N-CSR 1 a15-20509_1ncsr.htm N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-03980

Morgan Stanley Institutional Fund Trust
(Exact name of registrant as specified in charter)

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

John H. Gernon 522 Fifth Avenue, New York, New York 10036
(Name and address of agent for service)

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

Date of fiscal year end:	September 30,

Date of reporting period:		September 30, 2015

Item 1 - Report to Shareholders

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Core Fixed Income Portfolio

Annual Report

September 30, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Overview					4
Portfolio of Investments					7
Statement of Assets and Liabilities					11
Statement of Operations					13
Statements of Changes in Net Assets					14
Financial Highlights					15
Notes to Financial Statements					19
Report of Independent Registered Public Accounting Firm					28
Investment Advisory Agreement Approval					29
U.S. Privacy Policy					31
Trustee and Officer Information					34

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

Additionally, you can access portfolio information including performance, characteristics, and investment team commentary through Morgan Stanley Investment Management's website: www.morganstanley.com/im.

Market forecasts provided in this report may not necessarily come to pass. There is no guarantee that any sectors mentioned will continue to perform as discussed herein or that securities in such sectors will be held by the Portfolio in the future. There is no assurance that a Portfolio will achieve its investment objective. Portfolios are subject to market risk, which is the possibility that market values of securities owned by the Portfolio will decline and, therefore, the value of the Portfolio's shares may be less than what you paid for them. Accordingly, you can lose money investing in this Portfolio. Please see the prospectus for more complete information on investment risks.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Core Fixed Income Portfolio (the "Portfolio") performed during the latest twelve-month period.

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

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

October 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Expense Example (unaudited)

Core Fixed Income Portfolio

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

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2015 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value 4/1/15		Actual Ending Account Value 9/30/15		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
Core Fixed Income Portfolio Class I	$	1,000.00	$	984.30	$	1,023.36	$	1.69	*	$	1.72	*		0.34	%
Core Fixed Income Portfolio Class A		1,000.00		980.90		1,020.86		4.17	*		4.26	*		0.84
Core Fixed Income Portfolio Class L		1,000.00		979.90		1,019.60		5.41	*		5.52	*		1.09
Core Fixed Income Portfolio Class C		1,000.00		981.60		1,014.29		6.60	**		6.71	**		1.59

* Expenses are calculated using each Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 183/365 (to reflect the most recent one-half year period).

** Expenses are calculated using the Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 153/365 (to reflect the actual days in the period).

*** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited)

Core Fixed Income Portfolio

The Core Fixed Income Portfolio seeks above-average total return over a market cycle of three to five years.

Performance

For the fiscal year ended September 30, 2015, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 1.12%, net of fees. The Portfolio's Class I shares underperformed against the Portfolio's benchmark the Barclays U.S. Aggregate Index (the "Index"), which returned 2.94%.

Factors Affecting Performance

• Concerns over central bank policy around the world and global issues, such as Greece's debt crisis and China's economic slowdown, kept bond markets fairly turbulent during the period. Risk premia rose substantially in the latter months of the period and asset prices suffered. The rise in risk premia was driven by a continued tightening of financial conditions, catalyzed by a devaluation of the Chinese currency in August. This tightening of financial conditions resulted in falling business confidence and generally weaker-than-expected economic data. These factors drove "risk-off" sentiment and led to a widening of credit spreads, an equity market sell-off and a rally in U.S. Treasuries. Furthermore, to the surprise of many, the Federal Reserve (Fed) kept interest rates unchanged and delivered a more dovish-than-expected policy statement at its September 2015 meeting. As an unintended consequence, markets increasingly worried that the negative impact on the U.S. economy's growth dynamics would warrant a ratcheting down of global growth expectations. This fear drove risk premia even higher. The Fed has communicated that its decision to hike rates will be data dependent, which implies some uncertainty on whether a hike will happen this year. Only with a material recovery in labor market indicators over the next few months would a rate hike likely occur this year.

• Despite a general increase in yields in first half of the period, over the full 12-month period, 5-, 10-, and 30-year Treasury yields ended 41, 36 and 34 basis points lower, respectively.⁽ⁱ⁾ U.S. 2-year yields ended the period relatively flat at 2 basis points higher.

• Recovering from a volatile fourth quarter of 2014, high yield credit started 2015 on a positive note, as one of the few fixed income sectors to have positive performance in the first quarter of 2015. However, amid economic and geopolitical worries, the U.S. credit markets endured record amounts of new issuance, which eventually pressured yield spreads wider (and prices lower, as bond prices move inversely to yields). Over the course of 2015, credit spreads in all markets have widened materially and are currently at levels which are typically only seen in periods of economic recession or systemic stress. The spreads observable in the investment grade markets include a material risk premium, and spreads in the high yield market are compensating for a significant uptick in defaults. While it is clear that certain emerging markets are seeing a material risk of recession, the consensus is for the developed world to see moderate growth over the coming year. We believe this growth backdrop, combined with low inflation, is likely to lead to ongoing accommodative monetary policy from the central banks around the world, which should keep defaults low and support credit markets.

• Another driver of credit spreads is the technical balance between supply and demand. Supply volume has been elevated across many of the credit markets. This has been most apparent in the U.S. investment grade market, where a combination of increased merger and acquisition activity and the fear that an interest rate tightening cycle could increase the future cost of long-term debt financing has caused corporate treasurers to turn to the bond markets. As a result, year-to-date new issue volumes have been running at record pace. This is to a lesser extent also true in the U.S. high yield and European investment grade markets. Along with this high level of issuance, demand has been muted as many yield-oriented investors are awaiting higher yields before committing capital to the market. This mismatch between supply and demand has resulted in a higher liquidity premium, which has contributed to the wider credit spreads.

⁽ⁱ⁾ Source for U.S. Treasury yields: Bloomberg L.P.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Core Fixed Income Portfolio

• Despite widening in the latter part of the period, agency mortgage-backed securities (MBS) spreads remain historically expensive. Mortgage rates and prepayment speeds have been range-bound, helping support performance so far, but with the possibility of a Fed rate hike in the coming months, volatility and absolute rate levels could rise and MBS duration extension concerns could return. There is also the additional risk that at some point in 2016 the Fed could end their MBS purchase program, whereby it has been buying 25% to 30% of all new origination.

• Prior to September, non-agency MBS prices had been resilient to broader credit market declines and had traded more as a function of the strong U.S. housing market. However, prices finally began to weaken as relative spread differences became more pronounced at the end of September. In contrast to the price declines, the fundamental market conditions underlying the non-agency MBS market remain very strong. Home prices rose 0.6% in July (down 0.2% on a seasonally adjusted basis), and were up 5.0% year-on-year from July 2014.⁽ⁱⁱ⁾ New home sales were up 5.7% in August and up 21.6% from August 2014.⁽ⁱⁱⁱ⁾ Existing home sales were down 1.4% in August, predominantly due to lack of supply, but were still up 6.1% from August 2014.^(iv) The volume of outstanding homes for sale fell to a 4.7-month supply based on current sales volumes, down from 5.0-month supply in July and well below the six-month supply that is historically associated with a balanced housing market.⁽ⁱⁱⁱ⁾ The U.S. homebuilder confidence index climbed to the highest level since November 2005 as housing supply is historically low and housing demand is steadily improving.^(v) U.S. household formation was up 2.25 million year-on-year as of June, roughly double the long-term average of roughly 1.15 million per year.⁽ⁱⁱⁱ⁾ Household formation had been depressed and substantially below historical norms for most for the past seven years, and we are now seeing some of this pent-up demand enter the market. Mortgage performance remains positive. Mortgage defaults were essentially unchanged in August at 0.8%, down 0.1% from August 2014 and well below the nearly 6% level in 2009.^(vi)

• Commercial mortgage-backed securities (CMBS) spreads also widened significantly in the latter half of the period. Fundamentally, the CMBS sector

remains healthy. Retail sales continue to climb, with August numbers up 0.2% from July and up 2.2% from August 2014.⁽ⁱⁱⁱ⁾ Consumer confidence rose in September to the second highest level in the past eight years.^(vii) Hotel occupancy rates are at their highest levels in more than 15 years, exceeding 65% occupancy so far in 2015.^(viii) For comparison, the previous credit cycle peak of 2004-2006 averaged roughly 63% occupancy. These high occupancy rates are boosting the performance of the hotel sector of CMBS. The improving economy and employment numbers are also helping reduce office space vacancies. National office vacancy rates fell by 0.4% to 13.5% in the second quarter of 2015 and are expected to fall further this year.^(ix) Office rental rates increased at roughly 1.1% in the second quarter of 2015, and this pace of increase is expected to continue based on the declining vacancy rates.^(ix)

Management Strategies

• Throughout the period, the Portfolio was positioned with an overweight to investment-grade credit, particularly in financials, as we believe valuations relative to fundamentals have been attractive. This position detracted from performance as volatility in global markets pushed spreads wider.

• With regard to interest rate strategy, the Portfolio is positioned using futures and interest rate swaps to be underweight duration at the intermediate part of the yield curve. This detracted from relative performance as rates declined during the period.

• We continue being overweight spread product (non-government bonds) in the Portfolio as we believe the yield advantage could provide attractive returns over the near term.

⁽ⁱⁱ⁾ S&P/Case-Shiller 20-City Composite Home Price Index, an index gauging the value of residential real estate in 20 major U.S. metropolitan areas.

⁽ⁱⁱⁱ⁾ U.S. Census Bureau

^(iv) National Association of Realtors

^(v) National Association of Home Builders

^(vi) S&P/Experian First Mortgage Default Index, an index measuring default rates across first mortgages

^(vii) The Conference Board

^(viii) Statistica.com

^(ix) CBRE Group, Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Core Fixed Income Portfolio

* Minimum Investment

In accordance with SEC regulations, the Portfolio's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, Class L and Class C shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes.

Performance Compared to the Barclays U.S. Aggregate Index⁽¹⁾ and the Lipper Core Bond Funds Index⁽²⁾

	Period Ended September 30, 2015 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁸⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		1.12	%		3.29	%		3.22	%		6.44	%
Portfolio — Class A Shares w/o sales charges⁽⁵⁾		0.58			2.94			2.93			4.07
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁵⁾		–3.73			2.06			2.48			3.80
Portfolio — Class L Shares w/o sales charges⁽⁶⁾		0.31			—			—			1.67
Portfolio — Class C Shares w/o sales charges⁽⁷⁾		—			—			—			–1.84
Portfolio — Class C Shares with maximum 1.00% deferred sales charges⁽⁷⁾		—			—			—			–2.81
Barclays U.S. Aggregate Index		2.94			3.10			4.64			6.84
Lipper Core Bond Funds Index		2.40			3.47			4.52			—

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. Returns for period less than one year are not annualized. For the most recent month-end performance figures, please visit www.morganstanley.com/im. Investment returns and principal value will fluctuate so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Performance of share classes will vary due to differences in sales charges and expenses.

⁽¹⁾ The Barclays U.S. Aggregate Index tracks the performance of U.S. government agency and Treasury securities, investment-grade corporate debt securities, agency mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Core Bond Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Core Bond Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Core Bond Funds classification.

⁽³⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower.

⁽⁴⁾ Commenced operations on September 29, 1987.

⁽⁵⁾ Commenced operations on March 1, 1999.

⁽⁶⁾ Commenced operations on April 27, 2012.

⁽⁷⁾ Commenced operations on April 30, 2015.

⁽⁸⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (77.0%)
Agency Fixed Rate Mortgages (19.0%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
6.00%, 5/1/37 - 11/1/37	$	48	$	54
7.50%, 5/1/35		32		38
8.00%, 8/1/32		19		23
8.50%, 8/1/31		28		37
Federal National Mortgage Association,
Conventional Pools:
4.00%, 11/1/41		132		142
4.50%, 8/1/40 - 7/1/41		292		318
5.50%, 4/1/34		42		47
6.00%, 1/1/38		36		40
6.50%, 7/1/29 - 11/1/32		110		128
7.00%, 10/1/31 - 12/1/31		1		1
7.50%, 8/1/37		56		67
8.00%, 4/1/33		41		50
8.50%, 10/1/32		41		53
				998
Asset-Backed Security (3.8%)
Chase Issuance Trust
1.59%, 2/18/20		200		202
Collateralized Mortgage Obligations — Agency Collateral Series (8.3%)
Federal National Mortgage Association,
IO
6.20%, 9/25/20 (a)		291		58
REMIC
9.21%, 10/25/41 (a)(b)		28		29
Government National Mortgage Association,
IO
0.83%, 8/20/58 (a)		2,516		78
3.50%, 5/20/43		501		103
5.00%, 2/16/41		92		18
5.89%, 8/16/42 (a)		447		77
5.93%, 6/20/43 (a)		440		71
				434
Corporate Bonds (42.2%)
Finance (16.2%)
ACE INA Holdings, Inc.
3.35%, 5/15/24		50		50
American International Group, Inc.
4.88%, 6/1/22		25		28
AvalonBay Communities, Inc.
2.95%, 9/15/22		25		25
Bank of America Corp.,
MTN
4.20%, 8/26/24		25		25
4.25%, 10/22/26		23		23
Bank of New York Mellon Corp. (The),
MTN
3.65%, 2/4/24		25		26

	Face Amount (000)		Value (000)
Boston Properties LP
3.80%, 2/1/24	$	10	$	10
Brookfield Asset Management, Inc.
5.80%, 4/25/17		50		53
Capital One Financial Corp.
2.45%, 4/24/19		25		25
Citigroup, Inc.
5.50%, 9/13/25		50		54
Discover Financial Services
3.95%, 11/6/24		25		25
ERP Operating LP
3.00%, 4/15/23		55		54
Goldman Sachs Group, Inc. (The)
6.75%, 10/1/37		30		36
HSBC Finance Corp.
6.68%, 1/15/21		50		59
JPMorgan Chase & Co.
3.20%, 1/25/23		45		45
Pacific LifeCorp
6.00%, 2/10/20 (c)		50		56
PNC Financial Services Group, Inc. (The)
3.90%, 4/29/24 (d)		35		35
Principal Financial Group, Inc.
8.88%, 5/15/19		50		61
State Street Corp.
3.10%, 5/15/23		35		34
TD Ameritrade Holding Corp.
3.63%, 4/1/25		25		26
UnitedHealth Group, Inc.
2.88%, 3/15/23 (d)		50		50
Wells Fargo & Co.,
Series M
3.45%, 2/13/23		50		50
				850
Industrials (23.0%)
Actavis Funding SCS
3.80%, 3/15/25		5		5
Altera Corp.
2.50%, 11/15/18		100		102
Altria Group, Inc.
5.38%, 1/31/44		5		5
Amazon.com, Inc.
1.20%, 11/29/17		25		25
Anadarko Petroleum Corp.
6.45%, 9/15/36		25		28
Apple, Inc.
3.85%, 5/4/43		25		23
AT&T, Inc.
5.55%, 8/15/41		25		25
BAT International Finance PLC
3.50%, 6/15/22 (c)		25		26
BHP Billiton Finance USA Ltd.
5.00%, 9/30/43		25		25

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
BP Capital Markets PLC
3.51%, 3/17/25 (d)	$	25	$	25
Cardinal Health, Inc.
3.75%, 9/15/25 (d)		25		25
CCO Safari II LLC
4.91%, 7/23/25 (c)		25		25
Coca-Cola Co.
3.20%, 11/1/23		25		26
EnLink Midstream Partners LP
5.60%, 4/1/44		25		23
Ensco PLC
5.75%, 10/1/44		25		17
Freeport-McMoRan, Inc.
3.88%, 3/15/23		20		15
General Motors Financial Co., Inc.,
4.00%, 1/15/25		25		24
4.30%, 7/13/25		30		29
Goldcorp, Inc.
3.70%, 3/15/23 (d)		37		35
Kinder Morgan, Inc.
4.30%, 6/1/25 (d)		25		23
McDonald's Corp.,
MTN
4.60%, 5/26/45		25		25
Merck & Co., Inc.
2.80%, 5/18/23		25		25
NBC Universal Media LLC
5.95%, 4/1/41		25		30
Omnicom Group, Inc.
3.65%, 11/1/24		15		15
Oracle Corp.
3.40%, 7/8/24		25		25
PepsiCo, Inc.
3.60%, 3/1/24		25		26
Quest Diagnostics, Inc.
2.70%, 4/1/19 (d)		250		252
Shell International Finance BV
3.25%, 5/11/25		25		25
Spectra Energy Capital LLC
3.30%, 3/15/23		25		22
Tiffany & Co.
4.90%, 10/1/44		25		24
Time Warner Cable, Inc.
4.50%, 9/15/42		25		20
Tyson Foods, Inc.
3.95%, 8/15/24		5		5
Yum! Brands, Inc.
3.88%, 11/1/20		175		183
				1,208
Utilities (3.0%)
Jersey Central Power & Light Co.
4.70%, 4/1/24 (c)(d)		75		78

	Face Amount (000)		Value (000)
PPL WEM Ltd./Western Power Distribution Ltd.
3.90%, 5/1/16 (c)	$	75	$	76
				154
				2,212
U.S. Treasury Security (3.7%)
U.S. Treasury Inflation Indexed Bond
0.25%, 1/15/25		202		193
Total Fixed Income Securities (Cost $3,953)				4,039
	Shares (000)
Short-Term Investments (26.0%)
Securities held as Collateral on Loaned Securities (3.7%)
Investment Company (3.2%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		168,222		168
	Face Amount (000)
Repurchase Agreements (0.5%)
Barclays Capital, Inc., (0.10%, dated 9/30/15, due 10/1/15; proceeds $14; fully collateralized by a U.S. Government obligation; 3.13% due 8/15/44; valued at $14)	$	14		14
BNP Paribas Securities Corp., (0.09%, dated 9/30/15, due 10/1/15; proceeds $10; fully collateralized by various U.S. Government agency securities; 0.00% - 7.25% due 11/5/15 - 10/11/33 and U.S. Government obligations; 0.00% - 1.88% due 10/15/15 - 9/30/17; valued at $10)		10		10
				24
Total Securities held as Collateral on Loaned Securities (Cost $192)				192
	Shares
Investment Company (4.2%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $218)		217,804		218
	Face Amount (000)
U.S. Treasury Securities (18.1%)
U.S. Treasury Bill
0.26%, 3/10/16 (e)(f)	$	199		199
U.S. Treasury Note
0.38%, 1/31/16		750		751
Total U.S. Treasury Securities (Cost $950)				950
Total Short-Term Investments (Cost $1,360)				1,360
Total Investments (103.0%) (Cost $5,313) Including $514 of Securities Loaned (g)(h)				5,399
Liabilities in Excess of Other Assets (-3.0%)				(157	)
Net Assets (100.0%)			$	5,242

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

(a) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on September 30, 2015.

(b) Inverse Floating Rate Security — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at September 30, 2015.

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

(d) All or a portion of this security was on loan at September 30, 2015.

(e) Rate shown is the yield to maturity at September 30, 2015.

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

(g) Securities are available for collateral in connection with open futures contracts and swap agreements.

(h) At September 30, 2015, the aggregate cost for Federal income tax purposes is approximately $5,313,000. The aggregate gross unrealized appreciation is approximately $185,000 and the aggregate gross unrealized depreciation is approximately $99,000 resulting in net unrealized appreciation of approximately $86,000.

IO Interest Only.

MTN Medium Term Note.

REMIC Real Estate Mortgage Investment Conduit.

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2015:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		1	$	219		Dec-15	$	—	@
U.S. Treasury 5 yr. Note		3		362		Dec-15		2
U.S. Treasury Ultra Long Bond		16		2,566		Dec-15		35
Short:
U.S. Treasury 10 yr. Note		1		(129	)	Dec-15		(2	)
U.S. Treasury Long Bond		15		(2,360	)	Dec-15		(44	)
							$	(9	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 2015:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Appreciation (Depreciation) (000)			Value (000)			Credit Rating of Reference Obligation† (Unaudited)
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	250		1.00	%	3/20/19	$	5		$	(9	)	$	(4	)	BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		250		1.00		12/20/18		(5	)		—	@		(5	)	BBB
		$	500					$	—	@	$	(9	)	$	(9	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at September 30, 2015:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Depreciation (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.73	%	3/9/20	$	200	$	(4	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.49		6/9/25		100		(5	)
									$	(9	)

@ Value is less than $500.

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

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

LIBOR London Interbank Offered Rate.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Fixed Income Portfolio

Portfolio Composition**

Classification	Percentage of Total Investments
Industrials		23.2	%
Short-Term Investments		22.4
Agency Fixed Rate Mortgages		19.2
Finance		16.3
Other***		10.6
Collateralized Mortgage Obligations — Agency Collateral Series		8.3
Total Investments		100.0	%****

** Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2015.

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

**** Does not include open long/short futures contracts with an underlying face amount of approximately $5,636,000 with net unrealized depreciation of approximately $9,000. Does not include open swap agreements with net unrealized depreciation of approximately $18,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Core Fixed Income Portfolio

Statement of Assets and Liabilities	September 30, 2015 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value(1) (Cost $4,927)	$	5,013
Investment in Security of Affiliated Issuer, at Value (Cost $386)		386
Total Investments in Securities, at Value (Cost $5,313)		5,399
Cash		13
Interest Receivable		38
Due from Adviser		33
Premium Paid on Open Swap Agreements		5
Receivable for Investments Sold		2
Unrealized Appreciation on Swap Agreements		—	@
Receivable from Affiliate		—	@
Receivable for Variation Margin on Swap Agreements		—	@
Other Assets		33
Total Assets		5,523
Liabilities:
Collateral on Securities Loaned, at Value		205
Payable for Professional Fees		26
Unrealized Depreciation on Swap Agreements		9
Payable for Trustees' Fees and Expenses		7
Premium Received on Open Swap Agreements		5
Payable for Custodian Fees		4
Payable for Variation Margin on Futures Contracts		3
Payable for Sub Transfer Agency Fees — Class I		2
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Payable for Administration Fees		—	@
Other Liabilities		19
Total Liabilities		281
Net Assets	$	5,242
Net Assets Consist Of:
Paid-in-Capital	$	41,614
Accumulated Undistributed Net Investment Income		176
Accumulated Net Realized Loss		(36,607	)
Unrealized Appreciation (Depreciation) on:
Investments		86
Futures Contracts		(9	)
Swap Agreements		(18	)
Net Assets	$	5,242

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Core Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2015 (000)
CLASS I:
Net Assets	$	4,790
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		481,118
Net Asset Value, Offering and Redemption Price Per Share	$	9.96
CLASS A:
Net Assets	$	329
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		32,817
Net Asset Value, Redemption Price Per Share	$	10.01
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.44
Maximum Offering Price Per Share	$	10.45
CLASS L:
Net Assets	$	49
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,904
Net Asset Value, Offering and Redemption Price Per Share	$	9.99
CLASS C:
Net Assets	$	74
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		7,404
Net Asset Value, Offering and Redemption Price Per Share	$	9.97
⁽¹⁾ Including: Securities on Loan, at Value:	$	514

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Core Fixed Income Portfolio

Statement of Operations	Year Ended September 30, 2015 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	376
Income from Securities Loaned — Net		2
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		379
Expenses:
Professional Fees		113
Advisory Fees (Note B)		47
Registration Fees		41
Custodian Fees (Note F)		29
Pricing Fees		11
Administration Fees (Note C)		10
Shareholder Reporting Fees		9
Transfer Agency Fees — Class I (Note E)		3
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Shareholder Services Fees — Class A (Note D)		1
Distribution and Shareholder Services Fees — Class L (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Trustees' Fees and Expenses		1
Sub Transfer Agency Fees — Class A		—	@
Sub Transfer Agency Fees — Class L		—	@
Other Expenses		7
Total Expenses		277
Expenses Reimbursed by Adviser (Note B)		(169	)
Waiver of Advisory Fees (Note B)		(47	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		55
Net Investment Income		324
Realized Gain (Loss):
Investments Sold		237
Futures Contracts		(12	)
Swap Agreements		(78	)
Net Realized Gain		147
Change in Unrealized Appreciation (Depreciation):
Investments		(326	)
Futures Contracts		(7	)
Swap Agreements		(31	)
Net Change in Unrealized Appreciation (Depreciation)		(364	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(217	)
Net Increase in Net Assets Resulting from Operations	$	107

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Core Fixed Income Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2015 (000)			Year Ended September 30, 2014 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	324		$	1,046
Net Realized Gain		147			891
Net Change in Unrealized Appreciation (Depreciation)		(364	)		145
Net Increase in Net Assets Resulting from Operations		107			2,082
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(497	)		(1,206	)
Class A:
Net Investment Income		(9	)		(12	)
Class L:
Net Investment Income		(1	)		(—	@)
Class C:
Net Investment Income		(—	@)*		—
Total Distributions		(507	)		(1,218	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		319			11,931
Distributions Reinvested		148			1,125
Redeemed		(9,639	)		(48,180	)
Class A:
Subscribed		258			100
Distributions Reinvested		8			12
Redeemed		(71	)		(497	)
Class L:
Subscribed		45			33
Distributions Reinvested		1			—	@
Redeemed		(5	)		(33	)
Class C:
Subscribed		75	*		—
Distributions Reinvested		—	@*		—
Net Decrease in Net Assets Resulting from Capital Share Transactions		(8,861	)		(35,509	)
Total Decrease in Net Assets		(9,261	)		(34,645	)
Net Assets:
Beginning of Period		14,503			49,148
End of Period (Including Accumulated Undistributed Net Investment Income of $176 and $356)	$	5,242		$	14,503
(1) Capital Share Transactions:
Class I:
Shares Subscribed		31			1,176
Shares Issued on Distributions Reinvested		15			113
Shares Redeemed		(972	)		(4,736	)
Net Decrease in Class I Shares Outstanding		(926	)		(3,447	)
Class A:
Shares Subscribed		25			11
Shares Issued on Distributions Reinvested		1			1
Shares Redeemed		(7	)		(49	)
Net Increase (Decrease) in Class A Shares Outstanding		19			(37	)
Class L:
Shares Subscribed		4			3
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(—	@@)		(3	)
Net Increase (Decrease) in Class L Shares Outstanding		4			(—	@@)
Class C:
Shares Subscribed		7	*		—
Shares Issued on Distributions Reinvested		—	@@*		—
Net Increase in Class C Shares Outstanding		7	*		—

* For the period April 30, 2015 through September 30, 2015.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Core Fixed Income Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	10.20		$	10.02		$	10.50		$	10.08		$	9.96
Income (Loss) from Investment Operations:
Net Investment Income†		0.26			0.28			0.26			0.29			0.34
Net Realized and Unrealized Gain (Loss)		(0.15	)		0.21			(0.42	)		0.48			0.08
Total from Investment Operations		0.11			0.49			(0.16	)		0.77			0.42
Distributions from and/or in Excess of:
Net Investment Income		(0.35	)		(0.31	)		(0.32	)		(0.35	)		(0.30	)
Net Asset Value, End of Period	$	9.96		$	10.20		$	10.02		$	10.50		$	10.08
Total Return++		1.12	%		4.97	%		(1.57	)%		7.83	%		4.34	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	4,790		$	14,350		$	48,620		$	57,013		$	63,866
Ratio of Expenses to Average Net Assets⁽¹⁾		0.43	%+		0.49	%+		0.49	%+		0.49	%+		0.50	%+
Ratio of Net Investment Income to Average Net Assets⁽¹⁾		2.59	%+		2.81	%+		2.57	%+		2.80	%+		3.43	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%§
Portfolio Turnover Rate		104	%		172	%		187	%		216	%		234	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		2.15	%		1.47	%		1.16	%		0.97	%		0.99	%
Net Investment Income to Average Net Assets		0.87	%		1.83	%		1.90	%		2.32	%		2.94	%

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

+ The Ratios of Expenses and Net Investment Income reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

§ Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Core Fixed Income Portfolio

	Class A
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	10.27		$	10.07		$	10.56		$	10.14		$	10.01
Income (Loss) from Investment Operations:
Net Investment Income†		0.21			0.25			0.24			0.23			0.31
Net Realized and Unrealized Gain (Loss)		(0.15	)		0.21			(0.43	)		0.52			0.09
Total from Investment Operations		0.06			0.46			(0.19	)		0.75			0.40
Distributions from and/or in Excess of:
Net Investment Income		(0.32	)		(0.26	)		(0.30	)		(0.33	)		(0.27	)
Net Asset Value, End of Period	$	10.01		$	10.27		$	10.07		$	10.56		$	10.14
Total Return++		0.58	%		4.61	%		(1.89	)%		7.55	%		4.11	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	329		$	143		$	518		$	330		$	44
Ratio of Expenses to Average Net Assets⁽¹⁾		0.84	%+		0.84	%+		0.75	%+^		0.74	%+		0.75	%+
Ratio of Net Investment Income to Average Net Assets⁽¹⁾		2.08	%+		2.46	%+		2.32	%+^		2.25	%+		3.18	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%§
Portfolio Turnover Rate		104	%		172	%		187	%		216	%		234	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		3.23	%		2.15	%		1.44	%		1.33	%		1.24	%
Net Investment Income (Loss) to Average Net Assets		(0.31	)%		1.15	%		1.63	%		1.66	%		2.69	%

† Per share amount is based on average shares outstanding.

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

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.85% for Class A shares. Prior to September 16, 2013, the maximum ratio was 0.75% for Class A shares.

§ Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Core Fixed Income Portfolio

	Class L
	Year Ended September 30,									Period from April 27, 2012^ to
Selected Per Share Data and Ratios	2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	10.24		$	10.07		$	10.55		$	10.29
Income (Loss) from Investment Operations:
Net Investment Income†		0.18			0.22			0.27			0.06
Net Realized and Unrealized Gain (Loss)		(0.15	)		0.21			(0.48	)		0.27
Total from Investment Operations		0.03			0.43			(0.21	)		0.33
Distributions from and/or in Excess of:
Net Investment Income		(0.28	)		(0.26	)		(0.27	)		(0.07	)
Net Asset Value, End of Period	$	9.99		$	10.24		$	10.07		$	10.55
Total Return++		0.31	%		4.34	%		(2.05	)%		3.23	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	49		$	10		$	10		$	10
Ratio of Expenses to Average Net Assets⁽¹⁾		1.09	%+		1.09	%+		1.00	%+^^		0.99	%+*
Ratio of Net Investment Income to Average Net Assets⁽¹⁾		1.76	%+		2.21	%+		2.41	%+^^		1.45	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%		0.01	%*
Portfolio Turnover Rate		104	%		172	%		187	%		216	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		7.59	%		14.10	%		2.21	%		1.58	%*
Net Investment Income (Loss) to Average Net Assets		(4.74	)%		(10.80	)%		1.20	%		0.86	%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Core Fixed Income Portfolio

	Class C
Selected Per Share Data and Ratios	Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.22
Income (Loss) from Investment Operations:
Net Investment Income†		0.03
Net Realized and Unrealized Loss		(0.22	)
Total from Investment Operations		(0.19	)
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)
Net Asset Value, End of Period	$	9.97
Total Return++		(1.84	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	74
Ratios of Expenses to Average Net Assets ⁽¹⁾		1.59	%+*
Ratio of Net Investment Income to Average Net Assets⁽¹⁾		0.70	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*
Portfolio Turnover Rate		104	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		5.48	%*
Net Investment Loss to Average Net Assets		(3.19	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements

Morgan Stanley Institutional Fund Trust (''MSIFT" or the "Fund'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Fund is comprised of nine separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). The Fund applies investment company accounting and reporting guidance. All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Core Fixed Income Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers four classes of shares — Class I, Class A, Class L and Class C.

On April 30, 2015, the Portfolio commenced offering Class C shares.

A. Significant Accounting Policies: The following significant accounting policies are in conformity with U.S. generally accepted accounting principles ("GAAP"). Such policies are consistently followed by the Fund in the preparation of its financial statements. GAAP may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results may differ from those estimates.

1. Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (2) futures are valued at the latest price published by the commodities exchange on which they trade; (3) swaps are marked-to-market daily based upon quotations from market makers; (4) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the

Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (6) short-term taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

The Fund has procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

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

investments. The inputs are summarized in the three broad levels listed below.

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

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

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

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

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 2015.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Fixed Rate Mortgages	$	—	$	998	$	—	$	998
Asset-Backed Security		—		202		—		202
Collateralized Mortgage Obligations — Agency Collateral Series		—		434		—		434
Corporate Bonds		—		2,212		—		2,212
U.S. Treasury Security		—		193		—		193
Total Fixed Income Securities		—		4,039		—		4,039

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Short-Term Investments
Investment Company	$	386		$	—		$	—	$	386
Repurchase Agreements		—			24			—		24
U.S Treasury Securities		—			950			—		950
Total Short-Term Investments		386			974			—		1,360
Futures Contracts		37			—			—		37
Credit Default Swap Agreement		—			—	@		—		—	@
Total Assets		423			5,013			—		5,436
Liabilities:
Futures Contracts		(46	)		—			—		(46	)
Credit Default Swap Agreement		—			(9	)		—		(9	)
Interest Rate Swap Agreements		—			(9	)		—		(9	)
Total Liabilities		(46	)		(18	)		—		(64	)
Total	$	377		$	4,995		$	—	$	5,372

@ Value is less than $500

3. Repurchase Agreements: The Portfolio may enter into repurchase agreements under which the Portfolio lends cash and takes possession of securities with an agreement that the counterparty will repurchase such securities. In connection with transactions in repurchase agreements, a bank as custodian for the Portfolio takes possession of the underlying securities which are held as collateral, with a market value at least equal to the amount of the repurchase transaction, including principal and accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to determine that the value of the collateral does not decrease below the repurchase price plus accrued interest as earned. If such a decrease occurs, additional collateral will be requested and, when received, will be added to the account to maintain full collateralization. In the event of default on the obligation to repurchase, the Portfolio has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the

counterparty to the agreement, realization of the collateral proceeds may be subject to cost and delays. The Portfolio, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into repurchase agreements.

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

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

Futures: A futures contract is a standardized, exchange-traded agreement to buy or sell a specific quantity of an underlying asset, reference rate or index at a specific price at a specific future time. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. Depending on the terms of the particular contract, futures contracts are settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Portfolio's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with which the Portfolio has open positions in the futures contract.

counterparty credit risk. In a cleared swap, the Portfolio's ultimate counterparty is a clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis.

The Portfolio's use of swaps during the period included those based on the credit of an underlying security commonly referred to as "credit default swaps." The Portfolio may be either the buyer or seller in a credit default swap. Where the Portfolio is the buyer of a credit default swap contract, it would typically be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract only in the event of a default or similar event by the issuer of the debt obligation. If no default occurs, the Portfolio would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Portfolio is the seller of a credit default swap contract, it typically receives the stream of payments but is obligated to pay an amount equal to the par (or other agreed-upon) value of a referenced debt obligation upon the default or similar event by the issuer of the referenced debt obligation. The use of credit default swaps could result in losses to the Portfolio if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

amount of the swap agreement and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap agreement and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

The current credit rating of each individual issuer is listed in the table following the Portfolio of Investments and serves as an indicator of the current status of the payment/performance risk of the credit derivative. Alternatively, for credit default swaps on an index of credits, the quoted market prices and current values serve as an indicator of the current status of the payment/performance risk of the credit derivative. Generally, lower credit ratings and increasing market values, in absolute terms, represent a deterioration of the credit and a greater likelihood of an adverse credit event of the issuer.

adjusted if and when the swap valuations fluctuate. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability, respectively, in the Statement of Assets and Liabilities.

FASB ASC 815, "Derivatives and Hedging" ("ASC 815"), is intended to improve financial reporting about derivative instruments by requiring enhanced disclosures to enable investors to better understand how and why the Portfolio uses derivative instruments, how these derivative instruments are accounted for and their effects on the Portfolio's financial position and results of operations.

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2015.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(a)

Swap Agreement

Unrealized Appreciation on
Swap Agreement

Credit Risk

—

Total

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(46

)(a)

Swap Agreement

Unrealized Depreciation on
Swap Agreement

Credit Risk

)

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

)(a)

Total

(64

)

(a) This amount represents the cumulative appreciation (depreciation) as reported in the Portfolio of Investments. The Statement of Assets and Liabilities only reflects the current day's net variation margin.

@ Amount is less than $500.

The following tables set forth by primary risk exposure the Portfolio's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the year ended September 30, 2015 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(12	)
Credit Risk	Swap Agreements		(5	)
Interest Rate Risk	Swap Agreements		(73	)
	Total	$	(90	)

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(7	)
Credit Risk	Swap Agreements		(3	)
Interest Rate Risk	Swap Agreements		(28	)
	Total	$	(38	)

At September 30, 2015, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)			Liabilities(c) (000)
Swap Agreements	$	—	@	$	(9	)

(b) Excludes exchange traded derivatives

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

@ Amount is less than $500.

The Portfolio typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreements") or similar master agreements (collectively, "Master Agreements") with its contract counterparties for certain OTC derivatives in order to, among other things, reduce its credit risk to counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Portfolio typically may offset with the counterparty certain OTC derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Portfolio and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Portfolio exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master

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

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	—	@	$	(—	@)	$	—	$	0
Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	9		$	(—	@)	$	—	$	9

@ Amount is less than $500.

For the year ended September 30, 2015, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	9,622,000
Swap Agreements:
Average monthly notional amount	$	4,372,000

5. Securities Lending: The Portfolio lends securities to qualified financial institutions, such as broker-dealers, to earn additional income. Any increase or decrease in the fair value of the securities loaned that might occur and any interest earned or dividends declared on those securities during the term of the loan would remain in the Portfolio. The Portfolio would receive cash or securities as collateral in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

compensation to the lending agent, and is recorded as "Income from Securities Loaned-Net" in the Portfolio's Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

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

The following table presents securities on loan that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	514	(d)	$	—	$	(514	)(e)(f)	$	0

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

(e) The Portfolio received cash collateral of approximately $205,000, of which approximately $192,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of September 30, 2015, there was uninvested cash of approximately $13,000, which is not reflected in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $323,000 in the form of U.S. Government agency securities and U.S. Government obligations, which the Portfolio cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

(f) The actual collateral received is greater than the amount shown here due to overcollateralization.

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

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

income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses -distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

B. Advisory Fees: The Adviser, a wholly-owned subsidiary of Morgan Stanley, provides the Portfolio with advisory services under the terms of an Investment Advisory Agreement, paid quarterly, at an annual rate of 0.375% of the daily net assets of the Portfolio.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.50% for Class I shares, 0.85% for Class A shares, 1.10% for Class L shares and 1.60% for Class C shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended September 30, 2015, approximately $47,000 of advisory fees were waived and approximately $174,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street, State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Portfolio.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.25% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class L shares.

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class C shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.75% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class C shares.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class A, Class L and Class C shares.

E. Dividend Disbursing and Transfer Agent: The Fund's dividend disbursing and transfer agent is Boston Financial Data Services, Inc. ("BFDS"). Pursuant to a Transfer Agency Agreement, the Fund pays BFDS a fee based on the number of classes, accounts and transactions relating to the Portfolios of the Fund.

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

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2015, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $2,601,000 and $5,402,000, respectively. For the year ended September 30, 2015, purchases and sales of long-term U.S. Government securities were approximately $8,965,000 and $14,807,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the year ended September 30, 2015, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the year ended September 30, 2015 is as follows:

Value September 30, 2014 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	1,889			$	12,105			$	13,608			$	1			$	386

The Portfolio has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Portfolio.

H. Federal Income Taxes: It is the Portfolio's intention to continue to qualify as a regulated investment company and distribute all of its taxable and tax-exempt income. Accordingly, no provision for Federal income taxes is required in the financial statements.

The Portfolio may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended September 30, 2015, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Statements of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal years 2015 and 2014 was as follows:

2015 Distributions Paid From: Ordinary Income (000)				2014 Distributions Paid From: Ordinary Income (000)
$	507			$	1,218

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

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

Permanent differences, primarily due to basis adjustments for swap transactions and paydown adjustments, resulted in the following reclassifications among the components of net assets at September 30, 2015:

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

At September 30, 2015, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	168			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	33,234	September 30, 2017
	3,319	September 30, 2018

To the extent that capital loss carryforwards are used to offset any future capital gains realized during the carryover period as provided by U.S. Federal income tax regulations, no capital gains tax liability will be incurred by the Portfolio for gains realized and not distributed. To the extent that capital gains are offset, such gains will not be distributed to the shareholders. During the year ended September 30, 2015, the Portfolio utilized capital loss carryforwards for U.S. Federal income tax purposes of approximately $195,000.

Capital losses and specified ordinary losses, including currency losses, incurred after October 31 but within the taxable year are deemed to arise on the first day of the Portfolio's next taxable year. For the year ended September 30, 2015, the Portfolio deferred to October 1, 2015 for U.S. Federal income tax purposes the following losses:

Post-October Currency And Specified Ordinary Losses (000)				Post-October Capital Losses (000)
$	—			$	63

I. Other: At September 30, 2015, the Portfolio had otherwise unaffiliated record owners of 10% or greater. Investment activities of these shareholders could have a material impact on the Portfolio. The aggregate percentage of such owners was 87.5%.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Core Fixed Income Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Core Fixed Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Portfolio's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2015, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Core Fixed Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 25, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

The Board reviewed and considered the nature and extent of the investment advisory services provided by the Adviser (as defined herein) under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services provided by the Adviser under the administration agreement, including accounting, operations, clerical, bookkeeping, compliance, business management and planning, legal services and the provision of supplies, office space and utilities at the Adviser's expense. The Board also considered the Adviser's investment in personnel and infrastructure that benefits the Portfolio. (The advisory and administration agreements together are referred to as the "Management Agreement.") The Board also considered that the Adviser serves a variety of other investment advisory clients and has experience overseeing service providers. The Board also compared the nature of the services provided by the Adviser with similar services provided by non-affiliated advisers as reported to the Board by Lipper, Inc. ("Lipper").

The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who provide the administrative and advisory services to the Portfolio. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services provided were necessary and appropriate for the conduct of the business and investment activities of the Portfolio and supported its decision to approve the Management Agreement.

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2014, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. The Board noted that the Portfolio's management fee and total expense ratio were lower than its peer group average. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; and (ii) management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

The Board considered the size and growth prospects of the Portfolio and how that relates to the Portfolio's total expense ratio and particularly the Portfolio's management fee rate, which does not include breakpoints. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Portfolio and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and/or potential economies of scale of the Portfolio supports its decision to approve the Management Agreement.

Profitability of the Adviser and Affiliates

The Board considered information concerning the costs incurred and profits realized by the Adviser and its affiliates during the last year from their relationship with the Portfolio and during the last two years from their relationship with the Morgan Stanley Fund Complex and reviewed with the Adviser the cost allocation methodology used to determine the profitability of the Adviser and affiliates. The Board has determined that its review of the analysis of the Adviser's expenses and profitability supports its decision to approve the Management Agreement.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

The Board considered other direct and indirect benefits to the Adviser and/or its affiliates derived from their relationship with the Portfolio and other funds advised by the Adviser. These benefits may include, among other things, fees for trading, distribution and/or shareholder servicing and for transaction processing and reporting platforms used by securities lending agents, and research received by the Adviser generated from commission dollars spent on funds' portfolio trading. The Board reviewed with the Adviser these arrangements and the reasonableness of the Adviser's costs relative to the services performed. The Board has determined that its review of the other benefits received by the Adviser or its affiliates supports its decision to approve the Management Agreement.

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

The Board considered whether the Adviser is financially sound and has the resources necessary to perform its obligations under the Management Agreement. The Board also reviewed and considered the historical relationship between the Portfolio and the Adviser, including the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Portfolio's operations and the Board's confidence in the competence and integrity of the senior managers and key personnel of the Adviser. The Board concluded that the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Portfolio to continue its relationship with the Adviser.

Other Factors and Current Trends

The Board considered the controls and procedures adopted and implemented by the Adviser and monitored by the Fund's Chief Compliance Officer and concluded that the conduct of business by the Adviser indicates a good faith effort on its part to adhere to high ethical standards in the conduct of the Portfolio's business.

General Conclusion

After considering and weighing all of the above factors, with various written materials and verbal information presented by the Adviser, the Board concluded that it would be in the best interest of the Portfolio and its shareholders to approve renewal of the Management Agreement for another year. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. The Board considered these factors and information over the course of the year and in numerous meetings, some of which were in executive session with only the independent Board members and their counsel present. It is possible that individual Board members may have weighed these factors, and the information presented, differently in reaching their individual decisions to approve the Management Agreement.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

We are required by federal law to provide you with notice of our U.S. privacy policy ("Policy"). This Policy applies to both our current and former clients unless we state otherwise and is intended for individual clients who purchase products or receive services from us for personal, family or household purposes. This Policy is not applicable to partnerships, corporations, trusts or other non-individual clients or account holders, nor is this Policy applicable to individuals who are either beneficiaries of a trust for which we serve as trustee or participants in an employee benefit plan administered or advised by us. This Policy is, however, applicable to individuals who select us to be a custodian of securities or assets in individual retirement accounts, 401(k) accounts, or accounts subject to the Uniform Gifts to Minors Act.

This notice sets out our business practices to protect your privacy; how we collect and share personal information about you; and how you can limit our sharing or certain uses by others of this information. We may amend this Policy at any time, and will inform you of any changes to our Policy as required by law.

WE RESPECT YOUR PRIVACY

We appreciate that you have provided us with your personal financial information and understand your concerns about your information. We strive to safeguard the information our clients entrust to us. Protecting the confidentiality and security of client information is an important part of how we conduct our business.

This notice describes what personal information we collect about you, how we collect it, when we may share it with others, and how certain others may use it. It discusses the steps you may take to limit our sharing of certain information about you with our affiliated companies, including, but not limited to our affiliated banking businesses, brokerage firms and credit service affiliates. It also discloses how you may limit our affiliates' use of shared information for marketing purposes.

Throughout this Policy, we refer to the nonpublic information that personally identifies you as "personal information." We also use the term "affiliated company" in this notice. An affiliated company is a company in our family of companies and includes companies with the Morgan Stanley name. These affiliated companies are financial institutions such as broker-dealers, banks, investment advisers and credit card issuers. We refer to any company that is not an affiliated company as a nonaffiliated third party. For purposes of Section 5 of this notice, and your ability to limit certain uses of personal information by our affiliates, this notice applies to the use of personal information by our affiliated companies.

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

We may collect the following types of information about you: (i) information provided by you, including information from applications and other forms we receive from you, (ii) information about your transactions with us or our affiliates, (iii) information about your transactions with nonaffiliated third parties, (iv) information from consumer reporting agencies, (v) information obtained from our websites, and (vi) information obtained from other sources. For example:

• We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

• We may obtain information about account balances, your use of account(s) and the types of products and services you prefer to receive from us through your dealings and transactions with us and other sources.

• We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

• We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

We may disclose personal information that we collect about you to our affiliated companies to manage your account(s) effectively, to service and process your transactions, and to let you know about products and services offered by us and affiliated companies, to manage our business, and as otherwise required or permitted by law. Offers for products and services from affiliated companies are developed under conditions designed to safeguard your personal information.

b. Information We Disclose to Third Parties.

We may disclose personal information that we collect about you to nonaffiliated third parties to provide marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. We may also disclose all of the information we collect to other nonaffiliated third parties for our everyday business purposes, such as to process transactions, maintain account(s), respond to court orders and legal investigations, report to credit bureaus, offer our own products and services, protect against fraud, for institutional risk control, to perform services on our behalf, and as otherwise required or permitted by law.

When we share personal information about you with a nonaffiliated third party, they are required to limit their use of personal information about you to the particular purpose for which it was shared and they are not allowed to share personal information about you with others except to fulfill that limited purpose or as may be permitted or required by law.

3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We maintain physical, electronic and procedural security measures that comply with applicable law and regulations to help safeguard the personal information we collect about you. We have internal policies governing the proper handling of client information by employees. Third parties that provide support or marketing services on our behalf may also receive personal information about you, and we require them to adhere to appropriate security standards with respect to such information.

4. HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

By following the opt-out procedures in Section 6 below, you may limit the extent to which we share with our affiliated companies, personal information that was collected to determine your eligibility for products and services such as your credit reports and other information that you have provided to us or that we may obtain from third parties ("eligibility information"). Eligibility information does not include your identification information or personal information pertaining to our transactions or experiences with you. Please note that, even if you direct us not to share eligibility information with our affiliated companies, we may still share your personal information, including eligibility information, with our affiliated companies under circumstances that are permitted under applicable law, such as to process transactions or to service your account.

5. HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

By following the opt-out instructions in Section 6 below, you may limit our affiliated companies from marketing their products or services to you based on personal information we disclose to them. This information may include, for example, your income and account history with us. Please note that, even if you choose to limit our affiliated companies from using personal information about you that we may share with them for marketing their products and services to you, our affiliated companies may use your personal information that they obtain from us to market to you in circumstances permitted by law, such as if the affiliated party has its own relationship with you.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

6. HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

If you wish to limit our sharing of eligibility information about you with our affiliated companies, or our affiliated companies' use of personal information for marketing purposes, as described in this notice, you may do so by:

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.m. (EST)

• Writing to us at the following address:

Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

If you choose to write to us, your request should include: your name, address, telephone number and account number(s) to which the opt-out applies and whether you are opting out with respect to sharing of eligibility information (Section 4 above), or information used for marketing (Section 5 above), or both. Written opt-out requests should not be sent with any other correspondence. In order to process your request, we require that the request be provided by you directly and not through a third party. Once you have informed us about your privacy preferences, your opt-out preference will remain in effect with respect to this Policy (as it may be amended) until you notify us otherwise. If you are a joint account owner, we will accept instructions from any one of you and apply those instructions to the entire account.

Please understand that if you limit our sharing or our affiliated companies' use of personal information, you and any joint account holder(s) may not receive information about our affiliated companies' products and services, including products or services that could help you manage your financial resources and achieve your investment objectives.

If you have more than one account or relationship with us, please specify the accounts to which you would like us to apply your privacy choices. If you have accounts or relationships with our affiliates, you may receive multiple privacy policies from them, and will need to separately notify those companies of your privacy choices for those accounts or relationships.

7. WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

If, at any time in the future, an affiliated company becomes a nonaffiliated third party, further disclosures of personal information made to the former affiliated company will be limited to those described in Section 2(b) above relating to nonaffiliated third parties. If you elected under Section 6 to limit disclosures we make to affiliated companies, or use of personal information by affiliated companies, your election will not apply to use by any former affiliated company of your personal information in their possession once it becomes a nonaffiliated third party.

SPECIAL NOTICE TO RESIDENTS OF VERMONT

The following section supplements our Policy with respect to our individual clients who have a Vermont address and supersedes anything to the contrary in the above Policy with respect to those clients only.

The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with nonaffiliated third parties, or eligibility information with affiliated companies, other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or eligibility information with affiliated companies, unless you provide us with your written consent to share such information.

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

The following section supplements our Policy with respect to our individual clients who have a California address and supersedes anything to the contrary in the above Policy with respect to those clients only.

In response to a California law, if your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (70)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

President, Strategic Decisions, LLC (consulting) (since February 2009); Director or Trustee of various Morgan Stanley Funds (since August 2006); Chairperson of the Compliance and Insurance Committee (since October 2015); Chairperson of the Insurance Sub-Committee of the Compliance and Insurance Committee (since February 2007); served as President and Chief Executive Officer of the Nuclear Energy Institute (policy organization) (February 2005-November 2008); retired as Admiral, U.S. Navy after serving over 38 years on active duty including 8 years as Director of the Naval Nuclear Propulsion Program in the Department of the Navy and the U.S. Department of Energy (1996-2004); served as Chief of Naval Personnel (July 1994-September 1996); and on the Joint Staff as Director of Political Military Affairs (June 1992-July1994); knighted as Honorary Knight Commander of the Most Excellent Order of the British Empire; awarded the Officier de l'Orde National du Mérite by the French Government; elected to the National Academy of Engineering (2009).

Director of BP p.l.c.; Director of Naval and Nuclear Technologies LLP; Director Emeritus of the Armed Services YMCA of the USA; Director of the U.S. Naval Submarine League; Member of the National Security Advisory Council of the Center for U.S. Global Engagement and a member of the CNA Military Advisory Board; Chairman of the Charity J Street Cup Golf ; Trustee of Fairhaven United Methodist Church.

Kathleen A. Dennis (62)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); Chairperson of the Money Market and Alternatives Sub-Committee of the Investment Committee (since October2006) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006).

Director of various nonprofit organizations.

Nancy C. Everett (60)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Owner, OBIR, LLC (institutional investment management consulting) (since June 2014); formerly, Managing Director, BlackRock, Inc. (February 2011-December 2013); and Chief Executive Officer, General Motors Asset Management (a/k/a Promark Global Advisors, Inc.) (June 2005-May 2010).

Member of Virginia Commonwealth University Board of Visitors; Member of Virginia Commonwealth University School of Business Foundation; formerly, Member of Committee on Directors for Emerging Markets Growth Fund, Inc. (2007-2010); Chairperson of Performance Equity Management, LLC (2006-2010); and Chairperson, GMAM Absolute Return Strategies Fund, LLC (2006-2010).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Jakki L. Haussler (58)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Chairman and Chief Executive Officer, Opus Capital Group (since January 1996); and formerly, Director, Capvest Venture Fund, LP (May 2000-December 2011); Partner, Adena Ventures, LP (July 1999-December 2010); Director, The Victory Funds (February 2005-July 2008).

Director of Cincinnati Bell Inc. and Member, Audit Committee and Compensation Committee; Director of Northern Kentucky University Foundation and Member, Investment Committee; Member of Chase College of Law Transactional Law Practice Center Board of Advisors; Director of Best Transport; Member, University of Cincinnati Foundation Investment Committee; formerly, Member, Miami University Board of Visitors (2008-2011); Trustee of Victory Funds (2005-2008) and Chairman, Investment Committee (2007-2008) and Member, Service Provider Committee (2005-2008).

Dr. Manuel H. Johnson (66)
c/o Johnson Smick International, Inc.
220 I Street, N.E. —
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

Senior Partner, Johnson Smick International, Inc. (consulting firm); Chairperson of the Investment Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since July 1991); Co-Chairman and a founder of the Group of Seven Council (G7C) (international economic commission); formerly Chairperson of the Audit Committee (July 1991-September 2006), Vice Chairman of the Board of Governors of the Federal Reserve System and Assistant Secretary of the U.S. Treasury.

Director of NVR, Inc. (home construction).

Joseph J. Kearns (73)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

President, Kearns & Associates LLC (investment consulting); Chairperson of the Audit Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since August 1994); formerly, Deputy Chairperson of the Audit Committee (July 2003-September 2006) and Chairperson of the Audit Committee of various Morgan Stanley Funds (since August 1994); CFO of the J. Paul Getty Trust.

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Michael F. Klein (56)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Managing Director, Aetos Capital, LLC (since March 2000); Co-President, Aetos Alternatives Management, LLC (since January 2004); and Co-Chief Executive Officer of Aetos Capital LLC (since August 2013); Chairperson of the Fixed Income Sub-Committee of the Investment Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Managing Director, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management, President, various Morgan Stanley Funds (June1998-March 2000) and Principal, Morgan Stanley & Co. Inc. and Morgan Stanley Dean Witter Investment Management (August 1997-December 1999).

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (79)
522 Fifth Avenue
New York, NY 10036

Chair of the
Board and
Trustee

Chair of the Boards since
July 2006 and
Trustee since
July 1991

Chair of the Boards of various Morgan Stanley Funds (since July 2006); Chairperson of the Closed-End Fund Committee (since June 2012) and Director or Trustee of various Morgan Stanley Funds (since July 1991); formerly, Chairperson of the Insurance Committee (until July 2006), General Partner, Triumph Capital, L.P. (private investment partnership) (1988-2013).

None.

W. Allen Reed (68)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Chairperson of the Equity Sub-Committee of the Investment Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, President and CEO of General Motors Asset Management; Chairman and Chief Executive Officer of the GM Trust Bank and Corporate Vice President of General Motors Corporation (August 1994-December 2005).

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (83)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

Formerly, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc. (1987-December 2012).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Positions(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (67)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

Formerly, Director of AXA Financial, Inc. and AXA Equitable Life Insurance Company (2002-2011) and Director of AXA MONY Life Insurance Company and AXA MONY Life Insurance Company of America (2004-2011).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

** The Fund Complex includes (as of December 31, 2014) all open-end and closed-end funds (including all of their portfolios) advised by Morgan Stanley Investment Management Inc. (the "Adviser") and any funds that have an adviser that is an affiliated person of the Adviser (including, but not limited to, Morgan Stanley AIP GP LP).

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (52)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

President and Principal Executive Officer of the Equity and Fixed Income Funds and the Morgan Stanley AIP Funds (since September 2013) and the Liquidity Funds and various money market funds (since May 2014) in the Fund Complex, Managing Director of the Adviser; Head of Product (since 2006) and Global Portfolio Analysis and Reporting (since 2012); for MSIM's Long Only business.

Stefanie V. Chang Yu (48)
522 Fifth Avenue
New York, NY 10036

Chief
Compliance
Officer

Since
December
1997

Managing Director of the Adviser and various entities affiliated with the Adviser; Chief Compliance Officer of various Morgan Stanley Funds and the Adviser (since January 2014); formerly, Vice President of various Morgan Stanley Funds (December 1997-January 2014).

Joseph C. Benedetti (50)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Managing Director of the Adviser and various entities affiliated with the Adviser; Vice President of various Morgan Stanley Funds (since January 2014); formerly, Assistant Secretary of various Morgan Stanley Funds (October 2004-January 2014).

Francis J. Smith (50)
522 Fifth Avenue
New York, NY 10036

Treasurer and
Principal
Financial
Officer

Treasurer
since July
2003 and
Principal
Financial
Officer since
September
2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (48)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves a one-year term, until his or her successor is elected and has qualified.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Each Morgan Stanley fund provides a complete schedule of portfolio holdings in its semi-annual and annual reports within 60 days of the end of the fund's second and fourth fiscal quarters. The semi-annual and annual reports are filed electronically with the Securities and Exchange Commission (SEC) on Form N-CSRS and Form N-CSR, respectively. Morgan Stanley also delivers the semi-annual and annual reports to fund shareholders and makes these reports available on its public website, www.morganstanley.com/im. Each Morgan Stanley fund also files a complete schedule of portfolio holdings with the SEC for the fund's first and third fiscal quarters on Form N-Q. Morgan Stanley does not deliver the reports for the first and third fiscal quarters to shareholders, nor are the reports posted to the Morgan Stanley public website. You may, however, obtain the Form N-Q filings (as well as the Form N-CSR and N-CSRS filings) by accessing the SEC's website, www.sec.gov. You may also review and copy them at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling the SEC toll free at 1 (800) SEC-0330. You can also request copies of these materials, upon payment of a duplicating fee, by electronic request at the SEC's email address (publicinfo@sec.gov) or by writing the Public Reference Room of the SEC, Washington, DC 20549-0102.

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

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

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

IFTFXDINCANN
1333135 EXP 11.30.16

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Core Plus Fixed Income Portfolio

Annual Report

September 30, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Overview					4
Portfolio of Investments					7
Statement of Assets and Liabilities					16
Statement of Operations					18
Statements of Changes in Net Assets					19
Financial Highlights					20
Notes to Financial Statements					24
Report of Independent Registered Public Accounting Firm					35
Investment Advisory Agreement Approval					36
U.S. Privacy Policy					38
Trustee and Officer Information					41

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Core Plus Fixed Income Portfolio (the "Portfolio") performed during the latest twelve-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

October 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Expense Example (unaudited)

Core Plus Fixed Income Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2015 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/15		Actual Ending Account Value 9/30/15		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
Core Plus Fixed Income Portfolio Class I	$	1,000.00	$	983.20	$	1,022.51	$	2.54	*	$	2.59	*		0.51	%
Core Plus Fixed Income Portfolio Class A		1,000.00		981.50		1,020.76		4.27	*		4.36	*		0.86
Core Plus Fixed Income Portfolio Class L		1,000.00		980.40		1,019.50		5.51	*		5.62	*		1.11
Core Plus Fixed Income Portfolio Class C		1,000.00		979.80		1,014.21		6.68	**		6.80	**		1.61

*** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited)

Core Plus Fixed Income Portfolio

The Core Plus Fixed Income Portfolio seeks above-average total return over a market cycle of three to five years.

Performance

For the fiscal year ended September 30, 2015, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 1.15%, net of fees. The Portfolio's Class I shares underperformed against the Portfolio's benchmark the Barclays U.S. Aggregate Index (the "Index"), which returned 2.94%.

Factors Affecting Performance

⁽ⁱ⁾ Source for U.S. Treasury yields: Bloomberg L.P.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Core Plus Fixed Income Portfolio

• Commercial mortgage-backed securities (CMBS) spreads also widened significantly in the latter half

of the period. Fundamentally, the CMBS sector remains healthy. Retail sales continue to climb, with August numbers up 0.2% from July and up 2.2% from August 2014.⁽ⁱⁱⁱ⁾ Consumer confidence rose in September to the second highest level in the past eight years.^(vii) Hotel occupancy rates are at their highest levels in more than 15 years, exceeding 65% occupancy so far in 2015.^(viii) For comparison, the previous credit cycle peak of 2004-2006 averaged roughly 63% occupancy. These high occupancy rates are boosting the performance of the hotel sector of CMBS. The improving economy and employment numbers are also helping reduce office space vacancies. National office vacancy rates fell by 0.4% to 13.5% in the second quarter of 2015 and are expected to fall further this year.^(ix) Office rental rates increased at roughly 1.1% in the second quarter of 2015, and this pace of increase is expected to continue based on the declining vacancy rates.^(ix)

Management Strategies

• Throughout the period, the Portfolio was positioned with exposure to the investment grade credit sector, primarily focused on financials, and to the high yield credit sector, as we believe valuations relative to fundamentals have been attractive in these segments. These positions detracted from performance during the period as volatility in global markets pushed spreads wider.

• The Portfolio also had allocations to non-agency mortgages and CMBS. Non-agency mortgage positions added to performance during the period as the sector remained mostly immune to global volatility; however, CMBS positioning detracted from performance.

⁽ⁱⁱ⁾ S&P/Case-Shiller 20-City Composite Home Price Index, an index gauging the value of residential real estate in 20 major U.S. metropolitan areas.

⁽ⁱⁱⁱ⁾ U.S. Census Bureau

^(iv) National Association of Realtors

^(v) National Association of Home Builders

^(vi) S&P/Experian First Mortgage Default Index, an index measuring default rates across first mortgages

^(vii) The Conference Board

^(viii) Statistica.com

^(ix) CBRE Group, Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Core Plus Fixed Income Portfolio

• We continue being overweight spread product (non-government bonds) as we believe the yield advantage could provide attractive returns over the near term.

* Minimum Investment

Performance Compared to the Barclays U.S. Aggregate Index⁽¹⁾ and the Lipper Core Plus Bond Funds Index⁽²⁾

	Period Ended September 30, 2015 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁸⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		1.15	%		4.50	%		3.41	%		7.24	%
Portfolio — Class A Shares w/o sales charges⁽⁵⁾		0.90			4.21			3.14			4.58
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁵⁾		–3.39			3.31			2.69			4.34
Portfolio — Class L Shares w/o sales charges⁽⁶⁾		0.59			—			—			3.28
Portfolio — Class C Shares w/o sales charges⁽⁷⁾		—			—			—			–2.02
Portfolio — Class C Shares with maximum 1.00% deferred sales charges⁽⁷⁾		—			—			—			–3.00
Barclays U.S. Aggregate Index		2.94			3.10			4.64			7.35
Lipper Core Plus Bond Funds Index		1.14			3.71			5.10			—

⁽²⁾ The Lipper Core Plus Bond Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Core Plus Bond Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Core Plus Bond Funds classification.

⁽³⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower.

⁽⁴⁾ Commenced operations on November 14, 1984.

⁽⁵⁾ Commenced operations on November 7, 1996.

⁽⁶⁾ Commenced operations on April 27, 2012.

⁽⁷⁾ Commenced operations on April 30, 2015.

⁽⁸⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (99.8%)
Agency Adjustable Rate Mortgage (0.5%)
Federal National Mortgage Association, Conventional Pool 2.41%, 5/1/35	$	959	$	1,018
Agency Fixed Rate Mortgages (20.1%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
3.50%, 1/1/44		1,220		1,275
5.41%, 2/1/37 - 8/1/37		63		70
5.44%, 1/1/37 - 6/1/38		158		175
5.46%, 5/1/37 - 4/1/38		140		154
5.48%, 8/1/37 - 10/1/37		160		177
5.50%, 8/1/37 - 4/1/38		173		191
5.52%, 9/1/37 - 1/1/38		42		46
5.62%, 12/1/36 - 7/1/38		120		133
6.00%, 10/1/36 - 8/1/38		486		547
6.50%, 3/1/16 - 8/1/33		246		282
7.00%, 6/1/28 - 11/1/31		62		65
November TBA:
3.00%, 11/1/45 (a)		870		877
3.50%, 11/1/45 (a)		5,900		6,126
4.00%, 11/1/45 (a)		4,647		4,938
Federal National Mortgage Association,
Conventional Pools:
3.00%, 5/1/30 - 4/1/45		1,907		1,955
3.50%, 4/1/29		782		827
4.00%, 11/1/41 - 7/1/43		5,303		5,683
4.50%, 3/1/41 - 11/1/44		2,869		3,174
5.00%, 3/1/41		473		524
5.50%, 6/1/35 - 1/1/37		144		162
5.62%, 12/1/36		35		40
6.50%, 11/1/23 - 1/1/34		2,021		2,316
7.00%, 11/1/17 - 1/1/34		349		381
9.50%, 4/1/30		292		340
November TBA:
4.50%, 11/1/45 (a)		2,061		2,233
October TBA:
3.00%, 10/1/30 (a)		506		527
3.50%, 10/1/30 (a)		84		89
Government National Mortgage Association,
October TBA:
3.50%, 10/20/45(a)		4,831		5,060
Various Pools:
3.50%, 12/15/43		798		840
4.00%, 8/20/41 - 3/20/43		1,180		1,266
5.48%, 9/20/37		10		11
5.56%, 7/20/37		22		24
				40,508
Asset-Backed Securities (4.7%)
American Homes 4 Rent
6.07%, 10/17/45 (b)		500		511

	Face Amount (000)			Value (000)
CAM Mortgage LLC
3.38%, 7/15/64 (b)	$	727		$	729
ContiMortgage Home Equity Loan Trust
8.10%, 8/15/25		30			29
CVS Pass-Through Trust
6.04%, 12/10/28		419			474
Invitation Homes Trust
4.96%, 8/17/32 (b)(c)		997			1,003
Mid-State Trust IV
8.33%, 4/1/30		13			13
Nationstar HECM Loan Trust,
3.84%, 5/25/18 (b)		568			572
7.50%, 11/25/17 (b)		739			746
RMAT LLC
4.83%, 6/25/35 (b)		1,039			1,041
Silver Bay Realty Trust
3.76%, 9/17/31 (b)(c)		700			679
Skopos Auto Receivables Trust
3.10%, 12/15/23 (b)		227			227
U-Haul S Fleet LLC
4.90%, 10/25/23 (b)		820			854
VOLT NPL X LLC
4.75%, 10/26/54 (b)		493			488
VOLT XIX LLC
5.00%, 4/25/55 (b)		300			302
VOLT XXII LLC
4.25%, 2/25/55 (b)		300			296
VOLT XXX LLC
4.75%, 10/25/57 (b)		400			400
VOLT XXXI LLC
4.50%, 2/25/55 (b)		400			397
VOLT XXXIII LLC
4.25%, 3/25/55 (b)		700			691
					9,452
Collateralized Mortgage Obligations — Agency Collateral Series (2.8%)
Federal Home Loan Mortgage Corporation,
3.72%, 6/25/48 (b)(c)		483			442
IO
0.81%, 1/25/21 (c)		9,408			236
IO REMIC
5.79%, 11/15/43 (c)		2,313			359
5.84%, 4/15/39 (c)		2,212			330
IO STRIPS
7.50%, 12/1/29		52			14
PAC REMIC
9.50%, 4/15/20		—	@		—	@
Federal National Mortgage Association,
IO
6.20%, 9/25/20 (c)		3,907			777
IO PAC REMIC
8.00%, 9/18/27		213			38

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Collateralized Mortgage Obligations — Agency Collateral Series (cont'd)
IO REMIC
6.00%, 7/25/33	$	163	$	37
IO STRIPS
6.50%, 9/25/29 - 12/25/29		839		174
8.00%, 4/25/24		217		29
8.50%, 10/25/25		74		17
9.00%, 11/25/26		67		17
REMIC
7.00%, 9/25/32		369		427
9.21%, 10/25/41 (c)(d)		125		129
63.37%, 9/25/20 (c)(d)		2		2
Government National Mortgage Association,
IO
3.50%, 5/20/43		2,077		426
5.00%, 2/16/41		483		97
5.84%, 11/16/40 (c)		2,887		538
5.89%, 7/16/33 (c)		3,942		377
5.93%, 6/20/43 (c)		1,708		275
6.01%, 3/20/43 (c)		1,165		204
6.28%, 5/20/40 (c)		1,402		263
IO PAC
5.93%, 10/20/41 (c)		3,892		454
				5,662
Commercial Mortgage-Backed Securities (7.6%)
Citigroup Commercial Mortgage Trust,
0.99%, 9/10/58 (c)		9,885		709
3.14%, 9/15/17 (b)(c)		800		754
COMM Mortgage Trust,
5.07%, 4/10/47 (b)(c)		883		817
5.21%, 8/10/46 (b)(c)		800		788
IO
0.42%, 7/10/45 (c)		16,078		192
1.17%, 10/10/47 (c)		4,702		260
1.45%, 7/15/47 (c)		4,240		302
Commercial Mortgage Pass-Through Certificates
4.76%, 2/10/47 (b)(c)		575		537
Commercial Mortgage Trust
5.48%, 3/10/39		450		467
CSMC Trust
4.36%, 3/15/17 (b)(c)		200		199
GS Mortgage Securities Trust,
4.93%, 8/10/46 (b)(c)		500		475
IO
1.02%, 9/10/47 (c)		5,939		326
HILT Mortgage Trust
3.95%, 7/15/29 (b)(c)		600		591
JP Morgan Chase Commercial Mortgage Securities Trust,
4.72%, 7/15/47 (b)(c)		1,135		996
5.46%, 12/12/43		600		611
IO
0.72%, 4/15/46 (c)		6,956		263
1.32%, 7/15/47 (c)		10,653		655

	Face Amount (000)		Value (000)
JPMBB Commercial Mortgage Securities Trust,
4.83%, 4/15/47 (b)(c)	$	775	$	700
IO
1.27%, 8/15/47 (c)		4,554		327
LB-UBS Commercial Mortgage Trust
6.45%, 9/15/45 (c)		550		574
Wells Fargo Commercial Mortgage Trust,
3.94%, 8/15/50 (b)		945		795
4.65%, 9/15/58 (b)(c)		471		416
WF-RBS Commercial Mortgage Trust,
3.43%, 6/15/45		966		1,016
3.80%, 11/15/47 (b)(c)		950		782
3.99%, 5/15/47 (b)		580		497
4.28%, 5/15/45 (b)(c)		425		394
5.15%, 9/15/46 (b)(c)		805		780
				15,223
Corporate Bonds (37.0%)
Finance (14.9%)
Abbey National Treasury Services PLC
3.05%, 8/23/18		490		506
ABN Amro Bank N.V.
4.25%, 2/2/17 (b)		600		622
ACE INA Holdings, Inc.
3.35%, 5/15/24		400		401
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust
3.75%, 5/15/19		380		374
Alexandria Real Estate Equities, Inc.
4.60%, 4/1/22		275		289
Ally Financial, Inc.,
3.25%, 2/13/18		10		10
4.13%, 3/30/20		500		496
American Campus Communities Operating Partnership LP
3.75%, 4/15/23		250		247
American International Group, Inc.
4.88%, 6/1/22		275		304
Banco de Credito del Peru
6.13%, 4/24/27 (b)(c)		400		414
Bank of America Corp.,
MTN
4.00%, 1/22/25		830		815
4.20%, 8/26/24		225		225
4.25%, 10/22/26		113		112
5.00%, 1/21/44		180		190
Bank of New York Mellon Corp. (The),
MTN
3.65%, 2/4/24		400		417
Barclays Bank PLC
3.75%, 5/15/24 (e)		475		481
BNP Paribas SA,
5.00%, 1/15/21		175		197
MTN
4.25%, 10/15/24 (e)		200		199

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Boston Properties LP
3.80%, 2/1/24	$	175	$	178
BPCE SA
5.15%, 7/21/24 (b)(e)		600		611
Brookfield Asset Management, Inc.
5.80%, 4/25/17		235		249
Capital One Bank, USA NA
3.38%, 2/15/23		366		357
Capital One Financial Corp.
2.45%, 4/24/19		150		150
Citigroup, Inc.,
4.45%, 9/29/27		100		100
5.50%, 9/13/25		325		354
6.68%, 9/13/43		120		147
8.13%, 7/15/39		175		252
CNOOC Finance 2013 Ltd.
3.00%, 5/9/23		540		507
Commonwealth Bank of Australia
5.00%, 3/19/20 (b)(e)		300		335
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
3.95%, 11/9/22		650		654
Credit Agricole SA,
3.88%, 4/15/24 (b)(e)		500		518
7.88%, 1/29/49 (b)(c)(f)		200		200
Credit Suisse AG
6.50%, 8/8/23 (b)		425		459
DBS Group Holdings Ltd.
2.25%, 7/16/19 (b)(e)		525		529
Discover Bank
7.00%, 4/15/20		250		290
Discover Financial Services
3.95%, 11/6/24		300		296
Five Corners Funding Trust
4.42%, 11/15/23 (b)		500		524
General Electric Capital Corp.,
MTN
5.88%, 1/14/38		235		294
Series G
6.00%, 8/7/19		694		803
Genworth Holdings, Inc.
7.20%, 2/15/21		200		201
Goldman Sachs Group, Inc. (The),
6.75%, 10/1/37		490		586
MTN
4.80%, 7/8/44		175		178
Goodman Funding Pty Ltd.
6.38%, 4/15/21 (b)		425		489
Hartford Financial Services Group, Inc. (The)
5.50%, 3/30/20		645		726
HBOS PLC,
Series G
6.75%, 5/21/18 (b)		813		898

	Face Amount (000)		Value (000)
Healthcare Trust of America Holdings LP
3.70%, 4/15/23	$	350	$	344
HSBC Finance Corp.
6.68%, 1/15/21		420		492
HSBC Holdings PLC,
4.25%, 3/14/24		200		199
6.38%, 12/29/49 (c)(f)		200		192
HSBC USA, Inc.
3.50%, 6/23/24 (e)		225		229
ING Bank N.V.
5.80%, 9/25/23 (b)		520		565
ING Groep N.V.
6.00%, 4/16/20 (c)(e)(f)		200		197
Intesa Sanpaolo SpA
5.25%, 1/12/24		410		438
Jefferies Finance LLC/JFIN Co-Issuer Corp.
7.38%, 4/1/20 (b)		380		368
JPMorgan Chase & Co.,
3.13%, 1/23/25		950		918
4.13%, 12/15/26		300		299
4.63%, 5/10/21		380		414
Liberty Mutual Group, Inc.
4.85%, 8/1/44 (b)		150		146
Lloyds Bank PLC
6.50%, 9/14/20 (b)		400		462
Macquarie Bank Ltd.
6.63%, 4/7/21 (b)		490		550
Nationwide Building Society,
3.90%, 7/21/25 (b)		200		205
6.25%, 2/25/20 (b)		645		757
PNC Financial Services Group, Inc. (The)
3.90%, 4/29/24 (e)		210		213
Principal Financial Group, Inc.
1.85%, 11/15/17		575		579
QBE Capital Funding III Ltd.
7.25%, 5/24/41 (b)(c)		550		615
Realty Income Corp.
3.25%, 10/15/22		400		391
Standard Chartered PLC
3.95%, 1/11/23 (b)		310		289
Swedbank AB
2.38%, 2/27/19 (b)		340		345
TD Ameritrade Holding Corp.
3.63%, 4/1/25		500		512
UBS Group Funding Co.
2.95%, 9/24/20 (b)		525		527
UnitedHealth Group, Inc.,
2.88%, 3/15/23 (e)		800		798
3.75%, 7/15/25		300		310
VEREIT, Inc.
3.00%, 8/1/18		525		499
WEA Finance LLC/Westfield UK & Europe Finance PLC
3.25%, 10/5/20 (b)(g)		450		455

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Wells Fargo & Co.,
4.13%, 8/15/23	$	170	$	177
Series M
3.45%, 2/13/23		320		319
				29,988
Industrials (21.0%)
21st Century Fox America, Inc.
4.75%, 9/15/44		575		568
AbbVie, Inc.
3.60%, 5/14/25		300		297
Actavis Funding SCS,
3.80%, 3/15/25		95		92
4.75%, 3/15/45		215		196
ADT Corp. (The)
3.50%, 7/15/22		500		445
Albea Beauty Holdings SA
8.38%, 11/1/19 (b)		600		633
Altria Group, Inc.
5.38%, 1/31/44		285		311
Amazon.com, Inc.
3.80%, 12/5/24		475		487
Anadarko Petroleum Corp.
6.45%, 9/15/36		250		276
Anglo American Capital PLC
3.63%, 5/14/20 (b)(e)		600		524
Anheuser-Busch InBev Finance, Inc.
3.70%, 2/1/24 (e)		475		482
Apple, Inc.,
3.85%, 5/4/43		125		114
4.45%, 5/6/44		300		299
AT&T, Inc.,
5.55%, 8/15/41		525		535
6.30%, 1/15/38		100		110
Baidu, Inc.
2.75%, 6/9/19		475		472
Barrick Gold Corp.
4.10%, 5/1/23 (e)		255		226
BAT International Finance PLC
3.50%, 6/15/22 (b)		250		257
Baxalta, Inc.
4.00%, 6/23/25 (b)		625		627
Bayer US Finance LLC
3.38%, 10/8/24 (b)		200		201
BHP Billiton Finance USA Ltd.
5.00%, 9/30/43		150		152
Biogen, Inc.
4.05%, 9/15/25		375		380
Boston Scientific Corp.
3.85%, 5/15/25		425		419
BP Capital Markets PLC,
3.25%, 5/6/22		600		604
3.51%, 3/17/25 (e)		375		371

	Face Amount (000)		Value (000)
Cardinal Health, Inc.
3.75%, 9/15/25	$	525	$	534
Caterpillar, Inc.
3.80%, 8/15/42 (e)		300		276
CBS Corp.
4.60%, 1/15/45		175		155
CCO Safari II LLC
4.91%, 7/23/25 (b)		600		598
CEVA Group PLC
7.00%, 3/1/21 (b)		370		329
CNH Industrial Capital LLC
3.25%, 2/1/17		309		305
Coca-Cola Co.
3.20%, 11/1/23		375		385
Comcast Corp.
4.60%, 8/15/45		230		236
ConAgra Foods, Inc.
4.65%, 1/25/43		300		274
DCP Midstream LLC
5.35%, 3/15/20 (b)		180		175
DCP Midstream Operating LP
3.88%, 3/15/23		375		314
Denbury Resources, Inc.
5.50%, 5/1/22		168		101
Devon Energy Corp.
4.75%, 5/15/42		125		111
DirecTV Holdings LLC/DIRECTV Financing Co., Inc.
5.15%, 3/15/42		75		71
Dollar Tree, Inc.
5.75%, 3/1/23 (b)		325		339
Eldorado Gold Corp.
6.13%, 12/15/20 (b)		380		334
EnLink Midstream Partners LP
5.60%, 4/1/44		225		205
Ensco PLC
5.75%, 10/1/44		225		156
Experian Finance PLC
2.38%, 6/15/17 (b)		635		639
Freeport-McMoRan, Inc.
3.88%, 3/15/23		170		127
General Motors Financial Co., Inc.,
4.00%, 1/15/25		225		214
4.30%, 7/13/25		325		315
4.38%, 9/25/21		400		409
Gilead Sciences, Inc.,
3.65%, 3/1/26		300		302
4.80%, 4/1/44		200		202
Glencore Funding LLC
4.13%, 5/30/23 (b)		390		307
Goldcorp, Inc.
3.70%, 3/15/23 (e)		293		273
Harley-Davidson Funding Corp.
6.80%, 6/15/18 (b)		630		713

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
HCA, Inc.
4.75%, 5/1/23	$	445	$	448
Heathrow Funding Ltd.
4.88%, 7/15/21 (b)		525		578
Hilcorp Energy I LP/Hilcorp Finance Co.
5.75%, 10/1/25 (b)		315		279
Home Depot, Inc.
5.88%, 12/16/36		400		493
HP Enterprise Co.
4.90%, 10/15/25 (b)		525		524
Illumina, Inc.
0.00%, 6/15/19 (e)		328		361
Intel Corp.,
2.70%, 12/15/22		400		393
2.95%, 12/15/35 (Convertible)		356		433
Kinder Morgan, Inc.,
4.30%, 6/1/25 (e)		650		585
5.55%, 6/1/45		300		250
Lundin Mining Corp.
7.50%, 11/1/20 (b)		352		341
LyondellBasell Industries N.V.
4.63%, 2/26/55		300		255
Mallinckrodt International Finance SA/Mallinckrodt CB LLC
5.50%, 4/15/25 (b)		500		448
MasTec, Inc.
4.88%, 3/15/23		515		427
McDonald's Corp.,
MTN
4.60%, 5/26/45		325		325
Medtronic, Inc.
4.63%, 3/15/45		325		336
Motorola Solutions, Inc.
4.00%, 9/1/24		300		271
NBC Universal Media LLC,
2.88%, 1/15/23		250		248
5.95%, 4/1/41		150		180
NetApp, Inc.
2.00%, 12/15/17		200		200
Netflix, Inc.
5.50%, 2/15/22 (b)		480		487
Noble Energy, Inc.,
3.90%, 11/15/24 (e)		225		210
5.05%, 11/15/44		200		174
NOVA Chemicals Corp.
5.25%, 8/1/23 (b)		463		450
Novartis Capital Corp.
4.40%, 5/6/44		250		270
Nuance Communications, Inc.
2.75%, 11/1/31		286		293
NVIDIA Corp.
1.00%, 12/1/18		550		726
Omnicom Group, Inc.
3.65%, 11/1/24		230		226

	Face Amount (000)		Value (000)
ON Semiconductor Corp.,
Series B
2.63%, 12/15/26	$	290	$	325
Ooredoo International Finance Ltd.
3.25%, 2/21/23 (b)		450		438
PepsiCo, Inc.
3.60%, 3/1/24		475		494
Philip Morris International, Inc.
2.50%, 8/22/22		495		484
Phillips 66 Partners LP
4.68%, 2/15/45		150		124
QUALCOMM, Inc.
4.65%, 5/20/35		425		389
Quest Diagnostics, Inc.
2.70%, 4/1/19 (e)		1,000		1,009
QVC, Inc.
4.38%, 3/15/23		400		389
Rowan Cos., Inc.
5.85%, 1/15/44 (e)		175		110
SanDisk Corp.
0.50%, 10/15/20		575		560
Shell International Finance BV
3.25%, 5/11/25		400		396
Siemens Financieringsmaatschappij N.V.
3.25%, 5/27/25 (b)(e)		450		451
SK Telecom Co., Ltd.
2.13%, 5/1/18 (b)		200		201
Spectra Energy Capital LLC
3.30%, 3/15/23		475		427
Spectrum Brands, Inc.
5.75%, 7/15/25 (b)		125		128
T-Mobile USA, Inc.
6.73%, 4/28/22		375		375
Target Corp.
4.00%, 7/1/42		150		148
Telstra Corp., Ltd.
3.13%, 4/7/25 (b)		240		234
Tiffany & Co.
4.90%, 10/1/44		100		97
Time Warner Cable, Inc.
4.50%, 9/15/42		375		298
Transocean, Inc.,
4.30%, 10/15/22 (e)		300		187
6.88%, 12/15/21 (e)		275		206
Tyco International Finance SA
3.90%, 2/14/26		350		355
Tyson Foods, Inc.
3.95%, 8/15/24		125		128
United Airlines Pass-Through Trust,
Series A
4.00%, 4/11/26		675		691
United Rentals North America, Inc.
5.75%, 11/15/24		370		356

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
United Technologies Corp.
4.50%, 6/1/42	$	165	$	168
Verizon Communications, Inc.,
3.50%, 11/1/24		350		345
4.67%, 3/15/55		775		670
5.01%, 8/21/54		283		259
Volkswagen Group of America Finance LLC
2.40%, 5/22/20 (b)(e)		525		488
Wal-Mart Stores, Inc.
5.25%, 9/1/35		290		336
Wesfarmers Ltd.
2.98%, 5/18/16 (b)		390		395
Williams Partners LP/ACMP Finance Corp.
4.88%, 5/15/23		475		440
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.
5.50%, 3/1/25 (b)(e)		430		370
Yahoo!, Inc.
0.00%, 12/1/18		550		535
Yum! Brands, Inc.
3.88%, 11/1/20 (e)		700		734
ZF North America Capital, Inc.
4.50%, 4/29/22 (b)		475		451
Zimmer Biomet Holdings, Inc.
5.75%, 11/30/39		220		242
				42,121
Utilities (1.1%)
CEZ AS
4.25%, 4/3/22 (b)		210		222
Delmarva Power & Light Co.
4.00%, 6/1/42		475		463
Exelon Generation Co., LLC
6.25%, 10/1/39		445		474
Jersey Central Power & Light Co.
4.70%, 4/1/24 (b)(e)		700		734
PPL WEM Ltd./Western Power Distribution Ltd.
3.90%, 5/1/16 (b)		375		380
				2,273
				74,382
Mortgages — Other (9.0%)
Banc of America Alternative Loan Trust,
0.84%, 7/25/46 (c)		382		260
5.50%, 10/25/35		1,700		1,583
5.86%, 10/25/36		829		526
6.00%, 4/25/36		306		316
ChaseFlex Trust,
6.00%, 2/25/37		1,215		1,046
Fannie Mae Connecticut Avenue Securities,
4.19%, 5/25/25 (c)		671		640
5.09%, 11/25/24 (c)		698		701
5.19%, 7/25/25 (c)		500		499
First Horizon Alternative Mortgage Securities Trust,
6.25%, 8/25/36		677		542

	Face Amount (000)		Value (000)
Freddie Mac Structured Agency Credit Risk Debt Notes,
3.49%, 10/25/27 (c)	$	400	$	379
3.94%, 9/25/24 (c)		352		331
4.19%, 8/25/24 (c)		312		305
4.44%, 11/25/23 (c)		700		700
4.74%, 10/25/24 (c)		948		950
Freddie Mac Whole Loan Securities Trust,
3.50%, 5/25/45		568		576
3.88%, 5/25/45 (b)(c)		249		214
4.00%, 5/25/45		224		232
Grifonas Finance PLC,
0.32%, 8/28/39 (c)	EUR	490		392
GSMSC Pass-Through Trust,
7.50%, 9/25/36 (b)(c)	$	1,042		851
HarborView Mortgage Loan Trust,
0.41%, 1/19/38 (c)		306		261
Impac CMB Trust,
0.93%, 4/25/35 (c)		318		239
JP Morgan Mortgage Trust,
2.74%, 6/25/37 (c)		291		269
6.00%, 6/25/37		250		243
Lehman Mortgage Trust,
5.50%, 11/25/35 - 2/25/36		1,401		1,353
6.50%, 9/25/37		1,586		1,295
RALI Trust,
0.38%, 12/25/36 (c)		880		687
5.50%, 12/25/34		1,054		1,057
6.00%, 11/25/36		373		308
Springleaf Mortgage Loan Trust,
3.56%, 12/25/59 (b)(c)		860		863
Washington Mutual Mortgage Pass-Through Certificates Trust,
0.97%, 4/25/47 (c)		681		519
				18,137
Municipal Bonds (1.2%)
City of Chicago, IL,
O'Hare International Airport Revenue
6.40%, 1/1/40		255		316
City of New York, NY,
Series G-1
5.97%, 3/1/36		270		333
Illinois State Toll Highway Authority,
Highway Revenue, Build America Bonds
6.18%, 1/1/34		477		593
Municipal Electric Authority of Georgia,
6.64%, 4/1/57		283		333
6.66%, 4/1/57		320		376
New York City, NY,
Transitional Finance Authority Future Tax Secured Revenue
5.27%, 5/1/27		320		372
				2,323
Sovereign (7.7%)
Brazilian Government International Bond,
5.00%, 1/27/45		244		184
5.63%, 1/7/41 (e)		132		108

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

	Face Amount (000)		Value (000)
Sovereign (cont'd)
EUROFIMA,
MTN
6.25%, 12/28/18	AUD	1,190	$	933
Hungary Government Bond,
5.50%, 6/24/25	HUF	157,200		662
Italy Buoni Poliennali Del Tesoro,
2.35%, 9/15/24 (b)	EUR	1,799		2,275
Mexican Bonos,
10.00%, 12/5/24	MXN	21,000		1,585
Mexico Government International Bond,
3.63%, 3/15/22	$	868		878
New Zealand Government Bond,
5.50%, 4/15/23	NZD	2,000		1,496
Pertamina Persero PT,
4.88%, 5/3/22	$	1,725		1,645
Petroleos de Venezuela SA,
6.00%, 11/15/26		550		177
Petroleos Mexicanos,
6.38%, 1/23/45		400		361
Philippine Government International Bond,
6.38%, 10/23/34		450		590
Portugal Obrigacoes do Tesouro OT,
3.88%, 2/15/30 (b)	EUR	1,040		1,295
Romania Government Bond,
4.75%, 2/24/25	RON	4,795		1,323
South Africa Government Bond,
8.00%, 1/31/30	ZAR	17,530		1,179
Spain Government Inflation Linked Bond,
1.00%, 11/30/30 (b)	EUR	668		715
				15,406
U.S. Agency Securities (1.7%)
Federal Home Loan Mortgage Corporation,
3.75%, 3/27/19	$	2,520		2,744
6.75%, 3/15/31		470		688
				3,432
U.S. Treasury Securities (7.5%)
U.S. Treasury Bond
2.75%, 11/15/42		1,100		1,071
U.S. Treasury Inflation Indexed Bond
0.25%, 1/15/25		7,889		7,569
U.S. Treasury Note
1.50%, 5/31/19		6,300		6,385
				15,025
Total Fixed Income Securities (Cost $201,867)				200,568
	Shares
Short-Term Investments (13.7%)
Securities held as Collateral on Loaned Securities (2.8%)
Investment Company (2.5%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		4,951,914		4,952

	Face Amount (000)		Value (000)
Repurchase Agreements (0.3%)
Barclays Capital, Inc., (0.10%, dated 9/30/15, due 10/1/15; proceeds $415; fully collateralized by a U.S. Government obligation; 3.13% due 8/15/44; valued at $423)	$	415	$	415
BNP Paribas Securities Corp., (0.09%, dated 9/30/15, due 10/1/15; proceeds $296; fully collateralized by various U.S. Government agency securities; 0.00% - 7.25% due 11/5/15 - 10/11/33 and U.S. Government obligations; 0.00% - 1.88% due 10/15/15 - 9/30/17; valued at $302)		296		296
				711
Total Securities held as Collateral on Loaned Securities (Cost $5,663)				5,663
	Shares
Investment Company (10.2%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $20,498)		20,497,740		20,498
U.S. Treasury Security (0.7%)
U.S. Treasury Bill
0.26%, 3/10/16 (h)(i) (Cost $1,486)		1,488		1,488
Total Short-Term Investments (Cost $27,647)				27,649
Total Investments (113.5%) (Cost $229,514) Including $10,398 of Securities Loaned (j)(k)				228,217
Liabilities in Excess of Other Assets (-13.5%)				(27,225	)
Net Assets (100.0%)			$	200,992

(a) Security is subject to delayed delivery.

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

(c) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on September 30, 2015.

(d) Inverse Floating Rate Security — Interest rate fluctuates with an inverse relationship to an associated interest rate. Indicated rate is the effective rate at September 30, 2015.

(e) All or a portion of this security was on loan at September 30, 2015.

(f) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of September 30, 2015.

(g) When-issued security.

(h) Rate shown is the yield to maturity at September 30, 2015.

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

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

(k) At September 30, 2015, the aggregate cost for Federal income tax purposes is approximately $229,609,000. The aggregate gross unrealized appreciation is approximately $4,999,000 and the aggregate gross unrealized depreciation is approximately $6,391,000 resulting in net unrealized depreciation of approximately $1,392,000.

@ Value is less than $500.

IO Interest Only.

MTN Medium Term Note.

PAC Planned Amortization Class.

REMIC Real Estate Mortgage Investment Conduit.

STRIPS Separate Trading of Registered Interest and Principal of Securities.

TBA To Be Announced.

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at September 30, 2015:

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
Citibank NA	EUR	4,703	$	5,256	10/5/15	USD	5,297	$	5,297	$	41
Citibank NA	USD	6		6	10/5/15	NOK	53		6		(—	@)
Deutsche Bank AG	MXN	27,346		1,618	10/5/15	USD	1,617		1,617		(1	)
Deutsche Bank AG	PLN	14		4	10/5/15	USD	4		4		—	@
HSBC Bank PLC	NZD	2,305		1,474	10/5/15	USD	1,458		1,458		(16	)
JPMorgan Chase Bank NA	HUF	184,606		658	10/5/15	USD	660		660		2
JPMorgan Chase Bank NA	SEK	15		2	10/5/15	USD	2		2		(—	@)
UBS AG	CAD	6		4	10/5/15	USD	4		4		—	@
UBS AG	RON	2,582		653	10/5/15	USD	656		656		3
UBS AG	RON	2,739		693	10/5/15	USD	695		695		2
UBS AG	TRY	60		20	10/5/15	USD	20		20		—	@
UBS AG	USD	2		2	10/5/15	BRL	7		2		(—	@)
UBS AG	USD	727		727	10/5/15	EUR	642		717		(10	)
UBS AG	USD	9		9	10/5/15	JPY	1,109		9		(—	@)
UBS AG	ZAR	16,829		1,213	10/5/15	USD	1,248		1,248		35
JPMorgan Chase Bank NA	AUD	1,325		929	10/6/15	USD	933		933		4
			$	13,268				$	13,328	$	60

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2015:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		18	$	3,943		Dec-15	$	13
U.S. Treasury 5 yr. Note		123		14,823		Dec-15		81
U.S. Treasury Long Bond		36		5,664		Dec-15		102
U.S. Treasury Ultra Long Bond		41		6,577		Dec-15		84
Short:
U.S. Treasury 10 yr. Note		216		(27,807	)	Dec-15		(359	)
							$	(79	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 2015:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Appreciation (Depreciation) (000)			Value (000)			Credit Rating of Reference Obligation† (unaudited)
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	995		1.00	%	3/20/19	$	19		$	(36	)	$	(17	)	BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		950		1.00		12/20/18		(16	)		1			(15	)	BBB
Deutsche Bank AG CMBX.NA.BB.60	Sell		515		5.00		5/11/63		3			(21	)		(18	)	NR
Morgan Stanley & Co., LLC* CDX.NA.IG.24	Buy		2,975		1.00		6/20/20		(56	)		41			(15	)	NR
		$	5,435					$	(50	)	$	(15	)	$	(65	)

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Core Plus Fixed Income Portfolio

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at September 30, 2015:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Depreciation (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.73	%	3/9/20	$	8,500	$	(168	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.49		6/9/25		3,550		(185	)
									$	(353	)

@ Value is less than $500.

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

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

LIBOR London Interbank Offered Rate.

NR Not rated.

AUD — Australian Dollar

BRL — Brazilian Real

CAD — Canadian Dollar

EUR — Euro

HUF — Hungarian Forint

JPY — Japanese Yen

MXN — Mexican Peso

NOK — Norwegian Krone

NZD — New Zealand Dollar

PLN — Polish Zloty

RON — Romanian New Leu

SEK — Swedish Krona

TRY — Turkish Lira

USD — United States Dollar

ZAR — South African Rand

Portfolio Composition**

Classification	Percentage of Total Investments
Industrials		18.9	%
Agency Fixed Rate Mortgages		18.2
Finance		13.5
Other***		10.9
Short-Term Investments		9.9
Mortgages — Other		8.1
Sovereign		6.9
Commercial Mortgage-Backed Securities		6.8
U.S. Treasury Securities		6.8
Total Investments		100.0	%****

** Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2015.

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

**** Does not include open long/short futures contracts with an underlying face amount of approximately $58,814,000 with net unrealized depreciation of approximately $79,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $60,000 and does not include open swap agreements with net unrealized depreciation of approximately $368,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities	September 30, 2015 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $204,064)	$	202,767
Investment in Security of Affiliated Issuer, at Value (Cost $25,450)		25,450
Total Investments in Securities, at Value (Cost $229,514)		228,217
Cash		382
Receivable for Investments Sold		23,379
Interest Receivable		1,487
Receivable for Portfolio Shares Sold		198
Receivable for Variation Margin on Futures Contracts		127
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		87
Premium Paid on Open Swap Agreements		22
Receivable for Variation Margin on Swap Agreements		9
Tax Reclaim Receivable		7
Receivable from Affiliate		3
Unrealized Appreciation on Swap Agreements		1
Other Assets		58
Total Assets		253,977
Liabilities:
Payable for Investments Purchased		46,437
Collateral on Securities Loaned, at Value		6,045
Payable for Trustees' Fees and Expenses		138
Payable for Portfolio Shares Redeemed		73
Unrealized Depreciation on Swap Agreements		57
Payable for Advisory Fees		56
Payable for Sub Transfer Agency Fees — Class I		34
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Sub Transfer Agency Fees — Class C		—	@
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		27
Payable for Professional Fees		26
Payable for Custodian Fees		17
Premium Received on Open Swap Agreements		16
Payable for Administration Fees		13
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Shareholder Services Fees — Class A		1
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		41
Total Liabilities		52,985
Net Assets	$	200,992
Net Assets Consist Of:
Paid-in-Capital	$	659,198
Accumulated Undistributed Net Investment Income		4,482
Accumulated Net Realized Loss		(461,003	)
Unrealized Appreciation (Depreciation) on:
Investments		(1,297	)
Futures Contracts		(79	)
Swap Agreements		(368	)
Foreign Currency Forward Exchange Contracts		60
Foreign Currency Translations		(1	)
Net Assets	$	200,992

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Core Plus Fixed Income Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2015 (000)
CLASS I:
Net Assets	$	197,057
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		19,366,405
Net Asset Value, Offering and Redemption Price Per Share	$	10.18
CLASS A:
Net Assets	$	3,553
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		348,656
Net Asset Value, Redemption Price Per Share	$	10.19
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.45
Maximum Offering Price Per Share	$	10.64
CLASS L:
Net Assets	$	333
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		32,724
Net Asset Value, Offering and Redemption Price Per Share	$	10.18
CLASS C:
Net Assets	$	49
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,871
Net Asset Value, Offering and Redemption Price Per Share	$	10.16
⁽¹⁾ Including: Securities on Loan, at Value:	$	10,398

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Core Plus Fixed Income Portfolio

Statement of Operations	Year Ended September 30, 2015 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	7,667
Dividends from Security of Affiliated Issuer (Note G)		37
Income from Securities Loaned — Net		30
Total Investment Income		7,734
Expenses:
Advisory Fees (Note B)		774
Sub Transfer Agency Fees — Class I		178
Sub Transfer Agency Fees — Class A		4
Sub Transfer Agency Fees — Class L		—	@
Sub Transfer Agency Fees — Class C		1
Administration Fees (Note C)		165
Professional Fees		120
Custodian Fees (Note F)		93
Pricing Fees		51
Registration Fees		48
Shareholder Reporting Fees		29
Transfer Agency Fees — Class I (Note E)		6
Transfer Agency Fees — Class A (Note E)		3
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Shareholder Services Fees — Class A (Note D)		9
Distribution and Shareholder Services Fees — Class L (Note D)		2
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Trustees' Fees and Expenses		6
Other Expenses		37
Total Expenses		1,529
Waiver of Advisory Fees (Note B)		(246	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(185	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(3	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(30	)
Net Expenses		1,062
Net Investment Income		6,672
Realized Gain (Loss):
Investments Sold		1,904
Foreign Currency Forward Exchange Contracts		2,030
Foreign Currency Transactions		(65	)
Futures Contracts		252
Swap Agreements		(1,172	)
Net Realized Gain		2,949
Change in Unrealized Appreciation (Depreciation):
Investments		(6,048	)
Foreign Currency Forward Exchange Contracts		(478	)
Foreign Currency Translations		3
Futures Contracts		(138	)
Swap Agreements		(631	)
Net Change in Unrealized Appreciation (Depreciation)		(7,292	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(4,343	)
Net Increase in Net Assets Resulting from Operations	$	2,329

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Core Plus Fixed Income Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2015 (000)			Year Ended September 30, 2014 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	6,672		$	5,768
Net Realized Gain		2,949			4,661
Net Change in Unrealized Appreciation (Depreciation)		(7,292	)		3,809
Net Increase in Net Assets Resulting from Operations		2,329			14,238
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(6,016	)		(5,745	)
Class A:
Net Investment Income		(96	)		(93	)
Class L:
Net Investment Income		(7	)		(2	)
Class C:
Net Investment Income		(—	@)*		—
Total Distributions		(6,119	)		(5,840	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		41,541			23,107
Distributions Reinvested		6,008			5,736
Redeemed		(39,648	)		(31,232	)
Class A:
Subscribed		2,479			1,471
Distributions Reinvested		96			93
Redeemed		(1,892	)		(1,926	)
Class L:
Subscribed		225			14
Distributions Reinvested		6			2
Class C:
Subscribed		50	*		—
Distributions Reinvested		—	@*		—
Redeemed		(—	@)*		—
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		8,865			(2,735	)
Total Increase in Net Assets		5,075			5,663
Net Assets:
Beginning of Period		195,917			190,254
End of Period (Including Accumulated Undistributed Net Investment Income of $4,482 and $3,137)	$	200,992		$	195,917
(1) Capital Share Transactions:
Class I:
Shares Subscribed		4,007			2,271
Shares Issued on Distributions Reinvested		583			574
Shares Redeemed		(3,848	)		(3,088	)
Net Increase (Decrease) in Class I Shares Outstanding		742			(243	)
Class A:
Shares Subscribed		239			146
Shares Issued on Distributions Reinvested		9			9
Shares Redeemed		(183	)		(188	)
Net Increase (Decrease) in Class A Shares Outstanding		65			(33	)
Class L:
Shares Subscribed		21			1
Shares Issued on Distributions Reinvested		1			—	@@
Net Increase in Class L Shares Outstanding		22			1
Class C:
Shares Subscribed		5	*		—
Shares Issued on Distributions Reinvested		—	@@*		—
Shares Redeemed		(—	@@)*		—
Net Increase in Class C Shares Outstanding		5			—

* For the period April 30, 2015 through September 30, 2015.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Core Plus Fixed Income Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	10.36		$	9.91		$	10.48		$	9.92		$	9.96
Income (Loss) from Investment Operations:
Net Investment Income†		0.33			0.31			0.32			0.39			0.38
Net Realized and Unrealized Gain (Loss)		(0.20	)		0.45			(0.36	)		0.63			(0.02	)
Total from Investment Operations		0.13			0.76			(0.04	)		1.02			0.36
Distributions from and/or in Excess of:
Net Investment Income		(0.31	)		(0.31	)		(0.53	)		(0.46	)		(0.40	)
Net Asset Value, End of Period	$	10.18		$	10.36		$	9.91		$	10.48		$	9.92
Total Return++		1.15	%		7.82	%		(0.42	)%		10.62	%		3.74	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	197,057		$	192,868		$	187,014		$	227,331		$	295,226
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.51	%+^^		0.61	%+		0.71	%+^		0.62	%+		0.66	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		3.24	%+^^		3.02	%+		3.14	%+^		3.88	%+		3.88	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%§
Portfolio Turnover Rate		348	%		296	%		226	%		189	%		225	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.73	%		0.81	%		0.73	%		N/A			N/A
Net Investment Income to Average Net Assets		3.02	%		2.82	%		3.12	%		N/A			N/A

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

^^ Effective October 6, 2014, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.52% for Class I shares. Prior to October 6, 2014, the maximum ratio was 0.62% for Class I shares.

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.62% for Class I shares.

§ Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Core Plus Fixed Income Portfolio

	Class A
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	10.37		$	9.93		$	10.50		$	9.94		$	9.97
Income (Loss) from Investment Operations:
Net Investment Income†		0.30			0.27			0.29			0.37			0.36
Net Realized and Unrealized Gain (Loss)		(0.21	)		0.45			(0.36	)		0.62			(0.02	)
Total from Investment Operations		0.09			0.72			(0.07	)		0.99			0.34
Distributions from and/or in Excess of:
Net Investment Income		(0.27	)		(0.28	)		(0.50	)		(0.43	)		(0.37	)
Net Asset Value, End of Period	$	10.19		$	10.37		$	9.93		$	10.50		$	9.94
Total Return++		0.90	%		7.35	%		(0.68	)%		10.31	%		3.57	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	3,553		$	2,941		$	3,152		$	3,673		$	4,654
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.86	%+^^		0.96	%+		0.96	%+^		0.87	%+		0.91	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.87	%+^^		2.67	%+		2.89	%+^		3.63	%+		3.63	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.01	%		0.01	%		0.01	%		0.00	%§
Portfolio Turnover Rate		348	%		296	%		226	%		189	%		225	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.07	%		1.11	%		0.98	%		N/A			N/A
Net Investment Income to Average Net Assets		2.66	%		2.52	%		2.87	%		N/A			N/A

† Per share amount is based on average shares outstanding.

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

^^ Effective October 6, 2014, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.87% for Class A shares. Prior to October 6, 2014, the maximum ratio was 0.97% for Class A shares.

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.97% for Class A shares.

§ Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Core Plus Fixed Income Portfolio

	Class L
	Year Ended September 30,									Period from April 27, 2012^ to
Selected Per Share Data and Ratios	2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	10.37		$	9.92		$	10.49		$	10.14
Income (Loss) from Investment Operations:
Net Investment Income†		0.27			0.25			0.27			0.11
Net Realized and Unrealized Gain (Loss)		(0.21	)		0.45			(0.36	)		0.35
Total from Investment Operations		0.06			0.70			(0.09	)		0.46
Distributions from and/or in Excess of:
Net Investment Income		(0.25	)		(0.25	)		(0.48	)		(0.11	)
Net Asset Value, End of Period	$	10.18		$	10.37		$	9.92		$	10.49
Total Return++		0.59	%		7.19	%		(0.95	)%		4.59	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	333		$	108		$	88		$	130
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.11	%+^^^		1.21	%+		1.21	%+^^		1.16	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.65	%+^^^		2.42	%+		2.64	%+^^		2.60	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%		0.01	%		0.01	%		0.01	%*
Portfolio Turnover Rate		348	%		296	%		226	%		189	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.76	%		3.10	%		1.27	%		N/A
Net Investment Income to Average Net Assets		2.00	%		0.53	%		2.58	%		N/A

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

^^^ Effective October 6, 2014, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.12% for Class L shares. Prior to October 6, 2014, the maximum ratio was 1.22% for Class L shares.

^^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.22% for Class L shares.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Core Plus Fixed Income Portfolio

	Class C
Selected Per Share Data and Ratios	Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.44
Income (Loss) from Investment Operations:
Net Investment Income†		0.10
Net Realized and Unrealized Loss		(0.31	)
Total from Investment Operations		(0.21	)
Distributions from and/or in Excess of:
Net Investment Income		(0.07	)
Net Asset Value, End of Period	$	10.16
Total Return++		(2.02	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	49
Ratios of Expenses to Average Net Assets ⁽¹⁾		1.61	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.23	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*
Portfolio Turnover Rate		348	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		14.06	%*
Net Investment Loss to Average Net Assets		(10.22	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements

Morgan Stanley Institutional Fund Trust ("MSIFT" or the "Fund'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Fund is comprised of nine separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). The Fund applies investment company accounting and reporting guidance. All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Core Plus Fixed Income Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers four classes of shares — Class I, Class A, Class L and Class C.

On April 30, 2015, the Portfolio commenced offering Class C shares.

times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (7) short-term taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

investments. The inputs are summarized in the three broad levels listed below.

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

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

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 2015.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgage	$	—	$	1,018	$	—	$	1,018
Agency Fixed Rate Mortgages		—		40,508		—		40,508
Asset-Backed Securities		—		9,452		—		9,452
Collateralized Mortgage Obligations — Agency Collateral Series		—		5,662		—		5,662
Commercial Mortgage-Backed Securities		—		15,223		—		15,223
Corporate Bonds		—		74,382		—		74,382
Mortgages — Other		—		18,137		—		18,137
Municipal Bonds		—		2,323		—		2,323
Sovereign		—		15,406		—		15,406

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Fixed Income Securities (cont'd)
U.S. Agency Securities	$	—		$	3,432		$	—	$	3,432
U.S. Treasury Securities		—			15,025			—		15,025
Total Fixed Income Securities		—			200,568			—		200,568
Short-Term Investments
Investment Company		25,450			—			—		25,450
Repurchase Agreements		—			711			—		711
U.S Treasury Security		—			1,488			—		1,488
Total Short-Term Investments		25,450			2,199			—		27,649
Foreign Currency Forward Exchange Contracts		—			87			—		87
Futures Contracts		280			—			—		280
Credit Default Swap Agreements		—			42			—		42
Total Assets		25,730			202,896			—		228,626
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(27	)		—		(27	)
Futures Contract		(359	)		—			—		(359	)
Credit Default Swap Agreements		—			(57	)		—		(57	)
Interest Rate Swap Agreements		—			(353	)		—		(353	)
Total Liabilities		(359	)		(437	)		—		(796	)
Total	$	25,371		$	202,459		$	—	$	227,830

when received, will be added to the account to maintain full collateralization. In the event of default on the obligation to repurchase, the Portfolio has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization of the collateral proceeds may be subject to cost and delays. The Portfolio, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into repurchase agreements.

4. Foreign Currency Translation and Foreign Investments: The books and records of the Portfolio are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

– investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

– investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Although the net assets of the Portfolio are presented at the foreign exchange rates and market values at the close of the period, the Portfolio does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at period end. Similarly, the Portfolio does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities sold during the period. Accordingly, realized and unrealized foreign currency gains (losses) on investments in securities are included in the reported net realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S. Federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. Federal income tax purposes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

investment income and foreign withholding taxes recorded on the Portfolio's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations on foreign currency translations for the period is reflected in the Statement of Operations.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, fluctuations of exchange rates in relation to the U.S. dollar, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

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

to changes in the market value of the securities, instruments, indices or interest rates to which the derivative instrument relates, risks that the transactions may not be liquid and risks arising from margin requirements. The use of derivatives involves risks that are different from, and possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Portfolio's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Portfolio's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with which the Portfolio has open positions in the futures contract.

Swaps: The Portfolio may enter into over-the-counter ("OTC") swap contracts or cleared swap transactions. A swap contract is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other instruments. Typically swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Portfolio's obligations or rights under a swap contract entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Portfolio's ultimate counterparty is a clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and

related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

When the Portfolio has an unrealized loss on a swap agreement, the Portfolio has instructed the custodian to pledge cash or liquid securities as collateral with a value approximately equal to the amount of the unrealized loss. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate. If applicable, cash collateral is included with "Due from (to) Broker" in the Statement of Assets and Liabilities.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability, respectively, in the Statement of Assets and Liabilities.

of the contract. Currency contracts may be used to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. In addition, the Portfolio may use cross currency hedging or proxy hedging with respect to currencies in which the Portfolio has or expects to have portfolio or currency exposure. Cross currency hedges involve the sale of one currency against the positive exposure to a different currency and may be used for hedging purposes or to establish an active exposure to the exchange rate between any two currencies. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it matures. Furthermore, such transactions may reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is additional risk to the extent that currency contracts create exposure to currencies in which the Portfolio's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Portfolio than if it had not entered into such contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Portfolio as unrealized gain or loss. The Portfolio records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2015.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contracts

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

280

(a)

Swap Agreement

Unrealized Appreciation on
Swap Agreement

Credit Risk

Swap Agreement

Variation Margin on
Swap Agreement

Credit Risk

(a)

Total

409

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contracts

Unrealized Depreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

(27

)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(359

)(a)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Credit Risk

(57

)

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

(353

)(a)

Total

(796

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	2,030
Interest Rate Risk	Futures Contracts		252
Credit Risk	Swap Agreements		(41	)
Interest Rate Risk	Swap Agreements		(1,131	)
	Total	$	1,110
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(478	)
Interest Rate Risk	Futures Contracts		(138	)
Credit Risk	Swap Agreements		(26	)
Interest Rate Risk	Swap Agreements		(605	)
	Total	$	(1,247	)

At September 30, 2015, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	87	$	(27	)
Swap Agreements		1		(57	)
Total	$	88	$	(84	)

(b) Excludes exchange traded derivatives.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	1		$	(1	)	$	—	$	0
Citibank NA		41			(—	@)		—		41
Deutsche Bank AG		—	@		(—	@)		—		0
JPMorgan Chase Bank NA		6			(—	@)		—		6
UBS AG		40			(10	)		—		30
Total	$	88		$	(11	)	$	—	$	77
Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	36		$	(1	)	$	—	$	35
Citibank NA		—	@		(—	@)		—		0
Deutsche Bank AG		22			(—	@)		—		22
HSBC Bank PLC		16			—			—		16
JPMorgan Chase Bank NA		—	@		(—	@)		—		0
UBS AG		10			(10	)		—		0
Total	$	84		$	(11	)	$	—	$	73

@ Amount is less than $500.

For the year ended September 30, 2015, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	21,119,000
Futures Contracts:
Average monthly original value	$	142,944,000
Swap Agreements:
Average monthly notional amount	$	75,223,000

6. Securities Lending: The Portfolio lends securities to qualified financial institutions, such as broker-dealers, to earn additional income. Any increase or decrease in the fair value of the securities loaned that might occur and any interest earned or dividends declared on those securities during the term of the loan would remain in the Portfolio. The Portfolio would receive cash or securities as collateral in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily by State Street Bank and Trust Company

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

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Portfolio's Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

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

The following table presents securities on loan that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	10,398	(d)	$	—	$	(10,398	)(e)(f)	$	0

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

(e) The Portfolio received cash collateral of approximately $6,045,000, of which approximately $5,663,000 was subsequently invested in a Repurchase Agreement and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of September 30, 2015, there was uninvested cash of approximately $382,000, which is not reflected in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $4,545,000 in the form of U.S. Government agency securities and U.S. Government obligations, which the Portfolio cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

(f) The actual collateral received is greater than the amount shown here due to overcollateralization.

7. When-Issued/Delayed Delivery Securities: The Portfolio purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the Portfolio on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place a month or more after the date of the transaction. When the Portfolio enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

in an amount at least equal in value to the Portfolio's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower than the agreed upon purchase price, in which case there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Portfolio.

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

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

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

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

First $1 billion				Over $1 billion
	0.375	%			0.300	%

For the year ended September 30, 2015, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.24% of the Portfolio's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.62% for Class I shares, 0.97% for Class A shares, 1.22% for Class L shares. Effective October 6, 2014, the Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses will not exceed 0.52% for Class I shares, 0.87% for Class A shares, 1.12% for Class L shares and 1.62% for Class C shares (effective April 30, 2015). The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended September 30, 2015, approximately $246,000 of advisory fees were waived and approximately $191,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class A shares.

respectively. For the year ended September 30, 2015, purchases and sales of long-term U.S. Government securities were approximately $630,854,000 and $647,574,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the year ended September 30, 2015, advisory fees paid were reduced by approximately $30,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the year ended September 30, 2015 is as follows:

Value September 30, 2014 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	35,341			$	76,549			$	86,440			$	37			$	25,450

The Portfolio may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued based on net investment income, net realized gains and net unrealized appreciation as such income and/or gains are earned. Taxes may also be based on transactions in foreign currency and are accrued based on the value of investments denominated in such currency.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

2015 Distributions Paid From: Ordinary Income (000)				2014 Distributions Paid From: Ordinary Income (000)
$	6,119			$	5,840

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, basis adjustments for swap transactions, paydown adjustments and an expired capital loss carryforward, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in-Capital (000)
$	792			$	12,997			$	(13,789	)

At September 30, 2015, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	4,616			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	5,336	September 30, 2016
	254,264	September 30, 2017
	201,462	September 30, 2018

Capital loss carryforwards of approximately $13,785,000 expired during the year ended September 30, 2015.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Core Plus Fixed Income Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Core Plus Fixed Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Core Plus Fixed Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 25, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2014, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. The Board noted that the Portfolio's management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; and (ii) management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

The Board considered the size and growth prospects of the Portfolio and how that relates to the Portfolio's total expense ratio and particularly the Portfolio's management fee rate, which includes a breakpoint. In conjunction with its review of the Adviser's profitability, the Board discussed with the Adviser how a change in assets can affect the efficiency or effectiveness of managing the Portfolio and whether the management fee level is appropriate relative to current and projected asset levels and/or whether the management fee structure reflects economies of scale as asset levels change. The Board has determined that its review of the actual and/or potential economies of scale of the Portfolio supports its decision to approve the Management Agreement.

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

WE RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

• We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

• We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

4. HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

5. HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

6. HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.m. (EST)

• Writing to us at the following address:

Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

7. WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (70)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Kathleen A. Dennis (62)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various nonprofit organizations.

Nancy C. Everett (60)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Jakki L. Haussler (58)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Dr. Manuel H. Johnson (66)
c/o Johnson Smick International, Inc.
220 I Street, N.E. —
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

Director of NVR, Inc. (home construction).

Joseph J. Kearns (73)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Michael F. Klein (56)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (79)
522 Fifth Avenue
New York, NY 10036

Chair of the
Board and
Trustee

Chair of the
Boards since
July 2006 and
Trustee since
July 1991

None.

W. Allen Reed (68)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (83)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

Formerly, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc. (1987-December 2012).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Positions(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (67)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (52)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (48)
522 Fifth Avenue
New York, NY 10036

Chief
Compliance
Officer

Since
December
1997

Joseph C. Benedetti (50)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (50)
522 Fifth Avenue
New York, NY 10036

Treasurer and
Principal
Financial
Officer

Treasurer
since July
2003 and
Principal
Financial
Officer since
September
2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (48)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves a one-year term, until his or her successor is elected and has qualified.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

(This Page has been left blank intentionally.)

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

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

IFTCPFIANN
1333153 EXP 11.30.16

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Strategist Portfolio

Annual Report

September 30, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Overview					4
Portfolio of Investments					7
Statement of Assets and Liabilities					32
Statement of Operations					34
Statements of Changes in Net Assets					35
Financial Highlights					37
Notes to Financial Statements					42
Report of Independent Registered Public Accounting Firm					55
Investment Advisory Agreement Approval					56
Federal Tax Notice					58
U.S. Privacy Policy					59
Trustee and Officer Information					62

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Global Strategist Portfolio (the "Portfolio") performed during the latest twelve-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

October 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Expense Example (unaudited)

Global Strategist Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2015 and held for the entire six-month period (unless otherwise instructed).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/15		Actual Ending Account Value 9/30/15		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period****
Global Strategist Portfolio Class I	$	1,000.00	$	917.00	$	1,021.41	$	3.51	*	$	3.70	*		0.73	%
Global Strategist Portfolio Class A		1,000.00		916.00		1,019.65		5.19	*		5.47	*		1.08
Global Strategist Portfolio Class L		1,000.00		913.20		1,017.15		7.58	*		7.99	*		1.58
Global Strategist Portfolio Class C		1,000.00		898.90		1,013.29		7.28	**		7.72	**		1.83
Global Strategist Portfolio Class IS		1,000.00		913.00		1,014.34		2.27	***		2.39	***		0.71

*** Expenses are calculated using the Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 122/365 (to reflect the actual days of the period).

**** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited)

Global Strategist Portfolio

The Global Strategist Portfolio seeks above-average total return over a market cycle of three to five years.

Performance

For the fiscal year ended September 30, 2015, the Portfolio's Class I Shares had a total return based on net asset value and reinvestment of distributions per share of –8.87%, net of fees. The Portfolio's Class I shares underperformed against the Portfolio's benchmarks, the MSCI All Country World Index, which returned –6.66%, and the Customized MSIM Global Allocation Index (the "Customized Index", which is comprised of 60% MSCI All Country World Index, 30% Barclays Global Aggregate Bond Index, 5% S&P GSCI Light Energy Index, and 5% Bank of America/Merrill Lynch U.S. Dollar 1-Month LIBID Average Index), which returned –6.42%.

Factors Affecting Performance⁽ⁱ⁾

• In the 12 months ended September 30, 2015, global equities underperformed bonds and outperformed commodities, with the MSCI All Country World Index down –6.7%, the Barclays Global Aggregate Bond Index down –3.3%, and the S&P GSCI Index, a broad index of commodity prices, falling –41.7%.⁽ⁱⁱ⁾ (Except where noted, equity market returns are represented by the MSCI regional or country index and are calculated in U.S. dollars.)

• Within equities, the U.S. held up on a relative basis, with the S&P 500 Index falling only –0.6% for the period, as the labor market continued to show signs of improvement while monetary policy remained easy. Despite the European Central Bank's (ECB) expanded asset purchase program, European equities underperformed global markets, losing –11.6% as disappointing economic data, a debt crisis in Greece and fears of a global growth slowdown led to a 'risk off' sentiment. Europe also tends to have a higher beta in a market selloff. Emerging markets lost –21.2% on fears of a hard landing in China and its impact on the broader region. In April, Chinese equities were up by more than 37% for the period due to speculation on further policy easing, but these gains were fully reversed and China ended the period down –7.3%. Falling commodity prices, tensions surrounding Russia and a recession in Brazil also damaged sentiment for emerging market assets. Japanese equities were down –3.8%. Despite initial optimism, Japan appeared to enter a

technical recession during the third quarter of 2015, and S&P downgraded its sovereign credit rating, citing disappointment with the effectiveness of the economic stimulus plan ('Abenomics').

• Within bonds, the yield curve flattened as the normalization of U.S. monetary policy became imminent, while the pace and moderation of rate hikes were re-priced to be more subdued as the global growth outlook softened. The U.S. 2-year Treasury yield rose 6 basis points to 0.63%, and the U.S. 10-year Treasury yield fell 45 basis points to 2.04%. U.S. investment grade spreads rose 57 basis points to 1.7%, and high yield spreads rose 206 basis points to 6.3%, as weakness in China and the global energy sector led a flight to safe haven assets. Emerging market bond spreads widened by 140 basis points. In Europe, German bund yields reached all-time lows, with even the 5-year yield moving into negative territory, as the ECB commenced its quantitative easing program in March. Greek bond spreads spiked as the country's debt crisis escalated, with the 10-year yield reaching 13.6% in April before falling to 8.2% in September (rising only 159 basis points for the period) after a bailout package was approved.

• Within currencies, the U.S. dollar rallied by 12.1% on a trade-weighted basis, peaking at a 12-year high in March. Emerging market currencies lost –19.1% versus the dollar as commodity prices fell sharply, with the greatest losses in the Russian ruble, which fell –39.5%. The euro depreciated by –11.5% and the Japanese yen fell by –8.5%.

• Regarding the Portfolio's overall performance relative to the Customized Index, the Portfolio's underweight position in commodities contributed to performance, as did overweight positions in cash and equities. However, an underweight position in fixed income detracted from performance.

• Active positions within equities detracted from performance. Underweight positions in Chinese A-shares and Chinese H-shares relative to global equities detracted from performance, as did overweight positions in eurozone relative to U.S. equities and U.S. energy stocks relative to U.S. equities. Underweight positions in global machinery stocks relative to global equities and in U.S. equities contributed to performance.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Global Strategist Portfolio

• Active positions within fixed income detracted from performance. Underweight positions in U.S. 5-year and 2-year Treasuries and overweight positions in Brazilian 10-year bonds detracted from performance. Overweight positions in Greek bonds and underweight positions in U.S. credit spreads contributed positively.

• Active positions within commodities (implemented via commodity futures) had a neutral impact on performance, as gains from an underweight position in copper were offset by losses from an overweight position in Brent oil.

• Active currency positions (implemented via currency forwards and futures) positively impacted performance. Underweight positions in China-sensitive currencies and a broad basket of emerging market currencies contributed positively, as did an overweight position in the Russian ruble and an underweight position in the Chinese renminbi.

Management Strategies

• As of September 30, 2015, we are neutral on fixed income and tactically overweight global equities in the Portfolio. Heading into the fourth quarter of 2015, we believe that a short-term stabilization in China could lift global risky assets as the fear of an impending global recession subsides. We prefer European and emerging market equities over the U.S. and Japan. We believe that many yield-sensitive assets are overvalued globally, but re-pricing may continue to be delayed as the U.S. Federal Reserve (Fed) monitors the global economy. Given the dovish stance of the Fed, we are constructive on real and inflation-sensitive assets including gold and U.S. Treasury inflation-protected securities (TIPS).

• We believe the eurozone recovery remains on track. We are overweight eurozone equities versus the U.S., as eurozone equities are cheaper and likely to benefit from a cyclical earnings recovery versus the U.S.'s more mature profit cycle. We expect the tailwinds of a weaker euro, lower corporate borrowing rates, and lower oil prices to support eurozone economic growth and drive robust earnings growth. While recent economic data has been marginally softer than our expectations, we

believe the eurozone growth trajectory is still strong enough to support our view.

• We are tactically overweight emerging market equities. In the medium-term, we expect a continued China slowdown to remain a headwind for broad emerging market growth as the excesses of China's investment and credit bubbles inevitably unwind. However, in the near-term, several leading indicators are pointing to the possibility that Chinese growth may stabilize or even accelerate in the coming quarters as a result of massive policy easing. Amidst bearish sentiment, we believe this could be enough to halt or even temporarily reverse the bear market in emerging market and commodity related assets.

• We are underweight Japanese equities. Japan is now likely in a technical recession, as domestic activity has been insufficient to offset external drags from slower growth in Asia. We expect the market to increasingly recognize that Abenomics has largely failed, much like S&P has begun to do in downgrading Japan's sovereign credit rating. Japanese equity valuations are not cheap enough to offset deteriorating fundamentals, and sentiment is bullish.

⁽ⁱ⁾ Certain of the Portfolio's investment themes may, in whole or part, be implemented through the use of derivatives, including the purchase and sale of futures, options, swaps, structured investments (including commodity-linked notes) and other related instruments and techniques. The Portfolio may also invest in foreign currency forward exchange contracts, which are also derivatives, in connection with its investments in foreign securities. The Portfolio may use derivative instruments for a variety of purposes, including hedging, risk management, portfolio management or to earn income. As a result, the use of derivatives had a material effect on the Portfolio's performance during the period.

⁽ⁱⁱ⁾ Data sources used in preparation of this commentary include FactSet and Bloomberg LP. Data as of September 30, 2015.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Global Strategist Portfolio

* Minimum Investment

In accordance with SEC regulations, the Portfolio's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, Class L, Class C and Class IS shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (where applicable).

Performance Compared to the MSCI All Country World Index⁽¹⁾, the Customized MSIM Global Allocation Index⁽²⁾ and the Lipper Flexible Portfolio Funds Index⁽³⁾

	Period Ended September 30, 2015 Total Returns⁽⁴⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽¹⁰⁾
Portfolio — Class I Shares w/o sales charges⁽⁵⁾		–8.87	%		6.85	%		5.35	%		7.14	%
Portfolio — Class A Shares w/o sales charges⁽⁶⁾		–9.16			6.54			5.06			5.94
Portfolio — Class A Shares with maximum 5.25% sales charges⁽⁶⁾		–13.95			5.41			4.49			5.64
Portfolio — Class L Shares w/o sales charges⁽⁷⁾		–9.66			—			—			4.02
Portfolio — Class C Shares w/o sales charges⁽⁸⁾		—			—			—			–10.11
Portfolio — Class C Shares with maximum 1.00% deferred sales charges⁽⁸⁾		—			—			—			–11.00
Portfolio — Class IS Shares w/o sales charges⁽⁹⁾		—			—			—			–8.70
MSCI All Country World Index		–6.66			6.82			4.58			7.10
Customized MSIM Global Allocation Index		–6.42			4.08			3.97			—
Lipper Flexible Portfolio Funds Index		–4.83			6.58			5.12			6.58

⁽¹⁾ The MSCI All Country World Index (ACWI) is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of developed and emerging markets. The term "free float" represents the portion of shares outstanding that are deemed to be available for purchase in the public equity markets by investors. The performance of the Index is listed in U.S. dollars and assumes reinvestment of net dividends. "Net dividends" reflects a reduction in dividends after taking into account withholding of taxes by any foreign countries represented in the Index. Returns, including periods prior to January 1, 2001, are calculated using the return data of the MSCI All Country World Index (gross dividends) through December 31, 2000 and the return data of the MSCI All Country World Index (net dividends) after December 31, 2000. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Customized MSIM Global Allocation Index is comprised of 60% MSCI All Country World Index (benchmark that measures the equity market performance of developed and emerging markets), 30% Barclays Global Aggregate Bond Index (benchmark that provides a broadbased measure of the global investment grade fixed-rate debt markets), 5% S&P GSCI Light Energy Index (benchmark for investment performance in the energy commodity market) and 5% Bank of America/Merrill Lynch U.S. Dollar 1-Month LIBID Average Index (benchmark that tracks the performance of a basket of synthetic assets paying LIBID to a stated maturity). The Customized MSIM Global Allocation Index was added as the Portfolio benchmark on October 2, 2013 and is provided for comparative purposes only. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽³⁾ The Lipper Flexible Portfolio Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Flexible Portfolio Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Flexible Portfolio Funds classification.

⁽⁴⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower.

⁽⁵⁾ Commenced operations on December 31, 1992.

⁽⁶⁾ Commenced operations on November 1, 1996.

⁽⁷⁾ Commenced operations on April 27, 2012.

⁽⁸⁾ Commenced operations on April 30, 2015.

⁽⁹⁾ Commenced operations on May 29, 2015.

⁽¹⁰⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Class I of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (29.2%)
Agency Adjustable Rate Mortgage (0.0%)
United States (0.0%)
Federal National Mortgage Association, Conventional Pool: 2.41%, 5/1/35	$	30	$	32
Agency Fixed Rate Mortgages (3.0%)
United States (3.0%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
3.50%, 1/1/44		441		461
6.00%, 11/1/37		114		129
6.50%, 5/1/32 - 9/1/32		80		94
7.50%, 5/1/35		8		9
November TBA:
3.50%, 11/1/45 (a)		1,142		1,186
4.00%, 11/1/45 (a)		1,760		1,870
Federal National Mortgage Association,
Conventional Pools:
3.00%, 3/1/30 - 5/1/30		456		475
3.50%, 4/1/29		440		465
4.00%, 8/1/45 - 9/1/45		1,309		1,401
4.50%, 3/1/41 - 11/1/44		490		540
5.00%, 1/1/41 - 3/1/41		1,516		1,688
6.00%, 1/1/38		13		15
6.50%, 12/1/29		26		30
7.00%, 12/1/17 - 2/1/31		372		426
7.50%, 8/1/37		16		19
Government National Mortgage Association,
October TBA:
3.50%, 10/20/45 (a)		1,473		1,543
Various Pools:
3.50%, 12/15/43		528		555
4.00%, 8/20/41 - 11/20/42		766		822
5.50%, 8/15/39		124		139
				11,867
Asset-Backed Security (0.1%)
United States (0.1%)
CVS Pass-Through Trust,
6.04%, 12/10/28		351		397
Collateralized Mortgage Obligations — Agency Collateral Series (0.5%)
United States (0.5%)
Federal Home Loan Mortgage Corporation,
2.40%, 6/25/22		1,625		1,649
2.79%, 1/25/22		75		78
2.97%, 10/25/21		90		95
IO
0.81%, 1/25/21 (b)		1,297		33
IO REMIC
5.84%, 4/15/39 (b)		139		21
				1,876

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (0.8%)
United States (0.8%)
COMM Mortgage Trust,
3.28%, 1/10/46	$	305	$	313
4.90%, 7/15/47 (b)(c)		152		137
Commercial Mortgage Pass-Through Certificates,
2.82%, 10/15/45		376		382
Extended Stay America Trust,
2.96%, 12/5/31 (c)		325		328
JP Morgan Chase Commercial Mortgage Securities Trust,
4.39%, 7/15/46 (c)		100		110
4.72%, 7/15/47 (b)(c)		745		653
JPMBB Commercial Mortgage Securities Trust,
4.11%, 9/15/47 (b)(c)		205		177
4.71%, 9/15/47 (b)(c)		263		232
4.82%, 8/15/47 (b)(c)		361		323
UBS-Barclays Commercial Mortgage Trust,
3.53%, 5/10/63		255		269
WF-RBS Commercial Mortgage Trust,
4.14%, 10/15/57 (b)(c)		362		310
				3,234
Corporate Bonds (8.5%)
Australia (0.4%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	400		509
BHP Billiton Finance USA Ltd.,
3.85%, 9/30/23	$	170		171
Macquarie Bank Ltd.,
6.63%, 4/7/21 (c)		270		303
Origin Energy Finance Ltd.,
3.50%, 10/9/18 (c)		200		194
QBE Insurance Group Ltd.,
2.40%, 5/1/18 (c)		200		202
Telstra Corp., Ltd.,
3.13%, 4/7/25 (c)		135		132
Wesfarmers Ltd.,
2.98%, 5/18/16 (c)		245		248
				1,759
Belgium (0.1%)
Anheuser-Busch InBev Finance, Inc.,
3.70%, 2/1/24		300		304
Brazil (0.0%)
Vale Overseas Ltd.,
6.88%, 11/10/39		50		39
Canada (0.1%)
Barrick Gold Corp.,
4.10%, 5/1/23		100		89
Brookfield Asset Management, Inc.,
5.80%, 4/25/17		295		313
Goldcorp, Inc.,
3.70%, 3/15/23		198		184
				586

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Chile (0.1%)
Empresa Nacional de Telecomunicaciones SA,
4.75%, 8/1/26 (c)	$	250	$	241
China (0.1%)
Baidu, Inc.,
3.25%, 8/6/18		225		230
Want Want China Finance Ltd.,
1.88%, 5/14/18 (c)		200		197
				427
Colombia (0.1%)
Ecopetrol SA,
5.88%, 9/18/23		270		261
France (0.7%)
AXA SA,
3.94%, 11/7/24 (b)(d)	EUR	500		523
Banque Federative du Credit Mutuel SA,
2.00%, 9/19/19		500		587
BNP Paribas SA,
5.00%, 1/15/21	$	95		107
MTN
4.25%, 10/15/24		250		249
BPCE SA,
5.15%, 7/21/24 (c)		450		458
Credit Agricole Assurances SA,
4.25%, 1/13/25 (b)(d)	EUR	500		515
Credit Agricole SA,
3.90%, 4/19/21		50		61
Electricite de France SA,
5.00%, 1/22/26 (b)(d)		300		334
				2,834
Germany (0.3%)
Bayer AG,
3.75%, 7/1/74 (b)		300		329
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen,
6.00%, 5/26/41 (b)		400		521
Siemens Financieringsmaatschappij N.V.,
3.25%, 5/27/25 (c)	$	250		250
Vier Gas Transport GmbH,
3.13%, 7/10/23	EUR	100		125
				1,225
Hong Kong (0.1%)
Hutchison Whampoa International 14 Ltd.,
1.63%, 10/31/17 (c)	$	200		199
Italy (0.4%)
Assicurazioni Generali SpA,
10.13%, 7/10/42 (b)	EUR	400		579
FCA Capital Ireland PLC,
1.38%, 4/17/20		500		539
Telecom Italia Finance SA,
7.75%, 1/24/33		80		115
UniCredit SpA,
4.25%, 7/29/16		350		404
				1,637

	Face Amount (000)		Value (000)
Korea, Republic of (0.1%)
SK Telecom Co., Ltd.,
2.13%, 5/1/18 (c)	$	200	$	201
Malaysia (0.1%)
Petronas Capital Ltd.,
3.50%, 3/18/25 (c)		375		359
Mexico (0.0%)
Mexichem SAB de CV,
5.88%, 9/17/44 (c)		200		170
Netherlands (0.5%)
ABN Amro Bank N.V.,
2.50%, 10/30/18 (c)		300		305
3.63%, 10/6/17	EUR	200		238
ASR Nederland N.V.,
5.00%, 9/30/24 (b)(d)		500		529
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA,
3.95%, 11/9/22	$	250		251
Series G
3.75%, 11/9/20	EUR	300		365
ING Bank N.V.,
5.80%, 9/25/23 (c)	$	240		261
Shell International Finance BV,
2.13%, 5/11/20		225		226
				2,175
Spain (0.4%)
Banco Bilbao Vizcaya Argentaria SA,
3.63%, 1/18/17	EUR	350		409
Santander Issuances SAU,
2.50%, 3/18/25		600		611
Telefonica Emisiones SAU,
4.71%, 1/20/20		300		383
				1,403
Sweden (0.1%)
Skandinaviska Enskilda Banken AB,
1.75%, 3/19/18 (c)	$	200		200
Swedbank AB,
1.75%, 3/12/18 (c)		270		272
				472
Switzerland (0.5%)
Aquarius and Investments PLC for Zurich Insurance Co., Ltd.,
4.25%, 10/2/43 (b)	EUR	450		536
Credit Suisse,
6.00%, 2/15/18	$	90		98
Credit Suisse AG,
0.63%, 11/20/18	EUR	550		613
Glencore Funding LLC,
4.13%, 5/30/23 (c)	$	200		157
Novartis Capital Corp.,
4.40%, 5/6/44		150		162
UBS AG,
7.50%, 7/15/25		380		479
				2,045

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
Thailand (0.1%)
PTT Exploration & Production PCL,
3.71%, 9/16/18 (c)	$	240	$	248
PTT PCL,
3.38%, 10/25/22 (c)		230		228
				476
United Kingdom (0.9%)
Abbey National Treasury Services PLC,
4.00%, 3/13/24		120		125
BAT International Finance PLC,
9.50%, 11/15/18 (c)		155		190
Diageo Capital PLC,
1.50%, 5/11/17		215		216
Experian Finance PLC,
2.38%, 6/15/17 (c)		400		403
GlaxoSmithKline Capital, Inc.,
6.38%, 5/15/38		100		127
Heathrow Funding Ltd.,
4.60%, 2/15/18	EUR	300		366
HSBC Holdings PLC,
6.38%, 9/17/24 (b)(d)	$	200		191
Imperial Tobacco Finance PLC,
8.38%, 2/17/16	EUR	400		461
Lloyds Bank PLC,
6.50%, 3/24/20		400		533
Nationwide Building Society,
3.90%, 7/21/25 (c)	$	200		205
6.25%, 2/25/20 (c)		300		352
NGG Finance PLC,
5.63%, 6/18/73 (b)	GBP	200		318
				3,487
United States (3.4%)
AbbVie, Inc.,
3.60%, 5/14/25	$	200		198
Actavis Funding SCS,
3.80%, 3/15/25		55		53
Altria Group, Inc.,
2.85%, 8/9/22		25		24
5.38%, 1/31/44		155		169
Apple, Inc.,
3.85%, 5/4/43		100		91
4.45%, 5/6/44		175		175
AT&T, Inc.,
5.55%, 8/15/41		50		51
6.30%, 1/15/38		150		165
Bank of America Corp.,
MTN
4.00%, 4/1/24		250		258
4.20%, 8/26/24		100		100
4.25%, 10/22/26		45		45
5.00%, 1/21/44		250		264

	Face Amount (000)		Value (000)
Baxalta, Inc.,
4.00%, 6/23/25 (c)	$	300	$	301
Bayer US Finance LLC,
3.38%, 10/8/24 (c)		200		201
Biogen, Inc.,
4.05%, 9/15/25		175		177
Boston Properties LP,
3.85%, 2/1/23		25		26
Burlington Northern Santa Fe LLC,
4.55%, 9/1/44		195		192
Capital One Bank, USA NA,
3.38%, 2/15/23		546		532
CCO Safari II LLC,
4.91%, 7/23/25 (c)		300		299
Citigroup, Inc.,
5.50%, 9/13/25		250		272
6.13%, 5/15/18		107		118
6.68%, 9/13/43		20		25
8.13%, 7/15/39		175		252
Coca-Cola Co.,
3.20%, 11/1/23		250		257
Comcast Corp.,
4.60%, 8/15/45		130		133
DirecTV Holdings LLC/DIRECTV Financing Co., Inc.,
5.15%, 3/15/42		25		24
Discover Bank,
2.00%, 2/21/18		345		343
Enterprise Products Operating LLC,
3.35%, 3/15/23		275		266
Five Corners Funding Trust,
4.42%, 11/15/23 (c)		350		367
Ford Motor Credit Co., LLC,
4.21%, 4/15/16		305		310
Freeport-McMoRan, Inc.,
3.88%, 3/15/23		45		34
General Electric Capital Corp.,
5.30%, 2/11/21		275		316
General Motors Financial Co., Inc.,
4.30%, 7/13/25		250		242
Genworth Holdings, Inc.,
7.20%, 2/15/21		105		105
Gilead Sciences, Inc.,
3.65%, 3/1/26		175		176
4.80%, 4/1/44		75		76
Goldman Sachs Group, Inc. (The),
4.80%, 7/8/44		275		279
Hartford Financial Services Group, Inc. (The),
5.50%, 3/30/20		25		28
Home Depot, Inc.,
5.88%, 12/16/36		100		123
HP Enterprise Co.,
3.60%, 10/15/20		325		325
HSBC USA, Inc.,
3.50%, 6/23/24		100		102

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
International Business Machines Corp.,
1.95%, 2/12/19	$	300	$	303
JPMorgan Chase & Co.,
3.20%, 1/25/23		615		611
3.88%, 2/1/24		200		207
Kinder Morgan Energy Partners LP,
4.15%, 2/1/24		125		113
Kinder Morgan, Inc.,
4.30%, 6/1/25		150		135
Liberty Mutual Group, Inc.,
4.85%, 8/1/44 (c)		100		98
McDonald's Corp.,
3.38%, 5/26/25		275		277
Medtronic, Inc.,
3.63%, 3/15/24		250		257
4.63%, 3/15/45		50		52
Merck & Co., Inc.,
2.80%, 5/18/23		250		249
Monongahela Power Co.,
5.40%, 12/15/43 (c)		100		111
NBC Universal Media LLC,
4.38%, 4/1/21		175		192
Omnicom Group, Inc.,
3.63%, 5/1/22		60		61
3.65%, 11/1/24		84		83
Oracle Corp.,
3.40%, 7/8/24		175		178
Pacific LifeCorp,
6.00%, 2/10/20 (c)		25		28
PepsiCo, Inc.,
3.60%, 3/1/24		250		260
Philip Morris International, Inc.,
2.13%, 5/30/19	EUR	150		176
Plains All American Pipeline LP/PAA Finance Corp.,
6.70%, 5/15/36	$	190		210
8.75%, 5/1/19		220		263
Prudential Financial, Inc.,
6.63%, 12/1/37		150		188
QUALCOMM, Inc.,
4.65%, 5/20/35		250		229
Target Corp.,
3.50%, 7/1/24		200		209
Time Warner Cable, Inc.,
4.50%, 9/15/42		175		139
Tyco International Finance SA,
3.90%, 2/14/26		175		178
Tyson Foods, Inc.,
3.95%, 8/15/24		60		61
UnitedHealth Group, Inc.,
3.75%, 7/15/25		75		78
4.25%, 3/15/43		150		149

	Face Amount (000)		Value (000)
Verizon Communications, Inc.,
4.67%, 3/15/55	$	231	$	200
5.01%, 8/21/54		195		178
Wells Fargo & Co.,
3.45%, 2/13/23		395		393
Zimmer Biomet Holdings, Inc.,
5.75%, 11/30/39		150		165
				13,525
				33,825
Mortgages — Other (0.4%)
United Kingdom (0.2%)
Holmes Master Issuer PLC,
2.13%, 10/15/54 (b)(c)	GBP	616		948
United States (0.2%)
Banc of America Alternative Loan Trust,
5.86%, 10/25/36	$	46		29
6.00%, 4/25/36		25		26
ChaseFlex Trust,
6.00%, 2/25/37		41		36
First Horizon Alternative Mortgage Securities Trust,
6.25%, 8/25/36		21		17
Freddie Mac Whole Loan Securities Trust,
3.50%, 5/25/45		333		338
4.00%, 5/25/45		135		139
GSR Mortgage Loan Trust,
5.75%, 1/25/37		35		34
Lehman Mortgage Trust,
5.50%, 11/25/35		13		12
6.50%, 9/25/37		45		37
RALI Trust,
0.69%, 3/25/35 (b)		52		38
				706
				1,654
Sovereign (12.0%)
Australia (0.4%)
Australia Government Bond,
2.75%, 4/21/24	AUD	1,320		941
3.25%, 4/21/25		750		555
				1,496
Belgium (0.4%)
Belgium Government Bond,
0.80%, 6/22/25 (c)	EUR	900		996
3.00%, 9/28/19		480		601
				1,597
Bermuda (0.1%)
Bermuda Government International Bond,
4.85%, 2/6/24 (c)	$	390		409
Canada (1.0%)
Canadian Government Bond,
1.50%, 6/1/23	CAD	2,300		1,756
3.25%, 6/1/21		2,600		2,194
				3,950

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Face Amount (000)		Value (000)
China (0.1%)
Sinopec Group Overseas Development 2015 Ltd.,
2.50%, 4/28/20 (c)	$	375	$	370
France (0.5%)
France Government Bond OAT,
3.25%, 5/25/45	EUR	900		1,316
5.50%, 4/25/29		300		511
				1,827
Germany (0.4%)
Bundesrepublik Deutschland,
4.25%, 7/4/39		710		1,286
4.75%, 7/4/34		220		398
				1,684
Greece (0.3%)
Hellenic Republic Government Bond,
3.00%, 2/24/23 - 2/24/42 (e)		1,700		1,182
Hungary (0.3%)
Hungary Government International Bond,
5.38%, 3/25/24	$	250		272
5.75%, 11/22/23		800		892
				1,164
Indonesia (0.3%)
Indonesia Government International Bond,
5.88%, 1/15/24 (c)		800		849
Perusahaan Listrik Negara PT,
5.50%, 11/22/21		300		303
				1,152
Ireland (0.1%)
Ireland Government Bond,
5.40%, 3/13/25	EUR	200		306
Italy (1.2%)
Italy Buoni Poliennali Del Tesoro,
1.50%, 6/1/25		1,080		1,185
1.65%, 3/1/32 (c)		880		908
2.35%, 9/15/24 (c)		2,226		2,815
				4,908
Japan (1.9%)
Japan Finance Organization for Municipalities,
1.90%, 6/22/18	JPY	70,000		613
Japan Government Ten Year Bond,
0.50%, 9/20/24		80,000		681
1.10%, 6/20/21		75,000		662
Japan Government Thirty Year Bond,
1.70%, 6/20/33		395,000		3,701
2.00%, 9/20/40		193,000		1,850
				7,507
Korea, Republic of (0.3%)
Korea Development Bank (The),
3.88%, 5/4/17	$	400		415
4.63%, 11/16/21		630		700
				1,115

	Face Amount (000)		Value (000)
Mexico (0.2%)
Mexican Bonos,
8.00%, 6/11/20	MXN	8,000	$	530
Petroleos Mexicanos,
6.38%, 1/23/45	$	285		258
				788
Netherlands (0.2%)
Netherlands Government Bond,
0.25%, 7/15/25 (c)	EUR	800		850
New Zealand (0.5%)
New Zealand Government Bond,
5.50%, 4/15/23	NZD	2,800		2,095
Poland (0.2%)
Poland Government Bond,
4.00%, 10/25/23	PLN	3,300		947
South Africa (0.4%)
South Africa Government Bond,
7.75%, 2/28/23	ZAR	4,500		315
8.00%, 1/31/30		20,200		1,359
				1,674
Spain (0.9%)
Spain Government Bond,
4.20%, 1/31/37 (c)	EUR	1,400		1,914
Spain Government Inflation Linked Bond,
1.00%, 11/30/30 (c)		777		833
1.80%, 11/30/24 (c)		550		660
				3,407
Supernational (0.4%)
European Investment Bank,
2.15%, 1/18/27	JPY	157,000		1,573
United Kingdom (1.9%)
United Kingdom Gilt,
2.75%, 9/7/24	GBP	2,100		3,462
4.25%, 6/7/32 - 9/7/39		2,130		4,217
				7,679
				47,680
U.S. Treasury Securities (3.9%)
United States (3.9%)
U.S. Treasury Bond,
3.50%, 2/15/39	$	4,200		4,739
U.S. Treasury Inflation Indexed Bond,
0.25%, 1/15/25		4,736		4,544
U.S. Treasury Notes,
0.63%, 9/30/17		3,800		3,799
1.13%, 3/31/20		2,500		2,480
				15,562
Total Fixed Income Securities (Cost $117,947)				116,127

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Common Stocks (60.8%)
Australia (1.6%)
AGL Energy Ltd.		4,451	$	50
Alumina Ltd.		30,244		24
Amcor Ltd.		11,036		102
AMP Ltd.		31,080		122
Arrium Ltd. (f)		14,100		1
Asciano Ltd.		7,805		46
ASX Ltd.		1,539		41
Australia & New Zealand Banking Group Ltd.		29,480		565
BHP Billiton Ltd.		28,547		450
BlueScope Steel Ltd.		3,657		9
Brambles Ltd.		13,059		90
CIMIC Group Ltd.		1,366		23
Coca-Cola Amatil Ltd.		4,624		29
Cochlear Ltd.		499		29
Commonwealth Bank of Australia		12,195		627
Computershare Ltd.		4,195		31
Crown Resorts Ltd.		5,745		40
CSL Ltd.		4,783		301
Dexus Property Group REIT		7,020		35
DuluxGroup Ltd.		5,515		21
Echo Entertainment Group Ltd.		7,295		25
Evolution Mining Ltd.		29,744		27
Fairfax Media Ltd.		32,187		20
Fortescue Metals Group Ltd.		10,837		14
Goodman Group REIT		11,245		46
GPT Group REIT		17,813		57
Incitec Pivot Ltd.		14,433		40
Insurance Australia Group Ltd.		19,798		68
Lend Lease Group REIT		5,862		52
Macquarie Group Ltd.		2,760		150
Mirvac Group REIT		25,584		31
National Australia Bank Ltd.		24,937		529
Newcrest Mining Ltd. (f)		17,910		162
Northern Star Resources Ltd.		18,567		35
OceanaGold Corp.		2,584		4
Orica Ltd.		3,553		38
Origin Energy Ltd.		9,394		31
Orora Ltd.		11,036		18
QBE Insurance Group Ltd.		13,752		125
Recall Holdings Ltd.		2,611		13
Rio Tinto Ltd.		3,744		129
Santos Ltd.		9,011		25
Scentre Group REIT		41,036		113
Shopping Centres Australasia Property Group REIT		2,395		3
Sonic Healthcare Ltd.		3,160		41
South32 Ltd. (f)		20,867		20
South32 Ltd. (f)		28,547		28
Stockland REIT		25,532		69
Suncorp Group Ltd.		11,119		96
Sydney Airport		2,861		12
Tabcorp Holdings Ltd.		7,097		23

	Shares		Value (000)
Telstra Corp., Ltd.		41,748	$	165
Transurban Group		12,301		86
Treasury Wine Estates Ltd.		7,395		34
Wesfarmers Ltd.		10,023		277
Westfield Corp. REIT		18,583		130
Westpac Banking Corp.		24,560		516
Woodside Petroleum Ltd.		5,210		107
Woolworths Ltd.		10,835		189
WorleyParsons Ltd.		1,584		7
				6,191
Austria (0.1%)
BUWOG AG (f)		183		4
Erste Group Bank AG (f)		12,202		355
Immofinanz AG (f)		3,664		8
Raiffeisen Bank International AG (f)		61		1
Voestalpine AG		1,329		46
				414
Belgium (0.6%)
Ageas		3,005		123
Anheuser-Busch InBev N.V.		6,748		717
Colruyt SA		905		44
Delhaize Group SA		3,250		288
Groupe Bruxelles Lambert SA		1,457		110
KBC Groep N.V.		16,159		1,019
Umicore SA		1,567		60
Viohalco SA (f)		653		2
				2,363
Canada (2.1%)
Agnico-Eagle Mines Ltd.		3,680		93
Agnico-Eagle Mines Ltd.		1,600		41
Agrium, Inc.		1,500		134
Bank of Montreal		5,100		278
Bank of Nova Scotia		8,800		388
Barrick Gold Corp.		16,970		108
Barrick Gold Corp.		9,400		60
BCE, Inc.		5,300		217
Blackberry Ltd. (f)		4,200		26
Bombardier, Inc.		12,800		16
Brookfield Asset Management, Inc., Class A		8,250		260
Cameco Corp.		4,100		50
Canadian Imperial Bank of Commerce		3,700		266
Canadian National Railway Co.		8,600		488
Canadian Natural Resources Ltd.		10,300		201
Canadian Oil Sands Ltd.		2,700		13
Canadian Pacific Railway Ltd.		1,600		230
Cenovus Energy, Inc.		7,100		108
Centerra Gold, Inc.		7,250		41
Crescent Point Energy Corp.		2,100		24
Detour Gold Corp. (f)		5,390		57
Eldorado Gold Corp.		17,120		55
Eldorado Gold Corp.		5,400		17
Enbridge, Inc.		8,200		304

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Canada (cont'd)
Encana Corp.		7,600	$	49
Fairfax Financial Holdings Ltd.		300		137
First Majestic Silver Corp. (f)		300		1
First Quantum Minerals Ltd.		5,100		19
Fortis, Inc.		1,300		37
Franco-Nevada Corp.		2,920		128
Goldcorp, Inc.		9,110		114
Goldcorp, Inc.		7,100		89
Great-West Lifeco, Inc.		4,100		98
Husky Energy, Inc.		2,600		40
IGM Financial, Inc.		1,800		46
Imperial Oil Ltd.		2,600		82
Intact Financial Corp.		1,500		105
Kinross Gold Corp. (f)		44,250		76
Kinross Gold Corp. (f)		1,200		2
Lightstream Resources Ltd.		1,136		—	@
Loblaw Cos., Ltd.		673		35
Lululemon Athletica, Inc. (f)		1,200		61
Magna International, Inc.		5,200		249
Manulife Financial Corp.		18,100		280
National Bank of Canada		3,000		96
New Gold, Inc. (f)		15,260		35
Osisko Gold Royalties Ltd.		2,770		29
Pan American Silver Corp.		4,630		29
Pembina Pipeline Corp.		400		10
Penn West Petroleum Ltd.		3,700		2
Potash Corp. of Saskatchewan, Inc.		8,200		169
Power Corp. of Canada		4,100		85
Power Financial Corp.		3,400		78
Rogers Communications, Inc., Class B		3,800		131
Royal Bank of Canada		12,300		680
SEMAFO, Inc. (f)		9,110		20
Shaw Communications, Inc., Class B		3,700		72
Silver Wheaton Corp.		7,550		91
Silver Wheaton Corp.		3,500		42
SNC-Lavalin Group, Inc.		1,800		51
Sun Life Financial, Inc.		5,900		190
Suncor Energy, Inc.		14,100		377
Teck Resources Ltd., Class B		4,700		22
Thomson Reuters Corp.		3,700		149
Toronto-Dominion Bank (The)		16,200		638
Touchstone Exploration, Inc. (f)		650		—	@
TransAlta Corp.		2,300		11
TransCanada Corp.		6,300		199
Valeant Pharmaceuticals International, Inc. (f)		300		54
Yamana Gold, Inc.		22,810		39
Yamana Gold, Inc.		7,200		12
				8,434
Chile (0.0%)
Antofagasta PLC		2,716		21

	Shares		Value (000)
China (0.0%)
Hanergy Thin Film Power Group Ltd. (f)(g)(h)(i)		42,000	$	6
Zhaojin Mining Industry Co., Ltd. (g)		25,500		14
Zijin Mining Group Co., Ltd. H Shares (g)		170,000		45
				65
Denmark (0.5%)
AP Moeller - Maersk A/S Series A		30		45
AP Moeller - Maersk A/S Series B		55		85
Carlsberg A/S Series B		98		8
Coloplast A/S		120		8
Danske Bank A/S		6,410		194
DSV A/S		3,452		129
Novo Nordisk A/S Series B		19,475		1,048
Novozymes A/S Series B		2,771		121
TDC A/S		537		3
Vestas Wind Systems A/S		3,486		182
				1,823
Finland (0.2%)
Fortum Oyj		6,094		90
Kone Oyj, Class B		5,074		193
Nokia Oyj		34,796		238
Nokian Renkaat Oyj		1,401		46
Sampo Oyj, Class A		3,582		174
UPM-Kymmene Oyj		11,663		175
				916
France (4.0%)
Accor SA		17,819		834
Aeroports de Paris (ADP)		480		54
Air Liquide SA		3,070		364
Alcatel-Lucent (f)		39,117		144
Alstom SA (f)		4,118		127
Atos SE		6,295		483
AXA SA		16,884		410
BNP Paribas SA		10,533		620
Bouygues SA		22,227		791
Bureau Veritas SA		2,324		49
Cap Gemini SA		13,734		1,224
Carrefour SA		5,540		164
CGG SA (f)		2,024		7
Christian Dior SE		710		133
Cie de Saint-Gobain		24,243		1,053
Cie Generale des Etablissements Michelin		1,855		169
Credit Agricole SA		86,252		990
Danone SA		6,671		422
Edenred		1,823		30
Electricite de France SA		3,256		58
Engie		12,237		198
Essilor International SA		1,528		187
Eutelsat Communications SA		799		25
Groupe Eurotunnel SE		20,762		283
Hermes International		150		55
ICADE REIT		86		6

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
France (cont'd)
JCDecaux SA		651	$	24
Kering		1,357		222
L'Oreal SA		2,407		419
LVMH Moet Hennessy Louis Vuitton SE		2,297		392
Natixis SA		495		3
Orange SA		19,419		294
Pernod Ricard SA		1,855		187
Peugeot SA (f)		1,221		18
Publicis Groupe SA		1,047		72
Renault SA		1,898		136
Rexel SA		15,516		191
Sanofi		11,589		1,104
SES SA		2,416		76
Societe Generale SA		7,294		326
Societe Television Francaise 1		1,176		17
Sodexo SA		1,223		101
Suez Environnement Co.		4,193		75
Technip SA		933		44
Thales SA		1,262		88
Total SA		20,957		945
Unibail-Rodamco SE REIT		1,616		419
Vallourec SA		2,417		21
Veolia Environnement SA		5,613		129
Vinci SA		20,273		1,289
Vivendi SA		16,236		384
				15,856
Germany (2.5%)
Adidas AG		1,738		140
Allianz SE (Registered)		4,059		636
Axel Springer SE		168		9
BASF SE		10,277		784
Bayer AG (Registered)		6,754		863
Bayerische Motoren Werke AG		2,799		248
Beiersdorf AG		851		75
Commerzbank AG (f)		41,347		435
Continental AG		533		113
Daimler AG (Registered)		6,189		449
Deutsche Bank AG (Registered)		11,761		316
Deutsche Boerse AG		12,147		1,046
Deutsche Lufthansa AG (Registered) (f)		3,253		45
Deutsche Post AG (Registered)		5,009		139
Deutsche Telekom AG (Registered)		25,997		462
E.ON SE		15,975		137
Esprit Holdings Ltd. (g)		12,583		9
Fraport AG Frankfurt Airport Services Worldwide		268		17
Fresenius Medical Care AG & Co., KGaA		1,557		121
Fresenius SE & Co., KGaA		3,141		211
Henkel AG & Co., KGaA		1,420		125
Henkel AG & Co., KGaA (Preference)		2,044		210
Infineon Technologies AG		10,693		120
K&S AG (Registered)		1,306		44

	Shares		Value (000)
Lanxess AG		827	$	39
Linde AG		1,359		220
Merck KGaA		1,048		93
Metro AG		1,062		29
Muenchener Rueckversicherungs AG (Registered)		1,719		320
Osram Licht AG		765		40
Porsche Automobil Holding SE (Preference)		779		33
ProSiebenSat.1 Media SE (Registered)		11,079		543
QIAGEN N.V. (f)		2,514		65
RWE AG		3,402		39
SAP SE		9,219		596
Siemens AG (Registered)		7,650		683
Suedzucker AG		410		7
ThyssenKrupp AG		4,900		86
TUI AG		6,275		116
TUI AG		1,503		27
Volkswagen AG		290		34
Volkswagen AG (Preference)		1,450		159
				9,883
Greece (0.1%)
Aegean Airlines SA		711		5
Alpha Bank AE (f)		45,588		5
Athens Water Supply & Sewage Co., SA (The)		485		3
Attica Bank SA (f)		30,305		1
Ellaktor SA (f)		2,264		4
Eurobank Ergasias SA (f)		110,993		3
FF Group (f)		670		14
Fourlis Holdings SA (f)		952		3
Frigoglass SAIC (f)		326		1
GEK Terna Holding Real Estate Construction SA (f)		1,941		4
Grivalia Properties REIC AE REIT		647		6
Hellenic Exchanges - Athens Stock Exchange SA		2,748		15
Hellenic Petroleum SA (f)		1,449		9
Hellenic Telecommunications Organization SA		3,346		29
Intralot SA-Integrated Lottery Systems & Services (f)		832		2
JUMBO SA		2,761		24
Lamda Development SA (f)		225		1
Marfin Investment Group Holdings SA (f)		13,085		1
Metka SA		449		4
Motor Oil Hellas Corinth Refineries SA (f)		945		11
Mytilineos Holdings SA (f)		2,242		12
National Bank of Greece SA (f)		21,851		9
OPAP SA		2,890		26
Piraeus Bank SA (f)		25,114		2
Piraeus Port Authority SA		80		1
Public Power Corp. SA		4,763		25
Sarantis SA		115		1
Terna Energy SA (f)		600		2
Thrace Plastics Co., SA		394		1
Titan Cement Co., SA		464		10
				234

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Hong Kong (0.7%)
AIA Group Ltd.		67,200	$	350
Bank of East Asia Ltd. (The)		18,693		63
BOC Hong Kong Holdings Ltd.		38,500		114
Cheung Kong Property Holdings Ltd.		28,364		208
CK Hutchison Holdings Ltd.		28,364		369
CLP Holdings Ltd.		19,000		162
G-Resources Group Ltd.		402,000		10
Global Brands Group Holding Ltd. (f)		40,000		8
Hang Lung Group Ltd.		8,000		27
Hang Lung Properties Ltd.		22,000		49
Hang Seng Bank Ltd.		11,900		215
Henderson Land Development Co., Ltd.		16,146		97
Hong Kong & China Gas Co., Ltd.		57,977		109
Hong Kong Exchanges and Clearing Ltd.		11,101		255
Kerry Logistics Network Ltd.		3,500		5
Kerry Properties Ltd.		7,000		19
Link REIT (The)		21,033		116
MTR Corp., Ltd.		16,053		70
New World Development Co., Ltd.		41,531		40
Power Assets Holdings Ltd.		14,500		138
Sands China Ltd.		28,400		86
Sino Land Co., Ltd.		23,340		36
Sun Hung Kai Properties Ltd.		15,504		202
Swire Pacific Ltd., Class A		6,500		73
Swire Properties Ltd.		4,550		13
Wharf Holdings Ltd. (The)		13,200		75
Wheelock & Co., Ltd.		10,000		44
				2,953
Ireland (0.3%)
Bank of Ireland (f)		1,047,847		408
CRH PLC		23,550		622
				1,030
Israel (0.0%)
Bank Hapoalim BM		553		3
Bank Leumi Le-Israel BM (f)		729		2
Mizrahi Tefahot Bank Ltd.		72		1
				6
Italy (1.8%)
Assicurazioni Generali SpA		11,606		213
Atlantia SpA		38,712		1,084
Banca Monte dei Paschi di Siena SpA (f)		9,295		17
Banco Popolare SC (f)		12,878		190
Enel Green Power SpA		11,984		23
Enel SpA		57,892		259
Eni SpA		22,322		351
Finmeccanica SpA (f)		1,205		15
Intesa Sanpaolo SpA		605,535		2,138
Luxottica Group SpA		1,123		78
Mediobanca SpA		83,531		822
Prysmian SpA		1,210		25
Saipem SpA (f)		2,154		17

	Shares		Value (000)
Snam SpA		20,778	$	107
Telecom Italia SpA (f)		90,977		112
Telecom Italia SpA		64,353		66
Terna Rete Elettrica Nazionale SpA		9,469		46
UniCredit SpA		227,059		1,415
Unione di Banche Italiane SCPA		34,973		248
				7,226
Japan (5.5%)
Advantest Corp.		1,600		12
Aeon Co., Ltd.		8,400		131
Aisin Seiki Co., Ltd.		2,800		94
Ajinomoto Co., Inc.		11,000		232
Aozora Bank Ltd.		1,000		3
Asahi Glass Co., Ltd.		12,000		70
Asahi Group Holdings Ltd.		3,700		120
Asahi Kasei Corp.		19,000		134
Astellas Pharma, Inc.		19,000		247
Bank of Yokohama Ltd. (The)		16,000		97
Bridgestone Corp.		6,600		229
Canon, Inc.		10,400		301
Central Japan Railway Co.		1,700		275
Chiba Bank Ltd. (The)		11,000		78
Chubu Electric Power Co., Inc.		5,800		86
Chugai Pharmaceutical Co., Ltd.		3,400		105
Chugoku Bank Ltd. (The)		100		1
Chugoku Electric Power Co., Inc. (The)		2,600		36
Dai Nippon Printing Co., Ltd.		8,000		78
Dai-ichi Life Insurance Co., Ltd. (The)		1,000		16
Daiichi Sankyo Co., Ltd.		6,800		119
Daikin Industries Ltd.		2,800		157
Daito Trust Construction Co., Ltd.		1,000		102
Daiwa House Industry Co., Ltd.		8,000		199
Daiwa Securities Group, Inc.		21,000		136
Denso Corp.		6,100		259
Dentsu, Inc.		2,200		113
East Japan Railway Co.		3,600		305
Eisai Co., Ltd.		2,800		166
Electric Power Development Co., Ltd.		1,900		58
FANUC Corp.		1,800		278
Fast Retailing Co., Ltd.		500		203
FUJIFILM Holdings Corp.		5,700		214
Fujitsu Ltd.		19,000		83
Fukuoka Financial Group, Inc.		1,000		5
Hankyu Hanshin Holdings, Inc.		24,000		147
Hiroshima Bank Ltd. (The)		1,000		6
Hitachi Ltd.		47,000		238
Hokkaido Electric Power Co., Inc. (f)		2,900		28
Hokuhoku Financial Group, Inc.		1,000		2
Hokuriku Electric Power Co.		2,700		36
Honda Motor Co., Ltd.		1,100		33
Honda Motor Co., Ltd. ADR		13,695		409
Hoya Corp.		4,200		138

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Japan (cont'd)
Ibiden Co., Ltd.		1,400	$	18
Inpex Corp.		4,200		38
Isetan Mitsukoshi Holdings Ltd.		3,700		56
Isuzu Motors Ltd.		500		5
ITOCHU Corp.		15,500		164
Iyo Bank Ltd. (The)		100		1
Japan Real Estate Investment Corp. REIT		12		55
Japan Steel Works Ltd. (The)		3,000		10
Japan Tobacco, Inc.		11,500		358
JFE Holdings, Inc.		4,600		60
JGC Corp.		2,000		27
Joyo Bank Ltd. (The)		1,000		5
JSR Corp.		2,100		30
JX Holdings, Inc.		2,800		10
Kansai Electric Power Co., Inc. (The) (f)		4,900		55
Kao Corp.		5,900		268
Kawasaki Heavy Industries Ltd.		26,000		90
KDDI Corp.		22,500		504
Keikyu Corp.		7,000		56
Keio Corp.		7,000		50
Keyence Corp.		500		224
Kintetsu Group Holdings Co., Ltd.		29,000		104
Kirin Holdings Co., Ltd.		10,000		132
Kobe Steel Ltd.		49,000		53
Komatsu Ltd.		9,800		144
Konica Minolta, Inc.		3,500		37
Kubota Corp.		13,000		179
Kuraray Co., Ltd.		3,500		44
Kyocera Corp.		3,200		147
Kyushu Electric Power Co., Inc. (f)		2,700		29
LIXIL Group Corp.		3,900		79
Makita Corp.		1,100		59
Marubeni Corp.		21,000		103
Mazda Motor Corp.		3,400		54
Mitsubishi Chemical Holdings Corp.		15,500		81
Mitsubishi Corp.		12,800		210
Mitsubishi Electric Corp.		19,000		174
Mitsubishi Estate Co., Ltd.		12,000		246
Mitsubishi Heavy Industries Ltd.		37,000		166
Mitsubishi Motors Corp.		6,400		49
Mitsui & Co., Ltd.		19,300		217
Mitsui Fudosan Co., Ltd.		9,000		248
Mitsui OSK Lines Ltd.		12,000		29
Mizuho Financial Group, Inc.		156,800		295
MS&AD Insurance Group Holdings, Inc.		4,000		108
Murata Manufacturing Co., Ltd.		2,200		286
NGK Insulators Ltd.		3,000		58
Nidec Corp.		2,200		152
Nikon Corp.		3,500		42
Nintendo Co., Ltd.		1,000		169
Nippon Building Fund, Inc. REIT		12		58
Nippon Electric Glass Co., Ltd.		4,000		19

	Shares		Value (000)
Nippon Express Co., Ltd.		15,000	$	72
Nippon Steel Sumitomo Metal Corp.		8,000		146
Nippon Telegraph & Telephone Corp.		11,200		393
Nippon Yusen KK		24,000		56
Nissan Motor Co., Ltd.		23,900		220
Nitto Denko Corp.		1,700		102
Nomura Holdings, Inc.		36,100		209
NSK Ltd.		7,000		68
NTT Data Corp.		2,100		106
NTT DoCoMo, Inc.		14,700		246
Odakyu Electric Railway Co., Ltd.		12,000		108
Oji Holdings Corp.		9,000		39
Olympus Corp.		2,400		75
Omron Corp.		1,900		57
Ono Pharmaceutical Co., Ltd.		1,000		119
Oriental Land Co., Ltd.		400		22
ORIX Corp.		10,500		136
Osaka Gas Co., Ltd.		29,000		110
Otsuka Holdings Co., Ltd.		400		13
Panasonic Corp.		18,700		190
Rakuten, Inc.		10,000		128
Resona Holdings, Inc.		8,500		43
Ricoh Co., Ltd.		8,000		81
Rohm Co., Ltd.		800		36
Secom Co., Ltd.		2,100		127
Sekisui House Ltd.		8,000		126
Seven & I Holdings Co., Ltd.		8,400		385
Seven Bank Ltd.		300		1
Sharp Corp. (f)		10,000		12
Shikoku Electric Power Co., Inc.		3,800		62
Shin-Etsu Chemical Co., Ltd.		3,300		170
Shinsei Bank Ltd.		1,000		2
Shionogi & Co., Ltd.		4,400		158
Shiseido Co., Ltd.		4,500		99
Shizuoka Bank Ltd. (The)		11,000		110
SMC Corp.		600		132
SoftBank Group Corp.		7,400		340
Sompo Japan Nipponkoa Holdings, Inc.		400		12
Sony Corp.		900		22
Sony Corp. ADR		9,035		221
Sumitomo Chemical Co., Ltd.		15,000		76
Sumitomo Corp.		11,700		113
Sumitomo Electric Industries Ltd.		16,600		213
Sumitomo Metal Mining Co., Ltd.		6,000		68
Sumitomo Mitsui Financial Group, Inc.		13,700		522
Sumitomo Mitsui Trust Holdings, Inc.		32,000		118
Sumitomo Realty & Development Co., Ltd.		6,000		192
Suruga Bank Ltd.		100		2
Suzuki Motor Corp.		4,200		130
T&D Holdings, Inc.		5,800		69
Takeda Pharmaceutical Co., Ltd.		7,400		326
TDK Corp.		1,000		57
Terumo Corp.		4,600		130

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Japan (cont'd)
Tobu Railway Co., Ltd.		23,000	$	99
Tohoku Electric Power Co., Inc.		4,600		63
Tokio Marine Holdings, Inc.		4,900		183
Tokyo Electric Power Co., Inc. (f)		9,500		64
Tokyo Electron Ltd.		1,500		71
Tokyo Gas Co., Ltd.		26,000		126
Tokyu Corp.		12,000		88
Toppan Printing Co., Ltd.		8,000		65
Toray Industries, Inc.		19,000		165
Toshiba Corp. (f)		42,000		106
Toyota Industries Corp.		2,500		119
Toyota Motor Corp.		27,300		1,606
Trend Micro, Inc.		1,200		43
Unicharm Corp.		5,400		96
West Japan Railway Co.		2,300		144
Yahoo! Japan Corp.		19,100		73
Yamada Denki Co., Ltd.		9,500		38
Yamato Holdings Co., Ltd.		6,600		127
				21,680
Kazakhstan (0.0%)
KAZ Minerals PLC (f)		2,888		4
Mexico (0.0%)
Primero Mining Corp. (f)		4,800		11
Netherlands (1.0%)
Akzo Nobel N.V.		4,136		269
ArcelorMittal		12,177		64
ASML Holding N.V.		2,380		209
CNH Industrial N.V.		6,659		43
Fiat Chrysler Automobiles N.V. (f)		9,996		130
Fugro N.V. CVA (f)		657		12
Heineken N.V.		3,516		285
ING Groep N.V. CVA		47,738		678
Koninklijke Ahold N.V.		10,633		207
Koninklijke DSM N.V.		3,186		147
Koninklijke KPN N.V.		6,177		23
Koninklijke Philips N.V.		11,422		269
Koninklijke Vopak N.V.		1,006		40
PostNL N.V. (f)		4,654		17
Randstad Holding N.V.		14,049		838
TNT Express N.V.		4,151		32
Unilever N.V. CVA		14,384		579
				3,842
Nicaragua (0.0%)
B2Gold Corp. (f)		27,000		28
Norway (0.2%)
Akastor ASA (f)		1,833		2
Aker Solutions ASA		1,833		6
DNB ASA		12,348		161
Kvaerner ASA		1,677		1
Norsk Hydro ASA		13,781		46
Orkla ASA		10,248		76
REC Silicon ASA (f)		6,482		1

	Shares		Value (000)
Seadrill Ltd.		328	$	2
Statoil ASA		13,168		192
Subsea 7 SA (f)		3,127		24
Telenor ASA		16,272		304
Yara International ASA		2,039		82
				897
Peru (0.0%)
Cia de Minas Buenaventura SA ADR		8,800		52
Poland (0.0%)
Jeronimo Martins SGPS SA		3,072		42
Portugal (0.0%)
Banco Comercial Portugues SA (f)		1,619,074		79
Banco Espirito Santo SA (Registered) (f)(i)		192,146		1
Galp Energia SGPS SA		2,866		28
Pharol SGPS SA (Registered) (f)		11,841		4
				112
Singapore (0.0%)
DBS Group Holdings Ltd.		900		10
Oversea-Chinese Banking Corp., Ltd.		1,600		10
United Overseas Bank Ltd.		700		9
				29
South Africa (0.2%)
AngloGold Ashanti Ltd. ADR (f)		11,900		97
Gold Fields Ltd. ADR		23,300		62
Harmony Gold Mining Co., Ltd. ADR (f)		12,500		8
Mota-Engil Africa N.V.		182		1
SABMiller PLC		10,797		612
				780
Spain (2.5%)
Abertis Infraestructuras SA		12,358		196
ACS Actividades de Construccion y Servicios SA		3,511		101
Amadeus IT Holding SA, Class A		5,400		231
Banco Bilbao Vizcaya Argentaria SA		135,705		1,151
Banco de Sabadell SA		189,655		348
Banco Popular Espanol SA		80,921		295
Banco Santander SA		249,022		1,326
Bankia SA		393,696		510
Bankinter SA		31,776		234
CaixaBank SA		236,850		913
Distribuidora Internacional de Alimentacion SA (f)		18,498		112
Enagas SA		4,460		128
Ferrovial SA		6,878		164
Gas Natural SDG SA		5,948		116
Grifols SA		2,531		105
Grifols SA, Class B		126		4
Iberdrola SA		103,127		686
Industria de Diseno Textil SA		27,630		926
International Consolidated Airlines Group SA (f)		115,956		1,036
Red Electrica Corp., SA		3,217		267
Repsol SA		16,546		193
Telefonica SA		71,322		864
				9,906

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
Sweden (0.9%)
Assa Abloy AB, Class B		9,837	$	177
Atlas Copco AB, Class A		9,926		239
Atlas Copco AB, Class B		7,174		161
Electrolux AB, Class B		2,950		83
Hennes & Mauritz AB, Class B		10,362		379
Husqvarna AB, Class B		5,449		36
Investor AB, Class B		11,790		406
Millicom International Cellular SA SDR		1,326		83
Modern Times Group MTG AB, Class B		443		11
Nordea Bank AB		27,656		309
Sandvik AB		15,296		131
Skandinaviska Enskilda Banken AB, Class A		14,978		160
Skanska AB, Class B		3,281		64
SKF AB, Class B		6,298		116
Svenska Cellulosa AB SCA, Class B		8,585		241
Svenska Handelsbanken AB, Class A		17,218		247
Swedbank AB, Class A		5,373		119
Swedish Match AB		4,201		127
Telefonaktiebolaget LM Ericsson, Class B		25,830		254
TeliaSonera AB		31,426		170
Volvo AB, Class B		8,272		79
				3,592
Switzerland (3.3%)
ABB Ltd. (Registered) (f)		37,474		664
Actelion Ltd. (Registered) (f)		1,056		134
Adecco SA (Registered) (f)		16,636		1,220
Cie Financiere Richemont SA (Registered)		5,331		415
Coca-Cola HBC AG (f)		667		14
Credit Suisse Group AG (Registered) (f)		16,331		393
Geberit AG (Registered)		894		274
Givaudan SA (Registered) (f)		99		161
Julius Baer Group Ltd. (f)		2,309		105
Kuehne & Nagel International AG (Registered)		732		94
LafargeHolcim Ltd. (Registered) (f)		4,228		221
LafargeHolcim Ltd. (Registered) (f)		343		18
Lonza Group AG (Registered) (f)		523		69
Nestle SA (Registered)		38,089		2,868
Novartis AG (Registered)		23,572		2,171
Roche Holding AG (Genusschein)		6,415		1,696
SGS SA (Registered)		60		105
Sonova Holding AG (Registered)		957		123
Swatch Group AG (The)		353		131
Swiss Re AG		1,336		115
Swisscom AG (Registered)		745		373
Syngenta AG (Registered)		914		294
Transocean Ltd.		3,245		42
UBS Group AG (Registered)		30,443		564
Zurich Insurance Group AG (f)		2,528		622
				12,886
Turkey (0.0%)
Alacer Gold Corp. (f)		8,000		18

	Shares		Value (000)
United Kingdom (5.9%)
3i Group PLC		17,668	$	125
Admiral Group PLC		3,778		86
Aggreko PLC		2,431		35
Amec Foster Wheeler PLC		3,969		43
Anglo American PLC		12,293		103
ARM Holdings PLC		14,750		213
Associated British Foods PLC		1,859		94
AstraZeneca PLC		16,441		1,043
Aviva PLC		32,168		220
Babcock International Group PLC		4,000		55
BAE Systems PLC		51,079		347
Barclays PLC		174,173		644
BG Group PLC		32,584		470
BHP Billiton PLC		20,867		319
BP PLC		189,666		961
British American Tobacco PLC		19,566		1,081
British Land Co., PLC REIT		12,968		165
BT Group PLC		102,679		653
Burberry Group PLC		4,196		87
Cairn Energy PLC (f)		6,451		14
Capita PLC		6,586		120
Centrica PLC		52,229		181
Compass Group PLC		19,815		316
Diageo PLC		24,702		665
Experian PLC		11,615		186
G4S PLC		14,808		52
GlaxoSmithKline PLC		58,621		1,124
Glencore PLC (f)		65,300		91
HSBC Holdings PLC		171,175		1,295
Imperial Tobacco Group PLC		10,308		533
Indivior PLC		6,915		24
Inmarsat PLC		4,106		61
Intertek Group PLC		1,847		68
Investec PLC		9,538		73
ITV PLC		32,244		120
Johnson Matthey PLC		2,335		87
Land Securities Group PLC REIT		12,437		237
Legal & General Group PLC		64,615		233
Liberty Global PLC LiLAC, Class A (f)		107		4
Liberty Global PLC LiLAC Series C (f)		290		10
Lloyds Banking Group PLC		409,276		467
Lonmin PLC (f)		2,693		1
Man Group PLC		15,236		35
Marks & Spencer Group PLC		10,082		77
National Grid PLC		35,017		488
Next PLC		1,962		226
Old Mutual PLC		76,950		221
Pearson PLC		12,902		220
Petrofac Ltd.		3,181		37
Prudential PLC		31,720		671
Randgold Resources Ltd.		924		54
Reckitt Benckiser Group PLC		6,915		628

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United Kingdom (cont'd)
RELX PLC		3,587	$	62
Rio Tinto PLC		13,589		456
Rolls-Royce Holdings PLC (f)		34,143		351
Royal Bank of Scotland Group PLC (f)		22,325		107
Royal Dutch Shell PLC, Class A		35,881		846
Royal Dutch Shell PLC, Class B		27,048		642
RSA Insurance Group PLC		15,957		97
Serco Group PLC (f)		11,756		18
Shire PLC		5,464		373
Signet Jewelers Ltd.		700		95
Sky PLC		8,242		130
Smith & Nephew PLC		10,250		179
Smiths Group PLC		6,229		95
SSE PLC		17,723		402
Standard Chartered PLC		21,901		213
Standard Life PLC		15,169		89
Tesco PLC		78,475		218
Tullow Oil PLC (f)		8,851		23
Unilever PLC		13,299		542
Vedanta Resources PLC		1,623		10
Verizon Communications, Inc.		14,424		628
Verizon Communications, Inc.		15,926		696
Vodafone Group PLC		330,304		1,044
WM Morrison Supermarkets PLC		20,218		51
Wolseley PLC		3,226		189
WPP PLC		28,743		599
				23,518
United States (26.8%)
3M Co.		1,991		282
Abbott Laboratories		6,112		246
AbbVie, Inc.		6,112		333
Abercrombie & Fitch Co., Class A		249		5
Accenture PLC, Class A		3,825		376
ACCO Brands Corp. (f)		104		1
Adobe Systems, Inc. (f)		3,963		326
ADT Corp. (The)		404		12
Advance Auto Parts, Inc.		249		47
Advanced Micro Devices, Inc. (f)		2,880		5
AES Corp.		793		8
Aetna, Inc.		2,746		300
Aflac, Inc.		301		18
Agilent Technologies, Inc.		2,179		75
Air Products & Chemicals, Inc.		277		35
Airgas, Inc.		294		26
Akamai Technologies, Inc. (f)		1,312		91
Alamos Gold, Inc., Class A (f)		8,160		30
Alcoa, Inc.		3,980		38
Alexion Pharmaceuticals, Inc. (f)		1,301		203
Allegheny Technologies, Inc.		535		8
Allegion PLC		242		14
Allergan PLC (f)		989		269
Allstate Corp. (The)		643		37

	Shares		Value (000)
Alpha Natural Resources, Inc. (f)		984	$	—	@
Alphabet, Inc., Class A		1,783		1,138
Alphabet, Inc., Class C		1,787		1,087
Altera Corp.		4,541		227
Altria Group, Inc.		9,846		536
Amazon.com, Inc. (f)		1,570		804
AMC Networks, Inc., Class A (f)		21		2
Ameren Corp.		2,392		101
American Electric Power Co., Inc.		4,394		250
American Express Co.		3,791		281
American Tower Corp. REIT		3,760		331
Ameriprise Financial, Inc.		2,379		260
AmerisourceBergen Corp.		3,671		349
AMETEK, Inc.		916		48
Amgen, Inc.		5,917		818
Amphenol Corp., Class A		312		16
Anadarko Petroleum Corp.		3,141		190
Analog Devices, Inc.		3,957		223
Annaly Capital Management, Inc. REIT		2,258		22
Anthem, Inc.		1,787		250
Aon PLC		200		18
Apache Corp.		2,774		109
Apollo Education Group, Inc., Class A (f)		636		7
Apple, Inc.		54,863		6,051
Applied Materials, Inc.		7,649		112
Arch Coal, Inc. (f)		97		—	@
Archer-Daniels-Midland Co.		3,243		134
AT&T, Inc.		45,493		1,482
Automatic Data Processing, Inc.		1,770		142
AutoZone, Inc. (f)		257		186
Avago Technologies Ltd.		1,565		196
AvalonBay Communities, Inc. REIT		1,467		256
Avery Dennison Corp.		1,548		88
Avon Products, Inc.		4,575		15
Baker Hughes, Inc.		3,795		198
Ball Corp.		799		50
Bank of America Corp.		96,010		1,496
Bank of New York Mellon Corp. (The)		11,084		434
Baxalta, Inc.		4,320		136
Baxter International, Inc.		4,320		142
BB&T Corp.		6,760		241
Becton Dickinson and Co.		2,022		268
Bed Bath & Beyond, Inc. (f)		2,980		170
Berkshire Hathaway, Inc., Class B (f)		754		98
Best Buy Co., Inc.		4,446		165
Biogen, Inc. (f)		1,524		445
Blackhawk Network Holdings, Inc. (f)		53		2
BlackRock, Inc.		987		294
Bloomin' Brands, Inc.		1,100		20
Boeing Co. (The)		3,519		461
Boston Properties, Inc. REIT		1,316		156
Boston Scientific Corp. (f)		11,397		187
Bristol-Myers Squibb Co.		8,539		506

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Broadcom Corp., Class A		5,852	$	301
Brookfield Property Partners LP		2,480		53
Brown-Forman Corp., Class B		31		3
Bunge Ltd.		646		47
C.H. Robinson Worldwide, Inc.		1,227		83
CA, Inc.		1,975		54
Cablevision Systems Corp.		2,912		95
California Resources Corp.		2,926		8
Cameron International Corp. (f)		1,723		106
Campbell Soup Co.		222		11
Capital One Financial Corp.		3,777		274
Cardinal Health, Inc.		3,321		255
Care Capital Properties, Inc. REIT		161		5
CarMax, Inc. (f)		777		46
Carnival Corp.		2,209		110
Carter's, Inc.		500		45
Caterpillar, Inc.		4,687		306
CBRE Group, Inc., Class A (f)		5,889		188
CBS Corp., Class B		6,101		243
CDK Global, Inc.		590		28
Celanese Corp. Series A		220		13
Celgene Corp. (f)		5,522		597
CenterPoint Energy, Inc.		4,776		86
CenturyLink, Inc.		3,810		96
Cerner Corp. (f)		2,212		133
CF Industries Holdings, Inc.		3,280		147
Charles Schwab Corp. (The)		6,833		195
Chemours Co. (The)		314		2
Chesapeake Energy Corp.		4,434		33
Chevron Corp.		9,865		778
Chipotle Mexican Grill, Inc. (f)		223		161
Chubb Corp. (The)		284		35
Cigna Corp.		2,266		306
Cintas Corp.		1,294		111
Cisco Systems, Inc.		44,042		1,156
CIT Group, Inc.		1,855		74
Citigroup, Inc.		17,152		851
Citizens Financial Group, Inc.		200		5
Citrix Systems, Inc. (f)		1,779		123
Cliffs Natural Resources, Inc.		777		2
Clorox Co. (The)		1,259		145
CME Group, Inc.		211		20
Coach, Inc.		1,453		42
Coca-Cola Co.		29,991		1,203
Coca-Cola Enterprises, Inc.		1,705		82
Coeur Mining, Inc. (f)		4,330		12
Cognizant Technology Solutions Corp., Class A (f)		5,518		345
Colgate-Palmolive Co.		8,894		564
Columbia Pipeline Group, Inc.		64		1
Comcast Corp., Class A		12,874		732
Comcast Corp. Special Class A		3,675		210
Comerica, Inc.		322		13

	Shares		Value (000)
ConAgra Foods, Inc.		3,063	$	124
Concho Resources, Inc. (f)		680		67
ConocoPhillips		7,365		353
CONSOL Energy, Inc.		1,769		17
Consolidated Edison, Inc.		2,186		146
Constellation Brands, Inc., Class A		233		29
Corning, Inc.		4,684		80
Costco Wholesale Corp.		5,851		846
CR Bard, Inc.		651		121
Crimson Wine Group Ltd. (f)		181		2
Crown Castle International Corp. REIT		2,796		221
Crown Holdings, Inc. (f)		600		27
CST Brands, Inc.		219		7
CSX Corp.		6,508		175
Cummins, Inc.		1,721		187
CVS Health Corp.		1,481		143
Danaher Corp.		617		53
Darden Restaurants, Inc.		1,724		118
DaVita HealthCare Partners, Inc. (f)		1,292		93
Deere & Co.		2,818		209
Denbury Resources, Inc.		734		2
Devon Energy Corp.		2,222		82
DeVry Education Group, Inc.		21		1
Diamond Offshore Drilling, Inc.		43		1
Discover Financial Services		3,469		180
Discovery Communications, Inc., Class A (f)		1,542		40
Discovery Communications, Inc., Class C (f)		4,048		98
Dollar General Corp.		2,686		195
Dollar Tree, Inc. (f)		2,825		188
Dominion Resources, Inc.		5,823		410
Dover Corp.		226		13
Dow Chemical Co. (The)		2,080		88
Dr. Pepper Snapple Group, Inc.		911		72
DTE Energy Co.		1,490		120
Duke Energy Corp.		4,662		335
Dun & Bradstreet Corp. (The)		726		76
Eastman Chemical Co.		282		18
Eaton Corp., PLC		2,248		115
eBay, Inc. (f)		7,767		190
Ecolab, Inc.		1,468		161
Edison International		3,827		241
Edwards Lifesciences Corp. (f)		221		31
EI du Pont de Nemours & Co.		1,572		76
Eli Lilly & Co.		4,733		396
EMC Corp.		17,097		413
Emerson Electric Co.		4,765		210
Engility Holdings, Inc.		18		—	@
Entergy Corp.		1,290		84
EOG Resources, Inc.		4,252		310
EQT Corp.		859		56
Equifax, Inc.		1,461		142
Equity Residential REIT		2,833		213
Estee Lauder Cos., Inc. (The), Class A		2,959		239

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Exelon Corp.		7,330	$	218
Expedia, Inc.		232		27
Expeditors International of Washington, Inc.		656		31
Express Scripts Holding Co. (f)		6,526		528
Exxon Mobil Corp.		24,186		1,798
Fastenal Co.		1,771		65
FedEx Corp.		1,614		232
Fidelity National Information Services, Inc.		111		7
Fifth Third Bancorp		9,371		177
First Republic Bank		100		6
First Solar, Inc. (f)		295		13
FirstEnergy Corp.		3,256		102
Fiserv, Inc. (f)		1,436		124
Flowserve Corp.		900		37
Fluor Corp.		726		31
FMC Corp.		882		30
FMC Technologies, Inc. (f)		2,371		74
Ford Motor Co.		9,829		133
Franklin Resources, Inc.		3,508		131
Freeport-McMoRan, Inc.		2,760		27
Frontier Communications Corp.		9,547		45
G-III Apparel Group Ltd. (f)		400		25
GameStop Corp., Class A		536		22
Gannett Co., Inc.		116		2
Gap, Inc. (The)		5,096		145
General Dynamics Corp.		1,241		171
General Electric Co.		21,678		547
General Growth Properties, Inc. REIT		1,246		32
General Mills, Inc.		4,974		279
Genuine Parts Co.		111		9
Gilead Sciences, Inc.		9,180		901
Goldman Sachs Group, Inc. (The)		4,552		791
H&R Block, Inc.		5,837		211
Halliburton Co.		6,838		242
Halyard Health, Inc. (f)		455		13
Hanesbrands, Inc.		3,400		98
Harman International Industries, Inc.		43		4
Harris Corp.		23		2
Hartford Financial Services Group, Inc. (The)		228		10
Hasbro, Inc.		176		13
HCP, Inc. REIT		1,686		63
Hecla Mining Co.		12,030		24
Helmerich & Payne, Inc.		880		42
Henry Schein, Inc. (f)		680		90
Hershey Co. (The)		648		60
Hess Corp.		1,339		67
Hewlett-Packard Co.		11,406		292
Hologic, Inc. (f)		1,396		55
Home Depot, Inc.		1,231		142
Honeywell International, Inc.		5,030		476
Host Hotels & Resorts, Inc. REIT		8,371		132
Hudson City Bancorp, Inc.		522		5

	Shares		Value (000)
Humana, Inc.		704	$	126
Huntington Bancshares, Inc.		1,200		13
Huntington Ingalls Industries, Inc.		59		6
IAMGOLD Corp. (f)		10,670		17
IHS, Inc., Class A (f)		672		78
Illinois Tool Works, Inc.		2,374		195
Illumina, Inc. (f)		642		113
Ingersoll-Rand PLC		1,027		52
Intel Corp.		18,976		572
Intercontinental Exchange, Inc.		678		159
International Business Machines Corp.		7,771		1,127
International Flavors & Fragrances, Inc.		253		26
International Game Technology PLC		519		8
International Paper Co.		730		28
Interpublic Group of Cos., Inc. (The)		5,001		96
Intuit, Inc.		3,122		277
Intuitive Surgical, Inc. (f)		635		292
Invesco Ltd.		3,781		118
Iron Mountain, Inc. REIT		2,578		80
ITT Corp.		219		7
Jabil Circuit, Inc.		222		5
Jacobs Engineering Group, Inc. (f)		851		32
Janus Capital Group, Inc.		111		2
JB Hunt Transport Services, Inc.		228		16
JC Penney Co., Inc. (f)		222		2
JM Smucker Co. (The)		779		89
Johnson & Johnson		14,548		1,358
Johnson Controls, Inc.		2,148		89
Joy Global, Inc.		241		4
JPMorgan Chase & Co.		41,877		2,553
Juniper Networks, Inc.		5,831		150
KBR, Inc.		1,102		18
Kellogg Co.		2,040		136
KeyCorp		11,615		151
Keysight Technologies, Inc. (f)		1,089		34
Kimberly-Clark Corp.		3,747		409
Kimco Realty Corp. REIT		2,319		57
KLA-Tencor Corp.		889		44
Knowles Corp. (f)		113		2
Kohl's Corp.		3,449		160
Kraft Heinz Co. (The)		2,845		201
Kroger Co. (The)		13,150		474
L Brands, Inc.		4,631		417
L-3 Communications Holdings, Inc.		111		12
Laboratory Corp. of America Holdings (f)		649		70
Lam Research Corp.		742		48
Las Vegas Sands Corp.		2,035		77
Legg Mason, Inc.		1,764		73
Leucadia National Corp.		2,212		45
Lexmark International, Inc., Class A		111		3
Li & Fung Ltd. (g)		40,000		31
Liberty Global PLC, Class A (f)		2,141		92
Liberty Global PLC Series C (f)		5,809		238

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Liberty Property Trust REIT		529	$	17
Linear Technology Corp.		1,699		69
Lockheed Martin Corp.		883		183
Loews Corp.		586		21
Lowe's Cos., Inc.		6,273		432
LyondellBasell Industries N.V., Class A		854		71
M&T Bank Corp.		1,132		138
Macerich Co. (The) REIT		287		22
Macy's, Inc.		3,073		158
Mallinckrodt PLC (f)		224		14
Manpowergroup, Inc.		1,329		109
Marathon Oil Corp.		3,805		59
Marathon Petroleum Corp.		4,006		186
Marriott International, Inc., Class A		4,025		275
Marriott Vacations Worldwide Corp.		194		13
Marsh & McLennan Cos., Inc.		686		36
Marvell Technology Group Ltd.		2,949		27
Mastercard, Inc., Class A		9,790		882
Mattel, Inc.		1,565		33
Maxim Integrated Products, Inc.		1,570		52
McDonald's Corp.		5,282		520
McGraw Hill Financial, Inc.		3,315		287
McKesson Corp.		1,741		322
Mead Johnson Nutrition Co.		1,533		108
Medtronic PLC		9,342		625
Men's Wearhouse, Inc. (The)		400		17
Merck & Co., Inc.		15,239		753
MetLife, Inc.		870		41
MGM Resorts International (f)		2,334		43
Microchip Technology, Inc.		803		35
Micron Technology, Inc. (f)		5,496		82
Microsoft Corp.		39,320		1,740
Molson Coors Brewing Co., Class B		1,287		107
Mondelez International, Inc., Class A		8,338		349
Monsanto Co.		2,786		238
Moody's Corp.		1,255		123
Mosaic Co. (The)		1,508		47
Motorola Solutions, Inc.		1,299		89
Murphy Oil Corp.		914		22
Murphy USA, Inc. (f)		228		13
Mylan N.V. (f)		1,701		69
NASDAQ, Inc.		2,792		149
National Oilwell Varco, Inc.		3,989		150
Navient Corp.		5,330		60
NetApp, Inc.		3,516		104
Netflix, Inc. (f)		1,575		163
NetScout Systems, Inc. (f)		7,373		261
New York Community Bancorp, Inc.		4,771		86
Newfield Exploration Co. (f)		736		24
Newmont Mining Corp.		10,631		171
News Corp., Class A		3,791		48
News Corp., Class B		725		9

	Shares		Value (000)
NextEra Energy, Inc.		3,087	$	301
NIKE, Inc., Class B		3,126		384
NiSource, Inc.		64		1
Noble Corp., PLC		871		10
Noble Energy, Inc.		2,900		88
Nordstrom, Inc.		1,810		130
Norfolk Southern Corp.		3,830		293
Northern Trust Corp.		33		2
Northrop Grumman Corp.		839		139
NOW, Inc. (f)		847		13
Nucor Corp.		866		33
NVIDIA Corp.		3,556		88
O'Reilly Automotive, Inc. (f)		1,033		258
Occidental Petroleum Corp.		7,317		484
Omnicom Group, Inc.		1,961		129
ONE Gas, Inc.		642		29
ONEOK, Inc.		2,770		89
Oracle Corp.		24,511		885
Owens-Illinois, Inc. (f)		262		5
PACCAR, Inc.		2,826		147
Paragon Offshore PLC		323		—	@
Patterson Cos., Inc.		176		8
Paychex, Inc.		1,753		84
PayPal Holdings, Inc. (f)		7,767		241
Peabody Energy Corp.		2,523		3
Pentair PLC		189		10
People's United Financial, Inc.		767		12
Pepco Holdings, Inc.		94		2
PepsiCo, Inc.		7,337		692
Perrigo Co., PLC		221		35
Pfizer, Inc.		30,729		965
PG&E Corp.		3,537		187
Philip Morris International, Inc.		8,370		664
Phillips 66		3,793		291
Pioneer Natural Resources Co.		1,022		124
Pitney Bowes, Inc.		2,781		55
Plum Creek Timber Co., Inc. REIT		758		30
PNC Financial Services Group, Inc. (The)		4,569		408
PPG Industries, Inc.		444		39
PPL Corp.		4,362		143
Praxair, Inc.		1,529		156
Precision Castparts Corp.		993		228
Priceline Group, Inc. (The) (f)		258		319
Procter & Gamble Co. (The)		20,928		1,506
Progressive Corp. (The)		259		8
ProLogis, Inc. REIT		4,009		156
Prudential Financial, Inc.		200		15
Public Service Enterprise Group, Inc.		4,394		185
Public Storage REIT		2,766		585
QEP Resources, Inc.		1,263		16
QUALCOMM, Inc.		12,926		695
Quest Diagnostics, Inc.		970		60
Ralph Lauren Corp.		47		6

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
Range Resources Corp.		1,297	$	42
Rayonier Advanced Materials, Inc.		175		1
Rayonier, Inc. REIT		525		12
Raytheon Co.		974		106
Regency Centers Corp. REIT		251		16
Regions Financial Corp.		15,679		141
Republic Services, Inc.		3,058		126
Reynolds American, Inc.		7,272		322
Robert Half International, Inc.		1,760		90
Rockwell Automation, Inc.		1,462		148
Rockwell Collins, Inc.		832		68
Roper Industries, Inc.		256		40
Ross Stores, Inc.		6,400		310
Rouse Properties, Inc. REIT		71		1
Royal Caribbean Cruises Ltd.		1,578		141
Royal Gold, Inc.		2,010		94
RR Donnelley & Sons Co.		2,904		42
Salesforce.com, Inc. (f)		4,496		312
SanDisk Corp.		2,918		159
Schlumberger Ltd.		11,025		760
Scripps Networks Interactive, Inc., Class A		781		38
Sealed Air Corp.		287		13
Sempra Energy		2,203		213
Seventy Seven Energy, Inc. (f)		295		—	@
Sherwin-Williams Co. (The)		61		14
Sibanye Gold Ltd. ADR		6,800		32
Sigma-Aldrich Corp.		266		37
Simon Property Group, Inc. REIT		4,828		887
SLM Corp. (f)		5,330		39
Southern Co. (The)		6,830		305
Southwest Airlines Co.		578		22
Southwestern Energy Co. (f)		3,562		45
Spectra Energy Corp.		4,622		121
Sprint Corp. (f)		23,734		91
St. Jude Medical, Inc.		3,126		197
Stanley Black & Decker, Inc.		258		25
Staples, Inc.		5,838		68
Starbucks Corp.		9,604		546
Starwood Hotels & Resorts Worldwide, Inc.		784		52
State Street Corp.		2,968		199
Stericycle, Inc. (f)		717		100
Steven Madden Ltd. (f)		500		18
Stryker Corp.		2,747		259
SunTrust Banks, Inc.		5,417		207
Symantec Corp.		6,562		128
Sysco Corp.		7,022		274
T-Mobile US, Inc. (f)		116		5
T. Rowe Price Group, Inc.		3,131		218
Tahoe Resources, Inc.		6,950		54
Talen Energy Corp. (f)		544		6
Target Corp.		7,788		613
TE Connectivity Ltd.		2,800		168

	Shares		Value (000)
TEGNA, Inc.		233	$	5
Tenaris SA		4,172		50
Tenet Healthcare Corp. (f)		131		5
Texas Instruments, Inc.		11,405		565
Textron, Inc.		1,722		65
Thermo Fisher Scientific, Inc.		2,804		343
Tiffany & Co.		261		20
Time Warner Cable, Inc.		3,149		565
Time Warner, Inc.		6,509		448
Time, Inc.		751		14
TJX Cos., Inc. (The)		10,240		731
Travelers Cos., Inc. (The)		628		63
TripAdvisor, Inc. (f)		232		15
Twenty-First Century Fox, Inc., Class A		15,165		409
Twenty-First Century Fox, Inc., Class B		3,302		89
Tyco International PLC		1,309		44
Tyson Foods, Inc., Class A		2,358		102
Ultra Petroleum Corp. (f)		1,210		8
Union Pacific Corp.		4,270		378
United Parcel Service, Inc., Class B		3,720		367
United States Steel Corp.		541		6
United Technologies Corp.		2,773		247
UnitedHealth Group, Inc.		5,012		581
Urban Edge Properties REIT		154		3
Urban Outfitters, Inc. (f)		1,286		38
US Bancorp		15,773		647
Valero Energy Corp.		3,771		227
Varian Medical Systems, Inc. (f)		827		61
Vectrus, Inc. (f)		12		—	@
Ventas, Inc. REIT		647		36
Verisk Analytics, Inc., Class A (f)		1,688		125
Veritiv Corp. (f)		15		1
Vertex Pharmaceuticals, Inc. (f)		642		67
VF Corp.		2,412		165
Viacom, Inc., Class B		3,763		162
Visa, Inc., Class A		12,428		866
Vornado Realty Trust REIT		209		19
Wal-Mart Stores, Inc.		21,361		1,385
Walgreens Boots Alliance, Inc.		10,358		861
Walt Disney Co. (The)		10,374		1,060
Waste Management, Inc.		3,829		191
Waters Corp. (f)		221		26
Weatherford International PLC (f)		4,676		40
WEC Energy Group, Inc.		3,070		160
Wells Fargo & Co.		43,727		2,245
Welltower, Inc.		717		49
Western Union Co. (The)		5,969		110
WestRock Co.		180		9
Weyerhaeuser Co. REIT		2,179		60
Whole Foods Market, Inc.		4,346		138
Williams Cos., Inc. (The)		7,831		289
Williams-Sonoma, Inc.		800		61
WP GLIMCHER, Inc. REIT		2,364		28

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

	Shares		Value (000)
United States (cont'd)
WPX Energy, Inc. (f)		3,705	$	25
WW Grainger, Inc.		688		148
Wyndham Worldwide Corp.		208		15
Wynn Resorts Ltd.		740		39
Xcel Energy, Inc.		4,316		153
Xerox Corp.		5,856		57
Xilinx, Inc.		1,708		72
Xylem, Inc.		1,738		57
Yahoo!, Inc. (f)		6,499		188
Yum! Brands, Inc.		3,489		279
Zimmer Biomet Holdings, Inc.		1,737		163
Zions Bancorporation		222		6
Zoetis, Inc.		9,664		398
				106,476
Total Common Stocks (Cost $215,659)				241,288
Investment Companies (0.1%)
United States (0.1%)
iShares MSCI Emerging Markets Index Fund		8,000		262
Morgan Stanley Institutional Fund, Inc. — Emerging Markets Portfolio (See Note G)		4,916		98
Total Investment Companies (Cost $500)				360
	No. of Rights
Rights (0.0%)
United States (0.0%)
Safeway Casa Ley CVR (f)		577		1
Safeway PDC, LLC CVR (f)		577		—	@
Total Rights (Cost $1)				1
	No. of Warrants
Warrant (0.0%)
France (0.0%)
Peugeot SA, expires 4/29/17 (f) (Cost $1)		1,221		3
	Shares
Short-Term Investments (9.5%)
Investment Company (7.7%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $30,788)		30,787,666		30,788
	Face Amount (000)
U.S. Treasury Security (1.8%)
U.S. Treasury Bill,
0.26%, 3/10/16 (j)(k) (Cost $7,087)	$	7,095		7,094
Total Short-Term Investments (Cost $37,875)				37,882
Total Investments (99.6%) (Cost $371,983) (l)(m)(n)				395,661
Other Assets in Excess of Liabilities (0.4%)				1,623
Net Assets (100.0%)			$	397,284

(a) Security is subject to delayed delivery.

(b) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on September 30, 2015.

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

(d) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of September 30, 2015.

(e) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of September 30, 2015. Maturity date disclosed is the ultimate maturity date.

(f) Non-income producing security.

(g) Security trades on the Hong Kong exchange.

(h) At September 30, 2015, the Portfolio held a fair valued security valued at approximately $6,000, 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 Fund's Trustees.

(i) Security has been deemed illiquid at September 30, 2015.

(j) Rate shown is the yield to maturity at September 30, 2015.

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

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

(m) The approximate fair value and percentage of net assets, $124,809,000 and 31.4%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(n) At September 30, 2015, the aggregate cost for Federal income tax purposes is approximately $381,055,000. The aggregate gross unrealized appreciation is approximately $43,627,000 and the aggregate gross unrealized depreciation is approximately $29,021,000 resulting in net unrealized appreciation of approximately $14,606,000.

@ Value is less than $500.

ADR American Depositary Receipt.

CVA Certificaten Van Aandelen.

IO Interest Only.

MTN Medium Term Note.

OAT Obligations Assimilables du Trésor (French Treasury Obligation).

REIT Real Estate Investment Trust.

REMIC Real Estate Mortgage Investment Conduit.

SDR Swedish Depositary Receipt.

TBA To Be Announced.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at September 30, 2015:

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
Citibank NA	NOK	3,350	$	394	10/5/15	USD	403	$	403	$	9
Citibank NA	USD	5,549		5,549	10/5/15	EUR	4,928		5,506		(43	)
Deutsche Bank AG	EUR	665		743	10/5/15	CHF	720		739		(4	)
Deutsche Bank AG	EUR	612		683	10/5/15	PLN	2,600		684		1
Deutsche Bank AG	EUR	754		842	10/5/15	USD	838		838		(4	)
Deutsche Bank AG	GBP	415		628	10/5/15	EUR	564		630		2
Deutsche Bank AG	MXN	18,220		1,077	10/5/15	USD	1,077		1,077		(—	@)
Deutsche Bank AG	PLN	3,157		831	10/5/15	USD	838		838		7
Deutsche Bank AG	USD	223		223	10/5/15	CHF	214		220		(3	)
Deutsche Bank AG	USD	1,029		1,029	10/5/15	GBP	672		1,016		(13	)
Deutsche Bank AG	USD	84		84	10/5/15	GBP	55		84		(—	@)
HSBC Bank PLC	GBP	320		484	10/5/15	USD	489		489		5
HSBC Bank PLC	NZD	6,131		3,919	10/5/15	USD	3,877		3,877		(42	)
HSBC Bank PLC	NZD	580		371	10/5/15	USD	365		365		(6	)
JPMorgan Chase Bank NA	CAD	979		734	10/5/15	USD	733		733		(1	)
JPMorgan Chase Bank NA	GBP	80		122	10/5/15	EUR	109		122		—	@
JPMorgan Chase Bank NA	KRW	1,658,797		1,399	10/5/15	USD	1,398		1,398		(1	)
JPMorgan Chase Bank NA	NZD	717		458	10/5/15	USD	452		452		(6	)
JPMorgan Chase Bank NA	SEK	2,850		341	10/5/15	EUR	299		334		(7	)
JPMorgan Chase Bank NA	USD	23		23	10/5/15	EUR	21		23		(—	@)
JPMorgan Chase Bank NA	USD	16		16	10/5/15	EUR	14		16		—	@
JPMorgan Chase Bank NA	USD	15		15	10/5/15	JPY	1,844		15		(—	@)
JPMorgan Chase Bank NA	USD	610		610	10/5/15	NOK	5,232		615		5
JPMorgan Chase Bank NA	USD	320		320	10/5/15	SEK	2,712		324		4
JPMorgan Chase Bank NA	ZAR	174		13	10/5/15	USD	13		13		—	@
UBS AG	CAD	1,915		1,435	10/5/15	USD	1,458		1,458		23
UBS AG	CHF	214		220	10/5/15	USD	220		220		(—	@)
UBS AG	JPY	34,583		289	10/5/15	USD	289		289		—	@
UBS AG	USD	7		7	10/5/15	EUR	6		7		(—	@)
UBS AG	USD	28		28	10/5/15	EUR	25		28		(—	@)
UBS AG	USD	41		41	10/5/15	EUR	36		41		(—	@)
UBS AG	USD	10,598		10,598	10/5/15	JPY	1,269,339		10,581		(17	)
UBS AG	USD	1,401		1,401	10/5/15	KRW	1,658,797		1,399		(2	)
UBS AG	USD	997		997	10/5/15	MXN	16,941		1,002		5
UBS AG	USD	1,952		1,952	10/5/15	NZD	3,099		1,981		29
UBS AG	USD	13		13	10/5/15	ZAR	174		13		(—	@)
UBS AG	ZAR	20,031		1,445	10/5/15	USD	1,486		1,486		41
Westpac Banking Corp.	USD	609		609	10/5/15	EUR	540		604		(5	)
JPMorgan Chase Bank NA	AUD	1,121		787	10/6/15	USD	790		790		3
JPMorgan Chase Bank NA	USD	743		743	10/6/15	AUD	1,059		743		(—	@)
Bank of America NA	EUR	2,567		2,869	10/15/15	USD	2,902		2,902		33
Bank of America NA	EUR	1,606		1,795	10/15/15	USD	1,797		1,797		2
Bank of America NA	JPY	171,352		1,429	10/15/15	USD	1,431		1,431		2
Bank of America NA	PLN	71		19	10/15/15	USD	19		19		—	@
Bank of America NA	USD	3,134		3,134	10/15/15	JPY	373,773		3,116		(18	)
Bank of Montreal	AUD	4,848		3,400	10/15/15	USD	3,431		3,431		31
Bank of Montreal	NZD	7,879		5,033	10/15/15	USD	4,953		4,953		(80	)
Bank of Montreal	USD	2,897		2,897	10/15/15	AUD	4,136		2,901		4
Bank of Montreal	USD	665		665	10/15/15	CAD	882		661		(4	)
Bank of Montreal	USD	1,041		1,041	10/15/15	EUR	916		1,024		(17	)
Bank of Montreal	USD	77		77	10/15/15	ILS	299		76		(1	)
Bank of Montreal	USD	2,907		2,907	10/15/15	NZD	4,575		2,922		15
Bank of Montreal	USD	586		586	10/15/15	NZD	918		586		(—	@)
Bank of Montreal	USD	29		29	10/15/15	TRY	88		29		—	@
Bank of New York Mellon	CHF	3,909		4,013	10/15/15	USD	4,020		4,020		7
Bank of New York Mellon	USD	3,745		3,745	10/15/15	SEK	31,031		3,709		(36	)
Barclays Bank PLC	AUD	2,133		1,496	10/15/15	USD	1,510		1,510		14
Barclays Bank PLC	CLP	85,916		123	10/15/15	USD	124		124		1

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
Barclays Bank PLC	EUR	257	$	287	10/15/15	USD	290	$	290	$	3
Barclays Bank PLC	USD	236		236	10/15/15	BRL	921		231		(5	)
Barclays Bank PLC	USD	523		523	10/15/15	BRL	2,094		526		3
Barclays Bank PLC	USD	8		8	10/15/15	SGD	12		8		(—	@)
Citibank NA	EUR	1,729		1,932	10/15/15	USD	1,950		1,950		18
Citibank NA	EUR	1,130		1,263	10/15/15	USD	1,271		1,271		8
Citibank NA	GBP	1,884		2,849	10/15/15	USD	2,919		2,919		70
Citibank NA	GBP	400		605	10/15/15	USD	614		614		9
Citibank NA	GBP	515		779	10/15/15	USD	780		780		1
Citibank NA	THB	143,760		3,959	10/15/15	USD	3,973		3,973		14
Citibank NA	USD	715		715	10/15/15	KRW	848,137		715		—	@
Citibank NA	USD	545		545	10/15/15	RUB	35,875		547		2
Citibank NA	USD	297		297	10/15/15	RUB	20,309		310		13
Citibank NA	USD	730		730	10/15/15	THB	26,119		720		(10	)
Citibank NA	USD	2,174		2,174	10/15/15	THB	78,351		2,158		(16	)
Commonwealth Bank of Australia	AUD	11,170		7,834	10/15/15	USD	7,907		7,907		73
Commonwealth Bank of Australia	USD	1,310		1,310	10/15/15	AUD	1,834		1,287		(23	)
Commonwealth Bank of Australia	USD	4,658		4,658	10/15/15	AUD	6,504		4,561		(97	)
Credit Suisse International	CHF	1,138		1,168	10/15/15	USD	1,170		1,170		2
Credit Suisse International	NZD	5,374		3,432	10/15/15	USD	3,378		3,378		(54	)
Credit Suisse International	USD	6,271		6,271	10/15/15	EUR	5,491		6,137		(134	)
Credit Suisse International	USD	671		671	10/15/15	ILS	2,604		664		(7	)
Credit Suisse International	USD	2,942		2,942	10/15/15	NZD	4,634		2,959		17
Deutsche Bank AG	CHF	9,357		9,605	10/15/15	USD	9,621		9,621		16
Deutsche Bank AG	HKD	9,440		1,218	10/15/15	USD	1,218		1,218		(—	@)
Deutsche Bank AG	HUF	9,057		33	10/15/15	USD	33		33		—	@
Deutsche Bank AG	NOK	3,381		397	10/15/15	USD	412		412		15
Deutsche Bank AG	PLN	1,384		364	10/15/15	USD	372		372		8
Deutsche Bank AG	USD	7,501		7,501	10/15/15	SEK	62,154		7,428		(73	)
Goldman Sachs International	EUR	3,927		4,389	10/15/15	USD	4,430		4,430		41
Goldman Sachs International	GBP	1,175		1,778	10/15/15	USD	1,781		1,781		3
Goldman Sachs International	JPY	444,993		3,709	10/15/15	USD	3,704		3,704		(5	)
Goldman Sachs International	USD	3,127		3,127	10/15/15	GBP	1,999		3,023		(104	)
JPMorgan Chase Bank NA	EUR	2,112		2,360	10/15/15	USD	2,382		2,382		22
JPMorgan Chase Bank NA	GBP	397		600	10/15/15	USD	616		616		16
JPMorgan Chase Bank NA	INR	83,530		1,271	10/15/15	USD	1,252		1,252		(19	)
JPMorgan Chase Bank NA	KRW	6,807,952		5,741	10/15/15	USD	5,733		5,733		(8	)
JPMorgan Chase Bank NA	USD	885		885	10/15/15	EUR	782		874		(11	)
JPMorgan Chase Bank NA	USD	1,336		1,336	10/15/15	INR	89,482		1,361		25
JPMorgan Chase Bank NA	USD	1,342		1,342	10/15/15	KRW	1,577,489		1,330		(12	)
JPMorgan Chase Bank NA	USD	1,592		1,592	10/15/15	KRW	1,851,834		1,562		(30	)
JPMorgan Chase Bank NA	USD	1,432		1,432	10/15/15	KRW	1,705,377		1,438		6
Northern Trust Company	USD	458		458	10/15/15	SGD	644		452		(6	)
State Street Bank and Trust Co.	CHF	4,195		4,306	10/15/15	USD	4,329		4,329		23
State Street Bank and Trust Co.	CHF	1,747		1,793	10/15/15	USD	1,829		1,829		36
State Street Bank and Trust Co.	JPY	269,609		2,247	10/15/15	USD	2,244		2,244		(3	)
State Street Bank and Trust Co.	THB	63,737		1,755	10/15/15	USD	1,762		1,762		7
State Street Bank and Trust Co.	USD	429		429	10/15/15	DKK	2,839		425		(4	)
State Street Bank and Trust Co.	USD	4,339		4,339	10/15/15	SEK	35,734		4,270		(69	)
State Street Bank and Trust Co.	USD	1,830		1,830	10/15/15	SEK	14,953		1,787		(43	)
State Street Bank and Trust Co.	USD	1,430		1,430	10/15/15	THB	51,790		1,426		(4	)
UBS AG	CHF	931		955	10/15/15	USD	958		958		3
UBS AG	CHF	568		582	10/15/15	USD	585		585		3
UBS AG	CHF	3,737		3,836	10/15/15	USD	3,843		3,843		7
UBS AG	EUR	3,334		3,725	10/15/15	USD	3,773		3,773		48
UBS AG	EUR	2,388		2,668	10/15/15	USD	2,693		2,693		25
UBS AG	EUR	1,329		1,486	10/15/15	USD	1,511		1,511		25
UBS AG	EUR	661		738	10/15/15	USD	737		737		(1	)
UBS AG	GBP	179		271	10/15/15	USD	278		278		7

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
UBS AG	GBP	789	$	1,194	10/15/15	USD	1,212	$	1,212	$	18
UBS AG	GBP	45		67	10/15/15	USD	69		69		2
UBS AG	IDR	3,984,135		271	10/15/15	USD	275		275		4
UBS AG	MXN	506		30	10/15/15	USD	30		30		—	@
UBS AG	TWD	4,342		132	10/15/15	USD	134		134		2
UBS AG	USD	937		937	10/15/15	SGD	1,316		924		(13	)
UBS AG	USD	485		485	10/15/15	TWD	16,027		487		2
UBS AG	USD	84		84	10/15/15	ZAR	1,132		82		(2	)
JPMorgan Chase Bank NA	USD	1,396		1,396	11/4/15	KRW	1,658,797		1,398		2
UBS AG	USD	220		220	11/4/15	CHF	214		220		—	@
Citibank NA	CNY	8,584		1,333	5/19/16	USD	1,376		1,376		43
Citibank NA	CNY	25,146		3,903	5/19/16	USD	4,029		4,029		126
Citibank NA	USD	459		459	5/19/16	CNY	2,981		462		3
Deutsche Bank AG	CNY	16,764		2,601	5/19/16	USD	2,686		2,686		85
			$	216,559				$	216,595	$	36

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2015:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
Amsterdam Index (Netherlands)		3	$	282		Oct-15	$	(10	)
Australian 10 yr. Bond (Australia)		8		727		Dec-15		5
CAC 40 Index (France)		7		348		Oct-15		(4	)
Euro Stoxx 50 Index (Germany)		456		15,750		Dec-15		(80	)
Gold Futures (United States)		44		4,907		Dec-15		(108	)
MSCI Emerging Market E Mini (United States)		282		11,155		Dec-15		(293	)
MSCI Singapore Free Index (Singapore)		36		1,581		Oct-15		(19	)
NIKKEI 225 (United States)		24		1,750		Dec-15		8
OMXS 30 (Sweden)		19		321		Oct-15		(11	)
S&P 500 E MINI Index (United States)		188		17,942		Dec-15		(76	)
U.S. Dollar Index (United States)		75		7,236		Dec-15		63
U.S. Treasury 5 yr. Note (United States)		80		9,641		Dec-15		56
U.S. Treasury Ultra Long Bond (United States)		87		13,955		Dec-15		(218	)
Short:
Copper Futures (United States)		20		(1,170	)	Dec-15		(47	)
FTSE 100 Index (United Kingdom)		80		(7,284	)	Dec-15		198
German Euro Bund (Germany)		12		(2,094	)	Dec-15		(30	)
Hang Seng Index (Hong Kong)		3		(402	)	Oct-15		9
IBEX 35 Index (Spain)		40		(4,264	)	Oct-15		76
S&P TSX 60 Index (Canada)		3		(351	)	Dec-15		(—	@)
SPI 200 Index (Australia)		5		(439	)	Dec-15		6
TOPIX Index (Japan)		30		(3,530	)	Dec-15		157
U.S. Treasury 10 yr. Note (United States)		347		(44,671	)	Dec-15		(224	)
U.S. Treasury Long Bond (United States)		11		(1,731	)	Dec-15		(40	)
U.S. Treasury Ultra Long Bond (United States)		17		(2,727	)	Dec-15		(42	)
UK Long Gilt Bond (United Kingdom)		11		(1,981	)	Dec-15		(36	)
							$	(660	)

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 2015:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Appreciation (Depreciation) (000)			Value (000)			Credit Rating of Reference Obligation† (Unaudited)
Barclays Bank PLC Russian Federation	Sell	$	3,582		1.00	%	12/20/20	$	(442	)	$	38		$	(404	)	BBB-
Goldman Sachs International People's Republic of China	Buy		6,859		1.00		12/20/20		87			(1	)		86		AA-
Goldman Sachs International Australian Government	Buy		6,150		1.00		12/20/20		(163	)		23			(140	)	AAA
		$	16,591					$	(518	)	$	60		$	(458	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at September 30, 2015:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Appreciation (Depreciation) (000)
Bank of America NA	1 Month TIIE	Receive		4.32	%	7/27/17	MXN	11,810	$	(1	)
Bank of America NA	1 Month TIIE	Receive		4.33		7/27/17		11,969		(1	)
Bank of America NA	1 Month TIIE	Receive		4.39		7/28/17		24,612		(3	)
Bank of America NA	1 Month TIIE	Pay		6.30		7/17/25		2,600		(1	)
Bank of America NA	1 Month TIIE	Pay		6.32		7/17/25		2,779		(1	)
Bank of America NA	1 Month TIIE	Pay		6.32		7/18/25		6,042		(1	)
Barclays Bank PLC	1 Month TIIE	Receive		4.28		7/26/17		36,177		(1	)
Barclays Bank PLC	1 Month TIIE	Receive		4.30		7/26/17		36,177		(1	)
Barclays Bank PLC	1 Month TIIE	Receive		4.33		7/26/17		24,815		(2	)
Barclays Bank PLC	1 Month TIIE	Receive		4.34		7/27/17		36,657		(3	)
Barclays Bank PLC	1 Month TIIE	Receive		4.36		7/27/17		34,293		(3	)
Barclays Bank PLC	1 Month TIIE	Pay		6.34		7/16/25		8,888		(1	)
Barclays Bank PLC	1 Month TIIE	Pay		6.35		7/16/25		8,888		(1	)
Barclays Bank PLC	1 Month TIIE	Pay		6.36		7/16/25		5,683		(—	@)
Barclays Bank PLC	1 Month TIIE	Pay		6.32		7/17/25		8,352		(2	)
Barclays Bank PLC	1 Month TIIE	Pay		6.34		7/17/25		7,996		(1	)
Citibank NA	1 Month TIIE	Receive		4.29		7/25/17		7,697		(—	@)
Citibank NA	1 Month TIIE	Receive		4.30		7/26/17		16,177		(1	)
Citibank NA	1 Month TIIE	Receive		4.38		7/28/17		7,014		(1	)
Citibank NA	1 Month TIIE	Pay		6.36		7/15/25		11,480		(—	@)
Citibank NA	1 Month TIIE	Pay		6.34		7/16/25		4,325		(—	@)
Citibank NA	1 Month TIIE	Pay		6.33		7/18/25		2,695		(—	@)
Deutsche Bank AG	1 Month TIIE	Receive		4.38		7/28/17		36,197		(4	)
Deutsche Bank AG	1 Month TIIE	Pay		6.33		7/18/25		8,297		(1	)
Goldman Sachs International	1 Month TIIE	Receive		4.29		7/26/17		36,215		(1	)
Goldman Sachs International	1 Month TIIE	Receive		4.38		7/28/17		36,112		(4	)
Goldman Sachs International	1 Month TIIE	Pay		6.33		7/16/25		8,897		(1	)
Goldman Sachs International	1 Month TIIE	Pay		6.32		7/18/25		8,280		(2	)
JPMorgan Chase Bank NA	1 Month TIIE	Pay		6.33		7/17/25		1,800		(—	@)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.71		3/19/20	$	7,400		(135	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.45		7/17/25		3,400		(152	)
UBS AG	3 Month LIBOR	Receive		4.31		7/25/17	MXN	47,900		(2	)
UBS AG	1 Month TIIE	Receive		4.30		7/26/17		23,744		(1	)
UBS AG	1 Month TIIE	Receive		4.33		7/27/17		36,841		(2	)
UBS AG	1 Month TIIE	Pay		6.37		7/15/25		11,761		1
UBS AG	1 Month TIIE	Pay		6.34		7/16/25		5,868		(—	@)
UBS AG	1 Month TIIE	Pay		6.33		7/17/25		8,385		(1	)
UBS AG	1 Month TIIE	Pay		6.35		7/18/25		8,300		(1	)
Union Bank of Switzerland	1 Month TIIE	Receive		4.40		7/28/17		36,217		(5	)
									$	(336	)

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

Total Return Swap Agreements:

The Portfolio had the following total return swap agreements open at September 30, 2015:

Swap Counterparty

Index

Notional
Amount
(000)

Floating
Rate

Pay/Receive
Total Return
of Referenced
Index

Maturity
Date

Unrealized
Appreciation
(Depreciation)
(000)

Barclays Bank PLC

MSCI Emerging Market
Index

21,555

3 Month USD LIBOR plus
0.30%

Receive

2/29/16

(659

)

Citibank NA

Citi Australia Bank
Custom Basket^††

3 Month USD LIBOR minus
0.20%

Pay

8/23/16

(11

)

Citibank NA

Citi Australia Bank
Custom Basket^††

1,295

3 Month USD LIBOR minus
0.20%

Pay

8/23/16

158

Deutsche Bank AG

DB Global Machinery
Index^††

1,613

3 Month USD LIBOR minus
0.35%

Pay

11/10/15

243

Goldman Sachs
International

GS Auto Components
Index^††

501

3 Month USD LIBOR minus
0.25%

Pay

12/12/15

)

Goldman Sachs
International

GS Auto Components
Index^††

1,386

3 Month USD LIBOR minus
0.25%

Pay

12/17/15

JPMorgan Chase
Bank NA

JPM U.S. Machinery
Index^††

1,748

3 Month USD LIBOR minus
0.245%

Pay

11/5/15

240

JPMorgan Chase
Bank NA

JPMorgan U.S. Refineries
Custom Basket^††

1,519

3 Month USD LIBOR minus
0.06%

Pay

9/1/16

(34

)

JPMorgan Chase
Bank NA

JPM Aerospace Index^††

4,776

3 Month USD LIBOR minus
0.26%

Pay

9/8/16

115

JPMorgan Chase
Bank NA

JPM Aerospace Index^††

4,397

3 Month USD LIBOR minus
0.26%

Pay

9/8/16

(26

)

†† See tables below for details of the equity basket holdings underlying the swap.

The following table represents the equity basket holdings underlying the total return swap with Citi Australia Bank Custom Basket as of September 30, 2015.

Security Description	Index Weight
Citi Australia Bank Custom Basket
Australia & New Zealand Banking Group Ltd.		19.80	%
Bank of Queensland Ltd.		1.14
Bendigo & Adelaide Bank Ltd.		1.19
Commonwealth Bank of Australia		32.65
National Australia Bank Ltd.		20.72
Westpac Banking Corp.		24.50
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with DB Global Machinery Index as of September 30, 2015.

Security Description	Index Weight
DB Global Machinery Index
Alfa Laval AB		2.85	%
Atlas Copco AB		8.34
Atlas Copco AB		4.52
CNH Industrial N.V.		3.32
Daewoo Shipbuilding & Marine Engineering		0.39
Doosan Infracore Co., Ltd.		0.43
GEA Group AG		3.40
Hino Motors Ltd.		1.31
Hitachi Construction Machinery Co., Ltd.		0.72
Hiwin Technologies Corp.		0.65
Hyundai Heavy Industries Co., Ltd.		2.49
Hyundai Mipo Dockyard Co., Ltd.		0.51

Security Description	Index Weight
DB Global Machinery Index (cont'd)
IMI PLC		2.27	%
JTEKT Corp.		1.48
Kawasaki Heavy Industries Ltd.		2.39
Komatsu Ltd.		6.70
Kone Oyj		5.78
Kubota Corp.		7.16
MAN SE		1.87
Melrose Industries PLC		2.38
Metso Oyj		1.44
NGK Insulators Ltd.		2.99
Samsung Heavy Industries Co., Ltd.		0.90
Sandvik AB		5.18
Schindler Holding AG		3.46
Schindler Holding AG		1.68
Sembcorp Marine Ltd.		0.75
SMC Corp.		5.67
Sulzer AG		1.37
Sumitomo Heavy Industries Ltd.		1.03
United Tractors Tbk PT		1.24
Vallourec SA		0.58
Volvo AB		7.68
Wartsila Oyj Abp		3.19
Weichai Power Co., Ltd.		0.48
Weir Group PLC (The)		2.27
Yangzijiang Shipbuilding Holdings Ltd.		0.80
Zoomlion Heavy Industry Science & Technology		0.33
		100.00	%

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

The following table represents the equity basket holdings underlying the total return swap with GS Auto Components Index as of September 30, 2015.

Security Description	Index Weight
GS Auto Components Index
Aisin Seiki Co., Ltd.		2.44	%
Autoliv, Inc.		3.86
BorgWarner, Inc.		3.62
Bridgestone Corp.		8.55
Cheng Shin Rubber Industry Co., Ltd.		1.01
Cie Generale des Etablissements Michelin		6.47
Continental AG		8.92
Delphi Automotive PLC		8.69
Denso Corp.		7.80
GKN PLC		2.54
Hankook Tire Co., Ltd.		0.95
Hanon Systems		0.47
Hyundai Mobis Co., Ltd.		5.07
Hyundai Wia Corp.		0.68
Johnson Controls, Inc.		10.51
Koito Manufacturing Co., Ltd.		1.19
Magna International, Inc.		7.74
NGK Spark Plug Co., Ltd.		1.56
NHK Spring Co., Ltd.		0.58
NOK Corp.		0.78
Nokian Renkaat Oyj		1.40
Pirelli & C. SpA		1.52
Stanley Electric Co., Ltd.		1.08
Sumitomo Electric Industries Ltd.		3.66
Sumitomo Rubber Industries Ltd.		0.90
Toyoda Gosei Co., Ltd.		0.49
Toyota Industries Corp.		2.94
Valeo SA		3.89
Yokohama Rubber Co., Ltd. (The)		0.69
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM U.S. Machinery Index as of September 30, 2015.

Security Description	Index Weight
JPM U.S. Machinery Index
AGCO Corp.		2.05	%
Caterpillar, Inc.		20.99
Cummins, Inc.		9.58
Deere & Co.		12.19
Dover Corp.		4.78
Flowserve Corp.		2.76
Illinois Tool Works, Inc.		15.57
Ingersoll-Rand PLC		6.86
Joy Global, Inc.		0.78
PACCAR, Inc.		9.14
Parker-Hannifin Corp.		6.79
Pentair PLC		4.81
SPX Corp.		0.22
SPX FLOW, Inc.		0.64
Xylem, Inc.		2.84
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPMorgan U.S. Refineries Custom Basket as of September 30, 2015.

Security Description	Index Weight
JPMorgan U.S. Refineries Custom Basket
Delek U.S. Holdings, Inc.		1.30	%
HollyFrontier Corp.		6.45
Marathon Petroleum Corp.		19.52
PBF Energy, Inc.		2.81
Phillips 66		23.97
Tesoro Corp.		16.33
Valero Energy Corp.		26.23
Western Refining, Inc.		3.39
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Aerospace Index as of September 30, 2015.

Security Description	Index Weight
JPM Aerospace Index
Airbus Group SE		13.75	%
B/E Aerospace, Inc.		1.50
Boeing Co. (The)		33.15
Bombardier, Inc.		0.72
KLX, Inc.		0.61
Precision Castparts Corp.		12.23
Rolls-Royce Holdings PLC		5.86
Safran SA		9.41
Textron, Inc.		4.86
Thales SA		2.84
TransDigm Group, Inc.		3.69
United Technologies Corp.		9.39
Zodiac Aerospace		1.99
		100.00	%

@ Value is less than $500.

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

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

LIBOR London Interbank Offered Rate.

TIIE Interbank Equilibrium Interest Rate.

AUD — Australian Dollar

BRL — Brazilian Real

CAD — Canadian Dollar

CHF — Swiss Franc

CLP — Chilean Peso

CNY — Chinese Yuan Renminbi

DKK — Danish Krone

EUR — Euro

GBP — British Pound

HKD — Hong Kong Dollar

HUF — Hungarian Forint

IDR — Indonesian Rupiah

ILS — Israeli Shekel

INR — Indian Rupee

JPY — Japanese Yen

KRW — South Korean Won

MXN — Mexican Peso

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Strategist Portfolio

NOK — Norwegian Krone

NZD — New Zealand Dollar

PLN — Polish Zloty

RUB — Russian Ruble

SEK — Swedish Krona

SGD — Singapore Dollar

THB — Thai Baht

TRY — Turkish Lira

TWD — Taiwan Dollar

USD — United States Dollar

ZAR — South African Rand

Portfolio Composition

Classification	Percentage of Total Investments
Common Stocks		61.0	%
Fixed Income Securities		29.3
Short-Term Investments		9.6
Other**		0.1
Total Investments		100.0	%***

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

*** Does not include open long/short futures contracts with an underlying face amount of approximately $156,239,000 with net unrealized depreciation of approximately $660,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $36,000 and does not include open swap agreements with net unrealized depreciation of approximately $253,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Global Strategist Portfolio

Statement of Assets and Liabilities	September 30, 2015 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $341,063)	$	364,775
Investment in Security of Affiliated Issuer, at Value (Cost $30,920)		30,886
Total Investments in Securities, at Value (Cost $371,983)		395,661
Foreign Currency, at Value (Cost $1,297)		1,268
Cash		—	@
Receivable for Investments Sold		6,204
Receivable for Variation Margin on Futures Contracts		4,998
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		1,099
Interest Receivable		925
Unrealized Appreciation on Swap Agreements		823
Dividends Receivable		440
Receivable for Portfolio Shares Sold		323
Tax Reclaim Receivable		184
Premium Paid on Open Swap Agreements		87
Receivable for Variation Margin on Swap Agreements		7
Receivable from Affiliate		4
Other Assets		71
Total Assets		412,094
Liabilities:
Payable for Investments Purchased		10,344
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		1,063
Due to Broker		845
Unrealized Depreciation on Swap Agreements		789
Premium Received on Open Swap Agreements		605
Payable for Portfolio Shares Redeemed		298
Payable for Advisory Fees		260
Payable for Sub Transfer Agency Fees — Class I		9
Payable for Sub Transfer Agency Fees — Class A		126
Payable for Sub Transfer Agency Fees — Class L		17
Payable for Sub Transfer Agency Fees — Class C		—	@
Payable for Trustees' Fees and Expenses		81
Payable for Shareholder Services Fees — Class A		60
Payable for Distribution and Shareholder Services Fees — Class L		15
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Custodian Fees		74
Payable for Professional Fees		44
Payable for Administration Fees		27
Payable for Transfer Agency Fees — Class I		3
Payable for Transfer Agency Fees — Class A		11
Payable for Transfer Agency Fees — Class L		3
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Other Liabilities		135
Total Liabilities		14,810
Net Assets	$	397,284
Net Assets Consist Of:
Paid-in-Capital	$	395,638
Distributions in Excess of Net Investment Income		(921	)
Accumulated Net Realized Loss		(20,190	)
Unrealized Appreciation (Depreciation) on:
Investments		23,712
Investments in Affiliates		(34	)
Futures Contracts		(660	)
Swap Agreements		(253	)
Foreign Currency Forward Exchange Contracts		36
Foreign Currency Translations		(44	)
Net Assets	$	397,284

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Global Strategist Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2015 (000)
CLASS I:
Net Assets	$	83,930
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		5,754,730
Net Asset Value, Offering and Redemption Price Per Share	$	14.58
CLASS A:
Net Assets	$	287,438
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		19,826,161
Net Asset Value, Redemption Price Per Share	$	14.50
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.80
Maximum Offering Price Per Share	$	15.30
CLASS L:
Net Assets	$	24,544
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,702,853
Net Asset Value, Offering and Redemption Price Per Share	$	14.41
CLASS C:
Net Assets	$	1,363
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		94,613
Net Asset Value, Offering and Redemption Price Per Share	$	14.41
CLASS IS:
Net Assets	$	9
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		626
Net Asset Value, Offering and Redemption Price Per Share	$	14.59

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Global Strategist Portfolio

Statement of Operations	Year Ended September 30, 2015 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $363 of Foreign Taxes Withheld)	$	7,122
Interest from Securities of Unaffiliated Issuers		3,863
Dividends from Security of Affiliated Issuer (Note G)		50
Total Investment Income		11,035
Expenses:
Advisory Fees (Note B)		1,990
Shareholder Services Fees — Class A (Note D)		841
Distribution and Shareholder Services Fees — Class L (Note D)		205
Distribution and Shareholder Services Fees — Class C (Note D)		4
Custodian Fees (Note F)		535
Sub Transfer Agency Fees — Class I		36
Sub Transfer Agency Fees — Class A		294
Sub Transfer Agency Fees — Class L		35
Sub Transfer Agency Fees — Class C		1
Administration Fees (Note C)		354
Professional Fees		179
Pricing Fees		134
Transfer Agency Fees — Class I (Note E)		10
Transfer Agency Fees — Class A (Note E)		42
Transfer Agency Fees — Class L (Note E)		13
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		—	@
Shareholder Reporting Fees		66
Registration Fees		58
Trustees' Fees and Expenses		21
Other Expenses		28
Total Expenses		4,847
Waiver of Advisory Fees (Note B)		(208	)
Rebate from Morgan Stanley Affiliate (Note G)		(47	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(25	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(14	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(—	@)
Net Expenses		4,552
Net Investment Income		6,483
Realized Gain (Loss):
Investments Sold		(10,234	)
Foreign Currency Forward Exchange Contracts		5,606
Foreign Currency Transactions		(752	)
Futures Contracts		(5,342	)
Swap Agreements		(7,514	)
Net Realized Loss		(18,236	)
Change in Unrealized Appreciation (Depreciation):
Investments		(23,723	)
Investments in Affiliates		(24	)
Foreign Currency Forward Exchange Contracts		(1,618	)
Foreign Currency Translations		49
Futures Contracts		(1,278	)
Swap Agreements		(2,003	)
Net Change in Unrealized Appreciation (Depreciation)		(28,597	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(46,833	)
Net Decrease in Net Assets Resulting from Operations	$	(40,350	)

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Global Strategist Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2015 (000)			Year Ended September 30, 2014 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	6,483		$	7,745
Net Realized Gain (Loss)		(18,236	)		13,188
Net Change in Unrealized Appreciation (Depreciation)		(28,597	)		19,230
Net Increase (Decrease) in Net Assets Resulting from Operations		(40,350	)		40,163
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1,528	)		(714	)
Net Realized Gain		(2,679	)		(3,844	)
Class A:
Net Investment Income		(6,120	)		(4,088	)
Net Realized Gain		(13,028	)		(26,774	)
Class L:
Net Investment Income		(334	)		(173	)
Net Realized Gain		(1,018	)		(2,073	)
Total Distributions		(24,707	)		(37,666	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		54,340			25,332
Distributions Reinvested		4,190			4,536
Redeemed		(35,485	)		(9,847	)
Class A:
Subscribed		16,757			23,787
Distributions Reinvested		18,802			30,252
Redeemed		(64,828	)		(63,566	)
Class L:
Subscribed		4,778			1,835
Distributions Reinvested		1,327			2,203
Redeemed		(5,643	)		(5,157	)
Class C:
Subscribed		1,467	*		—
Redeemed		(—	@)*		—
Class IS:
Subscribed		10	**		—
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(4,285	)		9,375
Total Increase (Decrease) in Net Assets		(69,342	)		11,872
Net Assets:
Beginning of Period		466,626			454,754
End of Period (Including Distributions in Excess of Net Investment Income and Accumulated Undistributed Net Investment Income of $(921) and $3,936, respectively)	$	397,284		$	466,626
(1) Capital Share Transactions:
Class I:
Shares Subscribed		3,417			1,511
Shares Issued on Distributions Reinvested		269			284
Shares Redeemed		(2,225	)		(578	)
Net Increase in Class I Shares Outstanding		1,461			1,217
Class A:
Shares Subscribed		1,040			1,412
Shares Issued on Distributions Reinvested		1,211			1,903
Shares Redeemed		(4,081	)		(3,794	)
Net Decrease in Class A Shares Outstanding		(1,830	)		(479	)
Class L:
Shares Subscribed		305			110
Shares Issued on Distributions Reinvested		86			139
Shares Redeemed		(358	)		(309	)
Net Increase (Decrease) in Class L Shares Outstanding		33			(60	)

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Global Strategist Portfolio

Statements of Changes in Net Assets (cont'd)	Year Ended September 30, 2015 (000)			Year Ended September 30, 2014 (000)
Class C:
Shares Subscribed		95	*		—
Shares Redeemed		(—	@@)*		—
Net Increase in Class C Shares Outstanding		95			—
Class IS:
Shares Subscribed		1	**		—
Net Increase in Class IS Shares Outstanding		1			—

* For the period April 30, 2015 through September 30, 2015.

** For the period May 29, 2015 through September 30, 2015.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Global Strategist Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	16.99		$	16.96		$	15.22		$	12.50		$	12.55
Income (Loss) from Investment Operations:
Net Investment Income†		0.28			0.34			0.35			0.14			0.18
Net Realized and Unrealized Gain (Loss)		(1.73	)		1.15			1.44			2.79			(0.02	)
Total from Investment Operations		(1.45	)		1.49			1.79			2.93			0.16
Distributions from and/or in Excess of:
Net Investment Income		(0.35	)		(0.23	)		(0.05	)		(0.21	)		(0.21	)
Net Realized Gain		(0.61	)		(1.23	)		—			—			—
Total Distributions		(0.96	)		(1.46	)		(0.05	)		(0.21	)		(0.21	)
Net Asset Value, End of Period	$	14.58		$	16.99		$	16.96		$	15.22		$	12.50
Total Return++		(8.87	)%		9.37	%		11.79	%		23.66	%		1.07	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	83,930		$	72,952		$	52,170		$	23,756		$	25,192
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.73	%+		0.72	%+		0.69	%+		1.37	%+		1.30	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			0.76	%+		N/A			N/A
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.78	%+		1.99	%+		2.18	%+		1.01	%+		1.35	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.02	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		98	%		62	%		107	%		168	%		164	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.83	%		0.83	%		0.82	%		N/A			N/A
Net Investment Income to Average Net Assets		1.68	%		1.88	%		2.05	%		N/A			N/A

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Global Strategist Portfolio

	Class A
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	16.88		$	16.88		$	15.18		$	12.47		$	12.52
Income (Loss) from Investment Operations:
Net Investment Income†		0.23			0.27			0.42			0.10			0.15
Net Realized and Unrealized Gain (Loss)		(1.71	)		1.15			1.32			2.79			(0.03	)
Total from Investment Operations		(1.48	)		1.42			1.74			2.89			0.12
Distributions from and/or in Excess of:
Net Investment Income		(0.29	)		(0.19	)		(0.04	)		(0.18	)		(0.17	)
Net Realized Gain		(0.61	)		(1.23	)		—			—			—
Total Distributions		(0.90	)		(1.42	)		(0.04	)		(0.18	)		(0.17	)
Net Asset Value, End of Period	$	14.50		$	16.88		$	16.88		$	15.18		$	12.47
Total Return++		(9.16	)%		9.02	%		11.49	%		23.33	%		0.83	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	287,438		$	365,642		$	373,559		$	20,487		$	16,857
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.05	%+		1.07	%+		0.47	%+^		1.64	%+		1.55	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			1.03	%+^		N/A			N/A
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.44	%+		1.64	%+		2.60	%+^		0.69	%+		1.10	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.02	%		0.01	%		0.02	%		0.01	%
Portfolio Turnover Rate		98	%		62	%		107	%		168	%		164	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.11	%		1.14	%		1.11	%		N/A			N/A
Net Investment Income to Average Net Assets		1.38	%		1.57	%		1.96	%		N/A			N/A

† Per share amount is based on average shares outstanding.

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

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.09% for Class A shares. Prior to September 16, 2013, the maximum ratio was 0.99% for Class A shares.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Global Strategist Portfolio

	Class L
	Year Ended September 30,									Period from April 27, 2012^ to
Selected Per Share Data and Ratios	2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	16.79		$	16.78		$	15.15		$	14.42
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		0.15			0.19			0.23			(0.02	)
Net Realized and Unrealized Gain (Loss)		(1.72	)		1.15			1.42			0.78
Total from Investment Operations		(1.57	)		1.34			1.65			0.76
Distributions from and/or in Excess of:
Net Investment Income		(0.20	)		(0.10	)		(0.02	)		(0.03	)
Net Realized Gain		(0.61	)		(1.23	)		—			—
Total Distributions		(0.81	)		(1.33	)		(0.02	)		(0.03	)
Net Asset Value, End of Period	$	14.41		$	16.79		$	16.78		$	15.15
Total Return++		(9.66	)%		8.49	%		10.91	%		5.30	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	24,544		$	28,032		$	29,025		$	11
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.58	%+		1.57	%+		1.42	%+^^		2.39	%+*
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			1.49	%+^^		N/A
Ratio of Net Investment Income (Loss) to Average Net Assets ⁽¹⁾		0.93	%+		1.14	%+		1.44	%+^^		(0.29	)%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%		0.02	%		0.01	%		0.03	%*
Portfolio Turnover Rate		98	%		62	%		107	%		168	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.69	%		1.70	%		1.54	%		N/A
Net Investment Income to Average Net Assets		0.82	%		1.01	%		1.32	%		N/A

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

+ The Ratios of Expenses and Net Investment Income (Loss) reflect the rebate of certain Portfolio expenses in connection with the investments in Morgan Stanley affiliates during the period. The effect of the rebate on the ratios is disclosed in the above table as "Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets."

^^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.59% for Class L shares. Prior to September 16, 2013, the maximum ratio was 1.49% for Class L shares.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Global Strategist Portfolio

	Class C
Selected Per Share Data and Ratios	Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	16.03
Income (Loss) from Investment Operations:
Net Investment Income†		0.03
Net Realized and Unrealized Loss		(1.65	)
Total from Investment Operations		(1.62	)
Net Asset Value, End of Period	$	14.41
Total Return++		(10.11	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	1,363
Ratios of Expenses to Average Net Assets ⁽¹⁾		1.83	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		0.54	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*
Portfolio Turnover Rate		98	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		2.28	%*
Net Investment Income to Average Net Assets		0.09	%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Global Strategist Portfolio

	Class IS
Selected Per Share Data and Ratios	Period from May 29, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	15.97
Income (Loss) from Investment Operations:
Net Investment Income†		0.09
Net Realized and Unrealized Loss		(1.47	)
Total from Investment Operations		(1.38	)
Net Asset Value, End of Period	$	14.59
Total Return++		(8.70	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, in (Thousands)	$	9
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.71	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.66	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*
Portfolio Turnover Rate		98	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation
Expenses to Average Net Assets		16.27	%*
Net Investment Loss to Average Net Assets		(13.90	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements

The accompanying financial statements relate to the Global Strategist Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers five classes of shares — Class I, Class A, Class L, Class C and Class IS.

On April 30, 2015, the Portfolio commenced offering Class C shares.

On May 29, 2015, the Portfolio commenced offering Class IS shares.

1. Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), if there were no sales on a given day, the security is valued at the mean between the last reported bid and asked prices; (3) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at its latest reported sales price. In cases where a security is traded on more than one exchange, the security is valued on the exchange

designated as the primary market; (4) futures are valued at the latest price published by the commodities exchange on which they trade; (5) swaps are marked-to-market daily based upon quotations from market makers; (6) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (7) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (8) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (9) short-term taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

The Trustees have responsibility for determining in good faith the fair value of the investments, and the Trustees

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

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

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

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 2015.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgage	$	—	$	32	$	—	$	32
Agency Fixed Rate Mortgages		—		11,867		—		11,867
Asset-Backed Security		—		397		—		397
Collateralized Mortgage Obligations — Agency Collateral Series		—		1,876		—		1,876
Commercial Mortgage-Backed Securities		—		3,234		—		3,234
Corporate Bonds		—		33,825		—		33,825
Mortgages — Other		—		1,654		—		1,654
Sovereign		—		47,680		—		47,680
U.S. Treasury Securities		—		15,562		—		15,562
Total Fixed Income Securities		—		116,127		—		116,127
Common Stocks
Aerospace & Defense		2,178		801		—		2,979
Air Freight & Logistics		713		320		—		1,033
Airlines		22		1,086		—		1,108
Auto Components		338		1,242		—		1,580
Automobiles		542		3,304		—		3,846
Banks		11,730		21,591		—		33,321
Beverages		2,190		2,803		—		4,993
Biotechnology		3,167		544		—		3,711
Building Products		14		1,810		—		1,824
Capital Markets		2,763		2,928		—		5,691
Chemicals		1,528		3,574		—		5,102
Commercial Services & Supplies		682		563		—		1,245
Communications Equipment		2,353		636		—		2,989
Construction & Engineering		132		2,468		—		2,600
Construction Materials		—		871		—		871
Consumer Finance		834		—		—		834
Containers & Packaging		192		120		—		312
Distributors		9		—		—		9
Diversified Consumer Services		219		—		—		219
Diversified Financial Services		881		2,010		—		2,891
Diversified Telecommunication Services		2,468		4,672		—		7,140
Electric Utilities		2,171		2,592		—		4,763
Electrical Equipment		521		1,364		—		1,885
Electronic Equipment, Instruments & Components		305		1,046		—		1,351
Energy Equipment & Services		1,623		294		—		1,917
Food & Staples Retailing		4,156		2,137		—		6,293
Food Products		1,640		3,699		—		5,339
Gas Utilities		29		696		—		725

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Health Care Equipment & Supplies	$	2,660	$	869	$	—	$	3,529
Health Care Providers & Services		3,343		373		—		3,716
Health Care Technology		133		—		—		133
Hotels, Restaurants & Leisure		2,417		1,618		—		4,035
Household Durables		225		511		—		736
Household Products		2,624		1,300		—		3,924
Independent Power Producers & Energy Traders		25		83		—		108
Industrial Conglomerates		922		1,522		—		2,444
Information Technology Services		4,363		2,158		—		6,521
Insurance		1,275		5,379		—		6,654
Internet & Catalog Retail		1,328		128		—		1,456
Internet Software & Services		2,694		73		—		2,767
Leisure Products		46		—		—		46
Life Sciences Tools & Services		557		134		—		691
Machinery		1,249		2,172		—		3,421
Marine		—		309		—		309
Media		5,059		2,425		—		7,484
Metals & Mining		2,044		2,614		—		4,658
Multi-Utilities		1,609		1,297		—		2,906
Multi-line Retail		1,446		359		—		1,805
Oil, Gas & Consumable Fuels		7,473		4,936		—		12,409
Paper & Forest Products		28		214		—		242
Personal Products		254		1,983		—		2,237
Pharmaceuticals		5,150		10,792		—		15,942
Professional Services		620		2,586		—		3,206
Real Estate Investment Trusts (REITs)		3,489		1,546		—		5,035
Real Estate Management & Development		501		1,935		—		2,436
Road & Rail		1,580		1,693		—		3,273
Semiconductors & Semiconductor Equipment		2,731		662		6		3,399
Software		3,873		808		—		4,681
Specialty Retail		3,395		1,596		—		4,991
Tech Hardware, Storage & Peripherals		7,048		633		—		7,681
Textiles, Apparel & Luxury Goods		844		1,692		—		2,536
Thrifts & Mortgage Finance		91		—		—		91
Tobacco		1,522		2,099		—		3,621
Trading Companies & Distributors		227		1,187		—		1,414
Transportation Infrastructure		—		1,733		—		1,733
Water Utilities		—		3		—		3
Wireless Telecommunication Services		227		2,217		—		2,444
Total Common Stocks		116,472		124,810		6		241,288

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Investment Companies	$	360		$	—		$	—	$	360
Rights		—			1			—		1
Warrant		3			—			—		3
Short-Term Investments
Investment Company		30,788			—			—		30,788
U.S Treasury Security		—			7,094			—		7,094
Total Short-Term Investments		30,788			7,094			—		37,882
Foreign Currency Forward Exchange Contracts		—			1,099			—		1,099
Futures Contracts		578			—			—		578
Credit Default Swap Agreements		—			61			—		61
Interest Rate Swap Agreement		—			1			—		1
Total Return Swap Agreements		—			761			—		761
Total Assets		148,201			249,954			6		398,161
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(1,063	)		—		(1,063	)
Futures Contracts		(1,238	)		—			—		(1,238	)
Credit Default Swap Agreement		—			(1	)		—		(1	)
Interest Rate Swap Agreements		—			(337	)		—		(337	)
Total Return Swap Agreements		—			(738	)		—		(738	)
Total Liabilities		(1,238	)		(2,139	)		—		(3,377	)
Total	$	146,963		$	247,815		$	6	$	394,784

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of September 30, 2015, securities with a total value of approximately $119,110,000 transferred from Level 1 to Level 2. At September 30, 2015, the fair value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

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

	Common Stock (000)
Beginning Balance	$	—
Purchases		38
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		(32	)
Realized gains (losses)		—
Ending Balance	$	6
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2015	$	(32	)

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2015.

	Fair Value at September 30, 2015 (000)		Valuation Technique	Unobservable Input	Range						Selected Value			Impact to Valuation from an Increase in Input
Semiconductors & Semiconductors Equipment
Common Stock	$	6	Market Transaction Method	Last Traded Price	$	0.50		$	0.50		$	0.50		Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		13.0	%		13.0	%		13.0	%	Decrease
				Long-Term Growth Rate		3.5	%		3.5	%		3.5	%	Increase
				Capitalization Rate		9.5	%		9.5	%		9.5	%	Increase
			Market Comparable Companies	Enterprise Value/EBITDA		5.6	x		6.9	x		6.0	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

3. Foreign Currency Translation and Foreign Investments: The books and records of the Portfolio are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars as follows:

– investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

– investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from foreign currency forward exchange contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Portfolio's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations on foreign currency translations for the period is reflected in the Statement of Operations.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

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

Swaps: The Portfolio may enter into OTC swap contracts or cleared swap transactions. A swap contract is an agreement between two parties pursuant to which the parties exchange payments at specified dates on the basis of a specified notional amount, with the payments calculated by reference to specified securities, indices, reference rates, currencies or other instruments. Typically swap agreements provide that when the period payment dates for both parties are the same, the payments are made on a net basis (i.e., the two payment streams are netted out, with only the net amount paid by one party to the other). The Portfolio's obligations or rights under a swap contract entered into on a net basis will generally be equal only to the net amount to be paid or received under the agreement, based on the relative values of the positions held by each party. Cleared swap transactions may help reduce counterparty credit risk. In a cleared swap, the Portfolio's ultimate counterparty is a clearinghouse rather than a swap dealer, bank or other financial institution. OTC swap agreements are not entered into or traded on exchanges and often there is no central clearing or guaranty function for OTC swaps. These OTC swaps are often subject to credit risk or the risk of default or non-performance by the counterparty. Both OTC and cleared swaps could result in losses if interest rates, foreign currency exchange rates or other factors are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

the debt obligation. If no default occurs, the Portfolio would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Portfolio is the seller of a credit default swap contract, it typically receives the stream of payments but is obligated to pay an amount equal to the par (or other agreed-upon) value of a referenced debt obligation upon the default or similar event by the issuer of the referenced debt obligation. The use of credit default swaps could result in losses to the Portfolio if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap agreement and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap agreement and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability, respectively, in the Statement of Assets and Liabilities.

Foreign Currency Forward Exchange Contracts: In connection with its investments in foreign securities, the Portfolio also entered into contracts with banks, brokers or dealers to purchase or sell securities or foreign currencies at a future date. A foreign currency forward exchange contract ("currency contract") is a negotiated agreement between the contracting parties to exchange a specified amount of currency at a specified future time at a specified rate. The rate can be higher or lower than the spot rate between the currencies that are the subject of the contract. Currency contracts may be used to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. In addition, the Portfolio may use cross currency hedging or proxy hedging with respect to currencies in which the Portfolio has or expects to have portfolio or currency exposure. Cross currency hedges involve the sale of one currency against the positive exposure to a different currency and may be used for hedging purposes or to establish an active exposure to the exchange rate between any two currencies. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it matures. Furthermore, such transactions may reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is additional risk to the extent that currency contracts create exposure to currencies in which the Portfolio's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Portfolio than if it had not entered into such contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Portfolio as unrealized gain or loss. The Portfolio records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2015.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contracts

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

1,099

Futures Contract

Variation Margin on
Futures Contract

Currency Risk

(a)

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

454

(a)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(a)

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Credit Risk

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Equity Risk

761

Swap Agreement

Unrealized Appreciation on
Swap Agreement

Interest Rate Risk

Total

2,500

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contracts

Unrealized Depreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

(1,063

)

Futures Contracts

Variation Margin on
Futures Contracts

Commodity Risk

(155

)(a)

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

(493

)(a)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(590

)(a)

Swap Agreement

Unrealized Depreciation on
Swap Agreement

Credit Risk

)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Equity Risk

(738

)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Interest Rate Risk

(50

)

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

(287

)(a)

Total

(3,377

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	5,606
Commodity Risk	Futures Contracts		659
Currency Risk	Futures Contracts		750
Equity Risk	Futures Contracts		(7,456	)
Interest Rate Risk	Futures Contracts		705
Credit Risk	Swap Agreements		257
Equity Risk	Swap Agreements		(4,735	)
Interest Rate Risk	Swap Agreements		(3,036	)
	Total	$	(7,250	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contracts	$	(1,618	)
Commodity Risk	Futures Contracts		(582	)
Currency Risk	Futures Contracts		(58	)
Equity Risk	Futures Contracts		255
Interest Rate Risk	Futures Contracts		(893	)
Credit Risk	Swap Agreements		49
Equity Risk	Swap Agreements		(1,474	)
Interest Rate Risk	Swap Agreements		(578	)
	Total	$	(4,899	)

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

At September 30, 2015, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	1,099	$	(1,063	)
Swap Agreements		823		(789	)
Total	$	1,922	$	(1,852	)

(b) Excludes exchange traded derivatives.

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

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Received(d) (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	37	$	(26	)	$	—		$	11
Bank of Montreal		50		(50	)		—			0
Bank of New York Mellon		7		(7	)		—			0
Barclays Bank PLC		59		(59	)		—			0
Citibank NA		474		(82	)		(325	)		67
Commonwealth Bank of Australia		73		(73	)		—			0
Credit Suisse International		19		(19	)		—			0
Deutsche Bank AG		377		(102	)		(275	)		0
Goldman Sachs International		72		(72	)		—			0
HSBC Bank PLC		5		(5	)		—			0
JPMorgan Chase Bank NA		438		(155	)		(230	)		53
State Street Bank and Trust Co.		66		(66	)		—			0
UBS AG		245		(42	)		—			203
Total	$	1,922	$	(758	)	$	(830	)	$	334

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

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged(e) (000)			Net Amount (not less than $0) (000)
Bank of America NA	$	26	$	(26	)	$	—		$	0
Bank of Montreal		102		(50	)		—			52
Bank of New York Mellon		36		(7	)		—			29
Barclays Bank PLC		679		(59	)		(620	)		0
Citibank NA		82		(82	)		—			0
Commonwealth Bank of Australia		120		(73	)		—			47
Credit Suisse International		195		(19	)		—			176
Deutsche Bank AG		102		(102	)		—			0
Goldman Sachs International		126		(72	)		(54	)		0
HSBC Bank PLC		48		(5	)		—			43
JPMorgan Chase Bank NA		155		(155	)		—			0
Northern Trust Company		6		—			—			6
State Street Bank and Trust Co.		123		(66	)		—			57

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged(e) (000)			Net Amount (not less than $0) (000)
UBS AG	$	42	$	(42	)	$	—		$	0
Union Bank of Switzerland		5		—			—			5
Westpac Banking Corp.		5		—			—			5
Total	$	1,852	$	(758	)	$	(674	)	$	420

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

For the year ended September 30, 2015, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	179,842,000
Futures Contracts:
Average monthly original value	$	374,167,000
Swap Agreements:
Average monthly notional amount	$	300,835,000

5. When-Issued/Delayed Delivery Securities: The Portfolio purchases and sells when-issued and delayed delivery securities. Securities purchased on a when-issued or delayed delivery basis are purchased for delivery beyond the normal settlement date at a stated price and yield, and no income accrues to the Portfolio on such securities prior to delivery date. Payment and delivery for when-issued and delayed delivery securities can take place a month or more after the date of the transaction. When the Portfolio enters into a purchase transaction on a when-issued or delayed delivery basis, securities are available for collateral in an amount at least equal in value to the Portfolio's commitments to purchase such securities. Purchasing securities on a when-issued or delayed delivery basis may involve a risk that the market price at the time of delivery may be lower than the agreed upon purchase price, in which case there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Portfolio.

pursuant to these contracts and expects the risk of loss to be remote.

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

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

The Portfolio owns shares of real estate investment trusts ("REITs") which report information on the source of their distributions annually in the following calendar year. A portion of distributions received from REITs during the year is estimated to be a return of capital and is recorded as a reduction of their cost.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

shares, 1.59% for Class L shares, 1.84% for Class C shares and 0.71% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended September 30, 2015, approximately $208,000 of advisory fees were waived and approximately $40,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Portfolio.

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.50% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class L shares.

an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class C shares.

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2015, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $243,788,000 and $248,639,000, respectively. For the year ended September 30, 2015, purchases and sales of long-term U.S. Government securities were approximately $147,166,000 and $148,443,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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 Portfolio due to its investment in the Liquidity Funds. For the year ended September 30, 2015, advisory fees paid were reduced by approximately $46,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the year ended September 30, 2015 is as follows:

Value September 30, 2014 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	73,049			$	221,126			$	263,387			$	44			$	30,788

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

The Portfolio invests in Morgan Stanley Institutional Fund, Inc. — Emerging Markets Portfolio ("Emerging Markets Portfolio"), an open-end management investment company advised by an affiliate of the Adviser. 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 Emerging Markets Portfolio. For the year ended September 30, 2015, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Emerging Markets Portfolio. The Emerging Markets Portfolio has a cost basis of approximately $132,000 at September 30, 2015.

A summary of the Portfolio's transactions in shares of the Emerging Markets Portfolio during the year ended September 30, 2015 is as follows:

Value September 30, 2014 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	116			$	6			$	—			$	6			$	98

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax

return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. Each of the tax years in the four-year period ended September 30, 2015, remains subject to examination by taxing authorities.

2015 Distributions Paid From:				2014 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	17,981	$	6,726	$	18,470	$	19,196

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, basis adjustments for swap transactions, paydown adjustments, distribution redesignations and tax adjustments on passive foreign investment companies sold by the Portfolio, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Distributions in Excess of Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	(3,358	)		$	3,358				—

At September 30, 2015, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	—			$	425

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Post-October Currency And Specified Ordinary Losses (000)				Post-October Capital Losses (000)
	—			$	12,881

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Global Strategist Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Global Strategist Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Global Strategist Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2015, the results of its operations for the year then ended, the changes in its net assets for the two years in the period then ended and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 25, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2014, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. The Board noted that the Portfolio's management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; and (ii) management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Federal Tax Notice (unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Portfolio during its taxable year ended September 30, 2015. For corporate shareholders 27.46% of the dividends qualified for the dividends received deduction.

The Portfolio designated and paid approximately $6,726,000 as a long-term capital gain distribution.

For Federal income tax purposes, the following information is furnished with respect to the Portfolio's earnings for its taxable year ended September 30, 2015. When distributed, certain earnings may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Portfolio designated up to a maximum of approximately $7,032,000 as taxable at this lower rate.

In January, the Portfolio provides tax information to shareholders for the preceding calendar year.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

WE RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

• We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

• We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

4. HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

5. HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

6. HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.m. (EST)

• Writing to us at the following address:

Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

7. WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (70)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Kathleen A. Dennis (62)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various nonprofit organizations.

Nancy C. Everett (60)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Jakki L. Haussler (58)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Dr. Manuel H. Johnson (66)
c/o Johnson Smick International, Inc.
220 I Street, N.E. — Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

Director of NVR, Inc. (home construction).

Joseph J. Kearns (73)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Michael F. Klein (56)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (79)
522 Fifth Avenue
New York, NY 10036

Chair of the
Board and
Trustee

Chair of the
Boards since
July 2006 and
Trustee since
July 1991

None.

W. Allen Reed (68)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (83)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

Formerly, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc. (1987-December 2012).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Positions(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (67)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (52)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (48)
522 Fifth Avenue
New York, NY 10036

Chief
Compliance
Officer

Since
December
1997

Joseph C. Benedetti (50)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (50)
522 Fifth Avenue
New York, NY 10036

Treasurer and
Principal
Financial
Officer

Treasurer
since July
2003 and
Principal
Financial
Officer since
September
2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (48)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves a one-year term, until his or her successor is elected and has qualified.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

IFTGSANN
1347154 EXP 11.30.16

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

High Yield Portfolio

Annual Report

September 30, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Overview					4
Portfolio of Investments					7
Statement of Assets and Liabilities					13
Statement of Operations					15
Statements of Changes in Net Assets					16
Financial Highlights					18
Notes to Financial Statements					23
Report of Independent Registered Public Accounting Firm					28
Investment Advisory Agreement Approval					29
Federal Tax Notice					31
U.S. Privacy Policy					32
Trustee and Officer Information					35

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in High Yield Portfolio (the "Portfolio") performed during the latest twelve-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

October 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Expense Example (unaudited)

High Yield Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2015 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/15		Actual Ending Account Value 9/30/15		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
High Yield Portfolio Class I	$	1,000.00	$	984.00	$	1,021.31	$	3.73	*	$	3.80	*		0.75	%
High Yield Portfolio Class A		1,000.00		982.00		1,019.55		5.47	*		5.57	*		1.10
High Yield Portfolio Class L		1,000.00		981.00		1,018.30		6.70	*		6.83	*		1.35
High Yield Portfolio Class C		1,000.00		962.50		1,013.25		7.57	**		7.76	**		1.84
High Yield Portfolio Class IS		1,000.00		983.20		1,021.46		3.58	*		3.65	*		0.72

*** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited)

High Yield Portfolio

The High Yield Portfolio seeks total return.

Performance

For the fiscal year ended September 30, 2015, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –2.10%, net of fees. The Portfolio's Class I shares outperformed against the Portfolio's benchmark the Barclays U.S. Corporate High Yield Index (the "Index"), which returned –3.43%.

Factors Affecting Performance

Management Strategies

• The Portfolio is focused on middle-market high yield credits, which we define as companies with

⁽ⁱ⁾ Source for U.S. Treasury yields: Bloomberg L.P.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

High Yield Portfolio

$200 million to $1 billion of total debt outstanding. We believe that this segment of the high yield market offers attractive opportunities, as market participants (including asset managers and sell-side research analysts) do not cover it as closely as they do the largest high yield credits. This focus aided relative performance because the middle-market segment offered a yield advantage over the broader high yield market during the period.

• A general underweight to the energy sector also aided relative performance as this sector endured considerable spread widening during the period. Although we note that the positioning did detract from absolute performance.

* Minimum Investment

** Commenced operations on February 7, 2012

In accordance with SEC regulations, the Portfolio's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, Class L, Class C and Class IS shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (where applicable).

Performance Compared to the Barclays U.S. Corporate High Yield Index⁽¹⁾ and the Lipper High Current Yield Bond Funds Index⁽²⁾

	Period Ended September 30, 2015 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years		Ten Years		Since Inception⁽⁷⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		–2.10	%		—		—		8.57	%
Portfolio — Class A Shares w/o sales charges⁽⁴⁾		–2.43			—		—		8.25
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁴⁾		–6.61			—		—		6.97
Portfolio — Class L Shares w/o sales charges⁽⁴⁾		–2.70			—		—		7.97
Portfolio — Class C Shares w/o sales charges⁽⁶⁾		—			—		—		–3.75
Portfolio — Class C Shares with maximum 1.00% deferred sales charges⁽⁶⁾		—			—		—		–4.69
Portfolio — Class IS Shares w/o sales charges⁽⁵⁾		–2.17			—		—		–0.86
Barclays U.S. Corporate High Yield Index		–3.43			—		—		5.07
Lipper High Current Yield Bond Funds Index		–3.26			—		—		4.91

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. Returns for period less than one year are not annualized. For the most recent month-end performance figures, please visit www.morganstanley.com/im. Investment return and principal value will fluctuate so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Performance of share classes will vary due to differences in sales charges and expenses.

⁽¹⁾ The Barclays U.S. Corporate High Yield Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. Securities are classified as high yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes emerging market debt. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper High Current Yield Bond Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper High Current Yield Bond Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper High Current Yield Bond Funds classification.

⁽³⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

High Yield Portfolio

⁽⁴⁾ Commenced operations on February 7, 2012.

⁽⁵⁾ Commenced operations on March 28, 2014.

⁽⁶⁾ Commenced operations on April 30, 2015.

⁽⁷⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments

High Yield Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (97.3%)
Corporate Bonds (92.7%)
Basic Materials (5.0%)
American Gilsonite Co.
11.50%, 9/1/17 (a)	$	500	$	428
Chemtura Corp.
5.75%, 7/15/21		350		347
Eco Services Operations LLC/Eco Finance Corp.
8.50%, 11/1/22 (a)		350		313
FMG Resources August 2006 Pty Ltd.
9.75%, 3/1/22 (a)		450		420
Hexion, Inc.,
8.88%, 2/1/18		550		443
10.00%, 4/15/20		250		241
Lundin Mining Corp.
7.50%, 11/1/20 (a)		400		388
Permian Holdings, Inc.
10.50%, 1/15/18 (a)		210		118
Prince Mineral Holding Corp.
11.50%, 12/15/19 (a)		450		380
Signode Industrial Group Lux SA/ Signode Industrial Group US, Inc.
6.38%, 5/1/22 (a)		550		522
				3,600
Communications (9.5%)
Altice Financing SA
6.63%, 2/15/23 (a)		500		482
Altice Finco SA
8.13%, 1/15/24 (a)		250		239
Bankrate, Inc.
6.13%, 8/15/18 (a)		350		343
Cable One, Inc.
5.75%, 6/15/22 (a)		500		494
Cablevision Systems Corp.
7.75%, 4/15/18		150		150
CCO Holdings LLC/CCO Holdings Capital Corp.
5.75%, 1/15/24		100		96
Columbus International, Inc.
7.38%, 3/30/21 (a)		450		467
CommScope Technologies Finance LLC
6.00%, 6/15/25 (a)		400		385
CommScope, Inc.
5.50%, 6/15/24 (a)		100		96
Crown Castle International Corp.
5.25%, 1/15/23		250		265
CSC Holdings LLC
5.25%, 6/1/24		500		396
GCI, Inc.
6.88%, 4/15/25		250		253
inVentiv Health, Inc.
9.00%, 1/15/18 (a)		250		259
Lamar Media Corp.
5.38%, 1/15/24		250		254

	Face Amount (000)		Value (000)
MDC Partners, Inc.
6.75%, 4/1/20 (a)	$	300	$	297
Midcontinent Communications & Midcontinent Finance Corp.,
6.25%, 8/1/21 (a)		450		450
6.88%, 8/15/23 (a)		350		350
Outfront Media Capital LLC/ Outfront Media Capital Corp.
5.63%, 2/15/24		350		356
Sable International Finance Ltd.
6.88%, 8/1/22 (a)		500		506
SBA Telecommunications, Inc.
5.75%, 7/15/20		250		258
Syniverse Holdings, Inc.
9.13%, 1/15/19		250		214
T-Mobile USA, Inc.
6.84%, 4/28/23		250		248
				6,858
Consumer, Cyclical (20.5%)
Accuride Corp.
9.50%, 8/1/18		400		403
Air Canada
7.75%, 4/15/21 (a)		450		475
Algeco Scotsman Global Finance PLC,
8.50%, 10/15/18 (a)		200		176
10.75%, 10/15/19 (a)		200		107
Allied Specialty Vehicles, Inc.
8.50%, 11/1/19 (a)		350		366
American Airlines Group, Inc.
5.50%, 10/1/19 (a)		250		253
American Builders & Contractors Supply Co., Inc.
5.63%, 4/15/21 (a)		350		345
AV Homes, Inc.
8.50%, 7/1/19		350		347
Beacon Roofing Supply, Inc.
6.38%, 10/1/23		300		302
Carrols Restaurant Group, Inc.
8.00%, 5/1/22		450		476
CCM Merger, Inc.
9.13%, 5/1/19 (a)		100		106
Century Communities, Inc.,
6.88%, 5/15/22		350		334
6.88%, 5/15/22 (a)		250		239
Chester Downs & Marina LLC/ Chester Downs Finance Corp.
9.25%, 2/1/20 (a)		450		343
Dollar Tree, Inc.
5.75%, 3/1/23 (a)		500		521
Downstream Development Authority of the Quapaw Tribe of Oklahoma
10.50%, 7/1/19 (a)		417		437
Eldorado Resorts, Inc.
7.00%, 8/1/23 (a)		200		198

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Cyclical (cont'd)
Empire Today LLC/Empire Today Finance Corp.
11.38%, 2/1/17 (a)	$	175	$	165
Exide Technologies
8.63%, 2/1/18 (b)(c)		100		1
FelCor Lodging LP
6.00%, 6/1/25		450		452
Gibson Brands, Inc.
8.88%, 8/1/18 (a)		500		444
Global Partners LP/GLP Finance Corp.
6.25%, 7/15/22		475		420
Golden Nugget Escrow, Inc.
8.50%, 12/1/21 (a)		250		253
Greektown Holdings LLC/ Greektown Mothership Corp.
8.88%, 3/15/19 (a)		350		361
Guitar Center, Inc.
6.50%, 4/15/19 (a)		350		324
Hilton Worldwide Finance LLC/ Hilton Worldwide Finance Corp.
5.63%, 10/15/21		250		259
International Game Technology PLC
5.63%, 2/15/20 (a)		250		244
JC Penney Corp., Inc.
8.13%, 10/1/19		400		402
Logan's Roadhouse, Inc.
10.75%, 10/15/17		300		200
Meritor, Inc.
6.25%, 2/15/24		250		239
Neiman Marcus Group Ltd., LLC
8.75%, 10/15/21 (a)(d)		350		362
Oshkosh Corp.
5.38%, 3/1/22		350		357
Party City Holdings, Inc.
6.13%, 8/15/23 (a)		250		253
Pittsburgh Glass Works LLC
8.00%, 11/15/18 (a)		500		520
Playa Resorts Holding BV
8.00%, 8/15/20 (a)		500		507
Rite Aid Corp.,
6.13%, 4/1/23 (a)		250		249
6.75%, 6/15/21		500		514
RSI Home Products, Inc.
6.50%, 3/15/23 (a)		450		452
Seminole Hard Rock Entertainment, Inc./ Seminole Hard Rock International LLC
5.88%, 5/15/21 (a)		250		248
Sonic Automotive, Inc.
5.00%, 5/15/23		375		361
Speedway Motorsports, Inc.
5.13%, 2/1/23		250		246

	Face Amount (000)		Value (000)
Suburban Propane Partners LP/ Suburban Energy Finance Corp.
5.75%, 3/1/25	$	250	$	238
Sugarhouse HSP Gaming Prop Mezz LP/ Sugarhouse HSP Gaming Finance Corp.
6.38%, 6/1/21 (a)		125		118
Tops Holding LLC/Tops Markets II Corp.
8.00%, 6/15/22 (a)		500		503
United Continental Holdings, Inc.
6.38%, 6/1/18		400		421
VistaJet Malta Finance PLC/ VistaJet Co., Finance LLC
7.75%, 6/1/20 (a)		300		273
				14,814
Consumer, Non-Cyclical (17.1%)
Acadia Healthcare Co., Inc.,
5.13%, 7/1/22		250		247
6.13%, 3/15/21		400		418
Ahern Rentals, Inc.
7.38%, 5/15/23 (a)		400		350
Albea Beauty Holdings SA
8.38%, 11/1/19 (a)		100		106
Alere, Inc.
6.38%, 7/1/23 (a)		200		204
American Achievement Corp.
10.88%, 4/15/16 (a)		400		397
Amsurg Corp.
5.63%, 7/15/22		275		276
Aramark Services, Inc.
5.75%, 3/15/20		500		521
Beverages & More, Inc.
10.00%, 11/15/18 (a)		500		482
Brand Energy & Infrastructure Services, Inc.
8.50%, 12/1/21 (a)		250		224
Bumble Bee Holdco SCA
9.63%, 3/15/18 (a)(d)		465		472
Cenveo Corp.
6.00%, 8/1/19 (a)		250		211
Concordia Healthcare Corp.
7.00%, 4/15/23 (a)		250		219
Constellis Holdings LLC/Constellis Finance Corp.
9.75%, 5/15/20 (a)		500		457
DJO Finco, Inc./DJO Finance LLC/ DJO Finance Corp.
8.13%, 6/15/21 (a)		250		244
DPx Holdings BV
7.50%, 2/1/22 (a)		100		101
DS Services of America, Inc.
10.00%, 9/1/21 (a)		304		351
DynCorp International, Inc.
10.38%, 7/1/17		400		288
Endo Ltd./Endo Finance LLC/Endo Finco, Inc.
6.00%, 7/15/23 (a)		450		445

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Consumer, Non-Cyclical (cont'd)
Global A&T Electronics Ltd.
10.00%, 2/1/19 (a)	$	400	$	315
Harland Clarke Holdings Corp.
9.75%, 8/1/18 (a)		500		516
Jaguar Holding Co. II/ Pharmaceutical Product Development LLC
6.38%, 8/1/23 (a)		500		487
JLL/Delta Dutch Pledgeco BV
8.75%, 5/1/20 (a)(d)		350		354
KeHE Distributors LLC/KeHE Finance Corp.
7.63%, 8/15/21 (a)		370		389
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC
5.50%, 4/15/25 (a)		450		403
Monitronics International, Inc.
9.13%, 4/1/20		185		167
Mustang Merger Corp.
8.50%, 8/15/21 (a)		270		281
Pinnacle Operating Corp.
9.00%, 11/15/20 (a)		400		389
Quintiles Transnational Corp.
4.88%, 5/15/23 (a)		300		298
Safway Group Holding LLC/Safway Finance Corp.
7.00%, 5/15/18 (a)		375		386
Service Corp. International
5.38%, 1/15/22		100		104
Spectrum Brands, Inc.
5.75%, 7/15/25 (a)		250		256
Tenet Healthcare Corp.
3.84%, 6/15/20 (a)(e)		450		447
TMS International Corp.
7.63%, 10/15/21 (a)		250		234
United Rentals North America, Inc.
5.75%, 11/15/24		500		481
US Foods, Inc.
8.50%, 6/30/19		470		488
Valeant Pharmaceuticals International, Inc.
5.88%, 5/15/23 (a)		250		240
Wells Enterprises, Inc.
6.75%, 2/1/20 (a)		88		90
				12,338
Diversified (0.6%)
Argos Merger Sub, Inc.
7.13%, 3/15/23 (a)		250		253
Horizon Pharma Financing, Inc.
6.63%, 5/1/23 (a)		250		222
				475
Energy (9.5%)
Approach Resources, Inc.
7.00%, 6/15/21		50		30

	Face Amount (000)		Value (000)
Blue Racer Midstream LLC/ Blue Racer Finance Corp.
6.13%, 11/15/22 (a)	$	350	$	334
Bonanza Creek Energy, Inc.
6.75%, 4/15/21		100		70
Carrizo Oil & Gas, Inc.
6.25%, 4/15/23		425		372
Crestwood Midstream Partners LP/ Crestwood Midstream Finance Corp.,
6.13%, 3/1/22		130		113
6.25%, 4/1/23 (a)		250		214
CrownRock LP/CrownRock Finance, Inc.
7.75%, 2/15/23 (a)		200		197
DCP Midstream LLC
5.35%, 3/15/20 (a)		400		389
Endeavor Energy Resources LP/ EER Finance, Inc.
8.13%, 9/15/23 (a)		500		482
Halcon Resources Corp.
8.63%, 2/1/20 (a)		250		209
Hilcorp Energy I LP/Hilcorp Finance Co.,
5.00%, 12/1/24 (a)		250		214
5.75%, 10/1/25 (a)		250		221
Laredo Petroleum, Inc.
6.25%, 3/15/23		200		183
Lonestar Resources America, Inc.
8.75%, 4/15/19 (a)		350		233
Matador Resources Co.
6.88%, 4/15/23 (a)		225		217
Memorial Resource Development Corp.
5.88%, 7/1/22		50		46
Newfield Exploration Co.
5.38%, 1/1/26		200		184
Noble Energy, Inc.
5.88%, 6/1/24		100		100
Northern Oil and Gas, Inc.
8.00%, 6/1/20		300		225
Northern Tier Energy LLC/ Northern Tier Finance Corp.
7.13%, 11/15/20		300		301
Pacific Drilling V Ltd.
7.25%, 12/1/17 (a)		450		308
PetroQuest Energy, Inc.
10.00%, 9/1/17		400		356
Rice Energy, Inc.
6.25%, 5/1/22		500		448
Rose Rock Midstream LP/ Rose Rock Finance Corp.
5.63%, 11/15/23 (a)		450		394
Seven Generations Energy Ltd.,
6.75%, 5/1/23 (a)		50		43
8.25%, 5/15/20 (a)		350		331
SM Energy Co.
5.00%, 1/15/24		250		213

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Energy (cont'd)
Tesoro Logistics LP/ Tesoro Logistics Finance Corp.
5.50%, 10/15/19 (a)	$	250	$	246
Triangle USA Petroleum Corp.
6.75%, 7/15/22 (a)		500		213
				6,886
Finance (9.4%)
Ardagh Finance Holdings SA
8.63%, 6/15/19 (a)(d)		490		502
Baytex Energy Corp.
5.63%, 6/1/24 (a)		350		278
CNO Financial Group, Inc.
4.50%, 5/30/20		250		256
Compiler Finance Sub, Inc.
7.00%, 5/1/21 (a)		500		302
CTR Partnership LP/CareTrust Capital Corp.
5.88%, 6/1/21		250		256
DuPont Fabros Technology LP
5.63%, 6/15/23		250		252
Forestar USA Real Estate Group, Inc.
8.50%, 6/1/22 (a)		400		416
HUB International Ltd.
7.88%, 10/1/21 (a)		300		287
Infinity Acquisition LLC/ Infinity Acquisition Finance Corp.
7.25%, 8/1/22 (a)		250		225
Iron Mountain, Inc.
6.00%, 10/1/20 (a)		500		506
Jefferies Finance LLC/JFIN Co-Issuer Corp.
6.88%, 4/15/22 (a)		450		412
KCG Holdings, Inc.
6.88%, 3/15/20 (a)		400		371
Kennedy-Wilson, Inc.
5.88%, 4/1/24		500		490
NewStar Financial, Inc.
7.25%, 5/1/20 (a)		400		399
Oxford Finance LLC/Oxford Finance Co-Issuer, Inc.
7.25%, 1/15/18 (a)		350		358
Provident Funding Associates LP/ PFG Finance Corp.
6.75%, 6/15/21 (a)		250		238
Quicken Loans, Inc.
5.75%, 5/1/25 (a)		350		330
Rivers Pittsburgh Borrower LP/ Rivers Pittsburgh Finance Corp.
9.50%, 6/15/19 (a)		498		519
Sabra Health Care LP/Sabra Capital Corp.
5.50%, 2/1/21		350		366
Transworld Systems, Inc.
9.50%, 8/15/21 (a)		100		54
				6,817

	Face Amount (000)		Value (000)
Industrials (18.4%)
ADS Tactical, Inc.
11.00%, 4/1/18 (a)	$	500	$	514
Aguila 3 SA
7.88%, 1/31/18 (a)		250		253
Apex Tool Group LLC
7.00%, 2/1/21 (a)		500		412
Artesyn Embedded Technologies, Inc.
9.75%, 10/15/20 (a)		375		377
Associated Asphalt Partners LLC/ Road Holdings III LLC/ Associated Asphalt Finance
8.50%, 2/15/18 (a)		517		509
Associated Materials LLC/AMH New Finance, Inc.
9.13%, 11/1/17		200		162
Belden, Inc.
5.25%, 7/15/24 (a)		300		279
BlueLine Rental Finance Corp.
7.00%, 2/1/19 (a)		450		434
CEVA Group PLC
4.00%, 5/1/18 (a)		400		355
Cleaver-Brooks, Inc.
8.75%, 12/15/19 (a)		300		285
Consolidated Container Co., LLC/ Consolidated Container Capital, Inc.
10.13%, 7/15/20 (a)		350		296
Coveris Holdings SA
7.88%, 11/1/19 (a)		200		191
CPG Merger Sub LLC
8.00%, 10/1/21 (a)		400		400
CTP Transportation Products LLC/CTP Finance, Inc.
8.25%, 12/15/19 (a)		250		267
DH Services Luxembourg Sarl
7.75%, 12/15/20 (a)		50		51
Emeco Pty Ltd.
9.88%, 3/15/19 (a)		200		108
EnPro Industries, Inc.
5.88%, 9/15/22		117		118
Florida East Coast Holdings Corp.
6.75%, 5/1/19 (a)		250		246
Gibraltar Industries, Inc.
6.25%, 2/1/21		325		332
Iracore International Holdings, Inc.
9.50%, 6/1/18 (a)		400		282
Jac Holding Corp.
11.50%, 10/1/19 (a)		300		296
JB Poindexter & Co., Inc.
9.00%, 4/1/22 (a)		500		529
Kemet Corp.
10.50%, 5/1/18		450		417
Kratos Defense & Security Solutions, Inc.
7.00%, 5/15/19		251		205

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
LMI Aerospace, Inc.
7.38%, 7/15/19	$	500	$	485
Martin Midstream Partners LP/ Martin Midstream Finance Corp.
7.25%, 2/15/21		500		465
MasTec, Inc.
4.88%, 3/15/23		500		415
Michael Baker Holdings LLC/ Michael Baker Finance Corp.
8.88%, 4/15/19 (a)(d)		350		298
Michael Baker International LLC/ CDL Acquisition Co., Inc.
8.25%, 10/15/18 (a)		200		191
Navios Maritime Holdings, Inc./ Navios Maritime Finance II US, Inc.
8.13%, 2/15/19		550		407
OPE KAG Finance Sub, Inc.
7.88%, 7/31/23 (a)		400		407
Plastipak Holdings, Inc.
6.50%, 10/1/21 (a)		300		288
SAExploration Holdings, Inc.
10.00%, 7/15/19		500		318
Summit Materials LLC/ Summit Materials Finance Corp.,
6.13%, 7/15/23		350		339
10.50%, 1/31/20		86		92
Syncreon Group BV/ Syncreon Global Finance US, Inc.
8.63%, 11/1/21 (a)		450		337
Techniplas LLC
10.00%, 5/1/20 (a)		500		462
Transfield Services Ltd.
8.38%, 5/15/20 (a)		50		52
Vander Intermediate Holding II Corp.
9.75%, 2/1/19 (a)(d)		100		81
Wise Metals Intermediate Holdings LLC/ Wise Holdings Finance Corp.
9.75%, 6/15/19 (a)		450		435
XPO Logistics, Inc.
7.88%, 9/1/19 (a)		500		489
Zachry Holdings, Inc.
7.50%, 2/1/20 (a)		400		397
				13,276
Technology (1.7%)
BCP Singapore VI Cayman Financing Co., Ltd.
8.00%, 4/15/21 (a)		450		424
Boxer Parent Co., Inc.
9.00%, 10/15/19 (a)(d)		450		321
First Data Corp.
11.75%, 8/15/21		315		351
Quiksilver, Inc./QS Wholesale, Inc.
7.88%, 8/1/18 (a)(b)(c)		150		122
				1,218

	Face Amount (000)		Value (000)
Utilities (1.0%)
DPL, Inc.
6.75%, 10/1/19	$	200	$	209
GenOn Americas Generation LLC
8.50%, 10/1/21		450		387
LBC Tank Terminals Holding Netherlands BV
6.88%, 5/15/23 (a)		100		104
Sabine Pass LNG LP
6.50%, 11/1/20		50		49
				749
				67,031
Sovereign (1.0%)
Government (1.0%)
Select Medical Corp.
6.38%, 6/1/21		350		343
Waterjet Holdings, Inc.
7.63%, 2/1/20 (a)		350		352
				695
Variable Rate Senior Loan Interests (3.6%)
Basic Materials (0.3%)
FMG Resources August 2006 Pty Ltd., Term B
3.75%, 10/20/15		249		204
Consumer, Cyclical (1.4%)
Builders Firstsource, Inc., Term B
6.00%, 12/31/15		250		248
Diamond Resorts Corp., Term Loan
5.50%, 10/30/15		70		70
Graton Economic Development Authority, Term B
4.75%, 10/30/15		300		300
Navistar International Corp., Term B
6.50%, 11/12/15		400		392
				1,010
Energy (0.2%)
Drillships Ocean Ventures, Inc., Term B
5.50%, 10/26/15		272		183
Industrials (1.1%)
Atkore international, Inc., 2nd Lien Term
7.75%, 12/31/15		300		277
Quality Distribution, Inc., 1st Lien Term
5.75%, 12/30/15		500		494
				771
Technology (0.6%)
Aspect Software, Inc., Term B
7.50%, 11/12/15		94		92

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

High Yield Portfolio

	Face Amount (000)		Value (000)
Technology (cont'd)
TTM Technologies, Inc., 1st Lien Term
6.00%, 10/1/15	$	400	$	374
				466
				2,634
Total Fixed Income Securities (Cost $75,107)				70,360
	Shares		Value (000)
Common Stock (0.0%)
Auto Components (0.0%)
Exide Technologies (f) (Cost $—)		592		—	@
Short-Term Investment (1.4%)
Investment Company (1.4%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $991)		991,485		991
Total Investments (98.7%) (Cost $76,098) (g)				71,351
Other Assets in Excess of Liabilities (1.3%)				940
Net Assets (100.0%)			$	72,291

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

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

(d) Payment-in-kind security.

(e) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on September 30, 2015.

(f) At September 30, 2015, the Portfolio held a fair valued security valued at less than $500, representing less than 0.05% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund's Trustees.

(g) At September 30, 2015, the aggregate cost for Federal income tax purposes is approximately $76,122,000. The aggregate gross unrealized appreciation is approximately $351,000 and the aggregate gross unrealized depreciation is approximately $5,122,000 resulting in net unrealized depreciation of approximately $4,771,000.

@ Value is less than $500.

Portfolio Composition

Classification	Percentage of Total Investments
Consumer, Cyclical		22.2	%
Industrials		19.7
Consumer, Non-Cyclical		17.3
Energy		9.9
Communications		9.6
Finance		9.6
Other*		6.4
Basic Materials		5.3
Total Investments		100.0	%

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

High Yield Portfolio

Statement of Assets and Liabilities	September 30, 2015 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $75,107)	$	70,360
Investment in Security of Affiliated Issuer, at Value (Cost $991)		991
Total Investments in Securities, at Value (Cost $76,098)		71,351
Interest Receivable		1,583
Receivable for Investments Sold		824
Receivable for Portfolio Shares Sold		106
Receivable from Affiliate		—	@
Other Assets		36
Total Assets		73,900
Liabilities:
Payable for Investments Purchased		1,452
Payable for Advisory Fees		63
Payable for Professional Fees		29
Payable for Portfolio Shares Redeemed		14
Payable for Shareholder Services Fees — Class A		12
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		1
Payable for Sub Transfer Agency Fees — Class I		—	@
Payable for Sub Transfer Agency Fees — Class A		11
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Custodian Fees		6
Payable for Administration Fees		5
Payable for Transfer Agency Fees — Class I		—	@
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		—	@
Bank Overdraft		1
Other Liabilities		14
Total Liabilities		1,609
Net Assets	$	72,291
Net Assets Consist of:
Paid-in-Capital	$	77,838
Accumulated Undistributed Net Investment Income		643
Accumulated Net Realized Loss		(1,443	)
Unrealized Appreciation (Depreciation) on:
Investments		(4,747	)
Net Assets	$	72,291

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

High Yield Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2015 (000)
CLASS I:
Net Assets	$	13,255
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,353,125
Net Asset Value, Offering and Redemption Price Per Share	$	9.80
CLASS A:
Net Assets	$	56,042
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		5,728,249
Net Asset Value, Redemption Price Per Share	$	9.78
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.43
Maximum Offering Price Per Share	$	10.21
CLASS L:
Net Assets	$	1,111
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		113,576
Net Asset Value, Offering and Redemption Price Per Share	$	9.78
CLASS C:
Net Assets	$	1,309
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		133,837
Net Asset Value, Offering and Redemption Price Per Share	$	9.78
CLASS IS:
Net Assets	$	574
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		58,603
Net Asset Value, Offering and Redemption Price Per Share	$	9.79

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

High Yield Portfolio

Statement of Operations	Year Ended September 30, 2015 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers (Net of $—@ of Foreign Taxes Withheld)	$	4,602
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		4,603
Expenses:
Advisory Fees (Note B)		364
Shareholder Services Fees — Class A (Note D)		118
Distribution and Shareholder Services Fees — Class L (Note D)		6
Distribution and Shareholder Services Fees — Class C (Note D)		5
Professional Fees		126
Sub Transfer Agency Fees — Class I		1
Sub Transfer Agency Fees — Class A		73
Sub Transfer Agency Fees — Class L		1
Registration Fees		58
Administration Fees (Note C)		48
Pricing Fees		29
Custodian Fees (Note F)		27
Shareholder Reporting Fees		18
Transfer Agency Fees — Class I (Note E)		2
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Trustees' Fees and Expenses		2
Other Expenses		10
Total Expenses		894
Waiver of Advisory Fees (Note B)		(246	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(—	@)
Reimbursement of Class Specific Expenses — Class A (Note B)		(14	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		631
Net Investment Income		3,972
Realized Loss:
Investments Sold		(1,431	)
Change in Unrealized Appreciation (Depreciation):
Investments		(4,386	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(5,817	)
Net Decrease in Net Assets Resulting from Operations	$	(1,845	)

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

High Yield Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2015 (000)			Year Ended September 30, 2014 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	3,972		$	1,476
Net Realized Gain (Loss)		(1,431	)		321
Net Change in Unrealized Appreciation (Depreciation)		(4,386	)		(643	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,845	)		1,154
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(714	)		(910	)
Net Realized Gain		(65	)		(550	)
Class A:
Net Investment Income		(2,818	)		(339	)
Net Realized Gain		(216	)		(81	)
Class L:
Net Investment Income		(71	)		(60	)
Net Realized Gain		(6	)		(21	)
Class C:
Net Investment Income		(24	)		—
Class IS:
Net Investment Income		(16	)		(—	@)
Net Realized Gain		(—	@)		—
Total Distributions		(3,930	)		(1,961	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		13,941			2,503
Distributions Reinvested		339			231
Redeemed		(13,226	)		(1,800	)
Class A:
Subscribed		33,441			42,604
Distributions Reinvested		3,021			395
Redeemed		(16,149	)		(3,475	)
Class L:
Subscribed		527			1,661
Distributions Reinvested		71			69
Redeemed		(884	)		(501	)
Class C:
Subscribed		2,023	**		—
Distributions Reinvested		23	**		—
Redeemed		(651	)**		—
Class IS:
Subscribed		1,828			10	*
Redeemed		(1,224	)		—
Net Increase in Net Assets Resulting from Capital Share Transactions		23,080			41,697
Total Increase in Net Assets		17,305			40,890
Net Assets:
Beginning of Period		54,986			14,096
End of Period (Including Accumulated Undistributed Net Investment Income of $643 and $303)	$	72,291		$	54,986
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1,367			230
Shares Issued on Distributions Reinvested		33			21
Shares Redeemed		(1,286	)		(164	)
Net Increase in Class I Shares Outstanding		114			87
Class A:
Shares Subscribed		3,271			3,929
Shares Issued on Distributions Reinvested		297			37
Shares Redeemed		(1,586	)		(319	)
Net Increase in Class A Shares Outstanding		1,982			3,647

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

High Yield Portfolio

Statements of Changes in Net Assets (cont'd)	Year Ended September 30, 2015 (000)			Year Ended September 30, 2014 (000)
Class L:
Shares Subscribed		52			152
Shares Issued on Distributions Reinvested		7			6
Shares Redeemed		(87	)		(46	)
Net Increase (Decrease) in Class L Shares Outstanding		(28	)		112
Class C:
Shares Subscribed		197	**		—
Shares Issued on Distributions Reinvested		2	**		—
Shares Redeemed		(65	)**		—
Net Increase in Class C Shares Outstanding		134			—
Class IS:
Shares Subscribed		180			1	*
Shares Redeemed		(122	)		—
Net Increase in Class IS Shares Outstanding		58			1

* For the period March 31, 2014 through September 30, 2014.

** For the period April 30, 2015 through September 30, 2015.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

High Yield Portfolio

	Class I
	Year Ended September 30,									Period from February 7, 2012^ to
Selected Per Share Data and Ratios	2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	10.73		$	11.00		$	10.71		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.71			0.75			0.81			0.50
Net Realized and Unrealized Gain (Loss)		(0.92	)		0.25			0.55			0.59
Total from Investment Operations		(0.21	)		1.00			1.36			1.09
Distributions from and/or in Excess of:
Net Investment Income		(0.66	)		(0.77	)		(0.81	)		(0.38	)
Net Realized Gain		(0.06	)		(0.50	)		(0.26	)		—
Total Distributions		(0.72	)		(1.27	)		(1.07	)		(0.38	)
Net Asset Value, End of Period	$	9.80		$	10.73		$	11.00		$	10.71
Total Return++		(2.10	)%		9.48	%		13.38	%		11.07	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	13,255		$	13,300		$	12,678		$	10,975
Ratio of Expenses to Average Net Assets⁽¹⁾		0.74	%+		0.75	%+		0.75	%+		0.74	%+*
Ratio of Net Investment Income to Average Net Assets⁽¹⁾		6.88	%+		6.89	%+		7.42	%+		7.53	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.01	%*
Portfolio Turnover Rate		62	%		96	%		227	%		192	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.17	%		1.85	%		3.16	%		3.17	%*
Net Investment Income to Average Net Assets		6.45	%		5.79	%		5.01	%		5.10	%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

High Yield Portfolio

	Class A
	Year Ended September 30,									Period from February 7, 2012^ to
Selected Per Share Data and Ratios	2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	10.72		$	10.99		$	10.71		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.66			0.65			0.77			0.48
Net Realized and Unrealized Gain (Loss)		(0.92	)		0.31			0.55			0.59
Total from Investment Operations		(0.26	)		0.96			1.32			1.07
Distributions from and/or in Excess of:
Net Investment Income		(0.62	)		(0.73	)		(0.78	)		(0.36	)
Net Realized Gain		(0.06	)		(0.50	)		(0.26	)		—
Total Distributions		(0.68	)		(1.23	)		(1.04	)		(0.36	)
Net Asset Value, End of Period	$	9.78		$	10.72		$	10.99		$	10.71
Total Return++		(2.43	)%		9.15	%		13.01	%		10.92	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	56,042		$	40,157		$	1,092		$	107
Ratio of Expenses to Average Net Assets⁽¹⁾		1.10	%+		1.02	%+		1.01	%+^^		0.99	%+*
Ratio of Net Investment Income to Average Net Assets⁽¹⁾		6.49	%+		5.99	%+		7.04	%+^^		7.28	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.01	%		0.00	%§		0.01	%*
Portfolio Turnover Rate		62	%		96	%		227	%		192	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.53	%		2.06	%		4.22	%		3.42	%*
Net Investment Income to Average Net Assets		6.06	%		4.95	%		3.83	%		4.85	%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

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

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

High Yield Portfolio

	Class L
	Year Ended September 30,									Period from February 7, 2012^ to
Selected Per Share Data and Ratios	2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	10.72		$	10.99		$	10.70		$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.64			0.67			0.75			0.46
Net Realized and Unrealized Gain (Loss)		(0.93	)		0.27			0.56			0.59
Total from Investment Operations		(0.29	)		0.94			1.31			1.05
Distributions from and/or in Excess of:
Net Investment Income		(0.59	)		(0.71	)		(0.76	)		(0.35	)
Net Realized Gain		(0.06	)		(0.50	)		(0.26	)		—
Total Distributions		(0.65	)		(1.21	)		(1.02	)		(0.35	)
Net Asset Value, End of Period	$	9.78		$	10.72		$	10.99		$	10.70
Total Return++		(2.70	)%		8.88	%		12.82	%		10.66	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,111		$	1,519		$	326		$	107
Ratio of Expenses to Average Net Assets⁽¹⁾		1.35	%+		1.35	%+		1.26	%+^^		1.24	%+*
Ratio of Net Investment Income to Average Net Assets⁽¹⁾		6.25	%+		6.14	%+		6.90	%+^^		7.03	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.01	%*
Portfolio Turnover Rate		62	%		96	%		227	%		192	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.84	%		2.52	%		4.11	%		3.67	%*
Net Investment Income to Average Net Assets		5.76	%		4.97	%		4.05	%		4.60	%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

^^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.35% for Class L shares. Prior to September 16, 2013, the maximum ratio was 1.25% for Class L shares.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

High Yield Portfolio

	Class C
Selected Per Share Data and Ratios	Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.39
Income (Loss) from Investment Operations:
Net Investment Income†		0.24
Net Realized and Unrealized Loss		(0.62	)
Total from Investment Operations		(0.38	)
Distributions from and/or in Excess of:
Net Investment Income		(0.23	)
Net Asset Value, End of Period	$	9.78
Total Return++		(3.75	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	1,309
Ratios of Expenses to Average Net Assets⁽¹⁾		1.84	%+*
Ratio of Net Investment Income to Average Net Assets⁽¹⁾		5.60	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*
Portfolio Turnover Rate		62	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		2.15	%*
Net Investment Income to Average Net Assets		5.29	%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

High Yield Portfolio

	Class IS
Selected Per Share Data and Ratios	Year Ended September 30, 2015			Period from March 28, 2014^ to September 30, 2014
Net Asset Value, Beginning of Period	$	10.74		$	10.98
Income (Loss) from Investment Operations:
Net Investment Income†		0.69			0.37
Net Realized and Unrealized Loss		(0.92	)		(0.27	)
Total from Investment Operations		(0.23	)		0.10
Distributions from and/or in Excess of:
Net Investment Income		(0.66	)		(0.34	)
Net Realized Gain		(0.06	)		—
Total Distributions		(0.72	)		(0.34	)
Net Asset Value, End of Period	$	9.79		$	10.74
Total Return++		(2.17	)%		0.89	%#
Ratios and Supplemental Data:
Net Assets, End of Period, in (Thousands)	$	574		$	10
Ratio of Expenses to Average Net Assets⁽¹⁾		0.72	%+		0.72	%+*
Ratio of Net Investment Income to Average Net Assets⁽¹⁾		6.75	%+		6.66	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§*
Portfolio Turnover Rate		62	%		96	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation
Expenses to Average Net Assets		1.57	%		15.70	%*
Net Investment Income (Loss) to Average Net Assets		5.90	%		(8.32	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements

The accompanying financial statements relate to the High Yield Portfolio. The Portfolio seeks total return. The Portfolio offers five classes of shares — Class I, Class A, Class L, Class C and Class IS.

On April 30, 2015, the Portfolio commenced offering Class C shares.

1. Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), if there were no sales on a given day, the security is valued at the mean between the last reported bid and asked prices; (3) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at its latest reported sales price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) certain senior collateralized loans ("Senior Loans") are valued based on quotations received from an independent pricing service; (5) when market quotations are

not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (7) short-term debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such valuation does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser.

The Fund has procedures to determine the fair value of securities and other financial instruments for which

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

market prices are not readily available. Under these procedures, the Valuation Committee convenes on a regular and ad hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

investments. The inputs are summarized in the three broad levels listed below.

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

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

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 2015.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)			Total (000)
Assets:
Fixed Income Securities
Corporate Bonds	$	—	$	67,031	$	—		$	67,031
Sovereign		—		695		—			695
Variable Rate Senior Loan Interests		—		2,634		—			2,634
Total Fixed Income Securities		—		70,360		—			70,360
Common Stock
Auto Components		—		—		—	@		—	@
Short-Term Investment
Investment Company		991		—		—			991
Total Assets	$	991	$	70,360	$	—	@	$	71,351

@ Value is less than $500.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

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

	Common Stock (000)
Beginning Balance	$	—
Purchases		—	†
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		—	@
Realized gains (losses)		—
Ending Balance	$	—	@
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2015	$	—	@

† Includes one security which was purchased at zero cost.

@ Value is less than $500.

3. Senior Loans: Senior Loans are typically structured by a syndicate of lenders ("Lenders"), one or more of which administers the Senior Loan on behalf of the Lenders ("Agent"). Lenders may sell interests in Senior Loans to third parties ("Participations") or may assign all or a portion of their interest in a Senior Loan to third parties ("Assignments"). Senior Loans are exempt from registration under the Securities Act of 1933. Presently, Senior Loans are not readily marketable and are often subject to restrictions on resale.

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

5. Dividends and Distributions to Shareholders: Dividend income and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid monthly.

Net realized capital gains, if any, are distributed at least annually.

6. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. When the Portfolio buys an interest in a Senior Loan, it may receive a commitment fee which is paid to lenders on an ongoing basis based upon the undrawn portion committed by the lenders of the underlying Senior Loan. The Portfolio accrues the commitment fee over the expected term of the loan. When the Portfolio sells interest in a Senior Loan, it may be required to pay fees or commissions to the purchaser of the interest. Fees received in connection with loan amendments are accrued as earned. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended September 30, 2015, approximately $246,000 of advisory fees were waived and approximately $16,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Portfolio.

The distribution and shareholder services fees are used to support the expenses associated with servicing and maintaining

accounts. The Distributor may compensate other parties for providing shareholder support services to investors who purchase Class A, Class L and Class C shares.

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2015, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $58,570,000 and $36,979,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended September 30, 2015.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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 Portfolio due to its investment in the Liquidity Funds. For the year ended September 30, 2015, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the year ended September 30, 2015 is as follows:

Value September 30, 2014 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	—			$	36,236			$	35,245			$	1			$	991

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

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

2015 Distributions Paid From:				2014 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	3,836	$	94	$	1,880	$	81

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

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

Permanent differences, primarily due to a nondeductible expense and tax adjustments on bonds sold, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	11			$	(1	)		$	(10	)

At September 30, 2015, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	668			$	—

Post-October Currency And Specified Ordinary Losses (000)				Post-October Capital Losses (000)
$	—			$	1,419

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
High Yield Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of High Yield Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2015, and the related statements of operations for the year then ended, the statements changes in net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Portfolio's internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2015, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of High Yield Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 25, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance as of December 31, 2014, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one-year period and the period since inception on February 7, 2012. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. The Board noted that the Portfolio's management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; (ii) management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Federal Tax Notice (unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Portfolio during its taxable year ended September 30, 2015.

The Portfolio designated and paid approximately $94,000 as a long-term capital gain distribution.

In January, the Portfolio provides tax information to shareholders for the preceding calendar year.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

WE RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

• We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

• We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

4. HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

5. HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

6. HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.m. (EST)

• Writing to us at the following address:

Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

7. WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (70)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Kathleen A. Dennis (62)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

President, Cedarwood Associates (mutual fund and investment management consulting) (since July 2006); Chairperson of the Money Market and Alternatives Sub-Committee of the Investment Committee (since October 2006) and Director or Trustee of various Morgan Stanley Funds (since August 2006); formerly, Senior Managing Director of Victory Capital Management (1993-2006).

Director of various nonprofit organizations.

Nancy C. Everett (60)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Jakki L. Haussler (58)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Dr. Manuel H. Johnson (66)
c/o Johnson Smick
International, Inc.
220 I Street, N.E. – Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

Director of NVR, Inc. (home construction).

Joseph J. Kearns (73)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Michael F. Klein (56)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (79)
522 Fifth Avenue
New York, NY 10036

Chair of the
Board and
Trustee

Chair of the
Boards since
July 2006 and
Trustee since
July 1991

None.

W. Allen Reed (68)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (83)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

Formerly, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc. (1987-December 2012).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Positions(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (67)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of
Time Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (52)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (48)
522 Fifth Avenue
New York, NY 10036

Chief Compliance Officer

Since
December
1997

Joseph C. Benedetti (50)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (50)
522 Fifth Avenue
New York, NY 10036

Treasurer and Principal Financial Officer

Treasurer since July 2003 and Principal Financial Officer since September 2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (48)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves a one-year term, until his or her successor is elected and has qualified.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

IFTHYANN
1333184 EXP 11.30.16

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Corporate Bond Portfolio

Annual Report

September 30, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Overview					4
Portfolio of Investments					7
Statement of Assets and Liabilities					14
Statement of Operations					16
Statements of Changes in Net Assets					17
Financial Highlights					18
Notes to Financial Statements					22
Report of Independent Registered Public Accounting Firm					31
Investment Advisory Agreement Approval					32
U.S. Privacy Policy					34
Trustee and Officer Information					37

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Corporate Bond Portfolio (the "Portfolio") performed during the latest twelve-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

October 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Expense Example (unaudited)

Corporate Bond Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2015 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/15		Actual Ending Account Value 9/30/15		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
Corporate Bond Portfolio Class I	$	1,000.00	$	963.60	$	1,021.56	$	3.45	*	$	3.55	*		0.70	%
Corporate Bond Portfolio Class A		1,000.00		962.10		1,019.80		5.16	*		5.32	*		1.05
Corporate Bond Portfolio Class L		1,000.00		960.70		1,018.40		6.54	*		6.73	*		1.33
Corporate Bond Portfolio Class C		1,000.00		966.00		1,013.41		7.42	**		7.60	**		1.80

*** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited)

Corporate Bond Portfolio

The Corporate Bond Portfolio seeks above-average total return over a market cycle of three to five years.

Performance

For the fiscal year ended September 30, 2015, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of -0.04%, net of fees. The Portfolio's Class I shares underperformed against the Portfolio's benchmark, the Barclays U.S. Corporate Index (the "Index"), which returned 1.66%.

Factors Affecting Performance

ended the period relatively flat at 2 basis points higher.

⁽ⁱ⁾ Source for U.S. Treasury yields: Bloomberg L.P.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Corporate Bond Portfolio

• The Portfolio's investment grade credit exposure was a negative contributor to the Portfolio's returns. Weakness in the credit markets was broad based over the period, with spreads widening across all major segments of the investment grade market. Defensive positioning and positive security selection helped generate modest positive relative returns in a few select industries, such as consumer non-cyclicals and insurance, but these positions were overshadowed by the negative impact of overweights to other segments of the market where spreads widened. Bonds from the energy and metals subsectors of the markets performed the worst, as they were negatively impacted by falling commodity prices.

• An opportunistic allocation to below investment grade (high yield) credits also detracted from the Portfolio's performance. After outperforming investment grade bonds in prior periods, the high yield market underwent a significant repricing of risk over the last 12 months. As with the investment-grade market, given sharp declines in commodity prices, credits from the energy and metals sectors performed the worst.

• During the year, the Portfolio's defensive duration positioning detracted from returns as yields remained range bound during period. The duration and yield curve flattening positions were managed in part using futures and swaps.

Management Strategies

• Supported by a macro backdrop of sustained U.S. economic growth and low default risks, we see a significant value opportunity for investors in the U.S. corporate market. While macro developments may continue to create volatility in the short term, we believe current levels of investment grade corporate spreads present attractive value for long-term investors. After trading inside of long-term medians for much of 2014, spreads on the Barclays U.S. Investment Grade Corporate Index have reached levels that we believe compensate investors well given the risks present. We expect spreads to be further supported by an improving U.S. economy and gradually rising interest rates. Despite our view that investment grade corporates offer attractive valuation, we remain cognizant that the business cycle has matured. Company behavior in later-cycle environments is often tilted in favor of equity

holders at the expense of bond holders. As a result, we remain reliant upon our active, value-oriented approach and bottom-up credit research process to help identify the best value opportunities, while avoiding those companies where we believe there is limited scope to earn attractive returns.

• Given this outlook, we continue to position the Portfolio to be overweight credit risk, particularly in the financial sector, where we believe that the fundamental story remains one of secular de-risking as banks look to shore up their balance sheets, increase liquidity and reduce their risky activities. In the non-financial segment of the investment grade market, after entering the year more defensively positioned (in light of late-cycle behavior discussed above), we have moved the Portfolio to a modest overweight, given the significant repricing of risk that has taken place.

• The Portfolio continues to hold small allocations to high yield bonds, as we believe that both fundamentals and valuations may well compensate investors for bearing risk.

* Minimum Investment

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Corporate Bond Portfolio

Performance Compared to the Barclays U.S. Corporate Index⁽¹⁾ and the Lipper Corporate Debt Funds BBB-Rated Index⁽²⁾

	Period Ended September 30, 2015 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁸⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		–0.04	%		4.49	%		3.66	%		6.25	%
Portfolio — Class A Shares w/o sales charges⁽⁵⁾		–0.37			4.28			3.48			3.92
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁵⁾		–4.58			3.38			3.03			3.58
Portfolio — Class L Shares w/o sales charges⁽⁶⁾		–0.65			3.92			—			4.07
Portfolio — Class C Shares w/o sales charges⁽⁷⁾		—			—			—			–3.40
Portfolio — Class C Shares with maximum 1.00% deferred sales charges⁽⁷⁾		—			—			—			–4.36
Barclays U.S. Corporate Index		1.66			4.32			5.39			7.08
Lipper Corporate Debt Funds BBB-Rated Index		0.18			4.42			5.18			6.62

⁽¹⁾ The Barclays U.S. Corporate Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed rate, taxable corporate bond market. It includes USD-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers that meet specified maturity, liquidity and quality requirements.The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Corporate Debt Funds BBB-Rated Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Corporate Debt Funds BBB-Rated Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Corporate Debt Funds BBB-Rated Funds classification.

⁽³⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser and Distributor. Without such waivers and/or reimbursements, total returns would have been lower.

⁽⁴⁾ Commenced operations on August 31, 1990.

⁽⁵⁾ Commenced operations on May 20, 2002.

⁽⁶⁾ Commenced operations on June 16, 2008.

⁽⁷⁾ Commenced operations on April 30, 2015.

⁽⁸⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (97.2%)
Asset-Backed Securities (0.8%)
CVS Pass-Through Trust,
6.04%, 12/10/28	$	112	$	127
8.35%, 7/10/31 (a)		130		167
				294
Corporate Bonds (95.3%)
Finance (33.5%)
Abbey National Treasury Services PLC
3.05%, 8/23/18		120		124
ABN AMRO Bank N.V.
4.75%, 7/28/25 (a)		200		199
ACE INA Holdings, Inc.
3.35%, 5/15/24		125		125
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust
3.75%, 5/15/19		150		148
Alexandria Real Estate Equities, Inc.
3.90%, 6/15/23		50		50
Ally Financial, Inc.
4.13%, 3/30/20		100		99
American Campus Communities Operating Partnership LP
3.75%, 4/15/23		100		99
American Express Co.
3.63%, 12/5/24		75		74
American Express Credit Corp., MTN
2.38%, 5/26/20		200		200
American International Group, Inc.
4.88%, 6/1/22		100		111
Bank of America Corp.,
MTN
4.00%, 4/1/24 - 1/22/25		350		352
4.25%, 10/22/26		91		90
4.75%, 4/21/45		50		49
5.00%, 1/21/44		125		132
Bank of New York Mellon Corp. (The),
MTN
3.65%, 2/4/24		60		63
BBVA Bancomer SA
6.50%, 3/10/21 (a)		150		161
Bear Stearns Cos., LLC (The)
5.55%, 1/22/17		450		473
BNP Paribas SA,
MTN
4.25%, 10/15/24 (b)		200		199
5.00%, 1/15/21		95		107
Boston Properties LP
3.80%, 2/1/24		25		25
BPCE SA
5.15%, 7/21/24 (a)(b)		200		204
Capital One Bank, USA NA
3.38%, 2/15/23		342		333

	Face Amount (000)		Value (000)
Capital One Financial Corp.
2.45%, 4/24/19	$	50	$	50
Citigroup, Inc.,
5.50%, 9/13/25		175		191
6.68%, 9/13/43		50		61
8.13%, 7/15/39		100		144
CNA Financial Corp.
5.75%, 8/15/21		75		86
Cooperatieve Centrale Raiffeisen- Boerenleenbank BA
3.95%, 11/9/22		250		251
Credit Agricole SA
3.88%, 4/15/24 (a)(b)		250		259
Credit Suisse,
MTN
3.63%, 9/9/24		250		251
6.00%, 2/15/18		61		66
DBS Group Holdings Ltd.
2.25%, 7/16/19 (a)		225		227
Discover Bank
2.00%, 2/21/18		250		249
Discover Financial Services
3.95%, 11/6/24		75		74
Five Corners Funding Trust
4.42%, 11/15/23 (a)		200		210
General Electric Capital Corp.,
5.30%, 2/11/21		120		138
MTN
5.88%, 1/14/38		230		287
Goldman Sachs Group, Inc. (The),
MTN
4.80%, 7/8/44		125		127
6.25%, 2/1/41		75		91
6.75%, 10/1/37		205		245
Goodman Funding Pty Ltd.
6.38%, 4/15/21 (a)		250		288
Hartford Financial Services Group, Inc. (The)
5.50%, 3/30/20		275		310
Healthcare Trust of America Holdings LP
3.70%, 4/15/23		100		98
HSBC Finance Corp.
6.68%, 1/15/21		135		158
HSBC Holdings PLC
6.50%, 5/2/36		100		119
HSBC USA, Inc.
3.50%, 6/23/24 (b)		100		102
Industrial & Commercial Bank of China Ltd.,
MTN
3.23%, 11/13/19		250		255
ING Bank N.V.
5.80%, 9/25/23 (a)		100		109
Intesa Sanpaolo SpA
5.25%, 1/12/24		200		214

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
JPMorgan Chase & Co.,
4.95%, 6/1/45	$	130	$	131
5.50%, 10/15/40		150		170
Liberty Mutual Group, Inc.
4.85%, 8/1/44 (a)		50		49
Lincoln National Corp.
7.00%, 6/15/40		75		97
Lloyds Bank PLC
6.50%, 9/14/20 (a)		320		369
Massachusetts Mutual Life Insurance Co.
4.50%, 4/15/65 (a)		50		46
Metropolitan Life Global Funding I
2.00%, 4/14/20 (a)		200		199
Nationwide Building Society
6.25%, 2/25/20 (a)		260		305
Pacific LifeCorp
6.00%, 2/10/20 (a)		150		170
PNC Financial Services Group, Inc. (The)
3.90%, 4/29/24 (b)		80		81
Prudential Financial, Inc.
5.63%, 6/15/43 (c)		170		176
Realty Income Corp.
3.25%, 10/15/22		150		147
TD Ameritrade Holding Corp.
3.63%, 4/1/25		100		102
UBS AG
7.50%, 7/15/25		100		126
UnitedHealth Group, Inc.,
2.75%, 2/15/23 (b)		55		54
2.88%, 3/15/23 (b)		255		254
3.75%, 7/15/25		150		155
Weingarten Realty Investors
3.38%, 10/15/22		150		148
Wells Fargo & Co.,
2.15%, 1/15/19		60		60
Series M
3.45%, 2/13/23		125		125
MTN
4.10%, 6/3/26		250		253
4.13%, 8/15/23		130		135
				11,429
Industrials (54.3%)
21st Century Fox America, Inc.
4.75%, 9/15/44		150		148
ABB Treasury Center USA, Inc.
4.00%, 6/15/21 (a)		50		53
AbbVie, Inc.,
3.60%, 5/14/25		50		49
4.40%, 11/6/42		25		23

	Face Amount (000)		Value (000)
Actavis Funding SCS,
3.80%, 3/15/25	$	10	$	10
4.75%, 3/15/45		130		118
4.85%, 6/15/44		50		46
ADT Corp. (The)
3.50%, 7/15/22		125		111
Alfa SAB de CV
5.25%, 3/25/24 (a)(b)		200		205
Alibaba Group Holding Ltd.
2.50%, 11/28/19 (a)		200		197
Altria Group, Inc.,
2.85%, 8/9/22		115		113
5.38%, 1/31/44		55		60
Amazon.com, Inc.,
3.80%, 12/5/24		75		77
4.95%, 12/5/44		50		51
American Airlines Pass-Through Trust
4.00%, 7/15/25		180		184
Amgen, Inc.
5.15%, 11/15/41		98		101
Anadarko Petroleum Corp.
6.45%, 9/15/36		100		110
Anglo American Capital PLC
3.63%, 5/14/20 (a)(b)		200		175
Anheuser-Busch InBev Finance, Inc.
3.70%, 2/1/24 (b)		200		203
Apple, Inc.,
3.85%, 5/4/43		50		46
4.45%, 5/6/44		125		125
APT Pipelines Ltd.
4.20%, 3/23/25 (a)		200		190
Aramark Services, Inc.
5.75%, 3/15/20		95		99
Ashland, Inc.
6.88%, 5/15/43		50		47
AstraZeneca PLC
6.45%, 9/15/37		125		162
AT&T, Inc.,
5.55%, 8/15/41		100		102
6.30%, 1/15/38		225		248
Automatic Data Processing, Inc.
3.38%, 9/15/25		50		51
BAE Systems Holdings, Inc.
3.80%, 10/7/24 (a)		100		101
Baidu, Inc.
3.25%, 8/6/18		200		204
Barrick Gold Corp.
4.10%, 5/1/23		100		89
BAT International Finance PLC
3.50%, 6/15/22 (a)		75		77
Baxalta, Inc.
5.25%, 6/23/45 (a)		100		101

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Bayer US Finance LLC
3.38%, 10/8/24 (a)	$	200	$	201
BHP Billiton Finance USA Ltd.,
3.85%, 9/30/23 (b)		50		50
5.00%, 9/30/43		75		76
Biogen, Inc.
4.05%, 9/15/25		100		101
Bombardier, Inc.
6.13%, 1/15/23 (a)		116		86
Boston Scientific Corp.
3.85%, 5/15/25		100		99
BP Capital Markets PLC
3.51%, 3/17/25		125		124
British Airways Pass-Through Trust
4.63%, 6/20/24 (a)		166		174
Buckeye Partners LP
4.15%, 7/1/23 (b)		175		161
Burlington Northern Santa Fe LLC,
4.40%, 3/15/42		75		73
4.55%, 9/1/44		50		49
Cardinal Health, Inc.
3.75%, 9/15/25		125		127
Carrizo Oil & Gas, Inc.
6.25%, 4/15/23		75		66
Caterpillar Financial Services Corp.,
MTN
3.25%, 12/1/24		100		98
Caterpillar, Inc.
3.80%, 8/15/42		50		46
CBS Corp.,
4.60%, 1/15/45		25		22
4.90%, 8/15/44		50		46
CCO Safari II LLC
4.91%, 7/23/25 (a)		175		174
Celgene Corp.
3.88%, 8/15/25		100		100
CEVA Group PLC
7.00%, 3/1/21 (a)		75		67
Cimarex Energy Co.
5.88%, 5/1/22		150		158
Coca-Cola Co.
3.20%, 11/1/23		125		128
ConAgra Foods, Inc.
4.65%, 1/25/43		75		69
ConocoPhillips Co.
2.20%, 5/15/20		100		100
Continental Resources, Inc.
3.80%, 6/1/24		50		41
Daimler Finance North America LLC
8.50%, 1/18/31		161		229
DCP Midstream LLC
5.35%, 3/15/20 (a)		40		39

	Face Amount (000)		Value (000)
DCP Midstream Operating LP
3.88%, 3/15/23	$	150	$	126
Deere & Co.
3.90%, 6/9/42		60		57
Denbury Resources, Inc.
5.50%, 5/1/22		30		18
Deutsche Telekom International Finance BV
8.75%, 6/15/30		75		107
Devon Energy Corp.
4.75%, 5/15/42		100		89
DirecTV Holdings LLC/DIRECTV Financing Co., Inc.
5.15%, 3/15/42		75		71
Dollar Tree, Inc.
5.75%, 3/1/23 (a)		100		104
Eastman Chemical Co.
3.80%, 3/15/25		100		98
Eldorado Gold Corp.
6.13%, 12/15/20 (a)		105		92
Embraer Netherlands Finance BV
5.05%, 6/15/25		100		93
EMD Finance LLC
3.25%, 3/19/25 (a)		212		206
Energy Transfer Partners LP
6.50%, 2/1/42		125		115
EnLink Midstream Partners LP
5.60%, 4/1/44		50		46
Ensco PLC
5.75%, 10/1/44		50		35
Enterprise Products Operating LLC
4.45%, 2/15/43		175		150
FedEx Corp.
3.20%, 2/1/25		100		97
Ford Motor Credit Co., LLC
5.88%, 8/2/21		200		227
Freeport-McMoRan, Inc.
3.88%, 3/15/23		120		90
General Electric Co.
4.50%, 3/11/44		50		52
General Motors Financial Co., Inc.,
4.00%, 1/15/25		100		95
4.30%, 7/13/25		55		53
4.38%, 9/25/21		125		128
Gilead Sciences, Inc.,
3.65%, 3/1/26		25		25
4.50%, 2/1/45		25		24
4.80%, 4/1/44		50		50
GlaxoSmithKline Capital, Inc.
6.38%, 5/15/38		75		95
Glencore Funding LLC
4.13%, 5/30/23 (a)		170		134
Goldcorp, Inc.
5.45%, 6/9/44		50		46

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
HCA, Inc.
4.75%, 5/1/23	$	130	$	131
Heathrow Funding Ltd.
4.88%, 7/15/21 (a)		190		209
Hilcorp Energy I LP/Hilcorp Finance Co.
5.75%, 10/1/25 (a)		55		49
Home Depot, Inc.,
3.35%, 9/15/25		25		25
5.88%, 12/16/36		109		134
HP Enterprise Co.
4.90%, 10/15/25		125		125
Hutchison Whampoa International 14 Ltd.
1.63%, 10/31/17 (a)		200		199
Intel Corp.
2.70%, 12/15/22		200		197
Kinder Morgan Energy Partners LP
4.15%, 2/1/24		150		136
Kinder Morgan, Inc.,
4.30%, 6/1/25 (b)		50		45
5.55%, 6/1/45		200		167
Koninklijke Philips N.V.
3.75%, 3/15/22		300		305
Kroger Co. (The)
6.90%, 4/15/38		80		101
Lundin Mining Corp.
7.50%, 11/1/20 (a)		72		70
LyondellBasell Industries N.V.
4.63%, 2/26/55		75		64
Mallinckrodt International Finance SA/ Mallinckrodt CB LLC
5.50%, 4/15/25 (a)		100		90
Marathon Oil Corp.
2.70%, 6/1/20		200		194
MasTec, Inc.
4.88%, 3/15/23		140		116
McDonald's Corp.,
MTN
4.60%, 5/26/45		100		100
Medtronic, Inc.
4.63%, 3/15/45		200		207
Merck & Co., Inc.
2.80%, 5/18/23		250		249
Motorola Solutions, Inc.
4.00%, 9/1/24		200		181
MPLX LP
4.00%, 2/15/25		100		92
NBC Universal Media LLC
5.95%, 4/1/41		275		330
NetApp, Inc.
2.00%, 12/15/17		100		100
Netflix, Inc.
5.50%, 2/15/22 (a)		95		96

	Face Amount (000)		Value (000)
Nexen Energy ULC
6.40%, 5/15/37	$	100	$	118
Noble Energy, Inc.,
5.05%, 11/15/44		50		43
5.88%, 6/1/24		50		50
NOVA Chemicals Corp.
5.25%, 8/1/23 (a)		120		117
Novartis Capital Corp.
4.40%, 5/6/44		75		81
Omnicom Group, Inc.,
3.63%, 5/1/22		95		96
3.65%, 11/1/24		23		23
Ooredoo International Finance Ltd.
3.25%, 2/21/23 (a)		225		219
Oracle Corp.
4.50%, 7/8/44		150		152
Orange SA
9.00%, 3/1/31		50		71
PepsiCo, Inc.
3.60%, 3/1/24		200		208
Philip Morris International, Inc.
4.50%, 3/20/42		150		151
Phillips 66
5.88%, 5/1/42		25		27
Phillips 66 Partners LP
4.68%, 2/15/45		25		21
Plains All American Pipeline LP/ PAA Finance Corp.
6.70%, 5/15/36		61		67
QUALCOMM, Inc.
4.80%, 5/20/45		120		105
Quest Diagnostics, Inc.
2.70%, 4/1/19 (b)		200		202
QVC, Inc.
4.38%, 3/15/23		150		146
Rowan Cos., Inc.
5.85%, 1/15/44 (b)		75		47
RR Donnelley & Sons Co.
7.88%, 3/15/21		75		78
Ryder System, Inc.,
MTN
2.65%, 3/2/20		50		50
Shell International Finance BV
2.13%, 5/11/20		175		175
SM Energy Co.
6.13%, 11/15/22		100		93
Southern Copper Corp.
7.50%, 7/27/35		100		98
Spectra Energy Capital LLC
7.50%, 9/15/38		100		110
Spectrum Brands, Inc.
5.75%, 7/15/25 (a)		25		26

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
T-Mobile USA, Inc.
6.73%, 4/28/22	$	75	$	75
Target Corp.
4.00%, 7/1/42		75		74
Telefonica Europe BV
8.25%, 9/15/30		84		109
Telstra Corp., Ltd.
3.13%, 4/7/25 (a)		65		63
Teva Pharmaceutical Finance IV BV
3.65%, 11/10/21		27		27
Tiffany & Co.
4.90%, 10/1/44		50		49
Time Warner Cable, Inc.,
4.50%, 9/15/42		100		79
6.75%, 6/15/39		80		80
Time Warner, Inc.,
4.65%, 6/1/44		25		24
7.70%, 5/1/32		141		184
Toyota Motor Credit Corp.,
MTN
2.75%, 5/17/21		125		127
TransCanada PipeLines Ltd.
7.63%, 1/15/39		75		96
Transocean, Inc.,
4.30%, 10/15/22		75		47
6.88%, 12/15/21		100		75
Trinity Industries, Inc.
4.55%, 10/1/24		200		189
Tyco International Finance SA
3.90%, 2/14/26		75		76
Tyson Foods, Inc.
3.95%, 8/15/24		30		31
Union Pacific Railroad Co., Pass-Through Trust
3.23%, 5/14/26		193		192
United Airlines Pass-Through Trust,
Class A
4.30%, 8/15/25		214		223
United Rentals North America, Inc.
5.75%, 11/15/24		80		77
Vale Overseas Ltd.
6.88%, 11/21/36 (b)		75		59
Verizon Communications, Inc.,
3.50%, 11/1/24		50		49
4.67%, 3/15/55		278		240
5.01%, 8/21/54		235		215
Vodafone Group PLC
4.38%, 2/19/43		50		44
Volkswagen Group of America Finance LLC
2.40%, 5/22/20 (a)(b)		200		186
Walgreens Boots Alliance, Inc.
3.80%, 11/18/24		25		25

	Face Amount (000)		Value (000)
Williams Partners LP/ACMP Finance Corp.
4.88%, 5/15/23	$	125	$	116
WM Wrigley Jr. Co.
2.90%, 10/21/19 (a)		230		237
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.
5.38%, 3/15/22 (b)		115		106
Yum! Brands, Inc.
3.88%, 11/1/20		125		131
Zimmer Biomet Holdings, Inc.
5.75%, 11/30/39		50		55
				18,549
Utilities (7.5%)
Alabama Power Co.
3.75%, 3/1/45		125		113
Appalachian Power Co.
7.00%, 4/1/38		150		194
Boston Gas Co.
4.49%, 2/15/42 (a)		125		128
CEZ AS
4.25%, 4/3/22 (a)		200		212
DTE Energy Co.,
Series C
3.50%, 6/1/24		200		203
Duke Energy Carolinas LLC
3.75%, 6/1/45		75		71
Enel Finance International N.V.
6.00%, 10/7/39 (a)		100		114
Entergy Corp.
4.00%, 7/15/22		50		52
Exelon Generation Co., LLC
6.25%, 10/1/39		145		155
Jersey Central Power & Light Co.
4.70%, 4/1/24 (a)(b)		200		210
Nevada Power Co.,
Series N
6.65%, 4/1/36		150		191
Oncor Electric Delivery Co., LLC
2.95%, 4/1/25 (a)		75		72
Sempra Energy
6.00%, 10/15/39		125		146
South Carolina Electric & Gas Co.
4.50%, 6/1/64		75		72
TransAlta Corp.
4.50%, 11/15/22		235		231
Virginia Electric & Power Co.
2.95%, 1/15/22		325		328
WEC Energy Group, Inc.
3.55%, 6/15/25		75		76
				2,568
				32,546

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

	Face Amount (000)		Value (000)
Sovereign (0.6%)
Sinopec Group Overseas Development 2015 Ltd.
2.50%, 4/28/20 (a)	$	200	$	197
Variable Rate Senior Loan Interests (0.5%)
Industrials (0.5%)
Aspect Software, Inc.,
Term B
7.50%, 11/12/15		94		92
Diamond Resorts Corp.,
Term Loan
5.50%, 10/30/15		70		70
				162
Total Fixed Income Securities (Cost $33,598)				33,199
	Shares
Short-Term Investments (7.3%)
Securities held as Collateral on Loaned Securities (5.1%)
Investment Company (4.4%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G)		1,511,169		1,511
	Face Amount (000)
Repurchase Agreements (0.7%)
Barclays Capital, Inc., (0.10%, dated 9/30/15, due 10/1/15; proceeds $127; fully collateralized by a U.S. Government obligation; 3.13% due 8/15/44; valued at $129)	$	127		127
BNP Paribas Securities Corp., (0.09%, dated 9/30/15, due 10/1/15; proceeds $90; fully collateralized by various U.S. Government agency securities; 0.00% — 7.25% due 11/5/15 — 10/11/33 and U.S. Government obligations; 0.00% — 1.88% due 10/15/15 — 9/30/17; valued at $92)		90		90
				217
Total Securities held as Collateral on Loaned Securities (Cost $1,728)				1,728

	Shares		Value (000)
Investment Company (1.2%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $400)		399,762	$	400
	Face Amount (000)
U.S. Treasury Security (1.0%)
U.S. Treasury Bill
0.26%, 3/10/16 (d)(e) (Cost $360)	$	360		360
Total Short-Term Investments (Cost $2,488)				2,488
Total Investments (104.5%) (Cost $36,086) Including $2,817 of Securities Loaned (f)(g)				35,687
Liabilities in Excess of Other Assets (-4.5%)				(1,543	)
Net Assets (100.0%)			$	34,144

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

(b) All or a portion of this security was on loan at September 30, 2015.

(c) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on September 30, 2015.

(d) Rate shown is the yield to maturity at September 30, 2015.

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

(f) Securities are available for collateral in connection with open futures contracts and swap agreements.

(g) At September 30, 2015, the aggregate cost for Federal income tax purposes is approximately $36,086,000. The aggregate gross unrealized appreciation is approximately $759,000 and the aggregate gross unrealized depreciation is approximately $1,158,000 resulting in net unrealized depreciation of approximately $399,000.

MTN Medium Term Note.

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2015:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		24	$	5,257		Dec-15	$	8
U.S. Treasury 5 yr. Note		19		2,290		Dec-15		17
U.S. Treasury Long Bond		4		629		Dec-15		11
Short:
U.S. Treasury 10 yr. Note		54		(6,952	)	Dec-15		(84	)
U.S. Treasury Ultra Long Bond		6		(962	)	Dec-15		(13	)
							$	(61	)

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Corporate Bond Portfolio

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 2015:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Appreciation (Depreciation) (000)			Value (000)			Credit Rating of Reference Obligation† (unaudited)
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	200		1.00	%	3/20/19	$	4		$	(7	)	$	(3	)	BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		200		1.00		12/20/18		(4	)		—	@		(4	)	BBB
Morgan Stanley & Co., LLC* CDX.NA.HY.24	Buy		173		5.00		6/20/20		(13	)		8			(5	)	NR
Morgan Stanley & Co., LLC* CDX.NA.IG.24	Buy		550		1.00		6/20/20		(10	)		8			(2	)	NR
		$	1,123					$	(23	)	$	9		$	(14	)

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at September 30, 2015:

Swap Counterparty	Floating Rate Index	Pay/Receive Floating Rate	Fixed Rate			Termination Date	Notional Amount (000)		Unrealized Depreciation (000)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		1.59	%	5/5/20	$	1,400	$	(25	)
Morgan Stanley & Co., LLC*	3 Month LIBOR	Receive		2.49		6/9/25		625		(32	)
									$	(57	)

@ Value is less than $500.

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

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

LIBOR London Interbank Offered Rate.

NR Not rated.

Portfolio Composition**

Classification	Percentage of Total Investments
Industrials		54.6	%
Finance		33.7
Utilities		7.6
Other***		4.1
Total Investments		100.0	%****

** Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2015.

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

**** Does not include open long/short futures contracts with an underlying face amount of approximately $16,090,000 with net unrealized depreciation of approximately $61,000. Does not include open swap agreements with net unrealized depreciation of approximately $48,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Corporate Bond Portfolio

Statement of Assets and Liabilities	September 30, 2015 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $34,175)	$	33,776
Investment in Security of Affiliated Issuer, at Value (Cost $1,911)		1,911
Total Investments in Securities, at Value (Cost $36,086)		35,687
Interest Receivable		364
Due from Adviser		20
Premium Paid on Open Swap Agreements		4
Receivable for Variation Margin on Futures Contracts		4
Receivable for Investments Sold		404
Receivable for Portfolio Shares Sold		1
Receivable for Variation Margin on Swap Agreements		1
Receivable from Affiliate		—	@
Unrealized Appreciation on Swap Agreements		—	@
Other Assets		39
Total Assets		36,524
Liabilities:
Collateral on Securities Loaned, at Value		1,845
Bank overdraft		285
Payable for Investments Purchased		125
Payable for Portfolio Shares Redeemed		35
Payable for Professional Fees		24
Payable for Trustees' Fees and Expenses		23
Payable for Custodian Fees		7
Unrealized Depreciation on Swap Agreements		7
Premium Received on Open Swap Agreements		4
Payable for Transfer Agency Fees — Class I		2
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Sub Transfer Agency Fees — Class I		2
Payable for Sub Transfer Agency Fees — Class A		—	@
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Administration Fees		2
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class L		1
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		17
Total Liabilities		2,380
Net Assets	$	34,144
Net Assets Consist Of:
Paid-in-Capital	$	90,366
Accumulated Undistributed Net Investment Income		437
Accumulated Net Realized Loss		(56,151	)
Unrealized Appreciation (Depreciation) on:
Investments		(399	)
Futures Contracts		(61	)
Swap Agreements		(48	)
Net Assets	$	34,144

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Corporate Bond Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2015 (000)
CLASS I:
Net Assets	$	31,427
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		2,909,631
Net Asset Value, Offering and Redemption Price Per Share	$	10.80
CLASS A:
Net Assets	$	544
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		50,316
Net Asset Value, Redemption Price Per Share	$	10.81
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.48
Maximum Offering Price Per Share	$	11.29
CLASS L:
Net Assets	$	2,163
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		200,430
Net Asset Value, Offering and Redemption Price Per Share	$	10.79
CLASS C:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		892
Net Asset Value, Offering and Redemption Price Per Share	$	10.77
⁽¹⁾ Including: Securities on Loan, at Value:	$	2,817

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Corporate Bond Portfolio

Statement of Operations	Year Ended September 30, 2015 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	1,518
Income from Securities Loaned — Net		12
Dividends from Security of Affiliated Issuer (Note G)		1
Total Investment Income		1,531
Expenses:
Advisory Fees (Note B)		143
Professional Fees		105
Custodian Fees (Note F)		41
Registration Fees		41
Pricing Fees		35
Administration Fees (Note C)		30
Shareholder Services Fees — Class A (Note D)		1
Distribution and Shareholder Services Fees — Class L (Note D)		12
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Transfer Agency Fees — Class I (Note E)		8
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Shareholder Reporting Fees		12
Sub Transfer Agency Fees — Class I		2
Sub Transfer Agency Fees — Class A		1
Sub Transfer Agency Fees — Class L		1
Sub Transfer Agency Fees — Class C		1
Trustees' Fees and Expenses		2
Other Expenses		18
Total Expenses		458
Waiver of Advisory Fees (Note B)		(143	)
Expenses Reimbursed by Adviser (Note B)		(17	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(10	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(2	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Waiver of Shareholder Servicing Fees — Class A (Note D)		(1	)
Net Expenses		283
Net Investment Income		1,248
Realized Gain (Loss):
Investments Sold		805
Foreign Currency Transactions		(—	@)
Futures Contracts		254
Swap Agreements		(325	)
Net Realized Gain		734
Change in Unrealized Appreciation (Depreciation):
Investments		(1,699	)
Futures Contracts		(107	)
Swap Agreements		(132	)
Net Change in Unrealized Appreciation (Depreciation)		(1,938	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(1,204	)
Net Increase in Net Assets Resulting from Operations	$	44

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Corporate Bond Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2015 (000)			Year Ended September 30, 2014 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,248		$	1,366
Net Realized Gain		734			1,225
Net Change in Unrealized Appreciation (Depreciation)		(1,938	)		751
Net Increase in Net Assets Resulting from Operations		44			3,342
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1,021	)		(1,066	)
Class A:
Net Investment Income		(14	)		(33	)
Class L:
Net Investment Income		(54	)		(59	)
Class C:
Net Investment Income		(—	@)*		—
Total Distributions		(1,089	)		(1,158	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		2,961			3,095
Distributions Reinvested		1,021			1,066
Redeemed		(8,193	)		(5,724	)
Class A:
Subscribed		427			700
Distributions Reinvested		12			31
Redeemed		(281	)		(1,596	)
Class L:
Subscribed		108			23
Distributions Reinvested		54			59
Redeemed		(338	)		(459	)
Class C:
Subscribed		10	*		—
Net Decrease in Net Assets Resulting from Capital Share Transactions		(4,219	)		(2,805	)
Total Decrease in Net Assets		(5,264	)		(621	)
Net Assets:
Beginning of Period		39,408			40,029
End of Period (Including Accumulated Undistributed Net Investment Income of $437 and $466)	$	34,144		$	39,408
(1) Capital Share Transactions:
Class I:
Shares Subscribed		266			282
Shares Issued on Distributions Reinvested		92			100
Shares Redeemed		(740	)		(527	)
Net Decrease in Class I Shares Outstanding		(382	)		(145	)
Class A:
Shares Subscribed		38			64
Shares Issued on Distributions Reinvested		1			3
Shares Redeemed		(25	)		(144	)
Net Increase (Decrease) in Class A Shares Outstanding		14			(77	)
Class L:
Shares Subscribed		10			2
Shares Issued on Distributions Reinvested		5			6
Shares Redeemed		(31	)		(43	)
Net Decrease in Class L Shares Outstanding		(16	)		(35	)
Class C:
Shares Subscribed		1	*		—

* For the period April 30, 2015 through September 30, 2015.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Corporate Bond Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	11.12		$	10.53		$	10.93		$	10.27		$	10.17
Income (Loss) from Investment Operations:
Net Investment Income†		0.37			0.38			0.32			0.36			0.33
Net Realized and Unrealized Gain (Loss)		(0.37	)		0.53			(0.40	)		0.73			0.07
Total from Investment Operations		—			0.91			(0.08	)		1.09			0.40
Distributions from and/or in Excess of:
Net Investment Income		(0.32	)		(0.32	)		(0.32	)		(0.43	)		(0.30	)
Net Asset Value, End of Period	$	10.80		$	11.12		$	10.53		$	10.93		$	10.27
Total Return++		(0.04	)%		8.79	%		(0.77	)%		10.94	%		4.05	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	31,427		$	36,598		$	36,186		$	44,779		$	62,410
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.70	%+		0.70	%+		1.18	%+^		1.00	%+		0.80	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		3.33	%+		3.47	%+		2.91	%+^		3.41	%+		3.27	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		45	%		50	%		63	%		129	%		224	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.15	%		1.13	%		1.21	%		N/A			N/A
Net Investment Income to Average Net Assets		2.88	%		3.04	%		2.88	%		N/A			N/A

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

§ Amount is less than 0.005%.

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.70% for Class I shares.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Corporate Bond Portfolio

	Class A
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	11.12		$	10.53		$	10.92		$	10.27		$	10.16
Income (Loss) from Investment Operations:
Net Investment Income†		0.33			0.34			0.30			0.34			0.31
Net Realized and Unrealized Gain (Loss)		(0.37	)		0.53			(0.39	)		0.73			0.08
Total from Investment Operations		(0.04	)		0.87			(0.09	)		1.07			0.39
Distributions from and/or in Excess of:
Net Investment Income		(0.27	)		(0.28	)		(0.30	)		(0.42	)		(0.28	)
Net Asset Value, End of Period	$	10.81		$	11.12		$	10.53		$	10.92		$	10.27
Total Return++		(0.37	)%		8.43	%		(0.83	)%		10.69	%		3.99	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	544		$	405		$	1,194		$	961		$	408
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.05	%+		1.05	%+		1.34	%+^		1.15	%+		0.95	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.98	%+		3.12	%+		2.76	%+^		3.26	%+		3.12	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		45	%		50	%		63	%		129	%		224	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.88	%		1.60	%		1.47	%		1.25	%		1.05	%
Net Investment Income to Average Net Assets		2.15	%		2.57	%		2.63	%		3.16	%		3.02	%

† Per share amount is based on average shares outstanding.

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

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.05% for Class A shares.

§ Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Corporate Bond Portfolio

	Class L
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	11.11		$	10.52		$	10.92		$	10.26		$	10.15
Income (Loss) from Investment Operations:
Net Investment Income†		0.30			0.31			0.26			0.30			0.28
Net Realized and Unrealized Gain (Loss)		(0.37	)		0.54			(0.40	)		0.74			0.08
Total from Investment Operations		(0.07	)		0.85			(0.14	)		1.04			0.36
Distributions from and/or in Excess of:
Net Investment Income		(0.25	)		(0.26	)		(0.26	)		(0.38	)		(0.25	)
Net Asset Value, End of Period	$	10.79		$	11.11		$	10.52		$	10.92		$	10.26
Total Return++		(0.65	)%		8.15	%		(1.28	)%		10.38	%		3.51	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,163		$	2,405		$	2,649		$	3,149		$	4,080
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.31	%+		1.30	%+		1.69	%+^		1.50	%+		1.30	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.72	%+		2.87	%+		2.40	%+^		2.91	%+		2.77	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		45	%		50	%		63	%		129	%		224	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.73	%		1.66	%		1.70	%		N/A			N/A
Net Investment Income to Average Net Assets		2.30	%		2.51	%		2.39	%		N/A			N/A

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.52% for Class L shares.

§ Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Corporate Bond Portfolio

	Class C
Selected Per Share Data and Ratios	Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	11.21
Income (Loss) from Investment Operations:
Net Investment Income†		0.10
Net Realized and Unrealized Loss		(0.48	)
Total from Investment Operations		(0.38	)
Distributions from and/or in Excess of:
Net Investment Income		(0.06	)
Net Asset Value, End of Period	$	10.77
Total Return++		(3.40	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	10
Ratios of Expenses to Average Net Assets Excluding Non Operating Expenses ⁽¹⁾		1.80	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		2.25	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*
Portfolio Turnover Rate		45	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		38.20	%*
Net Investment Loss to Average Net Assets		(34.15	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements

Morgan Stanley Institutional Fund Trust ("MSIFT'' or the "Fund'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Fund is comprised of nine separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). The Fund applies investment company accounting and reporting guidance. All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Corporate Bond Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers four classes of shares — Class I, Class A, Class L and Class C.

On April 30, 2015, the Portfolio commenced offering Class C shares.

1. Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (2) certain senior collateralized loans ("Senior Loans") are valued based on quotations received from an independent pricing service; (3) futures are valued at the latest price published by the commodities exchange on which they trade; (4) swaps are marked-to-market daily based upon quotations from market makers; (5) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the

closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (7) short-term taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

The Fund has procedures to determine the fair value of securities and other financial instruments for which

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

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

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

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 2015.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Asset-Backed Securities	$	—	$	294	$	—	$	294
Corporate Bonds		—		32,546		—		32,546
Sovereign		—		197		—		197
Variable Rate Senior Loan Interests		—		162		—		162
Total Fixed Income Securities		—		33,199		—		33,199
Short-Term Investments
Investment Company		1,911		—		—		1,911
Repurchase Agreements		—		217		—		217
U.S Treasury Security		—		360		—		360
Total Short-Term Investments		1,911		577		—		2,488
Futures Contracts		36		—		—		36
Credit Default Swap Agreements		—		16		—		16
Total Assets		1,947		33,792		—		35,739

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Liabilities:
Futures Contracts	$	(97	)	$	—		$	—	$	(97	)
Credit Default Swap Agreement		—			(7	)		—		(7	)
Interest Rate Swap Agreements		—			(57	)		—		(57	)
Total Liabilities		(97	)		(64	)		—		(161	)
Total	$	1,850		$	33,728		$	—	$	35,578

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

settled through either physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. During the period the futures contract is open, payments are received from or made to the broker based upon changes in the value of the contract (the variation margin). A decision as to whether, when and how to use futures contracts involves the exercise of skill and judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Portfolio's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with which the Portfolio has open positions in the futures contract.

exchange rates or other factors are not correctly anticipated by the Portfolio or if the reference index, security or investments do not perform as expected. During the period swap agreements are open, payments are received from or made to the clearinghouse or counterparty based upon changes in the value of the contract (variation margin). The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap agreement and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability, respectively, in the Statement of Assets and Liabilities.

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2015.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(a)

Swap Agreement

Unrealized Appreciation on
Swap Agreement

Credit Risk

_—

Swap Agreements

Variation Margin on
Swap Agreements

Credit Risk

(a)

Total

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(97

)(a)

Swap Agreement

Unrealized Depreciation on
Swap Agreement

Credit Risk

₍₇

₎

Swap Agreements

Variation Margin on
Swap Agreements

Interest Rate Risk

(57

)(a)

Total

(161

)

@ Amount is less than $500.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	254
Credit Risk	Swap Agreements		(19	)
Interest Rate Risk	Swap Agreements		(306	)
Total		$	(71	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Interest Rate Risk	Futures Contracts	$	(107	)
Credit Risk	Swap Agreements		8
Interest Rate Risk	Swap Agreements		(140	)
Total		$	(239	)

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

At September 30, 2015, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)			Liabilities(c) (000)
Swap Agreements	$	—	@	$	(7	)

(b) Excludes exchange traded derivatives.

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

@ Amount is less than $500.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	—	@	$	(—	@)	$	—	$	0
Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	7		$	(—	@)	$	—	$	7

@ Amount is less than $500.

For the year ended September 30, 2015, the approximate average monthly amount outstanding for each derivative type is as follows:

Futures Contracts:
Average monthly original value	$	37,834,000
Swap Agreements:
Average monthly notional amount	$	15,425,000

5. Senior Loans: Senior Loans are typically structured by a syndicate of lenders ("Lenders"), one or more of which administers the Senior Loan on behalf of the Lenders ("Agent"). Lenders may sell interests in Senior Loans to third parties ("Participations") or may assign all or a portion of their interest in a Senior Loan to third parties ("Assignments"). Senior Loans are exempt from registration under the Securities Act of 1933. Presently, Senior Loans are not readily marketable and are often subject to restrictions on resale.

Based on pre-established guidelines, the securities lending agent invests any cash collateral that is received in an

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

affiliated money market portfolio and repurchase agreements. Securities lending income is generated from the earnings on the invested collateral and borrowing fees, less any rebates owed to the borrowers and compensation to the lending agent, and is recorded as "Income from Securities Loaned — Net" in the Portfolio's Statement of Operations. Risks in securities lending transactions are that a borrower may not provide additional collateral when required or return the securities when due, and that the value of the short-term investments will be less than the amount of cash collateral plus any rebate that is required to be returned to the borrower.

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

The following table presents securities on loan that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	2,817	(d)	$	—	$	(2,817	)(e)(f)	$	0

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

(e) The Portfolio received cash collateral of approximately $1,845,000, of which approximately $1,728,000 was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. As of September 30, 2015, there was uninvested cash of approximately $117,000, which is not reflected in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $1,025,000 in the form of U.S. Government agency securities and U.S. Government obligations, which the Portfolio cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

(f) The actual collateral received is greater than the amount shown here due to overcollateralization.

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

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

9. Security Transactions, Income and Expenses: Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses on the sale of investment securities are determined on the specific identified cost method. When the Portfolio buys an interest in a Senior Loan, it may receive a commitment fee which is paid to lenders on an ongoing basis based upon the undrawn portion committed by the lenders of the underlying Senior Loan. The Portfolio accrues the commitment fee over the expected term of the loan. When the Portfolio sells interest in a Senior Loan, it may be required to pay fees or commissions to the purchaser of the interest. Fees received in connection with loan amendments are accrued as earned. Dividend income and other distributions are recorded on the ex-dividend date (except for certain foreign dividends which may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

were waived and approximately $30,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class A shares. The Distributor has agreed to waive the 12b-1 fees on Class A shares of the Portfolio to the extent it exceeds 0.15% of the average daily net assets of such shares on an annualized basis. This waiver will continue for at least one year from the date of the Portfolio's prospectus or until such time that the Trustees act to discontinue all or a portion of such waiver when it deems such action is appropriate. For the year ended September 30, 2015, this waiver amounted to approximately $1,000.

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2015, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $16,379,000 and $20,135,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended September 30, 2015.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the year ended September 30, 2015 is as follows:

Value September 30, 2014 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	5,054			$	13,658			$	16,801			$	1			$	1,911

The Portfolio has an unfunded Deferred Compensation Plan (the "Compensation Plan"), which allows each independent

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Trustee to defer payment of all, or a portion, of the fees he or she receives for serving on the Board of Trustees. Each eligible Trustee generally may elect to have the deferred amounts credited with a return equal to the total return on one or more of the Morgan Stanley funds that are offered as investment options under the Compensation Plan. Appreciation/depreciation and distributions received from these investments are recorded with an offsetting increase/decrease in the deferred compensation obligation and do not affect the NAV of the Portfolio.

2015 Distributions Paid From: Ordinary Income (000)				2014 Distributions Paid From: Ordinary Income (000)
$	1,089			$	1,158

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	(188	)		$	188			$	—

At September 30, 2015, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	453			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	48,099	September 30, 2017
	8,130	September 30, 2018

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Corporate Bond Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Corporate Bond Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Portfolio's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmationof securities owned as of September 30, 2015, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Corporate Bond Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 25, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2014, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one- and three-year periods but below its peer group average for the five-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. When a fund's management fee and/or its total expense ratio are higher than its peers, the Board and the Adviser discuss the reasons for this and, where appropriate, they discuss possible waivers and/or caps. The Board noted that while the Portfolio's management fee was lower than its peer group average, the total expense ratio was higher than its peer group average. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; (ii) management fee was competitive with its peer group average; and (iii) total expense ratio was acceptable.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

WE RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

• We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

• We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

4. HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

5. HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

6. HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.m. (EST)

• Writing to us at the following address:

Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

7. WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years and
Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (70)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Kathleen A. Dennis (62)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various nonprofit organizations.

Nancy C. Everett (60)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years and
Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Jakki L. Haussler (58)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Dr. Manuel H. Johnson (66)
c/o Johnson Smick International, Inc.
220 I Street, N.E. —
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

Director of NVR, Inc. (home construction).

Joseph J. Kearns (73)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years and
Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Michael F. Klein (56)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (79)
522 Fifth Avenue
New York, NY 10036

Chair of the
Board and
Trustee

Chair of the
Boards since
July 2006 and
Trustee since
July 1991

None.

W. Allen Reed (68)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the
Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (83)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

Formerly, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc. (1987-December 2012).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Positions(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (67)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (52)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (48)
522 Fifth Avenue
New York, NY 10036

Chief
Compliance
Officer

Since
December
1997

Joseph C. Benedetti (50)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (50)
522 Fifth Avenue
New York, NY 10036

Treasurer and
Principal
Financial
Officer

Treasurer
since July
2003 and
Principal
Financial
Officer since
September
2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (48)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves a one-year term, until his or her successor is elected and has qualified.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

(This Page has been left blank intentionally.)

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

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

IFTCBANN
1332377 EXP 11.30.16

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Limited Duration Portfolio

Annual Report

September 30, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Overview					4
Portfolio of Investments					7
Statement of Assets and Liabilities					13
Statement of Operations					15
Statements of Changes in Net Assets					16
Financial Highlights					17
Notes to Financial Statements					21
Report of Independent Registered Public Accounting Firm					31
Investment Advisory Agreement Approval					32
U.S. Privacy Policy					34
Trustee and Officer Information					37

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Limited Duration Portfolio (the "Portfolio") performed during the latest twelve-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

October 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Expense Example (unaudited)

Limited Duration Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2015 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/15		Actual Ending Account Value 9/30/15		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
Limited Duration Portfolio Class I	$	1,000.00	$	997.70	$	1,022.36	$	2.70	*	$	2.74	*		0.54	%
Limited Duration Portfolio Class A		1,000.00		994.70		1,020.66		4.40	*		4.46	*		0.88
Limited Duration Portfolio Class L		1,000.00		993.10		1,018.90		6.15	*		6.23	*		1.23
Limited Duration Portfolio Class C		1,000.00		990.80		1,014.13		6.80	**		6.88	**		1.63

*** Annualized

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited)

Limited Duration Portfolio

The Limited Duration Portfolio seeks above-average total return over a market cycle of three to five years.

Performance

For the fiscal year ended September 30, 2015, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of 0.06%, net of fees. The Portfolio's Class I shares underperformed against the Portfolio's benchmark Barclays 1-3 Year U.S. Government/Credit Index (the "Index"), which returned 1.19%.

Factors Affecting Performance

⁽ⁱ⁾ Source for U.S. Treasury yields: Bloomberg L.P.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Limited Duration Portfolio

• Commercial mortgage-backed securities (CMBS) spreads also widened significantly in the latter half

Management Strategies

• Throughout the period, the Portfolio was positioned with an overweight to investment grade credit, particularly in financials, as we believe valuations relative to fundamentals have been attractive. This detracted from relative performance as global volatility pushed spreads wider.

• The Portfolio has also been positioned with an allocation to short-maturity, high-quality ABS. This position is primarily in credit card, auto, and business and construction equipment securities. The position had a small positive effect on relative performance during the period.

⁽ⁱⁱ⁾ S&P/Case-Shiller 20-City Composite Home Price Index, an index gauging the value of residential real estate in 20 major U.S. metropolitan areas.

⁽ⁱⁱⁱ⁾ U.S. Census Bureau

^(iv) National Association of Realtors

^(v) National Association of Home Builders

^(vi) S&P/Experian First Mortgage Default Index, an index measuring default rates across first mortgages

^(vii) The Conference Board

^(viii) Statistica.com

^(ix) CBRE Group, Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Limited Duration Portfolio

• The Portfolio has allocations to riskier segments of the market, such as BB-rated high-yield corporates and non-agency mortgage securities, and these positions contributed positively to relative performance.

• We continue being overweight spread product (non-government bonds) in the Portfolio, as we believe the yield advantage could potentially provide a large part of returns over the near term.

* Minimum Investment

Performance Compared to the Barclays 1-3 Year U.S. Government/Credit Index⁽¹⁾ and the Lipper Short Investment Grade Debt Funds Index⁽²⁾

	Period Ended September 30, 2015 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁸⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		0.06	%		1.45	%		0.13	%		2.99	%
Portfolio — Class A Shares w/o sales charges⁽⁵⁾		–0.41			1.17			—			–1.10
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁵⁾		–4.67			0.28			—			–1.63
Portfolio — Class L Shares w/o sales charges⁽⁶⁾		–0.68			—			—			0.65
Portfolio — Class C Shares w/o sales charges⁽⁷⁾		—			—			—			–0.92
Portfolio — Class C Shares with maximum 1.00% deferred sales charges⁽⁷⁾		—			—			—			–1.91
Barclays 1-3 Year U.S. Government/Credit Index		1.19			1.04			2.85			4.31
Lipper Short Investment Grade Debt Funds Index		0.68			1.57			2.72			4.03

⁽¹⁾ The Barclays 1-3 Year U.S. Government/Credit Index tracks the securities in the 1-3 year maturity range of the Barclays U.S. Government/Credit Index which tracks investment-grade (BBB-/Baa3) or higher publicly traded fixedrate U.S. government, U.S. agency, and corporate issues. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Short Investment Grade Debt Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Short Investment Grade Debt Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Short Investment Grade Debt Funds classification.

⁽³⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower.

⁽⁴⁾ Commenced operations on March 31, 1992.

⁽⁵⁾ Commenced operations on September 28, 2007.

⁽⁶⁾ Commenced operations on April 27, 2012.

⁽⁷⁾ Commenced operations on April 30, 2015.

⁽⁸⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (98.2%)
Agency Adjustable Rate Mortgages (2.5%)
Federal Home Loan Mortgage Corporation,
Conventional Pools:
2.35%, 6/1/36	$	421	$	448
2.38%, 7/1/38		359		381
2.49%, 9/1/35		530		563
2.66%, 1/1/38		111		119
Federal National Mortgage Association,
Conventional Pools:
2.39%, 5/1/39		428		455
2.41%, 5/1/35		418		443
Government National Mortgage Association,
Various Pool
1.75%, 2/20/40		146		151
				2,560
Agency Fixed Rate Mortgages (0.4%)
Federal Home Loan Mortgage Corporation,
Gold Pools:
6.50%, 9/1/19 - 4/1/24		4		4
7.50%, 11/1/19		1		1
Federal National Mortgage Association,
Conventional Pools:
6.50%, 2/1/28 - 10/1/32		331		380
7.00%, 7/1/29 - 12/1/33		58		60
Government National Mortgage Association,
Various Pools:
9.00%, 11/15/16 - 12/15/16		10		10
				455
Asset-Backed Securities (9.8%)
Ally Auto Receivables Trust
0.62%, 3/15/17		47		47
American Homes 4 Rent
4.69%, 10/17/45		176		179
AWAS Aviation Capital Ltd.
7.00%, 10/17/16 (a)		249		249
CAM Mortgage LLC
3.38%, 7/15/64 (a)		381		382
Chase Issuance Trust
0.54%, 10/16/17		1,125		1,125
Citibank Credit Card Issuance Trust
2.88%, 1/23/23		450		471
Colony American Homes
1.40%, 5/17/31 (a)(b)		415		411
Discover Card Execution Note Trust
0.64%, 7/15/21 (b)		670		672
Ford Credit Auto Owner Trust
2.26%, 11/15/25 (a)		1,165		1,183
Invitation Homes Trust,
1.40%, 12/17/30 (a)(b)		598		593
1.56%, 6/17/32 (a)(b)		392		389
2.96%, 8/17/32 (a)(b)		666		660

	Face Amount (000)		Value (000)
Nationstar HECM Loan Trust
3.84%, 5/25/18 (a)	$	298	$	300
North Carolina State Education Assistance Authority
1.08%, 7/25/25 (b)		612		608
Panhandle-Plains Higher Education Authority, Inc.
1.28%, 7/1/24 (b)		190		190
RMAT LLC
4.83%, 6/25/35 (a)		544		546
Sunset Mortgage Loan Co., LLC
3.72%, 11/16/44 (a)		224		223
Volkswagen Credit Auto Master Trust
1.40%, 7/22/19 (a)		398		397
VOLT NPL X LLC
4.75%, 10/26/54 (a)		282		279
VOLT XIX LLC
5.00%, 4/25/55 (a)		200		201
VOLT XXII LLC
4.25%, 2/25/55 (a)		200		198
VOLT XXX LLC
4.75%, 10/25/57 (a)		200		200
VOLT XXXI LLC
4.50%, 2/25/55 (a)		200		198
VOLT XXXIII LLC
4.25%, 3/25/55 (a)		350		346
World Omni Automobile Lease Securitization Trust
1.10%, 12/15/16		243		244
				10,291
Collateralized Mortgage Obligations — Agency Collateral Series (1.2%)
Federal Home Loan Mortgage Corporation,
REMIC
7.50%, 9/15/29		890		1,037
Government National Mortgage Association,
IO
6.01%, 3/20/43 (b)		621		109
6.28%, 5/20/40 (b)		746		140
				1,286
Commercial Mortgage-Backed Securities (2.1%)
BLCP Hotel Trust
1.16%, 8/15/29 (a)(b)		581		577
CDGJ Commercial Mortgage Trust
1.61%, 12/15/27 (a)(b)		575		573
Citigroup Commercial Mortgage Trust
2.11%, 1/12/30 (a)		168		170
Hilton USA Trust
1.20%, 11/5/30 (a)(b)		168		167
JP Morgan Chase Commercial Mortgage Securities Trust,
1.19%, 7/15/31 (a)(b)		285		283
5.46%, 12/12/43		400		407
				2,177

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Corporate Bonds (76.1%)
Finance (29.3%)
Abbey National Treasury Services PLC
3.05%, 8/23/18	$	370	$	382
ABN Amro Bank N.V.
2.50%, 10/30/18 (a)		630		640
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust
3.75%, 5/15/19		345		340
Ally Financial, Inc.
3.25%, 2/13/18		265		261
American Express Credit Corp.,
1.80%, 7/31/18		425		425
Series G
2.25%, 8/15/19		675		678
Bank of America Corp.
2.60%, 1/15/19		900		910
Bank of Montreal
1.80%, 7/31/18		475		477
Bank of Nova Scotia (The)
1.70%, 6/11/18		550		549
BB&T Corp.,
MTN
2.25%, 2/1/19		580		586
BioMed Realty LP
2.63%, 5/1/19		310		300
BNP Paribas SA,
MTN
2.70%, 8/20/18		610		624
BNZ International Funding Ltd.
2.35%, 3/4/19 (a)		650		653
BPCE SA,
MTN
2.25%, 1/27/20		600		602
Canadian Imperial Bank of Commerce
1.55%, 1/23/18		310		311
Capital One Financial Corp.
2.45%, 4/24/19		1,005		1,003
CIT Group, Inc.
3.88%, 2/19/19		550		548
Citigroup, Inc.
8.50%, 5/22/19		950		1,148
Commonwealth Bank of Australia
2.50%, 9/20/18		600		613
Compass Bank
1.85%, 9/29/17		600		600
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
3.38%, 1/19/17		330		339
Credit Agricole SA
2.13%, 4/17/18 (a)		775		782
Credit Suisse,
Series G
2.30%, 5/28/19		650		653

	Face Amount (000)		Value (000)
DBS Group Holdings Ltd.
2.25%, 7/16/19 (a)	$	650	$	655
Discover Bank
2.00%, 2/21/18		665		661
DNB Bank ASA
3.20%, 4/3/17 (a)		610		626
ERP Operating LP
2.38%, 7/1/19		550		555
Goldman Sachs Group, Inc. (The)
2.38%, 1/22/18		880		892
HSBC USA, Inc.
2.25%, 6/23/19		659		661
Icahn Enterprises LP/Icahn Enterprises Finance Corp.,
Series WI
4.88%, 3/15/19		375		376
ING Bank N.V.
2.05%, 8/17/18 (a)		1,075		1,080
Intesa Sanpaolo SpA
3.88%, 1/16/18		355		366
JPMorgan Chase & Co.
2.20%, 10/22/19		325		324
Lloyds Bank PLC
6.50%, 9/14/20 (a)		325		375
Macquarie Bank Ltd.
2.60%, 6/24/19 (a)		605		609
Manufacturers & Traders Trust Co.
2.10%, 2/6/20		560		557
Metropolitan Life Global Funding I
2.00%, 4/14/20 (a)		550		547
Mizuho Bank Ltd.
1.85%, 3/21/18 (a)		645		646
National Australia Bank Ltd.
1.25%, 3/17/17 (a)		400		401
New York Life Global Funding
1.30%, 10/30/17 (a)		475		475
Principal Financial Group, Inc.
1.85%, 11/15/17		725		730
QBE Insurance Group Ltd.
2.40%, 5/1/18 (a)		200		202
Santander Bank NA
2.00%, 1/12/18		525		523
Skandinaviska Enskilda Banken AB
1.75%, 3/19/18 (a)		380		380
Standard Chartered PLC
1.50%, 9/8/17 (a)		900		903
Sumitomo Mitsui Banking Corp.
2.45%, 1/10/19		630		635
Swedbank AB
1.75%, 3/12/18 (a)		305		307
Synchrony Financial
3.00%, 8/15/19		800		807

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Finance (cont'd)
Toronto-Dominion Bank (The),
MTN
2.63%, 9/10/18	$	650	$	668
UBS AG,
MTN
2.38%, 8/14/19		925		929
UnitedHealth Group, Inc.
2.70%, 7/15/20		500		512
WEA Finance LLC/Westfield UK & Europe Finance PLC
2.70%, 9/17/19 (a)		600		598
Wells Fargo & Co.
2.15%, 1/15/19		360		363
				30,787
Industrials (43.2%)
ABB Treasury Center USA, Inc.
2.50%, 6/15/16 (a)		745		752
AbbVie, Inc.
2.50%, 5/14/20		575		572
Actavis Funding SCS
3.00%, 3/12/20		835		838
Air Canada
6.75%, 10/1/19 (a)		250		263
Altera Corp.
2.50%, 11/15/18		300		305
Altice Financing SA
7.88%, 12/15/19 (a)		250		259
Amazon.com, Inc.
2.60%, 12/5/19		525		539
American Honda Finance Corp.
2.45%, 9/24/20		550		550
Anadarko Petroleum Corp.
5.95%, 9/15/16		575		598
Anglo American Capital PLC
3.63%, 5/14/20 (a)		400		349
Applied Materials, Inc.
2.65%, 6/15/16		455		461
ArcelorMittal
5.25%, 2/25/17		375		372
AT&T, Inc.
2.45%, 6/30/20		1,225		1,207
Automatic Data Processing, Inc.
2.25%, 9/15/20		350		352
Baidu, Inc.
3.25%, 8/6/18		225		230
BAT International Finance PLC
2.75%, 6/15/20 (a)		450		459
Baxalta, Inc.
2.88%, 6/23/20 (a)		550		550
Bayer US Finance LLC
2.38%, 10/8/19 (a)		600		608

	Face Amount (000)		Value (000)
Becton Dickinson and Co.
2.68%, 12/15/19	$	300	$	304
Biogen, Inc.
2.90%, 9/15/20		525		531
Bombardier, Inc.
4.75%, 4/15/19 (a)		300		243
BW Group Ltd.
6.63%, 6/28/17 (a)		325		331
CBS Corp.
2.30%, 8/15/19		625		621
Celgene Corp.
2.88%, 8/15/20		525		530
Chesapeake Energy Corp.
6.50%, 8/15/17		350		318
CNH Industrial Capital LLC
6.25%, 11/1/16		355		363
Comcast Corp.
5.70%, 5/15/18		520		576
CVS Health Corp.
1.90%, 7/20/18		550		554
Daimler Finance North America LLC
2.38%, 8/1/18 (a)		750		751
DCP Midstream Operating LP
2.70%, 4/1/19		650		583
DISH DBS Corp.
4.63%, 7/15/17		375		375
Dominion Gas Holdings LLC
2.50%, 12/15/19		825		834
Eaton Corp.
1.50%, 11/2/17		630		630
Ecolab, Inc.
3.00%, 12/8/16		320		326
EMD Finance LLC
2.40%, 3/19/20 (a)		575		576
Enbridge, Inc.
0.78%, 6/2/17 (b)		175		172
Energy Transfer Partners LP
2.50%, 6/15/18		575		573
EnLink Midstream Partners LP
2.70%, 4/1/19		525		519
Enterprise Products Operating LLC
2.55%, 10/15/19		325		324
Experian Finance PLC
2.38%, 6/15/17 (a)		600		604
Ford Motor Credit Co., LLC
5.00%, 5/15/18		825		878
General Motors Financial Co., Inc.
3.15%, 1/15/20		600		595
Gilead Sciences, Inc.
2.55%, 9/1/20		500		504
GlaxoSmithKline Capital PLC
1.50%, 5/8/17		1,100		1,109
Glencore Funding LLC
2.88%, 4/16/20 (a)		575		461

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
Goldcorp, Inc.
2.13%, 3/15/18	$	520	$	514
Harley-Davidson Financial Services, Inc.,
1.55%, 11/17/17 (a)		258		257
2.15%, 2/26/20 (a)		350		349
HP Enterprise Co.
3.60%, 10/15/20		400		400
Hutchison Whampoa International 14 Ltd.
1.63%, 10/31/17 (a)		240		239
Hyundai Capital America,
2.00%, 3/19/18 (a)		525		523
2.60%, 3/19/20 (a)		325		324
Ingersoll-Rand Global Holding Co., Ltd.
2.88%, 1/15/19		335		341
Intel Corp.
2.45%, 7/29/20		550		558
JM Smucker Co. (The)
2.50%, 3/15/20 (a)		225		226
Kinder Morgan, Inc.
3.05%, 12/1/19		650		639
L-3 Communications Corp.
1.50%, 5/28/17		275		273
LVMH Moet Hennessy Louis Vuitton SE
1.63%, 6/29/17 (a)		525		529
Marathon Oil Corp.
2.70%, 6/1/20		550		534
Marathon Petroleum Corp.
3.50%, 3/1/16		595		601
McDonald's Corp.,
MTN
2.20%, 5/26/20		550		551
McKesson Corp.
3.25%, 3/1/16		1,070		1,080
Medtronic, Inc.
2.50%, 3/15/20		550		558
Nissan Motor Acceptance Corp.
2.65%, 9/26/18 (a)		720		736
Orange SA
2.75%, 2/6/19		625		643
Quest Diagnostics, Inc.
2.70%, 4/1/19		675		681
Reynolds American, Inc.
2.30%, 6/12/18		525		531
Rio Tinto Finance USA PLC
1.38%, 6/17/16		325		325
RR Donnelley & Sons Co.
6.13%, 1/15/17		300		308
Ryder System, Inc.,
MTN
2.65%, 3/2/20		125		125

	Face Amount (000)		Value (000)
Scripps Networks Interactive, Inc.
2.75%, 11/15/19	$	575	$	576
Siemens Financieringsmaatschappij N.V.
2.15%, 5/27/20 (a)		550		551
Southwest Airlines Co.
2.75%, 11/6/19		600		612
T-Mobile USA, Inc.
5.25%, 9/1/18		500		510
Thomson Reuters Corp.,
1.30%, 2/23/17		325		324
1.65%, 9/29/17		150		150
Time Warner Cable, Inc.
6.75%, 7/1/18		400		445
Transocean, Inc.
3.00%, 10/15/17		350		318
TSMC Global Ltd.
1.63%, 4/3/18 (a)		800		793
Tyson Foods, Inc.
2.65%, 8/15/19		600		605
Union Pacific Corp.
2.25%, 6/19/20		550		558
Verizon Communications, Inc.
2.55%, 6/17/19		1,250		1,267
Viacom, Inc.
2.50%, 9/1/18		625		629
Volkswagen Group of America Finance LLC
2.40%, 5/22/20 (a)		550		511
Waste Management, Inc.
2.60%, 9/1/16		725		735
Wesfarmers Ltd.
2.98%, 5/18/16 (a)		395		400
Wm. Wrigley Jr. Co.
1.40%, 10/21/16 (a)		600		602
Yum! Brands, Inc.
3.88%, 11/1/20		450		472
				45,352
Utilities (3.6%)
Engie
1.63%, 10/10/17 (a)		650		653
Eversource Energy
1.45%, 5/1/18		525		521
NRG Energy, Inc.
7.63%, 1/15/18		275		290
Origin Energy Finance Ltd.
3.50%, 10/9/18 (a)		200		194
PSEG Power LLC
5.50%, 12/1/15		570		574
Sempra Energy
2.40%, 3/15/20		600		600
Southern Co. (The)
2.15%, 9/1/19		725		718

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Limited Duration Portfolio

	Face Amount (000)		Value (000)
Utilities (cont'd)
Xcel Energy, Inc.
1.20%, 6/1/17	$	275	$	274
				3,824
				79,963
Mortgages — Other (4.5%)
Alternative Loan Trust,
5.50%, 10/25/35 - 11/25/35		890		843
CHL Mortgage Pass-Through Trust
5.50%, 5/25/34		312		321
Fannie Mae Connecticut Avenue Securities
1.34%, 5/25/25 (b)		323		322
FDIC Guaranteed Notes Trust
0.75%, 2/25/48 (a)(b)		111		111
Freddie Mac Structured Agency Credit Risk Debt Notes,
1.09%, 10/25/27 (b)		241		239
1.19%, 2/25/24 (b)		216		216
HarborView Mortgage Loan Trust
0.41%, 1/19/38 (b)		393		335
JP Morgan Alternative Loan Trust
6.00%, 12/25/35		119		115
Lehman Mortgage Trust
6.50%, 9/25/37		49		40
New Residential Mortgage Loan Trust
3.75%, 4/25/52 (a)(b)		304		312
Opteum Mortgage Acceptance Corp. Trust
0.49%, 4/25/36 (b)		470		416
RALI Trust,
0.38%, 12/25/36 (b)		548		428
6.00%, 11/25/36		205		170
Sequoia Mortgage Trust
0.84%, 8/20/34 (b)		538		511
Washington Mutual Mortgage Pass-Through Certificates Trust,
1.16%, 8/25/46 (b)		485		334
1.19%, 6/25/46 (b)		60		43
				4,756
Sovereign (1.6%)
EUROFIMA,
MTN
6.25%, 12/28/18		630		493
Korea Development Bank (The)
1.50%, 1/22/18		690		686
Spain Government International Bond
4.00%, 3/6/18 (a)		500		530
				1,709
Total Fixed Income Securities (Cost $102,868)				103,197

	Shares		Value (000)
Short-Term Investments (1.5%)
Investment Company (0.7%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $750)		749,921	$	750
	Face Amount (000)
U.S. Treasury Security (0.8%)
U.S. Treasury Bill
0.26%, 3/10/16 (c)(d) (Cost $863)	$	864		864
Total Short-Term Investments (Cost $1,613)				1,614
Total Investments (99.7%) (Cost $104,481) (e)(f)				104,811
Other Assets in Excess of Liabilities (0.3%)				268
Net Assets (100.0%)			$	105,079

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

(b) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on September 30, 2015.

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

(e) Securities are available for collateral in connection with an open foreign currency forward exchange contract, futures contracts and swap agreements.

(f) At September 30, 2015, the aggregate cost for Federal income tax purposes is approximately $104,481,000. The aggregate gross unrealized appreciation is approximately $1,088,000 and the aggregate gross unrealized depreciation is approximately $758,000 resulting in net unrealized appreciation of approximately $330,000.

FDIC Federal Deposit Insurance Corporation.

IO Interest Only.

MTN Medium Term Note.

REMIC Real Estate Mortgage Investment Conduit.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Limited Duration Portfolio

Foreign Currency Forward Exchange Contract:

The Portfolio had the following foreign currency forward exchange contract open at September 30, 2015:

Counterparty				Currency to Deliver (000)				Value (000)				Settlement Date				In Exchange For (000)				Value (000)				Unrealized Appreciation (000)
JPMorgan Chase Bank NA				AUD	700			$	491			10/6/15				USD	493			$	493			$	2

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2015:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
U.S. Treasury 2 yr. Note		174	$	38,112		Dec-15	$	40
U.S. Treasury Ultra Long Bond		1		160		Dec-15		3
Short:
U.S. Treasury 5 yr. Note		249		(30,009	)	Dec-15		(196	)
U.S. Treasury 10 yr. Note		18		(2,317	)	Dec-15		(35	)
U.S. Treasury Long Bond		1		(157	)	Dec-15		(4	)
							$	(192	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 2015:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Appreciation (Depreciation) (000)			Value (000)			Credit Rating of Reference Obligation† (unaudited)
Barclays Bank PLC Quest Diagnostics, Inc.	Buy	$	645		1.00	%	3/20/19	$	13		$	(23	)	$	(10	)	BBB+
Barclays Bank PLC Yum! Brands, Inc.	Buy		625		1.00		12/20/18		(11	)		1			(10	)	BBB
		$	1,270					$	2		$	(22	)	$	(20	)

Interest Rate Swap Agreement:

The Portfolio had the following interest rate swap agreement open at September 30, 2015:

Swap Counterparty

Floating Rate
Index

Pay/Receive
Floating Rate

Fixed Rate

Termination
Date

Notional
Amount
(000)

Unrealized
Depreciation
(000)

Morgan Stanley & Co., LLC*

3 Month LIBOR

Receive

1.58

3/24/20

4,150

(51

)

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

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

LIBOR London Interbank Offered Rate.

AUD — Australian Dollar

USD — United States Dollar

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		43.3	%
Finance		29.4
Other**		17.5
Asset-Backed Securities		9.8
Total Investments		100.0	%***

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

*** Does not include open long/short futures contracts with an underlying face amount of approximately $70,755,000 with net unrealized depreciation of approximately $192,000. Does not include an open foreign currency forward exchange contract with unrealized appreciation of approximately $2,000 and does not include open swap agreements with net unrealized depreciation of approximately $73,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Limited Duration Portfolio

Statement of Assets and Liabilities	September 30, 2015 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $103,731)	$	104,061
Investment in Security of Affiliated Issuer, at Value (Cost $750)		750
Total Investments in Securities, at Value (Cost $104,481)		104,811
Cash		8
Interest Receivable		642
Receivable for Investments Sold		304
Premium Paid on Open Swap Agreements		13
Receivable for Variation Margin on Swap Agreements		3
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		2
Unrealized Appreciation on Swap Agreements		1
Receivable from Affiliate		—	@
Other Assets		42
Total Assets		105,826
Liabilities:
Payable for Investments Purchased		400
Payable for Portfolio Shares Redeemed		174
Payable for Advisory Fees		67
Unrealized Depreciation on Swap Agreements		23
Payable for Professional Fees		16
Premium Received on Open Swap Agreements		11
Payable for Custodian Fees		7
Payable for Administration Fees		7
Payable for Trustees' Fees and Expenses		7
Payable for Sub Transfer Agency Fees — Class I		6
Payable for Sub Transfer Agency Fees — Class A		1
Payable for Sub Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		—	@
Payable for Transfer Agency Fees — Class L		—	@
Payable for Transfer Agency Fees — Class C		—	@
Payable for Variation Margin on Futures Contracts		1
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class L		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		26
Total Liabilities		747
Net Assets	$	105,079
Net Assets Consist Of:
Paid-in-Capital	$	339,848
Accumulated Undistributed Net Investment Income		506
Accumulated Net Realized Loss		(235,342	)
Unrealized Appreciation (Depreciation) on:
Investments		330
Futures Contracts		(192	)
Swap Agreements		(73	)
Foreign Currency Forward Exchange Contracts		2
Foreign Currency Translations		(—	@)
Net Assets	$	105,079

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Limited Duration Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2015 (000)
CLASS I:
Net Assets	$	102,808
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		13,332,405
Net Asset Value, Offering and Redemption Price Per Share	$	7.71
CLASS A:
Net Assets	$	1,761
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		227,994
Net Asset Value, Redemption Price Per Share	$	7.72
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.34
Maximum Offering Price Per Share	$	8.06
CLASS L:
Net Assets	$	439
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		56,977
Net Asset Value, Offering and Redemption Price Per Share	$	7.70
CLASS C:
Net Assets	$	71
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		9,209
Net Asset Value, Offering and Redemption Price Per Share	$	7.69

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Limited Duration Portfolio

Statement of Operations	Year Ended September 30, 2015 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	2,490
Dividends from Security of Affiliated Issuer (Note G)		2
Total Investment Income		2,492
Expenses:
Advisory Fees (Note B)		332
Professional Fees		100
Administration Fees (Note C)		88
Custodian Fees (Note F)		46
Registration Fees		45
Pricing Fees		30
Shareholder Reporting Fees		27
Transfer Agency Fees — Class I (Note E)		5
Transfer Agency Fees — Class A (Note E)		2
Transfer Agency Fees — Class L (Note E)		2
Transfer Agency Fees — Class C (Note E)		1
Shareholder Services Fees — Class A (Note D)		4
Distribution and Shareholder Services Fees — Class L (Note D)		1
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Sub Transfer Agency Fees — Class A		3
Sub Transfer Agency Fees — Class L		—	@
Trustees' Fees and Expenses		3
Other Expenses		10
Total Expenses		699
Waiver of Advisory Fees (Note B)		(103	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(4	)
Reimbursement of Class Specific Expenses — Class L (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Net Expenses		588
Net Investment Income		1,904
Realized Gain (Loss):
Investments Sold		272
Futures Contracts		(505	)
Swap Agreements		(615	)
Foreign Currency Forward Exchange Contracts		48
Foreign Currency Transactions		(4	)
Net Realized Loss		(804	)
Change in Unrealized Appreciation (Depreciation):
Investments		(570	)
Futures Contracts		(306	)
Swap Agreements		(156	)
Foreign Currency Forward Exchange Contracts		2
Foreign Currency Translations		(—	@)
Net Change in Unrealized Appreciation (Depreciation)		(1,030	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(1,834	)
Net Increase in Net Assets Resulting from Operations	$	70

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Limited Duration Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2015 (000)			Year Ended September 30, 2014 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	1,904		$	1,825
Net Realized Gain (Loss)		(804	)		1,041
Net Change in Unrealized Appreciation (Depreciation)		(1,030	)		(282	)
Net Increase in Net Assets Resulting from Operations		70			2,584
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(1,478	)		(1,684	)
Class A:
Net Investment Income		(14	)		(18	)
Class L:
Net Investment Income		(2	)		(1	)
Class C:
Net Investment Income		(—	@)*		—
Total Distributions		(1,494	)		(1,703	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		6,678			14,035
Distributions Reinvested		1,477			1,682
Redeemed		(23,006	)		(20,486	)
Class A:
Subscribed		2,156			2,964
Distributions Reinvested		14			18
Redeemed		(1,330	)		(2,802	)
Class L:
Subscribed		367			110
Distributions Reinvested		1			1
Redeemed		(124	)		(6	)
Class C:
Subscribed		72	*		—
Distributions Reinvested		—	@*		—
Redeemed		(1	)*		—
Net Decrease in Net Assets Resulting from Capital Share Transactions		(13,696	)		(4,484	)
Total Decrease in Net Assets		(15,120	)		(3,603	)
Net Assets:
Beginning of Period		120,199			123,802
End of Period (Including Accumulated Undistributed Net Investment Income of $506 and $268)	$	105,079		$	120,199
(1) Capital Share Transactions:
Class I:
Shares Subscribed		859			1,797
Shares Issued on Distributions Reinvested		190			216
Shares Redeemed		(2,959	)		(2,624	)
Net Decrease in Class I Shares Outstanding		(1,910	)		(611	)
Class A:
Shares Subscribed		277			379
Shares Issued on Distributions Reinvested		2			2
Shares Redeemed		(171	)		(357	)
Net Increase in Class A Shares Outstanding		108			24
Class L:
Shares Subscribed		47			14
Shares Issued on Distributions Reinvested		—	@@		—	@@
Shares Redeemed		(16	)		(1	)
Net Increase in Class L Shares Outstanding		31			13
Class C:
Shares Subscribed		9	*		—
Shares Issued on Distributions Reinvested		—	@@*		—
Shares Redeemed		(—	@@)*		—
Net Increase in Class C Shares Outstanding		9			—

* For the period April 30, 2015 through September 30, 2015.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Limited Duration Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	7.81		$	7.76		$	7.80		$	7.71		$	7.79
Income (Loss) from Investment Operations:
Net Investment Income†		0.13			0.12			0.11			0.15			0.16
Net Realized and Unrealized Gain (Loss)		(0.12	)		0.04			(0.03	)		0.11			(0.10	)
Total from Investment Operations		0.01			0.16			0.08			0.26			0.06
Distributions from and/or in Excess of:
Net Investment Income		(0.11	)		(0.11	)		(0.12	)		(0.17	)		(0.14	)
Net Asset Value, End of Period	$	7.71		$	7.81		$	7.76		$	7.80		$	7.71
Total Return++		0.06	%		2.06	%		1.09	%		3.35	%		0.71	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	102,808		$	119,059		$	122,958		$	145,387		$	167,811
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.53	%+		0.53	%+		0.71	%+^		0.63	%+		0.59	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.72	%+		1.49	%+		1.45	%+^		1.92	%+		2.12	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		41	%		60	%		66	%		51	%		35	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		0.63	%		0.78	%		0.72	%		N/A			N/A
Net Investment Income to Average Net Assets		1.62	%		1.24	%		1.44	%		N/A			N/A

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

§ Amount is less than 0.005%.

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.53% for Class I shares.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Limited Duration Portfolio

	Class A
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	7.83		$	7.77		$	7.80		$	7.71		$	7.79
Income (Loss) from Investment Operations:
Net Investment Income†		0.11			0.09			0.09			0.13			0.15
Net Realized and Unrealized Gain (Loss)		(0.14	)		0.05			(0.01	)		0.11			(0.12	)
Total from Investment Operations		(0.03	)		0.14			0.08			0.24			0.03
Distributions from and/or in Excess of:
Net Investment Income		(0.08	)		(0.08	)		(0.11	)		(0.15	)		(0.11	)
Net Asset Value, End of Period	$	7.72		$	7.83		$	7.77		$	7.80		$	7.71
Total Return++		(0.41	)%		1.78	%		0.84	%		3.22	%		0.45	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	1,761		$	940		$	749		$	145		$	194
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.88	%+		0.88	%+		0.97	%+^		0.88	%+		0.84	%+
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.40	%+		1.14	%+		1.15	%+^		1.70	%+		1.87	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.00	%§
Portfolio Turnover Rate		41	%		60	%		66	%		51	%		35	%
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.22	%		1.10	%		1.00	%		N/A			N/A
Net Investment Income to Average Net Assets		1.06	%		0.92	%		1.12	%		N/A			N/A

† Per share amount is based on average shares outstanding.

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

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.88% for Class A shares.

§ Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Limited Duration Portfolio

	Class L
	Year Ended September 30,									Period from April 27, 2012^ to
Selected Per Share Data and Ratios	2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	7.80		$	7.75		$	7.80		$	7.76
Income (Loss) from Investment Operations:
Net Investment Income†		0.08			0.06			0.07			0.04
Net Realized and Unrealized Gain (Loss)		(0.13	)		0.05			(0.03	)		0.04
Total from Investment Operations		(0.05	)		0.11			0.04			0.08
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)		(0.06	)		(0.09	)		(0.04	)
Net Asset Value, End of Period	$	7.70		$	7.80		$	7.75		$	7.80
Total Return++		(0.68	)%		1.38	%		0.48	%		1.06	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	439		$	200		$	95		$	10
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.23	%+		1.23	%+		1.24	%+^^		1.21	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.05	%+		0.79	%+		0.85	%+^^		1.14	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	§		0.00	%§		0.00	%*§
Portfolio Turnover Rate		41	%		60	%		66	%		51	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		1.80	%		3.48	%		1.34	%		N/A
Net Investment Income (Loss) to Average Net Assets		0.48	%		(1.46	)%		0.75	%		N/A

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

§ Amount is less than 0.005%.

^^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.23% for Class L shares.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Limited Duration Portfolio

	Class C
Selected Per Share Data and Ratios	Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	7.78
Income (Loss) from Investment Operations:
Net Investment Income†		0.02
Net Realized and Unrealized Loss		(0.09	)
Total from Investment Operations		(0.07	)
Distributions from and/or in Excess of:
Net Investment Income		(0.02	)
Net Asset Value, End of Period	$	7.69
Total Return++		(0.92	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	71
Ratios of Expenses to Average Net Assets ⁽¹⁾		1.63	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		0.73	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§
Portfolio Turnover Rate		41	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		6.73	%*
Net Investment Loss to Average Net Assets		(4.37	)%*

^ Commencement of Operations

† Per share amount is based on average shares outstanding.

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

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements

The accompanying financial statements relate to the Limited Duration Portfolio. The Portfolio seeks above-average total return over a market cycle of three to five years. The Portfolio offers four classes of shares — Class I, Class A, Class L and Class C.

On April 30, 2015, the Portfolio commenced offering Class C shares.

(that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (7) short-term taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

The Fund has procedures to determine the fair value of securities and other financial instruments for which

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

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

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

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 2015.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Adjustable Rate Mortgages	$	—	$	2,560	$	—	$	2,560
Agency Fixed Rate Mortgages		—		455		—		455
Asset-Backed Securities		—		10,291		—		10,291
Collateralized Mortgage Obligations — Agency Collateral Series		—		1,286		—		1,286
Commercial Mortgage- Backed Securities		—		2,177		—		2,177
Corporate Bonds		—		79,963		—		79,963
Mortgages — Other		—		4,756		—		4,756
Sovereign		—		1,709		—		1,709
Total Fixed Income Securities		—		103,197		—		103,197
Short-Term Investments
Investment Company		750		—		—		750
U.S Treasury Security		—		864		—		864
Total Short-Term Investments		750		864		—		1,614

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Foreign Currency Forward Exchange Contract	$	—		$	2		$	—	$	2
Futures Contracts		43			—			—		43
Credit Default Swap Agreement		—			1			—		1
Total Assets		793			104,064			—		104,857
Liabilities:
Futures Contracts		(235	)		—			—		(235	)
Credit Default Swap Agreement		—			(23	)		—		(23	)
Interest Rate Swap Agreement		—			(51	)		—		(51	)
Total Liabilities		(235	)		(74	)		—		(309	)
Total	$	558		$	103,990		$	—	$	104,548

– investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

– investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. Federal income tax purposes.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amount of investment income and foreign withholding taxes recorded on the Portfolio's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations on foreign currency translations for the period is reflected in the Statement of Operations.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

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

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

at a specified rate. The rate can be higher or lower than the spot rate between the currencies that are the subject of the contract. Currency contracts may be used to protect against uncertainty in the level of future foreign currency exchange rates or to gain or modify exposure to a particular currency. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it matures. Furthermore, such transactions may reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is additional risk to the extent that currency contracts create exposure to currencies in which the Portfolio's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Portfolio than if it had not entered into such contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Portfolio as unrealized gain or loss. The Portfolio records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

judgment and even a well-conceived futures transaction may be unsuccessful because of market behavior or unexpected events. In addition to the derivatives risks discussed above, the prices of futures contracts can be highly volatile, using futures contracts can lower total return, and the potential loss from futures contracts can exceed the Portfolio's initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with which the Portfolio has open positions in the futures contract.

Consumer Protection Act and related regulatory developments require the clearing and exchange-trading of certain standardized swap transactions. Mandatory exchange-trading and clearing is occurring on a phased-in basis.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are estimated by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability, respectively, in the Statement of Assets and Liabilities.

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2015.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contract

Unrealized Appreciation on
Foreign Currency
Forward Exchange Contract

Currency Risk

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(a)

Swap Agreement

Unrealized Appreciation on
Swap Agreement

Credit Risk

Total

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Futures Contract

Variation Margin on
Futures Contract

Interest Rate Risk

(235

)(a)

Swap Agreement

Unrealized Depreciation on
Swap Agreement

Credit Risk

(23

)

Swap Agreement

Variation Margin on
Swap Agreement

Interest Rate Risk

(51

)(a)

Total

(309

)

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contract	$	48
Interest Rate Risk	Futures Contracts		(505	)
Credit Risk	Swap Agreements		(11	)
Interest Rate Risk	Swap Agreements		(604	)
Total		$	(1,072	)
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Foreign Currency Forward Exchange Contract	$	2
Interest Rate Risk	Futures Contracts		(306	)
Credit Risk	Swap Agreements		(12	)
Interest Rate Risk	Swap Agreements		(144	)
Total		$	(460	)

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

At September 30, 2015, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contract	$	2	$	—
Swap Agreements		1		(23	)
Total	$	3	$	(23	)

(b) Excludes exchange traded derivatives.

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

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Received (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	1	$	(1	)	$	—	$	0
JPMorgan Chase Bank NA		2		—			—		2
Total	$	3	$	(1	)	$	—	$	2
Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Barclays Bank PLC	$	23	$	(1	)	$	—	$	22

For the year ended September 30, 2015, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	631,000
Futures Contracts:
Average monthly original value	$	115,083,000
Swap Agreements:
Average monthly notional amount	$	28,230,000

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

may be recorded as soon as the Portfolio is informed of such dividends) net of applicable withholding taxes. Interest income is recognized on the accrual basis except where collection is in doubt. Discounts are accreted and premiums are amortized over the life of the respective securities. Most expenses of the Fund can be directly attributed to a particular Portfolio. Expenses which cannot be directly attributed are apportioned among the Portfolios based upon relative net assets or other appropriate methods. Income, expenses (other than class specific expenses — distribution and shareholder services, transfer agency and sub transfer agency fees) and realized and unrealized gains or losses are allocated to each class of shares based upon their relative net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.53% for Class I shares, 0.88% for Class A shares, 1.23% for Class L shares and 1.63% for Class C shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the year ended September 30, 2015, approximately $103,000 of advisory fees were waived and approximately $6,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Portfolio.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"),

a wholly-owned subsidiary of the Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted a Shareholder Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class A shares.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2015, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $44,627,000 and $49,527,000, respectively. For the year ended September 30, 2015, there were no purchases of long-term U.S. Government securities and sales of long-term U.S. Government securities were approximately $8,957,000.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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 Portfolio due to its investment in the Liquidity Funds. For the year ended September 30, 2015, advisory fees paid were reduced by approximately $2,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the year ended September 30, 2015 is as follows:

Value September 30, 2014 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	936			$	40,446			$	40,632			$	2			$	750

The Portfolio may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued

2015 Distributions Paid From: Ordinary Income (000)				2014 Distributions Paid From: Ordinary Income (000)
$	1,494			$	1,703

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	(172	)		$	7,240			$	(7,068	)

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

At September 30, 2015, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	490			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused short term and long term capital losses of approximately $485,000 and $416,000, respectively, that do not have an expiration date.

In addition, at September 30, 2015, the Portfolio had available for Federal income tax purposes unused capital losses, which will expire on the indicated dates:

Amount (000)		Expiration
$	265	September 30, 2016
	200,864	September 30, 2017
	33,504	September 30, 2018

Capital loss carryforwards of approximately $7,068,000 expired during the year ended September 30, 2015.

J. Subsequent Event: Effective upon the consummation of a reorganization of Morgan Stanley Limited Duration U.S. Government Trust into the Portfolio or, if the reorganization is not consummated, tentatively scheduled for early to mid January 2016 (the "Effective Date"), the Board of Trustees of Morgan Stanley Institutional Fund Trust, on behalf of the Portfolio, has approved various changes with respect to the Portfolio, including (i) changing the Portfolio's name to Short Duration Income Portfolio; (ii) changing the Portfolio's principal investment policy as detailed below; (iii) changing the Portfolio's primary benchmark index to the Bank of America/Merrill Lynch 1-Year U.S. Treasury Note Index; (iv) reducing the advisory fee to 0.20% of the average daily net assets of the Portfolio; (v) removing the front-end sales load from the Portfolio's Class A shares; and (vi) decreasing the maximum expense ratios with re-

spect to Class I, Class A and Class L shares of the Portfolio to 0.30%, 0.55% and 0.80%, respectively.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Limited Duration Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Limited Duration Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Limited Duration Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 25, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2014, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was better than its peer group average for the one- and three-year periods but below its peer group average for the five-year period. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. The Board noted that while the Portfolio's management fee was lower than its peer group average, its total expense ratio was higher but close to its peer group average. After discussion, the Board concluded that the Portfolio's (i) performance was competitive with its peer group average; and (ii) management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

WE RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

• We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

• We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

4. HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

5. HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

6. HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.m. (EST)

• Writing to us at the following address:

Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

7. WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (70)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Kathleen A. Dennis (62)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various nonprofit organizations.

Nancy C. Everett (60)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Jakki L. Haussler (58)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Dr. Manuel H. Johnson (66)
c/o Johnson Smick International, Inc.
220 I Street, N.E. — Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

Director of NVR, Inc. (home construction).

Joseph J. Kearns (73)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Michael F. Klein (56)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (79)
522 Fifth Avenue
New York, NY 10036

Chair of the
Board and
Trustee

Chair of the
Boards since
July 2006 and
Trustee since
July 1991

None.

W. Allen Reed (68)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (83)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

Formerly, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc. (1987-December 2012).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Positions(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (67)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (52)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (48)
522 Fifth Avenue
New York, NY 10036

Chief
Compliance
Officer

Since
December
1997

Joseph C. Benedetti (50)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (50)
522 Fifth Avenue
New York, NY 10036

Treasurer and
Principal
Financial
Officer

Treasurer
since July
2003 and
Principal
Financial
Officer since
September
2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (48)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves a one-year term, until his or her successor is elected and has qualified.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

(This Page has been left blank intentionally.)

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

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

IFTLDANN
1333170 EXP 11.30.16

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Mid Cap Growth Portfolio

Annual Report

September 30, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Overview					4
Portfolio of Investments					6
Statement of Assets and Liabilities					9
Statement of Operations					11
Statements of Changes in Net Assets					12
Financial Highlights					13
Notes to Financial Statements					17
Report of Independent Registered Public Accounting Firm					28
Investment Advisory Agreement Approval					29
Federal Tax Notice					31
U.S. Privacy Policy					32
Trustee and Officer Information					35

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Mid Cap Growth Portfolio (the "Portfolio") performed during the latest twelve-month period.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

October 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Expense Example (unaudited)

Mid Cap Growth Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2015 and held for the entire six-month period.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/15		Actual Ending Account Value 9/30/15		Hypothetical Ending Account Value		Actual Expenses Paid During Period*		Hypothetical Expenses Paid During Period*		Net Expense Ratio During Period**
Mid Cap Growth Portfolio Class I	$	1,000.00	$	887.70	$	1,021.31	$	3.55	$	3.80		0.75	%
Mid Cap Growth Portfolio Class A		1,000.00		886.50		1,020.05		4.73		5.06		1.00
Mid Cap Growth Portfolio Class L		1,000.00		884.00		1,017.25		7.37		7.89		1.56
Mid Cap Growth Portfolio Class IS		1,000.00		888.50		1,022.01		2.89		3.09		0.61

** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited)

Mid Cap Growth Portfolio

The Mid Cap Growth Portfolio seeks long-term capital growth.

Performance

For the fiscal year ended September 30, 2015, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –6.18%, net of fees. The Portfolio's Class I shares underperformed against the Portfolio's benchmark the Russell Midcap® Growth Index (the "Index"), which returned 1.45%.

Factors Affecting Performance

• Although the U.S. economy continued to grow at a modest rate, concerns about the timing of the Federal Reserve's (Fed) interest rate hike and global economic weakness put downward pressure on U.S. stocks during the reporting period. With the Fed concluding its bond-buying stimulus program in October 2014, expectations were that the central bank would begin to normalize its main policy interest rate sometime in 2015. However, U.S. gross domestic product (GDP) growth was weaker than expected for the first quarter of 2015, leading the Fed and the markets to reassess the timing of a rate hike. The slowdown proved temporary, however, and the economy resumed a more moderate pace in the second quarter. While the overall GDP growth trend coupled with sustained improvements in the labor market argued for the Fed raising rates, other factors clouded the outlook, causing uncertainty for the market. The Fed left rates unchanged at its September 2015 meeting, citing low inflation levels and concerns that economic weakness abroad could put further downward pressure on inflation and restrain economic activity in the U.S. Headwinds outside the U.S. included Europe's fragile recovery, which looked particularly vulnerable when tense negotiations earlier in the summer between Greece's newly elected prime minster and its eurozone creditors reignited fears that the country could exit the euro. China also began dominating headlines, with its stock market crashing in July and August, and its economy continuing to slow despite a barrage of stimulus measures. In response, U.S. stock price volatility spiked in the final months of the period, reversing most of the gains made earlier in the reporting period.

• The Portfolio's relative underperformance was driven mainly by stock selection in the information technology (IT) and consumer staples sectors. Stock selection in the health care sector was also unfavorable during the period.

• Within the IT sector, a holding in a global communications platform was the largest detractor both in the sector and the overall Portfolio. Although the company reported results in July that met analysts' expectations, its comments regarding the expected pace of user growth weighed on investor sentiment. The timeline to appoint a new CEO for the company also remained an overhang on the stock. Nevertheless, we continue to believe the company is a valuable broadcasting platform with a substantial monetization opportunity.

• In the consumer staples sector, a position in a leading single-serve coffee provider was the main drag on performance. The company reported poor results and also lowered its outlook, which led the shares to decline sharply. The sales miss was in part due to price competition in the category, as well as the company's poor execution around the release of its new brewer systems earlier in 2015. We are monitoring the situation closely. We are attracted to the company because of its dominant share in the high-growth, single-serve segment within the coffee category — which is an attractive category overall given its habitual consumption trends and high brand loyalty. We also believe the company has a large opportunity to translate this expertise to the cold drink channel via its partnership with another dominant global beverage company.

• The Portfolio benefited from its significant underweight in the energy sector. Within the Index, the energy sector declined 42% over the 12-month period.⁽ⁱ⁾ The Portfolio's energy weighting averaged less than 1% and comprised only one stock, which generated a positive return for the Portfolio and was sold before the end of the period. Similarly, the Portfolio had no exposure to the materials sector, another underperforming sector in the Index during this reporting period, which was advantageous to relative performance.

• Stock selection in the financials sector was another positive contributor to performance. The Portfolio's position in a global provider of performance, risk

⁽ⁱ⁾ Data from FactSet and MSCI

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Mid Cap Growth Portfolio

management, and corporate governance products added meaningfully to returns during the period. The company's shares advanced on news that a large activist shareholder is pushing for changes at the company to create value. We are attracted to the company as its indices and products have become the de facto standard in several areas of the financial services industry.

Management Strategies

• We look for high-quality growth companies that we believe have these attributes: sustainable competitive advantages, above-average business visibility, rising return on invested capital, strong free cash flow generation and a favorable risk/reward profile. We find these companies through intense fundamental research. Our emphasis is on secular growth, and as a result, short-term market events are not as meaningful in the stock selection process.

* Minimum Investment

In accordance with SEC regulations, the Portfolio's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, Class L and Class IS shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (where applicable).

Performance Compared to the Russell Midcap^® Growth Index⁽¹⁾ and the Lipper Multi-Cap Growth Funds Index⁽²⁾

	Period Ended September 30, 2015 Total Returns⁽³⁾
				Average Annual
	One Year			Five Years			Ten Years			Since Inception⁽⁸⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		–6.18	%		7.82	%		7.69	%		12.12	%
Portfolio — Class A Shares w/o sales charges⁽⁵⁾		–6.40			7.54			7.42			9.32
Portfolio — Class A Shares with maximum 5.25% sales charges⁽⁵⁾		–11.33			6.39			6.84			9.00
Portfolio — Class L Shares w/o sales charges⁽⁶⁾		–6.94			—			—			8.77
Portfolio — Class IS Shares w/o sales charges⁽⁷⁾		–6.02			—			—			1.02
Russell Midcap^® Growth Index		1.45			13.58			8.09			10.12
Lipper Multi-Cap Growth Funds Index		2.21			13.11			7.30			8.91

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. For the most recent month-end performance figures, please visit www.morganstanley.com/im. Investment returns and principal value will fluctuate so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Performance of share classes will vary due to differences in sales charges and expenses.

⁽¹⁾ The Russell Midcap^® Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap^®Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell Midcap^® Index is a subset of the Russell 1000^® Index and includes approximately 800 of the smallest securities in the Russell 1000^® Index, which in turn consists of approximately 1,000 of the largest U.S. securities based on a combination of market capitalization and current index membership. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Multi-Cap Growth Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Multi-Cap Growth Funds classification. The index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Multi-Cap Growth Funds classification.

⁽³⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower.

⁽⁴⁾ Commenced operations on March 30, 1990.

⁽⁵⁾ Commenced operations on January 31, 1997.

⁽⁶⁾ Commenced operations on June 14, 2012.

⁽⁷⁾ Commenced operations on September 13, 2013.

⁽⁸⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments

Mid Cap Growth Portfolio

	Shares		Value (000)
Common Stocks (94.1%)
Aerospace & Defense (1.1%)
TransDigm Group, Inc. (a)		219,000	$	46,518
Air Freight & Logistics (0.5%)
XPO Logistics, Inc. (a)(b)		809,437		19,289
Automobiles (5.0%)
Tesla Motors, Inc. (a)		847,759		210,583
Beverages (3.1%)
Monster Beverage Corp. (a)		965,728		130,509
Biotechnology (1.1%)
Alnylam Pharmaceuticals, Inc. (a)		251,604		20,219
Intrexon Corp. (a)(b)		481,342		15,306
Seattle Genetics, Inc. (a)		317,266		12,234
				47,759
Communications Equipment (1.1%)
Palo Alto Networks, Inc. (a)		260,412		44,791
Consumer Finance (2.4%)
LendingClub Corp. (a)		7,685,013		101,673
Diversified Financial Services (6.0%)
McGraw Hill Financial, Inc.		1,360,337		117,669
MSCI, Inc.		2,297,264		136,595
				254,264
Electrical Equipment (0.4%)
SolarCity Corp. (a)(b)		428,625		18,307
Food Products (3.8%)
Keurig Green Mountain, Inc.		1,049,143		54,703
Mead Johnson Nutrition Co.		1,547,105		108,916
				163,619
Health Care Equipment & Supplies (4.9%)
DexCom, Inc. (a)		498,085		42,765
Intuitive Surgical, Inc. (a)		364,935		167,717
				210,482
Health Care Technology (3.4%)
athenahealth, Inc. (a)		1,083,670		144,507
Hotels, Restaurants & Leisure (3.2%)
Chipotle Mexican Grill, Inc. (a)		32,664		23,526
Dunkin' Brands Group, Inc.		2,300,333		112,717
				136,243
Information Technology Services (4.5%)
FleetCor Technologies, Inc. (a)		727,204		100,078
Gartner, Inc. (a)		1,112,253		93,351
				193,429
Internet & Catalog Retail (2.6%)
TripAdvisor, Inc. (a)		305,329		19,242
Vipshop Holdings Ltd. ADR (China) (a)		1,891,405		31,775
Zalando SE (Germany) (a)(c)		975,341		32,305
zulily, Inc., Class A (a)		1,652,817		28,759
				112,081

	Shares		Value (000)
Internet Software & Services (18.0%)
Autohome, Inc. ADR (China) (a)		1,451,858	$	47,229
Dropbox, Inc. (a)(d)(e)(f) (acquisition cost — $33,909; acquired 5/1/12)		3,747,173		69,398
LinkedIn Corp., Class A (a)		1,000,588		190,242
MercadoLibre, Inc. (Brazil)		361,120		32,884
Pandora Media, Inc. (a)		2,211,778		47,199
Survey Monkey, Inc. (a)(d)(e)(f) (acquisition cost — $28,952; acquired 11/25/14)		1,760,030		28,864
Twitter, Inc. (a)		6,357,773		171,278
Yelp, Inc. (a)		545,937		11,825
Youku Tudou, Inc. ADR (China) (a)		2,156,091		38,012
Zillow Group, Inc., Class A (a)(b)		1,572,682		45,183
Zillow Group, Inc., Class C (a)(b)		3,145,363		84,925
				767,039
Life Sciences Tools & Services (4.7%)
Illumina, Inc. (a)		1,135,019		199,559
Media (1.6%)
Legend Pictures LLC Ltd. (a)(d)(e)(f) (acquisition cost — $38,812; acquired 3/8/12)		36,302		66,960
Pharmaceuticals (5.7%)
Endo International PLC (a)		1,706,329		118,214
Zoetis, Inc.		3,057,940		125,926
				244,140
Professional Services (5.0%)
IHS, Inc., Class A (a)		831,372		96,439
Verisk Analytics, Inc., Class A (a)		1,563,390		115,550
				211,989
Software (11.3%)
FireEye, Inc. (a)		1,234,156		39,271
Mobileye N.V. (a)		488,197		22,203
NetSuite, Inc. (a)		415,007		34,819
ServiceNow, Inc. (a)		1,575,249		109,401
Splunk, Inc. (a)		2,293,927		126,969
Tableau Software, Inc., Class A (a)		483,809		38,598
Workday, Inc., Class A (a)		1,621,254		111,640
				482,901
Specialty Retail (1.0%)
Ulta Salon Cosmetics & Fragrance, Inc. (a)		268,196		43,810
Tech Hardware, Storage & Peripherals (0.3%)
3D Systems Corp. (a)(b)		635,142		7,336
Stratasys Ltd. (a)(b)		220,802		5,849
				13,185
Textiles, Apparel & Luxury Goods (3.4%)
Lululemon Athletica, Inc. (Canada) (a)		973,316		49,298
Michael Kors Holdings Ltd. (a)		1,506,173		63,621
Under Armour, Inc., Class A (a)		338,890		32,798
				145,717
Total Common Stocks (Cost $3,417,822)				4,009,354

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

	Shares		Value (000)
Convertible Preferred Stocks (0.2%)
Internet & Catalog Retail (0.0%)
Peixe Urbano, Inc. (Brazil) (a)(d)(e)(f) (acquisition cost — $18,817; acquired 12/2/11)		571,575	$	246
Internet Software & Services (0.2%)
Dropbox, Inc. Series A (a)(d)(e)(f) (acquisition cost — $3,365; acquired 5/25/12)		371,814		6,886
Total Convertible Preferred Stocks (Cost $22,182)				7,132
Preferred Stocks (5.9%)
Internet & Catalog Retail (4.4%)
Airbnb, Inc. Series D (a)(d)(e)(f) (acquisition cost — $47,799; acquired 4/16/14)		1,174,038		109,296
Flipkart Online Services Pvt Ltd. Series D (a)(d)(e)(f) (acquisition cost — $13,007; acquired 10/4/13)		566,827		76,987
				186,283
Software (1.5%)
Palantir Technologies, Inc. Series G (a)(d)(e)(f) (acquisition cost — $11,738; acquired 7/19/12)		3,835,908		43,653
Palantir Technologies, Inc. Series H (a)(d)(e)(f) (acquisition cost — $3,519; acquired 10/25/13)		1,002,564		11,409
Palantir Technologies, Inc. Series H1 (a)(d)(e)(f) (acquisition cost — $3,519; acquired 10/25/13)		1,002,564		11,409
				66,471
Total Preferred Stocks (Cost $79,582)				252,754
	Notional Amount
Call Options Purchased (0.3%)
Foreign Currency Options (0.3%)
USD/CNY June 2016 @ CNY 6.70		802,258,685		10,442
USD/CNY November 2015 @ CNY 6.65		1,137,270,245		2,622
Total Call Options Purchased (Cost $6,849)				13,064
	Shares
Short-Term Investments (5.6%)
Securities held as Collateral on Loaned Securities (4.1%)
Investment Company (3.4%)
Morgan Stanley Institutional Liquidity Funds — Treasury Securities Portfolio — Institutional Class (See Note G)		148,010,673		148,011

	Face Amount (000)		Value (000)
Repurchase Agreements (0.7%)
Barclays Capital, Inc., (0.10%, dated 9/30/15, due 10/1/15; proceeds $20,645; fully collateralized by various U.S. Government obligations; 1.50% — 2.75% due 5/31/19 — 2/15/24; valued at $21,058)	$	20,645	$	20,645
BNP Paribas Securities Corp., (0.10%, dated 9/30/15, due 10/1/15; proceeds $8,602; fully collateralized by various U.S. Government agency securities; 1.63% — 6.00% due 7/1/18 — 9/1/45; valued at $8,774)		8,602		8,602
				29,247
Total Securities held as Collateral on Loaned Securities (Cost $177,258)				177,258
	Shares
Investment Company (1.5%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $62,131)		62,130,917		62,131
Total Short-Term Investments (Cost $239,389)				239,389
Total Investments (106.1%) (Cost $3,765,824) Including $173,144 of Securities Loaned (g)(h)				4,521,693
Liabilities in Excess of Other Assets (-6.1%)				(260,363	)
Net Assets (100.0%)			$	4,261,330

(a) Non-income producing security.

(b) All or a portion of this security was on loan at September 30, 2015.

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

(d) At September 30, 2015, the Portfolio held fair valued securities valued at approximately $425,108,000, representing 10.0% 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 Fund's Trustees.

(e) Security cannot be offered for public resale without first being registered under the Securities Act of 1933 and related rules ("restricted security"). Acquisition date represents the day on which an enforceable right to acquire such security is obtained and is presented along with related cost in the security description. The Portfolio has registration rights for certain restricted securities. Any costs related to such registration are borne by the issuer. The aggregate value of restricted securities (excluding 144A holdings) at September 30, 2015 amounts to approximately $425,108,000 and represents 10.0% of net assets.

(f) Security has been deemed illiquid at September 30, 2015.

(g) The approximate fair value and percentage of net assets, $32,305,000 and 0.8%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(h) At September 30, 2015, the aggregate cost for Federal income tax purposes is approximately $3,797,254,000. The aggregate gross unrealized appreciation is approximately $1,173,607,000 and the aggregate gross unrealized depreciation is approximately $449,168,000 resulting in net unrealized appreciation of approximately $724,439,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Mid Cap Growth Portfolio

ADR American Depositary Receipt.

CNY — Chinese Yuan Renminbi

USD — United States Dollar

Portfolio Composition*

Classification	Percentage of Total Investments
Other**		51.2	%
Internet Software & Services		17.8
Software		12.6
Internet & Catalog Retail		6.9
Diversified Financial Services		5.9
Pharmaceuticals		5.6
Total Investments		100.0	%

* Percentages indicated are based upon total investments (excluding Securities held as Collateral on Loaned Securities) as of September 30, 2015.

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Mid Cap Growth Portfolio

Statement of Assets and Liabilities	September 30, 2015 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value⁽¹⁾ (Cost $3,555,682)	$	4,311,551
Investment in Security of Affiliated Issuer, at Value (Cost $210,142)		210,142
Total Investments in Securities, at Value (Cost $3,765,824)		4,521,693
Cash		—	@
Receivable for Investments Sold		12,704
Receivable for Portfolio Shares Sold		1,756
Dividends Receivable		977
Receivable from Affiliate		11
Other Assets		311
Total Assets		4,537,452
Liabilities:
Collateral on Securities Loaned, at Value		177,258
Payable for Portfolio Shares Redeemed		47,862
Payable for Investments Purchased		25,311
Due to Broker		16,640
Payable for Advisory Fees		6,455
Payable for Sub Transfer Agency Fees — Class I		941
Payable for Sub Transfer Agency Fees — Class A		494
Payable for Sub Transfer Agency Fees — Class L		11
Payable for Administration Fees		301
Payable for Shareholder Services Fees — Class A		223
Payable for Distribution and Shareholder Services Fees — Class L		8
Payable for Trustees' Fees and Expenses		50
Payable for Transfer Agency Fees — Class I		12
Payable for Transfer Agency Fees — Class A		19
Payable for Transfer Agency Fees — Class L		1
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Professional Fees		23
Payable for Custodian Fees		17
Other Liabilities		496
Total Liabilities		276,122
Net Assets	$	4,261,330
Net Assets Consist Of:
Paid-in-Capital	$	3,153,279
Distributions in Excess of Net Investment Income		(32,212	)
Accumulated Undistributed Net Realized Gain		384,394
Unrealized Appreciation (Depreciation) on:
Investments		755,869
Foreign Currency Translations		(—	@)
Net Assets	$	4,261,330

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Mid Cap Growth Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2015 (000)
CLASS I:
Net Assets	$	2,164,565
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		60,193,686
Net Asset Value, Offering and Redemption Price Per Share	$	35.96
CLASS A:
Net Assets	$	996,553
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		29,258,762
Net Asset Value, Redemption Price Per Share	$	34.06
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	1.89
Maximum Offering Price Per Share	$	35.95
CLASS L:
Net Assets	$	12,600
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		377,297
Net Asset Value, Offering and Redemption Price Per Share	$	33.39
CLASS IS:
Net Assets	$	1,087,612
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		30,189,434
Net Asset Value, Offering and Redemption Price Per Share	$	36.03
⁽¹⁾ Including: Securities on Loan, at Value:	$	173,144

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Mid Cap Growth Portfolio

Statement of Operations	Year Ended September 30, 2015 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers	$	15,324
Income from Securities Loaned — Net		6,632
Dividends from Security of Affiliated Issuer (Note G)		206
Total Investment Income		22,162
Expenses:
Advisory Fees (Note B)		31,710
Sub Transfer Agency Fees — Class I		5,352
Sub Transfer Agency Fees — Class A		2,175
Sub Transfer Agency Fees — Class L		24
Administration Fees (Note C)		5,074
Shareholder Services Fees — Class A (Note D)		3,815
Distribution and Shareholder Services Fees — Class L (Note D)		117
Shareholder Reporting Fees		852
Custodian Fees (Note F)		361
Registration Fees		255
Trustees' Fees and Expenses		172
Professional Fees		125
Transfer Agency Fees — Class I (Note E)		49
Transfer Agency Fees — Class A (Note E)		76
Transfer Agency Fees — Class L (Note E)		6
Transfer Agency Fees — Class IS (Note E)		2
Pricing Fees		5
Other Expenses		134
Total Expenses		50,304
Rebate from Morgan Stanley Affiliate (Note G)		(171	)
Net Expenses		50,133
Net Investment Loss		(27,971	)
Realized Gain:
Investments Sold		462,381
Foreign Currency Transactions		67
Net Realized Gain		462,448
Change in Unrealized Appreciation (Depreciation):
Investments		(616,531	)
Foreign Currency Translations		51
Net Change in Unrealized Appreciation (Depreciation)		(616,480	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(154,032	)
Net Decrease in Net Assets Resulting from Operations	$	(182,003	)

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Mid Cap Growth Portfolio

Statements of Changes in Net Assets	Year Ended September 30, 2015 (000)			Year Ended September 30, 2014 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income (Loss)	$	(27,971	)	$	9,697
Net Realized Gain		462,448			884,947
Net Change in Unrealized Appreciation (Depreciation)		(616,480	)		(387,167	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(182,003	)		507,477
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(9,202	)		—
Net Realized Gain		(622,473	)		(310,448	)
Class A:
Net Realized Gain		(246,534	)		(128,582	)
Class L:
Net Realized Gain		(2,378	)		(1,046	)
Class IS:
Net Investment Income		(2,208	)		—
Net Realized Gain		(89,011	)		(1	)
Total Distributions		(971,806	)		(440,077	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		388,442			916,673
Distributions Reinvested		591,126			297,048
Redeemed		(2,845,084	)		(1,755,132	)
Class A:
Subscribed		96,465			295,233
Distributions Reinvested		243,008			126,784
Redeemed		(908,512	)		(745,859	)
Class L:
Subscribed		265			1,469
Distributions Reinvested		2,327			1,024
Redeemed		(3,574	)		(2,856	)
Class IS:
Subscribed		840,659			725,627
Distributions Reinvested		90,604			—
Redeemed		(327,990	)		(43,141	)
Net Decrease in Net Assets Resulting from Capital Share Transactions		(1,832,264	)		(183,130	)
Total Decrease in Net Assets		(2,986,073	)		(115,730	)
Net Assets:
Beginning of Period		7,247,403			7,363,133
End of Period (Including Distributions in Excess of Net Investment Income and Accumulated Undistributed Net Investment Income of $(32,212) and $11,125, respectively)	$	4,261,330		$	7,247,403
(1) Capital Share Transactions:
Class I:
Shares Subscribed		9,353			20,224
Shares Issued on Distributions Reinvested		15,709			6,827
Shares Redeemed		(70,154	)		(38,728	)
Net Decrease in Class I Shares Outstanding		(45,092	)		(11,677	)
Class A:
Shares Subscribed		2,466			6,761
Shares Issued on Distributions Reinvested		6,803			3,046
Shares Redeemed		(23,545	)		(17,415	)
Net Decrease in Class A Shares Outstanding		(14,276	)		(7,608	)
Class L:
Shares Subscribed		6			34
Shares Issued on Distributions Reinvested		66			24
Shares Redeemed		(94	)		(67	)
Net Decrease in Class L Shares Outstanding		(22	)		(9	)
Class IS:
Shares Subscribed		21,050			15,763
Shares Issued on Distributions Reinvested		2,405			—
Shares Redeemed		(8,054	)		(975	)
Net Increase in Class IS Shares Outstanding		15,401			14,788

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Mid Cap Growth Portfolio

	Class I
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	44.73		$	44.24		$	35.34		$	33.65		$	33.58
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.16	)		0.09			0.10			0.17			0.03
Net Realized and Unrealized Gain (Loss)		(2.33	)		3.04			10.10			3.35			0.14
Total from Investment Operations		(2.49	)		3.13			10.20			3.52			0.17
Distributions from and/or in Excess of:
Net Investment Income		(0.09	)		—			(0.12	)		—			(0.10	)
Net Realized Gain		(6.19	)		(2.64	)		(1.18	)		(1.83	)		—
Total Distributions		(6.28	)		(2.64	)		(1.30	)		(1.83	)		(0.10	)
Net Asset Value, End of Period	$	35.96		$	44.73		$	44.24		$	35.34		$	33.65
Total Return++		(6.18	)%		7.25	%		29.92	%		10.91	%		0.47	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	2,164,565		$	4,708,900		$	5,174,440		$	4,219,528		$	3,797,139
Ratio of Expenses to Average Net Assets		0.74	%+		0.75	%+		0.70	%+^		0.71	%+		0.69	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			0.71	%+^		N/A			N/A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.39	)%+		0.19	%+		0.27	%+^		0.48	%+		0.07	%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.01	%
Portfolio Turnover Rate		27	%		45	%		52	%		26	%		35	%

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.80% for Class I shares.

§ Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Mid Cap Growth Portfolio

	Class A
	Year Ended September 30,
Selected Per Share Data and Ratios	2015			2014			2013			2012			2011
Net Asset Value, Beginning of Period	$	42.70		$	42.46		$	34.03		$	32.55		$	32.51
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.26	)		(0.03	)		0.01			0.06			(0.07	)
Net Realized and Unrealized Gain (Loss)		(2.19	)		2.91			9.70			3.25			0.15
Total from Investment Operations		(2.45	)		2.88			9.71			3.31			0.08
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.10	)		—			(0.04	)
Net Realized Gain		(6.19	)		(2.64	)		(1.18	)		(1.83	)		—
Total Distributions		(6.19	)		(2.64	)		(1.28	)		(1.83	)		(0.04	)
Net Asset Value, End of Period	$	34.06		$	42.70		$	42.46		$	34.03		$	32.55
Total Return++		(6.40	)%		6.95	%		29.60	%		10.62	%		0.22	%
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	996,553		$	1,859,126		$	2,171,493		$	1,832,003		$	2,595,397
Ratio of Expenses to Average Net Assets		1.00	%+		1.00	%+		0.95	%+^		0.96	%+		0.94	%+
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			0.96	%+^		N/A			N/A
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.65	)%+		(0.07	)%+		0.02	%+^		0.17	%+		(0.18	)%+
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§		0.01	%
Portfolio Turnover Rate		27	%		45	%		52	%		26	%		35	%

† Per share amount is based on average shares outstanding.

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

^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.15% for Class A shares.

§ Amount is less than 0.005%.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Mid Cap Growth Portfolio

	Class L
	Year Ended September 30,									Period from June 14, 2012^ to
Selected Per Share Data and Ratios	2015			2014			2013			September 30, 2012
Net Asset Value, Beginning of Period	$	42.20		$	42.20		$	33.97		$	32.87
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.46	)		(0.26	)		(0.15	)		0.05
Net Realized and Unrealized Gain (Loss)		(2.16	)		2.90			9.63			1.05
Total from Investment Operations		(2.62	)		2.64			9.48			1.10
Distributions from and/or in Excess of:
Net Investment Income		—			—			(0.07	)		—
Net Realized Gain		(6.19	)		(2.64	)		(1.18	)		—
Total Distributions		(6.19	)		(2.64	)		(1.25	)		—
Net Asset Value, End of Period	$	33.39		$	42.20		$	42.20		$	33.97
Total Return++		(6.94	)%		6.40	%		28.92	%		3.35	%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	12,600		$	16,817		$	17,190		$	10
Ratio of Expenses to Average Net Assets		1.55	%+		1.55	%+		1.46	%+^^		1.50	%+*
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			1.46	%+^^		N/A
Ratio of Net Investment Income (Loss) to Average Net Assets		(1.20	)%+		(0.60	)%+		(0.41	)%+^^		0.46	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.00	%§		0.00	%§*
Portfolio Turnover Rate		27	%		45	%		52	%		26	%#

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

^^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 1.65% for Class L shares.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Mid Cap Growth Portfolio

	Class IS
	Year Ended September 30,						Period from September 13, 2013^ to
Selected Per Share Data and Ratios	2015			2014			September 30, 2013
Net Asset Value, Beginning of Period	$	44.80		$	44.25		$	43.74
Income (Loss) from Investment Operations:
Net Investment Income (Loss)†		(0.10	)		0.18			(0.00	)‡
Net Realized and Unrealized Gain (Loss)		(2.33	)		3.01			0.51
Total from Investment Operations		(2.43	)		3.19			0.51
Distributions from and/or in Excess of:
Net Investment Income		(0.15	)		—			—
Net Realized Gain		(6.19	)		(2.64	)		—
Total Distributions		(6.34	)		(2.64	)		—
Net Asset Value, End of Period	$	36.03		$	44.80		$	44.25
Total Return++		(6.02	)%		7.39	%		1.17	%#
Ratios and Supplemental Data:
Net Assets, End of Period, in (Thousands)	$	1,087,612		$	662,560		$	10
Ratio of Expenses to Average Net Assets		0.61	%+		0.61	%+		0.49	%+^^*
Ratio of Expenses to Average Net Assets Excluding Non Operating Expenses		N/A			N/A			0.58	%+^^*
Ratio of Net Investment Income (Loss) to Average Net Assets		(0.25	)%+		0.41	%+		(0.22	)%+^^*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§		0.00	%§		0.01	%*
Portfolio Turnover Rate		27	%		45	%		52	%#

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

‡ Amount is less than $0.005 per share.

++ Calculated based on the net asset value as of the last business day of the period.

^^ Effective September 16, 2013, the Adviser has agreed to limit the ratio of expenses to average net assets to the maximum ratio of 0.73% for Class IS shares.

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements

The accompanying financial statements relate to the Mid Cap Growth Portfolio. The Portfolio seeks long-term capital growth. The Portfolio offers four classes of shares — Class I, Class A, Class L and Class IS.

1. Security Valuation: (1) An equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), if there were no sales on a given day, the security is valued at the mean between the last reported bid and asked prices; (2) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at its latest reported sales price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (3) listed options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between their latest bid and asked price. Unlisted options are valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees") or quotes from a broker or dealer; (4) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a

security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (7) short-term debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such valuation does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser.

The Fund has procedures to determine the fair value of securities and other financial instruments for which

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

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

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

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 2015.

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Common Stocks
Aerospace & Defense	$	46,518	$	—	$	—	$	46,518
Air Freight & Logistics		19,289		—		—		19,289
Automobiles		210,583		—		—		210,583
Beverages		130,509		—		—		130,509
Biotechnology		47,759		—		—		47,759
Communications Equipment		44,791		—		—		44,791
Consumer Finance		101,673		—		—		101,673
Diversified Financial Services		254,264		—		—		254,264
Electrical Equipment		18,307		—		—		18,307
Food Products		163,619		—		—		163,619
Health Care Equipment & Supplies		210,482		—		—		210,482

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Common Stocks (cont'd)
Health Care Technology	$	144,507	$	—	$	—	$	144,507
Hotels, Restaurants & Leisure		136,243		—		—		136,243
Information Technology Services		193,429		—		—		193,429
Internet & Catalog Retail		79,776		32,305		—		112,081
Internet Software & Services		668,777		—		98,262		767,039
Life Sciences Tools & Services		199,559		—		—		199,559
Media		—		—		66,960		66,960
Pharmaceuticals		244,140		—		—		244,140
Professional Services		211,989		—		—		211,989
Software		482,901		—		—		482,901
Specialty Retail		43,810		—		—		43,810
Tech Hardware, Storage & Peripherals		13,185		—		—		13,185
Textiles, Apparel & Luxury Goods		145,717		—		—		145,717
Total Common Stocks		3,811,827		32,305		165,222		4,009,354
Convertible Preferred Stocks		—		—		7,132		7,132
Preferred Stocks		—		—		252,754		252,754
Call Options Purchased		—		13,064		—		13,064
Short-Term Investments
Investment Company		210,142		—		—		210,142
Repurchase Agreements		—		29,247		—		29,247
Total Short-Term Investments		210,142		29,247		—		239,389
Total Assets	$	4,021,969	$	74,616	$	425,108	$	4,521,693

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in an investment's valuation changes. The Portfolio recognizes transfers between the levels as of the end of the period. As of September 30, 2015, securities with a total value of approximately $32,305,000 transferred from Level 1 to Level 2. At September 30, 2015, the fair value of certain securities were adjusted due to developments which occurred between the time of the close of the foreign markets on which they trade and the close of business on the NYSE which resulted in their Level 2 classification.

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

	Common Stocks (000)		Convertible Preferred Stocks (000)			Preferred Stocks (000)
Beginning Balance	$	132,566	$	8,195		$	123,480
Purchases		28,952		—			—
Sales		—		—			—
Amortization of discount		—		—			—
Transfers in		—		—			—
Transfers out		—		—			—
Corporate actions		—		—			—
Change in unrealized appreciation (depreciation)		3,704		(1,063	)		129,274
Realized gains (losses)		—		—			—
Ending Balance	$	165,222	$	7,132		$	252,754
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2015	$	3,704	$	(1,063	)	$	129,274

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 as of September 30, 2015. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance.

	Fair Value at September 30, 2015 (000)		Valuation Technique	Unobservable Input	Range				Weighted Average/ Selected Value		Impact to Valuation from an Increase in Input
Internet & Catalog Retail
Convertible Preferred Stock	$	246	Market Transaction Method	Escrow Cash Receivable from Liquidation	$	0.43	$	0.43	$	0.43	Increase
Preferred Stocks	$	109,296	Market Transaction Method	Issuance Price of Financing	$	93.09	$	93.09	$	93.09	Increase

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

	Fair Value at September 30, 2015 (000)		Valuation Technique	Unobservable Input	Range						Weighted Average/ Selected Value			Impact to Valuation from an Increase in Input
Internet & Catalog Retail (cont'd)
	$	76,987	Market Transaction Method	Precedent Transaction	$	142.24		$	142.24		$	142.24		Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		16.0	%		18.0	%		17.0	%	Decrease
				Perpetual Growth Rate		3.5	%		4.5	%		4.0	%	Increase
			Market Comparable Companies	Enterprise Value/Revenue		3.6	x		6.0	x		4.8	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease
Internet Software & Services
Common Stocks	$	69,398	Market Transaction Method	Third Party Tender Offer/Series C Preferred	$	19.10		$	19.10		$	19.10		Increase
	$	28,864	Market Transaction Method	Precedent Transaction	$	16.45		$	16.45		$	16.45		Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		16.0	%		18.0	%		17.0	%	Decrease
				Perpetual Growth Rate		3.0	%		4.0	%		3.5	%	Increase
			Market Comparable Companies	Enterprise Value/Revenue		4.4	x		11.6	x		11.6	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease
Convertible Preferred Stock		$6,886	Discounted Cash Flow	Weighted Average Cost of Capital		16.0%			18.0	%		17.0%		Decrease
				Perpetual Growth Rate		2.5	%		3.5	%		3.0	%	Increase
			Market Comparable Companies	Enterprise Value/Revenue		7.9	x		18.2	x		12.8	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease
Media
Common Stock	$	66,960	Market Transaction Method	Precedent Transaction	$	2,119.29		$	2,119.29		$	2,119.29		Increase
			Discounted Cash Flow	Weighted Average Cost of Capital		15.0	%		17.0	%		16.0	%	Decrease
				Perpetual Growth Rate		3.0	%		5.0	%		4.0	%	Increase
			Market Comparable Companies	Enterprise Value/Revenue		3.5	x		7.2	x		5.9	x	Increase
				Discount for Lack of Marketability		15.0	%		15.0	%		15.0	%	Decrease
Software
Preferred Stocks	$	66,471	Market Transaction Method	Issuance Price of Financing	$	11.38		$	11.38		$	11.38		Increase

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

– investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

– investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

realized and unrealized gains (losses) on investment transactions and balances. However, pursuant to U.S. Federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are treated as ordinary income for U.S. Federal income tax purposes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

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

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

Options: With respect to options, the Portfolio is subject to equity risk, interest rate risk and foreign currency

exchange risk in the normal course of pursuing its investment objectives. If the Portfolio buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or futures contract on the underlying instrument, at an agreed-upon price typically in exchange for a premium paid by the Portfolio. The Portfolio may purchase and/or sell put and call options. Purchasing call options tends to increase the Portfolio's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Portfolio's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Portfolio bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Portfolio may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Statement of Assets and Liabilities. Premium paid for purchasing options which expired are treated as realized losses. If the Portfolio sells an option, it sells to another party the right to buy from or sell to the Portfolio a specific amount of the underlying instrument or futures contract on the underlying instrument at an agreed-upon price typically in exchange for a premium received by the Portfolio. When options are purchased OTC, the Portfolio bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Portfolio may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

The following table sets forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2015.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Call Options Purchased

Investments, at Value
(Call Options Purchased)

Currency Risk

13,064

(a)

(a) Amounts are included in Investments in Securities in the Statement of Assets and Liabilities.

The following table sets forth by primary risk exposure the Portfolio's change in unrealized appreciation (depreciation) by type of derivative contract for the year ended September 30, 2015 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Call Options Purchased)	$	(11,193	)(b)

(b) Amounts are included in Investments in the Statement of Operations.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Investments (Call Options Purchased)	$	15,916	(c)

At September 30, 2015, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives	Assets(d) (000)			Liabilities(d) (000)
Call Options Purchased	$	13,064	(a)	$	—

(a) Amounts are included in Investments in Securities in the Statement of Assets and Liabilities.

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

single net payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Portfolio and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Portfolio exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Portfolio's net liability may be delayed or denied.

The following table presents derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)		Collateral Received(e) (000)			Net Amount (not less than $0) (000)
Royal Bank of Scotland	$	13,064	$	—	$	(13,064	)	$	0

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

For the year ended September 30, 2015, the approximate average monthly amount outstanding for each derivative type is as follows:

Call Options Purchased:
Average monthly notional amount					2,616,055,000

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

in an amount equal to or exceeding 100% of the current fair value of the loaned securities. The collateral is marked-to-market daily by State Street Bank and Trust Company ("State Street"), the securities lending agent, to ensure that a minimum of 100% collateral coverage is maintained.

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

The following table presents securities on loan that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Gross Asset Amounts Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)		Collateral Received (000)			Net Amount (not less than $0) (000)
$	173,144	(f)	$	—	$	(173,144	)(g)(h)	$	0

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

(g) The Portfolio received cash collateral of approximately $177,258,000, which was subsequently invested in Repurchase Agreements and Morgan Stanley Institutional Liquidity Funds as reported in the Portfolio of Investments. In addition, the Portfolio received non-cash collateral of approximately $229,000 in the form of U.S. Government obligations, which the Portfolio cannot sell or repledge, and accordingly are not reflected in the Portfolio of Investments.

(h) The actual collateral received is greater than the amount shown here due to overcollateralization.

7. Restricted Securities: The Portfolio invests in unregistered or otherwise restricted securities. The term "restricted securities" refers to securities that are unregistered or are held by control persons of the issuer and securities that are subject to contractual restrictions on their resale. As a result, restricted securities may be more difficult to value and the Portfolio may have difficulty disposing of such

assets either in a timely manner or for a reasonable price. In order to dispose of an unregistered security, the Portfolio, where it has contractual rights to do so, may have to cause such security to be registered. A considerable period may elapse between the time the decision is made to sell the security and the time the security is registered so that the Portfolio could sell it. Contractual restrictions on the resale of securities vary in length and scope and are generally the result of a negotiation between the issuer and acquirer of the securities. The Portfolio would, in either case, bear market risks during that period. Restricted securities are identified in the Portfolio of Investments.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

The Fund has adopted a Distribution and Shareholder Services Plan with respect to Class L shares pursuant to Rule 12b-1 under the Act. Under the Distribution and Shareholder Services Plan, the Portfolio pays the Distributor a distribution fee, accrued daily and paid monthly, at an annual rate of 0.50% and a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class L shares.

G. Security Transactions and Transactions with Affiliates: For the year ended September 30, 2015, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $1,679,562,000 and $4,202,402,000, respectively. There were no purchases and sales of long-term U.S. Government securities for the year ended September 30, 2015.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds (the "Liquidity Funds"), an open-end management investment company managed by the Adviser, both directly and as a portion of the securities held as collateral on loaned securities. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the year ended September 30, 2015, advisory fees paid were reduced by approximately $171,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the year ended September 30, 2015 is as follows:

Value September 30, 2014 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	337,526			$	2,923,523			$	3,050,907			$	206			$	210,142

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

During the year ended September 30, 2015, the Portfolio incurred approximately $2,000 in brokerage commissions with Morgan Stanley & Co., LLC, an affiliate of the Adviser/Administrator and Distributor, for portfolio transactions executed on behalf of the Portfolio.

the tax years in the four-year period ended September 30, 2015, remains subject to examination by taxing authorities.

2015 Distributions Paid From:				2014 Distributions Paid From:
Ordinary Income (000)		Long-Term Capital Gain (000)		Ordinary Income (000)		Long-Term Capital Gain (000)
$	69,051	$	902,755	$	70,823	$	369,254

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, nondeductible expenses, distribution redesignations, tax adjustments on partnership investments held and sold by the Portfolio and a net operating loss, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Distributions in Excess of Net Investment Income (000)				Accumulated Undistributed Net Realized Gain (000)				Paid-in- Capital (000)
$	(3,956	)		$	11,318			$	(7,362	)

At September 30, 2015, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	—			$	415,821

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Post-October Currency And Specified Ordinary Losses (000)				Post-October Capital Losses (000)
$	31,975				—

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Mid Cap Growth Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Mid Cap Growth Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Portfolio's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolio's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2015, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not obtained. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Mid Cap Growth Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the years or periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 25, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited)

Nature, Extent and Quality of Services

Performance, Fees and Expenses of the Portfolio

The Board reviewed the performance, fees and expenses of the Portfolio compared to its peers, as determined by Lipper, and to appropriate benchmarks where applicable. The Board discussed with the Adviser the performance goals and the actual results achieved in managing the Portfolio. When considering a fund's performance, the Board and the Adviser place emphasis on trends and longer-term returns (focusing on one-year, three-year and five-year performance, as of December 31, 2014, or since inception, as applicable). When a fund underperforms its benchmark and/or its peer group average, the Board and the Adviser discuss the causes of such underperformance and, where necessary, they discuss specific changes to investment strategy or investment personnel. The Board noted that the Portfolio's performance was below its peer group average for the one-, three- and five-year periods. The Board discussed with the Adviser the level of the advisory and administration fees (together, the "management fee") for this Portfolio relative to comparable funds and/or other accounts advised by the Adviser and/or compared to its peers as determined by Lipper. In addition to the management fee, the Board also reviewed the Portfolio's total expense ratio. The Board noted that the Portfolio's management fee and total expense ratio were lower than its peer group averages. After discussion, the Board concluded that the Portfolio's (i) performance was acceptable; and (ii) management fee and total expense ratio were competitive with its peer group averages.

Economies of Scale

Profitability of the Adviser and Affiliates

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited) (cont'd)

Other Benefits of the Relationship

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

Other Factors and Current Trends

General Conclusion

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Federal Tax Notice (unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Portfolio during its taxable year ended September 30, 2015. For corporate shareholders 54.35% of the dividends qualified for the dividends received deduction.

The Portfolio designated and paid approximately $902,755,000 as a long-term capital gain distribution.

In January, the Portfolio provides tax information to shareholders for the preceding calendar year.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

WE RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

• We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

• We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

4. HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

5. HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

6. HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.m. (EST)

• Writing to us at the following address:

Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

7. WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (70)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Kathleen A. Dennis (62)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various nonprofit organizations.

Nancy C. Everett (60)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Jakki L. Haussler (58)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Dr. Manuel H. Johnson (66)
c/o Johnson Smick International, Inc.
220 I Street, N.E. — Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

Director of NVR, Inc. (home construction).

Joseph J. Kearns (73)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Michael F. Klein (56)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (79)
522 Fifth Avenue
New York, NY 10036

Chair of the
Board and
Trustee

Chair of the
Boards since
July 2006 and
Trustee since
July 1991

None.

W. Allen Reed (68)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (83)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

Formerly, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc. (1987-December 2012).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Positions(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (67)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (52)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (48)
522 Fifth Avenue
New York, NY 10036

Chief
Compliance
Officer

Since
December
1997

Joseph C. Benedetti (50)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (50)
522 Fifth Avenue
New York, NY 10036

Treasurer and
Principal
Financial
Officer

Treasurer
since July
2003 and
Principal
Financial
Officer since
September
2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (48)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves a one-year term, until his or her successor is elected and has qualified.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

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

IFTMCGANN
1333203 EXP 11.30.16

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Strategic Income Portfolio

Annual Report

September 30, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Overview					4
Portfolio of Investments					7
Statement of Assets and Liabilities					12
Statement of Operations					14
Statement of Changes in Net Assets					15
Financial Highlights					16
Notes to Financial Statements					20
Report of Independent Registered Public Accounting Firm					29
U.S. Privacy Policy					30
Trustee and Officer Information					33

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Strategic Income Portfolio (the "Portfolio") performed during the period ended September 30, 2015.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

October 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Expense Example (unaudited)

Strategic Income Portfolio

This example is based on an investment of $1,000 invested at the beginning of the six-month period ended September 30, 2015 and held for the entire six-month period (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/1/15		Actual Ending Account Value 9/30/15		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
Strategic Income Portfolio Class I	$	1,000.00	$	976.30	$	1,020.10	$	4.90	*	$	5.01	*		0.99	%
Strategic Income Portfolio Class A		1,000.00		975.60		1,018.35		6.64	*		6.78	*		1.34
Strategic Income Portfolio Class C		1,000.00		972.90		1,012.16		8.68	**		8.86	**		2.10
Strategic Income Portfolio Class IS		1,000.00		976.60		1,020.36		4.66	*		4.76	*		0.94

*** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited)

Strategic Income Portfolio

The Strategic Income Portfolio (the "Portfolio") seeks total return comprised of income and capital appreciation.

Performance

For the period since the Portfolio's inception on December 30, 2014, through September 30, 2015, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of -1.39%, net of fees. The Portfolio's Class I shares underperformed against the Portfolio's benchmark the Bank of America/Merrill Lynch 3-Month U.S. Treasury Bill Index (the "Index"), which returned 0.02%.

Factors Affecting Performance

• Since the Portfolio's launch at the end of 2014, concerns over central bank policy around the world and global issues, such as Greece's debt crisis and China's economic slowdown, kept bond markets fairly turbulent. Risk premia rose substantially in the latter months of the period and asset prices suffered. The rise in risk premia was driven by a continued tightening of financial conditions, catalyzed by a devaluation of the Chinese currency in August. This tightening of financial conditions resulted in falling business confidence and generally weaker-than-expected economic data. These factors drove "risk-off" sentiment and led to a widening of credit spreads, equity market sell-off and a rally in U.S. Treasuries. Furthermore, to the surprise of many, the Federal Reserve (Fed) kept interest rates unchanged and delivered a more dovish-than-expected policy statement at their September 2015 meeting. As an unintended consequence, markets increasingly worried that the negative impact on the U.S. economy's growth dynamics would warrant a ratcheting down of global growth expectations. This fear drove risk premia even higher. The Fed has communicated that its decision to hike rates will be data dependent, which implies some uncertainty on whether a hike will happen this year. Only if we see a material recovery in labor market indicators over the next few months would a rate hike likely occur this year.

• U.S. Treasury yields were volatile over the first nine months of 2015, ending the period generally lower than where they started.

• Recovering from a volatile fourth quarter of 2014, high yield credit started 2015 on a positive note, as

one of the few fixed income sectors to have positive performance in the first quarter of 2015. However, amid economic and geopolitical worries, the U.S. credit markets endured record amounts of new issuance, which eventually pressured yield spreads wider (and prices lower, as bond prices move inversely to yields). Over the course of 2015, credit spreads in all markets have widened materially and are currently at levels which are typically only seen in periods of economic recession or systemic stress. The spreads observable in the investment grade markets include a material risk premium, and spreads in the high yield market are compensating for a significant uptick in defaults. While it is clear that certain emerging markets are seeing a material risk of recession, the consensus is for the developed world to see moderate growth over the coming year. We believe this growth backdrop, combined with low inflation, is likely to lead to ongoing accommodative monetary policy from the central banks around the world, which should keep defaults low and support credit markets.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Strategic Income Portfolio

additional risk that at some point in 2016 the Fed could end their MBS purchase program, whereby it has been buying 25% to 30% of all new origination.

• Prior to September, non-agency MBS prices had been resilient to broader credit market declines and had traded more as a function of the strong U.S. housing market. However, prices finally began to weaken as relative spread differences became more pronounced at the end of September. In contrast to the price declines, the fundamental market conditions underlying the non-agency MBS market remain very strong. Home prices rose 0.6% in July (down 0.2% on a seasonally adjusted basis), and were up 5.0% year-on-year from July 2014.⁽ⁱ⁾ New home sales were up 5.7% in August and up 21.6% from August 2014.⁽ⁱⁱ⁾ Existing home sales were down 1.4% in August, predominantly due to lack of supply, but were still up 6.1% from August 2014.⁽ⁱⁱⁱ⁾ The volume of outstanding homes for sale fell to a 4.7-month supply based on current sales volumes, down from 5.0-month supply in July and well below the six-month supply that is historically associated with a balanced housing market.⁽ⁱⁱ⁾ The U.S. homebuilder confidence index climbed to the highest level since November 2005 as housing supply is historically low and housing demand is steadily improving.^(iv) U.S. household formation was up 2.25 million year-on-year as of June, roughly double the long-term average of roughly 1.15 million per year.⁽ⁱⁱ⁾ Household formation had been depressed and substantially below historical norms for most for the past seven years, and we are now seeing some of this pent-up demand enter the market. Mortgage performance remains positive. Mortgage defaults were essentially unchanged in August at 0.8%, down 0.1% from August 2014 and well below the nearly 6% level in 2009.^(v)

• Commercial mortgage-backed securities (CMBS) spreads also widened significantly in the latter half of the period. Fundamentally, the CMBS sector remains healthy. Retail sales continue to climb, with August numbers up 0.2% from July and up 2.2% from August 2014.⁽ⁱⁱ⁾ Consumer confidence rose in September to the second highest level in the past eight years.^(vi) Hotel occupancy rates are at their highest levels in more than 15 years, exceeding 65% occupancy so far in 2015.^(vii) For comparison, the

previous credit cycle peak of 2004-2006 averaged roughly 63% occupancy. These high occupancy rates are boosting the performance of the hotel sector of CMBS. The improving economy and employment numbers are also helping reduce office space vacancies. National office vacancy rates fell by 0.4% to 13.5% in the second quarter of 2015 and are expected to fall further this year.^(viii) Office rental rates increased at roughly 1.1% in the second quarter of 2015, and this pace of increase is expected to continue based on the declining vacancy rates.^(viii)

Management Strategies

• Throughout the period, the Portfolio was positioned with exposure to the investment grade credit sector, primarily focused on financials, and to the high yield credit sector, as we believe valuations relative to fundamentals have been attractive for these segments. These positions detracted from performance during the period as volatility in global markets pushed spreads wider.

• We continue being overweight spread product (non-government bonds) as we believe the yield advantage could provide attractive returns over the near term.

⁽ⁱ⁾ S&P/Case-Shiller 20-City Composite Home Price Index, an index gauging the value of residential real estate in 20 major U.S. metropolitan areas.

⁽ⁱⁱ⁾ U.S. Census Bureau

⁽ⁱⁱⁱ⁾ National Association of Realtors

^(iv) National Association of Home Builders

^(v) S&P/Experian First Mortgage Default Index, an index measuring default rates across first mortgages

^(vi) The Conference Board

^(vii) Statistica.com

^(viii) CBRE Group, Inc.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Strategic Income Portfolio

* Minimum Investment

** Commenced operations on December 30, 2014

In accordance with SEC regulations, the Portfolio's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, Class C and Class IS shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (where applicable).

Performance Compared to the Bank of America/Merrill Lynch 3-Month U.S. Treasury Bill Index⁽¹⁾ and Lipper Alternative Credit Focus Funds Index⁽²⁾

	Period Ended September 30, 2015 Total Returns⁽³⁾
	One Year		Five Years		Ten Years		Since Inception⁽⁶⁾
Portfolio — Class I Shares w/o sales charges⁽⁴⁾		—		—		—		–1.39	%
Portfolio — Class A Shares w/o sales charges⁽⁴⁾		—		—		—		–1.56
Portfolio — Class A Shares with maximum 4.25% sales charges⁽⁴⁾		—		—		—		–5.71
Portfolio — Class C Shares w/o sales charges⁽⁵⁾		—		—		—		–2.71
Portfolio — Class C Shares with maximum 1.00% deferred sales charges⁽⁵⁾		—		—		—		–3.68
Portfolio — Class IS Shares w/o sales charges⁽⁴⁾		—		—		—		–1.37
Bank of America/Merrill Lynch 3-Month U.S. Treasury Bill Index		—		—		—		0.02
Lipper Alternative Credit Focus Funds Index		—		—		—		–1.37

Performance data quoted represents past performance, which is no guarantee of future results, and current performance may be lower or higher than the figures shown. Performance assumes that all dividends and distributions, if any, were reinvested. Returns for period less than one year are not annualized. For the most recent month-end performance figures, please visit www.morganstanley.com/im. Investment return and principal value will fluctuate so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Performance of share classes will vary due to differences in sales charges and expenses.

⁽¹⁾ Bank of America/Merrill Lynch 3-Month U.S. Treasury Bill Index tracks the performance of U.S. Treasury bills with a remaining maturity of three months. The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Alternative Credit Focus Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Alternative Credit Focus Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Alternative Credit Focus Funds classification.

⁽³⁾ Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower.

⁽⁴⁾ Commenced operations on December 30, 2014.

⁽⁵⁾ Commenced operations on April 30, 2015.

⁽⁶⁾ For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of Class I of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (96.2%)
Asset-Backed Securities (16.2%)
AMRESCO Residential Securities Corp. Mortgage Loan Trust,
0.75%, 9/25/27 (a)	$	19	$	19
Bear Stearns Asset-Backed Securities I Trust,
0.51%, 3/25/37 (a)		90		49
Bear Stearns Asset-Backed Securities Trust,
0.54%, 5/25/37 (a)		97		61
BNC Mortgage Loan Trust,
0.35%, 3/25/37 (a)		100		73
Carrington Mortgage Loan Trust,
0.41%, 1/25/37 (a)		100		60
Countrywide Asset-Backed Certificates,
0.56%, 4/25/36 (a)		100		85
0.64%, 3/25/47 (a)(b)		76		56
4.98%, 7/25/36		127		103
CWABS Asset-Backed Certificates Trust,
4.91%, 10/25/46 (a)		87		64
Ellington Loan Acquisition Trust,
1.29%, 5/25/37 (a)(b)		100		86
GSAA Home Equity Trust,
6.00%, 11/25/36		34		23
GSAMP Trust,
0.51%, 3/25/46 (a)		100		83
Home Equity Asset Trust,
0.38%, 7/25/37 (a)		32		31
Home Equity Mortgage Loan Asset-Backed Trust,
0.31%, 4/25/37 (a)		84		56
Lehman ABS Manufactured Housing Contract Trust,
3.70%, 4/15/40		31		31
Nationstar Home Equity Loan Trust,
0.44%, 4/25/37 (a)		100		87
Ownit Mortgage Loan Trust,
0.46%, 3/25/37 (a)		61		47
RAMP Trust,
0.48%, 2/25/36 (a)		100		88
0.51%, 11/25/35 (a)		73		60
RASC Trust,
0.35%, 11/25/36 (a)		80		69
RMAT LLC,
4.83%, 6/25/35 (b)		99		99
Truman Capital Mortgage Loan Trust,
1.89%, 1/25/34 (a)(b)		89		87
2.97%, 11/25/31 (a)(b)		76		72
VOLT XXXIII LLC,
4.25%, 3/25/55 (b)		100		99
				1,588
Collateralized Mortgage Obligation — Agency Collateral Series (0.2%)
Government National Mortgage Association, IO
0.83%, 8/20/58 (a)		627		20

	Face Amount (000)		Value (000)
Commercial Mortgage-Backed Securities (5.2%)
COMM Mortgage Trust,
2.87%, 2/10/48 (b)	$	100	$	78
3.70%, 6/11/27 (a)(b)		100		99
GA Mortgage Securities Trust,
4.47%, 2/10/48 (a)(b)		100		84
HILT Mortgage Trust,
3.95%, 7/15/29 (a)(b)		100		98
JPMBB Commercial Mortgage Securities Trust,
3.98%, 2/15/48 (a)(b)		100		82
Wells Fargo Commercial Mortgage Trust,
4.24%, 5/15/48 (a)		75		64
				505
Corporate Bonds (39.2%)
Finance (16.6%)
ABN Amro Bank N.V,
6.38%, 4/27/21	EUR	100		132
Ally Financial, Inc.,
4.13%, 3/30/20	$	25		25
Assicurazioni Generali SpA,
7.75%, 12/12/42 (a)	EUR	100		131
Bank of America Corp.,
4.25%, 10/22/26	$	50		49
BNP Paribas SA,
4.25%, 10/15/24		200		199
BPCE SA,
5.15%, 7/21/24 (b)		200		204
Citigroup, Inc.,
5.50%, 9/13/25		75		82
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA,
2.50%, 5/26/26 (a)	EUR	100		111
Ctrip.com International Ltd.,
1.25%, 10/15/18	$	50		54
Discover Financial Services,
3.95%, 11/6/24		25		25
Goldman Sachs Group, Inc. (The),
0.73%, 10/29/19 (a)	EUR	100		112
JPMorgan Chase & Co.,
3.88%, 2/1/24	$	50		52
Kennedy-Wilson, Inc.,
5.88%, 4/1/24		25		24
Lloyds Bank PLC,
6.50%, 3/24/20	EUR	50		67
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen,
6.00%, 5/26/41 (a)		100		130
Nationwide Building Society,
4.13%, 3/20/23 (a)		100		118
Vonovia Finance BV,
4.00%, 12/17/21 (a)(c)		100		107
				1,622

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Industrials (21.9%)
Actavis Funding SCS,
3.80%, 3/15/25	$	15	$	15
ADT Corp. (The),
3.50%, 7/15/22		25		22
Advanced Micro Devices, Inc.,
6.75%, 3/1/19		25		17
Air Canada,
6.75%, 10/1/19 (b)		50		53
Akamai Technologies, Inc.,
0.00%, 2/15/19		50		52
Aramark Services, Inc.,
5.75%, 3/15/20		25		26
ArcelorMittal,
5.13%, 6/1/20		25		23
AT&T, Inc.,
6.30%, 1/15/38		25		28
Ball Corp.,
4.00%, 11/15/23		25		24
Baytex Energy Corp.,
5.63%, 6/1/24 (b)		25		20
Bombardier, Inc.,
6.13%, 1/15/23 (b)		25		19
Building Materials Corp. of America,
5.38%, 11/15/24 (b)		50		50
Carrizo Oil & Gas, Inc.,
6.25%, 4/15/23		15		13
CCO Safari II LLC,
4.91%, 7/23/25 (b)		50		50
Citrix Systems, Inc.,
0.50%, 4/15/19		50		53
Cobalt International Energy, Inc.,
2.63%, 12/1/19		50		36
Continental Airlines Pass-Thru Certificates,
6.13%, 4/29/18		25		26
Crown Castle International Corp.,
5.25%, 1/15/23		25		27
CSC Holdings LLC,
5.25%, 6/1/24		25		20
Denbury Resources, Inc.,
4.63%, 7/15/23		25		14
DISH DBS Corp.,
5.00%, 3/15/23		25		21
Dollar Tree, Inc.,
5.75%, 3/1/23 (b)		25		26
Embraer Netherlands Finance BV,
5.05%, 6/15/25		25		23
Energy Transfer Partners LP,
2.50%, 6/15/18		75		75
First Data Corp.,
5.38%, 8/15/23 (b)		25		25
General Motors Financial Co., Inc.,
4.30%, 7/13/25		50		48

	Face Amount (000)		Value (000)
Glencore Funding LLC,
4.00%, 4/16/25 (b)	$	25	$	19
Global Partners LP/GLP Finance Corp.,
7.00%, 6/15/23 (b)		25		23
Harland Clarke Holdings Corp.,
9.75%, 8/1/18 (b)		25		26
HCA, Inc.,
4.75%, 5/1/23		25		25
Hilcorp Energy I LP/Hilcorp Finance Co.,
5.75%, 10/1/25 (b)		15		13
HomeAway, Inc.,
0.13%, 4/1/19		50		46
Kinder Morgan, Inc.,
5.55%, 6/1/45		25		21
Lamar Media Corp.,
5.00%, 5/1/23		25		25
Lear Corp.,
5.25%, 1/15/25		50		49
Lundin Mining Corp.,
7.50%, 11/1/20 (b)		25		24
Mallinckrodt International Finance SA/Mallinckrodt CB LLC,
5.50%, 4/15/25 (b)		25		22
MasTec, Inc.,
4.88%, 3/15/23		25		21
MGM Resorts International,
6.00%, 3/15/23		25		24
Midcontinent Communications & Midcontinent Finance Corp.,
6.25%, 8/1/21 (b)		25		25
Motorola Solutions, Inc.,
4.00%, 9/1/24		25		23
MPLX LP,
4.00%, 2/15/25		25		23
Netflix, Inc.,
5.50%, 2/15/22 (b)		25		25
ON Semiconductor Corp.,
2.63%, 12/15/26		50		56
OPE KAG Finance Sub, Inc.,
7.88%, 7/31/23 (b)		25		25
Outfront Media Capital LLC/Outfront Media Capital Corp.,
5.25%, 2/15/22		25		25
Pittsburgh Glass Works LLC,
8.00%, 11/15/18 (b)		50		52
QUALCOMM, Inc.,
4.80%, 5/20/45		30		26
QVC, Inc.,
4.85%, 4/1/24		25		24
RR Donnelley & Sons Co.,
7.88%, 3/15/21		25		26
RSI Home Products, Inc.,
6.50%, 3/15/23 (b)		25		25
Seminole Hard Rock Entertainment, Inc./Seminole Hard Rock International LLC,
5.88%, 5/15/21 (b)		50		49

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Industrials (cont'd)
SM Energy Co.,
6.13%, 11/15/22	$	25	$	23
Starwood Property Trust, Inc.,
4.55%, 3/1/18		50		51
Suburban Propane Partners LP/Suburban Energy Finance Corp.,
5.75%, 3/1/25		25		24
Telefonica Europe BV,
5.88%, 3/31/24 (a)(c)	EUR	100		112
Tesla Motors, Inc.,
0.25%, 3/1/19	$	50		49
Toll Brothers Finance Corp.,
0.50%, 9/15/32		50		52
Tops Holding LLC/Tops Markets II Corp.,
8.00%, 6/15/22 (b)		25		25
Transocean, Inc.,
4.30%, 10/15/22		50		31
United Rentals North America, Inc.,
5.75%, 11/15/24		25		24
Williams Partners LP/ACMP Finance Corp.,
4.88%, 5/15/23		25		23
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
5.38%, 3/15/22		25		23
XPO Logistics, Inc.,
7.88%, 9/1/19 (b)		50		49
Yahoo!, Inc.,
0.00%, 12/1/18		50		49
Yandex N.V.,
1.13%, 12/15/18		50		43
Zachry Holdings, Inc.,
7.50%, 2/1/20 (b)		25		25
				2,151
Utility (0.7%)
AES Corp.,
4.88%, 5/15/23		75		66
				3,839
Mortgages — Other (10.6%)
Alternative Loan Trust,
2.63%, 3/25/35 (a)		115		105
PAC
0.64%, 10/25/36 (a)		80		56
Banc of America Alternative Loan Trust,
0.64%, 11/25/36 (a)		70		44
5.71%, 10/25/36 (a)		85		54
Bear Stearns Structured Products, Inc. Trust,
2.54%, 1/26/36 (a)		44		36
Bear Stearns Trust,
0.57%, 5/25/36 (a)		75		62
2.36%, 2/25/36 (a)		67		56
2.91%, 4/25/35 (a)		62		49
2.95%, 3/25/36 (a)		118		91

	Face Amount (000)		Value (000)
Citigroup Mortgage Loan Trust,
2.47%, 6/25/36 (a)	$	50	$	40
First Horizon Mortgage Pass-Through Trust,
6.25%, 11/25/36		29		28
Grifonas Finance PLC,
0.32%, 8/28/39 (a)	EUR	54		44
GSMSC Pass-Through Trust,
7.50%, 9/25/36 (a)(b)	$	39		32
HarborView Mortgage Loan Trust,
0.41%, 1/19/38 (a)		36		31
IndyMac INDX Mortgage Loan Trust,
2.55%, 12/25/34 (a)		56		53
JP Morgan Mortgage Trust,
2.58%, 6/25/37 (a)		49		45
Lehman Mortgage Trust,
6.00%, 7/25/36 - 6/25/37		162		118
Luminent Mortgage Trust,
0.42%, 5/25/37 (a)		69		50
MASTR Alternative Loan Trust,
6.25%, 7/25/36		56		49
				1,043
Sovereign (18.0%)
Australia Government Bond,
2.75%, 4/21/24	AUD	150		107
Hungary Government Bond,
5.50%, 6/24/25	HUF	16,000		67
6.00%, 11/24/23		22,000		94
Hungary Government International Bond,
5.38%, 3/25/24	$	100		109
Indonesia Government International Bond,
5.88%, 1/15/24 (b)		200		212
Italy Buoni Poliennali Del Tesoro,
2.35%, 9/15/24 (b)	EUR	140		178
Mexican Bonos,
8.00%, 6/11/20	MXN	1,150		76
New Zealand Government Bond,
5.50%, 4/15/23	NZD	200		150
Poland Government Bond,
5.75%, 10/25/21	PLN	300		93
Portugal Government International Bond,
5.13%, 10/15/24 (b)	$	50		53
5.13%, 10/15/24		130		138
Portugal Obrigacoes do Tesouro OT,
2.88%, 10/15/25 (b)	EUR	120		140
4.45%, 6/15/18 (b)		75		93
Select Medical Corp.,
6.38%, 6/1/21	$	50		49
South Africa Government Bond,
7.25%, 1/15/20	ZAR	1,500		106
Spain Government Bond,
4.20%, 1/31/37 (b)	EUR	30		41

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Strategic Income Portfolio

	Face Amount (000)		Value (000)
Sovereign (cont'd)
Spain Government Inflation Linked Bond,
1.80%, 11/30/24 (b)	EUR	50	$	60
				1,766
U.S. Treasury Securities (6.8%)
U.S. Treasury Bond,
3.50%, 2/15/39	$	230		259
U.S. Treasury Inflation Indexed Bond,
0.25%, 1/15/25		222		213
U.S. Treasury Notes,
0.88%, 7/31/19		100		99
1.75%, 5/15/23		100		99
				670
Total Fixed Income Securities (Cost $9,663)				9,431
	Shares
Short-Term Investment (0.7%)
Investment Company (0.7%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $65)		65,350		65
Total Investments (96.9%) (Cost $9,728) (d)(e)				9,496
Other Assets in Excess of Liabilities (3.1%)				309
Net Assets (100.0%)			$	9,805

(a) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on September 30, 2015.

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

(c) Perpetual — One or more securities do not have a predetermined maturity date. Rates for these securities are fixed for a period of time, after which they revert to a floating rate. Interest rates in effect are as of September 30, 2015.

(d) Securities are available for collateral in connection with open foreign currency forward exchange contracts, futures contracts and swap agreements.

(e) At September 30, 2015, the aggregate cost for Federal income tax purposes is approximately $9,737,000. The aggregate gross unrealized appreciation is approximately $93,000 and the aggregate gross unrealized depreciation is approximately $334,000 resulting in net unrealized depreciation of approximately $241,000.

IO Interest Only.

PAC Planned Amortization Class.

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at September 30, 2015:

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
JPMorgan Chase Bank NA	CAD	124	$	93	10/5/15	USD	94	$	94	$	1
JPMorgan Chase Bank NA	CAD	65		49	10/5/15	USD	49		49		(—	@)
JPMorgan Chase Bank NA	EUR	1,491		1,667	10/5/15	USD	1,685		1,685		18
JPMorgan Chase Bank NA	GBP	38		57	10/5/15	EUR	51		57		—	@
JPMorgan Chase Bank NA	HUF	44,838		160	10/5/15	USD	161		161		1
JPMorgan Chase Bank NA	MXN	1,269		75	10/5/15	USD	75		75		(—	@)
JPMorgan Chase Bank NA	NOK	404		48	10/5/15	USD	49		49		1
JPMorgan Chase Bank NA	NZD	310		198	10/5/15	USD	196		196		(2	)
JPMorgan Chase Bank NA	PLN	366		96	10/5/15	USD	97		97		1
JPMorgan Chase Bank NA	SEK	424		50	10/5/15	USD	50		50		(—	@)
JPMorgan Chase Bank NA	USD	2		2	10/5/15	EUR	2		2		—	@
JPMorgan Chase Bank NA	USD	49		49	10/5/15	NOK	417		49		—	@
JPMorgan Chase Bank NA	ZAR	1,521		110	10/5/15	USD	113		113		3
UBS AG	USD	146		146	10/5/15	GBP	96		145		(1	)
JPMorgan Chase Bank NA	AUD	153		107	10/6/15	USD	107		107		—	@
			$	2,907				$	2,929	$	22

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Strategic Income Portfolio

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2015:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Depreciation (000)
Short:
German Euro BOBL (Germany)		5	$	(721	)	Dec-15	$	(5	)
German Euro BTP (Germany)		1		(152	)	Dec-15		(4	)
German Euro Bund (Germany)		4		(698	)	Dec-15		(13	)
U.S. Treasury 10 yr. Note (United States)		23		(2,961	)	Dec-15		(32	)
U.S. Treasury 2 yr. Note (United States)		1		(219	)	Dec-15		(—	@)
U.S. Treasury 5 yr. Note (United States)		14		(1,687	)	Dec-15		(9	)
U.S. Treasury Long Bond (United States)		1		(157	)	Dec-15		(3	)
U.S. Treasury Ultra Long Bond (United States)		1		(161	)	Dec-15		(2	)
							$	(68	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 2015:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Depreciation (000)			Value (000)			Credit Rating of Reference Obligation† (Unaudited)
Deutsche Bank AG CMBX.NA.BB.60	Sell	$	28		5.00	%	5/11/63	$	—	@	$	(1	)	$	(1	)	NR
Goldman Sachs International CMBX.NA.BB.60	Sell		20		5.00		5/11/63		(—	@)		(1	)		(1	)	NR
		$	48					$	—	@	$	(2	)	$	(2	)

@ Value is less than $500.

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

NR Not rated.

AUD — Australian Dollar

CAD — Canadian Dollar

EUR — Euro

GBP — British Pound

HUF — Hungarian Forint

MXN — Mexican Peso

NOK — Norwegian Krone

NZD — New Zealand Dollar

PLN — Polish Zloty

SEK — Swedish Krona

USD — United States Dollar

ZAR — South African Rand

Portfolio Composition

Classification	Percentage of Total Investments
Industrials		22.6	%
Sovereign		18.6
Finance		17.1
Asset-Backed Securities		16.7
Mortgages — Other		11.0
U.S. Treasury Securities		7.1
Commercial Mortgage-Backed Securities		5.3
Other*		1.6
Total Investments		100.0	%**

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

** Does not include open short futures contracts with an underlying face amount of approximately $6,756,000 with total unrealized depreciation of approximately $68,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $22,000 and does not include open swap agreements with total unrealized depreciation of approximately $2,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Strategic Income Portfolio

Statement of Assets and Liabilities	September 30, 2015 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $9,663)	$	9,431
Investment in Security of Affiliated Issuer, at Value (Cost $65)		65
Total Investments in Securities, at Value (Cost $9,728)		9,496
Foreign Currency, at Value (Cost $—@)		—	@
Receivable for Investments Sold		108
Interest Receivable		97
Due from Adviser		90
Receivable for Variation Margin on Futures Contracts		74
Prepaid Offering Costs		42
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		25
Tax Reclaim Receivable		3
Premium Paid on Open Swap Agreements		—	@
Receivable from Affiliate		—	@
Other Assets		18
Total Assets		9,953
Liabilities:
Payable for Investments Purchased		107
Payable for Professional Fees		16
Payable for Custodian Fees		7
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class C		—	@
Payable for Transfer Agency Fees — Class IS		1
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		3
Unrealized Depreciation on Swap Agreements		2
Payable for Administration Fees		1
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Premium Received on Open Swap Agreements		—	@
Other Liabilities		9
Total Liabilities		148
Net Assets	$	9,805
Net Assets Consist Of:
Paid-in-Capital	$	10,005
Accumulated Undistributed Net Investment Income		167
Accumulated Net Realized Loss		(86	)
Unrealized Appreciation (Depreciation) on:
Investments		(232	)
Futures Contracts		(68	)
Swap Agreements		(2	)
Foreign Currency Forward Exchange Contracts		22
Foreign Currency Translations		(1	)
Net Assets	$	9,805

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Strategic Income Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2015 (000)
CLASS I:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	9.79
CLASS A:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Redemption Price Per Share	$	9.79
Maximum Sales Load		4.25	%
Maximum Sales Charge	$	0.43
Maximum Offering Price Per Share	$	10.22
CLASS C:
Net Assets	$	10
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		994
Net Asset Value, Offering and Redemption Price Per Share	$	9.76
CLASS IS:
Net Assets	$	9,775
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		998,000
Net Asset Value, Offering and Redemption Price Per Share	$	9.79

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Strategic Income Portfolio

Statement of Operations	Period from December 30, 2014^ September 30, 2015 (000)
Investment Income:
Interest from Securities of Unaffiliated Issuers	$	208
Dividends from Security of Affiliated Issuer (Note G)		2
Total Investment Income		210
Expenses:
Offering Costs		101
Professional Fees		99
Advisory Fees (Note B)		30
Custodian Fees (Note F)		30
Shareholder Reporting Fees		14
Pricing Fees		7
Administration Fees (Note C)		6
Registration Fees		6
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Trustees' Fees and Expenses		—	@
Other Expenses		10
Total Expenses		307
Expenses Reimbursed by Adviser (Note B)		(202	)
Waiver of Advisory Fees (Note B)		(30	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(1	)
Net Expenses		70
Net Investment Income		140
Realized Gain (Loss):
Investments Sold		(107	)
Futures Contracts		(31	)
Swap Agreements		—	@
Foreign Currency Forward Exchange Contracts		157
Foreign Currency Transactions		(8	)
Net Realized Gain		11
Change in Unrealized Appreciation (Depreciation):
Investments		(232	)
Futures Contracts		(68	)
Swap Agreements		(2	)
Foreign Currency Forward Exchange Contracts		22
Foreign Currency Translations		(1	)
Net Change in Unrealized Appreciation (Depreciation)		(281	)
Net Realized Gain and Change in Unrealized Appreciation (Depreciation)		(270	)
Net Decrease in Net Assets Resulting from Operations	$	(130	)

^ Commencement of Operations.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Strategic Income Portfolio

Statement of Changes in Net Assets	Period from December 30, 2014^ September 30, 2015 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	140
Net Realized Gain		11
Net Change in Unrealized Appreciation (Depreciation)		(281	)
Net Decrease in Net Assets Resulting from Operations		(130	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(—	@)
Class A:
Net Investment Income		(—	@)
Class C:
Net Investment Income		(—	@)*
Class IS:
Net Investment Income		(75	)
Total Distributions		(75	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		10
Class A:
Subscribed		10
Class C:
Subscribed		10	*
Class IS:
Subscribed		9,980
Net Increase in Net Assets Resulting from Capital Share Transactions		10,010
Total Increase in Net Assets		9,805
Net Assets:
Beginning of Period		—
End of Period (Including Accumulated Undistributed Net Investment Income of $167)	$	9,805
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1
Class A:
Shares Subscribed		1
Class C:
Shares Subscribed		1	*
Class IS:
Shares Subscribed		998

^ Commencement of Operations.

* For the period April 30, 2015 through September 30, 2015.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Strategic Income Portfolio

	Class I
Selected Per Share Data and Ratios	Period from December 30, 2014^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.14
Net Realized and Unrealized Loss		(0.28	)
Total from Investment Operations		(0.14	)
Distributions from and/or in Excess of:
Net Investment Income		(0.07	)
Net Asset Value, End of Period	$	9.79
Total Return++		(1.39	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.98	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.81	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%
Portfolio Turnover Rate		39	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		17.80	%*
Net Investment Loss to Average Net Assets		(15.01	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Strategic Income Portfolio

	Class A
Selected Per Share Data and Ratios	Period from December 30, 2014^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.11
Net Realized and Unrealized Loss		(0.27	)
Total from Investment Operations		(0.16	)
Distributions from and/or in Excess of:
Net Investment Income		(0.05	)
Net Asset Value, End of Period	$	9.79
Total Return++		(1.56	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	10
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.33	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.46	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%
Portfolio Turnover Rate		39	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		18.06	%*
Net Investment Loss to Average Net Assets		(15.27	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Strategic Income Portfolio

	Class C
Selected Per Share Data and Ratios	Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.06
Income (Loss) from Investment Operations:
Net Investment Income†		0.05
Net Realized and Unrealized Loss		(0.32	)
Total from Investment Operations		(0.27	)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)
Net Asset Value, End of Period	$	9.76
Total Return++		(2.71	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	10
Ratio of Expenses to Average Net Assets ⁽¹⁾		2.10	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.13	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.00	%§*
Portfolio Turnover Rate		39	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		19.28	%*
Net Investment Loss to Average Net Assets		(16.05	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

§ Amount is less than 0.005%.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Strategic Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Period from December 30, 2014^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.14
Net Realized and Unrealized Loss		(0.27	)
Total from Investment Operations		(0.13	)
Distributions from and/or in Excess of:
Net Investment Income		(0.08	)
Net Asset Value, End of Period	$	9.79
Total Return++		(1.37	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, in (Thousands)	$	9,775
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.93	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.88	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.02	%*
Portfolio Turnover Rate		39	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		4.04	%*
Net Investment Loss to Average Net Assets		(1.23	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements

Morgan Stanley Institutional Fund Trust ("MSIFT'' or the ''Fund'') is registered under the Investment Company Act of 1940, as amended (the "Act''), as an open-end management investment company. The Fund is comprised of nine separate, active portfolios (individually referred to as a "Portfolio", collectively as the "Portfolios"). The Fund applies investment company accounting and reporting guidance. All Portfolios are considered diversified for purposes of the Act.

The accompanying financial statements relate to the Strategic Income Portfolio. The Portfolio's adviser, Morgan Stanley Investment Management Inc. (the "Adviser") and sub-adviser, Morgan Stanley Investment Management Limited ("MSIM Limited") (the "Sub-Adviser"), seek a total return comprised of income and capital appreciation. The Portfolio commenced operations on December 30, 2014 and offers four classes of shares — Class I, Class A, Class C and Class IS.

On April 30, 2015, the Portfolio commenced offering Class C shares.

1. Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (2) futures are valued at the latest price published by the commodities exchange on which they trade; (3) swaps are marked-to-market daily based upon quotations from market makers; (4) when market quotations are not readily available, including circumstances under which the Adviser or Sub-Adviser determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under

procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (5) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (6) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (7) short-term debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such valuation does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

a number of factors, including valuation methodologies and significant unobservable valuation inputs, when arriving at fair value. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing or disposition analysis, and reviews of any related market activity.

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

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

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 2015.

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Asset-Backed Securities	$	—		$	1,588		$	—	$	1,588
Collateralized Mortgage Obligation — Agency Collateral Series		—			20			—		20
Commercial Mortgage-Backed Securities		—			505			—		505
Corporate Bonds		—			3,839			—		3,839
Mortgages — Other		—			1,043			—		1,043
Sovereign		—			1,766			—		1,766
U.S. Treasury Securities		—			670			—		670
Total Fixed Income Securities		—			9,431			—		9,431
Short-Term Investment
Investment Company		65			—			—		65
Foreign Currency Forward Exchange Contracts		—			25			—		25
Total Assets		65			9,456			—		9,521
Liabilities:
Foreign Currency Forward Exchange Contracts		—			(3	)		—		(3	)
Futures Contracts		(68	)		—			—		(68	)
Credit Default Swap Agreements		—			(2	)		—		(2	)
Total Liabilities		(68	)		(5	)		—		(73	)
Total	$	(3	)	$	9,451		$	—	$	9,448

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

– investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

– investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

component of unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. The change in unrealized currency gains (losses) on foreign currency translations on foreign currency translations for the period is reflected in the Statement of Operations.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

possibly greater than, the risks associated with other portfolio investments. Derivatives may involve the use of highly specialized instruments that require investment techniques and risk analyses different from those associated with other portfolio investments. All of the Portfolio's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

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

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

initial investment in such contracts. No assurance can be given that a liquid market will exist for any particular futures contract at any particular time. There is also the risk of loss by the Portfolio of margin deposits in the event of bankruptcy of a broker with which the Portfolio has open positions in the futures contract.

The Portfolio's use of swaps during the period included those based on the credit of an underlying security commonly referred to as "credit default swaps." The

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Portfolio may be either the buyer or seller in a credit default swap. Where the Portfolio is the buyer of a credit default swap contract, it would typically be entitled to receive the par (or other agreed-upon) value of a referenced debt obligation from the counterparty to the contract only in the event of a default or similar event by the issuer of the debt obligation. If no default occurs, the Portfolio would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Portfolio is the seller of a credit default swap contract, it typically receives the stream of payments but is obligated to pay an amount equal to the par (or other agreed-upon) value of a referenced debt obligation upon the default or similar event by the issuer of the referenced debt obligation. The use of credit default swaps could result in losses to the Portfolio if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

together with a specified valuation method, are used to calculate the settlement value. The Portfolio's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the swap agreement.

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability, respectively, in the Statement of Assets and Liabilities.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

exposure to a different currency and may be used for hedging purposes or to establish an active exposure to the exchange rate between any two currencies. To the extent hedged by the use of currency contracts, the precise matching of the currency contract amounts and the value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it matures. Furthermore, such transactions may reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is additional risk to the extent that currency contracts create exposure to currencies in which the Portfolio's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Portfolio than if it had not entered into such contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Portfolio as unrealized gain or loss. The Portfolio records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2015.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contracts

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contracts

Unrealized Depreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(68

)(a)

Swap Agreements

Unrealized Depreciation on
Swap Agreements

Credit Risk

)

Total

(73

)

The following tables set forth by primary risk exposure the Portfolio's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract for the period ended September 30, 2015 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk Foreign Currency	Forward Exchange Contracts	$	157
Interest Rate Risk	Futures Contracts		(31	)
Credit Risk	Swap Agreements		—	@
Total		$	126
Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk Foreign Currency	Forward Exchange Contracts	$	22
Interest Rate Risk	Futures Contracts		(68	)
Credit Risk	Swap Agreements		(2	)
Total		$	(48	)

@ Amount is less than $500.

At September 30, 2015, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	25	$	(3	)
Swap Agreements		—		(2	)
Total	$	25	$	(5	)

(b) Excludes exchange traded derivatives.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Portfolio typically may offset with the counterparty certain OTC derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default, termination and/or potential deterioration in the credit quality of the counterparty. Various Master Agreements govern the terms of certain transactions with counterparties, including transactions such as swap, forward, repurchase and reverse repurchase agreements. These Master Agreements typically attempt to reduce the counterparty risk associated with such transactions by specifying credit protection mechanisms and providing standardization that improves legal certainty. Cross-termination provisions under Master Agreements typically provide that a default in connection with one transaction between the Portfolio and a counterparty gives the non-defaulting party the right to terminate any other transactions in place with the defaulting party to create one single net payment due to/due from the defaulting party and may be a feature in certain Master Agreements. In the event the Portfolio exercises its right to terminate a Master Agreement after a counterparty experiences a termination event as defined in the Master Agreement, the return of collateral with market value in excess of the Portfolio's net liability may be delayed or denied.

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Received (000)		Net Amount (not less than $0) (000)
JPMorgan Chase Bank NA	$	25	$	(2	)	$	—	$	23
Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Deutsche Bank AG	$	1	$	—		$	—	$	1
Goldman Sachs International		1		—			—		1
JPMorgan Chase Bank NA		2		(2	)		—		0
UBS AG		1		—			—		1
Total	$	5	$	(2	)	$	—	$	3

For the period ended September 30, 2015, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	3,687,000
Futures Contracts:
Average monthly original value	$	8,659,000
Swap Agreements:
Average monthly notional amount	$	16,000

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

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Advisory Agreement, paid quarterly, at the annual rate based on the average daily net assets as follows:

First $500 million				Over $500 million
	0.40	%			0.35	%

For the period ended September 30, 2015, the advisory fee rate (net of waivers/rebate) was equivalent to an annual effective rate of 0.00% of the Portfolio's average daily net assets.

The Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 1.00% for Class I shares, 1.35% for Class A shares, 2.10% for Class C shares and 0.95% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the period ended September 30, 2015, approximately $30,000 of advisory fees were waived and approximately $206,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

The Adviser has entered into a Sub-Advisory Agreement with the Sub-Adviser, a wholly-owned subsidiary of Morgan Stanley. The Sub-Adviser provides the Portfolio with advisory services subject to the overall supervision of the Adviser and the Fund's Officers and Trustees. The Adviser pays the Sub-Adviser on a monthly basis a portion of the net advisory fees the Adviser receives from the Portfolio.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Portfolio.

D. Distribution and Shareholder Services Fees: Morgan Stanley Distribution, Inc. ("MSDI" or the "Distributor"), a wholly-owned subsidiary of the Adviser and Sub-Adviser, and an indirect subsidiary of Morgan Stanley, serves as the Fund's Distributor of Portfolio shares pursuant to a Distribution Agreement. The Fund has adopted a Shareholder

Services Plan with respect to Class A shares pursuant to Rule 12b-1 under the Act. Under the Shareholder Services Plan, the Portfolio pays the Distributor a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class A shares.

G. Security Transactions and Transactions with Affiliates: For the period ended September 30, 2015, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $12,198,000 and $2,710,000, respectively. For the period September 30, 2015, purchases and sales of long-term U.S. Government securities were approximately $627,000 and $177,000, respectively.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Portfolio due to its investment in the Liquidity Funds. For the period ended September 30, 2015, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Liquidity Funds.

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the period September 30, 2015 is as follows:

Value December 30, 2014 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	—			$	12,003			$	11,938			$	2			$	65

U.S. Internal Revenue Service, New York and various states. The tax period ended September 30, 2015, remains subject to examination by taxing authorities.

The tax character of distributions paid may differ from the character of distributions shown in the Statement of Changes in Net Assets due to short-term capital gains being treated as ordinary income for tax purposes. The tax character of distributions paid during fiscal year 2015 was as follows:

2015 Distributions Paid From:
Ordinary Income (000)
$	75

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions, basis adjustments for swap transactions, paydown adjustments and nondeductible expenses, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	102			$	(97	)		$	(5	)

At September 30, 2015, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	322			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused short term and long term capital losses of approximately $85,000 and $55,000, respectively, that do not have an expiration date.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Strategic Income Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Strategic Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2015, the related statements of operations and changes in net assets for the period from December 30, 2014 (commencement of operations) to September 30, 2015 and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Strategic Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2015, the results of its operations, the changes in its net assets for the period from December 30, 2014 (commencement of operations) to September 30, 2015 and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 25, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

WE RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

• We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

• We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

4. HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

5. HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

6. HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.m. (EST)

• Writing to us at the following address:

Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

7. WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (70)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Kathleen A. Dennis (62)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various nonprofit organizations.

Nancy C. Everett (60)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Jakki L. Haussler (58)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Dr. Manuel H. Johnson (66)
c/o Johnson Smick International, Inc.
220 I Street, N.E. —
Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

Director of NVR, Inc. (home construction).

Joseph J. Kearns (73)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Michael F. Klein (56)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (79)
522 Fifth Avenue
New York, NY 10036

Chair of the
Board and
Trustee

Chair of the
Boards since
July 2006 and
Trustee since
July 1991

None.

W. Allen Reed (68)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (83)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

Formerly, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc. (1987-December 2012).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Positions(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (67)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (52)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (48)
522 Fifth Avenue
New York, NY 10036

Chief
Compliance
Officer

Since
December
1997

Joseph C. Benedetti (50)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (50)
522 Fifth Avenue
New York, NY 10036

Treasurer and
Principal
Financial
Officer

Treasurer
since July
2003 and
Principal
Financial
Officer since
September
2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (48)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves a one-year term, until his or her successor is elected and has qualified.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Adviser and Administrator

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

Custodian

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

Legal Counsel

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

Distributor

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

Dividend Disbursing and Transfer Agent

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Sub-Adviser

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

(This Page has been left blank intentionally.)

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

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

IFTSIPANN
1334247 EXP 11.30.16

INVESTMENT MANAGEMENT

Morgan Stanley Institutional Fund Trust

Global Multi-Asset Income Portfolio

Annual Report

September 30, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Table of Contents

Shareholders' Letter					2
Expense Example					3
Investment Overview					4
Portfolio of Investments					7
Statement of Assets and Liabilities					21
Statement of Operations					23
Statement of Changes in Net Assets					24
Financial Highlights					25
Notes to Financial Statements					29
Report of Independent Registered Public Accounting Firm					42
Investment Advisory Agreement Approval					43
Federal Tax Notice					45
U.S. Privacy Policy					46
Trustee and Officer Information					49

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Shareholders' Letter (unaudited)

Dear Shareholders,

We are pleased to provide this Annual report, in which you will learn how your investment in Global Multi-Asset Income Portfolio (the "Portfolio") performed during the period ended September 30, 2015.

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

Sincerely,

John H. Gernon
President and Principal Executive Officer

October 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Expense Example (unaudited)

Global Multi-Asset Income Portfolio

This example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period 4/30/15 - 9/30/15 (unless otherwise noted).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value 4/30/15		Actual Ending Account Value 9/30/15		Hypothetical Ending Account Value		Actual Expenses Paid During Period			Hypothetical Expenses Paid During Period			Net Expense Ratio During Period***
Global Multi-Asset Income Portfolio Class I	$	1,000.00	$	935.80	$	1,017.06	$	3.77	*	$	3.93	*		0.93	%
Global Multi-Asset Income Portfolio Class A		1,000.00		933.60		1,015.64		5.15	*		5.37	*		1.27
Global Multi-Asset Income Portfolio Class C		1,000.00		931.40		1,011.64		7.68	**		8.00	**		2.03
Global Multi-Asset Income Portfolio Class IS		1,000.00		935.90		1,017.31		3.53	*		3.68	*		0.87

* Expenses are calculated using each Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 153/365 (to reflect the actual days in the period).

** Expenses are calculated using the Portfolio Class' annualized net expense ratio (as disclosed), multiplied by the average account value over the period, and multiplied by 143/365 (to reflect the actual days in the period).

*** Annualized.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited)

Global Multi-Asset Income Portfolio

The Global Multi-Asset Income Portfolio's investment objective is to maximize current income and to seek capital appreciation over time.

Performance

For the period since the Portfolio's inception on April 30, 2015, through September 30, 2015, the Portfolio's Class I shares had a total return based on net asset value and reinvestment of distributions per share of –6.42%, net of fees. The Portfolio's Class I shares underperformed against the Portfolio's benchmark, Barclays Global Aggregate Bond Index, which returned –1.38%.

Factors Affecting Performance⁽ⁱ⁾

• In the five months ended September 30, 2015, global equities underperformed bonds and outperformed commodities, with the MSCI All Country World Index down –11.7%, the Barclays Global Aggregate Bond Index down –1.4%, and the S&P GSCI Index, a broad index of commodity prices, falling –21.0%.⁽ⁱⁱ⁾ (Except where noted, equity market returns are represented by the MSCI regional or country index and are calculated in U.S. dollars.)

• Within equities, the U.S. held up on a relative basis, with the S&P 500 Index falling –7.1% for the period, as the labor market continued to show signs of improvement while monetary policy remained easy. European equities underperformed global markets, losing –13.2% as disappointing economic data, a debt crisis in Greece and fears of a global growth slowdown led to a 'risk off' sentiment. Europe also tends to have a higher beta in a market sell-off. Emerging markets lost –24.4% on fears of a hard landing in China and its impact on the broader region. China sold off by –31.4% as the economy remained weak despite aggressive policy easing. Falling commodity prices, tensions surrounding Russia and a recession in Brazil also damaged sentiment for emerging market assets. Japanese equities were down –12.9%, as Japan appeared to enter a technical recession during the third quarter of 2015, and S&P downgraded its sovereign credit rating, citing disappointment with the effectiveness of the economic stimulus plan ('Abenomics').

• Within bonds, the yield curve flattened slightly as the normalization of U.S. monetary policy remained imminent, while the pace and moderation

of rate hikes were re-priced to be more subdued. The U.S. 2-year Treasury yield rose 6 basis points to 0.63%, and the U.S. 10-year Treasury yield rose 1 basis point to 2.04%. U.S. investment grade spreads rose 41 basis points to 1.7%, and high yield spreads rose 191 basis points to 6.3%, as weakness in China and the global energy sector led a flight to safe haven assets. Emerging market bond spreads widened by 98 basis points. In Europe, German bund yields rebounded from the all-time lows reached in April, with the German 10-year bund yield rising 22 basis points to 0.6%. Greek bond spreads spiked as the country's debt crisis escalated, with the 10-year yield reaching 13.1% in June before falling to 8.2% in September (rising only 219 basis points for the period) after a bailout package was approved.

• Within currencies, the U.S. dollar rallied by 1.9% on a trade-weighted basis. Emerging market currencies lost –11.2% versus the dollar as commodity prices fell sharply, with the greatest losses in the Russian ruble, which fell –21.1%. Both the euro and the yen depreciated by –0.4%.

• Active positions within equities detracted from performance. Overweight positions in eurozone relative to U.S. equities, U.S. energy stocks relative to U.S. equities, and global equities detracted from performance. Although China's market ended the period lower overall, strong price appreciation earlier in the period was disadvantageous to the Portfolio's underweight position in Chinese A-shares, which detracted from performance. An underweight in European consumer staples stocks relative to eurozone equities also detracted. Underweight positions in global machinery stocks relative to global equities and in U.S. equities contributed positively. Writing call options on broad global equity market indices also had a positive impact on performance.

⁽ⁱⁱ⁾ Data sources used in preparation of this commentary include FactSet and Bloomberg LP. Data as of September 30, 2015.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Global Multi-Asset Income Portfolio

• Active positions within fixed income detracted from performance. Underweight positions in U.S. 5-year and 2-year Treasuries and an overweight position in U.S. 10-year Treasury inflation-protected securities (TIPS) relative to U.S. 10-year Treasuries detracted from performance. Overweight positions in Greek bonds and an underweight position in U.S. investment grade credit spreads contributed positively.

• Active positions within high yielding assets contributed positively to performance, due to gains from an underweight position in U.S. high yield credit spreads and an overweight position in European high yield credit spreads.

• Active positions within commodities (implemented via commodity futures) detracted from performance, as gains from an underweight position in copper were offset by losses from an overweight position in Brent oil.

• Active currency positions (implemented via currency forwards and futures) positively impacted performance. Underweight positions in China-sensitive currencies, the Australian dollar, and the Chinese renminbi contributed positively, as did an underweight position in the Swiss franc relative to the euro.

Management Strategies

• We believe the eurozone recovery remains on track. We are overweight in eurozone equities versus the U.S., as eurozone equities are cheaper and likely to benefit from a cyclical earnings recovery versus the U.S.'s more mature profit cycle. We expect the

tailwinds of a weaker euro, lower corporate borrowing rates, and lower oil prices to support eurozone economic growth and drive robust earnings growth. While recent economic data has been marginally softer than our expectations, we believe the eurozone growth trajectory is still strong enough to support our view.

• We are tactically overweight in emerging market equities. In the medium-term, we expect a continued China slowdown to remain a headwind for broad emerging market growth as the excesses of China's investment and credit bubbles inevitably unwind. However, in the near-term, several leading indicators are pointing to the possibility that Chinese growth may stabilize or even accelerate in the coming quarters as a result of massive policy easing. Amidst bearish sentiment, we believe this could be enough to halt or even temporarily reverse the bear market in emerging market and commodity-related assets.

• We are underweight in Japanese equities. Japan is now likely in a technical recession, as domestic activity has been insufficient to offset external drags from slower growth in Asia. We expect the market to increasingly recognize that Abenomics has largely failed, much like S&P has begun to do in downgrading Japan's sovereign credit rating. Japanese equity valuations are not cheap enough to offset deteriorating fundamentals, and sentiment is bullish.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Overview (unaudited) (cont'd)

Global Multi-Asset Income Portfolio

* Minimum Investment

** Commenced operations on April 30, 2015

In accordance with SEC regulations, the Portfolio's performance shown assumes that all recurring fees (including management fees) were deducted and all dividends and distributions were reinvested. The performance of Class A, Class C and Class IS shares will vary from the performance of Class I shares based upon their different inception dates and will be negatively impacted by additional fees assessed to those classes (where applicable).

Performance Compared to the Barclays Global Aggregate Bond Index⁽¹⁾ and the Lipper Flexible Portfolio Funds Index⁽²⁾

Period Ended September 30, 2015
Total Returns⁽³⁾

One
Year

Five
Years

Ten
Years

Since
Inception⁽⁶⁾

Portfolio — Class I Shares
w/o sales charges⁽⁴⁾

—

–6.42

Portfolio — Class A Shares
w/o sales charges⁽⁴⁾

—

–6.64

Portfolio — Class A Shares with
maximum 5.25% sales charges⁽⁴⁾

—

–11.51

Portfolio — Class C Shares
w/o sales charges⁽⁵⁾

—

–6.86

Portfolio — Class C Shares with
maximum 1.00% deferred
sales charges⁽⁵⁾

—

–7.79

Portfolio — Class IS Shares
w/o sales charges⁽⁴⁾

—

–6.41

Barclays Global Aggregate Bond Index

—

–1.38

Lipper Flexible Portfolio Funds Index

—

–7.58

are not annualized. For the most recent month-end performance figures, please visit www.morganstanley.com/im. Investment return and principal value will fluctuate so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Total returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. Performance of share classes will vary due to differences in sales charges and expenses.

⁽¹⁾ The Barclays Global Aggregate Bond Index provides a broadbased measure of the global investment grade fixed-rate debt markets. Total Returns shown in unhedged USD.The Index is unmanaged and its returns do not include any sales charges or fees. Such costs would lower performance. It is not possible to invest directly in an index.

⁽²⁾ The Lipper Flexible Portfolio Funds Index is an equally weighted performance index of the largest qualifying funds (based on net assets) in the Lipper Flexible Portfolio Funds classification. The Index, which is adjusted for capital gains distributions and income dividends, is unmanaged and should not be considered an investment. There are currently 30 funds represented in this Index. As of the date of this report, the Portfolio was in the Lipper Flexible Portfolio Funds classification.

⁽³⁾Total returns for the Portfolio reflect expenses waived and/or reimbursed, if applicable, by the Adviser. Without such waivers and/or reimbursements, total returns would have been lower.

⁽⁴⁾Commenced operations on April 30, 2015.

⁽⁵⁾Commenced operations on May 08, 2015.

⁽⁶⁾For comparative purposes, average annual since inception returns listed for the Indexes refer to the inception date of the Class I of the Portfolio, not the inception of the Indexes.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments

Global Multi-Asset Income Portfolio

	Face Amount (000)		Value (000)
Fixed Income Securities (44.2%)
Agency Fixed Rate Mortgages (5.6%)
United States (5.6%)
Federal Home Loan Mortgage Corporation,
November TBA:
3.00%, 11/1/45 (a)	$	140	$	141
3.50%, 11/1/45 (a)		280		291
4.00%, 11/1/45 (a)		150		159
Federal National Mortgage Association,
Conventional Pools:
4.50%, 10/1/44 - 11/1/44		64		71
October TBA:
3.00%, 10/1/30 (a)		52		54
Government National Mortgage Association,
3.50%, 10/20/45 (a)		70		73
				789
Commercial Mortgage-Backed Securities (1.3%)
United States (1.3%)
GS Mortgage Securities Trust,
4.93%, 8/10/46 (b)(c)		70		67
Wells Fargo Commercial Mortgage Trust,
4.24%, 5/15/48 (b)		51		43
WF-RBS Commercial Mortgage Trust,
4.28%, 5/15/45 (b)(c)		40		37
4.63%, 8/15/46 (b)(c)		35		33
				180
Corporate Bonds (12.2%)
Australia (0.5%)
Australia & New Zealand Banking Group Ltd.,
5.13%, 9/10/19	EUR	50		64
Canada (0.3%)
Barrick Gold Corp.,
4.10%, 5/1/23	$	50		44
France (0.4%)
BNP Paribas SA,
5.00%, 1/15/21		50		56
Italy (0.4%)
UniCredit SpA,
4.25%, 7/29/16	EUR	50		58
Netherlands (0.9%)
ABN Amro Bank N.V.,
3.63%, 10/6/17		50		59
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA,
3.75%, 11/9/20		50		61
				120
United Kingdom (0.8%)
Barclays Bank PLC,
6.00%, 1/23/18		50		62
Diageo Capital PLC,
1.50%, 5/11/17	$	50		50
				112

	Face Amount (000)		Value (000)
United States (8.9%)
Actavis Funding SCS,
3.80%, 3/15/25	$	50	$	48
Apple, Inc.,
4.45%, 5/6/44		50		50
AT&T, Inc.,
6.30%, 1/15/38		50		55
Bank of America Corp.,
5.70%, 1/24/22		50		57
Baxalta, Inc.,
4.00%, 6/23/25 (c)		25		25
Biogen, Inc.,
4.05%, 9/15/25		25		25
Boston Properties LP,
3.85%, 2/1/23		50		51
CCO Safari II LLC,
4.91%, 7/23/25 (c)		25		25
Citigroup, Inc.,
5.50%, 9/13/25		50		55
General Motors Financial Co., Inc.,
4.30%, 7/13/25		30		29
Gilead Sciences, Inc.,
3.65%, 3/1/26		25		25
Goldman Sachs Group, Inc. (The),
6.75%, 10/1/37		50		60
HP Enterprise Co.,
3.60%, 10/15/20		25		25
HSBC USA, Inc.,
3.50%, 6/23/24		100		102
JPMorgan Chase & Co.,
4.63%, 5/10/21		50		54
Kinder Morgan, Inc.,
4.30%, 6/1/25		50		45
McDonald's Corp.,
3.38%, 5/26/25		50		50
Merck & Co., Inc.,
2.80%, 5/18/23		50		50
Monongahela Power Co.,
5.40%, 12/15/43 (c)		50		56
MPLX LP,
4.00%, 2/15/25		50		46
NBC Universal Media LLC,
4.38%, 4/1/21		50		55
Omnicom Group, Inc.,
3.63%, 5/1/22		50		51
Prudential Financial, Inc.,
6.63%, 12/1/37		50		63
Target Corp.,
3.50%, 7/1/24		50		52
UnitedHealth Group, Inc.,
2.88%, 3/15/23		25		25
Verizon Communications, Inc.,
3.50%, 11/1/24		25		25

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Face Amount (000)		Value (000)
United States (cont'd)
Wells Fargo & Co.,
3.45%, 2/13/23	$	50	$	50
				1,254
				1,708
Sovereign (18.5%)
Australia (0.9%)
Australia Government Bond,
3.25%, 4/21/25	AUD	170		126
Belgium (0.4%)
Belgium Government Bond,
0.80%, 6/22/25 (c)	EUR	50		55
Canada (1.7%)
Canadian Government Bond,
3.25%, 6/1/21	CAD	280		236
France (1.4%)
France Government Bond OAT,
3.25%, 5/25/45	EUR	60		88
5.50%, 4/25/29		60		102
				190
Germany (0.9%)
Bundesrepublik Deutschland,
4.25%, 7/4/39		30		54
4.75%, 7/4/34		40		73
				127
Greece (0.2%)
Hellenic Republic Government Bond,
3.00%, 2/24/23 - 2/24/42 (d)		40		33
Hungary (0.4%)
Hungary Government International Bond,
5.75%, 11/22/23	$	50		56
Ireland (0.1%)
Ireland Government Bond,
5.40%, 3/13/25	EUR	10		15
Italy (1.9%)
Italy Buoni Poliennali Del Tesoro,
1.50%, 6/1/25		20		22
1.65%, 3/1/32 (c)		80		82
2.35%, 9/15/24 (c)		130		165
				269
Japan (3.5%)
Japan Government Ten Year Bond,
0.50%, 9/20/24	JPY	36,000		307
Japan Government Thirty Year Bond,
2.00%, 9/20/40		18,600		178
				485
Mexico (0.2%)
Petroleos Mexicanos,
6.38%, 1/23/45	$	25		23

	Face Amount (000)		Value (000)
Netherlands (0.4%)
Netherlands Government Bond,
0.25%, 7/15/25 (c)	EUR	50	$	53
New Zealand (0.8%)
New Zealand Government Bond,
5.50%, 4/15/23	NZD	160		120
Poland (0.4%)
Poland Government Bond,
4.00%, 10/25/23	PLN	210		60
South Africa (0.6%)
South Africa Government Bond,
8.00%, 1/31/30	ZAR	1,300		88
Spain (1.3%)
Spain Government Bond,
4.20%, 1/31/37 (c)	EUR	80		109
Spain Government Inflation Linked Bond,
1.00%, 11/30/30 (c)		40		43
1.80%, 11/30/24 (c)		30		36
				188
United Kingdom (3.4%)
United Kingdom Gilt,
2.75%, 9/7/24	GBP	130		214
4.25%, 6/7/32 - 9/7/39		130		257
				471
				2,595
U.S. Treasury Securities (6.6%)
United States (6.6%)
U.S. Treasury Bond,
3.50%, 2/15/39	$	140		158
U.S. Treasury Inflation Indexed Bond,
0.25%, 1/15/25		262		251
U.S. Treasury Notes,
0.63%, 9/30/17		220		220
2.38%, 6/30/18		290		302
				931
Total Fixed Income Securities (Cost $6,310)				6,203
	Shares
Common Stocks (37.1%)
Australia (1.6%)
Ansell Ltd.		408		5
APA Group		600		4
ARB Corp., Ltd.		1,131		11
AusNet Services		921		1
Automotive Holdings Group Ltd.		3,150		9
BlueScope Steel Ltd.		2,800		7
BWP Trust REIT		4,527		10
Challenger Ltd.		2,164		11
Downer EDI Ltd.		2,531		6
DUET Group		6,148		9
Evolution Mining Ltd.		1,005		1
Goodman Group REIT		846		3

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Australia (cont'd)
GPT Group REIT		1,161	$	4
GrainCorp Ltd.		1,245		8
Invocare Ltd.		866		7
IOOF Holdings Ltd.		3,233		20
JB Hi-Fi Ltd.		601		8
Macquarie Atlas Roads Group		228		1
Newcrest Mining Ltd. (e)		463		4
Northern Star Resources Ltd.		627		1
Oil Search Ltd.		1,344		7
Perpetual Ltd.		563		16
Primary Health Care Ltd.		1,955		5
Scentre Group REIT		1,969		5
Shopping Centres Australasia Property Group REIT		7,252		10
Sims Metal Management Ltd.		934		6
Spark Infrastructure Group		5,806		8
Stockland REIT		1,304		3
Sydney Airport		595		2
Transurban Group		1,054		7
Veda Group Ltd.		8,420		16
Westfield Corp. REIT		694		5
				220
Austria (0.1%)
Erste Group Bank AG (e)		391		11
Belgium (0.7%)
Anheuser-Busch InBev N.V.		521		55
Cofinimmo SA REIT		43		5
Elia System Operator SA		19		1
KBC Groep N.V.		707		45
Viohalco SA (e)		25		—	@
				106
Brazil (0.0%)
Cia de Saneamento Basico do Estado de Sao Paulo ADR		200		1
Canada (1.6%)
Agnico-Eagle Mines Ltd.		150		4
Alimentation Couche-Tard, Inc.		100		5
ARC Resources Ltd.		100		1
Bank of Montreal		100		5
Bank of Nova Scotia		200		9
Barrick Gold Corp.		600		4
Barrick Gold Corp.		200		1
Blackberry Ltd. (e)		100		1
Brookfield Asset Management, Inc., Class A		200		6
Cameco Corp.		100		1
Canadian Imperial Bank of Commerce		100		7
Canadian National Railway Co.		100		6
Canadian Natural Resources Ltd.		200		4
Cenovus Energy, Inc.		100		1
Centerra Gold, Inc.		300		2
Cominar Real Estate Investment Trust REIT		400		5
Crescent Point Energy Corp.		100		1
Detour Gold Corp. (e)		150		2

	Shares		Value (000)
Eldorado Gold Corp.		600	$	2
Enbridge, Inc.		600		22
Encana Corp.		200		1
First Quantum Minerals Ltd.		100		—	@
Fortis, Inc.		300		9
Franco-Nevada Corp.		150		7
Goldcorp, Inc.		300		4
Goldcorp, Inc.		200		2
H&R Real Estate Investment Trust REIT		200		3
Husky Energy, Inc.		100		2
Imperial Oil Ltd.		100		3
Inter Pipeline Ltd.		300		6
Keyera Corp.		100		3
Kinross Gold Corp. (e)		1,190		2
Lululemon Athletica, Inc. (e)		100		5
Magna International, Inc.		100		5
Manulife Financial Corp.		300		5
New Gold, Inc. (e)		600		1
Osisko Gold Royalties Ltd.		150		2
Pan American Silver Corp.		150		1
Pembina Pipeline Corp.		300		7
Potash Corp. of Saskatchewan, Inc.		100		2
Power Corp. of Canada		100		2
RioCan REIT		200		4
Rogers Communications, Inc., Class B		100		3
Royal Bank of Canada		200		11
Shaw Communications, Inc., Class B		100		2
Silver Wheaton Corp.		300		4
Silver Wheaton Corp.		100		1
Sun Life Financial, Inc.		100		3
Suncor Energy, Inc.		200		5
Teck Resources Ltd., Class B		100		—	@
Thomson Reuters Corp.		100		4
Toronto-Dominion Bank (The)		300		12
TransCanada Corp.		500		16
Veresen, Inc.		200		2
Yamana Gold, Inc.		740		1
				229
China (0.1%)
Beijing Enterprises Holdings Ltd. (f)		500		3
China Gas Holdings Ltd. (f)		2,000		3
Hanergy Thin Film Power Group Ltd. (e)(f)(g)(h)		2,000		—	@
Hutchison Port Holdings Trust (Units) (i)		3,100		2
Zijin Mining Group Co., Ltd. H Shares (f)		6,000		1
				9
Denmark (0.0%)
Danske Bank A/S		14		—	@
Finland (0.4%)
Kone Oyj, Class B		308		12
Nokia Oyj		2,622		18
Sampo Oyj, Class A		419		20
UPM-Kymmene Oyj		591		9
				59

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
France (6.8%)
Accor SA		790	$	37
Aeroports de Paris (ADP)		18		2
Air Liquide SA		268		32
Airbus Group SE		388		23
Alcatel-Lucent (e)		2,245		8
Atos SE		220		17
AXA SA		1,184		29
BNP Paribas SA		703		41
Bouygues SA		674		24
Cap Gemini SA		557		50
Carrefour SA		459		14
Cie de Saint-Gobain		1,117		49
Cie Generale des Etablissements Michelin		152		14
Credit Agricole SA		3,394		39
Danone SA		428		27
Engie		993		16
Essilor International SA		169		21
Eutelsat Communications SA		91		3
Gecina SA REIT		30		4
Groupe Eurotunnel SE		832		11
Kering		62		10
Klepierre REIT		77		3
L'Oreal SA		157		27
Legrand SA		285		15
LVMH Moet Hennessy Louis Vuitton SE		174		30
Orange SA		1,290		19
Pernod Ricard SA		167		17
Publicis Groupe SA		191		13
Renault SA		144		10
Rexel SA		531		7
Safran SA		280		21
Sanofi		721		69
Schneider Electric SE		373		21
SES SA		548		17
Societe Generale SA		513		23
Sodexo SA		162		13
Total SA		1,317		59
Unibail-Rodamco SE REIT		107		28
Valeo SA		85		11
Vinci SA		901		57
Vivendi SA		876		21
				952
Germany (5.0%)
Adidas AG		173		14
Allianz SE (Registered)		278		44
BASF SE		563		43
Bayer AG (Registered)		501		64
Bayerische Motoren Werke AG		203		18
Commerzbank AG (e)		2,202		23
Continental AG		81		17
Daimler AG (Registered)		560		41

	Shares		Value (000)
Deutsche Bank AG (Registered)		952	$	26
Deutsche Boerse AG		586		50
Deutsche Euroshop AG		74		3
Deutsche Post AG (Registered)		689		19
Deutsche Telekom AG (Registered)		1,949		35
Deutsche Wohnen AG		133		3
E.ON SE		1,387		12
Fraport AG Frankfurt Airport Services Worldwide		21		1
Fresenius Medical Care AG & Co., KGaA		160		12
Fresenius SE & Co., KGaA		247		17
Hamburger Hafen und Logistik AG		13		—	@
HeidelbergCement AG		170		12
Henkel AG & Co., KGaA		105		9
Henkel AG & Co., KGaA (Preference)		136		14
Infineon Technologies AG		1,077		12
Johnson Electric Holdings Ltd. (f)		1,500		5
Linde AG		125		20
Merck KGaA		149		13
Muenchener Rueckversicherungs AG (Registered)		129		24
Porsche Automobil Holding SE (Preference)		146		6
ProSiebenSat.1 Media SE (Registered)		606		30
RWE AG		416		5
SAP SE		563		36
Siemens AG (Registered)		491		44
ThyssenKrupp AG		497		9
Volkswagen AG (Preference)		98		11
Vonovia SE		407		13
				705
Greece (0.1%)
Aegean Airlines SA		27		—	@
Alpha Bank AE (e)		1,946		—	@
Athens Water Supply & Sewage Co., SA (The)		18		—	@
Attica Bank SA (e)		1,136		—	@
Ellaktor SA (e)		85		—	@
Eurobank Ergasias SA (e)		4,737		—	@
FF Group (e)		29		1
Fourlis Holdings SA (e)		36		—	@
Frigoglass SAIC (e)		12		—	@
GEK Terna Holding Real Estate Construction SA (e)		73		—	@
Grivalia Properties REIC AE REIT		24		—	@
Hellenic Exchanges - Athens Stock Exchange SA		117		1
Hellenic Petroleum SA (e)		54		—	@
Hellenic Telecommunications Organization SA		143		1
Intralot SA-Integrated Lottery Systems & Services (e)		31		—	@
JUMBO SA		118		1
Lamda Development SA (e)		8		—	@
Marfin Investment Group Holdings SA (e)		491		—	@
Metka SA		17		—	@
Motor Oil Hellas Corinth Refineries SA (e)		35		1
Mytilineos Holdings SA (e)		96		1
National Bank of Greece SA (e)		871		1
OPAP SA		123		1

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Greece (cont'd)
Piraeus Bank SA (e)		1,072	$	—	@
Piraeus Port Authority SA		3		—	@
Public Power Corp. SA		203		1
Sarantis SA		4		—	@
Terna Energy SA (e)		22		—	@
Thrace Plastics Co., SA		15		—	@
Titan Cement Co., SA		20		1
				10
Hong Kong (0.5%)
Beijing Enterprises Water Group Ltd. (e)		2,000		1
Champion REIT		9,000		5
Great Eagle Holdings Ltd.		2,017		6
Hang Lung Group Ltd.		1,000		3
Hang Lung Properties Ltd.		1,000		2
Hong Kong & China Gas Co., Ltd.		4,400		8
Hongkong & Shanghai Hotels Ltd. (The)		3,032		3
Hongkong Land Holdings Ltd.		400		3
Hopewell Holdings Ltd.		1,500		5
HSBC Holdings PLC		1,208		9
Kowloon Development Co., Ltd. REIT		6,000		7
Link REIT (The)		1,000		6
New World Development Co., Ltd.		4,000		4
Stella International Holdings Ltd.		1,500		4
				66
Ireland (0.5%)
Bank of Ireland (e)		20,873		8
Bank of Ireland (e)		33,548		13
CRH PLC		1,502		40
Kerry Group PLC, Class A		107		8
				69
Italy (2.5%)
Assicurazioni Generali SpA		903		17
Atlantia SpA		1,923		54
Banca Monte dei Paschi di Siena SpA (e)		123		—	@
Banco Popolare SC (e)		347		5
Enel SpA		4,766		21
Eni SpA		1,766		28
Intesa Sanpaolo SpA		25,434		90
Luxottica Group SpA		184		13
Mediobanca SpA		2,888		28
Snam SpA		3,511		18
Societa Iniziative Autostradali e Servizi SpA		38		—	@
Telecom Italia SpA (e)		9,037		11
Terna Rete Elettrica Nazionale SpA		780		4
UniCredit SpA		9,587		60
Unione di Banche Italiane SCPA		952		7
				356
Japan (0.2%)
Japan Real Estate Investment Corp. REIT		1		4
Japan Retail Fund Investment Corp. REIT		2		4
Mizuho Financial Group, Inc.		400		1

	Shares		Value (000)
Nippon Building Fund, Inc. REIT		1	$	5
Resona Holdings, Inc.		100		1
Tokyo Gas Co., Ltd.		1,000		5
United Urban Investment Corp. REIT		2		2
				22
Mexico (0.0%)
Empresas ICA SAB de CV ADR (e)		100		—	@
Netherlands (1.8%)
Aegon N.V.		1,605		9
Akzo Nobel N.V.		245		16
ArcelorMittal		976		5
ASML Holding N.V.		211		19
Fiat Chrysler Automobiles N.V. (e)		670		9
Heineken N.V.		204		17
ING Groep N.V. CVA		2,480		35
Koninklijke Ahold N.V.		895		17
Koninklijke KPN N.V.		3,064		11
Koninklijke Philips N.V.		768		18
Koninklijke Vopak N.V.		39		2
Randstad Holding N.V.		440		26
RELX N.V.		1,056		17
Unilever N.V. CVA		1,001		40
Wolters Kluwer N.V.		440		14
				255
New Zealand (0.0%)
Auckland International Airport Ltd.		523		2
Nicaragua (0.0%)
B2Gold Corp. (e)		900		1
Norway (0.0%)
DNB ASA		43		1
Peru (0.0%)
Cia de Minas Buenaventura SA ADR		300		2
Portugal (0.1%)
Banco Comercial Portugues SA (e)		51,912		2
EDP - Energias de Portugal SA		3,523		13
				15
Singapore (0.1%)
CapitaLand Ltd.		1,500		3
City Developments Ltd.		500		3
Global Logistic Properties Ltd.		1,700		2
				8
South Africa (0.1%)
AngloGold Ashanti Ltd. ADR (e)		300		3
Gold Fields Ltd. ADR		900		2
SABMiller PLC		142		8
				13
Spain (2.5%)
Abertis Infraestructuras SA		217		3
Amadeus IT Holding SA, Class A		415		18
Banco Bilbao Vizcaya Argentaria SA		4,643		39
Banco de Sabadell SA		9,081		17

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
Spain (cont'd)
Banco Popular Espanol SA		2,360	$	9
Banco Santander SA		8,873		47
Bankia SA		12,699		16
Bankinter SA		1,019		8
CaixaBank SA		9,462		37
Enagas SA		120		3
Ferrovial SA		234		6
Iberdrola SA		4,596		31
Industria de Diseno Textil SA		730		24
International Consolidated Airlines Group SA (e)		3,518		31
Obrascon Huarte Lain SA		21		—	@
Red Electrica Corp., SA		62		5
Repsol SA		1,143		13
Telefonica SA		3,008		37
				344
Sweden (0.0%)
Castellum AB		206		3
Nordea Bank AB		61		1
Skandinaviska Enskilda Banken AB, Class A		67		1
Svenska Handelsbanken AB, Class A		29		—	@
Swedbank AB, Class A		18		—	@
				5
Switzerland (0.4%)
Adecco SA (Registered) (e)		525		38
Coca-Cola HBC AG (e)		28		1
Flughafen Zuerich AG (Registered)		2		1
LafargeHolcim Ltd. (Registered) (e)		155		8
Swiss Prime Site AG (Registered) (e)		38		3
				51
United Kingdom (2.5%)
ARM Holdings PLC		304		4
AstraZeneca PLC		166		11
Aviva PLC		707		5
BAE Systems PLC		932		6
Barclays PLC		2,683		10
BG Group PLC		450		7
BHP Billiton PLC		312		5
BP PLC		2,445		12
British American Tobacco PLC		248		14
British Land Co., PLC REIT		513		7
BT Group PLC		1,276		8
Capital & Counties Properties PLC		569		4
Compass Group PLC		488		8
Diageo PLC		351		10
GlaxoSmithKline PLC		633		12
Glencore PLC (e)		1,632		2
Hammerson PLC REIT		564		5
Henderson Group PLC		571		2
HSBC Holdings PLC		2,709		21
Imperial Tobacco Group PLC		166		9
Land Securities Group PLC REIT		369		7

	Shares		Value (000)
Liberty Global PLC LiLAC Series C (e)		5	$	—	@
Lloyds Banking Group PLC		9,000		10
National Grid PLC		2,949		41
Next PLC		47		5
Pennon Group PLC		221		3
Prudential PLC		462		10
Reckitt Benckiser Group PLC		103		9
Rio Tinto PLC		186		6
Rolls-Royce Holdings PLC (e)		304		3
Royal Bank of Scotland Group PLC (e)		144		1
Royal Dutch Shell PLC, Class A		757		18
Severn Trent PLC		134		4
Shire PLC		83		6
Taylor Wimpey PLC		1,417		4
Tesco PLC		1,173		3
Unilever PLC		218		9
United Utilities Group PLC		383		5
Verizon Communications, Inc.		400		17
Vodafone Group PLC		3,442		11
Wolseley PLC		107		6
WPP PLC		379		8
				348
United States (9.5%)
Abbott Laboratories		100		4
AbbVie, Inc.		200		11
AGL Resources, Inc.		100		6
Alamos Gold, Inc., Class A (e)		300		1
Alcoa, Inc.		100		1
Alexandria Real Estate Equities, Inc. REIT		100		8
Altria Group, Inc.		200		11
American Campus Communities, Inc. REIT		100		4
American International Group, Inc.		100		6
American Tower Corp. REIT		200		18
American Water Works Co., Inc.		100		5
Annaly Capital Management, Inc. REIT		100		1
Apple, Inc.		700		77
Applied Materials, Inc.		100		1
Aqua America, Inc.		100		3
AT&T, Inc.		500		16
Atmos Energy Corp.		100		6
Bank of America Corp.		1,700		26
Bank of New York Mellon Corp. (The)		100		4
Bed Bath & Beyond, Inc. (e)		100		6
Berkshire Hathaway, Inc., Class B (e)		100		13
Best Buy Co., Inc.		100		4
Bloomin' Brands, Inc.		100		2
Boston Properties, Inc. REIT		100		12
Boston Scientific Corp. (e)		100		2
Bristol-Myers Squibb Co.		200		12
Care Capital Properties, Inc. REIT		25		1
CenterPoint Energy, Inc.		200		4
Charles Schwab Corp. (The)		100		3

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
United States (cont'd)
Chemours Co. (The)		20	$	—	@
Cheniere Energy, Inc. (e)		100		5
Chevron Corp.		200		16
Cisco Systems, Inc.		700		18
Citigroup, Inc.		400		20
Coca-Cola Co.		600		24
Colgate-Palmolive Co.		100		6
Columbia Pipeline Group, Inc.		200		4
Comcast Corp., Class A		200		11
ConocoPhillips		100		5
Consolidated Edison, Inc.		200		13
Corning, Inc.		100		2
Crown Castle International Corp. REIT		200		16
CSX Corp.		100		3
CVS Health Corp.		100		10
Danaher Corp.		17		1
DDR Corp. REIT		300		5
Digital Realty Trust, Inc. REIT		100		6
Dollar General Corp.		100		7
Dollar Tree, Inc. (e)		24		2
Dominion Resources, Inc.		100		7
Duke Realty Corp. REIT		200		4
eBay, Inc. (e)		100		2
EMC Corp.		200		5
Equity Lifestyle Properties, Inc. REIT		100		6
Equity Residential REIT		100		7
Eversource Energy		200		10
Express Scripts Holding Co. (e)		100		8
Extra Space Storage, Inc. REIT		100		8
Exxon Mobil Corp.		400		30
Facebook, Inc., Class A (e)		200		18
Ford Motor Co.		300		4
Freeport-McMoRan, Inc.		100		1
Gap, Inc. (The)		100		3
General Electric Co.		1,300		33
General Growth Properties, Inc. REIT		300		8
General Motors Co.		100		3
Gilead Sciences, Inc.		100		10
H&R Block, Inc.		100		4
Hanesbrands, Inc.		100		3
HCP, Inc. REIT		200		7
Hecla Mining Co.		450		1
Hewlett-Packard Co.		200		5
Highwoods Properties, Inc. REIT		100		4
Home Depot, Inc.		100		11
Host Hotels & Resorts, Inc. REIT		300		5
Huntington Bancshares, Inc.		100		1
Intel Corp.		600		18
ITC Holdings Corp.		100		3
Johnson & Johnson		300		28
JPMorgan Chase & Co.		400		24
Kilroy Realty Corp. REIT		100		6

	Shares		Value (000)
Kimco Realty Corp. REIT		200	$	5
Kinder Morgan, Inc.		1,100		30
Kraft Heinz Co. (The)		100		7
L Brands, Inc.		100		9
Liberty Property Trust REIT		100		3
Macerich Co. (The) REIT		100		8
Macy's, Inc.		100		5
Marriott International, Inc., Class A		100		7
Medtronic PLC		100		7
Merck & Co., Inc.		300		15
MetLife, Inc.		100		5
Micron Technology, Inc. (e)		100		1
Microsoft Corp.		1,100		49
Mid-America Apartment Communities, Inc. REIT		100		8
Mondelez International, Inc., Class A		200		8
National Health Investors, Inc. REIT		100		6
National Retail Properties, Inc. REIT		100		4
NetScout Systems, Inc. (e)		199		7
Newmont Mining Corp.		300		5
NiSource, Inc.		200		4
ONEOK, Inc.		100		3
Oracle Corp.		500		18
PayPal Holdings, Inc. (e)		100		3
Pepco Holdings, Inc.		100		2
PepsiCo, Inc.		100		9
Pfizer, Inc.		900		28
PG&E Corp.		300		16
Philip Morris International, Inc.		100		8
Procter & Gamble Co. (The)		300		21
ProLogis, Inc. REIT		200		8
Public Storage REIT		100		21
QUALCOMM, Inc.		200		11
Realty Income Corp. REIT		100		5
Regency Centers Corp. REIT		100		6
Regions Financial Corp.		100		1
Ross Stores, Inc.		100		5
SBA Communications Corp., Class A (e)		100		10
Schlumberger Ltd.		100		7
Sempra Energy		100		10
Sibanye Gold Ltd. ADR		300		1
Simon Property Group, Inc. REIT		100		18
Sirius XM Holdings, Inc. (e)		200		1
Spectra Energy Corp.		500		13
Starbucks Corp.		100		6
Tahoe Resources, Inc.		300		2
Target Corp.		300		24
Texas Instruments, Inc.		100		5
TJX Cos., Inc. (The)		200		14
Twenty-First Century Fox, Inc., Class A		100		3
UDR, Inc. REIT		100		3
US Bancorp		200		8
Ventas, Inc. REIT		100		6
VEREIT, Inc. REIT		400		3

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

	Shares		Value (000)
United States (cont'd)
Visa, Inc., Class A		200	$	14
Vornado Realty Trust REIT		100		9
Wal-Mart Stores, Inc.		200		13
Walt Disney Co. (The)		200		20
Wells Fargo & Co.		600		31
Welltower, Inc.		100		7
Williams Cos., Inc. (The)		400		15
WP Carey, Inc. REIT		100		6
Xerox Corp.		100		1
Yahoo!, Inc. (e)		100		3
				1,340
Total Common Stocks (Cost $5,821)				5,200
Investment Companies (7.0%)
United States (7.0%)
Morgan Stanley Institutional Fund Trust — High Yield Portfolio (See Note G)		57,692		565
Morgan Stanley Institutional Fund, Inc. — Emerging Markets Fixed Income Opportunities Portfolio (See Note G)		47,690		417
Total Investment Companies (Cost $1,054)				982
Short-Term Investments (14.7%)
Investment Company (12.4%)
Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio — Institutional Class (See Note G) (Cost $1,742)		1,741,588		1,742
	Face Amount (000)
U.S. Treasury Security (2.3%)
U.S. Treasury Bill,
0.26%, 3/10/16 (j)(k) (Cost $318)	$	318		318
Total Short-Term Investments (Cost $2,060)				2,060
Total Investments (103.0%) (Cost $15,245) (l)(m)(n)				14,445
Liabilities in Excess of Other Assets (-3.0%)				(414	)
Net Assets (100.0%)			$	14,031

(a) Security is subject to delayed delivery.

(b) Variable/Floating Rate Security — Interest rate changes on these instruments are based on changes in a designated base rate. The rates shown are those in effect on September 30, 2015.

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

(d) Multi-step — Coupon rate changes in predetermined increments to maturity. Rate disclosed is as of September 30, 2015. Maturity date disclosed is the ultimate maturity date.

(e) Non-income producing security.

(f) Security trades on the Hong Kong exchange.

(g) At September 30, 2015, the Portfolio held a fair valued security valued at less than $500, representing less than 0.05% of net assets. This security has been fair valued as determined in good faith under procedures established by and under the general supervision of the Fund's Trustees.

(h) Security has been deemed illiquid at September 30, 2015.

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

(j) Rate shown is the yield to maturity at September 30, 2015.

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

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

(m) The approximate fair value and percentage of net assets, $3,605,000 and 25.7%, respectively, represent the securities that have been fair valued under the fair valuation policy for international investments as described in Note A-1 within the Notes to the Financial Statements.

(n) At September 30, 2015, the aggregate cost for Federal income tax purposes is approximately $15,293,000. The aggregate gross unrealized appreciation is approximately $173,000 and the aggregate gross unrealized depreciation is approximately $1,021,000 resulting in net unrealized depreciation of approximately $848,000.

ADR American Depositary Receipt.

CVA Certificaten Van Aandelen.

OAT Obligations Assimilables du Trésor (French Treasury Obligation).

REIT Real Estate Investment Trust.

TBA To Be Announced.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Call Options Written:

The Portfolio had the following call options written open at September 30, 2015:

Number of Contracts	Description	Strike Price		Expiration Date		Value (000)
EUR 110	Euro Stoxx 50 Index (Premiums received $10)	$	3,175.00		Oct-15	$	(5	)
JPY 3,000	NIKKEI Index (Premiums received $10)		18,375.00		Oct-15		(2	)
USD 120	iShares MSCI Emerging Markets Index Fund (Premiums received $10)		34.50		Oct-15		(2	)
USD 3	S&P 500 Index (Premiums received $11)		1,975.00		Oct-15		(3	)
						$	(12	)

Foreign Currency Forward Exchange Contracts:

The Portfolio had the following foreign currency forward exchange contracts open at September 30, 2015:

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
Citibank NA	NOK	208	$	24	10/5/15	USD	25	$	25	$	1
Deutsche Bank AG	EUR	47		52	10/5/15	USD	52		52		(—	@)
Deutsche Bank AG	MXN	1,299		77	10/5/15	USD	77		77		(—	@)
Deutsche Bank AG	PLN	60		16	10/5/15	USD	16		16		—	@
Deutsche Bank AG	USD	54		54	10/5/15	CHF	52		53		(1	)
Deutsche Bank AG	USD	518		518	10/5/15	EUR	460		514		(4	)
Deutsche Bank AG	USD	58		58	10/5/15	GBP	38		57		(1	)
HSBC Bank PLC	NZD	357		228	10/5/15	USD	226		226		(2	)
JPMorgan Chase Bank NA	CAD	65		49	10/5/15	USD	49		49		(—	@)
JPMorgan Chase Bank NA	GBP	4		6	10/5/15	EUR	5		6		—	@
JPMorgan Chase Bank NA	KRW	93,150		79	10/5/15	USD	79		79		(—	@)
JPMorgan Chase Bank NA	SEK	24		3	10/5/15	USD	3		3		(—	@)
JPMorgan Chase Bank NA	USD	5		5	10/5/15	EUR	4		5		—	@
JPMorgan Chase Bank NA	USD	2		2	10/5/15	JPY	276		2		(—	@)
JPMorgan Chase Bank NA	USD	35		35	10/5/15	NOK	296		35		—	@
UBS AG	CAD	116		87	10/5/15	USD	88		88		1
UBS AG	CHF	52		53	10/5/15	USD	53		53		(—	@)
UBS AG	USD	1		1	10/5/15	EUR	1		1		(—	@)
UBS AG	USD	5		5	10/5/15	GBP	3		5		(—	@)
UBS AG	USD	607		607	10/5/15	JPY	72,687		606		(1	)
UBS AG	USD	79		79	10/5/15	KRW	93,150		79		(—	@)
UBS AG	USD	77		77	10/5/15	MXN	1,303		77		—	@
UBS AG	USD	90		90	10/5/15	NZD	143		91		1
UBS AG	USD	11		11	10/5/15	SGD	15		11		(—	@)
UBS AG	USD	17		17	10/5/15	THB	625		17		(—	@)
UBS AG	ZAR	1,041		75	10/5/15	USD	77		77		2
JPMorgan Chase Bank NA	AUD	125		88	10/6/15	USD	88		88		—	@
JPMorgan Chase Bank NA	USD	45		45	10/6/15	AUD	64		45		(—	@)
Bank of America NA	EUR	89		100	10/15/15	USD	101		101		1
Bank of America NA	EUR	56		63	10/15/15	USD	63		63		—	@
Bank of America NA	JPY	2,146		18	10/15/15	USD	18		18		—	@
Bank of America NA	USD	70		70	10/15/15	GBP	46		69		(1	)
Bank of America NA	USD	109		109	10/15/15	JPY	12,944		108		(1	)
Bank of Montreal	AUD	163		115	10/15/15	USD	116		116		1
Bank of Montreal	NZD	283		181	10/15/15	USD	178		178		(3	)
Bank of Montreal	USD	102		102	10/15/15	AUD	145		102		—	@
Bank of Montreal	USD	41		41	10/15/15	EUR	36		40		(1	)
Bank of Montreal	USD	101		101	10/15/15	NZD	159		102		1
Bank of Montreal	USD	10		10	10/15/15	TRY	32		10		—	@
Bank of New York Mellon	CHF	121		124	10/15/15	USD	124		124		—	@
Bank of New York Mellon	USD	144		144	10/15/15	SEK	1,190		143		(1	)
Barclays Bank PLC	AUD	54		38	10/15/15	USD	38		38		—	@

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
Barclays Bank PLC	BRL	18	$	5	10/15/15	USD	5	$	5	$	—	@
Barclays Bank PLC	USD	16		16	10/15/15	BRL	64		16		—	@
Barclays Bank PLC	USD	62		62	10/15/15	GBP	41		61		(1	)
Citibank NA	EUR	128		143	10/15/15	USD	144		144		1
Citibank NA	EUR	38		43	10/15/15	USD	43		43		—	@
Citibank NA	GBP	65		98	10/15/15	USD	101		101		3
Citibank NA	GBP	17		26	10/15/15	USD	26		26		—	@
Citibank NA	THB	5,167		142	10/15/15	USD	143		143		1
Citibank NA	USD	24		24	10/15/15	KRW	28,511		24		—	@
Citibank NA	USD	13		13	10/15/15	MYR	55		13		(—	@)
Citibank NA	USD	8		8	10/15/15	RUB	578		8		—	@
Citibank NA	USD	15		15	10/15/15	RUB	1,018		15		—	@
Citibank NA	USD	76		76	10/15/15	THB	2,724		75		(1	)
Citibank NA	USD	25		25	10/15/15	THB	908		25		(—	@)
Commonwealth Bank of Australia	AUD	439		308	10/15/15	USD	311		311		3
Commonwealth Bank of Australia	USD	46		46	10/15/15	AUD	64		45		(1	)
Commonwealth Bank of Australia	USD	162		162	10/15/15	AUD	226		159		(3	)
Credit Suisse International	NZD	158		101	10/15/15	USD	99		99		(2	)
Credit Suisse International	USD	217		217	10/15/15	EUR	190		212		(5	)
Credit Suisse International	USD	103		103	10/15/15	NZD	162		104		1
Deutsche Bank AG	CHF	241		248	10/15/15	USD	248		248		—	@
Deutsche Bank AG	USD	63		63	10/15/15	HKD	491		63		—	@
Deutsche Bank AG	USD	25		25	10/15/15	JPY	3,061		25		—	@
Deutsche Bank AG	USD	288		288	10/15/15	SEK	2,383		285		(3	)
Goldman Sachs International	GBP	41		62	10/15/15	USD	62		62		—	@
Goldman Sachs International	USD	2		2	10/15/15	GBP	1		2		(—	@)
Goldman Sachs International	USD	108		108	10/15/15	GBP	69		104		(4	)
JPMorgan Chase Bank NA	EUR	1,252		1,400	10/15/15	USD	1,413		1,413		13
JPMorgan Chase Bank NA	GBP	12		18	10/15/15	USD	18		18		—	@
JPMorgan Chase Bank NA	INR	2,088		31	10/15/15	USD	31		31		(—	@)
JPMorgan Chase Bank NA	INR	1,183		18	10/15/15	USD	18		18		—	@
JPMorgan Chase Bank NA	KRW	237,652		200	10/15/15	USD	200		200		(—	@)
JPMorgan Chase Bank NA	PLN	136		36	10/15/15	USD	37		37		1
JPMorgan Chase Bank NA	USD	58		58	10/15/15	CAD	78		58		(—	@)
JPMorgan Chase Bank NA	USD	41		41	10/15/15	DKK	274		41		(—	@)
JPMorgan Chase Bank NA	USD	29		29	10/15/15	EUR	26		29		(—	@)
JPMorgan Chase Bank NA	USD	103		103	10/15/15	GBP	67		102		(1	)
JPMorgan Chase Bank NA	USD	46		46	10/15/15	INR	3,089		47		1
JPMorgan Chase Bank NA	USD	262		262	10/15/15	JPY	31,528		262		—	@
JPMorgan Chase Bank NA	USD	47		47	10/15/15	KRW	54,844		47		(—	@)
JPMorgan Chase Bank NA	USD	55		55	10/15/15	KRW	64,382		54		(1	)
JPMorgan Chase Bank NA	USD	50		50	10/15/15	KRW	59,791		50		—	@
JPMorgan Chase Bank NA	USD	26		26	10/15/15	MXN	430		26		(—	@)
JPMorgan Chase Bank NA	USD	76		76	10/15/15	SEK	627		75		(1	)
JPMorgan Chase Bank NA	USD	34		34	10/15/15	SGD	48		34		(—	@)
State Street Bank and Trust Co.	CHF	146		150	10/15/15	USD	151		151		1
State Street Bank and Trust Co.	CHF	61		63	10/15/15	USD	64		64		1
State Street Bank and Trust Co.	CHF	29		30	10/15/15	USD	30		30		—	@
State Street Bank and Trust Co.	THB	1,903		53	10/15/15	USD	53		53		—	@
State Street Bank and Trust Co.	THB	597		16	10/15/15	USD	16		16		(—	@)
State Street Bank and Trust Co.	USD	13		13	10/15/15	CHF	13		13		—	@
State Street Bank and Trust Co.	USD	151		151	10/15/15	SEK	1,242		149		(2	)
State Street Bank and Trust Co.	USD	64		64	10/15/15	SEK	520		63		(1	)
State Street Bank and Trust Co.	USD	50		50	10/15/15	THB	1,816		50		(—	@)
UBS AG	CHF	7		7	10/15/15	USD	7		7		—	@
UBS AG	CHF	20		20	10/15/15	USD	20		20		—	@
UBS AG	CHF	26		27	10/15/15	USD	27		27		—	@
UBS AG	EUR	58		64	10/15/15	USD	65		65		1
UBS AG	EUR	113		126	10/15/15	USD	128		128		2

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Foreign Currency Forward Exchange Contracts: (cont'd)

Counterparty	Currency to Deliver (000)		Value (000)		Settlement Date	In Exchange For (000)		Value (000)		Unrealized Appreciation (Depreciation) (000)
UBS AG	EUR	46	$	51	10/15/15	USD	52	$	52	$	1
UBS AG	GBP	6		10	10/15/15	USD	10		10		—	@
UBS AG	GBP	2		2	10/15/15	USD	2		2		—	@
UBS AG	TWD	93		3	10/15/15	USD	3		3		—	@
UBS AG	ZAR	15		1	10/15/15	USD	1		1		—	@
JPMorgan Chase Bank NA	USD	78		78	11/4/15	KRW	93,150		78		—	@
UBS AG	USD	53		53	11/4/15	CHF	52		53		—	@
Citibank NA	CNY	289		44	5/19/16	USD	46		46		2
Citibank NA	CNY	847		132	5/19/16	USD	136		136		4
Deutsche Bank AG	CNY	565		87	5/19/16	USD	90		90		3
			$	9,911				$	9,916	$	5

Futures Contracts:

The Portfolio had the following futures contracts open at September 30, 2015:

	Number of Contracts		Value (000)			Expiration Date	Unrealized Appreciation (Depreciation) (000)
Long:
Gold Futures (United States)		2	$	223		Dec-15	$	(5	)
MSCI Emerging Market E Mini (United States)		19		752		Dec-15		(16	)
NIKKEI 225 (United States)		7		510		Dec-15		(14	)
S&P 500 E MINI Index (United States)		14		1,336		Dec-15		(16	)
U.S. Treasury 10 yr. Note (United States)		2		258		Dec-15		3
U.S. Treasury 5 yr. Note (United States)		2		241		Dec-15		1
U.S. Treasury Long Bond (United States)		1		157		Dec-15		3
Short:
Copper Futures (United States)		1		(58	)	Dec-15		(2	)
Euro Stoxx 50 Index (Germany)		16		(553	)	Dec-15		14
SPI 200 Index (Australia)		1		(88	)	Dec-15		(—	@)
TOPIX Index (Japan)		1		(118	)	Dec-15		5
U.S. Treasury 10 yr. Note (United States)		9		(1,159	)	Dec-15		(12	)
U.S. Treasury 2 yr. Note (United States)		1		(219	)	Dec-15		(—	@)
U.S. Treasury Long Bond (United States)		1		(157	)	Dec-15		(3	)
UK Long Gilt Bond (United Kingdom)		1		(180	)	Dec-15		(3	)
							$	(45	)

Credit Default Swap Agreements:

The Portfolio had the following credit default swap agreements open at September 30, 2015:

Swap Counterparty and Reference Obligation	Buy/Sell Protection	Notional Amount (000)		Pay/Receive Fixed Rate			Termination Date	Upfront Payment Paid (Received) (000)			Unrealized Appreciation (Depreciation) (000)			Value (000)			Credit Rating of Reference Obligation† (unaudited)
Goldman Sachs International People's Republic of China	Buy	$	220		1.00	%	12/20/20	$	3		$	(—	@)	$	3		AA-
Goldman Sachs International Australian Government	Buy		190		1.00		12/20/20		(5	)		1			(4	)	AAA
JPMorgan Chase Bank NA Russian Federation	Sell		120		1.00		12/20/20		(15	)		1			(14	)	BB+
Morgan Stanley & Co., LLC* CDX.NA.HY.24	Sell		98		5.00		6/20/20		3			(—	@)		3		NR
Morgan Stanley & Co., LLC* ITRAXX.XO.23	Sell	EUR	26		5.00		6/20/20		3			(1	)		2		NR
		$	654					$	(11	)	$	1		$	(10	)

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

Interest Rate Swap Agreements:

The Portfolio had the following interest rate swap agreements open at September 30, 2015:

Swap Counterparty

Floating Rate
Index

Pay/Receive
Floating Rate

Fixed Rate

Termination
Date

Notional
Amount
(000)

Unrealized
Appreciation
(Depreciation)
(000)

Bank of America NA

1 Month TIIE

Receive

4.32

7/27/17

MXN

2,772

)

Bank of America NA

1 Month TIIE

Receive

4.33

7/27/17

1,526

(—

Bank of America NA

1 Month TIIE

Receive

4.39

7/28/17

893

(—

Bank of America NA

1 Month TIIE

Pay

6.30

7/17/25

514

(—

Bank of America NA

1 Month TIIE

Pay

6.32

7/17/25

352

(—

Bank of America NA

1 Month TIIE

Pay

6.32

7/18/25

219

(—

Citibank NA

1 Month TIIE

Receive

4.29

7/25/17

1,534

(—

Citibank NA

1 Month TIIE

Receive

4.35

7/28/17

3,382

—

Citibank NA

1 Month TIIE

Receive

4.38

7/28/17

952

(—

Citibank NA

1 Month TIIE

Receive

4.48

8/24/17

(—

Citibank NA

1 Month TIIE

Pay

6.36

7/15/25

373

(—

Citibank NA

1 Month TIIE

Pay

6.34

7/16/25

162

(—

Citibank NA

1 Month TIIE

Pay

6.33

7/18/25

285

—

Citibank NA

1 Month TIIE

Pay

6.40

8/14/25

(—

Deutsche Bank AG

1 Month TIIE

Receive

4.38

7/28/17

1,408

)

Deutsche Bank AG

1 Month TIIE

Pay

6.33

7/18/25

292

(—

Goldman Sachs International

1 Month TIIE

Receive

4.29

7/26/17

1,372

(—

Goldman Sachs International

1 Month TIIE

Receive

4.38

7/28/17

1,404

(—

Goldman Sachs International

1 Month TIIE

Pay

6.33

7/16/25

333

(—

Goldman Sachs International

1 Month TIIE

Pay

6.32

7/18/25

292

(—

JPMorgan Chase Bank NA

1 Month TIIE

Receive

4.34

7/27/17

850

(—

JPMorgan Chase Bank NA

1 Month TIIE

Pay

6.33

7/17/25

383

(—

JPMorgan Chase Bank NA

1 Month TIIE

Pay

6.39

9/18/25

676

(—

UBS AG

1 Month TIIE

Receive

4.31

7/25/17

1,572

(—

UBS AG

1 Month TIIE

Pay

6.37

7/15/25

382

—

)

Total Return Swap Agreements:

The Portfolio had the following total return swap agreements open at September 30, 2015:

Swap Counterparty

Index

Notional
Amount
(000)

Floating
Rate

Pay/Receive
Total Return
of Referenced
Index

Maturity
Date

Unrealized
Appreciation
(Depreciation)
(000)

Citibank NA

Citi Australia Bank
Custom Basket^††

3 Month USD LIBOR minus
0.20%

Pay

8/23/16

—

Citibank NA

Citi Australia Bank
Custom Basket^††

3 Month USD LIBOR minus
0.20%

Pay

8/23/16

JPMorgan Chase
Bank NA

JPM Global Machinery
Index^††

3 Month USD LIBOR minus
0.55%

Pay

11/6/15

JPMorgan Chase
Bank NA

JPM U.S. Machinery
Index^††

3 Month USD LIBOR minus
0.30%

Pay

11/9/15

JPMorgan Chase
Bank NA

JPM Global Auto
Components Index^††

3 Month USD LIBOR minus
0.33%

Pay

12/17/15

—

JPMorgan Chase
Bank NA

JPM Global Auto
Components Index^††

3 Month USD LIBOR minus
0.33%

Pay

12/17/15

—

JPMorgan Chase
Bank NA

JPMorgan U.S. Refineries
Custom Basket^††

3 Month USD LIBOR minus
0.06%

Pay

9/1/16

)

JPMorgan Chase
Bank NA

JPM Aerospace
Index^††

163

3 Month USD LIBOR minus
0.26%

Pay

9/8/16

JPMorgan Chase
Bank NA

JPM Aerospace
Index^††

160

3 Month USD LIBOR minus
0.36%

Pay

9/8/16

)

†† See tables below for details of the equity basket holdings underlying the swap.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

The following table represents the equity basket holdings underlying the total return swap with Citi Australia Bank Custom Basket as of September 30, 2015.

Security Description	Index Weight
Citi Australia Bank Custom Basket
Australia & New Zealand Banking Group Ltd.		19.80	%
Bank of Queensland Ltd.		1.14
Bendigo & Adelaide Bank Ltd.		1.19
Commonwealth Bank of Australia		32.65
National Australia Bank Ltd.		20.72
Westpac Banking Corp.		24.50
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Global Machinery Index as of September 30, 2015.

Security Description	Index Weight
JPM Global Machinery Index
Alfa Laval AB		2.85	%
Atlas Copco AB		8.26
Atlas Copco AB		4.48
CNH Industrial N.V.		3.64
CRRC Corp., Ltd.		1.32
Daewoo Shipbuilding & Marine Engineering		0.32
Doosan Infracore Co., Ltd.		0.40
GEA Group AG		3.74
Hino Motors Ltd.		1.34
Hitachi Construction Machinery Co., Ltd.		0.71
Hiwin Technologies Corp.		0.56
Hyundai Heavy Industries Co., Ltd.		1.74
Hyundai Mipo Dockyard Co., Ltd.		0.30
IMI PLC		2.17
JTEKT Corp.		1.43
Kawasaki Heavy Industries Ltd.		2.36
Komatsu Ltd.		6.76
Kone Oyj		6.25
Kubota Corp.		7.49
MAN SE		1.91
Melrose Industries PLC		2.57
Metso Oyj		1.26
NGK Insulators Ltd.		2.70
Samsung Heavy Industries Co., Ltd.		0.94
Sandvik AB		5.07
Schindler Holding AG		3.47
Schindler Holding AG		1.66
Sembcorp Marine Ltd.		0.74
SMC Corp.		5.91
Sulzer AG		1.23
Sumitomo Heavy Industries Ltd.		1.04
Vallourec SA		0.47
Volvo AB		8.26
Wartsila Oyj Abp		3.27
Weichai Power Co., Ltd.		0.26
Weir Group PLC (The)		2.06
Yangzijiang Shipbuilding Holdings Ltd.		0.78
Zoomlion Heavy Industry Science & Technology		0.28
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM U.S. Machinery Index as of September 30, 2015.

Security Description	Index Weight
JPM U.S. Machinery Index
AGCO Corp.		2.05	%
Caterpillar, Inc.		20.99
Cummins, Inc.		9.58
Deere & Co.		12.19
Dover Corp.		4.78
Flowserve Corp.		2.76
Illinois Tool Works, Inc.		15.57
Ingersoll-Rand PLC		6.86
Joy Global, Inc.		0.78
PACCAR, Inc.		9.14
Parker-Hannifin Corp.		6.79
Pentair PLC		4.81
SPX Corp.		0.22
SPX FLOW, Inc.		0.64
Xylem, Inc.		2.84
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Global Auto Components Index as of September 30, 2015.

Security Description	Index Weight
JPM Global Auto Components Index
Aisin Seiki Co., Ltd.		2.42	%
Autoliv, Inc.		3.83
BorgWarner, Inc.		3.62
Bridgestone Corp.		8.49
Cheng Shin Rubber Industry Co., Ltd.		1.00
Cie Generale des Etablissements Michelin		6.40
Continental AG		8.83
Delphi Automotive PLC		8.66
Denso Corp.		7.75
GKN PLC		2.52
Hankook Tire Co., Ltd.		0.94
Hanon Systems		0.46
Hyundai Mobis Co., Ltd.		5.01
Hyundai Wia Corp.		0.67
Johnson Controls, Inc.		10.47
Koito Manufacturing Co., Ltd.		1.18
Magna International, Inc.		7.75
NGK Spark Plug Co., Ltd.		1.54
NHK Spring Co., Ltd.		0.58
NOK Corp.		0.78
Nokian Renkaat Oyj		1.39
Pirelli & C. SpA		1.51
Stanley Electric Co., Ltd.		1.07
Sumitomo Electric Industries Ltd.		3.63
Sumitomo Rubber Industries Ltd.		0.89
Toyoda Gosei Co., Ltd.		0.48
Toyota Industries Corp.		2.92
Valeo SA		3.85
Yokohama Rubber Co., Ltd. (The)		1.36
		100.00	%

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Portfolio of Investments (cont'd)

Global Multi-Asset Income Portfolio

The following table represents the equity basket holdings underlying the total return swap with JPMorgan U.S. Refineries Custom Basket as of September 30, 2015.

Security Description	Index Weight
JPMorgan U.S. Refineries Custom Basket
Delek U.S. Holdings, Inc.		1.30	%
HollyFrontier Corp.		6.45
Marathon Petroleum Corp.		19.52
PBF Energy, Inc.		2.81
Phillips 66		23.97
Tesoro Corp.		16.33
Valero Energy Corp.		26.23
Western Refining, Inc.		3.39
		100.00	%

The following table represents the equity basket holdings underlying the total return swap with JPM Aerospace Index as of September 30, 2015.

Security Description	Index Weight
JPM Aerospace Index
Airbus Group SE		13.75	%
B/E Aerospace, Inc.		1.50
Boeing Co. (The)		33.15
Bombardier, Inc.		0.72
KLX, Inc.		0.61
Precision Castparts Corp.		12.23
Rolls-Royce Holdings PLC		5.86
Safran SA		9.41
Textron, Inc.		4.86
Thales SA		2.84
TransDigm Group, Inc.		3.69
United Technologies Corp.		9.39
Zodiac Aerospace		1.99
		100.00	%

@ Value is less than $500.

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

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

LIBOR London Interbank Offered Rate.

TIIE Interbank Equilibrium Interest Rate.

NR Not rated.

AUD — Australian Dollar

BRL — Brazilian Real

CAD — Canadian Dollar

CHF — Swiss Franc

CNY — Chinese Yuan Renminbi

DKK — Danish Krone

EUR — Euro

GBP — British Pound

HKD — Hong Kong Dollar

INR — Indian Rupee

JPY — Japanese Yen

KRW — South Korean Won

MXN — Mexican Peso

MYR — Malaysian Ringgit

NOK — Norwegian Krone

NZD — New Zealand Dollar

PLN — Polish Zloty

RUB — Russian Ruble

SEK — Swedish Krona

SGD — Singapore Dollar

THB — Thai Baht

TRY — Turkish Lira

TWD — Taiwan Dollar

USD — United States Dollar

ZAR — South African Rand

Portfolio Composition

Classification	Percentage of Total Investments
Fixed Income Securities		42.9	%
Common Stocks		36.0
Short-Term Investments		14.3
Investment Companies		6.8
Total Investments		100.0	%**

** Does not include open call options written with a value of approximately $12,000. Does not include open long/short futures contracts with an underlying face amount of approximately $6,009,000 with net unrealized depreciation of approximately $45,000. Does not include open foreign currency forward exchange contracts with net unrealized appreciation of approximately $5,000 and does not include open swap agreements with net unrealized appreciation of approximately $23,000.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Global Multi-Asset Income Portfolio

Statement of Assets and Liabilities	September 30, 2015 (000)
Assets:
Investments in Securities of Unaffiliated Issuers, at Value (Cost $12,449)	$	11,721
Investment in Security of Affiliated Issuer, at Value (Cost $2,796)		2,724
Total Investments in Securities, at Value (Cost $15,245)		14,445
Foreign Currency, at Value (Cost $54)		54
Receivable for Investments Sold		1,458
Receivable for Variation Margin on Futures Contracts		265
Due from Adviser		168
Prepaid Offering Costs		93
Unrealized Appreciation on Foreign Currency Forward Exchange Contracts		47
Interest Receivable		47
Unrealized Appreciation on Swap Agreements		28
Dividends Receivable		7
Premium Paid on Open Swap Agreements		3
Tax Reclaim Receivable		3
Receivable from Affiliate		—	@
Receivable for Variation Margin on Swap Agreements		—	@
Other Assets		8
Total Assets		16,626
Liabilities:
Payable for Investments Purchased		2,304
Payable for Offering Costs		82
Payable for Custodian Fees		53
Unrealized Depreciation on Foreign Currency Forward Exchange Contracts		42
Premium Received on Open Swap Agreements		20
Payable for Professional Fees		19
Options Written, at Value (Premiums received $41)		12
Unrealized Depreciation on Swap Agreements		4
Payable for Transfer Agency Fees — Class I		1
Payable for Transfer Agency Fees — Class A		1
Payable for Transfer Agency Fees — Class C		1
Payable for Transfer Agency Fees — Class IS		—	@
Payable for Administration Fees		1
Payable for Shareholder Services Fees — Class A		—	@
Payable for Distribution and Shareholder Services Fees — Class C		—	@
Other Liabilities		55
Total Liabilities		2,595
Net Assets	$	14,031
Net Assets Consist Of:
Paid-in-Capital	$	15,036
Accumulated Undistributed Net Investment Income		56
Accumulated Net Realized Loss		(272	)
Unrealized Appreciation (Depreciation) on:
Investments		(728	)
Investments in Affiliates		(72	)
Futures Contracts		(45	)
Options Written		29
Swap Agreements		23
Foreign Currency Forward Exchange Contracts		5
Foreign Currency Translations		(1	)
Net Assets	$	14,031

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Global Multi-Asset Income Portfolio

Statement of Assets and Liabilities (cont'd)	September 30, 2015 (000)
CLASS I:
Net Assets	$	9
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	9.33
CLASS A:
Net Assets	$	44
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		4,754
Net Asset Value, Redemption Price Per Share	$	9.32
Maximum Sales Load		5.25	%
Maximum Sales Charge	$	0.52
Maximum Offering Price Per Share	$	9.84
CLASS C:
Net Assets	$	9
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,000
Net Asset Value, Offering and Redemption Price Per Share	$	9.30
CLASS IS:
Net Assets	$	13,969
Shares Outstanding (unlimited number of shares authorized, no par value) (not in 000's)		1,497,000
Net Asset Value, Offering and Redemption Price Per Share	$	9.33

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Global Multi-Asset Income Portfolio

Statement of Operations	Period from April 30, 2015^ to September 30, 2015 (000)
Investment Income:
Dividends from Securities of Unaffiliated Issuers (Net of $11 of Foreign Taxes Withheld)	$	86
Interest from Securities of Unaffiliated Issuers		59
Dividends from Security of Affiliated Issuer (Note G)		15
Total Investment Income		160
Expenses:
Professional Fees		103
Custodian Fees (Note F)		71
Offering Costs		67
Pricing Fees		53
Advisory Fees (Note B)		40
Shareholder Reporting Fees		19
Administration Fees (Note C)		5
Transfer Agency Fees — Class I (Note E)		1
Transfer Agency Fees — Class A (Note E)		1
Transfer Agency Fees — Class C (Note E)		1
Transfer Agency Fees — Class IS (Note E)		1
Shareholder Services Fees — Class A (Note D)		—	@
Distribution and Shareholder Services Fees — Class C (Note D)		—	@
Trustees' Fees and Expenses		—	@
Registration Fees		—	@
Other Expenses		5
Total Expenses		367
Expenses Reimbursed by Adviser (Note B)		(269	)
Waiver of Advisory Fees (Note B)		(40	)
Reimbursement of Class Specific Expenses — Class I (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class A (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class C (Note B)		(1	)
Reimbursement of Class Specific Expenses — Class IS (Note B)		(1	)
Rebate from Morgan Stanley Affiliate (Note G)		(2	)
Net Expenses		52
Net Investment Income		108
Realized Gain (Loss):
Investments Sold		(136	)
Investments in Affiliates		(10	)
Foreign Currency Forward Exchange Contracts		42
Foreign Currency Transactions		21
Futures Contracts		(227	)
Options Written		(—	@)
Swap Agreements		31
Net Realized Loss		(279	)
Change in Unrealized Appreciation (Depreciation):
Investments		(728	)
Investments in Affiliates		(72	)
Foreign Currency Forward Exchange Contracts		5
Foreign Currency Translations		(1	)
Futures Contracts		(45	)
Swap Agreements		23
Options Written		29
Net Change in Unrealized Appreciation (Depreciation)		(789	)
Net Realized Loss and Change in Unrealized Appreciation (Depreciation)		(1,068	)
Net Decrease in Net Assets Resulting from Operations	$	(960	)

^ Commencement of Operations.

@ Amount is less than $500.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Global Multi-Asset Income Portfolio

Statements of Changes in Net Assets	Period from April 30, 2015^ to September 30, 2015 (000)
Increase (Decrease) in Net Assets:
Operations:
Net Investment Income	$	108
Net Realized Loss		(279	)
Net Change in Unrealized Appreciation (Depreciation)		(789	)
Net Decrease in Net Assets Resulting from Operations		(960	)
Distributions from and/or in Excess of:
Class I:
Net Investment Income		(—	@)
Class A:
Net Investment Income		(—	@)
Class C:
Net Investment Income		(—	@)*
Class IS:
Net Investment Income		(45	)
Total Distributions		(45	)
Capital Share Transactions:⁽¹⁾
Class I:
Subscribed		10
Class A:
Subscribed		46
Distributions Reinvested		—	@
Class C:
Subscribed		10	*
Class IS:
Subscribed		14,970
Net Increase in Net Assets Resulting from Capital Share Transactions		15,036
Total Increase in Net Assets		14,031
Net Assets:
Beginning of Period		—
End of Period (Including Accumulated Undistributed Net Investment Income of $56)	$	14,031
(1) Capital Share Transactions:
Class I:
Shares Subscribed		1
Class A:
Shares Subscribed		5
Shares Issued on Distributions Reinvested		—	@@
Net Increase in Class A Shares Outstanding		5
Class C:
Shares Subscribed		1	*
Class IS:
Shares Subscribed		1,497

^ Commencement of Operations.

* For the period May 8, 2015 through September 30, 2015.

@ Amount is less than $500.

@@ Amount is less than 500 shares.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Global Multi-Asset Income Portfolio

	Class I
Selected Per Share Data and Ratios	Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.07
Net Realized and Unrealized Loss		(0.71	)
Total from Investment Operations		(0.64	)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)
Net Asset Value, End of Period	$	9.33
Total Return++		(6.42	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	9
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.93	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.72	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*
Portfolio Turnover Rate		139	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		20.20	%*
Net Investment Loss to Average Net Assets		(17.55	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Global Multi-Asset Income Portfolio

	Class A
Selected Per Share Data and Ratios	Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.04
Net Realized and Unrealized Loss		(0.69	)
Total from Investment Operations		(0.65	)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)
Net Asset Value, End of Period	$	9.32
Total Return++		(6.64	)%#
Ratios and Supplemental Data:
Net Assets, End of Period (Thousands)	$	44
Ratio of Expenses to Average Net Assets ⁽¹⁾		1.27	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.02	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*
Portfolio Turnover Rate		139	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expenses to Average Net Assets		12.75	%*
Net Investment Loss to Average Net Assets		(10.46	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Global Multi-Asset Income Portfolio

	Class C
Selected Per Share Data and Ratios	Period from May 8, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.02
Net Realized and Unrealized Loss		(0.71	)
Total from Investment Operations		(0.69	)
Distributions from and/or in Excess of:
Net Investment Income		(0.01	)
Net Asset Value, End of Period	$	9.30
Total Return++		(6.86	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, (Thousands)	$	9
Ratios of Expenses to Average Net Assets ⁽¹⁾		2.03	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		0.56	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*
Portfolio Turnover Rate		139	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation:
Expense to Average Net Assets		21.28	%*
Net Investment Loss to Average Net Assets		(18.69	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

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

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Financial Highlights

Global Multi-Asset Income Portfolio

	Class IS
Selected Per Share Data and Ratios	Period from April 30, 2015^ to September 30, 2015
Net Asset Value, Beginning of Period	$	10.00
Income (Loss) from Investment Operations:
Net Investment Income†		0.07
Net Realized and Unrealized Loss		(0.71	)
Total from Investment Operations		(0.64	)
Distributions from and/or in Excess of:
Net Investment Income		(0.03	)
Net Asset Value, End of Period	$	9.33
Total Return++		(6.41	)%#
Ratios and Supplemental Data:
Net Assets, End of Period, in (Thousands)	$	13,969
Ratio of Expenses to Average Net Assets ⁽¹⁾		0.87	%+*
Ratio of Net Investment Income to Average Net Assets ⁽¹⁾		1.76	%+*
Ratio of Rebate from Morgan Stanley Affiliates to Average Net Assets		0.01	%*
Portfolio Turnover Rate		139	%#
⁽¹⁾ Supplemental Information on the Ratios to Average Net Assets:
Ratios Before Expense Limitation
Expenses to Average Net Assets		5.97	%*
Net Investment Loss to Average Net Assets		(3.34	)%*

^ Commencement of Operations.

† Per share amount is based on average shares outstanding.

++ Calculated based on the net asset value as of the last business day of the period.

# Not Annualized.

* Annualized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements

The accompanying financial statements relate to the Global Multi-Asset Income Portfolio. The Portfolio seeks to maximize current income and to seek capital appreciation over time. The Portfolio commenced operations on April 30, 2015 and offers four classes of shares — Class I, Class A, Class C and Class IS.

On May 8, 2015, the Portfolio commenced offering Class C shares.

1. Security Valuation: (1) Certain portfolio securities may be valued by an outside pricing service approved by the Fund's Board of Trustees (the "Trustees"). The pricing service may utilize a matrix system or other model incorporating attributes such as security quality, maturity and coupon as the evaluation model parameters, and/or research evaluations by its staff, including review of broker-dealer market price quotations in determining what it believes is the fair valuation of the portfolios securities valued by such pricing service; (2) an equity portfolio security listed or traded on an exchange is valued at its latest reported sales price (or at the exchange official closing price if such exchange reports an official closing price), if there were no sales on a given day, the security is valued at the mean between the last reported bid and asked prices; (3) all other equity portfolio securities for which over-the-counter ("OTC") market quotations are readily available are valued at its latest reported sales price. In cases where a security is traded on more than one exchange, the security is valued on the exchange designated as the primary market; (4) futures are valued at the latest price published by the commodities exchange on which they trade; (5) swaps are marked-to-market daily based upon quotations from market makers; (6) listed

options are valued at the last reported sales price on the exchange on which they are listed (or at the exchange official closing price if such exchange reports an official closing price). If an official closing price or last reported sales price is unavailable, the listed option should be fair valued at the mean between their latest bid and asked price. Unlisted options are valued by an outside pricing service approved by the Trustees or quotes from a broker or dealer; (7) when market quotations are not readily available, including circumstances under which Morgan Stanley Investment Management Inc. (the "Adviser") determines that the closing price, last sale price or the mean between the last reported bid and asked prices are not reflective of a security's market value, portfolio securities are valued at their fair value as determined in good faith under procedures established by and under the general supervision of the Trustees. Occasionally, developments affecting the closing prices of securities and other assets may occur between the times at which valuations of such securities are determined (that is, close of the foreign market on which the securities trade) and the close of business of the New York Stock Exchange ("NYSE"). If developments occur during such periods that are expected to materially affect the value of such securities, such valuations may be adjusted to reflect the estimated fair value of such securities as of the close of the NYSE, as determined in good faith by the Trustees or by the Adviser using a pricing service and/or procedures approved by the Trustees; (8) quotations of foreign portfolio securities, other assets and liabilities and forward contracts stated in foreign currency are translated into U.S. dollar equivalents at the prevailing market rates prior to the close of the NYSE; (9) investments in mutual funds, including the Morgan Stanley Institutional Liquidity Funds, are valued at the net asset value ("NAV") as of the close of each business day; and (10) short-term taxable debt securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, unless the Adviser determines such price does not reflect the securities' market value, in which case these securities will be valued at their fair market value determined by the Adviser. Other taxable short-term debt securities with maturities of more than 60 days will be valued on a mark-to-market basis until such time as they reach a maturity of 60 days, whereupon they will be valued at amortized cost using their value on the 61st day unless the Adviser determines such price does not reflect the securities' fair value, in which case these securities will be valued at their fair market value as determined by the Adviser.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

2. Fair Value Measurement: Financial Accounting Standards Board ("FASB") Accounting Standards Codification^TM ("ASC") 820, "Fair Value Measurement"

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

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

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

The following is a summary of the inputs used to value the Portfolio's investments as of September 30, 2015.

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)		Level 3 Significant unobservable inputs (000)		Total (000)
Assets:
Fixed Income Securities
Agency Fixed Rate Mortgages	$	—		$	789	$	—	$	789
Commercial Mortgage-Backed Securities		—			180		—		180
Corporate Bonds		—			1,708		—		1,708
Sovereign		—			2,595		—		2,595
U.S. Treasury Securities		—			931		—		931
Total Fixed Income Securities		—			6,203		—		6,203
Common Stocks
Aerospace & Defense		—			53		—		53
Air Freight & Logistics		—			19		—		19
Airlines		—			31		—		31
Auto Components		5			53		—		58
Automobiles		7			95		—		102
Banks		155			632		—		787
Beverages		33			108		—		141
Biotechnology		10			—		—		10
Building Products		—			49		—		49
Capital Markets		7			92		—		99
Chemicals		2			111		—		113
Commercial Services & Supplies		—			6		—		6
Communications Equipment		36			26		—		62
Construction & Engineering		—	@		87		—		87
Construction Materials		—			61		—		61
Diversified Consumer Services		4			7		—		11
Diversified Financial Services		13			62		—		75
Diversified Telecommunication Services		33			122		—		155
Electric Utilities		24			85		—		109
Electrical Equipment		—			41		—		41
Electronic Equipment, Instruments & Components		2			—		—		2
Energy Equipment & Services		7			—		—		7
Food & Staples Retailing		28			34		—		62
Food Products		15			43		—		58
Gas Utilities		12			41		—		53
Health Care Equipment & Supplies		13			26		—		39
Health Care Providers & Services		8			34		—		42
Hotels, Restaurants & Leisure		15			62		—		77
Household Durables		—			4		—		4
Household Products		27			32		—		59

Investment Type	Level 1 Unadjusted quoted prices (000)		Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Independent Power Producers & Energy Traders	$	—	$	—	@	$	—		$	—	@
Industrial Conglomerates		34		70			—			104
Information Technology Services		18		85			—			103
Insurance		21		158			—			179
Internet Software & Services		23		—			—			23
Machinery		—		12			—			12
Media		41		123			—			164
Metals & Mining		60		48			—			108
Multi-Utilities		54		83			—			137
Multi-line Retail		38		5			—			43
Oil, Gas & Consumable Fuels		196		147			—			343
Paper & Forest Products		—		9			—			9
Personal Products		—		76			—			76
Pharmaceuticals		94		175			—			269
Professional Services		—		80			—			80
Real Estate Investment Trusts (REITs)		264		125			—			389
Real Estate Management & Development		6		62			—			68
Road & Rail		9		—			—			9
Semiconductors & Semiconductor Equipment		25		35			—	@		60
Software		67		36			—			103
Specialty Retail		52		43			—			95
Tech Hardware, Storage & Peripherals		88		—			—			88
Textiles, Apparel & Luxury Goods		8		71			—			79
Tobacco		19		23			—			42
Trading Companies & Distributors		—		13			—			13
Transportation Infrastructure		—		86			—			86
Water Utilities		9		13			—			22
Wireless Telecommunication Services		13		11			—			24
Total Common Stocks		1,595		3,605			—	@		5,200
Investment Companies		982		—			—			982
Short-Term Investments
Investment Company		1,742		—			—			1,742
U.S Treasury Security		—		318			—			318
Total Short-Term Investments		1,742		318			—			2,060
Foreign Currency Forward Exchange Contracts		—		47			—			47
Futures Contracts		26		—			—			26
Credit Default Swap Agreements		—		2			—			2

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Investment Type	Level 1 Unadjusted quoted prices (000)			Level 2 Other significant observable inputs (000)			Level 3 Significant unobservable inputs (000)			Total (000)
Common Stocks (cont'd)
Interest Rate Swap Agreements	$	—		$	—	@	$	—		$	—	@
Total Return Swap Agreements		—			26			—			26
Total Assets		4,345			10,201			—			14,546
Liabilities:
Call Options Written		(5	)		(7	)		—			(12	)
Foreign Currency Forward Exchange Contracts		—			(42	)		—			(42	)
Futures Contracts		(71	)		—			—			(71	)
Credit Default Swap Agreements		—			(1	)		—			(1	)
Interest Rate Swap Agreements		—			(2	)		—			(2	)
Total Return Swap Agreements		—			(2	)		—			(2	)
Total Liabilities		(76	)		(54	)		—			(130	)
Total	$	4,269		$	10,147		$	—	@	$	14,416

@ Value is less than $500.

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

	Common Stock (000)
Beginning Balance	$	—
Purchases		2
Sales		—
Amortization of discount		—
Transfers in		—
Transfers out		—
Corporate actions		—
Change in unrealized appreciation (depreciation)		(2	)
Realized gains (losses)		—
Ending Balance	$	—	@
Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2015	$	(2	)

@ Value is less than $500.

– investments, other assets and liabilities at the prevailing rate of exchange on the valuation date;

– investment transactions and investment income at the prevailing rates of exchange on the dates of such transactions.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Portfolio's holdings, including derivative instruments, are marked-to-market each day with the change in value reflected in unrealized appreciation (depreciation). Upon disposition, a realized gain or loss is recognized.

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

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

event of bankruptcy of a broker with which the Portfolio has open positions in the futures contract.

enced debt obligation from the counterparty to the contract only in the event of a default or similar event by the issuer of the debt obligation. If no default occurs, the Portfolio would have paid to the counterparty a periodic stream of payments over the term of the contract and received no benefit from the contract. When the Portfolio is the seller of a credit default swap contract, it typically receives the stream of payments but is obligated to pay an amount equal to the par (or other agreed-upon) value of a referenced debt obligation upon the default or similar event by the issuer of the referenced debt obligation. The use of credit default swaps could result in losses to the Portfolio if the Adviser fails to correctly evaluate the creditworthiness of the issuer of the referenced debt obligation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Upfront payments received or paid by the Portfolio will be reflected as an asset or liability, respectively, in the Statement of Assets and Liabilities.

value of the securities involved will not generally be possible because the future value of such securities in foreign currencies will change as a consequence of market movements in the value of those securities between the date on which the contract is entered into and the date it matures. Furthermore, such transactions may reduce or preclude the opportunity for gain if the value of the currency should move in the direction opposite to the position taken. There is additional risk to the extent that currency contracts create exposure to currencies in which the Portfolio's securities are not denominated. Unanticipated changes in currency prices may result in poorer overall performance for the Portfolio than if it had not entered into such contracts. The use of currency contracts involves the risk of loss from the insolvency or bankruptcy of the counterparty to the contract or the failure of the counterparty to make payments or otherwise comply with the terms of the contract. A currency contract is marked-to-market daily and the change in market value is recorded by the Portfolio as unrealized gain or loss. The Portfolio records realized gains (losses) when the currency contract is closed equal to the difference between the value of the currency contract at the time it was opened and the value at the time it was closed.

Options: With respect to options, the Portfolio is subject to equity risk, interest rate risk and foreign currency exchange risk in the normal course of pursuing its investment objectives. If the Portfolio buys an option, it buys a legal contract giving it the right to buy or sell a specific amount of the underlying instrument or futures contract on the underlying instrument, at an agreed-upon price typically in exchange for a premium paid by the Portfolio. The Portfolio may purchase and/or sell put and call options. Purchasing call options tends to increase the Portfolio's exposure to the underlying (or similar) instrument. Purchasing put options tends to decrease the Portfolio's exposure to the underlying (or similar) instrument. When entering into purchased option contracts, the Portfolio bears the risk of interest or exchange rates or securities prices moving unexpectedly, in which case, the Portfolio may not achieve the anticipated benefits of the purchased option contracts; however the risk of loss is limited to the premium paid. Purchased options are reported as part of "Total Investments in Securities" in the Statement of Assets and Liabilities. Premium paid for purchasing options which

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

expired are treated as realized losses. If the Portfolio sells an option, it sells to another party the right to buy from or sell to the Portfolio a specific amount of the underlying instrument or futures contract on the underlying instrument at an agreed-upon price typically in exchange for a premium received by the Portfolio. The Portfolio may write call and put options on stock indexes, futures, securities or currencies it owns or in which it may invest. Writing put options tend to increase the Portfolio's exposure to the underlying instrument. Writing call options tend to decrease the Portfolio's exposure to the underlying instruments. When the Portfolio writes a call or put option, an amount equal to the premium received is recorded as a liability. Any liability recorded is subsequently adjusted to reflect the current value of the options written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the net realized gain or loss. The Portfolio as a writer of an option has no control over whether the underlying future, security or currency may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the future, security or currency underlying the written option. When options are purchased OTC, the Portfolio bears the risk that the counterparty that wrote the option will be unable or unwilling to perform its obligations under the option contract. Options may also be illiquid and the Portfolio may have difficulty closing out its position. A decision as to whether, when and how to use options involves the exercise of skill and judgment and even a well-conceived option transaction may be unsuccessful because of market behavior or unexpected events. The prices of options can be highly volatile and the use of options can lower total returns.

Transactions in written options for the period ended September 30, 2015 were as follows:

Written Options	Number of Contracts			Premiums Received (000)
Options outstanding at April 30, 2015		—		$	—
Options written		16,246			180
Options closed		(291	)		(18	)
Options exercised		(5,102	)		(34	)
Options expired		(7,620	)		(87	)
Options outstanding at September 30, 2015		3,233		$	41

The following tables set forth the fair value of the Portfolio's derivative contracts by primary risk exposure as of September 30, 2015.

Asset Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Foreign Currency
Forward Exchange
Contracts

Unrealized Appreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

Futures Contracts

Variation Margin on
Futures Contracts

Equity Risk

(a)

Futures Contracts

Variation Margin on
Futures Contracts

Interest Rate Risk

(a)

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Credit Risk

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Equity Risk

Swap Agreements

Unrealized Appreciation on
Swap Agreements

Interest Rate Risk

—

Total

101

Liability Derivatives
Statement of Assets and
Liabilities Location

Primary Risk
Exposure

Value
(000)

Call Options Written

Options Written, at Value

Currency Risk

(12

)

Foreign Currency
Forward Exchange
Contracts

Unrealized Depreciation on
Foreign Currency Forward
Exchange Contracts

Currency Risk

(42

)

Futures Contracts

Variation Margin on

Futures Contracts

Commodity Risk

)(a)

Futures Contracts

Variation Margin on

Futures Contracts

Equity Risk

(46

)(a)

Futures Contracts

Variation Margin on

Futures Contracts

Interest Rate Risk

(18

)(a)

Swap Agreement

Unrealized Depreciation on

Swap Agreement

Credit Risk

(—

Swap Agreements

Variation Margin on

Swap Agreements

Credit Risk

)(a)

Swap Agreements

Unrealized Depreciation on

Swap Agreements

Equity Risk

)

Swap Agreements

Unrealized Depreciation on

Swap Agreements

Interest Rate Risk

)

Total

(130

)

@ Amount is less than $500.

The following tables set forth by primary risk exposure the Portfolio's realized gains (losses) and change in unrealized appreciation (depreciation) by type of derivative contract

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

for the period ended September 30, 2015 in accordance with ASC 815.

Realized Gain (Loss)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Options Written	$	(—	@)
Currency Risk	Foreign Currency Forward Exchange Contracts		42
Commodity Risk	Futures Contracts		(7	)
Equity Risk	Futures Contracts		(224	)
Interest Rate Risk	Futures Contracts		4
Credit Risk	Swap Agreements		13
Equity Risk	Swap Agreements		(71	)
Interest Rate Risk	Swap Agreements		89
Total		$	(154	)

@ Amount is less than $500.

Change in Unrealized Appreciation (Depreciation)
Primary Risk Exposure	Derivative Type	Value (000)
Currency Risk	Options Written	$	29
Currency Risk	Foreign Currency Forward Exchange Contracts		5
Commodity Risk	Futures Contracts		(7	)
Equity Risk	Futures Contracts		(27	)
Interest Rate Risk	Futures Contracts		(11	)
Credit Risk	Swap Agreements		1
Equity Risk	Swap Agreements		24
Interest Rate Risk	Swap Agreements		(2	)
Total		$	12

At September 30, 2015, the Portfolio's derivative assets and liabilities are as follows:

Gross Amounts of Assets and Liabilities Presented in the Statement of Assets and Liabilities
Derivatives(b)	Assets(c) (000)		Liabilities(c) (000)
Foreign Currency Forward Exchange Contracts	$	47	$	(42	)
Swap Agreements		28		(4	)
Total	$	75	$	(46	)

(b) Excludes exchange traded derivatives.

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

The following tables present derivative financial instruments that are subject to enforceable netting arrangements as of September 30, 2015.

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Asset Presented in Statement of Assets and Liabilities (000)			Financial Instrument (000)			Collateral Received (000)		Derivatives Net Amount (not less than $0) (000)
Bank of America NA	$	1		$	(1	)	$	—	$	0
Bank of Montreal		2			(2	)		—		0
Bank of New York Mellon		—	@		(—	@)		—		0
Barclays Bank PLC		—	@		(—	@)		—		0
Citibank NA		17			(1	)		—		16
Commonwealth Bank of Australia		3			(3	)		—		0
Credit Suisse International		1			(1	)		—		0
Deutsche Bank AG		3			(3	)		—		0
Goldman Sachs International		1			(1	)		—		0
JPMorgan Chase Bank NA		37			(5	)		—		32
State Street Bank and Trust Co.		2			(2	)		—		0
UBS AG		8			(1	)		—		7
Total	$	75		$	(20	)	$	—	$	55

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Gross Amounts Not Offset in the Statement of Assets and Liabilities
Counterparty	Gross Liability Derivatives Presented in Statement of Assets and Liabilities (000)		Financial Instrument (000)			Collateral Pledged (000)		Net Amount (not less than $0) (000)
Bank of America NA	$	3	$	(1	)	$	—	$	2
Bank of Montreal		4		(2	)		—		2
Bank of New York Mellon		1		(—	@)		—		1
Barclays Bank PLC		1		(—	@)		—		1
Citibank NA		1		(1	)		—		0
Commonwealth Bank of Australia		4		(3	)		—		1
Credit Suisse International		7		(1	)		—		6
Deutsche Bank AG		10		(3	)		—		7
Goldman Sachs International		4		(1	)		—		3
HSBC Bank PLC		2		—			—		2
JPMorgan Chase Bank NA		5		(5	)		—		0
State Street Bank and Trust Co.		3		(2	)		—		1
UBS AG		1		(1	)		—		0
Total	$	46	$	(20	)	$	—	$	26

@ Amount is less than $500.

For the period ended September 30, 2015, the approximate average monthly amount outstanding for each derivative type is as follows:

Foreign Currency Forward Exchange Contracts:
Average monthly principal amount	$	8,048,000
Futures Contracts:
Average monthly original value	$	15,619,000
Swap Agreements:
Average monthly notional amount	$	9,386,000
Call Options Written:
Average monthly currency amount	$	3,000

there could be an unrealized loss at the time of delivery. Purchasing investments on a when-issued or delayed delivery basis may be considered a form of leverage which may increase the impact that gains (losses) may have on the Portfolio.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

The Adviser has agreed to reduce its advisory fee and/or reimburse the Portfolio so that total annual portfolio operating expenses, excluding certain investment related expenses, taxes, interest and other extraordinary expenses (including litigation), will not exceed 0.95% for Class I shares, 1.30% for Class A shares, 2.05% for Class C shares and 0.90% for Class IS shares. The fee waivers and/or expense reimbursements will continue for at least one year from the date of the Portfolio's prospectus or until such time that the Trustees act to discontinue all or a portion of such waivers and/or reimbursements when they deem such action is appropriate. For the period ended September 30, 2015, approximately $40,000 of advisory fees were waived and approximately $273,000 of other expenses were reimbursed by the Adviser pursuant to this arrangement.

C. Administration Fees: The Adviser also serves as Administrator to the Fund and provides administrative services pursuant to an Administration Agreement for an annual fee, accrued daily and paid monthly, of 0.08% of the Portfolio's average daily net assets. Under a Sub-Administration Agreement between the Administrator and State Street Bank and Trust Company ("State Street"), State Street provides certain administrative services to the Fund. For such services, the Administrator pays State Street a portion of the fee the Administrator receives from the Portfolio.

a shareholder services fee, accrued daily and paid monthly, at an annual rate of 0.25% of the Portfolio's average daily net assets attributable to Class C shares.

G. Security Transactions and Transactions with Affiliates: For the period ended September 30, 2015, purchases and sales of investment securities for the Portfolio, other than long-term U.S. Government securities and short-term investments, were approximately $16,342,000 and $4,316,000, respectively. For the period ended September 30, 2015, purchases and sales of long-term U.S. Government securities were approximately $5,821,000 and $4,356,000, respectively.

The Portfolio invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds — Money Market Portfolio (the "Liquidity Funds"), an open-end management investment company managed by the Adviser. 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 Portfolio due to its investment in the Liquidity Funds. For the period ended September 30, 2015, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Liquidity Funds.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

A summary of the Portfolio's transactions in shares of the Liquidity Funds during the period ended September 30, 2015 is as follows:

Value April 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	—			$	17,896			$	16,154			$	1			$	1,742

The Portfolio invests in Morgan Stanley Institutional Fund, Inc. — Emerging Markets Fixed Income Opportunities Portfolio ("Emerging Markets Fixed Income Opportunities Portfolio"), an open-end management investment company advised by an affiliate of the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the Emerging Markets Fixed Income Opportunities Portfolio. For the period ended September 30, 2015, advisory fees paid were reduced by approximately $1,000 relating to the Portfolio's investment in the Emerging Markets Fixed Income Opportunities Portfolio. The Emerging Markets Fixed Income Opportunities Portfolio has a cost basis of approximately $454,000 at September 30, 2015.

A summary of the Portfolio's transactions in shares of the Emerging Markets Fixed Income Opportunities Portfolio during the period ended September 30, 2015 is as follows:

Value April 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Realized Loss (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	—			$	750			$	285			$	(10	)		$	5			$	417

The Portfolio invests in Morgan Stanley Institutional Fund Trust — High Yield Portfolio ("High Yield Portfolio"), an open-end management investment company advised by an affiliate of the Adviser. Advisory fees paid by the Portfolio are reduced by an amount equal to its pro-rata share of the advisory and administration fees paid by the High Yield Portfolio. For the period ended September 30, 2015, advisory fees paid were reduced by less than $500 relating to the Portfolio's investment in the High Yield Portfolio. The High Yield Portfolio has a cost basis of approximately $600,000 at September 30, 2015.

A summary of the Portfolio's transactions in shares of the High Yield Portfolio during the period ended September 30, 2015 is as follows:

Value April 30, 2015 (000)				Purchases at Cost (000)				Sales (000)				Dividend Income (000)				Value September 30, 2015 (000)
$	—			$	—			$	—			$	9			$	565

FASB ASC 740-10, "Income Taxes — Overall", sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has concluded there are no significant uncertain tax positions that would require recognition in the financial statements. If applicable, the Portfolio recognizes interest accrued related to unrecognized tax benefits in "Interest Expense" and penalties in "Other Expenses" in the Statement of Operations. The Portfolio files tax returns with the U.S. Internal Revenue Service, New York and various states. The tax period ended September 30, 2015, remains subject to examination by taxing authorities.

2015 Distributions Paid From: Ordinary Income (000)
$	45

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Notes to Financial Statements (cont'd)

Permanent differences, primarily due to differing treatments of gains (losses) related to foreign currency transactions and basis adjustments for swap transactions, resulted in the following reclassifications among the components of net assets at September 30, 2015:

Accumulated Undistributed Net Investment Income (000)				Accumulated Net Realized Loss (000)				Paid-in- Capital (000)
$	(7	)		$	7			$	—

At September 30, 2015, the components of distributable earnings for the Portfolio on a tax basis were as follows:

Undistributed Ordinary Income (000)				Undistributed Long-Term Capital Gain (000)
$	238			$	—

At September 30, 2015, the Portfolio had available for Federal income tax purposes unused short term and long term capital losses of approximately $149,000 and $111,000, respectively, that do not have an expiration date.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of
Morgan Stanley Institutional Fund Trust —
Global Multi-Asset Income Portfolio

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Global Multi-Asset Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) (the "Portfolio") as of September 30, 2015, the related statements of operations and changes in net assets for the period from April 30, 2015 (commencement of operations) to September 30, 2015 and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Portfolio's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Global Multi-Asset Income Portfolio (one of the portfolios constituting Morgan Stanley Institutional Fund Trust) at September 30, 2015, the results of its operations, changes in its net assets for the period from April 30, 2015 (commencement of operations) to September 30, 2015 and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts
November 25, 2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited)

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

Nature, Extent and Quality of Services

The Board reviewed and considered the nature and extent of the investment advisory services to be provided by the Adviser (as defined herein) under the advisory agreement, including portfolio management, investment research and equity and fixed income securities trading. The Board also reviewed and considered the nature and extent of the non-advisory, administrative services to be provided by the Adviser under the administration agreement, including accounting, operations, clerical, bookkeeping, compliance, business management and planning, legal services and the provision of supplies, office space and utilities at the Adviser's expense. The Board also considered the Adviser's investment in personnel and infrastructure that benefits the Portfolio. (The advisory and administration agreements together are referred to as the "Management Agreement.") The Board also considered that the Adviser serves a variety of other investment advisory clients and has experience overseeing service providers.

The Board reviewed and considered the qualifications of the portfolio managers, the senior administrative managers and other key personnel of the Adviser who will provide the administrative and advisory services to the Portfolio. The Board determined that the Adviser's portfolio managers and key personnel are well qualified by education and/or training and experience to perform the services in an efficient and professional manner. The Board concluded that the nature and extent of the advisory and administrative services to be provided were necessary and appropriate for the conduct of the business and investment activities of the Portfolio and supported its decision to approve the Management Agreement.

Performance, Fees and Expenses of the Portfolio

The Board considered that the Adviser plans to arrange for a public offering of shares of the Portfolio to raise assets for investment and that the offering had not yet begun and concluded that, since the Portfolio currently had no assets to invest (other than seed capital required under the Investment Company Act) and had no track record of performance, this was not a factor it needed to address at the present time.

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

Economies of Scale

The Board considered the growth prospects of the Portfolio and the structure of the proposed management fee schedule, which does not include breakpoints for the Portfolio. The Board considered that the Portfolio's potential growth was uncertain and concluded that it would be premature to consider economies of scale as a factor in approving the Management Agreement at the present time.

Profitability of the Adviser and Affiliates

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

Other Benefits of the Relationship

The Board considered other direct and indirect benefits to the Adviser and/or its affiliates to be derived from their relationship with the Portfolio and other funds advised by the Adviser. These benefits may include, among other things, fees for trading, distribution and/or shareholder servicing and for transaction processing and reporting platforms used by securities lending agents, and research received by the Adviser generated from commission dollars spent on funds' portfolio trading. Since the Portfolio had not begun operations and had not paid any fees to the Adviser, the Board concluded that these benefits were not a factor that needed to be considered at the present time.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Investment Advisory Agreement Approval (unaudited) (cont'd)

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

The Board considered whether the Adviser is financially sound and has the resources necessary to perform its obligations under the Management Agreement. The Board also reviewed and considered the organizational structure of the Adviser, the policies and procedures formulated and adopted by the Adviser for managing the Portfolio's operations and the Board's confidence in the competence and integrity of the senior managers and key personnel of the Adviser. The Board concluded that the Adviser has the financial resources necessary to fulfill its obligations under the Management Agreement and that it is beneficial for the Portfolio to enter into this relationship with the Adviser.

Other Factors and Current Trends

General Conclusion

After considering and weighing all of the above factors, with various written materials and verbal information presented by the Adviser, the Board concluded that it would be in the best interest of the Portfolio and its future shareholders to approve the Management Agreement, which will remain in effect for two years and thereafter must be approved annually by the Board of the Portfolio if it is to continue in effect. In reaching this conclusion the Board did not give particular weight to any single piece of information or factor referenced above. It is possible that individual Board members may have weighed these factors, and the information presented, differently in reaching their individual decisions to approve the Management Agreement.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Federal Tax Notice (unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Portfolio during its taxable year ended September 30, 2015. For corporate shareholders 4.80% of the dividends qualified for the dividends received deduction.

In January, the Portfolio provides tax information to shareholders for the preceding calendar year.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited)

AN IMPORTANT NOTICE CONCERNING OUR U.S. PRIVACY POLICY

This privacy notice describes the U.S. privacy policy of Morgan Stanley Distribution, Inc., and the Morgan Stanley family of mutual funds ("us", "our", "we").

WE RESPECT YOUR PRIVACY

1. WHAT PERSONAL INFORMATION DO WE COLLECT FROM YOU?

• We collect information such as your name, address, e-mail address, telephone/fax numbers, assets, income and investment objectives through applications and other forms you submit to us.

• We may obtain information about your creditworthiness and credit history from consumer reporting agencies.

• We may collect background information from and through third-party vendors to verify representations you have made and to comply with various regulatory requirements.

2. WHEN DO WE DISCLOSE PERSONAL INFORMATION WE COLLECT ABOUT YOU?

We may disclose personal information we collect about you in each of the categories listed above to affiliated and nonaffiliated third parties.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

a. Information We Disclose to Affiliated Companies.

b. Information We Disclose to Third Parties.

3. HOW DO WE PROTECT THE SECURITY AND CONFIDENTIALITY OF PERSONAL INFORMATION WE COLLECT ABOUT YOU?

4. HOW CAN YOU LIMIT OUR SHARING CERTAIN PERSONAL INFORMATION ABOUT YOU WITH OUR AFFILIATED COMPANIES FOR ELIGIBILITY DETERMINATION?

5. HOW CAN YOU LIMIT THE USE OF CERTAIN PERSONAL INFORMATION ABOUT YOU BY OUR AFFILIATED COMPANIES FOR MARKETING?

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

U.S. Privacy Policy (unaudited) (cont'd)

6. HOW CAN YOU SEND US AN OPT-OUT INSTRUCTION?

• Calling us at (800) 548-7786
Monday–Friday between 8a.m. and 6p.m. (EST)

• Writing to us at the following address:

Boston Financial Data Services, Inc.
c/o Privacy Coordinator
P.O. Box 219804
Kansas City, Missouri 64121

7. WHAT IF AN AFFILIATED COMPANY BECOMES A NONAFFILIATED THIRD PARTY?

SPECIAL NOTICE TO RESIDENTS OF VERMONT

SPECIAL NOTICE TO RESIDENTS OF CALIFORNIA

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited)

Independent Trustees:

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Frank L. Bowman (70)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Kathleen A. Dennis (62)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of various nonprofit organizations.

Nancy C. Everett (60)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Jakki L. Haussler (58)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
January
2015

Dr. Manuel H. Johnson (66)
c/o Johnson Smick International, Inc.
220 I Street, N.E. — Suite 200
Washington, D.C. 20002

Trustee

Since
July
1991

Director of NVR, Inc. (home construction).

Joseph J. Kearns (73)
c/o Kearns & Associates LLC
23823 Malibu Road
S-50-440
Malibu, CA 90265

Trustee

Since
August
1994

Director of Electro Rent Corporation (equipment leasing). Prior to December 31, 2013, Director of The Ford Family Foundation.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Independent Trustees: (cont'd)

Name, Age and Address of
Independent Trustee

Positions(s)
Held with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years
and Other Relevant Professional Experience

Number of
Portfolios in
Fund Complex
Overseen by
Trustee**

Other Directorships
Held by Independent
Trustee***

Michael F. Klein (56)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of certain investment funds managed or sponsored by Aetos Capital, LLC. Director of Sanitized AG and Sanitized Marketing AG (specialty chemicals).

Michael E. Nugent (79)
522 Fifth Avenue
New York, NY 10036

Chair of the
Board and
Trustee

Chair of the
Boards since
July 2006 and
Trustee since
July 1991

None.

W. Allen Reed (68)
c/o Kramer Levin Naftalis & Frankel LLP
Counsel to the Independent Trustees
1177 Avenue of the Americas
New York, NY 10036

Trustee

Since
August
2006

Director of Temple-Inland Industries (packaging and forest products); Director of Legg Mason, Inc. and Director of the Auburn University Foundation.

Fergus Reid (83)
c/o Joe Pietryka, Inc.
85 Charles Colman Blvd.
Pawling, NY 12564

Trustee

Since
June
1992

Chairman, Joe Pietryka, Inc.; Chairperson of the Governance Committee and Director or Trustee of various Morgan Stanley Funds (since June 1992).

Formerly, Trustee and Director of certain investment companies in the JP Morgan Fund Complex managed by JP Morgan Investment Management Inc. (1987-December 2012).

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Interested Trustee:

Name, Age and Address of
Interested Trustee

Positions(s) Held
with Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

Number of
Portfolios in
Fund Complex
Overseen by
Interested
Trustee**

Other Directorships
Held by Interested
Trustee***

James F. Higgins (67)
One New York Plaza,
New York, NY 10004

Trustee

Since
June
2000

Director or Trustee of various Morgan Stanley Funds (since June 2000); Senior Advisor of Morgan Stanley (since August 2000).

* This is the earliest date the Trustee began serving the Morgan Stanley Funds. Each Trustee serves an indefinite term, until his or her successor is elected.

*** This includes any directorships at public companies and registered investment companies held by the Trustee at any time during the past five years.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Trustee and Officer Information (unaudited) (cont'd)

Executive Officers:

Name, Age and Address of Executive Officer

Position(s) Held
with
Registrant

Length of Time
Served*

Principal Occupation(s) During Past 5 Years

John H. Gernon (52)
522 Fifth Avenue
New York, NY 10036

President and Principal Executive Officer

Since
September
2013

Stefanie V. Chang Yu (48)
522 Fifth Avenue
New York, NY 10036

Chief
Compliance
Officer

Since
December
1997

Joseph C. Benedetti (50)
522 Fifth Avenue
New York, NY 10036

Vice President

Since
January
2014

Francis J. Smith (50)
522 Fifth Avenue
New York, NY 10036

Treasurer and
Principal
Financial
Officer

Treasurer
since July
2003 and
Principal
Financial
Officer since
September
2002

Executive Director of the Adviser and various entities affiliated with the Adviser; Treasurer (since July 2003) and Principal Financial Officer of various Morgan Stanley Funds (since September 2002).

Mary E. Mullin (48)
522 Fifth Avenue
New York, NY 10036

Secretary

Since
June
1999

Executive Director of the Adviser and various entities affiliated with the Adviser; Secretary of various Morgan Stanley Funds (since June 1999).

* This is the earliest date the officer began serving the Morgan Stanley Funds. Each officer serves a one-year term, until his or her successor is elected and has qualified.

Morgan Stanley Institutional Fund Trust

Annual Report — September 30, 2015

Adviser and Administrator

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

Distributor

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

Dividend Disbursing and Transfer Agent

Boston Financial Data Services, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169

Custodian

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

Legal Counsel

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

Counsel to the Independent Trustees

Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036

Independent Registered Public Accounting Firm

Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116

Reporting to Shareholders

Proxy Voting Policies and Procedures and Proxy Voting Record

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

(This Page has been left blank intentionally.)

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

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

IFGMAPANN
1347122 EXP 11.30.16

Item 2. Code of Ethics.

(a) The Fund has adopted a code of ethics (the “Code of Ethics”) that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Fund or a third party.

(b) No information need be disclosed pursuant to this paragraph.

(d) Not applicable.

(e) Not applicable.

(f)

(1) The Fund’s Code of Ethics is attached hereto as Exhibit 12 A.

(2) Not applicable.

(3) Not applicable.

Item 3. Audit Committee Financial Expert.

The Fund’s Board of Trustees has determined that Joseph J. Kearns, an “independent” Trustee, is an “audit committee financial expert” serving on its audit committee. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.

(a)(b)(c)(d) and (g). Based on fees billed for the periods shown:

2015

	Registrant			Covered Entities(1)
Audit Fees	$	517,677		N/A

Non-Audit Fees
Audit-Related Fees	$	—	(2)	$	—	(2)
Tax Fees	$	40,000	(3)	$	7,968,463	(4)
All Other Fees	$			$	212,000	(5)
Total Non-Audit Fees	$	40,000		$	8,180,463

Total	$	557,677		$	8,180,463

2014

	Registrant			Covered Entities(1)
Audit Fees	$	355,677		N/A

Non-Audit Fees
Audit-Related Fees	$	—	(2)	$	—	(2)
Tax Fees	$	27,807	(3)	$	8,152,733	(4)
All Other Fees	$			$	280,341	(5)
Total Non-Audit Fees	$	27,807		$	8,433,074

Total	$	383,484		$	8,433,074

N/A- Not applicable, as not required by Item 4.

(1) Covered Entities include the Adviser (excluding sub-advisors) and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Registrant.

(2) Audit-Related Fees represent assurance and related services provided that are reasonably related to the performance of the audit of the financial statements of the Covered Entities’ and funds advised by the Adviser or its affiliates, specifically data verification and agreed-upon procedures related to asset securitizations and agreed-upon procedures engagements.

(3) Tax Fees represent tax compliance, tax planning and tax advice services provided in connection with the preparation and review of the Registrant’s tax returns.

(4) Tax Fees represent tax compliance, tax planning and tax advice services provided in connection with the review of Covered Entities’ tax returns.

(5) All other fees represent project management for future business applications and improving business and operational processes.

(e)(1) The audit committee’s pre-approval policies and procedures are as follows:

APPENDIX A

AUDIT COMMITTEE

AUDIT AND NON-AUDIT SERVICES

PRE-APPROVAL POLICY AND PROCEDURES

OF THE

MORGAN STANLEY RETAIL AND INSTITUTIONAL FUNDS

AS ADOPTED AND AMENDED JULY 23, 2004,(1)

1. Statement of Principles

The Audit Committee of the Board is required to review and, in its sole discretion, pre-approve all Covered Services to be provided by the Independent Auditors to the Fund and Covered Entities in order to assure that services performed by the Independent Auditors do not impair the auditor’s independence from the Fund.

The SEC has issued rules specifying the types of services that an independent auditor may not provide to its audit client, as well as the audit committee’s administration of the engagement of the independent auditor. The SEC’s rules establish two different approaches to pre-approving services, which the SEC considers to be equally valid. Proposed services either: may be pre-approved without consideration of specific case-by-case services by the Audit Committee (“general pre-approval”); or require the specific pre-approval of the Audit Committee or its delegate (“specific pre-approval”). The Audit Committee believes that the combination of these two approaches in this Policy will result in an effective and efficient procedure to pre-approve services performed by the Independent Auditors. As set forth in this Policy, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee (or by any member of the Audit Committee to which pre-approval authority has been delegated) if it is to be provided by the Independent Auditors. Any proposed services exceeding pre-approved cost levels or budgeted amounts will also require specific pre-approval by the Audit Committee.

The appendices to this Policy describe the Audit, Audit-related, Tax and All Other services that have the general pre-approval of the Audit Committee. The term of any general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee considers and provides a different period and states otherwise. The Audit Committee will annually review and pre-approve the services that may be provided by the Independent Auditors without obtaining specific pre-approval from the Audit Committee. The Audit Committee will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.

(1) This Audit Committee Audit and Non-Audit Services Pre-Approval Policy and Procedures (the “Policy”), adopted as of the date above, supersedes and replaces all prior versions that may have been adopted from time to time.

The purpose of this Policy is to set forth the policy and procedures by which the Audit Committee intends to fulfill its responsibilities. It does not delegate the Audit Committee’s responsibilities to pre-approve services performed by the Independent Auditors to management.

The Fund’s Independent Auditors have reviewed this Policy and believes that implementation of the Policy will not adversely affect the Independent Auditors’ independence.

2. Delegation

As provided in the Act and the SEC’s rules, the Audit Committee may delegate either type of pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next scheduled meeting.

3. Audit Services

The annual Audit services engagement terms and fees are subject to the specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by the Independent Auditors to be able to form an opinion on the Fund’s financial statements. These other procedures include information systems and procedural reviews and testing performed in order to understand and place reliance on the systems of internal control, and consultations relating to the audit. The Audit Committee will approve, if necessary, any changes in terms, conditions and fees resulting from changes in audit scope, Fund structure or other items.

In addition to the annual Audit services engagement approved by the Audit Committee, the Audit Committee may grant general pre-approval to other Audit services, which are those services that only the Independent Auditors reasonably can provide. Other Audit services may include statutory audits and services associated with SEC registration statements (on Forms N-1A, N-2, N-3, N-4, etc.), periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.

The Audit Committee has pre-approved the Audit services in Appendix B.1. All other Audit services not listed in Appendix B.1 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

4. Audit-related Services

Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Fund’s financial statements and, to the extent they are Covered Services, the Covered Entities or that are traditionally performed by the Independent Auditors. Because the Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor and is consistent with the SEC’s rules on auditor independence, the Audit Committee may grant general pre-approval to Audit-related services. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters

not classified as “Audit services”; assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities; agreed-upon or expanded audit procedures related to accounting and/or billing records required to respond to or comply with financial, accounting or regulatory reporting matters; and assistance with internal control reporting requirements under Forms N-SAR and/or N-CSR.

The Audit Committee has pre-approved the Audit-related services in Appendix B.2. All other Audit-related services not listed in Appendix B.2 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

5. Tax Services

The Audit Committee believes that the Independent Auditors can provide Tax services to the Fund and, to the extent they are Covered Services, the Covered Entities, such as tax compliance, tax planning and tax advice without impairing the auditor’s independence, and the SEC has stated that the Independent Auditors may provide such services.

Pursuant to the preceding paragraph, the Audit Committee has pre-approved the Tax Services in Appendix B.3. All Tax services in Appendix B.3 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

6. All Other Services

The Audit Committee believes, based on the SEC’s rules prohibiting the Independent Auditors from providing specific non-audit services, that other types of non-audit services are permitted. Accordingly, the Audit Committee believes it may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, would not impair the independence of the auditor and are consistent with the SEC’s rules on auditor independence.

The Audit Committee has pre-approved the All Other services in Appendix B.4. Permissible All Other services not listed in Appendix B.4 must be specifically pre-approved by the Audit Committee (or by any member of the Audit Committee to which pre-approval has been delegated).

7. Pre-Approval Fee Levels or Budgeted Amounts

Pre-approval fee levels or budgeted amounts for all services to be provided by the Independent Auditors will be established annually by the Audit Committee. Any proposed services exceeding these levels or amounts will require specific pre-approval by the Audit Committee. The Audit Committee is mindful of the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services.

8. Procedures

All requests or applications for services to be provided by the Independent Auditors that do not require specific approval by the Audit Committee will be submitted to the Fund’s Chief Financial Officer and must include a detailed description of the services to be

rendered. The Fund’s Chief Financial Officer will determine whether such services are included within the list of services that have received the general pre-approval of the Audit Committee. The Audit Committee will be informed on a timely basis of any such services rendered by the Independent Auditors. Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the Independent Auditors and the Fund’s Chief Financial Officer, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.

The Audit Committee has designated the Fund’s Chief Financial Officer to monitor the performance of all services provided by the Independent Auditors and to determine whether such services are in compliance with this Policy. The Fund’s Chief Financial Officer will report to the Audit Committee on a periodic basis on the results of its monitoring. Both the Fund’s Chief Financial Officer and management will immediately report to the chairman of the Audit Committee any breach of this Policy that comes to the attention of the Fund’s Chief Financial Officer or any member of management.

9. Additional Requirements

The Audit Committee has determined to take additional measures on an annual basis to meet its responsibility to oversee the work of the Independent Auditors and to assure the auditor’s independence from the Fund, such as reviewing a formal written statement from the Independent Auditors delineating all relationships between the Independent Auditors and the Fund, consistent with Independence Standards Board No. 1, and discussing with the Independent Auditors its methods and procedures for ensuring independence.

10. Covered Entities

Covered Entities include the Fund’s investment adviser(s) and any entity controlling, controlled by or under common control with the Fund’s investment adviser(s) that provides ongoing services to the Fund(s). Beginning with non-audit service contracts entered into on or after May 6, 2003, the Fund’s audit committee must pre-approve non-audit services provided not only to the Fund but also to the Covered Entities if the engagements relate directly to the operations and financial reporting of the Fund. This list of Covered Entities would include:

Morgan Stanley Retail Funds

Morgan Stanley Investment Advisors Inc.

Morgan Stanley & Co. Incorporated

Morgan Stanley DW Inc.

Morgan Stanley Investment Management Inc.

Morgan Stanley Investment Management Limited

Morgan Stanley Investment Management Private Limited

Morgan Stanley Asset & Investment Trust Management Co., Limited

Morgan Stanley Investment Management Company

Morgan Stanley Services Company, Inc.

Morgan Stanley Distributors Inc.

Morgan Stanley Trust FSB

Morgan Stanley Institutional Funds

Morgan Stanley Investment Management Inc.

Morgan Stanley Investment Advisors Inc.

Morgan Stanley Investment Management Limited

Morgan Stanley Investment Management Private Limited

Morgan Stanley Asset & Investment Trust Management Co., Limited

Morgan Stanley Investment Management Company

Morgan Stanley & Co. Incorporated

Morgan Stanley Distribution, Inc.

Morgan Stanley AIP GP LP

Morgan Stanley Alternative Investment Partners LP

(e)(2) Beginning with non-audit service contracts entered into on or after May 6, 2003, the audit committee also is required to pre-approve services to Covered Entities to the extent that the services are determined to have a direct impact on the operations or financial reporting of the Registrant. 100% of such services were pre-approved by the audit committee pursuant to the Audit Committee’s pre-approval policies and procedures (attached hereto).

(f) Not applicable.

(g) See table above.

(h) The audit committee of the Board of Trustees has considered whether the provision of services other than audit services performed by the auditors to the Registrant and Covered Entities is compatible with maintaining the auditors’ independence in performing audit services.

Item 5. Audit Committee of Listed Registrants.

(a) The Fund has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act whose members are: Joseph J. Kearns, Jakki L. Haussler, Michael F. Klein and Allen W. Reed.

(b) Not applicable.

Item 6. Schedule of Investments

(a) Refer to Item 1.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Applicable only to reports filed by closed-end funds.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Applicable only to reports filed by closed-end funds.

Item 9. Closed-End Fund Repurchases

Applicable only to reports filed by closed-end funds.

Item 10. Submission of Matters to a Vote of Security Holders

Not applicable.

Item 11. Controls and Procedures

(a) The Fund’s principal executive officer and principal financial officer have concluded that the Fund’s disclosure controls and procedures are sufficient to ensure that information required to be disclosed by the Fund in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

(a) The Code of Ethics for Principal Executive and Senior Financial Officers is attached hereto.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant are attached hereto as part of EX-99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Morgan Stanley Institutional Fund Trust

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
November 19, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/ John H. Gernon
John H. Gernon
Principal Executive Officer
November 19, 2015

/s/ Francis Smith
Francis Smith
Principal Financial Officer
November 19, 2015