UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number		811-03980
MORGAN STANLEY INSTITUTIONAL FUND TRUST
(Exact name of registrant as specified in charter)
522 FIFTH AVENUE NEW YORK, NY			10036
(Address of principal executive offices)			(Zip code)
RANDY TAKIAN
522 FIFTH AVENUE NEW YORK, NY, 10036
(Name and address of agent for service)
Registrant’s telephone number, including area code:		1-800-548-7786
Date of fiscal year end:	9/30
Date of reporting period:	6/30/09

Item 1. Schedule of Investments.

The Trust’s schedule of investments as of the close or the reporting period pursuant to Rule 12-12 of Regulation S-X is as follows:

Morgan Stanley Institutional Fund Trust

Advisory Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Fixed Income Securities (95.4%)
Agency Adjustable Rate Mortgages (1.9%)
Government National Mortgage Association,
Various Pools:
4.13%, 10/20/25 - 12/20/25	$	666	$	677
4.38%, 1/20/25 - 3/20/25	1,185		1,220
4.63%, 7/20/25 - 9/20/27	513		527
5.38%, 5/20/24 - 6/20/26	2,225		2,303
			4,727
Agency Fixed Rate Mortgages (81.9%)
Federal Home Loan Mortgage Corp.,
Conventional Pools:
9.00%, 10/1/16	4		5
9.50%, 10/1/16 - 10/1/19	68		76
10.00%, 10/1/09 - 12/1/20	460		511
10.25%, 12/1/11	2		2
10.50%, 9/1/09 - 12/1/20	264		295
11.00%, 2/1/11 - 9/1/20	164		186
11.25%, 6/1/10 - 12/1/15	3		4
11.50%, 12/1/09 - 9/1/19	105		119
11.75%, 8/1/14	1		1
12.00%, 10/1/09 - 7/1/20	125		145
12.50%, 10/1/09 - 6/1/15	6		7
13.00%, 9/1/10 - 12/1/13	—@		—@
13.50%, 2/1/10	—@		—@
Gold Pools:
4.50%, 5/1/23	4,940		5,046
5.50%, 12/1/36 - 12/1/37	8,466		8,753
6.00%, 10/1/28 - 9/1/38	9,042		9,452
6.50%, 5/1/21 - 2/1/33	686		736
7.00%, 5/1/28 - 10/1/32	259		281
7.50%, 2/1/23 - 7/1/32	1,950		2,113
8.00%, 5/1/20 - 12/1/31	1,838		2,019
8.50%, 8/1/14 - 7/1/31	4,386		4,829
9.00%, 10/1/17 - 1/1/31	495		547
9.50%, 11/1/16 - 12/1/22	248		277
10.00%, 6/1/17 - 4/1/25	187		208
10.50%, 7/1/19 - 12/1/20	69		79
11.00%, 8/1/19 - 9/1/20	50		57
11.50%, 2/1/16 - 6/1/20	40		44
12.00%, 6/1/20	43		50
12.50%, 7/1/19	2		3
July TBA:
5.50%, 7/15/39(i)	600		619
August TBA:
6.50%, 8/15/39(i)	8,925		9,454
Federal National Mortgage Association,
Conventional Pools:
4.50%, 8/1/18	72		75
5.00%, 10/1/35 - 4/1/39	27,277		27,866
5.50%, 3/1/17 - 8/1/38	42,250		43,760
6.00%, 4/1/13 - 10/1/38	13,632		14,270
6.50%, 6/1/15 - 9/1/37	4,990		5,367
7.00%, 1/1/14 - 9/1/34	1,160		1,273
7.50%, 10/1/12 - 8/1/36	4,666		5,088
8.00%, 7/1/14 - 4/1/33	6,214		6,781
8.50%, 8/1/11 - 9/1/31	6,213		6,780
9.00%, 6/1/18 - 4/1/26	168		184
9.50%, 8/1/17 - 4/1/30	1,166		1,281
10.00%, 1/1/10 - 11/1/25	894		989
10.50%, 10/1/11 - 6/1/27	259		291
11.00%, 10/1/13 - 7/1/25	132		150
11.50%, 8/1/11 - 8/1/25	215		247
12.00%, 7/1/13 - 5/1/20	63		72
12.50%, 2/1/15 - 9/1/15	78		92
July TBA:
5.50%, 7/25/39(i)	11,675		12,053
6.50%, 7/25/39(i)	875		932
August TBA:
4.50%, 8/25/24 - 8/25/39(i)	12,575		12,557
5.00%, 8/25/39(i)	4,700		4,767
Government National Mortgage Association,
Various Pools:
5.50%, 12/15/32	17		18
6.50%, 10/15/10	5		5
8.50%, 7/15/16 - 3/15/20	338		367
9.00%, 11/15/16 - 8/15/21	52		57
9.50%, 10/15/16	25		28
10.00%, 11/15/09 - 8/15/21	701		766
10.50%, 4/15/13 - 5/15/21	395		439
11.00%, 12/15/09 - 4/15/21	948		1,041
11.50%, 3/15/10 - 2/15/16	163		180
12.00%, 11/15/12 - 10/15/15	107		120
12.50%, 5/15/10 - 7/15/15	25		28
13.00%, 1/15/11 - 10/15/13	15		16
13.50%, 5/15/10 - 5/15/13	16		18
July TBA:
4.50%, 7/15/39(i)	4,675		4,668
6.00%, 7/15/39(i)	9,425		9,818
			208,362
Collateralized Mortgage Obligations — Agency Collateral Series (1.9%)
Federal Home Loan Mortgage Corp.,
Inv Fl IO REMIC
6.63%, 6/17/27	72		6
7.18%, 8/15/30	37		3
8.18%, 9/15/30	593		53
IO PAC REMIC
1.00%, 2/15/27	2,089		39
7.00%, 9/15/27	25		3
IO REMIC
5.50%, 7/15/30	653		9
8.00%, 10/15/12	40		3
IO STRIPS
6.50%, 8/1/28	69		9
7.00%, 6/1/30 - 3/1/32	1,653		261
7.50%, 4/1/28 - 9/1/30	727		120
8.00%, 1/1/28 - 6/1/31	1,621		276
10.00%, 5/1/20 - 6/1/20	28		4
PAC REMIC
8.55%, 1/15/21	16		17
9.50%, 4/15/20	44		48
9.60%, 4/15/20	40		44
10.00%, 5/15/20 - 6/15/20	129		142
Federal National Mortgage Association,
Inv Fl IO REMIC
7.23%, 2/17/31	340		26
7.66%, 7/18/27	288		11
8.18%, 11/18/30	531		43
8.19%, 7/25/30 - 8/25/30	778		71
8.29%, 10/25/29	161		5
80.16%, 9/25/22	57		59
Inv Fl REMIC
62.42%, 9/25/20	33		62
461.72%, 12/25/21	—@		—@
IO PAC REMIC
8.00%, 8/18/27 - 9/18/27	1,951		289
IO REMIC
5.50%, 3/25/17	90		3
6.00%, 8/25/32 - 7/25/33	3,063		363
7.00%, 5/25/33	2,229		353
8.00%, 7/18/27 - 12/25/30	343		57
809.00%, 6/25/21	—@		—@
IO STRIPS
7.50%, 4/1/27 - 1/1/32	526		75
8.00%, 2/1/23 - 6/1/30	1,973		328

Morgan Stanley Institutional Fund Trust

Advisory Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Collateralized Mortgage Obligations — Agency Collateral Series (cont’d)
IO STRIPS (cont’d)
8.50%, 10/1/24 - 10/1/25	$	969	$	144
9.00%, 11/1/26	498		77
9.50%, 9/1/18	—@		—@
PAC REMIC
8.50%, 9/25/20	25		27
8.75%, 11/25/19	4		4
1,009.00%, 9/25/20	—@		3
1,158.07%, 7/25/21	—@		1
REMIC
7.00%, 9/25/32	1,441		1,565
Government National Mortgage Association,
Inv Fl IO
7.63%, 9/16/27	136		14
7.84%, 5/20/31	604		66
8.23%, 12/16/29	358		43
8.28%, 8/16/29	276		26
			4,752
Collateralized Mortgage Obligations — Non Agency Collateral Series (0.0%)
Kidder Peabody Mortgage Assets Trust,
IO
9.50%, 4/22/18	14		3
Lehman Structured Securities Corp.,
IO
7.00%, 10/26/29(e)(l)	4,953		124
			127
Mortgages — Other (1.4%)
American Express Co.,
9.63%, 12/1/12(d)(l)	41		41
American Home Mortgage Assets,
0.72%, 10/25/46(d)(h)(l)	3,681		8
American Home Mortgage Investment Trust,
0.73%, 3/25/46(d)(h)(l)	2,318		6
1.03%, 11/25/45(d)(h)(l)	2,675		10
American Housing Trust,
9.55%, 9/25/20	157		125
Countrywide Alternative Loan Trust,
0.58%, 12/25/46(h)	5,718		713
0.60%, 10/25/35(h)	554		349
0.83%, 7/25/46(d)(h)(l)	5,022		18
0.94%, 3/25/47(d)(h)(l)	1,848		3
1.11%, 6/25/46(d)(h)(l)	6,186		9
1.56%, 6/25/47(d)(h)(l)	1,815		20
3.03%, 12/20/46(h)	1,439		146
Gemsco Mortgage Pass Through Certificate,
8.70%, 11/25/10(d)(l)	1		1
Impac CMB Trust,
1.15%, 9/25/34(h)	44		13
Lehman XS Trust,
0.72%, 8/25/46(d)(h)(l)	6,150		13
Mastr Adjustable Rate Mortgages Trust,
0.96%, 4/25/46(d)(h)(l)	4,409		6
1.06%, 4/25/46(d)(h)(l)	991		—@
1.51%, 5/25/47(d)(h)(l)	4,188		18
Ryland Acceptance Corp. IV,
6.65%, 7/1/11	2		2
Structured Asset Mortgage Investments, Inc.,
0.59%, 7/25/46(h)	1,903		241
0.61%, 5/25/46(h)	1,985		225
0.84%, 12/25/35(d)(h)(l)	3,889		42
WaMu Mortgage Pass Through Certificates,
0.57%, 10/25/45(h)	20		19
0.58%, 4/25/45(h)	2,515		786
0.66%, 6/25/46(h)	1,172		91
0.67%, 7/25/45(h)	2,093		558
			3,463
U.S. Treasury Securities (8.3%)
U.S. Treasury Bond Coupon STRIPS,
Zero Coupon, 11/15/19	27,385		18,009
U.S. Treasury Bond,
3.63%, 4/15/28	2,531		3,087
			21,096
Total Fixed Income Securities (Cost $309,768)			242,527

	No. of
	Contracts
Call Options Purchased (0.1%)
EuroDollar 2-Year Mid-Curve Call at $97.75,expiring 9/11/09 (a)(Cost $1,125)	1,455	145

	Shares
Short Term Investments (44.9%)
Securities held as Collateral on Loaned Securities (12.3%)
Investment Company (9.3%)
Morgan Stanley InstitutionalLiquidity Funds — MoneyMarket Portfolio — Institutional Class (p)	23,530,206	23,530

	Face Amount
	(000)
Repurchase Agreement (3.0%)
Credit Suisse Securities USA LLC, 0.11%, dated 6/30/09,due 7/1/09, repurchase price$7,664; fully collateralizedby U.S. agency securities atthe date of this Portfolio ofInvestments as follows:Federal National MortgageAssociation, Fixed RateMortgages: rates rangingfrom 5.50% to 6.50%, due12/1/33 to 1/1/39, valued at $7,817.	$	7,664		7,664
			31,194

	Shares
Investment Company (4.6%)
Morgan Stanley InstitutionalLiquidity Funds — MoneyMarket Portfolio — Institutional Class (p)	11,602,183	11,602

	Face Amount
	(000)
U.S. Agency Securities (12.2%)
Federal Home Loan Bank,
0.20%, 8/11/09 - 8/21/09 (t)	$	21,150	21,147
Federal National Mortgage Association,
0.18%, 8/14/09 (t)	10,000		9,999
			31,146
U.S. Treasury Securities (15.8%)
U.S. Treasury Bills,
0.13%, 8/6/09 (c)(r)	8,000		7,999
0.15%, 8/13/09 (c)(r)	4,000		3,999
0.15%, 8/20/09 (r)	2,000		2,000
0.16%, 9/10/09 (c)(r)	17,000		16,995

Morgan Stanley Institutional Fund Trust

Advisory Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
U.S. Treasury Securities (cont’d)
0.27%, 11/12/09 (c)(j)(r)	$	9,370	$	9,362
			40,355
Total Short-Term Investments (Cost $114,291)			114,297
Total Investments (140.4%) (Cost $425,184) — Including $31,400 of Securities Loaned +			356,969
Liabilities in Excess of Other Assets (-40.4%)			(102,715		)
Net Assets (100%)			$	254,254

(a)Non-income producing security.

(c)All or a portion of security on loan at June 30, 2009. At June 30, 2009, the Portfolio had loaned securities with a total value of $31,400,000. This was secured by collateral of $31,194,000 which was received as cash and subsequently invested in short-term investments as reported in the Portfolio of Investments.

(d)At June 30, 2009, the Portfolio held approximately $195,000 of fair valued securities, 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 Portfolio’s Trustees.

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

(h)Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated rate. The rates shown are those in effect on June 30, 2009.

(i)Security is subject to delayed delivery.

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

(l)Security has been deemed illiquid at June 30, 2009.

(p)The Portfolio invests in the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (the “Liquidity Fund”), an open-end management investment company managed by the Adviser, both directly, and as a portion of the securities held as collateral on loaned securities. Investment Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Fund. For the period ended June 30, 2009, advisory fees paid were reduced by approximately $63,000 relating to the Portfolio’s investment in the Liquidity Fund. For the same period, income distributions earned by the Portfolio are recorded as dividends from affiliates and totaled approximately $681,000. For the period ended June 30, 2009, the approximate cost of purchases and sales in the Liquidity Fund were $1,021,380,000 and $1,086,764,000, respectively.

(r)Rate shown is the yield to maturity at June 30, 2009.

(t)Purchased on a discount basis. The interest rate shown has been adjusted to reflect a money market equivalent yield.

@Face Amount/Value is less than $500.

+At June 30, 2009, the U.S. Federal income tax cost basis of investments was approximately $425,184,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was $68,215,000 of which $3,844,000 related to appreciated securities and $72,059,000 related to depreciated securities.

Inv FlInverse Floating Rate — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at June 30, 2009.

IOInterest Only

PACPlanned Amortization Class

REMICReal Estate Mortgage Investment Conduit

STRIPSSeparate Trading of Registered Interest and Principal of Securities

TBATo Be Announced

Futures Contracts:

The Portfolio had the following futures contract(s) open at period end:

					Net Unrealized
	Number				Appreciation
	of	Value		Expiration	(Depreciation)
	Contracts	(000)		Date	(000)
Long:
90 Day
EuroDollar	58	$	14,117	Mar-11	$	(41	)
90 Day
EuroDollar	58	14,068		Jun-11	(42		)
90 Day
EuroDollar	58	14,024		Sep-11	(42		)
90 Day
EuroDollar	58	13,984		Dec-11	(38		)
U.S. Treasury
2 yr. Note	263	56,865		Sep-09	(96		)
U.S. Treasury
5 yr. Note	416	47,723		Sep-09	(61		)
Short:
U.S. Treasury
10 yr. Note	123	14,301		Sep-09	10
U.S. Treasury
Long Bond	49	5,799		Sep-09	(126		)
					$	(436	)

Options Written:

The Portfolio had the following option(s) written open at period end:

		Premiums
	Number of	Received		Value
	Contracts	(000)		(000)
Call Option Written:
EuroDollar 2-Year Mid-Curve Call at $98.50, expiring 9/11/09	1,208	$	142	$	(8	)

Morgan Stanley Institutional Fund Trust

Advisory Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Interest Rate Swap Contracts

The Portfolio had the following interest rate swap agreement(s) open at period end:

Swap Counterparty	Floating RateIndex	Pay/ReceiveFloating Rate	Fixed Rate		TerminationDate	Notional Amount(000)		UnrealizedAppreciation (Depreciation)(000)
Barclays Capital
	3 Month LIBOR	Pay	4.66	%	5/27/19	$	11,203	$	(37	)
	3 Month LIBOR+ 1.35%	Receive	3.63		4/15/28	2,957		49
	3 Month LIBOR	Receive	4.04		5/27/39	2,569		46
UBS
	3 Month LIBOR	Pay	4.66		5/27/19	32,707		(84		)
	3 Month LIBOR	Receive	4.04		5/27/39	7,570		136
								$	110

Zero Coupon Swap Contracts

The Portfolio had the following zero coupon swap agreement(s) open at period end:

						Unrealized
	Notional					Appreciation
	Amount		Floating	Pay/Receive	Termination	(Depreciation)
Swap Counterparty	(000)		Rate Index	Floating Rate	Date	(000)
Barclays Capital
	$	24,020	3 Month LIBOR	Pay	11/15/19	$	(1,011	)
	11,850		3 Month LIBOR	Receive	11/15/19	(770		)
						$	(1,781	)

LIBOR — London Inter Bank Offer Rate

Morgan Stanley Institutional Fund Trust

Advisory Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Fair Value Measurement Information:

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1			Level 2			Level 3
	Quoted			Other significant			Significant
Investment Type	prices			observable inputs			unobservable inputs		Total
Assets:
Call Options Purchased	$	145		$	—		$	—	$	145
Fixed Income Securities
Agency Adjustable Rate Mortgages	—			4,727			—		4,727
Agency Fixed Rate Mortgages	—			208,362			—		208,362
Collateralized Mortgage Obligations — Agency Collateral Series	—			4,752			—		4,752
Collateralized Mortgage Obligations — Non Agency Collateral Series	—			127			—		127
Mortgages — Other	—			3,268			195		3,463
U.S. Treasury Securities	—			21,096			—		21,096
Total Fixed Income Securities	—			242,332			195		242,527
Futures Contracts	10			—			—		10
Interest Rate Swap Contracts	—			231			—		231
Short-Term Investments
Investment Company	35,132			—			—		35,132
Repurchase Agreement	—			7,664			—		7,664
U.S. Agency Securities	—			31,146			—		31,146
U.S. Treasury Securities	—			40,355			—		40,355
Total Short-Term Investments	35,132			79,165			—		114,297
Total Assets	35,287			321,728			195		357,210
Liabilities:
Futures Contracts	(446		)	—			—		(446		)
Interest Rate Swap Contracts	—			(121		)	—		(121		)
Options Written	(8		)	—			—		(8		)
Zero Coupon Swap Contracts	—			(1,781		)	—		(1,781		)
Total Liabilities	(454		)	(1,902		)	—		(2,356		)
Total	$	34,833		$	319,826		$	195	$	354,854

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

	Fixed Income
	Securities
Balance as of 9/30/08	$	71,970
Accrued discounts/premiums	—
Realized gain (loss)	(59,512		)
Change in unrealizedappreciation (depreciation)	51,265
Net purchases (sales)	(26,511		)
Net transfers in and/or out ofLevel 3	(37,017		)
Balance as of 6/30/09	$	195
The amount of totalgains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at Level 3 at 6/30/09.	$	113

Morgan Stanley Institutional Fund Trust

Advisory Portfolio II

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Fixed Income Securities (87.3%)
Agency Fixed Rate Mortgages (75.1%)
Federal Home Loan Mortgage Corp.,
Conventional Pools:
9.00%, 10/1/16	$	3	$	3
9.50%, 10/1/16 - 1/1/17	13		14
10.00%, 9/1/10 - 11/1/20	68		75
10.25%, 12/1/11	1		1
10.50%, 9/1/09 - 12/1/20	190		213
11.00%, 2/1/11 - 9/1/20	96		109
11.25%, 6/1/10 - 12/1/15	2		2
11.50%, 12/1/09 - 9/1/19	69		78
11.75%, 8/1/14	1		1
12.00%, 10/1/09 - 7/1/20	90		104
12.50%, 10/1/09 - 6/1/15	4		4
13.00%, 9/1/10 - 12/1/13	—@		—@
13.50%, 2/1/10	—@		—@
Gold Pools:
5.00%, 6/1/36 - 4/1/38	5,927		6,041
5.50%, 4/1/37 - 12/1/37	9,111		9,420
6.00%, 10/1/28 - 10/1/37	4,272		4,468
6.50%, 10/1/28 - 2/1/33	407		437
7.50%, 12/1/29 - 2/1/31	5		5
8.00%, 5/1/20 - 8/1/30	9		10
8.50%, 8/1/14 - 12/1/30	69		77
9.00%, 10/1/17 - 1/1/31	320		355
9.50%, 12/1/16 - 10/1/17	24		26
10.00%, 6/1/17 - 4/1/25	70		78
10.50%, 7/1/19 - 12/1/20	52		59
11.00%, 8/1/19 - 9/1/20	40		45
11.50%, 2/1/16 - 6/1/20	26		29
12.00%, 6/1/20	56		64
12.50%, 7/1/19	1		2
July TBA:
5.50%, 7/15/39(i)	300		310
Federal National Mortgage Association,
Conventional Pools:
4.50%, 8/1/18	92		96
5.00%, 3/1/39 - 4/1/39	2,170		2,213
5.50%, 3/1/17 - 8/1/38	9,276		9,606
6.00%, 4/1/13 - 1/1/39	6,243		6,535
6.50%, 6/1/15 - 4/1/34	2,826		3,043
7.50%, 10/1/12 - 7/1/31	53		58
8.00%, 7/1/14 - 8/1/31	630		688
8.50%, 8/1/11 - 1/1/31	24		26
9.00%, 12/1/21 - 4/1/26	125		137
9.50%, 7/1/17 - 2/1/20	12		14
10.00%, 10/1/12 - 11/1/25	276		306
10.50%, 10/1/11 - 6/1/27	222		250
11.00%, 10/1/13 - 7/1/25	86		98
11.50%, 8/1/11 - 8/1/25	176		202
12.00%, 7/1/13 - 5/1/20	40		46
12.50%, 2/1/15 - 9/1/15	95		111
July TBA:
5.50%, 7/25/39(i)	3,725		3,845
August TBA:
4.50%, 8/25/24 - 8/25/39(i)	5,850		5,869
5.00%, 8/25/39(i)	1,850		1,877
Government National Mortgage Association,
Various Pools:
5.50%, 12/15/32	11		11
6.50%, 10/15/10	3		4
8.50%, 7/15/16 - 3/15/20	294		319
9.00%, 11/15/16 - 8/15/21	44		48
10.00%, 11/15/09 - 1/15/21	10		11
10.50%, 4/15/13 - 2/15/21	272		302
11.00%, 12/15/09 - 11/20/19	226		249
11.50%, 3/15/10 - 2/15/16	107		118
12.00%, 11/15/12 - 10/15/15	70		78
12.50%, 5/15/10 - 7/15/15	16		18
13.00%, 1/15/11 - 10/15/13	10		11
13.50%, 5/15/10 - 5/15/13	11		12
July TBA:
4.50%, 7/15/39(i)	1,775		1,772
5.00%, 7/15/39(i)	1,400		1,427
			61,430
Collateralized Mortgage Obligations — Agency Collateral Series (0.9%)
Federal Home Loan Mortgage Corp.,
Inv Fl IO REMIC
6.63%, 6/17/27	47		4
7.18%, 8/15/30	24		2
8.18%, 9/15/30	632		56
IO PAC REMIC
7.00%, 9/15/27	16		2
IO REMIC
5.50%, 7/15/30	518		7
8.00%, 10/15/12	26		2
IO STRIPS
6.50%, 8/1/28	45		6
7.50%, 8/15/30	15		2
8.00%, 1/1/28	125		22
10.00%, 5/1/20 - 6/1/20	18		3
PAC REMIC
8.55%, 1/15/21	11		12
9.50%, 4/15/20	39		42
9.60%, 4/15/20	35		38
10.00%, 5/15/20 - 6/15/20	147		161
Federal National Mortgage Association,
Inv Fl IO REMIC
7.66%, 7/18/27	189		7
8.18%, 11/18/30	347		28
8.19%, 7/25/30 - 8/25/30	761		69
80.16%, 9/25/22	74		76
Inv Fl REMIC
62.42%, 9/25/20	43		80
461.72%, 12/25/21	—@		—@
IO REMIC
5.50%, 3/25/17	59		2
6.00%, 8/25/32	67		5
8.00%, 12/25/30	38		6
809.00%, 6/25/21	—@		—@
IO STRIPS
9.50%, 9/1/18	—@		—@
PAC REMIC
8.50%, 9/25/20	16		18
8.75%, 11/25/19	2		2
1,158.07%, 7/25/21	—@		1
Government National Mortgage Association,
Inv Fl IO
7.63%, 9/16/27	89		9
7.84%, 5/20/31	781		86
			748
Collateralized Mortgage Obligations — Non Agency Collateral Series (0.2%)
Kidder Peabody Mortgage Assets Trust,
IO
9.50%, 4/22/18	9		2
Lehman Structured Securities Corp.,
IO
7.00%, 10/26/29(e)(l)	6,455		162
			164
Mortgages — Other (0.3%)
American Housing Trust,
9.55%, 9/25/20	214		171

Morgan Stanley Institutional Fund Trust

Advisory Portfolio II

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Mortgages — Other (cont’d)
Countrywide Alternative Loan Trust,
0.83%, 7/25/46(d)(h)(l)	$	3,090	$	11
0.94%, 3/25/47(d)(h)(l)	1,210		2
1.11%, 6/25/46(d)(h)(l)	3,800		6
1.56%, 6/25/47(d)(h)(l)	1,110		12
Impac CMB Trust,
1.15%, 9/25/34(h)	29		9
Mastr Adjustable Rate Mortgages Trust,
0.96%, 4/25/46(d)(h)(l)	2,710		3
1.06%, 4/25/46(d)(h)(l)	649		—@
1.51%, 5/25/47(d)(h)(l)	2,740		12
Ryland Acceptance Corp. IV,
6.65%, 7/1/11	2		1
			227
U.S. Treasury Securities (10.8%)
U.S. Treasury Bond Coupon STRIPS,
Zero Coupon, 11/15/19 - 11/15/21	14,455		8,842
U.S. Treasury Note,
1.75%, 1/31/14	10		10
			8,852
Total Fixed Income Securities (Cost $73,033)			71,421

	No. of
	Contracts
Call Options Purchased (0.0%)
EuroDollar 2-Year Mid-Curve Call at $ 97.75, expiring 9/11/09(a)(Cost $260)	346	35

	Shares
Short-Term Investments (38.8%)
Investment Company (36.0%)
Morgan Stanley InstitutionalLiquidity Funds — Money MarketPortfolio — Institutional Class (p)	29,464,600	29,465

	Face Amount
	(000)
U.S. Treasury Security (2.8%)
U.S. Treasury Bill,
0.27%, 11/12/09(j)(r)	$	2,246	2,244
Total Short-Term Investments (Cost $31,708)			31,709
Total Investments (126.1%) (Cost $105,001) +			103,165
Liabilities in Excess of Other Assets (-26.1%)			(21,358		)
Net Assets (100%)			$	81,807

(a)Non-income producing security.

(d)At June 30, 2009, the Portfolio held approximately $46,000 of fair valued securities, 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 Portfolio’s Trustees.

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

(h)Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated rate. The rates shown are those in effect on June 30, 2009.

(i)Security is subject to delayed delivery.

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

(l)Security has been deemed illiquid at June 30, 2009.

(p)The Portfolio invests in the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (the “Liquidity Fund”), an open-end management investment company managed by the Adviser. Investment Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Fund. For the period ended June 30, 2009, advisory fees paid were reduced by approximately $33,000 relating to the Portfolio’s investment in the Liquidity Fund. For the same period, income distributions earned by the Portfolio are recorded as dividends from affiliates and totaled approximately $292,000. For the period ended June 30, 2009, the approximate cost of purchases and sales in the Liquidity Fund were $759,614,000 and $832,886,000, respectively.

(r)Rate shown is the yield to maturity at June 30, 2009.

@Face Amount/Value is less than $500.

+At June 30, 2009, the U.S. Federal income tax cost basis of investments was approximately $105,001,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was $1,836,000 of which $1,203,000 related to appreciated securities and $3,039,000 related to depreciated securities.

Inv FlInverse Floating Rate — Interest rate fluctuates with an inverserelationship to an associated interest rate. Indicated rate is theeffective rate at June 30, 2009.

IOInterest Only

PACPlanned Amortization Class

REMICReal Estate Mortgage Investment Conduit

STRIPSSeparate Trading of Registered Interest and Principal of Securities

TBATo Be Announced

Futures Contracts:

The Portfolio had the following futures contract(s) open at period end:

					Net Unrealized
	Number				Appreciation
	of	Value		Expiration	(Depreciation)
	Contracts	(000)		Date	(000)
Long:
90 Day
EuroDollar	17	$	4,137	Mar-11	$	(12	)
90 Day
EuroDollar	17	4,123		Jun-11	(13		)
90 Day
EuroDollar	17	4,111		Sep-11	(14		)
90 Day
EuroDollar	17	4,099		Dec-11	(14		)
U.S. Treasury
2 yr. Note	73	15,784		Sep-09	(27		)
U.S. Treasury
5 yr. Note	124	14,225		Sep-09	(15		)
Short:
U.S. Treasury
10 yr. Note	37	4,302		Sep-09	35
U.S. Treasury
Long Bond	45	5,326		Sep-09	(124		)
					$	(184	)

Morgan Stanley Institutional Fund Trust

Advisory Portfolio II

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Options Written:

The Portfolio had the following option(s) written open at period end:

		Premiums
	Number of	Received		Value
	Contracts	(000)		(000)
Call Option Written:
EuroDollar 2-Year Mid-Curve Call at $98.50,expiring 9/11/09	287	$	28	$	(2	)

Interest Rate Swap Contracts

The Portfolio had the following interest rate swap agreement(s) open at period end:

								Unrealized
						Notional		Appreciation
	Floating Rate	Pay/Receive			Termination	Amount		(Depreciation)
Swap Counterparty	Index	Floating Rate	Fixed Rate		Date	(000)		(000)
Barclays Capital
	3 Month LIBOR	Pay	4.66	%	5/27/19	$	3,370	$	(11	)
	3 Month LIBOR	Receive	4.04		5/27/39	773		14
UBS
	3 Month LIBOR	Pay	4.66		5/27/19	9,838		(25		)
	3 Month LIBOR	Receive	4.04		5/27/39	2,277		41
								$	19

Zero Coupon Swap Contracts

The Portfolio had the following zero coupon swap agreement(s) open at period end:

						Unrealized
	Notional					Appreciation
	Amount		Floating	Pay/Receive	Termination	(Depreciation)
Swap Counterparty	(000)		Rate Index	Floating Rate	Date	(000)
Barclays Capital
	$	3,741	3 Month LIBOR	Pay	11/15/19	$	(157	)
	6,110		3 Month LIBOR	Receive	11/15/19	(397		)
Deutsche Bank
	730		3 Month LIBOR	Receive	11/15/21	(48		)
	4,592		3 Month LIBOR	Pay	11/15/21	(89		)
JPMorgan Chase
	557		3 Month LIBOR	Pay	11/15/21	(23		)
						$	(714	)

LIBOR — London Inter Bank Offer Rate

Morgan Stanley Institutional Fund Trust

Advisory Portfolio II

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Fair Value Measurement Information:

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1			Level 2			Level 3
	Quoted			Other significant			Significant
Investment Type	prices			observable inputs			unobservable inputs		Total
Assets:
Call Options Purchased	$	35		$	—		$	—	$	35
Fixed Income Securities
Agency Fixed Rate Mortgages	—			61,430			—		61,430
Collateralized Mortgage Obligations — Agency Collateral Series	—			748			—		748
Collateralized Mortgage Obligations — Non Agency Collateral Series	—			164			—		164
Mortgages — Other	—			181			46		227
U.S. Treasury Securities	—			8,852			—		8,852
Total Fixed Income Securities	—			71,375			46		71,421
Futures Contracts	35			—			—		35
Interest Rate Swap Contracts	—			55			—		55
Short-Term Investments
Investment Company	29,465			—			—		29,465
U.S. Treasury Security	—			2,244			—		2,244
Total Short-Term Investments	29,465			2,244			—		31,709
Total Assets	29,535			73,674			46		103,255
Liabilities:
Futures Contracts	(219		)	—			—		(219		)
Interest Rate Swap Contracts	—			(36		)	—		(36		)
Options Written	(2		)	—			—		(2		)
Zero Coupon Swap Contracts	—			(714		)	—		(714		)
Total Liabilities	(221		)	(750		)	—		(971		)
Total	$	29,314		$	72,924		$	46	$	102,284

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

	Fixed Income
	Securities
Balance as of 9/30/08	$	50,209
Accrued discounts/premiums	—
Realized gain (loss)	(29,934		)
Change in unrealizedappreciation (depreciation)	23,092
Net purchases (sales)	(29,206		)
Net transfers in and/or out ofLevel 3	(14,115		)
Balance as of 6/30/09	$	46
The amount of totalgains (losses) for the periodincluded in earnings attributableto the changein unrealized gains (losses)relating to assets and liabilitiesstill held at Level 3 at 6/30/09.	$	(27	)

Morgan Stanley Institutional Fund Trust

Balanced Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Fixed Income Securities (35.7%)
Agency Fixed Rate Mortgages (13.0%)
Federal Home Loan Mortgage Corp.,
Gold Pools:
5.00%, 10/1/35	$	602	$	615
August TBA:
6.50%, 8/15/39(i)	500		530
Federal National Mortgage Association,
Conventional Pools:
5.50%, 11/1/35 - 8/1/38	2,901		3,004
6.00%, 7/1/37 - 10/1/38	1,551		1,623
July TBA:
5.50%, 7/25/39(i)	125		129
6.50%, 7/25/39(i)	75		80
August TBA:
4.50%, 8/25/24 - 8/25/39(i)	825		828
5.00%, 8/25/39(i)	525		532
Government National Mortgage Association,
July TBA:
4.50%, 7/15/39(i)	200		199
5.00%, 7/15/39(i)	400		408
			7,948
Finance (2.4%)
American Express Co.,
8.13%, 5/20/19	105		109
Bank of America Corp.,
5.65%, 5/1/18	140		124
Bank of America Funding Corp.,
7.63%, 6/1/19	55		55
Barclays Bank PLC,
6.75%, 5/22/19	50		50
Citigroup, Inc.,
6.13%, 5/15/18	100		88
General Electric Capital Corp.,
5.88%, 1/14/38	325		258
Goldman Sachs Group, Inc. (The),
6.15%, 4/1/18	215		210
JPMorgan Chase & Co.,
6.40%, 5/15/38	230		231
MetLife, Inc.,
7.72%, 2/15/19	100		107
PNC Funding Corp.,
6.70%, 6/10/19	50		52
Travelers Cos., Inc. (The),
5.90%, 6/2/19	110		113
Wells Fargo & Co.,
5.63%, 12/11/17	100		99
			1,496
Industrials (5.6%)
Amgen, Inc.,
5.70%, 2/1/19	85		90
Anheuser-Busch InBev Worldwide, Inc.,
5.38%, 11/15/14(e)	40		40
Arcelor Mittal,
9.85%, 6/1/19	100		108
Archer-Daniels-Midland Co.,
6.45%, 1/15/38	110		120
AstraZeneca plc,
6.45%, 9/15/37	100		111
AT&T, Inc.,
6.30%, 1/15/38	200		194
Bottling Group LLC,
5.13%, 1/15/19	100		102
BP Capital Markets plc,
4.75%, 3/10/19	110		110
Bristol-Myers Squibb Co.,
5.88%, 11/15/36	110		114
Cisco Systems, Inc.,
4.95%, 2/15/19	30		30
Comcast Corp.,
5.70%, 5/15/18	155		156
ConocoPhillips,
5.75%, 2/1/19	125		132
CVS Caremark Corp.,
6.60%, 3/15/19	105		112
Delhaize America, Inc.,
9.00%, 4/15/31	90		110
Devon Financing Corp. ULC,
7.88%, 9/30/31	70		83
General Mills, Inc.,
5.65%, 2/15/19	60		63
GlaxoSmithKline Capital, Inc.,
6.38%, 5/15/38	110		120
Home Depot, Inc.,
5.40%, 3/1/16	110		110
International Business Machines Corp.,
8.00%, 10/15/38	100		130
Kraft Foods, Inc.,
7.00%, 8/11/37	80		85
McDonald’s Corp.,
6.30%, 10/15/37	100		108
Merck & Co., Inc.,
5.00%, 6/30/19	105		106
Microsoft Corp.,
4.20%, 6/1/19	55		54
News America, Inc.,
6.90%, 3/1/19(e)	40		42
Pfizer, Inc.,
6.20%, 3/15/19	65		71
Procter & Gamble Co. (The),
5.55%, 3/5/37	20		20
Roche Holdings, Inc.,
6.00%, 3/1/19(e)	70		75
Telecom Italia Capital S.A.,
7.18%, 6/18/19	105		107
Time Warner Cable, Inc.,
6.75%, 7/1/18 - 6/15/39	65		66
8.25%, 4/1/19	40		45
Time Warner, Inc.,
5.88%, 11/15/16(c)	25		25
Transocean, Inc.,
6.00%, 3/15/18	60		62
Union Pacific Corp.,
7.88%, 1/15/19	100		115
United Parcel Service, Inc.,
5.13%, 4/1/19	50		53
Verizon Communications, Inc.,
8.95%, 3/1/39	140		177
Wal-Mart Stores, Inc.,
6.50%, 8/15/37	70		78
Wyeth,
5.45%, 4/1/17	30		31
XTO Energy, Inc.,
5.50%, 6/15/18	80		80
			3,435
Mortgages — Other (0.0%)
Ryland Acceptance Corp. IV,
6.65%, 7/1/11	—@		—@
Municipal Bonds (0.2%)
California State, General Obligation Bonds,
5.95%, 4/1/16	50		48
Illinois Toll Highway Authority,
6.18%, 1/1/34	50		51
			99

Morgan Stanley Institutional Fund Trust

Balanced Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Sovereign (0.2%)
Federal Republic of Germany,
4.88%, 6/17/19(c)	$	35	$	36
Federative Republic of Brazil,
6.00%, 1/17/17	100		103
			139
U.S. Agency Securities (2.8%)
Federal Home Loan Mortgage Corp.,
1.75%, 6/15/12(c)	450		449
2.50%, 1/7/14(c)	800		793
3.00%, 7/28/14(c)	150		151
4.88%, 6/13/18(c)	300		323
			1,716
U.S. Treasury Securities (10.7%)
U.S. Treasury Bond,
6.25%, 8/15/23(c)	1,040		1,267
U.S. Treasury Bond Coupon STRIPS,
Zero Coupon, 11/15/20	725		444
U.S. Treasury Inflation Indexed Bonds,
3.63%, 4/15/28	92		113
U.S. Treasury Note,
0.88%, 3/31/11 - 5/31/11(c)	3,390		3,383
1.75%, 3/31/14(c)	180		174
2.25%, 5/31/14(c)	800		789
2.75%, 2/15/19(c)	340		319
3.13%, 5/15/19	97		94
			6,583
Utilities (0.8%)
E.ON International Finance B.V.,
5.80%, 4/30/18(e)	80		83
Kinder Morgan Energy Partners LP,
5.95%, 2/15/18	110		108
Peco Energy Co.,
5.35%, 3/1/18	60		61
Progress Energy, Inc.,
7.05%, 3/15/19	60		67
Public Service Co. of Colorado,
5.80%, 8/1/18	55		59
Virginia Electric and Power Co.,
5.40%, 4/30/18	120		125
			503
Total Fixed Income Securities (Cost $21,866)			21,919

	Shares
Common Stocks (50.8%)
Aerospace & Defense (1.3%)
Boeing Co. (The)	2,850	121
General Dynamics Corp.	1,400	78
Honeywell International, Inc.	2,700	85
L-3 Communications Holdings, Inc.	600	42
Lockheed Martin Corp.	1,050	85
Northrop Grumman Corp.	1,100	50
Precision Castparts Corp.	600	44
Raytheon Co.	1,450	64
Rockwell Collins, Inc.	800	33
United Technologies Corp.	3,600	187
		789
Air Freight & Logistics (1.0%)
C.H. Robinson Worldwide, Inc.	4,579	239
Expeditors International ofWashington, Inc.	10,164	339
FedEx Corp.	200	11
United Parcel Service, Inc.,Class B	500	25
		614
Airlines (0.0%)
Southwest Airlines Co.	400	3
Auto Components (0.1%)
Goodyear Tire & Rubber Co.(The) (a)	1,000	11
Johnson Controls, Inc.	2,300	50
		61
Automobiles (0.1%)
Ford Motor Co. (a)	8,700	53
General Motors Corp. (a)	2,200	2
Harley-Davidson, Inc.	900	15
		70
Beverages (1.0%)
Coca-Cola Co. (The)	7,580	364
PepsiCo., Inc.	4,925	270
		634
Biotechnology (0.9%)
Amgen, Inc. (a)	4,000	212
Biogen Idec, Inc. (a)	1,300	59
Celgene Corp. (a)	1,500	72
Genzyme Corp. (a)	1,100	61
Gilead Sciences, Inc. (a)	3,300	154
		558
Capital Markets (0.5%)
Ameriprise Financial, Inc.	500	12
Bank of New York Mellon Corp.(The)	1,900	56
Charles Schwab Corp. (The)	1,800	31
Franklin Resources, Inc.	300	22
Goldman Sachs Group, Inc.(The)	700	103
Invesco Ltd.	900	16
Northern Trust Corp.	400	21
State Street Corp.	800	38
T. Rowe Price Group, Inc.	500	21
		320
Chemicals (1.2%)
Monsanto Co.	10,111	752
Commercial Banks (1.2%)
BB&T Corp.	2,600	57
Fifth Third Bancorp.	2,200	16
KeyCorp	1,600	8
M&T Bank Corp.	300	15
PNC Financial Services Group,Inc.	2,000	78
Regions Financial Corp.	2,600	11
SunTrust Banks, Inc.	1,300	21
U.S. Bancorp	8,800	158
Wells Fargo & Co.	15,500	376
		740
Communications Equipment (1.9%)
Cisco Systems, Inc. (a)	23,291	434
Corning, Inc.	1,300	21
Juniper Networks, Inc. (a)	500	12
Motorola, Inc.	1,800	12
QUALCOMM, Inc.	6,292	284
Research In Motion Ltd. (a)	5,453	388
		1,151
Computers & Peripherals (2.0%)
Apple, Inc. (a)	6,554	933
Dell, Inc. (a)	1,900	26
EMC Corp. (a)	1,800	24
Hewlett-Packard Co.	2,200	85
International Business MachinesCorp.	1,200	125
Sun Microsystems, Inc. (a)	1,800	17
		1,210

Morgan Stanley Institutional Fund Trust

Balanced Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

		Value
	Shares	(000)
Construction & Engineering (0.1%)
Fluor Corp.	600	$	31
Construction Materials (0.6%)
Cemex S.A.B. de C.V. ADR (a)	15,477	145
Martin Marietta Materials, Inc.	2,665	210
		355
Consumer Finance (0.5%)
American Express Co.	12,286	286
Capital One Financial Corp.	600	13
Discover Financial Services	1,000	10
		309
Distributors (0.5%)
Li & Fung Ltd.	125,900	337
Diversified Financial Services (2.3%)
Bank of America Corp.	9,078	120
BM&F Bovespa S.A.	56,999	340
Citigroup, Inc.	9,200	27
CME Group, Inc.	1,159	361
IntercontinentalExchange,Inc. (a)	100	11
JPMorgan Chase & Co.	5,400	184
Leucadia National Corp. (a)	17,483	369
Moody’s Corp.	400	11
NYSE Euronext	500	14
		1,437
Diversified Telecommunication Services (1.4%)
AT&T, Inc.	22,320	554
Verizon Communications, Inc.	9,300	286
		840
Electric Utilities (1.4%)
American Electric Power Co.,Inc.	2,000	58
Duke Energy Corp.	6,728	98
Edison International	1,600	50
Entergy Corp.	1,100	85
Exelon Corp.	3,100	159
FirstEnergy Corp.	1,800	70
FPL Group, Inc.	2,100	119
PPL Corp.	2,200	72
Progress Energy, Inc.	1,000	38
Southern Co. (The)	3,100	97
		846
Electrical Equipment (0.4%)
Emerson Electric Co.	3,200	104
First Solar, Inc. (a)	772	125
		229
Electronic Equipment, Instruments & Components (0.0%)
Agilent Technologies, Inc. (a)	300	6
Tyco Electronics Ltd.	500	9
		15
Energy Equipment & Services (0.4%)
Baker Hughes, Inc.	700	26
Halliburton Co.	2,300	48
National Oilwell Varco, Inc. (a)	800	26
Schlumberger Ltd.	2,700	146
Smith International, Inc.	600	15
		261
Food & Staples Retailing (1.5%)
Costco Wholesale Corp.	1,600	73
CVS Caremark Corp.	5,600	178
Kroger Co. (The)	2,400	53
Safeway, Inc.	1,400	29
SYSCO Corp.	2,900	65
Walgreen Co.	3,800	112
Wal-Mart Stores, Inc.	8,700	421
		931
Food Products (0.8%)
Archer-Daniels-Midland Co.	3,102	83
ConAgra Foods, Inc.	2,311	44
General Mills, Inc.	1,667	93
Heinz (H.J.) Co.	1,459	52
Kellogg Co.	1,193	56
Kraft Foods, Inc., Class A	6,348	161
Sara Lee Corp.	1,878	18
		507
Health Care Equipment & Supplies (1.4%)
Baxter International, Inc.	2,200	116
Becton Dickinson & Co.	900	64
Boston Scientific Corp. (a)	4,700	48
C.R. Bard, Inc.	600	45
Covidien plc	1,600	60
Gen-Probe, Inc. (a)	2,219	95
Intuitive Surgical, Inc. (a)	924	151
Medtronic, Inc.	3,800	133
St. Jude Medical, Inc. (a)	1,200	49
Stryker Corp.	1,000	40
Zimmer Holdings, Inc. (a)	900	38
		839
Health Care Providers & Services (0.9%)
Aetna, Inc.	1,500	37
Cardinal Health, Inc.	1,400	43
CIGNA Corp.	1,200	29
Express Scripts, Inc. (a)	1,100	76
Humana, Inc. (a)	600	19
McKesson Corp.	1,000	44
Medco Health Solutions, Inc. (a)	1,900	87
UnitedHealth Group, Inc.	4,800	120
WellPoint, Inc. (a)	1,400	71
		526
Hotels, Restaurants & Leisure (1.1%)
Carnival Corp.	100	3
International Game Technology	100	2
Marriott International, Inc., Class A	100	2
McDonald’s Corp.	300	17
Starbucks Corp. (a)	23,991	333
Wynn Resorts Ltd. (a)	8,046	284
Yum! Brands, Inc.	200	7
		648
Household Durables (0.2%)
Black & Decker Corp.	100	3
Centex Corp.	300	3
D.R. Horton, Inc.	1,400	13
Fortune Brands, Inc.	600	21
Harman International Industries, Inc.	100	2
Leggett & Platt, Inc.	400	6
Lennar Corp., Class A	400	4
Newell Rubbermaid, Inc.	600	6
Pulte Homes, Inc.	500	4
Snap-On, Inc.	100	3
Stanley Works (The)	400	13
Whirlpool Corp.	400	17
		95
Household Products (1.1%)
Colgate-Palmolive Co.	1,592	112
Kimberly-Clark Corp.	1,600	84
Procter & Gamble Co. (The)	9,780	500
		696
Independent Power Producers & Energy Traders (0.1%)
AES Corp. (The) (a)	3,100	36

Morgan Stanley Institutional Fund Trust

Balanced Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

		Value
	Shares	(000)
Independent Power Producers & Energy Traders (cont’d)
Constellation Energy Group, Inc.	600	$	16
		52
Industrial Conglomerates (0.9%)
3M Co.	2,600	156
General Electric Co.	35,600	417
Textron, Inc.	800	8
		581
Information Technology Services (1.5%)
Mastercard, Inc., Class A	2,312	387
Paychex, Inc.	300	7
Redecard S.A.	25,911	397
Total System Services, Inc.	271	3
Visa, Inc., Class A	2,389	149
		943
Insurance (1.0%)
Aflac, Inc.	160	5
Allstate Corp. (The)	240	6
AON Corp.	200	8
Berkshire Hathaway, Inc., Class B (a)	103	298
Chubb Corp.	200	8
Genworth Financial, Inc., Class A	900	6
Hartford Financial Services Group, Inc.	700	8
Lincoln National Corp.	559	10
Loews Corp.	8,073	221
Marsh & McLennan Cos., Inc.	240	5
MetLife, Inc.	390	12
Principal Financial Group, Inc.	470	9
Progressive Corp. (The) (a)	440	7
Prudential Financial, Inc.	200	7
Travelers Cos., Inc. (The)	298	12
		622
Internet & Catalog Retail (1.6%)
Amazon. com, Inc. (a)	12,023	1,006
Internet Software & Services (3.2%)
Baidu, Inc. ADR (a)	1,055	318
eBay, Inc. (a)	12,475	214
Google, Inc., Class A (a)	2,259	952
Tencent Holdings Ltd.	36,000	419
Yahoo!, Inc. (a)	4,137	65
		1,968
Leisure Equipment & Products (0.1%)
Eastman Kodak Co.	700	2
Hasbro, Inc.	600	15
Mattel, Inc.	1,500	24
		41
Life Science Tools & Services (0.7%)
Illumina, Inc. (a)	8,664	337
Thermo Fisher Scientific, Inc. (a)	1,800	74
		411
Machinery (0.9%)
Caterpillar, Inc.	2,400	79
Cummins, Inc.	1,100	39
Danaher Corp.	1,000	62
Deere & Co.	1,600	64
Eaton Corp.	1,000	44
Illinois Tool Works, Inc.	2,000	75
Ingersoll-Rand plc, Class A (a)	1,700	35
ITT Corp.	1,100	49
PACCAR, Inc.	1,755	57
Parker Hannifin Corp.	950	41
		545
Media (0.8%)
CBS Corp., Class B	1,400		10
Comcast Corp., Class A	4,400	64
DIRECTV Group, Inc. (The) (a)	1,400	34
McGraw-Hill Cos., Inc. (The)	5,095	153
News Corp., Class A	3,600	33
Omnicom Group, Inc.	500	16
Time Warner Cable, Inc.	460	14
Time Warner, Inc.	1,833	46
Viacom, Inc., Class B (a)	1,100	25
Walt Disney Co. (The)	3,800	89
		484
Multiline Retail (0.2%)
Sears Holdings Corp. (a)	2,193	146
Multi-Utilities (0.7%)
Ameren Corp.	1,000	25
Consolidated Edison, Inc.	1,200	45
Dominion Resources, Inc.	3,800	127
PG&E Corp.	1,000	38
Public Service Enterprise Group, Inc.	2,600	85
Sempra Energy	1,300	65
Williams Cos., Inc. (The)	1,500	23
		408
Office Electronics (0.0%)
Xerox Corp.	1,000	6
Oil, Gas & Consumable Fuels (4.9%)
Anadarko Petroleum Corp.	1,300	59
Apache Corp.	800	58
Chesapeake Energy Corp.	1,300	26
Chevron Corp.	4,800	318
ConocoPhillips	3,900	164
Consol Energy, Inc.	500	17
Devon Energy Corp.	1,100	60
El Paso Corp.	2,000	18
EOG Resources, Inc.	700	48
Exxon Mobil Corp.	12,000	839
Hess Corp.	700	38
Marathon Oil Corp.	1,700	51
Murphy Oil Corp.	500	27
Noble Energy, Inc.	600	35
Occidental Petroleum Corp.	1,800	118
Peabody Energy Corp.	700	21
Southwestern Energy Co. (a)	11,757	457
Spectra Energy Corp.	1,300	22
Ultra Petroleum Corp. (a)	15,001	585
Valero Energy Corp.	1,300	22
XTO Energy, Inc.	1,300	50
		3,033
Personal Products (0.1%)
Avon Products, Inc.	1,390	36
Pharmaceuticals (3.8%)
Abbott Laboratories	5,800	273
Allergan, Inc.	5,241	250
Bristol-Myers Squibb Co.	7,300	148
Eli Lilly & Co.	3,200	111
Forest Laboratories, Inc. (a)	1,400	35
Johnson & Johnson	9,900	562
Merck & Co., Inc.	7,800	218
Pfizer, Inc.	24,800	372
Schering-Plough Corp.	5,700	143
Wyeth	5,000	227
		2,339
Professional Services (0.3%)
Corporate Executive Board Co. (The)	4,831	100

Morgan Stanley Institutional Fund Trust

Balanced Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

		Value
	Shares	(000)
Professional Services (cont’d)
Monster Worldwide, Inc. (a)	6,005	$	71
		171
Real Estate Management & Development (0.8%)
Brookfield Asset Management, Inc., Class A	29,372	501
Road & Rail (0.1%)
Burlington Northern Santa Fe Corp.	100	7
CSX Corp.	200	7
Norfolk Southern Corp.	200	7
Union Pacific Corp.	300	16
		37
Semiconductors & Semiconductor Equipment (0.9%)
Applied Materials, Inc.	4,363	48
Broadcom Corp., Class A (a)	1,630	40
Intel Corp.	19,750	327
MEMC Electronic Materials, Inc. (a)	700	12
Nvidia Corp. (a)	2,000	23
Texas Instruments, Inc.	4,978	106
		556
Software (0.6%)
Electronic Arts, Inc. (a)	200	4
Salesforce. com, Inc. (a)	6,586	252
VMware, Inc., Class A (a)	3,485	95
		351
Textiles, Apparel & Luxury Goods (0.3%)
Coach, Inc.	1,500	40
NIKE, Inc., Class B	1,700	88
Polo Ralph Lauren Corp.	100	6
VF Corp.	400	22
		156
Thrifts & Mortgage Finance (0.0%)
Hudson City Bancorp, Inc.	2,300	31
Tobacco (0.9%)
Altria Group, Inc.	8,930	146
Philip Morris International, Inc.	8,930	389
Reynolds American, Inc.	1,000	39
		574
Transportation Infrastructure (0.1%)
China Merchants Holdings (International) Co., Ltd.	22,000	63
Wireless Telecommunication Services (0.5%)
America Movil S.A.B. de C.V., Class L ADR	6,257	242
American Tower Corp., Class A (a)	1,500	48
Sprint Nextel Corp. (a)	9,000	43
		333
Total Common Stocks (Cost $42,975)		31,198
Investment Companies (1.6%)
iShares MSCI EMU Index Fund	200	6
Morgan Stanley Institutional Fund, Inc. International Growth Equity Portfolio, Class I (u)	131,234	987
Total Investment Companies (Cost $1,009)		993
Short-Term Investments (22.7%)
Securities held as Collateral on Loaned Securities (4.0%)
Investment Company (3.0%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (p)	1,864,857	1,865

	Face Amount
	(000)
Repurchase Agreement (1.0%)
Credit Suisse Securities USA LLC, 0.11%, dated 6/30/09, due 7/1/09, repurchase price $607; fully collateralized by U.S. agency securities at the date of this Portfolio of Investments as follows: Federal National Mortgage Association, Fixed Rate Mortgages: rates ranging from 5.50% to 6.50%, due 12/1/33 to 1/1/39, valued at $620.	$	607	607
			2,472

	Shares
Investment Company (11.7%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (p)	7,190,937	7,191

	Face Amount
	(000)
U.S. Agency Securities (2.5%)
Federal Home Loan Bank,
0.20%, 8/11/09 (t)	$	900	900
Federal National Mortgage Association,
0.13%, 7/1/09 (t)	600		600
			1,500
U.S. Treasury Securities (4.5%)
U.S. Treasury Bills,
0.02%, 7/2/09 (r)	800		800
0.13%, 8/6/09 (c)(r)	1,000		1,000
0.15%, 8/13/09 (c)(r)	900		900
0.27%, 11/12/09 (j)(r)	80		80
			2,780
Total Short-Term Investments (Cost $13,943)			13,943
Total Investments (110.8%) (Cost $79,793) — including $9,264 of Securities Loaned (s)+			68,053
Liabilities in Excess of Other Assets (-10.8%)			(6,636		)
Net Assets (100%)			$	61,417

Morgan Stanley Institutional Fund Trust

Balanced Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

(a)Non-income producing security.

(c)All or a portion of security on loan at June 30, 2009. At June 30, 2009, the Portfolio had loaned securities with a total value of $9,264,000. This was secured by collateral of $2,472,000 which was received as cash and subsequently invested in short-term investments as reported in the Portfolio of Investments. The remaining collateral of $6,940,000 was received in the form of short-term pooled securities, which the Portfolio cannot sell or repledge and accordingly are not reflected in the Portfolio of Investments.

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

(i)Security is subject to delayed delivery.

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

(p)The Portfolio invests in the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (the “Liquidity Fund”), an open-end management investment company managed by the Adviser, both directly, and as a portion of the securities held as collateral on loaned securities. Investment Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Fund. For the period ended June 30, 2009, advisory fees paid were reduced by approximately $22,000 relating to the Portfolio’s investment in the Liquidity Fund. For the same period, income distributions earned by the Portfolio are recorded as dividends from affiliates and totaled approximately $163,000. For the period ended June 30, 2009, the approximate cost of purchases and sales in the Liquidity Fund were $34,280,000 and $57,240,000, respectively.

(r)Rate shown is the yield to maturity at June 30, 2009.

(s)The approximate market value and percentage of the investments, $819,000 and 1.2%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments.

(t)Purchased on a discount basis. The interest rate shown has been adjusted to reflect a money market equivalent yield.

(u)The Portfolio invests in the Morgan Stanley Institutional Fund, Inc. International Growth Equity Portfolio — Class I, (the “International Growth Equity Portfolio”) an open-end management investment company advised by an affiliate of the Adviser. The International Growth Equity Portfolio has a cost basis of $1,009,000, with a value of $987,000. Investment Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the International Growth Equity Portfolio. For the period ended June 30, 2009, advisory fees paid were reduced by less than $500 relating to the Portfolio’s investment in the International Growth Equity Portfolio. During the period ended June 30, 2009, the Portfolio had purchased 131,234 shares at the cost of $1,009,000 and had sold zero shares.

@Face Amount/Value is less than $500.

+At June 30, 2009, the U.S. Federal income tax cost basis of investments was approximately $79,793,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was $11,740,000 of which $910,000 related to appreciated securities and $12,650,000 related to depreciated securities.

ADRAmerican Depositary Receipt

STRIPSSeparate Trading of Registered Interest and Principal of Securities

TBATo Be Announced

Foreign Currency Exchange Contracts Information:

The Portfolio had the following foreign currency exchange contract(s) open at period end:

									Net
Currency					In				Unrealized
to					Exchange				Appreciation
Deliver		Value		Settlement	For		Value		(Depreciation)
(000)		(000)		Date	(000)		(000)		(000)
SEK	9,518	$	1,234	7/16/09	USD	1,215	$	1,215	$	(19	)
USD	902	902		7/16/09	CAD	1,020	877		(25		)
USD	625	625		7/16/09	GBP	380	626		1
USD	934	934		7/16/09	JPY	90,294	937		3
USD	604	604		7/16/09	NOK	3,881	603		(1		)
USD	411	411		7/16/09	SEK	3,220	417		6
USD	199	199		7/16/09	SEK	1,600	207		8
		$	4,909				$	4,882	$	(27	)

CAD	—	Canadian Dollar
GBP	—	British Pound
JPY	—	Japanese Yen
NOK	—	Norwegian Krone
SEK	—	Swedish Krona
USD	—	United States Dollar

Futures Contracts:

The Portfolio had the following futures contract(s) open at period end:

					Net Unrealized
	Number				Appreciation
	of	Value		Expiration	(Depreciation)
	Contracts	(000)		Date	(000)
Long:
90 Day
EuroDollar	2	$	482	Dec-11	$	(3	)
EuroDollar
CME	2	487		Mar-11	(1		)
EuroDollar
CME	2	485		Jun-11	(2		)
EuroDollar
CME	2	483		Sep-11	(3		)
S&P 500 Emini	122	5,585		Sep-09	21
U.S. Treasury
2 yr. Note	8	1,730		Sep-09	3
U.S. Treasury
5 yr. Note	14	1,606		Sep-09	6
Short:
U.S. Treasury
10 yr. Note	11	1,279		Sep-09	(16		)
U.S. Treasury
Long Bond	14	1,657		Sep-09	(44		)
					$	(39	)

CME — Chicago Mercantile Exchange

Morgan Stanley Institutional Fund Trust

Balanced Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Interest Rate Swap Contracts

The Portfolio had the following interest rate swap agreement(s) open at period end:

								Unrealized
						Notional		Appreciation
	Floating Rate	Pay/Receive			Termination	Amount		(Depreciation)
Swap Counterparty	Index	Floating Rate	Fixed Rate		Date	(000)		(000)
Barclays Capital
	3 Month LIBOR	Pay	4.66	%	5/27/19	$	415	$	(2	)
	3 Month LIBOR + 1.35%	Receive	3.63		4/15/28	108		2
	3 Month LIBOR	Receive	4.04		5/27/39	95		2
UBS
	3 Month LIBOR	Pay	4.66		5/27/19	1,211		(3		)
	3 Month LIBOR	Receive	4.04		5/27/39	280		5
								$	4

Zero Coupon Swap Contracts

The Portfolio had the following zero coupon swap agreement(s) open at period end:

						Unrealized
	Notional					Appreciation
	Amount		Floating	Pay/Receive	Termination	(Depreciation)
Swap Counterparty	(000)		Rate Index	Floating Rate	Date	(000)
Deutsche Bank
	$	486	3 Month LIBOR	Pay	11/15/20	$	31

LIBOR — London Inter Bank Offer Rate

Fair Value Measurement Information:

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1		Level 2		Level 3
	Quoted		Other significant		Significant
Investment Type	prices		observable inputs		unobservable inputs		Total
Assets:
Common Stocks
Aerospace & Defense	$	789	$	—	$	—	$	789
Air Freight & Logistics	614		—		—		614
Airlines	3		—		—		3
Auto Components	61		—		—		61
Automobiles	70		—		—		70
Beverages	634		—		—		634
Biotechnology	558		—		—		558
Capital Markets	320		—		—		320
Chemicals	752		—		—		752
Commercial Banks	740		—		—		740
Communications Equipment	1,151		—		—		1,151
Computers & Peripherals	1,210		—		—		1,210
Construction & Engineering	31		—		—		31
Construction Materials	355		—		—		355
Consumer Finance	309		—		—		309
Distributors	—		337		—		337
Diversified Financial Services	1,437		—		—		1,437
Diversified Telecommunication Services	840		—		—		840
Electric Utilities	846		—		—		846
Electrical Equipment	229		—		—		229
Electronic Equipment, Instruments & Components	15		—		—		15
Energy Equipment & Services	261		—		—		261
Food & Staples Retailing	931		—		—		931
Food Products	507		—		—		507
Health Care Equipment & Supplies	839		—		—		839
Health Care Providers & Services	526		—		—		526
Hotels, Restaurants & Leisure	648		—		—		648

Morgan Stanley Institutional Fund Trust

Balanced Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Fair Value Measurement Information: (cont’d)

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1		Level 2		Level 3
	Quoted		Other significant		Significant
Investment Type	prices		observable inputs		unobservable inputs		Total
Common Stocks (cont’d)
Household Durables	$	95	$	—	$	—	$	95
Household Products	696		—		—		696
Independent Power Producers & Energy Traders	52		—		—		52
Industrial Conglomerates	581		—		—		581
Information Technology Services	943		—		—		943
Insurance	622		—		—		622
Internet & Catalog Retail	1,006		—		—		1,006
Internet Software & Services	1,549		419		—		1,968
Leisure Equipment & Products	41		—		—		41
Life Sciences Tools & Services	411		—		—		411
Machinery	545		—		—		545
Media	484		—		—		484
Multiline Retail	146		—		—		146
Multi-Utilities	408		—		—		408
Office Electronics	6		—		—		6
Oil, Gas & Consumable Fuels	3,033		—		—		3,033
Personal Products	36		—		—		36
Pharmaceuticals	2,339		—		—		2,339
Professional Services	171		—		—		171
Real Estate Management & Development	501		—		—		501
Road & Rail	37		—		—		37
Semiconductors & Semiconductor Equipment	556		—		—		556
Software	351		—		—		351
Textiles, Apparel & Luxury Goods	156		—		—		156
Thrifts & Mortgage Finance	31		—		—		31
Tobacco	574		—		—		574
Transportation Infrastructure	—		63		—		63
Wireless Telecommunication Services	333		—		—		333
Total Common Stocks	30,379		819		—		31,198
Fixed Income Securities
Agency Fixed Rate Mortgages	—		7,948		—		7,948
Finance	—		1,496		—		1,496
Industrials	—		3,435		—		3,435
Mortgages — Other	—		—@		—		—@
Municipal Bonds	—		99		—		99
Sovereign	—		139		—		139
U.S. Agency Securities	—		1,716		—		1,716
U.S. Treasury Securities	—		6,583		—		6,583
Utilities	—		503		—		503
Total Fixed Income Securities	—		21,919		—		21,919
Foreign Currency Exchange Contracts	—		18		—		18
Futures Contracts	30		—		—		30
Interest Rate Swap Contracts	—		9		—		9
Investment Companies	993		—		—		993
Short-Term Investments
Investment Company	9,056		—		—		9,056
Repurchase Agreement	—		607		—		607
U.S. Agency Securities	—		1,500		—		1,500
U.S. Treasury Securities	—		2,780		—		2,780
Total Short-Term Investments	9,056		4,887		—		13,943
Zero Coupon Swap Contracts	—		31		—		31
Total Assets	40,458		27,683		—		68,141

Morgan Stanley Institutional Fund Trust

Balanced Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Fair Value Measurement Information: (cont’d)

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1			Level 2			Level 3
	Quoted			Other significant			Significant
Investment Type	prices			observable inputs			unobservable inputs		Total
Liabilities:
Foreign Currency Exchange Contracts	$	—		$	(45	)	$	—	$	(45	)
Futures Contracts	(69		)	—			—		(69		)
Interest Rate Swap Contracts	—			(5		)	—		(5		)
Total Liabilities	(69		)	(50		)	—		(119		)
Total	$	40,389		$	27,633		$	—	$	68,022

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

	Fixed Income
	Securities
Balance as of 9/30/08	$	409
Accrued discounts/premiums	(5		)
Realized gain (loss)	(2,064		)
Change in unrealized appreciation (depreciation)	1,975
Net purchases (sales)	(135		)
Net transfers in and/or out of Level 3	(180		)
Balance as of 6/30/09	$	—
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at Level 3 at 6/30/09	$	—

Morgan Stanley Institutional Fund Trust

Mid Cap Growth Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

		Value
	Shares	(000)
Common Stocks (94.1%)
Auto & Transportation (4.8%)
C.H. Robinson Worldwide, Inc.	1,128,177	$	58,834
Expeditors International ofWashington, Inc.	2,340,505	78,033
		136,867
Consumer Discretionary (26.4%)
Abercrombie & Fitch Co.,Class A	1,163,180	29,533
Corporate Executive Board Co.(The)	1,206,036	25,037
Ctrip.com International Ltd.ADR (a)	1,964,895	90,975
Discovery Communications,Inc., Class C (a)	1,421,545	29,184
Las Vegas Sands Corp. (a)	2,851,207	22,411
Leucadia National Corp. (a)	3,242,533	68,385
Li & Fung Ltd.	30,549,900	81,663
Monster Worldwide, Inc. (a)	1,703,138	20,114
Morningstar, Inc. (a)	1,238,577	51,067
NetFlix, Inc. (a)	511,204	21,133
New Oriental Education & Technology Group ADR (a)	771,840	51,991
Priceline.com, Inc. (a)	658,356	73,440
Sears Holdings Corp. (a)	416,629	27,714
Starbucks Corp. (a)	4,489,445	62,358
Strayer Education, Inc.	181,071	39,493
Wynn Resorts Ltd .(a)	1,530,560	54,029
		748,527
Energy (10.2%)
PetroHawk Energy Corp. (a)	1,112,532	24,809
Range Resources Corp.	595,241	24,649
Southwestern Energy Co. (a)	3,290,157	127,823
Ultra Petroleum Corp. (a)	2,856,487	111,403
		288,684
Financial Services (8.7%)
Brookfield Asset Management,Inc., Class A	2,679,516	45,739
Calamos Asset Management,Inc., Class A	1,147,705	16,194
Greenhill & Co., Inc.	382,379	27,612
IntercontinentalExchange,Inc. (a)	541,962	61,914
Moody’s Corp.	879,919	23,186
Redecard S.A.	4,831,729	73,974
		248,619
Health Care (11.7%)
Allergan, Inc.	748,587	35,618
Gen-Probe, Inc. (a)	1,031,019	44,313
Illumina, Inc. (a)	2,818,920	109,769
Intuitive Surgical, Inc. (a)	174,589	28,573
Mindray Medical InternationalLtd. ADR	1,489,342	41,582
Techne Corp.	1,133,534	72,331
		332,186
Materials & Processing (7.4%)
Aecom Technology Corp. (a)	1,159,768	37,113
Intrepid Potash, Inc. (a)	1,558,728	43,769
Martin Marietta Materials, Inc.	851,974	67,204
Mohawk Industries, Inc. (a)	447,342	15,961
Rockwood Holdings, Inc. (a)	1,972,454	28,877
Texas Industries, Inc.	533,241	16,722
		209,646
Producer Durables (5.6%)
BYD Co. Ltd., Class H (a)	6,375,300	25,496
Covanta Holding Corp. (a)	1,900,068	32,225
Gafisa S.A. ADR	1,569,287		25,893
Nalco Holding Co.	2,770,299	46,652
NVR, Inc. (a)	57,528	28,901
		159,167
Technology (18.5%)
Alibaba.com Ltd. (a)	30,188,500	53,288
Autodesk, Inc. (a)	1,944,548	36,907
Baidu, Inc. ADR (a)	339,294	102,158
Equinix, Inc. (a)	438,728	31,913
IHS, Inc., Class A (a)	949,591	47,356
Millicom International CellularS.A. (a)	281,978	15,864
Salesforce. com, Inc. (a)	1,701,037	64,928
Tencent Holdings Ltd.	9,833,600	114,495
Teradata Corp. (a)	2,483,551	58,190
		525,099
Utilities (0.8%)
NII Holdings, Inc. (a)	1,253,748	23,909
Total Common Stocks (Cost $3,130,872)		2,672,704
Preferred Stock (0.6%)
Health Care (0.6%)
Ironwood Pharmaceuticals, Inc.(Convertible) (a)(d)(l)(Cost $15,974)	1,331,207	15,974
Investment Company (1.0%)
Groupe Aeroplan, Inc.(Cost $53,524)	4,185,835	29,690
Short-Term Investment (4.5%)
Investment Company (4.5%)
Morgan Stanley InstitutionalLiquidity Funds — MoneyMarket Portfolio —Institutional Class(p)(Cost $127,228)	127,228,104	127,228
Total Investments (100.2%) (Cost $3,327,598) (s)+		2,845,596
Liabilities in Excess of Other Assets (-0.2%)		(6,223		)
Net Assets (100%)		$	2,839,373

(a)Non-income producing security.

(d)At June 30, 2009, the Portfolio held approximately $15,974,000 of fair valued securities, 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 Portfolio’s Trustees.

(l)Security has been deemed illiquid at June 30, 2009.

(p)The Portfolio invests in the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (the “Liquidity Fund”), an open-end management investment company managed by the Adviser. Investment Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Fund. For the period ended June 30, 2009, advisory fees paid were reduced by approximately $87,000 relating to the Portfolio’s investment in the Liquidity Fund. For the same period, income distributions earned by the Portfolio are recorded as dividends from affiliates and totaled approximately $752,000. For the period ended June 30, 2009, the approximate cost of purchases and sales in the Liquidity Fund were $445,539,000 and $397,902,000, respectively.

(s)The approximate market value and percentage of the investments, $274,942,000 and 9.7%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments.

Morgan Stanley Institutional Fund Trust

Mid Cap Growth Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

+At June 30, 2009, the U.S. Federal income tax cost basis of investments was approximately $3,327,598,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was $482,002,000 of which $304,321,000 related to appreciated securities and $786,323,000 related to depreciated securities.

ADRAmerican Depositary Receipt

Foreign Currency Exchange Contracts Information:

The Portfolio had the following foreign currency exchange contract(s) open at period end:

									Net
Currency					In				Unrealized
to					Exchange				Appreciation
Deliver		Value		Settlement	For		Value		(Depreciation)
(000)		(000)		Date	(000)		(000)		(000)
HKD	9,491	$	1,225	7/2/09	USD	1,225	$	1,225	$	(—@	)
HKD	12,555	1,620		7/3/09	USD	1,620	1,620		(—@		)
		$	2,845				$	2,845	$	(—@	)

HKD	—	Hong Kong Dollar
USD	—	United States Dollar

@Value is less than $500.

Fair Value Measurement Information:

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1		Level 2			Level 3
	Quoted		Other significant			Significant
Investment Type	prices		observable inputs			unobservable inputs		Total
Assets:
Common Stocks
Auto & Transportation	$	136,867	$	—		$	—	$	136,867
Consumer Discretionary	666,864		81,663			—		748,527
Energy	288,684		—			—		288,684
Financial Services	248,619		—			—		248,619
Health Care	332,186		—			—		332,186
Materials & Processing	209,646		—			—		209,646
Producer Durables	133,671		25,496			—		159,167
Technology	357,316		167,783			—		525,099
Utilities	23,909		—			—		23,909
Total Common Stocks	2,397,762		274,942			—		2,672,704
Investment Company	29,690		—			—		29,690
Preferred Stock
Health Care	—		—			15,974		15,974
Short-Term Investment
Investment Company	127,228		—			—		127,228
Total Assets	2,554,680		274,942			15,974		2,845,596
Liabilites:
Foreign Currency Exchange Contracts	—		(—@		)	—		(—@		)
Total Liabilities	—		(—@		)	—		(—@		)
Total	$	2,554,680	$	274,942		$	15,974	$	2,845,596

Morgan Stanley Institutional Fund Trust

Mid Cap Growth Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Fair Value Measurement Information: (cont’d)

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

	Preferred
	Stock
Balance as of 9/30/08	$	15,974
Accrued discounts/premiums	—
Realized gain (loss)	—
Change in unrealizedappreciation (depreciation)	—
Net purchases (sales)	—
Net transfers in and/or out ofLevel 3	—
Balance as of 6/30/09	$	15,974
The amount of total gains (losses)for the period included in earnings attributable to thechange in unrealized gains(losses) relating to assets andliabilities still held at Level 3 at6/30/09.	$	—

Morgan Stanley Institutional Fund Trust

U.S. Mid Cap Value Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

		Value
	Shares	(000)
Common Stocks (97.6%)
Consumer Discretionary (10.9%)
Autoliv, Inc.	145,900	$	4,197
Harley-Davidson, Inc.	148,614	2,409
Newell Rubbermaid, Inc.	189,210	1,970
O’Reilly Automotive, Inc. (a)	28,300	1,078
Snap-On, Inc.	70,200	2,018
		11,672
Consumer Staples (5.7%)
ConAgra Foods, Inc.	130,750	2,492
Estee Lauder Cos., Inc., Class A	61,430	2,007
Sysco Corp.	71,500	1,607
		6,106
Energy (6.8%)
El Paso Corp.	474,030	4,375
EOG Resources, Inc.	17,900	1,216
Hess Corp.	32,620	1,754
		7,345
Financials (19.6%)
ACE Ltd.	70,947	3,138
Aspen Insurance Holdings Ltd.	112,251	2,508
BB&T Corp.	62,400	1,372
Charles Schwab Corp. (The)	56,900	998
Comerica, Inc.	32,400	685
Invesco Ltd.	104,999	1,871
KeyCorp.	105,582	553
Marsh & McLennan Cos., Inc.	134,568	2,709
Northern Trust Corp.	59,176	3,177
Simon Property Group, Inc.REIT	10,390	534
Weingarten Realty InvestorsREIT	38,600	560
Willis Group Holdings Ltd.	113,500	2,920
		21,025
Health Care (10.1%)
Beckman Coulter, Inc.	75,280	4,301
Brookdale Senior Living, Inc.	218,000	2,123
Healthsouth Corp. (a)	301,768	4,358
		10,782
Industrials (12.5%)
Avery Dennison Corp.	108,300	2,781
Goodrich Corp.	79,030	3,949
Pentair, Inc.	167,420	4,289
Robert Half International, Inc.	100,500	2,374
		13,393
Information Technology (18.3%)
Agilent Technologies, Inc. (a)	106,500	2,163
Diebold, Inc.	123,000	3,242
Fidelity National InformationServices, Inc.	130,900	2,613
Flextronics International Ltd. (a)	402,487	1,654
Perot Systems Corp., Class A (a)	325,030	4,658
Teradata Corp. (a)	75,800	1,776
Zebra Technologies Corp.,Class A (a)	151,192	3,577
		19,683
Materials (5.9%)
Sonoco Products Co.	84,800	2,031
Valspar Corp.	189,010	4,258
		6,289
Utilities (7.8%)
American Electric Power Co.,Inc.	114,390	3,304
Edison International	60,100	1,891
Wisconsin Energy Corp.	79,240	3,226
		8,421
Total Common Stocks (Cost $131,457)		104,716
Short-Term Investment (2.4%)
Investment Company (2.4%)
Morgan Stanley InstitutionalLiquidity Funds — MoneyMarket Portfolio —Institutional Class(p)(Cost $2,615)	2,614,614		2,615
Total Investments (100.0%) (Cost $134,072) +		107,331
Liabilities in Excess of Other Assets (0.0%)		(12		)
Net Assets (100%)		$	107,319

(a)Non-income producing security.

(p)The Portfolio invests in the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (the “Liquidity Fund”), an open-end management investment company managed by the Adviser. Investment Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Fund.For the period ended June 30, 2009, advisory fees paid were reduced by approximately $5,000 relating to the Portfolio’s investment in the Liquidity Fund. For the same period, income distributions earned by the Portfolio are recorded as dividends from affiliates and totaled approximately $43,000. For the period ended June 30, 2009, the approximate cost of purchases and sales in the Liquidity Fund were $41,644,000 and $45,097,000, respectively.

+At June 30, 2009, the U.S. Federal income tax cost basis of investments was approximately $134,072,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was $26,741,000 of which $2,989,000 related to appreciated securities and $29,730,000 related to depreciated securities.

REITReal Estate Investment Trust

Morgan Stanley Institutional Fund Trust

U.S. Mid Cap Value Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Fair Value Measurement Information:

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1		Level 2		Level 3
	Quoted		Other significant		Significant
Investment Type	prices		observable inputs		unobservable inputs		Total
Assets:
Common Stocks
Consumer Discretionary	$	11,672	$	—	$	—	$	11,672
Consumer Staples	6,106		—		—		6,106
Energy	7,345		—		—		7,345
Financials	21,025		—		—		21,025
Health Care	10,782		—		—		10,782
Industrials	13,393		—		—		13,393
Information Technology	19,683		—		—		19,683
Materials	6,289		—		—		6,289
Utilities	8,421		—		—		8,421
Total Common Stocks	104,716		—		—		104,716
Short-Term Investment
Investment Company	2,615		—		—		2,615
Total Assets	107,331		—		—		107,331
Total	$	107,331	$	—	$	—	$	107,331

Morgan Stanley Institutional Fund Trust

U.S. Small Cap Value Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

		Value
	Shares	(000)
Common Stocks (95.7%)
Auto & Transportation (2.2%)
Forward Air Corp.	304,900	$	6,500
UTI Worldwide, Inc. (a)	460,600	5,251
		11,751
Consumer Discretionary (15.4%)
AFC Enterprises, Inc. (a)	588,600	3,973
Brink’s Co. (The)	257,900	7,487
Brink’s Home Security Holdings,Inc. (a)	330,400	9,354
Central Garden & Pet Co. (a)	523,664	5,755
Central Garden & Pet Co.,Class A (a)	399,000	3,930
Copart, Inc. (a)	92,600	3,210
Denny’s Corp. (a)	2,555,180	5,494
Dolan Media Co. (a)	411,622	5,265
Maidenform Brands, Inc. (a)	391,319	4,488
MAXIMUS, Inc.	520,609	21,475
Scotts Miracle-Gro Co. (The),Class A	104,000	3,645
Snap-On, Inc.	98,400	2,828
Stage Stores, Inc.	436,395	4,844
		81,748
Consumer Staples (2.2%)
NBTY, Inc. (a)	420,100	11,813
Energy (1.3%)
Exterran Holdings, Inc. (a)	251,155	4,029
Superior Energy Services,Inc. (a)	170,830	2,950
		6,979
Financial Services (22.0%)
AerCap Holdings N.V. (a)	1,643,700	11,868
Amtrust Financial Services, Inc.	581,484	6,629
Argo Group InternationalHoldings Ltd. (a)	338,100	9,541
Broadridge Financial Solutions,Inc.	237,600	3,939
Conseco, Inc. (a)	2,957,432	7,009
Employers Holdings, Inc.	641,545	8,693
First Niagara Financial Group,Inc.	205,700	2,349
Forestar Group, Inc. (a)	515,900	6,129
Greenhill & Co., Inc.	35,900	2,592
Max Capital Group Ltd.	508,040	9,378
MB Financial, Inc.	257,760	2,627
Platinum Underwriters HoldingsLtd.	356,200	10,184
Potlatch Corp. REIT	263,827	6,408
ProAssurance Corp. (a)	273,918	12,658
Provident New York Bancorp	551,435	4,478
Reinsurance Group of America,Inc.	232,900	8,131
Validus Holdings Ltd.	214,200	4,708
		117,321
Health Care (13.1%)
Allscripts-Misys HealthcareSolutions, Inc.	355,400	5,637
Bio-Rad Laboratories, Inc.,Class A (a)	117,834	8,894
Healthsouth Corp. (a)	1,164,622	16,817
Hill-Rom Holdings, Inc.	247,086	4,008
ICON plc ADR (a)	314,100	6,778
Perrigo Co.	441,183	12,256
PharMerica Corp. (a)	793,600	15,578
		69,968
Materials & Processing (14.2%)
Aecom Technology Corp. (a)	173,700	5,559
Albany International Corp.,Class A	72,877		829
Corn Products International,Inc.	527,400	14,129
Cytec Industries, Inc.	166,475	3,100
Orion Marine Group, Inc. (a)	272,230	5,172
Pactiv Corp. (a)	284,200	6,167
Polypore International, Inc. (a)	478,284	5,319
Quanex Building Products Corp.	146,900	1,648
Rock-Tenn Co., Class A	216,400	8,258
Rogers Corp. (a)	137,339	2,778
Silgan Holdings, Inc.	98,900	4,849
Stantec, Inc. (a)	308,206	7,406
Zep, Inc.	859,238	10,354
		75,568
Producer Durables (6.3%)
AAR Corp. (a)	1,128,071	18,106
Cognex Corp.	127,774	1,805
HEICO Corp., Class A	50,100	1,466
John Bean Technologies Corp.	249,700	3,126
Moog, Inc., Class A (a)	271,500	7,007
Spirit Aerosystems Holdings,Inc., Class A (a)	156,300	2,148
		33,658
Technology (14.6%)
Acxiom Corp.	537,500	4,746
Adtran, Inc.	175,600	3,770
Checkpoint Systems, Inc. (a)	647,600	10,161
Epicor Software Corp. (a)	393,400	2,085
Gartner, Inc. (a)	424,200	6,473
Informatica Corp. (a)	360,000	6,189
Microsemi Corp. (a)	439,700	6,068
MSC. Software Corp. (a)	886,420	5,904
Ness Technologies, Inc. (a)	770,402	3,012
Syniverse Holdings, Inc. (a)	740,698	11,873
Tekelec (a)	604,400	10,172
Zebra Technologies Corp.,Class A (a)	301,900	7,143
		77,596
Utilities (4.4%)
ALLETE, Inc.	232,000	6,670
Avista Corp.	343,521	6,118
Portland General Electric Co.	182,700	3,559
UGI Corp.	280,400	7,148
		23,495
Total Common Stocks (Cost $524,848)		509,897
Short-Term Investment (4.5%)
Investment Company (4.5%)
Morgan Stanley InstitutionalLiquidity Funds — MoneyMarket Portfolio —Institutional Class(p) (Cost $24,038)	24,037,665	24,038
Total Investments (100.2%) (Cost $548,886)+		533,935
Liabilities in Excess of Other Assets (-0.2%)		(1,055		)
Net Assets (100%)		$	532,880

Morgan Stanley Institutional Fund Trust

U.S. Small Cap Value Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

(a)Non-income producing security.

(p)The Portfolio invests in the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (the “Liquidity Fund”), an open-end management investment company managed by the Adviser. Investment Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Fund. For the period ended June 30, 2009, advisory fees paid were reduced by approximately $20,000 relating to the Portfolio’s investment in the Liquidity Fund. For the same period, income distributions earned by the Portfolio are recorded as dividends from affiliates and totaled approximately $140,000. For the period ended June 30, 2009, the approximate cost of purchases and sales in the Liquidity Fund were $112,131,000 and $126,339,000, respectively.

+At June 30, 2009, the U.S. Federal income tax cost basis of investments was approximately $548,886,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was $14,951,000 of which $63,420,000 related to appreciated securities and $78,371,000 related to depreciated securities.

ADRAmerican Depositary Receipt

REITReal Estate Investment Trust

Fair Value Measurement Information:

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1		Level 2		Level 3
	Quoted		Other significant		Significant
Investment Type	prices		observable inputs		unobservable inputs		Total
Assets:
Common Stocks
Auto & Transportation	$	11,751	$	—	$	—	$	11,751
Consumer Discretionary	81,748		—		—		81,748
Consumer Staples	11,813		—		—		11,813
Energy	6,979		—		—		6,979
Financial Services	117,321		—		—		117,321
Health Care	69,968		—		—		69,968
Materials & Processing	75,568		—		—		75,568
Producer Durables	33,658		—		—		33,658
Technology	77,596		—		—		77,596
Utilities	23,495		—		—		23,495
Total Common Stocks	509,897		—		—		509,897
Short-Term Investment
Investment Company	24,038		—		—		24,038
Total Assets	533,935		—		—		533,935
Total	$	533,935	$	—	$	—	$	533,935

Morgan Stanley Institutional Fund Trust

Value Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

		Value
	Shares	(000)
Common Stocks (97.1%)
Consumer Discretionary (17.0%)
Comcast Corp., Class A	384,377	$	5,570
Home Depot, Inc.	56,000	1,323
J.C. Penney Co., Inc.	39,800	1,143
Liberty Media Corp. -Entertainment, Class A (a)	76,700	2,052
Liberty Media Corp. -Interactive, Class A (a)	124,600	624
Lowe’s Cos., Inc.	63,400	1,230
Macy’s, Inc.	83,759	985
News Corp., Class B	219,500	2,320
Target Corp.	13,500	533
Time Warner, Inc.	141,933	3,575
Viacom, Inc., Class B (a)	245,550	5,574
		24,929
Consumer Staples (15.1%)
Altria Group, Inc.	69,500	1,139
Cadbury plc ADR	120,492	4,145
Coca-Cola Co. (The)	44,400	2,131
CVS Caremark Corp.	58,900	1,877
Dr. Pepper Snapple Group,Inc. (a)	55,244	1,171
Kimberly-Clark Corp.	9,100	477
Kraft Foods, Inc., Class A	117,550	2,979
Philip Morris International, Inc.	35,800	1,561
Procter & Gamble Co. (The)	8,300	424
Unilever N.V. (NY Shares)	131,700	3,184
Wal-Mart Stores, Inc.	61,700	2,989
		22,077
Energy (3.6%)
BP plc ADR	17,400	830
Chevron Corp.	11,600	769
ConocoPhillips	19,400	816
Halliburton Co.	82,900	1,716
Total S.A. ADR	20,400	1,106
		5,237
Financials (19.5%)
Aflac, Inc.	16,800	522
Bank of America Corp.	115,221	1,521
Bank of New York Mellon Corp.(The)	115,546	3,387
Berkshire Hathaway, Inc.,Class B (a)	570	1,651
Chubb Corp.	169,480	6,759
Goldman Sachs Group, Inc.(The)	7,600	1,120
JPMorgan Chase & Co.	118,900	4,056
MetLife, Inc.	56,500	1,695
PNC Financial Services Group,Inc.	37,800	1,467
Torchmark Corp.	28,800	1,067
Travelers Cos., Inc. (The)	77,515	3,181
U.S. Bancorp	48,200	864
Wells Fargo & Co.	50,100	1,215
		28,505
Health Care (16.0%)
Abbott Laboratories	23,100	1,087
Boston Scientific Corp. (a)	186,200	1,888
Bristol-Myers Squibb Co.	156,100	3,170
Cardinal Health, Inc.	86,900	2,655
Eli Lilly & Co.	51,800	1,794
GlaxoSmithKline plc ADR	19,000	671
Pfizer, Inc.	199,300	2,990
Roche Holding AG ADR	30,400	1,037
Schering-Plough Corp.	149,900	3,766
UnitedHealth Group, Inc.	33,100	827
WellPoint, Inc. (a)	20,500		1,043
Wyeth	55,000	2,496
		23,424
Industrials (1.6%)
Emerson Electric Co.	22,900	742
General Electric Co.	134,500	1,576
		2,318
Information Technology (14.4%)
Accenture Ltd.,, Class A	21,500	719
Cisco Systems, Inc. (a)	99,600	1,856
Computer Sciences Corp. (a)	9,927	440
Dell, Inc. (a)	245,471	3,370
eBay, Inc. (a)	243,700	4,175
Flextronics International Ltd (a)	52,500	216
Hewlett-Packard Co.	43,100	1,666
Intel Corp.	114,200	1,890
International Business MachinesCorp.	18,500	1,932
KLA-Tencor Corp.	47,600	1,202
Microsoft Corp.	49,700	1,181
Time Warner Cable, Inc.	42,842	1,357
Western Union Co. (The)	26,300	431
Yahoo!, Inc. (a)	38,300	600
		21,035
Materials (6.0%)
Alcoa, Inc.	199,000	2,056
E.I. du Pont de Nemours & Co.	61,300	1,570
International Paper Co.	336,521	5,092
		8,718
Telecommunication Services (3.9%)
AT&T, Inc.	84,900	2,109
Verizon Communications, Inc.	115,900	3,562
		5,671
Total Common Stocks (Cost $175,105)		141,914
Short-Term Investment (3.2%)
Investment Company (3.2%)
Morgan Stanley InstitutionalLiquidity Funds —Government Portfolio —Institutional Class (p)(Cost $4,616)	4,615,745	4,616
Total Investments (100.3%) (Cost $179,721) +		146,530
Liabilities in Excess of Other Assets (-0.3%)		(476		)
Net Assets (100%)		$	146,054

(a)Non-income producing security.

(p)The Portfolio invests in the Morgan Stanley Institutional Liquidity Funds — Government Portfolio — Institutional Class (the “Liquidity Fund”), an open-end management investment company managed by the Adviser. Investment Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Fund. For the period ended June 30, 2009, advisory fees paid were reduced by approximately $6,000 relating to the Portfolio’s investment in the Liquidity Fund. For the same period, income distributions earned by the Portfolio are recorded as dividends from affiliates and totaled approximately $28,000. For the period ended June 30, 2009, the approximate cost of purchases and sales in the Liquidity Fund were $46,067,000 and $51,261,000, respectively.

Morgan Stanley Institutional Fund Trust

Value Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

+At June 30, 2009, the U.S. Federal income tax cost basis of investments was approximately $179,721,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was $33,191,000 of which $4,876,000 related to appreciated securities and $38,067,000 related to depreciated securities.

ADRAmerican Depositary Receipt

Fair Value Measurement Information:

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1		Level 2		Level 3
	Quoted		Other significant		Significant
Investment Type	prices		observable inputs		unobservable inputs		Total
Assets:
Common Stocks
Consumer Discretionary	$	24,929	$	—	$	—	$	24,929
Consumer Staples	22,077		—		—		22,077
Energy	5,237		—		—		5,237
Financials	28,505		—		—		28,505
Health Care	23,424		—		—		23,424
Industrials	2,318		—		—		2,318
Information Technology	21,035		—		—		21,035
Materials	8,718		—		—		8,718
Telecommunication Services	5,671		—		—		5,671
Total Common Stocks	141,914		—		—		141,914
Short-Term Investment
Investment Company	4,616		—		—		4,616
Total Assets	146,530		—		—		146,530
Total	$	146,530	$	—	$	—	$	146,530

Morgan Stanley Institutional Fund Trust

Core Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Fixed Income Securities (99.0%)
Agency Adjustable Rate Mortgages (0.5%)
Government National Mortgage Association,
Various Pools:
4.38%, 2/20/25 - 3/20/25	$	43	$	45
4.63%, 8/20/25 - 9/20/27	77		78
5.38%, 4/20/25 - 6/20/25	328		341
			464
Agency Bond — Banking (FDIC Guaranteed) (2.2%)
General Motors Acceptance Corp. LLC,
2.20%, 12/19/12	2,140		2,133
Agency Fixed Rate Mortgages (39.0%)
Federal Home Loan Mortgage Corp.,
Conventional Pools:
10.00%, 10/1/12 - 11/1/20	8		9
11.50%, 8/1/19	11		12
Gold Pools:
5.00%, 10/1/35	2,214		2,261
6.00%, 5/1/37 - 8/1/37	4,388		4,586
6.50%, 4/1/29	54		58
7.50%, 2/1/30 - 11/1/31	231		250
8.00%, 10/1/29 - 10/1/31	113		125
8.50%, 3/1/30	25		28
10.00%, 6/1/17 - 3/1/21	46		51
July TBA:
5.50%, 7/15/39(i)	1,900		1,961
August TBA:
6.50%, 8/15/39(i)	675		715
Federal National Mortgage Association,
Conventional Pools:
5.00%, 3/1/39	1,630		1,663
5.50%, 4/1/34 - 8/1/38	11,208		11,600
6.00%, 7/1/37 - 10/1/38	2,456		2,570
6.50%, 7/1/29 - 2/1/33	1,083		1,165
7.00%, 10/1/31 - 12/1/31	6		7
7.50%, 7/1/29 - 6/1/32	336		366
8.00%, 11/1/29 - 6/1/31	295		321
8.50%, 5/1/23 - 7/1/31	302		330
9.00%, 4/1/26	210		230
9.50%, 2/1/20 - 8/1/21	125		138
10.00%, 8/1/18	2		3
10.50%, 10/1/18	11		13
11.00%, 9/1/19 - 9/1/20	26		29
11.50%, 11/1/19	22		26
August TBA:
4.50%, 8/25/24 - 8/25/39(i)	3,975		3,994
5.00%, 8/25/39(i)	1,750		1,775
6.50%, 8/25/39(i)	1,050		1,114
Government National Mortgage Association,
Various Pools:
10.00%, 9/15/18 - 4/15/20	19		20
10.50%, 11/15/14 - 7/15/21	20		22
11.00%, 12/15/09 - 9/15/10	1		1
11.50%, 4/15/13 - 8/15/13	18		19
12.00%, 12/15/12 - 3/15/14	5		6
July TBA:
4.50%, 7/15/39(i)	975		973
5.00%, 7/15/39(i)	1,050		1,071
			37,512
Asset Backed Securities (1.6%)
Capital Auto Receivables Asset Trust,
0.33%, 4/15/11(h)	542		539
0.38%, 7/15/10(h)	279		274
4.98%, 5/15/11	416		423
Capital One Auto Finance Trust,
5.07%, 7/15/11	149		149
GS Auto Loan Trust,
5.37%, 12/15/10	190		192
			1,577
Collateralized Mortgage Obligations — Agency Collateral Series (0.1%)
Federal Home Loan Mortgage Corp.,
IO STRIPS
8.00%, 1/1/28	34		6
Government National Mortgage Association,
Inv Fl IO
7.26%, 9/16/31	48		4
7.63%, 12/16/25 - 9/16/27	463		48
8.19%, 9/20/30	54		5
			63
Commercial Mortgage Backed Securities (2.2%)
Banc of America Commercial Mortgage, Inc.,
5.45%, 1/15/49	300		225
5.94%, 2/10/51(h)	450		364
Bear Stearns Commercial Mortgage Securities,
5.47%, 1/12/45(h)	325		271
Citigroup Commercial Mortgage Trust,
5.43%, 10/15/49	200		160
5.89%, 12/10/49(h)	402		319
Gemsco Mortgage Pass Through Certificate,
8.70%, 11/25/10(d)(l)	—@		—@
Greenwich Capital Commercial Funding Corp.,
5.44%, 3/10/39	275		220
GS Mortgage Securities Corp. II,
5.56%, 11/10/39	200		164
JPMorgan Chase Commercial Mortgage Securities Corp.,
6.07%, 6/15/49(c)(h)	225		172
Lehman Brothers-UBS Commercial Mortgage Trust,
5.87%, 9/15/45(h)	250		192
			2,087
Finance (9.2%)
Ace INA Holding, Inc.,
5.60%, 5/15/15	100		101
5.90%, 6/15/19	95		96
AIG SunAmerica Global Financing VI,
6.30%, 5/10/11(e)	365		343
Allstate Corp. (The),
7.45%, 5/16/19	90		98
American Express Co.,
8.13%, 5/20/19	240		249
Bank of America Corp.,
5.75%, 12/1/17	885		789
Bank of New York Mellon Corp. (The),
4.50%, 4/1/13	115		117
5.13%, 8/27/13	200		211
Barclays Bank plc,
6.75%, 5/22/19	220		219
BB&T Corp.,
6.85%, 4/30/19	135		141
Bear Stearns Cos. LLC (The),
6.40%, 10/2/17	25		25
7.25%, 2/1/18	170		180
Berkshire Hathaway Finance Corp.,
5.40%, 5/15/18(c)	160		165
Capital One Financial Corp.,
7.38%, 5/23/14	55		57
Catlin Insurance Co., Ltd.,
7.25%,(e)(h)(o)	355		199
Chubb Corp.,
5.75%, 5/15/18	60		62
Citigroup, Inc.,
5.88%, 5/29/37	250		196
6.13%, 11/21/17 - 5/15/18(c)	245		215

Morgan Stanley Institutional Fund Trust

Core Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Finance (cont’d)
Credit Suisse USA, Inc.,
5.13%, 8/15/15(c)	$	105	$	108
Credit Suisse, New York,
5.00%, 5/15/13	80		82
5.50%, 5/1/14(c)	115		119
Goldman Sachs Group, Inc. (The),
6.15%, 4/1/18	580		566
HBOS plc,
6.75%, 5/21/18(e)	340		257
HSBC Finance Corp.,
6.75%, 5/15/11	235		242
JPMorgan Chase & Co.,
4.75%, 5/1/13(c)	275		279
6.00%, 1/15/18	285		284
6.30%, 4/23/19	75		75
MetLife, Inc.,
6.75%, 6/1/16	30		30
7.72%, 2/15/19	220		236
Nationwide Building Society,
4.25%, 2/1/10(e)	210		209
NYSE Euronext,
4.80%, 6/28/13	135		140
Platinum Underwriters Finance, Inc.,
7.50%, 6/1/17	265		226
PNC Funding Corp.,
6.70%, 6/10/19	125		129
Principal Financial Group, Inc.,
8.88%, 5/15/19	100		105
Prudential Financial, Inc.,
6.63%, 12/1/37(c)	225		195
Simon Property Group LP,
6.75%, 5/15/14(c)	70		70
Sovereign Bancorp, Inc.,
0.84%, 3/23/10(h)	415		383
State Street Corp.,
4.30%, 5/30/14	55		54
Travelers Cos., Inc. (The),
5.80%, 5/15/18(c)	175		180
5.90%, 6/2/19	10		11
Two-Rock Pass Through Trust,
1.90%,(e)(h)(o)	315		1
U.S. Bancorp,
4.20%, 5/15/14	145		147
UBS AG,
5.88%, 12/20/17	135		126
WellPoint, Inc.,
7.00%, 2/15/19	45		47
Wells Fargo & Co.,
5.63%, 12/11/17(c)	600		592
Xlliac Global Funding,
4.80%, 8/10/10(e)	580		540
			8,896
Industrials (18.3%)
Altria Group, Inc.,
9.25%, 8/6/19(c)	125		141
Amgen, Inc.,
5.70%, 2/1/19	185		196
5.85%, 6/1/17	35		37
Anheuser-Busch InBev Worldwide, Inc.,
7.20%, 1/15/14(c)(e)	205		221
Apache Corp.,
6.90%, 9/15/18(c)	90		103
Arcelor Mittal,
6.13%, 6/1/18	145		127
9.85%, 6/1/19(c)	275		297
Archer-Daniels-Midland Co.,
5.45%, 3/15/18	120		126
AstraZeneca plc,
5.90%, 9/15/17(c)	65		70
AT&T, Inc.,
6.15%, 9/15/34	200		190
6.30%, 1/15/38	435		422
BAT International Finance plc,
9.50%, 11/15/18(e)	165		194
Baxter International, Inc.,
4.63%, 3/15/15(c)	95		98
Biogen Idec, Inc.,
6.88%, 3/1/18	165		167
Boeing Co. (The),
6.00%, 3/15/19	95		104
BP Capital Markets plc,
3.88%, 3/10/15(c)	80		80
4.75%, 3/10/19	210		210
Bristol-Myers Squibb Co.,
5.45%, 5/1/18	30		32
Brookfield Asset Management, Inc.,
5.80%, 4/25/17	115		95
7.13%, 6/15/12	60		59
Bunge Ltd. Finance Corp.,
8.50%, 6/15/19	60		63
Canadian National Railway Co.,
5.55%, 5/15/18	95		99
Caterpillar, Inc.,
7.90%, 12/15/18(c)	45		52
Chevron Corp.,
4.95%, 3/3/19	200		207
Cisco Systems, Inc.,
4.95%, 2/15/19	140		140
5.90%, 2/15/39(c)	70		69
Coca-Cola Co. (The),
4.88%, 3/15/19	145		149
Comcast Corp.,
5.70%, 5/15/18(c)	360		362
6.50%, 1/15/17	110		117
ConAgra Foods, Inc.,
8.25%, 9/15/30	285		319
Conoco Phillips,
5.20%, 5/15/18	235		238
Corning, Inc.,
6.63%, 5/15/19	80		82
CVS Pass-Through Trust,
6.04%, 12/10/28(e)	362		310
Daimler Finance North America LLC,
7.30%, 1/15/12	95		98
8.50%, 1/18/31(c)	105		111
Delhaize America, Inc.,
9.00%, 4/15/31	75		91
Delhaize Group,
5.88%, 2/1/14	125		128
Deutsche Telekom International Finance B.V.,
6.00%, 7/8/19(c)	75		76
8.75%, 6/15/30	110		129
Devon Financing Corp. ULC,
7.88%, 9/30/31	145		171
Diageo Capital plc,
7.38%, 1/15/14	155		176
E.I. Du Pont de Nemours & Co.,
6.00%, 7/15/18	90		97
Emerson Electric Co.,
4.88%, 10/15/19(c)	165		166
5.00%, 4/15/19	30		30
EnCana Corp.,
5.90%, 12/1/17	95		97
6.50%, 5/15/19(c)	35		38

Morgan Stanley Institutional Fund Trust

Core Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Industrials (cont’d)
France Telecom S.A.,
8.50%, 3/1/31	$	60	$	77
General Electric Co.,
5.25%, 12/6/17	815		802
General Mills, Inc.,
5.65%, 2/15/19	280		293
GlaxoSmithKline Capital, Inc.,
5.65%, 5/15/18	90		95
Grupo Televisa S.A.,
6.00%, 5/15/18	110		104
Harley-Davidson Funding Corp.,
6.80%, 6/15/18(e)	160		139
Hewlett-Packard Co.,
4.75%, 6/2/14	115		120
5.50%, 3/1/18	65		69
Home Depot, Inc.,
5.40%, 3/1/16	270		270
Honeywell International, Inc.,
5.30%, 3/1/18	125		131
International Business Machines Corp.,
8.00%, 10/15/38(c)	200		260
John Deere Capital Corp.,
5.75%, 9/10/18	95		97
KLA-Tencor Corp.,
6.90%, 5/1/18	190		171
Koninklijke Philips Electronics N.V.,
5.75%, 3/11/18	190		192
Kraft Foods, Inc.,
6.13%, 2/1/18 - 8/23/18	325		337
Kroger Co. (The),
5.00%, 4/15/13	40		41
6.40%, 8/15/17	50		53
LG Electronics, Inc.,
5.00%, 6/17/10(e)	175		174
McDonald’s Corp.,
5.00%, 2/1/19(c)	70		72
Medco Health Solutions, Inc.,
7.13%, 3/15/18	185		195
Merck & Co., Inc.,
5.00%, 6/30/19	345		350
Microsoft Corp.,
4.20%, 6/1/19	80		78
Monsanto Co.,
5.13%, 4/15/18(c)	105		109
News America, Inc.,
6.90%, 3/1/19(c)(e)	220		230
Norfolk Southern Corp.,
5.75%, 1/15/16(e)	100		104
Novartis Capital Corp.,
4.13%, 2/10/14	230		237
Parker Hannifin Corp.,
5.50%, 5/15/18	60		61
Pearson Dollar Finance Two plc,
6.25%, 5/6/18(e)	130		125
Pfizer, Inc.,
6.20%, 3/15/19	410		449
Philip Morris International, Inc.,
5.65%, 5/16/18	175		184
Potash Corp of Saskatchewan, Inc.,
6.50%, 5/15/19(c)	75		81
Procter & Gamble Co. (The),
4.60%, 1/15/14	95		100
Questar Market Resources, Inc.,
6.80%, 4/1/18	120		113
Rio Tinto Finance USA Ltd.,
6.50%, 7/15/18	95		95
Roche Holdings, Inc.,
6.00%, 3/1/19(e)		315		337
Telecom Italia Capital S.A.,
7.00%, 6/4/18	265		268
7.18%, 6/18/19	120		122
Telefonica Europe B.V.,
8.25%, 9/15/30	350		435
Time Warner Cable, Inc.,
6.75%, 7/1/18 - 6/15/39	155		156
8.25%, 4/1/19	70		80
8.75%, 2/14/19	200		233
Time Warner, Inc.,
5.88%, 11/15/16(c)	105		103
7.70%, 5/1/32	10		10
Transocean, Inc.,
6.00%, 3/15/18	140		146
Tyco Electronics Group S.A.,
5.95%, 1/15/14	490		458
Union Pacific Corp.,
6.13%, 2/15/20	50		52
7.88%, 1/15/19	210		241
UnitedHealth Group, Inc.,
6.00%, 2/15/18	100		96
Verizon Communications, Inc.,
5.50%, 2/15/18	415		413
8.95%, 3/1/39	145		184
Verizon Wireless Capital LLC,
5.55%, 2/1/14(e)	90		96
Viacom, Inc.,
6.88%, 4/30/36(c)	165		152
Vivendi,
6.63%, 4/4/18(e)	145		146
Vodafone Group plc,
5.63%, 2/27/17	65		66
Walgreen Co.,
5.25%, 1/15/19	190		198
Wal-Mart Stores, Inc.,
4.13%, 2/1/19(c)	340		332
4.25%, 4/15/13	150		156
Weatherford International Ltd.,
6.00%, 3/15/18	130		128
WPP Finance,
8.00%, 9/15/14(c)	100		102
Wyeth,
5.45%, 4/1/17	25		26
5.50%, 2/15/16	25		26
Xerox Corp.,
6.35%, 5/15/18	105		94
XTO Energy, Inc.,
5.50%, 6/15/18	170		171
			17,619
Municipal Bonds (0.4%)
Illinois State Toll Highway Authority, Highway Revenue, Build America Bonds,
6.18%, 1/1/34	130		134
State of California, General Obligation Bonds,
5.95%, 4/1/16	255		245
			379
Sovereign (0.7%)
Federal Republic of Germany,
4.88%, 6/17/19(c)	180		187
Federative Republic of Brazil,
6.00%, 1/17/17	290		299
Korea Railroad Corp.,
5.38%, 5/15/13(e)	230		225
			711

Morgan Stanley Institutional Fund Trust

Core Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
U.S. Agency Securities (4.9%)
Federal Home Loan Mortgage Corp.,
4.88%, 6/13/18(c)	$	1,085	$	1,170
Federal National Mortgage Association,
2.50%, 5/15/14	2,970		2,923
6.63%, 11/15/30	485		596
			4,689
U.S. Treasury Securities (16.5%)
U.S. Treasury Bond Coupon STRIPS,	7,730		4,658
Zero Coupon, 11/15/19 -11/15/21(c)
U.S. Treasury Bonds,
3.50%, 2/15/39(c)	760		657
4.25%, 5/15/39	2,220		2,198
U.S. Treasury Inflation Indexed Bonds,
3.63%, 4/15/28	461		563
U.S. Treasury Notes,
0.88%, 5/31/11(c)	5,900		5,881
1.88%, 4/30/14(c)	1,000		971
2.75%, 2/15/19(c)	137		128
3.13%, 5/15/19(c)	800		774
			15,830
Utilities (3.4%)
Alabama Power Co.,
5.80%, 11/15/13	105		114
CenterPoint Energy Resources Corp.,
6.25%, 2/1/37	135		102
7.88%, 4/1/13	85		91
E. ON International Finance B.V.,
5.80%, 4/30/18(e)	260		271
EDF S.A.,
6.50%, 1/26/19(e)	230		252
Enterprise Products Operating LLC,
6.50%, 1/31/19(c)	160		163
FPL Group Capital, Inc.,
6.00%, 3/1/19	125		134
Georgia Power Co.,
6.00%, 11/1/13	30		33
Kinder Morgan Energy Partners LP,
5.95%, 2/15/18	220		216
NiSource Finance Corp.,
1.23%, 11/23/09(h)	25		25
6.80%, 1/15/19	170		159
Ohio Edison Co.,
6.40%, 7/15/16	180		184
Ohio Power Co.,
6.00%, 6/1/16	130		133
Pacificorp.,
5.50%, 1/15/19	45		48
Peco Energy Co.,
5.35%, 3/1/18	120		123
Plains All American Pipeline LP/PAA Finance Corp.,
6.70%, 5/15/36	160		145
PPL Energy Supply LLC,
6.30%, 7/15/13(c)	165		173
Progress Energy, Inc.,
7.05%, 3/15/19	170		189
Public Service Co. of Colorado,
5.80%, 8/1/18	25		27
6.25%, 9/1/37	90		99
Public Service Electric & Gas Co.,
5.00%, 1/1/13	100		103
Texas Eastern Transmission LP,
7.00%, 7/15/32	115		121
Union Electric Co.,
6.70%, 2/1/19	115		120
Virginia Electric & Power Co.,
8.88%, 11/15/38		200		269
			3,294
Total Fixed Income Securities (Cost $95,238)			95,254

	No. of
	Contracts
Call Options Purchased (0.0%)
EuroDollar 2-Year Mid-Curve Callat $ 97.75, expiring 9/11/09(a)(Cost $193)	249	25

	Shares
Short-Term Investments (42.3%)
Securities held as Collateral on Loaned Securities (22.7%)
Investment Company (17.1%)
Morgan Stanley InstitutionalLiquidity Funds — Money Market Portfolio — Institutional Class(p)	16,458,435	16,458

	Face Amount
	(000)
Repurchase Agreement (5.6%)
Credit Suisse Securities USALLC, 0.11%, dated 6/30/09, due7/1/09, repurchase price$5,361;fully collateralized by U.Sgovernment agency securities atthe date of this Portfolio ofInvestments as follows: FederalNational Mortgage Association,Fixed Rate Mortgages: ratesranging from 5.50% to 6.50%,due 12/1/33 to 1/1/39, valued at$5,468.	$	5,361	5,361
			21,819

	Shares
Investment Company (2.0%)
Morgan Stanley InstitutionalLiquidity Funds — Money MarketPortfolio — Institutional Class(p)	1,905,673	1,906

	Face Amount
	(000)
U.S. Agency Security (1.5%)
Federal National Mortgage Association,
0.19%, 9/1/09(t)	$	1,500	1,500
U.S. Treasury Securities (16.1%)
U.S. Treasury Bills,
0.02%, 7/2/09(c)(r)	3,000		3,000
0.13%, 8/6/09(r)	1,500		1,500
0.15%, 8/20/09(r)	1,000		1,000
0.16%, 9/10/09(c)(r)	8,000		7,997
0.27%, 11/12/09(c)(j)(r)	1,983		1,981
			15,478
Total Short-Term Investments (Cost $40,702)			40,703
Total Investments (141.3%) (Cost $136,133) —Including $22,191 of Securities Loaned +			135,982
Liabilities in Excess of Other Assets (-41.3%)			(39,716		)
Net Assets (100%)			$	96,266

(a)Non-income producing security.

Morgan Stanley Institutional Fund Trust

Core Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

(c)All or a portion of security on loan at June 30, 2009. At June 30, 2009, the Portfolio had loaned securities with a total value of $22,191,000. This was secured by collateral of $21,819,000 which was received as cash and subsequently invested in short-term investments as reported in the Portfolio of Investments.

(d)At June 30, 2009, the Portfolio held a fair value 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 Portfolio’s Trustees.

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

(h)Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated rate. The rates shown are those in effect on June 30, 2009.

(i)Security is subject to delayed delivery.

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

(l)Security has been deemed illiquid at June 30, 2009.

(o)Perpetual — Security does not have a predetermined maturity date. Rate for this security is fixed for a period of time then reverts to a floating rate. The interest shown is the rate in effect at June 30, 2009.

(p)The Portfolio invests in the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (the “Liquidity Fund”), an open-end management investment company managed by the Adviser, both directly, and as a portion of the securities held as collateral on loaned securities. Investment Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Fund. For the period ended June 30, 2009, advisory fees paid were reduced by approximately $5,000 relating to the Portfolio’s investment in the Liquidity Fund. For the same period, income distributions earned by the Portfolio are recorded as dividends from affiliates and totaled approximately $50,000. For the period ended June 30, 2009, the approximate cost of purchases and sales in the Liquidity Fund were $190,491,000 and $188,292,000, respectively.

(r)Rate shown is the yield to maturity at June 30, 2009.

(t)Purchased on a discount basis. The interest rate shown has been adjusted to reflect a money market equivalent yield.

@Face Amount/Value is less than $500.

+At June 30, 2009, the U.S. Federal income tax cost basis of investments was approximately $136,133,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was $151,000 of which $1,772,000 related to appreciated securities and $1,923,000 related to depreciated securities.

Inv FlInverse Floating Rate — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at June 30, 2009.

IOInterest Only

STRIPSSeparate Trading of Registered Interest and Principal of Securities

TBATo Be Announced

Futures Contracts:

The Portfolio had the following futures contract(s) open at period end:

					Net Unrealized
	Number				Appreciation
	of	Value		Expiration	(Depreciation)
	Contracts	(000)		Date	(000)
Long:
90 Day
EuroDollar	14	$	3,408	Mar-11	$	(10	)
90 Day
EuroDollar	14	3,396		Jun-11	(12		)
90 Day
EuroDollar	14	3,385		Sep-11	(13		)
90 Day
EuroDollar	14	3,375		Dec-11	(13		)
U.S. Treasury
2 yr. Note	73	15,784		Sep-09	(26		)
U.S. Treasury
5 yr. Note	58	6,654		Sep-09	44
Short:
U.S. Treasury
10 yr. Note	94	10,929		Sep-09	29
U.S. Treasury
Long Bond	33	3,906		Sep-09	(92		)
					$	(93	)

Options Written:

The Portfolio had the following option(s) written open at period end:

		Premiums
	Number of	Received		Value
	Contracts	(000)		(000)
Call Option Written:
EuroDollar 2-Year Mid-Curve Call at $98.50,expiring 9/11/09	206	$	24	$	(1	)

Morgan Stanley Institutional Fund Trust

Core Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Credit Default Swap Contracts

The Portfolio had the following credit default swap agreement(s) open at period end:

									Unrealized
		Notional					Upfront		Appreciation
	Buy/Sell	Amount		Pay/Receive		Termination	Payments		(Depreciation)
Swap Counterparty and Reference Obligation	Protection	(000)		Fixed Rate		Date	(000)		(000)
Bank of America
Tyco Electronics Ltd., 6.00%, 10/1/12	Buy	$	395	5.00	%	6/20/14	$	17	$	(32	)

Interest Rate Swap Contracts

The Portfolio had the following interest rate swap agreement(s) open at period end:

								Unrealized
						Notional		Appreciation
	Floating Rate	Pay/Receive			Termination	Amount		(Depreciation)
Swap Counterparty	Index	Floating Rate	Fixed Rate		Date	(000)		(000)
Barclays Capital
	3 Month LIBOR	Pay	4.66	%	5/27/19	$	2,059	$	(7	)
	3 Month LIBOR + 1.35%	Receive	3.63		4/15/28	539		9
	3 Month LIBOR	Receive	4.04		5/27/39	472		8
UBS
	3 Month LIBOR	Pay	4.66		5/27/19	6,013		(15		)
	3 Month LIBOR	Receive	4.04		5/27/39	1,392		25
								$	20

Zero Coupon Swap Contracts

The Portfolio had the following zero coupon swap agreement(s) open at period end:

						Unrealized
	Notional					Appreciation
	Amount		Floating	Pay/Receive	Termination	(Depreciation)
Swap Counterparty	(000)		Rate Index	Floating Rate	Date	(000)
Barclays Capital
	$	1,457	3 Month LIBOR	Pay	11/15/19	$	(61	)
	2,380		3 Month LIBOR	Receive	11/15/19	(155		)
JPMorgan Chase
	2,979		3 Month LIBOR	Pay	11/15/21	(121		)
						$	(337	)

LIBOR — London Inter Bank Offer Rate

Morgan Stanley Institutional Fund Trust

Core Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Fair Value Measurement Information:

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1			Level 2			Level 3
	Quoted			Other significant			Significant
Investment Type	prices			observable inputs			unobservable inputs		Total
Assets:
Call Options Purchased	$	25		$	—		$	—	$	25
Fixed Income Securities
Agency Adjustable Rate Mortgages	—			464			—		464
Agency Bonds — Banking (FDICGuaranteed)	—			2,133			—		2,133
Agency Fixed Rate Mortgages	—			37,512			—		37,512
Asset Backed Securities	—			1,577			—		1,577
Collateralized Mortgage Obligations— Agency Collateral Series	—			63			—		63
Commercial Mortgage BackedSecurities	—			2,087			—@		2,087
Finance	—			8,896			—		8,896
Industrials	—			17,619			—		17,619
Municipal Bonds	—			379			—		379
Sovereign	—			711			—		711
U.S. Agency Securities	—			4,689			—		4,689
U.S. Treasury Securities	—			15,830			—		15,830
Utilities	—			3,294			—		3,294
Total Fixed Income Securities	—			95,254			—@		95,254
Futures Contracts	73			—			—		73
Interest Rate Swap Contracts	—			42			—		42
Short-Term Investments
Investment Company	18,364			—			—		18,364
Repurchase Agreement	—			5,361			—		5,361
U.S. Agency Security	—			1,500			—		1,500
U.S. Treasury Securities	—			15,478			—		15,478
Total Short-Term Investments	18,364			22,339			—		40,703
Total Assets	18,462			117,635			—@		136,097
Liabilities:
Credit Default Swap Contracts	—			(32		)	—		(32		)
Futures Contracts	(166		)	—			—		(166		)
Interest Rate Swap Contracts	—			(22		)	—		(22		)
Options Written	(1		)	—			—		(1		)
Zero Coupon Swap Contracts	—			(337		)	—		(337		)
Total Liabilities	(167		)	(391		)	—		(558		)
Total	$	18,295		$	117,244		$	—@	$	135,539

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

	Fixed Income
	Securities
Balance as of 9/30/08	$	7,357
Accrued discounts/premiums	—
Realized gain (loss)	(9,170		)
Change in unrealizedappreciation (depreciation)	8,622
Net purchases (sales)	(4,828		)
Net transfers in and/or out ofLevel 3	(1,981		)
Balance as of 6/30/09	$	—@
The amount of total gains (losses)for the period included inearnings attributable to thechange in unrealized gains(losses) relating to assets andliabilities still held at Level 3 at6/30/09.	$	—@

Morgan Stanley Institutional Fund Trust
Core Plus Fixed Income Portfolio
Portfolio of Investments
Third Quarter Report
June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Fixed Income Securities (97.8%)
Agency Adjustable Rate Mortgages (0.7%)
Government National Mortgage Association,
Various Pools:
4.13%, 10/20/25 - 11/20/25	$	27	$	27
4.38%, 1/20/25 - 3/20/25	3,308		3,400
4.63%, 7/20/25 - 9/20/27	618		636
5.38%, 4/20/25 - 6/20/25	3,111		3,222
			7,285
Agency Bond — Banking (FDIC Guaranteed) (2.5%)
GMAC LLC,
2.20%, 12/19/12	24,300		24,222
Agency Fixed Rate Mortgages (40.3%)
Federal Home Loan Mortgage Corp.,
Conventional Pools:
10.00%, 10/1/10 - 11/1/20	758		849
10.50%, 9/1/09 - 10/1/20	123		138
11.00%, 12/1/10 - 9/1/20	153		174
11.25%, 10/1/11 - 12/1/15	68		78
11.50%, 1/1/11 - 12/1/11	1		1
11.75%, 4/1/19	4		4
12.00%, 10/1/09 - 2/1/15	2		3
13.00%, 6/1/19	2		2
14.75%, 3/1/10	—@		—@
Gold Pools:
4.50%, 5/1/23	10,353		10,577
5.50%, 1/1/37 - 3/1/37	46,474		48,055
6.00%, 4/1/36 - 8/1/38	21,681		22,666
6.50%, 3/1/16 - 8/1/33	1,146		1,230
7.00%, 6/1/28 - 11/1/31	289		314
7.50%, 8/1/22 - 10/1/32	2,557		2,769
8.00%, 1/1/30 - 12/1/31	1,251		1,375
8.50%, 3/1/20 - 8/1/31	1,961		2,158
9.00%, 7/1/17	343		379
9.50%, 1/1/21 - 12/1/22	353		394
10.00%, 6/1/17 - 3/1/21	215		243
10.50%, 12/1/20 - 4/1/21	88		100
July TBA:
5.50%, 7/15/39(i)	11,750		12,130
Federal National Mortgage Association,
Conventional Pools:
5.00%, 10/1/35 - 4/1/39	45,401		46,333
5.50%, 6/1/35 - 8/1/38	41,155		42,610
6.00%, 7/1/37 - 10/1/38(c)	46,895		49,087
6.50%, 11/1/23 - 10/1/37	24,509		26,295
7.00%, 11/1/13 - 1/1/34	2,020		2,214
7.50%, 7/1/27 - 8/1/37	4,198		4,573
8.00%, 2/1/12 - 9/1/32	3,304		3,605
8.50%, 1/1/15 - 9/1/31	4,180		4,562
9.00%, 9/1/17 - 1/1/22	436		477
9.50%, 11/1/13 - 4/1/30	2,822		3,098
10.00%, 11/1/18 - 10/1/25	353		390
10.50%, 5/1/12 - 7/1/25	458		518
11.00%, 7/1/20 - 11/1/20	58		64
11.50%, 1/1/13 - 11/1/15	16		17
12.00%, 11/1/15	96		112
12.50%, 9/1/15 - 2/1/16	13		15
July TBA:
5.50%, 7/25/39(i)	31,975		33,009
August TBA:
4.50%, 8/25/24 - 8/25/39(i)	27,825		27,811
5.00%, 8/25/39(i)	17,200		17,445
6.50%, 8/25/39(i)	10,550		11,191
Government National Mortgage Association,
Various Pools:
9.50%, 9/15/09	1		1
10.00%, 11/15/09 - 9/15/20	49		53
10.50%, 9/15/15 - 3/15/21	188		209
11.00%, 1/15/10 - 11/20/19	140		155
11.50%, 4/15/13 - 11/15/15	57		64
12.00%, 3/15/11 - 5/15/15	34		37
12.50%, 6/15/10	2		2
July TBA:
4.50%, 7/15/39(i)	9,900		9,885
5.00%, 7/15/39(i)	4,200		4,282
			391,753
Asset Backed Securities (1.9%)
Capital Auto Receivables Asset Trust,
0.33%, 4/15/11(h)	8,866		8,821
0.38%, 7/15/10 - 5/15/11(h)	8,919		8,872
Contimortgage Home Equity Trust,
8.10%, 8/15/25	64		55
Mid-State Trust,
8.33%, 4/1/30	56		45
Residential Asset Mortgage Products, Inc.,
0.38%, 8/25/36(h)	534		527
			18,320
Collateralized Mortgage Obligations — Agency Collateral Series (0.6%)
Federal Home Loan Mortgage Corp.,
Inv Fl IO REMIC
7.18%, 8/15/30	159		12
IO STRIPS
7.50%, 12/1/29	272		45
8.00%, 1/1/28 - 6/1/31	2,003		341
PAC REMIC
9.50%, 4/15/20	2		2
Federal National Mortgage Association,
Inv Fl IO REMIC
8.19%, 7/25/30	3,023		276
80.16%, 9/25/22	71		72
IO PAC REMIC
8.00%, 9/18/27	1,108		165
IO REMIC
6.00%, 7/25/33	2,827		339
IO STRIPS
6.50%, 9/1/29 - 12/1/29	5,294		530
8.00%, 4/1/24 - 6/1/30	3,753		605
8.50%, 10/1/25	212		31
9.00%, 11/1/26	333		52
REMIC
7.00%, 9/25/32	2,443		2,654
62.42%, 9/25/20(h)	36		66
Government National Mortgage Association,
Inv Fl IO
7.83%, 5/16/31	4,807		507
7.88%, 8/16/31	1,555		152
			5,849
Collateralized Mortgage Obligations - Non Agency Collateral Series (0.0%)
Kidder Peabody Mortgage Assets Trust,
IO
9.50%, 4/22/18	2		1
Commercial Mortgage Backed Securities (2.3%)
Banc of America Commercial Mortgage, Inc.,
5.45%, 1/15/49	2,625		1,965
5.94%, 2/10/51(h)	4,795		3,881
Bear Stearns Commercial Mortgage Securities,
5.47%, 1/12/45(h)	2,575		2,145
Citigroup Commercial Mortgage Trust,
5.43%, 10/15/49	1,575		1,264
5.89%, 12/10/49(h)	2,984		2,368
5.92%, 3/15/49(h)	2,035		1,722
Greenwich Capital Commercial Funding Corp.,
5.44%, 3/10/39(c)	3,965		3,171

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Commercial Mortgage Backed Securities (cont’d)
GS Mortgage Securities Corp. II,
5.56%, 11/10/39	$	2,100	$	1,718
JPMorgan Chase Commercial Mortgage Securities Corp.,
6.01%, 6/15/49(c)(h)	2,425		1,859
Lehman Brothers-UBS Commercial Mortgage Trust,
5.87%, 9/15/45(h)	2,525		1,939
			22,032
Finance (8.8%)
Ace INA Holding, Inc.,
5.60%, 5/15/15	875		887
5.90%, 6/15/19	805		808
AIG SunAmerica Global Financing VI,
6.30%, 5/10/11(e)	3,082		2,897
Allstate Corp. (The),
7.45%, 5/16/19	865		937
American Express Co.,
8.13%, 5/20/19	565		587
American Express Credit Corp.,
7.30%, 8/20/13	1,775		1,847
Bank of America Corp.,
5.75%, 12/1/17(c)	3,510		3,130
7.63%, 6/1/19	1,750		1,761
Bank of New York Mellon Corp. (The),
4.50%, 4/1/13	1,755		1,788
5.13%, 8/27/13	1,460		1,538
Barclays Bank plc,
6.75%, 5/22/19	2,180		2,166
BB&T Corp.,
6.85%, 4/30/19(c)	1,345		1,401
Bear Stearns Cos. LLC (The),
5.55%, 1/22/17	1,210		1,123
7.25%, 2/1/18	2,320		2,449
Berkshire Hathaway Finance Corp.,
5.40%, 5/15/18(c)	1,750		1,807
Capital One Financial Corp.,
7.38%, 5/23/14	565		583
Caterpillar Financial Services Corp.,
4.90%, 8/15/13	740		738
Catlin Insurance Co., Ltd.,
7.25%,(e)(h)(o)	3,970		2,226
Chubb Corp.,
5.75%, 5/15/18	475		493
Citigroup, Inc.,
5.88%, 5/29/37	2,815		2,206
8.50%, 5/22/19	1,165		1,187
Credit Suisse USA, Inc.,
5.13%, 8/15/15(c)	930		955
Credit Suisse, New York,
5.00%, 5/15/13	630		645
5.50%, 5/1/14(c)	1,430		1,487
Farmers Insurance Exchange,
8.63%, 5/1/24(e)	2,860		2,312
Goldman Sachs Group, Inc. (The),
6.15%, 4/1/18	5,810		5,666
HBOS plc,
6.75%, 5/21/18(e)	2,800		2,117
HSBC Finance Corp.,
6.75%, 5/15/11	735		756
JPMorgan Chase & Co.,
6.00%, 1/15/18	2,460		2,448
6.30%, 4/23/19	3,710		3,738
Merrill Lynch & Co., Inc.,
6.88%, 4/25/18	4,240		3,931
MetLife, Inc.,
6.13%, 12/1/11	45		47
6.75%, 6/1/16	485		494
6.82%, 8/15/18(c)	1,595		1,609
7.72%, 2/15/19	470		504
Nationwide Building Society,
4.25%, 2/1/10(e)	1,985		1,980
NYSE Euronext,
4.80%, 6/28/13	1,355		1,404
Pelican Homestead & Savings Association,
9.36%, 10/1/09(d)(l)	18		18
Platinum Underwriters Finance, Inc.,
7.50%, 6/1/17	3,015		2,576
PNC Funding Corp.,
6.70%, 6/10/19	1,285		1,328
Principal Financial Group, Inc.,
8.88%, 5/15/19	1,035		1,088
Prudential Financial, Inc.,
6.63%, 12/1/37	1,840		1,599
Simon Property Group LP,
6.75%, 5/15/14(c)	995		1,001
SLM Corp.,
4.00%, 1/15/10	770		746
State Street Corp.,
4.30%, 5/30/14	520		515
Travelers Cos., Inc. (The),
5.80%, 5/15/18(c)	1,445		1,488
5.90%, 6/2/19	495		511
Two-Rock Pass Through Trust,
1.90%,(e)(h)(o)	2,930		9
U.S. Bancorp,
4.20%, 5/15/14	1,500		1,519
UBS AG,
5.88%, 12/20/17	1,100		1,026
Wachovia Corp.,
5.50%, 5/1/13	1,095		1,132
WellPoint, Inc.,
7.00%, 2/15/19	385		399
Wells Fargo & Co.,
5.63%, 12/11/17(c)	3,485		3,436
Xlliac Global Funding,
4.80%, 8/10/10(e)	4,560		4,248
			85,291
Industrials (19.8%)
Altria Group, Inc.,
9.25%, 8/6/19	1,115		1,254
Amgen, Inc.,
5.70%, 2/1/19	1,745		1,845
5.85%, 6/1/17	465		494
Anheuser-Busch InBev Worldwide, Inc.,
5.38%, 11/15/14(c)(e)	175		177
7.20%, 1/15/14(c)(e)	1,675		1,802
Apache Corp.,
6.90%, 9/15/18(c)	970		1,113
Arcelor Mittal,
6.13%, 6/1/18	1,545		1,354
9.85%, 6/1/19(c)	2,700		2,919
Archer-Daniels-Midland Co.,
5.45%, 3/15/18	1,220		1,285
AstraZeneca plc,
5.90%, 9/15/17(c)	635		681
AT&T Corp.,
8.00%, 11/15/31	2,515		2,911
AT&T, Inc.,
6.15%, 9/15/34	2,300		2,190
BAT International Finance plc,
9.50%, 11/15/18(e)	1,475		1,736
Baxter International, Inc.,
4.63%, 3/15/15(c)	695		714
Biogen Idec, Inc.,
6.88%, 3/1/18	1,420		1,441

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Industrials (cont’d)
Boeing Co. (The),
6.00%, 3/15/19	$	995	$	1,087
Bristol-Myers Squibb Co.,
5.45%, 5/1/18	315		334
Brookfield Asset Management, Inc.,
5.80%, 4/25/17	1,605		1,330
Bunge Ltd. Finance Corp.,
8.50%, 6/15/19	580		608
Canadian National Railway Co.,
5.55%, 5/15/18	940		984
Chesapeake Energy Corp.,
6.88%, 1/15/16	2,265		2,010
Chevron Corp.,
4.95%, 3/3/19	2,030		2,102
Cisco Systems, Inc.,
4.95%, 2/15/19	1,525		1,528
5.90%, 2/15/39(c)	655		647
Coca-Cola Co. (The),
4.88%, 3/15/19	1,435		1,477
Comcast Corp.,
5.70%, 5/15/18(c)	3,145		3,167
ConAgra Foods, Inc.,
7.00%, 10/1/28	255		254
8.25%, 9/15/30	1,525		1,706
ConocoPhillips,
5.20%, 5/15/18	1,980		2,003
5.75%, 2/1/19(c)	480		505
Constellation Brands, Inc.,
7.25%, 9/1/16	625		581
Cooper U.S., Inc.,
5.25%, 11/15/12	1,365		1,459
Corning, Inc.,
6.63%, 5/15/19	845		865
COX Communications, Inc.,
8.38%, 3/1/39(e)	865		967
CRH America, Inc.,
6.00%, 9/30/16	1,945		1,733
CSC Holdings, Inc.,
7.63%, 7/15/18	1,440		1,341
CVS Pass-Through Trust,
6.04%, 12/10/28(e)	3,562		3,052
Daimler Finance North America LLC,
7.20%, 9/1/09	25		25
7.30%, 1/15/12	970		1,005
8.50%, 1/18/31(c)	640		675
Delhaize America, Inc.,
9.00%, 4/15/31	2,296		2,795
Deutsche Telekom International Finance B.V.,
6.00%, 7/8/19(c)	590		596
8.75%, 6/15/30	1,160		1,362
Devon Financing Corp. ULC,
7.88%, 9/30/31(c)	1,260		1,488
Diageo Capital plc,
5.75%, 10/23/17	1,440		1,505
7.38%, 1/15/14	655		742
Dr. Pepper Snapple Group, Inc.,
6.82%, 5/1/18(c)	1,270		1,345
E. I. Du Pont de Nemours & Co.,
6.00%, 7/15/18	915		988
El Paso Corp.,
8.25%, 2/15/16	1,095		1,070
Emerson Electric Co.,
4.88%, 10/15/19(c)	1,230		1,233
5.00%, 4/15/19	495		499
EnCana Corp.,
5.90%, 12/1/17	955		980
6.50%, 5/15/19(c)	360		387
FBG Finance Ltd.,
5.13%, 6/15/15(e)	1,905		1,787
Fiserve, Inc.,
6.80%, 11/20/17	1,030		1,043
France Telecom S.A.,
8.50%, 3/1/31	590		760
Gaz Capital S.A.,
6.51%, 3/7/22(e)	575		434
General Electric Co.,
5.25%, 12/6/17	8,235		8,101
General Mills, Inc.,
5.25%, 8/15/13(c)	955		1,010
5.65%, 2/15/19	1,830		1,916
Georgia-Pacific LLC,
8.25%, 5/1/16(e)	495		483
GlaxoSmithKline Capital, Inc.,
5.65%, 5/15/18	920		976
Grupo Televisa S.A.,
6.00%, 5/15/18	1,165		1,104
Harley-Davidson Funding Corp.,
6.80%, 6/15/18(e)	1,335		1,160
HCA, Inc.,
8.50%, 4/15/19(e)	1,010		995
Hewlett-Packard Co.,
4.75%, 6/2/14	1,165		1,218
5.50%, 3/1/18	735		774
Home Depot, Inc.,
5.40%, 3/1/16	1,670		1,669
Honeywell International, Inc.,
5.30%, 3/1/18	1,025		1,072
Hospira, Inc.,
1.08%, 3/30/10(h)	1,445		1,432
6.40%, 5/15/15	520		548
International Business Machines Corp.,
7.63%, 10/15/18	510		611
8.00%, 10/15/38(c)	705		915
John Deere Capital Corp.,
5.75%, 9/10/18	960		981
KLA-Tencor Corp.,
6.90%, 5/1/18	1,540		1,387
Koninklijke Philips Electronics N.V.,
5.75%, 3/11/18	1,940		1,959
Kraft Foods, Inc.,
6.13%, 2/1/18 - 8/23/18	3,155		3,269
6.75%, 2/19/14	30		33
7.00%, 8/11/37	285		302
Kroger Co. (The),
6.40%, 8/15/17	1,495		1,588
LG Electronics, Inc.,
5.00%, 6/17/10(e)	1,830		1,820
McDonald’s Corp.,
5.00%, 2/1/19(c)	550		565
Medco Health Solutions, Inc.,
7.13%, 3/15/18	1,797		1,895
Merck & Co., Inc.,
5.00%, 6/30/19	3,470		3,520
MGM Mirage,
13.00%, 11/15/13(c)(e)	1,430		1,573
Microsoft Corp.,
4.20%, 6/1/19	800		783
Monsanto Co.,
5.13%, 4/15/18(c)	840		872
News America, Inc.,
6.90%, 3/1/19(c)(e)	2,220		2,317
Norfolk Southern Corp.,
5.75%, 1/15/16(e)	920		954

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Industrials (cont’d)
Novartis Capital Corp.,
4.13%, 2/10/14	$	2,080	$	2,143
Parker Hannifin Corp.,
5.50%, 5/15/18	975		999
Pearson Dollar Finance Two plc,
6.25%, 5/6/18(e)	1,035		995
Pfizer, Inc.,
6.20%, 3/15/19	4,305		4,717
Philip Morris International, Inc.,
5.65%, 5/16/18	1,760		1,848
Potash Corp of Saskatchewan, Inc.,
6.50%, 5/15/19(c)	775		837
Procter & Gamble Co. (The),
4.60%, 1/15/14	545		574
4.70%, 2/15/19	405		411
Questar Market Resources, Inc.,
6.80%, 4/1/18	1,515		1,430
Qwest Corp.,
6.50%, 6/1/17	460		407
6.88%, 9/15/33	1,060		779
Reynolds American, Inc.,
6.50%, 7/15/10	1,060		1,085
Rio Tinto Finance USA Ltd.,
6.50%, 7/15/18	960		962
Roche Holdings, Inc.,
6.00%, 3/1/19(e)	3,180		3,397
Rogers Communications, Inc.,
6.80%, 8/15/18	1,045		1,122
Systems 2001 Asset Trust LLC,
6.66%, 9/15/13(e)	2,393		2,393
Teck Resources Ltd.,
10.25%, 5/15/16(e)	1,770		1,856
Telecom Italia Capital S.A.,
7.00%, 6/4/18	2,750		2,787
7.18%, 6/18/19	1,105		1,122
Telefonica Europe B.V.,
8.25%, 9/15/30	3,140		3,898
Time Warner Cable, Inc.,
6.75%, 7/1/18 - 6/15/39	2,130		2,166
8.25%, 4/1/19	965		1,097
8.75%, 2/14/19	1,240		1,447
Time Warner, Inc.,
5.88%, 11/15/16(c)	1,095		1,081
7.70%, 5/1/32	85		84
Transocean, Inc.,
6.00%, 3/15/18	1,445		1,505
Tyco Electronics Group S.A.,
5.95%, 1/15/14	2,630		2,459
Union Pacific Corp.,
5.45%, 1/31/13	1,275		1,323
6.13%, 2/15/20(c)	1,455		1,512
UnitedHealth Group, Inc.,
6.00%, 2/15/18	1,030		990
Verizon Communications, Inc.,
5.50%, 2/15/18(c)	1,245		1,238
6.35%, 4/1/19	2,130		2,220
8.95%, 3/1/39	930		1,178
Verizon Wireless Capital LLC,
5.55%, 2/1/14(c)(e)	2,185		2,322
Viacom, Inc.,
6.88%, 4/30/36	1,515		1,400
Vivendi,
6.63%, 4/4/18(e)	1,440		1,452
Vodafone Group plc,
5.63%, 2/27/17	1,055		1,073
Walgreen Co.,
5.25%, 1/15/19	1,745		1,819
Wal-Mart Stores, Inc.,
4.13%, 2/1/19(c)	2,275		2,218
4.25%, 4/15/13	2,325		2,418
Weatherford International Ltd.,
6.00%, 3/15/18(c)	1,265		1,244
WPP Finance,
8.00%, 9/15/14(c)	1,395		1,418
Wyeth,
5.45%, 4/1/17	310		324
Xerox Corp.,
6.35%, 5/15/18	1,085		970
XTO Energy, Inc.,
5.50%, 6/15/18	1,880		1,887
Yum! Brands, Inc.,
6.25%, 3/15/18	530		546
8.88%, 4/15/11	905		989
			192,319
Mortgages — Other (0.2%)
American Express Co.,
9.63%, 12/1/12(d)(l)	12		12
American Housing Trust,
9.55%, 9/25/20	23		18
Mastr Adjustable Rate Mortgages Trust,
2.28%, 4/25/46(h)	3,177		330
Ryland Acceptance Corp. IV,
6.65%, 7/1/11	3		4
Structured Adjustable Rate Mortgage Loan Trust,
0.61%, 9/25/34(h)	850		512
Structured Asset Mortgage Investments, Inc.,
0.59%, 7/25/46(h)	8,162		1,033
WaMu Mortgage Pass Through Certificates,
0.57%, 10/25/45(h)	31		29
0.58%, 4/25/45(h)	34		10
			1,948
Municipal Bonds (0.4%)
Illinois State Toll Highway Authority, Highway Revenue, Build America Bonds,
6.18%, 1/1/34	1,370		1,409
State of California, General Obligation Bonds,
5.95%, 4/1/16	2,620		2,520
			3,929
Sovereign (0.6%)
Federal Republic of Germany,
4.88%, 6/17/19(c)	1,700		1,765
Federative Republic of Brazil,
6.00%, 1/17/17(c)	2,895		2,986
Korea Railroad Corp.,
5.38%, 5/15/13(e)	1,230		1,204
			5,955
U.S. Agency Securities (4.7%)
Federal Home Loan Mortgage Corp.,
3.00%, 7/28/14(c)	29,000		29,093
4.88%, 6/13/18(c)	2,300		2,480
5.13%, 11/17/17(c)	4,600		5,057
6.75%, 3/15/31(c)	5,500		6,839
Federal National Mortgage Association,
5.38%, 6/12/17(c)	1,830		2,045
			45,514
U.S. Treasury Securities (11.4%)
U.S. Treasury Bond Coupon STRIPS,
Zero Coupon, 11/15/19(c)	33,410		21,971
U.S. Treasury Bond Principal STRIPS,
Zero Coupon, 11/15/21	38,610		22,420
U.S. Treasury Bonds,
3.50%, 2/15/39(c)	7,815		6,760
4.25%, 5/15/39	22,210		21,991

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
U.S. Treasury Securities (cont’d)
U.S. Treasury Inflation Indexed Bonds,
3.63%, 4/15/28	$	3,600	$	5,788
U.S. Treasury Notes,
0.88%, 5/31/11(c)	24,500		24,420
3.13%, 5/15/19	2,475		2,394
4.00%, 8/15/18	9		9
4.75%, 8/15/17(c)	4,730		5,187
			110,940
Utilities (3.6%)
AES Corp. (The),
8.75%, 5/15/13(e)	2,145		2,188
Alabama Power Co.,
5.80%, 11/15/13	935		1,014
Carolina Power & Light Co.,
5.30%, 1/15/19	580		607
CenterPoint Energy Resources Corp.,
6.25%, 2/1/37	1,130		853
7.88%, 4/1/13	730		779
Colorado Interstate Gas Co.,
6.80%, 11/15/15	149		154
Consumers Energy Co.,
4.00%, 5/15/10	1,410		1,426
Detroit Edison Co. (The),
6.13%, 10/1/10	1,285		1,332
E.ON International Finance B.V.,
5.80%, 4/30/18(e)	2,845		2,965
EDF S.A.,
6.50%, 1/26/19(e)	2,365		2,595
Enterprise Products Operating LLC,
6.50%, 1/31/19(c)	1,605		1,634
FPL Group Capital, Inc.,
6.00%, 3/1/19	1,145		1,232
Georgia Power Co.,
6.00%, 11/1/13	370		404
Kinder Morgan Finance Co. LP,
5.70%, 1/5/16	2,070		1,785
NiSource Finance Corp.,
6.80%, 1/15/19	1,400		1,314
Ohio Edison Co.,
6.40%, 7/15/16	1,730		1,770
Ohio Power Co.,
6.00%, 6/1/16	1,220		1,244
Pacificorp.,
5.50%, 1/15/19	335		355
Peco Energy Co.,
5.35%, 3/1/18	1,195		1,224
Plains All American Pipeline LP/PAA Finance Corp.,
6.70%, 5/15/36	1,680		1,519
PPL Energy Supply LLC,
6.30%, 7/15/13	1,380		1,448
Progress Energy, Inc.,
7.05%, 3/15/19	980		1,089
Public Service Co. of Colorado,
6.50%, 8/1/38	1,290		1,468
Texas Eastern Transmission LP,
7.00%, 7/15/32	1,060		1,118
Union Electric Co.,
6.40%, 6/15/17	930		957
Virginia Electric & Power Co.,
8.88%, 11/15/38	2,150		2,891
			35,365
Total Fixed Income Securities (Cost $969,697)			950,723

	No. of
	Contracts
Call Options Purchased (0.0%)
EuroDollar 2-Year Mid-Curve Call at $97.75, expiring 9/11/09 (a) (Cost $1,565)	2,023	202

	Shares
Short-Term Investments (29.0%)
Securities held as Collateral on Loaned Securities (12.5%)
Investment Company (9.4%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (p)	92,012,626	92,013

	Face Amount
	(000)
Repurchase Agreement (3.1%)
Credit Suisse Securities USA LLC, 0.11%, dated 6/30/09, due 7/1/09, repurchase price $29,969; fully collateralized by U.S. agency securities at the date of this Portfolio of Investments as follows: Federal National Mortgage Association, Fixed Rate Mortgages: rates ranging from 5.50% to 6.50%, due 12/1/33 to 1/1/39, valued at $30,568.	$	29,968	29,968
			121,981

	Shares
Investment Company (4.5%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (p)	43,618,276	43,618

	Face Amount
	(000)
U.S. Agency Securities (6.7%)
Federal Home Loan Bank,
0.20%, 8/11/09 (t)	$	35,000	34,997
Federal Home Loan Mortgage Corp.,
0.21%, 7/13/09 (t)	20,000		19,999
Federal National Mortgage Association,
0.13%, 7/1/09 (t)	10,000		10,000
			64,996
U.S. Treasury Securities (5.3%)
U.S. Treasury Bills,
0.02%, 7/2/09 (r)	5,000		5,000
0.15%, 8/13/09 (c)(r)	10,000		9,998
0.15%, 8/20/09 (r)	5,000		4,999
0.16%, 9/10/09 (c)(r)	20,000		19,994
0.23%, 11/12/09 (c)(j)(r)	11,475		11,466
			51,457
Total Short-Term Investments (Cost $282,044)			282,052
Total Investments (126.8%) (Cost $1,253,306) — Including $160,656 of Securities Loaned+			1,232,977
Liabilities in Excess of Other Assets (-26.8%)			(260,449		)
Net Assets (100%)			$	972,528

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

(a)	Non-income producing security.
(c)	All or a portion of security on loan at June 30, 2009. At June 30, 2009, the Portfolio had loaned securities with a total value of $160,656,000. This was secured by collateral of $121,981,000 which was received as cash and subsequently invested in short-term investments as reported in the Portfolio of Investments. The remaining collateral of $41,328,000 was received in the form of short-term pooled securities, which the Portfolio cannot sell or repledge and accordingly are not reflected in the Portfolio of Investments.
(d)	At June 30, 2009, the Portfolio held approximately $30,000 of fair valued securities, representing less than 0.05% of net assets. These securities have been fair valued as determined in good faith under procedures established by and under the general supervision of the Portfolio’s Trustees.
(e)	144A security — Certain conditions for public sale may exist. Unless otherwise noted, these securities are deemed to be liquid.
(h)	Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated rate. The rates shown are those in effect on June 30, 2009.
(i)	Security is subject to delayed delivery.
(j)	All or a portion of the security was pledged to cover margin requirements for futures contracts.
(l)	Security has been deemed illiquid at June 30, 2009.
(o)	Perpetual — Security does not have a predetermined maturity date. Rate for this security is fixed for a period of time then reverts to a floating rate. The interest shown is the rate in effect at June 30, 2009.
(p)	The Portfolio invests in the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (the “Liquidity Fund”), an open-end management investment company managed by the Adviser, both directly, and as a portion of the securities held as collateral on loaned securities. Investment Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Liquidity Fund. For the period ended June 30, 2009, advisory fees paid were reduced by approximately $37,000 relating to the Portfolio’s investment in the Liquidity Fund. For the same period, income distributions earned by the Portfolio are recorded as dividends from affiliates and totaled approximately $284,000. For the period ended June 30, 2009, the approximate cost of purchases and sales in the Liquidity Fund were $1,376,207,000 and $1,320,729,000, respectively.
(r)	Rate shown is the yield to maturity at June 30, 2009.
(t)	Purchased on a discount basis. The interest rate shown has been adjusted to reflect a money market equivalent yield.
@	Face Amount/Value is less than $500.
+	At June 30, 2009, the U.S. Federal income tax cost basis of investments was approximately $1,253,306,000 and, accordingly, net unrealized depreciation for U.S. Federal income tax purposes was $20,329,000 of which $22,764,000 related to appreciated securities and $43,093,000 related to depreciated securities.
Inv Fl	Inverse Floating Rate — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at June 30, 2009.
IO	Interest Only
PAC	Planned Amortization Class
REMIC	Real Estate Mortgage Investment Conduit
STRIPS	Separate Trading of Registered Interest and Principal of Securities
TBA	To Be Announced

Futures Contracts:

The Portfolio had the following futures contract(s) open at period end:

					Net Unrealized
	Number				Appreciation
	of	Value		Expiration	(Depreciation)
	Contracts	(000)		Date	(000)
Long:
90 Day
EuroDollar	130	$	31,640	Mar-11	$	(91	)
90 Day
EuroDollar	130	31,532		Jun-11	(107		)
90 Day
EuroDollar	130	31,434		Sep-11	(122		)
90 Day
EuroDollar	130	31,343		Dec-11	(128		)
U.S. Treasury
2 yr. Note	846	182,921		Sep-09	(288		)
U.S. Treasury
5 yr. Note	747	85,695		Sep-09	480
Short:
U.S. Treasury
10 yr. Note	810	94,175		Sep-09	290
U.S. Treasury
Long Bond	266	31,484		Sep-09	(839		)
					$	(805	)

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Options Written:

The Portfolio had the following option(s) written open at period end:

		Premiums
	Number of	Received		Value
	Contracts	(000)		(000)
Call Option Written:
EuroDollar 2-Year Mid-Curve Call at $98.50, expiring 9/11/09	1,681	$	201	$	(11)

Credit Default Swap Contracts

The Portfolio had the following credit default swap agreement(s) open at period end:

									Unrealized
		Notional					Upfront		Appreciation
	Buy/Sell	Amount		Pay/Receive		Termination	Payments		(Depreciation)
Swap Counterparty and Reference Obligation	Protection	(000)		Fixed Rate		Date	(000)		(000)
Bank of America
Tyco Electronics Ltd., 6.00%, 10/1/12	Buy	$	2,115	5.00	%	6/20/14	$	89	$	(170	)

Interest Rate Swap Contracts

The Portfolio had the following interest rate swap agreement(s) open at period end:

								Unrealized
						Notional		Appreciation
	Floating Rate	Pay/Receive			Termination	Amount		(Depreciation)
Swap Counterparty	Index	Floating Rate	Fixed Rate		Date	(000)		(000)
Barclays Capital
	3 Month LIBOR	Pay	4.66	%	5/27/19	$	20,613	$	(68	)
	3 Month LIBOR + 1.35%	Receive	3.63		4/15/28	5,544		93
	3 Month LIBOR	Receive	4.04		5/27/39	4,727		85
UBS
	3 Month LIBOR	Pay	4.66		5/27/19	60,180		(154		)
	3 Month LIBOR	Receive	4.04		5/27/39	13,928		249
								$	205

Zero Coupon Swap Contracts

The Portfolio had the following zero coupon swap agreement(s) open at period end:

						Unrealized
	Notional					Appreciation
	Amount		Floating	Pay/Receive	Termination	(Depreciation)
Swap Counterparty	(000)		Rate Index	Floating Rate	Date	(000)
Barclays Capital
	$	20,454	3 Month LIBOR	Pay	11/15/19	$	(861	)
	20,062		3 Month LIBOR	Pay	11/15/21	(987		)
						$	(1,848	)

LIBOR — London Inter Bank Offer Rate

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Fair Value Measurement Information:

The following is a summary of the inputs used to value the Portfolio’s net assets as of June 30, 2009.

Various inputs are used in determining the value of the Portfolio’s investments. These inputs are summarized in the three broad levels listed below.

	Level 1			Level 2			Level 3
	Quoted			Other significant			Significant
Investment Type	prices			observable inputs			unobservable inputs		Total
Assets:
Call Options Purchased	$	202		$	—		$	—	$	202
Fixed Income Securities
Agency Adjustable Rate Mortgages	—			7,285			—		7,285
Agency Bonds — Banking (FDIC Guaranteed)	—			24,222			—		24,222
Agency Fixed Rate Mortgages	—			391,753			—		391,753
Asset Backed Securities	—			18,320			—		18,320
Collateralized Mortgage Obligations — Agency Collateral Series	—			5,849			—		5,849
Collateralized Mortgage Obligations — Non Agency Collateral Series	—			1			—		1
Commercial Mortgage Backed Securities	—			22,032			—		22,032
Finance	—			85,273			18		85,291
Industrials	—			192,319			—		192,319
Mortgages — Other	—			1,936			12		1,948
Municipal Bonds	—			3,929			—		3,929
Sovereign	—			5,955			—		5,955
U.S. Agency Securities	—			45,514			—		45,514
U.S. Treasury Securities	—			110,940			—		110,940
Utilities	—			35,365			—		35,365
Total Fixed Income Securities	—			950,693			30		950,723
Futures Contracts	770			—			—		770
Interest Rate Swap Contracts	—			427			—		427
Short-Term Investments
Investment Company	135,631			—			—		135,631
Repurchase Agreement	—			29,968			—		29,968
U.S. Agency Securities	—			64,996			—		64,996
U.S. Treasury Securities	—			51,457			—		51,457
Total Short-Term Investments	135,631			146,421			—		282,052
Total Assets	136,603			1,097,541			30		1,234,174
Liabilities:
Credit Default Swap Contracts	—			(170		)	—		(170		)
Futures Contracts	(1,575		)	—			—		(1,575		)
Interest Rate Swap Contracts	—			(222		)	—		(222		)
Options Written	(11		)	—			—		(11		)
Zero Coupon Swap Contracts	—			(1,848		)	—		(1,848		)
Total Liabilities	(1,586		)	(2,240		)	—		(4,859		)
Total	$	135,017		$	1,095,301		$	30	$	1,230,348

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

Fair Value Measurement Information: (cont’d)

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

	Fixed Income
	Securities
Balance as of 9/30/08	$	84,600
Accrued discounts/premiums	(156		)
Realized gain (loss)	(113,094		)
Change in unrealizedappreciation (depreciation)	102,365
Net purchases (sales)	(28,086		)
Net transfers in and/or out ofLevel 3	(45,599		)
Balance as of 6/30/09	$	30
The amount of totalgains (losses) for the periodincluded in earnings attributableto the changein unrealized gains (losses)relating to assets and liabilitiesstill held at Level 3 at 6/30/09.	$	—@

Morgan Stanley Institutional Fund Trust

Intermediate Duration Portfolio

Portfolio of Investments

Third Quarter Report

June 30, 2009 (unaudited)

	Face Amount		Value
	(000)		(000)
Fixed Income Securities (100.0%)
Agency Bond — Banking (FDIC Guaranteed) (2.0%)
GMAC LLC,
2.20%, 12/19/12	$	2,750	$	2,741
Agency Fixed Rate Mortgages (5.0%)
Federal Home Loan Mortgage Corp.,
Gold Pools:
7.50%, 8/1/30	2		2
8.00%, 7/1/30 - 9/1/31	146		160