NPORT-EX 2 NPORT_MGDJ_97287935_0921.htm

 

Morgan Stanley Institutional Fund, Inc.

Active International Allocation Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks (99.6%)          
Argentina (2.1%)          
Despegar.com Corp. (a)   399,550   $4,807 
           
Belgium (0.9%)          
Anheuser-Busch InBev SA N.V.   35,666    2,023 
           
Brazil (1.0%)          
Ambev SA ADR   836,215    2,308 
           
Canada (5.8%)          
Agnico Eagle Mines Ltd.   39,382    2,043 
Altus Group Ltd. (b)   25,941    1,266 
Cameco Corp.   58,383    1,268 
First Quantum Minerals Ltd.   292,787    5,421 
Gildan Activewear, Inc.   39,868    1,457 
Teck Resources Ltd., Class B   75,688    1,885 
         13,340 
China (7.5%)          
Alibaba Group Holding Ltd. ADR (a)   44,444    6,580 
China Resources Beer Holdings Co., Ltd. (c)   150,000    1,109 
Tencent Holdings Ltd. (c)   57,100    3,409 
Tencent Holdings Ltd. ADR (b)   34,556    2,065 
Tencent Music Entertainment Group ADR (a)   53,366    387 
Trip.com Group Ltd. ADR (a)   74,541    2,292 
Yum China Holdings, Inc.   23,000    1,337 
         17,179 
Denmark (2.0%)          
Drilling Co of 1972 A/S (The) (a)   25,313    950 
Novo Nordisk A/S Series B   37,166    3,583 
         4,533 
France (8.0%)          
Air Liquide SA   7,560    1,211 
Airbus SE (a)   26,842    3,559 
Capgemini SE   10,908    2,262 
Dassault Systemes SE   28,065    1,477 
Hermes International   463    639 
Kering SA   2,026    1,439 
L'Oreal SA (BSRM)   3,731    1,544 
Legrand SA   6,555    702 
LVMH Moet Hennessy Louis Vuitton SE   1,997    1,430 
Pernod Ricard SA   6,591    1,453 
Sanofi   11,120    1,070 
Ubisoft Entertainment SA (a)   26,061    1,561 
         18,347 
Germany (7.7%)          
Bayer AG (Registered)   90,240    4,898 
CTS Eventim AG & Co. KGaA (a)   28,509    2,145 
Infineon Technologies AG   39,415    1,612 
Jungheinrich AG (Preference)   31,250    1,449 
KION Group AG   15,048    1,399 
Linde PLC (a)   9,321    2,741 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Active International Allocation Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Siemens Healthineers AG   53,094    3,444 
         17,688 
Hong Kong (0.7%)          
Trip.com Group Ltd. (a)   50,950    1,554 
           
India (4.5%)          
Apollo Hospitals Enterprise Ltd.   45,661    2,748 
ICICI Bank Ltd.   129,188    1,214 
ICICI Prudential Life Insurance Co., Ltd.   144,760    1,307 
Maruti Suzuki India Ltd.   12,004    1,184 
Reliance Industries Ltd.   48,168    1,630 
State Bank of India   182,705    1,107 
WNS Holdings Ltd. ADR (a)   11,954    978 
         10,168 
Ireland (0.9%)          
Kerry Group PLC, Class A   6,696    900 
Ryanair Holdings PLC ADR (a)   10,679    1,175 
         2,075 
Japan (10.3%)          
FANUC Corp.   5,150    1,129 
Hoya Corp.   7,800    1,217 
Keyence Corp.   5,600    3,343 
Nikon Corp.   448,300    4,978 
Nintendo Co., Ltd.   1,808    864 
Shimano, Inc.   4,350    1,271 
Shiseido Co., Ltd.   10,300    692 
SMC Corp.   2,105    1,313 
Sony Group Corp.   32,993    3,663 
Sony Group Corp. ADR   25,250    2,792 
Tokyo Electron Ltd.   3,900    1,723 
Unicharm Corp.   13,300    589 
         23,574 
Korea, Republic of (2.8%)          
Samsung Electronics Co., Ltd.   104,272    6,464 
           
Malta (0.0%) (d)          
BGP Holdings PLC (a)(e)   72,261    —@ 
           
Netherlands (5.6%)          
Akzo Nobel N.V.   11,933    1,304 
ASML Holding N.V.   5,084    3,798 
Koninklijke Philips N.V.   92,227    4,097 
Koninklijke Philips N.V. (Registered) (b)   15,451    687 
Universal Music Group (a)(b)   48,795    1,307 
Universal Music Group (a)   19,260    516 
Wolters Kluwer N.V.   10,871    1,152 
         12,861 
Norway (1.3%)          
Adevinta ASA (a)   137,328    2,353 
Subsea 7 SA   60,874    528 
         2,881 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Active International Allocation Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Poland (1.0%)          
Allegro.eu SA (a)   159,781    2,320 
           
Singapore (10.6%)          
Sea Ltd. ADR (a)   76,053    24,240 
           
South Africa (0.6%)          
Impala Platinum Holdings Ltd.   61,784    697 
Sibanye Stillwater Ltd.   219,946    668 
Thungela Resources Ltd. (a)(b)   7,820    48 
         1,413 
Spain (1.4%)          
Amadeus IT Group SA (a)   47,731    3,139 
           
Sweden (0.2%)          
Atlas Copco AB, Class A   6,146    371 
           
Switzerland (0.8%)          
Givaudan SA (Registered)   246    1,121 
Nestle SA (Registered)   6,604    796 
         1,917 
Taiwan (3.5%)          
Airtac International Group   32,000    995 
Taiwan Semiconductor Manufacturing Co., Ltd.   212,000    4,385 
Taiwan Semiconductor Manufacturing Co., Ltd. ADR   24,292    2,712 
         8,092 
United Kingdom (12.2%)          
Anglo American PLC   78,214    2,741 
AstraZeneca PLC   26,912    3,244 
Diageo PLC   51,519    2,494 
Experian PLC   84,897    3,556 
Glencore PLC   1,812,125    8,525 
Keywords Studios PLC (a)   30,079    1,182 
Sage Group PLC (The)   72,435    690 
Unilever PLC   38,935    2,103 
Unilever PLC CVA   61,315    3,320 
         27,855 
United States (8.2%)          
Air Products & Chemicals, Inc.   4,116    1,054 
Charles River Laboratories International, Inc. (a)   5,346    2,206 
Cognex Corp.   7,900    634 
Estee Lauder Cos., Inc. (The), Class A   5,577    1,673 
Farfetch Ltd., Class A (a)   123,637    4,634 
Medtronic PLC   15,251    1,912 
Newmont Corp. (NYSE)   41,015    2,227 
Newmont Corp. (TSX)   29,323    1,592 
Schlumberger N.V.   46,230    1,370 
Vertex Pharmaceuticals, Inc. (a)   8,100    1,469 
         18,771 
Total Common Stocks (Cost $150,180)        227,920 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Active International Allocation Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Investment Company (0.4%)          
United States (0.4%)          
Morgan Stanley China A Share Fund, Inc. (f) (Cost $1,067)   46,002    966 
           
Short-Term Investments (0.1%)          
Securities held as Collateral on Loaned Securities (0.1%)          
Investment Company (0.1%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (g)   38,215    38 

 

   Face
Amount
(000)		     
Repurchase Agreements (0.0%) (d)          
HSBC Securities USA, Inc., (0.05%, dated 9/30/21, due 10/1/21; proceeds $2; fully collateralized by U.S. Government obligations; 0.00%-0.13% due 10/7/21-12/31/22; valued at $2)  $        2    2 
Merrill Lynch & Co., Inc., (0.05%, dated 9/30/21, due 10/1/21; proceeds $7; fully collateralized by a U.S. Government obligation; 0.38% due 4/15/24; valued at $7)   7    7 
         9 
Total Securities held as Collateral on Loaned Securities (Cost $47)        47 
Total Investments (100.1%) (Cost $151,294) Including $4,049 of Securities Loaned (h)(i)(j)(k)        228,933 
Liabilities in Excess of Other Assets (–0.1%)        (140)
Net Assets (100.0%)       $228,793 

 

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

 

@ Value is less than $500.
(a) Non-income producing security.
(b) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2021, were approximately $4,049,000 and $4,130,000, respectively. The Fund received cash collateral of approximately $47,000, which was subsequently invested in Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class as reported in the Portfolio of Investments. At September 30, 2021, there was uninvested cash collateral of approximately less than $500, which is not reflected in the Portfolio of Investments. The remaining collateral of approximately $4,083,000 was received in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge and accordingly are not reflected in the Portfolio of Investments. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(c) Security trades on the Hong Kong exchange.
(d) Amount is less than 0.05%.
(e) At September 30, 2021, the Fund held a fair valued security valued at less than $500, representing less than 0.05% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Company's (as defined herein) Directors.
(f) For the nine months ended September 30, 2021, proceeds from sale of Morgan Stanley China A Share Fund, Inc., Common Stock, and its affiliated broker-dealers, which may be deemed affiliates of the Adviser/Administrator and Distributor under the Investment Company Act of 1940, were approximately $247,000, respectively, including net realized loss of approximately $10,000. For the nine months ended September 30, 2021, advisory fees paid were reduced by approximately $14,000 relating to the Fund’s investment in Morgan Stanley China A Share Fund, Inc.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Active International Allocation Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

(g) 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, 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 nine months ended September 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.
(h) Securities are available for collateral in connection with open foreign currency forward exchange contracts.
(i) The approximate fair value and percentage of net assets, $141,626,000 and 61.9%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(j) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(k) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $88,284,000 and the aggregate gross unrealized depreciation is approximately $10,707,000, resulting in net unrealized appreciation of approximately $77,577,000.
   
ADR American Depositary Receipt.
BSRM Berlin Second Regulated Market.
CVA Certificaten Van Aandelen.
NYSE New York Stock Exchange.
TSX Toronto Stock Exchange.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Active International Allocation Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Foreign Currency Forward Exchange Contracts:
The Fund had the following foreign currency forward exchange contracts open at September 30, 2021:

 

Counterparty  Contracts
to
Deliver
(000)		   In
Exchange
For
(000)		   Delivery
Date		  Unrealized
Appreciation
(Depreciation)
(000)		 
Citibank NA  EUR1,593   $1,887   12/16/21  $39 
State Street Bank and Trust Co.  $2,623   GBP1,894   12/16/21   (72)
State Street Bank and Trust Co.  $1,940   JPY212,626   12/16/21   (29)
                $(62)

 

EUR — Euro
GBP — British Pound
JPY — Japanese Yen

 

 

 

 

Portfolio Composition*

 

Classification  Percentage of
Total Investments		 
Other**   47.5%
Entertainment   13.5 
Metals & Mining   11.3 
Semiconductors & Semiconductor Equipment   6.2 
Internet & Direct Marketing Retail   5.9 
Pharmaceuticals   5.6 
Household Durables   5.0 
Health Care Equipment & Supplies   5.0 
Total Investments   100.0%***

 

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2021.
** Industries and/or investment types representing less than 5% of total investments.
*** Does not include open foreign currency forward exchange contracts with net unrealized depreciation of approximately $62,000.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Advantage Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks (97.1%)          
Aerospace & Defense (2.6%)          
HEICO Corp., Class A   211,283   $25,022 
           
Entertainment (4.3%)          
ROBLOX Corp., Class A (a)   339,945    25,683 
Spotify Technology SA (a)   68,253    15,380 
         41,063 
Food & Staples Retailing (2.5%)          
Costco Wholesale Corp.   52,863    23,754 
           
Health Care Equipment & Supplies (6.3%)          
Danaher Corp.   83,084    25,294 
Intuitive Surgical, Inc. (a)   35,423    35,216 
         60,510 
Health Care Technology (4.9%)          
Veeva Systems, Inc., Class A (a)   162,633    46,866 
           
Hotels, Restaurants & Leisure (1.8%)          
Airbnb, Inc., Class A (a)   99,383    16,671 
           
Information Technology Services (24.9%)          
Adyen N.V. (Netherlands) (a)   6,021    16,831 
Okta, Inc. (a)   64,210    15,240 
Shopify, Inc., Class A (Canada) (a)   42,959    58,243 
Snowflake, Inc., Class A (a)   165,966    50,193 
Square, Inc., Class A (a)   217,584    52,185 
Twilio, Inc., Class A (a)   144,147    45,990 
         238,682 
Interactive Media & Services (18.8%)          
Facebook, Inc., Class A (a)   44,234    15,013 
IAC/InterActiveCorp (a)   145,464    18,952 
Match Group, Inc. (a)   100,306    15,747 
Pinterest, Inc., Class A (a)   181,922    9,269 
Snap, Inc., Class A (a)   472,463    34,901 
Twitter, Inc. (a)   871,471    52,628 
Vimeo, Inc. (a)   236,160    6,936 
ZoomInfo Technologies, Inc., Class A (a)   432,017    26,435 
         179,881 
Internet & Direct Marketing Retail (7.2%)          
Amazon.com, Inc. (a)   7,412    24,349 
Chewy, Inc., Class A (a)   125,422    8,542 
Farfetch Ltd., Class A (a)   352,137    13,198 
Wayfair, Inc., Class A (a)   89,979    22,991 
         69,080 
Metals & Mining (0.2%)          
Royal Gold, Inc.   22,769    2,174 
           
Pharmaceuticals (2.4%)          
Royalty Pharma PLC, Class A   633,180    22,883 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Advantage Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Road & Rail (2.6%)          
Uber Technologies, Inc. (a)   563,040    25,224 
           
Semiconductors & Semiconductor Equipment (3.3%)          
ASML Holding N.V. (Netherlands)   42,591    31,735 
           
Software (14.2%)          
Avalara, Inc. (a)   65,197    11,395 
Coupa Software, Inc. (a)   71,293    15,626 
Datadog, Inc., Class A (a)   189,680    26,811 
DocuSign, Inc. (a)   61,286    15,777 
ServiceNow, Inc. (a)   26,660    16,590 
Workday, Inc., Class A (a)   66,711    16,670 
Zoom Video Communications, Inc., Class A (a)   124,539    32,567 
         135,436 
Textiles, Apparel & Luxury Goods (1.1%)          
Lululemon Athletica, Inc. (a)   26,291    10,640 
Total Common Stocks (Cost $634,934)        929,621 
           
Investment Company (0.7%)          
Grayscale Bitcoin Trust (a) (Cost $8,462)   196,592    6,655 
           
Short-Term Investment (2.4%)          
Investment Company (2.4%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (b) (Cost $22,991)   22,990,591    22,991 
Total Investments Excluding Purchased Options (100.2%) (Cost $666,387)        959,267 
Total Purchased Options Outstanding (0.1%) (Cost $4,623)        1,050 
Total Investments (100.3%) (Cost $671,010) (c)(d)(e)        960,317 
Liabilities in Excess of Other Assets (–0.3%)        (3,204)
Net Assets (100.0%)       $957,113 

 

(a) Non-income producing security.
(b) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $12,000 relating to the Fund's investment in the Liquidity Funds.
(c) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(d) The approximate fair value and percentage of net assets, $16,831,000 and 1.8%, 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.
(e) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $312,077,000 and the aggregate gross unrealized depreciation is approximately $22,770,000, resulting in net unrealized appreciation of approximately $289,307,000.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Advantage Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:
The Fund had the following call options purchased open at September 30, 2021:

 

Counterparty  Description  Strike
Price		  Expiration
Date		  Number of
Contracts		   Notional
Amount
(000)		   Value
(000)		   Premiums
Paid
(000)		   Unrealized
Depreciation
(000)		 
BNP Paribas  USD/CNH  CNH 7.45  Jan-22   169,591,626    169,592   $15   $905   $(890)
BNP Paribas  USD/CNH  CNH 7.64  Nov-21   140,421,482    140,421    —@    762    (762)
Goldman Sachs International  USD/CNH  CNH 7.57  Mar-22   177,160,838    177,161    68    880    (812)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.28  Jul-22   222,629,484    222,629    564    1,038    (474)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.31  Aug-22   102,148,816    102,149    264    694    (430)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.38  Jul-22   64,831,274    64,831    139    344    (205)
                        $1,050   $4,623   $(3,573)

 

@ Value is less than $500.
CNH — Chinese Yuan Renminbi Offshore
USD — United States Dollar

 

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Other*   28.7%
Information Technology Services   24.9 
Interactive Media & Services   18.8 
Software   14.1 
Internet & Direct Marketing Retail   7.2 
Health Care Equipment & Supplies   6.3 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Asia Opportunity Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks (97.2%)          
China (51.3%)          
360 DigiTech, Inc. (a)   545,191   $11,078 
Agora, Inc. ADR (a)   106,630    3,092 
China East Education Holdings Ltd. (a)(b)(c)   2,615,500    2,699 
China Resources Beer Holdings Co., Ltd. (b)   2,230,300    16,496 
Foshan Haitian Flavouring & Food Co., Ltd., Class A   1,444,472    24,493 
Greentown Service Group Co. Ltd. (b)   2,648,000    2,873 
Haidilao International Holding Ltd. (b)(c)   4,013,000    15,373 
HUYA, Inc. ADR (a)   1,112,237    9,276 
Inner Mongolia Yili Industrial Group Co., Ltd., Class A   2,090,986    12,180 
KE Holdings, Inc. ADR (a)   1,216,118    22,206 
Kuaishou Technology (a)(b)(c)   1,736,800    18,537 
Kweichow Moutai Co., Ltd., Class A   95,194    26,869 
Meituan Dianping, Class B (a)(b)   1,144,800    36,544 
New Frontier Health Corp. SPAC (a)(c)   93,794    1,053 
Shenzhou International Group Holdings Ltd. (b)   866,400    18,388 
Tencent Holdings Ltd. (b)   312,100    18,632 
Trip.com Group Ltd. ADR (a)   898,412    27,626 
Tsingtao Brewery Co., Ltd. H Shares (b)   1,300,000    10,226 
Weimob, Inc. (a)(b)   7,094,000    10,240 
Yihai International Holding Ltd. (a)(b)(c)   737,000    4,107 
         291,988 
Hong Kong (3.9%)          
AIA Group Ltd.   1,923,100    22,124 
           
India (23.3%)          
HDFC Bank Ltd.   1,713,211    36,626 
HDFC Bank Ltd. ADR   152,047    11,113 
ICICI Bank Ltd. ADR   1,719,619    32,449 
IndusInd Bank Ltd.   1,266,477    18,804 
Kotak Mahindra Bank Ltd.   731,758    19,693 
Shree Cement Ltd.   28,036    10,901 
Zomato Ltd. (a)   1,504,996    2,770 
         132,356 
Korea, Republic of (6.4%)          
KakaoBank Corp. (a)(c)   161,525    9,332 
NAVER Corp.   82,893    26,896 
         36,228 
Taiwan (7.6%)          
Nien Made Enterprise Co., Ltd.   735,000    10,396 
Silergy Corp.   79,000    11,491 
Taiwan Semiconductor Manufacturing Co., Ltd.   1,045,000    21,613 
         43,500 
United States (4.7%)          
Coupang, Inc. (a)   958,261    26,688 
Total Common Stocks (Cost $460,585)        552,884 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Asia Opportunity Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Investment Company (0.7%)          
Grayscale Bitcoin Trust (a) (Cost $5,483)   119,806    4,055 
           
Short-Term Investments (3.6%)          
Securities held as Collateral on Loaned Securities (0.9%)          
Investment Company (0.8%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (d)   4,484,970    4,485 

 

   Face
Amount
(000)		     
Repurchase Agreements (0.1%)          
HSBC Securities USA, Inc., (0.05%, dated 9/30/21, due 10/1/21; proceeds $235; fully collateralized by a U.S. Government obligation; 0.00%-0.13% due 10/7/21-12/31/22; valued at $239)  $   235    235 
Merrill Lynch & Co., Inc., (0.05%, dated 9/30/21, due 10/1/21; proceeds $797; fully collateralized by a U.S. Government obligation; 0.38% due 4/15/24; valued at $813)   797    797 
         1,032 
Total Securities held as Collateral on Loaned Securities (Cost $5,517)        5,517 

 

   Shares     
Investment Company (2.7%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (d) (Cost $15,226)   15,226,427    15,226 
Total Short-Term Investments (Cost $20,743)        20,743 
Total Investments Excluding Purchased Options (101.5%) (Cost $486,811)        577,682 
Total Purchased Options Outstanding (0.2%) (Cost $2,494)        968 
Total Investments (101.7%) (Cost $489,305) Including $39,129 of Securities Loaned (e)(f)(g)(h)        578,650 
Liabilities in Excess of Other Assets (–1.7%)        (9,798)
Net Assets (100.0%)       $568,852 

 

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.

 

The Fund had the following Derivative Contract - PIPE open at September 30, 2021:

 

Counterparty 

Referenced

Obligation

 

Notional

Amount

  

Settlement

Date

 

Unrealized

Depreciation

(000)

  

% of

Net Assets

 
Altimeter Growth Corp.  Grab Holdings Inc. (a)(i)(j)(k)(l)  $5,732,530   12/31/21  $(460)   (0.1)%

 

(a) Non-income producing security.
(b) Security trades on the Hong Kong exchange.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Asia Opportunity Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

(c) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2021, were approximately $39,129,000, and $41,735,000, respectively. The Fund received cash collateral of approximately $5,544,000 of which approximately $5,517,000, was subsequently invested in a Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class as reported in the Consolidated Portfolio of Investments. At September 30, 2021, there was uninvested cash collateral of approximately $27,000, which is not reflected in the Consolidated Portfolio of Investments. The remaining collateral of approximately $36,191,000, was received in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge and accordingly are not reflected in the Consolidated Portfolio of Investments. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(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, 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $14,000 relating to the Fund's investment in the Liquidity Funds.
(e) The approximate fair value and percentage of net assets, $396,201,000 and 69.6%, 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.
(f) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(g) Securities are available for collateral in connection with securities purchased on a forward commitment basis.
(h) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $129,872,000 and the aggregate gross unrealized depreciation is approximately $40,987,000, resulting in net unrealized appreciation of approximately $88,885,000.
(i) 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 derivative contract (excluding 144A holdings) at September 30, 2021 amounts to approximately $(460,000) and represents less than (0.1)% of net assets.
(j) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 573,253 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., 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 Altimeter Growth Corp., and Grab Holdings Inc., 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 Altimeter Growth Corp., and Grab Holdings Inc. 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.
(l) At September 30, 2021, the Fund held a fair valued derivative contract at approximately ($460,000), representing (0.1)% of net assets. This security 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.
   
ADR American Depositary Receipt.
PIPE Private Investment in Public Equity.
SPAC Special Purpose Acquisition Company.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Asia Opportunity Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:

The Fund had the following call options purchased open at September 30, 2021:

 

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   $341   $843   $(502)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.31  Aug-22   243,088,167    243,088    627    1,651    (1,024)
                        $968   $2,494   $(1,526)

 

CNH — Chinese Yuan Renminbi Offshore
USD — United States Dollar

 

 

 

 

Portfolio Composition*

 

Classification  Percentage of
Total Investments		 
Other**   25.1%
Banks   22.4 
Internet & Direct Marketing Retail   11.5 
Interactive Media & Services   11.2 
Beverages   9.4 
Hotels, Restaurants & Leisure   7.5 
Food Products   7.1 
Semiconductors & Semiconductor Equipment   5.8 
Total Investments   100.0%***

 

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2021.
** Industries and/or investment types representing less than 5% of total investments.
*** Does not include an open PIPE contract with unrealized depreciation of approximately $460,000.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

China Equity Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (91.9%)          
Banks  (3.8%)          
China Merchants Bank Co., Ltd. H Shares (a)   56,000   $446 
           
Beverages  (12.6%)          
China Resources Beer Holdings Co., Ltd. (a)   46,000    340 
Kweichow Moutai Co., Ltd., Class A   2,900    819 
Nongfu Spring Co. Ltd. (a)   17,000    86 
Wuliangye Yibin Co., Ltd., Class A   7,300    247 
         1,492 
Biotechnology  (1.7%)          
Innovent Biologics, Inc. (a)(b)   20,500    197 
           
Electrical Equipment  (2.0%)          
NARI Technology Co. Ltd.   42,700    236 
           
Entertainment  (3.3%)          
Bilibili, Inc., Class Z (b)   1,920    127 
Mango Excellent Media Co. Ltd.   40,000    270 
         397 
Food Products  (9.5%)          
China Mengniu Dairy Co., Ltd. (a)(b)   36,000    232 
Foshan Haitian Flavouring & Food Co., Ltd., Class A   10,300    175 
Fu Jian Anjoy Foods Co. Ltd.   9,200    273 
Guangdong Haid Group Co. Ltd.   24,500    255 
Toly Bread Co. Ltd., Class A   43,800    198 
         1,133 
Health Care Equipment & Supplies  (1.7%)          
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A   3,300    197 
           
Health Care Providers & Services  (4.3%)          
Aier Eye Hospital Group Co., Ltd., Class A   33,300    275 
Hygeia Healthcare Holdings Co. Ltd.   31,800    235 
         510 
Household Durables  (4.6%)          
Gree Electric Appliances, Inc. of Zhuhai   43,300    258 
Midea Group Co. Ltd.   26,300    283 
         541 
Interactive Media & Services  (17.3%)          
Tencent Holdings Ltd. (a)   34,700    2,072 
           
Internet & Direct Marketing Retail  (18.0%)          
Alibaba Group Holding Ltd. (a)(b)   38,028    704 
JD.com, Inc., Class A (a)(b)   4,650    167 
Meituan, Class B (a)(b)   29,200    932 
Pinduoduo, Inc. ADR (b)   3,625    329 
         2,132 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

China Equity Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Life Sciences Tools & Services  (2.1%)          
Wuxi Biologics Cayman, Inc. (a)(b)   15,500    251 
           
Machinery  (1.7%)          
Jiangsu Hengli Hydraulic Co. Ltd., Class A   15,800    206 
           
Personal Products  (1.8%)          
Proya Cosmetics Co. Ltd., Class A   8,100    217 
           
Pharmaceuticals  (2.2%)          
Jiangsu Hengrui Medicine Co., Ltd., Class A   33,161    257 
           
Real Estate Management & Development  (0.9%)          
KE Holdings, Inc. ADR (b)   5,900    108 
           
Specialty Retail  (0.5%)          
Pop Mart International Group Ltd.   8,000    54 
           
Textiles, Apparel & Luxury Goods  (3.9%)          
Li Ning Co., Ltd. (a)   19,000    219 
Shenzhou International Group Holdings Ltd. (a)   11,300    240 
         459 
Total Common Stocks (Cost $10,213)        10,905 
 
Short-Term Investment  (8.2%)          
Investment Company  (8.2%)          
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class (c) (Cost $978)   977,598    978 
Total Investments (100.1%) (Cost $11,191)  (d)(e)(f)        11,883 
Liabilities in Excess of Other Assets (–0.1%)        (6)
Net Assets (100.0%)       $11,877 

 

(a) Security trades on the Hong Kong exchange.
(b) Non-income producing security.
(c) 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 nine months ended September 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund’s investment in the Liquidity Funds.
(d) The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(e) The approximate fair value and percentage of net assets, $10,468,000 and 88.1%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(f) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,706,000 and the aggregate gross unrealized depreciation is approximately $1,014,000, resulting in net unrealized appreciation of approximately $692,000.
   
ADR American Depositary Receipt.

 

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Other*   34.3%
Internet & Direct Marketing Retail   18.0 
Interactive Media & Services   17.4 
Beverages   12.6 
Food Products   9.5 
Short-Term Investments   8.2 
Total Investments   100.0%

 

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

 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (92.4%)          
Argentina  (0.1%)          
Globant SA (a)   77   $22 
           
Australia  (0.5%)          
Brookfield Infrastructure Partners LP   1,500    84 
Redbubble Ltd. (a)   7,343    23 
Xero Ltd. (a)   368    36 
         143 
Brazil  (0.1%)          
B3 SA - Brasil Bolsa Balcao   1,170    2 
Magazine Luiza SA   3,729    10 
Vale SA   1,129    16 
         28 
Canada  (5.5%)          
AbCellera Biologics, Inc. (a)   542    11 
Brookfield Asset Management, Inc., Class A   1,801    96 
Canada Goose Holdings, Inc. (a)   2,840    101 
Canadian National Railway Co.   633    73 
Colliers International Group, Inc.   1,110    142 
Constellation Software, Inc.   91    149 
FirstService Corp.   272    49 
Shopify, Inc., Class A (a)   609    826 
Topicus.com, Inc. (a)   883    93 
         1,540 
China  (1.6%)          
360 DigiTech, Inc. ADR (a)   348    7 
Agora, Inc. ADR (a)   45    1 
China East Education Holdings Ltd. (a)(b)   3,000    3 
Foshan Haitian Flavouring & Food Co., Ltd., Class A   6,938    118 
Haidilao International Holding Ltd. (b)   3,000    11 
HUYA, Inc. ADR (a)   1,016    8 
Inner Mongolia Yili Industrial Group Co., Ltd., Class A   800    5 
KE Holdings, Inc. ADR (a)   796    15 
Kuaishou Technology (a)(b)   1,500    16 
Meituan, Class B (a)(b)   3,800    121 
New Frontier Health Corp. SPAC (a)   1,068    12 
Shenzhou International Group Holdings Ltd. (b)   600    13 
Tencent Holdings Ltd. (b)   600    36 
Trip.com Group Ltd. ADR (a)   2,073    64 
Weimob, Inc. (a)(b)   3,000    4 
         434 
Denmark  (1.8%)          
Chr Hansen Holding A/S   815    67 
DSV Panalpina A/S   1,789    428 
Novo Nordisk A/S Series B   66    6 
         501 
Finland  (0.1%)          
Revenio Group Oyj   524    33 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

France  (2.4%)          
Christian Dior SE   90    65 
Dassault Systemes SE   1,062    56 
EssilorLuxottica SA   160    31 
Hermes International   256    353 
L'Oreal SA (BSRM)   163    67 
Pernod Ricard SA   261    58 
Remy Cointreau SA   264    51 
         681 
Germany  (0.8%)          
Adidas AG   161    51 
HelloFresh SE (a)   999    92 
Puma SE   625    69 
         212 
Hong Kong  (0.3%)          
AIA Group Ltd.   7,200    83 
           
India  (2.0%)          
HDFC Bank Ltd. ADR   5,936    434 
ICICI Bank Ltd. ADR   4,202    79 
IndusInd Bank Ltd.   997    15 
Kotak Mahindra Bank Ltd.   571    15 
Shree Cement Ltd.   22    9 
Zomato Ltd. (a)   1,168    2 
         554 
Israel  (0.7%)          
Global-e Online Ltd. (a)   439    31 
IronSource Ltd., Class A (a)(f)   5,141    51 
IronSource Ltd., Class A (a)   5,867    64 
Monday.com Ltd. (a)   131    43 
         189 
Italy  (1.3%)          
Brunello Cucinelli SpA (a)   495    27 
Davide Campari-Milano N.V.   5,004    70 
Moncler SpA   3,893    238 
Stevanato Group SpA (a)   1,307    33 
         368 
Japan  (1.0%)          
BASE, Inc. (a)   1,700    17 
Change, Inc. (a)   600    12 
Demae-Can Co., Ltd. (a)   1,500    23 
Keyence Corp.   300    179 
Pigeon Corp.   2,300    53 
         284 
Korea, Republic of  (0.2%)          
KakaoBank Corp. (a)   163    9 
NAVER Corp.   182    59 
         68 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Mexico  (0.1%)          
Grupo Aeroportuario del Sureste SAB de CV, Class B   1,175    22 
           
Netherlands  (2.9%)          
Adyen N.V. (a)   139    389 
ASML Holding N.V.   263    197 
ASML Holding N.V. (Registered)   250    186 
Basic-Fit N.V. (a)   834    38 
Just Eat Takeaway.com N.V. (a)   83    6 
         816 
Norway  (0.0%) (c)          
Kahoot! ASA (a)   1,160    8 
           
Poland  (0.5%)          
Dino Polska SA (a)   1,519    127 
           
Russia  (0.0%) (c)          
Yandex N.V., Class A (a)   41    3 
           
Singapore  (3.5%)          
Sea Ltd. ADR (a)   3,029    965 
           
Spain  (0.1%)          
Aena SME SA (a)   114    20 
           
Sweden  (1.7%)          
AddLife AB, Class B   4,735    173 
Evolution Gaming Group AB   974    147 
Kinnevik AB, Class B (a)   2,262    79 
Olink Holding AB ADR (a)   558    14 
Vitrolife AB   1,077    57 
         470 
Switzerland  (0.6%)          
Kuehne & Nagel International AG (Registered)   189    64 
On Holding AG, Class A (a)   759    23 
Straumann Holding AG (Registered)   41    74 
         161 
Taiwan  (0.5%)          
Taiwan Semiconductor Manufacturing Co., Ltd.   7,000    145 
Taiwan Semiconductor Manufacturing Co., Ltd. ADR   87    10 
         155 
United Kingdom  (2.9%)          
Abcam PLC (a)   408    8 
Abcam PLC ADR (a)   918    19 
Angle PLC (a)   33,378    60 
Babcock International Group PLC (a)   26,224    131 
Deliveroo PLC (a)   18,200    70 
Diageo PLC   976    47 
Fevertree Drinks PLC   679    21 
Rentokil Initial PLC   7,146    56 
Rightmove PLC   8,551    79 
Victoria PLC (a)   26,258    327 
         818 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

United States  (61.2%)          
10X Genomics, Inc., Class A (a)   703    102 
23andMe Holding Co. (a)(f)   1,186    10 
4D Molecular Therapeutics, Inc. (a)   390    10 
ABG Acquisition Corp. I, Class A SPAC (a)   766    7 
Activision Blizzard, Inc.   56    4 
Adobe, Inc. (a)   208    120 
Affirm Holdings, Inc. (a)   2,394    285 
Agilon health, Inc. (a)   5,073    133 
Airbnb, Inc., Class A (a)   59    10 
Alignment Healthcare, Inc. (a)   935    15 
Allogene Therapeutics, Inc. (a)   361    9 
Alnylam Pharmaceuticals, Inc. (a)   169    32 
Alteryx, Inc., Class A (a)   489    36 
Altimeter Growth Corp., Class A SPAC (a)   12,681    130 
Amazon.com, Inc. (a)   91    299 
American Tower Corp. REIT   100    27 
Anterix, Inc. (a)   1,412    86 
Appian Corp. (a)   2,538    235 
AppLovin Corp., Class A (a)   689    50 
Asana, Inc., Class A (a)   189    20 
ATAI Life Sciences N.V. (a)   1,036    15 
AutoZone, Inc. (a)   3    5 
Avalara, Inc. (a)   18    3 
Axon Enterprise, Inc. (a)   1,014    177 
Ball Corp.   95    9 
Beachbody Co., Inc. (The) (a)   2,963    16 
Beam Therapeutics, Inc. (a)   309    27 
Berkshire Hathaway, Inc., Class B (a)   27    7 
Big Sky Growth Partners, Inc. (Units) SPAC (a)(d)   1,728    17 
Bill.Com Holdings, Inc. (a)   1,179    315 
BowX Acquisition Corp., Class A SPAC (a)   4,562    46 
Brookfield Asset Management Reinsurance Partners Ltd., Class A (a)   12    1 
C3.ai, Inc., Class A (a)   647    30 
C4 Therapeutics, Inc. (a)   244    11 
Cadence Design Systems, Inc. (a)   19    3 
Cardlytics, Inc. (a)   1,966    165 
Carvana Co. (a)   1,401    422 
Cazoo Group Ltd. (a)   4,031    31 
Cazoo Group Ltd. (a)(f)   11,731    87 
Celsius Holdings, Inc. (a)   438    39 
Century Therapeutics, Inc. (a)   352    9 
Chewy, Inc., Class A (a)   35    2 
Cintas Corp.   7    3 
Cipher Mining Technologies, Inc. (a)(f)   4,266    39 
Clear Secure, Inc., Class A (a)   944    39 
Cloudflare, Inc., Class A (a)   3,817    430 
Colgate-Palmolive Co.   40    3 
Confluent, Inc., Class A (a)   183    11 
Copart, Inc. (a)   21    3 
CoStar Group, Inc. (a)   35    3 
Costco Wholesale Corp.   152    68 
Coupa Software, Inc. (a)   187    41 
Coupang, Inc. (a)   10,900    304 
Covetrus, Inc. (a)   20,096    365 
Cricut, Inc., Class A (a)   10,008    276 
Crowdstrike Holdings, Inc., Class A (a)   12    3 
Danaher Corp.   223    68 
Datadog, Inc., Class A (a)   821    116 
Desktop Metal, Inc., Class A (a)   3,901    28 
DexCom, Inc. (a)   5    3 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Digital Transformation Opportunities Corp. (Units) SPAC (a)(d)   296    3 
DocuSign, Inc. (a)   35    9 
Domino's Pizza, Inc.   56    27 
DoorDash, Inc., Class A (a)   1,173    242 
Doximity, Inc., Class A (a)   1,050    85 
Duolingo, Inc. (a)   314    52 
Dynamics Special Purpose Corp., Class A SPAC (a)   3,076    31 
Ecolab, Inc.   37    8 
Editas Medicine, Inc. (a)   167    7 
Endeavor Group Holdings, Inc., Class A (a)   721    21 
EPAM Systems, Inc. (a)   479    273 
EVI Industries, Inc. (a)   377    10 
Exact Sciences Corp. (a)   89    8 
Facebook, Inc., Class A (a)   351    119 
Farfetch Ltd., Class A (a)   4,438    166 
Fastenal Co.   52    3 
Fastly, Inc., Class A (a)   11,537    467 
Fate Therapeutics, Inc. (a)   102    6 
Figs, Inc., Class A (a)   1,339    50 
Floor & Decor Holdings, Inc., Class A (a)   1,144    138 
GH Research PLC (a)   451    10 
Ginkgo Bioworks Holdings, Inc. (a)   1,309    15 
Ginkgo Bioworks, Inc. (a)(f)   5,870    65 
GoodRx Holdings, Inc., Class A (a)   5,198    213 
Graphite Bio, Inc. (a)   409    7 
Guardant Health, Inc. (a)   1,083    135 
Guidewire Software, Inc. (a)   25    3 
HealthEquity, Inc. (a)   262    17 
HEICO Corp., Class A   620    73 
Home Depot, Inc. (The)   9    3 
IAC/InterActiveCorp (a)   40    5 
IDEXX Laboratories, Inc. (a)   7    4 
Illumina, Inc. (a)   11    4 
Inspire Medical Systems, Inc. (a)   222    52 
Intellia Therapeutics, Inc. (a)   611    82 
Intercontinental Exchange, Inc.   190    22 
Intuitive Surgical, Inc. (a)   101    100 
JFrog Ltd. (a)   2,060    69 
Latch, Inc. (a)   6,833    77 
Linde PLC   62    18 
Lockheed Martin Corp.   9    3 
Lululemon Athletica, Inc. (a)   7    3 
Lyell Immunopharma, Inc. (a)   519    8 
Marqeta, Inc., Class A (a)   712    16 
Martin Marietta Materials, Inc.   47    16 
Mastercard, Inc., Class A   611    212 
Match Group, Inc. (a)   28    4 
Matterport, Inc. (a)   3,873    73 
MaxCyte, Inc. (a)   1,310    16 
McDonald's Corp.   13    3 
Meli Kaszek Pioneer Corp.   2,799    31 
Membership Collective Group, Inc., Class A (a)   2,362    29 
MercadoLibre, Inc. (a)   168    282 
MicroStrategy, Inc., Class A (a)   65    38 
Moderna, Inc. (a)   282    108 
MongoDB, Inc. (a)   312    147 
MP Materials Corp. (a)   511    16 
NanoString Technologies, Inc. (a)   1,811    87 
Nerdy, Inc. (a)   2,970    30 
NIKE, Inc., Class B   17    2 
NVIDIA Corp.   34    7 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Oak Street Health, Inc. (a)   209    9 
Okta, Inc. (a)   429    102 
Olo, Inc., Class A (a)   2,587    78 
Opendoor Technologies, Inc. (a)   419    9 
Original BARK Co. (The) (a)   4,086    28 
Oscar Health, Inc., Class A (a)   965    17 
Outset Medical, Inc. (a)   355    18 
Overstock.com, Inc. (a)   10,112    788 
Palantir Technologies, Inc., Class A (a)   1,046    25 
Party City Holdco, Inc. (a)   25,464    181 
Passage Bio, Inc. (a)   690    7 
Peloton Interactive, Inc., Class A (a)   169    15 
Penumbra, Inc. (a)   63    17 
Pinterest, Inc., Class A (a)   3,694    188 
PLx Pharma, Inc. (a)   1,863    36 
Pool Corp.   7    3 
Privia Health Group, Inc. (a)   580    14 
Procore Technologies, Inc. (a)   89    8 
Progressive Corp. (The)   384    35 
Qualtrics International, Inc., Class A (a)   318    14 
Quotient Ltd. (a)   3,552    8 
Redfin Corp. (a)   4,002    200 
Relay Therapeutics, Inc. (a)   247    8 
Ribbit Leap Ltd. (Units) SPAC (a)(d)   957    10 
ROBLOX Corp., Class A (a)   4,175    315 
Roku, Inc. (a)   52    16 
Rollins, Inc.   203    7 
Roper Technologies, Inc.   10    4 
Royal Gold, Inc.   503    48 
Royalty Pharma PLC, Class A   12,490    451 
S&P Global, Inc.   140    59 
salesforce.com, Inc. (a)   942    255 
Sana Biotechnology, Inc. (a)   652    15 
Schrodinger, Inc. (a)   205    11 
Seer, Inc. (a)   863    30 
Sema4 Holdings Corp. (a)   1,587    12 
Sema4 Holdings Corp. (a)(f)   2,349    17 
Service Corp. International   75    4 
ServiceNow, Inc. (a)   301    187 
Sherwin-Williams Co. (The)   16    4 
Signify Health, Inc., Class A (a)   611    11 
Skillz, Inc. (a)   12,982    127 
Snap, Inc., Class A (a)   5,565    411 
Snowflake, Inc., Class A (a)   1,434    434 
SomaLogic, Inc. (a)   484    6 
SomaLogic, Inc. (a)(f)   1,080    13 
Spotify Technology SA (a)   785    177 
Square, Inc., Class A (a)   1,976    474 
Starbucks Corp.   25    3 
Stitch Fix, Inc., Class A (a)   5,589    223 
Synopsys, Inc. (a)   10    3 
Talkspace, Inc. (a)(f)   1,323    5 
TCV Acquisition Corp., Class A SPAC (a)   1,011    10 
Teladoc Health, Inc. (a)   49    6 
Texas Pacific Land Corp.   19    23 
Thermo Fisher Scientific, Inc.   5    3 
Trade Desk, Inc. (The), Class A (a)   2,946    207 
Twilio, Inc., Class A (a)   743    237 
Twitter, Inc. (a)   7,181    434 
Tyler Technologies, Inc. (a)   57    26 
Uber Technologies, Inc. (a)   3,851    172 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

UiPath, Inc., Class A (a)   449    24 
Unity Software, Inc. (a)   1,773    224 
Upwork, Inc. (a)   749    34 
USHG Acquisition Corp. (Units) SPAC (a)(d)   1,705    17 
UTZ Brands, Inc.   1,732    30 
Veeva Systems, Inc., Class A (a)   975    281 
Vimeo, Inc. (a)   3,119    92 
Visa, Inc., Class A   641    143 
Vroom, Inc. (a)   3,169    70 
Walt Disney Co. (The) (a)   1,115    189 
Warby Parker, Inc., Class A (a)   579    31 
Waste Connections, Inc.   402    51 
Watsco, Inc.   9    2 
Wayfair, Inc., Class A (a)   1,226    313 
Workday, Inc., Class A (a)   19    5 
Zillow Group, Inc., Class A (a)   596    53 
Zillow Group, Inc., Class C (a)   1,310    115 
Zoetis, Inc.   15    3 
Zoom Video Communications, Inc., Class A (a)   1,040    272 
ZoomInfo Technologies, Inc., Class A (a)   2,438    149 
Zymergen, Inc. (a)   975    13 
         17,059 
Total Common Stocks (Cost $18,315)        25,764 
           
Preferred Stocks  (0.2%)          
United States  (0.2%)          
Databricks, Inc. (a)(e)(f)
(acquisition cost — $44; acquired 8/31/21)		   198    44 
Overstock.com, Inc. Series A-1 (a)   176    12 
Total Preferred Stocks (Cost $45)        56 
           
Investment Companies  (0.9%)          
United States  (0.6%)          
Grayscale Bitcoin Trust (a)   5,039    171 
           
United Kingdom  (0.3%)          
Hipgnosis Songs Fund Ltd.   44,172    73 
Total Investment Companies (Cost $297)        244 

 

  

No. of

Warrants

      
Warrants  (0.0%) (c)          
United States  (0.0%) (c)          
Ginkgo Bioworks Holdings, Inc. expires 12/31/27 (a)   262    1 
Original BARK Co. (The) expires 5/1/26 (a)   373    1 
SomaLogic, Inc. expires 8/31/26 (a)   161    - 
Total Warrants (Cost $3)        2 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

   Shares      
Short-Term Investment  (6.4%)          
Investment Company  (6.4%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (g) (Cost $1,779)   1,779,077    1,779 
Total Investments Excluding Purchased Options (99.9%) (Cost $20,439)        27,845 
Total Purchased Options Outstanding (0.1%) (Cost $88)        21 
Total Investments (100.0%) (Cost $20,527) (h)(i)(j)(k)        27,866 
Liabilities in Excess of Other Assets (0.0%) (c)        (9)
Net Assets (100.0%)       $27,857 

 

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.

 

The Fund had the following Derivative Contracts -  PIPE open at September 30, 2021:  

 

Counterparty   Referenced
Obligation		   Notional
Amount		     Settlement
Date		   Unrealized
Depreciation
(000)		     % of
Net Assets		  
Altimeter Growth Corp.   Grab Holdings Inc.(a)(e)(f)(l)(o)   $ 106,460     12/31/21   $                 (9 )                    (0.03 )%
Athena Technology Acquisition Corp.   Heliogen, Inc. (a)(e)(f)(m)(o)     52,980     12/31/21     (6 )     (0.02 )
Reinvent Technology Partners Y   Aurora Innovation, Inc. (a)(e)(f)(n)(o)     20,210     12/31/21     (3 )     (0.01 )
                    $ (18 )     (0.06 )%

 

(a) Non-income producing security.
(b) Security trades on the Hong Kong exchange.
(c) Amount is less than 0.05%.
(d) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.
(e) At September 30, 2021, the Fund held a fair valued security and derivative contracts at approximately $26,000 representing 0.1% 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) 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 September 30, 2021 amounts to approximately $313,000 and represents 1.1% of net assets.
(g) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund’s investment in the Liquidity Funds.
(h) The approximate fair value and percentage of net assets, $5,008,000 and 18.0%, 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.
(i) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(j) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $8,726,000 and the aggregate gross unrealized depreciation is approximately $1,405,000, resulting in net unrealized appreciation of approximately $7,321,000.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

(k) Securities are available for collateral in connection with securities purchased on a forward commitment basis.
(l) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 10,646 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., 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 Altimeter Growth Corp., and Grab Holdings Inc., 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 Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.
(m) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 5,298 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Heliogen, Inc., and Athena Technology Acquisition Corp., 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 Athena Technology Acquisition Corp., and Heliogen, Inc., 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 Athena Technology Acquisition Corp., and Heliogen, Inc. The investment is restricted from resale until the settlement date.
(n) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 2,021 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Aurora Innovation, Inc., and Reinvent Technology Partners Y, 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 Reinvent Technology Partners Y, and Aurora Innovation, Inc., 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 Aurora Innovation, Inc., and Reinvent Technology Partners Y. The investment is restricted from resale until the settlement date.
(o) 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.
BSRM Berlin Second Regulated Market.
PIPE Private Investment in Public Equity.
REIT Real Estate Investment Trust.
SPAC Special Purpose Acquisition Company.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Counterpoint Global Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:
The Fund had the following call options purchased open at September 30, 2021:

 

Counterparty  Description  Strike
Price		  Expiration
Date		  Number of
Contracts		   Notional
Amount
(000)		   Value
(000)		   Premiums
Paid
(000)		   Unrealized
Depreciation
(000)		 
BNP Paribas  USD/CNH  CNH 7.45  Jan-22   2,935,915    2,936   $—@   $16   $(16)
BNP Paribas  USD/CNH  CNH 7.64  Nov-21   2,347,349    2,347    —@    13    (13)
Goldman Sachs International  USD/CNH  CNH 7.57  Mar-22   3,169,691    3,170    1    16    (15)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.28  Jul-22   3,914,073    3,914    10    18    (8)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.31  Aug-22   2,533,588    2,534    7    17    (10)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.38  Jul-22   1,595,646    1,596    3    8    (5)
                        $21   $88   $(67)

 

@ Value is less than $500.
CNH —  Chinese Yuan Renminbi Offshore
USD —  United States Dollar

 

 

 

 

Portfolio Composition  

 

Classification  Percentage of
Total Investments		 
Other*   42.0%
Information Technology Services   16.1 
Software   11.3 
Internet & Direct Marketing Retail   11.3 
Entertainment   6.6 
Short-Term Investments   6.4 
Interactive Media & Services   6.3 
Total Investments   100.0%**

 

*Industries and/or investment types representing less than 5% of total investments.
**Does not include open PIPE contracts with total unrealized depreciation of approximately $18,000.

 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Developing Opportunity Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

  Shares   Value
(000)		 
Common Stocks (98.3%)          
Argentina (2.4%)          
Globant SA (a)   22,958   $6,451 
           
Brazil (4.2%)          
B3 SA — Brasil Bolsa Balcao   1,300,260    3,042 
Magazine Luiza SA   3,146,266    8,285 
         11,327 
China (36.0%)          
360 DigiTech, Inc. (a)   172,452    3,504 
China East Education Holdings Ltd. (a)(b)   1,280,000    1,321 
China Resources Beer Holdings Co., Ltd. (b)   708,000    5,236 
Foshan Haitian Flavouring & Food Co., Ltd., Class A   601,482    10,199 
Haidilao International Holding Ltd. (b)   1,323,000    5,068 
HUYA, Inc. ADR (a)   411,100    3,428 
KE Holdings, Inc. ADR (a)   400,640    7,316 
Kuaishou Technology (a)(b)   571,100    6,095 
Kweichow Moutai Co., Ltd., Class A   32,289    9,114 
Meituan, Class B (a)(b)   504,700    16,111 
New Frontier Health Corp. SPAC (a)   7,725    87 
Shenzhou International Group Holdings Ltd. (b)   281,200    5,968 
Tencent Holdings Ltd. (b)   126,600    7,558 
Trip.com Group Ltd. ADR (a)   383,539    11,794 
Tsingtao Brewery Co., Ltd. H Shares (b)   424,000    3,335 
Yihai International Holding Ltd. (a)(b)   248,000    1,382 
         97,516 
India (23.7%)          
HDFC Bank Ltd.   1,088,416    23,268 
ICICI Bank Ltd. ADR   836,332    15,782 
IndusInd Bank Ltd.   611,742    9,083 
Kotak Mahindra Bank Ltd.   353,150    9,504 
Shree Cement Ltd.   13,658    5,311 
Zomato Ltd. (a)   726,562    1,337 
         64,285 
Korea, Republic of (6.6%)          
KakaoBank Corp. (a)   78,348    4,526 
NAVER Corp.   40,912    13,275 
         17,801 
Mexico (0.9%)          
Grupo Aeroportuario del Sureste SAB de CV, Class B   127,500    2,378 
           
Russia (1.5%)          
Yandex N.V., Class A (a)   52,228    4,162 
           
Taiwan (6.9%)          
Nien Made Enterprise Co., Ltd.   162,000    2,291 
Silergy Corp.   39,000    5,673 
Taiwan Semiconductor Manufacturing Co., Ltd.   516,000    10,672 
         18,636 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Developing Opportunity Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

United States (16.1%)          
Coupang, Inc. (a)   464,806    12,945 
EPAM Systems, Inc. (a)   25,095    14,316 
MercadoLibre, Inc. (a)   9,849    16,541 
         43,802 
Total Common Stocks (Cost $247,143)         266,358 
           
Investment Company (0.7%)          
Grayscale Bitcoin Trust (a) (Cost $2,450)   53,649    1,816 
           
Short-Term Investment (3.2%)          
Investment Company (3.2%)          
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (c) (Cost $8,788)   8,787,667    8,788 
Total Investments Excluding Purchased Options (102.2%) (Cost $258,381)        276,962 
Total Purchased Options Outstanding (0.1%) (Cost $871)        338 
Total Investments (102.3%) (Cost $259,252) (d)(e)(f)(g)        277,300 
Liabilities in Excess of Other Assets (–2.3%)        (6,374)
Net Assets (100.0%)       $270,926 

 

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.

 

The Fund had the following Derivative Contract - PIPE open at September 30, 2021: 

 

Counterparty  Referenced
Obligation		  Notional
Amount		   Settlement
Date		  Unrealized
 Depreciation
(000)		   % of
Net Assets		 
Altimeter Growth Corp.  Grab Holdings Inc. (a)(h)(i)(j)(k)  $2,601,490   12/31/21  $(209)   (0.1)%

 

(a) Non-income producing security.
(b) Security trades on the Hong Kong exchange.
(c) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $6,000 relating to the Fund's investment in the Liquidity Funds.
(d) The approximate fair value and percentage of net assets, $150,464,000 and 55.5%, 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.
(e) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(f) Securities are available for collateral in connection with securities purchased on a forward commitment basis.
(g) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $44,726,000 and the aggregate gross unrealized depreciation is approximately $26,887,000, resulting in net unrealized appreciation of approximately $17,839,000.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Developing Opportunity Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

(h) 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 derivative contract (excluding 144A holdings) at September 30, 2021 amounts to approximately $(209,000) and represents (0.1)% of net assets.
(i) At September 30, 2021, the Fund held a fair valued derivative contract valued at approximately ($209,000) representing (0.1)% 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.
(j) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 260,149 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., 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 Altimeter Growth Corp., and Grab Holdings Inc., 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 Altimeter Growth Corp., and Grab Holdings Inc. 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.
   
ADR American Depositary Receipt.
PIPE Private Investment in Public.
SPAC Special Purpose Acquisition Company.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Developing Opportunity Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:
The Fund had the following call options purchased open at September 30, 2021:

 

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   $223   $586   $(363)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.38   Jul-22   53,625,517    53,626    115    285    (170)
                         $338   $871   $(533)

 

CNH –  Chinese Yuan Renminbi Offshore

USD –  United States Dollar

 

 

 

 

Portfolio Composition  

 

Classification  Percentage of
Total Investments		 
Other*   23.5%
Banks   22.4 
Internet & Direct Marketing Retail   17.0 
Interactive Media & Services   11.2 
Information Technology Services   7.5 
Beverages   6.4 
Hotels, Restaurants & Leisure   6.1 
Semiconductors & Semiconductor Equipment   5.9 
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 $209,000.

 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks (97.9%)        
Argentina (1.8%)        
Globant SA (a)   46,074   $12,947 
           
Brazil (3.7%)          
Hapvida Participacoes e Investimentos SA   2,699,600    6,737 
Lojas Renner SA   1,161,880    7,344 
Petroleo Brasileiro SA   1,226,146    6,338 
Petroleo Brasileiro SA (Preference)   1,238,669    6,193 
         26,612 
China (17.3%)          
Alibaba Group Holding Ltd. ADR (a)(b)   289,472    5,359 
China Construction Bank Corp. H Shares (b)   17,954,120    12,814 
China Mengniu Dairy Co., Ltd. (a)(b)   1,634,000    10,523 
China Merchants Bank Co., Ltd. H Shares (b)   1,650,500    13,135 
China Resources Beer Holdings Co., Ltd. (b)   1,246,000    9,216 
China Tourism Group Duty Free Corp. Ltd., Class A   52,300    2,095 
Jiangsu Hengrui Medicine Co., Ltd., Class A   466,059    3,618 
Kweichow Moutai Co., Ltd., Class A   23,149    6,534 
Li Ning Co., Ltd. (b)   168,500    1,942 
Meituan, Class B (a)(b)   385,800    12,315 
Proya Cosmetics Co. Ltd., Class A   73,300    1,962 
Shenzhou International Group Holdings Ltd. (b)   545,800    11,584 
Tencent Holdings Ltd. (b)   543,400    32,440 
Wuxi Biologics Cayman, Inc. (a)(b)   158,000    2,563 
         126,100 
Germany (1.1%)          
Infineon Technologies AG   193,891    7,930 
           
Hong Kong (1.1%)          
Hong Kong Exchanges & Clearing Ltd.   134,800    8,284 
           
India (12.4%)          
Asian Paints Ltd.   121,334    5,289 
Bharti Airtel Ltd.   222,050    2,053 
Eicher Motors Ltd.   82,273    3,078 
HDFC Bank Ltd. ADR   103,532    7,567 
Hindalco Industries Ltd.   990,542    6,484 
Housing Development Finance Corp., Ltd.   383,206    14,162 
ICICI Bank Ltd.   1,142,131    10,732 
ICICI Prudential Life Insurance Co., Ltd.   620,093    5,598 
Infosys Ltd.   357,609    8,018 
Infosys Ltd. ADR   121,594    2,705 
Mahindra & Mahindra Financial Services Ltd.   943,320    2,338 
Mahindra & Mahindra Ltd.   408,467    4,399 
Reliance Industries Ltd.   169,336    5,731 
Reliance Industries Ltd Partly Paid   342,158    8,577 
Shree Cement Ltd.   9,326    3,626 
         90,357 
Indonesia (2.1%)          
Bank Central Asia Tbk PT   3,834,500    9,340 
Bank Mandiri Persero Tbk PT   9,474,300    4,049 
Bukalapak.com Tbk PT (a)   35,511,500    2,134 
         15,523 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d) 

 

Korea, Republic of (8.9%)          
Hyundai Motor Co.   15,677    2,610 
Kakao Corp.   45,190    4,444 
KakaoBank Corp. (a)   10,314    596 
Kia Motor Corp.   39,459    2,665 
LG Chem Ltd.   4,933    3,199 
NAVER Corp.   12,592    4,086 
Samsung Electronics Co., Ltd.   608,112    37,700 
Samsung SDI Co., Ltd.   10,221    6,099 
SK Hynix, Inc.   42,819    3,665 
         65,064 
Mexico (3.7%)          
Grupo Aeroportuario del Sureste SAB de CV, Class B   528,528    9,859 
Grupo Financiero Banorte SAB de CV Series O   1,226,847    7,863 
Wal-Mart de Mexico SAB de CV   2,794,098    9,469 
         27,191 
Netherlands (2.5%)          
ASML Holding N.V.   24,324    18,124 
           
Panama (1.2%)          
Copa Holdings SA, Class A (a)   108,142    8,801 
           
Poland (2.2%)          
Allegro.eu SA (a)   305,641    4,438 
LPP SA   3,177    11,832 
         16,270 
Russia (8.8%)          
Fix Price Group Ltd. GDR   408,827    3,673 
Fix Price Group Ltd. GDR (Registered GDR)   225,559    2,023 
LUKOIL PJSC ADR   96,302    9,146 
Novatek PJSC GDR (Registered)   51,656    13,525 
Ozon Holdings PLC ADR (a)   100,042    5,047 
TCS Group Holding PLC GDR   197,027    17,916 
Yandex N.V., Class A (a)   161,238    12,849 
         64,179 
Singapore (2.1%)          
Sea Ltd. ADR (a)   47,078    15,005 
           
South Africa (5.1%)          
Anglo American Platinum Ltd.   58,462    5,049 
Anglo American PLC   463,246    16,341 
Capitec Bank Holdings Ltd.   77,700    9,421 
Clicks Group Ltd.   103,895    1,916 
Mr Price Group Ltd.   334,534    4,488 
         37,215 
Taiwan (15.3%)          
Airtac International Group   261,000    8,120 
ASE Technology Holding Co., Ltd.   2,917,626    11,288 
Delta Electronics, Inc.   1,505,000    13,485 
MediaTek, Inc.   169,000    5,440 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d) 

 

Novatek Microelectronics Corp.   316,000    4,591 
Silergy Corp.   54,000    7,854 
Taiwan Semiconductor Manufacturing Co., Ltd.   2,937,205    60,748 
         111,526 
United Kingdom (2.7%)          
Avast PLC   786,203    6,008 
Mondi PLC   540,466    13,309 
         19,317 
United States (5.9%)          
Applied Materials, Inc.   54,158    6,972 
EPAM Systems, Inc. (a)   19,543    11,149 
Lam Research Corp.   9,957    5,667 
MercadoLibre, Inc. (a)   7,263    12,197 
NIKE, Inc., Class B   48,351    7,022 
         43,007 
Total Common Stocks (Cost $467,474)        713,452 
           
    No. of
Rights		      
Rights (0.0%) (c)          
India (0.0%) (c)          
Bharti Airtel Ltd. (Cost $—)   15,860    32 
           
    Shares      
Short-Term Investment (1.2%)          
Investment Company (1.2%)          
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class (d) (Cost $8,931)   8,930,928    8,931 
Total Investments (99.1%) (Cost $476,405) (e)(f)(g)        722,415 
Other Assets in Excess of Liabilities (0.9%)        6,704 
Net Assets (100.0%)       $729,119 

 

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.
(c) Value is less than 0.05%.
(d) The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds - Government Portfolio - (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. Advisory fees paid by the Fund are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Fund due to its investment in the Liquidity Funds. For the nine months ended September 30, 2021, advisory fees paid were reduced by approximately $4,000 relating to the Fund's investment in the Liquidity Funds.
(e) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d) 

 

(f) The approximate fair value and percentage of net assets, $527,193,000 and 72.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(g) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $261,048,000 and the aggregate gross unrealized depreciation is approximately $15,038,000, resulting in net unrealized appreciation of approximately $246,010,000.
   
ADR American Depositary Receipt.
GDR Global Depositary Receipt.
PJSC Public Joint Stock Company.

 

 

 

 

Portfolio Composition     

 

Classification   Percentage of
Total Investments		 
Other*   43.5%
Semiconductors & Semiconductor Equipment   18.3 
Banks   12.9 
Interactive Media & Services   7.5 
Oil, Gas & Consumable Fuels   6.9 
Internet & Direct Marketing Retail   5.7 
Tech Hardware, Storage & Peripherals   5.2 
Total Investments   100.0%

 

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

       

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Face
Amount
(000)		   Value
(000)		 
Fixed Income Securities  (94.4%)          
Argentina  (0.7%)          
Corporate Bonds  (0.4%)          
Pampa Energia SA,          
9.13%, 4/15/29 (a)  $150   $140 
Telecom Argentina SA,          
8.00%, 7/18/26 (a)   7    7 
         147 
Sovereign  (0.3%)          
Argentine Republic Government International Bond,          
0.50%, 7/9/30 (b)   127    47 
1.00%, 7/9/29   24    9 
1.13%, 7/9/35 (b)   232    76 
         132 
         279 
Armenia  (1.2%)          
Corporate Bond  (0.7%)          
Ardshinbank CJSC Via Dilijan Finance BV,          
6.50%, 1/28/25 (a)   270    270 
           
Sovereign  (0.5%)          
Republic of Armenia International Bond,          
3.95%, 9/26/29   200    196 
         466 
Brazil  (5.2%)          
Corporate Bonds  (2.2%)          
Iochpe-Maxion Austria GmbH/Maxion Wheels de Mexico S de RL de CV,          
5.00%, 5/7/28 (a)   200    200 
MARB BondCo PLC,          
3.95%, 1/29/31 (a)   200    192 
MercadoLibre, Inc.,          
3.13%, 1/14/31   200    193 
Movida Europe SA,          
5.25%, 2/8/31 (a)   200    195 
Suzano Austria GmbH,          
3.75%, 1/15/31   40    41 
         821 
Sovereign  (3.0%)          
Brazil Notas do Tesouro Nacional, Series F,          
10.00%, 1/1/23 – 1/1/25  BRL5,187    950 
Brazilian Government International Bond,          
3.88%, 6/12/30  $200    194 
         1,144 
         1,965 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Chile  (3.4%)          
Corporate Bonds  (2.2%)          
ATP Tower Holdings LLC/Andean Tower Partners Colombia SAS/Andean Telecom Par,          
4.05%, 4/27/26 (a)   200    201 
Cencosud SA,          
4.38%, 7/17/27   200    218 
Colbun SA,          
3.15%, 3/6/30 (a)   200    206 
Kenbourne Invest SA,          
4.70%, 1/22/28 (a)   200    201 
         826 
Sovereign  (1.2%)          
Bonos de la Tesoreria de la Republica en pesos,          
2.30%, 10/1/28 (a)  CLP130,000    132 
4.50%, 3/1/26   90,000    108 
Chile Government International Bond,          
3.50%, 1/25/50  $200    200 
         440 
         1,266 
China  (5.8%)          
Corporate Bonds  (1.7%)          
Country Garden Holdings Co., Ltd.,          
7.25%, 4/8/26   260    275 
Huarong Finance Co. Ltd.,          
3.88%, 11/13/29   200    177 
Huarong Finance II Co. Ltd.,          
4.63%, 6/3/26   200    191 
         643 
Sovereign  (4.1%)          
China Government Bond,          
2.68%, 5/21/30  CNY2,820    426 
3.13%, 11/21/29   4,900    769 
3.29%, 10/18/23   940    148 
Sinopec Group Overseas Development 2018 Ltd.,          
2.95%, 11/12/29 (a)  $200    210 
         1,553 
         2,196 
Colombia  (3.6%)          
Corporate Bonds  (1.6%)          
Banco GNB Sudameris SA,          
7.50%, 4/16/31 (a)   200    204 
Grupo Aval Ltd.,          
4.38%, 2/4/30 (a)   200    198 
SierraCol Energy Andina LLC,          
6.00%, 6/15/28 (a)   200    196 
         598 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Sovereign  (2.0%)          
Colombia Government International Bond,          
4.13%, 5/15/51   200    172 
Colombian TES,          
Series B          
6.00%, 4/28/28  COP758,400    188 
7.00%, 6/30/32   253,800    63 
7.50%, 8/26/26   686,600    187 
10.00%, 7/24/24   454,100    133 
         743 
         1,341 
Costa Rica  (0.5%)          
Sovereign  (0.5%)          
Costa Rica Government International Bond,          
7.16%, 3/12/45  $200    201 
           
Czech Republic  (0.4%)          
Sovereign  (0.4%)          
Czech Republic Government Bond,          
1.20%, 3/13/31  CZK3,440    145 
           
Dominican Republic  (1.8%)          
Sovereign  (1.8%)          
Dominican Republic International Bond,          
5.30%, 1/21/41 (a)  $300    298 
5.88%, 1/30/60 (a)   150    147 
9.75%, 6/5/26 (a)  DOP10,550    227 
         672 
Ecuador  (1.0%)          
Sovereign  (1.0%)          
Ecuador Government International Bond,          
0.00%, 7/31/30 (a)  $20    11 
0.50%, 7/31/40 (a)(b)   100    59 
0.50%, 7/31/40 (b)   170    99 
1.00%, 7/31/35 (b)   100    67 
1.00%, 7/31/35 (a)(b)   103    68 
5.00%, 7/31/30 (a)(b)   83    70 
         374 
Egypt  (4.3%)          
Corporate Bond  (1.1%)          
African Export-Import Bank (The),          
3.99%, 9/21/29 (a)   390    413 
           
Sovereign  (3.2%)          
Egypt Government Bond,          
13.77%, 1/5/24  EGP5,012    317 
14.06%, 1/12/26   4,020    254 
Egypt Government International Bond,          
5.25%, 10/6/25  $200    205 
6.38%, 4/11/31 (a)  EUR230    262 
7.50%, 2/16/61 (a)  $200    176 
         1,214 
         1,627 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

El Salvador  (0.3%)          
Sovereign  (0.3%)          
El Salvador Government International Bond,          
7.12%, 1/20/50 (a)   150    104 
           
Ghana  (1.5%)          
Corporate Bonds  (1.0%)          
Kosmos Energy Ltd.,          
7.13%, 4/4/26 (a)   200    196 
Tullow Oil PLC,          
7.00%, 3/1/25   200    174 
         370 
Sovereign  (0.5%)          
Ghana Government International Bond,          
8.88%, 5/7/42 (a)   200    187 
         557 
Hungary  (1.2%)          
Sovereign  (1.2%)          
Hungary Government Bond,          
3.00%, 8/21/30  HUF56,000    180 
6.00%, 11/24/23   76,600    270 
         450 
India  (0.6%)          
Corporate Bond  (0.6%)          
Greenko Investment Co.,          
4.88%, 8/16/23 (a)  $240    242 
           
Indonesia  (4.9%)          
Sovereign  (4.9%)          
Indonesia Government International Bond,          
3.85%, 7/18/27   200    222 
4.45%, 4/15/70   230    263 
Indonesia Treasury Bond,          
6.50%, 6/15/25 – 2/15/31  IDR7,064,000    514 
7.00%, 9/15/30   356,000    26 
7.50%, 6/15/35   2,520,000    187 
8.38%, 4/15/39   3,200,000    252 
8.75%, 5/15/31   1,310,000    107 
Pertamina Persero PT,          
6.50%, 11/7/48 (a)  $200    266 
         1,837 
Israel  (1.3%)          
Corporate Bonds  (1.3%)          
Energean Israel Finance Ltd.,          
4.88%, 3/30/26 (a)   165    170 
Teva Pharmaceutical Finance Netherlands III BV,          
7.13%, 1/31/25   300    328 
         498 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Ivory Coast  (0.4%)          
Sovereign  (0.4%)          
Ivory Coast Government International Bond,          
4.88%, 1/30/32 (a)  EUR140    158 
           
Jordan  (0.5%)          
Sovereign  (0.5%)          
Jordan Government International Bond,          
7.38%, 10/10/47 (a)  $200    208 
           
Kazakhstan  (0.6%)          
Sovereign  (0.6%)          
Development Bank of Kazakhstan JSC,          
10.95%, 5/6/26 (a)  KZT100,000    237 
           
Lebanon  (0.1%)          
Sovereign  (0.1%)          
Lebanon Government International Bond,          
6.85%, 3/23/27 (c)(d)  $266    45 
           
Malaysia  (2.9%)          
Sovereign  (2.9%)          
Malaysia Government Bond,          
3.76%, 5/22/40  MYR950    217 
3.96%, 9/15/25   1,603    401 
4.18%, 7/15/24   762    190 
4.23%, 6/30/31   616    156 
4.50%, 4/15/30   559    144 
         1,108 
Mexico  (12.2%)          
Corporate Bonds  (4.1%)          
Cemex SAB de CV,          
5.13%, 6/8/26 (a)(e)  $200    204 
Financiera Independencia SAB de CV SOFOM ENR,          
8.00%, 7/19/24 (a)   250    231 
Total Play Telecomunicaciones SA de CV,          
6.38%, 9/20/28  (a)   200    200 
7.50%, 11/12/25  (a)   200    208 
7.50%, 11/12/25   200    208 
Trust Fibra Uno,          
6.39%, 1/15/50 (a)   240    285 
Unifin Financiera SAB de CV,          
9.88%, 1/28/29 (a)   200    202 
         1,538 
Sovereign  (8.1%)          
Banco Nacional de Comercio Exterior SNC,          
2.72%, 8/11/31 (a)   200    201 
Mexican Bonos,          
10.00%, 12/5/24  MXN1,388    74 
Series M          
7.50%, 6/3/27   15,813    779 
7.75%, 5/29/31   12,030    598 
8.00%, 12/7/23   2,072    104 
10.00%, 12/5/24   2,321    123 
Mexico Government International Bond,          
3.75%, 4/19/71  $200    173 
Petroleos Mexicanos,          
6.50%, 3/13/27 – 1/23/29   526    549 
6.88%, 10/16/25 (a)   135    148 
6.95%, 1/28/60   365    320 
         3,069 
         4,607 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Moldova  (0.6%)          
Corporate Bond  (0.6%)          
Aragvi Finance International DAC,          
8.45%, 4/29/26 (a)   200    209 
           
Mongolia  (0.5%)          
Sovereign  (0.5%)          
Mongolia Government International Bond,          
4.45%, 7/7/31 (a)   200    194 
           
Morocco  (0.5%)          
Sovereign  (0.5%)          
Morocco Government International Bond,          
4.00%, 12/15/50 (a)   200    183 
           
Nigeria  (5.0%)          
Corporate Bonds  (3.9%)          
Access Bank PLC,          
1.00%, 12/31/99   200    200 
Fidelity Bank PLC,          
10.50%, 10/16/22 (a)   220    236 
First Bank of Nigeria Ltd. Via FBN Finance Co. BV,          
8.63%, 10/27/25 (a)   200    217 
IHS Netherlands Holdco BV,          
8.00%, 9/18/27 (a)   270    289 
SEPLAT Energy PLC,          
7.75%, 4/1/26 (a)   210    219 
United Bank for Africa PLC,          
7.75%, 6/8/22 (a)   300    309 
         1,470 
Sovereign  (1.1%)          
Nigeria Government International Bond,          
7.14%, 2/23/30 (a)   200    204 
7.38%, 9/28/33 (a)   200    202 
         406 
         1,876 
Oman  (1.2%)          
Sovereign  (1.2%)          
Oman Government International Bond,          
6.25%, 1/25/31 (a)   410    439 
           
Panama  (0.5%)          
Corporate Bond  (0.5%)          
AES Panama Generation Holdings SRL,          
4.38%, 5/31/30 (a)   200    206 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Paraguay  (1.2%)          
Corporate Bond  (0.5%)          
Frigorifico Concepcion SA,          
7.70%, 7/21/28 (a)   200    207 
           
Sovereign  (0.7%)          
Paraguay Government International Bond,          
5.40%, 3/30/50   230    265 
         472 
Peru  (1.7%)          
Corporate Bonds  (1.1%)          
InRetail Consumer,          
3.25%, 3/22/28 (a)   200    201 
Lima Metro Line 2 Finance Ltd.,          
4.35%, 4/5/36 (a)   197    211 
         412 
Sovereign  (0.6%)          
Peru Government Bond,          
5.40%, 8/12/34  PEN259    54 
5.94%, 2/12/29   742    181 
6.15%, 8/12/32   1    —@ 
         235 
         647 
Poland  (2.6%)          
Sovereign  (2.6%)          
Republic of Poland Government Bond,          
3.25%, 7/25/25  PLN1,258    341 
4.00%, 10/25/23   455    122 
5.75%, 10/25/21 – 9/23/22   2,020    532 
         995 
Qatar  (0.8%)          
Sovereign  (0.8%)          
Qatar Government International Bond,          
4.82%, 3/14/49 (a)  $230    296 
           
Romania  (1.3%)          
Sovereign  (1.3%)          
Romania Government Bond,          
4.75%, 2/24/25 – 10/11/34  RON1,590    384 
Romanian Government International Bond,          
1.75%, 7/13/30 (a)  EUR80    91 
         475 
Russia  (5.1%)          
Corporate Bonds  (1.4%)          
Alfa Bank AO Via Alfa Bond Issuance PLC,          
5.95%, 4/15/30  $300    314 
Credit Bank of Moscow Via CBOM Finance PLC,          
7.63%, 4/4/27 (a)(e)(f)   220    219 
         533 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Sovereign  (3.7%)          
Russian Federal Bond - OFZ,          
6.90%, 5/23/29  RUB43,141    584 
7.00%, 8/16/23   21,670    297 
7.70%, 3/23/33   9,485    135 
7.95%, 10/7/26   9,240    131 
Russian Foreign Bond - Eurobond,          
5.63%, 4/4/42  $200    260 
         1,407 
         1,940 
Saudi Arabia  (1.7%)          
Corporate Bond  (0.5%)          
SA Global Sukuk Ltd.,          
2.69%, 6/17/31 (a)   200    202 
           
Sovereign  (1.2%)          
Saudi Government International Bond,          
5.25%, 1/16/50 (a)   340    441 
         643 
Senegal  (1.0%)          
Sovereign  (1.0%)          
Senegal Government International Bond,          
6.25%, 5/23/33 (a)   350    366 
           
South Africa  (3.8%)          
Sovereign  (3.8%)          
Republic of South Africa Government Bond,          
8.00%, 1/31/30  ZAR18,181    1,123 
8.25%, 3/31/32   3,317    197 
8.75%, 1/31/44   820    45 
9.00%, 1/31/40   1,500    85 
         1,450 
Sri Lanka  (0.8%)          
Sovereign  (0.8%)          
Sri Lanka Government International Bond,          
7.55%, 3/28/30  $500    307 
           
Supranational  (0.7%)          
Banque Ouest Africaine de Developpement,          
2.75%, 1/22/33 (a)  EUR200    248 
           
Tanzania, United Republic of  (0.6%)          
Corporate Bond  (0.6%)          
HTA Group Ltd.,          
7.00%, 12/18/25 (a)  $200    211 
           
Thailand  (1.7%)          
Sovereign  (1.7%)          
Thailand Government Bond,          
3.63%, 6/16/23  THB9,000    280 
4.88%, 6/22/29   10,144    368 
         648 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Turkey  (2.6%)          
Corporate Bond  (0.5%)          
Limak Iskenderun Uluslararasi Liman Isletmeciligi,          
9.50%, 7/10/36 (a)  $200    204 
           
Sovereign  (2.1%)          
Hazine Mustesarligi Varlik Kiralama AS,          
5.13%, 6/22/26 (a)   200    198 
Turkey Government Bond,          
8.00%, 3/12/25  TRY1,143    97 
10.50%, 8/11/27   1,236    103 
10.70%, 8/17/22   58    6 
11.00%, 3/2/22   190    21 
Turkey Government International Bond,          
5.88%, 6/26/31  $400    376 
         801 
         1,005 
Ukraine  (1.7%)          
Sovereign  (1.7%)          
NAK Naftogaz Ukraine via Kondor Finance PLC,          
7.13%, 7/19/24  EUR200    235 
Ukraine Government International Bond,          
7.75%, 9/1/26  $380    413 
         648 
United Arab Emirates  (2.3%)          
Corporate Bonds  (1.7%)          
DP World Salaam,          
6.00%, 10/1/25 (e)   200    220 
Galaxy Pipeline Assets Bidco Ltd.,          
2.16%, 3/31/34 (a)   200    197 
3.25%, 9/30/40 (a)   230    232 
         649 
Sovereign  (0.6%)          
Abu Dhabi Government International Bond,          
3.13%, 4/16/30   200    217 
         866 
Uzbekistan  (0.5%)          
Sovereign  (0.5%)          
Republic of Uzbekistan International Bond,          
3.70%, 11/25/30 (a)   200    194 
           
Venezuela  (0.3%)          
Sovereign  (0.3%)          
Petroleos de Venezuela SA,          
6.00%, 11/15/26 (c)(d)   1,582    95 
           
Zambia  (1.3%)          
Sovereign  (1.3%)          
Zambia Government Bond,          
11.00%, 1/25/26  ZMW3,680    162 
13.00%, 1/25/31   5,290    187 
Zambia Government International Bond,          
5.38%, 9/20/22  $200    151 
         500 
Total Fixed Income Securities (Cost $36,837)        35,696 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

   No. of
Warrants		      
Warrant  (0.0%) (g)          
Venezuela  (0.0%) (g)          
Venezuela Government International Bond, Oil-Linked Payment Obligation 0.0%, expires 4/15/20 (h) (Cost $—)   495    1 
           
   Shares      
Short-Term Investments  (5.2%)          
Investment Company  (4.5%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class  (i) (Cost $1,697)   1,696,678    1,697 

 

   Face
Amount
(000)		      
Egypt  (0.6%)          
Sovereign  (0.6%)          
Egypt Treasury Bill,          
12.95%, 9/13/22 (Cost $224)  EGP3,950    225 
U.S. Treasury Security  (0.1%)          
U.S. Treasury Bill,          
0.06%, 7/14/22 (j) (Cost $30)  $30    30 
Total Short-Term Investments (Cost $1,951)        1,952 
Total Investments (99.6%) (Cost $38,788) (k)(l)(m)        37,649 
Other Assets in Excess of Liabilities (0.4%)        148 
Net Assets (100.0%)       $37,797 

 

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.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

(a) 144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.
(b) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of September 30, 2021. Maturity date disclosed is the ultimate maturity date.
(c) Non-income producing security; bond in default.
(d) Issuer in bankruptcy.
(e) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of September 30, 2021.
(f) When-issued security.
(g) Amount is less than 0.05%.
(h) Perpetual maturity date. Date disclosed is the last expiration date.
(i) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.
(j) Rate shown is the yield to maturity at September 30, 2021.
(k) Securities are available for collateral in connection with purchase of when-issued security and open foreign currency forward exchange contracts.
(l) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(m) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,327,000 and the aggregate gross unrealized depreciation is approximately $2,452,000, resulting in net unrealized depreciation of approximately $1,125,000.
   
@ Value is less than $500.
OFZ Obilgatsyi Federal’novo Zaima (Russian Federal Loan Obligation).

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Emerging Markets Fixed Income Opportunities Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Foreign Currency Forward Exchange Contracts:
The Fund had the following foreign currency forward exchange contracts open at September 30, 2021:
 
Counterparty  Contracts
to
Deliver
(000)		   In
Exchange
For
(000)		 Delivery
Date		  Unrealized
Appreciation
(Depreciation)
(000)		 
BNP Paribas SA  $200   CNH1,310   11/22/21  $2 
BNP Paribas SA  $129   EUR110   11/22/21   (2)
BNP Paribas SA  $392   HUF118,000   11/22/21   (12)
BNP Paribas SA  $17   IDR250,000   11/22/21   (—@)
BNP Paribas SA  $49   IDR700,000   11/22/21   —@ 
Citibank NA  HUF60,000   $203   11/22/21   10 
Citibank NA  MXN7,450   $361   11/22/21   3 
Citibank NA  ZAR2,400   $155   11/22/21   (3)
HSBC Bank PLC  $383   CZK8,400   11/22/21   —@ 
HSBC Bank PLC  $31   PLN120   11/22/21   (—@)
JPMorgan Chase Bank NA  EUR1,000   $1,169   11/22/21   10 
State Street Bank and Trust Co.  IDR1,700,000   $117   11/22/21   (2)
UBS AG  HUF58,000   $195   11/22/21   9 
UBS AG  $39   CZK840   11/22/21   (1)
                $14 

 

@ Value is less than $500.
BRL — Brazilian Real
CLP — Chilean Peso
CNH — Chinese Yuan Renminbi Offshore
CNY — Chinese Yuan Renminbi
COP — Colombian Peso
CZK — Czech Koruna
DOP — Dominican Peso
EGP — Egyptian Pound
EUR — Euro
HUF — Hungarian Forint
IDR — Indonesian Rupiah
KZT — Kazakhstan Tenge
MXN — Mexican Peso
MYR — Malaysian Ringgit
PEN — Peruvian Nuevo Sol
PLN — Polish Zloty
RON — Romanian New Leu
RUB — Russian Ruble
THB — Thai Baht
TRY — Turkish Lira
ZAR — South African Rand
ZMW — Zambian kwacha

 

 

 

 

Portfolio Composition
 
Classification  Percentage of
Total Investments		 
Sovereign   65.8%
Corporate Bonds   28.3 
Short-Term Investments   5.2 
Other*   0.7 
Total Investments   100.0%**

 

* 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 $14,000.

 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Emerging Markets Leaders Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (98.1%)          
Argentina  (1.3%)          
Globant SA (a)   14,914   $4,191 
           
Brazil  (4.7%)          
Pagseguro Digital Ltd., Class A (a)   170,923    8,840 
StoneCo Ltd., Class A (a)   173,234    6,015 
         14,855 
China  (20.3%)          
Kingdee International Software Group Co., Ltd. (a)(b)   2,700,000    8,990 
Li Ning Co., Ltd. (b)   1,730,500    19,946 
Meituan, Class B (a)(b)   551,700    17,611 
Proya Cosmetics Co. Ltd., Class A   217,933    5,832 
Tencent Holdings Ltd. (b)   55,700    3,325 
Wuliangye Yibin Co., Ltd., Class A   231,700    7,842 
         63,546 
Germany  (5.3%)          
Delivery Hero SE (a)   99,161    12,649 
Global Fashion Group SA (a)   362,396    4,024 
         16,673 
India  (27.1%)          
Aarti Industries Ltd.   927,273    11,586 
Apollo Hospitals Enterprise Ltd.   215,360    12,960 
AU Small Finance Bank Ltd. (a)   664,745    10,399 
Bajaj Finance Ltd.   201,033    20,686 
Happiest Minds Technologies Ltd.   307,120    5,668 
IIFL Wealth Management Ltd.   110,170    2,319 
Kotak Mahindra Bank Ltd.   381,872    10,277 
PI Industries Ltd.   115,961    4,952 
SRF Ltd.   39,138    5,933 
         84,780 
Singapore  (9.7%)          
Sea Ltd. ADR (a)   95,727    30,511 
           
Taiwan  (12.2%)        
Silergy Corp.   88,000    12,800 
Taiwan Semiconductor Manufacturing Co., Ltd.   710,000    14,684 
Voltronic Power Technology Corp.   173,334    10,570 
         38,054 
United States  (17.5%)          
Advanced Micro Devices, Inc. (a)   98,087    10,093 
MercadoLibre, Inc. (a)   11,176    18,769 
NIKE, Inc., Class B   61,134    8,878 
NVIDIA Corp.   42,707    8,847 
Thoughtworks Holding, Inc. (a)   282,886    8,122 
         54,709 
Total Common Stocks (Cost $233,174)        307,319 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Emerging Markets Leaders Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Short-Term Investment  (3.0%)        
Investment Company  (3.0%)        
Morgan Stanley Institutional Liquidity Funds - Government Portfolio - Institutional Class (c) (Cost $9,481)   9,480,960    9,481 
Total Investments (101.1%) (Cost $242,655) (d)(e)(f)        316,800 
Liabilities in Excess of Other Assets (–1.1%)        (3,597)
Net Assets (100.0%)       $313,203 

 

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.
(c) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $4,000 relating to the Fund's investment in the Liquidity Funds.
(d) The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(e) The approximate fair value and percentage of net assets, $203,053,000 and 64.8%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(f) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $79,784,000 and the aggregate gross unrealized depreciation is approximately $5,639,000, resulting in net unrealized appreciation of approximately $74,145,000.
 
ADR American Depositary Receipt.

 

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Other*   19.4%
Internet & Direct Marketing Retail   16.7 
Semiconductors & Semiconductor Equipment   14.7 
Information Technology Services   10.4 
Entertainment   9.6 
Textiles, Apparel & Luxury Goods   9.1 
Chemicals   7.1 
Consumer Finance   6.5 
Banks   6.5 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Concentrated Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (99.0%)          
China  (9.1%)          
Alibaba Group Holding Ltd. ADR (a)   25,694   $3,804 
Tencent Holdings Ltd. ADR   94,193    5,630 
         9,434 
France  (8.0%)          
LVMH Moet Hennessy Louis Vuitton SE ADR   57,570    8,249 
           
India  (7.8%)        
HDFC Bank Ltd. ADR   111,240    8,130 
           
Italy  (5.7%)          
Ferrari N.V.   28,457    5,951 
           
Taiwan  (5.1%)          
Taiwan Semiconductor Manufacturing Co., Ltd. ADR   47,226    5,273 
           
United States  (63.3%)          
Ameriprise Financial, Inc.   13,163    3,477 
Costco Wholesale Corp.   6,403    2,877 
Danaher Corp.   19,461    5,925 
Domino's Pizza, Inc.   8,823    4,208 
Estee Lauder Cos., Inc. (The), Class A   9,682    2,904 
JPMorgan Chase & Co.   24,195    3,961 
Lululemon Athletica, Inc. (a)   3,883    1,572 
Mastercard, Inc., Class A   10,208    3,549 
Microsoft Corp.   27,942    7,877 
NextEra Energy, Inc.   36,492    2,865 
Planet Fitness, Inc., Class A (a)   26,727    2,099 
STORE Capital Corp. REIT   202,226    6,477 
SVB Financial Group (a)   14,525    9,396 
United Rentals, Inc. (a)   14,852    5,212 
Waste Management, Inc.   21,797    3,256 
         65,655 
Total Common Stocks (Cost $91,273)        102,692 
           
Short-Term Investment  (1.0%)          
Investment Company  (1.0%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class  (b) (Cost $1,043)   1,043,220    1,043 
Total Investments (100.0%) (Cost $92,316)  (c)(d)        103,735 
Liabilities in Excess of Other Assets (–0.0%)  (e)        (13)
Net Assets (100.0%)       $103,722 

 

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.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Concentrated Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

(b) 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 nine months ended September 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.
(c) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(d) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $14,586,000 and the aggregate gross unrealized depreciation is approximately $3,167,000, resulting in net unrealized appreciation of approximately $11,419,000.
(e) Amount is less than 0.05%.
 
ADR American Depositary Receipt.
REIT Real Estate Investment Trust.

 

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Other*   22.9%
Banks   20.7 
Textiles, Apparel & Luxury Goods   9.5 
Software   7.6 
Equity Real Estate Investment Trusts (REITs)   6.3 
Hotels, Restaurants & Leisure   6.1 
Automobiles   5.7 
Health Care Equipment & Supplies   5.7 
Interactive Media & Services   5.4 
Semiconductors & Semiconductor Equipment   5.1 
Trading Companies & Distributors   5.0 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Core Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (98.1%)        
Canada  (1.3%)          
Franco-Nevada Corp.   1,922   $250 
           
China  (8.4%)          
Alibaba Group Holding Ltd. ADR (a)   3,754    556 
NetEase, Inc. ADR   3,188    272 
Tencent Holdings Ltd. ADR   13,441    803 
         1,631 
France  (4.2%)          
LVMH Moet Hennessy Louis Vuitton SE   1,148    822 
           
India  (4.3%)          
HDFC Bank Ltd. ADR   11,405    834 
           
Ireland  (2.7%)          
CRH PLC ADR   6,667    312 
Ryanair Holdings PLC ADR (a)   1,845    203 
         515 
Italy  (3.2%)          
Ferrari N.V.   2,964    620 
           
Japan  (1.4%)          
Nippon Telegraph & Telephone Corp. ADR   10,066    279 
           
Singapore  (2.5%)          
Sea Ltd. ADR (a)   1,492    475 
           
Taiwan  (4.1%)          
Taiwan Semiconductor Manufacturing Co., Ltd. ADR   7,029    785 
           
United Kingdom  (5.9%)          
Diageo PLC ADR   3,142    606 
Experian PLC ADR   8,308    348 
London Stock Exchange Group PLC   1,875    188 
         1,142 
United States  (60.1%)          
Ameriprise Financial, Inc.   2,059    544 
Apple, Inc.   9,253    1,309 
Chevron Corp.   7,564    767 
Danaher Corp.   2,709    825 
Estee Lauder Cos., Inc. (The), Class A   1,681    504 
Euronet Worldwide, Inc. (a)   749    95 
First Republic Bank   3,400    656 
Fortune Brands Home & Security, Inc.   2,071    185 
JPMorgan Chase & Co.   3,606    590 
Lululemon Athletica, Inc. (a)   1,409    570 
Mastercard, Inc., Class A   1,837    639 
Match Group, Inc. (a)   449    71 
McDonald's Corp.   1,768    426 
MGM Resorts International   9,384    405 
Microsoft Corp.   4,259    1,201 
NextEra Energy, Inc.   5,748    451 
Planet Fitness, Inc., Class A (a)   634    50 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Core Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Progressive Corp. (The)   557    50 
STORE Capital Corp. REIT   19,126    613 
SVB Financial Group (a)   1,310    847 
Target Corp.   1,516    347 
United Rentals, Inc. (a)   837    294 
Valero Energy Corp.   651    46 
Veeva Systems, Inc., Class A (a)   498    144 
         11,629 
Total Common Stocks (Cost $13,599)        18,982 
           
Short-Term Investment  (1.7%)          
Investment Company  (1.7%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class  (b) (Cost $330)   329,986    330 
Total Investments (99.8%) (Cost $13,929)  (c)(d)(e)        19,312 
Other Assets in Excess of Liabilities (0.2%)        44 
Net Assets (100.0%)       $19,356 

 

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) 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 nine months ended September 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund’s investment in the Liquidity Funds.
(c) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(d) The approximate fair value and percentage of net assets, $1,010,000 and 5.2%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(e) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $5,513,000 and the aggregate gross unrealized depreciation is approximately $130,000, resulting in net unrealized appreciation of approximately $5,383,000.
 
ADR American Depositary Receipt.
REIT Real Estate Investment Trust.

 

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Other*   64.6%
Banks   15.2 
Textiles, Apparel & Luxury Goods   7.2 
Tech Hardware, Storage & Peripherals   6.8 
Software   6.2 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Endurance Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (99.6%)          
Canada  (7.4%)          
Colliers International Group, Inc.   25,504   $3,265 
Constellation Software, Inc.   868    1,422 
Shopify, Inc., Class A (a)   1,136    1,540 
         6,227 
Finland  (1.0%)          
Revenio Group Oyj   12,545    796 
           
Netherlands  (1.2%)          
Basic-Fit N.V. (a)   22,018    1,010 
           
Poland  (2.6%)          
Dino Polska SA (a)   26,148    2,181 
           
Sweden  (3.1%)          
AddLife AB, Class B   71,320    2,608 
           
United Kingdom  (10.5%)          
Angle PLC (a)   220,231    399 
Babcock International Group PLC (a)   835,893    4,167 
Victoria PLC (a)   342,041    4,253 
         8,819 
United States  (73.8%)          
Affirm Holdings, Inc. (a)   35,523    4,232 
Alteryx, Inc., Class A (a)   12,074    883 
Appian Corp. (a)   34,332    3,176 
AppLovin Corp., Class A (a)   15,904    1,151 
Beachbody Co., Inc. (The) (a)   73,141    405 
Cardlytics, Inc. (a)   36,688    3,080 
Carvana Co. (a)   5,514    1,663 
Cazoo Group Ltd. (a)   163,915    1,274 
Cazoo Group Ltd. (a)(b)   30,318    225 
Cricut, Inc., Class A (a)   334,418    9,223 
Fastly, Inc., Class A (a)   145,039    5,865 
Floor & Decor Holdings, Inc., Class A (a)   29,695    3,587 
Ginkgo Bioworks, Inc. (a)(b)   103,832    1,143 
GoodRx Holdings, Inc., Class A (a)   106,299    4,360 
JFrog Ltd. (a)   63,108    2,114 
Latch, Inc. (a)   73,837    832 
Party City Holdco, Inc. (a)   319,973    2,272 
PLx Pharma, Inc. (a)   55,141    1,064 
Royalty Pharma PLC, Class A   45,689    1,651 
salesforce.com, Inc. (a)   14,669    3,979 
Skillz, Inc. (a)   213,362    2,095 
Spotify Technology SA (a)   6,474    1,459 
Stitch Fix, Inc., Class A (a)   71,043    2,838 
Vimeo, Inc. (a)   21,489    631 
Wayfair, Inc., Class A (a)   4,204    1,074 
Zillow Group, Inc., Class A (a)   17,261    1,529 
         61,805 
Total Common Stocks (Cost $84,275)        83,446 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Endurance Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Short-Term Investment  (1.8%)          
Investment Company  (1.8%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (c) (Cost $1,473)   1,473,276    1,473 
Total Investments (101.4%) (Cost $85,748)  (d)(e)(f)           84,919 
Liabilities in Excess of Other Assets (–1.4%)           (1,137)
Net Assets (100.0%)          $83,782 

 

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 cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules (“restricted security”). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Fund has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer The aggregate value of restricted securities (excluding 144A holdings) at September 30, 2021 amounts to approximately $1,368,000 and represents 1.6% of net assets.
(c) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund’s investment in the Liquidity Funds.
(d) The Fund is permitted to purchase and sell securities (“cross-trade”) from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(e) The approximate fair value and percentage of net assets, $15,414,000 and 18.4%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(f) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $8,630,000 and the aggregate gross unrealized depreciation is approximately $9,459,000, resulting in net unrealized depreciation of approximately $829,000.

 

 

 

 

Portfolio Composition  

 

Classification  Percentage of
Total Investments		 
Other*   34.1%
Software   16.0 
Household Durables   15.9 
Information Technology Services   13.7 
Specialty Retail   8.8 
Internet & Direct Marketing Retail   6.4 
Health Care Technology   5.1 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Focus Real Estate Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (98.4%)          
Australia  (4.8%)          
Charter Hall Group REIT   6,388   $77 
Goodman Group REIT   3,004    46 
Mirvac Group REIT   24,052    51 
National Storage REIT   31,880    53 
         227 
Belgium  (0.9%)          
Aedifica SA REIT   350    44 
           
Canada  (2.0%)          
Tricon Residential, Inc.   7,173    96 
           
China  (1.0%)          
GDS Holdings Ltd. ADR (a)   847    48 
           
France  (1.6%)          
ICADE REIT   546    42 
Mercialys SA REIT   2,990    32 
         74 
Germany  (2.7%)          
Alstria Office AG REIT   3,506    64 
LEG Immobilien SE   459    65 
         129 
Hong Kong  (2.8%)          
ESR Cayman Ltd. (a)   21,600    65 
Wharf Real Estate Investment Co., Ltd.   13,000    67 
         132 
Japan  (8.2%)          
Activia Properties, Inc. REIT   11    45 
Mitsubishi Estate Logistics Investment Corp. REIT   16    70 
Mitsui Fudosan Co., Ltd.   6,400    152 
Nippon Building Fund, Inc. REIT   12    78 
Nippon Prologis, Inc. REIT   15    50 
         395 
Singapore  (3.0%)          
Keppel DC REIT   25,700    47 
Mapletree Industrial Trust REIT   22,700    46 
Parkway Life REIT   14,300    49 
         142 
Spain  (1.0%)          
Merlin Properties Socimi SA REIT   4,466    46 
           
Sweden  (2.2%)          
Catena AB   773    42 
Hufvudstaden AB, Class A   4,113    61 
         103 
United Kingdom  (5.5%)          
Grainger PLC   11,847    49 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Focus Real Estate Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Hammerson PLC REIT   93,357    40 
Helical PLC   15,651    93 
LondonMetric Property PLC REIT   14,518    47 
Tritax Big Box PLC REIT   12,348    35 
         264 
United States  (62.7%)          
American Tower Corp. REIT   1,076    286 
Boyd Gaming Corp. (a)   1,236    78 
Caesars Entertainment, Inc. (a)   274    31 
Empire State Realty Trust, Inc., Class A REIT   5,129    51 
Equinix, Inc. REIT   244    193 
Equity Residential REIT   1,767    143 
Extra Space Storage, Inc. REIT   1,275    214 
Healthcare Trust of America, Inc., Class A REIT   1,620    48 
Healthpeak Properties, Inc. REIT   3,502    117 
Kite Realty Group Trust REIT   3,701    75 
Life Storage, Inc. REIT   1,245    143 
NETSTREIT Corp. REIT   2,930    69 
Outfront Media, Inc. REIT   2,369    60 
Prologis, Inc. REIT   2,271    285 
Realty Income Corp. REIT   2,257    146 
RPT Realty REIT   7,868    100 
SBA Communications Corp. REIT   719    238 
SITE Centers Corp. REIT   5,421    84 
Sun Communities, Inc. REIT   758    140 
UDR, Inc. REIT   3,583    190 
Urban Edge Properties REIT   5,519    101 
Welltower, Inc. REIT   2,446    202 
         2,994 
Total Common Stocks (Cost $4,915)        4,694 
           
Short-Term Investment  (0.9%)          
Investment Company  (0.9%)          
Morgan Stanley Institutional Liquidity Funds -  Treasury Portfolio - Institutional Class (Cost $42)   42,243    42 
Total Investments (99.3%) (Cost $4,957)  (b)(c)(d)        4,736 
Other Assets in Excess of Liabilities (0.7%)        35 
Net Assets (100.0%)       $4,771 

 

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) The approximate fair value and percentage of net assets, $1,556,000 and 32.6%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(c) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
           

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Focus Real Estate Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

(d) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $23,000 and the aggregate gross unrealized depreciation is approximately $244,000, resulting in net unrealized depreciation of approximately $221,000.
 
ADR American Depositary Receipt.
REIT Real Estate Investment Trust.

  

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Diversified   25.8%
Residential   14.4 
Retail   13.7 
Industrial   12.5 
Health Care   9.7 
Self Storage   8.7 
Office   6.0 
Specialty   5.0 
Other*   4.2 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Franchise Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (98.9%)          
France  (6.0%)          
L'Oreal SA (BSRM)   133,452   $55,223 
LVMH Moet Hennessy Louis Vuitton SE   76,971    55,131 
Pernod Ricard SA   412,966    91,044 
         201,398 
Germany  (4.6%)          
SAP SE   1,139,894    154,147 
           
Italy  (0.6%)          
Davide Campari-Milano N.V.   1,478,409    20,767 
           
Netherlands  (2.1%)          
Heineken N.V.   674,985    70,451 
           
United Kingdom  (12.3%)          
British American Tobacco PLC   2,044,398    71,461 
Experian PLC   889,754    37,272 
Reckitt Benckiser Group PLC   2,846,658    223,634 
RELX PLC (Euronext N.V.)   612,952    17,743 
RELX PLC (LSE)   2,351,871    67,702 
         417,812 
United States  (73.3%)          
Abbott Laboratories   1,250,052    147,669 
Accenture PLC, Class A   514,434    164,578 
Automatic Data Processing, Inc.   643,651    128,679 
Baxter International, Inc.   1,801,753    144,915 
Becton Dickinson & Co.   568,812    139,825 
Broadridge Financial Solutions, Inc.   43,489    7,247 
Coca-Cola Co. (The)   1,113,898    58,446 
Danaher Corp.   536,836    163,434 
Estee Lauder Cos., Inc. (The), Class A   122,422    36,718 
Factset Research Systems, Inc.   42,884    16,930 
Fidelity National Information Services, Inc.   577,632    70,286 
Intercontinental Exchange, Inc.   922,984    105,977 
Microsoft Corp.   1,144,805    322,743 
Moody's Corp.   115,295    40,942 
NIKE, Inc., Class B   259,578    37,699 
Philip Morris International, Inc.   3,006,356    284,972 
Procter & Gamble Co. (The)   1,103,957    154,333 
Roper Technologies, Inc.   158,733    70,816 
Thermo Fisher Scientific, Inc.   275,637    157,480 
Visa, Inc., Class A   802,809    178,826 
Zoetis, Inc.   245,651    47,691 
         2,480,206 
Total Common Stocks (Cost $2,366,129)        3,344,781 
           
Short-Term Investment  (2.4%)          
Investment Company  (2.4%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (a) (Cost $81,702)   81,701,816    81,702 
Total Investments (101.3%) (Cost $2,447,831) (b)(c)(d)           3,426,483 
Liabilities in Excess of Other Assets (–1.3%)   (44,908)
Net Assets (100.0%)  $3,381,575 

 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Franchise Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited) (cont’d)

 

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) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $21,000 relating to the Fund's investment in the Liquidity Funds.
(b) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(c) The approximate fair value and percentage of net assets, $864,575,000 and 25.6%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(d) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $999,874,000 and the aggregate gross unrealized depreciation is approximately $21,222,000, resulting in net unrealized appreciation of approximately $978,652,000.
 
BSRM   Berlin Second Regulated Market.
Euronext N.V.    Euronext Amsterdam Stock Market.
LSE   London Stock Exchange.

 

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Other*   24.2%
Health Care Equipment & Supplies   17.4 
Information Technology Services   16.1 
Software   13.9 
Household Products   11.0 
Tobacco   10.4 
Beverages   7.0 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Infrastructure Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (96.7%)          
Australia  (4.7%)          
Atlas Arteria Ltd. (Units) (a)   671,466   $3,096 
Sydney Airport (Units) (a)(b)   426,141    2,503 
Transurban Group (Units) (a)   791,910    7,981 
Transurban Group   84,547    852 
         14,432 
Canada  (11.5%)          
Enbridge, Inc.   262,807    10,470 
GFL Environmental, Inc.   60,986    2,266 
Gibson Energy, Inc.   548,430    10,071 
Pembina Pipeline Corp.   136,541    4,328 
TC Energy Corp.   175,605    8,452 
         35,587 
China  (7.3%)          
China Gas Holdings Ltd. (c)   4,073,200    12,030 
GDS Holdings Ltd. ADR (b)   66,175    3,746 
Jiangsu Expressway Co., Ltd. H Shares (c)   1,992,000    2,013 
Zhejiang Expressway Co., Ltd., Class H (c)   6,004,000    4,955 
         22,744 
Denmark  (1.2%)          
Orsted A/S   28,378    3,741 
           
France  (5.4%)          
Getlink SE   184,677    2,885 
Vinci SA   132,059    13,735 
         16,620 
Germany  (1.0%)          
Vantage Towers AG   91,924    3,104 
           
Hong Kong  (1.0%)          
Power Assets Holdings Ltd.   546,500    3,204 
           
Italy  (3.7%)          
Atlantia SpA (b)   112,115    2,115 
Infrastrutture Wireless Italiane SpA   446,479    4,973 
Terna SpA   624,916    4,435 
         11,523 
Japan  (2.0%)          
Central Japan Railway Co.   13,600    2,171 
East Japan Railway Co.   57,900    4,092 
         6,263 
Mexico  (2.9%)          
Grupo Aeroportuario del Pacifico SAB de CV, Class B   387,683    4,508 
Grupo Aeroportuario del Sureste SAB de CV, Class B   236,257    4,407 
         8,915 
New Zealand  (0.6%)          
Auckland International Airport Ltd. (b)   346,432    1,862 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Infrastructure Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Portugal  (1.3%)          
EDP Renovaveis SA   162,296    4,029 
           
Spain  (5.5%)          
Aena SME SA (b)   18,782    3,240 
Cellnex Telecom SA   96,441    5,949 
Ferrovial SA   152,423    4,449 
Iberdrola SA   348,607    3,507 
         17,145 
Switzerland  (1.1%)          
Flughafen Zurich AG (Registered) (b)   19,372    3,451 
           
United Kingdom  (5.4%)          
National Grid PLC   923,526    11,005 
Pennon Group PLC   169,992    2,591 
Severn Trent PLC   88,581    3,101 
         16,697 
United States  (42.1%)          
Ameren Corp.   54,090    4,381 
American Electric Power Co., Inc.   97,748    7,935 
American Tower Corp. REIT   86,699    23,011 
American Water Works Co., Inc.   45,649    7,717 
Atmos Energy Corp.   40,998    3,616 
Avangrid, Inc. (d)   55,402    2,693 
CenterPoint Energy, Inc.   30,756    757 
Cheniere Energy, Inc. (b)   86,355    8,434 
Crown Castle International Corp. REIT   91,865    15,922 
Edison International   96,152    5,334 
Eversource Energy   69,402    5,674 
NextEra Energy, Inc.   66,010    5,183 
ONEOK, Inc.   109,797    6,367 
Republic Services, Inc.   38,551    4,628 
SBA Communications Corp. REIT   28,181    9,316 
Sempra Energy   66,176    8,371 
Targa Resources Corp.   94,987    4,674 
Williams Cos., Inc. (The)   249,770    6,479 
         130,492 
Total Common Stocks (Cost $235,455)        299,809 
           
Short-Term Investment  (2.9%)          
Investment Company  (2.9%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class (e) (Cost $9,062)   9,061,516    9,062 
Total Investments (99.6%) (Cost $244,517) Including $2,693 of Securities Loaned (f)(g)(h)        308,871 
Other Assets in Excess of Liabilities (0.4%)        1,132 
Net Assets (100.0%)       $310,003 

 

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) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.
(b) Non-income producing security.
(c) Security trades on the Hong Kong exchange.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Infrastructure Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

(d) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2021, were approximately $2,693,000 and $2,798,000, respectively. The Fund received non-cash collateral of approximately $2,798,000 in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge and accordingly are not reflected in the Portfolio of Investments. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(e) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $3,000 relating to the Fund's investment in the Liquidity Funds.
(f) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(g) The approximate fair value and percentage of net assets, $120,217,000 and 38.8%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(h) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $69,594,000 and the aggregate gross unrealized depreciation is approximately $5,240,000, resulting in net unrealized appreciation of approximately $64,354,000.
 
ADR American Depositary Receipt.
REIT Real Estate Investment Trust.

 

 

 

 

Portfolio Composition
 
Classification  Percentage of
Total Investments		 
Oil & Gas Storage & Transportation   27.0%
Communications   21.4 
Electricity Transmission & Distribution   15.8 
Other*   15.7 
Toll Roads   7.5 
Airports   6.5 
Diversified   6.1 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Insight Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (96.3%)          
Australia  (1.6%)          
Redbubble Ltd. (a)   809,140   $2,525 
Xero Ltd. (a)   41,045    4,028 
         6,553 
Canada  (6.5%)          
Shopify, Inc., Class A (a)   19,361    26,249 
           
Germany  (0.0%) (b)          
Zalando SE (a)   933    85 
           
Israel  (1.0%)          
IronSource Ltd., Class A (a)   369,238    4,014 
           
Japan  (1.1%)          
BASE, Inc. (a)   185,200    1,802 
Demae-Can Co., Ltd. (a)   170,500    2,562 
         4,364 
Netherlands  (5.9%)          
Adyen N.V. (a)   8,573    23,965 
           
Singapore  (6.7%)          
Sea Ltd. ADR (a)   85,330    27,197 
           
Sweden  (3.6%)          
Evolution AB   39,273    5,947 
Kinnevik AB, Class B (a)   248,693    8,743 
         14,690 
United Kingdom  (1.6%)          
Deliveroo PLC (a)   1,641,377    6,351 
           
United States  (68.3%)          
10X Genomics, Inc., Class A (a)   23,782    3,462 
Agilon health, Inc. (a)   151,538    3,972 
Altimeter Growth Corp., Class A SPAC (a)(c)   1,259,389    12,871 
Bill.Com Holdings, Inc. (a)   40,087    10,701 
Cazoo Group Ltd. (a)(d)   769,896    5,713 
Cloudflare, Inc., Class A (a)   128,915    14,522 
Coupang, Inc. (a)   628,811    17,513 
Datadog, Inc., Class A (a)   30,394    4,296 
Farfetch Ltd., Class A (a)   270,919    10,154 
Guardant Health, Inc. (a)   34,070    4,259 
Intellia Therapeutics, Inc. (a)   13,681    1,835 
Meli Kaszek Pioneer Corp.   163,039    1,802 
MercadoLibre, Inc. (a)   13,393    22,492 
Moderna, Inc. (a)   10,967    4,221 
Pinterest, Inc., Class A (a)   94,230    4,801 
ROBLOX Corp., Class A (a)   140,878    10,643 
Royal Gold, Inc.   9,993    954 
Royalty Pharma PLC, Class A   388,325    14,034 
Snap, Inc., Class A (a)   242,088    17,883 
Snowflake, Inc., Class A (a)   58,520    17,698 
Spotify Technology SA (a)   29,316    6,606 
Square, Inc., Class A (a)   68,199    16,357 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Insight Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Trade Desk, Inc. (The), Class A (a)   87,927    6,181 
Twilio, Inc., Class A (a)   30,251    9,652 
Twitter, Inc. (a)   251,318    15,177 
Unity Software, Inc. (a)   54,385    6,866 
Veeva Systems, Inc., Class A (a)   21,770    6,274 
Wayfair, Inc., Class A (a)   23,505    6,006 
Zillow Group, Inc., Class C (a)   58,139    5,124 
Zoom Video Communications, Inc., Class A (a)   40,863    10,686 
ZoomInfo Technologies, Inc., Class A (a)   64,720    3,960 
         276,715 
Total Common Stocks (Cost $353,210)        390,183 
           
Preferred Stock (0.0%) (b)          
United States (0.0%) (b)          
Lookout, Inc. Series F (a)(d)(e)          
(acquisition cost — $73; acquired 6/17/14) (Cost $73)   6,374    29 
           
Investment Company  (0.7%)          
Grayscale Bitcoin Trust (a) (Cost $3,702)   83,680    2,833 
           
Short-Term Investments  (6.0%)          
Securities held as Collateral on Loaned Securities  (2.0%)          
Investment Company (1.6%)          
Morgan Stanley Institutional Liquidity Funds -  Treasury Securities Portfolio - Institutional Class (f)   6,453,218    6,453 

 

   Face
Amount
(000)		     
Repurchase Agreements  (0.4%)        
HSBC Securities USA, Inc. (0.05%, dated 9/30/21, due 10/1/21; proceeds $337; fully collateralized by U.S. Government obligations; 0.00%-0.13% due 10/7/21-12/31/22; valued at $344)  $337    337 
Merrill Lynch & Co., Inc. (0.05%, dated 9/30/21, due 10/1/21; proceeds $1,147; fully collateralized by a U.S. Government obligation; 0.38% due 4/15/24; valued at $1,170)   1,147    1,147 
         1,484 

Total Securities held as Collateral on Loaned Securities (Cost $7,937)

        7,937 

 

   Shares     
Investment Company  (4.0%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (f) (Cost $16,096)   16,095,855    16,096 
Total Short-Term Investments (Cost $24,033)        24,033 
Total Investments Excluding Purchased Options (103.0%) (Cost $381,018)        417,078 
Total Purchased Options Outstanding (0.1%) (Cost $2,098)        451 
Total Investments (103.1%) (Cost $383,116) Including $7,858 of Securities Loaned (g)(h)(i)(j)        417,529 
Liabilities in Excess of Other Assets (–3.1%)        (12,636)
Net Assets (100.0%)       $404,893 

 

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.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Insight Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

The Fund had the following Derivative Contracts - PIPE open at September 30, 2021:

 

Counterparty

 

Referenced

Obligation

 

Notional

Amount

  

Settlement

Date

 

Unrealized

Depreciation

(000)

  

% of

Net Assets

 
Altimeter Growth Corp.  Grab Holdings Inc. (a)(d)(e)(k)(m)  $3,588,450   12/31/21  $(288)   (0.07)%
Athena Technology Acquisition Corp.  Heliogen, Inc. (a)(d)(e)(l)(m)   2,023,470   12/31/21   (236)   (0.06)
              $(524)   (0.13)%

 

(a) Non-income producing security.
(b) Value is less than 0.05%.
(c) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2021, were approximately $7,858,000 and $8,074,000, respectively. The Fund received cash collateral of approximately $7,977,000, of which approximately $7,937,000 was subsequently invested in a Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class as reported in the Consolidated Portfolio of Investments.  At September 30, 2021, there was uninvested cash collateral of approximately $40,000, which is not reflected in the Consolidated Portfolio of Investments.  The remaining collateral of approximately $97,000 was received in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge and accordingly are not reflected in the Consolidated Portfolio of Investments. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(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 September 30, 2021 amounts to  approximately $5,218,000 and represents 1.3% of net assets.
(e) At September 30, 2021, the Fund held a fair valued security and derivative contracts at approximately $(495,000), representing (0.1)% 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 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $9,000 relating to the Fund's investment in the Liquidity Funds.
(g) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(h) The approximate fair value and percentage of net assets, $55,923,000 and 13.8%, 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.
(i) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $85,791,000 and the aggregate gross unrealized depreciation is approximately $51,902,000, resulting in net unrealized appreciation of approximately $33,889,000.
(j) Securities are available for collateral in connection with securities purchased on a forward commitment basis.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Insight Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

(k)

Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 358,845 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., 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 Altimeter Growth Corp., and Grab Holdings Inc., 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 Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.

(l)

Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 202,347 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Heliogen, Inc., and Athena Technology Acquisition Corp., 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 Athena Technology Acquisition Corp., and Heliogen, Inc., 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 Athena Technology Acquisition Corp., and Heliogen, Inc. The investment is restricted from resale until the settlement date.

(m)

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.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Insight Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:
The Fund had the following call options purchased open at September 30, 2021:  

 

Counterparty  Description  Strike
Price		  Expiration
Date		  Number of
Contracts		   Notional Amount
(000)		   Value
(000)		   Premiums
Paid
(000)		   Unrealized
Depreciation
(000)		 
BNP Paribas  USD/CNH  CNH 7.45  Jan-22   83,130,387    83,130   $7   $443   $(436)
BNP Paribas  USD/CNH  CNH 7.64  Nov-21   64,087,776    64,088    —@    348    (348)
Goldman Sachs International  USD/CNH  CNH 7.57  Mar-22   85,529,485    85,529    33    425    (392)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.28  Jul-22   94,669,594    94,670    240    441    (201)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.31  Aug-22   43,502,787    43,503    112    295    (183)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.38  Jul-22   27,456,366    27,456    59    146    (87)
                        $451   $2,098   $(1,647)

 

@ Value is less than $500.
CNH — Chinese Yuan Renminbi Offshore
USD — United States Dollar

 

 

 

 

Portfolio Composition*  

 

Classification  Percentage of
Total Investments		 
Information Technology Services   26.9%
Other**   17.8 
Internet & Direct Marketing Retail   16.5 
Interactive Media & Services   11.5 
Software   11.4 
Entertainment   10.9 
Diversified Holding Companies   5.0 
Total Investments   100.0%***

 

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2021.
** Industries and/or investment types representing less than 5% of total investments.
*** Does not include open PIPE contracts with total unrealized depreciation of approximately $524,000.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Opportunity Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (94.9%)          
Argentina  (0.5%)          
Globant SA (a)   134,230   $37,720 
           
Canada  (4.4%)          
Shopify, Inc., Class A (a)   239,765    325,069 
           
China  (5.9%)          
Foshan Haitian Flavouring & Food Co., Ltd., Class A   3,431,019    58,178 
Meituan, Class B (a)(b)   7,122,000    227,345 
Tencent Holdings Ltd. (b)   866,100    51,705 
Trip.com Group Ltd. ADR (a)   3,432,286    105,543 
         442,771 
Denmark  (5.6%)          
DSV Panalpina A/S   1,739,654    416,410 
           
France  (3.1%)          
Hermes International   165,308    228,081 
           
India  (6.5%)          
HDFC Bank Ltd.   16,764,505    358,396 
ICICI Bank Ltd. ADR   6,687,024    126,184 
         484,580 
Italy  (2.5%)          
Moncler SpA   3,058,946    186,567 
           
Japan  (2.0%)          
Keyence Corp.   252,300    150,590 
           
Korea, Republic of  (1.2%)          
NAVER Corp.   288,375    93,568 
           
United Kingdom  (0.5%)          
Fevertree Drinks PLC   1,133,685    35,568 
           
United States  (62.7%)          
Adobe, Inc. (a)   473,773    272,761 
Affirm Holdings, Inc. (a)   182,988    21,799 
Agilon Health Topco, Inc (a)(c)   3,008,300    77,271 
Amazon.com, Inc. (a)   151,679    498,272 
Coupang, Inc. (a)   6,550,224    182,424 
DoorDash, Inc., Class A (a)   492,002    101,342 
Endeavor Group Holdings, Inc., Class A (a)   1,337,948    38,359 
EPAM Systems, Inc. (a)   502,881    286,883 
Facebook, Inc., Class A (a)   801,028    271,861 
Farfetch Ltd., Class A (a)   2,075,330    77,783 
Intuitive Surgical, Inc. (a)   121,049    120,341 
Martin Marietta Materials, Inc.   104,322    35,645 
Mastercard, Inc., Class A   1,437,095    499,649 
salesforce.com, Inc. (a)   797,222    216,222 
ServiceNow, Inc. (a)   678,067    421,941 
Snowflake, Inc., Class A (a)   142,683    43,152 
Spotify Technology SA (a)   774,851    174,605 
Square, Inc., Class A (a)   935,919    224,471 
Uber Technologies, Inc. (a)   8,626,515    386,468 
Visa, Inc., Class A   1,461,433    325,534 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Opportunity Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Walt Disney Co. (The) (a)   1,771,849    299,744 
Zillow Group, Inc., Class A (a)   448,160    39,698 
Zoom Video Communications, Inc., Class A (a)   229,508    60,016 
         4,676,241 
Total Common Stocks (Cost $3,747,080)        7,077,165 
           
Investment Company  (0.7%)          
United States (0.7%)          
Grayscale Bitcoin Trust (a) (Cost $64,321)   1,463,714    49,547 
           
Preferred Stock  (0.0%)          
United States  (0.0%)          
Magic Leap Series C (a)(d)(e)
(acquisition cost — $3,175; acquired 12/22/15) (Cost $3,175)		   137,829    — 
           
Short-Term Investment  (2.6%)          
Investment Company  (2.6%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class  (f) (Cost $194,674)   194,674,199    194,674 
Total Investments Excluding Purchased Options (98.2%) (Cost $4,009,250)        7,321,386 
Total Purchased Options Outstanding (0.1%) (Cost $7,715)        2,994 
Total Investments (98.3%) (Cost $4,016,965)  (g)(h)(i)(j)        7,324,380 
Other Assets in Excess of Liabilities (1.7%)           130,301 
Net Assets (100.0%)          $7,454,681 

 

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.

 

The Fund had the following Derivative Contract - PIPE open at September 30, 2021:

 

Counterparty

 

Referenced

Obligation

 

Notional

Amount

  

Settlement

Date

 

Unrealized

Depreciation

(000)

  

% of

Net Assets

 
Altimeter Growth Corp.  Grab Holdings Inc. (a)(d)(e)(k)(l)  $60,291,290   12/31/21  $(4,835)   (0.1)%

 

(a) Non-income producing security.
(b) Security trades on the Hong Kong exchange.
(c) Security has been deemed by the investment manager to be illiquid and is subject to restrictions on resale. At September 30, 2021, this security amounted to approximately $77,271,000, which represents 1.0% of net assets of the Fund.
(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 contract (excluding 144A holdings) at September 30, 2021 amounts to  approximately $(4,835,000) and represents (0.1)% of net assets.
(e) At September 30, 2021, the Fund held a fair valued security and derivative contract valued at approximately $(4,835,000) representing (0.1)% 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.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Opportunity Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

(f) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $123,000 relating to the Fund's investment in the Liquidity Funds.
(g) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(h) The approximate fair value and percentage of net assets, $1,806,408,000 and 24.2%, 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.
(i) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $3,393,977,000 and the aggregate gross unrealized depreciation is approximately $91,397,000, resulting in net unrealized appreciation of approximately $3,302,580,000.
(j) Securities are available for collateral in connection with securities purchased on a forward commitment basis.
(k)

Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 6,029,129 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., 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 Altimeter Growth Corp., and Grab Holdings Inc., 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 Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.

(l) 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.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Opportunity Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:
The Fund had the following call options purchased open at September 30, 2021:  

 

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  CNH7.31   Aug-22   756,739,436    756,739   $1,953   $5,140   $ (3,187 )
JP Morgan Chase Bank NA   USD/CNH  CNH7.38   Jul-22   485,510,983    485,511    1,041    2,575   (1,534 )
                         $2,994   $7,715   $ (4,721 )

 

CNH     — Chinese Yuan Renminbi Offshore

USD     — United States Dollar

 

 

 

 

Portfolio Composition
Classification  Percentage of
Total Investments		 
Information Technology Services   24.1%
Internet & Direct Marketing Retail   14.8 
Software   13.3 
Other*   11.3 
Entertainment   7.0 
Banks   6.6 
Interactive Media & Services   6.2 
Air Freight & Logistics   5.7 
Textiles, Apparel & Luxury Goods   5.7 
Road & Rail   5.3 
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 $4,835,000.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Permanence Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (95.3%)          
Brazil  (0.8%)          
Vale SA   2,112   $30 
           
Canada  (17.6%)          
Canadian National Railway Co.   1,189    137 
Colliers International Group, Inc.   727    93 
Constellation Software, Inc.   120    197 
FirstService Corp.   501    91 
Topicus.com, Inc. (a)   1,427    150 
         668 
Denmark  (0.7%)          
Chr Hansen Holding A/S   349    28 
           
France  (13.9%)          
Christian Dior SE   173    124 
EssilorLuxottica SA   295    56 
Hermes International   91    126 
L'Oreal SA (BSRM)   306    127 
Remy Cointreau SA   494    96 
         529 
India  (3.6%)          
HDFC Bank Ltd. ADR   1,868    137 
           
Italy  (1.3%)          
Brunello Cucinelli SpA (a)   917    50 
           
Japan  (1.3%)          
Nintendo Co., Ltd.   100    48 
           
Mexico  (1.0%)          
Grupo Aeroportuario del Sureste SAB de CV, Class B   1,950    36 
           
Netherlands  (8.1%)          
ASML Holding N.V. (Registered)   412    307 
           
Spain  (0.9%)          
Aena SME SA (a)   209    36 
           
United Kingdom  (3.7%)          
Rentokil Initial PLC   13,083    103 
Victoria PLC (a)   3,138    39 
         142 
United States  (42.4%)          
Amazon.com, Inc. (a)   40    131 
American Tower Corp. REIT   135    36 
Axon Enterprise, Inc. (a)   985    172 
Costco Wholesale Corp.   214    96 
Danaher Corp.   305    93 
Domino's Pizza, Inc.   77    37 
HEICO Corp., Class A   944    112 
Intercontinental Exchange, Inc.   308    35 
Intuitive Surgical, Inc. (a)   55    55 
Linde PLC   115    34 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Permanence Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Progressive Corp. (The)   627    57 
Royal Gold, Inc.   307    29 
Royalty Pharma PLC, Class A   4,906    177 
S&P Global, Inc.   230    98 
salesforce.com, Inc. (a)   347    94 
Texas Pacific Land Corp.   31    37 
Tyler Technologies, Inc. (a)   78    36 
Veeva Systems, Inc., Class A (a)   319    92 
Walt Disney Co. (The) (a)   531    90 
Waste Connections, Inc.   779    98 
         1,609 
Total Common Stocks (Cost $2,887)        3,620 
           
Investment Companies  (1.5%)          
United Kingdom (0.9%)          
Hipgnosis Songs Fund Ltd.   20,696    34 
           
United States (0.6%)          
Grayscale Bitcoin Trust (a)   687    23 
Total Investment Companies (Cost $66)        57 
           
Short-Term Investment  (1.7%)          
Investment Company  (1.7%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (b) (Cost $66)   66,461    66 
Total Investments Excluding Purchased Options (98.5%) (Cost $3,019)        3,743 
Total Purchased Options Outstanding (0.1%) (Cost $17)        4 
Total Investments (98.6%) (Cost $3,036) (c)(d)(e)        3,747 
Other Assets in Excess of Liabilities (1.4%)        52 
Net Assets (100.0%)       $3,799 

 

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) 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 nine months ended September 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund investment in the Liquidity Funds.
(c) The approximate fair value and percentage of net assets, $867,000 and 22.8%, 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.
(d) The fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the 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 nine months ended September 30, 2021, the fund did not engage in any cross-trade transactions.
(e) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $812,000 and the aggregate gross unrealized depreciation is approximately $101,000, resulting in net unrealized appreciation of approximately $711,000.
   
ADR American Depositary Receipt.
BSRM Berlin Second Regulated Market.
REIT Real Estate Investment Trust.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Permanence Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:

The Fund had the following call options purchased open at September 30, 2021:

 

Counterparty  Description  Strike
Price		  Expiration
Date		  Number of
Contracts		   Notional Amount
(000)		    Value
(000)		   Premiums
Paid
(000)		   Unrealized
Depreciation
(000)		 
BNP Paribas  USD/CNH  CNH 7.45  Jan- 22   595,628    596    $—@   $3   $(3)
BNP Paribas  USD/CNH  CNH 7.64  Nov- 21   556,269    556     —@    3    (3)
Goldman Sachs International  USD/CNH  CNH 7.57  Mar- 22   655,158    655     1    3    (2)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.28  Jul- 22   792,926    793     2    4    (2)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.31  Aug- 22   372,201    372     1    3    (2)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.38  Jul- 22   230,682    231     —@    1    (1)
                         $4   $17   $(13)

 

@   Value is less than $500.
CNH — Chinese Yuan Renminbi Offshore
USD — United States Dollar

 

 

 

 

Portfolio Composition  

 

Classification  Percentage of
Total Investments		 
Other*   56.6%
Software   12.7 
Textiles, Apparel & Luxury Goods   9.5 
Semiconductors & Semiconductor Equipment   8.2 
Aerospace & Defense   7.6 
Commercial Services & Supplies   5.4 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Real Estate Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (99.1%)        
Australia  (3.1%)          
Charter Hall Group REIT   74,884   $905 
GPT Group (The) REIT   158,934    573 
Mirvac Group REIT   99,565    211 
National Storage REIT   280,831    461 
Stockland REIT   251,329    797 
         2,947 
Austria  (0.5%)          
CA Immobilien Anlagen AG   10,565    448 
           
Canada  (2.0%)          
Dream Industrial Real Estate Investment Trust   90,524    1,158 
InterRent REIT   33,986    449 
Tricon Residential, Inc.   19,645    262 
         1,869 
China  (2.1%)          
China Resources Land Ltd. (a)   52,000    219 
China Resources Mixc Lifestyle Services Ltd. (a)   66,000    363 
Country Garden Services Holdings Co. Ltd. (a)   52,000    411 
GDS Holdings Ltd. ADR (b)   6,306    357 
Longfor Group Holdings Ltd. (a)   136,000    621 
         1,971 
Finland  (0.3%)          
Kojamo Oyj   14,743    306 
           
France  (2.7%)          
Gecina SA REIT   7,114    957 
ICADE REIT   6,898    539 
Klepierre SA REIT   15,110    338 
Mercialys SA REIT   69,594    739 
         2,573 
Germany  (3.0%)          
Alstria Office AG REIT   16,885    306 
Deutsche EuroShop AG   7,028    143 
Deutsche Wohnen SE   6,614    404 
LEG Immobilien SE   3,912    553 
Vonovia SE   22,622    1,358 
         2,764 
Hong Kong  (5.1%)          
ESR Cayman Ltd. (b)   404,800    1,222 
Hongkong Land Holdings Ltd.   102,000    487 
Link REIT   109,974    942 
Sun Hung Kai Properties Ltd.   88,367    1,103 
Wharf Real Estate Investment Co., Ltd.   189,075    972 
         4,726 
Ireland  (0.8%)          
Hibernia REIT PLC   554,595    750 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Real Estate Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Japan  (10.2%)        
Activia Properties, Inc. REIT   76    311 
Daiwa Securities Living Investments Corp. REIT   280    280 
Frontier Real Estate Investment Corp. REIT   25    109 
GLP J-REIT   528    867 
Hoshino Resorts, Real Estate Investment Trust Inc.   53    349 
Japan Metropolitan Fund Investment Corp. REIT   585    562 
Japan Real Estate Investment Corp. REIT   148    888 
Mitsubishi Estate Co., Ltd.   38,700    616 
Mitsui Fudosan Co., Ltd. (c)   80,600    1,915 
Nippon Building Fund, Inc. REIT   146    948 
Nippon Prologis REIT Inc.   251    839 
Nomura Real Estate Master Fund, Inc. REIT   305    439 
Orix, Inc. J-REIT   262    456 
Sumitomo Realty & Development Co., Ltd.   25,300    925 
         9,504 
Malta  (0.0%) (d)          
BGP Holdings PLC (e)   12,867,024    18 
           
Netherlands  (1.3%)          
Eurocommercial Properties N.V. CVA REIT   31,700    677 
NSI N.V. REIT   15,321    568 
         1,245 
Singapore  (1.7%)          
Frasers Logistics & Commercial Trust REIT   320,500    357 
Keppel DC REIT   401,900    734 
Mapletree Industrial Trust REIT   238,612    488 
         1,579 
Spain  (1.3%)          
Inmobiliaria Colonial Socimi SA REIT   35,644    346 
Merlin Properties Socimi SA REIT   89,202    915 
         1,261 
Sweden  (1.2%)          
Atrium Ljungberg AB, Class B   2,216    46 
Fabege AB (c)   36,922    557 
Hufvudstaden AB, Class A   31,866    476 
         1,079 
Switzerland  (0.4%)          
PSP Swiss Property AG (Registered)   3,290    396 
           
United Kingdom  (4.6%)          
British Land Co., PLC (The) REIT   149,068    989 
Derwent London PLC REIT   4,452    206 
Empiric Student Property PLC REIT (b)   244,914    292 
Grainger PLC   86,210    354 
Hammerson PLC REIT (c)   765,107    330 
Helical PLC   29,998    179 
Land Securities Group PLC REIT   115,600    1,077 
Segro PLC REIT   35,284    567 
Workspace Group PLC REIT   24,664    274 
         4,268 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Real Estate Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

United States  (58.8%)        
Agree Realty Corp. REIT   26,059    1,726 
Alexandria Real Estate Equities, Inc. REIT   9,959    1,903 
AvalonBay Communities, Inc. REIT   12,603    2,793 
Boyd Gaming Corp. (b)   18,358    1,161 
Brixmor Property Group, Inc. REIT   70,997    1,570 
Caesars Entertainment, Inc. (b)   5,754    646 
Empire State Realty Trust, Inc., Class A REIT   102,670    1,030 
Equinix, Inc. REIT   5,459    4,313 
Exeter Industrial Value Fund, LP (b)(e)(f)   1,860,000    129 
Extra Space Storage, Inc. REIT   10,223    1,717 
Healthcare Trust of America, Inc., Class A REIT   27,333    811 
Healthpeak Properties, Inc. REIT   69,191    2,317 
Invitation Homes, Inc. REIT   52,566    2,015 
Kilroy Realty Corp. REIT   15,771    1,044 
Kite Realty Group Trust REIT   36,279    739 
Lamar Advertising Co., Class A  REIT   6,715    762 
Life Storage, Inc. REIT   13,978    1,604 
Medical Properties Trust, Inc. REIT   51,543    1,034 
NETSTREIT Corp. REIT   65,554    1,550 
ProLogis, Inc. REIT   50,513    6,337 
Public Storage REIT   13,562    4,029 
Retail Properties of America, Inc., Class A REIT   57,795    744 
RPT Realty REIT   73,293    935 
SITE Centers Corp. REIT   75,087    1,159 
Sun Communities, Inc. REIT   14,447    2,674 
UDR, Inc. REIT   64,478    3,416 
Ventas, Inc. REIT   31,349    1,731 
VICI Properties, Inc. REIT   68,492    1,946 
Welltower, Inc. REIT   38,489    3,172 
         55,007 
Total Common Stocks (Cost $70,695)        92,711 
           
Short-Term Investments  (1.6%)          
Securities held as Collateral on Loaned Securities  (0.8%)          
Investment Company  (0.6%)          
Morgan Stanley Institutional Liquidity Funds -  Treasury Portfolio - Institutional Class (g)   565,306    565 

 

    

Face

Amount

(000)

      
Repurchase Agreements  (0.2%)          
HSBC Securities USA, Inc. (0.05%, dated 9/30/21, due 10/1/21; proceeds $30; fully collateralized by U.S. Government obligations; 0.00% - 0.13% due 10/7/21-12/31/22; valued at $30)  $30    30 
Merrill Lynch & Co., Inc. (0.05%, dated 9/30/21, due 10/1/21; proceeds $100; fully collateralized by a U.S. Government obligation; 0.38% due 4/15/24; valued at $102)   100    100 
         130 
Total Securities held as Collateral on Loaned Securities (Cost $695)        695 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Global Real Estate Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

   Shares     
Investment Company  (0.8%)         
Morgan Stanley Institutional Liquidity Funds -  Treasury Portfolio - Institutional Class (g) (Cost $735)   735,450   735 
Total Short-Term Investments (Cost $1,430)       1,430 
Total Investments (100.7%) (Cost $72,125) Including $2,516 of Securities Loaned (h)(i)(j)       94,141 
Liabilities in Excess of Other Assets (-0.7%)          (610)
Net Assets (100.0%)         $93,531 

 

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

 

(a) Security trades on the Hong Kong exchange.
(b) Non-income producing security.
(c) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2021, were approximately $2,516,000 and $2,676,000, respectively. The Fund received cash collateral of approximately $699,000, of which approximately $695,000 was subsequently invested in a Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class as reported in the Portfolio of Investments.  At September 30, 2021, there was uninvested cash collateral of approximately $4,000, which is not reflected in the Portfolio of Investments.  The remaining collateral of approximately $1,977,000 was received in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge and accordingly are not reflected in the Portfolio of Investments. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(d) Amount is less than 0.05%.
(e) At September 30, 2021, the Fund held fair valued securities valued at approximately $147,000, 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.
(f) 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 September 30, 2021, this security had an aggregate market value of approximately $129,000, representing less than 0.1% of net assets.
(g) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.
(h) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(i) The approximate fair value and percentage of net assets, $34,783,000 and 37.2%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(j) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $23,078,000 and the aggregate gross unrealized depreciation is approximately $1,062,000, resulting in net unrealized appreciation of approximately $22,016,000.
   
ADR American Depositary Receipt.
REIT Real Estate Investment Trust.

 

 

 

 

Portfolio Composition*

 

 
Classification  Percentage of
Total Investments		 
Diversified   21.7%
Residential   16.7 
Retail   13.1 
Industrial   11.9 
Office   11.6 
Health Care   9.7 
Self Storage   8.4 
Other**   6.9 
Total Investments   100.0%

 

*

Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2021.
** Industries and/or investment types representing less than 5% of total investments.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Global Sustain Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (97.8%)          
Canada  (3.5%)          
Constellation Software, Inc.   1,949   $3,193 
           
France  (1.3%)          
L'Oreal SA (BSRM)   2,814    1,164 
           
Germany  (10.0%)          
Deutsche Boerse AG   6,546    1,062 
Henkel AG & Co., KGaA (Preference)   36,732    3,398 
SAP SE   33,937    4,589 
         9,049 
Hong Kong  (1.6%)          
AIA Group Ltd.   125,800    1,447 
           
Taiwan  (2.4%)          
Taiwan Semiconductor Manufacturing Co., Ltd. ADR   19,733    2,203 
           
United Kingdom  (8.6%)          
Experian PLC   13,601    570 
Prudential PLC   67,383    1,308 
Reckitt Benckiser Group PLC   57,002    4,478 
RELX PLC (LSE)   49,200    1,416 
         7,772 
United States  (70.4%)        
Abbott Laboratories   29,291    3,460 
Accenture PLC, Class A   13,230    4,233 
Alphabet, Inc., Class A (a)   1,158    3,096 
Amphenol Corp., Class A   21,800    1,596 
Automatic Data Processing, Inc.   15,070    3,013 
Baxter International, Inc.   47,305    3,805 
Becton Dickinson & Co.   15,484    3,806 
Broadridge Financial Solutions, Inc.   1,303    217 
Cerner Corp.   20,258    1,429 
Coca-Cola Co. (The)   16,103    845 
Danaher Corp.   11,998    3,653 
Estee Lauder Cos., Inc. (The), Class A   2,989    896 
Factset Research Systems, Inc.   950    375 
Fidelity National Information Services, Inc.   12,493    1,520 
Intercontinental Exchange, Inc.   21,876    2,512 
Medtronic PLC   27,235    3,414 
Microsoft Corp.   23,790    6,707 
Moody's Corp.   1,559    554 
NIKE, Inc., Class B   6,235    905 
Procter & Gamble Co. (The)   22,121    3,093 
Roper Technologies, Inc.   4,038    1,801 
Stanley Black & Decker, Inc.   10,559    1,851 
Texas Instruments, Inc.   7,594    1,460 
Thermo Fisher Scientific, Inc.   6,130    3,502 
Visa, Inc., Class A   21,450    4,778 
Zoetis, Inc.   5,430    1,054 
         63,575 
Total Common Stocks (Cost $73,426)        88,403 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Global Sustain Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Short-Term Investment  (2.7%)          
Investment Company  (2.7%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class  (b) (Cost $2,404)   2,403,573    2,404 
Total Investments (100.5%) (Cost $75,830)  (c)(d)(e)        90,807 
Liabilities in Excess of Other Assets (-0.5%)        (474)
Net Assets (100.0%)       $90,333 

 

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) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.
(c) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(d) The approximate fair value and percentage of net assets, $19,432,000 and 21.5%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(e) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $15,928,000 and the aggregate gross unrealized depreciation is approximately $951,000, resulting in net unrealized appreciation of approximately $14,977,000.
   
ADR American Depositary Receipt.
LSE London Stock Exchange.

 

 

 

 

Portfolio Composition  

 

Classification  Percentage of
Total Investments		 
Other*   31.9%
Health Care Equipment & Supplies   20.0 
Software   15.9 
Information Technology Services   15.1 
Household Products   12.1 
Capital Markets   5.0 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Growth Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (95.8%)          
Biotechnology  (2.2%)          
Alnylam Pharmaceuticals, Inc. (a)   417,835   $78,892 
Ginkgo Bioworks, Inc. (a)(b)   4,251,576    46,812 
Moderna, Inc. (a)   733,735    282,385 
         408,089 
Entertainment  (7.0%)          
ROBLOX Corp., Class A (a)   8,709,707    658,018 
Sea Ltd. ADR (Singapore) (a)   1,017,290    324,241 
Spotify Technology SA (a)   1,307,604    294,656 
         1,276,915 
Health Care Equipment & Supplies  (2.6%)          
DexCom, Inc. (a)   347,706    190,146 
Intuitive Surgical, Inc. (a)   290,484    288,785 
         478,931 
Health Care Providers & Services  (1.0%)          
Guardant Health, Inc. (a)   1,501,747    187,733 
           
Health Care Technology  (3.5%)          
Agilon Health Topco, Inc. (a)(c)   6,618,800    170,009 
Veeva Systems, Inc., Class A (a)   1,597,733    460,419 
         630,428 
Hotels, Restaurants & Leisure (1.8%)          
Airbnb, Inc., Class A (a)   1,905,369    319,626 
           
Information Technology Services  (29.9%)          
Adyen N.V. (Netherlands) (a)   110,799    309,723 
Cloudflare, Inc., Class A (a)   7,963,198    897,054 
Fastly, Inc., Class A (a)   1,776,664    71,848 
MongoDB, Inc. (a)   532,731    251,188 
Okta, Inc. (a)   786,117    186,577 
Shopify, Inc., Class A (Canada) (a)   806,538    1,093,488 
Snowflake, Inc., Class A (a)   3,575,811    1,081,433 
Square, Inc., Class A (a)   3,991,714    957,373 
Twilio, Inc., Class A (a)   1,879,887    599,778 
         5,448,462 
Interactive Media & Services  (14.5%)          
Pinterest, Inc., Class A (a)   6,702,135    341,474 
Snap, Inc., Class A (a)   14,363,879    1,061,060 
Twitter, Inc. (a)   14,284,459    862,638 
Zillow Group, Inc., Class C (a)   4,398,822    387,712 
         2,652,884 
Internet & Direct Marketing Retail  (6.0%)          
DoorDash, Inc., Class A (a)   3,187,594    656,581 
Wayfair, Inc., Class A (a)   1,721,357    439,824 
         1,096,405 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Growth Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Life Sciences Tools & Services  (1.3%)        
10X Genomics, Inc., Class A (a)   1,569,261    228,453 
           
Metals & Mining  (0.2%)          
Royal Gold, Inc.   439,397    41,958 
           
Pharmaceuticals  (2.4%)          
Royalty Pharma PLC, Class A   12,104,963    437,473 
           
Semiconductors & Semiconductor Equipment  (2.5%)          
NVIDIA Corp.   2,197,217    455,175 
           
Software  (18.3%)          
Bill.Com Holdings, Inc. (a)   1,766,198    471,486 
Coupa Software, Inc. (a)   1,262,290    276,669 
Crowdstrike Holdings, Inc., Class A (a)   743,501    182,738 
Datadog, Inc., Class A (a)   3,609,770    510,241 
DocuSign, Inc. (a)   1,168,649    300,845 
Trade Desk, Inc. (The), Class A (a)   6,476,008    455,263 
Unity Software, Inc. (a)   4,001,145    505,145 
Zoom Video Communications, Inc., Class A (a)   2,442,578    638,734 
         3,341,121 
Specialty Retail  (2.6%)          
Carvana Co. (a)   1,548,328    466,883 
Total Common Stocks (Cost $10,669,049)        17,470,536 
           
Preferred Stocks  (0.7%)          
Electronic Equipment, Instruments & Components (0.0%) (e)          
Magic Leap Series C (a)(b)(d) (acquisition cost — $18,812; acquired 12/22/15)   816,725    — 
Software (0.7%)          
Databricks, Inc. (a)(b)(d) (acquisition cost — $136,746; acquired 8/31/21)   620,296    136,746 
Total Preferred Stocks (Cost $155,558)        136,746 
           
Investment Company  (0.7%)          
Grayscale Bitcoin Trust (a) (Cost $157,195)   3,642,118    123,286 
           
Short-Term Investment  (3.0%)          
Investment Company  (3.0%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (f) (Cost $538,307)   538,306,926    538,307 

Total Investments Excluding Purchased Options (100.2%) (Cost $11,520,109)    18,268,875 
Total Purchased Options Outstanding (0.1%) (Cost $86,378)   19,448 
Total Investments (100.3%) (Cost $11,606,487) (g)(h)(i)   18,288,323 
Other Assets in Excess of Liabilities (-0.3%)   (49,326)
Net Assets (100.0%)  $18,238,997 

 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Growth Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

The Fund had the following Derivative Contract - PIPE open at September 30, 2021.

 

Counterparty  Referenced
Obligation		  Notional
Amount		   Settlement
Date		  Unrealized
Depreciation
(000)		   % of
Net Assets		 
Reinvent Technology Partners Y   Aurora Innovation, Inc. (a)(b)(d)(j)(k)  $60,827,060   12/31/21  $(8,580)   (0.1)%

 

(a) Non-income producing security.
(b) 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 September 30, 2021 amounts to approximately $174,978,000 and represents 1.0% of net assets.
(c) Security has been deemed by the investment manager to be illiquid and is subject to restrictions on resale. At September 30, 2021, this security amounted to approximately $170,009,000, which represents 0.9% of net assets of the Fund.
(d) At September 30, 2021, the Fund held fair valued securities and derivative contract valued at approximately $128,166,000, representing 0.7% 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.
(e) Amount is less than 0.005%.
(f) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $263,000 relating to the Fund's investment in the Liquidity Funds.
(g) The approximate fair value and percentage of net assets, $309,723,000 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 Portfolio of Investments.
(h) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(i) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $7,221,256,000 and the aggregate gross unrealized depreciation is approximately $548,000,000, resulting in net unrealized appreciation of approximately $6,673,256,000.
(j) Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 6,082,706 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Aurora Innovation, Inc., and Reinvent Technology Partners Y., 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 Reinvent Technology Partners Y, and Aurora Innovation, Inc., 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 Reinvent Technology Partners Y, and Aurora Innovation, Inc. 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.
   
ADR American Depositary Receipt.
PIPE Private Investment in Public Equity.
SPAC Special Purpose Acquisition Company.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Growth Portfolio 

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:

The Fund had the following call options purchased open at September 30, 2021:  

 

Counterparty  Description  Strike
Price		  Expiration
Date		  Number of
Contracts		   Notional
Amount
(000)		   Value
(000)		   Premiums
Paid
(000)		   Unrealized
Depreciation
(000)		 
BNP Paribas  USD/CNH  CNH 7.45  Jan - 22   3,240,675,472    3,240,675   $279   $17,298   $(17,019)
BNP Paribas  USD/CNH  CNH 7.64  Nov - 21   2,625,404,928    2,625,405    5    14,258    (14,253)
Goldman Sachs International  USD/CNH  CNH 7.57  Mar - 22   3,297,576,823    3,297,577    1,273    16,379    (15,106)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.28  Jul - 22   4,097,984,739    4,097,985    10,384    19,092    (8,708)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.31  Aug - 22   1,916,631,520    1,916,632    4,947    13,018    (8,071)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.38  Jul - 22   1,193,724,935    1,193,725    2,560    6,333    (3,773)
                      $19,448   $86,378   $(66,930)

 

CNH — Chinese Yuan Renminbi Offshore
USD — United States Dollar

 

 

 

 

Portfolio Composition
 
Classification  Percentage of
Total Investments		 
Information Technology Services   29.8%
Other*   23.7 
Software   19.0 
Interactive Media & Services   14.5 
Entertainment   7.0 
Internet & Direct Marketing Retail   6.0 
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 $8,580,000.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Inception Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (94.2%)          
Beverages  (1.3%)          
Celsius Holdings, Inc. (a)   271,481   $24,458 
           
Biotechnology  (6.6%)          
4D Molecular Therapeutics, Inc. (a)   245,986    6,634 
Abcam PLC ADR (United Kingdom) (a)   579,775    11,752 
Allogene Therapeutics, Inc. (a)   223,678    5,749 
Beam Therapeutics, Inc. (a)   191,732    16,683 
C4 Therapeutics, Inc. (a)   153,877    6,875 
Century Therapeutics, Inc. (a)   222,373    5,595 
Editas Medicine, Inc. (a)   109,261    4,488 
Fate Therapeutics, Inc. (a)   64,127    3,801 
Graphite Bio, Inc. (a)   267,369    4,382 
Intellia Therapeutics, Inc. (a)   197,120    26,444 
Lyell Immunopharma, Inc. (a)   338,929    5,016 
MaxCyte, Inc. (a)   852,876    10,414 
Passage Bio, Inc. (a)   435,666    4,339 
Relay Therapeutics, Inc. (a)   155,755    4,911 
Sana Biotechnology, Inc. (a)   411,956    9,277 
         126,360 
Chemicals  (0.4%)          
Zymergen, Inc. (a)(b)   615,931    8,112 
           
Diversified Consumer Services  (2.7%)          
Duolingo, Inc. (a)   204,706    34,055 
Nerdy, Inc. (a)(b)   1,875,553    18,737 
         52,792 
Diversified Holding Companies  (4.1%)          
ABG Acquisition Corp. I, Class A SPAC (a)   483,700    4,711 
Big Sky Growth Partners, Inc. (Units) SPAC (a)(c)   1,123,779    11,216 
BowX Acquisition Corp., Class A SPAC (a)(b)   988,623    9,886 
Digital Transformation Opportunities Corp. (Units) SPAC (a)(c)   187,007    1,833 
Dynamics Special Purpose Corp., Class A SPAC (a)   1,942,567    19,309 
Meli Kaszek Pioneer Corp.   786,180    8,687 
Ribbit LEAP Ltd. (Units) SPAC (a)(c)   604,475    6,323 
TCV Acquisition Corp., Class A SPAC (a)   638,471    6,257 
USHG Acquisition Corp. (Units) SPAC (a)(c)   1,119,292    11,149 
         79,371 
Diversified Telecommunication Services  (2.8%)          
Anterix, Inc. (a)   891,530    54,116 
           
Entertainment  (1.4%)          
Skillz, Inc. (a)(b)   2,764,268    27,145 
           
Food Products  (1.0%)          
UTZ Brands, Inc.   1,074,548    18,407 
           
Health Care Equipment & Supplies  (5.3%)          
Angle PLC (United Kingdom) (a)   9,825,941    17,783 
Figs, Inc., Class A (a)(b)   828,888    30,785 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Inception Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Outset Medical, Inc. (a)   219,861    10,870 
Penumbra, Inc. (a)   39,764    10,597 
Quotient Ltd. (a)   2,242,839    5,248 
Sema4 Holdings Corp. (a)(d)   1,079,306    7,618 
Warby Parker, Inc., Class A (a)   357,281    18,954 
         101,855 
Health Care Providers & Services  (6.8%)          
23ANDME, Inc. (a)(d)   532,622    4,488 
Agilon health, Inc. (a)   823,991    21,597 
Alignment Healthcare, Inc. (a)   577,231    9,224 
Covetrus, Inc. (a)   2,640,014    47,890 
Guardant Health, Inc. (a)   171,120    21,392 
HealthEquity, Inc. (a)   162,084    10,496 
Privia Health Group, Inc. (a)   358,389    8,444 
Signify Health, Inc., Class A (a)(b)   386,002    6,898 
Talkspace, Inc. (a)(d)   469,229    1,618 
         132,047 
Health Care Technology  (5.4%)          
Doximity, Inc., Class A (a)   662,776    53,486 
Inspire Medical Systems, Inc. (a)   139,946    32,590 
Schrodinger, Inc. (a)   129,295    7,070 
Sema4 Holdings Corp. (a)(b)   1,335,805    10,139 
         103,285 
Hotels, Restaurants & Leisure  (1.0%)          
Membership Collective Group, Inc., Class A (a)(b)   1,544,151    19,209 
           
Household Durables  (5.3%)          
Cricut, Inc., Class A (a)(b)   1,760,376    48,551 
Victoria PLC (United Kingdom) (a)   4,258,985    52,957 
         101,508 
Information Technology Services  (3.5%)          
Fastly, Inc., Class A (a)   1,680,200    67,947 
           
Insurance  (0.5%)          
Oscar Health, Inc., Class A (a)   595,834    10,362 
           
Interactive Media & Services  (2.2%)          
Vimeo, Inc. (a)   1,418,195    41,652 
           
Internet & Direct Marketing Retail  (8.6%)          
Global-e Online Ltd. (Israel) (a)   275,882    19,808 
Original BARK Co. (The) (a)(b)   2,535,234    17,392 
Overstock.com, Inc. (a)   949,530    73,987 
Stitch Fix, Inc., Class A (a)   1,372,742    54,841 
         166,028 
Life Sciences Tools & Services  (5.8%)          
AbCellera Biologics, Inc. (Canada) (a)(b)   353,694    7,088 
NanoString Technologies, Inc. (a)   943,463    45,296 
Olink Holding AB ADR (Sweden) (a)   354,291    8,591 
Seer, Inc. (a)   535,377    18,487 
SomaLogic, Inc. (a)(b)   305,714    3,788 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Inception Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

SomaLogic, Inc. (a)(d)     635,501       7,480  
Stevanato Group SpA (Italy) (a)     845,481       21,399  
              112,129  
Machinery  (0.9%)                
Desktop Metal, Inc., Class A (a)     2,536,412       18,186  
                 
Media  (1.0%)                
Cardlytics, Inc. (a)     236,254       19,831  
                 
Metals & Mining  (0.8%)                
MP Materials Corp. (a)     315,727       10,176  
Royal Gold, Inc.     47,702       4,555  
              14,731  
Pharmaceuticals  (0.8%)                
ATAI Life Sciences N.V. (a)(b)     654,137       9,675  
GH Research PLC (a)(b)     285,111       6,289  
              15,964  
Professional Services  (1.1%)                
Upwork, Inc. (a)     464,467       20,915  
                 
Real Estate Management & Development  (4.5%)                
Redfin Corp. (a)     1,723,857       86,365  
                 
Software  (15.1%)                
Appian Corp. (a)     710,340       65,713  
C3.ai, Inc., Class A (a)     401,027       18,584  
Cipher Mining Technologies, Inc. (a)(d)     927,440       8,487  
Clear Secure, Inc., Class A (a)(b)     596,362       24,481  
JFrog Ltd. (a)     551,156       18,464  
Latch, Inc. (a)(b)     2,296,570       25,882  
Matterport, Inc. (a)(b)     2,384,880       45,098  
MicroStrategy, Inc., Class A (a)     14,862       8,596  
Monday.com Ltd. (Israel) (a)     84,165       27,455  
Olo, Inc., Class A (a)     1,591,314       47,787  
              290,547  
Specialty Retail  (4.3%)                
Party City Holdco, Inc. (a)     5,154,580       36,598  
Vroom, Inc. (a)     2,060,555       45,476  
              82,074  
Textiles, Apparel & Luxury Goods  (0.7%)                
On Holding AG, Class A (Switzerland) (a)     424,751       12,798  
                 
Trading Companies & Distributors  (0.3%)                
EVI Industries, Inc. (a)     238,195       6,479  
Total Common Stocks (Cost $1,901,710)             1,814,673  
                 
Preferred Stocks  (0.8%)                
Health Care Technology  (0.4%)                
Grand Rounds, Inc. Series B (d)(e) (acquisition cost - $3,362; acquired 7/3/14)     3,269,139       8,009  

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Inception Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Internet & Direct Marketing Retail  (0.1%)          
Overstock.com, Inc. Series A-1   14,625    1,049 
           
Software  (0.3%)          
Lookout, Inc. Series F (d)(e) (acquisition cost - $13,476; acquired 6/17/14)   1,179,743    5,380 
Total Preferred Stocks (Cost $16,933)        14,438 
           
Investment Companies  (2.0%)          
Grayscale Bitcoin Trust (a)   403,280    13,651 
Hipgnosis Songs Fund Ltd.   14,932,747    24,519 
Total Investment Companies (Cost $42,140)        38,170 
           
    No. of Warrants      
Warrants  (0.0%) (f)          
Internet & Direct Marketing Retail  (0.0%) (f)          
Original BARK Co. (The) expires 5/1/26 (a) (Cost $1,100)   209,825    357 
           
Life Sciences Tools & Services  (0.0%) (f)          
SomaLogic, Inc. expires 8/31/26 (a) (Cost $203)   101,904    351 
Total Warrants (Cost $1,303)        708 
           
Short-Term Investments  (14.5%)          
Securities held as Collateral on Loaned Securities  (9.8%)          
           
    Shares      
Investment Company  (8.0%)          
Morgan Stanley Institutional Liquidity Funds -  Treasury Securities Portfolio - Institutional Class (g) (Cost $152,921)    152,920,609    152,921 

 

  Face
Amount
(000)		        
Repurchase Agreements  (1.8%)              
HSBC Securities USA, Inc., (0.05%, dated 9/30/21, due 10/1/21; proceeds $7,992; fully collateralized by a U.S. Government obligation; 0.00%-0.13% due 10/7/21-12/31/22; valued at $8,152) $ 7,992       7,992  
Merrill Lynch & Co., Inc., (0.05%, dated 9/30/21, due 10/1/21; proceeds $27,174; fully collateralized by a U.S. Government obligation; 0.38% due 4/15/24; valued at $27,718)   27,174       27,174  
            35,166  
Total Securities held as Collateral on Loaned Securities (Cost $188,087)           188,087  

 

   Shares     
Investment Company  (4.7%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (g) (Cost $91,453)   91,452,989    91,453 
Total Short-Term Investments (Cost $279,540)        279,540 
Total Investments Excluding Purchased Options (111.5%) (Cost $2,241,626)           2,147,529 
Total Purchased Options Outstanding (0.1%) (Cost $7,476)   2,167 
Total Investments (111.6%) (Cost $2,249,102) Including $208,708 of Securities Loaned (h)(i)(j)(k)   2,149,696 
Liabilities in Excess of Other Assets (–11.6%)   (222,752)
Net Assets (100.0%)  $1,926,944 

  

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Inception Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

The Fund had the following Derivative Contract –  PIPE open at September 30, 2021:  

 

Counterparty  Referenced
Obligation		  Notional
Amount		   Settlement
Date		  Unrealized
Depreciation
(000)		   % of Net
Assets		 
Athena Technology Acquisition Corp.  Heliogen, Inc.  (a)(d)(e)(l)(m)  $9,845,070   12/31/21  $(1,148)  (0.06)%

 

(a) Non-income producing security.
(b) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2021, were approximately $208,708,000 and $222,217,000, respectively. The Fund received cash collateral of approximately $189,030,000, of which approximately $188,087,000 was subsequently invested in a Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class as reported in the Portfolio of Investments.  At September 30, 2021, there was uninvested cash collateral of approximately $943,000, which is not reflected in the Consolidated Portfolio of Investments.  The remaining collateral of approximately $33,187,000 was received in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge and accordingly are not reflected in the Consolidated Portfolio of Investments. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(c) Consists of one or more classes of securities traded together as a unit; stocks with attached warrants.
(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 and derivative contract (excluding 144A holdings) at September 30, 2021 amounts to approximately $41,932,000 and represents 2.2% of net assets.
(e) At September 30, 2021, the Fund held fair valued securities and derivative contract valued at approximately $12,241,000, representing 0.6% 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) Value is less than 0.05%.
(g) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $77,000 relating to the Fund's investment in the Liquidity Funds.
(h) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(i) The approximate fair value and percentage of net assets, $95,259,000 and 4.9%, 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.
(j) Securities are available for collateral in connection with securities purchased on a forward commitment basis.
(k) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $233,006,000 and the aggregate gross unrealized depreciation is approximately $332,412,000, resulting in net unrealized depreciation of approximately $99,406,000.

  

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Inception Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

(l)

Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 984,507 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Heliogen, Inc., and Athena Technology Acquisition Corp., 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 Athena Technology Acquisition Corp., and Heliogen, Inc., 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 Athena Technology Acquisition Corp., and Heliogen, Inc. The investment is restricted from resale until the settlement date.

(m)

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.

  

 

 

 

Morgan Stanley Institutional Fund, Inc. 

Inception Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:

The Fund had the following call options purchased open at September 30, 2021:  

 

Counterparty  Description  Strike
Price		  Expiration
Date		  Number of
Contracts		   Notional Amount
(000)		   Value
(000)		   Premiums
Paid
(000)		   Unrealized
Depreciation
(000)		 
BNP Paribas  USD/CNH  CNH 7.45  Jan-22   163,712,492    163,712   $14   $874   $(860)
BNP Paribas  USD/CNH  CNH 7.64  Nov-21   88,360,621    88,361    –@    480    (480)
Goldman Sachs International  USD/CNH  CNH 7.57  Mar-22   365,598,034    365,598    141    1,816    (1,675)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.28  Jul-22   468,635,786    468,636    1,188    2,184    (996)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.31  Aug-22   208,653,359    208,653    539    1,417    (878)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.38  Jul-22   132,899,103    132,899    285    705    (420)
                        $2,167   $7,476   $(5,309)

 

@       Value is less than $500.
CNH  —  Chinese Yuan Renminbi Offshore
USD  —  United States Dollar

 

 

 

 

Portfolio Composition*

 

Classification  Percentage of
Total Investments		 
Other**   41.3%
Software   15.1 
Internet & Direct Marketing Retail   8.5 
Health Care Providers & Services   6.7 
Biotechnology   6.5 
Life Sciences Tools & Services   5.8 
Health Care Technology   5.7 
Health Care Equipment & Supplies   5.2 
Household Durables   5.2 
Total Investments   100.0%***

 

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2021.
** Industries and/or investment types representing less than 5% of total investments.
*** Does not include an open PIPE contract with unrealized depreciation of approximately $1,148,000.
   

  

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Advantage Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (93.9%)          
Australia  (3.5%)          
Brookfield Infrastructure Partners LP   3,642,532   $204,383 
           
Canada  (8.6%)          
Brookfield Asset Management, Inc., Class A   4,273,207    228,659 
Canada Goose Holdings, Inc. (a)(b)   4,789,656    170,847 
Shopify, Inc., Class A (a)   79,121    107,271 
         506,777 
China  (2.9%)          
Foshan Haitian Flavouring & Food Co., Ltd., Class A   10,140,366    171,946 
           
Denmark  (9.8%)          
Chr Hansen Holding A/S   1,402,499    114,349 
DSV Panalpina A/S   1,930,802    462,164 
         576,513 
France  (9.7%)          
Dassault Systemes SE   2,126,898    111,929 
Hermes International   246,613    340,260 
Pernod Ricard SA   536,969    118,382 
         570,571 
Germany  (5.3%)        
Adidas AG   293,060    92,096 
HelloFresh SE (a)   1,229,794    113,347 
Puma SE   947,584    105,338 
         310,781 
Hong Kong  (2.6%)          
AIA Group Ltd.   13,457,900    154,825 
           
India  (6.6%)          
HDFC Bank Ltd.   14,010,879    299,528 
Kotak Mahindra Bank Ltd.   3,340,673    89,906 
         389,434 
Italy  (6.5%)          
Davide Campari-Milano N.V.   9,921,776    139,373 
Moncler SpA   3,941,919    240,420 
         379,793 
Japan  (7.1%)          
Change, Inc. (a)(c)   1,221,000    25,324 
Keyence Corp.   450,600    268,950 
Pigeon Corp.   5,201,500    120,923 
         415,197 
Netherlands  (8.5%)          
Adyen N.V. (a)   59,039    165,036 
ASML Holding N.V. (Registered)   448,351    334,944 
         499,980 
Sweden  (3.7%)          
Evolution AB   875,844    132,637 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Advantage Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Vitrolife AB   1,642,021    86,419 
         219,056 
Switzerland  (6.4%)        
Chocoladefabriken Lindt & Spruengli AG (Registered)   906    106,656 
Kuehne & Nagel International AG (Registered)   369,165    126,033 
Straumann Holding AG (Registered)   80,472    144,324 
         377,013 
Taiwan  (3.9%)          
Taiwan Semiconductor Manufacturing Co., Ltd. ADR   2,044,893    228,312 
           
United Kingdom  (4.2%)          
Diageo PLC   1,913,650    92,649 
Rightmove PLC   16,506,044    151,645 
         244,294 
United States  (4.6%)          
Brookfield Asset Management Reinsurance Partners Ltd., Class A (a)   27,496    1,528 
EPAM Systems, Inc. (a)   466,664    266,222 
         267,750 
Total Common Stocks (Cost $3,791,864)        5,516,625 
           
Investment Company  (0.6%)          
Grayscale Bitcoin Trust (a) (Cost $45,760)   1,059,728    35,872 
           
Short-Term Investment  (5.5%)          
Investment Company  (5.5%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (d) (Cost $321,362)   321,362,195    321,362 
Total Investments Excluding Purchased Options (100.00%) (Cost $4,158,986)        5,873,859 
Total Purchased Options Outstanding (0.0%) (i) (Cost $5,869)        2,276 
Total Investments (100.0%) (Cost $4,164,855) Including $4,834 of Securities Loaned (e)(f)(g)(h)        5,876,135 
Liabilities in Excess of Other Assets (0.0%) (i)        (1,566)
Net Assets (100.0%)       $5,874,569 

 

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.

 

The Fund had the following Derivative Contract -  PIPE open at September 30, 2021:

 

Counterparty  Referenced
Obligation		  Notional
Amount		   Settlement
Date		  Unrealized
Depreciation
(000)		   % of Net
Assets		 
Altimeter Growth Corp.  Grab Holdings Inc. (a)(j)(k)(l)(m)  $40,096,310   12/31/21  $(3,216)  (0.1)%

   

(a) Non-income producing security.

 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Advantage Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

(b) For the nine months ended September 30, 2021, the cost of purchase and proceeds from sale of Canada Goose Holdings, Inc., Common Stock, and its affiliated broker-dealers, which may be deemed affiliates of the Adviser/Administrator and Distributor under the Investment Company Act of 1940, were approximately $11,432,000 and $14,451,000, respectively, including net realized gain of approximately $300,000.
(c) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2021, were approximately $4,834,000 and $4,760,000, respectively. The Fund received non-cash collateral of approximately $4,760,000, in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge, and accordingly are not reflected in the Consolidated Portfolio of Investments. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(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 Fund due to its investment in the Liquidity Funds. For the nine months ended September 30, 2021, advisory fees paid were reduced by approximately $97,000 relating to the Fund's investment in the Liquidity Funds.
(e) The approximate fair value and percentage of net assets, $4,309,403,000 and 73.4%, 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.
(f) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(g) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,875,916,000   and the aggregate gross unrealized depreciation is approximately $167,852,000, resulting in net unrealized appreciation of approximately $1,708,064,000.
(h) Securities are available as collateral in connection with securities purchased on a forward commitment basis.
(i) Amount is less than 0.05%.
(j) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and elated 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 derivative contract (excluding 144A holdings) at September 30, 2021 amounts to approximately ($3,216,000) and represents (0.1)% of net assets.
(k)

Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 4,009,631 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., 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 Altimeter Growth Corp., and Grab Holdings Inc., 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 Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.

(l) 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.
(m) At September 30, 2021, the Fund held a fair valued derivative contract at approximately ($3,216,000), representing (0.1)% of net assets. This security 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.
   
ADR American Depositary Receipt.
PIPE Private Investment in Public Equity.
SPAC Special Purpose Acquisition Company.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Advantage Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:

The Fund had the following call options purchased open at September 30, 2021:  

 

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   $768   $1,899   $(1,131)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.31  Aug - 22   584,432,525    584,433    1,508    3,970    (2,462)
                        $2,276   $5,869   $(3,593)

 

CNH — Chinese Yuan Renminbi Offshore
USD — United States Dollar

 

 

 

 

Portfolio Composition*

 

Classification  Percentage of
Total Investments		 
Other**   38.7%
Textiles, Apparel & Luxury Goods   16.1 
Information Technology Services   9.6 
Semiconductors & Semiconductor Equipment   9.6 
Air Freight & Logistics   7.9 
Banks   6.6 
Beverages   6.0 
Short-Term Investments   5.5 
Total Investments   100.0%***

 

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2021.
** Industries and/or investment types representing less than 5% of total investments.
***

Does not include an open PIPE contract with unrealized depreciation of approximately $3,216,000.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Equity Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (97.8%)          
Australia  (0.8%)          
Aristocrat Leisure Ltd.   509,634   $16,949 
           
Canada  (6.0%)          
Barrick Gold Corp.   2,738,300    49,443 
Cameco Corp.   529,544    11,506 
Constellation Software, Inc.   40,858    66,936 
         127,885 
China  (3.4%)          
Minth Group Ltd. (a)   3,720,000    12,727 
Tencent Holdings Ltd. (a)   991,700    59,203 
         71,930 
Finland  (1.1%)          
Neste Oyj   407,851    23,008 
           
France  (13.7%)          
AXA SA   1,226,116    33,980 
L'Oreal SA (BSRM)   24,699    10,220 
Legrand SA   109,292    11,711 
LVMH Moet Hennessy Louis Vuitton SE   62,595    44,834 
Pernod Ricard SA   246,049    54,245 
Safran SA   335,587    42,445 
Sanofi   616,418    59,339 
Thales SA   347,747    33,716 
         290,490 
Germany  (18.4%)          
Adidas AG   90,827    28,543 
Bayer AG (Registered)   562,365    30,523 
Deutsche Boerse AG   235,854    38,271 
Deutsche Post AG (Registered)   818,342    51,318 
Fresenius SE & Co., KGaA   1,170,704    56,036 
Henkel AG & Co., KGaA (Preference)   727,429    67,293 
Infineon Technologies AG   386,596    15,811 
Knorr-Bremse AG   185,393    19,836 
QIAGEN N.V. (b)   241,294    12,481 
SAP SE   524,275    70,897 
         391,009 
Hong Kong  (2.5%)          
AIA Group Ltd.   4,612,400    53,063 
           
Italy  (2.1%)          
Moncler SpA   720,157    43,923 
           
Japan  (8.1%)          
FANUC Corp.   110,900    24,316 
Hoya Corp.   174,700    27,256 
Keyence Corp.   49,100    29,306 
Kirin Holdings Co., Ltd.   2,306,300    42,805 
Shiseido Co., Ltd.   445,500    29,942 
Sumitomo Mitsui Financial Group, Inc.   550,951    19,382 
         173,007 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Equity Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Korea, Republic of  (2.0%)        
LG Household & Health Care Ltd.   10,419    11,746 
Samsung Electronics Co., Ltd.   506,589    31,406 
         43,152 
Netherlands  (2.1%)          
Heineken N.V.   426,730    44,540 
           
Norway  (1.1%)          
Mowi ASA   957,730    24,300 
           
Singapore  (3.1%)          
DBS Group Holdings Ltd.   1,552,700    34,406 
United Overseas Bank Ltd.   1,626,000    30,760 
         65,166 
Spain  (1.4%)          
Grifols SA   1,202,796    29,342 
           
Sweden  (3.0%)        
Epiroc AB, Class A   894,778    18,550 
Hexagon AB, Class B   1,568,472    24,261 
Svenska Handelsbanken AB, Class A   1,970,264    22,066 
         64,877 
Switzerland  (5.1%)          
Alcon, Inc.   132,180    10,703 
Novartis AG (Registered)   620,598    50,889 
Roche Holding AG (Genusschein)   126,494    46,166 
         107,758 
Taiwan  (2.3%)          
Taiwan Semiconductor Manufacturing Co., Ltd. ADR   445,214    49,708 
           
United Kingdom  (21.5%)          
Anglo American PLC   422,610    14,812 
Associated British Foods PLC   1,692,358    42,127 
AstraZeneca PLC   231,760    27,931 
British American Tobacco PLC   1,423,477    49,757 
Experian PLC   472,571    19,796 
GlaxoSmithKline PLC   1,042,105    19,668 
Imperial Brands PLC   1,712,023    35,810 
Legal & General Group PLC   8,340,497    31,336 
M&G PLC   4,323,308    11,812 
Man Group PLC   3,462,102    9,497 
Prudential PLC   2,932,748    56,911 
Reckitt Benckiser Group PLC   882,076    69,296 
RELX PLC (Euronext N.V.)   1,303,453    37,732 
RELX PLC (LSE)   1,088,513    31,334 
         457,819 
United States  (0.1%)          
Jackson Financial, Inc., Class A (b)   73,318    1,906 
Total Common Stocks (Cost $1,468,390)        2,079,832 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Equity Portfolio 

Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Short-Term Investment  (1.9%)        
Investment Company  (1.9%)        
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class  (c) (Cost $40,883)   40,883,440    40,883 
Total Investments (99.7%) (Cost $1,509,273)  (d)(e)(f)        2,120,715 
Other Assets in Excess of Liabilities (0.3%)        7,321 
Net Assets (100.0%)       $2,128,036 

 

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

 

(a) Security trades on the Hong Kong exchange.
(b) Non-income producing security.
(c) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $13,000 relating to the Fund's investment in the Liquidity Funds.
(d) The Fund is permitted to purchase and sell securities ("cross-trade") from and to other Morgan Stanley Funds as well as other funds and client accounts for which the Adviser or an affiliate of the Adviser serves as investment adviser, pursuant to procedures approved by the 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(e) The approximate fair value and percentage of net assets, $1,900,333,000 and 89.3%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(f) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $677,375,000 and the aggregate gross unrealized depreciation is approximately $65,933,000, resulting in net unrealized appreciation of approximately $611,442,000.
   
ADR American Depositary Receipt.
Euronext N.V. Euronext Amsterdam Stock Market.
LSE London Stock Exchange.

 

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Other*   50.5%
Pharmaceuticals   11.1 
Insurance   8.3 
Beverages   6.7 
Software   6.5 
Household Products   6.4 
Textiles, Apparel & Luxury Goods   5.5 
Banks   5.0 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Opportunity Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (97.0%)          
Argentina  (1.1%)          
Globant SA (a)   180,717   $50,783 
           
Brazil  (1.2%)          
Magazine Luiza SA   21,005,281    55,312 
           
Canada  (8.3%)          
Canada Goose Holdings, Inc. (a)(b)   3,235,530    115,411 
Shopify, Inc., Class A (a)   191,576    259,735 
         375,146 
China  (13.2%)          
Foshan Haitian Flavouring & Food Co., Ltd., Class A   6,118,217    103,744 
HUYA, Inc. ADR (a)   4,118,725    34,350 
Kuaishou Technology (a)(c)(d)   4,774,100    50,952 
Meituan, Class B (a)(c)   5,785,300    184,675 
New Frontier Health Corp. SPAC (a)   1,583,308    17,781 
Shenzhou International Group Holdings Ltd. (c)   2,010,900    42,678 
Tencent Holdings Ltd. (c)   1,086,900    64,887 
Trip.com Group Ltd. ADR (a)   3,157,602    97,096 
         596,163 
Denmark  (6.3%)          
DSV Panalpina A/S   1,180,695    282,616 
           
France  (3.9%)          
Hermes International   126,644    174,735 
           
Germany  (8.2%)          
Adidas AG   184,073    57,846 
HelloFresh SE (a)   2,503,702    230,759 
Puma SE   745,707    82,897 
         371,502 
India  (9.5%)          
HDFC Bank Ltd.   11,057,270    236,385 
ICICI Bank Ltd. ADR   7,190,076    135,677 
Kotak Mahindra Bank Ltd.   2,077,253    55,904 
         427,966 
Italy  (4.3%)          
Moncler SpA   3,157,211    192,560 
           
Japan  (4.1%)          
Change, Inc. (a)(d)   980,000    20,326 
Keyence Corp.   239,700    143,070 
Pigeon Corp.   1,025,700    23,845 
         187,241 
Korea, Republic of  (3.5%)          
KakaoBank Corp. (a)(d)   668,346    38,610 
NAVER Corp.   366,428    118,894 
         157,504 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Opportunity Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Netherlands  (5.8%)        
Adyen N.V. (a)   44,984    125,747 
ASML Holding N.V. (Registered)   184,839    138,085 
         263,832 
Norway  (0.8%)          
Kahoot! ASA (a)   4,862,780    34,801 
           
Sweden  (6.0%)          
Evolution AB   1,229,771    186,236 
Vitrolife AB   1,571,477    82,706 
         268,942 
Taiwan  (2.0%)          
Taiwan Semiconductor Manufacturing Co., Ltd.   4,355,000    90,071 
           
United Kingdom  (2.4%)          
Deliveroo PLC (a)(d)   18,084,779    69,971 
Fevertree Drinks PLC   1,187,637    37,261 
         107,232 
United States  (16.4%)          
Coupang, Inc. (a)   5,735,874    159,744 
EPAM Systems, Inc. (a)   326,151    186,063 
Farfetch Ltd., Class A (a)   2,717,208    101,841 
MercadoLibre, Inc. (a)   69,216    116,241 
Spotify Technology SA (a)   777,275    175,151 
         739,040 
Total Common Stocks (Cost $3,071,567)        4,375,446 
           
Investment Company  (0.7%)          
United States  (0.7%)          
Grayscale Bitcoin Trust (a) (Cost $39,637)   896,270    30,339 
           
Short-Term Investments  (4.1%)          
Securities held as Collateral on Loaned Securities  (1.2%)          
Investment Company  (1.0%)          
Morgan Stanley Institutional Liquidity Funds -  Treasury Securities Portfolio - Institutional Class (e)   45,731,212    45,731 

 

    Face
Amount
(000)		      
Repurchase Agreements  (0.2%)          
HSBC Securities USA, Inc., (0.05%, dated 9/30/21, due 10/1/21; proceeds $2,390; fully collateralized by U.S. Government obligations; 0.00% - 0.13% due 10/7/21-12/31/22; valued at $2,438)  $2,390    2,390 
Merrill Lynch & Co., Inc., (0.05%, dated 9/30/21, due 10/1/21; proceeds $8,127; fully collateralized by a U.S. Government obligation; 0.38% due 4/15/24; valued at $8,289)   8,127    8,127 
         10,517 

Total Securities held as Collateral on Loaned Securities (Cost $56,248)

        56,248 

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Opportunity Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

    Shares      
Investment Company  (2.9%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class  (e) (Cost $130,910)   130,910,476    130,910 
Total Short-Term Investments (Cost $187,158)        187,158 
Total Investments Excluding Purchased Options (101.8%) (Cost $3,298,362)        4,592,943 
Total Purchased Options Outstanding (0.1%) (Cost $9,661)        3,749 
Total Investments (101.9%) (Cost $3,308,023) Including $108,322 of Securities Loaned (f)(g)(h)(i)        4,596,692 
Liabilities in Excess of Other Assets (-1.9%)        (86,878)
Net Assets (100.0%)       $4,509,814 

 

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.

 

The Fund had the following Derivative Contract - PIPE open at September 30, 2021.

 

Counterparty

 

Referenced

Obligation

 

Notional

Amount

  

Settlement

Date

 

Unrealized

Depreciation

(000)

  

% of

Net Assets

 
Altimeter Growth Corp  Grab Holdings, Inc.(a)(j)(k)(l)(m)  $38,189,810   12/31/21  $(3,063)   (0.1)%

 

(a) Non-income producing security.
(b) For the nine months ended September 30, 2021, the cost of purchase and proceeds from sale of Canada Goose Holdings, Inc., Common Stock, and its affiliated broker-dealers, which may be deemed affiliates of the Adviser/Administrator and Distributor under the Investment Company Act of 1940, were approximately $7,371,000 and $78,755,000, respectively, including net realized gain of approximately $18,516,000.
(c) Security trades on the Hong Kong exchange.
(d) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2021, were approximately $108,322,000 and $114,408,000, respectively. The Fund received cash collateral of approximately $56,530,000, of which approximately $56,248,000 was subsequently invested in a Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class as reported in the Consolidated Portfolio of Investments.  At September 30, 2021, there was uninvested cash collateral of approximately $282,000, which is not reflected in the Consolidated Portfolio of Investments.  The remaining collateral of approximately $57,878,000 was received in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge and accordingly are not reflected in the Consolidated Portfolio of Investments. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(e) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $84,000 relating to the Fund's investment in the Liquidity Funds.
(f) The approximate fair value and percentage of net assets, $2,831,651,000 and 62.8%, 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) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(h) Securities are available for collateral in connection with securities purchased on a forward commitment basis.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Opportunity Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

(i) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $1,503,622,000 and the aggregate gross unrealized depreciation is approximately $218,016,000, resulting in net unrealized appreciation of approximately $1,285,606,000.
(j) 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 derivative contract (excluding 144A holdings) at September 30, 2021 amounts to approximately $(3,063,000) and represents (0.1)% of net assets.
(k) At September 30, 2021, the Fund held a fair valued derivative contract valued at approximately $(3,063,000), 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.
(l)

Represents an unfunded subscription agreement in a private investment in a public entity. The Fund is committed to purchase 3,818,981 shares at $10.00 per share on the settlement date pursuant to the closing of the business combination between Grab Holdings Inc., and Altimeter Growth Corp., a SPAC. The settlement date shown reflects the estimated date based upon the subscription agreement and is subject to change. The transactions will require the approval of the shareholders of both Altimeter Growth Corp., and Grab Holdings Inc., 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 Altimeter Growth Corp., and Grab Holdings Inc. The investment is restricted from resale until the settlement date.

(m) 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.

 

 

 

 

Morgan Stanley Institutional Fund, Inc. 

International Opportunity Portfolio 

Consolidated Portfolio of Investments 

Third Quarter Report 

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:

The Fund had the following call options purchased open at September 30, 2021:  

 

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   $2,458   $6,469   $(4,011)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.38  Jul - 22   601,605,554    601,606    1,291    3,192    (1,901)
                        $3,749   $9,661   $(5,912)

 

CNH — Chinese Yuan Renminbi Offshore
USD — United States Dollar

 

 

 

 

Portfolio Composition*  

 

Classification  Percentage of
Total Investments		 
Internet & Direct Marketing Retail   19.0%
Textiles, Apparel & Luxury Goods   14.7 
Information Technology Services   14.2 
Other**   13.8 
Banks   10.3 
Hotels, Restaurants & Leisure   6.2 
Air Freight & Logistics   6.2 
Entertainment   5.4 
Interactive Media & Services   5.2 
Semiconductors & Semiconductor Equipment   5.0 
Total Investments   100.0%***

 

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2021.
** Industries and/or investment types representing less than 5% of total investments.
***

Does not include an open PIPE contract with unrealized depreciation of approximately $3,063,000.

 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Multi-Asset Real Return Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks  (32.4%)          
Australia  (1.2%)          
Evolution Mining Ltd.   19,669   $50 
Gold Road Resources Ltd.   10,140    9 
Newcrest Mining Ltd.   8,658    143 
Northern Star Resources Ltd.   13,529    83 
Perseus Mining Ltd. (a)   14,118    14 
Ramelius Resources Ltd.   9,370    9 
Regis Resources Ltd.   8,680    12 
Resolute Mining Ltd. (a)   12,707    4 
Silver Lake Resources Ltd. (a)   10,148    10 
St. Barbara Ltd.   8,262    8 
Westgold Resources Ltd.   4,879    6 
         348 
Canada  (5.7%)          
Agnico-Eagle Mines Ltd.   2,425    126 
Alamos Gold, Inc., Class A   4,643    33 
Argonaut Gold, Inc. (a)   3,603    8 
B2Gold Corp.   12,348    42 
Bank of Montreal   5    —@
Barrick Gold Corp.   18,498    334 
Centerra Gold, Inc.   3,510    24 
Dundee Precious Metals, Inc.   2,127    13 
Eldorado Gold Corp. (a)   2,147    17 
Endeavour Mining PLC   2,962    67 
Endeavour Silver Corp. (a)   1,955    8 
Equinox Gold Corp. (a)   3,498    23 
First Majestic Silver Corp.   2,937    33 
Fortuna Silver Mines, Inc. (a)   2,196    9 
Franco-Nevada Corp.   1,966    255 
GoGold Resources, Inc. (a)   3,242    7 
IAMGOLD Corp. (a)(b)   5,667    13 
K92 Mining, Inc. (a)   2,476    12 
Kinross Gold Corp.   14,806    79 
Kirkland Lake Gold Ltd.   3,102    129 
Manulife Financial Corp.   41    1 
New Gold, Inc. (a)   8,366    9 
OceanaGold Corp. (a)   8,241    13 
Osisko Gold Royalties Ltd.   1,973    22 
Pan American Silver Corp.   2,446    57 
Pretium Resources, Inc. (a)   2,209    21 
Sandstorm Gold Ltd. (a)   2,284    13 
Silvercorp Metals, Inc.   2,064    8 
SSR Mining, Inc.   2,591    38 
Torex Gold Resources, Inc. (a)   1,011    10 
Victoria Gold Corp. (a)   717    9 
Wesdome Gold Mines Ltd. (a)   1,619    13 
Wheaton Precious Metals Corp.   4,660    175 
Yamana Gold, Inc.   11,501    46 
         1,667 
China  (0.3%)          
Zhaojin Mining Industry Co., Ltd. H Shares (c)   30,000    21 
Zijin Mining Group Co., Ltd. H Shares (c)   65,900    80 
         101 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Multi-Asset Real Return Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Peru  (0.1%)          
Cia de Minas Buenaventura SAA ADR (a)   3,000    20 
           
South Africa  (0.7%)          
AngloGold Ashanti Ltd. ADR   4,900    78 
DRDGOLD Ltd. ADR   1,000    8 
Gold Fields Ltd. ADR   10,600    86 
Harmony Gold Mining Co., Ltd. ADR   7,200    23 
         195 
United Kingdom  (0.1%)          
Anglo American PLC   2    —@
Centamin PLC   13,308    17 
Rio Tinto PLC   51    4 
Royal Dutch Shell PLC, Class B   44    1 
         22 
United States  (24.3%)          
Acadia Realty Trust REIT   75    2 
Agree Realty Corp. REIT   55    4 
Air Products & Chemicals, Inc.   471    121 
Albemarle Corp.   244    53 
Alexander & Baldwin, Inc. REIT   63    1 
Alexander's, Inc. REIT   2    1 
Alexandria Real Estate Equities, Inc. REIT   113    22 
Amcor PLC   3,290    38 
American Assets Trust, Inc. REIT   45    2 
American Campus Communities, Inc. REIT   120    6 
American Finance Trust, Inc. REIT   95    1 
American Homes 4 Rent, Class A REIT   248    9 
Americold Realty Trust REIT   209    6 
Apartment Income Corp. REIT   130    6 
Apartment Investment and Management Co., Class A REIT   130    1 
Apple Hospitality, Inc. REIT   185    3 
Armada Hoffler Properties, Inc. REIT   52    1 
AvalonBay Communities, Inc. REIT   122    27 
Avery Dennison Corp.   175    36 
Baker Hughes Co.   2,268    56 
Ball Corp.   689    62 
Boston Properties, Inc. REIT   129    14 
Brandywine Realty Trust REIT   149    2 
Brixmor Property Group, Inc. REIT   259    6 
Broadstone Net Lease, Inc. REIT   127    3 
Camden Property Trust REIT   85    13 
CareTrust REIT, Inc. REIT   84    2 
Cavco Industries, Inc. (a)   29    7 
Celanese Corp.   238    36 
Centerspace REIT   11    1 
Century Communities, Inc.   98    6 
CF Industries Holdings, Inc.   452    25 
Chatham Lodging Trust REIT (a)   41    1 
Cheniere Energy, Inc. (a)   762    74 
Chevron Corp.   6,158    625 
City Office, Inc. REIT   38    1 
Coeur Mining, Inc. (a)   3,001    18 
Columbia Property Trust, Inc. REIT   100    2 
Community Healthcare Trust, Inc. REIT   20    1 
ConocoPhillips   4,264    289 
Coresite Realty Corp. REIT   37    5 
Corporate Office Properties Trust REIT   98    3 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Multi-Asset Real Return Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Corteva, Inc.   1,573    66 
Cousins Properties, Inc. REIT   130    5 
Crown Holdings, Inc.   287    29 
CubeSmart REIT   170    8 
CyrusOne, Inc. REIT   105    8 
Devon Energy Corp.   1,981    70 
DiamondRock Hospitality Co. REIT (a)   183    2 
Digital Realty Trust, Inc. REIT   244    35 
DigitalBridge Group, Inc. REIT (a)   422    3 
Diversified Healthcare Trust REIT   208    1 
Douglas Emmett, Inc. REIT   153    5 
Dow, Inc.   1,545    89 
DR Horton, Inc.   1,120    94 
Duke Realty Corp. REIT   326    16 
DuPont de Nemours, Inc.   1,127    77 
Easterly Government Properties, Inc. REIT   72    1 
EastGroup Properties, Inc. REIT   35    6 
Eastman Chemical Co.   282    28 
Ecolab, Inc.   540    113 
Empire State Realty Trust, Inc., Class A REIT   126    1 
EOG Resources, Inc.   1,821    146 
EPR Properties REIT   65    3 
Equinix, Inc. REIT   78    62 
Equity Commonwealth REIT (a)   106    3 
Equity Lifestyle Properties, Inc. REIT   151    12 
Equity Residential REIT   309    25 
Essential Properties Realty Trust, Inc. REIT   93    3 
Essex Property Trust, Inc. REIT   57    18 
Extra Space Storage, Inc. REIT   115    19 
Exxon Mobil Corp.   13,428    790 
Federal Realty Investment Trust REIT   60    7 
First Industrial Realty Trust, Inc. REIT   113    6 
FMC Corp.   275    25 
Four Corners Property Trust, Inc. REIT   66    2 
Franklin Street Properties Corp., Class C REIT   89    —@
Freeport-McMoRan, Inc.   2,939    96 
Gaming and Leisure Properties, Inc. REIT   193    9 
GEO Group, Inc. (The) REIT (b)   106    1 
Getty Realty Corp. REIT   32    1 
Gladstone Commercial Corp. REIT   31    1 
Global Medical REIT, Inc. REIT   49    1 
Global Net Lease, Inc. REIT   78    1 
Halliburton Co.   2,775    60 
Healthcare Realty Trust, Inc. REIT   122    4 
Healthcare Trust of America, Inc., Class A REIT   191    6 
Healthpeak Properties, Inc. REIT   470    16 
Hecla Mining Co.   6,260    34 
Hess Corp.   869    68 
Highwoods Properties, Inc. REIT   91    4 
Host Hotels & Resorts, Inc. REIT (a)   615    10 
Hudson Pacific Properties, Inc. REIT   132    3 
Independence Realty Trust, Inc. REIT   89    2 
Industrial Logistics Properties Trust REIT   57    1 
Innovative Industrial Properties, Inc. REIT   21    5 
Installed Building Products, Inc.   77    8 
International Flavors & Fragrances, Inc.   526    70 
International Paper Co.   777    43 
Invitation Homes, Inc. REIT   495    19 
Iron Mountain, Inc. REIT   252    11 
iStar, Inc. REIT (b)   64    2 
JBG SMITH Properties REIT   103    3 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Multi-Asset Real Return Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

KB Home   303    12 
Kilroy Realty Corp. REIT   91    6 
Kimco Realty Corp. REIT   508    11 
Kinder Morgan, Inc.   6,406    107 
Kite Realty Group Trust REIT   74    1 
Lennar Corp., Class A   942    88 
Lexington Realty Trust REIT   242    3 
LGI Homes, Inc. (a)   74    10 
Life Storage, Inc. REIT   66    8 
Linde PLC   1,099    322 
LTC Properties, Inc. REIT   34    1 
LyondellBasell Industries N.V., Class A   563    53 
M/I Homes, Inc. (a)   98    6 
Macerich Co. (The) REIT   128    2 
Mack-Cali Realty Corp. REIT (a)   63    1 
Marathon Petroleum Corp.   2,043    126 
Martin Marietta Materials, Inc.   132    45 
MDC Holdings, Inc.   187    9 
Medical Properties Trust, Inc. REIT   504    10 
Meritage Homes Corp. (a)   128    12 
MGM Growth Properties LLC, Class A REIT   131    5 
Mid-America Apartment Communities, Inc. REIT   100    19 
Monmouth Real Estate Investment Corp. REIT   81    1 
Mosaic Co. (The)   745    27 
National Health Investors, Inc. REIT   37    2 
National Retail Properties, Inc. REIT   153    7 
National Storage Affiliates Trust REIT   72    4 
NETSTREIT Corp. REIT   34    1 
Newmont Corp. (TSX)   9,915    538 
NexPoint Residential Trust, Inc. REIT   20    1 
Nucor Corp.   640    63 
NVR, Inc. (a)   12    57 
Occidental Petroleum Corp.   2,833    84 
Office Properties Income Trust REIT   42    1 
Omega Healthcare Investors, Inc. REIT   202    6 
One Liberty Properties, Inc. REIT   14    —@
ONEOK, Inc.   1,407    82 
Packaging Corp. of America   199    27 
Paramount Group, Inc. REIT   153    1 
Park Hotels & Resorts, Inc. REIT (a)   206    4 
Pebblebrook Hotel Trust REIT   115    3 
Phillips 66   1,381    97 
Physicians Realty Trust REIT   182    3 
Piedmont Office Realty Trust, Inc., Class A REIT   108    2 
Pioneer Natural Resources Co.   645    107 
PPG Industries, Inc.   500    71 
ProLogis, Inc. REIT   645    81 
PS Business Parks, Inc. REIT   18    3 
Public Storage REIT   137    41 
Pulte Group, Inc.   895    41 
Realty Income Corp. REIT   326    21 
Regency Centers Corp. REIT   133    9 
Retail Opportunity Investments Corp. REIT   103    2 
Retail Properties of America, Inc., Class A REIT   187    2 
Rexford Industrial Realty, Inc. REIT   115    6 
RLJ Lodging Trust REIT   144    2 
Royal Gold, Inc.   761    73 
RPM International, Inc.   275    21 
RPT Realty REIT   71    1 
Ryman Hospitality Properties, Inc. REIT (a)   46    4 
Sabra Health Care, Inc. REIT   184    3 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Multi-Asset Real Return Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Safehold, Inc. REIT   14    1 
Saul Centers, Inc. REIT   12    1 
Schlumberger N.V.   4,365    129 
Sealed Air Corp.   327    18 
Seritage Growth Properties, Class A (a)   30    —@
Service Properties Trust REIT   144    2 
Sherwin-Williams Co. (The)   540    151 
Simon Property Group, Inc. REIT   286    37 
SITE Centers Corp. REIT   135    2 
SL Green Realty Corp. REIT   61    4 
Spirit Realty Capital, Inc. REIT   100    5 
STAG Industrial, Inc. REIT   138    5 
Steel Dynamics, Inc.   439    26 
STORE Capital Corp. REIT   206    7 
Summit Hotel Properties, Inc. REIT (a)   92    1 
Sun Communities, Inc. REIT   94    17 
Sunstone Hotel Investors, Inc. REIT (a)   188    2 
Tanger Factory Outlet Centers, Inc. REIT   82    1 
Taylor Morrison Home Corp. (a)   435    11 
Terreno Realty Corp. REIT   60    4 
Toll Brothers, Inc.   378    21 
TopBuild Corp. (a)   113    23 
Tri Pointe Homes, Inc. (a)   401    8 
UDR, Inc. REIT   259    14 
UMH Properties, Inc. REIT   36    1 
Universal Health Realty Income Trust REIT   12    1 
Urban Edge Properties REIT   102    2 
Urstadt Biddle Properties, Inc., Class A REIT   26    —@
Valero Energy Corp.   1,294    91 
Ventas, Inc. REIT   327    18 
VEREIT, Inc. REIT   200    9 
VICI Properties, Inc. REIT   468    13 
Vornado Realty Trust REIT   142    6 
Vulcan Materials Co.   280    47 
Washington REIT   74    2 
Welltower, Inc. REIT   364    30 
WestRock Co.   545    27 
Williams Cos., Inc. (The)   3,843    100 
WP Carey, Inc. REIT   153    11 
Xenia Hotels & Resorts, Inc. REIT (a)   99    2 
         7,055 
Total Common Stocks (Cost $9,574)        9,408 

 

   Face
Amount
(000)		      
U.S. Treasury Security (36.3%)          
United States  (36.3%)          
U.S. Treasury Inflation Indexed Bond,          
0.13%, 7/15/31 (Cost $10,721)  $9,548    10,523 

 

   Shares      
Short-Term Investments  (25.4%)          
Securities held as Collateral on Loaned Securities  (0.1%)          
Investment Companies  (0.1%)          
Morgan Stanley Institutional Liquidity Funds -  Treasury Portfolio - Institutional Class (d) (Cost $11)   10,777    11 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Multi-Asset Real Return Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

   Face
Amount
(000)		      
Repurchase Agreements  (0.0%) (e)          
HSBC Securities USA, Inc. (0.05%, dated 9/30/21, due 10/1/21; proceeds $1; fully collateralized by U.S. Government obligations; 0.00%-0.13% due 10/7/21-12/31/22; valued at $1)  $        1    1 
Merrill Lynch & Co., Inc. (0.05%, dated 9/30/21, due 10/1/21; proceeds $1; fully collateralized by a U.S. Government obligation; 0.38% due 4/15/24; valued at $2)   1    1 
         2 
Total Securities held as Collateral on Loaned Securities (Cost $13)        13 

 

   Shares      
Investment Company  (25.3%)          
Morgan Stanley Institutional Liquidity Funds -  Treasury Portfolio - Institutional Class (d) (Cost $7,337)   7,336,665    7,337 
Total Short-Term Investments (Cost $7,350)        7,350 
Total Investments (94.1%) (Cost $27,645) Including $14 of Securities Loaned (f)(g)(h)        27,281 
Other Assets in Excess of Liabilities (5.9%)        1,716 
Net Assets (100.0%)       $28,997 

 

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) All or a portion of this security was on loan. The value of loaned securities and related collateral outstanding at September 30, 2021, were approximately $14,000 and $15,000, respectively. The Fund received cash collateral of approximately $13,000, of which approximately $13,000 was subsequently invested in a Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class as reported in the Consolidated Portfolio of Investments. The remaining collateral of approximately $2,000 was received in the form of U.S. Government obligations, which the Fund cannot sell or re-pledge and accordingly are not reflected in the Consolidated Portfolio of Investments. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.
(c) Security trades on the Hong Kong exchange.
(d) 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 nine months ended September 30, 2021, advisory fees paid were reduced by approximately $1,000 relating to the Fund's investment in the Liquidity Funds.
(e) Value is less than 0.05%.
(f) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(g) The approximate fair value and percentage of net assets, $471,000 and 1.6%, 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.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Multi-Asset Real Return Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

(h) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $767,000 and the aggregate gross unrealized depreciation is approximately $775,000, resulting in net unrealized depreciation of approximately $8,000.
@ Value is less than $500.
   
ADR American Depositary Receipt.
REIT Real Estate Investment Trust.

 

Futures Contracts:
The Fund had the following futures contracts open at September 30, 2021:  

 

   Number
of
Contracts		   Expiration
Date		  Notional
Amount
(000)		   Value
(000)		   Unrealized
Appreciation
(000)		 
Long:                       
GOLD 100 OZ (United States)             21   Dec-21  $          2   $3,690   $         15 
                        
Short:                       
Copper Future (United States)   14   Dec-21   (350)   (1,431)   1 
                     $16 

 

Total Return Swap Agreements:
The Fund had the following total return swap agreements open at September 30, 2021:    

 

Swap Counterparty  Index  Pay/Receive
Total Return
of Referenced
Index		  Floating
Rate		  Payment
Frequency		  Maturity
Date		  Notional
Amount		   Value
(000)		   Upfront
Payment
Paid
(000)		   Unrealized
Appreciation
(000)		 
Goldman Sachs International  S&P GSCI Index  Pay  3 Month USD LIBOR plus 0.09%  Quarterly  9/2/22  $790   $2,159   $2,039   $120 
Goldman Sachs International  S&P GSCI Index  Pay  3 Month USD LIBOR plus 0.09%  Quarterly  9/2/22   450    1,230    1,158    72 
                       $3,389   $3,197   $192 

 

Interest Rate Swap Agreement:
The Fund had the following interest rate swap agreement open at September 30, 2021:    

 

Swap Counterparty  Floating Rate
Index		  Pay/Receive
Floating Rate		  Fixed
Rate		   Payment
Frequency
Paid/
Received		  Maturity
Date		  Notional
Amount
(000)		   Value
(000)		   Upfront
Payment
Paid
(000)		   Unrealized
Appreciation
(000)		 
Morgan Stanley & Co. LLC*  1 Month TIIE  Pay   2.54%  Quarterly/
Quarterly		  9/2/31  $15,413   $148   $—   $148 

 

* Cleared swap agreement, the broker is Morgan Stanley & Co. LLC.
USD United States Dollar.

 

 

 

 

Portfolio Composition*

 

Classification  Percentage of
Total Investments		 
U.S. Treasury Security   36.5%
Short-Term Investments   25.4 
Other**   11.6 
Metals & Mining   11.1 
Oil, Gas & Consumable Fuels   9.9 
Investment Companies   5.5 
Total Investments   100.0%***

 

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2021.
** Industries and/or investment types representing less than 5% of total investments.
*** Does not include open long/short futures contracts with a value of approximately $5,121,000 and net unrealized appreciation of approximately $16,000. Also does not include open swap agreements with net unrealized appreciation of approximately $340,000.

 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Next Gen Emerging Markets Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

      Value 
   Shares   (000) 
Common Stocks  (97.7%)          
Argentina  (1.8%)          
Globant SA (a)   11,331   $3,184 
           
Bangladesh  (1.3%)          
Brac Bank Ltd.   4,099,630    2,278 
           
Egypt  (3.6%)          
Cairo Investment & Real Estate Development Co. SAE   355,254    274 
Commercial International Bank Egypt SAE (a)   632,917    1,712 
Fawry for Banking & Payment Technology Services SAE (a)   4,786,187    4,322 
         6,308 
Germany  (1.7%)          
Global Fashion Group SA (a)   269,524    2,993 
           
Kazakhstan  (6.5%)          
Kaspi.KZ JSC GDR   25,392    2,707 
NAC Kazatomprom JSC GDR   247,540    8,704 
         11,411 
Kenya  (3.9%)          
Safaricom PLC   17,821,185    6,854 
           
Morocco  (1.0%)          
Label Vie   3,674    1,736 
           
Nigeria  (0.6%)          
Nestle Nigeria PLC   405,894    1,010 
           
Poland  (12.2%)          
11 bit studios SA (a)   30,113    3,063 
Allegro.eu SA (a)   174,628    2,536 
Grupa Kety SA   31,980    5,104 
LiveChat Software SA   155,998    4,165 
LPP SA   1,733    6,454 
         21,322 
Romania  (1.6%)          
Banca Transilvania SA   4,378,343    2,746 
           
Russia  (15.7%)          
Fix Price Group Ltd. GDR   623,374    5,590 
Ozon Holdings PLC ADR (a)   97,603    4,924 
TCS Group Holding PLC GDR   93,072    8,463 
Yandex N.V., Class A (a)   107,132    8,537 
         27,514 
Singapore  (8.4%)          
Sea Ltd. ADR (a)   45,734    14,577 
           
South Africa  (6.6%)          
Anglo American PLC   77,890    2,748 
Capitec Bank Holdings Ltd.   50,141    6,080 
Northam Platinum Holdings Ltd. (a)   229,211    2,729 
         11,557 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Next Gen Emerging Markets Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

United Kingdom  (2.9%)          
Avast PLC   71,536    547 
Mondi PLC   184,171    4,535 
         5,082 
United States  (19.3%)          
EPAM Systems, Inc. (a)   3,244    1,851 
Freshworks, Inc., Class A (a)   108,703    4,640 
Grid Dynamics Holdings, Inc. (a)   298,661    8,727 
MercadoLibre, Inc. (a)   4,478    7,520 
SEMrush Holdings, Inc., Class A (a)   215,011    4,958 
Unity Software, Inc. (a)   48,466    6,119 
         33,815 
Vietnam  (10.6%)          
Bank for Foreign Trade of Vietnam JSC   625,910    2,674 
FPT Corp.   804,001    3,515 
Mobile World Investment Corp.   1,102,394    6,623 
Sai Gon Cargo Service Corp.   220,170    1,317 
Vietnam Dairy Products JSC   1,117,592    4,390 
         18,519 
Total Investments (97.7%) (Cost $139,797) (b)(c)(d)        170,906 
Other Assets in Excess of Liabilities (2.3%)        4,025 
Net Assets (100.0%)       $174,931 

 

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)The approximate fair value and percentage of net assets, $93,370,000 and 53.4%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in the Notes to the Portfolio of Investments.
(c)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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(d)At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $37,661,000 and the aggregate gross unrealized depreciation is approximately $6,639,000, resulting in net unrealized appreciation of approximately $31,022,000.
  
ADRAmerican Depositary Receipt.
GDRGlobal Depositary Receipt.

 

Futures Contracts:    
The Fund had the following futures contract open at September 30, 2021:    
     
   Number            Unrealized 
   of   Expiration   Notional Amount   Value   Depreciation 
    Contracts    Date    (000)    (000)    (000)
Long:                         
MSCI Emerging Market E Mini (United States)   32    Dec-21   $2   $1,993   $(87)

 

 

 

 

Portfolio Composition

 

   Percentage of 
Classification  Total Investments 
Other*   24.3%
Banks   14.0 
Information Technology Services   12.6 
Software   12.0 
Internet & Direct Marketing Retail   10.5 
Entertainment   10.3 
Metals & Mining   6.2 
Oil, Gas & Consumable Fuels   5.1 
Interactive Media & Services   5.0 
Total Investments   100.0%**

 

*Industries and/or investment types representing less than 5% of total investments.
**Does not include open long futures contract with a value of approximately $1,993,000 and unrealized depreciation of approximately $87,000.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Permanence Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks (96.6%)          
Aerospace & Defense (11.0%)          
Axon Enterprise, Inc. (a)   1,378   $241 
HEICO Corp., Class A   1,206    143 
Lockheed Martin Corp.   117    40 
         424 
Capital Markets (3.5%)          
Intercontinental Exchange, Inc.   322    37 
S&P Global, Inc.   232    99 
         136 
Chemicals (2.4%)          
Ecolab, Inc.   178    37 
Sherwin-Williams Co. (The)   205    57 
         94 
Commercial Services & Supplies (4.4%)          
Cintas Corp.   99    38 
Copart, Inc. (a)   279    39 
Rollins, Inc.   2,704    95 
         172 
Construction Materials (0.9%)          
Martin Marietta Materials, Inc.   104    36 
           
Containers & Packaging (1.0%)          
Ball Corp.   448    40 
           
Distributors (1.0%)          
Pool Corp.   86    37 
           
Diversified Consumer Services (1.5%)          
Service Corp. International   978    59 
           
Entertainment (4.9%)          
Activision Blizzard, Inc.   737    57 
Walt Disney Co. (The) (a)   778    132 
         189 
Equity Real Estate Investment Trusts (REITs) (2.4%)          
American Tower Corp. REIT   351    93 
           
Food & Staples Retailing (3.5%)          
Costco Wholesale Corp.   304    137 
           
Health Care Equipment & Supplies (7.5%)          
Danaher Corp.   459    140 
IDEXX Laboratories, Inc. (a)   88    55 
Intuitive Surgical, Inc. (a)   95    94 
         289 
Health Care Technology (3.4%)          
Veeva Systems, Inc., Class A (a)   455    131 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Permanence Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Hotels, Restaurants & Leisure (4.4%)          
Domino's Pizza, Inc.   196    93 
McDonald's Corp.   168    41 
Starbucks Corp.   336    37 
         171 
Household Products (1.0%)          
Colgate-Palmolive Co.   521    39 
           
Industrial Conglomerates (1.5%)          
Roper Technologies, Inc.   129    58 
           
Insurance (1.5%)          
Progressive Corp. (The)   637    58 
           
Internet & Direct Marketing Retail (4.7%)          
Amazon.com, Inc. (a)   56    184 
           
Life Sciences Tools & Services (1.0%)          
Thermo Fisher Scientific, Inc.   70    40 
           
Metals & Mining (0.8%)          
Royal Gold, Inc.   321    31 
           
Oil, Gas & Consumable Fuels (1.0%)          
Texas Pacific Land Corp.   32    39 
           
Pharmaceuticals (3.4%)          
Royalty Pharma PLC, Class A (United Kingdom)   2,568    93 
Zoetis, Inc.   195    38 
         131 
Professional Services (1.0%)          
CoStar Group, Inc. (a)   462    40 
           
Semiconductors & Semiconductor Equipment (5.8%)          
ASML Holding N.V. (Registered)   300    223 
           
Software (17.8%)          
Cadence Design Systems, Inc. (a)   244    37 
Constellation Software, Inc.   119    195 
Guidewire Software, Inc. (a)   331    39 
salesforce.com, Inc. (a)   492    134 
Synopsys, Inc. (a)   124    37 
Topicus.com, Inc. (a)   1,477    155 
Tyler Technologies, Inc. (a)   201    92 
         689 
Specialty Retail (2.7%)          
AutoZone, Inc. (a)   39    66 
Home Depot, Inc. (The)   118    39 
         105 
Textiles, Apparel & Luxury Goods (0.9%)          
NIKE, Inc., Class B   229    33 
           
Trading Companies & Distributors (1.7%)          
Fastenal Co.   693    36 
Watsco, Inc.   118    31 
         67 
Total Common Stocks (Cost $3,005)        3,745 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Permanence Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Investment Company (0.6%)          
Grayscale Bitcoin Trust (a) (Cost $31)   720    24 
           
Short-Term Investment (1.2%)          
Investment Company (1.2%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class  (b) (Cost  $48)   48,300    48 
Total Investments Excluding Purchased Options (98.4%) (Cost $3,084)        3,817 
Total Purchased Options Outstanding (0.1%) (Cost $18)        4 
Total Investments (98.5%) (Cost $3,102) (c)(d)        3,821 
Other Assets in Excess of Liabilities (1.5%)        56 
Net Assets (100.0%)       $3,877 

 

(a) Non-income producing security.
(b) 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 nine months ended September 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.
(c) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(d) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $774,000 and the aggregate gross unrealized depreciation is approximately $55,000, resulting in net unrealized appreciation of approximately $719,000.
REIT Real Estate Investment Trust.

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

Permanence Portfolio

Consolidated Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Call Options Purchased:

The Fund had the following call options purchased open at September 30, 2021:

 

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 7.42  Jan - 22  800,000    800   $—@   $3   $(3)
Goldman Sachs International  USD/CNH  CNH 7.57  Mar - 22  694,590    695    —@    4    (4)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.28  Jul - 22  827,282    827    2    4    (2)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.31  Aug - 22  384,147    384    1    3    (2)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.38  Jul - 22  241,439    241    1    1    (—@)
JP Morgan Chase Bank NA  USD/CNH  CNH 7.70  Nov - 21  700,000    700    —@    3    (3)
                       $4   $18   $(14)

 

@   Value is less than $500.
CNH – Chinese Yuan Renminbi Offshore
USD – United States Dollar

 

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Other*   52.5%
Software   18.0 
Aerospace & Defense   11.1 
Health Care Equipment & Supplies   7.6 
Semiconductors & Semiconductor Equipment   5.8 
Entertainment   5.0 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

US Core Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks (97.4%)          
Banks (14.3%)          
First Republic Bank   22,488   $4,337 
JPMorgan Chase & Co.   18,609    3,046 
SVB Financial Group (a)   5,460    3,532 
         10,915 
Building Products (0.7%)          
Fortune Brands Home & Security, Inc.   6,367    569 
           
Capital Markets (4.7%)          
Ameriprise Financial, Inc.   13,633    3,601 
           
Commercial Services & Supplies (3.1%)          
Waste Management, Inc.   16,119    2,407 
           
Diversified Telecommunication Services (1.2%)          
SBA Communications Corp. REIT   2,889    955 
           
Electric Utilities (2.1%)          
NextEra Energy, Inc.   20,327    1,596 
           
Equity Real Estate Investment Trusts (REITs) (3.7%)          
STORE Capital Corp. REIT   88,710    2,841 
           
Food & Staples Retailing (2.8%)          
Costco Wholesale Corp.   4,786    2,151 
           
Health Care Equipment & Supplies (9.2%)          
Danaher Corp.   12,065    3,673 
Edwards Lifesciences Corp. (a)   6,700    759 
West Pharmaceutical Services, Inc.   6,054    2,570 
         7,002 
Health Care Providers & Services (1.1%)          
Cigna Corp.   4,105    822 
           
Health Care Technology (1.8%)          
Veeva Systems, Inc., Class A (a)   4,769    1,374 
           
Hotels, Restaurants & Leisure (7.7%)          
Carnival Corp. (a)   13,670    342 
Domino's Pizza, Inc.   4,125    1,967 
McDonald's Corp.   2,186    527 
MGM Resorts International   39,137    1,689 
Planet Fitness, Inc., Class A (a)   17,732    1,393 
         5,918 
Household Durables (0.4%)          
Lennar Corp., Class A   3,211    301 
           
Information Technology Services (3.0%)          
Euronet Worldwide, Inc. (a)   6,048    770 
Mastercard, Inc., Class A   4,307    1,497 
         2,267 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

US Core Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Insurance (2.2%)          
Brown & Brown, Inc.   12,551    696 
Progressive Corp. (The)   10,823    978 
         1,674 
Interactive Media & Services (7.5%)          
Alphabet, Inc., Class A (a)   2,042    5,459 
Match Group, Inc. (a)   1,604    252 
         5,711 
Oil, Gas & Consumable Fuels (4.7%)          
Chevron Corp.   31,738    3,220 
Valero Energy Corp.   5,286    373 
         3,593 
Personal Products (2.9%)          
Estee Lauder Cos., Inc. (The), Class A   7,355    2,206 
           
Software (8.4%)          
Microsoft Corp.   22,900    6,456 
           
Specialty Retail (1.5%)          
Home Depot, Inc. (The)   3,470    1,139 
           
Tech Hardware, Storage & Peripherals (8.0%)          
Apple, Inc.   43,068    6,094 
           
Textiles, Apparel & Luxury Goods (2.1%)          
Lululemon Athletica, Inc. (a)   4,049    1,639 
           
Trading Companies & Distributors (4.3%)          
United Rentals, Inc. (a)   9,289    3,260 
Total Common Stocks (Cost $57,115)        74,491 
           
Short-Term Investment (2.8%)          
Investment Company (2.8%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Securities Portfolio - Institutional Class (b) (Cost $2,147)   2,146,575    2,147 
Total Investments (100.2%) (Cost $59,262) (c)(d)        76,638 
Liabilities in Excess of Other Assets (-0.2%)        (130)
Net Assets (100.0%)       $76,508 

 

(a) Non-income producing security.
(b) 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 nine months ended September 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.
(c) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(d) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $17,543,000 and the aggregate gross unrealized depreciation is approximately $167,000, resulting in net unrealized appreciation of approximately $17,376,000.
REIT Real Estate Investment Trust.

 

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Other*   45.1%
Banks   14.2 
Health Care Equipment & Supplies   9.1 
Software   8.4 
Tech Hardware, Storage & Peripherals   8.0 
Hotels, Restaurants & Leisure   7.7 
Interactive Media & Services   7.5 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

U.S. Real Estate Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)

 

   Shares   Value
(000)		 
Common Stocks (102.1%)          
Apartments (13.4%)          
AvalonBay Communities, Inc. REIT   8,823   $1,956 
Equity Residential REIT   22,816    1,846 
UDR, Inc. REIT   41,246    2,185 
         5,987 
Data Centers (8.8%)          
Equinix, Inc. REIT   4,657    3,679 
GDS Holdings Ltd. ADR (China) (a)   4,146    235 
         3,914 
Free Standing (7.4%)          
Agree Realty Corp. REIT   9,725    644 
NETSTREIT Corp. REIT   38,910    920 
Realty Income Corp. REIT   26,921    1,746 
         3,310 
Health Care (15.5%)          
Healthcare Trust of America, Inc., Class A REIT   21,243    630 
Healthpeak Properties, Inc. REIT   54,504    1,825 
Medical Properties Trust, Inc. REIT   42,192    847 
Ventas, Inc. REIT   24,619    1,359 
Welltower, Inc. REIT   27,273    2,247 
         6,908 
Industrial (11.9%)          
Exeter Industrial Value Fund, LP (a)(b)(c)   7,905,000    547 
Prologis, Inc. REIT   38,105    4,780 
         5,327 
Lodging/Resorts (2.6%)          
Boyd Gaming Corp. (a)   11,929    755 
Caesars Entertainment, Inc. (a)   3,473    390 
         1,145 
Manufactured Homes (4.7%)          
Equity Lifestyle Properties, Inc. REIT   6,479    506 
Sun Communities, Inc. REIT   8,709    1,612 
         2,118 
Office (6.7%)          
Alexandria Real Estate Equities, Inc. REIT   7,218    1,379 
Empire State Realty Trust, Inc., Class A REIT   82,355    826 
Kilroy Realty Corp. REIT   12,026    797 
         3,002 
Self Storage (13.3%)          
Extra Space Storage, Inc. REIT   9,203    1,546 
Life Storage, Inc. REIT   10,087    1,157 
Public Storage REIT   10,840    3,221 
         5,924 

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

U.S. Real Estate Portfolio

Portfolio of Investments

Third Quarter Report

September 30, 2021 (unaudited)(cont’d)

 

Shopping Centers (9.6%)          
Brixmor Property Group, Inc. REIT   42,667    943 
Kimco Realty Corp. REIT   55,351    1,149 
Kite Realty Group Trust REIT   25,437    518 
Retail Properties of America, Inc., Class A REIT   49,444    637 
RPT Realty REIT   48,885    624 
SITE Centers Corp. REIT   27,294    421 
         4,292 
Single Family Homes (3.1%)          
Invitation Homes, Inc. REIT   36,046    1,382 
           
Specialty (5.1%)          
Lamar Advertising Co., Class A REIT   8,012    909 
VICI Properties, Inc. REIT   48,658    1,382 
         2,291 
Total Common Stocks (Cost $39,019)        45,600 
           
Short-Term Investment (0.4%)          
Investment Company (0.4%)          
Morgan Stanley Institutional Liquidity Funds - Treasury Portfolio - Institutional Class (d) (Cost $198)   198,412    198 
Total Investments (102.5%) (Cost $39,217) (e)(f)        45,798 
Liabilities in Excess of Other Assets (-2.5%)        (1,109)
Net Assets (100.0%)       $44,689 

 

(a) Non-income producing security.
(b) At September 30, 2021, the Fund held a fair valued security valued at approximately $547,000, representing 1.2% 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.
(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 approximately $0. At September 30, 2021, this security had an aggregate market value of approximately $547,000, representing 1.2% of net assets.
(d) 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 nine months ended September 30, 2021, advisory fees paid were reduced by less than $500 relating to the Fund's investment in the Liquidity Funds.
(e) 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 nine months ended September 30, 2021, the Fund did not engage in any cross-trade transactions.
(f) At September 30, 2021, the aggregate cost for federal income tax purposes approximates the aggregate cost for book purposes. The aggregate gross unrealized appreciation is approximately $7,333,000 and the aggregate gross unrealized depreciation is approximately $752,000, resulting in net unrealized appreciation of approximately $6,581,000.
   
ADR American Depositary Receipt.
REIT Real Estate Investment Trust.

 

 

 

 

Portfolio Composition

 

Classification  Percentage of
Total Investments		 
Health Care   15.1%
Apartments   13.1 
Self Storage   12.9 
Industrial   11.6 
Other*   10.6 
Shopping Centers   9.4 
Data Centers   8.5 
Free Standing   7.2 
Office   6.6 
Specialty   5.0 
Total Investments   100.0%

 

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

 

 

 

 

Morgan Stanley Institutional Fund, Inc.

 

Notes to the Portfolio of Investments ▪ September 30, 2021 (unaudited)

 

In March 2020, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update, ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”), which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate ("LIBOR") and other Interbank Offered Rate (“IBOR”) based reference rates at the end of 2021. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period from March 12, 2020 through December 31, 2022. Management is evaluating the impact of ASU 2020-04 on the Fund's investments, derivatives, debt and other contracts that will undergo reference rate-related modifications as a result of the reference rate reform.

 

Security Valuation: (1) 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; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), and if there were no sales on a given day and if there is no official exchange closing price for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant exchanges. If only bid prices are available then the latest bid price may be used. Listed equity securities not traded on the valuation date with no reported bid and asked prices available on the exchange are valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (3) all other equity portfolio securities for which over-the-counter (“OTC”) market quotations are readily available are valued at the latest reported sales price (or at the market official closing price if such market reports an official closing price), and if there was no trading in the security on a given day and if there is no official closing price from relevant markets for that day, the security is valued at the mean between the last reported bid and asked prices if such bid and asked prices are available on the relevant markets. An unlisted equity security that does not trade on the valuation date and for which bid and asked prices from the relevant markets are unavailable is valued at the mean between the current bid and asked prices obtained from one or more reputable brokers or dealers; (4) futures are valued at the settlement price on the exchange on which they trade or, if a settlement price is unavailable, at the last sale price on the exchange; (5) OTC swaps may be valued by an outside pricing service approved by the 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; (6) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between its latest bid and ask prices. Unlisted options are valued at the mean between their latest bid and ask prices from a broker/dealer or valued by a pricing service/vendor; (7) when market quotations are not readily available, including circumstances under which the Adviser or Sub-Advisers determine 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; (8) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (9) PIPE investments may be valued based on the underlying stock price less a discount until the commitment is fulfilled and shares are registered; and (10) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value 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.

 

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

 

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

 

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

 

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

 

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

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
                 
Active International Allocation        
Assets:        
Common Stocks                    
Aerospace & Defense  $—   $3,559   $—   $3,559 
Airlines   1,175    —    —    1,175 
Automobiles   —    1,184    —    1,184 
Banks   —    2,321    —    2,321 
Beverages   2,308    7,079    —    9,387 
Biotechnology   1,469    —    —    1,469 
Chemicals   1,054    6,377    —    7,431 
Electrical Equipment   —    702    —    702 
Electronic Equipment, Instruments & Components   634    3,343    —    3,977 
Energy Equipment & Services   1,370    1,478    —    2,848 
Entertainment   26,450    4,570    —    31,020 
Food Products   —    1,696    —    1,696 
Health Care Equipment & Supplies   2,599    8,758    —    11,357 
Health Care Providers & Services   —    2,748    —    2,748 
Hotels, Restaurants & Leisure   8,436    1,554    —    9,990 
Household Durables   2,792    8,641    —    11,433 
Household Products   —    589    —    589 
Information Technology Services   978    6,583    —    7,561 
Insurance   —    1,307    —    1,307 
Interactive Media & Services   2,065    5,762    —    7,827 
Internet & Direct Marketing Retail   11,214    2,320    —    13,534 
Leisure Products   —    1,271    —    1,271 
Life Sciences Tools & Services   2,206    —    —    2,206 
Machinery   —    6,656    —    6,656 
Metals & Mining   13,168    12,631    —    25,799 
Oil, Gas & Consumable Fuels   1,268    1,678    —    2,946 
Personal Products   1,673    7,659    —    9,332 
Pharmaceuticals   —    12,795    —    12,795 
Professional Services   —    4,708    —    4,708 
Real Estate Management & Development   1,266    —    —@    1,266 
Semiconductors & Semiconductor Equipment   2,712    11,518    —    14,230 
Software   —    2,167    —    2,167 
Tech Hardware, Storage & Peripherals   —    6,464    —    6,464 
Textiles, Apparel & Luxury Goods   1,457    3,508    —    4,965 
Total Common Stocks   86,294    141,626    —@    227,920 
Investment Company   966    —    —    966 
Short-Term Investments                    
Investment Company   38    —    —    38 
Repurchase Agreements   —    9    —    9 
Total Short-Term Investments   38    9    —    47 
Foreign Currency Forward Exchange Contract   —    39    —    39 
Total Assets   87,298    141,674    —@    228,972 
Liabilities:                    
Foreign Currency Forward Exchange Contracts   —    (101)   —    (101)
Total  $87,298  $141,573   $—@   $228,871 

 

@ Value is less than $500.

 

 

 

 

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

 

Active International Allocation   Common
Stock
(000)		 
Beginning Balance  $—@ 
Purchases   — 
Sales   — 
Amortization of discount   — 
Transfers in   — 
Transfers out   — 
Corporate actions   — 
Change in unrealized appreciation (depreciation)          —@ 
Realized gains (losses)   — 
Ending Balance  $—@  
      
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $—@ 

 

@ Value is less than $500.    

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Advantage                    
Assets:                    
Common Stocks                    
Aerospace & Defense  $25,022   $—   $—   $25,022 
Entertainment   41,063    —    —    41,063 
Food & Staples Retailing   23,754    —    —    23,754 
Health Care Equipment & Supplies   60,510    —    —    60,510 
Health Care Technology   46,866    —    —    46,866 
Hotels, Restaurants & Leisure   16,671    —    —    16,671 
Information Technology Services   221,851    16,831    —    238,682 
Interactive Media & Services   179,881    —    —    179,881 
Internet & Direct Marketing Retail   69,080    —    —    69,080 
Metals & Mining   2,174    —    —    2,174 
Pharmaceuticals   22,883    —    —    22,883 
Road & Rail   25,224    —    —    25,224 
Semiconductors & Semiconductor Equipment   31,735    —    —    31,735 
Software   135,436    —    —    135,436 
Textiles, Apparel & Luxury Goods   10,640    —    —    10,640 
Total Common Stocks   912,790    16,831    —    929,621 
Call Options Purchased   —    1,050    —    1,050 
Investment Company   6,655    —    —    6,655 
Short-Term Investment                    
Investment Company   22,991    —    —    22,991 
Total Assets  $942,436   $17,881   $—   $960,317 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Asia Opportunity                    
Assets:                    
Common Stocks                    
Banks  $52,894   $75,123   $—   $128,017 
Beverages   —    53,591    —    53,591 
Construction Materials   —    10,901    —    10,901 
Consumer Finance   11,078    —    —    11,078 
Diversified Consumer Services   —    2,699    —    2,699 
Entertainment   9,276    —    —    9,276 
Food Products   —    40,780    —    40,780 
Health Care Providers & Services   1,053    —    —    1,053 
Hotels, Restaurants & Leisure   27,626    15,373    —    42,999 
Household Durables   —    10,396    —    10,396 
Insurance   —    22,124    —    22,124 
Interactive Media & Services   —    64,065    —    64,065 
Internet & Direct Marketing Retail   29,458    36,544    —    66,002 
Real Estate Management & Development   22,206    2,873    —    25,079 
Semiconductors & Semiconductor Equipment   —    33,104    —    33,104 
Software   3,092    10,240    —    13,332 
Textiles, Apparel & Luxury Goods   —    18,388    —    18,388 
Total Common Stocks   156,683    396,201    —    552,884 
Call Options Purchased   —    968    —    968 
Investment Company   4,055    —    —    4,055 
Short-Term Investments                    
Investment Company   19,711    —    —    19,711 
Repurchase Agreements   —    1,032    —    1,032 
Total Short-Term Investments   19,711    1,032    —    20,743 
Total Assets  180,449   398,201   —   578,650 
Liabilities:                    
Derivative Contract — PIPE   —    —    (460)   (460)
Total  $180,449   $398,201   $(460)  $578,190 
                     

 

 

 

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

 

Asia Opportuntiy  Derivative
Contract —
PIPE
(000)		 
Beginning Balance  $— 
Purchases   — 
Sales   — 
PIPE transactions   (460)
Amortization of discount   — 
Transfers in   — 
Transfers out   — 
Corporate actions   — 
Change in unrealized appreciation (depreciation)   — 
Realized gains (losses)   — 
Ending Balance  $(460)
      
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $(460)

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021:

 

Asia Opportunity  Fair Value at September 30, 2021
(000)		   Valuation
Technique		  Unobservable
Input		  Amount*   Impact to
Valuation from an
Increase in Input**
PIPE  $(460)  Market Implied  Discount for Lack of Marketability and Transaction Risk   10.0%  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.

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
China Equity                    
Assets:                    
Common Stocks                    
Banks  $—   $446   $—   $446 
Beverages   —    1,492    —    1,492 
Biotechnology   —    197    —    197 
Electrical Equipment   —    236    —    236 
Entertainment   —    397    —    397 
Food Products   —    1,133    —    1,133 
Health Care Equipment & Supplies   —    197    —    197 
Health Care Providers & Services   —    510    —    510 
Household Durables   —    541    —    541 
Interactive Media & Services   —    2,072    —    2,072 
Internet & Direct Marketing Retail   329    1,803    —    2,132 
Life Sciences Tools & Services   —    251    —    251 
Machinery   —    206    —    206 
Personal Products   —    217    —    217 
Pharmaceuticals   —    257    —    257 
Real Estate Management & Development   108    —    —    108 
Specialty Retail   —    54    —    54 
Textiles, Apparel & Luxury Goods   —    459    —    459 
Total Common Stocks   437    10,468    —    10,905 
Short-Term Investment                    
Investment Company   978    —    —    978 
Total Assets  $1,415   $10,468   $—   $11,883 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Counterpoint Global                    
Assets:                    
Common Stocks                    
Aerospace & Defense  $253   $131   $—   $384 
Air Freight & Logistics   —    428    —    428 
Banks   522    30    —    552 
Beverages   39    247    —    286 
Biotechnology   404    130    —    534 
Capital Markets   179    —    —    179 
Chemicals   43    67    —    110 
Commercial Services & Supplies   64    56    —    120 
Construction Materials   16    9    —    25 
Consumer Finance   7    —    —    7 
Containers & Packaging   9    —    —    9 
Distributors   3    —    —    3 
Diversified Consumer Services   102    3    —    105 
Diversified Financial Services   7    79    —    86 
Diversified Holding Companies   302    —    —    302 
Diversified Telecommunication Services   86    —    —    86 
Electronic Equipment, Instruments & Components   —    179    —    179 
Entertainment   1,822    8    —    1,830 
Equity Real Estate Investment Trusts (REITs)   27    —    —    27 
Food & Staples Retailing   68    127    —    195 
Food Products   30    123    —    153 
Health Care Equipment & Supplies   299    184    —    483 
Health Care Providers & Services   711    15    —    726 
Health Care Technology   660    —    —    660 
Hotels, Restaurants & Leisure   136    196    —    332 
Household Durables   276    327    —    603 
Household Products   3    53    —    56 
Industrial Conglomerates   4    —    —    4 
Information Technology Services   4,068    418    —    4,486 
Insurance   53    83    —    136 
Interactive Media & Services   1,573    190    —    1,763 
Internet & Direct Marketing Retail   2,711    422    —    3,133 
Leisure Products   15    —    —    15 
Life Sciences Tools & Services   290    186    —    476 
Machinery   28    —    —    28 
Marine   —    64    —    64 
Media   165    —    —    165 
Metals & Mining   80    —    —    80 
Multi-Line Retail   10    —    —    10 
Multi-Utilities   84    —    —    84 
Oil, Gas & Consumable Fuels   23    —    —    23 
Personal Products   —    67    —    67 
Pharmaceuticals   515    6    —    521 
Professional Services   37    —    —    37 
Real Estate Management & Development   415    —    —    415 
Road & Rail   245    —    —    245 
Semiconductors & Semiconductor Equipment   203    342    —    545 
Software   2,876    279    —    3,155 
Specialty Retail   819    —    —    819 
Textiles, Apparel & Luxury Goods   129    847    —    976 
Trading Companies & Distributors   15    —    —    15 
Transportation Infrastructure   22    20    —    42 
Total Common Stocks   20,448    5,316    —    25,764 
Preferred Stocks                    
Internet & Direct Marketing Retail   12    —    —    12 
Software   —    —    44    44 
Total Preferred Stocks   12    —    44    56 
Investment Companies   171    73    —    244 
Warrants   2†   —    —    2†
Call Options Purchased   —    21    —    21 
Short-Term Investment                    
Investment Company   1,779    —    —    1,779 
Total Assets  22,412†  5,410   44   27,866†
Liabilities:                    
Derivative Contracts — PIPE   —    —    (18)   (18)
Total  $22,412†  $5,410   $26   $27,848†

 

† Includes a security valued at zero.

 

 

 

 

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

 

Counterpoint Global  Preferred
Stock
(000)		   Derivative
Contracts —
PIPE
(000)		 
Beginning Balance  $—   $— 
Purchases   44    — 
Sales   —    — 
PIPE transactions   —    (18)
Amortization of discount   —    — 
Transfers in   —    — 
Transfers out   —    — 
Corporate actions   —    — 
Change in unrealized appreciation (depreciation)   —    — 
Realized gains (losses)   —    — 
Ending Balance  $44   $(18)
           
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $—   $(18)

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance.

 

Counterpoint Global  Fair Value at
September 30, 2021
(000)		   Valuation
Technique		  Unobservable
Input		  Amount or Range/
Weighted Average*		  Impact to
Valuation from an
Increase in Input**
Preferred Stock  $44   Market Transaction Method  Precedent Transaction  $220.45  Increase
PIPEs  $(18)  Market Implied  Discount for Lack of Marketability and Transaction Risk  10.0% - 13.5% / 10.7%  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.

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Developing Opportunity                    
Assets:                    
Common Stocks                    
Banks  $20,308   $41,855   $—   $62,163 
Beverages   —    17,685    —    17,685 
Capital Markets   3,042    —    —    3,042 
Construction Materials   —    5,311    —    5,311 
Consumer Finance   3,504    —    —    3,504 
Diversified Consumer Services   —    1,321    —    1,321 
Entertainment   3,428    —    —    3,428 
Food Products   —    11,581    —    11,581 
Health Care Providers & Services   87    —    —    87 
Hotels, Restaurants & Leisure   11,794    5,068    —    16,862 
Household Durables   —    2,291    —    2,291 
Information Technology Services   20,767    —    —    20,767 
Interactive Media & Services   4,162    26,928    —    31,090 
Internet & Direct Marketing Retail   30,823    16,111    —    46,934 
Multi-Line Retail   8,285    —    —    8,285 
Real Estate Management & Development   7,316    —    —    7,316 
Semiconductors & Semiconductor Equipment   —    16,345    —    16,345 
Textiles, Apparel & Luxury Goods   —    5,968    —    5,968 
Transportation Infrastructure   2,378    —    —    2,378 
Total Common Stocks   115,894    150,464    —    266,358 
Call Option Purchased   —    338    —    338 
Investment Company   1,816    —    —    1,816 
Short-Term Investment                    
Investment Company   8,788    —    —    8,788 
Total Assets   126,498    150,802    —    277,300 
Liabilities:                    
Derivative Contract — PIPE   —    —    (209)   (209)
Total  $126,498   $150,802   $(209)  $277,091 

 

 

 

 

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

 

Developing Opportunity  Derivative
Contract —
PIPE
(000)		 
Beginning Balance  $— 
Purchases   — 
Sales   — 
PIPE transactions   (209)
Amortization of discount   — 
Transfers in   — 
Transfers out   — 
Corporate actions   — 
Change in unrealized appreciation (depreciation)   — 
Realized gains (losses)   — 
Ending Balance  $(209)
      
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $(209)

 

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021:

 

Developing Opportunity  Fair Value at
September 30, 2021
(000)		   Valuation
Technique		  Unobservable
Input		  Amount*   Impact to
Valuation from
an Increase in
Input**
PIPE  $(209)  Market Implied  Discount for Lack of Marketability and Transaction Risk   10.0%  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.

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Emerging Markets                    
Assets:                    
Common Stocks                    
Airlines  $8,801   $—   $—   $8,801 
Automobiles   —    12,751    —    12,751 
Banks   16,026    77,407    —    93,433 
Beverages   —    15,750    —    15,750 
Capital Markets   —    8,284    —    8,284 
Chemicals   —    8,488    —    8,488 
Construction Materials   —    3,626    —    3,626 
Consumer Finance   —    2,338    —    2,338 
Electronic Equipment, Instruments & Components   —    19,584    —    19,584 
Entertainment   15,005    —    —    15,005 
Food & Staples Retailing   9,469    1,916    —    11,385 
Food Products   —    10,523    —    10,523 
Health Care Providers & Services   6,737    —    —    6,737 
Information Technology Services   26,802    8,018    —    34,820 
Insurance   —    5,598    —    5,598 
Interactive Media & Services   12,849    40,970    —    53,819 
Internet & Direct Marketing Retail   19,378    22,112    —    41,490 
Life Sciences Tools & Services   —    2,563    —    2,563 
Machinery   —    8,120    —    8,120 
Metals & Mining   —    27,874    —    27,874 
Multi-Line Retail   8,231    4,809    —    13,040 
Oil, Gas & Consumable Fuels   12,531    36,979    —    49,510 
Paper & Forest Products   —    13,309    —    13,309 
Personal Products   —    1,962    —    1,962 
Pharmaceuticals   —    3,618    —    3,618 
Semiconductors & Semiconductor Equipment   30,763    101,516    —    132,279 
Software   —    6,008    —    6,008 
Specialty Retail   —    6,583    —    6,583 
Tech Hardware, Storage & Peripherals   —    37,700    —    37,700 
Textiles, Apparel & Luxury Goods   7,022    25,358    —    32,380 
Thrifts & Mortgage Finance   —    14,162    —    14,162 
Transportation Infrastructure   9,859    —    —    9,859 
Wireless Telecommunication Services   —    2,053    —    2,053 
Total Common Stocks   183,473    529,979    —    713,452 
Rights   —    32    —    32 
Short-Term Investment                    
Investment Company   8,931    —    —    8,931 
Total Assets  $192,404   $530,011   $—   $722,415 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Emerging Markets Fixed Income Opportunities                    
Assets:                    
Fixed Income Securities                    
Corporate Bonds  $—   $10,669   $—   $10,669 
Sovereign   —    24,779    —    24,779 
Supranational   —    248    —    248 
Total Fixed Income Securities   —    35,696    —    35,696 
Warrant   —    1    —    1 
Short-Term Investments                    
Investment Company   1,697    —    —    1,697 
Sovereign   —    225    —    225 
U.S. Treasury Security   —    30    —    30 
Total Short-Term Investments   1,697    255    —    1,952 
Foreign Currency Forward Exchange Contracts   —    34    —    34 
Total Assets   1,697    35,986    —    37,683 
Liabilities:                    
Foreign Currency Forward Exchange Contracts   —    (20)   —    (20)
Total  $1,697   $35,966   $—   $37,663 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Emerging Markets Leaders                    
Assets:                    
Common Stocks                    
Banks  $—   $20,676   $—   $20,676 
Beverages   —    7,842    —    7,842 
Capital Markets   —    2,319    —    2,319 
Chemicals   —    22,471    —    22,471 
Consumer Finance   —    20,686    —    20,686 
Electrical Equipment   —    10,570    —    10,570 
Entertainment   30,511    —    —    30,511 
Health Care Providers & Services   —    12,960    —    12,960 
Information Technology Services   27,168    5,668    —    32,836 
Interactive Media & Services   —    3,325    —    3,325 
Internet & Direct Marketing Retail   18,769    34,284    —    53,053 
Personal Products   —    5,832    —    5,832 
Semiconductors & Semiconductor Equipment   18,940    27,484    —    46,424 
Software   —    8,990    —    8,990 
Textiles, Apparel & Luxury Goods   8,878    19,946    —    28,824 
Total Common Stocks   104,266    203,053    —    307,319 
Short-Term Investment                    
Investment Company   9,481    —    —    9,481 
Total Assets  $113,747   $203,053   $—   $316,800 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type   Level 1
Unadjusted
quoted
prices
(000)		     Level 2
Other
significant
observable
inputs
(000)		     Level 3
Significant
unobservable
inputs
(000)		     Total
(000)		  
Global Concentrated                                
Assets:                                
Common Stocks                                
Automobiles   $ 5,951     $ —     $ —     $ 5,951  
Banks     21,487       —       —       21,487  
Capital Markets     3,477       —       —       3,477  
Commercial Services & Supplies     3,256       —       —       3,256  
Electric Utilities     2,865       —       —       2,865  
Equity Real Estate Investment Trusts (REITs)     6,477       —       —       6,477  
Food & Staples Retailing     2,877       —       —       2,877  
Health Care Equipment & Supplies     5,925       —       —       5,925  
Hotels, Restaurants & Leisure     6,307       —       —       6,307  
Information Technology Services     3,549       —       —       3,549  
Interactive Media & Services     5,630       —       —       5,630  
Internet & Direct Marketing Retail     3,804       —       —       3,804  
Personal Products     2,904       —       —       2,904  
Semiconductors & Semiconductor Equipment     5,273       —       —       5,273  
Software     7,877       —       —       7,877  
Textiles, Apparel & Luxury Goods     9,821       —       —       9,821  
Trading Companies & Distributors     5,212       —       —       5,212  
Total Common Stocks     102,692       —       —       102,692  
Short-Term Investment                                
Investment Company     1,043       —       —       1,043  
Total Assets   $ 103,735     $ —     $ —     $ 103,735  

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Global Core                    
Assets:                    
Common Stocks                    
Airlines  $203   $—   $—   $203 
Automobiles   620    —    —    620 
Banks   2,927    —    —    2,927 
Beverages   606    —    —    606 
Building Products   185    —    —    185 
Capital Markets   544    188    —    732 
Construction Materials   312    —    —    312 
Diversified Telecommunication Services   279    —    —    279 
Electric Utilities   451    —    —    451 
Entertainment   747    —    —    747 
Equity Real Estate Investment Trusts (REITs)   613    —    —    613 
Health Care Equipment & Supplies   825    —    —    825 
Health Care Technology   144    —    —    144 
Hotels, Restaurants & Leisure   881    —    —    881 
Information Technology Services   734    —    —    734 
Insurance   50    —    —    50 
Interactive Media & Services   874    —    —    874 
Internet & Direct Marketing Retail   556    —    —    556 
Metals & Mining   250    —    —    250 
Multi-Line Retail   347    —    —    347 
Oil, Gas & Consumable Fuels   813    —    —    813 
Personal Products   504    —    —    504 
Professional Services   348    —    —    348 
Semiconductors & Semiconductor Equipment   785    —    —    785 
Software   1,201    —    —    1,201 
Tech Hardware, Storage & Peripherals   1,309    —    —    1,309 
Textiles, Apparel & Luxury Goods   570    822    —    1,392 
Trading Companies & Distributors   294    —    —    294 
Total Common Stocks   17,972    1,010    —    18,982 
Short-Term Investment                    
Investment Company   330    —    —    330 
Total Assets  $18,302   $1,010   $—   $19,312 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Global Endurance                    
Assets:                    
Common Stocks                    
Aerospace & Defense  $—   $4,167   $—   $4,167 
Biotechnology   —    1,143    —    1,143 
Diversified Consumer Services   405    —    —    405 
Entertainment   3,554    —    —    3,554 
Food & Staples Retailing   —    2,181    —    2,181 
Health Care Equipment & Supplies   —    1,195    —    1,195 
Health Care Technology   4,360    —    —    4,360 
Hotels, Restaurants & Leisure   —    1,010    —    1,010 
Household Durables   9,223    4,253    —    13,476 
Information Technology Services   11,637    —    —    11,637 
Interactive Media & Services   2,160    —    —    2,160 
Internet & Direct Marketing Retail   5,186    225    —    5,411 
Life Sciences Tools & Services   —    2,608    —    2,608 
Media   3,080    —    —    3,080 
Pharmaceuticals   2,715    —    —    2,715 
Real Estate Management & Development   3,265    —    —    3,265 
Software   13,557    —    —    13,557 
Specialty Retail   7,522    —    —    7,522 
Total Common Stocks   66,664    16,782    —    83,446 
Short-Term Investment                    
Investment Company   1,473    —    —    1,473 
Total Assets  $68,137   $16,782   $—   $84,919 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Global Focus Real Estate                    
Assets:                    
Common Stocks                    
Diversified  $587   $635   $—   $1,222 
Health Care   367    93    —    460 
Industrial   285    308    —    593 
Industrial/Office Mixed   —    46    —    46 
Lodging/Resorts   109    —    —    109 
Office   51    235    —    286 
Residential   569    114    —    683 
Retail   575    72    —    647 
Self Storage   357    53    —    410 
Specialty   238    —    —    238 
Total Common Stocks   3,138    1,556    —    4,694 
Short-Term Investment                    
Investment Company   42    —    —    42 
Total Assets  $3,180   $1,556   $—   $4,736 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Global Franchise                    
Assets:                    
Common Stocks                    
Beverages  $58,446   $182,262   $—   $240,708 
Capital Markets   163,849    —    —    163,849 
Health Care Equipment & Supplies   595,843    —    —    595,843 
Household Products   154,333    223,634    —    377,967 
Industrial Conglomerates   70,816    —    —    70,816 
Information Technology Services   549,616    —    —    549,616 
Life Sciences Tools & Services   157,480    —    —    157,480 
Personal Products   36,718    55,223    —    91,941 
Pharmaceuticals   47,691    —    —    47,691 
Professional Services   —    122,717    —    122,717 
Software   322,743    154,147    —    476,890 
Textiles, Apparel & Luxury Goods   37,699    55,131    —    92,830 
Tobacco   284,972    71,461    —    356,433 
Total Common Stocks   2,480,206    864,575    —    3,344,781 
Short-Term Investment                    
Investment Company   81,702    —    —    81,702 
Total Assets  $2,561,908   $864,575   $—   $3,426,483 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Global Infrastructure                    
Assets:                    
Common Stocks                    
Airports  $8,915   $11,056   $—   $19,971 
Communications   51,995    14,026    —    66,021 
Diversified   757    18,184    —    18,941 
Electricity Transmission & Distribution   26,819    22,151    —    48,970 
Oil & Gas Storage & Transportation   71,262    12,030    —    83,292 
Railroads   —    7,115    —    7,115 
Renewables   —    7,770    —    7,770 
Toll Roads   —    23,045    —    23,045 
Utilities   11,275    —    —    11,275 
Water   7,717    5,692    —    13,409 
Total Common Stocks   178,740    121,069    —    299,809 
Short-Term Investment                    
Investment Company   9,062    —    —    9,062 
Total Assets  $187,802   $121,069   $—   $308,871 

 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
                 
Global Insight
Assets:
Common Stocks                    
Biotechnology  $6,056   $—   $—   $6,056 
Diversified Financial Services   —    8,743    —    8,743 
Diversified Holding Companies   14,673    5,713    —    20,386 
Entertainment   44,446    —    —    44,446 
Health Care Providers & Services   8,231    —    —    8,231 
Health Care Technology   6,274    —    —    6,274 
Hotels, Restaurants & Leisure   —    5,947    —    5,947 
Information Technology Services   84,478    25,767    —    110,245 
Interactive Media & Services   46,945    —    —    46,945 
Internet & Direct Marketing Retail   56,250    11,438    —    67,688 
Life Sciences Tools & Services   3,462    —    —    3,462 
Metals & Mining   954    —    —    954 
Pharmaceuticals   14,034    —    —    14,034 
Software   42,744    4,028    —    46,772 
Total Common Stocks   328,547    61,636    —    390,183 
Preferred Stock                    
Software   —    —    29    29 
Investment Company   2,833    —    —    2,833 
Call Options Purchased   —    451    —    451 
Short-Term Investments                    
Investment Company   22,549    —    —    22,549 
Repurchase Agreements   —    1,484    —    1,484 
Total Short-Term Investments   22,549    1,484    —    24,033 
Total Assets  353,929   63,571   29   417,529 
Liabilities:
Derivative Contracts — PIPE   —    —    (524)   (524)
Total  $353,929   $63,571   $(495)  $417,005 

 

 

 

 

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

 

Global Insight   Preferred
Stock
(000)		   Derivative
Contracts —
PIPE
(000)		 
Beginning Balance  $20   $— 
Purchases   —    — 
Sales   —    — 
PIPE transactions   —    (524)
Amortization of discount   —    — 
Transfers in   —    — 
Transfers out   —    — 
Corporate actions   —    — 
Change in unrealized appreciation (depreciation)   9    — 
Realized gains (losses)   —    — 
Ending Balance  $29   $(524)
           
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $9   $(524)

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance:

 

Global Insight  Fair Value at
September 30, 2021
(000)		   Valuation
Technique		  Unobservable
Input		  Amount or Range/
Weighted Average*		  Impact to Valuation
from an Increase in
Input**
Preferred Stock  $29   Discounted Cash Flow  Weighted Average Cost of Capital  12.5%  Decrease
           Perpetual Growth Rate  3.5%  Increase
                  
        Market Comparable Companies  Enterprise Value/Revenue  8.0x  Increase
           Discount for Lack of Marketability  12.0%  Decrease
                  
PIPE  $(524)  Market Implied  Discount for Lack of Marketability and Transaction Risk  10.0% - 11.0% / 10.4%  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.

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
                 
Global Opportunity
Assets:
Common Stocks                    
Air Freight & Logistics  $—   $416,410   $—   $416,410 
Banks   126,184    358,396    —    484,580 
Beverages   —    35,568    —    35,568 
Construction Materials   35,645    —    —    35,645 
Electronic Equipment, Instruments & Components   —    150,590    —    150,590 
Entertainment   512,708    —    —    512,708 
Food Products   —    58,178    —    58,178 
Health Care Equipment & Supplies   120,341    —    —    120,341 
Health Care Technology   —    77,271    —    77,271 
Hotels, Restaurants & Leisure   105,543    —    —    105,543 
Information Technology Services   1,764,277    —    —    1,764,277 
Interactive Media & Services   311,559    145,273    —    456,832 
Internet & Direct Marketing Retail   859,821    227,345    —    1,087,166 
Road & Rail   386,468    —    —    386,468 
Software   970,940    —    —    970,940 
Textiles, Apparel & Luxury Goods   —    414,648    —    414,648 
Total Common Stocks   5,193,486    1,883,679    —    7,077,165 
Call Options Purchased   —    2,994    —    2,994 
Investment Company   49,547    —    —    49,547 
Preferred Stock                    
Electronic Equipment, Instruments & Components   —    —    —†   —†
Short-Term Investment                    
Investment Company   194,674    —    —    194,674 
Total Assets   5,437,707    1,886,673    —†   7,324,380†
Liabilities:                    
Derivative Contract — PIPE   —    —    (4,835)   (4,835)
Total  $5,437,707   $1,886,673   $(4,835)†  $7,319,545†

 

†Includes a security valued at zero.

 

 

 

 

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

 

Global Opportunity   Common
Stock
(000)		   Preferred
Stock
(000)		   Derivative
Contract —
PIPE
(000)		 
Beginning Balance  $17,733   $—†  $— 
Purchases   —    —    — 
Sales   —    —    — 
PIPE transaction   —    —    (4,835)
Amortization of discount   —    —    — 
Transfers in   —    —    — 
Transfers out   (17,733)††   —    — 
Corporate actions   —    —    — 
Change in unrealized appreciation (depreciation)   —    —    — 
Realized gains (losses)   —    —    — 
Ending Balance  $—   $—†  $(4,835)
                
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $—   $—   $(4,835)

 

†Includes a security valued at zero.
†† A security transferred out of level 3 due to an Initial Public Offering.

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021:

 

Global Opportunity  Fair Value at
September 30, 2021
(000)		   Valuation
Technique		  Unobservable
Input		  Amount*  Impact to Valuation
from an Increase in
Input**
PIPE  $(4,835)  Market Implied  Discount for Lack of Marketability and Transaction Risk  10.0%  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.

  

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Global Permanence                
Assets:
Common Stocks                    
Aerospace & Defense  $284   $—   $—   $284 
Banks   137    —    —    137 
Beverages   —    96    —    96 
Capital Markets   133    —    —    133 
Chemicals   34    28    —    62 
Commercial Services & Supplies   98    103    —    201 
Entertainment   90    48    —    138 
Equity Real Estate Investment Trusts (REITs)   36    —    —    36 
Food & Staples Retailing   96    —    —    96 
Health Care Equipment & Supplies   148    —    —    148 
Health Care Technology   92    —    —    92 
Hotels, Restaurants & Leisure   37    —    —    37 
Household Durables   —    39    —    39 
Insurance   57    —    —    57 
Internet & Direct Marketing Retail   131    —    —    131 
Metals & Mining   59    —    —    59 
Oil, Gas & Consumable Fuels   37    —    —    37 
Personal Products   —    127    —    127 
Pharmaceuticals   177    —    —    177 
Real Estate Management & Development   184    —    —    184 
Road & Rail   137    —    —    137 
Semiconductors & Semiconductor Equipment   307    —    —    307 
Software   327    150    —    477 
Textiles, Apparel & Luxury Goods   —    356    —    356 
Transportation Infrastructure   36    36    —    72 
Total Common Stocks   2,637    983    —    3,620 
Call Options Purchased   —    4    —    4 
Investment Companies   23    34    —    57 
Short-Term Investment                    
Investment Company   66    —    —    66 
Total Assets  $2,726   $1,021   $—   $3,747 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
                 
Global Real Estate
Assets:
Common Stocks                    
Diversified  $4,670   $15,598   $—   $20,268 
Health Care   9,065    —    —    9,065 
Industrial   7,495    3,495    129    11,119 
Industrial/Office Mixed   —    845    —    845 
Lodging/Resorts   1,807    349    —    2,156 
Office   3,977    6,914    —    10,891 
Residential   11,609    3,958    18    15,585 
Retail   9,100    3,163    —    12,263 
Self Storage   7,350    461    —    7,811 
Specialty   2,708    —    —    2,708 
Total Common Stocks   57,781    34,783    147    92,711 
Short-Term Investments                    
Investment Company   1,300    —    —    1,300 
Repurchase Agreements   —    130    —    130 
Total Short-Term Investments   1,300    130    —    1,430 
Total Assets  $59,081   $34,913   $147   $94,141 

 

 

 

 

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

 

Global Real Estate  Common Stocks
(000)		 
Beginning Balance  $144 
Purchases   — 
Sales   — 
Amortization of discount   — 
Transfers in   — 
Transfers out   — 
Corporate actions   — 
Change in unrealized appreciation (depreciation)   3 
Realized gains (losses)   — 
Ending Balance  $147 
      
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $3 

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance:

 

Global Real Estate  Fair Value at
September 30, 2021
(000)		   Valuation
Technique		  Unobservable
Input		  Amount*   Impact to Valuation
from an Increase in
Input**
Common Stocks  $147   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  $0.001   Increase

 

 

*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.

 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Global Sustain                    
Assets:                    
Common Stocks                    
Beverages  $845   $—   $—   $845 
Capital Markets   3,441    1,062    —    4,503 
Electronic Equipment, Instruments & Components   1,596    —    —    1,596 
Health Care Equipment & Supplies   18,138    —    —    18,138 
Health Care Technology   1,429    —    —    1,429 
Household Products   3,093    7,876    —    10,969 
Industrial Conglomerates   1,801    —    —    1,801 
Information Technology Services   13,761    —    —    13,761 
Insurance   —    2,755    —    2,755 
Interactive Media & Services   3,096    —    —    3,096 
Life Sciences Tools & Services   3,502    —    —    3,502 
Machinery   1,851    —    —    1,851 
Personal Products   896    1,164    —    2,060 
Pharmaceuticals   1,054    —    —    1,054 
Professional Services   —    1,986    —    1,986 
Semiconductors & Semiconductor Equipment   3,663    —    —    3,663 
Software   9,900    4,589    —    14,489 
Textiles, Apparel & Luxury Goods   905    —    —    905 
Total Common Stocks   68,971    19,432    —    88,403 
Short-Term Investment                    
Investment Company   2,404    —    —    2,404 
Total Assets  $71,375   $19,432   $—   $90,807 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Growth                    
Assets:                    
Common Stocks                    
Biotechnology   361,277    46,812    —    408,089 
Entertainment   1,276,915    —    —    1,276,915 
Health Care Equipment & Supplies   478,931    —    —    478,931 
Health Care Providers & Services   187,733    —    —    187,733 
Health Care Technology   460,419    170,009    —    630,428 
Hotels, Restaurants & Leisure   319,626    —    —    319,626 
Information Technology Services   5,138,739    309,723    —    5,448,462 
Interactive Media & Services   2,652,884    —    —    2,652,884 
Internet & Direct Marketing Retail   1,096,405    —    —    1,096,405 
Life Sciences Tools & Services   228,453    —    —    228,453 
Metals & Mining   41,958    —    —    41,958 
Pharmaceuticals   437,473    —    —    437,473 
Semiconductors & Semiconductor Equipment   455,175    —    —    455,175 
Software   3,341,121    —    —    3,341,121 
Specialty Retail   466,883    —    —    466,883 
Total Common Stocks   16,943,992    526,544         17,470,536 
Preferred Stocks                    
Electronic Equipment, Instruments & Components   —    —    —†   —†
Software   —    —    136,746    136,746 
Total Preferred Stocks   —    —    136,746†   136,746†
Purchased Options        19,448    —    19,448 
Investment Company   123,286    —    —    123,286 
Short-Term Investment                    
Investment Company   538,307    —    —    538,307 
Total Assets   17,605,585    545,992    136,746†   18,288,323†
Liabilities:                    
Derivative Contract — PIPE   —    —    (8,580)   (8,580)
Total  $17,605,585   $545,992   $128,166†  $18,279,743 

 

† Includes one security valued at zero.

 

 

 

 

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

 

Growth   Common Stock
(000)		    Preferred
Stocks
(000)		    Derivative
Contract —
PIPE
(000)		 
Beginning Balance  $39,017   $—†  $— 
Purchases   —    136,746    — 
Sales   —    —    — 
PIPE transactions   —    —    (8,580)
Amortization of discount   —    —    — 
Transfers in   —    —    — 
Transfers out   (39,017)††   —    — 
Corporate actions   —    —    — 
Change in unrealized appreciation (depreciation)   —    —    — 
Realized gains (losses)   —    —    — 
Ending Balance  $—    136,746†  $(8,580)
                
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $—   $—   $(8,580)

 

†     Includes one security valued at zero.

††  A security transferred out of level 3 due to an Initial Public Offering.

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance:

 

Growth   Fair Value at
September 30, 2021
(000)		     Valuation Technique   Unobservable Input   Amount*     Impact to Valuation from
an Increase in Input**
Preferred Stocks   $ 136,746     Market Transaction Method   Precedent Transaction   $ 220.45     Increase
PIPES   $ (8,580 )   Market Implied   Discount for Lack of Marketability and Transaction Risk     13.5 %   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.

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
Inception                    
Assets:                    
Common Stocks                    
Beverages  $24,458   $—   $—   $24,458 
Biotechnology   126,360    —    —    126,360 
Chemicals   8,112    —    —    8,112 
Diversified Consumer Services   52,792    —    —    52,792 
Diversified Holding Companies   79,371    —    —    79,371 
Diversified Telecommunication Services   54,116    —    —    54,116 
Entertainment   27,145    —    —    27,145 
Food Products   18,407    —    —    18,407 
Health Care Equipment & Supplies   76,454    25,401    —    101,855 
Health Care Providers & Services   125,941    6,106    —    132,047 
Health Care Technology   103,285    —    —    103,285 
Hotels, Restaurants & Leisure   19,209    —    —    19,209 
Household Durables   48,551    52,957    —    101,508 
Information Technology Services   67,947    —    —    67,947 
Insurance   10,362    —    —    10,362 
Interactive Media & Services   41,652    —    —    41,652 
Internet & Direct Marketing Retail   166,028    —    —    166,028 
Life Sciences Tools & Services   104,649    7,480    —    112,129 
Machinery   18,186    —    —    18,186 
Media   19,831    —    —    19,831 
Metals & Mining   14,731    —    —    14,731 
Pharmaceuticals   15,964    —    —    15,964 
Professional Services   20,915    —    —    20,915 
Real Estate Management & Development   86,365    —    —    86,365 
Software   282,060    8,487    —    290,547 
Specialty Retail   82,074    —    —    82,074 
Textiles, Apparel & Luxury Goods   12,798    —    —    12,798 
Trading Companies & Distributors   6,479    —    —    6,479 
Total Common Stocks   1,714,242    100,431    —    1,814,673 
Preferred Stocks                    
Health Care Technology   —    —    8,009    8,009 
Internet & Direct Marketing Retail   1,049    —    —    1,049 
Software   —    —    5,380    5,380 
Total Preferred Stocks   1,049    —    13,389    14,438 
Investment Companies   13,651    24,519    —    38,170 
Warrants   708    —    —    708 
Call Options Purchased   —    2,167    —    2,167 
Short-Term Investments                    
Investment Company   244,374    —    —    244,374 
Repurchase Agreements   —    35,166    —    35,166 
Total Short-Term Investments   244,374    35,166    —    279,540 
Total Assets   1,974,024    162,283    13,389    2,149,696 
Liabilities:                    
Derivative Contract — PIPE   —    —    (1,148)   (1,148)
Total  $1,974,024   $162,283   $12,241   $2,148,548 

 

 

 

 

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

 

Inception

  Preferred
Stocks
(000)		   Derivative Contracts —
PIPE
(000)		 
Beginning Balance  $12,647   $— 
Purchases   —    — 
Sales   —    — 
PIPE transactions   —    (1,148)
Amortization of discount   —    — 
Transfers in   —    — 
Transfers out   —    — 
Corporate actions   —    — 
Change in unrealized appreciation (depreciation)   742    — 
Realized gains (losses)   —    — 
Ending Balance  $13,389   $(1,148)
           
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $742   $(1,148)

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance:

 

Inception  Fair Value at
September 30, 2021
(000)		   Valuation
Technique		  Unobservable
Input		  Amount or Range/
Weighted Average*		   Impact to
Valuation from an
Increase in Input**
Preferred Stocks  $13,389   Discounted Cash Flow  Weighted Average Cost of Capital   11.5% - 14.0% / 12.8%   Decrease
           Perpetual Growth Rate   3.0% - 4.0% / 3.5%   Increase
        Market Comparable Companies  Enterprise Value/Revenue   2.0x - 36.3x / 7.5x   Increase
           Discount for Lack of Marketability   12.0% - 14.0% / 13.2%   Decrease
        Comparable Transactions  Enterprise Value/Revenue   3.8x  Increase
PIPE  $(1,148)  Market Implied  Discount for Lack of Marketability and Transaction Risk   11.0%  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.

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
International Advantage                    
Assets:                    
Common Stocks                    
Air Freight & Logistics  $—   $462,164   $—   $462,164 
Banks   —    389,434    —    389,434 
Beverages   —    350,404    —    350,404 
Biotechnology   —    86,419    —    86,419 
Capital Markets   228,659    —    —    228,659 
Chemicals   —    114,349    —    114,349 
Electronic Equipment, Instruments & Components   —    268,950    —    268,950 
Food Products   —    278,602    —    278,602 
Health Care Equipment & Supplies   —    144,324    —    144,324 
Hotels, Restaurants & Leisure   —    132,637    —    132,637 
Household Products   —    120,923    —    120,923 
Information Technology Services   373,493    190,360    —    563,853 
Insurance   1,528    154,825    —    156,353 
Interactive Media & Services   —    151,645    —    151,645 
Internet & Direct Marketing Retail   —    113,347    —    113,347 
Marine   —    126,033    —    126,033 
Multi-Utilities   204,383    —    —    204,383 
Semiconductors & Semiconductor Equipment   228,312    334,944    —    563,256 
Software   —    111,929    —    111,929 
Textiles, Apparel & Luxury Goods   170,847    778,114    —    948,961 
Total Common Stocks   1,207,222    4,309,403    —    5,516,625 
Investment Company   35,872    —    —    35,872 
Call Options Purchased   —    2,276    —    2,276 
Short-Term Investment                    
Investment Company   321,362    —    —    321,362 
Total Assets   1,564,456    4,311,679    —    5,876,135 
Liabilities:                    
Derivative Contract — PIPE   —    —    (3,216)   (3,216)
Total  $1,564,456   $4,311,679   $(3,216)  $5,872,919 

 

 

 

 

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

 

International Advantage  Derivative
Contract —
PIPE
(000)		 
Beginning Balance  $— 
Purchases   — 
Sales   — 
PIPE transactions   (3,216)
Amortization of discount   — 
Transfers in   — 
Transfers out   — 
Corporate actions   — 
Change in unrealized appreciation (depreciation)   — 
Realized gains (losses)   — 
Ending Balance  $(3,216)
      
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $(3,216)

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021:

 

International Advantage  Fair Value at
September 30, 2021
(000)		   Valuation Technique  Unobservable Input  Amount*   Impact to
Valuation from an
Increase in
Input**
PIPE  $(3,216)  Market Implied  Discount for Lack of Marketability and Transaction Risk   10.0%  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.

 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
                 
International Equity
Assets:
Common Stocks                    
Aerospace & Defense  $—   $76,161   $—   $76,161 
Air Freight & Logistics   —    51,318    —    51,318 
Auto Components   —    12,727    —    12,727 
Banks   —    106,614    —    106,614 
Beverages   —    141,590    —    141,590 
Biotechnology   —    29,342    —    29,342 
Capital Markets   —    47,768    —    47,768 
Diversified Financial Services   1,906    11,812    —    13,718 
Electrical Equipment   —    11,711    —    11,711 
Electronic Equipment, Instruments & Components   —    53,567    —    53,567 
Food Products   —    66,427    —    66,427 
Health Care Equipment & Supplies   —    37,959    —    37,959 
Health Care Providers & Services   —    56,036    —    56,036 
Hotels, Restaurants & Leisure   —    16,949    —    16,949 
Household Products   —    136,589    —    136,589 
Insurance   —    175,290    —    175,290 
Interactive Media & Services   —    59,203    —    59,203 
Life Sciences Tools & Services   —    12,481    —    12,481 
Machinery   —    62,702    —    62,702 
Metals & Mining   49,443    14,812    —    64,255 
Oil, Gas & Consumable Fuels   11,506    23,008    —    34,514 
Personal Products   —    51,908    —    51,908 
Pharmaceuticals   —    234,516    —    234,516 
Professional Services   —    88,862    —    88,862 
Semiconductors & Semiconductor Equipment   49,708    15,811    —    65,519 
Software   66,936    70,897    —    137,833 
Tech Hardware, Storage & Peripherals   —    31,406    —    31,406 
Textiles, Apparel & Luxury Goods   —    117,300    —    117,300 
Tobacco   —    85,567    —    85,567 
Total Common Stocks   179,499    1,900,333    —    2,079,832 
Short-Term Investment                    
Investment Company   40,883    —    —    40,883 
Total Assets  $220,382   $1,900,333   $—   $2,120,715 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
International Opportunity                    
Assets:                    
Common Stocks                    
Air Freight & Logistics  $—   $282,616   $—   $282,616 
Banks   174,287    292,289    —    466,576 
Beverages   —    37,261    —    37,261 
Biotechnology   —    82,706    —    82,706 
Electronic Equipment, Instruments & Components   —    143,070    —    143,070 
Entertainment   209,501    34,801    —    244,302 
Food Products   —    103,744    —    103,744 
Health Care Providers & Services   17,781    —    —    17,781 
Hotels, Restaurants & Leisure   97,096    186,236    —    283,332 
Household Products   —    23,845    —    23,845 
Information Technology Services   496,581    146,073    —    642,654 
Interactive Media & Services   —    234,733    —    234,733 
Internet & Direct Marketing Retail   377,826    485,405    —    863,231 
Multi-Line Retail   55,312    —    —    55,312 
Semiconductors & Semiconductor Equipment   —    228,156    —    228,156 
Textiles, Apparel & Luxury Goods   115,411    550,716    —    666,127 
Total Common Stocks   1,543,795    2,831,651    —    4,375,446 
Investment Company   30,339    —    —    30,339 
Call Options Purchased   —    3,749    —    3,749 
Short-Term Investments                    
Investment Company   176,641    —    —    176,641 
Repurchase Agreements   —    10,517    —    10,517 
Total Short-Term Investments   176,641    10,517    —    187,158 
Total Assets   1,750,775    2,845,917    —    4,596,692 
Liabilities:                    
Derivative Contract — PIPE   —    —    (3,063)   (3,063)
Total  $1,750,775   $2,845,917   $(3,063)  $4,593,629 

 

 

 

 

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

 

International Opportunity  Derivative
Contract —
PIPE
(000)		 
Beginning Balance  $— 
Purchases   — 
Sales   — 
PIPE transactions   (3,063)
Amortization of discount   — 
Transfers in   — 
Transfers out   — 
Corporate actions   — 
Change in unrealized appreciation (depreciation)   — 
Realized gains (losses)   — 
Ending Balance  $(3,063)
      
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $(3,063)

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021:

 

International Opportunity  Fair Value at
September 30, 2021
(000)		   Valuation Technique  Unobservable Input  Amount*   Impact to
Valuation from an
Increase in
Input**
PIPE  $(3,063)  Market Implied  Discount for Lack of Marketability and Transaction Risk   10.0%  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.

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
                 
Multi-Asset Real Return                    
Assets:                    
Common Stocks                    
Banks  $—†  $—   $—   $—†
Chemicals   1,348    —    —    1,348 
Construction Materials   92    —    —    92 
Containers & Packaging   280    —    —    280 
Energy Equipment & Services   245    —    —    245 
Equity Real Estate Investment Trusts (REITs)   880    —    —    880 
Household Durables   413    —    —    413 
Insurance   1    —    —    1 
Metals & Mining   2,729    470    —    3,199 
Oil, Gas & Consumable Fuels   2,856    1    —    2,857 
Real Estate   92    —    —    92 
Real Estate Management & Development   1    —    —    1 
Total Common Stocks   8,937†   471    —    9,408†
U.S. Treasury Security   —    10,523    —    10,523 
Short-Term Investments                    
Investment Company   7,348    —    —    7,348 
Repurchase Agreements   —    2    —    2 
Total Short-Term Investments   7,348    2    —    7,350 
Futures Contracts   16    —    —    16 
Interest Rate Swap Agreement   —    148    —    148 
Total Return Swap Agreements   —    192    —    192 
Total Assets  $16,301†  $11,336   $—   $27,637†
                     
†      Includes one security valued at zero.           

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
                 
Next Gen Emerging Markets                    
Assets:                    
Common Stocks                    
Air Freight & Logistics  $—   $1,317   $—   $1,317 
Banks   —    23,952    —    23,952 
Consumer Finance   —    2,707    —    2,707 
Diversified Consumer Services   —    274    —    274 
Entertainment   14,577    3,063    —    17,640 
Food & Staples Retailing   —    1,736    —    1,736 
Food Products   —    5,400    —    5,400 
Information Technology Services   13,762    7,837    —    21,599 
Interactive Media & Services   8,537    —    —    8,537 
Internet & Direct Marketing Retail   12,444    5,529    —    17,973 
Metals & Mining   2,729    7,852    —    10,581 
Multi-Line Retail   —    5,590    —    5,590 
Oil, Gas & Consumable Fuels   —    8,704    —    8,704 
Paper & Forest Products   —    4,535    —    4,535 
Software   15,718    4,712    —    20,430 
Specialty Retail   —    6,623    —    6,623 
Textiles, Apparel & Luxury Goods   —    6,454    —    6,454 
Wireless Telecommunication Services   —    6,854    —    6,854 
Total Assets   67,767    103,139    —    170,906 
Liabilities:                    
Futures Contract   (87)   —    —    (87)
Total  $67,680   $103,139   $—   $170,819 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
                 
Permanence
Assets:
Common Stocks                    
Aerospace & Defense  $424   $—   $—   $424 
Capital Markets   136    —    —    136 
Chemicals   94    —    —    94 
Commercial Services & Supplies   172    —    —    172 
Construction Materials   36    —    —    36 
Containers & Packaging   40    —    —    40 
Distributors   37    —    —    37 
Diversified Consumer Services   59    —    —    59 
Entertainment   189    —    —    189 
Equity Real Estate Investment Trusts (REITs)   93    —    —    93 
Food & Staples Retailing   137    —    —    137 
Health Care Equipment & Supplies   289    —    —    289 
Health Care Technology   131    —    —    131 
Hotels, Restaurants & Leisure   171    —    —    171 
Household Products   39    —    —    39 
Industrial Conglomerates   58    —    —    58 
Insurance   58    —    —    58 
Internet & Direct Marketing Retail   184    —    —    184 
Life Sciences Tools & Services   40    —    —    40 
Metals & Mining   31    —    —    31 
Oil, Gas & Consumable Fuels   39    —    —    39 
Pharmaceuticals   131    —    —    131 
Professional Services   40    —    —    40 
Semiconductors & Semiconductor Equipment   223    —    —    223 
Software   534    155    —    689 
Specialty Retail   105    —    —    105 
Textiles, Apparel & Luxury Goods   33    —    —    33 
Trading Companies & Distributors   67    —    —    67 
Total Common Stocks   3,590    155    —    3,745 
Investment Company   24    —    —    24 
Call Options Purchased   —    4    —    4 
Short-Term Investment                    
Investment Company   48    —    —    48 
Total Assets  $3,662   $159   $—   $3,821 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
                 
US Core
Assets:
Common Stocks                    
Banks  $10,915   $—   $—   $10,915 
Building Products   569    —    —    569 
Capital Markets   3,601    —    —    3,601 
Commercial Services & Supplies   2,407    —    —    2,407 
Diversified Telecommunication Services   955    —    —    955 
Electric Utilities   1,596    —    —    1,596 
Equity Real Estate Investment Trusts (REITs)   2,841    —    —    2,841 
Food & Staples Retailing   2,151    —    —    2,151 
Health Care Equipment & Supplies   7,002    —    —    7,002 
Health Care Providers & Services   822    —    —    822 
Health Care Technology   1,374    —    —    1,374 
Hotels, Restaurants & Leisure   5,918    —    —    5,918 
Household Durables   301    —    —    301 
Information Technology Services   2,267    —    —    2,267 
Insurance   1,674    —    —    1,674 
Interactive Media & Services   5,711    —    —    5,711 
Oil, Gas & Consumable Fuels   3,593    —    —    3,593 
Personal Products   2,206    —    —    2,206 
Software   6,456    —    —    6,456 
Specialty Retail   1,139    —    —    1,139 
Tech Hardware, Storage & Peripherals   6,094    —    —    6,094 
Textiles, Apparel & Luxury Goods   1,639    —    —    1,639 
Trading Companies & Distributors   3,260    —    —    3,260 
Total Common Stocks   74,491    —    —    74,491 
Short-Term Investment                    
Investment Company   2,147    —    —    2,147 
Total Assets  $76,638   $—   $—   $76,638 

 

 

 

 

The following is a summary of the inputs used to value the Fund's investments as of September 30, 2021:

 

Investment Type  Level 1
Unadjusted
quoted
prices
(000)		   Level 2
Other
significant
observable
inputs
(000)		   Level 3
Significant
unobservable
inputs
(000)		   Total
(000)		 
                 
U.S. Real Estate
Assets:
Common Stocks                    
Apartments  $5,987   $—   $—   $5,987 
Data Centers   3,914    —    —    3,914 
Free Standing   3,310    —    —    3,310 
Health Care   6,908    —    —    6,908 
Industrial   4,780    —    547    5,327 
Lodging/Resorts   1,145    —    —    1,145 
Manufactured Homes   2,118    —    —    2,118 
Office   3,002    —    —    3,002 
Self Storage   5,924    —    —    5,924 
Shopping Centers   4,292    —    —    4,292 
Single Family Homes   1,382    —    —    1,382 
Specialty   2,291    —    —    2,291 
Total Common Stocks   45,053    —    547    45,600 
Short-Term Investment                    
Investment Company   198    —    —    198 
Total Assets  $45,251   $—   $547   $45,798 

 

 

 

 

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

 

U.S. Real Estate  Common Stock
(000)		 
Beginning Balance  $530 
Purchases   — 
Sales   — 
Amortization of discount   — 
Transfers in   — 
Transfers out   — 
Corporate actions   — 
Change in unrealized appreciation (depreciation)   17 
Realized gains (losses)   — 
Ending Balance  $547 
      
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2021  $17 

 

 

 

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2021. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance:

 

U.S. Real Estate  Fair Value at
September 30, 2021
(000)		   Valuation Technique  Unobservable Input
Common Stock  $547   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

 

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