
Distributions Reinvested		—			22
Redeemed		(6,725	)		(13,039	)
Class C:
Subscribed		670			7,286
Distributions Reinvested		—			7
Redeemed		(1,641	)		(2,119	)
Class R6:*
Subscribed		52			13,947
Distributions Reinvested		—			34
Redeemed		(22,926	)		(14	)
Class IR:
Subscribed		—			10
Distributions Reinvested		—			—	@(a)
Net Increase in Net Assets Resulting from Capital Share Transactions		30,836			305,193
Redemption Fees		7			13
Total Increase (Decrease) in Net Assets		(109,208	)		295,074
Net Assets:
Beginning of Period		414,089			119,015
End of Period	$	304,881		$	414,089

The accompanying notes are an integral part of the financial statements.
8

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Emerging Markets Leaders Portfolio

Statements of Changes in Net Assets (cont'd)	Six Months Ended June 30, 2022 (unaudited) (000)			Year Ended December 31, 2021 (000)
(1) Capital Share Transactions:
Class I:
Shares Subscribed		11,841			18,584
Shares Issued on Distributions Reinvested		—			14
Shares Redeemed		(8,673	)		(5,584	)
Net Increase in Class I Shares Outstanding		3,168			13,014
Class A:
Shares Subscribed		331			1,530
Shares Issued on Distributions Reinvested		—			1
Shares Redeemed		(436	)		(654	)
Net Increase (Decrease) in Class A Shares Outstanding		(105	)		877
Class C:
Shares Subscribed		44			372
Shares Issued on Distributions Reinvested		—			—	@@
Shares Redeemed		(116	)		(112	)
Net Increase (Decrease) in Class C Shares Outstanding		(72	)		260
Class R6:*
Shares Subscribed		4			704
Shares Issued on Distributions Reinvested		—			2
Shares Redeemed		(1,400	)		(1	)
Net Increase (Decrease) in Class R6 Shares Outstanding		(1,396	)		705
Class IR:
Shares Subscribed		—			1	(a)
Shares Issued on Distributions Reinvested		—			—	@@(a)
Net Increase in Class IR Shares Outstanding		—			1	(a)

* Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(a) For the period April 12, 2021 to December 31, 2021.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

The accompanying notes are an integral part of the financial statements.
9

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Leaders Portfolio

	Class I
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	19.77		$	19.43		$	12.70		$	10.38		$	12.14		$	9.73
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		(0.04	)		(0.19	)		(0.11	)		(0.02	)		0.03			0.08
Net Realized and Unrealized Gain (Loss)		(6.20	)		0.55			7.62			2.78			(1.74	)		2.45
Total from Investment Operations		(6.24	)		0.36			7.51			2.76			(1.71	)		2.53
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.01	)		(0.08	)
Net Realized Gain		—			(0.02	)		(0.78	)		(0.44	)		(0.04	)		(0.04	)
Total Distributions		—			(0.02	)		(0.78	)		(0.44	)		(0.05	)		(0.12	)
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	13.53		$	19.77		$	19.43		$	12.70		$	10.38		$	12.14
Total Return⁽³⁾		(31.56	)%⁽⁶⁾		1.84	%		59.36	%		26.63	%		(14.12	)%		26.01	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	274,886		$	339,152		$	80,465		$	32,651		$	39,206		$	73,273
Ratio of Expenses Before Expense Limitation		1.23	%⁽⁷⁾		1.23	%		1.47	%		1.57	%		1.48	%		1.43	%
Ratio of Expenses After Expense Limitation		1.18	%⁽⁴⁾⁽⁷⁾		1.18	%⁽⁴⁾		1.15	%⁽⁴⁾		1.17	%⁽⁴⁾		1.17	%⁽⁴⁾		1.11	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.18	%⁽⁴⁾		N/A			1.16	%⁽⁴⁾		1.16	%⁽⁴⁾		N/A
Ratio of Net Investment Income (Loss)		(0.47	)%⁽⁴⁾⁽⁷⁾		(0.92	)%⁽⁴⁾		(0.73	)%⁽⁴⁾		(0.14	)%⁽⁴⁾		0.29	%⁽⁴⁾		0.67	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		33	%⁽⁶⁾		27	%		57	%		58	%		47	%		79	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

The accompanying notes are an integral part of the financial statements.
10

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Leaders Portfolio

	Class A
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	19.37		$	19.09		$	12.53		$	10.29		$	12.06		$	9.67
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽¹⁾		(0.06	)		(0.24	)		(0.17	)		(0.05	)		(0.00	)⁽²⁾		0.02
Net Realized and Unrealized Gain (Loss)		(6.08	)		0.54			7.51			2.73			(1.73	)		2.44
Total from Investment Operations		(6.14	)		0.30			7.34			2.68			(1.73	)		2.46
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			—			(0.03	)
Net Realized Gain		—			(0.02	)		(0.78	)		(0.44	)		(0.04	)		(0.04	)
Total Distributions		—			(0.02	)		(0.78	)		(0.44	)		(0.04	)		(0.07	)
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	13.23		$	19.37		$	19.09		$	12.53		$	10.29		$	12.06
Total Return⁽³⁾		(31.70	)%⁽⁶⁾		1.56	%		58.81	%		26.08	%		(14.41	)%		25.46	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	15,694		$	25,015		$	7,925		$	1,191		$	1,024		$	1,102
Ratio of Expenses Before Expense Limitation		1.54	%⁽⁷⁾		1.52	%		1.82	%		2.04	%		1.93	%		2.01	%
Ratio of Expenses After Expense Limitation		1.50	%⁽⁴⁾⁽⁷⁾		1.47	%⁽⁴⁾		1.50	%⁽⁴⁾		1.55	%⁽⁴⁾		1.55	%⁽⁴⁾		1.54	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.47	%⁽⁴⁾		N/A			1.54	%⁽⁴⁾		1.54	%⁽⁴⁾		N/A
Ratio of Net Investment Income (Loss)		(0.83	)%⁽⁴⁾⁽⁷⁾		(1.21	)%⁽⁴⁾		(1.13	)%⁽⁴⁾		(0.45	)%⁽⁴⁾		(0.04	)%⁽⁴⁾		0.18	%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		33	%⁽⁶⁾		27	%		57	%		58	%		47	%		79	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

The accompanying notes are an integral part of the financial statements.
11

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Leaders Portfolio

	Class C
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	18.49		$	18.37		$	12.17		$	10.08		$	11.90		$	9.59
Income (Loss) from Investment Operations:
Net Investment Loss⁽¹⁾		(0.12	)		(0.38	)		(0.27	)		(0.13	)		(0.09	)		(0.06	)
Net Realized and Unrealized Gain (Loss)		(5.79	)		0.52			7.25			2.66			(1.69	)		2.41
Total from Investment Operations		(5.91	)		0.14			6.98			2.53			(1.78	)		2.35
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.02	)		(0.78	)		(0.44	)		(0.04	)		(0.04	)
Redemption Fees		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾		0.00	⁽²⁾
Net Asset Value, End of Period	$	12.58		$	18.49		$	18.37		$	12.17		$	10.08		$	11.90
Total Return⁽³⁾		(31.96	)%⁽⁶⁾		0.75	%		57.59	%		25.14	%		(15.02	)%		24.53	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,683		$	8,220		$	3,395		$	1,007		$	780		$	926
Ratio of Expenses Before Expense Limitation		2.27	%⁽⁷⁾		2.29	%		2.63	%		2.82	%		2.75	%		2.80	%
Ratio of Expenses After Expense Limitation		2.23	%⁽⁴⁾⁽⁷⁾		2.24	%⁽⁴⁾		2.29	%⁽⁴⁾		2.30	%⁽⁴⁾		2.30	%⁽⁴⁾		2.29	%⁽⁴⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			2.24	%⁽⁴⁾		N/A			2.29	%⁽⁴⁾		2.29	%⁽⁴⁾		N/A
Ratio of Net Investment Loss		(1.58	)%⁽⁴⁾⁽⁷⁾		(1.98	)%⁽⁴⁾		(1.88	)%⁽⁴⁾		(1.18	)%⁽⁴⁾		(0.83	)%⁽⁴⁾		(0.49	)%⁽⁴⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁵⁾⁽⁷⁾		0.00	%⁽⁵⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		33	%⁽⁶⁾		27	%		57	%		58	%		47	%		79	%

(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.

(5) Amount is less than 0.005%.

(6) Not annualized.

(7) Annualized.

The accompanying notes are an integral part of the financial statements.
12

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Leaders Portfolio

	Class R6⁽¹⁾
	Six Months Ended June 30, 2022			Year Ended December 31,
Selected Per Share Data and Ratios	(unaudited)			2021			2020			2019			2018			2017
Net Asset Value, Beginning of Period	$	19.81		$	19.45		$	12.71		$	10.38		$	12.14		$	9.73
Income (Loss) from Investment Operations:
Net Investment Income (Loss)⁽²⁾		(0.05	)		(0.17	)		(0.09	)		0.00	⁽³⁾		0.04			0.08
Net Realized and Unrealized Gain (Loss)		(6.20	)		0.55			7.61			2.77			(1.74	)		2.45
Total from Investment Operations		(6.25	)		0.38			7.52			2.77			(1.70	)		2.53
Distributions from and/or in Excess of:
Net Investment Income		—			—			—			—			(0.02	)		(0.08	)
Net Realized Gain		—			(0.02	)		(0.78	)		(0.44	)		(0.04	)		(0.04	)
Total Distributions		—			(0.02	)		(0.78	)		(0.44	)		(0.06	)		(0.12	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	13.56		$	19.81		$	19.45		$	12.71		$	10.38		$	12.14
Total Return⁽⁴⁾		(31.55	)%⁽⁷⁾		1.94	%		59.39	%		26.73	%		(14.03	)%		26.02	%
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9,611		$	41,692		$	27,230		$	19,838		$	12,779		$	14,868
Ratio of Expenses Before Expense Limitation		1.16	%⁽⁸⁾		1.16	%		1.42	%		1.53	%		1.44	%		1.42	%
Ratio of Expenses After Expense Limitation		1.10	%⁽⁵⁾⁽⁸⁾		1.10	%⁽⁵⁾		1.09	%⁽⁵⁾		1.10	%⁽⁵⁾		1.10	%⁽⁵⁾		1.09	%⁽⁵⁾
Ratio of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.10	%⁽⁵⁾		N/A			1.09	%⁽⁵⁾		1.09	%⁽⁵⁾		N/A
Ratio of Net Investment Income (Loss)		(0.63	)%⁽⁵⁾⁽⁸⁾		(0.84	)%⁽⁵⁾		(0.65	)%⁽⁵⁾		0.00	%⁽⁵⁾		0.38	%⁽⁵⁾		0.72	%⁽⁵⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾		0.01	%		0.01	%		0.01	%		0.01	%
Portfolio Turnover Rate		33	%⁽⁷⁾		27	%		57	%		58	%		47	%		79	%

(1) Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
13

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022

Financial Highlights

Emerging Markets Leaders Portfolio

	Class IR
Selected Per Share Data and Ratios	Six Months Ended June 30, 2022 (unaudited)			Period from April 12, 2021⁽¹⁾ to December 31, 2021
Net Asset Value, Beginning of Period	$	19.81		$	19.37
Income (Loss) from Investment Operations:
Net Investment Loss⁽²⁾		(0.03	)		(0.12	)
Net Realized and Unrealized Gain (Loss)		(6.22	)		0.58
Total from Investment Operations		(6.25	)		0.46
Distributions from and/or in Excess of:
Net Realized Gain		—			(0.02	)
Redemption Fees		0.00	⁽³⁾		0.00	⁽³⁾
Net Asset Value, End of Period	$	13.56		$	19.81
Total Return⁽⁴⁾		(31.55	)%⁽⁷⁾		2.36	%⁽⁷⁾
Ratios to Average Net Assets and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	7		$	10
Ratio of Expenses Before Expense Limitation		14.53	%⁽⁸⁾		14.15	%⁽⁸⁾
Ratio of Expenses After Expense Limitation		1.10	%⁽⁵⁾⁽⁸⁾		1.10	%⁽⁵⁾⁽⁸⁾
Ratios of Expenses After Expense Limitation Excluding Interest Expenses		N/A			1.10	%⁽⁵⁾⁽⁸⁾
Ratio of Net Investment Loss		(0.40	)%⁽⁵⁾⁽⁸⁾		(0.80	)%⁽⁵⁾⁽⁸⁾
Ratio of Rebate from Morgan Stanley Affiliates		0.00	%⁽⁶⁾⁽⁸⁾		0.00	%⁽⁶⁾⁽⁸⁾
Portfolio Turnover Rate		33	%⁽⁷⁾		27	%

(1) Commencement of Offering.

(2) Per share amount is based on average shares outstanding.

(3) Amount is less than $0.005 per share.

(4) Calculated based on the net asset value as of the last business day of the period.

(6) Amount is less than 0.005%.

(7) Not annualized.

(8) Annualized.

The accompanying notes are an integral part of the financial statements.
14

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements

The accompanying financial statements relate to the Emerging Markets Leaders Portfolio. The Fund seeks long-term capital appreciation.

The Fund offers five classes of shares — Class I, Class A, Class C, Class R6 and Class IR. On April 12, 2021, the Fund commenced offering Class IR shares. Effective April 29, 2022, Class IS shares were renamed Class R6 shares.

from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (3) certain portfolio securities may be valued by an outside pricing service/vendor approved by the Company's Board of Directors (the "Directors"). The pricing service/vendor may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. Alternatively, if a valuation is not available from an outside pricing service/vendor, and the security trades on an exchange, the security may be valued at its latest reported sale price (or at the exchange official closing price if such exchange reports an official closing price), prior to the time when assets are valued. If there are no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available in the relevant exchanges. If only bid prices are available then the latest bid price may be used. If Morgan Stanley Investment Management Inc. (the "Adviser") or Morgan Stanley Investment Management Company ("MSIM Company") (the "Sub-Adviser"), each a wholly-owned subsidiary of Morgan Stanley, determines that the price provided by the outside pricing service/vendor or exchange does not reflect the security's fair value or is unable to provide a price, prices from brokers or dealers may also be utilized. In these circumstances, the value of the security will be the mean of bid and asked prices obtained from brokers or dealers; (4) when market quotations are not readily available, 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 established by and under the general supervision of the Directors. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE").

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Directors or by the Adviser using a pricing service and/or procedures approved by the Directors; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; and (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day.

value measurements for disclosure purposes. Various inputs are used in determining the value of the Fund's investments. The inputs are summarized in the three broad levels listed below:

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

The following is a summary of the inputs used to value the Fund's investments as of June 30, 2022:

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	$	—	$	7,135	$	—	$	7,135
Banks		—		26,173		—		26,173
Beverages		—		11,948		—		11,948
Capital Markets		—		6,428		—		6,428
Chemicals		—		19,134		—		19,134
Consumer Finance		—		20,476		—		20,476
Diversified Financial Services		—		8,096		—		8,096
Electrical Equipment		—		18,723		—		18,723
Entertainment		7,031		—		—		7,031
Food & Staples Retailing		—		144		—		144
Household Durables		—		6,654		—		6,654
Information Technology Services		26,057		—		—		26,057

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Internet & Direct Marketing Retail	$	15,495	$	10,372	$	—	$	25,867
Personal Products		—		14,080		—		14,080
Semiconductors & Semiconductor Equipment		721		28,869		—		29,590
Software		—		11,427		—		11,427
Textiles, Apparel & Luxury Goods		9,049		34,194		—		43,243
Total Common Stocks		58,353		223,853		—		282,206
Short-Term Investment
Investment Company		22,367		—		—		22,367
Total Assets	$	80,720	$	223,853	$	—	$	304,573

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.

treated as ordinary income for U.S. federal income tax purposes.

4. Redemption Fees: The Fund will assess a 2% redemption fee on Class I shares, Class A shares, Class C shares, Class R6 shares and Class IR shares, which is paid directly to the Fund, for shares redeemed or exchanged within thirty days of purchase, subject to certain exceptions. The redemption fee is designed to protect the Fund and its remaining shareholders from the effects of short-term trading. These fees, if any, are included in the Statements of Changes in Net Assets.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

First $1 billion				Over $1 billion
	0.90	%			0.85	%

For the six months ended June 30, 2022, the advisory fee rate (net of waiver/rebate) was equivalent to an annual effective rate of 0.85% of the Fund's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Fund so that total annual Fund operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.20% for Class I shares, 1.55% for Class A shares, 2.30% for Class C shares, 1.10% for Class R6 shares and 1.10% 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 Directors act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the six months ended June 30, 2022, approximately $78,000 of advisory fees were waived and approximately $3,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the six months ended June 30, 2022, purchases and sales of investment securities for the Fund, other than long-term U.S. Government securities and short-term investments were approximately $147,337,000 and $112,063,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the six months ended June 30, 2022.

The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Government Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the six months ended June 30, 2022, advisory fees paid were reduced by approximately $7,000 relating to the Fund's investment in the Liquidity Funds.

A summary of the Fund's transactions in shares of affiliated investments during the six months ended June 30, 2022 is as follows:

Affiliated Investment Company				Value December 31, 2021 (000)				Purchases at Cost (000)				Proceeds from Sales (000)				Dividend Income (000)
Liquidity Funds				$	30,172			$	146,610			$	154,415			$	31

Affiliated Investment Company (cont'd)				Realized Gain (Loss) (000)				Change in Unrealized Appreciation (Depreciation) (000)				Value June 30, 2022 (000)
Liquidity Funds				$	—			$	—			$	22,367

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

2021 Distributions Paid From:				2020 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	204	$	123	$	1,256	$	2,930

Permanent differences, primarily due to a net operating loss, resulted in the following reclassifications among the components of net assets at December 31, 2021:

Total Distributable Earnings (000)				Paid-in- Capital (000)
$	3,151			$	(3,151	)

At December 31, 2021, the Fund had no distributable earnings on a tax basis.

At December 31, 2021, the Fund had available for federal income tax purposes unused short-term capital losses of approximately $16,929,000 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.

Qualified Late Year Ordinary Losses (000)				Post-October Capital Losses (000)
$	76			$	—

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Notes to Financial Statements (cont'd)

accurately predict and subject to change at any time. If the financial performance of the Fund's investments is impacted because of these factors for an extended period, the Fund's investment results may be adversely affected.

Election of Directors by all shareholders:

	For		Against
Frances L. Cashman		895,789,918		17,421,265
Nancy C. Everett		891,941,804		21,269,379
Eddie A. Grier		895,027,459		18,183,724
Jakki L. Haussler		891,938,480		21,272,703
Patricia A. Maleski		892,862,042		20,349,141

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval

Nature, Extent and Quality of Services

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, 2021, 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 contractual management fee and total expense ratio were higher than but close to its peer group averages and actual management fee was higher than its peer group average. After discussion, the Board concluded that the Fund's (i) performance and total expense ratio were competitive with its peer group averages and (ii) management fee 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 includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the 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

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Investment Advisory Agreement Approval (cont'd)

Other Benefits of the Relationship

Resources of the Adviser and Historical Relationship Between the Fund and the Adviser

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Liquidity Risk Management Program

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice April 2021

FACTS				WHAT DOES MSIM DO WITH YOUR PERSONAL INFORMATION?
Why?				Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?				The types of personal information we collect and share depend on the product or service you have with us. This information can include: ◼ Social Security number and income ◼ investment experience and risk tolerance ◼ checking account number and wire transfer instructions
How?				All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MSIM chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information	Does MSIM share?	Can you limit this sharing?
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes — to offer our products and services to you	Yes	No
For joint marketing with other financial companies	No	We don't share
For our investment management affiliates' everyday business purposes — information about your transactions, experiences, and creditworthiness	Yes	Yes
For our affiliates' everyday business purposes — information about your transactions and experiences	Yes	No
For our affiliates' everyday business purposes — information about your creditworthiness	No	We don't share
For our investment management affiliates to market to you	Yes	Yes
For our affiliates to market to you	No	We don't share
For non-affiliates to market to you	No	We don't share

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

To limit our sharing				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com Please note: If you are a new customer, we can begin sharing your information 30 days from the date we sent this notice. When you are no longer our customer, we continue to share your information as described in this notice. However, you can contact us at any time to limit our sharing.
Questions?				Call toll-free (844) 312-6327 or email: imprivacyinquiries@morganstanley.com

Who we are

Who is providing this notice?

Morgan Stanley Investment Management Inc. and its investment management affiliates ("MSIM") (see Investment Management Affiliates definition below)

What we do

How does MSIM protect my personal information?				To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We have policies governing the proper handling of customer information by personnel and requiring third parties that provide support to adhere to appropriate security standards with respect to such information.
How does MSIM collect my personal information?				We collect your personal information, for example, when you ◼ open an account or make deposits or withdrawals from your account ◼ buy securities from us or make a wire transfer ◼ give us your contact information We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing?				Federal law gives you the right to limit only ◼ sharing for affiliates' everyday business purposes — information about your creditworthiness ◼ affiliates from using your information to market to you ◼ sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See below for more on your rights under state law.

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

U.S. Customer Privacy Notice (cont'd) April 2021

Definitions

Investment Management Affiliates				MSIM Investment Management Affiliates include registered investment advisers, registered broker-dealers, and registered and unregistered funds in the Investment Management Division. Investment Management Affiliates does not include entities associated with Morgan Stanley Wealth Management, such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Affiliates				Companies related by common ownership or control. They can be financial and non-financial companies. ◼ Our affiliates include companies with a Morgan Stanley name and financial companies such as Morgan Stanley Smith Barney LLC and Morgan Stanley & Co.
Non-affiliates				Companies not related by common ownership or control. They can be financial and non-financial companies. ◼ MSIM does not share with non-affiliates so they can market to you.
Joint marketing				A formal agreement between non-affiliated financial companies that together market financial products or services to you. ◼ MSIM doesn't jointly market

Other important information

Morgan Stanley Institutional Fund, Inc.

Semi-Annual Report — June 30, 2022 (unaudited)

Director and Officer Information

Directors

Officers

John H. Gernon
President and Principal Executive Officer

Deidre A. Downes
Chief Compliance Officer

Francis J. Smith
Treasurer and Principal Financial Officer

Mary E. Mullin
Secretary

Michael J. Key
Vice President

Adviser and Administrator

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

Sub-Adviser

Morgan Stanley Investment Management Company
23 Church Street
16-01 Capital Square, Singapore 049481

Distributor

Morgan Stanley Distribution, Inc.
522 Fifth Avenue
New York, New York 10036

Dividend Disbursing and Transfer Agent

DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Legal Counsel

Dechert LLP
1095 Avenue of the Americas
New York, New York 10036

Counsel to the Independent Directors

Perkins Coie LLP
1155 Avenue of the Americas,
22nd Floor
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

Householding Notice

Printed in U.S.A.
This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Morgan Stanley Investment Management Inc.
522 Fifth Avenue
New York, New York 10036

IFIEMLSAN
4877719 EXP 08.31.23

Item 2. Code of Ethics.

Not applicable for semiannual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semiannual reports.

Item 4. Principal Accountant Fees and Services

Not applicable for semiannual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semiannual reports.

Item 6.

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to annual reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable to reports filed by closed-end funds.

Item 10. Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominee to the Fund’s Board of Directors since the Fund last provided disclosure in response to this item.

Item 11. Controls and Procedures

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no changes in the registrant's internal control over financial reporting that occurred during the most recent fiscal half-year period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed End Management Investment Companies.

Not Applicable.

Item 13. Exhibits

(a) Code of Ethics – Not applicable for semiannual reports.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant as part of EX-99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Institutional Fund, Inc.

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
August 17, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
August 17, 2022

/s/ Francis J. Smith
Francis J. Smith
Principal Financial Officer
August 17, 2022

Morgan Stanley Institutional Fund N-CSRSCertified semi-annual shareholder report (management investment company)